Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1912-09-16
WOODMEN OFFICERS ANSWER
File Reasons for UNFOLDING Raise in
Society's Rates.
gG INJUNCTION INJURIOUS
Allegation Made Billion that Dollars
Dollars Would BE Taken From
Members If Courts should Hold +
Up New Schedule.

DEs MONIES, Sept. 1s-That the
Modern Woodmen of America would ul-
timately achieve a defalcation of $1,000
100000 If long restrained by the courts
from putting into effect the readiust-
msnt Of rates adopted in January 1912.
at Chicago by the Head Camp, is alleged
in the society's answer to the Injunction
proceedings at Des Moines to restrain
putting the. new rates into effect.
The case Is set for hearing in district
court at Des Moines September II. In
similar proceeding at Springfield. ILL.,,
the hearing before Judge Robert B. Shir-
ley began September 3, the case was
taken under advisement.
The plaintiffs allege that the new by
laws making the new rates effective as
to new members on May !, 1912, and as
to old members on January /, 1918. are
null and void because the record does
not show their adoption by two-thirds
OF the members Of the head camp and
because the society was without au-
thority to adopt such amendments to
its bylaws, the same being in conflict
with the Illinois statute OF 1883, under
which the society was chartered in 1884,
and with the articles of association and
original bylaws, providing that all
death losses should be met by assess
ments on surviving members.
1t is further alleged that a seerve fund
lis foreign to the purposes of fraternal
society doing business on the post
mortem assessment plan, that the surplus
of $8,S54,453.10 in the benefit fund at the
beginning of the year represents exces
sive and unlawful assessments, and that
the new rates are unnecessary, oppres-
sive. unreasonable unJustly discriminat-
ing and in violation of the contract
rights Of the plaintiffs
The society answers that the new by
laws were adopted by the required two
thirds majority under the amended stat.
utes and articles Of Incorporation and
have been approved by the proper state
officers; that the delegates to the head
camp were duly chosen; that the So
ciety has never been in practice post
mortem assessment society, but has re-
quired of all members the payment of
one assessment in advance, and that the
new bylaws violate no contract rights
as every contract has been issued SUBJ
ject to any chonge in the bylaws the
head camp might adopt.
New Rates Reasonable,
1t Is further answered that the new
rates are reasonable, necessary and not
discriminatory except that rates for
younger members are '1oaded" to enable
the society to carry its older members
for &2250o.oO0 less than 1t will cost the
society to pay their certificates II the
same mature according to the societys
mortality table. 1t is alleged that IL the
society were prevented from putting these
rates into effect. great and irreparable
injury would result and the society ulti-
mately would be thrown into insolvency
and be obliged to default on no less than
81, ,0Oo, 100000 Of obligations assumed,
amounting on December 81, 1910 to $l,7ss,-
oes, 900.
1t is further stated that a valuation Of
the society made as of December 81, 1910
disclosed the following condition:
Present value of liabilities .$5S4, 17S 221 70
Present value of assets. ........ 313, 332, ,959. .W
Deficiency .... 1910 OAK 262 II