Evening journal., 1908-02-20
AGAINST
LOWER DIVIDENDS
Two New Jersey Branches Of
National Protective Legion
Refuse to Pay Dues

The reduction in dividends Of the Ma
tional Protective Legion, which has re-
suited in the refusal Of the Woodbury.
and Newark, N. j., legions to turn
over their dues to the national officers,
is not alarming wilmington members
of the order In view OF the fact that
not a dividend natures in this district
this year There are about 400 mem
bers in this district, the only other
legion, besides that in Wilmington,
beng IN Henry Clay.
Members OF the two legions that have
protested against the decrease have
been give nthe explanation that the
decrease has followed an amendment
to the constitution of the order adopt
ed at the Buffalo convention in Sep
TENDER. providing for a larger capital
stock and placing the payment of divi-
dends on a profit basis
Many Of those who Joined believed
that If they paid $3.50 a month for
five years they would receive at the
expiration of that time $3.50 less the
amount refunded to cover accident and
sickness expenses. Under the amend
ed constitution this year. however,
those whose dividends mature will re-
ceive S136.42 lesss. This has prompted
the protest Of the two legions.
The manager Of the legion In this
district is A. Willis, who has an office
in No 7O6 Market street. Mr.. Willis
this morning was emphatic in defense
of the organization, although the de-
crease in dividends does not directly
affect his district.
\ H.
there is no clause in either the old or
the new constitution that promises a
dividend Of $3.50 at the expiration of
five years. although possibly It may
have been paid on one or two occa-
sions This misconception was simply
based on the assertion OF some I'M
scrupulous agent who promised such
payment without authority in order to
earn larger commissions. Under the
old constitution dividends were paid
according to the financial condition OF
the order and in the best interests of
equity and justice. In the amended
constitution the payment Of dividends
is placed on a profit paying basis, the
dividends being paid according to the
surplus profits less the accident and
sickness expenses. This amendment
was our only resource in face Of the
Insurance laws, which made us in
crease our capital stock from S4,1000O0
to $4,000, 600. The increased reserve
has necessarily caused a decrease N
the dividends for the time. The bust
mess of the legion Is now done so the
lprofit that each mans money makes
at the end of five years, less the
lamounts that go for sickness and ac-
lcident benefits, is his dividend. In
lother times, when the insurance laws
did not prohibit, the money TO pa,
the dividends was borrowed from th'
money paid in by the members whose
dividends did not mature, the legiof
calculating upon the business to b'
written the year ahead. This, Of
course, kept the dividends at a good
figure. But in view OF recent govern.
lment rulings this cannot be done, and
we have been obliged TO hold a largel
reserve. The amended constitution
was voted for by everyone Of the go
delegates at the Buffalo convention
and its affects fully explained. Every
Ione who took the trouble 70 understand
Its provisions did not expect anythinl
other than decrease in dividend
this year."