Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-09-05


This plan necessitated q char
ter from Congress requiring the
company to maintain q legal re-
serve on every policy. It tended
to equalize the costs to different
age groups. Other fraternal or
CARNATIONS fought it. bui
eventually almost universally
adopted it when 1t was seen how
Masonic Mutual's (Acacia's)
business jumped ahead lks
magic.
The year after President Hard.
ing signed q bill in 1922 making
Acacia an old-line instead OF fra
Iternal company. Mr.. Montgom-
cry fostered another idea.
Noting the high lapse rate OF
insurance. he advocated selling
on q quality basis" to fit the
needs of each policy holder.
To further encourage agent
interest in each policy sold, he
devised a plan wherein the agent
receives a monthly income rather
than merely a commission for
each new policy.
Slow 70 Adopt Plan
Other companies were slow to
adopt the plan, but Mr.. Mont
gomery was gratified Is years
later that more and more COM
petitors were finding it prac-
ticable.
Rivals were surprised to read
on Acacia stationery this advice:
do not lapse your policy in
any other old line company to
take one in Acacia. Do not lapse
your policy in Acacia to take one
in any other old lire company
You lose in either case"
In 1926 competing companies
saw Acacia adopt another radi-
cal departure. Mr.. Montgomery
and his fellow policy-makers in
troduced a new low premium
rate plan. It was in line with
Mr.. Montgomery's contention
that mutual companies could
safely sell insurance at a rate
comparable to stock life insur-
ance companies, and return COM
parable dividends to policyhold-
ers instead Of shareholders.
He waged an active campaign
for a general reduction of insur-
ance rates. urging presidents
throughout the Nation to unite
in an attempt to reduce wasteful
policy lapsation. He commended
that rates were higher because
mortality tables were needlessly
padded to offset emergencies
such as epidemics. which under
modern science were not likely
to occur.
On the same basis he fought
against maintenance of huge
surplus funds. which increase the
cost to poiicyholders. He pointed
out that the Nation had passed
through depression. boom anc
war, and still insurance sur
pluses scared. :
Sought His Advice
Mr.. Montgomery. in his SEEM
ingly inexhaustible way, ex-
pounded his theories before con-
ventions and congressional COM
mittees. His advice was sought
by one of the latter. q House
committee investigating mo-
nopoly power. as recently as the
winter of 1949.
To his associates, Mr.. Mont
gomery qualified as one Of the
last Of the self-made empire
builders who succeeded by self
application. Until his 10th birth
day he daily spent as much as
IA hours at the Office. A master
of detail, he worked like an au-
tonaton, but not without vision
Even after his 80th birthday
Mr.. Montgomery would work as
long as five hours a day. In his
more active days he could call
all the $50 home Office employees
by their first names. He was
never too busy to listen to a per-
sonal problem, and his door al
ways stood open to any employe
without Formally.
Under his aggressive leader
ship Acacia outgrew four build
ings before erecting its own huge
plant facing the Capitol. From
a one-man firm, 1t grew to one
now embracing more than 1900
employees, nearly half Of them in
the home office. and the others
working out Of rs field Offices
throughout the Nation.
On June %, 1850. the COM
pany celebrated passing the 81
billion mark for insurance in
force, putting 1t in a class with
only IS others among 800 life
insurance companies.
The company had needed n
years to reach the half-billion
mark and only seven more years
to double that figure.
Born ON Farm
Mr.. Montgomery's life story
began December 26. 1869, In an
humble home on a 10-acre farm
in County Tyrone.
Four days before the Statue
OF Liberty was unveiled. the
young Irish immigrant arrived
in New York harbor at the end
of a SIS trip via Storage. That
was on October "a, 1885.
He got q job as a bundle
wrapper in a New York dry
goods store at a salary OF S. a
week and began exchanging
letters with his one friend in
the New worlds woman who
had left the County Tyrone a
few years before him and had
settled in Washington
The Irish farm boy didn't like
the big city life and his friends
description of the small town
of Washington appealed to him.
His friend had a sister who OPP
Grated a grocery on the them