LIFE INSURANCE 
 
 By ABB LANDIS 
 
 REVIEW of the Business as Conducted by 
 Friendly Societies, Fraternal Orders, Life Com- 
 panies, Industrial Companies and Open Assess- 
 ment Associations, and History of the Five Kinds 
 of Organizations. Explanations of Valuations. 
 Methods of Computing Annual and Single Premiums for In- 
 surances and Annuities, Application of Commutation Columns, 
 Formulas for Benefits and Contributions. Compilation of 
 Reserve Values and Forty Important Tables of Contributions 
 and Commutation Columns for Death and for Disability and 
 for Combined Death and Disability Benefits; and Six Mortal- 
 ity Tables for Males, for Females, and for Males and Females 
 Constructed on the Experience of Forty-three Fraternal Bene- 
 ficiary Societies. Derived Values from the National Fraternal 
 Congress Table of Mortality at 3%, 3% and 4% Interest, 
 and the American Experience Table and 4% Interest. Com- 
 parison of Reserves Accumulated under Different Mortality 
 Tables and Different Forms of Contracts. Illustrations of the 
 Prospective and Retrospective Methods of Valuation are given 
 in detail, with their relation to the Provisions of the Mobile 
 and New York Conference Bills, together with Instructions 
 for the Compilation of Statistics for Valuations and Annual 
 Reports. 
 
 PRICE, $10.00 PER COPY 
 
 (Copyright, 1914, by Abb Landis) 
 
 NASHVILLE, TENNESSEE 
 
 BRANDON-NASHVILLE 
 
INTRODUCTION. 
 
 In response to an announcement that I would revise and rewrite the five books, 
 "Friendly Societies and Fraternal Orders," "Insurance Past and Present," "Life In- 
 surance Premiums, How Computed, Tested and Valued," "Analyses of Fraternal So- 
 cieties," and "Life Insurance Problems" (all of which were out of print), there were 
 received one hundred and nineteen subscriptions at $10.00 per copy for the proposed 
 publication. The actual expenses incident to the publication exceeded the total of 
 subscriptions. To many who had copies of the five books, $10.00 per copy appeared 
 high for what they believed would be largely a duplication of the books already pur- 
 chased. In consequence, many who have always been purchasers of other publica- 
 tions are not numbered amongst the subscribers for this book. However, it is not a 
 duplication of previous books, and I am responsible for making a somewhat mislead- 
 ing first announcement. It was in mind at the time to merely revise and rewrite, but 
 1 have reproduced only the pertinent parts of the other publications, and give more 
 pages of entirely new matter than the total pages of the other books, not including 
 their tables. When this fact becomes known I hope to receive additional orders for 
 the limited number of extra copies over the subscription edition. 
 
 The new and exclusive tables given in the Appendix should be worth $10.00 to 
 any insurance office, or to any consulting actuary. At any rate I have tried to make the 
 book worth the price. To fraternal beneficiary societies, in addition to the two score 
 of important tables, the discussion of Readjustment, Expenses, Computation of Con- 
 tribution Rates, Valuation, Reserves, Actuarial Principles and the Application of Formu- 
 las should give $10.00 in value. 
 
 Not as an advertisement but as a reason for the subscription price, I have made 
 this introductory statement. 
 
 Many times I have been called as a witness in court proceedings, antf invariably 
 the attorneys desired to impress the court by having the names of the societies which 
 have given me employment as an expert. Recently I was called upon for such a 
 statement, and in giving a list of fraternal beneficiary societies on pages 75-79, it 
 occurred to me that it would be a mark of appreciation to indicate by a star those 
 which had favored me. There have been changes in official management, and there 
 have been changes in actuarial advisers, but there remains to me a lasting advantage 
 from the knowledge acquired through personal service rendered to the more than 
 140 organizations, with their varied plans and experiences. 
 
 Nashville, Tenn., March, 1914. 
 
 A. L. 
 
ERRATA 
 
 Page 30. L;nt line, Oth paragraph, "not" should be "now." 
 " 47. Line 3, Oth paragraph, "Oronhyatekha," not "Oronhyatebeha." 
 
 5X. Line 2, last paragraph, "1899," not "1890." 
 
 63. Line 8, "Legion," not "League." 
 " 77. -Line 29, "Slavonian," not "Salvonian." 
 " 78. Line 13, "Protective," not "Protection." 
 " 93 and 94. -Last and first paragraphs should be leaded. 
 " 94. Line 6, "and," not "an." 
 " 119. Line 16, "low," not "lower." 
 " 192-3-6. Should be general headings. 
 " 204. Line 3 from bottom, "S," not "R." 
 " 205. Line 7, "20," not "c ." 
 " 207. Next to last line, insert "of 1" after "contract." 
 
 208. Twelfth formula, last term should be, " 1 2 ( N " - N " + n ) . " 
 
 " 210. Third line from bottom, "s" in "month's" out of alignment. 
 
 " 211. Last formula, "1000P x = 1000M x -J-(N x +eM x -(R x+1 -R x+1+e;t )." 
 
 " 211. Line 9 from bottom, "insured," not "insuranced." 
 
 " 215. 'Line 10, for "Another," write "A quite." 
 
 " 216. Line 10 should be "a x -a x+1 ." 
 
 " 210. In table, heading should be "No. 1 Continued." 
 
 " 216. In table, lines 39 and 40, "a :2 a->i" should be "a*-' a 23." 
 
 " 217. Line 4th from end of paragraph 1, should be "69," not "79." 
 
 " 220. Line 8, strike out comma after "death." 
 
 " 224. Line 10, "following" should be "preceding." 
 
 " 232. Line 12, "insurance," not "insurants." 
 
 " 234. Lines 7, 8, 14 and 26, should be "iV," not "iV 35 ." 
 
 " 234. Third formula should be "P 38 x' - s =PXu3 5 -k 35 =,V36." 
 
 P35 P35 
 
 " 235. -Line 18 should be comma, not semicolon, after "protection." 
 
 " 240. Line 12, "the," not "he." 
 
 " 241. Line 6, should be "amount," not "number." 
 
 " 245. Line 32, should be " 27.82," not 50.58." 
 
 " 263. Line 15, after "gives" insert "the summation of." 
 
 " 265. Line 9, "heirs," not "heir." 
 
 " 267. Line 18, "I" instead of the editorial "\ve." 
 
 " 271. Line 8th from bottom, "bow-wows," not "bow-bows." 
 
 " 283. Line 17, change "three" to "two" and "four" to "three." 
 
 291. Line 20, "the," not "these." 
 
 " 299. -Line 25, "an," not "as." 
 
 " 301. Line 36, "Ajy," not "A.'y." 
 
 " 304 and 5. Heading "1000q x v," not "1000q x v*." 
 
 " 342. "log. i 5a " should be ".81023," not ".91023." 
 
 " 343. "In heading and bottom page d* should be d x . 
 
 " 354. Table XXXIII, "i*" should be "i x ." 
 
 " 358. Add for reference pages at "Group Insurance 98-9. 
 
 " 359. Add for reference pages "Mortuary Accretions 200-1 . 
 
 " 364. In proper place insert: 
 
 "Maternity Benefits 300-1 . 
 
 "Benefits for Member's Wife - .301-2.' 
 
 "General Comnents_. 3i)2-3.' 
 
ORIGIN OF FRIENDLY SOCIETIES. 
 
 Associations of the nature of Friendly Societies existed two or three centuries 
 before the Christian Era. In ancient Greece they were called Thiases and sometimes 
 Evanes. Thiases is derived from Thiaso, which means to lead a chorus or dance. 
 Evanes is derived from Evanos, which signifies a contribution, or a collection, especially 
 for a feast. It also means money, in the same sense as evanizomai, meaning "I beg an 
 alms" or collect, or get together alms. The societies were formed for the purpose 
 of celebrating festivals in common to some divinity, and the members being so asso- 
 ciated in pleasure (and semi-religious worship) fell into such close relations and good 
 fellowship that it followed inevitably from the promptings of human nature that they 
 should render assistance to those who might be reduced to want through sickness. 
 Collective pride and brotherly feeling led to the custom of providing suitable funerals 
 for deceased members. Thus grew up private corporations (recognized by the State), 
 which had their laws, officers, degrees, contributions and benefactions, and their regu- 
 lar meeting places. They were, in ancient times, numerous in many important cities. 
 At Rhodes there were the "Companions of the Sun," "The Sons of Bacchus," of 
 "Minerva," of "Jupiter Atabyrius," of "Jupiter the Savior." At Athens, the "Hero- 
 ists," the "Oregons," and the "Thiasotes." 
 
 A society organized for the worship of "Diana and Antinous," according to an in- 
 scription found 19 miles from Rome, at Lanuvium, made regular collections from 
 members for the expenses of feasts and festivities and for the funerals of deceased 
 members. In case of death there were allowed for funeral expenses 300 sesterces 
 (about $11.00). The entrance fee was an amphora of good wine and 100 sesterceb 
 ($3-75) and the monthly dues of five asses (about four cents). 
 
 Most friendly societies are of modern origin. There is really no direct connection 
 between them and the "Gilds," much less the more ancient orders. Association of 
 individuals at public houses, or in the same kind of work, or otherwise, brought about 
 good fellowship and personal regard, and produced the effort to assist one another. 
 Human nature has been the same for ages and, whenever subjected to similar con- 
 ditions, similar results follow. Thus have been formed the Friendly Societies of 
 England and the Fraternal Beneficiary Societies of America. 
 
 The Friendly Societies of Great Britain had their real beginning with the Act of 
 1/93, and the present organizations are the direct "outgrowth of the institutions which 
 accepted the benefits of registration under that Act. The Fraternal Beneficiary Orders 
 in the United States had their real origin in the starting of the Ancient Order of 
 United Workmen, by Father Upchurch, in 1868. Unfortunately, he was wholly igno- 
 rant of what had been accomplished in Great Britain and failed to profit by seventy 
 years of available experience along the lines upon which he was starting his great 
 work. Other fraternal orders followed the A. O. U. W. in rapid succession, but none 
 of them took advantage of similar experiments across the Atlantic. It will be seen, 
 therefore, that the fraternal orders of America, while operating upon independent 
 lines, have in effect repeated the history of the Friendly Societies in respect of promises 
 to, and payments by, their members especially have the errors and mistakes in rela- 
 tion to benefits and contributions been reproduced in the conduct and management of 
 
-.2 
 
 ,":**> i L.5." *.- 
 
 fraternal orders. Had lessons been learned from the Friendly Societies these mis- 
 takes and errors could have been avoided. 
 
 Mr. George F. Hardy, Fellow of the Institute of Actuaries, and one of the most 
 noted and prominent of English mathematicians, wrote a prize essay upon the Friendly 
 Societies in 1887, and gave the following succinct: 
 
 HISTORICAL SKETCH. 
 
 In considering the origin and development of the friendly society system, it is 
 necessary to recognize the twofold purpose that these institutions have fulfilled. In 
 the view of the actuary they are merely associations for the mutual assurance of certain 
 benefits, generally in the case of sickness or death of any of the members. This, how- 
 ever, represents only one side, and that by far the most recent, of the work of these 
 institutions. A not less prominent and much older feature is to be found in the pppor 
 tunities for social intercourse, companionship and mutual help, which such associations 
 naturally afford wants common to man in every state of society, and as old as civili- 
 zation itself. Hence, from the earliest times, small communities have existed, drawn 
 together by the common interests, tastes or pursuits of the members, such communi- 
 ties being originally purely social in character, subsequently charitable and mutually 
 protective, and only in recent times financial. 
 
 Prior to the thirteenth century, aid was generally dispensed to the necessitous 
 by the church. Being the central and only receiver of contributions for this pur- 
 pose, and the sole dispenser of relief, its charitable functions covered the same kind 
 of wants that our friendly societies deal with at the present time. These functions 
 were to feed and clothe the destitute, to visit the sick, to house the homeless, to 
 liberate prisoners, and to bury the dead in its own words, vito, poto, cibo, redimo, 
 tego, colligo, condo. 
 
 In the thirteenth and fourteenth centuries a great social change took place. Agri- 
 cultural serfdom was gradually breaking up, industries began to develop and a general 
 tendency was manifested by society to forsake the socialistic order of things. As 
 regards the relief of the poor, the first effect of the change was the taking over of 
 part of the functions' hitherto performed by the church by smaller communities of 
 persons, each community, or guild, as they were called, having a more or less dis- 
 tinct and well-defined object. 
 
 The following paragraph in the statutes of the Guild of Smiths of Chesterfield is 
 of great interest: "When a brother is ill and needs relief, then he shall receive half 
 a dime daily; when brethren fall into poverty, then they shall go singly, on certain 
 days, into the houses of their brethren, where each one shall be received civilly, and 
 he shall obtain whatsoever he may need in the shape of food and clothing, as if 
 he were the master of the house himself; and he shall also receive half a dime, like 
 those who are ill, and then he shall go his way in peace." It is to these guilds that 
 we must look, rather than the protective, trade guilds, which then existed, for the 
 progenitors of our modern friendly societies. 
 
 The period of the Reformation was another era of change in the direction of self- 
 assertion and self-help, and the general tendency affected the guilds quite as much, 
 perhaps, as the change from Catholicism to Protestantism. In the fifteenth century 
 they began to decay. Corruption and abuses were not uncommon amongst them, as 
 in the convents and other religious foundations. This state of things culminated n 
 the sixteenth century in the passing of Acts 27, 31, and 37 of Henry VIII, and i of 
 Edward VI, which enabled the king to confiscate the property of both guilds and 
 monasteries. 
 
 In the sixteenth and seventeenth centuries some of these institutions which .had 
 survived the preceding period, and still retained sufficient cohesion, were reformed, 
 whilst many new societies were started, embodying some of the features of the guilds 
 but in conformity with more modern ideas. 
 
 The relief and economic system of these societies, moreover, underwent a radical 
 change in the direction of requiring fixed contributions to be made by the members 
 for the grant of specific benefits. As an illustration of the financial basis of such 
 societies, it may be interesting to note that in one society the subscriptions were 2d. 
 weekly, to provide for benefits during sickness, of 6s. weekly for the first year, and 
 
3 
 
 3S. 6d. per week for the remainder of illness, while a levy of 6d. per member was 
 made at each death. 
 
 About the beginning of the eighteenth century a movement arose in the Guild of 
 Masons which exercised a great influence in stimulating the rapid growth of friendly 
 societies. By the introduction of mystic rites and observances, and by other changes, 
 which need not be detailed here, the Guild of the craft of masonry was transformed 
 into the Order of Freemasons. 
 
 The friendly societies existing at the close of the eighteenth century appear to have 
 been very similar in the nature of their operations to those of the present day. It is 
 difficult to estimate, with any degree of certainty, the number of societies or their 
 aggregate membership, but there is good reason for believing that they were at least 
 as numerous in proportion to population as at the present day. Sir P. Colquhoun, 
 in 1796, estimated the number of societies in London at 600, with a membership of 
 70,000, while Sir F. M. Eden, five years later, considered that the whole kingdom 
 might number 7,200 societies, with a membership of over 600,000. The amount of the 
 sick pay allowed seems somewhat larger in proportion to wages than now, 6s., 8s., 
 and los. a week being common sums ; while the modern system, now all but universal, 
 of reducing the sickness allowance in cases of prolonged illness, appears to have been 
 at this date, rare, although, in some cases, the allowance ceased after a specified period 
 of 13, 20, or 26 weeks of illness, and in others provision was made for the super- 
 annuation of members at a reduced rate of pay. 
 
 It was very usual for societies at this period to limit their membership 101, 81, 
 and in some cases 51 or 41 members, was made the limit of a society; though what 
 superstition lay in the use of these numbers it is impossible to say. 
 
 The rules of the societies, as in earlier times, almost always exercised a paternal 
 care over the morals and even the opinions of the members. 
 
 The friendly society system, on the whole, worked well, but it had many defects 
 which became increasingly apparent. The societies having no legal status were open 
 to fraud and corrupt practices, no prosecution being possible except in the names of 
 all the members, the societies being regarded at law as partnerships. The uniform 
 premiums did not answer well; as members grew old, younger men did not care to 
 join, and bankruptcy often resulted. There was also too much feasting by members 
 ar the expense of the funds. 
 
 Mr. Hardy might have added to his last sentence the statement that "feasting" 
 became such a feature, about the close of the eighteenth century, as to give the so- 
 cieties the name of "Free and Easies." There was a reaction against the dissipation 
 characteristic of these clubs, and a marble mason, named Bolton, who had gone to 
 Manchester from London in 1809, began an agitation for reformed methods, and, in 
 1812, succeeded in organizing an improved Order of Odd Fellows' Club, or Lodge. 
 His scheme was to abandon the "free and easy" proceedings and make an effective 
 provident institution, adapted to the wants of artisans whose occupations called them 
 into various parts of the kingdom. Probably from this idea came the word "Inde- 
 pendent," introduced into the name of his organization as the '"Lodges" at different 
 places were to be independent of each other; while the "Manchester Unity" conveyed 
 the other idea of .general centralization in supervision and co-operation. The "Man- 
 chester Unity Independent Order of Odd Fellows," was the pioneer of modern 
 Friendly Societies, and today leads all others in the world in number of members 
 and financial strength. Because of its age, its size, its success, its mortality and sick- 
 ness experience, its errors and reforms, and its most comprehensive conduct in opera- 
 tion, the history of the Manchester Unity will cover all of the ground necessary to 
 be turned, in order to reap the benefits from a study of past action and present 
 prosperity of Friendly Societies. 
 
 LEGISLATION. 
 
 An important factor in the development of Friendly Societies was the several Acts 
 of Parliament from 1793 to the last general law of 1896. As before stated, the pro- 
 
ceedings at the periodical meetings had so degenerated into excessive festivities that 
 provision against sickness and death had become jeopardized. 
 
 In 1787 Gilbert originated the idea of requiring each society to be registered in 
 order to obtain legal protection; and it was his proposals undoubtedly which induced 
 the framing and passing of the highly important Act of 1793, which practically settled 
 the struggle between compulsion and voluntaryism in favor of the latter system. 
 
 The Act of 1793 marked a new era in the history of Friendly Societies. Their 
 legal position before the Act, and the various abuses that resulted from it, have 
 already been referred to. The Act remedied abuses by establishing some supervision 
 and some safeguards as to the management. It required, for example, the sub- 
 mission of rules, and alteration of rules, to the justices at Quarter Sessions, who 
 had power to confirm them or not at discretion. The objects of the, society were 
 to be specified, and a dissolution could only take place with the consent of the 
 justices. 
 
 On the 2ist of June, 1793, this first of the Friendly Societies Acts was passed, 
 and it was commonly known as Sir George Rose's Act, the 33 Geo. Ill, c. 54. 
 
 It is not easy to systematize the various efforts made by the Legislature to con- 
 trol or to encourage, as the case might be, the Friendly Society movement between 
 1793 and the great Act of 1875. All of these attempts were necessarily of the 
 nature of experiments, and were generally without any common plan. 
 
 In 1818 a bill was introduced providing for the appointment of five public 
 valuers in the language of the bill, "persons skilled in arithmetical calculations" 
 to whom tables and rules might be submitted at fixed fees. The fear of 
 government interference, however, which was so common among members of 
 Friendly Societies, caused this provision to be struck out of the Act of the fol- 
 lowing year (1819). This Act, however, provided that rules and tables of all 
 future societies should both be confirmed by the justices at Quarter Sessions; and, 
 moreover, contained the important provision that such justices should not confirm 
 or allow any table of payments or benefits, or any rules dependent upon or con- 
 nected with the calculations thereof, until it shall have been made to appear to 
 such justices that the said tables and rules are such as have been approved of 
 by two persons at least, known to be professional actuaries or persons skilled in 
 calculation, as fit and proper according to the most correct calculation of which 
 the nature of the case will admit. In the same way, dissolution could only take place 
 with the consent of the trustees and under the certificate of two actuaries. 
 
 The Act of 1829 contained several provisions of considerable importance. By this 
 Act, nearly all previous legislation relating to Friendly Societies was repealed, arid 
 the law consolidated. The Act allowed any number of persons to form a society and 
 to make rules, provided that these latter should declare the purpose of the society, 
 and that they should be submitted to a barrister or to the Lord Advocate for 
 certification. 
 
 Perhaps the most important provision in the Act, however, was that requiring 
 quinquennial returns of sickness and mortality to be made to the clerk of the 
 peace, by whom they were to be transmitted to the Secretary of State and laid 
 before Parliament ; all societies neglecting to make such returns losing the priv- 
 ileges of the Act. The object was stated clearly in the Act to be the collection of 
 data by which tables of the payments and allowances dependent on the duration 
 of sickness and probability of human life may be constructed, "the present existing 
 data of these subjects having been found imperfect and insufficient." 
 
By the Act of 1834, the powers of the justices to decline to certify the rules, 
 in cases where they might deem the tables insufficient, was withdrawn, as also 
 v.as the priority of claim by societies upon the effects of trustees and others. 
 The purposes for which societies might be formed, however, were somewhat ex- 
 tended, and were stated to be "for the mutual relief and maintenance of all and 
 every the members thereof, their wives, children, relations, or nominees, in sick- 
 ness, infancy, advanced age, widowhood, or at any other natural state or con- 
 tingency whereof the occurrence is susceptible of calculation by average, or for any 
 other purpose which is not illegal." It was carefully provided, however, that for 
 any such general purposes, not being "natural contingencies," the contributions 
 should be kept distinct and separate, or that the charges for these benefits should 
 be defrayed by levies upon the members. The quinquennial returns were continued. 
 The Act of 1846 imposed a penalty for failure to forward these returns, and ap- 
 pointed a salaried registrar, who was only to register rules when tables were certi- 
 fied by an actuary. 
 
 There was introduced in the House of Commons in 1849, "A Bill to make better 
 provision for the Certifying the Tables of Contributions and Payments of Friendly 
 Societies, and for ascertaining from time to time the Solvency of such So- 
 cieties." This bill and several petitions thereon were referred to a Select Com- 
 mittee of the House, who were empowered to take evidence and to report their 
 observations thereon to the House. 
 
 The principal paragraphs of the Report are as follows : 
 
 Your committee having read the clauses of the bill referred to them, thought 
 it advisable to apply to the House for leave to take evidence on the subject; and 
 having examined 16 witnesses, submit the following report: 
 
 As the object of all these voluntary associations is in some way to provide by 
 mutual assurance for the relief of their members in sickness, in old age, or other 
 natural casualty or infirmity, and of their families at their death, it is obvious that 
 the welfare of all classes is much concerned in the sound constitution and good 
 management of such societies. Of late years, by the exertions of benevolent per- 
 sons, and by means of a more extensive and accurate collection of statistical ma 
 terials, better information has been obtained and diffused, of the calculations and prin- 
 ciples upon which such societies ought to be based. Attention has been much "turned 
 to the defects inherent in the old clubs, and many societies on a sounder system 
 have been established ; still it is stated by the secretaries and others who have at- 
 tended the committee that in the great majority of Friendly Societies and clubs at 
 present existing, an accurate examination of their accounts would show that the 
 rate of contributions is not sufficient to enable them to pay the benefits insured thereby ; 
 that in many instances they have been compelled to reduce or suspend their allow- 
 ances; and those societies which have hitherto kept their engagements have probably 
 been enabled to do so by a continual introduction of young members, so that the 
 unsoundness of their tables has remained unnoticed. As a guide, then, and a safe- 
 guard to the ignorant, it has often been suggested, and was pressed upon the com- 
 mittee by some of the witnesses that the government should cause model tables 
 to be constructed, and should enforce an adherence to them. 
 
 Mr. Nieson, the noted actuary, was the first witness examined by the committee : 
 
 Question: Will you state to the committee what is the general result of your 
 experience as to the sufficiency of the tables of Friendly Societies? Ans.: That 
 would require me to consider two classes of Friendly Societies. I believe Friendly 
 Societies as they existed until a recent date were generally unsound, and chiefly 
 so from an inadequate amount of contributions being required by their tables, at 
 least by those having tables. Many of the societies still have no tables, but the com- 
 mittee arc no doubt aware that the 9 and 10 Viet. (1846) makes it compulsory on 
 societies established after the passing of that Act to have tables approved by com- 
 petent authorities. To explain fully the reason why Friendly Societies have beer 
 
6 
 
 so unfortunate in acting upon inadequate terms would require rather a long disqui- 
 sition. It, however, may be summed up in a very few words. The subject of 
 Friendly Societies is altogether a very complicated one; in fact there is no vital 
 statistic so difficult to be understood. . . . Then having in view the purport of 
 the original question, it will appear from this explanation, that it is no wonder 
 that until a recent period Friendly Societies were found to be exacting inadequate 
 contributions for the benefits they promised. The difference is very remarkable, 
 and for some particular kinds of benefit which are provided for by Friendly So- 
 cieties adopting one data, and adopting the more recent data resulting from my 
 own investigation, it came under my own inquiry that the contributions necessary 
 for some purposes would be doubled in consequence. So that Friendly Societies 
 established 20 or 30 years ago upon inadequate data may now, on investigation, find 
 that they had all along been charging one-half less for some of the paricular benefits 
 than they ought to have charged; and many societies have proved this by experience. 
 They have broken down in consequence of inadequate contributions. Some societies 
 being alarmed by a gradual deficiency taking place year after year in their funds, 
 have had recourse to a great many expedients by which to prop themselves up. 
 
 Mr. John Finlaison was the next witness and .gave an account of the data 
 from which he constructed his mortality tables in 1835, and Mr. A. G. Finlaison, 
 the actuary, testified regarding the application of those tables to Friendly Societies. 
 He stated that at the time (1850), few societies would accept a graduated table 
 of contributions, according tcr age of entry. Those which had done so would only 
 grade for ages above 45 up to about 55, when "the contributions for life, above that 
 age (55) becomes so heavy that practically they are of no use to the society, no 
 member being able to pay the rates." 
 
 It must be remembered that the rates were for death as well as for sickness ben- 
 efits, and that the cost for both increase with age, being excessive at the advanced 
 ages. That fact was demonstrated by these societies, as here shown, prior to 1835, 
 and became such a threatening danger by 1850 as to justify a government inquiry 
 looking_ to a bill to make better provision for tables of contributions and payments 
 and "for ascertaining from time to time the solvency of such societies." 
 
 Thus it is seen that, 70 years ago, the same questions which are now presented 
 in this country were considered and passed upon in England with the consumma- 
 tion in a satisfactory solution in 1875. Had conditions in Great Britain been studied 
 and advantage taken of them by fraternal organizers in America, the meeting of 
 present difficulties need never have occurred. But since our troubles do now exist, 
 the next best thing to having avoided them, is to remove them. In that work we 
 can be greatly aided by giving heed to reforms inaugurated and remedies applied in 
 the Mother Country. 
 
 The Act of 1850 required a certificate in respect to annuity tallies only, and lim- 
 ited the amount of benefits, especially in the case of children's assurance, allowed 
 investments with National Debt Commissioners at a fixed rate of interest of 2d. 
 per cent per diem, and allowed branches to register. This year was memorable on 
 account of the founding of the well-known Royal Liver Friendly Society, which within 
 twenty years reached a membership of over half a million. 
 
 Most of the features of the recent legislation were continued by the Acts of 1855, 
 1858, etc., the position of Friendly Societies remaining very much the same down to 
 the important legislative enactment of 1875. 
 
 Two years after the Ancient Order of United Workmen was organized in the 
 United States, and ten to twenty years before many of our large societies were 
 organized, the English Government had such consideration and regard for the 
 importance and necessity of fraternal insurance that a Royal Commission was ap- 
 
pointed (1870) with instruction to thoroughly and exhaustively investigate the sub- 
 ject and to report their findings to Parliament 
 
 That investigation covered FIVE YEARS of painstaking and continuous work. 
 The report of the Commissioners is the most valuable official contribution to insur- 
 ance literature. Its importance cannot be over-stated. The Act of 1875 resulted 
 from the broad and comprehensive recommendations of the Commissioners. 
 
 That report and the resulting Act of Parliament should have been studied by out 
 legislators. They should have been studied by those who have been organizing and 
 managing the Fraternal Orders in this country. The report should now be studied 
 by them in connection with the Act of 1896, and subsequent amendments. These 
 comments upon the legislation affecting Friendly Societies in Great Britain, cannot 
 be more appropriately concluded than with a quotation from that report of the 
 Royal Commission of 1870 : 
 
 REPORT OF THE ROYAL COMMISSION. 
 
 In addition to the evidence received by ourselves, a great mass of valuable in- 
 formation is recorded in the report of our Assistant Commissioners, to whom we. 
 have to tender our best thanks for the zeal and ability which they have displayed in 
 the fulfillment of their allotted portion of the work. 
 
 Without pretending to have exhausted the subjects assigned to us for inquiry, we 
 venture to think that the materials we have collected afford better means of under- 
 standing them in their various bearings than any which have yet been laid before 
 the public. 
 
 We found, indeed, the field opened before us to be so wide that we felt obliged 
 to limit it. It might, for instance, have been interesting to trace the connection of 
 Friendly Societies with the Gilds of the Middle Ages, their analogy to which has 
 often been pointed out, and of which the constitution has been lately laid open mor< 
 thoroughly to investigation than ever, through the publication of such works as the 
 late Mr. Toulmin Smith's English Gilds ; or again, to compare the Friendly Societies 
 of England with those of other countries. We have abstained from following either 
 
 line of inquiry In obedience to your Majesty's commands we have had 
 
 prepared a sketch of the course of legislation, and a summary of the Statute Law, 
 relating not only to Friendly Societies, but to all the classes of societies with which 
 the Registrar of Friendly Societies is connected. We have thought that in thus going 
 somewhat beyond the terms of our instructions under this head, we should facilitate 
 the consideration of questions which will presently arise with reference to the office 
 and duties of the registrar. 
 
 The evils to which Friendly Societies are most subject may be divided into (i) 
 those which arise from the want of proper information, and which generally affect 
 the principles on which the society is founded: and (2) those which arise from 
 improper management, which may be the result either of ignorance, or of negligence, 
 or of fraud. As regards the first class of evils, we believe that it is in the power 
 of the government to do a great deal to correct it, without inconvenience to the 
 public and without any undue interference with the liberty of the promoters of 
 societies. As regards the second class, there is more difficulty, though we believo 
 that something may be done in the way of securing publicity, and of providing readier 
 means for the detection and punishment of fraud. Possibly, too, it may be found 
 feasible and desirable for the government itself to enter directly into competition 
 with certain classes of societies and to afford the public an alternative provision 
 for certain classes of objects. But this is a matter to which we shall refer here- 
 after. 
 
 From the details previously given, it would appear that the condition of Friendly 
 Societies is generally _ far from being such as to afford to their members any secur- 
 ity that they will receive the benefits for which they have subscribed. 
 
 A main cause of the widespread insolvency of Friendly Societies is the inade- 
 quacy of the rates of premiums for the benefits promised. 
 
 Before a proper table of premiums can be constructed, the following preliminary 
 inquiries are necessary: (i) What are the occupations and conditions of life of the 
 
8 
 
 persons who are likely to constitute the society? (2) What rates of sickness and 
 mortality will such a society probably experience? (3) What table of premiums prob- 
 ably corresponds with such experience? 
 
 We desire to draw particular attention to the suggestion which we have made, 
 that the government should prepare and publish proper tables of contributions and 
 benefits. 
 
 It appears to us that the weak point which is common to all classes of Friendly 
 Societies is the uncertainty which prevails as to the proper rates of premium which 
 should be charged for the various classes of benefits which they promise. We have 
 already drawn attention to this subject, and have shown that the inadequacy of the 
 premiums is the cause of embarrassment even to some of the highest and best man- 
 aged societies. To many it is the cause not only of embarrassment, but also oi 
 insolvency and ruin. Two methods of checking this evil suggest themselves. Fresh 
 efforts might be made to prepare trustworthy tables adapted to all the various cir- 
 cumstances with which different societies have to deal; or, recourse might be had, 
 more systematically than at present, to periodical valuations of the assets and liabil- 
 ities of each society, followed by the necessary corrections of the table of premiums 
 and benefits. We believe that both of these measures should be adopted. The 
 government should employ competent actuaries to draw up some model tables, which 
 might be commended to the promoters of Friendly Societies, though their adoption 
 should not be made compulsory. It would probably not be long before their value 
 would be recognized ; and we may be sure that there would never fail to be persons 
 interested either in existing societies or in the welfare of the classes for whose ben- 
 efit they are intended, who would take the trouble of comparing the tables and rules 
 of particular societies with the government standard, and of ascertaining how far 
 they were or were not in accordance with them. 
 
 (Following this suggestion the comprehensive report by the Chief Registrar was 
 published in 1880, with tables of rates, etc. In 1896 followed the elaborate report by 
 Mr. Sutton, Actuary to the office of Chief Registrar. Landis.) 
 
 We attach, however, much more importance to properly conducted periodical valu- 
 ations, and to corrections made from time to time in the tables according to the re- 
 sults of those valuations, than to the original tables themselves; and we consider that 
 such valuations should be made compulsory upon all registered societies. Two difficul- 
 ties at present discourage many societies from having recourse to them, though all 
 persons conversant with the subject agree as to their utility and importance. The 
 first difficulty is the costliness of the process; the second the uncertainty of the 
 results arrived at by different actuaries proceeding on different principles. Both these 
 difficulties might be, to a great extent, obviated, if model forms, not only of tables, 
 but also of valuations, were prepared under the direction of the government. With 
 these, and with the aid of well arranged returns, which the society would have to 
 furnish, valuations might be conducted cheaply, and on an uniform principle. Perhaps 
 it would be well that the government should in the case of the first valuation of 
 any society allow it to call in the services of the government valuer free of charge. 
 For subsequent valuations a small fee should be demanded. 
 
 It is only possible to give a brief outline of the changes effected by the great 
 Act of 1875. By this Act the law relating to Friendly Societies was both consolidated 
 and amended. 
 
 The following provisions of the Act may be mentioned as among the most 
 important : 
 
 (1) The maintenance of the voluntary principle, as respects registration and the 
 actuarial certification of tables. 
 
 (2) The continuance of the quinquennial and annual returns. 
 
 (3) The limitation of benefits, especially for infants' assurances, this provision 
 also applying to industrial assurance companies. 
 
9 
 
 (4) The authorizing of the treasury to issue regulations from time to time, and 
 the power conferred on the registrars to appoint inspectors, when duly requested, to 
 inquire into the management of societies, and call general meetings of the members. 
 
 (5) The compulsory valuation of all registered societies every five years, and the 
 provision for the appointment of public valuers by the treasury, who might undertake 
 such valuation. 
 
 (6) The reconstruction of the Registry Office, resulting in the appointment of 
 an actuary to the registrar. 
 
 A few amending Acts, of very little importance, were passed during the twenty- 
 one years from 1875 to 1896. In the latter year a thorough revision was made oi 
 laws affecting Friendly Societies, which is known as the Friendly Societies Act, 
 August 7? 1896, and which (with a few minor changes) remains in force and effect 
 at this writing). 
 
 The Act of 1896 was the most important since the first one in 1793. Its detailed 
 provisions are well worth careful study. 
 
 In 1911 the Parliament of Great Britain enacted a general law, a scheme for 
 National Insurance of the working men and women of that country. The scheme 
 so nearly duplicates the plans of Friendly Societies in the way of granting benefits 
 that a mutual arrangement for cooperation was made between the government and 
 the Societies "approved" by the Commissioners. Whether or not the final out- 
 come will be exclusive compulsory State Insurance to the absorption or dissolu- 
 tion of Friendly Societies as independent organizations is a mooted question. Well 
 informed and experienced officials of the societies are pessimistic in their forecasts 
 of the future. The relations between the governmnt and the societies are compli- 
 cated and as yet unsettled, but it is to be hoped that these great Provident Institu- 
 tions may be able to continue their beneficent work by granting additional protection 
 to the comparatively small benefits allowed under the National Insurance Act. 
 
 FRATERNAL BENEFICIARY ORDERS. 
 
 The Fraternal Beneficiary Associations in the United States and Canada were 
 modeled on the pattern of Fraternal Orders with secret work a dominating feature, 
 There was a central authority (usually assuming the name of "Supreme") ; and 
 subject to central supervision; there were subordinate bodies with authority circum- 
 scribed to a State or "Jurisdiction," (usually assuming the name of "Grand') ; and, 
 subject to dispensation and regulation from the "Supreme" or "Grand" jurisdictions, 
 there were local "Lodges," or "Councils," or "Camps," or "Tents," or other designa- 
 tion characteristic of the organization. 
 
 The words quoted from Hardwick, written sixty years ago concerning the 
 early Friendly Societies, apply to the Fraternal Beneficiary Societies as they existed 
 in this country. 
 
 "The singularity of some of their names, the secrecy, the mummery, and the 
 mystery which attended their proceedings, proved peculiarly attractive to the great 
 body of the operative population, while they at the same time excited the distrust, 
 the suspicion, and sometimes the ridicule of the wealthier and better educated por- 
 tions of society." 
 
 The local lodges, or councils, or by whatever name known, usually provided some 
 form of relief to living members, while the grand or supreme bodies issued certificates 
 promising a death benefit "not to exceed" the amount of one assessment upon all o f 
 
10 
 
 the members, or the amount of one assessment "not to exceed" a designated sum 
 varying from $500 to $5,ooo. 
 
 The Ancient Order of United Workmen, the American Legion of Honor, the 
 Knights of Honor, the Knights of the Maccabees, the Catholic Mutual Benefit Asso- 
 ciation, the Catholic Knights of America in fact, all of the original and well known 
 societies in the United States and Canada levied a level and uniform assessment, 
 regardless of age, occupation, or residence, and with meagre restrictions upon health, 
 basing the number of assessments upon the claims incurred and collecting them from 
 the survivors after deaths were reported. 
 
 The certificate of membership had neither the form nor design of a contract 
 of insurance. 
 
 The promise to pay a sum at the death of a member, not in excess of the volun- 
 tary contributions of survivors, was not made in the way of a binding financial obli- 
 gation, but rather in satisfaction of the law of social benevolence which requires that 
 every man shall endeavor to assist others. 
 
 The limitation of the money benefit to the contributions that might be received 
 for its payment placed the transaction in the category of a charity. In these cir- 
 cumstances it gave little concern to the officials of large societies when the original 
 and simple form of certificate of membership was changed to bond-like appearance 
 and with the maximum possible amount of benefit largely displayed in gilt letters. 
 
 The effect upon the holder was an assurance of a definite sum payable at death, 
 and the development finally was to produce an insurance contract of a fixed char- 
 acter enforceable at law. 
 
 However, the members changed their conceptions of fraternal protection only in 
 respect of the benefit side of the contract. They continued to regard the contribution 
 side as demanding nothing more than voluntary donations in the way of charity. 
 
 Until about 1888 (nearly 100 years after the first Friendly Society Act) legis- 
 lators placed the Fraternal Beneficiary Associations in the list with charitable organ- 
 izations and did not undertake to regulate or supervise them, contenting themselves, 
 when occasionally moved to action, with restrictive measures that limited their scope 
 of operation, or exempted them altogether. 
 
 Insurance, Commissioners paid little or no attention to the Fraternal Or- 
 ders, treating them as without the realm of life insurance organizations and, indeed, 
 holding that they would be encroachng upon the rights and privilges of the life com- 
 panies were they to issue life insurance contracts with mathematically determined 
 rates of contribution. 
 
 In this connection is given a recent ruling of the Commissioner of Internal Rev- 
 enue, which reflected the prevailing opinion held by officials in the executive and 
 judicial departments of State and National governments of the Union. While pars- 
 ing upon the question of the taxation of policies, Commissioner Wilson discusses the 
 question of profit, and addresses himself to what is contemplated by the phrase 
 "organized and conducted not for profit." He says, in part : 
 
 An association coming within the exempted classes which is organized and does 
 business on the plan of levying a sum upon its members to pay losses, or losses and 
 expenses, as incurred, is prima facie not doing business for profit. This is in case 
 where the assessments are made to provide for the payment of losses as they occur. 
 
 Such companies as make assessments based upon fixed -premiums, to be collected 
 at regular intervals, without regard to whether or not a loss actually occurs, are 
 companies that are, in the opinion of this office^ prima facie conducted for profit. 
 
 Progress toward permanency would be forever blocked were such an opinion to 
 take control of legislatures. Only ignorance of insurance principles and a wrong 
 
1 1 
 
 conception of fraternal protection can excuse such an opinion. A still more exag- 
 gerated case is the following from a decision by the Supreme Court of Pennsylvania : 
 
 The first specification charges error in admitting the application thus referred to. 
 This is grounded on the assumption that defendant (the A. O. U. W.) is an In- 
 surance Company, and the contract sued on is a contract of assurance on the parr 
 of the plaintiff's husband for her benefit. . . . Such assumption, however, i^ 
 unwarranted. The defendant is NOT AN INSURANCE COMPANY, but belongs to 
 the distinctly recognized class of organizations known as benevolent organizations. 
 . . . What is known as a BENEVOLENT ORGANIZATION, however, has a 
 wholly different object and purpose in view. The great underlying purpose of the 
 organization is not to indemnify or secure against loss ; its design is to accumulate a 
 fund from the contributions of its members for "Beneficial or Protective purposes," 
 to be used in their own aid or relief, in the misfortunes of sickness, injury or death. 
 The benefits, although secured by contracts, and for that reason to a limited extent 
 assimilated to the proceeds of insurance, are not so considered. Such societies are 
 rather of a PHILANTHROPIC OR BENEVOLENT CHARACTER; their bene- 
 ficial-features may be of a narrow or restricted character; the motives of the mem- 
 bers may be, to some extent, selfish ; but the principle upon which they rest is founded 
 in the considerations mentioned. These benefits, by the rule of their organizations, 
 are payable to their own .unfortunates out of funds which the members themselves 
 have contributed for the purpose, NOT AS AN INDEMNITY OR SECURITY 
 AGAINST LOSS, 'but as a PROTECTIVE RELIEF in case of sickness or injury, 
 or to provide the means of a decent burial in the event of death. Such societies 
 have no capital stock. They yield no profit, and their contracts, although beneficial 
 and protective, altogether exclude the idea of insurance, or of indemnity, or of secur- 
 ing against loss. 
 
 The original idea of benevolence and charity still prevails and the legal status of 
 Fraternal Beneficiary Societies is by no means settled. Court decisions are conflict- 
 ing, but fortunately uniformity in State legislation is making rapid progress, and the 
 day is not distant when the business of these Associations will be conducted upon 
 safe and sound methods under supervision wisely designed for the good of all con- 
 cerned. 
 
 It takes time and patient nursing to cure an ailment such as afflicted the Fraternal 
 Beneficiary Societies. 
 
 Consider their origin and one cannot be surprised at the resulting financial diffi- 
 culties in which they became involved. 
 
 Why should these Societies have been considered to assume any deferred finan- 
 cial obligation when the outstanding promise was to pay as a benefit the sum of 
 one assessment, provided it did not exceed a stated amount? 
 
 Such a promise could be fulfilled on the payment of one dollar, if that were the 
 amount of one assessment. 
 
 Why should such Societies accumulate funds as a guarantee for the settlement of 
 deferred liabilities in the way of future death claims? They have the right to levy 
 an unlimited number of assessments. If one assessment will not satisfy the matured 
 claims, they can levy another. If still unsatisfied, they can levy another and another 
 until the claims are paid, or until dissolution results from withdrawals. 
 
 There was never a simpler scheme for the liquidation of liabilities ! 
 
 Its simplicity is not altogether in the power of repeated levies ! 
 
 If the assessments produce no funds, that fact discharges the debt ! 
 
 From the viewpoint of the analyst, the post mortem plan of assessments-as- 
 needed is a perfect scheme for financing a concern on Hope. 
 
 But Hope is the greatest of flatterers, and thousands have been allured by her 
 prodigal promises and plausible presentations ultimately to find they had no other 
 possession but Hope, and finally to realize nothing but Despair. 
 
12 
 
 It is a sad commentary upon the progress of the human race that good men 
 with good intcntior.s so often will adopt defective means for the execution of good 
 purposes. 
 
 And more regrettable is the fact of the repetition, generation after generation, of 
 defective means for good purposes, ending in failure. 
 
 Probably most regrettable of all is that the trained minds of judges and legislators 
 go far astray in their analysis and conception of unsound plans of life insurance 
 notably the learned Justices of the Court of Appeals of the Great State of New York. 
 
 For a long time neither the managers nor the members of Fraternal Beneficiary 
 Societies, nor the courts, nor the legislatures seemed able to distinguish between 
 the fraternal and the business side of these Associations, notwithstanding the fact 
 that the managers were construing and the members holding the certificates as insur- 
 ance contracts with fixed benefits. 
 
 There was and is an honest conviction, not readily surrendered, that fraternal 
 co-operation relieves societies from the business necessity of demanding contributions 
 equivalent in value to the benefits promised, and from being assessed according to 
 the insurance risk assumed. 
 
 At this time one of the greatest of our American Fraternal Beneficiary Societies 
 is in a struggle with its members and the courts to determine the question of ade- 
 quate contribution rates, and whether or not they can be enforced against members 
 who relinquish not a dollar in their demand for protection to the full face value of 
 their certificates. 
 
 Proof beyond dispute is submitted to show that some members contribute to the 
 funds less than the actual costs of their protection, and that the deficiencies thus 
 created must be made good by appropriations from the contributions of other mem- 
 bers who pay in excess of the equitable costs of their protection. 
 
 Notwithstanding this undisputed fact, the members, who receive benefit for which 
 they do not pay its full worth, contend that it is a condition incident to fraternal co- 
 operation for mutual protection. 
 
 They believe, or pretend to believe, that it is consistent with brotherly and fra- 
 ternal conduct to solicit persons to join these Societies and then charge them in 
 excess of the costs of their protection, and to appropriate such excess to their own 
 benefit. 
 
 Hundreds and hundreds of times I have stood before conventions and gatherings 
 of fraternal people and demonstrated from the actual experience of the Society, to 
 whose members I was talking, that some of those present were contributing less 
 than half of what it cost the Society to carry the risk of their insurance benefit, and 
 that the Society's loss on them was made up from surplus contributions of others. 
 I have explained the inequity of such procedure. I have pointed out that it is not 
 different in principle to appropriate from a common trust fund an unequal share of 
 purchased articles as might be the case in a co-operative store where some would 
 pay less than the cost of what they bought, while others would be over-charged. I 
 have put the question directly to my auditors, whether or not, if they were con- 
 tributors to the funds of a co-operative store, they would support and continue a 
 management which let some members have groceries at 50% of the cost and charged 
 others 150%. I have never yet had any one defend such a plan of management for 
 a cooperative store, or for a savings bank where deposits of one were paid out to 
 another, even when it was assumed that those questioned were the persons to be 
 benefited. Nevertheless, I have heard some of the same people vigorously and elo- 
 quently defend the insurance plan of fraternal orders under which members were 
 
13 
 
 charged more than their equitable proportion in order that others might pay less than 
 their equitable proportion of the common cost of insurance protection to the whole 
 membership. 
 
 The argument in defense was that such had been the original conception of fra- 
 ternal co-operation for mutual insurance protection; 
 
 That to change the plan after a number of years of operating under it would 
 impose upon the old members, and "freeze out" the aged who had "borne the heat 
 and burden of the day'' when personal work and sacrifice were required for the 
 Society's very existence; 
 
 That the younger members of today must, in their turn, make sacrifices in the 
 way of contributions toward the cost of protection for those who had grown grey in 
 the service ; 
 
 That while it would be unfair and unjust and probably dishonest to overcharge 
 one patron of a co-operative store in order that another might have his purchase at 
 less than cost, and while it certainly would be dishonest to take from the savings 
 account of recent and young depositors in a savings bank for overpayment to aged 
 patrons because they had lost their earning power and needed the money, and while 
 it would be wrong to permit a regular life insurance company to charge some more 
 and others less than their equitable share for insurance cost, yet the reason that it 
 would be unfair a,nd unjust or dishonest, or wrong in these instances, was because 
 it was not the original nor recognized plan for the operation of co-operative stores, 
 or savings banks, or life companies, and therefore they were not to be compared with 
 Fraternal Beneficiary Societies which were and should be altruistic in their practices 
 and charitable in their purposes and altogether benevolent in the distribution of 
 funds ; 
 
 That there was no distinction between members in respect of individual share in 
 the costs of protection, because each member contributed toward a common fund from 
 which claims for benefits were paid, and no member had any individual interest in 
 or right to that fund unless in the way of claim for benefit ; 
 
 That it was never contemplated in fraternal co-operation to resort to the com- 
 mercial requirement of business conduct by demanding a contribution rate propor- 
 tionate to the insurance risk, and that such a practice would be as foreign to the 
 intents and purposes of these mutual associations for the relief of the distressed and 
 needy as would be the attempt to fix the amount of donation for each voluntary con- 
 tributor toward any charity fund. 
 
 Fraternal Beneficiary Societies were stamped in the beginning with the character 
 of charitable and benevolent institutions. 
 
 As heretofore stated, the members tenaciously insist upon the continuance of that 
 imprint upon their assessment levies, while they have no hesitancy in construing the 
 promise of benefit into a fixed contractural and financial right. 
 
 The New York Court of Appeals has rendered opinions sustaining the contention 
 that the contribution rate cannot be adjusted scientifically and equitably to the in- 
 surance risk, without the consent of the members, while holding that the members 
 have a vested right to demand the full amount of benefits promised. 
 
 The Court concedes that extra assessments may be levied when needed for the 
 payment of matured claims, but the general conclusion is in support of the con- 
 tention that Fraternal Beneficiary Societies, as at present constituted, are not able 
 to enforce the well-established rule that promised contributions should be adjusted 
 to provide equitably for promised benefits. 
 
14 
 
 Undisputed and unquestioned evidence was presented to the Justices in which it 
 was shown that ultimate failure was inevitable under the plan of operation where 
 the contribution was not adjusted to the cost of protection according to the insurance 
 risk assumed. 
 
 It was demonstrated by expert testimony, and proved by the actual experience of 
 societies which had tried it, that recourse to extra assessments could delay but would 
 not prevent ultimate failure and final dissolution, and the sacrifice of the protection 
 of persistent survivors as well as the sacrifice of the protection of those forced out by 
 repeated assessments. 
 
 The reply was, that the Court was not responsible for a plan that would result 
 in disaster that was the concern of those who inaugurated and accepted insurance 
 under the plan that the Court did not formulate the plan, but merely decided how 
 the plan in practice should be operated consistently with its conditions and pro- 
 visions, and that the recognized legislative body of the society has not power to 
 change those conditions and provisions even to save the corporate existence and to 
 conserve the interest and carry out the desire of the great majority of the members. 
 
 The Justices of the Court of Appeals arrived at the same conclusion as have the 
 members who protest against a change in the existing plan of assessments. 
 
 But the Justices came to their conclusion by an entirely different course of rea- 
 soning. They construe the certificate as a business contract between a corporation 
 and an individual and exact the letter of the bond; they disregard the contention that 
 the corporation is a fraternal mutual co-operative association of individuals related 
 to each other in the dual capacity of insurer and insured, and therefore are obligated 
 to make proper and adequate provision for the payment of benefits as a condition 
 precedent to making claim for benefit; they proceed to the decision of the dispute 
 between the corporation and a certificate-holder without reference to the fact that 
 the latter is part and parcel of the corporate body and equally responsible with every 
 other member of the corporation for its obligations and the proper provisions for the 
 performances of its promises. 
 
 I have presented at length this phase of the Fraternal Society situation because 
 of its obvious difficulties. 
 
 We have members contending that it is in accord with fraternal principles and 
 brotherly relations to impose upon young and recent entrants (as long as they will 
 bear) part of the burdens of older members resulting from granting insurance at 
 inadequate contribution rates. 
 
 We have courts deciding and commissioners ruling that Fraternal Beneficiary 
 Societies are not Insurance Companies, and do not undertake to indemnify against 
 loss, and therefore must be listed with charitable organizations. 
 
 Then we have other and more recent court decisions to the effect that Fraternal 
 Beneficiary Societies are business corporations bound by the letter of their contracts, 
 though the performance kills. 
 
 Finally we have the reassuring and 'more pleasant aspect of legislative enactments 
 by many State Legislatures (that of New York amongst them) wherein the Fraternal 
 Beneficiary Societies are recognized as mutual co-operative insurance associations 
 with the right and power to adjust required contributions to promised benefits in 
 such manner as will render promises possible of performance and preserve cor- 
 porate existence and at the same time recognizes them as business corporations with 
 obligations to their members and to the public which demand detailed and public 
 exhibit of financial condition, past, present and prospective. 
 
15 
 
 The development of the Fraternal Orders is strikingly similar to that of the 
 Friendly Societies, which Mr. Hardy summed up in the terse sentence as "being 
 originally purely social in character, subsequently charitable and mutually protective, 
 and only in recent times financial." 
 
 Likewise the members of Friendly Societies advanced more rapidly in the appre- 
 ciation of the financial obligation to them from the Societies than from them to the 
 Societies. 
 
 In his illuminating essay on "Friendly Societies and Sick Clubs," Mr. Reuben Wat- 
 son, after alluding to the demand by members for the full benefit promised, remarks : 
 'The enquiry by the Royal Commission unquestionably gave an impetus to the newly 
 awakened discovery that the adoption of graduated contribution tables must be con- 
 sented to in the interest of justice and right. Unfortunately, it is difficult to make 
 such matters clear to the untrained mind, in which there is, however, often much 
 ingenuity. Members of Friendly Societies do not always take kindly to reforms 
 which necessitate exposure of insufficient contribution rates. When proposed reforms 
 carry with them increased contribution rates they have been known to be opposed 
 with unrelaxing vigor, and pet schemes and haphazard promptings have received 
 remarkable support in opposition to the soundest principles." 
 
 The concluding sentences have application to the Fraternal Beneficiary Orders 
 in this country. 
 
 The opposition in the United States and in Great Britain by members of the 
 Societies to increased contribution rates brought about, in both countries, the expe- 
 dient of applying increased rates to new members and leaving those for existing 
 members unchanged. This only delayed the day of reckoning. 
 
 The gross injustice of collecting from new entrants more for the same benefit 
 than from older members similarly situated in respect of risk at date of entry and 
 appropriating the excess to the use of the older members, finally forced the man- 
 agements, in both countries, to put aside the excess to the special benefit of the new 
 entrants, and thus establish an adequate rate class. 
 
 The option is given to the older members to enter this class usually without 
 medical examination and often with concessions that rendered the rates for the new 
 class inadequate. 
 
 The most frequent, and the most disastrous, option is to permit the older class of 
 members to take the new graduated rates as at age of entry. 
 
 This concession repeats the injustice of discriminating between members simi- 
 larly situated. 
 
 The new member, fresh from medical examiner, pays the rate for his present 
 age, say 35, while the re-rated member of present age 35 is given the rate at age 25, 
 because he entered the Society at that age. If the graduated rate is the proper and 
 correct rate at age 35 for the freshly examined member, certainly it is none too low 
 for the member at his present age and ten years removed from medical examination. 
 
 The most serious condition confronting American Fraternal Beneficiary Orders 
 has been brought about by re-rating at ages of entry. 
 
 In most instances the members concluded, or were led to believe, that the re- 
 adjustment placed the Order in a financially solvent position. 
 
 The contribution rates were often those deduced from some recognized table of 
 mortality, with seldom a higher interest assumption than 4%, and these rates were 
 advertised as sufficient upon authority of some actuary. 
 
 The advertisement was mainly directed to securing new members. There was 
 omission of the fact that, in respect of members who had entered the Society pre- 
 
16 
 
 viotis to a certain date, the adequate rate had been made inadequate, say, for age 25 
 by being applied to members at 26, 27 ... 30, 35, 40 and, sometimes, 50 years of 
 age; and similarly in the application of other rates at ages advanced beyond those 
 for which they were computed. 
 
 Many times the managing officials and consulting actuary have acquiesced in the 
 re-rating at ages of entry, first because it was left to them to accept that or nothing, 
 and second because there was some hope that savings from favorable mortality and 
 gains from interest earnings and forfeitures by lapse, and from the natural recupera- 
 tive force of these Societies, might overcome the deficiency created by such readjust- 
 ment. This subject is hereafter discussed in detail. 
 
 Altogether and notwithstanding admittedly untoward conditions and existing 
 disadvantages, progress toward solvency by the recognition and adoption of true 
 principles is being made steadily and surely. 
 
 Improved prospects are opening up in all directions, whether we view the situa- 
 tion from the standpoint of the managers, or the members, or the insurance com- 
 missioners, or the legislators, or the courts. 
 
 The requirements of annual valuations are spreading statistical knowledge that 
 gives a better understanding of the relation between promised benefit and required 
 contribution. 
 
 Since the agreement at Mobile in 1910 between the Insurance Commissioners and 
 representatives of Fraternal Beneficiary Orders upon a Uniform Bill providing for 
 valuation, there has been acquired more information in regard to the value of deferred 
 promises to pay death and disability benefits than gained during the entire period of 
 operation to that date. 
 
 The fact that statutory enactment compels valuation has caused a general inquiry 
 into the meaning and effect of valuation. This subject will be treated at length 
 later on. 
 
 LEGISLATION. 
 
 The history of legislation affecting Fraternal Beneficiary Societies is so closely 
 identified with the history of the National Fraternal Congress and the Associated 
 Fraternities of America that separation will not be made in references to them. 
 
 In pursuance to a resolution adopted in June, 1886, by the Supreme Lodge of the 
 Ancient Order of United Workmen, a committee was appointed composed of Hon- 
 orable A. L. Levi, of Minneapolis, Minn. ; Honorable O. F. Berry, of Carthage, 111. ; 
 Warren Totten, Esq., Barrister, etc., of Woodstock, Ontario, Dominion of Canada, 
 and Honorable Leroy Andrus, of Buffalo, N. Y., to take such action as would bring 
 about a meeting and permanent organization of representatives of Fraternal Beneficiary 
 Societies. The call for such a meeting was issued September i, 1886, by the Chairman 
 of the Committee, Honorable Leroy Andrus, and on November 16, 1886, the repre- 
 sentatives of various Beneficiary Societies of the United States and Canada, respond- 
 ing to the call, met at the Riggs House, in the City of Washington, D. C., on Tuesday 
 at high noon. The following is a list of the Societies and their representatives : 
 
 Ancient Order of United Workmen Leroy Andrus, Buffalo, N. Y. ; Warren 
 Totten, Woodstock, Ontario; A. L. Levi, Minneapolis, Minn., and A. L. Berry, Car- 
 thage, 111. 
 
 Knights of Honor W. H. Barnes, San Francisco, Cal. 
 
 United Order of Honor A. W. Wishard, Indianapolis, Ind. 
 
 Order United American Mechanics C. H. Stein, Baltimore, Md. 
 
 Order United Friends O. M. Shedd, Poughkeepsie, N. Y. 
 
 Empire Order of Mutual Aid J. H. Meech, Buffalo, N. Y. 
 
17 
 
 Select Knights, A. O. U. W. R. C. Hill, Buffalo, N. Y. 
 
 Endowment Rank Knights of Pythias Halvor Nelson, Washington, D. C. 
 
 Equitable Aid Union R. N. Seaver, Columbus, Pa. 
 
 Knights of Macc'abees N. S. Boynton, Port Huron, Mich. 
 
 Rayol Arcanum A. C. Trippe, Baltimore, Md. ; J. Haskell Butler, Boston, Mass. 
 
 Knights of Columbus C. P. Kriezer, New York City. 
 
 Knights Golden Rule J. D. Irving, Toledo, Ohio. 
 
 United Order of the Golden Cross A. M. McBath, Washington, D. C. 
 
 Royal Templars of Temperance C. K. Porter, Buffalo, N. Y. 
 
 Home Circle J. H. Butler, Boston, Mass. 
 
 It was estimated by the Secretary that the orders and their membership repre- 
 sented at the Congress were as follows : 
 
 Ancient Order of United Workmen I75,ooo 
 
 Knights of Honor 130,000 
 
 Royal Arcanurn 70,000 
 
 Order of United American Mechanics 40,000 
 
 Royal Templars of Temperance 22,000 
 
 Equitable Aid Union 17,000 
 
 Endowment Rank, Knights of Pythias 16,000 
 
 Order of United Friends 12,000 
 
 Select Knights, A. O. U. W 11,000 
 
 Knights of Maccabees 1 1,000 
 
 United Order of the Golden Cross 9,ooo 
 
 Empire Order of Mutual Aid 8,000 
 
 United Order of Honor 7,ooo 
 
 Knights of the Golden Rule 9,000 
 
 Home Circle 5,ooo 
 
 Knights of Columbia .' 2,000 
 
 A grand total of 535,ooo carrying insurance to the amount of about $1,200,000,000. 
 
 Very little more was done at this first meeting than to declare its purposes, pre- 
 scribe the characterstics requisite for eligibility in its membership, ^ elect officers to 
 give it an organization and direct the appointment of several committees for special 
 fields of work. The first officers of the Fraternal Congress were as follows: 
 
 President Leroy Andrus, A. O. U. W. 
 First Vice-President A. H. Barnes, Knights of Honor. 
 Second Vice-PresidentJohn Haskell Butler, Royal Arcanum. 
 Recording Secretary R. C. Hill, Select Knights. 
 Corresponding Secretary O. M. Shedd, Order United Friends. 
 Treasurer Halvor Nelson, Endowment Rank, Knights of Pythias. 
 
 The first regular annual session of the National Fraternal Congress was held at 
 the hall of the Order of United Friends, in Philadelphia, November 15, 1887. At the 
 evening session of the first day the following preamble was read and the resolution 
 adopted : 
 
 WHEREAS, There are a large number of Associations, under various names, pre- 
 senting to the public propositions of various characters, that have arisen since, and 
 are meeting with favorable reception because of the success of the standard legitimate 
 fraternal benefit orders, and while it is not the province of this Congress to either 
 reflect upon or endeavor to retard the growth or prosperity of any organization, yet 
 we deem it a duty to ourselves and the public to define what in our judgment is a 
 Fraternal Society, and to be recognized as such. Therefore, we recommend the 
 adoption of the first resolution amended to read as follows: 
 
 Resolved, That a Fraternal Society is an organization working under ritual, hold- 
 ing regular lodge or similar meetings, where the underlying principles are visitation 
 of sick, relief of distress, burial of dead, protection of widows and orphans, educa- 
 tion of the orphan, payment of the benefit for temporary or permanent physical dis- 
 ability or death, and where these principles are an obligated duty of all members 
 to be discharged without compensation or pecuniary reward, where the general mem- 
 bership attends to the general business of the order, where a fraternal interest in the 
 
18 
 
 welfare of each other is a duty taught, recognized and practiced as the motive and 
 bond of the organization. 
 
 Resolved, That any association, however worthy in business point of view, not 
 possessing the characteristics above mentioned, cannot be legitimately termed a "Fra- 
 ternal" Society or Order. 
 
 The Committee on Legislation reported that there had been no changes in the 
 laws of the several States affecting Fraternal Beneficiary Societies except in Missouri. 
 It was complained that the legislation in that State was entirely in the interest of the 
 assessment Life Insurance Companies and was antagonistic to the people at large who 
 were mainly interested in Beneficial Societies. The committee claimed that "Its effect 
 was to force the thrifty persons of moderate means, who are always the bulwark of 
 a State, to pay excessively for life insurance in the interest of corporations who con-- 
 duct the business solely for profit, and to deprive them of the privilege and advan- 
 tage of associating themselves together in the fraternal societies for the benefit of 
 their wives and children. Its animus is plainly shown by a brief review of the law. 
 As a whole it is copied from the Massachusetts Act of Assembly of 1885. The first 
 section of the Massachusetts Act is as follows: 
 
 Every contract whereby benefit is to accrue to a party or parties named therein 
 upon the death or physical disability of a person, which benefit is in any degree or 
 manner conditioned upon the collection of an assessment upon persons holding 
 similar contract, shall be deemed a contract of insurance on the assessment plan and 
 the business involving the issuance of such contracts shall be carried on in this com- 
 monwealth only by duly organized corporations, which shall be subject to the pro- 
 visions and requirements of this Act; but nothing herein contained shall be construed 
 as applicable to organizations which conduct their business as fraternal societies on 
 the lodge system or to organizations which do not employ paid agents for soliciting 
 business or limit their certificate holders to a particular order or fraternity or to the 
 employees of a particular order or fraternity or to the employees of a particular town 
 or city, designated firm, business house or corporation or to organizations which are 
 unincorporated and limit the amount of every certificate issued to a maximum amount 
 and not exceeding $500 on any one risk. 
 
 The Missouri Act copies the first section of the Massachusetts law verbatim, but 
 omits the words exempting fraternal beneficial societies from its operation. The 
 omitted words are, "but nothing herein contained shall be construed as applicable to 
 organizations which conduct their business as fraternal societies on the lodge sys- 
 tem," etc. 
 
