The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1910-09-22
Gives Out Most Interesting
Facts in Regard to Fra
ternal Organizations
GETTING ON BUSINESS BASIS
Great Growth of Membership in Fra
ternal Organizations is Shown in An
nual Report of State Official just
Issued,
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Kenosha people on Friday received
the advance sheets Of the annual report
of State Commissioner of Insurance
George E. Beedle and while for the
greater part the report is given over
to tables of figures showing the bust.
ness done by insurance companies in
the United States that is one portion
of the report that will be of great in
tereet to the thousands Of Kenosha peo-
pie who are members of fraternal So
cieties which have an insurance fea-
ture. The Wisconsin insurance depart
ment during the year has been keeping
close watch on the fraternal organiza-
tions and in speaking of this sort of
insurance Commissioner Beedle says:
"Tne fraternal situation remains
practically unchanged. A number of
societies are increasing their member
ship rapidly, while others are losing
members and facing ultimate dissolu-
ton, due to increased assessments that
must come with advancing age, where
no adequate reserve is provided during
the early years Of the policy,
Most of the societies are accumulat-
ing some funds in excess Of current
cost which they designate Preserve
fund, +" guarantee fund, +" etc., but it
should be strictly understood that such
funds as they. now exist offer no Sc
curity or guaranty that the claims will
be paidAat death. Some societies real
ize this fact and are making strong
efforts to adopt adequate rates.
The amount of insurance in force in
the sixty-two societies licensed to do
business in this state at the beginning
of the year, was $5,S7S,923 ,2o9.26. At
the end of the year the amount in
force was $6,201 ,495, 548.oO, an increase
during the. year of 5.48 per cent. The
number of members at the beginning
Of the year was 4,228,552. At the end
of the year the number was 4,510,069,
an increase of 6.65 per cent. A tend
ency that is noticeable in these figures
is the decrease of the average policy in
force. The average policy in all the
societies decreased from 800 to ST.
375, decrease of $15 during the
year. This decrease is even more
marked among some of the larger or
ders. In the Modern Woodmen of
America, the average policy decreased
from 81, 500 to 1882 or SIT. In the
Royal Arcanum, the average policy de-
creased from $2,068.50 to $2,O30.7e,e or
$3.50. The societies reporting to the
department collected during the year
500, 500, 1922 from members, $2,946,-
1855 from interest and rents, $780,
28S.54 from sale of lodge supplies, and
$500, 146.29 from all other sources. Of
this amount, $176,639.75 was returned
to applicants, thus leaving a total net
income of $73,415,0 50.96. They paid
for losses and benefits during the yeal
$50,5S1 ,876.25, for expenses of manage
ment $9,715,367.71, and SAL ,143.47 for
other purposes, making total disburse-
ments of $60,738, 387.43. This leaves an
addition to assets for future use of
$12,676, 663.53. This excess of over
twelve and one-half million dollars, rep
resents an overcharge which should be
kept as a reserve for future losses and
contingencies. On the success with
which they are able to account for this
fund, will in large measure depend
their future. The accumulation of
fund may not be difficult task, but
the proper accounting for this fund so
as to do justice to the members, is
quite another problem. It is safe to
say that if an inventory could be taken
OF the amount contributed and the
amount received In the form of protec-
tion to the individual members, some
glazing discrepancies and inequalities
could be shown. It may be said that
this is permissible in fraternal societies
on the ground that strict accounting
on equitable lines is not a part of
the fraternal system; that the spirit;
and principles of fraternity, mutually
and brotherly love, ETC., takes the place
of equitable accounting, etc. If this be
true, then it becomes a maxim that in
capabilities and crudities must be retain
ed as a part of the fraternaI system.
If the inequalities could be so directed
as to favor the weak and needy mem
.bers, then objection would lose much
of its seriousness, but that is not the
case. The ever alert and well to do
will continue to pay their assessments
as long as they are receiving protection
at less than cost, while the poorer class
es, who are less alert, will pay the
cost of their own insurance and also
the deficit of those who are paying too
little.
There has been much agitation in late
years about the enactment Of laws to
compel the societies in adont adeouate