Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-11-04
CLEARS RECENT
INSURANCE DEAL
Cosmopolitan Polcyholders
Have Meeting With Old
Colony Representative.
FORMER ON RAGGED EDGE
Losing $1,000 Per Month and Facing
Inevitable Failure When Its
Assets Are Taken Over.

Aho4A diCS VI tOTI ARM
strong garrison, knights of the Globe,
last evening at a special meeting in
MathI hall, heard an explanation of
the transaction by which their policies
were taken over by the Old Colony
Life Insurance company, and had cor
rected some of the misleading stories
that have been circulated since closing
Of the deal short time ago.
Fort Armstrong garrison has a mem
bership of 80 in this city. The Knights
of the Globe was organized as a fra
ternal insurance society Is years ago.
Primarily it was conceived as a fra
ternal organization, but in order 20
accommodate those of it's members de-
string protection formed an insurance
auxiliary which was called the Cos
mopolitan Life Insurance company,
with headquarters at Freeport, this
state Subsequently the Cosmopolitan
company took over the policies of the
Tribe of Joseph and the Beacon
Lights, two young fraternaI insurance
societies that were in financial diff
ouIties, reinsuring those of their
members who were DESTROYS of afiliat-
Cosmopolitan Weakens.
Recently the Cosmopolitan began 10
lose its hold financially When it's re
ports began to show a deceit of ap-
proximately $4,000 per month it was
found that, in order to avoid failure,
it would be necessary to reinsure
with some more stable company. The
Old Colony Life Insurance company,
with headquarters ut Chicago, a CON-
pany recognized as one of the strong
est of the old line concerns in the
field, made proposition to take over
the assets of the Cosmopolitan and re-
insure its policy holders, and it was
accepted by Dr. w. w. Krape, presi-
dent of the Cosmopolitan, and ap-
proved by the state commissioner of
insurance.
The general membership of the Cos
m0pOlitan. which was operating on the
assessment plan, did not understand
the true condition CT the company, and
there was loud protest against the
transfer. The whole blame naturally
was placed upon the shoulders of DR..
Krape. In some cities legal proceed
ings were instituted, and in these the
Old Colony company was involved.
Had 1O.7GO Members.
The Cosmopolitan company had TO-,
7G0 policy holders. Their average age
is "A years. The Old Colony company
agreed TO continue the insurance Of
these members on the basis of it's pub
lished rates, making one concession,
acceptance of all of the policy holders
of the Cosmopolitan without the re-
CURED physical examination. Harry
A Sibley, a representative Of the Old
Colony company, attended the meet
ing of Fort Armstrong garrison last
evening, and apparently satisfied
those OF the members who were pres
ent that the transaction was regular
and that all who took advantage of
the new conditions would be fairly and
reasonably treated. Mr.. Sibley an
nounced also that DR.. Krape. who be-
came an employee of the Old Colony
when The business of the Cosmopolitan
had been merged, had resigned from
the former company.
Could Not Meet Losses.
The Cosmopolitan had been pract!-
Cdl-9 aSISSlhS " pay IT'S LuS4uUSAo
81 900 for 1888 and had been able to
increase its membership fast enough
to keen ahead of the death losses IN
til the membership reached such an
average age that the company was
daily threatened with a number of
death claims and which would wipe
out its entire sulplus.
1t was only a question Of a short
time when the policy holders of the
Cosm 0pohtan company would find
themselves without protection and
their company bankrupt 1t was bet
ter therefore, that some company be
found which was willing to reinsure
the members.
Must Pay Regular Rate.
In doing this the Old Colony insist
ed that it was necessary that the
policy holders of the Cosmopolitan
should pay for their reinsurance ut
the regular rates. This insures the