 The committee was very bitter in their criticism of the Act and of the Insurance 
 Commissioner of Missouri, because of the fact that the fraternal societies were not 
 exempted from the law. 
 
 Chairman A. C. Trippe, of the Royal Arcanum, was very eloquent in his repre- 
 sentations concerning fraternal beneficial societies. I quote: 
 
 The Beneficial Societies are Societies of the people. They are born of economy, 
 thrift and domestic love; they are the safeguards of the industrious and the honest 
 middle classes, and they are protests against the demands of corporations organized 
 solely for the purpose of gain, which in their excessive demands debar the man of 
 moderate means from making reasonable provisions for his household upon his death. 
 He who strikes at them strikes at the spirit of the age. 
 
 They are and always have been honestly administered, and the provisions of this 
 law under their system it i>s impossible to comply with. No pretense that it was 
 enacted in the interest of their membership will deceive them. They have not asked 
 for such a law; they do not want it. The assessment life insurance companies want 
 
19 
 
 such a law to injure the beneficial societies. They got it. The people of Missouri 
 and of the country want to know why the Insurance Commissioner of that State 
 is favoring legislation and corporations which compel the people to pay $3.00 of their 
 hard-earned money for life insurance, when under the economies and advantages of 
 fraternal societies, which eliminate individual and corporate profit from their system, 
 they can make equal provision at a cost of one-third of that sum for their wives 
 and children. 
 
 We invite all of the beneficial orders to unite in some common plan to meet the 
 emergency. We have no contest with life insurance organizations. We do not belong 
 to them in principle or in practice. We do not intend that they shall injure us, or 
 wrest a department of State government instituted for the protection of the people 
 to their injury. 
 
 The second annual session of the National Fraternal Congress was held in New 
 York City in November, 1888. The Committee on Legislation reported that during 
 the year 1887-1888 legislation adverse to fraternal societies had been attempted in 
 the Dominion of Canada and in the State of Maryland. I quote from the report: 
 
 The attempt of the Insurance Commissioner of Missouri to destroy the Fraternal 
 Orders has been foiled as yet by adverse judicial decision, and the near approach of 
 the session of the Legislature encourages the hope that the sacred interests which 
 are at stake may obtain remedy of the wrong by proper legislation. In the Dominion 
 of Canada a very complex law was submitted at the last session of Parliament. But 
 amid its intricacies it was possible to see both the spirit of animosity to the Fra- 
 ternal Societies and legislative provisions which would maim and destroy them. 
 Through the energy and fidelity of Brother Totten, our Vice-President, assisted by 
 officers of other Orders, this legislation was prevented. 
 
 In Maryland the Mutual Cooperative Societies were seized with a horror of 
 what was called the conduct of the Industrial Insurance organizations, which it is 
 charged are societies that collect their dues, generally five cents per week, of members 
 at the back gate. So they started to reform them by Act of the Legislature, re- 
 quiring a deposit, etc. It was stated in the bill that the Royal Arcanum and the 
 other leading Fraternal Societies were excepted from the provisions of the Act. It 
 was also stated to prominent members of the Fraternal Societies that there were 
 already too many Orders, and it was well to limit their multiplication, and soothe 
 exemption in the law was made to include such Fraternal Societies as were organized 
 on February T, 1888. The contest was waged with great activity for some time 
 between the Cooperative and Industrial Orders, and a bill was finally passed to 
 its third reading, which contained the foregoing provisions. Upon inspection it was 
 found that this bill, in its apparently innocent provisions, contained an admissson of 
 the right of the Insurance Department to control the Fraternal Orders, and the repeal 
 of a date would confirm that control permanently. Prompt steps were taken, the 
 bill withdrawn, amended and passed in accordance with the views of our mem- 
 bership. 
 
 The fourth annual session of the National Fraternal Congress was held in Pitts- 
 burgh, November, 1890, and the President in his address used the following lan- 
 guage : 
 
 There is another question that I will call to your attention and one that I deem 
 of vital importance. How are we to protect ourselves from the many fraudulent 
 organizations that are flooding the country under the garb and cloak of fraternity? 
 We should carefully consider this question as one of deep importance. While we 
 should not do anything to injure in any way any legitimate business or avocation, we 
 should expose fraud and counterfeits wherever found and denounce them in no un- 
 certain terms. Whether or not it would be wise to invoke legislation against such I 
 am not prepared to say, but something should be done to rid the country of the 
 pirates who are robbing the people under the guise of fraternity. 
 
 A bill was drafted in 1888 for the purpose of securing uniform legislation and 
 substantially was enacted into law by Massachusetts. This legislation is fully re- 
 
20 
 
 viewed by the Committee on Legislation at the third session of the National Fra- 
 ternal Congress. At the fourth session of the Congress, Honorable John Haskell 
 Butler reported that the only legislation that had been enacted in the country was an 
 amendment in 1890 to the statute of 1888 by the Legislature of Massachusetts, whereby 
 Sections 6, 9, 10, u and 12, referred to on page 25 of the proceedings of the Congress 
 of the third annual session, were amended as follows : 
 
 SECTION 8. Any corporation duly organized as aforesaid, which does not employ 
 paid agents in soliciting or procuring business other than in the preliminary organiza- 
 tion of local branches, and which conducts its business as a fraternal society on the 
 lodge system, or limits its certificate holders to a particular order, class or fraternity, 
 or to the employees of a particular town or city, designated firm, business house or 
 corporation, may provide in its by-laws for the payment, from time to time as re- 
 quired, of a fixed sum by each member, and from this income may make weekly or 
 other payments to any member during a period of disability of such member, or pay 
 a benefit to the member or his family at the end of such period of time as shall be 
 fixed by said by-laws and written in the benefit certificate issued to said member ; 
 provided, that the sum paid as sick benefits to a member may be deducted from the 
 total amount to become due at the maturity of the certificate. The money derived 
 from assessments as set forth in this section shall be divided into two funds as fol- 
 lows : not exceeding 50 per cent shall be set aside as a reserve fund for the exclusive 
 payment of matured endowment certificates; the residue from each assessment shall 
 be placed in a benefit fund to be applied exclusively to the payment of disability 
 benefits, and no portion of the money received from assessments shall be devoted 
 to or used for any other purpose, or carried to any other fund than as herein pro- 
 vided. No portion of said securities shall be drawn except upon a requisition signed 
 by three-fourths of the Executive Committee, or other officers corresponding thereto, 
 and endorsed by the Insurance Commissioner, setting forth that the same is to be 
 used for the purposes of the trust; provided, that any such corporation within a period 
 of three months preceding the date of maturity of endowment certificates may make 
 any necessary assessments to enable it to meet such obligations, and carry the entire 
 amount received upon such assessments to the reserve fund ; provided, further, that 
 any such corporation which pays death benefits may make assessments therefor, and 
 may hold at any one time, as a death fund belonging to the beneficiaries of anticipated 
 deceased members, an amount not exceeding one assessment from a general or un- 
 limited membership, or an amount not exceeding in the aggregate one assessment 
 from each limited class or division of its members. 
 
 SECTION 9. Any corporation organized under or conducting its business in ac- 
 cordance with the provisions of this Act, which does not pay a benefit to a member 
 or his family at the end of a fixed period of time, may provide in its by-laws for the 
 payment, from time to time as required, of a fixed sum by each member, to be paid 
 to the beneficiaries of deceased members in such amount and manner as shall be fixed 
 by said by-laws. and written in the benefit certificate issued to said member, and pay- 
 able to the husband, wife, affianced husband, affiance's wife, relatives of, or persons 
 dependent upon, such member. Any such corporation may hold as a death fund 
 belonging to the beneficiaries of anticipated deceased members an amount not ex- 
 ceeding five assessments from a general or unlimited membership, or an amount not 
 exceeding in the aggregate five assessments from each limited class or division of 
 its members. Such fund, if not exceeding one assessment as aforesaid, while held in 
 trust, shall be invested in securities in which insurance companies are allowed by law 
 to invest their capital, or deposited in safe banking institutions subject to sight drafts 
 for distribution to the beneficiaries aforesaid. The amount of such fund in excess 
 of one assessment shall be deemed an emergencv fund and shall be invested in securi- 
 ties in which Insurance Companies are allowed by law to invest their capital, or not 
 exceeding 20 per cent thereof in a building for use and occupancy by the corporation 
 as its home office within this commonwealth ; and such securities shall be deposited 
 in trust with the Treasurer of the Commonwealth. Such corporation may also provide 
 in its by-laws for the payment from time to time of a fixed sum by each member, 
 and from the amount thus received may make weekly or other payments to members 
 during a period of disability. This fund shall be used for no other purpose than here- 
 in prescribed, and no assessment therefor shall be called while there remains on hand 
 
21 
 
 of such fund an amount equal to that received from one assessment. No contract 
 under this section shall be valid or legal which shall be conditional upon an agree- 
 ment or understanding that the beneficiary shall pay the dues and assessments or 
 either of them. 
 
 SECTION 10. Any corporation organized under or conducting its business in ac- 
 cordance with the provisions of this Act, and which has no per capita tax, may make 
 not exceeding three assessments per year to meet its reasonably necessary expenses. 
 The purpose of such assessment shall be clearly stated in calls therefor, and no 
 assessments shall be called while the amount of one assessment remains on hand. 
 
 SECTION n. Fraternal beneficiary corporations, associations or societies organized 
 nuder the laws of another State, not transacting in this Commonwealth business as 
 herein defined, may continue such business upon the plans heretofore governing them, 
 as reported to the Insurance Department, and by otherwise conforming to the pro- 
 visions of this Act. 
 
 SECTION 12. Every corporation doing business under the foregoing provisions 
 shall annually, on or before the first day of March in each year, report to the Insur- 
 ance Commissioner the location of its principal office, in this Commonwealth, and the 
 names and addresses of its President, Secretary and Treasurer, or other officers an- 
 swering thereto; and shall make, under oath, such statements of its membership and 
 financial tranactions for the year ending on the preceding thirty-first day of Decem- 
 ber, with other information relating thereto, as said Commissioner may deem neces- 
 sary to a proper exhibit of its business and standing; and the Commissioner may 
 at other times require any further sworn statement he may deem necessary relating 
 to any such corporation. 
 
 Any fraternal beneficiary organization incorporated under Chapter 429 of the Acts 
 of the year 1888, or existing under the laws of this Commonwealth and transacting 
 business as defined in said chapter and amendments thereto, may provide in the same 
 assessment for its disability and death funds ; provided, that the proportion of the 
 assessment to be used for either purpose shall be distinctly stated as well as the 
 amount received for each fund held and used in the manner provided therefor by law. 
 
 Having in mind the fact that Chairman Butler ranked as one of the leading law- 
 yers of Boston, his concluding paragraph is interesting : 
 
 Your committee feels assured, more by reason of signs in the air rather than by 
 any definite information on the subject, that the old line insurance companies are 
 quietly endeavoring in various States to secure legislation which shall hamper the work 
 of the fraternal organizations. Their agents profess, publicly and in private, their 
 belief that our associations have been of inestimable benefit to the business of the old 
 companies, and that they prefer that they should exist rather than that anything should 
 be done to interfere with their work. Nevertheless we cannot avoid the conclusion 
 that wherever, without their ostensible action, adverse legislation can be secured, it 
 will be quietly done. It therefore is of the utmost importance that fraternal men, 
 members of fraternal orders in all the States, should keep a continual and sharp 
 watch upon the Legislatures when in session, and have some member favorable to 
 our interests whose duty it shall be to inspect every bill bearing upon life insurance 
 subjects and taxation, with a view to prevent restricting legislation. It would seem 
 as if all which remains for your committee to recommend is that their successors 
 shall keep on in the work mapped out for them by the Congress and so far as possible 
 protect the interests of the fraternal organizations by watchfulness and advice. 
 
 I have quoted at length from the important provisions of the Massachusetts 
 statute, because it was taken as a model form by a number of other States, and 
 because it was the first extended legislative enactment concerning Fraternal Bene- 
 ficiary Societies. The provision for the payment of endowments and the limitation 
 of the amount of funds to the amount of five (Section 8) or one (Section 9) assess- 
 ments are noteworthy features. 
 
 The interpretation of the Certificates of Fraternal Beneficiary Societies by the 
 Courts usaully is made upon the determination of their legal status and therefore it is 
 
22 
 
 of the utmost importance that careful study be made of the history of legislation. 
 On account of the numerous legislative bodies having to do with insurance organiza- 
 tions it is not within the limits of space which can be devoted to the subject to 
 make a thorough review of laws enacted from year to year. Since 1888 virtually 
 was the beginning of State legislation for the regulation and control of these Socie- 
 ties, and by 1890 State supervision had become a definite policy, I believe it well to 
 give a synopsis as of that year 1890. 
 
 As stated the sections above quoted were the important provisions in the Massa- 
 chusetts statute. Others were as follows: 
 
 First. That seven or more persons, citizens of that Commonwealth, might form 
 a fraternal beneficiary corporation and the manner of the organization is provided for. 
 
 Second. There is a definition of the nature of the corporation and its operation. 
 
 Third. Fraternal Beneficiary Associations organized under the laws of another 
 State, but transacting business in Massachusetts, shall report on the request of the 
 Commissioner. 
 
 Fourth. The report is required to be made on or before the ist of March each 
 year, giving amongst other specified information a statement of its membership and 
 financial transaction up to December 31, preceding. 
 
 Fifth. It provides for the appointment of the Insurance Commissioner as the 
 attorney upon whom process is to be levied. 
 
 Sixth. Corporations not then in the State were excluded therefrom, No pro- 
 vision is made for their admission. 
 
 There was no general law in Canada for the regulation and supervision of Fra- 
 ternal Beneficiary Societies, and the exemption clause to the general insurance Act 
 was as follows : 
 
 Neither the consolidated insurance Act (1877) nor this Act shall apply to any 
 society or association of persons for fraternal, benevolent, industrial or religious pur- 
 poses. Among which purposes shall be the assurance of the lives of members thereof 
 exclusively ; or to any association for the purpose of life assurance formed in con- 
 nection with such society or organization and exclusively from its members, and 
 insuring the lives of such members exclusively. 
 
 There were no general statutes for the regulation or supervision of Fraternal Bene- 
 ficiary Societies in Alabama, Colorado, Connecticut, Delaware, Georgia, Illinois, In- 
 diana, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, Ohio, Oregon, 
 Pennsylvania, Rhode Island, Texas, Virginia and West Virginia. As in Canada there 
 were exemption clauses to the general insurance laws, and I quote that for Illinois as 
 a representative provision for the States named : 
 
 Provided, that nothing herein contained shall be held to apply to any organization 
 of a truly social, religious or benevolent character, where no commissions are paid 
 and no salaried officers or agents are employed, nor to any local association or society 
 organized under or subject to the control of a Grand or Supreme body, nor to any 
 secret organization having subordinate lodges or councils which has been organized 
 under the laws of this or any other State, and which is now permitted to do business 
 in this State. 
 
 There were no laws concerning Fraternal Beneficiary Societies in the States of 
 California, Dakota, District of Columbia, Mississippi, Nevada, New Hampshire, New 
 Jersey, New Mexico, North Carolina, Tennessee, Utah, Washington and Wyoming. 
 There was in 1890 a law pending in New Hampshire. 
 
 In Florida, South Carolina, Vermont and Montana, there were no laws, exemption 
 
23 
 
 or otherwise, relating to fraternal societies, but there had been department ruling 
 making the general insurance laws applicable to fraternals. 
 
 In Maine, Massachusetts, Nebraska, New York and Wisconsin there were special 
 laws concerning Fraternal Beneficiary Societies. The Maine law was similar to that 
 in Massachusetts heretofore quoted. 
 
 The Maine law of 1890 defines the business of Fraternal Beneficiary Associations 
 as follows: 
 
 Any corporation duly organized as aforesaid, and which does not employ paid 
 agents in soliciting and procuring business, other than in the preliminary organiza- 
 tion of local branches, and which conducts its business as a fraternal society, on the 
 lodge system, or limits its certificate holders to a particular order, class or fraternity, 
 or to the employees of a particular town or city, designated firm, business house, or 
 corporation, may provide in its by-laws for the payment from time to time, of a 
 fixed sum by each member, and from this income may make weekly or other payments 
 to each member during the period of disability of such member. Such corporation 
 may also provide in its by-laws for the payment from time to time of a fixed sum 
 by each member, to be paid to the beneficiaries of deceased members in such amount 
 and manner as shall be fixed by said by-laws and written in the benefit certificate 
 issued to such member, and payable to the husband, wife, children, relatives of, or 
 persons dependent upon such member; but no contract under this Act shall be valid 
 or legal which shall be conditional upon an agreement or understanding that the 
 beneficiary shall pay the dues and assessments, or either of them, for said member. 
 
 It also provides that Masonic and Odd Fellows' Associations within the State may 
 employ paid agents in soliciting business, said agents to be licensed by the Insurance 
 Commissioner; provides that such corporation may hold as a death fund an amount 
 not exceeding one assessment ; provides that the fraternal beneficiary corporations, 
 associations or societies, organized under the laws of another State, and now transact- 
 ing business as herein defined in this State, and which now report, or which shall 
 report when requested, to the Insurance Department, may continue such business 
 without incorporating under this Act. Fraternal beneficiary corporations or societies, 
 not now transacting business in this State, which may hereafter desire to do so, must 
 first obtain a license therefor from the Insurance Commissioner, and shall furnish 
 him a copy of its by-laws, with a statement showing its membership and financial 
 condition, and such other information as he deems necessary. It requires each 
 society or association to report annually on or before the first day of April (March, 
 in Massachusetts) to the Insurance Commissioner the names and addresses of its 
 President, Secretary and Treasurer, and shall make such further statements of its 
 membership and financial transactions for the year ending the 3ist day of December, 
 as may be necessary, for the proper exhibit of its business and standing; provides 
 for the punishment of any person who assists in procuring membership in any society 
 not doing business as authorized in this Act. It is provided that the benefit shall not 
 be liable to trustee or garnishee process, and shall not be taken or appropriated for 
 any debt of the certificate holder or beneficiary. 
 
 The general insurance statute of Maine, regulating business and assessment in- 
 surance associations, provides "that nothing herein contained shall be construed as 
 applicable to organizations which conduct their business as fraternal societies on the 
 lodge system." 
 
 The New York law defines Fraternal Orders as follows : 
 
 First. Section 6. All Beneficiary Societies, Orders or Associations, whether volun- 
 tary or incorporated under the laws of this State, or any other State or Territory 
 of the United States or of the District of Columbia, the members of which are com- 
 posed, elected and initiated in subordinate lodges or councils or other bodies, by 
 
24 
 
 whatsoever other name known, according to the constitution, laws, rules, regulations, 
 rites and ceremonies of such societies, orders or associations respectively, now exist- 
 ing in this State or which may be hereafter instituted or organized in this State, or 
 authorized to do business in this State, are hereby declared to be mutual benefit 
 fraternities, and exempt from the provisions of the insurance laws of this State, and 
 shall be subject only to the provisions of this Act. 
 
 Second. It further provides that any number of persons, not less than nine resi- 
 dents of the State of New York, desiring to form a Fraternal Beneficiary Society, 
 Order or Association for the relief of members or beneficiaries, shall file in the office 
 of the Superintendent of the Insurance Department a declaration signed by each of 
 the corporators, setting forth its name, mode of operation and names of officers, 
 and upon certificate of the Attorney General, that the law has been complied with, 
 and upon the Insurance Commissioner being satisfied that there are 200 subscribers 
 whose benefits aggregate $400,000, and that one assessment amounting to, at least, 
 i per cent thereof Has been paid in full in cash, then he shall issue his certificate and 
 license authorizing the society to transact its affairs. 
 
 Third. It provides for the reincorporation of orders already existing, and that 
 no foreign corporation shall do business in the State until it has filed the certificate 
 as above, and the Insurance Commissioner may revoke the certificate when the mem- 
 bership falls below 200 with representing benefits aggregating $400,000. 
 
 Fourth. The Society shall have power to make its own Constitution and Laws, 
 not inconsistent with the Constitution and Laws of New York State, or of the United 
 States. 
 
 Fifth. Section 8. Such Fraternal Beneficiary Societies, Orders or Associations, 
 may make such promise or agreement with their members for the payment of benefits 
 to a member, or others dependent upon him, or beneficiary designated by him, as 
 may be provided by the Constitution, Laws, Rules and Regulations of such Fraternal 
 Beneficiary Societies, Orders or Associations respectively, subject to a compliance 
 therewith by the member, provided that no such Fraternal Beneficiary Society, Order 
 or Association shall issue any certificate or make any promise or agreement, express 
 or implied, for the payment of any greater sum of money than one assessment upon 
 all its members will realize, at the time of issuing such certificate or making such 
 promise or agreement. 
 
 Sixth. Section 9. Such Fraternal Societies, Orders or Associations may derive 
 such money or such benefit, charity, relief or aid fund from voluntary donations, or 
 from admission fees, dues and assessments collected, or to be collected from mem- 
 bers thereof, in manner and form as may be provided by the Constitution, Laws, 
 Rules and Regulations of such Societies, Orders or Associations respectively, but no 
 such Society or Officer thereof shall use any money collected or received for the 
 payment of beneficiary claims, for any other purpose. 
 
 Seventh. It provides also that all such Societies, Orders or Associations, together 
 with their books, papers and vouchers, shall be subject to visitation and inspection 
 by the Superintendent of the Insurance Deparemtnt, or such person or persons as he 
 may at any time designate. Any such Society, Order or Association refusing or neglect- 
 ing to make such report may, upon the suit of said Superintendent, be enjoined by 
 the Supreme Court from carrying on any business until such report shall be made, 
 and until the costs' of such action be paid. Said Superintendent must, within thirty 
 days after failure to make such report, or in case any such Society, Order or Asso- 
 ciation shall exceed its powers or shall conduct its business fraudulently, or to com- 
 ply with any of the provisions of this Act, give notice in writing to _ the Attorney- 
 General, who must immediately commence an action against the Society so failing. 
 The annual report to the Superintendent of Insurance shall be in lieu of all other 
 reports required by any other law. 
 
 Eighth. Each notice of assessment shall set forth truly the purpose of such 
 assessment, and what portion or amount thereof, if any, is to be used for the pay- 
 ment of other than beneficiary claims. 
 
 Ninth. Benefits shall not be subject to garnishment. 
 
Tenth. Any officer, member, agent, solicitor or examining physician of said 
 :iety, or any other person who shall knowingly or willfully make any false or 
 fraudulent statement _or representation in or with reference to any documentary or 
 other proof for the purpose of obtaining membership in or benefit from any such 
 Society, Order or Association, for himself or any other person, shall be guilty of a 
 misdemeanor. 
 
 Eleventh. Existing Fraternal Societies are made subject to the provisions of this 
 Act, except in its provisions for incorporation and the filing of the certificate, as a 
 
 rdition precedent to beginning operation. 
 Twelfth. Nothing in this Act shall be construed to apply to any Corporation, 
 Society or Association carrying on the business of life, health, casualty or accident in- 
 surance for the profit or gain, and shall only apply to Fraternal Beneficiary Societies, 
 Orders or Associations, as defined by Section 6. 
 
 Thirteenth. Independent Order of Odd Fellows, Free and Accepted Masons and 
 Knights of Pythias, exculsive of the endowment rank, excepted. 
 
 The Law of Wisconsin, as approved April 9, 1889, requires a report similar to 
 that of Massachusetts, to be made, and provides for the appointment of the Insurance 
 Commissioner as attorney, upon whom process against the corporations shall be 
 served. In other respects the Fraternal Societies are not subject to insurance legis- 
 lation. 
 
 The Nebraska statute provides : 
 
 Any secret society or association, the management and control of which is con- 
 fined to the membership of any secret society or order, heretofore organized, or 
 which may hereafter be organized, which in addition to the benevolent and fraternal 
 features thereof, shall also issue certificates of indemnity calling for the payment of a 
 certain sum, known and defined, in case of the death, disability or sickness of any of 
 its members, to the wife, widow, orphan or orphans, or other person dependent 
 upon such members, shall be exempt from the provisions of the law relating to life 
 insurance companies. Provided, that such secret society or association as aforesaid 
 shall comply with all the requirements of this Act. 
 
 Within thirty days after the taking effect of this Act such society as aforesaid 
 shall, by its presiding officer or recording officer, or both of them, file a certificate in 
 the office of the Auditor of Public Accounts, setting forth the total number of mem- 
 bers in good standing in such Society or Association at the date of the taking effect 
 of this Act, the name, title and postoffice address of each of the chief officers of such 
 Societies or Associations, the plan of assessments upon which funds are provided to 
 pay the certificate of indemnity issued by such Society or Association, together with 
 a certified copy of the constitution and by-laws of such Society. If, from such state- 
 ments, the Auditor of Public Accounts shall be satisfied that such Society or Associa- 
 tion has a sufficient membership to pay a certificate so issued by such Society or 
 Association in case of the death of any of its members by its usual method of assess- 
 ment, he shall issue to such Society or Association a certificate authorizing it to 
 tranact its business for one year. 
 
 It then provides for annual reports, which requirement is repealed by the Act of 
 1889. It further enacts that if at any time the Auditor shall be credibly informed 
 that the membership has fallen below the number sufficient to pay the indemnity, he 
 shall investigate the matter, and, if proven, shall withdraw the certificate. 
 
 Before any change in the constitution and by-laws of any such society or corpora- 
 tion shall take effect, a copy of the same shall be filed in the office of the Auditor of 
 Public Accounts. 
 
 Money collected for the payment of certificates of indemnity shall be used for no 
 other purpose. 
 
 Any person or persons violating the provisions of this Act shall, upon conviction 
 thereof, be imprisoned in the penitentiary for not more than five nor less than one 
 year. 
 
 Any officer embezzling or appropriating any of the funds of any such Society to 
 his own use shall he guilty of embezzlement, and upon conviction thereof be punished 
 accordingly. 
 
26 
 
 The Committee on Legislation, in its report to the National Fraternal Congress, 
 referring to the Nebraska and Massachusetts statutes, used the following strong lan- 
 guage : 
 
 This (Nebraska law) is the most iniquitous Act upon the statute book. The re- 
 quirement that the certificate must be filed within thirty days after the passage of the 
 Act is evidently intended to ensnare the Orders who in that brief period may never 
 have heard of the law, and it practically excludes all new organizations from doing 
 business in the State. 
 
 The proviso that the changes in the laws shall not take effect until a copy has 
 been filed in the Auditor's office is the sublimity of impudence, of arbitrariness and 
 injustice. 
 
 Attention is especially called to this law that its provisions may be modified in the 
 interest of fairness, and if the Insurance Department of the State is responsible for 
 its enactment, that department should at once be attacked by the Fraternal Orders, 
 as partisan and tyrannical. 
 
 The law of Massachusetts gives too much power to one man. It practically ex- 
 cludes all new orders from entering the State, and in this nineteenth century has 
 built a Chinese wall around the old Commonwealth, and secure behind it, as he thinks, 
 the Insurance Commissioner, interpreting the law, says the words ''report when re- 
 quested," mean that if I do not request them they cannot "report when requested," 
 and cannot come in under the law. That is to say, that the status of every Fraternal 
 Order in the State of Massachusetts depends upon the judgment and whim of the 
 Insurance Commissioner, uncontrolled by, or rather supported by law, whether he will 
 ask it to report or not. This extraordinary interpretation should be looked into and 
 an adverse decision had or the law repealed. No presumed benefit can justify the 
 conference of such power on any man in these days. 
 
 The committee, answering the question, Is Legislation Needed? delivered itself 
 as follows : 
 
 An analysis of the special laws relating to the Fraternal Societies, which are on 
 the statute books, show us: 
 
 That in Nebraska the intention of the legislation was plainly to cripple and drive 
 the Fraternal Orders from the State. 
 
 The Missouri law simply relates to the annual reports, while the laws of Massa- 
 chusetts, Maine and New York include this feature, and declare the mode of incor- 
 poration, with some limitations intended to provide for the protection of members. 
 The distinction between the Fraternal Orders and the mutual assessment companies 
 is maintained in these statutes, and this is right, but beyond the provisions for their 
 incorporation, based upon their essential and distinctive features and principles, it is 
 questionable whether the other provision of those Acts are of any practical utility. 
 
 What are these provisions intended to protect the membership? 
 
 First. Annual report, Massachusetts, New York, Maine and Wisconsin law. 
 
 Second. Any solicitor, agent or examining physician, knowing or willfully making 
 any false or fraudulent statement or representation, in or with reference to any appli- 
 cation for membership, or for the purpose of obtaining any money or benefit in any 
 corporation, etc., shall be guilty of a misdemeanor (Maine, Massachusetts and New 
 York laws). And making it perjury for any person to make a false statement of a 
 material fact under oath in death proofs. (Massachusetts law.) 
 
 Third. No Society shall promise to pay more than one assessment will yield. 
 (New York law.) 
 
 Fourth. The assessment notice shall state specifically its object and what propor- 
 tion is to be used for other than beneficiary claims. (New York law.) 
 
 Fifth. Defining what constitute beneficiary societies. (New York, Maine and 
 Massachusetts law.) 
 
 Sixth. Declaring misappropriation of funds embezzlement. (Nebraska law.) 
 Seventh. Funds not subject to garnishment. 
 
27 
 
 The provision in relation to embezzlement is believed to be covered by the crimi- 
 nal law of all the States. 
 
 The especial features of this legislation are prompted by what might occur rather 
 than what the experience of the Orders necessitates, but they are not in any way de- 
 pendent upon the supervision by the Insurance Departments, which is ingeniously in- 
 troduced into the Acts. Some of them, notably that relating to garnishment, were 
 included in the old statutes, and it is believed that this provision is the only one that 
 has been of any practical benefit. 
 
 The losses of the Orders from the offenses described as constituting misdemeanor 
 and perjury are hardly worthy of mention, and are largely and best provided for by 
 the vigilance and activity of the members. 
 
 That a Society shall pay more than one assessment will yield seems rather a 
 matter for the members than for the paternal (sic) Commonwealth. 
 
 The assessment notices, so far as we are aware, specify distinctly the object of the 
 call. 
 
 The definition of a Fraternal Order is an important one, and the distinction 
 between them and Life Insurance Companies of any description should be fully set 
 forth in all legislation likely to affect them. 
 
 It is a very remarkable fact that all the legislation on the statute books relating to 
 the Fraternal Societies originated with the Life Insurance Companies, or with the 
 Insurance Departments of the States. It has not come from the members of the 
 Orders or their officers. It is true that some officers of the Fraternal Societies, 
 thinking that an annual report could do no harm and might do good in showing the 
 condition of the several Orders at the time it is made, did not seriously object thereto, 
 but the necessity or right of State supervision of the Fraternal Orders, it is believed, 
 has not been admitted by any one authorized to speak for them. 
 
 The reason for this is obvious. A life Insurance Company is a close corporation. 
 Its insured can have no knowledge of its affairs except as it chooses to exhibit them. 
 A Fraternal Order has an argus eye in each of its members, prying into its affairs. 
 Each one is an integral part of the whole, and its workings in all their details are 
 exhibited in the council room, in the Grand and in the Supreme Councils, to a body 
 jealous of its prerogatives and too large to enter into any combinaticn for wrong- 
 doing. 
 
 In all the machinery necessary to protect members against fraudulent applica- 
 tions, death claims and misappropriations of funds, the customary provisions of the 
 constitutions and laws of the Orders have proved sufficient, backed as they are by the 
 ordinary criminal laws in the several States. 
 
 The submission of the Fraternal Orders to the control of the Insurance Depart- 
 ment of any of the States is wrong in principle, and of no benefit to the members of 
 the Orders in practice. The reports are buried and are of as much general use 
 as the census statistics, while the annual reports of the Supreme authorities of the 
 Orders are published for general inspection, and can be obtained, if necessary, by 
 any one. 
 
 The assessment notice is the warning voice to the member, bidding him to inquire 
 into the Society's affairs, and it is the only notice that the member ever heeds. 
 
 It is wrong in principle, because the distinction is marked and wide between 
 the Fraternal Orders and the Insurance Companies of all kinds. The one is organ- 
 ized with a view to business profit solely. The other is constituted for benevolent pur- 
 poses, with the death benefit as an incident to its benevolent features. The whole 
 motive of operation and the objects of the Insurance Companies are widely divergent 
 from the Fraternal Orders. And with this marked distinction, it is a wrong upon 
 them to break down this barrier, and subject them to the control of a department, 
 organized from an insurance standpoint and in every case where special legislation has 
 been had, may be depended upon to look at affairs through insurance spectacles. 
 
 The Orders today are as honestly conducted in the States where they are exempt 
 from any control as in those States where the insurance authorities have assumed 
 to superintend them. The long array of those States shows that there is no neces- 
 sity for special legislation. The constitutions of the Orders, and the vigilance of the 
 membership with the ordinary criminal statutes relating to frauds and misdemeanors, 
 have proved a sufficient protection. And the very few instances where offenses have 
 occurred have found the remedy ready and sufficient and do not justify the sub- 
 jection of the Fraternal Orders to the alien institution of the Insurance Department. 
 These remarks are only intended to include the legislation promoted by those In- 
 
28 
 
 surance Commissioners who have sought to aggrandize their offices at the expense 
 of the Fraternal Orders, and do not include the honorable and intelligent officials 
 who appreciate the Fraternal Orders, and the distinction between them and the money- 
 making corporations, and who recognize the fact that they are not intelligently sub- 
 ject to their departments. 
 
 Your committee are therefore of the opinion that no legislation subjecting the 
 Fraternal Orders to State control in any may should be permitted to be enacted. In 
 cases where legislation has already been had, it should be repealed, or a new depart- 
 ment, to be called the "Department of the Fraternal Orders," should be created and 
 substituted for the Insurance Department. And the law should provide that the 
 incumbent of said office shall be a member of one of the Fraternal Orders. No man 
 who is not a member of the Benevolent Societies can comprehend,, do justice to, or 
 should in any manner be permitted to control the economy of these institutions. That 
 in all legislation relating to Insurance Companies, which by plain expression or by 
 ingenious and subtle wording, might affect such Orders, a clause should be added 
 expressly excluding them from its operation. That the experience of the large ma- 
 jority of the States shows that no legislation is necessary to protect the members 
 of the Orders from their management, but that everywhere the .most intelligent and 
 active interest is necessary to protect the Orders from legislation promoted by the 
 Insurance Companies. 
 
 Whenever in any State it is advisable to have a special law for the incorpora- 
 tion of the Fraternal Orders, your Committee believe that the New York law is less 
 liable to objection than the others, omitting Section 10, which relates to Supervision 
 by the Insurance Deparament ; amending Sections 2, 3 and 4, so that the application 
 for charter or re-incorporation shall not be made to the Insurance Department, but 
 the certificate shall be filed and the license or charter issued, as is provided for cor- 
 porations, under the general Incorporation Law of the respective States ; and that 
 the certificate of foreign corporations, provided for in Section 5, shall be filed with 
 the Secretary of State, who shall be substituted for the Insurance Department, or 
 Superintendent of Insurance Department, in said section. 
 
 Your Committee therefore recommend the adoption of the following resolutions : 
 
 Resolved, i. That the Fraternal Societies be exempted from the provisions of all 
 laws relating to insurance companies, regular or cooperative. 
 
 Resolved, 2. That no legislation is needed, unless possibly in some isolated cases, 
 where experience has shown it is advisable to protect the fraternal beneficial orders 
 from Societies not properly fraternal, in States where the distinction is not drawn by 
 present legisation ; and this can best be done by a simple clause of exemption. 
 
 Resolved, 3. If deemed advisable, under peculiar circumstances, in certain States, 
 the New York law should be used ; so amended that the certificate should be filed and 
 the charter or license issued in the manner provided in the general Incorporation 
 Laws of the several States; that no report shall be made to the Insurance Com- 
 missioner, but that a new department, to be called the Department of the Fraternal 
 Orders, shall be created in every State where supervision or control of the Fraternal 
 Orders shall for any cause be permitted. 
 
 The report of the Committee was unanimously adopted and its resolutions sup- 
 ported without dissent. The members of the Committee were leaders and the dele- 
 gates to the Congress were the officials and many of them the founders of the most 
 important Societies in the United States and Canada. Amongst them were Boynton, 
 Sackett, Nelson, Miller, Harvey, Craig, Hall, Stevens, Savage, Warnock, Shedd, Acker, 
 Shepherd, Irving, Brown, Robson, Wright, Seaver, Shields and Pratt; while on the 
 Committee on Legislation were John Haskell Butler, W. Warne Wilson, John Mulli- 
 gan, S. A. Will, John Otto, John T. Milburn and M. G. Jeffries. 
 
 Should not such men be held as true interpreters of the purpose and character of 
 Fraternal Beneficiary Societies? 
 
 We have these men standing as a solid body against legislative regulation and 
 departmental supervision, and, excepting five States, their view is accepted (in 1890) 
 by State Legislatures and Insurance Commissioners. The previous effort to secure 
 
29 
 
 a modicum of legislative control in Missouri had been "foiled" by Court interpretation 
 and decision. 
 
 We have these men, twenty years after the A. O. U. W. began business, unanimously 
 declaring that the Fraternal Beneficiary Societies "are constituted for benevolent 
 purposes, with the death benefit as an incident to its benevolent features.'' 
 
 We hear them declaring that "no legislation subjecting the Fraternal Orders to 
 State control, iir any way, should be permitted" unless in "isolated cases," and then 
 "this can best be done by a simple clause of exemption." 
 
 Commissioner Wilson, of the Internal Revenue Department, and Justices of the 
 Supreme Courts of Pennsylvania, Missouri and Illinois had good authority to support 
 their rulings ! Protesting members can quote the fathers to sustain their conten- 
 tions ! 
 
 This history should reflect the spirit of the times as it progresses, and to that end 
 I quote from the address of President A. R. Savage, at the fifth annual session of 
 the Congress, held in Washington, D. C., November 10, 1891 : 
 
 I do not know that history records any instance of so marvelous a development of 
 a charitable, or human, or social principle, so far-reaching in its effects, as that em- 
 bodied in the constitutions of the Fraternal Orders. Citizens divided in interests, 
 separated by locality, of every tenet in religion, and every shade of political convic- 
 tion, unknown to each other when enlisted under the white banner of charity, and 
 drawn to each other by the bonds of fraternity, become brothers in spirit and in deed, 
 giving of their substance, as well as of their sympathy, to those upon whom want has 
 fallen, and upon whose pathway the shadow of misfortune is resting. 
 
 We began in darkenss, but evermore our paths have been tending toward the 
 light. We began in ignorance ; we have learned wisdom by sharp and profitable expe- 
 rience. We had no place either upon statute book or in the decisions of the courts. 
 No more had we any recognized position among the varied social forces which sur- 
 round and control mankind. Courts looked upon us with disparagement; Legislatures 
 with suspicion, and society, as the latest Utopian experiment devised by idealists, per- 
 chance to live, and living to die, marking one more of the failures of enthusiastic and 
 unwise men whose hearts felt more grandly than their eyes were permitted to see 
 wisely. But by patience and intelligence, and steadfastly continuing in good works, 
 all this has been changed. 
 
 Today, after a little more than twenty-five years, at least one in forty of all the 
 population of our country, including men, women and children, are members of some 
 one or more of these societies, and at least one in ten are their beneficiaries. Should 
 one ask me whether such a plan, built upon such a foundation, was liable to endure, 
 my first answer would be, "nothing in this generation can fail which meets so per- 
 fectly the common wants of a common people." This is not the time for a discussion 
 of the theory of fratenal beneficence. That we have assembled here in this Con- 
 gress is the evidence and proof of our convictions. Before us is the problem, "How 
 may we best improve, amend and modify the details of our work and put into prac- 
 tical shape and operation, the lessons learned in the school of experience?" Each year 
 brings new lessons by which we may profit. We are just beginning to turn the light 
 of philosophy upon our plans, and to tabulate, to analyze and compare. Vital sta- 
 tistics are gradually becoming more and more important to us, and we are learning 
 to rely less upon wild, impetuous, unregulated impulse, either for sustaining existence 
 or promoting growth, and more upon mthodic philosophical and wisely directed efforts. 
 
 We come into sharp competition with the "old line" insurance companies. We 
 come into competition with the open assessment associations, which have taken in part 
 our form, but have left our substance. We come into competition with Orders which 
 claim to be allied to us, but have neither our form nor our substance. But our field 
 is peculiarly our own. never to be successfully invaded by any competitor, so long as 
 the warfare we wage is only for the widow and the orphan, and not to promote selfish, 
 temporal interests. Let benevolence, and not gain, be our cornerstone, and our build- 
 ing shall stand immortal, eternal. I believe we can in no way so well do ourselves 
 and our Societies the most good, as by declaring in the most emphatic manner our 
 belief in the old "land marks." Let us stand steadfast where this Congress has always 
 
30 
 
 stood, extending the right hand of fellowship to those who build upon such foundation 
 as we have built upon. The most exalted form of fraternal benevolence is that exem- 
 plified by men who gather round a common altar and take upon themselves a sacred 
 vow to be faithful unto death to the loved ones, to care for the widow, to lift up the 
 orphan, and relieve the sick and the distressed, and never to make even the form of 
 fraternity a pretense for personal gain. 
 
 I also congratulate you upon the fact that, after these many years, merit and not 
 cheapness is becoming the criterion of excellence by w'hich Fraternal Societies are 
 judged. 
 
 I think this Congress should adopt some more systematic and efficient method of 
 making its influence felt in legislative halls, when legislation, either favorable or ad- 
 verse, is under consideration. Notably, in two or three States this last year, dangerous, 
 if not hostile, laws have been enacted which might have been defeated by concerted 
 action. We cannot be too vigilant. There should be a sentinel upon every outpost, 
 and the entire army, when it sleeps, should sleep upon its arms. 
 
 Surely the voice of a million and a half of men and women, uttered with force 
 and authority, cannot fail to be heard and heeded by the most obdurate of legislators. 
 
 It was noted that the Massachusetts law permitted the payment of endowments by 
 Fraternal Societies. In 1891 began the agitation that resulted in the elimination of 
 such permission from the laws of all the States, excepting the payment of a stated 
 sum as an old-age benefit at age 70. I quote from the proceedings of the Congress: 
 
 The President: There being no reports of committees ready to be presented at 
 the present time, the Congress will take up the next matter on the program, to-wit : 
 Subject No. 8, discussion of subject, "Can a Fraternal Society safely transact an en- 
 dowment business and pay a stated sum at the end of a stated number of years, 
 or sooner in the event of death?" Upon that subject James E. Shepherd has pre- 
 pared a paper which the Congress will not listen to: (The concluding paragraphs ar? 
 given.) 
 
 Now, what did the founders of the Fraternal Orders start out to do merely this 
 and nothing more: 
 
 To protect the widow and the orphan. In fact, today the benefit fund of one of 
 the oldest and largest Orders is officially known as the "Widows and Orphans' Benefit 
 Fund." Then no man sought any direct personal gain, and the proof of this is that 
 in many of the older Orders only men were admitted to membership, and I call to 
 mind but one Order, organized as far back as 1876, that admitted women to mem- 
 bership. By thus shutting out the wife from membership, he practically could be 
 the beneficiary of no one his action was free from all else than protection to those 
 dependent on him; it was utterly without selfishness, and justly and fairly stated he 
 was one of a brotherhood that formed and established a fraternity so beneficent, un- 
 selfish and single-minded, that it was a practical embodiment and application of the 
 theory of the golden rule. 
 
 So patent was this to the honest observer that from very general distrust and un- 
 belief came a change to almost universal commendation. Hon. John K. Tarbox, in 
 1887, in his annual report to the General Court of Massachusetts, speaking of these 
 Societies, officially endorsed them, saying: "The fit word is one of cordial commen- 
 dation, aside from the gracious benefits they disburse through their insurance plan ; 
 they unite the people in sympathetic association and foster a worthy social spirit." 
 
 Under no other plan could these Orders have won the place they hold in the world's 
 regard. Under it came their phenomenal growth and consequent ability to do an 
 unmeasured and almost unmeasurable good. 
 
 And now, having briefly set forth the plan of each, I submit my conclusions : 
 
 A Fraternal Order cannot safely sell endowments, because 
 
 First. The plans of the Fraternal Orders and a company selling endowments are 
 dissimilar and irreconcilable. 
 
 Second. An endowment is purely banking and not insurance of any kind. 
 
 Third. Speculation enters into endowments. It is foreign to, and would be fatal 
 to, the fraternal plan. 
 
 Fourth. Fraternal assessment insurance is still in its experimental stage, and there 
 is danger and unwisdom in adding any foreign matter until time shall fully develop 
 
31 t 
 
 the proper course to remedy and permanently overcome the undesirable things that 
 each year develops to him who does not shut his eyes to the disagreeable. 
 
 D. E. Stevens also presented a paper on subject Xo. 8, and following are ex- 
 cerpts : 
 
 Can a Fraternal Society safely transact an endowment business, and pay a stated 
 sum at the end of a stated number of years, or sooner in the event of death? 
 
 Life insurance is indemnity against financial loss by death, and should be based 
 upon the present or prospective productiveness of the person insured. 
 
 Endowment Insurance is Term Insurance combined with a compound interest in- 
 vestment. 
 
 Tabor, in his "Three Systems," says : "A healthy body, a strong will, an active 
 brain, and a natural aptness for business, are the most productive property in the 
 world. It has been said that when time was young, only two human beings lived 
 on this earth. They lived in a garden, and rig leaves were their clothing. There 
 were no business blocks, no railroads, no banks, no palatial residences, no trade, no 
 commerce, no money, no art, no science, no culture, no material wealth. All of these 
 have since been produced by the brain of man. One generation after another has 
 lived and passed away, each contributing something to what now constitutes the 
 wealth of the world ! One hundred years hence every man, woman and child now 
 living will be dead. The exceptions only prove the rule. Man, truly, is very produc- 
 tive, and there is nothing more certain than that he will die." 
 
 While under the former conditions there was no such thing as Life Insurance, 
 nor need of it, yet one can readily see how the present condition of things makes 
 necessary Life Insurance. 
 
 Endowment Insurance differs quite widely from Life Insurance in many respects. 
 If we take it for granted that the question means, is it safe from a financial or mathe- 
 matical standpoint for such a Society to transact an endowment business, if the Society 
 be building and equipped with the necessary machinery needful thereto, we answer, 
 Yes. 
 
 In answering the first phase of this question in the affirmative, I could do so only 
 upon condition that with the seeming mystery the explanation also go. I think there 
 can be no question as to there being a safe method of conducting an Endowment 
 business. It may be expensive, but it can be made safe, provided the funds are honestly 
 held and faithfully invested by those having them in charge. 
 
 To say that as the end of the term of years in which the first Endowments are to 
 mature draws near, that by the extra heavy sums which will be required, a large 
 number of the members will be compelled to lapse their membership, thus swelling the 
 profits of those who remain, is a proposition so uncertain and so at variance with 
 equity, business prudence and the milk of human kindness, that I can scarcely think 
 that any organization would found calculations thereon, much less seriously consider 
 them safe. 
 
 Now, without wearying your patience by going into a calculation in further detail, 
 I submit that such a proposition is not (in my judgment) a safe one, unless some 
 alchemist or magician is called upon to assist in the attainment of the promised end. 
 
 As many of these so-called Societies pay a mere pittance at death of a member 
 who dies before the end of the Endowment term, their business would more properly 
 be called Tontine Insurance. 
 
 Now, there are longer term endowments, which present something more practical, 
 but which, of course, must include a fund sufficient, with accretions from interests and 
 profit from lapsing, to amount to the face of the certificate by the end of the endowment 
 period. The advantage gained in a longer term comes from the fact that these factors 
 have a so much wider field in which to operate, and therefore come to the assistance 
 of the member in a much greater degree than is possible under the short term method. 
 To fix the endowment period at or about the end of probable life is the most favorable 
 plan possible for anything of an endowment nature, for thus, only the veterans who 
 have faithfully and loyally stood by the organization reap a reward, and themselves, 
 in old age, reap it instead of further on, having others benefit by receiving it. In even 
 this class of endowment it must be remembered in the calculation, and we must not 
 lose sight of the fact that they are going to cost more than life insurance payments, 
 and should, therefore, be charged at a different rate. 
 
32 
 
 Now, turning from this phase of the question to that other phase of it, which I 
 cannot feel justified in ignoring in this paper, namely: Can a Fraternal Society safely 
 conduct an endowment business, I am clearly of the opinion that the Fraternal Organi- 
 zation which would keep in spirit and in letter the meaning of the word "Fraternal" 
 in its best sense, cannot safely or otherwise conduct an endowment business, in the 
 usual acceptance of that term. The word "Fraternity" is derived from "Frater," 
 brother, and the word "Fraternity" is defined as a body of men associated for their 
 common interest, business or pleasure a brotherhood. Hence, where the interest of 
 each lies in the misfortune of the other, or his benefits are to be derived from the 
 failure of his brother in his efforts to do his share, there seems to be something an- 
 tagonistic to the true spirit of fraternity. 
 
 On this subject discussion occurred as follows: 
 
 J. A. Hmsey: 
 
 I do not think that Fraternal Societies can transact a perfectly safe Endowment 
 business unless the rates, rules and practice of old-line insurance companies are 
 adopted and followed. What is commonly called Endowment Insurance as carried 
 on by the regular companies is certainly not Life Insurance, except that an agreement 
 is made to pay the stipulated sum before maturity in case of death. Investment for 
 the purpose of accumulating money is probably the only term that can be applied to 
 this feature. The same may be said of the numerous building and loan association 
 .schemes. 
 
 A Society that attaches to its insurance this feature and derives the funds with 
 which to meet matured obligations by assessing the membership must ultimately prove 
 insolvent. It will then be seen that the moneys paid by a number of members have 
 been absorbed by a few. We must therefore assume that when the next policies or 
 another set of certificates mature the increased number and the funds required to 
 cancel them will be correspondingly heavy. 
 
 Mr. Jeffries. 
 
 I do not wish to say anything on the subject, but I understand that there are now 
 in this body members of an association that are, virtually, paying or promising to pay 
 Endowments. Now, I would like to hear the justification from those Societies for 
 that line of action. I understand Brother Boynton is the champion of that line of 
 insurance, and I would like to hear, for one, what he has got to say on the subject. 
 I would like to hear an explanation of their plan, or their proposed plan, rates, etc., 
 because it may very materially affect the membership of this Association. There are 
 other Societies promising the same thing, and if it can be done, we ought to know 
 it, and we ought to hear the other side. I would like to hear from Brother Boynton, 
 or some other representative of some of the Associations that do, or attempt to 
 transact, that line of business. 
 
 Mr. H. H. Morse : 
 
 If we could go back twenty-five years we would find that there have been a great 
 many things in connection with Life Insurance that, from our standpoint, have been 
 re-written, and if this question had been propounded to the Fraternal Societies that 
 existed twenty-five years ago, "Can a Fraternal Society safely pay a death benefit?" 
 the probabilities are that there would have been as many and as able papers read 
 to the contrary as have been read upon this subject here today. But in regard to the 
 main proposition as contained in this question, our friend and brother, Mr. Stevens, 
 who read an able paper a few minutes ago, concisely answered the question. Of 
 course it can be done if a sufficient amount is collected for that purpose. Whether a 
 Fraternal Society should engage in any such undertaking is a mere matter of judg- 
 ment. There are Fraternal Societies of one kind and there are Fraternal Societies of 
 another kind. Fraternal Societies are forming every day, and it does not behoove us 
 to pass judgment in regard to them. It does not devolve upon us to criticize them. 
 If we do not like the kind of Fraternal Societies that are being organized for the 
 purpose of paying endowment benefits, leave them alone. 
 
 It may be that some propositions are ridiculous and foolish. In considering this 
 question we must look at it in the light of putting ourselves in the place of those who 
 are members of these organizations and who believe that results will be beneficial 
 
33 
 
 to them from the management of the Association to which they belong. Some of 
 them may be fraudulent, some of them may be vicious, some of them may be of a 
 different character, but the question I want to deal with particularly is the question 
 as to the payment of a disability benefit or an old age benefit, as it is paid in such 
 reputable organizations as the Knights of Maccabees, the Chosen Friends, and other 
 institutions that have existed in this country for the past ten or twelve years and are 
 successful in carrying on their Fraternal work. There is no reason in the world why 
 we cannot successfully treat a fixed period of life as a maturity of certificate pro- 
 viding we put that period so far in advance as to render all questions as to its being 
 a proper period of time. If a man has lived out the allotted time of three score years 
 and ten, if a man has passed beyond the age of his expectancy, if he contributed from 
 time to time as required for the fund necessary to create and pay the benefits that he 
 is to enjoy, there is no reason why, by the very table that you rely upon for the 
 payment of a simple death benefit, that the same result cannot be reached for the 
 payment of a maturity certificate at 70 or 75 years. 
 
 Mr. Hall: 
 
 I have only a few words to say. There is one question that has not been touched 
 upon the question of endowment or long period payments which I think is of interest 
 for us all to consider. Most of these Fraternities who pay a benefit to members at 
 the expectancy, pay but half of the amount of insurance, and the other half remains 
 to be paid as a death benefit. The value which is paid at the time of expiration or 
 on arriving at the age of expectancy is paid in by the member during the time that 
 he has been a member of the Association, and he continues to pay his assessment until 
 the time of death, so that it does not appear to me that there is an Endowment 
 feature, such as we call the Endowment feature when we speak of it in relation to 
 those short period Endowments. 
 
 Mr. Boynton : 
 
 The great trouble with the speakers who have preceded me is that they are 
 tinctured badly with old line life insurance ideas. I hold that the feature which 
 has been discussed here today as appertaining to the Chosen Friends, the Knights of 
 Maccabees and the other organizations, is not an Endowment feature, and hence don't 
 come in under the objections raised by the members who have discussed this question. 
 We are very apt to use insurance terms in trying to explain our own system. Now, we 
 are not insurance organizations. We do not furnish life insurance. That is we 
 hadn't ought to say so. (Laughter.) Because the moment that you use those terms 
 that moment you place yourselves on the same plan with life insurance companies. 
 We do not claim to be life insurance companies. The difference between the ordinary 
 life insurance company and fraternal organizations is this : one furnishes life insurance 
 at a profit, and we furnish life protection at cost. That is the difference. It is not 
 insurance. Insurance is a commodity. They come into the market and make all they 
 can from it, and we go into the market for mutual protection, and give it to our mem- 
 bers at what it actually costs. There is no question about that. So you see that we 
 get off our base in using such language. There is where the trouble is. We don't 
 want to characterize this 7o-year feature as an Endowment feature at all. Nor do we 
 want to admit that we are furnishing life insurance. If you do, you give yourselves 
 away every time. We are giving protection to the widows and the orphans, and 
 nothing more. We are not only furnishing protection to the widows and the orphans 
 . as protection, but we are furnishing protection to members while living, and when they 
 reach the age of 70 we extend protection still further. We protect them in their old 
 age by giving them certain benefits. Do you- call that Endowment? We give them 
 the money, certainly, but no more than we give the widows the money. You may as 
 well say we are furnishing Endowments for the members when they become physically 
 disabled or reach the age of 70 years. It is not an Endowment at all. And I don't 
 want the members of this Fraternal Congress to get that idea into their heads. If you 
 have got it, get it out as soon as God will let you, and don't allude to it in those 
 terms again. Don't use that expression. I was very much pleased when Brother 
 Shields, who presided over this Congress a year ago, called a member to order when 
 he used the term "life insurance." He said this was not life insurance it is "life protec- 
 tion." And since that time I have never used the term "insurance" or "Endowment" 
 in any discussion I have had in any of the public meetings I have held throughout 
 
34 
 
 the country. I have avoided it, and urged those in these gatherings to drop those 
 terms entirely, and they have done it, and I tell you we are bounding ahead on the 
 Fraternal field with all sails spread. 
 
 That is the reason why I want this Fraternal Congress to open the door to every 
 organization that has that feature in it that provides fraternity and protection to 
 the member after he reaches 70 years of age as well as when he becomes physically 
 disabled. I do not know that I would particularly object to paying at the expectancy 
 of life, but still it is not as good as fraternity as the other features. (Laughter.) It 
 smacks a little of the speculative just a little of the speculative these short-term 
 fellows who pay in two, four, six, seven or eight years, who pay something for 
 nothing. We cannot class them as Fraternities, notwithstanding they have hoisted 
 the Fraternal flag. They are sailing under false colors. They are speculative organi- 
 zations, and every one who goes into these organizations goes in there for the pur- 
 pose of making money, and when you and I join the Knights of Honor, Royal Arca- 
 num or the Ancient Order of United Workmen, we do not go in for speculation. We 
 do not expect to make any profits from membership in these organizations, but we 
 want to provide something for those that we leave behind us, and when we go into 
 the Maccabees, the Chosen Friends and other good organizations, they expect to have 
 something when they become physically disabled or reach the age of 70. 
 
 Mr. Stevens : 
 
 I certainly endorse the doctrine that Brother Boynton has just announced here. 
 I claim that a Fraternal organization can pay a permanent total disability benefit. 
 I claim, as I did in my paper, that it will cost something to do it. It will cost some- 
 thing more to do that than to do the other. I claim that the Order which pays at 
 the age of 70 or 72 or 75, is not paying an Endowment benefit at all to any one. It is 
 simply paying a permanent, total disability claim, and therefore I think it is proper 
 to say that in all I said it had no reference to that principle, because I feel that that 
 is a permanent, total disability payment, and not an Endowment payment. 
 
 W. A. Smith: 
 
 I shall not detain you long in the remarks I have to submit. Do Fraternal Societies 
 make money by lapses? Here is a question that is rather delicate, and, to me, is one 
 of great importance. Old-line insurance companies make their money by lapses. 
 Are we, a Fraternal Society, going to take the ground that we must make our money 
 by lapses? Are we going to take the ground that we must make our money from 
 the unfortunates who are not able to keep up their assessments? That is the point. 
 Is that Fraternity? Is there any Fraternity in it? This feature of Endowment has 
 been referred to, and I believe the brother is right and honest in the conclusions 
 that he has announced, that the Endowment feature will enhance the cost. It cer- 
 tainly will. But what I wanted to say was that the Endowment feature, as it is 
 carried on by the Society to which I belong, pays one-half of the amount at ex- 
 pectancy. When one-half has been paid at the period of expectancy they go on and 
 pay as they have done before, carrying their assessment, and the result will be. if they 
 live a certain number of years, that they in course of time will die. Then the 
 Society is reimbursed from the fact that it has only to pay half the amount. 
 
 Following the discussion a resolution was adopted which instructed the Com- 
 mittee on Legislation to "draft a bill for regulating the business and defining the status 
 of Fraternal Societies, to be submitted to the several Legislatures." 
 
 This discussion of "Endowments" was due to legislative recognition of such con- 
 cerns as the Iron Hall as Fraternal Beneficiary Societies. Failures amongst these 
 "Endowment Fraternities" were anticipated and their methods were bringing into 
 disrepute the Fraternal Orders like the A. O. U. W., Royal Arcanum and others. 
 
 In passing, it may be an item of interest to give the following majority and 
 minority reports from the Committee on Laws and Constitution. After discussion, 
 the Independent Order of Foresters was admitted to membership. The reports 
 follow : 
 
 Your Committee on Legislation, Laws and Constitution, to whom has been re- 
 
35 
 
 ferred the matter of the application of the Independent Order of Foresters, would 
 respectfully report as follows : 
 
 1. That having accorded the representative of said Order a due and proper 
 hearing by your Committee, and after an examination of its Constitution, your 
 Committee found that the Constitution of said Order contained provisions which 
 made it ineligible for membership in this Congress, as it now defines a Fraternal Order 
 in its Constitution. 
 
 2. That your Committee deem it inexpedient and inadvisable to further amend the 
 Constitution of this Congress that it may provide for membership therein of any 
 Order containing any provisions or features of any character other than such as 
 they now have and may have under the definition of a Fraternal Order, and now 
 provided for in the Constitution of the Congress. 
 
 3. That your Committee therefore recommend the Independent Order of Forest- 
 ers be not admitted to membership, because of its ineligibility, and that it has leave 
 to withdraw its application. 
 
 The minority of the Committee on Constitution, Laws and Legislation dissent 
 from the majority and would recommend the adoption of the following amendments 
 to our Constitution and Laws : 
 
 To amend paragraph 4, page 56, as follows : By inserting after "disability," in the 
 sixth line, the following: "Old age (to be not less than 63 years of age, with a 
 minimum duration of membership of nineteen years)." 
 
 Also to amend sub-division 5 by adding the following: "Or upon attainment of 
 old age (not less than 63 years)." 
 
 N. S. BOYNTON, 
 
 M. G. JEFFRIES. 
 S. A. WILL. 
 
 The report of the Committee on Legislation was unanimously adopted, and with 
 that adoption commenced that vigorous and systematic activity which ever afterward 
 has characterized the work of the Congress in shaping legislation in the several 
 States. I quote at length : 
 
 The Committee on Legislation, Laws and Constitution respectfully report that 
 the year 1891, in regard to legislation, proposed and enacted, has been fruitful in sug- 
 gestion and in warning. It has been the legislative year in the large majority of States, 
 and in most of them there has been some action proposed of importance to Fraternal 
 Beneficiary Associations. We have, however, learned one valuable lesson from the 
 experience of the year, even if much which ought to have been done has been omitted. 
 That lesson is the absolute necessity of clothing this Committee with larger powers 
 and placing at their command more adequate financial strength if it is expected that 
 the Congress will secure for the Fraternal system which it represents desirable har- 
 mony of the laws, or prevent the adoption of restrictive and hampering legislation. 
 It is impossible to accomplish by correspondence the best results in either of these 
 directions. The presence of the Committee, or some member of it, at important 
 crises, either for the purpose of attack or defense, is absolutely essential in very 
 many instances. So far as our experience has gone the presence of a representative 
 of this Congress, strengthened by the influence which such representative power 
 gives, has proved effectual and salutary. The Committee has not felt authorized to 
 charge the Congress with expense in this respect. They recommend that their succes- 
 sors be authorized, with the approval of the Executive Committee, or other advisory 
 board, to incur such expense for personal visitation before Legislatures Lnd legislative 
 committees and for correspondence and assistance, as may, from time to time, appear 
 to be necessary and proper for the common protection of our important interests. 
 
 A valuable result of uniformity of legislation will be probably, that we shall obtain 
 in most, if not all the localities, laws applicable to our system alone, and that we 
 shall no longer be associated with other and antagonistic systems in the same bill or 
 Act. The average legislator today is in a woeful condition of ignorance as to what 
 a Fraternal Order includes. In New Hampshire and Rhode Island, and perhaps 
 elsewhere, the members of the Legislatures classed bond companies, endowment or- 
 
36 
 
 ganizations and death benefit paying orders together, and it was in many instances 
 extiemely difficult to convince such members that the same objections did not apply 
 to all alike. The result is the passage in New Hampshire of one Act which includes 
 all of these several kinds of organizations. While we have no criticism to make in 
 this place of our associates in that Act, we do most emphatically declare it to be our 
 wish in all States to have separate legislation for our system. Furthermore, we 
 believe that such legislation in each State should be the authority for the admission 
 therein of all Societies embraced within the terms thereof, and that such admission 
 should not be by license from the Insurance Department or any State officer. It 
 seems abhorrent to our Fraternal sensibility to be compelled to obtain a license to 
 perform our deeds of charity and benevolence. We do not object to a requirement 
 for annual reports, but we do ask that the Legislature shall settle by appropriate 
 language the quesion of admission and not delegate the power to any one man or 
 any body of men. 
 
 The value of harmony and uniformity in State legislation is of no greater impor- 
 tance than the existence of the same qualities in the decisions of the courts in the 
 several States and Provinces. Our Societies ought not to be subjected to the pos- 
 sibility of a successful attack in Massachusetts which would be defeated in Illinois, 
 and, on the other hand, the member, or his beneficiary, should be accorded the same 
 privileges to secure judicial recognition in the one State as the other. 
 
 The Congress should adopt some measures whereby defenses to unjust demands 
 may be so conducted everywhere that all the essential grounds of defense for similar 
 causes of action should be presented, to the end that courts reach a harmony and 
 uniformity of conclusion. If the Congress will clothe our successors, or some other 
 committee, or some of its officers, with power to act as advisory counsellors for the 
 local attorneys of the Societies which compose its membership, we believe that much 
 good will be attained. This proposition does not in the slightest degree disparage 
 the ability of counsel representing our Fraternities. In all cases they may be better 
 lawyers than any who are available for the purpose presented, but the special expe- 
 rience of the less able counsellor may happily supplement the skill and learning of 
 the more able practitioner. 
 
 Brothers, we believe that the time has arrived, in the history of the Congress, 
 when it should formulate and adopt sound methods and measures for the common 
 weal, and carry them into prompt and effective execution. 
 
