Bryan daily eagle and pilot. [volume] (Bryan, Tex.) 1909-1918, 1911-01-11
AN INTERESTING CASE.

The case of Ericsson, now before the
state supreme court on writ OF error,
may result in general shaking up of
faternal beneficiary orders which are
now carrying large part of the life
insurance in Texas and elsewhere
While it appears that the contract I'M
der which the complainant, Ericsson,
took membership and insurance stip-
ulated that the rate of monthly pay
ments was subject TO change without
notice and that the right of contract
as rule is not subject to abridgement
in terms for or against the interests
OF either party; yet the facts brought
out in this case go far toward estab-
fishing a practice of going to ex-
tremes in raising the payments re-
quired Of individual poicyholders that
viii not be allowed 10 stand. In fact,
the issuance Of the writ of error alone
indicates that the highest court will
hold against the right to change the
original contract rate although the
holder Of insurance may have agreed
to it in general terms by acceptance
of the policy an agreeing to the bind
ing force Of the associations bylaws
hot apfbnpi1nd tho In
According to the statement of facts
published by the daily press, Ericsson
became a member Of the fraternal or
der when As years old when his month.
ly assessment was $3.50. This was
raised to s4.92, to 1875 and finally,
when he had reached the age of 63
years, to s23.16, at which point he re.
sisted by legal action. Taking a mean
average Of the first three rates would
give S5.19 paid each month for fifteen
years CT total Of 1924 on a policy of
$1,000. The last raise to $23.16 a
month, or S27S year, would have
made it far more costly than insurance
in the regular insurance companies.
He'a, then. IS q legal knot the supreme
court has to unite Shall the fraternal
companies be allowed to increase rates
in the limits of reasonable provisions
to maintain themselves in solvent
state, as contemplated in their by
laws, and shall such increases be pre-
vented only when adjudged exorbitant,
or shall all changes from the original
contract rate be held void and of no
effect?
If the first principle should be de-
clared no doubt it would result in a +
great amount of litigation; if the lat.
ter, then many Of the fraternal orders ,
would find them selves in bad way :
financially, as most of them doubtless ,
carry large part of their membership ,
on an original contract rate too low to !
protect their treasures and reserve !
funds against depletion by payments
of death claims.
So far there is conflict of judicial
opinion as to the right of the associa-
tons to raise their rates according TO I
the increasing risk of advancing age. c
which the mortuary tables now estab- /
lish with reasonable exactness. The t
district court decided against the as. 0
ISOLATION; the civil appeals court took p
the opposite view; hence the final ap. o
peal by the policyholders counsel f
The outcome of the controversy will y
be watched with great interest all over r
Texas and in other states, as the very fl
life Of some of the fraternal orders a
depends on the right to raise rates,
while, on the other hand, the ability to S
pay on the part of thousands of men a
If small means depends on how high g
he rates may or may not be raised l
Current Issue. Il