The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1909-08-06


line companies as.cxa nples.
The split betsgeen sthe orders which.
have declared for rates adj anate 10 re-
deem their nutsta ding certt fcates and
the aecedlng ones IS expected to be
.trreparahly wtdened Or healed Eat the
convcntio this year, accordingly as the
societies apers isting In giving cheap
rates subscribe TO the reform or not.
For the frateranl congress has begun
a determined effort to secure State
Legislation which will protect 4heepub-
lie from the orders which refuse to
heed or; act ton the warnings OF the In.
surance departments that they cannot
pay out to widows and orphans the
death benefits contracted for II the
premiums or assessments do not pro
vide the money with which TO do It..
One order with nearly n million mem
bcrs and billion and half of out
standing benefit certificates was fore
cd to retire from the congress because
OF the advanced stand taken by the
congress for legislation and rate read
justment.
The situation differs from that of
the building and loan concerns before
State supervision In Illinois and other
States exposed the rottenness Of many
and precin!tatcd a crash. because the
Fraternnl Congress has declared open
ly that the advancing age of members
of "cheaprate" societies compe1s a
radical change OF rates TO make them
meet their obligations. President A..
T.. Hereford. last year in his annual
message declared: "On December 81.
1905. there was 500 frntcrna1 beneficl-
airy societies in the United States and
Il in Canada, which number is rapidly
increasing. These societies range from
the highest degree Of Responsibility to
the worst Kind of fakes. They had
nearly 100000 certificates in force.
with Indemnity amounting to almost
Sc. 000.oO0.000 and their receipts In
that year amounted to more than s1S.-
600. 000.s. This vast army OF 100000
trusting. confitinE members is march
ing to old age and to certain death:
the SO. 900. 100000 Of obligations arc
rapidly reaching maturity. The socie-
tics that arc operating on Inadequate
rates OF assessment cannot possibly
meet their obligations. If the continue
upon their present basis. and MS a
consequence the time Is not far distant
when these societies must so ont of
existence and their members be de.
prlved OF promised projection and the
fraterna1 beneficiary system condemn.
ed us the building and loan associa-
lions were a few years ago. unless
some action Is taken b.. the legislative
tolies in this country requiring all OF
the societies to operate on n solvent
basis. The Northumberland Congress
has pronounced In favor Of adequate
rates. and the societies connected With
it stand for honesty. for solvency and
for the fu1fflment of promises made"
Tho actrtaries aud executives have
shown keen interest II not anxiety
over the altered status Of the frnternnl
insurance movement since the con-
gross took It's firm stand for adequate
rates. Prior to that time the lircst
predictions concerning fraternal and
fnr frnr1.,
made. but tho record shows THAT of all
insurance written during 1907 that OF
the old line companies was but 20 per
cent more than half and of insurance
In force Jan. 1. 1905. that of fraternals
was ass per cent Of the whole.
Under tho stimulus given the safe
and sound frnternaIs by tho adequate
fltc decision the Eains In insurance
amounting during the last year to over
n quarter OF n billion dollars. Is likely
to give the Old line companies merry
chase. Their advantage Is In cooper
ntion and low cost Of management
The reports to the congress last year
include this summary: "Thc comhin-
cd expenses for management during
the year wore $S.315.22S.43. This ex-
pcnse per capita for management WINS
sl.9: as compared with SIS? for 1906
and O$91 for 1905. while based on ben
Gifts paid It was 13c on the dollar as
compared with 12Hc for 1906. and In
resepct to protection in force the gross
expense last yenr was $l.32 for 1906.
Zeno NJ Host when commissioner
of insurance In Wisconsin,. was an ar
dent champion of fratcrnn1 insurance
about which he said:
stE1ra arnni errlefias Inv fhnir mri hrl