 We have met in four annual sessions and discussed the feasibility of our undertak- 
 ing for practical work. By patient, earnest and laborious effort the friends of a 
 National Fraternal Congress have succeeded in creating a strong sentiment in favor 
 of its existence. To reach this opinion 'the progress has been exceedingly slow. It 
 has, however, been attained, and we find a satisfactory degree of support from all our 
 leading Fraternities. But the Societies which are here represented expect, now 
 that we have become a strong organization, that we shall do something more than 
 hold annual meetings, however fruitful they may be in cultivating social and friendly 
 relations and in valuable discussions of vital questions. While there are many and 
 varied ways in which the Congress can serve our Orders, none exceed in importance 
 those whic'h pertain to legislation and courts. They expect that we shall proceed 
 to the accomplishment of our legitimate functions and duties. If we will do these 
 things, they will, if we understand aright the prevailing feeling, accord to us all the 
 support, financial and otherwise, necessary for the purpose, and if we fail in this duty, 
 they will withdraw the favors 'hitherto generously granted, and the Congress must 
 disband. 
 
 Your Committee, therefore, in order that the suggestions which they have made 
 and which they deem of vital importance to the prosperity of the cause we so gladly 
 and proudly represent, and for the continued existence of this _ Congress of Fraterni- 
 ties, shall not remain mere propositions, but become operative and useful forces, 
 herewith present certain resolutions, the adoption of which they heartily recommend : 
 
 Resolved. That the action of the Congress in providing for a committee to pre- 
 pare a public Act relative to our Societies, and to press the adoption thereof in the 
 several States and Provinces, be re-affirmed, and that the members of the Standing 
 Committee on Legislation, Laws and Constitution be added to and made ex officio 
 members of that committee. 
 
 Resolved, That the Standing Committee on Legislation, Laws and Constitution be 
 instructed to take all needful and proper steps to ascertain what are the laws of the 
 several States, Provinces, Territories and districts affecting our Societies, and, in 
 
37 
 
 regard thereto, to do whatever may seem to them required for the common protec- 
 tion, if, in their judgment, any efforts are necessary in addition to those which the 
 Special Committee are authorized to perform. 
 
 Resolved, That the Standing Committee on Legislation, Laws and Constitution be 
 instructed and authorized to act as advisory counsellors in any and all suits against 
 our Societies, and that each Society is hereby urged to notify the Committee of all 
 suits against it, the substance of the claims thereby respectively presented, and the 
 name of the attorney conducting the defense, and that the Committee keep a record of 
 such suits and their action in regard thereto. 
 
 Resolved, That the Committee on Legislation, Laws and Constitution be author- 
 ized, upon the previous approval in writing thereof by the President, Vice-President 
 and Chairman of the Finance Committee, to incur such expenses as may be necessary 
 to properly perform their duties. 
 
 Resolved, That, for the purpose of obtaining the necessary funds to carry out the 
 provisions of the resolutions hereinbefore presented, and also for the performance by 
 the Special Committee of its work, the provisions of paragraph 4 of Section 5 of the 
 Constitution and Laws be suspended for the year next ensuing, and that for such year, 
 but not afterward, except by due vote of the Congress therefor, the membership fee 
 for each Society shall be $20.00, and, in addition thereto, the sum. of one mill for each 
 and every one of its members in good standing on the 31 st day of December, 1891. 
 
 JOHN HASKELL BUTLER, 
 J. W. KINSLEY, 
 J. M, SWAIN, 
 M. W, SACKETT, 
 S. A. WILL, 
 JOHN OTTO, 
 F. D. MACBETH, 
 M. G. JEFFRIES, 
 N. S. BOYNTON. 
 
 At this time (1891) the "Open Assessment Associations" were numerous and 
 popular, and the question of distinguishing between them and the Fraternal Bene- 
 ficiary Societies became one of importance. To indicate the thought of the day I 
 quote from a paper read by Mr. D. E. Stevens in discussing "Topic 15" of the pro- 
 gram: 
 
 "How can our laws be so framed as to secure from the courts decisions which 
 will clearly define the difference between the Charitable Aid furnished by the Fra- 
 ternal Orders and the business payments of the Open Assessment Association." 
 
 The word charitable in this question, I take it, is used in its primary and best 
 sense. The question, in the light of the more common meaning of the word char- 
 itable, would probably have been more readily or fully understood if it had read, 
 "How can the Laws of Fraternal Orders be so framed as to secure from the courts 
 decisions such as will clearly recognize the difference between such Orders and Open 
 Assessment Associations?" It appears to me that a comprehensive and proper answer 
 to this question would be, let our laws be so framed and maintained as to clearly 
 show that the aid which we furnish is fraternal or charitable that is, that our corner- 
 stones, as well as the Orders builded thereon, rest upon a foundation of brotherhood. 
 With no word of criticism for the Assessment Company nor any institution which in 
 any manner tends to help men do we come to the consideration of this question. We 
 cannot in justice to the Orders separately consider one feature of their work, even 
 though it be an important one, and especially not the payment of death benefits, for 
 most of the Orders protect the interests of their worthy members against forfeiture 
 during sickness, without compensation or return, aside from the Fraternal feeling or 
 principle. When viewed as a whole, there is a wide difference between a genuine 
 Fraternal Order and an Assessment Company. In fact, although in one particular, 
 that of the payment of death benefits, they may each have a road which leads to the 
 same end, they are as to foundation and structure entirely different. The Company 
 depends upon its army of paid agents to secure new members, while the Order, in 
 exemplification of its principles and the carrying out of its system, depends upon its 
 
38 
 
 anmy of unpaid members to secure new entrants. The Company charges from three 
 to four dollars per thousand per annum for expenses, so as to carry out its plans, 
 while the Order collects from thirty to fifty cents per thousand per annum for expenses 
 to carry out its plans. The difference of from $2.70 to $3.50 per thousand per annum 
 standing for the difference between the business transaction where the labor is paid 
 for and the voluntary, unpaid labor of the members of the brotherhood, who, through 
 their interest in and love for their Order and their fellowmen, .gladly do the work. 
 Are some of our Lodges forgetting this great difference? That cannot change the 
 principle. The Fraternal Order through its Lodge system provides for the visitation 
 of its sick ; helping its own in their time of need, and admits to membership only 
 those who agree to become a part of a great brotherhood, which not only pays benefits 
 to the families of its deceased members, but which inculcates lessons of chanty by 
 doing deeds of charity. The Order constantly appeals to man's better nature, even 
 tending to make him a nobler man and better citizen. 
 
 Such. Orders certainly must watch well against and promptly check the growing 
 disposition to make them Life Insurance Companies, by copying into their laws 1 those 
 features which now distinctly mark the difference between Companies and Orders. 
 To show a difference, there must, in fact, be a difference. When an Order has only 
 the semblance of the Lodge system; when an individual can become a member with- 
 out entering one of its Lodge rooms; when it undertakes to do an endowment or 
 tontine business; when it forgets or forsakes the visitation of its sick, having only 
 the form and none of the spirit of an Order; when: its plans appeal to the selfish 
 side of man ; when new members for its established Lodges are secured through paid 
 agents; when it permits members to name as beneficiaries those who are not of their 
 families, heirs or dependent ones ; when it says -that an insurable interest, growing 
 out of an indebtedness to one of no relation to the member, may be covered by mem- 
 bership in it; when it allows a man who has an insurable interest in his partner to 
 cover that by one of its benefit certificates ; when its members can make their estates, 
 and thereby their creditors, their beneficiaries ; when its benefit certificates hare a 
 surrender value, then I beg to ask how a Court or anyone else is to tell why it should 
 not be called an Insurance Company or Association, and, although it may call itself 
 an Order, it will in no sense be such, nor should it. 
 
 Let the language of our laws clearly express the contract of membership showing 
 that each and all of the members are part of a brotherhood, not for speculation or 
 profit, but to help each other ; making the supreme body of the Order the Court in 
 which all grievances shall be heard and rights determined. Then secure in such 
 States as now have no such laws the passage of laws providing that in such Orders 
 the contract entered into by the members thereof shall govern and be the only guide 
 as to what was intended, and that all of the members shall be governed thereby. 
 Then the Orders which adhere to the foundation principles that underlie all of the 
 genuine Beneficial Orders of America to-day that of a body of men bound together 
 for their common good, each endeavoring to help the other in truly carrying out all 
 that is included in the Lodge system of a true Fraternal Order; admitting to mem- 
 bership those only who enter the portals of their Lodges in the appointed way ; 
 helping its needy, visiting and comforting its sick, burying its dead, furnishing its own 
 members relief if wholly disabled by disease, accident or old age, and to the widow 
 and orphans of its deceased members the means for their sustenance; knowing and 
 raring for its own and their loved ones, and they alone, leaving to other institutions 
 all of the field which has, and forever should, lay outside the lines of a Secret Bene- 
 ficial Order, there is, and will be, a difference, and such a difference as must finally 
 triumph in equity, in law and in popular favor. 
 
 John A. Hinsey's remarks on Topic 15 were as follows: 
 
 This question is one that involves much study. Nearly all of the Fraternal Socie- 
 ties who pay to the beneficiaries of deceased members a death benefit of $1,000 or 
 more will certainly not claim that such contribution is purely a charitable aid ; in 
 fact, many of us are in the insurance field competing with the open assessment asso- 
 ciations and old line companies as well as with all other insurance concerns. 
 
 The organizers of subordinate bodies in their endeavors to obtain membership 
 certainly do not claim that theirs is not an insurance based upon business principles. 
 On the contrary, so far as this insurance itself is concerned, they make that claim 
 
39 
 
 strongly. True, we are not corporate bodies organized for the purpose of gain, and 
 there are no stockholders, directors or other officers receiving large salaries, while 
 with the open assessment associations such is to a great extent the case. We are doing 
 business for mutual aid only, and in doing so the cost in guaranteeing a certain amount 
 of protection has been placed at an absolute minimum figure, while the associations 
 termed by the Congress "open assessment" have no doubt also placed the mortality 
 cost as low as safety will permit, but in addition thereto various factors, such as 
 expense, reserve fund, etc., have been added, which together aggregate a cost much 
 greater than ours. 
 
 The insurance laws of a number of States exempt us as secret Fraternal Societies 
 from compliance with the requirements of open assessment associations and old line 
 companies, and no doubt in a number of cases the decisions of courts have defined 
 clearly the difference, especially in the fact that members of Fraternal Orders agree 
 to abide by the laws, rules and regulations that may be from time to time enacted; 
 that such agreement forms the contract by which they are bound. It has; also been 
 held that the violation of any agreement, or a failure to obey the laws as enacted 
 from time to time, may work a valid forfeiture of all rights, title and interest in the 
 benefit fund. 
 
 However, when the beneficiary of a member seeks to enforce the payment of a 
 contract which, for some apparent good reason, has been refused, the issues assume 
 a legal aspect and must be treated in that manner when presented for judicial decision. 
 Under such circumstances courts would no doubt define us as business institutions 
 and compel the performance of such contract in the same manner as they would if 
 the action had been brought against an open assessment association. 
 
 In 1913 how nearly do Fraternal Beneficiary Societies approach the status of 
 "Open Assessment Associations" of 1891 ? 
 
 The session of 1891 was a memorable one for the number of important questions 
 discussed and plans for action adopted. The subject of "Uniform Blanks" was thor- 
 oughly considered, and the remarks of Mr. J. A. Hinsey should prove of interest : 
 
 I have given the question of reporting to State insurance departments considerable 
 study. There are now a number of different forms in use. For Fraternal Societies 
 I regard the form in use by the insurance department of the State of New York 
 to be the mostj complete of any of the States to which we are now making reports ; 
 and Iowa and Wisconsin have adopted this form almost wholly. The forms of each 
 of the other States to which we are now* reporting are quite different, though in none 
 of them the information desired covered so wide a range. The Nebraska form is, 
 to my mind, the most defective. 
 
 A brief synopsis of the requirements under the New York form is herewith given : 
 
 First. Balance sheet showing cash receipts and disbursements and balance on 
 hand at the end of the year. 
 
 Second. Statement of invested assets. 
 
 Third. Statement of non-invested assets. 
 
 Fourth. Statement of liabilities. 
 
 Fifth. Statement of contingent mortuary assets. 
 
 Sixth. Statement of contingent mortuary liabilities. 
 
 Seventh. Exhibit of certificates or policies, requiring under the separate headings 
 the number of members under one heading and the membership for the State only 
 under another. Following same appears an exhibit of the number of members and 
 the amount of insurance in force under each age (present age being desired). 
 
 Eighth. A number of miscellaneous questions embracing general information 
 regarding the character of the business of the association, its plans, manner of 
 electing officers, etc., then follows: 
 
40 
 
 Ninth. A list of all losses paid during the year, requiring the certificate of policy, 
 number, name, date of payment, etc. 
 
 Tenth. A list of all losses unpaid at end of year. 
 
 Eleventh. An exhibit of assessments made during the year. This statement 
 requires information as to number of assessment, class, date of issue, number of 
 members in force at time of issue, the number actually assessed, the amount of assess- 
 ment, the amount collected and its final disposition ; whether disbursed for death 
 losses or other items. 
 
 Twelfth. A number of schedule forms requiring information as to invested assets 
 of every description, information as to values, incumbrances, etc., being required. 
 
 The Societies represented in the Congress in 1891 were : Ancient Order United 
 Workmen, Knights of Honor, Royal Arcanum, American Legion of Honor, Order of 
 Chosen Friends, 'National Union, Knights of Maccabees, Order of United Friends, 
 Royal Templars of Temperance, Equitable Aid Union, Knights and Ladies of Honor, 
 Improved Order of Heptasophs, Home Circle, Fraternal Mystic Circle, Knights of 
 the Golden Rule, Fraternal Legion, Order of Golden Chain, Order of Mutual Pro- 
 tection, Royal Society of Goodfellows, North Mutual Relief Association, Endow- 
 ment Rank Knights of Pythias, United Order of Pilgrim Fathers, Protected Home 
 Circle, Artisans! Order of Mutual Protection, Legion of the Red Cross, Woodmen of 
 the World, Knights of St. John and Malta, Independent Order of Foresters and the 
 Iowa Legion of Honor. The 28 Orders had about twelve hundred and fifty thousand 
 members. 
 
 This congress, authorized the appointment of a Special Committee to draft a 
 Uniform Bill which was to serve for the years 1892-3 (just 100 years after the first 
 Act of Parliament for the regulation of Friendly Societies, and twenty years after 
 the great Act of 1875). The Bill prepared by this Special Committee has been the 
 model from which others have been written. The men who composed the Committee 
 were: John Haskell Butler, Massachusetts; W. B. Beebe, Connecticut; H. H. Morse, 
 New York; John Otto, New Jersey; M. W. Sackett, Pennsylvania; John B. Treibler, 
 Delaware ; Oliver B. Craig, Maryland ; D. E. Stevens, Ohio ; Frank D. Macbeth, 
 Indiana; Frank N. Gage, Illinois; D. P. Markey, Michigan; John A. Hinsey, Wis- 
 consin; E. R. Hutchins, Iowa; B. F. Wilson, Missouri; W. O. Rodgers, Nebraska; 
 J. W. Kinsley, Montana; B. A. Harlan, District of Columbia; J. A. McGillivray, 
 Ontario; H. C. Sessions, South Dakota; A. R. Savage, Maine. Subsequently there 
 were added to the Committee: M. G. Jeffries, Wisconsin; J. E. Shepard, Massa- 
 chusetts; W. R. Spooner, New York; W. A. Fricke, Wisconsin; M. W. Van Auken, 
 New York; J. J. Acker, New York; W. N. Davenport, Massachusetts. 
 
 At the sixth Annual Session of the National Fraternal Congress, held in Wash- 
 ington, D. C., November 15, 1892, this Special Committee was consolidated with the 
 standing Committee on Legislation, composed of S. A. Will, Julius Swain. N. S. 
 Boynton, W. O. Robson and John A. Hinsey and others already mentioned. 
 
 The Special Committee on the Revision of the Uniform Laws to be entitled, "An 
 Act Regulating Fraternal Beneficiary Societies, Orders or Associations," reported a 
 Bill of fifteen sections, in full, or in substance, as follows : 
 
 Section I. A fraternal beneficiary association is hereby declared to be a corpora- 
 tion, society or voluntary association, formed or organized and carried on for the 
 sole benefit of its members and their beneficiaries, and not for profit. Each associa- 
 tion shall have a lodge system, with ritualistic form of work and representative form 
 of government, and shall make provision for the payment of benefits in case of 
 
41 
 
 sickness, disability or death of its members, subject to their compliance with its con- 
 stitution and laws. The fund from which the payment of such benefits shall be made, 
 and the fund from which the expenses of such association shall be defrayed shall be 
 derived from assessments or dues collected from its members. Payment of death 
 benefits shall be to the families, heirs, blood relatives, affianced husband, affianced wife 
 of, or to persons dependent upon the member. Such associations shall be governed 
 by this Act and shall be exempt from the provisions of insurance laws of this State, 
 aiid no law hereafter passed shall apply to them unless they be expressly designated 
 therein. 
 
 Section 2 provides that all associations then doing business _ in the State, and 
 coming within the description of Section i, may continue such business. 
 
 Section 3 provides that any association coming within the description of Section 
 i, organized in another State or Province, but not then doing business in the State, 
 should be admitted on filing copy of charter, etc., and paying prescribed fees. 
 
 Section 4 provides for an annual report to be filed by March I and giving details 
 of condition under twenty-five items specified in the Bill. The Commissioner is 
 empowered to require any additional information "in relation to its doings or con- 
 dition, or any other matter connected with its transactions relative to the business con- 
 templated by this Act, and such officers of such associations as the Commissioner of 
 Insurance may require shall promptly reply in writing, under oath, to all such 
 inquiries." 
 
 Section 5 provides that the Commissioner of Insurance shall be appointed as 
 attorney to accept service of any legal action. 
 
 Section 6 provides for the issuance of a license. 
 Section 7 provides for incorporation. 
 
 Section 8. Such associations shall not employ paid agents in soliciting or procuring 
 members except in the organizing or building up of subordinate bodies or granting 
 members inducements to procure new members. 
 
 Section 9. No contract with any such association shall be valid when there is a 
 contract, agreement or understanding between the member and the beneficiary that 
 the beneficiary or any person for him shall pay such member's assessments and dues, 
 or either of them. 
 
 Section 10. The money or other benefit, charity, relief or aid to be paid, provided 
 or rendered by any association authorized to do business under this Act shall not 
 be liable to attachment by trustee, garnishee or other process and shall not be seized, 
 taken, appropriated or applied by any legal or equitable process, or by operation of law 
 to pay any debt or liability of a certificate holder or of any beneficiary named in a 
 certificate, or of any person who may have any right thereunder. 
 
 Section n provides for meeting of the legislative bodies in other States or Prov- 
 inces than where incorporated. 
 
 Section 12 provides penalties for false and fraudulent statements. 
 
 Section 13 provides procedure against an association for refusing to make report 
 as required. 
 
 Section 14 provides penalty for acting as officer, agent, or otherwise in violation 
 of the law. 
 
 Section 15 provides for the repeal of laws inconsistent with the Act, and exempting 
 Masons, Odd Fellows and similar Orders from the application of the Act. 
 
 By unanimous consent the Uniform Bill as reported was referred to a Special 
 Committee of five to be edited before being printed and the President (M. G. Jeffries) 
 was appointed as the special representative of the Congress to attend the next Con- 
 vention of Insurance Commissioners and present for their approval the Uniform Bill. 
 
 It was reported to the Congress that contemplated legislation in Canada would 
 prevent Societies of the United States from thereafter securing permission to operate 
 in the Dominion. 
 
42 
 
 Mr. James E. Shepard read a paper on British Friendly Societies which should 
 have had serious consideration and should have served as a lesson to fraternal man- 
 agers. It appears to have made no immediate impression. The concluding paragraph, 
 had it been applied to the Fraternal Orders and heeded, would have saved a world 
 of trouble. It follows : 
 
 There are societies full of erroneous features. The first, and perha'ps the most 
 important, is the inadequacy of the rates of contribution demanded from members. 
 The rates have apparently, in most instances, been calculated not so much after 
 consideration of the value of the risks incurred as with the desire to frame a scale 
 of subscriptions, which, from its liberality, would be likely to become popular. A 
 society will sell for threepence a week benefits that in reality should be rated at 
 sixpence; hence bankruptcy is, sooner or later, inevitable. Nor is the case thus sup- 
 posed by any means extreme or rare. . . . Trusting to the so-called profit from 
 secession (lapses) it is deemed sufficient if the society pays its way, and if the claims 
 for sickness are not more than the total premiums received no margin, or but little, 
 remaining to be invested as a provision for future years. 
 
 I have stated that the general laws for the control of Fraternal Beneficiary Societies 
 were enacted in New York and Massachusetts in 1888. 
 
 The first Uniform Bill, with the sanction of the National Fraternal Congress, 
 became a law in Michigan in 1893, exactly 100 years after the first Act of Parliament 
 in relation to Friendly Societies. 
 
 The provisions of this Uniform Bill are in striking contrast with the utterances 
 heretofore quoted from the proceedings of the Congress. Then it was contended that 
 State legislation was neither necessary nor desirable. At the seventh Session of the 
 Congress at Cincinnati in November, 1893, we have the unanimous adoption of a 
 recommendation to secure the enactment of the Uniform Bill by States having no laws 
 relating to Fraternal Societies. 
 
 During 1893 the States of Michigan, Illinois and New Jersey enacted into law 
 (with some modifications and changes) the Uniform Bill prepared in 1892 by the 
 Committee on Legislation. 
 
 The State of Maine eliminated from its laws the authority of endowment societies 
 to transact business, while New Jersey continued such authority. The Maine law 
 (Section 3, Chapter 234) was otherwise amended. 
 
 A law was enacted in Pennsylvania which was little more than a definition of a 
 Fraternal Society and exemption of such Society from the general insurance laws. 
 An annual statement of the usual form was required. 
 
 The eighth Annual Session of the National Fraternal Congress was held at Buffalo 
 in November, 1894. I quote from President N. S. Boynton's address to show that 
 some leaders were not in sympathy with the progress made after 1890: 
 
 Your President has been, and is now, considered quite radical in some of his 
 views, particularly in regard to the objects and purposes of Fraternal Beneficiary 
 Societies and the necessity for drawing the lines closely between the various systems 
 of life protection, and no doubt some go so far as to say that he is a "crank" in that 
 respect. Well, possibly the appellation is not out of place, and I accept it good 
 naturedly. 
 
 After a trial of two or more years to secure uniform legislation, I have about 
 come to the conclusion that we made a mistake in framing a Uniform Bill which places 
 our Fraternal Beneficiary Societies under the supervision of the insurance departments 
 in the different States. Not that I am adverse to State supervision, but because I 
 think it ought to be done by some official other than the Insurance Commissioner, 
 even if such an office had to be created for that special work. We ought to be 
 
43 
 
 entirely divorced from the speculative, cold business associations. So long as the 
 voluntary beneficial associations are even indirectly associated with the other sys- 
 tems, just so long will they be looked upon as a part and parcel, or at least as an 
 auxiliary, of the old line companies. 
 
 Now, let me draw the lines clearly and distinctly so there can be no mistake. . 
 
 At each session since this Congress was formed the matter of uniform State 
 legislation has been a subject of earnest discussion. While in nearly every State they 
 were exempt from the operations of the insurance laws, it was conceded that they 
 should come under some kind of State supervision as a protection to themselves and 
 prevent our societies from being classed with a large number of so-called fraternal 
 bodies or associations organized for speculative purposes. 
 
 The lines of demarcation between the three systems are clear and distinct and 
 should be kept so in all legislative enactments. 
 
 The objects of these Fraternal Orders or Associations, as incorporated in their 
 fundamental laws, will be found substantially as follows : 
 
 First. To unite fraternally all persons of sound bodily health and good moral 
 character who are socially acceptable, etc. 
 
 Do the insurance and assessment companies provide for this? 
 
 Second. To give all moral and material aid in its power to the members and those 
 dependent upon them. 
 
 Do the two other systems do this ? 
 
 Third. To educate the members socially, morally and intellectually. 
 Do you find this object in the laws of the other systems? 
 
 Fourth. To create a fund for the relief of sick and distressed members, and to 
 care for the living and bury the dead. 
 Do the other systems provide for this? 
 
 Fifth. To establish a benefit fund or funds from which, on satisfactory evidence 
 of the death of a beneficial member of the Order who has complied with all its lawful 
 
 requirements, a sum not exceeding dollars to be paid to the beneficiary 
 
 of such member, as he shall direct, and as the laws of the Order shall provide, and 
 upon the total and permanent disability of a beneficial member, either as a result of 
 disease, accident or old age, who may be in good standing with the Order at the time 
 of the incurrence of such a total and permanent disability, such sum of money and in 
 such manner as may be fixed in the laws of the Order. 
 
 Do the purely business corporations provide for such protection? 
 
 Sixth. To establish a fund or funds to pay such sick, funeral and accident benefits 
 as its laws may provide. 
 
 Do the insurance companies establish such funds? 
 
 The laws of the National Fraternal Congress, representing the legitimate fraternal 
 beneficiary system of this country, define what societies may be represented therein, 
 as follows : 
 
 Now, I hold that the fraternal system is entirely different, separate and distinct 
 from the old line or level premium system and the open business assessment system. 
 Only those societies, corporations or associations organized and carried on for the 
 sole benefit of their members and beneficiaries, not for profit and gain, can be classed 
 as legitimate Fraternal Beneficiary Orders. 
 
 The mutual agreement between the fraternal society and the member is not a policy 
 or contract like that entered into between a life insurance company and its policy- 
 holder. The fraternal societies simply issue a certificate of membership in which the 
 member agrees to comply with all laws, rules and regulations in force at the time he 
 becomes a member, and with all changes in the laws, etc., that may be made during 
 his membership. 
 
 The fraternal beneficiary system makes no contract of insurance with its mem- 
 bers in the common business acceptation of the term "insurance." Nowhere in the 
 objects and purposes or the fundamental laws of the associations composing the 
 national fraternal beneficiary system, or the laws governing the National Fraternal 
 Congress representing this system, can the terms "Policy" or "Insurance" be found. 
 
 As I have said heretofore, and now reiterate, very few of the members and many 
 
44 
 
 of the officers of Fraternal Benefit Societies realize that the great benevolent co- 
 partnerships or associations to which) they belong, simply furnish them pecuniary aid 
 in case of disability arising from sickness, disease, accident or old age, and their 
 families protection or a certain competency in the event of their death. They are not 
 insured nor furnished insurance. 
 
 With this widespread misunderstanding of the objects, aims and purposes of the 
 Fraternal Beneficiary Orders among their officers, members and journals, is it any 
 wonder that our legislators look upon our societies as cold, business corporations, 
 covered by a gauzy fraternal mantle, and will it not account for the difficulty experi- 
 enced heretofore by the Orders through the National Fraternal Congress to secure 
 favorable legislation, both in the State Legislatures and in the United States Congress? 
 
 The forward movement could not be stopped, and President Boynton's rather 
 antagonistic position was not accepted as the true attitude of the majority. This is 
 clearly indicated by the special report of the Committee on Statistics and Good of the 
 Orders to which his address had been referred. And this reference culminated in 
 other special reports by that Committee which have revolutionized the business of 
 Fraternal Beneficiary Societies and resulted in radical legislation in relation to con- 
 tribution rates and valuation. 
 
 In 1894 the Uniform Bill was passed by both houses of the Legislature of Iowa, 
 but was vetoed by the Governor. An unsatisfactory bill was defeated in Maryland. 
 The Congress made some changes in its draft of the Uniform Bill, but not material to 
 its important provisions. 
 
 In 1895 a new draft of the Uniform Bill was submitted to the Congress at its 
 Ninth Annual Session in Toronto. The changes were not of sufficient importance to 
 justify recording in this history of legislation. 
 
 The most important and far-reaching movement ever taken by the Congress had 
 its inception at the Ninth Annual Session in a Special Report submitted by the Com- 
 mittee on Statistics and Good of the Orders, which was incidentally the result of the 
 Committee's report in 1894 on President Boynton's address. This Special Report was 
 of such grave import that it was read and considered in executive session, behind 
 closed doors and without the stenographer. For four hours there was heated dis- 
 cussion and then an adjournment until the following day. After further consideration 
 in executive session the only action was "to continue consideration of the subject 
 matter for the ensuing year and make report to the Congress at its next stated 
 meeting." 
 
 I quote from the Special Report : 
 
 In the beginning of these Orders we proceeded on a theory that we mistakenly 
 and without experience assumed to be an established fact, and it has until lately been 
 accepted as sound, that through the process of additions and lapses a standard of 
 average age could be secured and maintained that should not increase as an Order 
 was longer and longer in business. It has been evident to many that this theory was 
 untenable, and in order to clearly demonstrate that the change in view was demanded 
 of all in interest and could not longer be safely ignored, your committee prepared a 
 special blank for the use of the societies from which the data necessary to the proper 
 understanding of prevailing conditions, that prove the theory unsound, might be readily 
 attainable and will appear in tabular form asi a part of this report. 
 
 Analysis of the table leads to the inevitable conclusion that barring merely the 
 inceptive period of an Order, when conditions more or less abnormal prevail, that there 
 exists a gradual and very general increase in the mortuary rate wholly due to the 
 increasing average of age, or, in other words, the greater maturity of lives. In short, 
 comparing the "Theory" and the "Result," we come to the inevitable conclusion that 
 the one has no relation to the other and that administration based on "Theory" must 
 give place to government by "Fact." 
 
45 
 
 We believe that the existing Fraternal Orders can be perpetuated provided they 
 heed the lesson and the warning that the experience of the past so plainly gives and 
 teaches. 
 
 As the object of this reference was to devise, if possible, a plan of procedure that 
 should be best for all concerned, it is proper to say here that, while the Fraternals 
 proceed on the same general line in prosecution of their work, there are so many 
 different methods of management that a rule applying to one would not apply to 
 another, and an)' general rule must either be modified, and thus in part nullified, to 
 meet the requirements of our variance in administration, or our varying plans must 
 be brought to some common agreement. Here lies the first difficulty. 
 
 It is indispensable to recognize the Law of Mortality as the governing factor. If 
 this be admitted, safety demands, if the Benefit be a fixed sum, that the contribution 
 or rate should be graded to age, or, in other words, to the risk of dying, so as to 
 conform to that Law ; or if the rate of contribution be flat or graded at age at entry 
 to be maintained during life, then Equity demands that the Benefit should be graded 
 proportionally to time of continuance or such other modification made as shall be 
 fair and just in bringing contribution and return to their proper portion. 
 
 The rate fixed for life at the age of entry is common to nearly all the Fraternal 
 Orders. Our experience demonstrates that it is faulty in theory, unsound in practice 
 and should be remedied, and this can be accomplished by increasing the rate with 
 increasing age or by so adjusting the rates as to establish a fund that shall equalize 
 the cost throughout life, or, in other words, establish a Reserve. If with our experi- 
 ence we should institute a new Fraternal Order at the present time, one or the other 
 of these, the law permitting, perhaps more or less modified, but in substance the same, 
 would probably be adopted. In the proposition advanced the elements of "Safety" and 
 "Equity" are separated, and first to be considered is the element of "Safety." 
 
 Loading the rate at age of entry to minimize the cost of advancing years is the 
 Old Line Plan of the reserve. The establishment of such a fund has, until within a 
 year or two, been generally condemned by the Fraternal Orders, not for the reason 
 that it is not of itself good, but that it has been improperly administered and made a 
 means of gravest abuse. 
 
 Properly adjusted to our requirements, it would make protection certain, work 
 wrong to no man and be in the direct line of safety. 
 
 Any table based on this plan must be accurately worked out and grounded on the 
 condition of a fixed annual amount payable by installment, of which a certain per cent, 
 with its increment of interest, will form a reserve fund. This reserve can very safely 
 be largely reduced from the reserve based on the standard tables. It would be 
 subject to this disadvantage that it would go beyond the limit of what Fraternal Orders 
 may do in certain States, and in these States additional legislation would be required. 
 It would undoubtedly bring us more under supervision, would increase the cost of 
 management, require larger contributions in the beginning to the Benefit Fund and 
 lay us open to* the unfounded but plausible objection that we had departed from our 
 original purpose, but, despite these drawbacks, would be right in line with the best 
 interest of every member of every Fraternal Order. 
 
 The step rate might be so modified and arranged by adjusting and increasing each 
 advancing term to age when the rate would become such a burden as to be intol- 
 erable that the accumulations would then take care of the excessive cost of the future. 
 In this way the step rate and reserve plan would be combined and the best, features of 
 each secured. 
 
 In approaching the matter of an equitable rate that should not burden, and yet 
 should make certain, your committee cannot bring to its consideration the scientific 
 skill of the trained actuary, but they venture to present in this line some of the features 
 of the reserve and the effects it will produce based upon varying conditions. The 
 partial tables independently presented are substantially mathematically correct and 
 can be worked out in full with little expenditure of time and effort. Into them enter 
 two elements that cannot be ignored, namely, the natural cost and the increment of 
 interest on the amount paid to the Reserve, the amount contributed to the Reserve 
 being modified to meet some of the many objections brought against it. 
 
 Possibly .further modifications might be made in the direction of smaller cost and 
 greater returns. 
 
 The second clause of the proposition will require but brief consideration. If some 
 
46 
 
 plan is not provided so as to fully provide for the safety of the member, then Equity 
 demands that contribution and return shall be proportionately adjusted. If the rates 
 now paid cannot be raised (and as at present established is not sufficient to provide 
 for the payment of the certificate in full without injustice to other members) there 
 remains but one remedy within our reach, and that is to reduce the promise of per- 
 formance to a just, honorable and true fraternal ratio with contribution. Should this 
 plan be attempted, there is to be considered what is a proper reduction, and as it is a 
 matter of proportion merely that can be readily ascertained, it seems to require no 
 particular demonstration at this time. 
 
 Your Committee have not labored under the delusion that what they might offer 
 would be the best, or that, provided it were the best and most practical, that existing 
 Orders, even if they would, could make the radical changes that the adoption of a new 
 plan would require. 
 
 We are too long established, our number too great, our membership too little 
 instructed and too firmly convinced that the cheapness of the old way will always 
 prevail to be readily changed, and it may not foe rash to intimate that possibly there 
 are some in this body who are but partially convinced of the necessity of any change 
 whatever. 
 
 Your Committee would earnestly urge that whatever change be attempted at any 
 time in the future it shall be one that shall be effective in curing the evil to which it 
 applies and not such a one as merely replaces one ill with another, perhaps in time 
 to be more unendurable than the original. Any change must be reasonable and wise, 
 and if such cannot be brought about, then we should attempt none, for an unwise and 
 defective effort would of itself work very grave injuries. As our formative period 
 has passed, the educational period now succeeding it should be the object of our 
 united efforts, and, when education has sufficiently advanced, then the changes needed 
 will come without shock or jar to the system. The ills now 1 known and appreciated 
 by the few will in the school of experience be fully known to the many, and with 
 adjusted and equalized contribution and return we shall enter upon a phase of exist- 
 ence that shall go as far beyond what we have heretofore done, as what we have here- 
 tofore accomplished is in advance of what we were twenty years ago. What your 
 Committee have attempted is to present certain matters as directing merely along an 
 educational line. 
 
 Is it too much to say that if experience teaches that changes are necessary and 
 such changes are not made because of prejudice, lack of appreciation or an undue 
 sense of security based upon the plausible but untenable theory that what has been 
 will continue to be, then the law of the survival of the fittest will produce its natural 
 and inevitable results? 
 
 The Special Report was signed by J. E. Shepard, D. E. Stevens and H. A. Warner. 
 
 At the Tenth Annual Session of the Congress in Louisville, November, 1896, the 
 Committee on Statistics and Good of the Orders made a second Special Report, which 
 was signed by J. E. Shepard, D. P. Markey, D. E. Stevens, B. F. Nelson, H. A. Warner, 
 F. L. Brown and E. R. Hutchins. 
 
 In this report facts and figures were presented to support the general allegations 
 of the insufficiency of existing contribution rates to provide for promised benefits. 
 I limit quotations to a few excerpts : 
 
 Age can have but one result, and here is found the greatest factor of increased 
 cost. It, in fact, dominates our plan. 
 
 As a chain is only as strong as its weakest part, so may we not say that the 
 strength of the Fraternal System; as a whole is as strong as its weakest part ; and, if 
 so, should not its weakness rather than its strength be considered? 
 
 To some of us already comes a condition which we believe has been brought about 
 by the full and natural effect of what we have endeavored to point out as a menacing 
 danger to us all which might and could have been avoided in great part had we wisely 
 provided against it in the beginning. Your Committee have taken much time in dem- 
 onstrating matters of very easy attainment and common knowledge and now beg to 
 offer for your consideration another and just as potent factor of evil, just as well 
 
47 
 
 known to us all, just as little heeded and entirely in our control, towit, our attempt 
 to outdo to so great an extent every form of insurance or protection heretofore 
 devised ; and, while so attempting, give no heed to maxims of prudence or show any 
 inclination to take advantage of experience of others and in so doing be enabled to 
 shun the evils which came to their knowledge through this same experience that we 
 quote, generally cast aside with contempt. 
 
 Your Committee, in closing, desire to say that they endorse as sound the con- 
 clusions embraced in the Special Report made at Toronto and would supplement it 
 by saying here that, in their opinion, there is no better, and certainly no safer, time 
 to reform our plan than now, if it can be attempted on right lines, for a reform 
 attempted in other than the right direction would be no reform at all and would work 
 a double disaster. 
 
 We have in combination two elements in chief with which we must contend : First 
 An increasing liability because of an ever increasing mortuary rate which may be to 
 a great extent modified and held in check for a longer or shorter time by a large 
 increase in membership and again arises the question, does anyone claim the neces- 
 sary increase can always be maintained ? Second Art improper rate of contribution 
 and return by which the present draws upon the future to an unjustifiable extent. The 
 first is partly, the second wholly, in our control. Neither of these can be entirely 
 remedied by increasing the frequency of assessments or by any method that shall 
 leave the cause unchanged. 
 
 The gross inequality between contribution and return must be properly adjusted. 
 A general move should at once begin to educate all our members to a full realization 
 of the fact that impossibilities, even if labeled "Fraternal," are still "Impossibilities." 
 
 The greatly enhanced liability of the future must in some way be provided for or 
 guarded against in the present. The old member who will be first to protest at any 
 change in his rate must be brought to realize that any change in the right way is in 
 the direct line of his protection first of all. 
 
 In bringing their work to an end your Committee, from the facts and data which 
 have come to them and which they in part have submitted in this report, do unani- 
 mously recommend to this Congress that as the representative of our Fraternal System 
 ir shall declare that it is the imperative duty of the several Orders represented here 
 to make, at the earliest practical date, proper provisions for meeting the inevitable 
 increase in the rate of mortality by an adjustment of rates so that contribution shall 
 be equitably proportioned to the hazard at risk. 
 
 This second Special Report was also considered in executive session and finally 
 referred back to the Committee for further investigation with instruction to make a 
 third report in 1897. On motion of Dr. Oronhyatebeha, the Committee were further 
 instructed "to prepare and present to the next Congress such plans or systems of 
 fraternal beneficiary protection that seem to them best adapted to the establishment 
 of permanent fraternal protection at the lowest possible cost." 
 
 Supplemental to its Special Report the Committee gave the plans upon which the 
 Ancient Order of United Workmen and the National Reserve Association had re- 
 rated, and the plan proposed for the Royal Arcanum to be acted upon in 1897. 
 
 The general statements by the Committee are clear-cut, comprehensive and correct 
 expositions of sound insurance principles, and they are supported by unquestioned facts 
 from the actual experience of Societies which were members of the Congress. The 
 presentation, supplemented by the more direct and concrete reports of 1897 and 1898, 
 convinced those who attended the sessions of the Congress and culminated in the con- 
 struction and publication of the National Fraternal Congress Table of Mortality and 
 contribution rates deduced therefrom. But the educational effect contemplated by the 
 Committee did not materialize in so far as the membership at large were concerned. 
 Besides this there developed serious differences between the officials and managers, 
 even between associate officers in the same Society, and from 1900 to the present 
 writing an almost continual internecine (or maybe more properly fratricidal) warfare 
 
48 
 
 has been waged between officials of different Societies or between officials and mem- 
 bers of the same Societies. But in the midst of this conflict educational progress has 
 been made as will appear in the continuation of this history. 
 
 The Committee on Statutory Legislation reported to the Congress in 1896 that 
 the year had been fruitful in gain to the cause of uniformity in legislation. The 
 Uniform Bill had been enacted into law in Ohio and Iowa, and objectionable bills 
 had been defeated in the State of Maryland and the Province of Quebec. 
 
 The Eleventh Annual Session of the National Fraternal Congress convened in 
 Port Huron, October 15, 1897. This meeting is of particular interest to the student, 
 and I regret that space will not permit the republication of the many valuable papers 
 and reports which were presented and the discussion that followed. 
 
 There was the spirit of reform everywhere, even in the atmosphere. A few 
 adhered to the oldi tenets and sounded a note of warning of the wrath to come, but 
 the Committee on Statistics and Good of the Orders had inaugurated a movement 
 that was not to be checked short of revolution. D. P. Markey, Chairman, immedi- 
 ately the Congress organized for business, offered a resolution for his Committee : 
 
 Resolved, That the incoming President of this Congress be requested to appoint a 
 Special Committee of three to prepare minimum tables of rates upon the level and step 
 rate plans and any modifications of the same which may seem to them desirable and 
 commensurate with safety, and that said Committee report at the next session of 
 this Congress. 
 
 Resolved, That this Committee be authorized to employ actuarial assistance at an 
 expense not to exceed five hundred dollars. 
 
 D. P. MARKEY, Chairman. 
 
 D. E. STEVENS. 
 
 B. F. NELSON. 
 
 DR. H. A. WARNER. 
 
 DR. E. R. HUTCHINS. 
 
 JULIUS M. SWAIN. 
 
 J. G. TATE. 
 
 F. A. DRAPER. 
 
 F. W. SEARS. 
 
 W. T. WALKER. 
 
 Mr. Powers, of Illinois, immediately thereafter presented the following preamble 
 and resoution and asked that it be considered in connection with the pending res- 
 olutions 
 
 WHEREAS, At the last session of this Congress a resolution was unanimously adopted 
 in which it was declared to be the "imperative duty of the several Orders represented 
 here to make, at the earliest practical date, proper provision for meeting the inevitable 
 increase in the rate of mortality by an adjustment of rates so that contribution shall 
 be equitably proportioned to the hazard at risk"; and, 
 
 WHEREAS, The very able report of the Committee on Statistics and all the papers 
 read before this Congress clearly indicate that it is the duty of this Congress to not only 
 reaffirm its declaration of one year ago, but also to urge immediate action by the 
 Societies in the direction of safety and perpetuity; therefore, be it 
 
 Resolved, That it is the sense of this Congress that all of the Societies here rep- 
 resented should immediately adopt such tables of assessments and changes in their 
 laws as will provide ample income to meet both present and future mortuary demands, 
 and a safe plan for investment of such accumulations as will insure the perpetuity of 
 the organization. 
 
 On motion, action upon the above resolutions was postponed for the present in 
 order that they might be printed. 
 
49 
 
 On the following day Past President Spooner proposed substitutes for both reso- 
 lutions, which were adopted, as follows : 
 
 Resolved, That the incoming President of this Congress be requested to appoint a 
 Special Committee of three to prepare tables of rates upon the level premium, the 
 natural premium.' or step rate plan, and the step rate plan with such modifications by 
 applying to a proper extent the principles of a reserve or emergency fund. 
 
 Said Committee shall, so far as possible, secure and present to this Congress a 
 comprehensive statement of the remedial changes which have been, or shall in the 
 ensuing year be, adopted by any Fraternal Order, the object herein sought ,being the 
 securing of such knowledge as shall be of value to this Congress in arriving at definite, 
 safe and sound conclusions. 
 
 WHEREAS, At the last session of the Congress a resolution was unanimously adopted 
 in which it was declared to be the "imperative duty of the several Orders represented 
 here to make, at the earliest practical date, proper provision for meeting the inevitable 
 increase in the rate of mortality by adjustment of rates so that contribution shall be 
 equitably proportioned to the hazard at risk" ; 
 
 Resolved, That this Congress hereby reaffirms its declaration of one year ago. 
 
 John Haskell Butler, Chairman of the Committee on Statutory Legislation, presented 
 a lengthy and comprehensive report, from which I extract the following : 
 
 Substantial gain has been made in extending the -operation of the Uniform Congress 
 Act. 
 
 Our Uniform Law has during the year been adopted in the States of Missouri and 
 Nebraska and by the National Congress as legislation for the District of Columbia. 
 
 Even this progress, by no means satisfying the full measure of the wish and 
 expectation of your Committee, was made only by the most diligent effort and in the 
 face of serious opposing influences. 
 
 In Missouri and the District of Columbia modifications of our Uniform Bill were 
 yielded. 
 
 The following clause was inserted in the Acts adopted : 
 
 "Any such Fraternal Beneficial Association may create, maintain, disburse and apply 
 a reserve or emergency fund in accordance with its Constitution or By-Laws." 
 
 This was done not only because of a demand therefor, which, if refused, might have 
 jeopardized success in obtaining the enactment of the law, but, in vieiv of the possibility, 
 not to say probability, that many of the fraternities noiv associated in the Congress may, 
 in the near future', adopt reserve fund provisions, it seems wise that statutory per- 
 mission therefore should exist. 
 
 The Committee ask that their action in this respect be endorsed, and recommend 
 that the Uniform Bill be amended by adding this same provision to the end of Sec- 
 tion i. 
 
 The Missouri Bill also limits the right of the Commissioner to make inquiries out- 
 side the special questions in the Act, to the statements in the Orders' reports to the 
 department, and we recommend the Uniform Bill be amended accordingly. 
 
 Although the field to which this particular statute is applicable is not extensive, 
 it is believed that the fact that it was thus favorably regarded by the law-makers in 
 the National Congress, representing all the States, would very materially assist in 
 gaining for us recognition in those States where we are yet seeking legislation. 
 
 In the State of New York some vicious attempts were defeated and a good amend- 
 ment secured. 
 
 In Wisconsin the Insurance Codification prepared by the Commissioner and a 
 special commission appointed for the purpose, in its application to our system was so 
 objectionable to fraternal interests that all who examined it must have deeply felt that 
 it must not become law. 
 
 Not to speak of all its features, that it should have grouped all classes of com- 
 panies furnishing protection on the assessment plan within the same general pro- 
 visions, was sufficient to condemn it. 
 
 We have been and should continue to be tenacious, of having all laws govern- 
 
50 
 
 ing fraternals embraced in one Act. There will then be no fear of the unexpected 
 application of adverse requirements. 
 
 Notwithstanding the appeals to the Commissioner to endorse our Uniform Bill, 
 he held rigidly to his own ideas, and pushed them with zeal and ability. It became 
 necessary to resist with vigor. The value of combined effort and the solidifying in- 
 fluence of the association of fraternities in this Congress has never been so grandly 
 displayed as in the defeat of this measure. 
 
 Colorado is another State wherein a hostile attack was made. A measure was 
 introduced, designed, among other details, to require a deposit of money by the Orders 
 doing business there. A splendid rally was made and the proposition met, as it de- 
 served, ignominious failure. 
 
 The legislation in the Province of Quebec remains unchanged. The Provincial 
 authorities are not inclined to insist upon compliance with its provsions. They are 
 investigating the subject of legislation adapted to the fraternal system with care. 
 It is believed that before the authorities decide upon any further recommendations, 
 ample opportunity will be accorded us to present our views. 
 
 The Congress Bill was introduced in Kansas, and little doubt was entertained that 
 it would pass. A notion obtained, however, among the legislators that only repre- 
 sentatives should legislate in our governing bodies, and that life membership and the 
 conservative and preservative power of the official boards was injurious. It was the 
 opinion of those in charge of the bill that an attempt to carry it would result in having 
 it so amended. It was therefore wisely abandoned. 
 
 The legislation in New Jersey was not important as affecting our class of asso- 
 ciations. 
 
 Adverse legislation was offered in Texas, North Carolina and California and 
 defeated. 
 
 Thus we have given a resume of the achievements during the legisative session 
 of 1897. 
 
 There is much to encourage us in continuing to press the Uniform Bill. 
 
 The paper prepared for distribution among the Representatives and Senators in 
 Congress by Past President Boynton, presented as a brief to the committees here- 
 after named, is a most able and convincing argument for our cause and the Uniform 
 Bill. It served the purpose nobly. The committee annex the paper to this report, 
 together with the reports of the committees of the House and Senate on the District 
 of Columbia, to each of which it was attached, with the purpose of having it forever 
 preserved in the records of the National Fraternal Congress. 
 
 The Uniform Bill, as it now stands, with the provision relative to a reserve fund, 
 hereinbefore recommended, is as satisfactory as we can perhaps make it. We shall, 
 most probably, as our system and our experience in its development increases, wish to 
 change or improve some of its provisions. 
 
 The insurance departments are not hostile to our fraternal efforts. The belief 
 probably prevails in many of them that our plan of protection has defects. It is our 
 conviction that any efforts which we may make to strengthen our methods will be 
 encouraged and not retarded. It is not therefore wise to ask for any more than is 
 essential, and the better policy will be to endeavor to create, rather than diminish, a 
 feeling of mutual confidence between our Orders and .the departments of insurance 
 throughout the country. 
 
 Not only for its forceful enunciations, but as a tribute to the memory of Major 
 N. S. Boynton, I quote liberally from his "Brief submitted to the House Committee 
 on the District of Columbia," to which reference is made by Chairman Butler: 
 
 Gentlemen : I desire to submit to the committee some of the reasons why the 
 representatives of the Fraternal Beneficiary Societies of this country ask the pas- 
 sage of the bill entitled "A bill regulating Fraternal Beneficiary Societies, Orders or 
 Associations in the District of Columbia." I would first call your attention to the 
 fact that in 1886 a body was formed in Washington, D. C, and named the National 
 Fraternal Congress. It was composed of representatives from the leading legitimate 
 Fraternal Societies. One of the principal objects of the Fraternal Congress was to 
 secure uniform legislation throughout the country for their protection, such legisla- 
 tion to be so framed as to protect the people from fake associations which were being 
 organized in almost every State in the Union. 
 
51 
 
 Up to 1893 every Association claiming to be fraternal and working under the 
 lodge system were exempt from the operations of the insurance laws of most of the 
 States; hence hundreds of speculative Societies were formed. This the National Fra- 
 ternal Congress sought to prevent, and has prevented by securing the adoption in a 
 number of States of the Uniform Bill, which is presented to you for your consid- 
 eration. 
 
 The legitimate Orders and Associations are willing and desirous, through the 
 legislation proposed, to come under the supervision of the constituted authorities 
 of the District of Columbia. 
 
 To make clearer, if possible, the reasons why the fraternal beneficiary system asks 
 this special legislation, if it may be so termed, I submit the following: 
 
 In this country we find three separate and distinct systems of life protection as 
 follows : 
 
 A. The "old line insurance or level premium system," with its endowment, ton- 
 tine and semi-tontine features. The contract between the company and the insured is 
 called a policy. Profit and gain is the controlling object. In every State laws are 
 found on the" statute books providing for their incorporation and governing their 
 operations. 
 
 B. The "open business assessment system." The contract between the association 
 and the insured with some is called a policy, with others a certificate. This system 
 has no fraternal bond to cement it together. The associations comprising this system 
 are purely business concerns, without a representative form of government, generally 
 close corporations. In every State laws are found upon the statute books providing 
 for their incorporation and supervision. 
 
 C. The "fraternal beneficiary system" is composed of societies with a representa- 
 tive form of government, with subordinate lodges and ritualistic work, furnishing 
 financial assistance to living members in sickness or destitution, providng for the 
 payment of its living members benefits in the case of total physical disability, arising 
 from sickness or old age, and providing death benefits in the event of the death of 
 a member for his family or dependent blood relatives. 
 
 The lines of demarcation between these three systems are clear and distinct, and 
 should be kept so in all legislative enactments. 
 
 The objects of these Fraternal Orders or Associations, as incorporated in their 
 fundamental laws, will be found substantially as follows : 
 
 Now I hold that the fraternal system is entirely different, separate and distinct 
 from the old line or level premium system and the open business assessment system. 
 Only those Societies, corporations or associations organized and carried on for the 
 sole benefit of their members and beneficiaries, not for profit and gain, can be classed 
 as legitimate fraternal beneficiary orders. 
 
 The mutual agreement between the Fraternal Society and the member is not a 
 policy or contract like that entered into between a life insurance company and its 
 policy-holder. 
 
 These beneficiary orders are cooperative bodies. The members mutually agree 
 among themselves, through the laws of the order, enacted by their chosen repre- 
 sentatives in the Grand or Supreme bodies, to protect each other and their families 
 and dependents in case of sickness, disability or death by contributing a certain amount 
 from time to time as required to provide for the payment of the sum specified in the 
 certificate, or what one contribution would bring on the membership. No term en- 
 dowment, tontine or any other form of speculative certificates are issued, neither can 
 a certificate within the objects and purposes of a legitimate beneficiary order be made 
 payable to the estate or the creditors of the member, nor can it be used as collateral 
 for a loan to secure a creditor. 
 
 Hence it will be seen that the fraternal beneficiary system is purely cooperative, 
 non-speculative and mutual. These associations cannot be called insurance companies. 
 They do not furnish purely life insurance, nor can they be classed with the open busi- 
 ness assessment associations. There is nothing in common between the fraternal sys- 
 tem and the other two systems. 
 
 A few years ago another system was inaugurated with lodges and ritualistic work. 
 The associations composing this system are known as endowment orders. Their ob- 
 jects are purely speculative to benefit the living, healthy member. In some cases they 
 provide for sick benefits, but the real purpose is to give the living, persistent-paying 
 member, at a certain time, the amount of money his certificate calls for. 
 
52 
 
 A great many who do not understand thoroughly the objects and purposes of the 
 fraternal beneficiary system have confounded it with the open business assessment 
 system, when, in fact, there is nothing in common between the two. They have also, 
 unintentionally, of course, classed the endowment associations with the fraternal sys- 
 tem, when the facts are that the former have not from their inception ever been recog- 
 nized by the latter. They have been denied representation in the National Fraternal 
 Congress because their objects and purposes were foreign to the system which that 
 body represents. 
 
 There should be no friction between the old line insurance system, the open business 
 assessment system, the endowment system and the fraternal beneficiary system. The 
 business of the other systems has not suffered by reason of the fraternal beneficiary 
 orders. On the contrary, the business of the old line companies, as shown by their 
 annual reports, has increased more rapidly since the advent of the fraternal societies 
 than ever before. 
 
 The reason for this is simply because the fraternal beneficiary societies are pio- 
 neers and educators. Tens of thousands of men and women join them and secure 
 protection for those dependent upon them who could not afford to pav the cost of 
 life insurance. They attend lodge meetings, discuss the principles of life protection, 
 get interested in the proceedings of the lodge, see the benefits which their own dis- 
 abled members and the widows, orphans and dependents of deceased members receive 
 by reason ot such membership, and also become thoroughly familiar with all the de- 
 tails of the business part of such organizations. 
 
 Men in this country, where wealth frequently changes hands, do not always remain 
 poor or even in moderate circumstances. The wheel of fortune frequently brings 
 them to the top, and then they can afford to purchase life insurance from the old line 
 companies at the higher price. 
 
 They cannot get it in blocks of ten, twenty, fifty or one hundred thousand dollars 
 from the fraternal societies, but having been thoroughly educated in the lodge room 
 to realize the value of life protection, the old line life insurance agent can secure an 
 application from them for a large amount of either ordinary life insurance or endow- 
 ment insurance much easier than if they had never been members of a fraternal 
 society. 
 
 As poverty is said to be the mother of crime, w^e believe that the protection thrown 
 around American homes by the fraternal beneficiary system, now so strong in our 
 country, has been instrumental in reducing crime. It certainly has reduced pauperism. 
 Members of these orders do not become applicants for public charity. The fraternal 
 ties that bind them together guarantee financial assistance in time of need. 
 
 As the fraternal beneficiary system has grown to be a power for good in our 
 country, its friends and promoters believe that favorable legislation should be given it. 
 
 The uniform bill which has been submitted to you for consideration has been pre- 
 pared by some of the best legal talent in the country, and after several years^ careful 
 consideration by the National Fraternal Congress itself. We feel that you will, after 
 a thorough investigation, be convinced that it ought to pass and become a law in the 
 District of Columbia. 
 
 It has been adopted by Michigan, Illinois, Iowa, and in New York, Massachusetts, 
 Wisconsin, Minnesota and several other States with some minor changes. Our simple 
 desire is to secure uniformity of stautory legislation throughout the United States. 
 
 No man connected with the Fraternal System possessed greater power in logical 
 argument or more personal magnetism than Major N. S. Boynton. No man con- 
 nected with the System had the influence in impressing upon the members of Fraternal 
 Beneficiary Societies, and the public at large, including legislators, judges and in- 
 surance commissioners, his personal convictions concerning the distinguishing dif- 
 ferences between what he was pleased to call 'The Three Systems of Life Protec- 
 tion." The imprint of his thought is found in the reports of committees to the Con- 
 gress, in legisative enactments and in decisions of courts of last resort. 
 
 Major Boynton was no less a master in ridicule and satire than in forceful argu- 
 ment, as the writer has good cause to know. 
 
 How unfortunate that this great and good man planted seeds which produced 
 thorns and thistles ! Not until he had sown broadcast and grown a great harvest of 
 
53 
 
 erroneous ideas did he realize the untoward work that he had done! Well do I re- 
 member that night in Luddington, ten years later, when I had been furnished a cot 
 in his bedroom that we might "lay at our ease for an undisturbed conference concern- 
 ing the coming conflict with the boys on the morrow !" For years he had been my 
 severest critic, but now by telegram he had summoned me to come to his aid in 
 steering the old ship into a new channel. That night he opened up his heart to me 
 and whatever of unfriendly feeling that I had ever entertained melted into regard 
 and sympathy. He regretted his age because he could not start afresh in the reforma- 
 tions that he clearly recognized as of pressing necessity. He encouraged me to con- 
 tinue to do my utmost in undoing what he had done. He may have likewise un- 
 bosomed himself to others, but not to my knowledge. His change of opinion appeared 
 complete and he largely credited the change to the recent progressive position taken 
 by Mrs. Francis E. Burns and her asociates in pressing reforms upon the Ladies of 
 the Modern Maccabees. He said that it was Mrs. Burns who first caused him to stop 
 and think of the serious situation into which he had brought the Knights. With all 
 of his positive assertions and all of his dogmas publicly proclaimed and generally 
 accepted, Major Boynton failed to comprehend the fundamental principles underlying 
 mutual insurance protection until near the close of his brilliant career. For many 
 years he labored under the conviction that the payment of $1,000 as a "benefit" was 
 different from $1,000 paid as "indemnity," and that the business method to assure 
 the certain payment of the indemnity was not necessary to guarantee the benefit. This 
 conviction resulted from his original conception (for he was one of the Fathers of 
 Fraternity) of the "Benefit" as a "Charity" or "Benevolence," and his belief that the 
 hearts of the people would continuously and forever move them to make "donations" 
 to satisfy the demands of Charity. He had a sad awakening to the reality that "cold 
 business plans" were required to make possible of performance the promise to pay a 
 designated sum of money, whether or not it be called a "Benefit" or "Indemnity." 
 
 "Experience teaches a dear school," and Major Boynton and many others would 
 learn in no other. 
 
 The Constitution and Laws of the Congress were amended to conform to the text 
 of the Uniform Bill, declaration 4 being as follows : 
 
 Fourth. No fraternal society, order or association shall be entitled to repre- 
 sentation in this Congress unless such society, order or association be formed or or- 
 ganized and carried on for the sole benefit of its members and their beneficiaries, and 
 not for profit, having a lodge system, with ritualistic form of work and representative 
 form of government, and making provision for the payment of benefits in case of 
 death (with provision, if its "laws so provide, for the payments of benefits in case of 
 sickness, temporary or physical disability, either as the result of disease, accident or 
 old age, provided the period in life at which payment of disability benefits on account 
 of old age commences shall not be under seventy years), the fund for the payment of 
 such benefits and the expenses of such association being derived from assessments or 
 dues collected from its members, and death benefits payable to the families, heirs, 
 blood relatives, affianced husband, or affianced wife of or persons dependent on the 
 member ; these principles being an obligated duty on all the members, to be discharged 
 without compensation or pecuniary reward, the general membership attending to the 
 general .business of the order, and a fraternal interest in the welfare of each other a 
 duty taught, recognized and practiced as the motive and bond of organization. 
 
 The Twelfth Annual Session of the National Fraternal Congress was held in 
 Baltimore, November 15, 1898, and is memorable from the report of the "Committee 
 on Rates" submitting a "Table of Mortality" and contribution rates deduced there- 
 from. This committee was composed of H. C. Sessions, Chairman; F. A. Draper and 
 D. P. Markey. President James E. Shepard was a member ex officio. The Mortality 
 
54 
 
 Table (modified as hereafter explained) is now widely known as the "National Fra- 
 ternal Congress Table of Mortality," and has been made by many States a standard 
 for valuation as well as for minimum contribution rates. Concerning the Mortality 
 Table the committee said: 
 
 The Mortality Table hereinafter presented reflects the judgment of the committee, 
 based as it is upon actual deaths, as being as low as possible, keeping in view safety 
 and the minimum number of assessments contemplated by the table of rates. 
 
 The mass of data from which this Mortality Table is adjusted is so extensive that 
 the conclusions reached have ample support as to its sufficiency. It can be applied to 
 new business and old business at attained ages, when the latter is in good physical 
 condition. Should such old business be below the average, then such impairment 
 must be provided for by an addition to the rate of the table. 
 
 The Mortality Table as reported and published in 1898 had a defect due to arith- 
 metical errors in the derivation of the columns of living 1 and dying from the column 
 of the probabilities of dying. There was also an abruptness of gradation at ages 44-45, 
 which needed adjustment. I had no part in the construction of the original table, but 
 I did present to the Chairman of the committee a regraduation of the probabilities of 
 dying for ages above 40, which changed the number living and dying above age 44, 
 and ended the Table at age 98 instead of age 99. This suggested change was adopted 
 by the committee as the reconstructed Table (above age 40) reported to the Congress 
 in 1899, and this is the one now known and accepted as the National Fraternal Con- 
 gress Table of Mortality and which appears in this book. The committee submitted 
 tables of contribution rates on the "Level Rate Plan," the "Step Rate Plan" and the 
 "Modified Step Rate Plan." These several "Plans," with explanations by the com- 
 mittee, follow : 
 
 LEVEL RATES. 
 
 This table shows the lowest rates that can be deduced from the Mortality Table 
 above. The full amount must be collected annually, and the portion not used to pro- 
 vide for current mortality must be invested at 4 per cent interest. The annual rate is 
 calculated on the basis that the full amount is paid at the beginning of the year. The 
 monthly rates are increased slightly to provide for the loss of interest due to that 
 method of payment and the slightly less amount contributed by dying members. 
 
 Age. Annual. Monthly. 
 
 $10.62 $ .93 
 
 10.92 .96 
 
 11.24 .98 
 
 11.57 i.oi 
 
 11.92 1.04 
 
 12.28 1.07 
 
 12.67 i. n 
 
 13.08 1.14 
 
 13.51 1.18 
 
 13.96 1.22 
 
 1443 L26 
 
 14.94 L3I 
 
 1547 1-35 
 
 16.03 1.40 
 
 16.62 1.45 
 
 17-24 I-5I 
 
 17.90 1.57 
 
 1 8.60 1.63 
 
 19.34 1.69 
 
 20.11 1.76 
 
 21 
 22 
 23 
 24 
 25 
 26 
 27 
 28 
 29 
 30 
 31 
 32 
 
 33 
 34 
 35 
 36 
 37 
 38 
 39 
 40 
 
 Age. 
 
 4i 
 42 
 
 43 
 
 44 
 45 
 46 
 47 
 48 
 49 
 50 
 5i 
 52 
 53 
 54 
 55 
 56 
 57 
 58 
 59 
 60 
 
 Annual. 
 
 Monthly. 
 
 $20.93 
 
 $1.83 
 
 21.80 
 
 1.91 
 
 22.72 
 
 1.99 
 
 23-69 
 
 2.07 
 
 24.72 
 
 2.16 
 
 25.81 
 
 2.25 
 
 26.91* 
 
 2-35 
 
 28.20 
 
 2-45 
 
 29-5I 
 
 2.58 
 
 30.98* 
 
 2.71 
 
 32.39 
 
 2.83 
 
 33-97 
 
 2-97 
 
 36.65 
 
 3-12. 
 
