Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1910-08-15
FRATERNAL INSURANCE
FACTIONS MAY MERGE
Results of Agreement Reached on
Commissioners Proposed
Bill of Regulation
rsnscIal to The Herald

DETROIT, MICH, Aug. 14.-Will the
merger of the two national associations
of fraternal insurance societies having
outstanding nearly ten billions of fra
ternal life insurance result as rumored
from the annual conventions soon to
be held by the two bodies? Inc con-
yentions are to be held as follows
The National Fraternal Congress,
August 1918, Detroit, Mich.
Associated Fraternities of America
August 22-25, Atlantic City.
The A. F. of A. was organized when
the National Fraternal Congress de-
clared emphatically that adequate
rates of contribution by members was
Indispensable to the soundness of the
societies and their ability to pay their
certificates in full. The current cost"
societies and others who were unwill-
i:,s or unable to meet this requirement
as to rates withdrew and organized the
Associated Fraternities of America.
Practically the only gulf between the
two bodies, however, has been the mat
ter of rates of insurance. The societies
which organized the Associated Fra
ternities of America include several OF
very large membership, including the
Modern Woodmen of America.
Recently the fraternal committee OF
the National Association of Insurance
commissioners completed the draft of
a bill for regulation of fraternals, to
which representatives both of the N.
F.. C.. and the A. F. of A. gave their
Endorsement. This Endorsement seemed
to bridge in fact the main issue divid-
ing them. On all questions except rates
necessary for solvency the two bodies
have been and have acted in harmony
their officers being on terms OF cordial
cooperation. The insurance commits
, sioners of the various states have re-
peatedly warned the fraternal societies
that unless those now inSolVent vol
unfairly adopted measures to secure
solvency the departments themselves
would urge regulative measures to
bring 1t about or retire the derellct
society.
The possible merger would unite in
one great congress fraternal insurance
interests having outstanding certiti-
Gates approximately as follows:
Associated Fraternities OF America. So 500 900 900
National Fraternal Congress ..... 45OO'oOo'OVo
MEMBERSHIP MANY MILLIONS
The total membership of the socie-
ties is approximately 100000. This
membership is scattered throughout
the United States, and is powerful
factor in politics. The united support
would insure its prompt passage.
Heretofore the two camps have not yet
presented a united effort in any legis-
iature. When the National Fraternal
congress and the Associated F'raterni-
ties of America agreed upon the dfaII
of n uniform bill two years ago, IT was
supposed that there could be no OPP
position to the measure. However, II
was found that the current cost So
cieties, which make up the Associated
Fraternities of America, actively were
knitting the bill before the legislatures,
and only repetition of such tactlcS
will serve to prevent the merger.
Overtures for the amalgamatlon OF
the two organizations have been made,
and it is the expressed belief of officers
of both bodies that an ultimate merger
will be brought about, whether before
the proposed uniform bill of the in
surance commissioners comes up for
enactment in various states still re-
mains to be determined. The entire
good faith of the current cost socle-
ties in the matter of uniform regula-
tion will have to be evident before the
National Fraternal Congress will seri-
ously consider admitting those socie-
ties to the congress.
ON the other hand, President Dono-
van of the A. f. of A. recently stated:
"Two large bodies representing fra
ternal insurance interests hurt the
general fraternal cause, of course. but
do not at this time think there is any
nossibility of amalgamation."
President Thomas H. Cannon of the
National Fraternal Congress has said;
"As to uniting, the A. F. of A. and N.
r. c. were divided by one fundamental
issue. If the A. r. of A. shows sin
certify in agreeing on a uniform meas
IRE to produce solvency there would
he no obstacle to reunion"