ZajednicÌŒar = Fraternalist. [volume] (Allegheny, Pa.) 1894-current, 1955-10-05
Ins. Commissioner Francis R. Smiths
Speech Before 9th Convention Delegates
Mr.. Chairman Delegates to the Ninth Quadrennial
Convention of the Croatian Fraternal Union

is pleasure for me ITO appear before the assembled
delegates of the Croatian Fraterna Union of America
the occasion of your TX Quadrennia Conventon the
61st year of your existence.
pleasure is multiplied when realize that
you are the of the largest society
chartered in the State of Pennsylvania This is small
matter of the fact that Pennsylvania is known as
the Fraternal State" for has fraternas doing
business within its bounds than other state in the
We compliment you on the that you currently have
a membership in of 100000 assets approximatng
$24OO Insurance in Force in excess of SS3OOOOOO
you that the short time have been Insurance
Commissioner of the State of Pennsylvania and in my ex
perence during that time with the various companies not
whstanng the nature of their existence he record that
have just tedconcening youis not small business
it is big business and of that you should be extremely
proud know you
confident that the pioneers of your Society, lin
their ondet hopes and expectations dreamed that
this goal would be achieved That has been achieved
credit to followed the early pioneers to the
date of your present convention for these latter men
whose united efforts brought about this rea
zaton will continue to grow and beyond the
fondest dreams and expectations of those of youwho are
here today 1T will depend upon and those who
follow for the selection of your leaders, in the out
lining of your program the carrying out of your prn-
cipes, this greater goal and will be achieved.
would do we'll the occasion of my addressing the
largest fraterna society," of which have the pleasure of
supervising to make few comments on the nature and
need of fatenas 1t would be safe to that the very
earliest form of insurance mans based the
faterna system The very first insurers the English
Friendly Societies. Their plans crude the benefits paid
small the membership confined to the poorer
casseshe protection given by them in the nature of sick
burial benefits practically form of life insurance
The very earliest regular life insurance company/was
1.-THE Amicabe Society for Perpetual Assurance Office
which was founded 1706 in London by Royal Charter
The scheme simply to raise fixed contribution from
each member and from the proceeds to distribute
tain each yeaamong the representatives of those who
died during the year.
From this your large insurance companies in the
various fields of underwriting Covering practically every
risk that is known to Throughout the of deve
opment of the insurance industry fraterna continued to
hold their places and to prosper and grow until today
From the latest statistics available to me there is in
excess of billion dollars of insurance in fraternal
ceties assets in of two and oneha billion doars
benefits paid to date of approximately and onehaf
billion dollars of the end of the business year 1884,
fraernal societies paying total benefits to their cert
fcate holders at the rate of approximately $OOO per
month This, too tell you is no small business.
Even though you engaged In a business which ap-
proxmates the magnitude of life insurance companies
there still well designed distinctions and differences be-
tween fraternals and life insurance companies.
All of you of these differences Members of
your family and friends recipients of the benefits which
bestowed upon you by of membership IN fra
terna societies. In the hope of not being too pedantic
would like quote you the distinction between frater
and life insurance the courts of this
Commonwealth have to accept. VS..
"The general object or purpose OF All insurance COM
panys afford indemnity social security against loss
engagement not founded in any phlanthropc bene
voen charitable principle 1t is merely business
ture in which for stipulated consideration, pre-
MUM per cent engages to make up certain agreed
mount any specific loss which another sustain and it
may apply to loss of property to personal injury to the
loss of life TO grant indemnity security against loss
for considerations only the design and purpose of
company but is also the dominant and char
actersc feature of the contract of insurance What is
known beneficial association however has wholly
different object and purpose view The great underlying
purpose of the organization is not to indemnify
against loss It's design is to accumulate fund from the
contributions of it's members for beneficial protective
purposes ito be used in their aid relief in the mis-
fortunes of Sickness injury death The benefits al
though secured by contract and for that to mi
ted assated to the proceeds of insurance not
considered uch societies rather of phanthropic
benevolent character Their beneficial features be
of restricted character. The motives of the
members may be to extent selfish but the principle
upon which they rest is founded in the considerations
toned These benefits by the rule of their organization
payable to their unfortunate out of funds which the
members themselves contributed for the purpose
indemnity security against oss but proec-
tive relief in of sickness injury to provide the
of decent burial in the event of death Such soci