 37-45 
 
 3-28 
 
 39.36 
 
 344 
 
 41.41 
 
 3-62 
 
 43-60 
 
 3-88 
 
 45.94 
 
 4.02 
 
 48.45 
 
 4-24 
 
 5I.I3 
 
 4-47 
 
 *Should be $26.97 and $30.90. 
 
55 
 
 STEP RATES AND MODIFICATIONS. 
 
 Column i gives the age groups. Column 2 gives the annual rates for the natural 
 step-rate to age 61, and level rate from that age for the balance of life. Column 3, 
 the monthly rates, as derived from the annual rates with allowance for slight loss due 
 to the method of payment. These two columns are the basis for calculating columns 
 4 and 5. Column 4 shows a modification of the natural step-rate by means of an 
 accumulation of 15 cents per month, which is used to reduce the level cost from age 
 61 to $3.00 per month. Column 5, a similar modification, but with an accumulation 
 of 30 cents per month, and a level cost from age 61 to $2.50 per month. Under either 
 of these plans all members pay the same rates at the same attaind ages. The purpose 
 in view in these tables is to have a plan that requires but little detail in its operation, 
 so as to be readily comprehended by the officers of the local lodges. 
 
 12 34 5 
 
 Ages. Annual. Monthly. Monthly. Monthly. 
 
 21-25 $ 5.11 $ .45 $ -60 $ .75 
 
 26-30 5.40 .48 .63 .78 
 
 31-35 5-93 -52 .67 .82 
 
 36-40 6.71 .59 -74 .89 
 
 41-45 8.14 .72 .87 1.02 
 
 46-50 10.25 .OX) I.O5 1.20 
 
 51-55 13.82 1. 21 1.36 I.5I 
 
 56-60 19.60 1.72 1.87 2.02 
 
 61 54-01 4-73 3-00 2.50 
 
 ACCUMULATION TABLE. 
 
 The step-rate plan, as shown in Column 2, Table, can be modified to meet the 
 necessities of different societies by varying the amount of the accumulation. The 
 following table is submitted as a basic table for that purpose. It shows how an accu- 
 mulation of $1.00 per annum, paid in monthly installments, may be used to reduce the 
 level cost after age 61, from the level rate of $54.01. The table shows the amount 
 of such reduction, based on age at entry, giving to each member the full benefit of the 
 term of membership. Thus the member entering at 21 would secure an annual reduc- 
 tion of $11.61, giving an annual cost from age 61 of $42.40. The member entering at 
 36 would secure a reduction of $4.71, giving annual cost from age 61 of $49.30. The 
 adjustment of annual cost after age 61 would only have to be made when the mem- 
 bers reach age 61, the rates being the same for same attained ages from 21 to 60. 
 
 With this table as a basis, the annual accumulation necessary to secure greater 
 reductions can be calculated. If the accumulation was $2.00 per annum, the reduc- 
 tion would be twice that of the table, and so in proportion for any other amount 
 of accumulation : 
 
 At age 61 the level rate is 54.01. 
 
 At each age at entry $1.00 per year additional to natural step-rate paid as a special 
 accumulation will give the following annual reduction from age 61. 
 
 Age. Reduction. Age. Reduction. Age. Reduction. 
 
 21 $11.61 31 $6.52 41 $3.28 
 
 22 11.00 32 6.13 42 3.03 
 
 23 10.41 33 5-75 43. 2.79 
 
 24 9-85 34 5-39 44 2.55 
 
 25 9-30 35 5-04 45 2.33 
 
 26 8.80 36 4.71 46 2.13 
 
 27 8.30 37 4.40 47 1.93 
 
 28 7.82 38 4.10 48 1.74 
 
 29 7.36 39 ' 3.81 49 1.56 
 
 30 6.93 40 3-53 50 1.39 
 
 The Table of Level Rates, as published in the proceedings of the Congress for 
 1898, 1899 an d 1900, and produced above, have been copied widely, and are found in 
 1913 editions of publications issued by the Fraternal Monitor and the American Service 
 Union, and in the constitution and laws of several Fraternal Orders. 
 
56 
 
 It is unfortunate that the monthly rates are not accurate for ages above 45, having 
 been obtained by the approximate method of multiplying the annual rate by the frac- 
 tion .0875. 
 
 The annual rates do not vary more than one cent from the correct rates, excepting 
 at ages 47 and 50, where the rates should be $26.97 and $30.90 instead of $26.91 and 
 $30.98 respectively, as printed in the three reports for 1898, 1899 and 1900. 
 
 The correct annual and monthly level contribution rates appear amongst the tables 
 in this book. 
 
 It is also unfortunate that the committee failed to state in the explanation that the 
 level rates were net and intended to provide for $1.000 death benefit only, payable at 
 death in one sum, and that contributions continued until death. 
 
 One Society adopted them as gross rates, while another adopted them with the 
 provision that the contributions would cease at age 70. A third adopted them to 
 provide for $1,000 payable in one sum at death, or $1,000 payable in ten equal annual 
 installments in event of permanent total disability, or $1,000 payable in ten equal annual 
 instalments as an old age benefit, the first instalment being due and payable at age 70. 
 The officials of the three societies were surprised when informed that the rates were 
 inadequate for the benefits promised. They had "taken them from the Proceedings of 
 the National Fraternal Congress." 
 
 The Congress of 1898 referred the Mortality Table and the Table of Rates to the 
 succeeding session. 
 
 In 1899, at Chicago, the Special Committee on Rates, H. C. Sessions, D. P. Markey 
 and James E. Shepard, again reported the Mortality Table (regraded and adjusted 
 as heretofore stated) and the Rate Tables. Following paragraphs are taken from 
 the report : 
 
 The committee has, during the past year,- spent much time and study upon the 
 question submitted to it by the Congress. It has had opportunities for extending its 
 research somewhat, as new data have been compiled of the actual experience of th: 
 fraternal orders, members of this Congress, which were not available one year ago. 
 After a careful and painstaking investigation of both the old and new data, nothing 
 has been disclosed that would lead the committee to alter the mortality table sub- 
 mitted as a standard or guide for this Congress in determining the probable mortality 
 to be expected from any order under normal conditions. 
 
 The committee desires to say that the net level rates and the step-rate plans four 
 and five submitted in its report of last year were submitted not as rates or plans to be 
 adopted by the Congress, but in compliance with the direction of the Congress to 
 submit net level rates and a step-rate plan based upon the mortality table. The mor- 
 tality table could be adopted as a standard 1 of mortality without adopting either plan 
 of rates submitted, or without giving its preference for either a reserve or a step- 
 rate plan, or the particular rates submitted by the committee, which were substituted 
 as illustrations of both systems. 
 
 There are several level premium plans, also several different modifications of the 
 natural premium or step-rate plan already in use by different orders, members of this 
 Congress, but with no recognized standard by which the officers of either plan may 
 try them for the purpose of determining the sufficiency of their rates, which can only 
 be measured accurately by means of a mortality table. 
 
 The only recognized standards in this country are the Actuaries, and the American 
 experience tables of mortality. The Congress, imbued with a belief that both the 
 above tables were higher than the actual experience of selected lives would disclose, 
 appointed this committee to investigate and report a mortality table based upon the 
 average experience o the fraternal orders, and the same was embodied in its report 
 one year ago and was considerably less in all ages below the age of 76 than either 
 of the above tables. 
 
 In constructing the mortality table submitted to the Congress it was the aim of 
 the committee to reflect as near as possible the actual death experience to be ex- 
 pected of each age under normal conditions of selection, and thus furnish an accurate 
 standard from which rates might be constructed with safety, or by which an order 
 already in existence might adjust its rates if it so desired. It is a well-known fact 
 to the committee that the death experience of different orders vary from the standard 
 submitted. Many seem to have had a more favorable experience, while others may 
 have encountered a higher death experience than the table submitted. The fact that 
 some orders have, in the past, encountered a higher death experience than the table 
 ^.oes not prove that the table is too low, but rather that the high death rate in them 
 
57 
 
 is due to fault of plan or management, or both, and the experience of such orders may 
 be safely classed as exceptional, rather than as establishing a general law by which all 
 orders should be governed. It would hardly be correct to conclude that because sixteen 
 old line life companies had failed to each one that is still doing business in this country, 
 that their failure was due to the mortality table upon which their rates were based 
 being too low. 
 
 Neither is it safe to conclude that the mortality table submitted by this committee 
 is too high, if it is found that the death experience of a majority of the orders' mem- 
 bers composing the Congress have so far shown a lower experience than the table 
 indicates. It will be found upon examination of such orders that during their early 
 years of history there has been a continual growth, and each will be found with a 
 much larger percentage of membership still within the limit of the benefit of careful 
 medical selection in proportion to total membership, than such orders will be able 
 to maintain with a continually increasing membership. With a small membership 
 a 25 per cent increase is easily obtainable, but with a large membership the per cent is 
 more likely to fall below 10 per cent. 
 
 As it is impossible to measure in advance the amount of new business that any 
 order is likely to secure, it will be readily seen that the factor of new business and the 
 modifications the presence of such new business will have upon current death rate 
 of both old and new members as one group or mass must be eliminated from the 
 mortality table. It is a well-known fact that the per cent of new business varies in 
 most of the orders each year and the per cent varies as between the various orders 
 each year. 
 
 There is a point of measurement of the actual mortality of the orders, common 
 to each, and the aim of the committee has been to' submit a table of mortality that 
 would give, as near as possible, the actual death experience to be expected at each 
 age of members who have been such a sufficient time to be removed from the benefit 
 of medical selection. The committee having reached the conclusions above expressed, 
 its aim will be to explain to the Congress the mortality table and the different tables 
 of rates submitted. 
 
 Your committee would suggest as the first and important question in this connec- 
 tion : Is it desirable for the Congress to adopt a standard? If for no other purpose 
 is it not desirable that the different orders, members of this Congress, which desire 
 to place their business upon a safe and permanent basis, should have a standard by 
 which to measure the past and future experience, and, if necessary for safety, conform 
 to that which is required? This latter reason should, it seems to your committee, 
 be sufficient to require of the Congress a safe and reliable standard. 
 
 Then, again, does not this danger confront all of the fraternal orders? If the 
 Congress fails to adopt a standard, do we not leave the door open, and thereby invite 
 the several insurance departments in different States to fix a standard for the orders, 
 as has already been done in the Province of Ontario, which law went into force 
 June 30, 1898? 
 
 The death rate in the lower ages of any order will always be somewhat in pro- 
 portion as the new business is to the members in those ages not affected by the medi- 
 cal examination. As, for instance, with only 10 per cent of the members not yet re- 
 moved from the benefits derived from medical examination, the death rate would be 
 greater than if the volume of new business was 50 per cent at such ages. 
 
 The foregoing indicate a few of the many reasons why the mortality table sub- 
 mitted might be correct and still not agree with the actual death experience of many 
 orders as reflected or ascertained by combining both old and new business, and the 
 same reasons will explain why different orders with about the same membership, but 
 differing in the per cent of new business, experience different death ratios. 
 
 The problem set forth in the preparation of the following table involved the basis 
 of a minimum rate with the elimination of cash, paid up and extended values. For a 
 new order, starting with fresh lives and careful selection, it is believed the table pre- 
 sents ample basis when combined with three or three and one-half per cent rate of 
 interest. The mass of data from which this mortality table is adjusted is so extensive 
 that the conclusions reached have ample support as to its sufficiency. It can be applied 
 to new business and old business at attained ages, when the latter is in good physicial 
 
58 
 
 condition. Should such old business be below the average, then such impairment 
 must be provided for by an addition to the rate of the table. 
 
 On motion of Mr. Markey the report of the Special Committee was unanimously 
 adopted. On motion of Mr. Stevenson the following resolution was unanimously 
 adopted : 
 
 Resolved, That the Mortality Table presented by the Committee on Rates be recom- 
 mended by this Congress as a proper guide for the adjustment of rates. 
 
 In 1900, at Boston, the National Fraternal Congress unanimously adopted the 
 following resolution offered by Mr. D. D. Aitken, Chairman of the Committee on 
 Rates : 
 
 Your committee, to whom was referred all matters pertaining to rates, would most 
 respectfully report; 
 
 That, in its judgment, this Congress should recommend to the law-making power of 
 all States and Provinces in the enactment of laws that will require all Fraternal Bene- 
 fit Societies thereafter organized and not theretofore admitted to do business therein, 
 to adopt rates not lower than is demonstrated to be necessary by the following mor- 
 tality table, adopted by this Congress at its last meeting: 
 
 The Mortality Table (as published in this book) is then given, and the Committee 
 continues : 
 
 Your Committee further recommend that the rates deduced from this Mortality 
 Table and prepared by your Committee on Statistics, which are as follows, be 
 recommended to the consideration of the States and Provinces as proper rates for 
 the level-premium and step-rate plans where no scaling of certificates is made. 
 
 Then follows the tables of level premiums and step rates heretofore given. 
 Returning to the Proceedings of the Congress at Baltimore in 1898, I extract the 
 following from the report of the Committee on Statutory Legislation : 
 
 In the Province of Quebec the law requires a deposit of $5,ooo with power of 
 demanding an increase thereto from time to time, and has other objectionable features. 
 The chairman of your committee had a personal interview in Quebec with the pro- 
 vincial authorities, and it is believed that with united effort a material modification 
 can be obtained, and probably the main features of our uniform law adopted. 
 
 Virginia has passed a Fraternal Act in the lines of the uniform law. 
 
 In Georgia, a law, which on the face applies to assessment insurance, with a hos- 
 tile administration of the Insurance Department, might be held applicable to Fraternal 
 Orders. The present Commissioner does not so apply it. It would be wise to make 
 the effort to have the exemption put in the law. 
 
 In Kentucky, legislation which was not satisfactory to our brethren was defeated. 
 We are advised that the Uniform Bill can be secured there. 
 
 An attempt was started in Ohio to repeal the present law, the Uniform Bill, but 
 was abandoned. 
 
 The Committee on Statutory Legislation reported to the Congress at Chicago 
 in 1890 that "the Parliament of Ontario had passed an Act that, in effect, denied 
 Societies of the United States the privilege of doing business in that Province; that 
 the effort to secure a law in Quebec failed and that the requirement of a deposit of 
 $5,000 was still in effect; that a bill passed the North Carolina Legislature on the 
 line of the Uniform Bill, and that the Uniform Bill was adopted in Indiana and Kan- 
 
59 
 
 sas. That a bill failed of passage in Oregon due to a division amongst the Fraternal 
 Societies. 
 
 The provision of the Act of Ontario was as follows : 
 
 Unless the Society provides for its contracts upon lives at least to the extent of 
 collecting from its members premiums not less than those set out in Schedule A, 
 and such further sum as is sufficient to provide for the expenses of management, it is 
 not admissible to register. 
 
 Another provision was as follows : 
 
 No company, Society, Association or organization incorporated after the tenth 
 day of March, 1890, under Chapter 172 of The Revised Statutes of Ontario, 1887, or 
 under Chapter 211 of The Revised Statutes of Ontario, 1897, shall undertake or effect 
 or agree or offer to undertake or effect any contract of insurance within the mean- 
 ing of Section 2. 
 
 The rates of Schedule A are known as the Hunter rates and are approximately the 
 same as those recommended by the rate committee to the National Fraternal Con- 
 gress. Dr. Oronhyatekha, as President of the National Fraternal Congress in his 
 address in 1900 at the Boston session, set out in full for comparison the level-premium 
 rate according to the National Fraternal Congress Table and according to those known 
 as the Hunter rates and also those known as Blackadar's rates. Quotations will here- 
 after be made from Dr. Oronhyatekha's address and the schedules will be given in 
 that connection. 
 
 History along the line of adequate rates was making rapid progress by the time 
 of the fourteenth annual session of the 'National Fraternal Congress held in the 
 city of Boston, August 28, 29, 30 and 31, 1900. The Committee on Credentials began 
 to play its part in this drama by recommending the following : 
 
 Your Committee have become satisfied from an examination of some of the so- 
 cieties applying for admission that their rates of assessment are inadequate to pro- 
 vide for the benefits provided in their laws, but the Constitution of the Congress 
 has no requirement or standard upon this point. We, therefore, recommend that 
 the Committee on Constitution and Laws formulate and present for adoption at this 
 session a provison which will enable this Committee to refuse admission to future 
 applicants for admission to the Congress, when it is evident that their table of rates 
 is clearly inadequate to provide for the successful carrying out of their contracts with 
 their members. 
 
 A resolution to the above effect was adopted by the Congress. In the report of 
 the Committee on Conference with the Insurance Commissioners the following appears : 
 
 In the course of its deliberations the joint committee spent a great deal of time in 
 discussing the ever-present question of adequate rates in Fraternal Benefit Society 
 business. The members of the committee representing the Insurance Departments 
 insisted that their interest in all matters pertaining to the business of these societies 
 was founded solely in the commission which they hold from the people of their re- 
 spective States, empowering and directing them to protect their citizens, whose 
 patronage is solicited by these societies, from the danger of imposition or loss arising 
 either from intentional imposition or from inherent weakness or defects of the system. 
 These superintendents seem to be unanimous in their opinion that the assessment 
 rates in most of these societies are now fixed at a point below the normal cost of 
 insurance, and that these rates, in the absence of further provision, are not adequate 
 to successfully meet the obligations in the certificates issued to the members, and they 
 insist that this constitutes an inherent weakness in the system which they are 
 bound constantly to call attention to in the discharge of their obligations to the people 
 of their States. 
 
 The joint committee was unanimously of the opinion that it would be imprac- 
 
60 
 
 ticable to insist by statute on any arbitrary rate of assessment for societies already 
 organized and doing business, but it was the consensus of opinion in the committee 
 that legislation might wisely be sought restricting societies hereafter organized, or 
 seeking admission, to transact Fraternal- Society business to a minimum rate of assess- 
 ment per annum for benefits promised. And it was decided to recommend, both to 
 the Fraternal Congress and to the National Association of Insurance Superintend- 
 ents, that they jointly favor and encourage such legislation whenever and wherever 
 practicable. Believing that such legislation would be extremely valuable to our 
 societies in preventing unfair competition by newly organized societies offering in- 
 ducements which long experience has convinced us can never be realized, and feeling 
 that the effect of intelligent discussion of these subjects, both in and out of the 
 Legislature, is toward a final determination desirable alike to the public and the 
 Fraternal Beneficiary system, we advise the adoption of the recommendation by the 
 Congress. 
 
 The Committee on Conference reported concerning the discussion of many other 
 subjects, including the following: 
 
 The joint committee next took up the question as to whether or not societies 
 should provide in the face of their certificates for the payment of a certain sum or a 
 sum contingent upon the amount raised from one assessment. This has been a 
 most prolific source of controversy between the societies and the departments. In 
 Massachusetts and other Eastern States the departments hold that a Society depend- 
 ing for its mortuary fund upon the contributions of its members and having no capital 
 stock as a basis of absolute promise, has no right to make any except a conditional 
 promise of benefits; while in Missouri, Indiana and other Western States the 'de- 
 partments have held exactly the reverse, laying out of sight the theory which is at 
 the foundation of the business and placing their decisions upon the ground that the 
 citizens of their States, whose interests they are safeguarding, should be told on the 
 face of the contract to a definite certainty how much money that certificate will 
 produce in case of their death. Your Committee believes that the construction by 
 the Eastern States is the correct one, and that as the plan of raising funds to pay 
 certificates depends absolutely on the voluntary payments of the members, that all 
 promises made in reliance upon such contingent collections must of necessity be 
 contingent promises, no matter what the form of words used in the face of the 
 certificate may be. 
 
 I make the following excerpts from the address of President Oronhyatekha. Dr. 
 Oronhyatekha was the head officer of the Independent Order of Foresters in Toronto, 
 Ontario, and known as one of the ablest men of .the Congress, and yet seriously he 
 made the following statements to a body of intelligent men: 
 
 A commercial insurance company is formed in the first place to earn money for 
 the directors and other shareholders and in the second place to give insurance bene- 
 fits to its members or policy-holders. In other words, commercial insurance companies 
 are organized and worked on the same principle as a sawmill, a flour mill or a 
 cotton or other factory, viz. : to earn certain profits on the investments made by the 
 owners. I apprehend I am not departing from the truth when I say that the directors 
 and other owners of mills and factories never spend any sleepless nights thinking 
 how best to promote the interests of the consumers. Their concern is more apt 
 to be centered on the profits that can be legitimately made out of their mill or factory. 
 
 A Fraternal Benefit Society, on the other hand, is formed to give insurance and 
 other benefits to its policy-holders or members at the lowest possible cost consistent 
 with safety and permanence without the remotest thought of any profit for directors 
 or shareholders. They are therefore more like public schools, hospitals or charities, 
 which are organized and carried on to do the greatest good at a minimum cost, but 
 absolutely without profit or gain to anyone, except to the scholars and other bene- 
 ficiaries of the educational or other institutions of a civilized nation. 
 
 Dr. Oronhyatekha then gave comparative tables as follows : 
 
61 
 
 WHOLE LIFE NET LEVEL RATES PER $1,000 AT 4%. 
 DEATH BENEFIT ONLY. 
 
 Entry 
 Age. 
 
 X. F. C. Rates. 
 Annual. Monthly. 
 
 Hunter Rates 
 Annual. Monthly. 
 
 Blackaclar 
 Annual 
 Rates. 
 
 20 
 
 $10.34 
 
 $0.90 
 
 $10.55 $0.90 
 
 $10.03 
 
 21 
 
 10.62 
 
 93 
 
 10.91 .93 
 
 10.32 
 
 22 
 
 10.92 
 
 .96 
 
 11.28 .96 
 
 10.62 
 
 23 
 
 11.24 
 
 .98 
 
 1 1 .66 .99 
 
 10.93 
 
 24 
 
 H-57 
 
 I.OI 
 
 12.03 
 
 .02 
 
 11.26 
 
 25 
 
 11.92 
 
 1.04 
 
 12.42 
 
 -05 
 
 11.61 
 
 26 
 
 12.28 
 
 1.07 
 
 12.76 
 
 .08 
 
 11.97 
 
 27 
 
 12.67 
 
 i. ii 
 
 13-12 
 
 .11 
 
 12.36 
 
 28 
 
 13.08 
 
 1.14 
 
 13-49 
 
 14 
 
 12.76 
 
 29 
 
 I3.5I 
 
 1.18 
 
 13-87 
 
 .18 
 
 I3-I9 
 
 30 
 
 13-96 
 
 1.22 
 
 14-31 
 
 .21 
 
 13.64 
 
 31 
 
 14-43 
 
 1.26 
 
 14.76 
 
 -25 
 
 14.11 
 
 32 
 
 14.94 
 
 I-3I 
 
 15.22 
 
 .29 
 
 14.61 
 
 33 
 
 1547 
 
 1-35 
 
 15-73 
 
 1-33 
 
 I5.I3 
 
 34 
 
 16.03 
 
 1.40 
 
 16.25 
 
 .38 
 
 15.69 
 
 35 
 
 16.62 
 
 1-45 
 
 16.82 
 
 43 
 
 16.27 
 
 36 
 
 17.24 
 
 I-5I 
 
 17.42 
 
 .48 
 
 16.89 
 
 37 
 
 17.90 
 
 1-57 
 
 18.05 
 
 -53 
 
 17.54 
 
 38 
 
 1 8.60 
 
 1.63 
 
 18.71 
 
 59 
 
 18.22 
 
 39 
 
 19-34 
 
 1.69 
 
 19.42 
 
 -65 
 
 18.95 
 
 40 
 
 20.11 
 
 1.76 
 
 20.18 
 
 71 
 
 20.53 
 
 4i 
 
 20.93 
 
 1.83 
 
 20.97 
 
 -78 
 
 21.38 
 
 42 
 
 21.80 
 
 1.91 
 
 21.81 1.85 
 
 22.29 
 
 43 
 
 22.72 
 
 1-99 
 
 22.70 1.93 
 
 23-25 
 
 44 
 
 23.69 
 
 2.07 
 
 23.65 2.01 
 
 24.27 
 
 45 
 
 24.72 
 
 2.16 
 
 24.66 2.09 
 
 25-39 
 
 46 
 
 25.81 
 
 2.25 
 
 25.72 2.18 
 
 26.49 
 
 47 
 
 26.97 
 
 2.35 
 
 27.31 2.32 
 
 27.71 
 
 48 
 
 28.20 
 
 2-45 
 
 28.10 2.38 
 
 28.99 
 
 49 
 
 29-51 
 
 2.58 
 
 29.36 2.49 
 
 30.36 
 
 50 
 
 30.00 
 
 2.71 
 
 30.72 2.61 
 
 3i.8i 
 
 5i 
 
 32.39 
 
 2.83 
 
 32.17 2.73 
 
 33-35 
 
 52 
 
 33-97 
 
 2.97 
 
 33-71 2.86 
 
 35-00 
 
 53 
 
 35.65 
 
 3-12 
 
 35-34 3-00 
 
 36.74 
 
 54 
 
 37-45 
 
 3.28 
 
 37-07 3-15 
 
 
 55 : 
 
 39.36 
 
 3.44 
 
 38.94 3.30 
 
 
 
 56 
 
 41.41 
 
 3.62 
 
 
 
 
 57 
 
 43.60 
 
 3-88 
 
 
 
 
 58 
 
 45-94 
 
 4.02 
 
 .... 
 
 
 
 59 
 
 48.45 
 
 4.24 
 
 
 
 
 60 
 
 5I-I3 
 
 4-47 
 
 .... 
 
 
 
 NOTE. The monthly rates at the older ages are too low, as hereinbefore explained. See correct N. F. 
 C. monthly rates in tables of this book. In the schedules published the annual rates at ages 47 and 50 are 
 given as $26.91 and $30.98. The above are correct. 
 
 The National Fraternal Congress Rates are those reported by the Special Commit- 
 tee on Rates as heretofore published. The Hunter rates were prepared by J. Howard 
 Hunter, Superintendent of Insurance of Ontario. The Blackadar rates were prepared 
 by A. K. Blackadar, Actuary of the Dominion Government at Ottawa. 
 
 Before the session of the National Fraternal Congress of 1901 there had been 
 organized The Associated Fraternities of America at a meeting held in Chicago on 
 January 21, of 1901. The reason for the organization is found in the 3rd and 4th 
 paragraphs of the declaration of principles, which read as follows : 
 
62 
 
 We hereby declare our uncompromising opposition to any and all legislation which 
 would tend to restrict the rights of the membership of our society to self-government, 
 and denounce as unwise, unfair and against public policy any statutory enactments 
 for government and control of fraternal associations which do not apply expressly 
 to all societies with equal force and effect. 
 
 We further declare that we believe all societies should charge adequate mortality 
 rates for their promised benefits, and while we disclaim any attempt to curtail the 
 rights of the membership of any association, to organize their beneficiary department in 
 such form and conduct the same in such manner as to them shall seem most conducive 
 to their happiness and welfare, we courteously and earnestly recommend that each 
 association study its own system and experience to the end that the association will be 
 able to collect from its contributions sufficient to insure safety and permanency. 
 
 The sentiment of those who organized the Associated Fraternities of America 
 was voiced by Mr. Edwin M. Johnson in a well digested and forceful address. Mr. 
 Johnson quoted at length from the resolutions passed by the National Fraternal Con- 
 gress and the reports of the Committee on Conference (heretofore given in part), and 
 then summed up his protest and criticism as follows : 
 
 Strange it did not occur to our brothers that new orders having a plan so much 
 stronger than the plan of old orders, and practicing what the old orders professed to 
 believe but did not practice being, therefore, a creation so different from themselves 
 might not desire a membership. Especially should such a membership be desired among 
 a class of orders that would apply a measure so different to new entrants from that 
 which they apply to themselves and especially, further, when those with whom they 
 would affiliate would carry their requirements to the length of not only legislating 
 rates, but other conditions that the young order must comply with which they did 
 not propose to comply with themselves. Why should the young and healthy orders 
 join their influence with the old orders and cooperate thereby to make laws and con- 
 ditions against personal interest? 
 
 Many of the old orders have for years talked themselves and their members into 
 a position of believing in low rates, desiring, of course, to present the thought that 
 their own rates were the lowest. They always contended that their rates would 
 always be the lowest, until Nature forced them to admit the contrary. They still 
 believe in the benefit of talking "cheapness." To enable them to successfully do this, 
 they would today, after more than a quarter of a century of experience and wrong 
 practice, legislate the "competitor" into a position of having to collect a higher rate 
 than the assessment of the older orders, even after the increased burdens they have 
 loaded onto them. 
 
 It was difficult to defend the position that adequate rates should be applied to new 
 organizations and not applied to the new members of old organizations, and as we 
 shall see later on, Mr. Markey offered a resolution that all societies should adopt 
 adequate rates by 1905. 
 
 The meeting in Chicago was a preliminary meeting for the organization of the 
 Associated Fraternities of America, the first annual meeting being held in July, 1901, 
 at Cambridge Springs, Pa. The following is a list of the Societies represented at that 
 meeting : 
 
 Ancient Order of Gleaners. Fraternal Army of America. 
 
 Ancient Order of Red Cross. Fraternal Tribunes. 
 
 American Catholic Union. Grand Fraternity. 
 
 Brotherhood of American Yeomen. Highland Nobles. 
 
 Bankers' Fraternal Union. Home Guards of America. 
 
 Daughters of Columbia. Knights of Kadosh. 
 
 Fraternal Brotherhood of the World. Knights and Ladies of Columbia. 
 
 Fraternal Bankers' Reserve. Loyal Mystic Legion of America. 
 
63 
 
 Mystic Workers. 
 
 Mutual Protective League. 
 
 Mystic Toilers. 
 
 Modern Tonties. 
 
 Modern Brotherhood of America. 
 
 Modern Order of Praetorians. 
 
 Missouri Fraternal Congress. 
 
 National Protective League. 
 
 Order of Americus. 
 
 Order of Washington. 
 
 Royal Circle. 
 
 Royal Fraternal Union. 
 
 Sons and Daughters of Justice. 
 
 Societies Des Artisans. 
 
 The Chevaliers. 
 
 The Fraternal Censor. 
 
 United Moderns. 
 
 Utopian Brotherhood of America. 
 
 Mr. Lee W. Squier was Chairman of the Committee on Jurisprudence and Legisla- 
 tion, and from his appointment at the organization of the Associated Fraternities of 
 America in January, 1901, to July, 1901, he and his Committee were very active as will 
 appear from his report given below : 
 
 Your Committee on Jurisprudence and Legislation beg leave to submit the follow- 
 ing report to your first annual convention: 
 
 It hardly seems necessary for us to preface this report with the general statement, 
 the truth of which must be recognized beforehand by all who have given any thought 
 to the subject, that the work of this Committee, in the short time alloted for its 
 accomplishment, has involved a large amount of correspondence and no little diplomacy 
 and tact, owing to the fact that the field of inquiry and investigation has been so 
 thoroughly traversed by the like committee of the National Fraternal Congress, and 
 some insurance departments have misunderstood the object of this new association 
 of fraternal 'Societies. However, we take pleasure in remarking that in every case, 
 when the object and aims of the Associated Fraternities have been courteously 
 explained to the insurance commissioners of our several States, your committee has 
 received prompt and kindly replies to its inquiries, and in many instances have been 
 assured of the hearty cooperation of the insurance departments in the general efforts 
 of the Associated Fraternities to reach a common basis of harmony and government 
 satisfactory to the Fraternities on the one hand and to the insurance officials on the 
 other. At the outset, therefore, we thank such insurance officials for their courtesy 
 and consideration. 
 
 The following States have on their statute books what is known as the National 
 Fraternal Congress Old Uniform Bill, before its minimum rate amendment, with here 
 and there slight modifications, more or less local in their character, but not seriously 
 affecting the real import of the bill, viz. : Michigan, Illinois, Wisconsin, Iowa, Ne- 
 braska, Missouri, Kansas, Ohio, Pennsylvania, New York, New Jersey, Connecticut, 
 New Hampshire, District of Columbia, Maryland, Georgia, Alabama and South 
 Carolina. 
 
 The Kansas law provides that no beneficiary certificates shall be issued by a new 
 association, incorporated thereunder, until its benefit fund contains in cash paid in an 
 amount equal to at least twice the death benefit promised in its smallest certificate; 
 and no association can be admitted to do business in this State unless it is shown 
 that one assessment upon its membership at the specified rates will produce sufficient 
 funds to pay a claim in full under its largest certificate. The Kansas law also makes 
 it unlawful for any association to use any portion of its mortuary or emergency fund 
 for expenses. 
 
 The South Carolina, Alabama and District of Columbia laws make provision for 
 withdrawal benefit after a period of from three to ten years, such withdrawal benefit 
 not to exceed, however, the amount contributed by the withdrawing member. 
 
 The South Carolina law is similar to that of Ohio and some other States in the 
 provision that no order can be authorized to do business within this State, until it has 
 on deposit to the credit of the association for the payment of death and other claims, 
 and which amount cannot be used for expenses, the sum of five thousand dollars 
 ($5,000), which if advanced by the trustees or other officers, may be repaid to them 
 from the proceeds of an expense fund for this purpose. 
 
 The Maryland law contains a provision that no society can be authorized to do 
 business in that State, if it ipromises to pay any withdrawal, surrender, endowment, 
 old age or other benefit besides sickness, accident or death, unless it shall have first 
 deposited with the Insurance Commissioner the sum of ten thousand dollars in divi- 
 
64 
 
 dend-bearing securities satisfactory to said Commissioner as a guarantee that such 
 certificates will be paid by it. However, if such society furnishes satisfactory evidence 
 that it has in its home State such deposit it need not make the deposit in Maryland. 
 
 So far as the Committee has been able to ascertain, the following States have 
 practically no law governing fraternal beneficiary societies, viz. : Rhode Island (pro- 
 vided they employ no paid agents), West Virginia, Oregon, California, Montana, 
 Mississippi, and Florida. 
 
 The following States have laws exempting fraternal beneficiary societies from the 
 operation of the insurance laws, but require annual reports, to-wit : Virginia, Delaware, 
 and Kentucky. There are indications, however, that the day of reckoning is approach- 
 ing in some of these States, as the* Insurance Commissioner of one of them writes : 
 "I regret to say this department has no jurisdiction over fraternal organizations." 
 
 Colorado has a law calling for the filing of articles of incorporation or association 
 of fraternal societies and providing for the appointment of an attorney for the service 
 of process. This law does not provide for the filing of annual reports, though it is 
 believed that the general insurance laws of the State provide for this. 
 
 The Minnesota law places our societies in the same category with cooperative life, 
 endowment and casualty companies, a classification which every true fraternalist will 
 repudiate. 
 
 The Wisconsin law is especially burdensome in a financial way, as it provides for 
 the collection of a total of ninety-three dollars for entrance to do business and annual 
 renewal in that State forty dollars of which goes to newspapers truly a good example 
 of the power of the press. 
 
 The State of South Dakota makes its general assessment insurance law applicable 
 to fraternal beneficiary societies another classification which many of the up-to-date 
 fraternalists roundly repudiate. 
 
 And now we come to the legislation recently enacted or attempted. The National 
 Fraternal Congress Bill, as amended in Boston, prescribing minimum rates, was 
 adopted last winter in Maine, Vermont, Massachusetts, Indiana, North Dakota, Okla- 
 homa and Washington. It failed in Pennsylvania, Wisconsin, Missouri, Nebraska, 
 Wyoming, Texas, Minnesota and Oregon. 
 
 Your Committee has already said that the Associated Fraternities of America came 
 into existence as an organization none too soon. On March 21, the very day of the 
 organization of this association, the new National Fraternal Congress Bill went into 
 effect in Maine. If the National Fraternal Congress is responsible for all the pro- 
 visions of the Maine enactment, then it is high time that the fraternals of America 
 should awake to the danger that confronts them through the influence of the Fraternal 
 Congress. The first section of the Maine law timidly announces that "Any such 
 fraternal beneficiary association may create, maintain, disburse and apply a reserve 
 or emergency fund in accordance with its by-laws or constitution." Notwithstanding 
 this declaration in favor of self-government, section 7 of this law provides as follows : 
 "Each such association hereafter organized under the provisions of this act, shall, on 
 or before the 31 st day of December in each year, deposit with the State Treasurer 
 to the credit of its emergency or reserve fund not less than fifteen per cent of its 
 total mortuary receipts for the year then ending, until the amount so deposited 
 amounts to not less than fifty thousand dollars ($50,000) ." 
 
 This section also provides that "The Insurance Commissioner shall annually in 
 February certify to the Treasurer of State the minimum amount of reserve fund 
 required to be kept on deposit in the treasury by each association doing business under 
 this act." This section also provides the manner in which the State shall proceed to 
 administer these funds in its hands, for the satisfying of judgments against the 
 association or in closing up the affairs of the society. 
 
 The law enacted in the State of Washington, on. March 18, 1901, is the Boston 
 Fraternal Congress Bill in its "Simon-pure" form, except that the expenses of exami- 
 nation is made two hundred dollars in associations having no reserve fund and four 
 hundred dollars in the case of those that have a reserve fund. 
 
 The Wyoming legislature at its last session enacted a law similar to the first 
 National Fraternal Congress Bill. In forwarding the Committee a copy of this law, 
 the Auditor of State significantly writes : "This law is not like the one that was intro- 
 duced. The uniform law recommended by the National Fraternal Congress was 
 introduced in its entirety, and after it had been through the various committees, it 
 
65 
 
 was amended and finally, the one enclosed is the result." Your Committee would be 
 pleased to thank those whose influence thus saved the day in Wyoming. 
 
 The minimum rate measure was defeated in the Texas legislature "on account of 
 opposition from the Societies themselves," as reported to your Committee by the 
 Commissioner of that State. The Texas legislature passed a law providing for can- 
 cellation of certificate of authority upon the failure of a fraternity to pay any 
 judgment. 
 
 The last session of the legislature in Arkansas adopted a law which provides that 
 all fraternal beneficiary orders operating in that State shall give a bond of ten thousand 
 dollars to the State, conditioned upon the prompt payment of claims in that State. 
 
 In concluding this survey of statutes in force or attempted for the regulation of 
 fraternal beneficiary societies in the several States of the Union, your Committee 
 desires to make these observations, to-wit : 
 
 1. After fifteen years of legislation proposed and urged by the National Fraternal 
 Congress, there is a great deal of non-uniformity in the so-called uniform bill now 
 on the statute books. 
 
 2. Owing to the national scope and character of fraternal beneficiary societies, 
 there is the most urgent need of statutory legislation that shall be uniform, not in 
 name only, but in fact in every State in the Union. 
 
 3. It is to be profoundly regretted that the National Fraternal Congress should 
 have proposed discriminatory legislation that divides the fraternal forces of America 
 just at the time when they should present an unbroken front before the entrenched 
 hosts of our common enemy. 
 
 4. Every true fraternalist will welcome any just plan of harmonizing the forces 
 in the fraternal field, so as to secure statutory legislation that shall be uniform 
 throughout our common country in its application to all fraternal beneficiary societies 
 with equal force and effect. 
 
 For ten years there was bitter contention between The National Fraternal Congress 
 and the Associated Fraternities of America in respect of legislation in the different 
 States. Where the National Fraternal Congress would undertake to have the uniform 
 bill adopted, the Representatives of the Associated Fraternities of America would appear 
 in opposition; where the Associated Fraternities would undertake to have legislation 
 with regard to reserve funds and the permission of surrender values, then the Repre- 
 sentatives of the National Fraternal Congress would appear in opposition; 
 
 The division between the Fraternal forces was extremely unfortunate, and I shall 
 not go into detail of the history of legislation during the ten years 1901-1910. I come 
 directly to the joint action of the two National bodies at Mobile in connection with 
 the Convention of Insurance Commissioners in 1910, when a Uniform Bill was agreed 
 upon between these three National Associations ; that is, the National Fraternal Con- 
 gress, the Associated Fraternities and the Convention of Insurance Commissioners. 
 The results of this Conference and agreement was a bill to be recommended for 
 enactment in the several States, and was known as the "Mobile Bill." At the Confer- 
 ence in Mobile with the Insurance Commissioners the representatives of the National 
 Fraternal Congress were Chas. E. Piper and Abb Landis. The representatives of the 
 Associated Fraternities were Arthur Burnett, Benjamin D. Smith, Lee W. Squier, 
 Robert S. lies, George Dyre Eldridge. In 1911 many of the States enacted into law 
 the Uniform Bill agreed upon at Mobile. However, it was found that many societies 
 still objected to some of the provisions of the Mobile Bill, and a general conference 
 of representatives of the National Fraternal Congress, the Associated Fraternities of 
 America and the Federated Fraternities were held in New York late in 1912, and a 
 section added to the bill providing for a third form of valuation, and known as section 
 23b of the "New York Conference Bill." There was a large gathering of Fraternal rep- 
 resentatives in New York, the National Fraternal Congress and the Associated Frater- 
 
66* 
 
 nities being represented by the same gentlemen who represented those bodies in Mobile 
 ''n 1910. The New York Conference Bill has been enacted into law in a number of States. 
 The main features of the Mobile Bill and the New York Conference Bill, which dis- 
 tinguish those measures from any other heretofore recommended by the Congress or 
 other Fraternal bodies, were the provisions for valuation. The following are the main 
 provisions of the New York Conference Bill : 
 
 THE NEW YORK CONFERENCE BILL. 
 
 Section i. (Fraternal Benefit Societies Defined.) Any corporation, society, order 
 or voluntary association, without capital stock, organized and carried on solely for 
 the mutual benefit of its members and their beneficiaries, and not for profit, and 
 having a lodge system with ritualistic form of work and representative form of gov- 
 ernment, and which shall make provision for the payment of benefits in accordance 
 with Section 5 hereof, is hereby declared to be a Fraternal Benefit Society. 
 
 Section 2. (Lodge System Defined.) Any society having a supreme governing 
 or legislative body and subordinate lodges or branches by whatever name known, 
 into which members shall be elected, initiated and admitted in accordance with its con- 
 stitution, laws, rules, regulations and prescribe ritualistic ceremonies, which subor- 
 dinate lodges or branches shall be required by the laws of such society to hold regular 
 or stated meetings at least once in each month, shall be deemed to be operating on 
 the lodge system. 
 
 Section 3. (Representative Form of Government Defined.) Any such society shall 
 be deemed to have a representative form of government when it shall provide in its 
 constitution and laws for a supreme legislative or governing body, composed of repre- 
 sentatives elected either by the members or by delegates elected directly or indirectly 
 by the members, together with such other members as may be prescribed by its con- 
 stitution and laws; provided, that the elective members shall constitute a majority in 
 number and have not less than two-thirds of the votes, nor less than the votes 
 required to amend its constitution and laws; and provided further, that the meetings 
 of the supreme or governing body, and the election of officers, representatives or 
 delegates shall be held as often as once in four years. The members, officers, repre- 
 sentatives or delegates of a fraternal benefit society shall not vote by proxy. 
 
 Section 4. (Exemptions.) Except as herein provided, such societies shall be gov- 
 rened by this Act, and shall be exempt from all provisions of the insurance laws of 
 this State, not only in governmental relations with the State, but for every other 
 purpose, and no law hereinafter enacted shall apply to them, unless they be expressly 
 designated therein. 
 
 Section 5. (Benefits.) Subsection i. Every Society transacting business under 
 this act shall provide for the payment of death benefits, and may provide for the pay- 
 ment of benefits in case of temporary or permanent physical disability, either as the 
 result of disease, accident or old age; provided, the period of life at which the pay- 
 ment of benefits for disability on account of old age shall commence, shall not be 
 under seventy years, and may provide for monuments or tombstones to the memory 
 of its deceased members, and for the payment of funeral benefits. Such Society 
 shall have the power to give a member, when permanently disabled or on attaining the 
 age of seventy, all, or such portion of the face value of his certificate as the laws 
 of the Society may provide; provided, that nothing in this act contained shall be so 
 construed as to prevent the issuing of benefit certificates for a term of years less than 
 the whole of life which are payable upon the death or disability of the member ^oc- 
 curring within the term for which the benefit certificate may be issued. Such Society 
 shall, upon written application of the member, have the power to accept a part of the 
 periodical contributions in cash, and charge the remainder, not exceeding one-half 
 of the periodical contribution, 'against the certificate with interest payable or com- 
 pounded annually at a rate not lower than four per cent per annum ; provided, that 
 this privilege shall not be granted except to Societies which have readjusted or may 
 hereafter readjust their rates of contributions, and to contracts affected by such 
 readjustment. 
 
 Subsection 2. Any Society which shall show by the annual valuation hereinafter 
 provided for that it is accumulating and maintaining the reserve not lower than the 
 
. 67 
 
 usual reserve computed by the American Experience Table and four per cent in- 
 terest, may grant to its members extended and paidup protection, or such withdrawal 
 equities as its constitution and laws may provide; provided, that such grants shall 
 in no case exceed in value the portion of the reserve to the credit of such members 
 to whom they are made. 
 
 Section 6 provides for the payment of death benefits for wife, husband, relative 
 by blood to the fourth degree, father-in-law, mother-in-law, son-in-law, daughter-in- 
 law, stepfather, stepmother, stepchildren, children by legal adoption, or to a person 
 or persons dependent upon the member; provided, that if after the issuance of the 
 original certificate the member shall become dependent upon an incorporated charitable 
 institution, he shall have the privilege, with the consent of the society, to make such 
 institution his beneficiary. 
 
 Section 7 provides that any society may admit to beneficial membership any person 
 not less than sixteen and not more than sixty years of age, who has been examined 
 by a legally qualified physician. 
 
 Section 8 provides that every certificate issued by any society shall specify the 
 amount of benefit provided thereby, and shall provide that the certificate, the charter 
 or articles of incorporation, or, if a voluntary association, the articles of association, 
 the constitution and laws of the society and the application for membership and medical 
 examination, signed by the applicant, and all amendments to each thereof, shall con- 
 stitute the agreement between the society and the member. 
 
 SECTION 9. (Funds.) SUBSECTION I. Any society may create, maintain, invest, 
 disburse and apply an emergency, surplus or other similar fund in accordance with 
 its laws. Unless otherwise provided in the contract such funds shall be held, invested 
 and disbursed for the use and benefit of the society, and no member or beneficiary 
 shall have or acquire individual rights therein or become entitled to any apportionment 
 or the surrender of any part thereof, except as provided in Subsection 2 of Section 
 5 of this Act. The funds from which benefits shall be paid and the funds from which 
 the expenses of the society shall be defrayed shall be derived from periodical or other 
 payments by the members of the society and accretions of said funds ; provided, that 
 no society, domestic or foreign, shall hereafter be incorporated or admitted to transact 
 business in this State which does not provide for stated periodical contributions suffi- 
 cient to provide for meeting the mortuary obligations contracted, when valued upon 
 the basis of the National Fraternal Congress Table of Mortality as adopted by the 
 National Fraternal Congress August 23, 1899, or any higher standard, with interest 
 assumption not more than four per cent per annum, or write or accept members for 
 temporary or permanent disability benefits except upon tables based upon reliable 
 experience, with an interest assumption not higher than 4 per cent per annum. 
 
 SUBSECTION 2. Deferred payments or installments of claims shall be considered 
 as fixed liabilities on the happening of the contingency upon which such payments or 
 installments are thereafter to be paid. Such liability shall be the present value of 
 such future payments or installments upon the rate of interest and mortality assumed 
 by the society for valuation, and every society shall maintain a fund sufficient to 
 meet such liability regardless of proposed future collections to meet any such lia- 
 bilities. 
 
 Section 10 provides for the investment of funds. 
 
 Section n provides that the payments by members, in whatever form made, shall 
 distinctly state the purpose of the same and the proportion thereof which may be 
 used for expenses, and that no part of the money collected for mortuary or dis- 
 ability purposes or the net accretions of (on) either or any of said funds shall be used 
 for expenses. 
 
 Section 12 provides for the organization of societies with not less than seven 
 persons, a majority of whom are citizens of the State, and that the application for 
 the charter must give the proposed name of the society, the purpose for which it is 
 formed and the names, residences, official titles of all the officers, trustees, directors 
 or other persons who are to have and exercise the general control and management 
 of the affairs and that such articles of incorporation and a bond in the sum of five 
 thousand dollars, with sureties approved by the Superintendent of Insurance, shall 
 be filed with the Superintendent of Insurance. But that its certificate shall not be 
 
68 
 
 issued until there have been secured at least 500 lives for at least $1,000 each, and 
 also applicants for death benefits have been regularly examined by legally qualified 
 practicing physicians, nor until there shall be established ten subordinate lodges or 
 branches into which said five hundred applicants have been initiated, nor until there 
 has been submitted to the Superintendent of Insurance, under oath of the President 
 and Secretary, a list of such applicants, giving their names, addresses, date examined, 
 date approved, ^date initiated, name and number of the subordinate branch of which 
 each applicant is a member, the amount of benefits to be granted, the rate of stated 
 periodical contributions, which latter shall be sufficient to provide for meeting the 
 mortuary obligation contracted, when valued for death benefits upon the basis of the 
 National Fraternal Congress Table of Mortality, as adopted by the National Fra- 
 ternal Congress August 23, 1899, or any higher standard at the option of the society, 
 and for disability benefits by tables based upon reliable experience and for combined 
 death 'and permanent total disability benefits by tables based upon reliable experience, 
 with an interest assumption not higher than 4 per cent per annum. Then follows 
 the usual preliminaries -provided in the Uniform Bill before the society can commence 
 business. 
 
 Section 13 provides that any society now engaged in transacting business in this 
 State may exercise, after the passage of this Act, 'all of the rights conferred thereby, 
 and all of the rights, powers, and privileges now exercised or possessed by it under 
 its charter or articles of incorporation not inconsistent with this Act, if it be incor- 
 porated ; or, if it be a voluntary association, it may incorporate hereunder. 
 
 Section 14 relates to mergers and transfers. 
 
 Section 15 provides for an annual license. 
 
 Section 16 provides for admission of a foreign society. 
 
 Section 17 provides for power of attorney and service of process. 
 
 Section 18 provides for the place of meeting and location of office. 
 
 Section 19 provides that there shall be no personal liability incurred by officers 
 and members of the supreme, grand or any other subordinate body of any such 
 society. 
 
 Section 20 provides that no subordinate body nor any of its subordinate officers 
 or members shall have the >DOwer or authority to waive any of the provisions of 
 the laws and constitution of the society. 
 
 Section 21 provides that no money or other benefits shall be liable to 'attachment, 
 garnishment or other process, or be seized, taken, appropriated or applied by any legal 
 or eauitable process or operation of law to pay anv debt or liability of a member or 
 beneficiary, or 'any other person who may have a right thereunder, either before or 
 after payment. 
 
 Section 22 provides for the amendment of the constitution and laws. 
 
 SECTION 23. (Annual Reports.) Every society transacting business in this State 
 shall annually, on or before the first day of March, file with the Superintendent of In- 
 surance, in such form as he may require, 'a statement under oath of its President and 
 Secretarv or corresponding officers, of its condition and standing on the thirty-first 
 day of December next preceding, and of its transactions for the vear ending on that 
 date, and also shall furnish such other information as the Superintendent may deem 
 necessary to a proper exhibit of its business and plan of working. The Superintendent 
 mav at other times require any further statement he may deem necessary to be made 
 relating to such society. 
 
 In 'addition to the annual report herein required, each society shall annually 
 report -to the Superintendent a valuation of its certificates in force on December 3ist, 
 last preceding; excluding those issued within the year for which the report is filed, 
 in cases where the contributions for the first year in whole or in part are used for 
 current mortality and expenses; provided, the first report of valuation shall be made 
 as of December 31, 1912. Such report of valuation shall show, as contingent liabilities, 
 the present mid-year value of the rvromised benefits provided in the constitution 
 and laws of such society under certificates then subject to valuation; and, as con- 
 tingent assets, the present mid-year value of the future net contributions provided in 
 the constitution and laws as the same 'are in practice actually collected. At the option 
 of any society, in lieu of the above, the valuation mav show the net value, and when 
 computed in case of monthly contributions may be the mean of the terminal values 
 for the end of the preceding and of the current insurance years. 
 
69 
 
 Such valuation shall be certified by a competent accountant or actuary, or, at the 
 request and expense of the society, verified by the actuary of the Department of In- 
 surance of the home State of the society, and shall be filed with the Superintendent 
 within ninety days after the submission of the last preceding annual report. The 
 legal minimum standard of valuation for all certificates, except for disability benefits, 
 shall be the National Fraternal Congress Table of Mortality as adopted by the Na- 
 tional Fraternl Congress August 23, 1899, or, at the option of the society, any 
 higher table ; or, at its option, it may use a table based upon the society's own ex- 
 perience of at least twenty years and covering not less than one hundred thousand 
 lives, with interest assumption not more than 4 per centum per annum. Each such 
 valuation report shall set forth clearly and fully the mortality and interest basis and 
 the method of valuation. Any society providing for disability benefits shall keep 
 the net contributions for such benefits in a fund separate and apart from all other 
 benefit and expense funds and the valuation of all other business of the society; 
 provided, that where a combined contribution table is used by a society for both 
 death and permanent total disability benefits the valuation shall be according to tables 
 of reliable experience and in such case a separation of the funds shall not be required. 
 
 The valuation herein provided for shall not be considered or regarded as a test 
 of the financial solvency of the society, but each society shall be held legally solvent 
 so long as the funds in its possession are equal to or in excess of its matured 
 liabilities. 
 
 Beginning with the year 1914, a report of such valuation and an explanation of 
 the facts concerning the condition of the society thereby disclosed shall be printed 
 and mailed to each beneficiary member of the society not later than June ist of each 
 year ; or, in lieu thereof, such report of valuation and showing of the society's con- 
 dition as thereby disclosed may be published in the society's official paper and the 
 issue containing the same mailed to each beneficiary member of the society. The 
 laws of such society shall provide that if the stated periodical contributions of the 
 members are insufficient to pay all matured death and disability claims in full, and 
 to provide for the creation and maintenance of the funds required by its laws, 
 additional, increased or extra rates of contributions shall be collected from the mem- 
 bers to meet such deficiency ; and such laws may provide that, upon the written 
 application or consent of the member, his certificate may be charged with its propor- 
 tion of any deficiency disclosed by valuation, with interest not exceeding 5 per centum 
 per annum. 
 
 SECTION 233. (Provisions to Insure Future Security.) If the valuation of the 
 certificates, as hereinbefore provided, on December 31, 1917, shall show that the 
 present value of future net contributions, together with the admitted assets, is less 
 than the present value of the promised benefits and accrued liabilities, such society 
 shall ^hereafter maintain said financial condition at each succeeding triennial valua- 
 tion in respect of the degree of deficiency as shown in the valuation as of December 
 31, 1917. If at any succeeding triennial valuation such society does not show at 
 least the same condition the Supterintendent shall direct that "it thereafter comply 
 with the requirements herein specified. If the next succeeding triennial valuation 
 after the receipt of such notice shall show that the society has failed to maintain 
 the condition required herein the Superintendent may, in the absence of good cause 
 shown for such failure, institute proceedings for the dissolution of such society, 
 in accordance with the provision of Section 24 of this Act, or, in the case of a foreign 
 society, its license may be cancelled in the manner provided in this Act 
 
 Any such society, shown by any triennial valuation, subsequent to December 31, 
 1917, not to have maintained the condition herein required, shall, within two years 
 thereafter, make such improvement as to show a percentage of deficiency not greater 
 than as of December 31, 1917, or thereafter, as to all new members admitted, be sub- 
 ject, so far as stated rates of contributions are concerned, to the provisions of Sec- 
 tion 12 of this Act, applicable in the organization of new societies ; provided, that the 
 net mortuary or beneficiary contributions and funds of such new members shall be 
 kept separate and apart from the other funds of the society. If such required im- 
 provement is not shown by the succeeding triennial valuation, then the said new 
 members may be placed in a separate class and their certificates valued as an in- 
 dependent society in respect of contributions and funds. 
 
 SECTION 23b. In lieu of the requirements of Sections 23 and 233, any society, 
 accepting in its laws the provisions of this section, may value its certificates on a 
 
70 
 
 basis, herein designated "accumulation basis,'' by crediting each member with the 
 net amount contributed for each year and with interest at approximately the net 
 rate earned and by charging him with his share of the losses for each year, herein 
 designated "cost of insurance," and carrying the balance, if any, to his credit. The 
 charge for the cost of insurance may be according to the actual experience of the 
 society applied to a table of mortality recognized by the law of this State, and shall 
 take into consideration the amount at risk during each year, which shall be the 
 amount payable at death less the credit to the member. Except as specifically pro- 
 vided in its articles or laws or contracts no charge shall be carried forward from 
 the first valuation hereunder against any member for any past share of losses ex- 
 ceeding the contributions and credit. If, after the first valuation, any member's 
 share of losses for any year exceeds his credit including the contribution for the 
 year, the contribution shall be increased to cover his share of the losses. Any such 
 excess share of losses chargeable to any member may be paid out of a fund or 
 contributions especially created or required for such purpose. 
 
 Any member may transfer to any plan adopted by the society with net rates on 
 which tabular reserves are maintained and on such transfer shall be entitled to make 
 such application of his credit as provided in the laws of the society. 
 
 Certificates issued, rerated or readjusted on a basis providing for adequate rates 
 with adequate reserves to mature such certificates upon assumptions for mortality 
 and interest recognized by the law of this State shall be valued on such basis, herein 
 designated the "Tabular Basis" ; provided, that if on the first valuation under this 
 section a deficiency in reserve shall be shown for any such certificate the same shall 
 be valued on the accumulation basis. 
 
 Whenever in any society having members upon the tabular basis and upon the 
 accumulation basis the total of all costs of insurance provided for any year shall 
 be insufficient to meet the actual death and disability losses for the year, the deficiency 
 shall be met for the year from the available funds after setting aside all credits 
 in the reserve; or from increased contributions or by an increase in the number of 
 assessments applied to the society as a whole or to classes of members as may be 
 specified in its laws. Savings from a lower amount of death losses may be returned 
 in like manner as may be specified in its laws. 
 
 If the laws of the society so provide, the assets representing the reserves of any 
 separate class of members may be carried separately for such class as if in an 
 independent society, and the required reserve accumulation of such class so set 
 apart shall not thereafter be mingled with the assets of other classes of the society. 
 
 A table showing the credits to individual members for each age and year of 
 entry and showing opposite each credit the tabular reserve required on the whole 
 life or other plan of insurance specified in the contract, according to assumptions 
 for mortality and interest recognized by the law of this State and adopted by the 
 society, shall be filed by the society with each annual report and also be furnished to 
 each member before July ist of each year. 
 
 In lieu of the aforesaid statement there may be furnished to each member within 
 the same time a statement giving the credit for such member and giving the tabular 
 reserve and level rate required for a transfer carrying out the plan of insurance 
 specified in the contract. No table or statement need be made or furnished where 
 the reserves are maintained on the tabular basis. 
 
 For this purpose individual bookkeeping accounts for each member shall not be 
 required and all calculations may be made by actuarial methods. 
 
 Nothing herein contained shall prevent the maintenance of such surplus over 
 and above the credits on the accumulation basis and the reserves on the tabular 
 basis as the society may provide by or pursuant to its laws ; nor be construed as 
 giving to the individual member any right or claim to any such reserve or credit 
 other than in manner as expressed in the contract and its laws; nor as making any 
 such reserve or credits a liability in determining the legal solvency of the society. 
 
 SECTION 24. (Examination of Domestic Societies.) The Superintendent of In- 
 surance, or any person he may appoint, shall have the power of visitation and 
 examination into the affairs of any domestic society. He may employ assistants for 
 the purpose of such examination, and he. or any person he may appoint, shall have 
 free access to all the books, papers and documents that relate to the business of 
 
 
71 
 
 the society and may summon and qualify as witness under oath and examine its 
 officers, agents and employees or other persons in relation to the affairs, transactions 
 and conditions of the society. 
 
 The expense of such examination shall be paid by the society examined, upon 
 statement furnished by the Superintendent of Insurance, and the examination shall 
 be made at least once in three years. 
 
 Whenever, after examination, the Superintendent of Insurance is satisfied that 
 any domestic society has failed to comply with any provisions of this Act, or is ex- 
 ceeding its powers, or is not carrying out its contract in good faith, or is transacting 
 business fraudulently: or whenever any domestic society, after the existence of one 
 yeatf or more, shall have a membership of less than 400 (or shall determine to dis- 
 continue business), the Superintendent of Insurance may present the facts relating 
 thereto to the Attorney-General, who shall, if he deem the circumstances warrant, 
 commence an action in quo warranto in a court of competent jurisdiction, and such 
 court shall thereupon notify the officers of such society of a hearing, and if it shall 
 then appear that such society should be closed, said society shall be enjoined from 
 carrying on any further business and some person shall be appointed receiver of such 
 society, and shall proceed at once to take possession of the books, papers, moneys and 
 other assets of the society and to distribute its funds to those entitled thereto. ^ 
 
 No such proceedings shall be commenced by the Attorney-General against any 
 such society until after notice has been duly served on the chief executive officers of 
 the society and a reasonable opportunity given to it, on a date to be named in said 
 notice, to show cause why such proceedings should not be commenced. 
 
 SECTION 25. (Application for Receiver, etc.) No application for injunction against 
 or proceedings for the dissolution of, or the appointment of a receiver for any such 
 domestic society, or branch thereof, shall be entertained by any court in this State 
 unless the same is made by the Attorney-General. 
 
 SECTION 26. (Examination of Foreign Societies.) The Superintendent of Insur- 
 ance, or any person whom he may appoint, may examine any foreign society trans- 
 acting or applying for admission to transact business in this State. The said Super- 
 intendent may employ assistants and he, or any person he may appoint, shall have 
 free access to all the books, papers and documents that relate to the business of the 
 society, and may summon and qualify as witness under oath and examine its officers, 
 agents and employes and other persons in relation to the affairs, transactions and con- 
 ditions of the society. He may, in his discretion, accept in lieu of such examination 
 the examination of the Insurance Department of the State, territory, district, province 
 or country where such society is organized. The actual expenses of examiners making 
 any such examination shall be paid by the society upon statement furnished by the 
 Superintendent of Insurance. 
 
 If any such society or its officers refuse to submit to such examination or to com- 
 ply with the provisions of the section relative thereto, the authority of such society 
 *o wf'to nw bu-iness in this State shnll be suspender! or license refused until satis- 
 factory evidence is furnished the Sunerintendent relating f o the condition and affairs 
 of the society, and during such suspension the society shall not write new business 
 in this State. 
 
 SECTION 27. (No adverse Publications.) Pending, during or after an examination 
 or investigation of any such society, either domestic or foreign, the Superintendent of 
 Insurance shall make public no financial statement, report or finding, nor shall he 
 permit to become public any financial statement, report or finding affecting the status, 
 standing or rights of ^ any such society, until a copy thereof shall have been served 
 upon such society at its home office, nor until such society shall have been afforded 
 a reasonable opportunity to answer any such financial statement, report or finding, 
 and to make such showing in connection therewith as it may desire. 
 
 SECTION 28. (Revocation of License.) When the Supterintendent of Insurance 
 on investigation is satisfied that any foreign society transacting business under this 
 Act has exceeded its powers, or has failed to comply with any provisions of this 
 Act, or is conducting business fraudulently, or is not carrying out its contract in 
 good faith, he shall notify the society of his findings, and state in writing the grounds 
 of his dissatisfaction, and after reasonable notice require said society, on a date named, 
 to show cause why its license should not be revoked. If on the date named in said 
 
72 
 
 notice such objections have not been removed to the satisfaction of the said Superin- 
 tendent, or the society does not present good and sufficient reasons why its authority 
 to transact business in this State should not at that time be revoked, he may revoke 
 the authority of the society to continue business in this State. All decisions and 
 findings of the Superintendent made under the provisions of this section may be 
 reviewed by proper proceedings in any court of competent jurisdiction, as provided 
 in Section 16 of this Act. 
 
 Section 29 provides for the exemption of certain societies, such as the Masons, 
 Odd Fellows or Knights of Pythias (exclusive of the Insurance Department) and 
 the Junior Order of United American Mechanics (exclusive of the Beneficiary Degree 
 or Insurance Branch), and societies which limit their membership to any one hazardous 
 occupation, of to similar societies which do not issue insurance certificate, nor to an 
 association of local lodges of a society now doing business in this State which pro- 
 vides death benefits not exceeding five hundred dollars to any one person, or dis- 
 ability benefits not exceeding three hundred dollars in any one year to any one per- 
 son, or both, nor to any contracts of re-insurance business on such plan in this State, 
 nor to domestic societies which limit their membership to the employes of a particular 
 city or town, designated firm, business house or corporation, nor to orders or asso- 
 ciations of a purely religious, charitable and benevolent description which do not pro- 
 vide for a death benefit of more than one hundred dollars or for disability benefits of 
 more than one hundred and fifty dollars to any one person in any one year. 
 
