The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-11-22
CANNOT BOOST
NO0DMEN RATES
lnsursents win an Important Vic,
tory In Court Decision Which
Holds Increase In
necessary.
in PROSPEROUS SHAPE

Order Il Sound and Strong With No
Good Reason for Making
tho Payments
Higher.
limited Press Leased Wire Service
SPRINGFIELD, ILL.,. Nov 22.-In-
surgent Modern Woodmen of America
won an important victory today when
Judge Robert B. Shirley, in the Sang
anon county circuit court granted
their plea for an Injunction restrain
ing the head officers from putting in
to effect the proposed rate increase.
The decision affects more than a
million members throughout the
United States.
The complaint made by the "insurg-
ents" In their arguments that the pro-
posed rate was passed by the head
camp with less than the two-thirds
vote is not recognized by the court.
Judge Shirley finds that the Mod
ern Woodmen organization is in a
prosperous state financially and says
that any rate advance that may be
needed should be made gradually.
Upon the future action OF the head
officers will depend the course to be
followed by the insurgents In suits
inow pending in circuit courts at Gales
burg and Galena, Ill.,, and at Hastings.
Neb.
\ The decision establishes a preced-
ent for all future insurance society
cases as to the right Of such societies
! to change the charter and contract
over which they have issued con
4 tracts g.as
To the local insurgent committee
belongs the credit for the victory In
asmuch as it took up the fight ant
4 pushed 1t through after the insurgeni
q convention at Minneapolis had decid
d ed that nothing could be done legal
jly until 1914 when the insurgents
could elect new officers.
4 The court holds that the society hat
4 right to create a surplus and change
4 the rate. On the main point as t.
i the reasonableness Of the increase
il however, he said:
at is not claimed that there is an!
i present necessity for raise in rates
nor does any appear. With the pres
J, ent rate and an average OF assess
ments less than twelve year, thu
society had accumulated in the bene
4 fit fund on December 81, 1911, s9,073,
5O119. by means of the assessment
producing more than the fund requif
ed. while in the general fund ther'
were s660,93344.
t at is estimated that the propose'
change in rates would produce an ac
emulation OF surplus Of from SIS
!. coo, 900 to s2o,oooooo a year. Certain
1t Is, I. would accumulate very larg
: sum The court is of the opinion nj
such accumulation was contemplate
! by section Of the statute. and TO
!. this reason the rate fixed by the by
: laws Is excessive and an unreasonable
: burden upon complainants and al
b members of the society, and not bint
! ing on them.
( 'sThe court finds the equities wit
the complainants and the prayer fo
t the injunction herein is granted an
! the injunction is made perpetual"
. Northcott's opinion.
SPRINGFIELD, Ill. Nov. 22.-W. 4
! Northcott, past head consul of th
9 Modern Woodmen OF America, aske
4 as to the immediate effect Of Judg
9 Shirley's decision today on the rat
question, said:
!, Judge Scofeld, one OF the leadin
Y attorneys for the head Office in thi
case, holds that the appeal taken II
day suspends Judge Shirley's iniun
tion. and that the head officers can g
ahead and enforce the rates unit
the higher court determines the ma
! ter.
4 There is, however. some differenc
: OF opinion on this question and | q
mot know what course the head @
9 ficers will take in the matter, pendin
g appeal.
It Judge Shirley's decision sustain
q the head Offices on all points of La
r and in this respect differs from tt
Iowa decision. He grants the injun
T. ton on the sole ground that he thinl
the new rates unreasonably high. tt
y Judge differs with the actuaries WI
testified in this matter, and his OPT
II ion demonstrates the difficulty of pr
" senting. an intricate mathematic
A. proposition such as the insurance ra
It question to the layman.
IT "The new rates are not only nece
Is sary, but they are the lowest possib
II = 10 =
CONTINUED ON page 2.)