The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1912-11-29
CLERK
Must Collect The New
woOdmSn Rate
Has No Authority To Collect
The Old Rate 3
Newark American Tribune)

NANOWoih hhCllC0u
Several days ago, It will be remem.
bered that Judge Robert Shirley, of
the circuit court Of Illinois, handed
down q decision in the matter Of the
advanced rates on insurance in the
Modern Woodmen Of America, in
which he said the rates were greatly
In excess Of what they should be.
An effort was made to see Mr.. Ned
Sherburne this morning regarding the
matter, but this was impossible for
the reason that he Is out of the city.
but Mr.. B. F. Mcdonald was seen and
very courteously told the writer what
the situation Is and what was being
done regarding 1t. In substance he
said:
"The circuit court in which Judge
CShirley sits corresponds nthe state
Of Illinois with our common pleas
court here. At present Mr.. Sher-
burne is In Rock Island, ILL.,. where
he Is comforting with the executive
board Of the Order, counselling as to
the best method of procedure since
the rendition of the decision. The Is
sue in the case is that a recent law
increasing the rates Of Insurance upon
members was adopted at special
meeting Of the head camp at Chicago
last January, and the court rules that
this was invalid for the reason that 1t
was not adopted by two-thirds of the
delegates present at the time. and that
the head camp had no authority under
the laws of that state in which the
charter was issued to the Woodmen
to adopt any such law. Also that the
rates adopted were unreasonable and
unnecessary. The court, however,
held that the bylaw was legally adopt.
ed by the society, that they had
the right under the law to adopt such
a law, but held that the rates were
unreasonable and unnecessary.
81 want to say that in reference to
the above substance of the decision
We are looking forward to the protec.
ton of the society for this is time
when its over one million of members
have attained an age Of its now old
est 100000 members and the rates are
only sufficient to meet the obligations
of the society. This statement Is a
reiteration of the statement made al
the Chicago convention by George
Dyre Eldridge, of New York, the great
est living actuary, who drafted the Ma
tional Fraternal Congress Table, In
his address to the convention, having
been invited there at the instance ol
the Modern WoOdmen of America, and
he further says that rates there adopt
ed are sufficient and only sufficient
to meet the death losses of the society
as they occur In the future. 1t is un
safe to take anything less.
81 want to further say that the case
will be appealed to the supreme court
OF Illinois by the officials of the so
ciety, who are well satisfied that thai
court will reverse the decision of the
circuit court. And further l want tC
say that unless this Is done, and the
new rates as adopted are allowed tc
stand 1t will mean the breaking up ol
the order, for there won't be money
enough to meet the demands occasion
ed by the deaths that are bound tG
come In prOfusiOn from this time on.
In speaking further about the mat
ter locally Mr.. Richard told the re
porter this afternoon that he was col
lecting the new rate dues. and haG
been ever since last June as though
nothing had happened In legal way
and expected to continue doing 30, un
I'll he had instructions from the heat
office. He further said that anyone
who paid dues according to the new
rate could do SO under protest. ant
II the decision of the higher court wa,
against the society that the excess
money would be refunded. He will b,
compelled under the instructions h,
has received, to collect the new rate
and could not collect the old rate ever
with the understanding that II the or
der is upheld In the new rate by tn,
courts that the insured would thel
pay the difference. Further than tina
he had nothing to say In the matter
-,f.-