 Section 29 also provides that any fraternal benefit society heretofore organized and 
 incorporated and operating within the definition set forth in Sections I, 2 and 3 
 of this Act and providing for benefits in case of death or disability resulting solely from 
 accidents, but which does not obligate itself to pay death or sick benefits, may be licensed 
 under the provisions of this Act, and shall have all the privileges and shall be subject 
 to all the provisions and regulations of this Act, except that the provisions of this Act 
 requiring medical examinations, valuations of benefit certificates, and that the certificate 
 shall specify the amount of benefits, shall not ap-ply to such society. 
 
 Section 30 provides that every fraternal benefit society organized or licensed under 
 this Act is hereby declared to be a charitable and benevolent institution, and all of its 
 funds shall be exempt from all and every State, county, district, municipal and school 
 tax, other than taxes on real estate and office equipment. 
 
 Section 31 provides for penalties for the violations of any of the provisions of 
 the Act. 
 
 . Section 32 repeals all Acts or parts of Acts inconsistent with this Act. 
 
 To July i, 1913, the "New York Conference Bill" had been enacted into law by 
 Arizona, Connecticut, Idaho, Michigan, New Hampshire, New York, North Carolina, 
 North Dakota, Rhode Island, Tennessee, Texas, Wisconsin, and Wyoming 13. 
 
 To the same date the "Mobile Bill" (which does not include Section 23b, but 
 requires annual valuation and triennial improvement of 5 per cent if degree of sol- 
 vency is below 90 per cent) had been enacted into law by Alabama, California, 
 Colorado, Louisiana, Maryland, Missouri, Montana, Ohio, Oregon, Utah, and Wash- 
 ington II. 
 
 Massachusetts had enacted a law virtually the same as the "Mobile Bill," ex- 
 cepting 233 i. 
 
 The "N. F. C. Uniform Bill" had been enacted into law by Indiana, Iowa, Maine, 
 Minnesota, Oklahoma, and Vermont 6. 
 
 The "Mobile Bill" was in force by department rulings in Mississippi and South 
 Carolina 2. 
 
 There is no provision for valuation in the "N. F. C. Uniform Bill," but there is 
 a provision which enables the Commissioner to call for "such further information as 
 he deems necessary to a proper exhibit of its business and plan of working," and in 
 the exercise of this authorized discretion it is understood that the Commissioners 
 
73 
 
 of the six States where that bill is the law will demand a valuation report. There- 
 fore, beginning with 1914, the fraternal societies doing business in the thirty-three 
 above named States, must report valuation results as of December 31, 1913, and 
 annually thereafter, and the results must be made known to the membership. 
 
 On good authority, it is stated that all commissioners belonging to the National 
 Convention of Insurance Commissioners (which will probably include the commis- 
 sioners of all of the States) will use the Uniform Fraternal Blank for annual re- 
 ports, which will require valuation returns. Hence it appears that there will be 
 a general demand in 1914 for the valuation of all fraternal beneficiary societies now 
 doing business in the United States, since all commissioners have the discretionary 
 power to call for "further information." 
 
 The States not above enumerated have general laws or exemption laws in respect 
 of fraternal societies, and it is anticipated that all, or at least the most, of the States 
 will soon have on their statute books a uniform bill known as the New York Con- 
 ference Bill. 
 
 There have been no material changes in the laws of the Dominion or the Provinces 
 of Canada, but the Government at Otawa is now considering the advisability of 
 recommending to the Parliament the passage of a law similar to that of the New 
 York Conference Bill, or at least which will provide for valuations of certificates. 
 There was special legislation in the Province of Ontario for the benefit of the Inde- 
 pendent Order of Foresters, and which is virtually the charter of that organization. 
 Under that charter the readjustment of the old class of members who entered the 
 society prior to 1898 was made and has created considerable friction between the 
 Independent Order of Foresters and some Insurance Departments, especially that 
 of Wisconsin. It appears that what is permissible under the Act of Ontario is not 
 allowed in the State of Wisconsin. At least that is the representation made by the 
 Insurance Commissioner of that State. At this writing there is an unfortunate con- 
 tention between the Insurance Commissioner of Wisconsin and the Independent 
 Order of Foresters, and it now appears that several other commissioners will join 
 with the Commissioner of Wisconsin in certain demands upon the Society, which 
 are resisted by the officials of that organization. Otherwise than this difference it 
 would appear that all of the fraternal beneficiary societies and the insurance com- 
 missioners are agreed upon the provisions of the uniform bill as hereinbefore set forth. 
 
 Not only has there been an agreement upon the provisions for State legislation, 
 but there was a consummation of fraternal amity by the consolidation of the National 
 Fraternal Congress and the Associated Fraternities into one organization to be known 
 as the National Fraternal Congress of America. This most desirable and commend- 
 able act resulted from a meeting of both associations during the same week in the 
 city of Chicago, in August, 1913. There still remains the independent organization 
 known as the Federated Fraternities. Though requests have been made, I have not 
 been furnished with the proceedings of that organization, and unfortunately my 
 engagements have been such that I have been unable to attend the meetings either 
 in 1913 or in previous years. For sixteen years I have attended the annual sessions 
 of the National Fraternal Congress and with one exception have also attended the 
 annual meetings of the Associated Fraternities of America. I have had closer rela- 
 tions with the National Fraternal Congress and have been honored with representa- 
 tion on its Committee on Statutory Legislation, as well as being appointed as a 
 special representative in the many conferences held with the Insurance Commissioners 
 in conjunction with the representatives of the Associated Fraternities. I have been 
 cordially received into the meetings of both of these National Associations during 
 
74 
 
 the ten years when they were not agreed upon public policy. I have read many papers 
 before both organizations and have tried to do my part, not only in securing proper 
 legislation for the fraternal systems, but in establishing rates of contribution that 
 would provide for the benefits promised. 
 
 I have quoted liberally from the proceedings of the National Fraternal Congress 
 up to 1901, but have passed over the ten years when there was contention between 
 the fraternal forces. While there was little real progress towards desirable legisla- 
 tion during that period, nevertheless there were many things accomplished by co- 
 operation between the two national bodies and the Convention of Insurance Com- 
 missioners and probably the time was not lost considering the accomplishment in 1910 
 in the way of the Mobile Bill and in 1912 in the agreement upon the New York 
 Conference Bill, which latter was not only agreed to by the National Fraternal Con- 
 gress and the Associated Fraternities of America and the National Convention of 
 Insurance Commissioners, but as well by the Federated Fraternities. 
 
 However, the part played by the Associated Fraternities was that of the leading 
 character during the eventful decade, 1901-1911, and this history would not be com- 
 plete without some reference to its policies and personnel. 
 
 The President of the first annual meeting, Mr. C. H. Robinson, was a man of 
 culture who had made an enviable reputation as a lawyer and lawmaker in Iowa 
 before identifying himself with the Brotherhood of American Yeomen. 
 
 The first Secretary, Mr. Edmund Jackson, had been connected with active fra- 
 ternal work until he was generally and favorably known as a man worthy to become 
 a leader in the new movement. He was then Secretary of the Mystic Workers of 
 the World. 
 
 There were few Societies amongst those represented at the first annual meeting 
 that had been in business for ten years, but there were many intelligent and earnest 
 men amongst the representatives. The following names will be recognized as those 
 of faithful and successful officials of well-known Fraternal Beneficiary Societies : 
 G. H. Slocum, John J. Coyle, C. B. Paul, George R. McKay, J. E. Williams, James 
 M. Godell, B. W. Blanchard (editor and writer and chicken fancier), A. L. Craig, 
 Frederick Gaston, J. L. Rose, G. J. Eblen, Orman Kennedy, J. H. Burtner, E. E. 
 Burson, J. F. Taake, T. B. Hanley, E. L. Balz, Lee W. Squier, C. B. Gardner, W. R. 
 Eidson, George A. Scott, J. C. Desaulmiers, and Henri Roy. At the succeeding meet- 
 ing there came into prominence William Koch, W. E. Davy, Robert Rexdale, Miss 
 Annie O'Connor, J. S. Dailey, Chas. F. Hatfield, M. L. Campbell, H. E. V. Porter, 
 G. L. Peterson, J. L. Mitchell, N. J. Hein, J. F. Sherer, E. W. Donovan, Hugh R. 
 Moffit, and C. E. Corlett 
 
 Each meeting was an interesting one. Valuable papers and intelligent discussion 
 never failed to make the annual Conventions notable. From the beginning valuation 
 and adequate rates were popular topics. There was opposition to what was charac- 
 terized as the "Force Bill" of the National Fraternal Congress, but there was no 
 opposition to the proper provision for benefits promised. 
 
 The Associated Fraternities adopted a "Uniform Bill" and urged it vigorously 
 as a substitute for that advocated by the National Fraternal Congress. 
 
 The Insurance Commissioners generally stood with the Congress and the Congress 
 Bill was enacted into law in several States during the decade 1901-1910. 
 
 On the whole, little progress was made in securing desirable legislation during 
 the ten years because of the disagreement between these two National Fraternal Organ- 
 izations. 
 
75 
 
 Each year there were conferences between the representatives of the National 
 Fraternal Congress, the Associated Fraternities and the Convention of Insurance 
 Commissioners, and sometimes there was a tentative truce and sometimes there were 
 discouraging dissensions. 
 
 The Commissioners would become impatient and undertake to draft their own 
 Uniform Bill, and once (at Baltimore, in 1903) framed a bill which made the Actuaries' 
 Combined Experience Table of Mortality the standard for "minimum." rates. 
 
 There arose such differences over the question of rate legislation that several so- 
 cieties withdrew from the National Fraternal Congress and became identified with 
 Associated Fraternities of America. Amongst them were the Woodmen of the World 
 and the Modern Woodmen of America, two of the largest Societies in America. 
 
 I witnessed division amongst my friends and clients, and, though to my disadvan- 
 tage in a business way, my convictions forced personal participation in the debates 
 as well as in the conferences, and thereby at least I had the advantage of first-hand 
 knowledge of all circumstances and conditions affecting and incident to the Fraternal 
 System during this turbulent period. 
 
 My purpose from the beginning of my activity was to benefit the cause, and in 
 carrying out this purpose I have often done and said things which resulted in the loss 
 of patronage of Societies whose officials were close and esteemed friends. I men- 
 tion this fact to indicate the spirit of the times in that a man should become thus 
 involved who never had any official connection with any Society and whose pro- 
 fessional interest would have been conserved best by maintaining pleasant business 
 relations with all factions. 
 
 While not always in complete accord with the majority in the National Fraternal 
 Congress, yet I conscientiously believed that it could accomplish greatest good for the 
 Fraternal System and therefore I supported its policies. Notwithstanding this atti- 
 tude, the Associated Fraternities of America always welcomed me to their meetings 
 and, by invitation, I furnished papers for their proceedings and took part in their 
 deliberations, and served many of the constituent Societies as an Actuary. This is 
 recorded as an expression of appreciation. 
 
 From "Statistics Fraternal Societies," published by the Fraternal Monitor, and 
 giving returns to January i, 1913, I extract the following concerning Fraternal Ben- 
 eficiary Societies : 
 
 Number of Beneficial Members 7,451,735 
 
 Number of Social Members 420,848 
 
 Total Number of Members 7,872,583 
 
 Total Number of Lodges 1 16,732 
 
 Protection in force January i, 1913 $9,128,191,000 
 
 Benefit paid in 1912 95,341,585 
 
 Total Assets : 191,278,819 
 
 Total Liabilities 21,408,506 
 
 Total Income in 1912 128,156,023 
 
 Total Disbursements in 1912 109,370,581 
 
 Members Introduced in 1912 963,494 
 
 Protection written in 1912 $974.795,50 
 
 Following is a list of the Societies doing business in 1912, and the years in which 
 they were organized : 
 
 Date organized. 
 
 Order Brith Abraham (U. S. Grand Lodge) 1859 
 
 L'Union St. Joseph du Canada 1863 
 
76 
 
 Catholic Family Protective Association 1868 
 
 United Workmen, Ancient Order of 1868 
 
 *Masonic Mutual Life Association 1869 
 
 Independent Order Free Sons of Israel 1871 
 
 United Workmen, Ancient Order of (New York) 1873 
 
 Artisans' Order of Mutual Protection 1873 
 
 Knights of Honor 1873 
 
 . Brotherhood of Local Firement and Enginemen 1873 
 
 *Odd Fellows Relief Association of Canada. 1874 
 
 ""Independent Order of Foresters 1874 
 
 United Workmen, Ancient Order of (Illinois) 1875 
 
 *United Order of Golden Cross 1876 
 
 ^Catholic Mutual Benefit Association 1876 
 
 *United Workmen, Ancient Order of (Minnesota) 1877 
 
 *Catholic Knights of America 1877 
 
 *Royal Arcanum 1877 
 
 *Societe des Artisans Canadiens-Francais, La 1877 
 
 Knights and Ladies of Honor 1877 
 
 "Knights of Pythias (Insurance Department) 1877 
 
 ^Western Catholic Union 1877 
 
 ^Improved Order of Heptasophs 1878 
 
 -Order of Mutual Protection 1878 
 
 Order of Scottish Clans 1878 
 
 *United Workmen, Ancient Order of (Washington) 1879 
 
 United Workmen, Ancient Order of (Kansas) 1879 
 
 ^United Workmen, Ancient Order of (Ontario) 1879 
 
 United Workmen, Ancient Order of (Massachusetts) 1879 
 
 *United Order of the Pilgrim Fathers 1879 
 
 Iowa Legion of Honor ' 1879 
 
 -Legion of Honor of Missouri ; 1879 
 
 *Roman Catholic Mutual Protective Society * 1879 
 
 Mutual Aid Society of the German Lutheran Synod 1879 
 
 Massachusetts Catholic Order of Foresters 1879 
 
 Canadian Order of Foresters 1879 
 
 "T)rder of Sparta 1880 
 
 *Catholic Mutual Benefit Association of Canada 1880 
 
 *Polish National Alliance 1880 
 
 *National Union 1881 
 
 *Knights of the Modern Maccabees 1881 
 
 Knights of Father Mathew 1881 
 
 Catholic Benevolent Legion 1881 
 
 *German Roman Catholic Knights of St. George 1881 
 
 515 Knights of Columbus 1882 
 
 German Baptists' Life Association . 1883 
 
 * Modern Woodmen of America 1883 
 
 *Knights of St. John and Malta 1883 
 
 *Catholic Order of Foresters 1883 
 
 "'Knights of the Maccabees of the World 1883 
 
 *Legion of the Red Cross ,.... 1883 
 
 Brotherhood of Railroad Trainmen 1883 
 
 *Royal League 1883 
 
 *Royal Templars of Temperance (Canada) 1884 
 
 Order of Canadian Home Circles 1884 
 
 *Workmen's Sick and Death Benefit Fund of the U. S. A 1884 
 
 Fraternal Mystic Circle 1885 
 
 Catholic Knights of Wisconsin 1885 
 
 Christian Burden Bearers' Association 1885 
 
 *Shield of Honor 1885 
 
 Order of Canadian Home Circle 1885 
 
 Grand Fraternity, The 1886 
 
 *Ladies of the Modern Maccabees 1886 
 
77 
 
 ^Empire State Degree of Honor 1886 
 
 United Workmen, Ancient Order of (Nebraska) 1886 
 
 *Protected Home Circle 1886 
 
 *Degree of Honor, A. O. U. W. of Kansas 1887 
 
 Independent Order of B'rith Abraham 1887 
 
 Canadian Order of Chosen Friends 1887 
 
 *New England Order of Protection 1887 
 
 United, Commercial Travelers, Order of 1888 
 
 *United Workmen, Ancient Order of (South Dakota) 1889 
 
 *Loyal Association 1889 
 
 Indeepndent Order Free Sons of Judah 1890 
 
 National Slavonic Society of U. S. A 1890 
 
 *Ladies' Catholic Benevolent Association . . 1890 
 
 Catholic Knights and Ladies of America 1890 
 
 *Woodmen of the World (Pacific Jurisdiction) 1890 
 
 Brotherhood of America 1890 
 
 ^Fraternal Aid Association 1890 
 
 .^JSTational Protective Legion 1890 
 
 *Woodmen of the World (Sovereign Camp) 1891 
 
 Order of the Amaranth 1891 
 
 United Aid 1891 
 
 ^Women's Catholic Order of Foresters 1891 
 
 *U. S. Letter Carriers' Mutual Benefit Association 1891 
 
 Catholic Knights of Ohio 1891 
 
 United Workmen Ancient Order of (New Jersey) 1892 
 
 ^Knights and Ladies of Security 1892 
 
 United Workmen, Ancient Order of (Oklahoma) 1892 
 
 ^German Beneficial Union 1892 
 
 Bohemian Salvonian Union . . 1892 
 
 *Ladies of the Maccabees of the World 1892 
 
 Union Fraternal League 1893 
 
 American Benefit Society 1893 
 
 Catholic Relief and Beneficiary Association 1893 
 
 Loyal Mystic Legion of America 1893 
 
 Independent Scandinavian Workingmen's Association 1893 
 
 ^United Order of Foresters 1893 
 
 'Alliance Nationale 1893 
 
 Workmen's Benefit Association 1893 
 
 Woodmen of the World (Canadian Order) 1893 
 
 United Workmen, Ancient Order of (Iowa) 1893 
 
 *Ben-Hur, Supreme Tribe 1894 
 
 American Insurance Union !894 
 
 *Ancient Order of Gleaners 1894 
 
 '"United Artisans 1894 
 
 *National Benevolent Society 1894 
 
 Continental Beneficial Association 1894 
 
 United Workmen, Ancient Order of (West Virginia) 1895 
 
 -""Loyal Guard, The 1895 
 
 "Life and Annuity Association 1895 
 
 Royal Neighbors of America 1895 
 
 North American Union 1895 
 
 United Workmen, Ancient Order of (N. Dakota) 1895 
 
 *Court of Honor 1895 
 
 v Order of Columbian Knights 1895 
 
 ^Catholic Women's Benevolent Legion 1895 
 
 v Woodmen Circle 1895 
 
 United Benevolent Association 1895 
 
 *Fraternal Brotherhood 1896 
 
 *Mystic Workers of the World 1896 
 
 Order Knights of Joseph 1896 
 
 *Degree of Honor, Superior Lodge 1896 
 
78 
 
 *Royal Highlanders . . 1896 
 
 *Fraternal Union of America 1896 
 
 Eastern Star Benevolent Fund of America . . . 1896 
 
 Catholic Ladies of Columbia . 1896 
 
 Occidental Mutual Benefit Association 1896 
 
 *Loyal Americans of the Republic 1896 
 
 ^Association Canado-Americaine 1896 
 
 *Sons and Daughters of Justice 1897 
 
 *Modern American Fraternal Order 1897 
 
 *Brotherhood of American Yeomen 1897 
 
 *Women of Woodcraft 1897 
 
 ^Modern Brotherhood of America 1897 
 
 *Mutual Protection League 1897 
 
 Modern Samaritans 1897 
 
 Western Bohemian Fraternal Association 1897 
 
 *Equitable Fraternal Union 1897 
 
 Patricians, The 1897 
 
 *New Era Association 1897 
 
 Royal Benefit Society ^1897 
 
 Order of the Iroquois 1898 
 
 *Yeomen of America 1898 
 
 United Workmen, Ancient Order of (Arkansas) 1898 
 
 "Modern Order of Pratetorians 1899 
 
 *Home Guards of America !899 
 
 Fraternal Reserve Life Association 1899 
 
 *Mystic Toilers 1899 
 
 North Star Benefit Association 1899 
 
 Daughters of Columbia 1899 
 
 United American Mechanics, Jr. Order (Ben. Deg.) 1899 
 
 Order of the White Cross 1900 
 
 Catholic Benevolent League of Indiana 1900 
 
 United Order of the Golden Star 1900 
 
 Fraternal Benefit League 1900 
 
 Workmen's Circle 1900 
 
 L'Union St. Jean-Batiste d'Amerique 1900 
 
 *Fraternal Bankers' Reserve Society 1901 
 
 "Heralds of Liberty - 1901 
 
 Gold Reserve Life Association 1901 
 
 American Woodmen 1901 
 
 *Vesta Circle 1901 
 
 United Amer. Mechanics, Jr. Order (Funeral Ben. Dept.) 1901 
 
 United Workmen, Ancient Order of (Conn.) 1901 
 
 Beavers Reserve Fund Fraternity 1902 
 
 Order of the Golden Seal 1902 
 
 "'National Americans : 1902 
 
 ^National Fraternal League 1902 
 
 ^Fraternal Reserve Association 1902 
 
 *Aid Association for Lutherans 1902 
 
 *Independent Order of Puritans 1903 
 
 Lone Star Insurance Union 1903 
 
 American Stars of Equity 1903 
 
 ^Columbian Woodmen 1903 
 
 Lincoln Annuity Union 1903 
 
 Modern Romans 1904 
 
 Kinsmans Mystic Senate 1904 
 
 ^Farmers' Life Insurance Association 1905 
 
 Knights of Industry 1906 
 
 Independent Workmen's Circle 1906 
 
 ""Homesteaders, The 1906 
 
 National Home Guard 1906 
 
79 
 
 Daughters of America 1907 
 
 Order of Aztecs 1907 
 
 National Fraternal Society of the Deaf 1907 
 
 Union Fraternal Association 1908 
 
 Home Watchmen of the World 1908 
 
 *Benevolent Knights of America 1008 
 
 Texas Commercial Union 1908 
 
 *American Workmen 1909 
 
 ^Southern Benevolent League 1909 
 
 Columbian Fraternal Association 1910 
 
 *Our United Brotherhood - - 191 T 
 
 *Cycle of Equity 1911 
 
 Southern Woodmen . . . J 9i x 
 
 *Societies that have employed Mr. Landis. The following 1 have also engaged his 
 services as an actuary, though their names do not appear in the Monitor list, making 
 a total of 143 that he has served in a professional capacity. 
 
 *The Sailors. 
 
 ^Colorado Grand Lodge Degree of Honor. 
 
 ^International Liberty Union. 
 
 ^Independent Order Shield of Honor. 
 
 *St. Lawrence Life. 
 
 ^Common Brotherhood of America. 
 
 *Young Men's Mutual Life Association. 
 
 *U. S. Civil Service Retirement Association. 
 
 *American Union. 
 
 *International Ladies' Garment Workers' Union. 
 
 independent Western Star Order. 
 
 *Guild of the East. 
 
 ^National Protective Association. 
 
 *Catholic Knights of Illinois. 
 
 *Loyal Protective Ins. Co. 
 
 *United Order Hotel Workmen. 
 
 *Knights of Agriculture. 
 
 ^United National Association of P. O. Clerks. 
 
 ^Southern Ins. Union. 
 
 *U. S. Postoffice Clerks' Mutual Benefit Association. 
 
 *Birds of Freedom. 
 
 "Methodist Ministers' Relief Association. 
 
 *Modern Protective Association. 
 
 '"Fraternal Relief Association. 
 
 ^National Annuity. 
 
 *National Mutual Relief Association. 
 
 *Masons' Annuity. 
 
 *The Pathfinders. 
 
 '"American Guild. 
 
 *Keystone Guard. 
 
 *Mason's Mutual Aid Association. 
 
 *National Creation Society. 
 
 *Mutual Aid Society of Lutherans. 
 
 *A. O. U. W. Grand Jurisdiction of Tenn. 
 
 *Army Aid Association. 
 
 *Stork Fraternal Society. 
 
 * Washington League of Knights and Ladies. 
 
 ^Highland Nobles. 
 
 *Railway Postal Clerks' Association. 
 
 *Western Commercial Travelers' Association. 
 
 *The Americans. 
 
 *Modern Knights of the American Home. 
 
 *Methodist Benevolent Association. 
 
 *Lmcoln Fraternal Union. 
 
80 
 
 LIFE INSURANCE COMPANIES. 
 
 Running through the entire history of the development and supervision of Fra- 
 ternal Beneficiary Societies there is prominent the sentiment amongst fraternal 
 officials that the regular life companies "the Old Line Companies" are continually 
 lying in wait for the destruction of the Fraternal System. 
 
 The fraternal speakers and writers of papers, as seen from many previous quota- 
 tions, characterize the life companies as "our common enemy," as "our natural 
 enemy," as "our insidious foe," as "the instigator of ruinous legislation," as "a secret 
 enemy always to be watched." 
 
 Even the judicial mind of Chairman Butler was influenced by the prevailing senti- 
 ment and uttered warnings against the life companies as the ever-present and con- 
 trolling power over commissioners and legislators to the injury of fraternal orders, 
 notwithstanding his candid admission that he had no evidence to support his suspicions. 
 
 For twenty-five years I have given exclusive attention to the interests of Fraternal 
 Beneficiary Societies, but I have not neglected the opportunity to cultivate the 
 acquaintance and seek the friendship of the actuaries of the life companies, and I 
 have met and known many of the executive officers of those companies. Like Chair- 
 man Butler, of the Committee on Legislation, I have never been able to find any 
 evidence that the life companies desired or connived at the ruin of Fraternal Bene- 
 ficiary Societies ; unlike Brother Butler, I have never suspected something unsup- 
 ported by evidence. 
 
 The facts are that the executive officers of life companies have given very little 
 thought to the Fraternal Beneficiary Societies. They know in a general way of the 
 existence of fraternal orders, but the fraternal people would be surprised to learn 
 how little they really know of the work of these great provident institutions, and 
 what little consideration they have given to them. 
 
 The idea of antagonism has arisen from the action of field men and the insurance 
 press which has followed agency criticism. 
 
 Those who live by commissions on business written necessarily must get business 
 to live, and they have taken advantage of the defects and weaknesses of the fraternals 
 to criticise them and divert business from them. It is the exception when the 
 management of a life company has supported or encouraged the attacks made by 
 agents, or the criticism indulged by the insurance papers. 
 
 But in respect of the action and attitude of the agents and insurance papers 
 have they in fact misrepresented the Fraternal Societies? Have not the Societies 
 given cause for criticism and laid themselves liable to attack? 
 
 Instead of pleading the baby-act, would it not have been better to have removed 
 the cause of criticism and manfully met competition on a business basis? 
 
 Would it not have been better for the Societies that all of us, who have at heart 
 their real interests, should have long ago acknowledged defects and sought their 
 remedy rather than to complain of criticism and yet continue wrong methods? 
 
 Should we not, years ago, have acknowledged that the Societies were doing a life 
 insurance business, instead of straining after distinguishing differences that would 
 not stand the test of common sense analysis? 
 
 Should we not, years ago, have recognized the common sense principle that busi- 
 ness methods alone will assure the success of a business enterprise, and have gone 
 about this business of life insurance in a business-like way, and have prepared our 
 organizations for any legitimate business competition, as well as have prepared our 
 organizations for the performance of their promises? 
 
81 
 
 In the eventful year of 1901 I urged upon the attention of the National Fraternal 
 Congress the necessity for valuation for taking an account of assets and liabilities 
 but my urgency was of no avail. The fraternal managers waited until conditions 
 forced the agreement, at Mobile in 1910, concerning valuation. 
 
 Four years after 1901 I made an effort to secure action looking to legislation 
 that would permit Juvenile Insurance, and the Committee on Statistics and Good of 
 the Orders prepared a report from facts given by me, urging this matter upon 
 the attention of the Congress; but fraternal managers passed it by, until now condi- 
 tions make the need of it felt. 
 
 And now comes up the matter of "Group Insurance," and instead of recognizing 
 its good features and securing legislation that will prevent Fraternal Beneficiary 
 Societies from entering upon that method of granting protection, we hear nothing 
 but criticism, and the old, old cry that it is a scheme of the "Old Line Companies" 
 to ruin the Fraternal Socieies. 
 
 My faith in the Fraternal System is so strong that I believe Fraternal Beneficiary 
 Societies can adopt contribution rates as high as the highest premium rates of any 
 life company and can do business under them ; that they can bring their financial 
 position to the valuation standard required of life companies; that they can make 
 a greater success with child insurance and group insurance than can the life companies. 
 
 My faith in the Fraternal System is so strong that I believe that they can do 
 without legislative favors and exemptions on the assumption and under the pretense 
 of being "charitable and benevolent institutions" (see N. Y. Conference and other 
 Uniform Bills) in respect of their funds and their insurance business. 
 
 Why this faith? 
 
 Because mutual cooperation is of the very essence of insurance protection and 
 the most complete and effective cooperation is possible through the means at the 
 command of the Fraternal Beneficiary Societies. 
 
 The life company organization is entirely void of the inherent power and cohesive 
 character of the fraternal society. 
 
 Having had to do with the attempt at reconstructing the financial methods of more 
 than one hundred of these societies, I am in position to speak advisedly of the 
 advantages (and sometimes disadvantages) of local lodges, ritualistic forms and rep- 
 resentative government. 
 
 My faith is based upon facts as I have dug them out of the experiences of these 
 societies through personal investigation, and as I have obtained them from the in 
 vestigations of others. 
 
 From my viewpoint, there is no doubt of the superior strength and efficiency given 
 to cooperation through sound and safe business methods being combined with the 
 fraternal, social and charitable features of the provident societies. 
 
 The adoption of "Group Insurance" by purely business corporations is convincing 
 evidence of the appreciation by shrewd business men of the desirability of com- 
 munity cooperation. 
 
 Why managers and members of Fraternal Beneficiary Societies neglect the full 
 advantage of such a combination of business and fraternity as is within their grasp 
 will remain one of the mysteries of development and progress through human agencies. 
 
 It is not altogether clear in my own mind that I should have written this preface 
 to the chapter of comments on Life Insurance Companies. Pertinent or not, I will 
 let it stand. 
 
82 
 
 HISTORICAL. 
 
 A detailed history is not intended ; only brief references to the past shall 'be made 
 in order to give the reader some idea of the -period covered by the business of insur- 
 ance in general and of life insurance in particular, and to establish the fact that 
 the business itself is very simple and had its origin, not among the learned nor the 
 "Napoleons of Finance," but among the common, working people. The conception 
 of life insurance was not in the brain of any great philosopher, but came to the 
 mind of the meek and lowly from promptings of brotherly love. It was not a product 
 of the head, but of the heart. 
 
 Like religion and charity, insurance has been much abused, largely misused and 
 greatly diverted from its original purpose of benefiting the masses through mutual 
 cooperation. 
 
 The proper application of the principle of cooperation to life insurance has never 
 been thoroughly understood by all who have appreciated the great power of the 
 principle itself. This ignorance has been the cause of many failures of well-inten- 
 tioned projects, as well as the cloak for hundreds of fraudulent schemes and specula- 
 tive and disastrous ventures. 
 
 Through cooperation large sums can be accumulated by small contributions from 
 each of a great many subscribers. If, by any means, a few persons can induce many 
 other persons to favor them with such contributions, it is possible for each of the 
 few to become enriched without any great burden upon or sacrifice from the many. 
 
 Again, if many persons will each make a small contribution to a general fund, 
 and have such fund judiciously invested and managed, it is possible to so improve 
 it as to give larger returns to each subscriber than he could have realized from 
 earnings on the amount of his original contribution when separately invested. 
 
 Just as it is possible for a number of men uni'ted to do what one cannot per- 
 form, so, within limits, the aggregate use of many dollars will enable persons to take 
 advantage of opportunities for investment and profit which are entirely beyond those 
 who have only one dollar. 
 
 Recognition of the last proposition brought about Savings Banks, Building and 
 Loan Associations and similar provident institutions. 
 
 Recognition of the first proposition has been responsible for some of the best and 
 some of the worst cooperative organizations conceivable. 
 
 Where the suffering few have been relieved by the benevolent many immeasurable 
 good has resulted. 
 
 Where the greedy and selfish few have profited by the pennies, nickles and dimes 
 squeezed from the hard earnings of the impoverished many the most damnable of 
 outrages have been perpetrated. 
 
 Life insurance has 'been established upon that principle of cooperation where the 
 many contribute for the benefit of the few and whether or not the business of life 
 insurance is of public utility or detriment depends upon the character of the few 
 who profit from the contributions of the many. 
 
 When the few are widows and orphans saved from penury and want, then un- 
 qualified good comes from the contributions of the many. 
 
 The science of probabilities furnishes the basis for computations that render the 
 business of life insurance safe and successful, and it requires very little alteration 
 in mathematical formulas to make them apply as well to gambling and speculative 
 contracts as to the chance of paying a death claim under an agreement that would 
 alone benefit women and children. 
 
83 
 
 When the science of chances and probabilities is employed to work out a scheme 
 of mutual cooperation where indemnity for loss of support through the death or 
 disability of the wage-earner is the prime object to be attained, then the result of 
 operation makes it possible for men of limited means to assure protection to their 
 families against want and deprivation, though life or health fail before other pro- 
 vision has been made for them. 
 
 When the same science is employed in the formulation of plans where the chances 
 to benefit are in favor of the wealthy who are able to persist to the end of a tontine 
 or accumulation period when a distribution of forfeited payments is made, then 
 the result of operation degenerates into a gamble and demoralizing speculation. 
 
 I wish that space were alloted and the patience of close reading assured for a com- 
 prehensive presentation of the effects of cooperative effort during the last two hun- 
 dred years. 
 
 The scope of the present-day insurance is broad and comprehensive, but we are 
 not yet returned to the point of reckless risk which characterized the business in 
 England just prior to the "Bubble Act" of 1/19. Cornelius Walford thus describes that 
 extravagant era of taking chances. 
 
 We should simply subject ourselves to the charge of romancing if we were, thus 
 early, to rend aside the veil of a century, and assert the existence of companies for 
 Insuring against Housebreakers and Highwaymen against lying, or death by drink- 
 ing Geneva! Yet the climax of that period (the era of the South Sea Bubble) was 
 only reached by a scheme in "Change Alley" for the insurance of female chastity, 
 and another against divorces! 
 
 Walford designates the period from 1608 to 1760 as the era of "Speculative Assur- 
 ance." It is worth while to give an idea of those times by quoting what he says of 
 them : 
 
 That which strikes the historical reader as one of the most remarkable features 
 of the times is the purposes for which many of the so-called Assurance Offices were 
 got up. Here we find "A Mutual Assurance Company was formed to aid an adven- 
 turer with funds to raise a vessel which, laden with the treasures of the East, had 
 been lost on her passage home; the peculiar features of the transaction being that 
 if any of the association should die before the object was accomplished, their share 
 was to be transferred to the remaining adventurers." This made the hazard a doubl- 
 one. Another company, having at its head three English peers, two bishops, four 
 Irish peers, with many eminent merchants and gentlemen, petitioned the king that 
 it might be incorporated for purchasing and improving forfeited and other estates 
 in Great Britain, for granting annuities, and for insuring lives; seeing this will (were 
 the words of the petition) unite by interest many of the King's subjects against the 
 Pretender and his adherents forever. 
 
 But the distinguishing feature of the age was the "gambling" tendency of nearly 
 all the offices. Under the title of "Insurance Wagers," every conceivable description 
 of speculation was entered into. On one day we find the offices wagering 30 
 against 100 that King William could not reduce the City of Namur before a given 
 date. The next, on the period of favor to be enjoyed by the mistresses of some 
 foreign potentate. And the third day, on the sex of the Chevalier D'Eton, whether 
 he was a male, as he pretended to be, or a female, as he was reputed to be. The 
 duration of the lives of persons believed to be on their death bed was a common 
 hazard; and the author of "Every Man His Own Brother" was not far wrong when 
 he said the dissolution of persons, who saw themselves insured in the public papers 
 at 90 per cent, was, not unlikely, hastened by such announcements. 
 
84 
 
 The "Gambling Act," in the reign of George III., put an end to such preposterous 
 undertakings. 
 
 It enacted that no insurance shall 'be made on the life of any person, or on any 
 event whatsoever, where the person on whose account it shall be made shall have 
 no interest, or by way of gaming or wagering; and that every such insurance shall 
 be null and void. It further provides that it shall not be lawful to make any policy 
 on the life of any person, or on any other event, without inserting therein, for 
 what use, or on whose account such policy is so made; and where the insured has an 
 interest in such life or event no greater sum shall be received from the insurer than 
 the amount of the interest of the insured in such life or event. 
 
 From 1760 to 1815 the time has been called the "Transition Period" of life in- 
 surance. 
 
 In 1762 the Equitable Society was organized in England with an effort at scientific 
 accuracy and for the purpose of protecting dependants from the loss of support by 
 the death of the breadwinner. The contracts of insurance were entirely devoid of any 
 investment, speculative or gambling features, there being no other inducement to be- 
 come a member than the offer to pay a stated sum to named beneficiaries upon the 
 event of death. Several other companies and societies were started prior to 1815, 
 and an earnest investigation of mortality experiences was begun. Many friendly 
 societies were organized, and altogether this period was marked by honest endeavor 
 to place life insurance upon a sound, safe and conservative basis with an eye single 
 to the good of the members. The character of the business is reflected in the petition 
 for a charter of the Equitable Society when setting forth the purpose of the organi- 
 zation as follows: 
 
 That great numbers of H. M.'s subjects whose subsistence principally depends on 
 the salaries, stipends, and other incomes payable to them during their natural lives, 
 or on the profits arising from their several trades, occupations, labor and industry, 
 are very desirous of entering into a society for assuring the lives of each other, in 
 order to extend, after their decease, the benefit of their present incomes to their 
 families and relations, who may otherwise be reduced to extreme poverty and dis- 
 tress by the premature death of their several husbands, fathers and friends, which 
 humane intention the petitioners humbly apprehend cannot be effectually carried 
 into execution without H. M.'s Royal Authority to incorporate them for that purpose. 
 
 Walford designates the period of 1816-1844 as the "Golden Age of Assurance 
 Companies in Great Britain." Contrasting the period and the companies with those 
 that had gone before, he says : 
 
 To speak of this as the Golden Age of Assurance Companies may seem to dis- 
 parage those societies established at earlier dates. Our intention is not to do this. 
 Indeed, those early companies which are still existing speak for themselves; they 
 have all attained high positions despite the difficulties they had to encounter, and 
 the doubt which, for a time, surrounded them. Of those still earliest societies, which 
 have, happily, long since passed away, Dr. Price truly said that to call them imposi- 
 tions on the public, proceeding from ignorance, and supported by credulity and folly, 
 was "too gentle a censure." But we shall be fully able to justify our position by 
 a review of the advantages the companies of this period possessed over those which 
 preceded them. 
 
 These advantages may be ranged under several heads. First, and chiefly, the 
 more accurate data which scientific investigation had placed at their disposal. Next, 
 the rapid improvement which had been made, and was still taking place, in the mor- 
 tality of the kingdom. Third, the legislative encouragement which had then been 
 newly bestowed upon life assurance. And, lastly, as rising out of all these, the 
 improved public feeling which had set in in favor of such companies. 
 
85 
 
 Although two or three British companies accepted some American risks, and the 
 Pennsylvania Company for the Insurance of Lives and Granting of Annuities had 
 commenced business in 1812, yet the real beginning of life insurance in the United 
 States dates from the last year of this "Golden Age" in Great Britain, when the 
 Mutual Life of New York actively entered the field. By 1847 the New York Life, 
 New England Life, the Mutual Benefit, the State Life, the Connecticut Mutual, anc] 
 Penn Mutual had commenced business, and it may be said that life insurance opera- 
 tion in this country had been successfully started. 
 
 In England the business had so far progressed that designing persons recognized 
 the opportunity for turning it to selfish ends, and scores and hundreds of companies 
 were set afloat and the undertakings rivaled those of the previous century. Walford 
 stamps the period 1844-1862 as that of "Bubble Companies." He writes : 
 
 The period we have just passed over did much to popularize the practice of Life 
 Assurance in this country. The speculative companies of a former period had passed 
 out of memory. The principles of the existing offices were fast becoming consolidated ; 
 and the companies themselves recognized as amongst the most valued monetary 
 institutions of the country. The magnitude of their transactions was only equalled 
 or surpassed by those kindred institutions, banks : and the promptitude with which 
 they met their engagements deservedly placed them high in public confidence. It 
 was not to be supposed that such a state of things could long continue without a 
 "dark side." Those who know most of human nature know, and deplore, that the 
 best of institutions are the most liable to abuse. This has been proved more than 
 once in the history of Life Insurance. The favorable results which have been 
 achieved by sound management of the old offices more particularly the bonuses 
 of the equitable, which public rumor had extended even beyond their almost fabulous 
 reality, had, coupled with a want of popular and correct knowledge of the principles 
 and practice of Life Assurance, raised public expectation to a high pitch. To this 
 circumstance, combined with the unlimited confidence before referred to, must we 
 look for a solution of that blind reliance which was placed in many of the swindling 
 schemes which were brought forward in the earlier years of the period we are 
 entering on, and in the numerous abortive projects whose concoctors, after exhausting 
 the large funds placed at their disposal, have left their dupes to ascertain the extent 
 of their remaining liabilities through communications made to them by the officials 
 of the Court of Chancery. 
 
 In "Martin Chuzzlewit," Charles Dickens graphically describes the offices of one 
 of the "Bubble Companies," and gives an insight into the methods of business opera- 
 tion and the designs of the promoters. 
 
 Considerable space has been devoted to the early history, development and abuse 
 of life insurance in Great Britain, because American companies were formed upon 
 the English model, and naturally we could expect a repetition of the history, develop- 
 ment and abuse of the business in this country, since human nature is virtually the 
 same on both sides of the Atlantic. 
 
 It might be interesting and instructive to follow the history of the British com- 
 panies after the Act of 1870, and it would be a lesson for American policy-holders 
 to study a comparison that could be made between business managements of English 
 and American companies. However, attention will now be confined to conditions 
 in the United States, which directly and materially concern those for whom I am 
 writing. 
 
 Several companies did a life insurance business in a limited way prior to 1842, 
 but the real beginning was in 1843, when the Mutual Life of New York entered the 
 field with premium rates based upon the recently published English Table of Mor- 
 tality, which had been constructed (in 1838) from the combined experience of seven- 
 teen British and Scottish life offices. Up to 1861, at the beginning of the Civil War, 
 
86 
 
 twenty-seven life companies had been formed and were in active operation. Several 
 others had been chartered, and some of them were doing a local business, but the 
 following are worthy of mention, all but four of them (marked with *) being now 
 (1914) in operation. Two of the three, the New York Life Insurance & Trust Com- 
 pany and the Pennsylvania Company for Insurance of Lives and Granting Annuities, 
 never did a large life insurance business, and both finally discontinued that branch and 
 confined themselves to transactions as trust companies. The names, dates of organi- 
 zation and location of the twenty-seven follow : 
 
 Organized. 
 
 i. Presbyterian Minister's Fund, Philadelphia 1759 
 
 2.* Penna. Co. for Insur. of L. & Granting An., Philadelphia . . 1812 
 
 3.* N. Y. Life Ins. & Trust Co., New York City 1830 
 
 4. Mutual Life Insurance Co., New York City 1842 
 
 5. New York Life Ins. Co., New York City 1843 
 
 6. New England Mutual Life Ins. Co., Boston 1843 
 
 7. State Mutual, Worcester, Mass 1844 
 
 8. Mutual Ben. Life Ins. Co., Newark, N. J 1845 
 
 9. Conn. Mutual Life Ins. Co., Hartford, Conn 1845 
 
 10. Penn. Mutual, Philadelphia 1847 
 
 11. Union Mut. Life Ins. Co., Augusta, Me 1848 
 
 12. National Life Ins. Co., Montepelier, Vt. 1848 
 
 13.* Charter Oak Life Ins. Co., Hartford, Conn 1848 
 
 14. U. S. Life Ins. Co., New York City. 1850 
 
 15. Manhattan Life Ins. Co., New York City 1850 
 
 16. Berkshire Life Ins. Co., Pittsfield, Mass 1850 
 
 17. Mass. Mutual Life Ins. Co., Springfield, Mass 1851 
 
 18. Phoenix Mutual Life Ins. Co., Hartford, Conn 1851 
 
 19. Aetna Life Insurance Co., Hartford, Conn 1851 
 
 20.* Knickerbocker Life Ins. Co., New York City 1853 
 
 21. German Mutual, St. Louis, Mo 1857 
 
 22. Northwestern Mutual, Milwaukee, Wis 1857 
 
 23. Equitable Life Assurance Soc. of U. S., New York 1859 
 
 24.* Guardian Mutual Life Insurance Co., New York 1859 
 
 25. Washington Life Insurance Co., New York 1860 
 
 26. Home Life Insurance Co., New York 1860 
 
 27. Germania Life Ins. Co., New York 1860 
 
 The years between 1842 and 1861 constituted the "Formative Period" of life 
 insurance in the United States. The managers learned very little from the extended 
 experience of companies in England, and there was much ignorance in management in 
 respect of a sufficient accumulation for the protection of contracts. The taking of 
 premium notes was a popular feature. Dividend "credits," or "certificates," was 
 another feature that was condemned by experience. To indicate the crude notions 
 of an, adequate reserve the following is taken from the charter of the Home Life, 
 as published in the 1867 report of the New York Insurance Superintendent : 
 
 The net profits are to be ascertained annually and such a proiportion thereof as 
 the board may determine shall be applied towards the accumulation of a reserve 
 fund of $200,000, and the remainder shall be apportioned to participating policy-holders. 
 
 There were no effective laws requiring valuation, and those companies which 
 voluntarily made a valuation used six and seven per cent interest assumption. How- 
 ever, the companies were honestly and conservatively managed and remedies were 
 applied as defects were disclosed by experience and practical operation. 
 
 In the decade 1861-71 hundreds of new companies were projected and started and 
 the methods of the "Speculative Period" in England held sway. 
 
87 
 
 The Insurance Superintendent of the State of New York, George W. Miller, in 
 his report for the year 1871, under the heading of "Retrospective," wrote : 
 
 The last year has witnessed the continued development of the effects of the two 
 policies which have prevailed in the management of companies, and in the conduct 
 of the Insurance Department of this State. Prior to 1870 the business of life insur- 
 ance had experienced an extraordinary if not a forced and unnatural growth. Many 
 causes conduced to this result, among which was the policy, or want of policy in 
 the administration of this department. Every facility and inducement for the organi- 
 zation of new companies with small capital was held out, whilst little, if anything, 
 was done practically to prevent the inception and spread of practices and abuses 
 whic'h could lead to but one result insolvency. From this inevitably follows dis- 
 solution, disappointment and depression. The state of the country, the inflation of 
 the currency, and the general tendency to a profligate and abnormal conduct of all 
 kinds of business, required the exercise of extraordinary intelligence and vigilance in 
 the supervision of insurance, which unfortunately was not to be found in the New 
 York department. The companies flourished, the department flourished; even the 
 Superintendent flourished, and "all went merry as a marriage bell." Company after 
 company was organized, office after office was opened with a display of gilded signs 
 and luxurious furniture, which almost compelled the belief that the description of 
 them, in Dickens' Martin Chuzzlewit, was intended as a satire upon American rather 
 than British institutions. 
 
 The formation of companies, too many of which were faithfully photograp'hed by 
 Dickens, went on, until from seventeen which were doing business in this State upon 
 the organization of the department in 1860, eight of which were New York companies, 
 the number had become seventy-one in 1870, when the first Superintendent retired 
 from office, forty-one of which were New York companies. In 1870 times had 
 changed. With the change in the times came a change in the administration and 
 policy of the department. The pretentious display of figures made by these gilded 
 institutions, and published in the official annual reports, were at last to be brought to 
 a practical test. That test, a thorough personal examination, in its first application 
 revealed a rottenness truly startling. 
 
 Orlow W. Chapman succeeded Mr. Miller as Superintendent, and, in his report 
 for 1872, he said: 
 
 The teachings of the past fourteen years' experience, although by no means con- 
 clusive are certainly interesting, important and highly suggestive. They indicate 
 nothing against the wisdom or policy of life insurance, or the theory upon which 
 it is based, or the beneficence of the system. On the other hand, when it is found, 
 as facts show, that some of the companies entering into this aggregate, in the face 
 of this discouraging downward tendency, have maintained a constantly increasing 
 growth year after year, it presents something like a demonstration of the wisdom of 
 its plans and correctness of its theories. For surely that business which is shown 
 to be capable of steady and uninterrupted advancement in times of trial, such as life 
 insurance has passed through during the last few years, must have in it the very 
 strongest elements of prosperity, of safety and of merit. 
 
 John A. McCall, President of the New York Life Insurance Company, read a paper 
 in 1898 before the National Convention of Insurance Commissioners in which he 
 reviewed their history from 1871 to 1898. Following are some extracts from his paper: 
 
 At the time of the meeting of the First Convention of Insurance Officials, in May, 
 1871, American Life Insurance had passed through two distinctive periods, and had 
 nearly reached the end of the third. In the first period life insurance was done 
 almost entirely by proprietary companies, organized primarily for the transaction of 
 fire insurance, banking and trust business. Following this came the period of the 
 early mutuals and other profit-sharing companies, doing a life insurance business 
 exclusively. The marked success of these organizations between 1843 and 1862 
 
88 
 
 caused a great multiplication of life companies. Life insurance shared the fate of 
 other industries of the time flourished and grew with them, as' later it suffered 
 with them. 
 
 The nine years immediately following the First Convention must be accounted 
 the most trying period in the history of American life insurance. The number of com- 
 panies which ceased doing business in New York was forty-six. Only four reinsured 
 in companies that remained solvent ; only ten others paid their liabilities in full. 
 Receivers' reports are incomplete, but a careful examination of such as are accessible 
 show the total loss to policy-holders by failures among American life companies to 
 be about thirty-five million dollars, 'nearly all of which occurred during this period. 
 
 The situation was more acute in New York than elsewhere because, of the forty- 
 six companies which ceased doing new business, twenty-seven had their domicile in 
 that State. 
 
 The loss to solvent companies of business, as well as the prestige during this 
 period, was very great. 
 
 It has been the custom of writers who would exalt life insurance to give scant 
 space to the discussion of the failures and losses of this period ; but to my mind 
 there is no period in life insurance history that deserves more careful study, and 
 none that contains more valuable lessons to the life insurance managers. Why did 
 these companies fail? A true and complete answer to that question would put every 
 officer and every trustee of a life company on his guard against like causes and a 
 like catastrophe. As we have already seen, these failures were contemporaneous 
 with many other failures in the business world, and something must unquestionably 
 be allowed for the great shrinkage in values, as measured by the currency of the 
 country, between 1864 and 1879. But the companies that survived and increased in 
 strength were obliged to meet the same conditions. How did they escape? A study 
 of the report of this period shows but very little charged off to profit and loss by 
 the failing companies ; but a study of their condition at the time of failure shows 
 a great gulf between actual and assumed values of assets. In many of these com- 
 panies gross frauds had been practiced for years, and a thorough examination would 
 have exposed them. In others, loans had been made on insufficient security and with 
 evident profit to favored individuals. In some cases loans upon which neither in- 
 terest nor taxes had been paid for years were carried on the books at their full 
 face value. 
 
 It seems clear from this review that these failures resulted from bad management, 
 in the broadest sense of the term. It was extravagant, wasteful, dishonest. It paid 
 too much for services rendered ; it did not take proper care of the results obtained. 
 The data upon which it proceeded were not deceptive ; no company failed because of 
 an excessive death rate, nor (save in a single case) because it was impossible to 
 realize a rate of interest equal to that upon which its premiums were cast. The 
 assumption which failed was that the loading on the net premiums would equal ex- 
 penses and losses on investments. 
 
 In no other business is failure so disastrous as in life insurance; in no other 
 is it so unnecessary ; in no other is it, therefore, so inexcusable. It is of no use to 
 lay the blame of failure upon the law that makes a net valuation the test of solvency, 
 because this law existed before most of these companies began business. That was 
 one of the conditions of their life, to be prepared for and conformed to, as much 
 as any other condition. As it is the province of history to teach us how we may 
 avoid the mistakes of our predecessors, I venture to suggest the following as some of 
 the safeguards suggested by this study. 
 
 1. The utmost care in making investments security to be always the paramount 
 consideration. 
 
 2. The necessity of frequent revaluations of securities, and of their rigid adjust- 
 ment to changing conditions. 
 
 3. The close study of a company's business upon the principles of the "Gain 
 and Loss Exhibit" now required by several Insurance Departments. 
 
 4. The assumption, for the purposes of practical administration, of a higher stand- 
 ard of reserve than that by which the company's solvency is tested under the law. 
 
 The first of these suggestions may reduce the rate of interest, but it will save 
 
89 
 
 the principal ; the second will prevent any serious reduction of assets by insurance 
 officials; the third will locate the fault of the administration, if there be one; and 
 the fourth will preserve a strip of neutral ground between the path the company 
 has marked out for itself and the line to which it cannot come near with safety. 
 
 In 1879 the epidemic of failures which had set in nine years before had run its 
 course; the patients were nearly all dead, and the business of the remaining companies 
 began to improve. 
 
 The period from 1881 to the present time (1898) has been one of uninterrupted 
 progress. There has been but one failure of importance and the business has steadily 
 grown in public favor. While it required fourteen years to regain the volume of 
 insurance and income reached in 1872 and 1873, it only required seven years more to 
 double it. This time the increase came under healthful financial conditions; it came 
 to companies which had been tried as by fire ; and it came to stay. The notable 
 features of this period have been a decline in the interest rate, the rise of industrial 
 insurance, the liberalizing of the policy contract, and an increase in the expense rate. 
 
 I have said so much by way of criticism that I am sure no one will grudge me 
 a paragraph in praise of the benefits which life insurance has conferred during the 
 past twenty-seven years. The companies have, during that time, received from policy- 
 holders over three thousand million dollars ; they have paid over one thousand millions 
 in death claims, and nearly as much more in endowments, annuities, dividends and 
 surrender values. 
 
 Mr. McCall brought the history to the spring of 1898, which was about the be- 
 ginning of the terrific race for new business between the "Three Giants" the Mutual, 
 the Equitable, and the New York Life. High pressure methods were the rule, and 
 in any of the years from 1898 to 1905 the entire first premium, and more, was used 
 to secure the policy. About the close of the year a determined effort would be made 
 to write business, and agents would give all or most of their commissions to the 
 prospect as an inducement for him to "sign on the dotted line." 
 
 General conditions in life insurance management were criticised by Insurance Com- 
 missioners to the extent that the Legislature of New York authorized an investigation 
 in 1905 under the following resolution: 
 
 Whereas, It appears from a preliminary report of the State Superintendent of 
 Insurance on the Equitable Life Assurance Society of New York that the interests of 
 policy-holders and their beneficiaries in life insurance companies doing business in 
 the State of New York are not properly safeguarded 'by existing laws, and that a 
 revision of the insurance laws of the State should be undertaken ; and 
 
 Whereas, The inquisitorial powers of the Superintendent of Insurance are limited 
 to the examination of the officers and agents of the companies and their books with 
 reference to their business, and with a view to their solvency chiefly, and it is ex- 
 pedient that as a basis for legislation the operations of such life insurance companies 
 should be investigated as fully and as promptly as may be; 
 
 Resolved, If the Assembly concur, that a joint committee be appointed, consisting 
 of three members of the Senate and five members of the General Assembly, which 
 committee shall, after adjournment of the extraordinary session, proceed to investigate 
 and examine into the business and affairs of life insurance companies doing business 
 in the State of New York, with reference to the investments of said companies, the 
 relation of the officers thereof to such investments, the relation of such companies 
 to subsidiary corporations, the government "and control of said companies, the con- 
 tractual relations of said companies to their policy-holders, the cost of life insurance, 
 the expenses of said companies and any other phase of the life insurance business 
 deemed by the committee to be proper, for the purpose of drafting and reporting 
 to the next session of the Legislature such a revision of the laws regulating and 
 relating to life insurance in this State as said committee may deem proper. 
 
 Further resolved, That the said committee be, and it hereby is authorized and 
 empowered to require and enforce the attendance of witnesses, and the production 
 of books and papers, to administer oaths and to employ counsel, stenographers, clerks 
 and such other employes as may be necessary for the purposes of the investigation. 
 
90 
 
 And a sum not exceeding fifty thousand dollars ($50,000) is hereby appropriated out 
 of any moneys in the treasury, not otherwise appropriated, for the purposes of said 
 committee. 
 
 Pursuant to this resolution, three members of the Senate and five members of 
 the Assembly were appointed as a committee, with Senator William W. Armstrong 
 as chairman of the committee, and Assemblyman Ezra P. Prentice, secretary. The 
 other members of the committee were : Senators William J. Tully, Daniel J. Riordan, 
 and Assemblymen Robert Lynn Cox, James T. Rodgers, William W. Wemple, John 
 McKeown. The committee was assisted by Charles E. Hughes (now of the United 
 States Supreme Court) and James McKeen as counsel and Matthew C. Fleming as 
 assistant counsel, Miles M. Dawson as consulting actuary and Marvin Scudder as 
 financial statistician. 
 
 The committee organized on August I, 1905, and began its public hearings on 
 September 6, 1905, continuing consecutively for fifty-seven sessions, the concluding 
 session being held on the 3Oth of December, 1905. 
 
 To 1905 the general insurance laws in the several States provided, in a general 
 way, for the supervision and regulation of life companies, with special reference 
 always to the valuation of policies, which requirement had been made since its intro- 
 duction in Massachusetts by Elizur Wright in the early fifties. 
 
 After the report of the Armstrong Committee, bills were passed by the Legislatures 
 of nearly all of the States, with New York leading, that prescribed policy forms, 
 limited expenses for securing business, provided for net surplus over and above 
 the legal reserve fund, prohibited the writing of participating and non-participating 
 policies by the same company, reduced the interest assumption in valuation of policies 
 issued after a designated date, placed restrictions upon preliminary term policies, com- 
 pelled the companies to dispose of corporate stocks, to discontinue the control of 
 or financial relations with trust companies and brokerage houses and speculative 
 syndicates, and extended the powers of Superintendents of Insurance in their examina- 
 tions of any statistical reports made by the companies. 
 
 The reports for 1913 are not at hand, but the returns as of December 31, 1912, show: 
 
 Ordinary Business. 
 
 Policies in force 8,159,103 
 
 Insurance in force $i5,555,9Oi,i7i 
 
 Policies written in 1912 1,285,210 
 
 Insurance written in 1912 $ 2,240,434,665 
 
 Premiums received in 1912 472,062,710 
 
 Interest and other income in 1912 183,330,994 
 
 Total receipts in 1912 655,393,704 
 
 Total expenses in 1912 483,348,282 
 
 Total to policy-holders in 1912 367,007,717 
 
 Total assets December, 1912 3,597,650,447 
 
 Total liabilities December, 1912 3,168,194,661 
 
 Required Reserve Accumulation 2,988,642,224 
 
 Surplus 451,453,644 
 
 There were less than fifty life companies in 1905. There were more than one 
 hundred and fifty in 1912. The great majority of the new companies are stock cor- 
 porations. 
 
 The corporate management of the life companies is by policy-holders' meetings 
 in "Mutual Companies;" by stockholders' meetings in "Stock Companies;" and by 
 meetings composed of stockholders and policy-holders in "Mixed Companies." 
 
It is a pet phrase of fraternal writers and speakers to declare that the life com- 
 panies are primarily conducted for the profit of stockholders, while the, conduct of 
 fraternal orders is not for profit, but for the benefit of their members. 
 
 It is never well to misrepresent the facts. The Mutual Companies have no stock- 
 holders. The "profits" are limited in amount that can be paid to the stockholders 
 of the Mixed Companies. The Stock, or Proprietary, Companies most commonly issue 
 non-participating policies at comparatively low premium rates, and hence they volun- 
 tarily set a limit to the "profits" for their stockholders. 
 
 The real differences between the Life Companies and the Fraternal Beneficiary 
 Societies, on the business side, are : 
 
 1. The contract of the Life Company is fixed, while that of the Fraternal Society 
 i.i flexible. 
 
 2. The provision for expense of management is greater in the Life Company 
 than in the Fraternal Society. 
 
 3. The mortality assumption is higher for the Life Company level premium than 
 for the level contribution of the Fraternal Society. 
 
 4. The interest assumption is lower for the Life Company level premium than 
 for the level contribution of the Fraternal Society. 
 
 5. The contractual relations between the Life Company and the policy-holders 
 are those of a corporation to an individual, while the contractual relations between 
 the Fraternal Society and the certificate holders are those of a mutual association 
 in cooperative effort. 
 
 6. Because of the character of contractual relations on the basis of a bipartite 
 agreement, the policy-holders in the Life Company are not subject to assessment 
 even to save the corporate existence. The relations between the Fraternal Society 
 and the certificate holders being mutually cooperative, the members occupy the dual 
 position of insurer and insured and they are as much obligated to maintain the 
 integrity of the insurance contracts as they are privileged to claim the benefits of 
 those contracts. The policy-holders are obligated only to pay their stipulated pre- 
 miums, and having discharged that obligation they are vested with the right to demand 
 the benefit promised. The certificate holders must contribute on extra assessments 
 when levied as a condition precedent to vested right in the demand for benefits promised. 
 
 It has always been a mystery to me why the whole argument in the case of 
 Fraternal Societies versus Life Companies has been made upon any misstatements 
 of the real issues, when the facts would so much better support the contention of 
 the Societies. 
 
 OPEN ASSESSMENT ASSOCIATIONS. 
 
 The ill-repute of the Life Companies in the decade 1872-1882 brought forth what 
 have been called Open Assessment Associations. The promoters successfully adver- 
 tised them on the claim that they were organized as a protest against the high pre- 
 miums and extrava-gant management of the Life Companies, and, at the same time, 
 avoided the disadvantages of the lodge system of fraternal orders. They laid claim to 
 representative form of government through direct vote in policy-holders' meetings 
 held every one, two or three years. This, of course, was as much a farce as are 
 similar meetings of Mutual Life Companies, but it served its purpose to delude 
 the public. 
 
 I cannot improve upon the history of the Assessment Associations written by 
 John A. McCall in 1898, and I quote him: 
 
92 
 
 Another result of these same causes was that multitudes of men who felt the 
 need of life insurance protection sought a substitute for it in cooperative societies. 
 I am aware that there is well-founded objection to calling the operations of these 
 societies insurance, and it will be stoutly maintained by some that there is but one 
 system of real life insurance; nevertheless there may be many systems of post- 
 mortem relief, and it is hardly worth while to quarrel about the name so long as 
 we apprehend the fact. There is no question that many cooperative societies 
 operating between 1870 and 1880, in spite of their imperfect system and because of 
 honest management, furnished better protection to their patrons than the level-pre- 
 mium companies whose demise we have been considering although the latter were 
 organized upon plans that were unassailable, ran their course of wickedness under the 
 aegis of the law, and died in the odor (a very bad odor, to be sure) of regularity. 
 While the 'business oi the level-premium companies that failed was but a small per- 
 centage of the whole, and there were always sound and well managed companies 
 in the field, yet the losses were nevertheless great and widespread, and it was little 
 comfort to one who had lost the accumulations of years to be told that he should 
 have insured in a better company. A system that furnished (or even promised) 
 present protection at low cost, and did not profess to accumulate money for future 
 needs, appealed very strongly to men who did not understand theories of insurance, 
 but who were angry and sore at heart over losses under a system that professed to 
 be perfect. 
 
 There are no official data for ascertaining the number of co-operative and fra- 
 ternal societies organized in the seventies, but there are now twenty of each class 
 doing business in New York State, which were organized prior to 1880. The first 
 Handbook of Assessment Insurance was published in 1886, and contained the sta- 
 tistics of 367 societies, 119 of which were organized prior to 1880. Reports were 
 first required from such societies by the Pennsylvania Department in 1874, and by 
 the Massachusetts and New York Departments in 1882. These societies have under- 
 taken to supply post-mortem relief by levying its cost upon members in a variety 
 of ways. There have been four plans of assessment insurance, all of which are still 
 in use, but which may be stated in the order of their development and of their 
 approach to the level-premium plan, as follows: (i) To assess all members alike 
 for current cost only ; (2) to assess, for current cost only, according to a table 
 graduated for age at entrance; (3) to assess according to a table graduated for age 
 at entrance, and lay aside an arbitrary sum or proprotion of assessments for a reserve 
 fund; (4) to charge a level premium, calculated upon assumptions which give rates 
 approximating those of level-premium companies, lay aside a reserve fund on the 
 same assumptions, and reserve the right to assess for any definciency. The order 
 in which these plans have arisen, as well as their nature and the actual workings 
 of each, clearly demonstrate that if an organization would do what the level-premium 
 companies guarantee to do, it must do it in their way, and that methods which require 
 less from members provide less for members, are likely to miss the one great end 
 of all insurance namely, the certainty of indemnity when the loss occurs. 
 
 The ease with which such societies could be organized and their comparative free- 
 dom from official oversight until within a few years led at one time to a speculative 
 craze in policies upon the lives of aged and invalid persons in Pennsylvania, and 
 fraternal endowment societies have filched from the people of many States amounts 
 which rival the losses of the failing level-premium companies. It must be observed 
 also that the experience of these societies has not justified their philippics against 
 the expense rate of the level-premium companies. The expense rate of the level- 
 premium companies doing business in New York State in 1897 was less than twenty- 
 three per cent of income, while in the cooperative socities it was over twenty-eight 
 per cent of income. 
 
