The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-09-20
TO- WORK AGAINST
WILD Cat CONCERNS
the deception in fraternal insurance
MIR. Rittenhouse said
CONTINUED from First Page.)
As to Frntcrnal Wrongs.

"One of the most notable instances
of deceiving the public in the insur
ance world to-day is found in fraternal
life insurance. Its purposes are noble
and beneficent, and we all know of the
great benefits which 1t has bestowed
upon our people. But while recognize
ing this, no friend of fraternal insur
ance is justified iii shutting his eyes
to the mistakes and wrongs found in
this branch Of life insurance. and which
constitute a danger threatening its
very existence.
'-Fraternal insurance in the broad
sense is deceptive and misleading, be-
cause it promises the people perma
nent insurance and gives them only
temporary insurance.
Our old line life companies have
(not Including industrlals) about ten
billion dollars of insurance in force.
which the law cornpeis them to protect
by a reserve fund. The fraternal Or
ders have about eight billion dollars
of life insurance in force. which the
law does not require them to protect
by a reserve fund. The reserve alone
of old line companies averages about
the total assets OF the fraternal orders
average hut i.tolt $40 per $1,000 of
insurance.
IF 1t is wrong for the insurance
companies and tile railways to dis
criminate letweeI, our people in mat
tiers of rates and pri"i'eges. why is 1t
not also wrong TO: our lawmakers to
protect half nf the people who have
insurance against loss AMI permit the
tion:
United Action Asked.
In closing, Mr.. Rittenhouse said:
..u, lit AL ar 1,.St 4,
equal force to wrongs found in all
kinds OF Insurance
'lf every insurance president knew
that his own official shortcomings and
the misdoings of his subordlnates in
the mana gement of the company were
to be given to the public once year
in even ten or twenty States, 1t is safe
to say that the insurance commission
ers would have very little to report in
the way of criticism, and this benefit
would accrue to all the States.
1.-THE exposure of the weaknesses of
one company TO its competitors may
he severe punishment. but the good
that viii ccrne from 1t in the effect
upon all other companies will far OUT
weigh the harm that may como to the
iotfending company.
Having put this plan into effect to
a certain eAlcht. know by experience
that it works, and l also know that it
has no terrnrs for the company that is
playing fair and which has nothing to
conceal.
I've all nelieve In publicity. What
I am coa.ending; for Is the practical
and systematic application of this pub
llltcity cure, which Is now in our hands
to administer. as It has been for years..
Frnternnl .issc ts.
George A. Bangs OF North Dakota,
/ discussed "Fraternal Insurance." deal
ing with every phase of the question.
Ills address contained facts somewhat
new to many. statistics of value ana
suggestions which will go far In i'm
proving conditions and putting the
4 companies on firmer basis. s
In this connection the committee on
fraternal insurance urged the pas
sage of laws to fix the legal status
5of rates, holding that the amalga.na-
ton of smaller concerns would be
/ valuable. The committee also recon-
mended that the convention define the
character of securities to be invested
by the organizations In the different
States.
The committee on unauthorized in