 The assessment plan of insurance has never been a success, and the numerous 
 associations which operated under the three plans first named by Mr. McCall soon 
 became involved in financial difficulties, and in the decade 1895-1905 hundreds of 
 them failed or were merged into stronger associations or companies. 
 
 Those associations which operated under the fourth plan mentioned by Mr. McCall 
 were theoretically the most perfect of life insurance organizations, and they should 
 
93 
 
 have been able to continue business indefinitely and safely. However, they were 
 ultimately forced into the ranks of the regular Life Companies through legislation 
 against the Assessment Associations, with which they were classed. 
 
 The plan (numbered "4" by Mr. McCall) of these associations was known as the 
 "Flexible Premium System," and in 1896 (two years prior to Mr. McCall's paper) 
 I wrote a brochure, entitled "The Flexible Premium System A Handbook for Field 
 Men." I quote from the "Preface," or "Fore-Word" : 
 
 If names were suggested by methods, insurance plans should be grouped under 
 four heads : "Assessment," "Natural Premium," "Level Fixed Premium," and "Level 
 Flexible Premium" Insurance. 
 
 The development of present insurance plans and methods has been slow, and 
 the sharp lines of distinct differences have only been sufficiently apparent from the 
 first to give distinguishing names to the two methods of "Assessment" and "Level 
 Fixed Premium" Insurance. 
 
 Insurance by "Natural Premiums" was simply assessment insurance with a recog- 
 nition of the Mortality Law that the cost of insurance increases with increasing age. 
 But there have been few life associations which have adopted and operated under 
 the pure "Natural Premium" plan, notwithstanding the fact that hundreds of con- 
 cerns take the name of "Natural Premium Companies." Their methods do not justify 
 the designation. Their rate cards and literature present premium charges which are 
 held to be high enough to provide for a reserve that will render them level through 
 the contract period. 
 
 Representation and calculation allege and indicate that these charges, in practical 
 operation, will remain level and uniform, unless future cost of insurance exceed past 
 experience cost. Only, in the latter event, is it contemplated to increase the rates ; 
 whereas, insurance by "Natural Premiums" contemplates a yearly increase of charges, 
 from the age of entry until death, or the termination of the policy contract. 
 
 Evidently it is a misnomer to call such associations either "Natural Premium" or 
 "Assessment" companies. Certainly "Natural Premium," strictly construed, gives no 
 indication of their method of operation; and the only relation to "Assessment" insur- 
 ance, is the provision in their contracts to increase rates to cover any increase in the 
 cost of insurance. And most of these companies are removed from this mere semblance 
 to "Assessment" insurance by making it optional with the policy-holder whether or 
 not he pay an increased rate, or have the deficiency charged to his policy and deducted 
 from the claim when it matures. 
 
 For those companies which base their rates upon experience cost, and have a 
 stipulated level premium, no name so well describes them as that of "Flexible Pre- 
 mium" the "flexibility" being conditioned upon change in insurance cost. 
 
 The 1896 Act of the Massachusetts Legislature, obliging all companies operating 
 under the "Assessment Plan," to print "Assessment," in conspicuous letters, in their, 
 policies and on their literature, rate cards, etc., is a sure indication of future legisla- 
 tion which will force more definite distinction in the representations of insurance 
 methods. 
 
 "Level Flexible Premium" insurance differs materially from any other method, 
 and a general designation, which aptly applies to "Level Fixed Premium," "Assess- 
 ment," or "Natural Premium" insurance, does not -describe it. 
 
 Under present legislative conditions "Flexible Premium" companies must qualify 
 under laws regulating "Assessment" insurance. "Level Fixed Premium Companies," 
 seeing that "Level Flexible Premium" organizations are writing level premium in- 
 surance, under advantages secured to them through qualification under assessment 
 laws, have inaugurated a movement to discredit assessment insurance in any form, 
 even to that of the Flexible Premium. The Massachusetts Act, of 1896, smacks of 
 paternalism in the nature of protection to the level fixed premium companies, and 
 bears such evidences of favoritism as will not long be tolerated by the people. The 
 discussion, however, which naturally comes from such attempted class legislation, will 
 probably result in a better general understanding of insurance methods and plans. 
 
 The Assessment Associations which operated under the "Flexible Premium Sys- 
 tem" could not secure legislation that would distinguish them from the ordinary 
 "Open Assessment Associations," and they could not continue under the general 
 
94 
 
 laws for the supervision and regulation of Assessment Associations and consequently 
 they qualified under the legal reserve laws for regular "old line" companies. 
 
 The "Safety Clause" in their contracts corresponded to the "right to. levy extra 
 assessments" reserved in their certificates by the Fraternal Beneficiary Societies that 
 now base their contribution rates upon some standard table of mortality with an 
 assumed interest earning an accumulation required to maintain rates level and uni- 
 form. This plan of the Fraternal Societies is theoretically and practically sound and 
 I could not support it with a stronger statement than I made in 1896 in reference to 
 the "Flexible Premium System." I am still enamored of the plan and I quote from 
 the writing of eighteen years ago, that it may be applied to the flexible premium sys- 
 tem of the level-rate Fraternal Beneficiary Societies of today : 
 
 Careful consideration and study of existing conditions in life insurance, as above 
 set forth, some twenty years ago resulted in the formulation of the system known 
 as the FLEXIBLE PREMIUM PLAN of LIFE INSURANCE, which 
 
 EQUALIZES THE COST, 
 
 CORRECTS THE ABUSES, 
 
 AVOIDS THE DANGERS, and 
 
 MAINTAINS THE SAFETY of INSURANCE to an UNEQUALLED DEGREE. 
 
 The calculations of the actuaries and the actual experience of insurance companies 
 and societies served as a guide in fixing the premium rates, as well as the policy 
 conditions. The result is that the rates are those which experience has shown to be 
 sufficient in the past, and which will remain uniform and level so long as the past 
 average of insurance cost is maintained. 
 
 The cost of insurance is equalized by requiring payments in excess of insurance 
 needs during the earlier years, thus creating a reserve, as fully explained in illustrating 
 the operation of level premium insurance. The flexible premium in nowise differs 
 from the level premium in this respect, but under the most improved policy contracts, 
 the company binds itself to keep each policy's proportion of the reserve fund equal to, 
 or greater than, the difference between the present worth of the future net premiums 
 and the present worth of the amount insured, thus enabling these companies to equalize 
 and keep level the premium rates, in identically the same way as done by the old 
 line or level-premium companies with the marked advantage, however, in the privi- 
 lege, under the flexible premium plan, of having the entire reserve fund always sub- 
 ject to. the payment of all losses, instead of having it subject only to each policy's 
 proportionate share. 
 
 The abuses arising from waste of funds, as heretofore instanced and emphasized, 
 is corrected under the flexible premium system by limitation, in the policy contract, 
 of expense charges. Thus the surplus, whether from lapse, surrender, interest earn- 
 ings, or other sources, is of the general reserve fund, and must be exclusively used 
 for the benefit of policy-holders. 
 
 The dangers possible from a reduction of rates to the cost of insurance, as in- 
 dicated by past experience, are avoided under the flexible premium system by the 
 simple and effective provision, which enables the company to collect an increased pre- 
 mium sufficient to meet the increased cost. In other words, the premium rate is not 
 fixed and unchangeable as with the level premium rates, but they are left flexible so 
 as to cover any change that may come into the cost of insurance. 
 
 It is utterly impossible to positively anticipate either a future death-rate or the 
 future value of investments. 
 
 The greatest care may be exercised in making conservative mortality estimates 
 as well as endeavoring to invest only in good and safe securities, yet a "Black Plague" 
 may change the death-rate, or a "Black Friday" knock the bottom out of values. 
 
 Safety is the keystone of the arch upon which rests the whole superstructure of 
 life insurance. 
 
 Safety is the foundation principle of life insurance, and safety must be assured 
 beyond peradventure. 
 
 This is accomplished under FLEXIBLE PREMIUM INSURANCE beyond any 
 sort of question. 
 
 So long as the death-rate remains the same, and financial conditions do not affect 
 the value of securities, premium rates, feased upon experience cost, will remain the 
 same. Should conditions arise whereby the cost of insurance is increased, the policy- 
 holders must justly and rightly contribute their share to the payment of this increased 
 cost, and the company reserves the right to require it of them. 
 
95 
 
 While SAFETY is thus assured, cheapness is secured and waste and insolvency 
 made impossible. Waste is not possible because of the limitation to expense of man- 
 agement; insolvency is not possible -because the income can be increased as the 
 exigencies of insurance cost may require. 
 
 Hence, it follows that 
 
 THE FLEXIBLE PREMIUM SYSTEM 
 
 COMBINES ALL OF THE DESIRABLE FEATURES AND BASIC PRINCIPLES TO MAKE 
 
 THE PERFECT SYSTEM OF LIFE INSURANCE. 
 
 It is especially adapted to the combination of those most desirable features, 
 CHEAPNESS and SAFETY. 
 
 I give the following statistics, as of December 31, 1912: 
 
 Number of Assessment Associations 135 
 
 Number of Certificates 484,228 
 
 Insurance in force $428,344,892 
 
 Amount written in 1912 100,639,042 
 
 Total income in 1912 1 1,184,473 
 
 Total disbursements in 1912 10,017,766 
 
 Total admitted assets 10,674,094 
 
 Total liabilities 2,71 1,601 
 
 Of the 135 associations, which are given in the Spectator's Year Book none remain 
 of the large ones existing in the decade 1891-1901. The Mutual Reserve Fund (which 
 once expended $30,000 for a private yacht and entertainment of Insurance Commis- 
 sioners in convention on the St. Lawrence), Bay State, Massachusetts Benefit, North- 
 western Life, Old Wayne Mutual and hundreds of others, which carried 'millions of 
 insurance in 1891-1901, are gone out of existence. 
 
 Many of the 135 have been organized since 1901, and most of these are doing 
 business in the South amongst the negroes of that section. Those in existence Decem- 
 ber 31, 1912, which commenced business prior to 1902, are largely confined to the 
 members of some order, profession or occupation. A list of them no doubt will be 
 of interest : 
 
 Year 
 Organized. Name of Organization. 
 
 1886 Albany Women Teachers' Relief Association, Albany, N. Y. 
 
 1889 American Temperance Life Insurance Association, New York City. 
 
 1901 American Mutual Benefit Society, Baltimore, Md. 
 
 1884 Catholic Knights of Illinois, State Council, Belleville, 111. 
 1882 Columbian Protective Association, Binghamton, N. Y. 
 
 1880 Commercial Travelers' Life and Accident Ass'n of Cleveland, Cleveland, Ohio. 
 
 1881 Commercial Travelers' Mutual Benefit Association, Toronto, Can. 
 1849 Cremieux Benevolent Society, New York City. 
 
 1885 DeWitt Clinton Ready Relief Association, Brooklyn, N. Y. 
 
 1886 Empire State Degree of Honor, Supreme Lodge, Stockton, N. Y. 
 1869 Expressmen's Mutual Benefit Association, New York City, N. Y. 
 1895 Globe Mutual Life Insurance Association, Chicago, 111. 
 
 1878 Gold and Stock Life Insurance Association, New York, N. Y. 
 1884 Golden Eagle Association, Brooklyn, N. Y. 
 
 1884 Home Friendly Society, Baltimore, Md. 
 
 1897 Illinois Bankers Life Association, Monmouth, 111. 
 
 1892 Industrial Life and Health Insurance Company, Atlanta, Ga. 
 
 1872 Insurance Clerks' Mutual Benefit Association, New York, N. Y. 
 
 1884 Jewelers Safety Fund Society, New York City. 
 
 1877 Knights Templar and Mas. Mutual Aid Association, Cincinnati, Ohio. 
 
 1879 Lutheran Mutual Aid Society, Waverly Iowa. 
 1872 Masonic Life Association, Buffalo, N. Y. 
 
96 
 
 1894 Merchants' Life Association, Burlington, la. 
 
 1879 Minnesota Scandinavian Relief Association, Red Wing, Minn. 
 
 1893 Mutual Aid Society of Lutherans, Toledo, Ohio. 
 
 1887 Mutual Benefit Association of Fifth Street Baptist Church, Troy, N. Y. 
 
 1876 Mutual Benefit Association of Suffolk County, Riverhead, N. Y. 
 1896 Mutual Life Asssociation of Iowa, Red Oak, la. 
 
 1899 National Benefit Association, Washington, D. C. 
 
 1900 National Life Association, Des Moines, la. 
 
 1898 Nebraska Mutual Life Insurance Co., Hastings, Neb. 
 
 1868 New York Physicians' Mutual Aid Association, New York City. 
 
 1883 New York Safety Reserve Fund, Syracuse, N. Y. 
 
 1899 North Carolina Mutual and Provident Association, Durham, N. C. 
 1875 Northwestern Traveling Men's Association, of Chicago, Chicago, 111. 
 
 1895 Postal Employes' Mutual Aid Association, New York City, N. Y. 
 1886 Protective Life Assurance Society, Buffalo, N. Y. 
 
 1883 Provident Association of Newtown, L. I., Maspeth, L. I., N. Y. 
 1874 Railway Mail Mutual Benefit Association, Chicago, 111. 
 
 1894 Scandinavian Mutual Aid, Minden, Neb. 
 
 1884 Seventh Regiment Vet. & Act. League, New York City, N. Y. 
 1882 St. Lawrence Life Association, New York. 
 
 1877 Stafford Benefit Association, Stafford, N. Y. 
 
 1898 Surety Fund Life Company, Minneapolis, Minn. 
 
 1899 Swedish Baptist Mutual Aid Association of America, Chicago, 111. 
 
 1878 Swedish Methodist Aid Association, Chicago, 111. 
 
 1885 Swedish Mutual Aid Society "Scandia" in N. Y., New York City. 
 1867 Telegraphers' Mutual Benefit Association, New York City, N. Y. 
 1882 Toledo Traveling Men's Association, Toledo, Ohio. 
 
 1898 Union Mutual Aid Association, Mobile, Ala. 
 
 1878 Western Commercial Travelers, St. Louis, Mo. 
 
 1884 Western Life Indemnity, Chicago, 111. 
 
 1886 Western Masons' Mutual Life Association, Los Angeles, Cal. 
 
 1886 Workingmen's Cooperative Association of the U. I. L. of N. Y., New York City 
 
 1878 Young Men's Mutual Life Association, Cincinnati, Ohio. 
 
 INDUSTRIAL INSURANCE COMPANIES. 
 
 Industrial insurance, although in operation in England since 1854, was first intro- 
 duced into this country in 1873. In 1880 three companies were issuing this form of 
 indemnity, and the amount in force at the end of the year was somewhat over 
 $13,000,000. On December 31, 1912, the number of policies in force was nearly 
 27,000,000, insuring nearly four thousand million dollars. The amount insured under 
 industrial policies now exceeds the total life insurance in force in this country prior 
 to 1880. 
 
 Its salient features have been (i) weekly collections of premiums at the homes 
 of the insured; (2) the insurance of the whole family; (3) uniform rates for males 
 and females ; (4) limitation of the amount of insurance upon lives under ten years of 
 age to burial fund proportions. 
 
 Premiums are five cents per week and upward; insurance $15 and upward. The 
 average premium is about ten cents per week, and the average insurance about $125. 
 
 The industrial companies have had to overcome anew the prejudice which was 
 formerly directed against the companies insuring for larger amounts. Professional 
 philanthopists have again and again conjured up the spectre of children starved and 
 murdered for the sake of an insurance that would scarcely afford decent burial. Over 
 against the spectre the industrial companies have once and again set the facts, showing 
 
97 
 
 care in the selection of risks and in the payment of claims, and the further fact that 
 the mortality among insured infants is lower than the average infantile mortality. 
 Over against accusations of placing burdens upon poverty the companies have shown 
 that an increase in industrial insurance has gone hand in hand with an increase in sav- 
 ings bank deposits. 
 
 As bearing upon the history of Life Insurance, several points must be noted : 
 
 i The industrial companies have immensely broadened the field of Life Insur- 
 ance. They have not only extended its benefits to a large number of persons insuring 
 for small amounts, but they have included classes heretofore considered uninsurable. 
 They have demonstrated that it is possible to ascertain and cover by an adequate 
 premium the risk of death upon practically every healthy human being who is not 
 living in flagrant violation of moral and hygienic laws. The companies have been 
 obliged to contend with a death rate among adults nearly twice as great as that which 
 has prevailed among the companies doing an ordinary life insurance business, and to 
 ascertain by actual experience the death rate among children ; but they have within 
 comparatively few years obtained the facts, and reduced them to a science, upon which 
 they have upreared the stately structure of Industrial Insurance. The number of 
 industrial policies now in force is over three times as great as the number of ordinary 
 policies ; and, while the amounts are small, who shall say that the service done each 
 family is not as great in the one case as in the other? 
 
 2 Again, the industrial companies have shown that it is worth while to do small 
 things in order to accomplish great things that the business will bear whatever expense 
 is necessary to do it in the best way. The companies have learned that the industrial 
 classes will not save money and pay for insurance by quarterly or monthly premiums ; 
 that they will not take insurance that involves remittances by mail or by periodical 
 payments at an office : but that they will cheerfully pay the cost of it, if it is brought 
 to their homes and sold on weekly installments. 
 
 3 If we look closely we shall perceive that industrial insurance so far as it 
 applies to infants has introduced a new principle. Every other kind of insurance is 
 indemnity for value lost ; infantile insurance is indemnity for expense incurred. The 
 infant life has no pecuniary value; it does not produce it consumes; but, if it ceases, 
 an expense must be incurred for its burial. The expense of its maintenance, if it lives, 
 can be provided for by the earnings of parents, because this expense like these 
 earnings will be so distributed as to require but little outlay each week. So the 
 expense, involving the instant outlay of a week's wages or more, can be met in the 
 same way by industrial insurance. It is not exactly insurance upon life, but, in the 
 language of the charters and of the law, "insurance pertaining to life." 
 
 CHILD INSURANCE. 
 
 In 1907 the National Fraternal Congress instructed the Committee on Statistics to 
 report concerning "Child Insurance," and I prepared for the Committee a statement 
 which required several months of labor and research, involving inquiries of Industrial 
 Companies in the United States and Friendly Societies and Industrial Companies of 
 Great Britain in regard to practical operation. I received several thousand pages of 
 printed and typewritten matter and condensed the information into a typewritten state- 
 ment of about 80 pages for the Committee. 
 
 When no advantage was taken by the Congress of this mass of data, I made an 
 arrangement with Metropolitan Life, of New York, whereby that company would re- 
 insure all child Insurance Business obtained by Fraternal Beneficiary Societies. I pre- 
 pared a policy form which was acceptable to the Metropolitan Actuaries and was 
 approved by leaders amongst fraternal society officials and the plan for reinsurance 
 was likewise approved. 
 
 The members and deputies of the Societies were to make or secure the applications 
 and send them to the head office of the Society, under the same regulations for other 
 applications; and the collectors for the Society were to make collections (monthly 
 
98 
 
 instead of weekly) as other collections were made. There were no dealings between 
 members or deputies and the Industrial Company. The latter merely assumed the 
 insurance risk and received periodical remittances from the Society direct. 
 
 An agreement was entered into with several Societies to carry out the plan, but 
 the general sentiment of the officials of Fraternal Societies was antagonistic, and, 
 personally, I was severely criticised for proposing "an unholy alliance with the arch 
 enemy of the Fraternal System." The adverse comment caused the officials to with- 
 draw from the agreement, and the plan of reinsurance came to naught. 
 
 I had become accustomed long before to criticism, and to having my motives mis- 
 understood and misconstrued and unjustly condemned, and I pursued the even tenor 
 of my way, depending upon time for my justification. 
 
 One of the gravest and most serious mistakes which has been made continuously 
 and persistently made from the very beginning by the officials of Fraternal Beneficiary 
 Societies has been to assume an eternal and inevitable conflict between the Societies 
 and the Life Companies. 
 
 The Societies are not organized for the efficient handling of certain forms of insur- 
 ance, and it would be much better that they confined their operation to the original 
 idea of protection against dependency of members and their beneficiaries, and thereby 
 retain statutory privileges and exemptions. 
 
 Correct and commendable relations between the Societies and the Life Companies 
 would permit of "reinsuring surplus lines" of the former by the latter on the like 
 amicable and satisfactory terms as in practice now existing between Life Companies. 
 
 The Fraternal Beneficiary Societies have the organized machinery for securing 
 business at much less expense than can be done by the Ordinary or Industrial Life 
 Companies. They are especially well equipped for securing the business for "Child 
 Insurance" and "Group Insurance," though handicapped in several ways in success- 
 fully taking care of such business, even when permitted to do so by State Legislation. 
 
 I appreciated the difficulties to be overcome by Fraternal Orders before they could 
 grant Child Insurance, and believed I was doing something for their good when I 
 arranged the reinsurance plan. 
 
 The Industrial Companies cannot successfully carry on their business outside of 
 the population centers. To make weekly collections a collector must be able to see 
 several scores of persons in a day, which is impossible except in thickly populated 
 districts. 
 
 By means of the lodge system the collectors for Fraternal Beneficiary Societies could 
 attend to the payments by members for insurance on their children, and thus bring 
 this beneficent protection to the homes of hundreds of thousands in the country dis- 
 tricts and towns and small cities that cannot be reached by the Industrial Companies. 
 Even in the large cities, the Fraternal Beneficiary Societies have a membership whose 
 homes are not entered by these Companies. There would be very little competition 
 between the Societies and Companies in the conduct of "Child" or "Juvenile" Insur- 
 ance, and there is no ground other than that of prejudice for objection to cooperation 
 between the Societies and the Companies. 
 
 At any rate, between three and four millions of children go uninsured through 
 the failure of the Fraternal Orders to engage in it, or otherwise encourage it. The 
 Industrial Companies have about ten millions of children of the twenty-seven millions 
 insured December 31, 1912. 
 
 As to the "Group" Insurance, there is criticism of the Life Companies for under- 
 taking it, and yet the Fraternal Managers, with every facility for promoting it, stand 
 
99 
 
 by and neglect their opportunities. This class of insurance would be fittingly appro- 
 priate for reinsurance relations with the Life Companies. 
 
 The accumulated encumbrances of years have narrowed the scope of operation for 
 Fraternal Beneficiary Societies, and before the officials can come to an agreement con- 
 cerning Group Insurance, I fear the Life Companies will have the lion's share. 
 
 Returning to the subject of "Juvenile Insurance," I conclude with reproducing the 
 report of the Committee on Statistics and Good of the Orders to the National Fra- 
 ternal Congress, in session at Put-in-Bay in 1908 : 
 
 PUT-IN-BAY, Lake Erie, August 19, 1908. 
 To the Officers and Members of the National Fraternal Congress : 
 
 Your Committee on Statistics and Good of the Orders begs leave to submit its 
 report on the matter of Industrial Insurance, in accordance with the terms of the 
 resolution offered by Mr. Gerard at the meeting of the Congress last year, which is 
 as follows : 
 
 "Whereas, There is a demand among the membership of Fraternal Beneficial Socie- 
 ties for some form of industrial protection for minor members of their families ; 
 
 "Therefore, Be it Resolved, That this question be referred to the Committee on 
 Statistics and Good of the Orders, to be hereafter appointed, to investigate the legal 
 requirements necessary to amend the present laws in the various States, and to submit 
 plans and rates necessary to provide for Industrial Insurance, to be confined exclu- 
 sively to the families of members of Fraternal Beneficial Societies, at next session of 
 this Congress." 
 
 It will be observed that the resolution, in substance, asks that we ascertain whether 
 such work might be advantageously undertaken by the various orders here represented, 
 and, if so, whether the laws of the various States would permit us to do so. 
 
 Soon after the close of the last meeting of the Congress we addressed a letter to 
 the president of each order here affiliated, requesting his or her views on this subject, 
 and also requesting them to make inquiries as to the probable demand for such benefit 
 among their "field workers" and members. We regret to say that but few of those 
 thus written gave the matter such attention as we desired, hence we are not in a 
 position at this time to indicate what the demand for such benefits would be, although 
 those who did seem to give it attention, reported quite a large proportion of their 
 members as being patrons of the Commercial Industrial Companies, and as in full 
 sympathy with the establishment of such departments in connection with our other 
 work. We then concluded to give the matter a careful examination and learn what 
 we could of the subject generally. To this end we sought the advice of Mr. Abb 
 Landis, who is well known to all, as to the best sources of such information, and were 
 very agreeably surprised and much pleased to learn that he would glady help us in 
 the matter feathering the data needed, and when he coupled with this offer a willing- 
 ness to do this without making a charge for his service, we gladly took advantage of 
 his generosity. 
 
 Mr. Landis has furnished us what appears to be a very comprehensive and ex- 
 haustive paper or report on "Industrial Insurance," covering about sixty pages of 
 typewritten matter, in which he deals with every element that we should understand 
 pertaining to the history, purpose and plan, as well as the cost and experience of the 
 companies doing that line of work here and abroad. Your Committee would like to 
 have taken the time to present his views on the subject to this Congress, but came to 
 the conclusion that it would be best to submit with our report this report of Mr. 
 Landis, which the Congress may have printed if it wishes to do so. Regardless of 
 the action of the Congress in this relation, your Committee wishes to give Mr. Landis 
 due credit for his advice and for the generous contribution he made to our fund of 
 information, upon which we shall make frequent and liberal drafts in what we shall 
 have to offer. 
 
 The business of industrial insurance, as we know it now, is not an American 
 product : it is an imported article coming here from England. It was first introduced in 
 its present form by the Friendly Societies of Great Britain. Its main purpose is to 
 secure a decent funeral and burial for the person insured, and is largely used by parents 
 
100 
 
 for the benefit of their minor children, although all the commercial companies insure 
 adults as well. 
 
 The Prudential Company of Newark, N. J., was the first to establish this business 
 in America. It was authorized in 1873 by special act of the New Jersey legislature 
 as "The Widows' and Orphans' Friendly Society." In 1875 its name was changed 
 to the ''Prudential Friendly Society," and later to the "Prudential Insurance Com- 
 pany of America." The capital was originally $25,000; its capital is now and has been 
 since 1893, $2,000,000. Of this amount only $91,000 was paid in in cash; the balance 
 represents profits capitalized. The company has been a liberal dividend payer all these 
 years. In short, the business has been very profitable and this company is a fair example 
 of all the other established companies doing this line of business. The Metropolitan is 
 the largest of such companies, and that you may have a fair idea of the volume of 
 such business in this country, it may be said that it had over 9,620,000 policies in force 
 at the close of 1907. Its income that year was more than $73,000,000. The new indus- 
 trial business written by it and paid for was over $254,000,000 and the number of claims 
 paid were 137,270. Its net gain in policies for the year was over 600,000. In other 
 words, this line of insurance work has become very popular in recent years, and 
 through the thorough organization of the large companies it has become very profitable. 
 And yet it cannot be said there was any demand for such a business. It took the 
 Metropolitan company over five years to reach the point where the business took 
 care of itself. It was necessary for that company to import from Great Britain a force 
 of two thousand experienced industrial insurance workers to establish their business 
 in all its departments. The demand had to be created, just as is the case today in 
 any department of insurance work, excepting, in a limited way, only fire insurance. 
 The business is now well established, but it is all, practically, in the hands of the com- 
 mercial companies. It has been diverted from the Friendly Societies to the com- 
 panies for profit. Everybody knows that it is grossly expensive as compared with 
 even ordinary life insurance made so by the system and plan of operation. The cost 
 of securing the business in the first place is necessarily great in proportion to the 
 premiums paid by the insured, since the great bulk of the premiums are not more 
 than ten cents per week, and in most cases of infants or children under ten years of 
 age, only five cents. The collections are made weekly at the home of the insured, by 
 paid collectors, who are also solicitors, and the work of taking care of the business 
 at the home office is correspondingly greater than the ordinary life insurance business. 
 President Hegeman of the Metropolitan Company says that the work of securing 
 and caring for this business, as compared with ordinary life insurance, is as eighteen 
 to one, while the expense is as two and one-fourth to one. 
 
 In the matter of expense, the Prudential is about the same as the others. For 
 1907 their experience was as follows: 
 
 Ordinary Life Department 18.05 per cent. 
 
 Industrial Department 37-27 per cent. 
 
 One of the remarkable facts connected with the development of this work is the 
 relation between population and industrial policies in force, as will appear from the 
 following table compiled by Mr. Landis : 
 
 Percentage Percentage of 
 
 of Policies in 
 
 Ages. Population. Force, 1904. 
 
 i to 4 inclusive 9-57 9-57 
 
 I to 9 inclusive 21.28 22.47 
 
 i to 14 inclusive 31-94 34-66 
 
 i to 19 inclusive 41.91 45-35 
 
 5 to 17 inclusive 28.42 31.65 
 
 20 to 29 inclusive 18.29 17.68 
 
 30 to 39 inclusive 13-88 12.83 
 
 40 to 49 inclusive 10.16 9.96 
 
 50 to 59 inclusive 8.80 8.06 
 
 60 to 69 inclusive 4.08 4.86 
 
 i to 69 inclusive 95-12 98.74 
 
101 '' 
 
 Some may be under the impression that such insurance on the lives of children 
 tends to crime or neglect, but our investigation of this matter leads us to the conclu- 
 sion that such impressions are wholly erroneous and unfounded ; that there is no 
 evidence to establish this fact that does not apply with equal force to adult insurance. 
 
 The people who generally patronize these companies are poor and whose means 
 seem to impel them to buy this form of protection because they can get it for a few 
 cents per week, without apparently realizing that in proportion to the benefits to be 
 secured they are paying an exorbitant price. This is not the fault of the companies 
 because under their system it is doubted if it could be furnished at very much less. 
 
 Now, let us see what the companies give for the weekly premium of five and ten 
 cents, and let it be remembered that a weekly premium of five cents means $2.60 per 
 year, while a ten-cent weekly premium means $5.20 per year. 
 
 INFANTILE TABLE 
 
 Weekly Premium, 5 cents. 
 Benefit Payable if Policy has 
 
 Premiums Cease at Age 75. 
 
 Age Next Birthday When Policy 
 
 is Issued 
 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 Less than 6 months 
 
 $12.50 
 25.00 
 34.00 
 40.00 
 48.00 
 58.00 
 70.00 
 110.00 
 145.00 
 173.00 
 
 $17.00 
 34.00 
 40.00 
 48.00 
 58.00 
 70.00 
 105.00 
 140.00 
 169.00 
 
 $20.00 
 40.00 
 48.00 
 58.00 
 '70.00 
 100.00 
 135.00 
 165.00 
 
 $24.00 
 48.00 
 58.00 
 70.00 
 95.00 
 130.00 
 160.00 
 
 $29.00 
 58.00 
 70.00 
 90.00 
 125.00 
 155.00 
 
 $35.00 
 70.00 
 85.00 
 120.00 
 150.00 
 
 $40.00 
 80.00 
 115.00 
 145.00 
 
 $55.00 
 110.00 
 140.00 
 
 Over 6 months, under 1 year 
 
 One year 
 
 Two years 
 
 Three years 
 
 
 Four years 
 
 
 
 Five years 
 
 
 
 
 Six years 
 
 
 
 
 
 Seven years 
 
 
 
 
 
 Eight years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 No infantile policies will be issued with a weekly premium of ten cents. 
 
 INFANTILE TABLE. 
 
 Weekly Premium, 3 cents. 
 Benefit Payable if Policy has 
 
 Premiums Cease at Age 75. 
 
 Ag<e Next Birthday When Policy 
 
 is Issued 
 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 Less than 6 months 
 
 $ 7.00 
 15.00 
 20.00 
 24.00 
 29.00 
 35.00 
 42.00 
 66.00 
 87.00 
 104.00 
 
 $10.00 
 20.00 
 24.00 
 29.00 
 35.00 
 42.00 
 63.00 
 84.00 
 101.00 
 
 $13.00 
 24.00 
 29.00 
 35.00 
 42.00 
 60.00 
 81.00 
 99.00 
 
 $14.00 
 29.00 
 35.00 
 42.00 
 57.00 
 78.00 
 96.00 
 
 $17.00 
 35.00 
 42.00 
 54.00 
 75.00 
 93.00 
 
 $21.00 
 42.00 
 51.00 
 72.00 
 90.00 
 
 $24.00 
 48.00 
 69.00 
 87.00 
 
 $33.00 
 66.00 
 84.00 
 
 Over 6 months, under 1 year 
 
 One year 
 
 Two years . ... 
 
 Three years 
 
 
 Four years 
 
 
 
 Five years 
 
 
 
 
 Six years 
 
 
 
 
 
 Seven years 
 
 
 
 
 
 
 Eight years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
102 
 
 When the person to be insured is less than ten years of age next birthday, the 
 amount of benefit payable depends upon the length of time the policy has been in force. 
 Thus, if a child is five years of age next birthday when the policy is issued and the 
 policy remains in force three years, the insurance for a weekly premium of five cents 
 will be $95. After the policy has been in force four years the insurance will be $130, 
 and after it has been in force five years it will provide for a payment of $160 at death. 
 
 By this time, however, the child will be ten years of age next birthday, and there- 
 after the amount of insurance will remain at $160. 
 
 In no case will any policy be written for a greater amount of insurance than set 
 forth in the following table, nor will any policy be written which together with any 
 other insurance then in force, in this or any other company, would make the total 
 amount of insurance in force exceed the amounts stated in this table. 
 
 Age 
 
 Limit 
 
 Age 
 
 Limit 
 
 Age 
 
 Limit 
 
 Age 
 
 Limit 
 
 next 
 
 of 
 
 next 
 
 of 
 
 next 
 
 of 
 
 next 
 
 of 
 
 Birthday. 
 
 Insurance. 
 
 Birthday. 
 
 Insurance. 
 
 Birthday. 
 
 Insurance. 
 
 Birthday. 
 
 Insurance. 
 
 2 
 
 $30.00 
 
 7 
 
 $140.00 
 
 12 
 
 $380.00 
 
 17 
 
 $()12.00 
 
 3 
 
 34.00 
 
 8 
 
 168.00 
 
 13 
 
 460.00 
 
 18 
 
 700.00 
 
 4 
 
 40.00 
 
 9 
 
 200.00 
 
 14 
 
 520.00 
 
 19 
 
 784.00 
 
 5 
 
 48.00 
 
 10 
 
 240.00 
 
 15 
 
 520.00 
 
 20 
 
 855.00 
 
 6 
 
 58.00 
 
 11 
 
 300.00 
 
 16 
 
 520.00 
 
 21 
 
 930.00 
 
 It is understood that the average amount of protection in force in the Industrial 
 companies in 1904 was $32.56 on all ages under ten. Under age 15 it was $48.90. At 
 age 2, the average was $13.33, at age 3 it was $19.10, at age 4 it was $23.46, and at age 
 5 it was $27.70. 
 
 From this it appears that the rate of premium is very high, during these years, 
 $2.60 for an average of only $32.56 under ten years and $48.00 under fifteen years. 
 
 In this connection it may be said that the Insurance Department of the State of 
 New York has made a thorough investigation of the mortality experience of the Metro- 
 politan Company, from which it has a mortality table that is now recognized as a 
 standard for such business, and were these organizations to undertake the work this 
 table could be made the standard so that there would be no groping in the dark as to 
 what experience might reasonably be expected. Mr. Landis has prepared for us and 
 we append herewith a table showing the amount of protection that $1.00 per year will 
 buy contributed monthly on term to age 21, Standard Industrial Mortality Table and 
 four per cent interest. 
 Age next 
 Birthday. Col. i Col. 2. Col. 3. 
 
 2 $109.86 $93.38 $87.89 
 
 3 144.60 122.91 - 1 15.68 
 
 4 179.32 152.42 14346 
 
 5 203.81 173-24 163-05 
 
 6 222.46 189.09 177.97 
 
 7 " 235.70 200.35 188.56 
 
 8 245.25 208.46 196.20 
 
 9 250.12 212.60 200.10 
 
 10 250.06 212.55 200.05 
 
 11 245.26 208.47 196.21 
 
 12 236.64 201.14 189.31 
 
 13 225.38 191.57 180.30 
 
 14 212.81 180.89 170.25 
 
 J 5 109.72 169.76 159.78 
 
 16 .187.04 158.98 149.63 
 
 $3,148.05 $2,675.81 
 
 $2,518.44 
 
103 
 
 Col. i. Amount of protection that $1.00 per year will buy contributed monthly 
 on term Age 21, with no deduction for expenses. 
 
 Col. 2. Amount of protection that $1.00 per year will buy contributed monthly with 
 15 per cent used for expenses (85c per year net). 
 
 Col. 3. Amount of protection that $1.00 per year will buy contributed monthly with 
 20 per cent used for expenses (8oc per year net). 
 
 It will be seen from what has been said about cost that with a 20 per cent loading 
 for expenses, from 2 1-2 to 5 times as much protection could be furnished for $1.00 as 
 is now obtainable. And why? Let us answer, largely because we "could minimize the 
 cost of securing and retaining the business. How could we do this? Because we have 
 the machinery now organized, and by limiting the benefits to small amounts as above 
 indicated is done by the commercial companies in this country, and this is equally true 
 of the foreign companies, the annual premium would be so small that it could and 
 should be paid in one sum, thus at once practically doing away with two of the prin- 
 cipal causes of the great expense incident to the business collecting and office work. 
 Then again, this great reduction in annual cost would be a great inducement to our 
 members who want such protection to secure it in the society where they hold their 
 membership, and should materially reduce the cost of securing the business. In short, 
 the only reason for establishing such departments would be the advantage that would 
 accrue to our members and to our Orders. It would increase the interest of the mem- 
 ber in the Order, because of the financial saving and the convenience of handling it. 
 It would in a way interest the children in the Order, and as they reached the age when 
 they could become members they would be going in the right direction. 
 
 From the foregoing our Committee concludes that this work can be advantageously 
 and economically done by these associations. 
 
 That the benefits should be limited to small sums not over $40 on the life of any 
 child between one year and five years of age, and not to exceed $150 in any case. 
 
 That the mortality table adopted by the State of New York, above referred to, 
 should be made the standard. 
 
 That it would be advisable to require the premiums or rates to be paid annually. 
 _ That no^ one but members of these Orders should be allowed to take advantage of 
 this provision, and that in no case should any one but the parent of the child be 
 allowed to secure such benefits, or the guardian of the child when death of the parent 
 occurs after the issuance of the certificate in such cases. 
 
 That in all cases the protection thus secured should end on the chil',d becoming 
 twenty-one years of age, and that the protection thus afforded be called "INFANTILE 
 PROTECTION." 
 
 Before this work can be undertaken by these Orders two things are necessary : 
 
 First. Legislation must be secured in the different States authorizing it, and to 
 that end provision should be made in the new Uniform Bill, now under consideration. 
 
 Second. Those Orders that want to establish such branches or departments must 
 amend their laws accordingly. Fraternally submitted, 
 
 D. P. MARKEY, Chairman. 
 W. E. ROBINSON, 
 F. FAIRMAN, 
 JOHN T. YATES, 
 
 Committee. 
 
 Mr. Markey also reads section the Committee would suggest be made a part of the 
 Uniform Bill, as follows: 
 
 ''Section Any association authorized to do business under this Act may issue 
 
 certificates upon the lives of the children of its members who are not less than one 
 year or more than eighteen years of age. The amount of protection to be thus fur- 
 nished shall in no case exceed the sum of forty dollars on the life of any child between 
 the ages of one year and five years, and $100 on the life of any child between the 
 ages of five years and ten years, and $150 on the life of any child between the ages 
 of ten years and eighteen years. All such certificates shall be issued for a term of 
 years ending with the attainment of the age of twenty-one by the child upon whose 
 life the certificate is issued. No benefit thus provided shall be payable to any other 
 person than the parent of the child, except in cases where subsequent to the issuance 
 
104 
 
 of the certificate the parent of the child in whose favor the certificate is issued shall 
 have died, in which event the certificate may be payable to the guardian of the child. 
 
 "All contributions necessary to provide such protection shall be based upon the 
 standard industrial mortality table adopted by the State of New York, and interest at 
 the rate of 3 1-2 per cent per annum." 
 
 Mr. Markey : Mr. Landis wishes me to make this statement, which is probably 
 just in this connection : The actuaries of the Prudential, Metropolitan and John Han- 
 cock supplied Mr. Landis with many details and much information, they being informed 
 that the same would be presented to the National Fraternal Congress, in which cir- 
 cumstances your committee desire to acknowledge obligation and express appreciation 
 to the officers of these life companies. 
 
 Mr. Markey: I move that the report of the committee be accepted and placed on 
 file. 
 
 Motion seconded and carried. 
 
 A GENERAL REVIEW. 
 
 Much space has been given to quoting others, and it now may be pertinent to 
 indulge some personal observations in the way of a general review. 
 
 Organization for mutual assistance is of great antiquity and wide distribution. 
 Societies of this kind have not always been as sharply differentiated as they are to-day. 
 In common with other institutions they have emerged from a comparatively indefinite 
 similarity to a comparatively definite heterogeneity, and have doubtless yet to undergo 
 further development. 
 
 The first systematic effort at mutual cooperation along altruistic lines was in 
 the formation of the great trade guilds of the Midde Ages. As the guilds degenerated 
 and gradually outlived their usefulness, the need of substitute organizations became 
 apparent. To the recognition of this need we may trace the rise of the Friendly 
 Societies of Great Britain. Of these, it will suffice to consider a typical specimen, 
 for which purpose I have selected the largest and strongest, the Manchester Unity, 
 I. O. O. F. 
 
 This great body, with a present membership of over a million, is composed of and 
 governed by the laboring classes. Local lodges exist in all parts of the country and 
 manage their own affairs in a thoroughly democratic manner. They are as inde- 
 pendent as the New England town, being, like the latter, subordinate to a central 
 body of strictly limited authority, to which they send representatives. In the local 
 lodge itself one member is as good as another and discussion is perfectly free. The 
 officers of the central governing body are elected annually, with the exception of the 
 Secretary, whose tenure is permanent. 
 
 The founders of the Unity failed to appreciate the nature or magnitude of the 
 financial problems involved in their undertaking. Although the plan of the society 
 contemplated the payment of definite sickness and funeral benefits, no attempt was 
 made to calculate adequate rates of contribution. Aside from the fact that such a 
 calculation would have been impracticable for lack of a sufficient volume of reliable 
 "data, its importance was not recognized. 
 
 There existed in Great Britain the same feeling that we find so prevalent in our 
 own country namely, that "Fraternity" could be depended upon to overcome all the 
 evil results of vicious business habits. That Fraternity is capable of accomplishing 
 much can be doubted by no careful observer; but the tendency to regard it as a 
 panacea is sure, soon or late, to lead to disaster. This the Unity learned in time by 
 the teachings of bitter experience. 
 
 Organized in the year 1812, the Unity grew and flourished for several years, be- 
 
105 
 
 cause its rates sufficed while the members were all young and mostly in good health. 
 In fact, many of the lodges became burdened with accumulated funds, of which they 
 proceeded to relieve themselves by exploiting the social virtues. They little realized 
 that these very accumulations formed their only safeguard for the future when, on 
 account of the increasing age and infirmity of their members, the claims should be- 
 come too heavy to be easily satisfied from the proceeds of Current collections. 
 
 After some thirty years of this loose, improvident operation, it became abundantly 
 manifest to some of the more thoughtful members that the Unity had traveled far 
 on the broad and pleasant road that leads to destruction. Then began an agitation 
 which threatened the very existence of the society through the secession of individuals 
 and entire lodges, but which resulted in a thorough investigation of its past ex- 
 perience and the formulation of adequate rate tables for future use. With the 
 adoption of these tables in 1854, the Unity opened a new chapter in its history which 
 thenceforth has been an uninterrupted record of growth and prosperity. One more 
 reform needed to be, and was, instituted in the decade ending in 1870, by which year 
 quinquennial valuations had become compulsory. 
 
 The record of the Unity demonstrates that it is quite within the capacity of the 
 laboring classes to conduct a great business on democratic principles. It is an object 
 lesson which justifies a most optimistic attitude toward future industrial conditions. 
 As such, it has attracted the favorable attention of the actuaries, economists, and 
 legislators of Great Britain, all of whom seem to have recognized the fact that they 
 were confronted with a phenomenon of most hopeful import. It is regrettable that a 
 similar movement in this country has received far less sympathetic treatment from 
 experts and officials. Some reasons for this difference of attitude will be given 
 later. 
 
 In the United States, prior to 1868, there were no organizations closely resembling 
 the British Friendly Societies. It is true that secret societies, such as the Freemasons 
 and Odd Fellows, and trade unions were accustomed to assist distressed members, but 
 such work was more or less incidental and not the main object of their existence. 
 Furthermore, the help so extended partook of the nature of charity; that i'S, it was 
 dictated by sympathy or fraternity instead of by contract. 
 
 In 1868, however, John J. Upchurch, a Pennsylvania workingman, founded the 
 Ancient Order of United Workmen, in the plan of which mutual insurance was 
 dominant, although the features characteristic of secret societies in general were by 
 no means ignored. In various centers in the State were organized local, self-governing 
 lodges which were entitled to send delegates to the grand lodge at Meadville, the 
 central legislative body, the elected officers of which managed the financial affairs of 
 the society and compelled obedience to the by-laws on the part of the local bodies. 
 In fact, the grand lodge, although a representative assembly, was the real source of 
 authority, the self-government of the local lodge being based on sufferance rather 
 than on right. 
 
 As the society spread into adjacent States and additional grand lodges resulted, 
 the supreme lodge was organized at Meadville in 1871, for the purpose of harmonizing 
 the work. Its function is advisory, rather than authoritative, the grand lodges having 
 declined to surrender their independence and having reserved the right to repudiate 
 their allegiance to the supreme body. 
 
 The rapid growth of the Workmen, indicating that it met a popular want, of 
 course inspired imitation, and to-day there are in the entire country upwards of three 
 
106 
 
 hundred fraternal beneficiary societies. They all have representative government, the 
 lodge system and ritualistic ceremonies ; in fact, these features are required by the 
 statutes of most of the States. 
 
 In respect of benefits offered and rates charged, they exhibit all the picturesque 
 variety of which the untrammeled human fancy is capable. 
 
 That there need be any particular relation between the respective values of the 
 benefits promised and of the contributions charged never seemed to occur to the 
 founders of these societies. 
 
 In fact, all suggestions of that nature were brushed aside as smacking of theory 
 and, therefore, unworthy of consideration by practical men who had competition to 
 meet and could guess just as clearly as their rivals. 
 
 In the seventies, a great impetus was given to the formation of fraternal beneficiary 
 societies by the failures of old-line life companies and the startling disclosures as 
 to the methods followed by some of the most prominent among them. 
 
 To the disgruntled victims of old-line methods, the siren voice of the fraternal 
 beneficiary society was sweet indeed. 
 
 Within the sacred precincts of the lodge room they could denounce to a sympathetic 
 audience the "outrageous treatment" to which they had been subjected by a "soulless 
 corporation" and could resolve to demonstrate to the world the possibility of com- 
 bining the business of mutual insurance with the practical exemplification of the 
 golden rule. 
 
 The idea was a noble one, albeit somewhat too elevated for present-day human 
 nature and insufficiently enlightened by a knowledge of the cost of insurance. 
 
 To fraternalists the mathematical reserve on life policies has always been a more 
 or less unholy mystery. 
 
 Having, in the old tontine days, seen this accumulation confiscated in the case of 
 lapsing members, it was a natural inference that a similar course was followed in 
 respect of the dead. 
 
 Obviously these millions of reserve bore a sinister aspect and represented an 
 unnecessary burden on the helpless policy-holder. 
 
 Thus originated the popular battle cry of "Keep your reserve in your pocket." 
 
 For many years the societies remained true to their principles and sedulously avoided 
 accumulation, and only with the utmost reluctance did they begin to abandon the 
 practice under the irresistible pressure of experience. 
 
 In the oldest societies, such as the Workmen, business principles were at first 
 completely subordinated to the demands of fraternity. 
 
 No discrimination was allowed because of age, occupation, residence, or physical 
 condition all members were on a perfect equality. 
 
 That such methods did not wreck the society before it was fairly launched is 
 conclusive proof that the fraternal tie is more than an empty sentiment. 
 
 Slowly, but none the less surely, the faulty system of the Workmen has been mended 
 until now the supreme lodge urges with all the force at its command the adoption 
 of a plan prepared under the guidance of a competent actuary. 
 
 In other words, here, as in Great Britain, the common people have demonstrated 
 their capacity to manage large enterprises on democratic lines. 
 
 To one who has the welfare of humanity at heart, few signs could be more en- 
 couraging. 
 
 Comparatively few societies have imitated the Workmen's original example of a 
 uniform rate of assessment at all ages. 
 
 
107 
 
 We find the vast majority adopting the system of rates graded to admission ages 
 and remaining level thereafter. Within a few years, a society so operated would find 
 itself composed of groups, corresponding to entrance ages, each containing members 
 of various ages paying the same rate. 
 
 In short, a compound Workmen plan had been substituted for the original simple 
 device, with little or no practical advantage. 
 
 Of one society, the National Union, special mention should be made, because of 
 the fact that it started on the step-rate principle, the rates being graded by ages and 
 each member being required to pay the rate corresponding to his attained age on 
 January first of each year. This plan was defective because of the fact that the rate 
 schedule stopped abruptly at age 65, no adequate provision having been made for mem- 
 bers who should pass that point. It is particularly gratifying to be able to say that 
 this weakness has now been overcome through the efforts and upon the initiative of 
 the officials of that Society. 
 
 In course of time, the older societies began to experience difficulties. 
 
 In spite of their most strenuous efforts, they found themselves compelled to levy 
 assessments more and more frequently, with the result that they were unable to 
 compete on equal terms with their younger rivals. 
 
 The latter, having learned something from the experience of their predecessors, 
 endeavored to prevent their own future- decay by every fantastic device that the will 
 of man could conceive. 
 
 Some of these were actually patented, which fact would indicate that their inventors 
 at least believed them to be effective. 
 
 A study of these various schemes to secure the advantages of a mathematical 
 reserve, without accumulating it, will convince any unprejudiced mind that the in- 
 genuity of ignorance is still in active operation. 
 
 Fortunately, the older societies do not find these vagaries attractive, but manifest 
 a tendency to readjust along scientific lines, with the assistance of expert advice. 
 
 An important distinction between the British friendly and the American fraternal 
 beneficiary societies should not be forgotten. 
 
 The main purpose of the former was and is the payment of sickness and funeral 
 benefits, and, although some- of them offer ordinary life insurance, the maximum risk 
 assumed on any one life is 200 pounds. The American societies are essentially mutual 
 life insurance organizations, although some of them pay limited sickness and accident 
 benefits. The most popular certificates have a face value of $1,000 or $2,000, but not 
 infrequently they are written for $5,000. 
 
 The foregoing distinction may help to explain why in the one country the attitude 
 of the actuaries is tolerant or sympathetic, while in the other it is hostile. Practically 
 all of these gentlemen are, or have been, connected with old-line companies, and have 
 thus become somewhat biased, perhaps unconsciously. 
 
 The British societies occupy a field of their own, their competition with the business 
 corporations being hardly perceptible. 
 
 The American societies, on the other hand, are active and most successful com- 
 petitors of life companies. 
 
 Furthermore, the founders of the fraternal societies provoked the experts by 
 sneering at them and ignoring their sometimes disinterested advice. 
 
 At first glance the situation would seem to be unfortunate, but the indications 
 are that it may result in the development of a new generation of actuaries, unfettered 
 by traditions. 
 
108 
 
 The fraternal beneficiary system is now in its forty-sixth year, and its amazing 
 vigor is a source of perennial grief and astonishment to its old-line critics who re- 
 garded it at first with the kind of intolerant contempt that Alexieff used to display 
 toward the Japanese. 
 
 It seems impossible for men to learn that there are more things in heaven and 
 earth than are dreamed of in their philosophy. 
 
 I The Ancient Order of United Workmen which, by all the rules of orthodoxy, ought 
 to have perished years ago, has been subjected to the fire-test and still lives. 
 t It is evident that we are here confronted with a phenomenon that defies mathe- 
 matical analysis. The plans of the fraternal beneficiary societies may be simultaneously 
 abhorrent to mathematics and acceptable to human nature. 
 
 The policy-holders of an old-line company, even though it be the mutual variety, 
 are practically impotent to affect its management, being without organization or 
 knowledge of one another's ideas. As few of them can attend the annual meetings, 
 they usually designate as proxies men of whom they never before heard, and of whose 
 opinions they are blissfully ignorant. They feel and are as helpless as the depositors 
 in a bank who place their trust in the honesty and sagacity of the officers and hope 
 for the best. This is business, pure and simple, and to it business principles apply 
 in all strictness. ~ 
 
 The members of a fraternal beneficiary society are organized in numerous local 
 lodges, which hold meetings at least once a month and sometimes every- week. Here 
 the members become acquainted and here they discuss every detail of their co- 
 operative enterprises. As the time approaches for the regular annual or periodical 
 meeting of the supreme body, they elect thereto trusted representatives, whom they 
 may instruct if they so desire. There develops in these members a very active feeling 
 of proprietorship in their society and of loyalty to its interests. It is, so to speak, 
 their child, and they will endure no inconsiderable sacrifices to conserve its existence. 
 To such a condition, business rules and principles are inadequate, as they ignore the 
 most vital feature of the phenomenon. 
 
 That the foregoing is the true explanation of the failure of facts to verify 
 actuarial predictions is indicated by another striking circumstance. 
 
 About the time that the fraternal beneficiary movement originated there were 
 organized on the same faulty plans, but with government similar to that of the 
 old-line companies, a number of assessment associations. Although their officers were, 
 as a rule, more keenly sensitive than 1 those of the/ fraternals to approaching dangers, 
 yet, with a single exception, due to peculiar conditions, every one of the original and 
 prominent associations has disappeared or has been transformed into a legal reserve 
 or stipulated premium company. As Carlyle would have said, "This is significant of 
 much." 
 
 As a direct result of the lodge system, the societies minimize the expense of field 
 work. A comparison of the respective costs of management of the business com- 
 panies and the fraternals is highly enlightening. 
 
 If it be argued that lodge dues have been ignored in the comparison, the answer 
 is that their main object is to pay for fraternal features for which there is no 
 counterpart in an old-line company. Nor are these features imaginary. We find them 
 sufficiently powerful to hold together vast societies like the Masons and Odd 
 Fellows, which do not pretend to conduct an insurance business. Millions have been 
 paid by the local lodges for the relief of members who were sick, injured, or out 
 of employment. Other millions have been expended in social entertainment, which is 
 a feature not to be overlooked when estimating what has been accomplished by these 
 
109 
 
 bodies. I have noted, in many publications, slurs cast at this latter kind of ex- 
 penditure. Those who belittle the social feature evince ignorance of one of the 
 strongest points in favor of mutual insurance under the lodge system. 
 
 Life insurance, per se, is taken and carried for the protection o>f dependants. 
 No benefit is realized until the death of the insured, and, consequently, he who carries 
 and pays for the insurance has no other satisfaction from it than that derived from 
 the consciousness that he has provided for loved ones in the event of his death. 
 Of itself, such a performance indicates a high and noble purpose. 
 
 Man owes a duty to himself, and when this can be combined with that owed to 
 his family, much has been accomplished toward the consummation of a perfect system 
 of social organization. The lodge meetings not only provide the ordinary pleasures 
 of social intercourse, but under the influence of the teachings of the ritual, they 
 are an inspiration to higher ideals, and beget the altruism that turns the mind out- 
 ward and makes men wish to live for others beside their own immediate families. 
 
 This social feature of the fraternities has saved thousands from drunkenness and" 
 other forms of dissipation into which they otherwise would have plunged in their 
 blind quest of pleasure. 
 
 Many of these societies accept members of both sexes, and most of them absolutely 
 bar alcoholic liquors from their lodge rooms. 
 
 The combination of life insurance operation along with fraternal and social rela- 
 tions is one that appeals to reason and sentiment and tends to popularize co- 
 operative effort for mutual protection. 
 
 The life companies have recognized this fact and have undertaken to minimize its 
 effect by representing that they sold policies under which the insured did not "have to 
 die to win." 
 
 An important difference between the old-line and fraternal systems is in respect 
 of elasticity. 
 
 The life company is rigid, the contract being definite as to both benefits and con- 
 tributions. For the sake of safety, the company is, consequently, obliged to over- 
 charge. 
 
 In the fraternals the amount that a member will be required to pay from year to 
 year is seldom entirely definite. 
 
 His assessment rate may be established in the by-laws, but almost invariably these 
 are subject to amendment by the supreme legislative body. 
 
 Furthermore, it is not unusual to find a provision whereby no claim can exceed the 
 proceeds of one assessment on the entire membership. 
 
 As the provision for expense of management is generally quite definite, there re- 
 sults not only the ability to collect each year the exact cost of protection, but a 
 most effectual discouragement of extravagance. 
 
 The members have never shown a disposition to endorse the doctrine that the 
 services of some men are worth from fifty to a hundred times as much as those 
 of the average citizen, and, as a consequence, salaries above $5,ooo are rare. Strange 
 as it may seem to those conversant with old-line conditions, capable officers are 
 secured without difficulty, in spite of the uncertain tenure of their position. The 
 wisest selections may not always be made, but, on the other hand, the unfit do not 
 survive. 
 
 Democratic government naturally involves politics, and from the latter it must be 
 confessed that the fraternals are not exempt. That this circumstance is to their 
 detriment is by no means certain. Political aspirations are distinctly honorable when 
 not tainted with graft. From suspicion of graft, the administration of the societies 
 
1 10 
 
 has been singularly free. Although large sums of money have been handled, the 
 losses that have occurred have been due almost exclusively to faulty judgment. Even 
 such losses have been inconsiderable. In fact, in respect of both honesty and 
 economy of management, the fraternals can well stand the test of comparison with 
 old-line companies. 
 
 Although enough has been said to indicate that the fraternal beneficiary system is 
 in harmony with existing conditions in the United States, it will be useful to in- 
 vestigate its prospect of permanence. 
 
 In the first place, let it be premised that the failure of individual societies proves 
 nothing against the principle upon which they were founded if other adequate causes 
 are known to exist. The whole movement is still in the experimental stage, for which 
 reason alone uninterrupted success would be little short of miraculous. 
 
 Representative government has not in every instance proved equal to the tasks 
 imposed upon it, but it has shown an ability to profit by experience. 
 
 With few exceptions, the recent history of the societies under consideration has 
 been most encouraging. There is every indication that- the great majority of them 
 will, through their own efforts and without compulsion, so reform their faulty plans 
 as to assure their financial stability. 
 
 They enjoy the advantages of representative government and have demonstrated 
 their ability ^o modify their plans when the latter have proven unsatisfactory. 
 
 They are attempting to provide cheap protection for their families and they 
 are accomplishing their design, not perfectly it is true, but with really amazing 
 success. 
 
 A single one of these societies has since its organization paid in death claims not 
 less than $225,000,000. This enormous sum of money has gone to the widows and 
 orphans of men who would have carried far less insurance or none at all had it not 
 been for the existence of the fraternals. 
 
 Popular government has been sufficiently tested to justify my belief that the 
 fraternal orders will not fail, in the long run, if let alone. 
 
 They can be killed, doubtless, and against this danger the only safeguard is eternal 
 vigilance. 
 
 Their success, as I have already intimated, means much to the cause of humanity. 
 
 No thoughtful observer can regard our present industrial regime as final. With 
 its remittent warfare between capital and labor, it is obviously a temporary condition. 
 By what is it to be succeeded? 
 
 Shall it be the deadly stagnation of socialism, or shall opportunity be left for the 
 development of individualism which has played so prominent a part in the history of 
 the human race? 
 
 Perhaps, if the great business of life insurance can be successfully conducted on 
 democratic principles, the outlines of the answer may become discernible. 
 
 Possibly capitalists, as a distinct class, may become as unnecessary as an hereditary 
 aristocracy. 
 
 One may be permitted to indulge the dream that some day capitalist and laborer 
 may be combined in the same person, and that great industries may be competently 
 managed by officers elected by the whole body of the workers There is nothing in- 
 credible in the supposition, which is, on the contrary, in line with the course of human 
 evolution. Such a condition would allow free play to individual ambition and tend 
 to abolish strikes and the existing abnormal contrasts of wealth and social position. 
 
 Since reforms are inaugurated by movement of the masses, and since five millions 
 of the wage-earners and breadwinners in the United States and ten millions in 
 
1 1 1 
 
 Great Britain are taking lessors in economical science froni the best of a 1 ! teachers, 
 Experience, is it beyond reason to anticipate development of the mutual and co- 
 operative principle underlying fraternal society management in the business relations 
 between producers and consumers, the great majority of whom are the wage-earners 
 and breadwinners of the country? 
 
 To be more definite, let me call attention to the fact that the insurers and the 
 insured are the same persons in a fraternal beneficiary society. 
 
 The officials and managers are strictly and truly the agents of the members from 
 whom the contributions are collected and to the beneficiaries for whom they are 
 distributed. 
 
 No capitalist stands between the contributing members and the dependants of 
 deceased members. 
 
 Only a central office, with competent agents in charge, is needed for the collection 
 of millions from the many, and the distribution of the same in the payment of 
 promised benefits. 
 
 Why is it not possible to extend this principle of mutual cooperation, and 
 entirely eliminate the capitalist and forever be rid of his exploitation of labor with 
 its attendants of fricton and ferment? 
 
 Will not the masses, some day, learn the general application of this principle? 
 
 The fraternal beneficiary system has a profound significance; it is symptomatic of 
 the times, and what it needs is intelligent direction with a minimum of State in- 
 terference. 
 
 Any institution that has distributed to widows and orphans, within four decades, 
 the enormous sum of more than seventeen hundred millions of dollars, $100,000,000 of 
 which was paid out in 1913, is certainly entited to serious consideration by those who 
 make a study of political and social science. 
 
 Two hundred of the existing societies have promised to pay death benefits amount- 
 ing to more than nine thousand millions of dollars. The ability to fulfill their promises 
 means much in .more than four million of American homes. Penury, misery, and 
 crime will result from inability to carry out their contracts of insurance. 
 
 READJUSTMENTS. 
 
 Readjustments have been necessary under all systems of life insurance. 
 
 There could have been no development nor improvement without readjustments. 
 
 In the early forms of life insurance there were no definite promises in the way of 
 benefits or contributions. 
 
 It has been a wonderful evolution from the "box," nailed to the wall of a public 
 house from which charity pittances were dispensed, to the treasuries containing bil- 
 lions for the protection of widows and orphans and the relief of the disabled and the 
 aged. 
 
 "Dreams in their development have breath, and tears, and tortures, and the touch 
 of joy;" and not dissimilar has life insurance, in its growth and progress, its reverses, 
 its trials, its failures and its final success. 
 
 Many pages have been given to the history of life insurance organizations and 
 their fanciful undertakings and their material accomplishments. The attainment of 
 the goal of perfection is yet to be recorded. 
 
 In the making for the ultimate end, original plans many times have been changed 
 by the organizations which have survived the ordeal of conversion. 
 
112 
 
 In so far as financial solvency] is concerned the life companies have gone ahead of 
 the fraternal beneficiary societies ; under the whip, however, of State compulsion. 
 
 Statutory standards were set and the life companies were compelled to measure 
 up to them or go into the hands of receivers. 
 
 Mortality demands forced changes in the plans and rates of fraternal beneficiary 
 societies. No legislative enactment prescribed the test of adequacy nor fixed any 
 standards as guides to financial solvency. In these circumstances there has been 
 resort to every conceivable expedient to avoid the adoption of the simple, direct 
 method of requiring contributions to provide for the promised benefits. 
 
 Legislation and regulation placed life companies in a sound financial position, or 
 put them out of business. The results of legislation and regulation applied to fra- 
 ternal beneficiary societies will not be different. 
 
 Situations in Great Britain and in America have been identical in respect of fra- 
 ternal societies and their adoption of makeshifts rather than substantial reforms in 
 their efforts to thwart the operation of natural law. 
 
 In both countries inadequate contributions for the benefits promised have been 
 characteristic of fraternal and friendly societies, and the universal practice has been 
 to favor the older at the expense of the younger members. 
 
 When the discrimination is disclosed to the younger members, and when it is pro- 
 posed to require the older members to contribute in proportion to their equitable 
 share in the losses, the former join the latter in denouncing such a proposition as "un- 
 fraternal" and no more nor less than a scheme to freeze out the old man. 
 
 Because it has been impossible to overcome this sentiment, I have been a party 
 many times to the apportionment of accumulated funds to the use of those who had 
 contributed nothing towards the accumulation. I have always stated the fact of ap- 
 propriating what belonged to one for the advantage of another, but that other being 
 an aged brother justified the act to those making the sacrifices. 
 
 It seems never to occur to those who insist upon such apportionments, that all 
 who are old are not indigent and in need of being assisted in the payment for their 
 insurance protection ; that the young have most dependants and many times are sorely 
 pressed to make their monthly contributions. 
 
 These things I have urged to no avail, and to accomplish results I have ap- 
 portioned funds as stated. I have never had a law suit over such an apportionment, 
 whereas when rules of equity entered into the division of funds, in every instance, 
 save one, a petition has been filed praying for an injunction against it. 
 
 The first notable change from original to new plans was that of the Ancient Order 
 of United Workmen in 1895, when the "Classified Plan" was adopted and the "Equal 
 Levy Plan" abandoned in so far as these things could be accomplished by the Su- 
 preme Lodge. As a matter of fact, only such Grand Lodges as were in financial 
 straits adopted the "classified" or so-called "step-rate" plan. The others for some 
 time continued to levy $1.00 assessments on all members, regardless of age, whenever 
 assessments were needed. 
 
 The "Classified Plan" placed the membership in age-groups. Those who were 
 18-24 paid at the rate for that group to 'age 25, then they paid an increased rate for 
 five years until they attained 30 years of age. The advance continued to 55 years 
 of age, when the rate per $1,000 at each assessment was $1.92 for the remainder of 
 life. All members 55 years of age and older at the time of readjustment were given 
 the level, whole life rate of $1.92 each assessment per $1,000. 
 
113 
 
 When I ventured the opinion that the "Classified Plan" was unscientific, unstable, 
 and inadequate, in that it would fail to provide for the protection at ages older than 
 55, I was severely denounced by A. O. U. W. officials as an enemy to the fraternal 
 system and altogether an undesirable person in the camp of fraternal beneficiary 
 societies. 
 
 In 1903 the Supreme Lodge of the Ancient Order of United Workmen officially 
 recognized the inadequacy of the "Gasified Plan" and adopted for itself and re- 
 quired Grand Lodges to adopt adequate, level and uniform rates graded to ages of 
 entry, and applied at attained ages of existing members younger than a designated 
 age. This limitation ir their application created deficiencies too great for the con- 
 tributions and funds. In consequence subsequent readjustments were necessary. 
 
 With few exceptions every readjustment of contribution rates by fraternal ben- 
 eficiary societies has favored the older members by rerating as of ages of entry, or by 
 applying the rates as of attained ages younger than 49, 55, 60, 65, or 70 years of age. 
 
 Seldom have the funds in hand at the date of readjustment been equal to the 
 present value of the deficiencies created by granting to members contribution rates 
 lower than required at their attained ages. 
 
 However, in many instances, careful calculations have been made in the effort to 
 limit the deficiencies to such an amount in present worth that it would not exceed 
 the estimated present value of future gains and savings. 
 
 Some of these estimates are being realized in practical operation. 
 
 Others have not been realized, largely due to heavy withdrawals, adverse mor- 
 tality experience and failure to introduce new members in numbers sufficient to 
 neutralize the bad effects resulting from the change. 
 
 It appears to have made little difference in resulting dissatisfaction and disruption 
 whether or not large, or small, or no concessions were made to the older members. 
 
 The mere fact of change in contribution rates created disturbances, withdrawals 
 and adverse selection. 
 
 In the readjustment of the Knights of the Maccabees of the World in 1904 and 
 that of the Royal Arcanum in 1906, there were no increases of rates at ages younger 
 than 55 and 65 respectively, so that the readjustments only immediately affected mem- 
 bers older than those ages, yet the Maccabees lost upwards of 40,000 and the Royal 
 Arcanum a somewhat larger number of members at the younger ages. 
 
 The older members received great favor and in return complained and criticised 
 and protested and indulged in bitter denunciation and instigated litigation and hesi- 
 tated at nothing that would embarrass the management and remained in the So- 
 cieties. 
 
 The younger members, alarmed or disgusted, quit. 
 
 The action of the older members has been to their own disadvantage. By encour- 
 aging the young to withdraw, or in assuming an unfriendly attitude to incite them 
 to withdraw, the older members lose the obvious advantages from association and 
 cooperation with the young. 
 
 Had they been appreciative of the shifting of much of their burdens to other 
 shoulders, and had they loyally helped to retain the young and assisted in securing 
 new members, the deficiencies created by granting to them favors could have been 
 overcome by the estimated gains and savings incident to cohesive mutual cooperation 
 and an increasing membership. 
 
 Wherever and there are a number of such cases the members have acquiesced 
 in a rerating and have supported the management in its effort to increase the busi- 
 
114 
 
 ness, no readjustment has failed because of deficiencies due to favors to old members 
 where such deficiencies were within the estimates of the consulting actuaries. 
 
 Many makeshift readjustments have been made on the initiative of members or 
 their representatives contrary to the advice of actuaries and, though accepted by mem- 
 bers, have proved a failure. 
 
 It will be noted that I have referred only to changes in contributions under the 
 mention of readjustments. 
 
 However, one amongst the first readjustments (in 1898) was that of the American 
 Legion of Honor, where the main feature consisted in reducing $5,000 certificates to 
 $2,000. This was successfully resisted in the courts, and only with the consent of mem- 
 bers, or in optional form, has it since been attempted to reduce benefits. 
 
 In Great Britain the reduction in benefits has more often been adopted, under the 
 advice of actuaries, than to increase the contribution rates. The Actuaries for the 
 Manchester Unity make the following interesting comments on the different methods 
 of readjustment and their effect: 
 
 It may be assumed that the deficiency is due to original unsoundness of principles, 
 and that it has been accumulating for many years. Actuarily a reduction of benefits 
 would be advised in such a case, but having regard to the preference for increase of 
 contributions which is frequently disclosed, it is proposed to show the effect of all 
 the measures that may be regarded as either practically or theoretically possible. As- 
 suming that the whole of the deficiency is to be removed these measures may be stated 
 as follows: 
 
 (a) Reduction of the sick benefits to io/- per week for 26 weeks ; s/- per week 
 afterwards. 
 
 O) Reduction of the sick benefits to I2/- per week for 26 weeks; 6/- per week 
 for 26 weeks ; 3/8 per week afterwards. 
 
 (c) Division of the deficiency amongst the members pro rota to length of 
 
 membership, and conversion of the amount debited to each member into 
 its equivalent annual contribution. 
 
 (d) Division of the deficiency amongst the members in equal sums and con- 
 
 version of the amounted debited to each member into its equivalent 
 annual contribution. 
 
 O) Increase of the contributions by an equal sum per member without regard 
 to duration of membership or age. 
 
 Each of these measures will have a definite and ascertainable effect in money value 
 upon the contract into which the society has entered with each member. In order to 
 contrast these values it is convenient to set them out at each age in parallel columns ; 
 this is done in the following statement : 
 
 CASH VALUE OF DEFICIENCY DEBITED TO EACH MEMBER BY 
 AGE. Method. Method. Method. Method. Method. 
 
 
 ( 
 
 a) 
 
 ( 
 
 V 
 
 
 (<0 
 
 (rf) 
 
 ( 
 
 f) 
 
 
 
 
 s. 
 
 i 
 
 s. 
 
 i 
 
 s. 
 
 i s 
 
 
 
 S. 
 
 20 
 
 3 
 
 17 
 
 2 
 
 14 
 
 
 Nil 
 
 5 
 
 6 
 
 IO 
 
 30 
 
 4 
 
 9 
 
 3 
 
 14 
 
 3 
 
 2 
 
 5 
 
 5 
 
 16 
 
 40 
 
 5 
 
 5 
 
 5 
 
 2 
 
 6 
 
 3 
 
 5 
 
 4 
 
 18 
 
 50 
 
 6 
 
 4 
 
 7 
 
 O 
 
 9 
 
 4 
 
 5 
 
 3 
 
 19 
 
 60 
 
 7 
 
 6 
 
 9 
 
 14 
 
 12 
 
 6 
 
 5 
 
 2 
 
 16 
 
 70 
 
 8 
 
 4 
 
 13 
 
 O 
 
 15 
 
 8 
 
 5 
 
 I 
 
 16 
 
 Before considering these figures it will be convenient to show the equivalent annual 
 
115 
 
 contributions to the cash shares of deficiency debited in effect to each member by 
 methods (c), (d) and (e}. These are as follows: 
 
 AGE. Method. Method. Method. 
 
 (O (rf) (e) 
 
 s d s d s d 
 
 20 Nil 44 57 
 
 30 030 4 10 57 
 
 40 070 58 57 
 
 50 o 13 o 72 57 
 
 60 i 3 10 9 10 57 
 
 70 257 15 o 57 
 
 Dealing first with the cases of increase of contributions, it will be agreed that in 
 principal, method (c) is, of the five plans, the most equitable, but on referring to the 
 statement of equivalent contributions it is seen that the amounts under this method 
 increase rapidly with age and result at the age of 60 in more than doubling 1 the con- 
 tribution hitherto paid, and at the age of 70 in the increase of such contribution by 2 
 5s. 7d., /. e., from 19/6 per annum to 3 5s. id. Such a method, however desirable in 
 theory, is therefore wholly impossible of practical application. Method (d) is less 
 equitable theoretically, and practically is also excluded by the large increase of con- 
 tributions at the old ages which it necessitates. Method (e) uniform increase of con- 
 tributions is the system generally preferred by friendly societies, but it will be seen 
 to be the most inequitable of all the possible plans, as it places the maximum, charge 
 upon the youngest members who by hypothesis have created no part of the deficiency, 
 and debits the minimum liability to the oldest members who are responsible pro- 
 portionately for the existence of the greatest part of the deficiency. 
 
 Reverting to the alternatives of reduction of sick pay, it will be seen that method 
 (a) reduction of all benefit by one-sixth whilst inequitable so far as it places some 
 part of the deficiency on the younger members, does, at any rate, act in the direction 
 of equity by debiting a minimum sum, to the youngest and a) constantly increasing 
 charge (up to the age of 70) on the older members. Method (fr) is still less inequi- 
 table both in its effect upon the younger members and as giving a charge at the higher 
 ages approximating to that presented by method (c), which as above suggested, may be 
 regarded as the theoretical ideal. 
 
 From these examples it is clear that the reduction of benefits will operate more 
 equitably, in general, than the increase of contributions on any scale that would be re- 
 garded as practicable, and if the reduction of benefits be advised in the valuation re- 
 ports it will be wiser of lodges to accept that course, and if need be to give young mem- 
 bers the opportunity of effecting new assurances, according to present ages, of such 
 additional benefits as will bring the amounts up to the original scale, than to repudiate 
 the actuarial recommendation and to substitute some uniform increase of contribu- 
 tions in which no regard is paid to the relative values of the burdens respectively placed 
 upon young and old members. 
 
 Sufficient has been written to show that the favorite method of uniform increase 
 of contributions is, of all practicable plans of dealing with deficiencies the most in- 
 equitable in operation. It remains to be shown that it is the least effective. The cal- 
 culations have proceeded so far upon the assumption that all members remain in the 
 assumed society, and accept the sacrifices imposed upon them, but the position should 
 also be examined on the assumption that (a very general consequence of reforms) the 
 young members refuse to agree to the changes and withdraw. At the youngest age the 
 full benefits and contributions are of practically equal value, and any change in either 
 the one or the other sets up "negative values," which are immediately lost on the with- 
 drawal of the members concerned. If, therefore, it be assumed that the 30 members 
 taken as at the age of 20 withdraw, the deficiency is partially restored by all methods 
 except (c). Such restored deficiency with the corresponding proportion of assets to 
 liabilities is as follows: 
 
 (a) Deficiency, 109; percentage of assets to liabilities, 95. 
 (6) Deficiency, 70; percentage of assets to liabilities, 97. 
 (c) Deficiency, Nil ; percentage of assets to liabilities, 100. 
 
116 
 
 (rf) Deficiency, 153; percentage of assets to liabilities, 94. 
 (e) Deficiency, 193; percentage of assets to liabilities, 92. 
 
 Whilst method (c} alone would leave the position unaffected, the adoption of 
 method (e), embodying the equal increase of contributions would be followed by the 
 re-appearance of over one-third of the original deficiency and the decline of the assets 
 to 92 per cent of the liabilities. The results produced by such method would conse- 
 quently fall seriously short of those intended, and the necessity for a further adjust- 
 ment at a very early date would be set up. When the second adjustment came to 
 be made it would be found the more difficult of application because the society would 
 have lost all its youngest members and would have to impose an entirely undeserved 
 burden upon the younger of those remaining. 
 
 It may be suggested to us that the withdrawals resulting from the adoption of re- 
 formative measures are not confined to young members, and that the profits from seces- 
 sions at the more advanced ages will be sufficient to counterbalance the losses sus- 
 tained by the lapse of youthful contributors. In some cases, and to some extent, this 
 may be the experience; but, as we explain elsewhere, the members of advanced age 
 who withdraw are very frequently persons of superior health or financially independent 
 of the sick pay, and the result of their defection is to lessen the contribution income 
 whilst leaving the volume of claims virtually unaffected ; an apparent immediate profit 
 being thus neutralized by a subsequent increase in the rate of sickness amongst the 
 members remaining. The expectancy of profit from this soured is, therefore, in great 
 measure, illusory and little weight should be given to it. 
 
 As a final experiment we have assumed that no measures are taken for the rectifi- 
 cation of the position and that the society maintains the present financial arrangements 
 until the funds are exhausted and it breaks up. We have ascertained what is the 
 present equivalent of the average financial loss sustained by those members who will 
 be surviving 'at that date, which we find to be 35 years distant ; and when, therefore, 
 the youngest member will be aged 55. For greater clearness we have assumed that no 
 new members will be admitted. This assumption in no way lessens the value of the ex- 
 periment, for whilst new members accepted on contribution terms that are adequate 
 as regards their own benefits may prolong the life 1 of a society in deficiency they cannot 
 perpetuate it. Collapse is inevitable if no reformatwe measures are taken, and it is 
 merely a question as to which particular members are to be the victims. 
 
 It is found, then, in the event supposed that the funds are exhausted after 35 years, 
 at which period the total number of members surviving will be 43. On ascertaining 
 the average amount of funds that ought to be in possession at that date in respect of 
 each member, and allowing for interest from the present up to that time, the follow- 
 ing represents thei loss per member sustained, this being exhibited! according to the 
 present number and ages of the members. 
 
 Present Value of Average Loss 
 per member (for all members now 
 
 Present existing) by exhaustion of fund 
 
 Age. after 35 years 
 
 s d 
 
 20 ; 8 10 O 
 
 30 i 8 16 10 
 
 40 4 19 o 
 
 50 o 14 
 
 60 Nil 
 
 70 , Nil 
 
 Thus the greatest loss falls upon the youngest members those now aged 20 and 
 30 whilst in the case of the present old members, whose lifetime the Society will last 
 out, the loss is nil. The effect, on the average, of repudiating reform in such a case 
 may be described as taxing a man of 20 to the extent of 8 los. od., having already 
 charged him the full contribution for his benefits, whilst putting no tax whatever on 
 the man of 70 to whose original shortcomings (with those of his deceased contempora- 
 ries) the deficiency is attributable. 
 
 It will be noted that in the above table the average loss per member existing at 
 each present age is given. Whilst all surviving will be too old to join another society 
 
 
117 
 
 35 years hence, and in that sense will suffer positive loss, the members most affected 
 by the collapse of the society will be those whose deteriorated condition of health, or 
 perhaps actual invalidism, will have made them prospective claimants of large amounts. 
 It is clearly impossible to gauge the full extent of the injury sustained in such cases, 
 and as no young member can foresee whether he personally will be so situated many 
 years hence as to need the constant help of his society, it should be realized by each 
 one that whilst the average loss is serious there is a probability that the loss to him 
 individually may be far in excess of that average. 
 
 I desire to direct particular attention to the concluding paragraphs. 
 
 Court decisions in this country prevent a readjustment by reduction of benefits, 
 unless with written consent of the insured, nevertheless the Messrs. Watson clearly 
 demonstrate that greater equity can be obtained by reducing benefits than by increasing 
 contributions. 
 
 The reason why inequity results when contributions are increased is that it isf im- 
 practicable to make the increase for advanced ages proportionate to the deficiencies 
 created by the aged members. 
 
 This is strongly brought out by the analysis of readjustment plan (c) , which 
 Messrs. Watson declare to be the ideal reformative measure, considered theoretically, 
 but impractical when applied to actual conditions : 
 
 The effect of a readjustment which goes to the extreme in burdening the young 
 members, such as indicated by plan (e), is forcibly demonstrated by the Unity Ac- 
 tuaries. 
 
 The effect of doing nothing is graphically set forth in the concluding demonstrations. 
 
 At a small outlay the Eighth Valuation Report, made by the Messrs. Watson, can 
 be secured from the Manchester Unity Offices, 97 Grosvenor Street, Manchester, Eng- 
 land, and I commend it to those who desire to pursue this subject. 
 
 The general method for readjustments in the United States and Canada has been 
 to increase the contribution rates, with options for continuing the existing rates and 
 having designated amounts charged as liens against certificates to be deducted at death 
 (sometimes with and sometimes without interest)." 
 
 When actuarial advice has been ignored or never sought the favorite method has 
 been to adopt a net contribution scale according to some standard table of mortality 
 (most often the National Fraternal Congress Table of Mortality and 4 per cent in- 
 terest) and apply these rates as of ages at entry into the Society, and to apply the 
 same rates to new members at their attained ages' on entering the Society. All mem- 
 bers were then put into mutual cooperation and the excess contributions of the recent 
 entrants commingled with the common funds, and largely, if not entirely, used to make 
 good the deficiencies in the rates of the older members. 
 
 This combination of inadequacy and injustice could end in nothing but failure. 
 
 With readjustments must not be confused the heretofore common practice of so- 
 cieties adopting new contribution scales for new members while leaving the old mem- 
 bers on original schedules, and then commingling contributions and accumulation to 
 the great advantage of the older members, and equally to the detriment of the entrants 
 upon the increased rates. 
 
 The rerating of members at ages of entry, but compelling them to contribute on the 
 same scale as new members, being justly characterized as unfair and inequitable to the 
 recent entrants, where the latter are placed into the class with existing members, it 
 is unnecessary to comment upon the method of leaving existing members upon inade- 
 quate rates, and placing new members upon an increased, and often a per se adequate 
 scale, and then making one class of the whole membership. 
 
118 
 
 The readjustments of rates by Societies of the United States and Canada have al- 
 most universally favored two classes of members ; one class being those at advanced 
 ages and the other those who have been members for a number of years. 
 
 The results of such readjustments have always created deficiencies by the conces- 
 sions granted to these two classes of members. 
 
 Notwithstanding these concessions, it has been the exception when the readjust- 
 ment was accepted by the 'membership without dissatisfaction, dissension and with- 
 drawal. Usually the withdrawals being of the good lives. 
 
 Even with the most liberal concessions, rates of contribution for the members at 
 advanced ages were very high when consideration is had of the very low rates of 
 contribution which the members had been accustomed to paying. This fact has al- 
 ways caused dissatisfaction amongst the aged members, which has been reflected- upon 
 the younger, resulting in heavy withdrawals, and these withdrawals have in turn 
 affected the death rate of the remaining members unfavorably. 
 
 In most instances the adverse selection due to withdrawal of young and recent 
 entrants has passed away within two, three or four years, and a return to normal 
 death rate has been the rule. However, I have known cases where the adverse and 
 unfavorable conditions continued indefinitely, making a second readjustment neces- 
 sary. In cases where this second readjustment did not place the organization in a 
 financially sound condition, ordinarily a third change resulted in decay and final 
 dissolution of the Society. 
 
 A large number of Societies have adopted readjustment where the members 
 younger than a certain designated age were required to pay as of their attained ages 
 the contribution rates based upon some standard mortality table, while the members 
 older than the designated age have been given a rate less than that for the attained 
 age and many times have been given the level rate as of the designated age, say 55, 
 60 or 65 or 7- 1 these cases, of course, the Society was divided into two classes, 
 one being those who were favored with rates less than the attained age at the time 
 of the readjustment and others charged the full rate under the assumptions of some 
 mortality table, usually the National Fraternal Congress Table of Mortality with 4 
 per cent interest. 
 
 In a number of cases the readjustment has been made so that the members younger 
 than a designated age have been charged the rate according to some standard table 
 as of their attained ages at the date of rerating, while members older than the 
 designated age have been given a lower rate than the one justified by their attained 
 ages, and in addition to this all of the available funds of the Society have been 
 assigned for the purpose of meeting the deficiency created by the concessions to the 
 aged members. 
 
 One Society with about 30,000 members assigned upwards of a million dollars to 
 the members above age 65, while another Society assigned upwards of three millions 
 of dollars to members above age 55. In another instance something over two mil- 
 lions of dollars were assigned to members according to the duration of member- 
 ship ; no member receiving any credit who had not been a member for at least 
 eighteen years ; and this assignment was increased according to the advanced age 
 of the members. The amount assigned to the youngest members, entitled to credit 
 because of duration of membership, was a few cents, while to the oldest members 
 the credit was several hundred dollars on each thousand of insurance. 
 
 In a noted readjustment where no funds had been accumulated prior to the re- 
 rating, the Society adopted rates for members to age 65 with a level and uniform 
 rate thereafter. The rates below age 65 were loaded for a fraternal contribution 
 
119 
 
 which was levied upon all members below a designated age and added to their 
 rates, which latter were sufficient to provide for their protection. The younger 
 members have never been heard to make any complaint on account of this extra 
 charge against them for the purpose of rendering aid to the members above a cer- 
 tain age. There prevails a general sentiment that aged members, regardless of 
 whether or not they need assistance, should have something appropriated from the 
 contributions of the younger members for their relief from the payment of assess- 
 ments according to their ages and the risk assumed by the Society. 
 
 Comparatively few readjustments in the United States and Canada have been 
 upon a thoroughly adequate basis from the beginning. Ordinarily, in the course of 
 operation, other changes have been required to place the organization in a sound 
 financial position. These second changes are dangerous, as well as difficult. The 
 Societies in their present condition are now; confronted with these dangers and diffi- 
 culties which are aggravated by the situation in respect of securing new business. 
 
 When the Societies were comparatively new and the membership massed at the 
 younger ages and the contribution rates lower, business was easily and cheaply 
 secured. When the Societies were older and the membership at the advanced ages 
 and contribution rates increased, then the situation was entirely changed in reference 
 to the field work. The members discontinued their efforts in the way of securing 
 new members, and the whole work was left entirely to deputies and organizers. This 
 brought about a condition not materially different from that existing in the Life 
 Insurance business in respect of the company employing agents. The mere fact of 
 calling the solicitor "deputy" or "organizer" has not made the cost of their service 
 materially less than the cost of employing life insurance agents. In these circum- 
 stances the cost for securing! members by fraternal beneficiary societies approximates 
 the cost of getting policy-holders for life insurance companies. 
 
 It has long been the slogan of the fraternal societies that their expenses have 
 been only a small percentage of the expenses of life companies. When the require- 
 ments for expense increased, managers of fraternal societies have adopted many 
 devices in the effort to meet these requirements without direct taxation of the mem- 
 bership. In fact, it has been impossible for them to collect in the way of a per capita 
 tax the amount necessary for expenses, and when they load the net contribution rates 
 sufficient to cover the expenses, then the rates are so high that members complain 
 and say that they are compelled to pay as much to the fraternal societies as they 
 would have to pay to the life companies, with the apparent conclusion that if they 
 make as large contributions to the fraternal societies as to the life companies, then 
 they must, by reason of that fact, prefer the companies. Therefore, one of the most 
 serious conditions arising out of readjustments of contribution rates is the one in 
 reference to the expense of management and of securing new business. 
 
 PROVISION FOR EXPENSES. 
 
 Previous to 1900 it was the exception for total expenses for general management 
 of a fraternal beneficiary society to exceed $2.00 per member per annum. 
 
 When new members were introduced they were required to pay an initiation fee 
 of $3.00 to $10.00. If the fee was low, then the app'icant was required to pay for his 
 medical examination. 
 
 There were few paid solicitors, and the original Uniform Bill, prepared and advo- 
 cated by officials of fraternal societies, made it a condition precedent to admission 
 to do business in the States that the society should not have paid solicitors or agents 
 to secure members for an organized lodge. 
 
120 
 
 There were paid organizers and lecturers whose duties were to organize new 
 local bodies, and for that purpose to solicit members until the requisite number for 
 organizatiqn was secured, and then to visit organized bodies and enthuse the members 
 by public talks and entertainment. 
 
 After the employment of paid solicitors, or deputies, the local bodies could say 
 whether or not their lodges were "open" or "closed" to them. 
 
 Very often the local lodge would elect from its members a deputy or solicitor to 
 be paid from the lodge funds. 
 
 Other lodges depended entirely upon the work of the members, and the initiation 
 fees went into the lodge treasury for entertainments. 
 
 Many societies' then (and a few now) had State jurisdictions which were required 
 to bear the expenses and perform the work of securing new members. 
 
 In all cases the initiation fee covered the expense incident to the introduction 
 of new members, excepting the work and indirect influence of organizers and lec- 
 turers who were usually paid from the general funds of the supreme body. 
 
 Those societies which were first to adopt adequate contribution scales for new 
 members found it impossible to collect the initiation fee when charging a rate for 
 the same promised benefit 25 per cent, 50 per cent and 100 per cent in excess of the 
 assessment rates of competing societies on inadequate contributions. 
 
 Losing the initiation fee compelled resort to other means to obtain expenses to 
 secure new business. 
 
 To add a sufficient percentage loading to the already (comparatively) high net 
 adequate rates so increased the contributions that few officials believed it possible 
 to secure new business, and a common practice was to appropriate for promotion 
 expenses the first one, three, six, eight, nine and even twelve monthly payments. 
 This, of course, rendered otherwise adequate rates deficient, and increased the in- 
 adequacy of those approximately adequate. 
 
 Some societies took the chance of securing new members in the old way and at 
 the old low assessment of for expenses, but soon discovered that the increased rates 
 under readjustment (for several reasons) caused the members to discontinue their 
 efforts to bring in new members, and their apathy or worse made successful deputy 
 work very difficult as well as very expensive. 
 
 This condition induced conservative and experienced officials to encroach upon 
 the net contributions (already burdened with deficiencies due to concessions granted 
 to aged members under readjustment). This practice was quite general and was 
 excused on the plea that it was only a temporary expedient to meet an abnormal 
 situation. 
 
 Conditions after readjustment were so trying and the difficulties so great that I 
 have consented to such expedients, hoping and trusting that the judgment of the 
 officials was correct, and myself believing that dissension, dissatisfaction and agita- 
 tion could not continue for more than two or three years, and on recovery to normal 
 condition the appropriation from the net contributions could be discontinued. It 
 appeared better to take this risk than to create new disturbance by calling for addi- 
 tional expense contributions. 
 
 No one can appreciate the difficulties following an adequate rate readjustment 
 unless he has had to meet and try to overcome them. Anyone so situated will take 
 chances with hope on the prospect of future favorable conditions rather than aggra- 
 vate troubles due to no fault of the management. 
 
121 
 
 In many cases the hope was realized. In most instances the increased fund for 
 expenses brought about high-pressure methods, and new members were introduced 
 at the front only to make their exit at the back door. 
 
 Bonuses, prizes, excursions, tours and large cash commissions were offered, with 
 the usual result of such methods that members were lost almost as- fast as secured 
 with small gain from large expenditures and often an adverse mortality experience 
 amongst the members at admission ages, due to the nearly equivalent influx and 
 efflux of fresh lives and the natural sediment from such flow in the way of early 
 deaths and impaired risks. In other words, any such method for securing new busi- 
 ness makes of the society a duct, with refuse and settlings the main leavings. 
 
 I have protested in vain against the inauguration of such methods, often consent- 
 ing to a moderate temporary encroachment upon net contribution rates. The field 
 men would clamor for larger appropriations, and the officials and agency managers, 
 in their laudable desire to prevent loss in membership, would yield to pressure, with 
 ultimate unsatisfactory results. 
 
 At this writing, all of the societies (with few exceptions) have changed contribu- 
 tion rates to some degree, and nearly all of them are struggling to maintain their 
 business without taxing the members with increased expense charges. 
 
 There are various methods for creating an expense fund. 
 
 Some societies rely entirely upon a per capita tax. Some have a per capita tax 
 and an additional level or percentage loading to the net rates. Some have a per 
 capita tax and take a stated number of the first twelve monthly assessments. Some 
 take a percentage of the gross rates and, in addition, use all or some portion of the 
 first twelve assessments. Others take a flat amount from the gross rates and use 
 all or a portion of the first twelve assessments. Others take a flat amount (or per- 
 centage) of the gross rates and in addition 50 cents, 60 cents, 75 cents to $1.00 from 
 each of the first twelve monthly payments. 
 
 There are numerous other methods to provide for expenses, but the above will 
 cover the majority of cases. 
 
 There is no fixed rule for general application in the provision for expenses. 
 
 The method of taking from the first twelve assessments a level amount of 50 
 cents, 60 cents, or 75 cents, and then having a per capita tax, or in subsequent years 
 deducting a flat (or percentage) amount from the gross rates, more nearly than any 
 other accords with the old practice of a per capita, or flat or percentage loading, 
 and an initiation fee. The deduction of 60 cents per month ($7.20 a year) provides 
 about the average initiation fee, and when its value in the way of annuity addition 
 is loaded into the rate the member pays back to the society the amount of the deduc- 
 tion. Formerly he paid the initiation fee in one sum or in two, four or twelve in- 
 stalments. He pays back the $6.00, $7.20 or $9.00 by instalments covering the period 
 of protection, and thus each instalment is small and is therefore paid without objec- 
 tion. It is a device for collecting the initiation fee from an entrant without his 
 special knowledge of the fact. 
 
 Many conferences have been held by officials and managers of fraternal societies 
 concerning "adequate rates," and many supreme bodies have passed upon the ques- 
 tion of "adequate rates," but no concerted attempt has been made to come to an 
 agreement in regard to expense provision, and yet this is a matter of so much im- 
 portance that the failure to properly and effectively provide for expenses may result 
 in financial insolvency. 
 
122 
 
 FRATERNAL EXPERIENCE TABLES. 
 
 In 1904 a number of the leading fraternal beneficiary societies readjusted contri- 
 bution rates on the basis of the National Fraternal Congress Table of Mortality. 
 The readjustment agitation was so general that question arose as to the sufficiency 
 of the N. F. C. table, resulting in a request from the- president of the members of 
 the Congress to supply data for a test of that table. 
 
 The suggestion of President Talbot was favorably received, and, under instruc- 
 tions of the Congress, the Committee on Statistics and Good of the Orders made a 
 report in 1906 at Montreal, from which I take the following: 
 
 Your committee herewith submits its special report to which reference is made 
 in the regular report concerning the collection of data of the societies under a reso- 
 lution offered by Doctor- Oronhyatekha, past president, at the last session of the 
 Congress, which resolution was as follows: 
 
 "Resolved, That the executive committee of this Congress be authorized to take 
 such steps as they may deem best to secure correct data for a minimum table for a 
 society in a normal condition, based on the experience not only of societies but the 
 experience of life insurance companies as well." 
 
 Letters were sent to all of the societies in the United States requesting the data 
 on forms which were supplied by the chairman of the committee, a sample of which 
 is attached to this report as an exhibit and which fully sets forth the information 
 which was desired and which was supplied to the actuary for such societies as fur- 
 nished the same. The names of the societies responding are as given below, grouped 
 according to whether or not they admit men only, women only, or men and women: 
 
 SOCIETIES ADMITTING MEN ONLY. 
 
 NAMES. 
 
 Commenced 
 Business. 
 
 Members, 
 Dec. 31,1904. 
 
 Exposures 
 During 1904. 
 
 Knights of Maccabees of the World 
 
 1883 
 
 325,071 
 
 341,255 
 
 Modern Woodmen of America 
 
 1883 
 
 690,881 
 
 689,265 5 
 
 Shield of Honor ; 
 
 1875 
 
 13,204 
 
 13,074 5 
 
 Society des Artisans 
 
 1877 
 
 23,020 
 
 21,647 5 
 
 Catholic Mutual Benefit Association 
 
 1876 
 
 57,028 
 
 59,221 
 
 Knights of Father Mathew 
 
 1881 
 
 4,124 
 
 4,038 
 
 Improved Order of Heptasopiis 
 
 1878 
 
 55,377 
 
 55,228 
 
 Knights of Pythias, Endowment Rank 
 
 1877 
 
 68,202 
 
 67,582 
 
 Knights of Honor 
 
 1873 
 
 40,126* 
 
 46,129 5* 
 
 Ancient Order United Workmen (22 Juris) 
 
 1868 
 
 219,490 
 
 248,790 5 
 
 Knights of Modern Maccabees 
 
 1881 
 
 116,205* 
 
 119,684 5* 
 
 Tennessee Jurisdiction of A. O. U. W 
 
 1875 
 
 1,911 
 
 2,025 5 
 
 National Union 
 
 1881 
 
 65,372 
 
 66,993 5 
 
 Royal Arcanum ; 
 
 1877 
 
 305,083 
 
 295,673.0 
 
 Loyal Association 
 
 1889 
 
 7,246 
 
 7,115 
 
 Woodmen of the World (Pac. Juris.) 
 
 1890 
 
 90,680 
 
 90,687.0 
 
 
 
 
 
 Totals 
 
 
 2,083,020 
 
 2,128,410.0 
 
 
 
 
 
 SOCIETIES ADMITTING WOMEN ONLY. 
 
 NAMES. 
 
 Commenced 
 Business. 
 
 Members, 
 Dec. 31, 1904. 
 
 Exposures 
 During 1904. 
 
 Ladies of Maccabees of the World 
 
 1892 
 
 123,434 
 
 119,367.5 
 
 Royal Neighbors of America 
 
 1895 
 
 83,423 
 
 79,292.5 
 
 Ladies of tne M^odern M^accabees 
 
 1890 
 
 61,880 
 
 60,176.0 
 
 Ladies' Catholic Benevolent Association 
 
 1890 
 
 89,808 
 
 89,392.0 
 
 
 
 
 
 Totals 
 
 
 358,545 
 
 348,228.0 
 
123 
 
 SOCIETIES ADMITTING MEN AND WOMEN. 
 
 NAMES. 
 
 Commenced 
 Business. 
 
 Members 
 Dec. 31,1904. 
 
 Exposures 
 During 1904. 
 
 
 1893 
 
 5,101 
 
 4,936.5 
 
 Association Canado-Americaine 
 Eouitable Fraternal Union 
 
 1897 
 1897 
 
 5,298 
 14,644 
 
 5,219.0 
 13,561.0 
 
 Fraternal Brotherhood .... 
 
 1896 
 
 23,412 
 
 22,048.5 
 
 Loyal ^Mystic Legion of America 
 
 1892 
 
 6,718 
 
 6,707.5 
 
 Order IVlutual Protection 
 
 1878 
 
 8,101 
 
 8,133.5 
 
 Order of the White Cross 
 
 1900 
 
 1,836 
 
 1,688.5 
 
 Protected Home Circle 
 
 1886 
 
 55,736 
 
 58,652.0 
 
 LTnited Order Pilgrim Fathers . 
 
 1879 
 
 19,698 
 
 20,986.0 
 
 Sons and Daughters of Protection 
 
 1897 
 
 1,794 
 
 1,842.0 
 
 United Presbyterian Mutual Benefit Association 
 Legion of the Red Cross 
 
 1897 
 
 1885 
 
 3,128 
 2,549 
 
 3,212.5 
 2,666.5 
 
 Royal Highlanders 
 
 1896 
 
 18,553 
 
 17,775.5 
 
 Court of Honor 
 
 1895 
 
 67,815 
 
 68,612.5 
 
 Mystic Workers of the World 
 
 1896 
 
 32,550 
 
 30,961.5 
 
 Prudent Patricians of Pompeii .... 
 
 1897 
 
 7,379 
 
 7,343.0 
 
 United Order of Golden Cross . ... 
 
 1876 
 
 18,558 
 
 19,620.5 
 
 Fraternal M^ystic Circle 
 
 1885 
 
 14,503 
 
 15,396.0 
 
 Knights and Ladies of Security . . 
 
 1892 
 
 46,161 
 
 44,924.0 
 
 Fraternal Union of America . 
 
 1896 
 
 24,045 
 
 24,047.5 
 
 Modern Samaritans of Duluth 
 
 1897 
 
 6,758 
 
 6,437.0 
 
 Fraternal Tribunes 
 
 1897 
 
 9,696* 
 
 9,103.0* 
 
 Royal Templars of Temperance 
 
 1870 
 
 7,620f 
 
 9,654.5f 
 
 
 
 
 
 Totals 
 
 
 401,653 
 
 403,528.5 
 
 
 
 
 
 SUMMARY. 
 
 NAMES. 
 
 Number of 
 Societies. 
 
 Members, 
 Dec. 31,04. 
 
 Exposures 
 During 1904. 
 
 Societies admitting men only 
 
 16 
 
 2,083,020 
 
 2,128,410.0 
 
 Societies admitting women only 
 
 4 
 
 358,545 
 
 348,228.0 
 
 Societies admitting men and women 
 
 23 
 
 401,653 
 
 403,528 5 
 
 
 
 
 
 Totals . 
 
 43 
 
 2,843,218 
 
 2,880,166.5 
 
 
 
 
 
 NOTE. Numbers marked with * give data for 1905 instead of 1904; numbers marked with 
 t give data for 1903 instead of 1904. 
 
 The committee desires to thank the officials of the above named societies for their 
 compliance with the request to supply the data and also to thank the secretaries for 
 the neatness of the forms submitted. 
 
 Many of the reports gave the data by amounts, and as it was decided that the 
 experience should be based upon lives instead of amounts of protection, it was 
 necessary in many cases to make combinations, which required a considerable amount 
 of work in the office of the actuary. 
 
 The committee has inspected and examined all of the original reports, together 
 with the compilations made therefrom; also the tabulations and deductions after- 
 wards prepared and which are now subject to inspection by any member of the 
 Congress. It is impossible for your committee to render a detailed statement that 
 would present the amount of work which has been done by the actuary inasmuch as 
 the compilations and tabulations fill hundreds of large sheets. Perhaps only those 
 whose business it is to work with statistics can fully appreciate and realize the amount 
 
124 
 
 of labor necessary to produce one column of figures representing the death rate of 
 the 43 societies. Each one of the 43 organizations sent in three sheets showing the 
 members in good standing at the end of the year of observation and the member 
 who had lapsed and died during the year. These statistics were not combined so 
 as to obtain three corresponding sheets with a combined showing of existing mem- 
 bers and of members who had lapsed and died, and from this latter the combined ex- 
 posures obtained, but the actuary worked out separately for each society the exposures in 
 order to obtain the death and lapse rates for each one individually. Seven separate sheets, 
 as hereinafter stated, were prepared for each of the 43 societies and these should be 
 taken into consideration and inspected by the officials of each society. After ob- 
 taining the individual statistics for each society and treating them as above indi- 
 cated, the four separate combinations were made as heretofore stated, for societies 
 that admit men only, that admit women only and that admit men and women and 
 then or all of the societies combined. The work consisted in preparing data from 
 each of the 43 societies which could be used in constructing mortality tables for each 
 of the societies. Your committee repeat that it is almost impossible for anyone 
 to fully appreciate the amount of labor involved unless he make personal inspection 
 of the trunk full of papers which have been submitted to your committee by the 
 actuary. 
 
 To obtain exposures for death rate there was taken the sum of all the members 
 in good standing at the end of the year who had entered the society in previous 
 years and one-half of all of the members existing at the end of the year who had joined 
 the societies during the year and one-fourth of all the members who lapsed during 
 the year and all of the deaths during the year. 
 
 To obtain the exposures for lapse rate there was taken the sum of all the mem- 
 bers existing at the end of the year of observation who had entered the society in 
 previous years, and one-half of all the members existing at the end of the year who 
 had entered during the year, and one-fourth of all the members who died during the 
 year, and all of the members who lapsed during the year. 
 
 To obtain the death rate the number of deaths during the year was divided by 
 the number of exposures. 
 
 To obtain the lapse rate the number of lapses during the year was divided by 
 the number exposed to the risk of lapse during the year. 
 
 The death rate obtained as above mentioned is the unadjusted death rate accord- 
 ing to the actual experience of the societies. This unadjusted death rate, as will 
 be seen by reference to the tables herewith submitted, is irregular by attained ages 
 and by years of membership. Not only is this original and unadjusted death rate 
 irregular, but it embraces only those years covered by the experience of the societies, 
 which in this case is for thirty-four years of membership and to age ninety for the 
 oldest exposed risk. In order to convert this unadjusted data into practical form 
 it was necessary to grade and extend the unadjusted death rate. 
 
 There are several well known formulas by which the mortality experience can be 
 graded or adjusted. One is the so-called "Makeham" formula, which recognizes the 
 "Force of Mortality." Another is by the graphic method, and still another by the 
 summation method, which latter was adopted in the grading of the mortality ex- 
 perience herewith submitted. In the case of the forty-three combined societies and 
 in the case of the experience for men only and for men and women the formula 
 selected was that used by Mr. Watson in grading the experience of the Manchester 
 Unity. The one selected for grading the experience of the societies that admitted 
 women only was the "Hardy" formula given in his prize essay on Friendly Societies. 
 There were several gradings or adjustments by different formulas, but the ones just 
 mentioned gave the most satisfactory results as evidenced by the tests of the grading 
 submitted by the actuary. 
 
 The actuary has given the number living and the number dying, assuming 100,000 
 lives at the lowest age, according to the unadjusted and the adjusted death rate for 
 the combined forty-three societies. 
 
 The committee have thought it advisable to make the above brief explanation 
 for the benefit of those who may desire to critically examine the statistics and de- 
 ductions submitted by the actuary. 
 
 It is assumed that the members of the Congress will be most interested in the 
 rates of contribution which have been derived from the several mortality tables 
 herewith submitted. For the information of the members we present in comparative 
 form the net annual level rates of contribution per one thousand dollars protection, 
 for death benefit only, according to the National Fraternal Congress Table of Mor- 
 tality and according to the combined experience of the forty-three societies as ob- 
 
125 
 
 NET ANNUAL RATES OF CONTRIBUTION PER $1,000. 
 
 Age. 
 
 N. F. C. 
 
 43 Societies. 
 
 Women. 
 
 Men. 
 
 Men and 
 Women. 
 
 17 
 
 .$ 
 
 $ 9 25 
 
 $ 9 29 
 
 $ 9 20 
 
 $ 8 98 
 
 18 - 
 
 
 9.48 
 
 9 50 
 
 9 45 
 
 9 23 
 
 19 
 
 
 9.73 
 
 9.71 
 
 9.73 
 
 9 48 
 
 20 
 
 10 34 
 
 10 01 
 
 9 94 
 
 9 99 
 
 9 75 
 
 21. 
 
 10 62 
 
 10 30 
 
 10 18 
 
 10 30 
 
 10 04 
 
 22. . 
 
 10 92 
 
 10 58 
 
 10 44 
 
 10 58 
 
 10 32 
 
 23 
 
 11 24 
 
 10 90 
 
 10 70 
 
 10 90 
 
 10 63 
 
 24 
 
 11 57 
 
 11 22 
 
 10 99 
 
 11 24 
 
 10 95 
 
 25 
 
 11.91 
 
 11 56 
 
 11 29 
 
 11 59 
 
 11 29 
 
 26 
 
 12.28 
 
 11 94 
 
 11 62 
 
 11 99 
 
 11 64 
 
 27 
 
 12 67 
 
 12 35 
 
 11 94 
 
 12 40 
 
 12 02 
 
 28 
 
 13 07 
 
 12 77 
 
 12 30 
 
 12 85 
 
 12 43 
 
 29.. 
 
 13 50 
 
 13 24 
 
 12 66 
 
 13 33 
 
 12 85 
 
 30 
 
 13 96 
 
 13 73 
 
 13 06 
 
 13 81 
 
 13 33 
 
 31.. .. 
 
 14 43 
 
 14 25 
 
 13 46 
 
 14 36 
 
 13 81 
 
 32 
 
 14 93 
 
 14 79 
 
 13 89 
 
 14 90 
 
 14 34 
 
 33 
 
 15 47 
 
 15 36 
 
 14 36 
 
 15 51 
 
 14 87 
 
 34 
 
 16 02 
 
 15 95 
 
 14 84 
 
 16 12 
 
 15 42 
 
 35. 
 
 16 62 
 
 16 57 
 
 15 36 
 
 16 76 
 
 16 00 
 
 36. 
 
 17 24 
 
 17 25 
 
 15 92 
 
 17 47 
 
 16 60 
 
 37. 
 
 17 90 
 
 17 94 
 
 16 48 
 
 18 20 
 
 17 25 
 
 38... 
 
 18 59 
 
 18 71 
 
 17 12 
 
 18 98 
 
 17 91 
 
 39 
 
 19 33 
 
 19 51 
 
 17 78 
 
 19 78 
 
 18 65 
 
 40 
 
 20 11 
 
 20 36 
 
 18 52 
 
 20 68 
 
 19 41 
 
 41 
 
 20 93 
 
 21 28 
 
 19 28 
 
 21 60 
 
 20 26 
 
 42 
 
 21 80 
 
 22 22 
 
 20 09 
 
 22 59 
 
 21 17 
 
 43.. 
 
 22 72 
 
 23 27 
 
 20 96 
 
 23 61 
 
 22 11 
 
 44.. 
 
 23 69 
 
 24 35 
 
 21 89 
 
 24 71 
 
 23 08 
 
 45 
 
 24 72 
 
 25 48 
 
 22 93 
 
 25 89 
 
 24 16 
 
 46 
 
 25 81 
 
 26 73 
 
 24 00 
 
 27 16 
 
 25 23 
 
 47 
 
 26 97 
 
 28 03 
 
 25 15 
 
 28 52 
 
 26 39 
 
 48 
 
 28 20 
 
 29 43 
 
 26 39 
 
 29 94 
 
 27 63 
 
 49. 
 
 29 51 
 
 30 93 
 
 27 72 
 
 31 47 
 
 28 Q2 
 
 50.. 
 
 30 91 
 
 32 51 
 
 29 06 
 
 33 12 
 
 SO SI 
 
 51 
 
 32 39 
 
 34 21 
 
 30 50 
 
 34 85 
 
 31 81 
 
 52 
 
 33 97 
 
 36 05 
 
 32 06 
 
 36 67 
 
 33 38 
 
 53 
 
 35 65 
 
 37 99 
 
 33 69 
 
 38 64 
 
 35 12 
 
 54 
 
 37 45 
 
 40 03 
 
 35 50 
 
 40 72 
 
 37 01 
 
 55 
 
 39 36 
 
 42 18 
 
 37 41 
 
 42 91 
 
 QO 88 
 
 56... 
 
 41 41 
 
 44 46 
 
 39 54 
 
 45 22 
 
 40 QO 
 
 57 
 
 43 60 
 
 46 86 
 
 41 73 
 
 47 67 
 
 43 10 
 
 58 
 
 45 94 
 
 49 49 
 
 43 98 
 
 50 27 
 
 45 43 
 
 59.. 
 
 48 45 
 
 52 20 
 
 46 21 
 
 52 05 
 
 47 Q7 
 
 60.. 
 
 51 13 
 
 55 08 
 
 48 49 
 
 55 88 
 
 KA fi7 
 
 61 
 
 54 01 
 
 58 16 
 
 50 82 
 
 59 00 
 
 5Q fiO 
 
 62 
 
 57 10 
 
 61 44 
 
 53 28 
 
 62 34 
 
 5fi 70 
 
 63 
 
 60 41 
 
 64 95 
 
 55 88 
 
 65 81 
 
 60 16 
 
 64 
 
 63 98 
 
 68 72 
 
 58 72 
 
 69 65 
 
 63 58 
 
 65 
 
 67 82 
 
 72 65 
 
 61 94 
 
 73 65 
 
 67 14 
 
 66 
 
 71 95 
 
 76 88 
 
 65 38 
 
 77 OF: 
 
 7ft 8S 
 
 67 
 
 76 40 
 
 81 44 
 
 69 18 
 
 co fin 
 
 74 41 
 
 68 
 
 81 21 
 
 86 23 
 
 73 27 
 
 87 64 
 
 78 99 
 
 69 
 
 86 39 
 
 91 41 
 
 77 68 
 
 93 12 
 
 82 02 
 
 70 
 
 92 00 
 
 97 04 
 
 82 31 
 
 99 09 
 
 86 07 
 
 
 
 
 
 
 
 NOTE. Contributions to be paid annually in advance for the whole term of life and 
 provide for death benefit only. 
 
126 
 
 tained by the actuary; also rates according to the experience of those societies ad- 
 mitting women only and of those societies admitting men and women and of those 
 societies admitting men only. 
 
 It will be observed that the rates of contribution according to the National Fra- 
 ternal Congress Table are in excess of those deduced from the experience of the 
 combined experience of the forty-three societies for ages below 36. The rates at 
 age 36 are respectively $17.24 and $17.25 and above that age the rates according to 
 the combined experience of the forty-three societies are slightly in excess of the Na- 
 tional Fraternal Congress rates to age 50, varying from one cent annually at age 
 36 to $1.60 at age 50. Above age 50 the excess in the rates for the combined experi- 
 ence becomes larger as the age advances until at age 70 the level annual rate of the 
 National Fraternal Congress Table is $92.00 and by the combined experience $97.04. 
 
 It should be noted that the above rates are annual rates to be paid in advance 
 and are upon the assumption of four per cent interest earned on accumulations. 
 Rates payable monthly would be somewhat in excess of one-twelfth of the annual 
 rates, due to the loss ot interest and also to the loss of monthly installments on ac- 
 count of members who die and lapse before the end of the year. 
 
 The totals show that the expected deaths by the National Fraternal Con- 
 gress Table were 26,239; the actual being 95.75 per cent of the expected. The 
 per cent exposed below age 50 was 82.90, while the per cent of deaths below age 50 
 was 56.68. 
 
 The expected deaths by the American Experience Table were 9,322 in excess of 
 the actual deaths; the actual being 72.94 per cent of expected. It may be stated in 
 passing that these figures certainly established the fact that the American Experience 
 Table of Mortality could not be correctly designated as a "minimum" table for fra- 
 ternal beneficiary societies. 
 
 Your committee is of the opinion that the National Fraternal Congress Table 
 of Mortality is sustained by the actual experience as an acceptable "minimum" 
 table for fraternal societies where admission of members is confined to persons whose 
 ages are not above age 50. Your committee is not prepared to say that rates of 
 contribution deduced from the National Fraternal Congress Table would be inade- 
 quate for persons admitted to ages 55 or even 60 if proper medical selection is exer- 
 cised, because it is a fact that under proper medical examination the death rate during 
 at least the first five years of membership for entrants between the ages of 50 and 60 
 is below that which is assumed under the National Fraternal Congress Table. 
 
 Your committee further desires to call attention to the fact that the great majority 
 of the societies composing the Congress do not admit members above age 50, and 
 consequently the experience which has been investigated has not been modified 
 above age 55 by favoiable mortality resulting from the admission of new lives treshly 
 selected by medical examination. The actuary is of the opinion that the higher death 
 rate above age 53 is, in a measure, the result of the absence of new risks amongst the 
 members above age 50. 
 
 Your committee call attention to the fact thac the data we have compiled are 
 such that from them "Select" and "Ultimate" tables can be readily made at any 
 time. 
 
 The resolution contemplated a presentation by your committee of the experience 
 of life companies, and an effort was made to secure data from companies in the 
 United States and Canada. Courteous replies were received from 23 companies, 
 acknowledging the importance of the work and expressing appreciation of the under- 
 taking, but regretting inability to comply with the request for data on account of 
 the very heavy demands for special information required by investigating commit- 
 tees in New York, Wisconsin, Iowa, New Jersey and the Dominion of Canada. Your 
 committee submits a number of mortality tables which have been constructed from 
 various experiences and may be of value for comparison. 
 
 The actuary will supplement this report with some comments on tables and 
 schedules of rates derived from the separate experiences, to which references have 
 been made. The rates of contribution for societies admitting women only are below 
 those given in the other schedules, which is largely due to the fact, as your commit- 
 tee is advised, of the Jack of exposures at advanced ages to give a basis for a reliable 
 table. Your committee submits two mortality tables for female lives as a better 
 guide than the table which has been based upon the four women's societies that favored 
 your committee with data. 
 
127 
 
 SUPPLEMENTAL REPORT. 
 
 Supplementary to the "Special Report" of the Committee on Statistics and the 
 Good of the Orders the following notes were submitted by Mr. Landis: 
 
 First. The experience of the 43 societies is for a single year of operation. Unless 
 the selected year is a normal one, the results could not be accepted as reliable. If it 
 were specially healthy or unhealthy obviously it would be unsuitcd as the basis for 
 an investigation which aimed at average results. 
 
 The year 1904 was selected because the conditions appeared normal in respect of 
 mortality. There was some disturbance on account of readjustment of rates of 
 contribution, causing an increase in lapse rates and somewhat increasing the death 
 rate, especially at ages above 50 through loss of good lives. With these exceptions 
 the year 1904 was an average year, and since there were nearly three million expos- 
 ures, widely distributed throughout the United States, the experience must be ac- 
 cepted as approximately representing past and present and forecasting future mor- 
 tality conditions amongst insured lives in Fraternal Beneficiary Associations oper- 
 ating along existing lines. 
 
 Second. To what has been said by the committee in reference to the grading 
 of the tables, it may be added that this investigation has disclosed conditions which 
 have been found in so many others that a mere mention of them is sufficient. I 
 refer to the feature of a higher death rate at the lowest admission ages than at ages 
 from 25 to about 35, and the almost uniform ratios for the ten years 35 to 45. The 
 unusual showing is the decrease in the increase of mortality for ages after 70. 
 
 If the adjusted rates are to reflect actual conditions (as they should), these char- 
 acteristics must remain, and to that end I made use of formulas, as explained by the 
 committee. The modern and best thought amongst actuaries is in favor of such 
 grading as will retain the true character of the original data, and to abandon those 
 analytical methods which have made so many tables a mere fiction. 
 
 As before stated, the only object was to smooth out the irregularities which are 
 always present in vital statistics, without destroying the characteristic features of 
 the experience. When the actual death rate at 20 is higher than at 30 (as is found in 
 almost every investigation of insured lives) the adjusted table should retain that 
 feature, and any grading which destroys it, results in a fiction, however much it may 
 please the theorist who would confirm his ideal of a "Law of Mortality." 
 
128 
 FORTY-THREE SOCIETIES. 
 
 Ages. 
 
 Existing. 
 
 Lapses. 
 
 Deaths. 
 
 Exposures. 
 
 Unadjusted 
 Death Rate 
 per 1000. 
 
 Adjusted 
 Death Rate 
 per 1000. 
 
 16 
 
 295 
 
 39 
 
 
 167.0 
 
 
 
 17 
 
 111 
 
 112 
 
 1 
 
 539.5 
 
 1.85 
 
 4.64 
 
 18 
 
 13,001 
 
 2,847 
 
 30 
 
 8,188.5 
 
 3.66 
 
 4.66 
 
 19 
 
 22,919 
 
 7,195 
 
 96 
 
 20,691.0 
 
 4.64 
 
 4.68 
 
 20 
 
 30,451 
 
 9,136 
 
 139 
 
 29,387.0 
 
 4.73 
 
 4.71 
 
 21 
 
 39,376 
 
 10,541 
 
 182 
 
 37,455.5 
 
 4.85 
 
 4.73 
 
 22 
 
 46,295 
 
 11,766 
 
 192 
 
 45,400.5 
 
 4.23 
 
 4.74 
 
 23 
 
 51,448 
 
 12,087 
 
 264 
 
 51,067.0 
 
 5.17 
 
 4.71 
 
 24 
 
 58,476 
 
 12,661 
 
 266 
 
 58,009.5 
 
 4.59 
 
 4.66 
 
 25 
 
 62,146 
 
 12,587 
 
 314 
 
 62,341.0 
 
 5.04 
 
 4.59 
 
 26 
 
 65,979 
 
 12,108 
 
 292 
 
 66,119.0 
 
 4.42 
 
 4.52 
 
 27 
 
 71,119 
 
 12,081 
 
 300 
 
 71,162.5 
 
 4.22 
 
 4.47 
 
 28 
 
 76,251 
 
 12,338 
 
 334 
 
 76,302.0 
 
 4.38 
 
 4.46 
 
 29 
 
 79,624 
 
 11,822 
 
 343 
 
 79,672.5 
 
 4.31 
 
 4.50 
 
 30 
 
 81,801 
 
 11,532 
 
 365 
 
 82,017.0 
 
 4.45 
 
 4.60 
 
 31 
 
 84,569 
 
 11,387 
 
 402 
 
 85,236.5 
 
 4.72 
 
 4.73 
 
 32 
 
 86,700 
 
 10,982 
 
 432 
 
 87,207.0 
 
 4.95 
 
 4.89 
 
 33 
 
 87,230 
 
 10,312 
 
 471 
 
 87,739.0 
 
 5.37 
 
 5.05 
 
 34 
 
 92,725 
 
 10,673 
 
 497 
 
 93,209.0 
 
 5.33 
 
 5.20 
 
 35 
 
 93,621 
 
 10,342 
 
 505 
 
 94,418.0 
 
 5.35 
 
 5.33 
 
 36 
 
 93,117 
 
 9,843 
 
 501 
 
 94,161.5 
 
 5.32 
 
 5.45 
 
 37 
 
 93,972 
 
 9,689 
 
 528 
 
 95,103.5 
 
 5.55 
 
 5.56 
 
 38 
 
 93,945 
 
 9,226 
 
 548 
 
 94,723.0 
 
 5.79 
 
 5.70 
 
 39 
 
 90,762 
 
 8,641 
 
 533 
 
 91,630.0 
 
 5.82 
 
 5.86 
 
 40 
 
 90,414 
 
 8,391 
 
 541 
 
 91,508.5 
 
 5.91 
 
 6.07 
 
 41 
 
 90,438 
 
 8,199 
 
 605 
 
 91,958.5 
 
 6.58 
 
 6.33 
 
 42 
 
 93,203 
 
 8,110 
 
 613 
 
 94,648.5 
 
 6.48 
 
 6.64 
 
 43 
 
 95,107 
 
 7,870 
 
 689 
 
 96,482.5 
 
 7.15 
 
 6.98 
 
 44 
 
 95,515 
 
 7,632 
 
 673 
 
 96,553.0 
 
 6.97 
 
 7.37 
 
 45 
 
 90,504 
 
 7,291 
 
 754 
 
 92,383.0 
 
 8.16 
 
 7.79 
 
 46 
 
 84,683 
 
 6,662 
 
 735 
 
 87,175.5 
 
 8.43 
 
 8.24 
 
 47 
 
 79,414 
 
 5,821 
 
 682 
 
 81,458.0 
 
 8.37 
 
 8.73 
 
 48 
 
 72,740 
 
 5,098 
 
 731 
 
 74,607.5 
 
 9.80 
 
 9.28 
 
 49 
 
 66,042 
 
 4,594 
 
 683 
 
 67,717.0 
 
 10.09 
 
 9.92 
 
 50 
 
 59,284 
 
 4,051 
 
 614 
 
 61,071.0 
 
 10.05 
 
 10.67 
 
 51 
 
 51,645 
 
 3,445 
 
 616 
 
 53,662.0 
 
 11.48 
 
 11.55 
 
 52 
 
 45,285 
 
 2,712 
 
 583 
 
 46,962.0 
 
 12.41 
 
 12.59 
 
 53 
 
 40,831 
 
 2,330 
 
 587 
 
 42,348.0 
 
 13.86 
 
 13.80 
 
 54 
 
 36,839 
 
 2,390 
 
 579 
 
 38,341.0 
 
 15.10 
 
 15.17 
 
 55 
 
 31,096 
 
 2,164 
 
 556 
 
 32,664.5 
 
 17.02 
 
 16.71 
 
 56 
 
 26,397 
 
 1,938 
 
 502 
 
 27,826.5 
 
 18.04 
 
 18.39 
 
 57 
 
 22,905 
 
 1,645 
 
 509 
 
 24,219.0 
 
 21.02 
 
 20.18 
 
 57 
 
 20,555 
 
 1,539 
 
 465 
 
 21,780.0 
 
 21.45 
 
 22.07 
 
 58 
 
 18,611 
 
 1,410 
 
 443 
 
 19,747.5 
 
 22.43 
 
 24.07 
 
 60 
 
 16,761 
 
 1,153 
 
 529 
 
 17,854.0 
 
 29.63 
 
 26.21 
 
129 
 
 FORTY-THREE SOCIETIES. Continued. 
 
 
 
 
 
 
 Unadjusted 
 
 Adjusted 
 
 Ages. 
 
 Existing. 
 
 Lapses. 
 
 Deaths. 
 
 Exposures. 
 
 Death Rate 
 per 1000. 
 
 Death Rate 
 per 1000. 
 
 61 
 
 14,998 
 
 1,063 
 
 445 
 
 15,968.0 
 
 27.87 
 
 28.53 
 
 62 
 
 13,482 
 
 856 
 
 460 
 
 14,361.5 
 
 32.03 
 
 31.06 
 
 63 
 
 12,029 
 
 826 
 
 392 
 
 12,830.5 
 
 30.55 
 
 33.88 
 
 64 
 
 10,453 
 
 721 
 
 423 
 
 11,234.5 
 
 37.65 
 
 37.00 
 
 65 
 
 8,312 
 
 597 
 
 357 
 
 8,965.5 
 
 39.82 
 
 40.40 
 
 66 
 
 7,066 
 
 554 
 
 347 
 
 7,686.0 
 
 45.15 
 
 43.99 
 
 67 
 
 5,857 
 
 528 
 
 317 
 
 6,435.0 
 
 49.26 
 
 47.70 
 
 68 
 
 4,864 
 
 513 
 
 290 
 
 5,406.5 
 
 53.64 
 
 51.54 
 
 69 
 
 4,206 
 
 449 
 
 247 
 
 4,676.0 
 
 52.82 
 
 55.76 
 
 70 
 
 3,652 
 
 403 
 
 250 
 
 4,103.0 
 
 60.93 
 
 60.85 
 
 71 
 
 3,089 
 
 388 
 
 260 
 
 3,543.0 
 
 73.38 
 
 67.22 
 
 72 
 
 2,654 
 
 325 
 
 214 
 
 3,027.5 
 
 70.69 
 
 75.12 
 
 73 
 
 2,147 
 
 228 
 
 174 
 
 2,436.0 
 
 71.43 
 
 84.07 
 
 74 
 
 1,753 
 
 198 
 
 172 
 
 2,026.0 
 
 84.90 
 
 93.55 
 
 75 
 
 1,142 
 
 149 
 
 144 
 
 1,360.5 
 
 105.84 
 
 102.55 
 
 76 
 
 826 
 
 99 
 
 115 
 
 990.5 
 
 116.10 
 
 110.28 
 
 77 
 
 554 
 
 69 
 
 96 
 
 684.5 
 
 140.25 
 
 115.98 
 
 78 
 
 418 
 
 49 
 
 72 
 
 514.5 
 
 139.94 
 
 120.26 
 
 79 
 
 325 
 
 27 
 
 46 
 
 384.0 
 
 119.79 
 
 123.62 
 
 80 
 
 200 
 
 11 
 
 22 
 
 227.5 
 
 96.70 
 
 127.68 
 
 81 
 
 136 
 
 8 
 
 21 
 
 161.0 
 
 130.43 
 
 133.48 
 
 82 
 
 81 
 
 9 
 
 13 
 
 100.5 
 
 129.35 
 
 142.65 
 
 83 
 
 73 
 
 3 
 
 18 
 
 90.5 
 
 198.89 
 
 155.47 
 
 84 
 
 16 
 
 1 
 
 2 
 
 18.5 
 
 108.11 
 
 172.11 
 
 85 
 
 4 
 
 
 3 
 
 7.0 
 
 428.57 
 
 191.00 
 
 86 
 
 1 
 
 
 1 
 
 2.0 
 
 500.00 
 
 211.55 
 
 87 
 
 6 
 
 
 
 6.0 
 
 
 232.48 
 
 88 
 
 3 
 
 
 
 3.0 
 
 
 253.40 
 
 89 
 
 2 
 
 
 
 2.0 
 
 
 273.76 
 
 90 
 
 1 
 
 
 
 1.0 
 
 
 294.17 
 
 91 
 
 
 
 
 
 
 314.72 
 
 92 
 
 
 
 
 
 
 335.96 
 
 93 
 
 
 
 
 
 
 357.74 
 
 94 
 
 
 
 
 
 
 380.02 
 
 95 
 
 
 
 
 
 
 404.33 
 
 96 
 
 
 
 
 
 
 431.47 
 
 97 
 
 
 
 
 
 
 462.18 
 
 98 
 
 
 
 
 
 
 495.12 
 
 99 
 
 
 
 
 
 
 531.29 
 
 100 
 
 
 
 
 
 
 581.73 
 
 101 
 
 
 
 
 
 
 666.67 
 
 102 
 
 
 
 
 
 
 1,000.00 
 
 
 2,843,218 
 
 332,466 
 
 25,125 
 
 2,880,166.5 
 
 
 
130 
 FORTY-THREE SOCIETIES. 
 
 Age. 
 
 Unadjusted. 
 
 Adjusted. 
 
 Ix. 
 
 dx. 
 
 Ix. 
 
 dx. 
 
 qx. 
 
 px. 
 
 17 
 
 100,000 
 
 184 
 
 100,000 
 
 464 
 
 .00464 
 
 .99536 
 
 18 
 
 99,816 
 
 365 
 
 99,536 
 
 462 
 
 .00466 
 
 .99534 
 
 19 
 
 99,451 
 
 461 
 
 99,074 
 
 464 
 
 .00468 
 
 .99532 
 
 20 
 
 98,990 
 
 469 
 
 98,610 
 
 465 
 
 .00471 
 
 .99529 
 
 21 
 
 98,521 
 
 477 
 
 98,145 
 
 464 
 
 .00473 
 
 .99527 
 
 22 
 
 98,044 
 
 415 
 
 97,681 
 
 462 
 
 .00474 
 
 .99526 
 
 23 
 
 97,629 
 
 504 
 
 97,219 
 
 458 
 
 .00471 
 
 .99529 
 
 24 
 
 97,125 
 
 446 
 
 96,761 
 
 451 
 
 .00466 
 
 .99534 
 
 25 
 
 96,679 
 
 487 
 
 96,310 
 
 443 
 
 .00459 
 
 .99541 
 
 26 
 
 96,192 
 
 424 
 
 95,867 
 
 434 
 
 .00452 
 
 .99548 
 
 27 
 
 95,768 
 
 405 
 
 95,433 
 
 427 
 
 .00447 
 
 .99553 
 
 28 
 
 95,363 
 
 418 
 
 95,006 
 
 424 
 
 .00446 
 
 .99554 
 
 29 
 
 94,945 
 
 411 
 
 94,582 
 
 426 
 
 .00450 
 
 .99550 
 
 30 
 
 94,534 
 
 421 
 
 94,156 
 
 432 
 
 .00460 
 
 .99540 
 
 31 
 
 94,113 
 
 443 
 
 93,724 
 
 444 
 
 .00473 
 
 .99527 
 
 32 
 
 93,670 
 
 465 
 
 93,280 
 
 454 
 
 .00489 
 
 .99511 
 
 33 
 
 93,205 
 
 501 
 
 92,826 
 
 469 
 
 .00505 
 
 .99495 
 
 34 
 
 92,704 
 
 494 
 
 92,357 
 
 479 
 
 .00520 
 
 .99480 
 
 35 
 
 92,210 
 
 493 
 
 91,878 
 
 490 
 
 .00533 
 
 .99467 
 
 36 
 
 91,717 
 
 489 
 
 91,388 
 
 497 
 
 .00545 
 
 .99455 
 
 37 
 
 91,228 
 
 507 
 
 90,891 
 
 505 
 
 .00556 
 
 .99444 
 
 38 
 
 90,721 
 
 524 
 
 90,386 
 
 515 
 
 .00570 
 
 .99430 
 
 39 
 
 90,197 
 
 524 
 
 89,871 
 
 526 
 
 .00586 
 
 .99414 
 
 40 
 
 89,673 
 
 529 
 
 89,345 
 
 542 
 
 .00607 
 
 .99393 
 
 41 
 
 89,144 
 
 588 
 
 88,803 
 
 562 
 
 .00633 
 
 .99367 
 
 42 
 
 88,556 
 
 565 
 
 88,241 
 
 585 
 
 .00664 
 
 .99336 
 
 43 
 
 87,991 
 
 638 
 
 87,656 
 
 612 
 
 .00698 
 
 .99302 
 
 44 
 
 87,353 
 
 609 
 
 87,044 
 
 641 
 
 .00737 
 
 .99263 
 
 45 
 
 86,744 
 
 708 
 
 86,403 
 
 674 
 
 .00779 
 
 .99221 
 
 46 
 
 86,036 
 
 726 
 
 85,729 
 
 705 
 
 .00824 
 
 .99176 
 
 47 
 
 85,310 
 
 714 
 
 85,024 
 
 743 
 
 .00873 
 
 .99127 
 
 48 
 
 84,596 
 
 830 
 
 84,281 
 
 782 
 
 .00928 
 
 .99072 
 
 49 
 
 83,766 
 
 844 
 
 83,499 
 
 829 
 
 .00992 
 
 .99008 
 
 50 
 
 82,922 
 
 834 
 
 82,670 
 
 882 
 
 .01067 
 
 .98933 
 
 51 
 
 82,088 
 
 941 
 
 81,788 
 
 945 
 
 .01155 
 
 ,98845 
 
 52 
 
 81,147 
 
 1,007 
 
 80,843 
 
 1,018 
 
 .01259 
 
 .98741 
 
 53 
 
 80,140 
 
 1,110 
 
 79,825 
 
 ,100 
 
 .01380 
 
 .98620 
 
 54 
 
 79,030 
 
 ,194 
 
 78,725 
 
 ,195 
 
 .01517 
 
 .98483 
 
 55 
 
 77,836 
 
 ,326 
 
 77,530 
 
 ,296 
 
 .01671 
 
 .98329 
 
 56 
 
 76,510 
 
 ,381 
 
 76,234 
 
 ,402 
 
 .01839 
 
 .98161 
 
 57 
 
 75,129 
 
 ,579 
 
 74,832 
 
 ,509 
 
 .02018 
 
 .97982 
 
 58 
 
 73,550 
 
 ,579 
 
 73,323 
 
 ,618 
 
 .02207 
 
 .97793 
 
 59 
 
 71,971 
 
 ,614 
 
 71,705 
 
 ,726 
 
 .02407 
 
 .97593 
 
 60 
 
 70,357 
 
 2,084 
 
 69,979 
 
 ,833 
 
 .02621 
 
 .97379 
 
131 
 
 FORTY-THREE SOCIETIES. Continued. 
 
 Age. 
 
 Unadjusted. 
 
 Adjusted. 
 
 Ix. 
 
 dx. 
 
 Ix. 
 
 dx. 
 
 qx. 
 
 px. 
 
 61 
 
 68,273 
 
 1,903 
 
 68,146 
 
 1,944 
 
 .02853 
 
 .97147 
 
 62 
 
 66,370 
 
 2,126 
 
 66,202 
 
 2,056 
 
 .03106 
 
 .96894 
 
 63 
 
 64,244 
 
 1,962 
 
 64,146 
 
 2,173 
 
 .03388 
 
 .96612 
 
 64 
 
 62,282 
 
 2,346 
 
 61 ,973 
 
 2,293 
 
 .03700 
 
 .96300 
 
 65 
 
 59,936 
 
 2,387 
 
 59,680 
 
 2,511 
 
 .04040 
 
 .95960 
 
 66 
 
 57,549 
 
 2,597 
 
 57,269 
 
 2,518 
 
 .04399 
 
 .95601 
 
 67 
 
 54,952 
 
 2,708 
 
 54,751 
 
 2,612 
 
 .04770 
 
 .95230 
 
 68 
 
 52,244 
 
 2,802 
 
 52,139 
 
 2,687 
 
 .05154 
 
 .94846 
 
 69 
 
 49,442 
 
 2,611 
 
 49,452 
 
 2,758 
 
 .05576 
 
 .94424 
 
 70 
 
 46,831 
 
 2,854 
 
 46,694 
 
 2,841 
 
 .06085 
 
 .93915 
 
 71 
 
 43,977 
 
 3,227 
 
 43,853 
 
 2,948 
 
 .06722 
 
 .93278 
 
 72 
 
 40,750 
 
 2,880 
 
 40,905 
 
 3,072 
 
 .07512 
 
 .92488 
 
 73 
 
 37,870 
 
 2,706 
 
 37,833 
 
 3,181 
 
 .08407 
 
 .91593 
 
 74 
 
 35,164 
 
 2,985 
 
 34,652 
 
 3,242 
 
 .09355 
 
 .90645 
 
 75 
 
 32,179 
 
 3,406 
 
 31,410 
 
 3,221 
 
 . 10255 
 
 .89745 
 
 76 
 
 28,773 
 
 3,340 
 
 28,189 
 
 3,109 
 
 .11028 
 
 .88972 
 
 77 
 
 25,433 
 
 3,567 
 
 25,080 
 
 2,909 
 
 .11598 
 
 .88402 
 
 78 
 
 21,866 
 
 3,060 
 
 22,171 
 
 2,666 
 
 . 12026 
 
 .87974 
 
 79 
 
 18,806 
 
 2,630 
 
 19,505 
 
 2,412 
 
 . 12362 
 
 .87638 
 
 80 
 
 16,176 
 
 1,224 
 
 17,093 
 
 2,182 
 
 . 12768 
 
 .87232 
 
 81 
 
 14,952 
 
 1,950 
 
 14,911 
 
 ,990 
 
 .13348 
 
 .86652 
 
 82 
 
 13,002 
 
 1,682 
 
 12,921 
 
 ,843 
 
 .14265 
 
 .85735 
 
 83 
 
 11,320 
 
 2,251 
 
 11.078 
 
 ,722 
 
 .15547 
 
 .84453 
 
 84 
 
 9,069 
 
 4,447 
 
 9,356 
 
 ,611 
 
 .17211 
 
 .82789 
 
 85 
 
 4,622 
 
 2,311 
 
 7,745 
 
 ,479 
 
 .19100 
 
 .80900 
 
 86 
 
 2,311 
 
 
 6,266 
 
 ,325 
 
 .21155 
 
 .78845 
 
 87 
 
 
 
 4,491 
 
 ,149 
 
 .23248 
 
 .76752 
 
 88 
 
 
 
 3,792 
 
 961 
 
 .25340 
 
 .74660 
 
 89 
 
 
 
 2,831 
 
 775 
 
 .27376 
 
 .72624 
 
 90 
 
 
 
 2,056 
 
 605 
 
 .29417 
 
 .70583 
 
 91 
 
 
 
 1,451 
 
 457 
 
 .31472 
 
 .68528 
 
 92 
 
 
 
 994 
 
 334 
 
 .33596 
 
 .66404 
 
 93 
 
 
 
 660 
 
 236 
 
 .35774 
 
 .64226 
 
 94 
 
 
 
 424 
 
 161 
 
 .38002 
 
 .61998 
 
 95 
 
 
 
 263 
 
 106 
 
 .40433 
 
 .59567 
 
 96 
 
 
 
 157 
 
 68 
 
 .43147 
 
 .56853 
 
 97 
 
 
 
 89 
 
 41 
 
 .46218 
 
 .53782 
 
 98 
 
 
 
 48 
 
 24 
 
 .49512 
 
 .50488 
 
 99 
 
 
 
 24 
 
 13 
 
 .53129 
 
 .46871 
 
 100 
 
 
 
 11 
 
 6 
 
 .58173 
 
 .41827 
 
 101 
 
 
 
 5 
 
 3 
 
 .66667 
 
 .33333 
 
 102 
 
 
 
 2 
 
 2 
 
 1.00000 
 
 .00000 
 
 
 
 97,689 
 
 
 100,000 
 
 
 
 NOTE lx = Number Living. 
 dx = Number Dying. 
 
 qx = Probability of Dying. 
 px = Probability of Living. 
 
132 
 FORTY-THREE SOCIETIES. 
 
 Ages. 
 
 Actual 
 Deaths. 
 
 Expected Deaths by 
 Adjusted. 
 
 Plus. 
 
 Minus. 
 
 Accumulated 
 Error. 
 
 17 
 
 1 
 
 3 
 
 2 
 
 
 + 2 
 
 18 
 
 30 
 
 38 
 
 8 
 
 
 +10 
 
 19 
 
 96 
 
 97 
 
 1 
 
 
 +11 
 
 20 
 
 139 
 
 138 
 
 
 1 
 
 +10 
 
 21 
 
 182 
 
 177 
 
 
 5 
 
 + 5 
 
 22 
 
 192 
 
 215 
 
 23 
 
 
 +28 
 
 23 
 
 264 
 
 241 
 
 
 23 
 
 + 5 
 
 24 
 
 266 
 
 270 
 
 4 
 
 
 + 9 
 
 25 
 
 314 
 
 286 
 
 
 28 
 
 -19 
 
 26 
 
 292 
 
 299 
 
 7 
 
 
 -12 
 
 27 
 
 300 
 
 318 
 
 18 
 
 
 + 6 
 
 28 
 
 334 
 
 340 
 
 6 
 
 
 + 12 
 
 29 
 
 343 
 
 359 
 
 16 
 
 
 +28 
 
 30 
 
 365 
 
 377 
 
 12 
 
 
 +40 
 
 31 
 
 402 
 
 403 
 
 1 
 
 
 +41 
 
 32 
 
 432 
 
 426 
 
 
 6 
 
 +35 
 
 33 
 
 471 
 
 443 
 
 
 28 
 
 + 7 
 
 34 
 
 497 
 
 485 
 
 
 12 
 
 - 5 
 
 35 
 
 505 
 
 503 
 
 
 2 
 
 - 7 
 
 36 
 
 501 
 
 512 
 
 11 
 
 
 + 4 
 
 37 
 
 528 
 
 529 
 
 1 
 
 
 + 5 
 
 38 
 
 548 
 
 540 
 
 
 8 
 
 - 3 
 
 39 
 
 533 
 
 537 
 
 4 
 
 
 + 1 
 
 40 
 
 541 
 
 556 
 
 15 
 
 
 +16 
 
 41 
 
 605 
 
 582 
 
 
 23 
 
 - 7 
 
 42 
 
 613 
 
 628 
 
 15 
 
 
 + 8 
 
 43 
 
 689 
 
 673 
 
 
 16 
 
 - 8 
 
 44 
 
 673 
 
 712 
 
 39 
 
 
 +31 
 
 45 
 
 754 
 
 719 
 
 
 35 
 
 - 4 
 
 46 
 
 735 
 
 718 
 
 
 17 
 
 -21 
 
 47 
 
 682 
 
 711 
 
 29 
 
 
 + 8 
 
 48 
 
 731 
 
 692 
 
 
 39 
 
 -31 
 
 49 
 
 683 
 
 671 
 
 
 12 
 
 -43 
 
 50 
 
 614 
 
 652 
 
 38 
 
 
 - 5 
 
 51 
 
 616 
 
 620 
 
 4 
 
 
 - 1 
 
 52 
 
 583 
 
 591 
 
 8 
 
 
 + 7 
 
 53 
 
 587 
 
 584 
 
 
 3 
 
 + 4 
 
 54 
 
 579 
 
 582 
 
 3 
 
 
 + 7 
 
 55 
 
 556 
 
 546 
 
 
 10 
 
 - 3 
 
 56 
 
 502 
 
 512 
 
 10 
 
 
 + 7 
 
 57 
 
 509 
 
 489 
 
 
 20 
 
 -13 
 
 58 
 
 465 
 
 478 
 
 13 
 
 
 
 
 59 
 
 443 
 
 475 
 
 32 
 
 
 +32 
 
 60 
 
 529 
 
 468 
 
 
 61 
 
 -29 
 
133 
 
 FORTY-THREE SOCIETIES. Continued. 
 
 Ages. 
 
 Actual 
 Deaths. 
 
 Expected Deaths by 
 Adjusted. 
 
 Plus. 
 
 Minus. 
 
 Accumulated 
 Error. 
 
 61 
 
 445 
 
 456 
 
 11 
 
 
 -18 
 
 62 
 
 460 
 
 446 
 
 
 14 
 
 -32 
 
 63 
 
 392 
 
 435 
 
 43 
 
 
 + 11 
 
 64 
 
 423 
 
 416 
 
 
 7 
 
 + 4 
 
 65 
 
 357 
 
 362 
 
 5 
 
 
 + 9 
 
 66 
 
 347 
 
 338 
 
 
 9 
 
 
 
 67 
 
 317 
 
 307 
 
 
 10 
 
 -10 
 
 68 
 
 290 
 
 279 
 
 
 11 
 
 -21 
 
 69 
 
 247 
 
 261 
 
 14 
 
 
 - 7 
 
 70 
 
 250 
 
 250 
 
 
 
 - 7 
 
 71 
 
 260 
 
 238 
 
 
 22 
 
 -29 
 
 72 
 
 214 
 
 227 
 
 13 
 
 
 -16 
 
 73 
 
 174 
 
 205 
 
 31 
 
 
 +15 
 
 74 
 
 172 
 
 190 
 
 18 
 
 
 +33 
 
 75 
 
 144 
 
 140 
 
 
 4 
 
 +29 
 
 76 
 
 115 
 
 109 
 
 
 6 
 
 +23 
 
 77 
 
 96 
 
 79 
 
 
 17 
 
 + 6 
 
 78 
 
 72 
 
 62 
 
 
 10 
 
 4 
 
 79 
 
 46 
 
 47 
 
 1 
 
 
 - 3 
 
 80 
 
 22 
 
 29 
 
 7 
 
 
 + 4 
 
 81 
 
 21 
 
 21 
 
 
 
 + 4 
 
 82 
 
 13 
 
 14 
 
 1 
 
 
 + 5 
 
 83 
 
 18 
 
 14 
 
 
 4 
 
 + 1 
 
 84 
 
 2 
 
 3 
 
 1 
 
 
 + 2 
 
 85 
 
 3 
 
 1 
 
 
 2 
 
 
 
 89 
 
 1 
 
 1 
 
 
 
 
 
 
 25,125 
 
 25,125 
 
 465 
 
 465 
 
 
134 
 MEN. 
 
 Ages. 
 
 Exposures. 
 
 Unadjusted 
 Death Rate 
 Per 1000. 
 
 Adjusted 
 Death Rate 
 Per 1000. 
 
 Living. 
 
 Dying. 
 
 16 
 
 112.0 
 
 
 
 
 
 17 
 
 365.5 
 
 2.74 
 
 4.35 
 
 100,000 
 
 434 
 
 18 
 
 4,145.0 
 
 4.58 
 
 4.40 
 
 99,566 
 
 439 
 
 19 
 
 12,025.0 
 
 4.99 
 
 4.47 
 
 99,127 
 
 445 
 
 20 
 
 18,451.5 
 
 5.20 
 
 4.54 
 
 98,682 
 
 448 
 
 21 
 
 24,819.5 
 
 4.43 
 
 4.60 
 
 98,234 
 
 452 
 
 22 
 
 31,667.0 
 
 4.23 
 
 4.61 
 
 97,782 
 
 451 
 
 23 
 
 35,936.0 
 
 4.98 
 
 4.58 
 
 97,331 
 
 445 
 
 24 
 
 41,224.0 
 
 4.37 
 
 4.51 
 
 96,886 
 
 436 
 
 25 
 
 44,531.5 
 
 4.85 
 
 4.41 
 
 96,450 
 
 426 
 
 26 
 
 47,484.5 
 
 4.17 
 
 4.32 
 
 96,024 
 
 415 
 
 27 
 
 51,358.5 
 
 4.05 
 
 4.26 
 
 95,609 
 
 406 
 
 28 
 
 55,206.0 
 
 4.18 
 
 4.25 
 
 95,203 
 
 405 
 
 29 
 
 57,805.5 
 
 4.26 
 
 4.30 
 
 94,798 
 
 407 
 
 30 
 
 59,628.0 
 
 4.11 
 
 4.40 
 
 94,391 
 
 417 
 
 31 
 
 62,105.5 
 
 4.23 
 
 4.54 
 
 93,974 
 
 427 
 
 32 
 
 63,670.0 
 
 5.04 
 
 4.70 
 
 93,547 
 
 440 
 
 33 
 
 64,011.5 
 
 5.37 
 
 4.86 
 
 93 , 107 
 
 454 
 
 34 
 
 68,240.5 
 
 5.06 
 
 5.02 
 
 92,653 
 
 466 
 
 35 
 
 69,484.0 
 
 5.20 
 
 5.16 
 
 92,187 
 
 476 
 
 36 
 
 69,425.0 
 
 5.06 
 
 5.30 
 
 91,711 
 
 487 
 
 37 
 
 70,378.0 
 
 5.44 
 
 5.45 
 
 91,224 
 
 496 
 
 38 
 
 70,274.5 
 
 5.49 
 
 5.63 
 
 90,728 
 
 511 
 
 39 
 
 67,585.0 
 
 5.80 
 
 5.85 
 
 90,217 
 
 528 
 
 40 
 
 68,031.5 
 
 6.03 
 
 6.11 
 
 89,689 
 
 547 
 
 41 
 
 68,628.5 
 
 6.70 
 
 6.42 
 
 89,142 
 
 573 
 
 42 
 
 71,075.5 
 
 6.63 
 
 6.77 
 
 88,569 
 
 600 
 
 43 
 
 72,613.5 
 
 7.19 
 
 7.14 
 
 87,969 
 
 628 
 
 44 
 
 72,803.0 
 
 7.20 
 
 7.53 
 
 87,341 
 
 657 
 
 45 
 
 69,887.5 
 
 8.16 
 
 7.93 
 
 86,684 
 
 688 
 
 46 
 
 65,994.5 
 
 8.83 
 
 8.37 
 
 85,996 
 
 719 
 
 47 
 
 61,665.0 
 
 8.64 
 
 8.85 
 
 85,277 
 
 755 
 
 48 
 
 56,573.0 
 
 9.49 
 
 9.41 
 
 84,522 
 
 796 
 
 49 
 
 50,715.5 
 
 10.08 
 
 10.10 
 
 83,726 
 
 846 
 
 50 
 
 45,485.5 
 
 10.44 
 
 10.94 
 
 82,880 
 
 907 
 
 51 
 
 39,736.0 
 
 12.06 
 
 11.94 
 
 81,973 
 
 980 
 
 52 
 
 34,513.0 
 
 12.84 
 
 13.11 
 
 80,993 
 
 1,061 
 
 53 
 
 31,110.0 
 
 13.92 
 
 14.45 
 
 79,932 
 
 1,155 
 
 54 
 
 27,440.0 
 
 16.44 
 
 15.94 
 
 78,777 
 
 1,256 
 
 55 
 
 23,699.5 
 
 18.14 
 
 17.57 
 
 77.521 
 
 1,362 
 
 56 
 
 20,204.0 
 
 19.01 
 
 19.29 
 
 76,159 
 
 1,469 
 
 57 
 
 17,975.0 
 
 22.48 
 
 21.11 
 
 74,690 
 
 1,578 
 
 58 
 
 16,894.5 
 
 21.90 
 
 23.00 
 
 73,112 
 
 1,682 
 
 59 
 
 15,961.0 
 
 22.43 
 
 25.00 
 
 71,430 
 
 1,787 
 
 60 ' 
 
 14,773.5 
 
 30.93 
 
 27.11 
 
 69,643 
 
 1,888 
 
135 
 MEN. Continued. 
 
 Ages. 
 
 Exposures. 
 
 Unadjusted 
 Death Rate 
 Per 1000. 
 
 Adjusted 
 Death Rate 
 Per 1000. 
 
 Living. 
 
 Dying. 
 
 61 
 
 13,377.5 
 
 28.93 
 
 29.43 
 
 67,755 
 
 1,994 
 
 62 
 
 12,077.0 
 
 33.45 
 
 31.93 
 
 65,761 
 
 2,099 
 
 63 
 
 10,847.5 
 
 31.43 
 
 34.71 
 
 63,662 
 
 2,209 
 
 64 
 
 9,646.5 
 
 37.84 
 
 37.74 
 
 61,453 
 
 2,320 
 
 65 
 
 7,826.5 
 
 40.25 
 
 41.01 
 
 59,133 
 
 2,426 
 
 66 
 
 6,808.0 
 
 46.42 
 
 44.45 
 
 56,707 
 
 2,521 
 
 67 
 
 5,751.0 
 
 49.73 
 
 48.03 
 
 54,186 
 
 2,603 
 
 68 
 
 4,830.0 
 
 54.45 
 
 51.78 
 
 51,583 
 
 2,670 
 
 69 
 
 4,206.5 
 
 52.78 
 
 55.98 
 
 48,913 
 
 2,739 
 
 70 
 
 3,711.0 
 
 60.09 
 
 61.20 
 
 46,174 
 
 2,826 
 
 71 
 
 3,224.5 
 
 73.81 
 
 67.92 
 
 43,348 
 
 2,944 
 
 72 
 
 2,714.0 
 
 71,85 
 
 76.42 
 
 40,404 
 
 3,088 
 
 73 
 
 2,184.0 
 
 74.18 
 
 86.21 
 
 37,316 
 
 3,217 
 
 74 
 
 1,813.5 
 
 89.33 
 
 96.75 
 
 34,099 
 
 3,299 
 
 75 
 
 1,209.0 
 
 107.53 
 
 107.04 
 
 30,800 
 
 3.297 
 
 76 
 
 851.5 
 
 117.44 
 
 116.30 
 
 27,503 
 
 3,199 
 
 77 
 
 570.5 
 
 154.24 
 
 123.71 
 
 24,304 
 
 3,006 
 
 78 
 
 395.5 
 
 144.12 
 
 129.60 
 
 21,298 
 
 2,761 
 
 79 
 
 268.0 
 
 138.06 
 
 134.13 
 
 18,537 
 
 2,486 
 
 80 
 
 163.5 
 
 97.86 
 
 138.36 
 
 16,051 
 
 2,221 
 
 81 
 
 112.0 
 
 133.93 
 
 142.83 
 
 13,830 
 
 1,975 
 
 82 
 
 46.5 
 
 150.54 
 
 148.77 
 
 11,855 
 
 1,763 
 
 83 
 
 50.0 
 
 200.00 
 
 156.59 
 
 10,091 
 
 1,581 
 
 84 
 
 7.0 
 
 130.29 
 
 166.75 
 
 8,511 
 
 1,419 
 
 85 
 
 2.0 
 
 
 178.37 
 
 7,092 
 
 1,265 
 
 86 
 
 1.0 
 
 
 191.36 
 
 5.827 
 
 1,115 
 
 87 
 
 1.0 
 
 
 205.12 
 
 4,712 
 
 967 
 
 88 
 
 
 
 219.72 
 
 3,745 
 
 822 
 
 89 
 
 1.0 
 
 
 234.64 
 
 2,923 
 
 686 
 
 90 
 
 1.0 
 
 
 250.26 
 
 2,237 
 
 560 
 
 91 
 
 
 
 266.29 
 
 1,677 
 
 447 
 
 92 
 
 
 
 282.72 
 
 1,230 
 
 347 
 
 93 
 
 
 
 298.90 
 
 883 
 
 264 
 
 94 
 
 
 
 314.34 
 
 619 
 
 195 
 
 95 
 
 
 
 352.94 
 
 424 
 
 150 
 
 96 
 
 
 
 484.93 
 
 274 
 
 133 
 
 97 
 
 
 
 608.50 
 
 141 
 
 86 
 
 98 
 
 
 ,. 
 
 807.50 
 
 55 
 
 14 
 
 99 
 
 
 
 1,000.00 
 
 11 
 
 11 
 
 
 2,128,410.0 
 
 
 
 
 100,000 
 
136 
 
 MEN. 
 
 Ages. 
 
 Actual Deaths. 
 
 Expected Deaths by 
 Adjusted. 
 
 Plus. 
 
 Minus. 
 
 Accumulated Error. 
 
 17 
 
 1 
 
 2 
 
 1 
 
 
 + 1 
 
 18 
 
 19 
 
 18 
 
 
 1 
 
 
 
 19 
 
 60 
 
 54 
 
 
 6 
 
 - 6 
 
 20 
 
 96 
 
 84 
 
 
 12 
 
 -18 
 
 21 
 
 110 
 
 114 
 
 4 
 
 
 -14 
 
 22 
 
 134 
 
 146 
 
 12 
 
 
 - 2 
 
 23 
 
 179 
 
 165 
 
 
 14 
 
 -16 
 
 24 
 
 180 
 
 186 
 
 6 
 
 
 -10 
 
 25 
 
 216 
 
 196 
 
 
 20 
 
 -30 
 
 26 
 
 198 
 
 205 
 
 7 
 
 
 -23 
 
 27 
 
 208 
 
 219 
 
 11 
 
 
 -12 
 
 28 
 
 231 
 
 235 
 
 4 
 
 
 - 8 
 
 29 
 
 246 
 
 249 
 
 3 
 
 
 - 5 
 
 30 
 
 245 
 
 263 
 
 18 
 
 
 +13 
 
 31 
 
 263 
 
 282 
 
 19 
 
 
 +32 
 
 32 
 
 321 
 
 299 
 
 
 22 
 
 +10 
 
 33 
 
 344 
 
 311 
 
 
 33 
 
 -23 
 
 34 
 
 345 
 
 342 
 
 
 3 
 
 -26 
 
 35 
 
 361 
 
 359 
 
 
 2 
 
 -28 
 
 36 
 
 351 
 
 368 
 
 17 
 
 
 -11 
 
 37 
 
 383 
 
 383 
 
 
 
 -11 
 
 38 
 
 386 
 
 396 
 
 10 
 
 
 - 1 
 
 39 
 
 392 
 
 395 
 
 3 
 
 
 + 2 
 
 40 
 
 410 
 
 411 
 
 6 
 
 
 + 8 
 
 41 
 
 460 
 
 441 
 
 
 19 
 
 -11 
 
 42 
 
 471 
 
 481 
 
 10 
 
 
 - 1 
 
 43 
 
 522 
 
 518 
 
 
 4 
 
 - 5 
 
 44 
 
 524 
 
 548 
 
 24 
 
 
 +19 
 
 45 
 
 570 
 
 554 
 
 
 16 
 
 + 3 
 
 46 
 
 583 
 
 552 
 
 
 31 
 
 -28 
 
 47 
 
 533 
 
 546 
 
 13 
 
 
 -15 
 
 48 
 
 537 
 
 532 
 
 
 5 
 
 -20 
 
 49 
 
 511 
 
 512 
 
 1 
 
 
 -19 
 
 50 
 
 475 
 
 497 
 
 22 
 
 
 + 3 
 
 51 
 
 479 
 
 474 
 
 
 5 
 
 - 2 
 
 52 
 
 443 
 
 453 
 
 10 
 
 
 + 8 
 
 53 
 
 433 
 
 450 
 
 17 
 
 
 +25 
 
 54 
 
 451 
 
 437 
 
 
 14 
 
 +11 
 
 55 
 
 430 
 
 416 
 
 
 14 
 
 - 3 
 
 56 
 
 384 
 
 390 
 
 6 
 
 
 + 3 
 
 57 
 
 404 
 
 380 
 
 
 24 
 
 -21 
 
 58 
 
 370 
 
 389 
 
 19 
 
 
 - 2 
 
 59 
 
 358 
 
 399 
 
 41 
 
 
 +39 
 
 60 
 
 457 
 
 401 
 
 
 56 
 
 -17 
 
137 
 
 MEN. Continued. 
 
 Ages. 
 
 Actual Deaths. 
 
 Expected Deaths by 
 Adjusted. 
 
 Plus. 
 
 Minus. 
 
 Accumulated Error. 
 
 61 
 
 387 
 
 394 
 
 7 
 
 
 -10 
 
 62 
 
 404 
 
 386 
 
 
 18 
 
 -28 
 
 63 
 
 341 
 
 377 
 
 36 
 
 
 + 8 
 
 64 
 
 365 
 
 364 
 
 
 1 
 
 + 7 
 
 65 
 
 315 
 
 321 
 
 6 
 
 
 +13 
 
 66 
 
 316 
 
 303 
 
 
 13 
 
 
 
 67 
 
 286 
 
 276 
 
 
 10 
 
 -10 
 
 68 
 
 263 
 
 256 
 
 
 7 
 
 -17 
 
 69 
 
 222 
 
 235 
 
 13 
 
 
 - 4 
 
 70 
 
 223 
 
 227 
 
 4 
 
 
 
 
 71 
 
 238 
 
 219 
 
 
 19 
 
 -19 
 
 72 
 
 195 
 
 207 
 
 12 
 
 
 - 7 
 
 73 
 
 162 
 
 188 
 
 26 
 
 
 +19 
 
 74 
 
 162 
 
 175 
 
 13 
 
 
 +32 
 
 75 
 
 130 
 
 129 
 
 
 1 
 
 +31 
 
 76 
 
 100 
 
 99 
 
 
 1 
 
 +30 
 
 77 
 
 88 
 
 71 
 
 
 17 
 
 +13 
 
 78 
 
 57 
 
 51 
 
 
 6 
 
 + 7 
 
 79 
 
 37 
 
 36 
 
 
 1 
 
 + 6 
 
 80 
 
 16 
 
 23 
 
 7 
 
 
 +13 
 
 81 
 
 15 
 
 16 
 
 1 
 
 
 +14 
 
 82 
 
 7 
 
 7 
 
 
 
 +14 
 
 83 
 
 10 
 
 8 
 
 
 2 
 
 +12 
 
 84 
 
 1 
 
 1 
 
 
 
 +12 
 
 
 19,414 
 
 19,426 
 
 409 
 
 397 
 
 
138 
 WOMEN. 
 
 Ages. 
 
 Exposures. 
 
 Unadjusted 
 Death Rate 
 Per 1000. 
 
 Adjusted 
 Death Rate 
 Per 1000. 
 
 Living. 
 
 Dying. 
 
 16 
 
 .5 
 
 
 
 
 
 17 
 
 64.0 
 
 5.35 
 
 5.43 
 
 100,000 
 
 543 
 
 18 
 
 1,139.0 
 
 6.15 
 
 5.41 
 
 99,457 
 
 538 
 
 19 
 
 3,176.0 
 
 5.35 
 
 5.40 
 
 98,919 
 
 534 
 
 20 
 
 4,162.5 
 
 4.56 
 
 5.39 
 
 98,385 
 
 531 
 
 21 
 
 5,060.5 
 
 6.32 
 
 5.42 
 
 97,854 
 
 530 
 
 22 
 
 5,570.0 
 
 3.77 
 
 5.46 
 
 97,324 
 
 532 
 
 23 
 
 6,648.5 
 
 6.92 
 
 5.49 
 
 96,792 
 
 531 
 
 24 
 
 7,562.0 
 
 5.42 
 
 5.49 
 
 96,261 
 
 528 
 
 25 
 
 8,474.0 
 
 6.25 
 
 5.48 
 
 95,733 
 
 526 
 
 26 
 
 8,926.5 
 
 4.93 
 
 5.46 
 
 95,207 
 
 520 
 
 27 
 
 9,716.0 
 
 4.63 
 
 5.47 
 
 94,687 
 
 518 
 
 28 
 
 10,484.0 
 
 5.82 
 
 5.51 
 
 94,169 
 
 519 
 
 29 
 
 11,038.0 
 
 5.80 
 
 5.60 
 
 93,650 
 
 524 
 
 30 
 
 11,451.5 
 
 5.33 
 
 5.70 
 
 93,126 
 
 530 
 
 31 
 
 11,768.5 
 
 6.88 
 
 5.80 
 
 92,596 
 
 538 
 
 32 
 
 11,976.0 
 
 5.59 
 
 5.88 
 
 92,058 
 
 541 
 
 33 
 
 12,367.0 
 
 5.26 
 
 5.93 
 
 91,517 
 
 542 
 
 34 
 
 12,964.0 
 
 6.17 
 
 5.94 
 
 90,975 
 
 541 
 
 35 
 
 13,050.0 
 
 6.13 
 
 5.93 
 
 90,434 
 
 536 
 
 36 
 
 12,786.5 
 
 6.10 
 
 5.93 
 
 89,898 
 
 532 
 
 37 
 
 12,791.5 
 
 5.55 
 
 5.93 
 
 89,366 
 
 530 
 
 38 
 
 12,765.0 
 
 6.66 
 
 5.95 
 
 88,836 
 
 528 
 
 39 
 
 12,561.5 
 
 5.25 
 
 6.01 
 
 88,308 
 
 531 
 
 40 
 
 12,223.5 
 
 5.73 
 
 6.08 
 
 87,777 
 
 534 
 
 41 
 
 12,012.5 
 
 6.58 
 
 6.14 
 
 87,243 
 
 535 
 
 42 
 
 11,737.0 
 
 6.56 
 
 6.22 
 
 86,708 
 
 539 
 
 43 
 
 11,845.0 
 
 6.50 
 
 6.32 
 
 86,169 
 
 544 
 
 44 
 
 11,501.5 
 
 5.83 
 
 6.44 
 
 85,625 
 
 552 
 
 45 
 
 10,844.5 
 
 7.50 
 
 6.61 
 
 85,073 
 
 563 
 
 46 
 
 10,046.5 
 
 6.07 
 
 6.90 
 
 84,510 
 
 583 
 
 47 
 
 9,170.0 
 
 6.11 
 
 7.36 
 
 83,927 
 
 618 
 
 48 
 
 8,190.5 
 
 9.40 
 
 7.97 
 
 83,309 
 
 665 
 
 49 
 
 7,655.0 
 
 9.27 
 
 8.66 
 
 82,644 
 
 716 
 
 50 
 
 6,484.5 
 
 7.86 
 
 9.38 
 
 81,928 
 
 768 
 
 51 
 
 5,462.0 
 
 10.44 
 
 10.07 
 
 81,160 
 
 818 
 
 52 
 
 4,629.5 
 
 10.37 
 
 10.61 
 
 80,342 
 
 852 
 
 53 
 
 3,933.5 
 
 14.75 
 
 11.08 
 
 79,490 
 
 881 
 
 54 
 
 3,602.0 
 
 11.94 
 
 11.63 
 
 78,609 
 
 932 
 
 55 
 
 2,731.5 
 
 8.05 
 
 12.58 
 
 77,677 
 
 960 
 
 56 
 
 2,473.5 
 
 14.55 
 
 14.17 
 
 76,717 
 
 1,088 
 
 57 
 
 1,919.5 
 
 17.71 
 
 16.49 
 
 75,629 
 
 1,247 
 
 58 
 
 1,388.5 
 
 15.12 
 
 19.35 
 
 74,382 
 
 1,440 
 
 59 
 
 987.0 
 
 21.28 
 
 22.36 
 
 72,942 
 
 1,630 
 
 60 
 
 668.5 
 
 28.42 
 
 25.13 
 
 71,312 
 
 1,792 
 
139 
 WOMEN. Continued. 
 
 Ages. 
 
 Exposures. 
 
 Unadjusted 
 Death Rate 
 Per 1000. 
 
 Adjusted 
 Death Rate 
 Per 1000. 
 
 Living. 
 
 Dying. 
 
 61 
 
 496.0 
 
 30.24 
 
 27.24 
 
 69,520 
 
 1,893 
 
 62 
 
 475.5 
 
 35.75 
 
 28.65 
 
 67,627 
 
 1,937 
 
 63 
 
 449.5 
 
 24.47 
 
 29.54 
 
 65,690 
 
 1,940 
 
 64 
 
 311.0 
 
 25.72 
 
 30.42 
 
 63,750 
 
 1,940 
 
 65 
 
 244.5 
 
 32.72 
 
 31.72 
 
 61,810 
 
 1,961 
 
 66 
 
 146.5 
 
 6.83 
 
 33.74 
 
 59,849 
 
 2,019 
 
 67 
 
 70.0 
 
 28.57 
 
 36.57 
 
 57,830 
 
 2,115 
 
 68 
 
 21.0 
 
 
 40.10 
 
 55,715 
 
 2,234 
 
 69 
 
 1.0 
 
 
 44.19 
 
 53,481 
 
 2,363 
 
 70 
 
 
 
 48.65 
 
 51,118 
 
 2,488 
 
 71 
 
 2.0 
 
 
 53.38 
 
 48,630 
 
 2,596 
 
 72 
 
 
 
 58.38 
 
 46,034 
 
 2,687 
 
 73 
 
 1.0 
 
 
 63.78 
 
 43,347 
 
 2,764 
 
 74 
 
 
 
 69.57 
 
 40,583 
 
 2,824 
 
 75 
 
 1.0 
 
 
 75.74 
 
 37,759 
 
 2,860 
 
 76 
 
 
 
 82.31 
 
 34,899 
 
 2,872 
 
 77 
 
 
 
 89.30 
 
 32,027 
 
 2,860 
 
 78 
 
 
 
 96.71 
 
 29,167 
 
 2,821 
 
 79 
 
 
 
 104.55 
 
 26,346 
 
 2,754 
 
 80 
 
 
 
 112.83 
 
 23,592 
 
 2,662 
 
 81 
 
 
 
 121.56 
 
 20,930 
 
 2,544 
 
 82 
 
 
 
 130.74 
 
 18,386 
 
 2,404 
 
 83 
 
 
 
 140.39 
 
 15,982 
 
 2,244 
 
 84 
 
 
 
 150.51 
 
 13,738 
 
 2,067 
 
 85 
 
 
 
 161.12 
 
 11,671 
 
 1,881 
 
 86 
 
 
 
 172.24 
 
 9,790 
 
 1,686 
 
 87 
 
 
 
 183.88 
 
 8,104 
 
 1,490 
 
 88 
 
 
 
 196.06 
 
 6,614 
 
 1,297 
 
 89 
 
 
 
 208.79 
 
 5,317 
 
 1,110 
 
 90 
 
 - 
 
 
 222.08 
 
 4,207 
 
 934 
 
 91 
 
 
 
 235.96 
 
 3,273 
 
 773 
 
 92 
 
 
 
 250.44 
 
 2,500 
 
 626 
 
 93 
 
 
 
 276.20 
 
 1,874 
 
 517 
 
 94 
 
 
 
 309.45 
 
 1,357 
 
 420 
 
 95 
 
 
 
 348.77 
 
 937 
 
 327 
 
 96 
 
 
 
 412.92 
 
 610 
 
 252 
 
 97 
 
 
 
 504.89 
 
 358 
 
 181 
 
 98 
 
 
 
 634.68 
 
 177 
 
 112 
 
 99 
 
 
 
 813.56 
 
 65 
 
 53 
 
 100 
 
 
 
 1,000.00 
 
 12 
 
 12 
 
 
 348,228.0 
 
 
 
 
 100,000 
 
140 
 WOMEN. 
 
 Ages. 
 
 Actual Deaths. 
 
 Expected Deaths 
 by Adjusted. 
 
 Plus. 
 
 Minus. 
 
 Accumulated 
 Error. 
 
 18 
 
 7 
 
 6 
 
 
 1 
 
 - 1 
 
 19 
 
 17 
 
 17 
 
 
 
 - 1 
 
 20 
 
 19 
 
 22 
 
 3 
 
 
 + 2 
 
 21 
 
 32 
 
 27 
 
 
 5 
 
 - 3 
 
 22 
 
 21 
 
 30 
 
 9 
 
 
 + 6 
 
 23 
 
 46 
 
 37 
 
 
 9 
 
 - 3 
 
 24 
 
 41 
 
 41 
 
 
 
 - 3 
 
 25 
 
 53 
 
 46 
 
 
 7 
 
 -10 
 
 26 
 
 44 
 
 49 
 
 5 
 
 
 - 5 
 
 27 
 
 45 
 
 53 
 
 8 
 
 
 + 3 
 
 28 
 
 61 
 
 58 
 
 
 3 
 
 
 
 29 
 
 64 
 
 62 
 
 
 2 
 
 - 2 
 
 30 
 
 61 
 
 65 
 
 4 
 
 
 + 2 
 
 31 
 
 81 
 
 68 
 
 
 13 
 
 -11 
 
 32 
 
 67 
 
 70 
 
 3 
 
 
 - 8 
 
 33 
 
 65 
 
 73 
 
 8 
 
 
 
 
 34 
 
 80 
 
 77 
 
 
 3 
 
 - 3 
 
 35 
 
 80 
 
 77 
 
 
 3 
 
 - 6 
 
 36 
 
 78 
 
 76 
 
 
 2 
 
 - 8 
 
 37 
 
 71 
 
 76 
 
 5 
 
 
 - 3 
 
 38 
 
 85 
 
 76 
 
 
 9 
 
 -12 
 
 39 
 
 66 
 
 76 
 
 10 
 
 
 - 2 
 
 40 
 
 70 
 
 74 
 
 4 
 
 
 + 2 
 
 41 
 
 79 
 
 74 
 
 
 5 
 
 - 3 
 
 42 
 
 77 
 
 73 
 
 
 4 
 
 - 7 
 
 43 
 
 77 
 
 75 
 
 
 2 
 
 - 9 
 
 44 
 
 67 
 
 74 
 
 7 
 
 
 - 2 
 
 45 
 
 81 
 
 71 
 
 
 10 
 
 -12 
 
 46 
 
 61 
 
 69 
 
 8 
 
 
 A 
 
 47 
 
 56 
 
 67 
 
 11 
 
 
 + 7 
 
 48 
 
 77 
 
 65 
 
 
 12 
 
 - 5 
 
 49 
 
 71 
 
 66 
 
 
 5 
 
 -10 
 
 50 
 
 51 
 
 61 
 
 10 
 
 
 
 
 51 
 
 57 
 
 55 
 
 
 2 
 
 - 2 
 
 52 
 
 48 
 
 49 
 
 1 
 
 
 - 1 
 
 53 
 
 58 
 
 44 
 
 
 14 
 
 -15 
 
 54 
 
 43 
 
 42 
 
 
 1 
 
 -16 
 
 55 
 
 22 
 
 34 
 
 12 
 
 
 4 
 
 56 
 
 36 
 
 35 
 
 
 1 
 
 - 5 
 
 57 
 
 34 
 
 32 
 
 
 2 
 
 - 7 
 
 58 
 
 21 
 
 27 
 
 6 
 
 
 - 1 
 
 59 
 
 21 
 
 22 
 
 1 
 
 
 
 
 60 
 
 19 
 
 17 
 
 
 2 
 
 - 2 
 
 61 
 
 15 
 
 14 
 
 
 1 
 
 - 3 
 
 62 
 
 17 
 
 14 
 
 
 3 
 
 - 6 
 
 53 
 
 11 
 
 13 
 
 2 
 
 
 4 
 
 64 
 
 8 
 
 9 
 
 1 
 
 
 - 3 
 
 65 
 
 8 
 
 8 
 
 
 
 - 3 
 
 66 
 
 1 
 
 5 
 
 4 
 
 
 
 67 
 
 2 
 
 3 
 
 1 
 
 
 + 1 
 
 
 
 
 
 
 4- 2 
 
 
 2,372 
 
 2,374 
 
 123 
 
 121 
 
 ~ * 
 
141 
 MEN AND WOMEN. 
 
 Ages. 
 
 Exposures. 
 
 Unadjusted 
 Death Rate 
 Per 1000. 
 
 Adjusted 
 Death Rate 
 Per 1000. 
 
 Living. 
 
 Dying. 
 
 16 
 
 54.5 
 
 
 
 
 
 17 
 
 110.0 
 
 
 4.23 
 
 100,000 
 
 423 
 
 18 
 
 2,904.5 
 
 1.38 
 
 4.21 
 
 99,577 
 
 418 
 
 19 
 
 5,490.0 
 
 3.46 
 
 4.25 
 
 99,159 
 
 422 
 
 20 
 
 6,773.0 
 
 3.54 
 
 4.33 
 
 98,737 
 
 426 
 
 21 
 
 7,575.5 
 
 5.28 
 
 4.44 
 
 98,311 
 
 436 
 
 22 
 
 8,163.5 
 
 4.53 
 
 4.56 
 
 97,875 
 
 448 
 
 23 
 
 8,482.5 
 
 4.60 
 
 4.67 
 
 97,427 
 
 454 
 
 24 
 
 9,223.5 
 
 4.88 
 
 4.71 
 
 96,973 
 
 457 
 
 25 
 
 9,335.5 
 
 4.82 
 
 4.69 
 
 96,516 
 
 452 
 
 26 
 
 9,708.0 
 
 5.15 
 
 4.62 
 
 96,064 
 
 444 . 
 
 27 
 
 10,088.0 
 
 4.66 
 
 4.53 
 
 95,620 
 
 432 
 
 28 
 
 10,612.0 
 
 3.96 
 
 4.46 
 
 95,188 
 
 425 
 
 29 
 
 10,829.0 
 
 3.05 
 
 4.44 
 
 94,763 
 
 420 
 
 30 
 
 10,937.5 
 
 5.39 
 
 4.50 
 
 94,343 
 
 425 
 
 31 
 
 11,362.5 
 
 5.10 
 
 4.66 
 
 93,918 
 
 438 
 
 32 
 
 11,561.0 
 
 3.81 
 
 4.90 
 
 93,480 
 
 457 
 
 33 
 
 11,360.5 
 
 5.46 
 
 5.19 
 
 93,023 
 
 483 
 
 34 
 
 12,004.5 
 
 6.00 
 
 5.47 
 
 92,540 
 
 506 
 
 35 
 
 11,884.0 
 
 5.39 
 
 5.72 
 
 92,034 
 
 526 
 
 36 
 
 11,950.0 
 
 6.03 
 
 5.90 
 
 91,508 
 
 540 
 
 37 
 
 11,934.0 
 
 6.20 
 
 5.99 
 
 90,968 
 
 545 
 
 38 
 
 11,683.5 
 
 6.59 
 
 6.01 
 
 90,423 
 
 544 
 
 39 
 
 11,483.5 
 
 6.53 
 
 6.02 
 
 89,879 
 
 540 
 
 40 
 
 11,253.5 
 
 5.42 
 
 6.06 
 
 89,339 
 
 542 
 
 41 
 
 11,317.5 
 
 5.83 
 
 6.19 
 
 88,797 
 
 550 
 
 42 
 
 11,836.0 
 
 5.49 
 
 6.46 
 
 88,247 
 
 569 
 
 43 
 
 12,024.0 
 
 7.49 
 
 6.88 
 
 87,678 
 
 604 
 
 44 
 
 12,248.5 
 
 6.69 
 
 7.42 
 
 87,074 
 
 645 
 
 45 
 
 11,651.0 
 
 8.84 
 
 8.03 
 
 86,429 
 
 694 
 
 46 
 
 11,134.5 
 
 8.17 
 
 8.63 
 
 85,735 
 
 739 
 
 47 
 
 10,623.0 
 
 8.76 
 
 9.18 
 
 84,996 
 
 781 
 
 48 
 
 9,844.0 
 
 11.89 
 
 9.65 
 
 84,215 
 
 812 
 
 49 
 
 9,346.5 
 
 10.81 
 
 10.06 
 
 83,403 
 
 839 
 
 50 
 
 9,101.0 
 
 9.67 
 
 10.47 
 
 82,564 
 
 864 
 
 51 
 
 8,464.0 
 
 9.45 
 
 10.98 
 
 81,700 
 
 897 
 
 52 . 
 
 7,819.5 
 
 11.77 
 
 11.67 
 
 80,803 
 
 943 
 
 53 
 
 7,304.5 
 
 13.09 
 
 12.59 
 
 79,860 
 
 ,005 
 
 54 
 
 7,299.0 
 
 11.65 
 
 13.72 
 
 78,855 
 
 ,082 
 
 55 
 
 6,233.5 
 
 16.68 
 
 14.95 
 
 77,773 
 
 ,162 
 
 56 
 
 5,149.0 
 
 15.93 
 
 16.21 
 
 76,611 
 
 ,242 
 
 57 
 
 4,324.5 
 
 16.42 
 
 17.45 
 
 75,369 
 
 ,316 
 
 58 
 
 3,497.0 
 
 21.16 
 
 18.66 
 
 74,053 
 
 ,382 
 
 59 
 
 2,799.5 
 
 22.86 
 
 20.00 
 
 72,671 
 
 ,453 
 
 60 
 
 2,412.0 
 
 21.97 
 
 21.58 
 
 71,218 
 
 ,536 
 
142 
 
 MEN AND WOMEN. Continued. 
 
 Ages. 
 
 Exposures. 
 
 Unadjusted 
 Death Rate. 
 Per 1000. 
 
 Adjusted 
 Death Rate. 
 Per 1000. 
 
 Living. 
 
 Dying. 
 
 61 
 
 2,094.5 
 
 20.53 
 
 23.57 
 
 69,682 
 
 1,643 
 
 62 
 
 1,809.0 
 
 21.71 
 
 26.11 
 
 68,039 
 
 1,776 
 
 63 
 
 1,533.5 
 
 26.08 
 
 29.35 
 
 66,263 
 
 1,945 
 
 64 
 
 1,277.0 
 
 39.15 
 
 33.34 
 
 64,318 
 
 2,145 
 
 65 
 
 894.5 
 
 38.01 
 
 37.94 
 
 62,173 
 
 2,359 
 
 66 
 
 731.5 
 
 41.01 
 
 42.66 
 
 59,814 
 
 2,552 
 
 67 
 
 614.0 
 
 47.23 
 
 47.11 
 
 57,262 
 
 2,698 
 
 68 
 
 555.5 
 
 48.61 
 
 50.94 
 
 54,564 
 
 2,779 
 
 69 
 
 468.5 
 
 53.36 
 
 54.06 
 
 51,785 
 
 2,800 
 
 70 
 
 392.0 
 
 68.88 
 
 56.74 
 
 48,985 
 
 2,780 
 
 71 
 
 316.5 
 
 69.51 
 
 59.53 
 
 46,205 
 
 2,751 
 
 72 
 
 313.5 
 
 60.61 
 
 62.79 
 
 43,454 
 
 2,728 
 
 73 
 
 251.0 
 
 47.81 
 
 66.74 
 
 40,726 
 
 2,718 
 
 74 
 
 212.5 
 
 47.06 
 
 71.02 
 
 38,008 
 
 2,699 
 
 75 
 
 150.5 
 
 93.02 
 
 75.55 
 
 35,309 
 
 2,668 
 
 76 
 
 139.0 
 
 107.91 
 
 80.46 
 
 32,641 
 
 2,627 
 
 77 
 
 114.0 
 
 70.18 
 
 85.96 
 
 30,014 
 
 2,579 
 
 78 
 
 119.0 
 
 126.05 
 
 92.47 
 
 27,435 
 
 2,537 
 
 79 
 
 116.0 
 
 77.59 
 
 100.89 
 
 24,898 
 
 2,512 
 
 80 
 
 64.0 
 
 93.75 
 
 111.82 
 
 22,386 
 
 2,504 
 
 81 
 
 49.0 
 
 122.45 
 
 125.65 
 
 19,882 
 
 2,498 
 
 82 
 
 54.0 
 
 111.11 
 
 . 142.34 
 
 17,384 
 
 2,474 
 
 83 
 
 40.5 
 
 197.53 
 
 161.20 
 
 14,910 
 
 2,403 
 
 84 
 
 11.5 
 
 86.96 
 
 181.49 
 
 12,507 
 
 2,270 
 
 85 
 
 5.0 
 
 600.00 
 
 202.16 
 
 10,237 
 
 2,070 
 
 86 
 
 1.0 
 
 1,000.00 
 
 222.33 
 
 8,167 
 
 1,815 
 
 87 
 
 5.0 
 
 
 241.80 
 
 6,352 
 
 1,536 
 
 88 
 
 3.0 
 
 
 261.11 
 
 4,816 
 
 1,257 
 
 89 
 
 1.0 
 
 
 280.86 
 
 3,559 
 
 1,000 
 
 90 
 
 
 
 301 . 75 
 
 2,559 
 
 772 
 
 91 
 
 
 . 
 
 323.86 
 
 1,787 
 
 579 
 
 92 
 
 
 
 346.56 
 
 1,208 
 
 419 
 
 93 
 
 
 
 368.80 
 
 789 
 
 291 
 
 94 
 
 
 
 398.00 
 
 498 
 
 198 
 
 95 
 
 
 
 323.73 
 
 300 
 
 97 
 
 96 
 
 
 
 359.82 
 
 203 
 
 73 
 
 97 
 
 
 
 396.76 
 
 130 
 
 52 
 
 98 
 
 
 
 533.33 
 
 78 
 
 41 
 
 99 
 
 
 
 581.43 
 
 37 
 
 22 
 
 100 
 
 
 
 666.67 
 
 15 
 
 10 
 
 101 
 
 
 
 1,000.00 
 
 5 
 
 5 
 
 
 403,528.5 
 
 
 
 
 100,000 
 
143 
 MEN AND WOMEN. 
 
 Ages. 
 
 Actual Deaths. 
 
 Expected Deaths by 
 Adjusted. 
 
 Plus. 
 
 Minus. 
 
 Accumulated Error. 
 
 18 
 
 4 
 
 12 
 
 8 
 
 
 + 8 
 
 19 
 
 19 
 
 23 
 
 4 
 
 
 + 12 
 
 20 
 
 24 
 
 29 
 
 5 
 
 
 + 17 
 
 21 
 
 40 
 
 34 
 
 
 6 
 
 + 11 
 
 22 
 
 37 
 
 37 
 
 
 
 + 11 
 
 23 
 
 39 
 
 40 
 
 1 
 
 
 + 12 
 
 24 
 
 45 
 
 43 
 
 
 2 
 
 +10 
 
 25 
 
 45 
 
 44 
 
 
 1 
 
 + 9 
 
 26 
 
 50 
 
 45 
 
 
 5 
 
 + 4 
 
 27 
 
 47 
 
 46 
 
 
 1 
 
 + 3 
 
 28 
 
 42 
 
 47 
 
 5 
 
 
 + 8 
 
 29 
 
 33 
 
 48 
 
 15 
 
 
 +28 
 
 30 
 
 59 
 
 49 
 
 
 10 
 
 +13 
 
 31 
 
 58 
 
 53 
 
 
 5 
 
 + 8 
 
 32 
 
 44 
 
 57 
 
 13 
 
 
 +21 
 
 33 
 
 62 
 
 59 
 
 
 3 
 
 +18 
 
 34 
 
 72 
 
 66 
 
 
 6 
 
 + 12 
 
 35 
 
 64 
 
 68 
 
 4 
 
 
 +16 
 
 36 
 
 72 
 
 70 
 
 
 2 
 
 + 14 
 
 37 
 
 74 
 
 71 
 
 
 3 
 
 + 11 
 
 38 
 
 77 
 
 70 
 
 
 7 
 
 + 4 
 
 39 
 
 75 
 
 69 
 
 
 6 
 
 - 2 
 
 40 
 
 61 
 
 68 
 
 7 
 
 
 + 5 
 
 41 
 
 66 
 
 70 
 
 4 
 
 
 + 9 
 
 42 
 
 65 
 
 76 
 
 11 
 
 
 +20 
 
 43 
 
 90 
 
 82 
 
 
 8 
 
 + 12 
 
 44 
 
 82 
 
 91 
 
 9 
 
 
 +21 
 
 45 
 
 103 
 
 94 
 
 
 9 
 
 +12 
 
 46 
 
 91 
 
 96 
 
 - 5 
 
 
 +tf- 
 
 47 
 
 93 
 
 97 
 
 4 
 
 
 +21 
 
 48 
 
 117 
 
 95 
 
 
 22 
 
 - 1 
 
 49 
 
 101 
 
 94 
 
 
 7 
 
 - 8 
 
 50 
 
 88 
 
 95 
 
 7 
 
 
 - 1 
 
 51 
 
 80 
 
 93 
 
 13 
 
 
 + 12 
 
 52 
 
 92 
 
 91 
 
 
 1 
 
 + 11 
 
 53 
 
 96 
 
 92 
 
 
 4 
 
 + 7 
 
 54 
 
 85 
 
 100 
 
 15 
 
 
 +22 
 
 55 
 
 104 
 
 93 
 
 
 11 
 
 + 11 
 
 56 
 
 82 
 
 83 
 
 1 
 
 
 +12 
 
 57 
 
 71 
 
 75 
 
 4 
 
 
 +16 
 
 58 
 
 74 
 
 65 
 
 
 9 
 
 + 7 
 
 59 
 
 64 
 
 56 
 
 
 8 
 
 1 
 
 60 
 
 53 
 
 52 
 
 
 1 
 
 - 2 
 
144 
 
 MEN AND WOMEN. Continued. 
 
 Ages. 
 
 Actual Deaths. 
 
 Expected Deaths by 
 Adjusted. 
 
 Plus. 
 
 Minus. 
 
 Accumulated Error. 
 
 61 
 
 43 
 
 49 
 
 6 
 
 
 + 4 
 
 62 
 
 39 
 
 47 
 
 8 
 
 
 + 12 
 
 63 
 
 40 
 
 45 
 
 5 
 
 
 + 17 
 
 64 
 
 50 
 
 43 
 
 
 7 
 
 + 10 
 
 65 
 
 34 
 
 34 
 
 
 
 +10 
 
 66 
 
 30 
 
 31 
 
 1 
 
 
 +11 
 
 67 
 
 29 
 
 29 
 
 
 
 + 11 
 
 68 
 
 27 
 
 28 
 
 1 
 
 
 +12 
 
 69 
 
 25 
 
 25 
 
 
 
 + 12 
 
 70 
 
 27 
 
 42 
 
 
 5 
 
 + 7 
 
 71 
 
 22 
 
 19 
 
 
 3 
 
 + 4 
 
 72 
 
 19 
 
 20 
 
 1 
 
 
 + 5 
 
 73 
 
 12 
 
 17 
 
 5 
 
 
 +10 
 
 74 
 
 10 
 
 15 
 
 5 
 
 
 +15 
 
 75 
 
 14 
 
 11 
 
 
 3 
 
 + 12 
 
 76 
 
 15 
 
 11 
 
 
 4 
 
 + 8 
 
 77 
 
 8 
 
 10 
 
 2 
 
 
 +10 
 
 78 
 
 15 
 
 11 
 
 
 4 
 
 + 6 
 
 79 
 
 9 
 
 12 
 
 3 
 
 
 + 9 
 
 80 
 
 6 
 
 7 
 
 1 
 
 
 +10 
 
 81 
 
 6 
 
 6 
 
 
 
 +10 
 
 82 
 
 6 
 
 8 
 
 2 
 
 
 +12 
 
 83 
 
 8 
 
 7 
 
 
 1 
 
 +11 
 
 84 
 
 1 
 
 2 
 
 1 
 
 
 +12 
 
 85 
 
 3 
 
 1 
 
 
 2 
 
 +10 
 
 86 
 
 1 
 
 1 
 
 
 
 +10 
 
 
 3,339 
 
 3,349 
 
 176 
 
 166 
 
 
DEATH RATES PER 1000. 
 
 
 MALES AND MIXED LIVES. 
 
 FEMALES 
 
 Age. 
 
 1 
 
 a 
 
 03 
 
 A 
 
 
 
 Ij 
 
 k 
 
 . 
 
 1=1 
 
 d 
 
 at 
 
 
 w 
 
 03 
 
 i * 
 
 3 
 
 la "* 
 
 a 
 
 vi 
 
 Hj2 
 
 *.l 
 
 
 j 
 
 J'B 
 
 c3 
 
 
 
 a^" 1 
 
 *> 
 
 .2 
 
 s> 
 
 
 
 3 
 
 || 
 
 || 
 
 1 
 
 n 
 
 !-i 
 
 1 
 
 CO 
 
 P 
 
 P 
 
 17 
 
 3.75 
 
 
 3 38 
 
 
 
 7.69 
 
 4.64 
 
 6.55 
 
 
 18 
 
 3.83 
 
 
 3 48 
 
 
 
 7.73 
 
 4.66 
 
 7.18 
 
 
 19 
 
 3.92 
 
 
 3.49 
 
 
 
 7.77 
 
 4.68 
 
 7.86 
 
 
 20 
 
 4^04 
 
 4.28 
 
 3.48 
 
 4.63 
 
 5.00 
 
 7.81 
 
 4.71 
 
 8.56 
 
 4.71 
 
 21 
 
 4.16 
 
 4.27 
 
 3.40 
 
 4.67 
 
 5.04 
 
 7.86 
 
 4.73 
 
 8.79 
 
 4.73 
 
 22 
 
 4.31 
 
 4.25 
 
 3.44 
 
 4.71 
 
 5.07 
 
 7.91 
 
 4.74 
 
 9.00 
 
 4.77 
 
 23 
 
 4.46 
 
 4.25 
 
 3.46 
 
 4.75 
 
 5.11 
 
 7.96 
 
 4.71 
 
 9.21 
 
 4.83 
 
 24 
 
 4.63 
 
 4.25 
 
 3.47 
 
 4.80 
 
 5.15 
 
 8.01 
 
 4.66 
 
 9.41 
 
 4.90 
 
 25 
 
 4.81 
 
 4.26 
 
 3.54 
 
 4.86 
 
 5.20 
 
 8.07 
 
 4.59 
 
 9.61 
 
 4.99 
 
 26 
 
 5.00 
 
 4.28 
 
 3.67 
 
 4.92 
 
 5.26 
 
 8.13 
 
 4.52 
 
 9.80 
 
 5.10 
 
 27 
 
 5.23 
 
 4.32 
 
 3.84 
 
 4.99 
 
 5.32 
 
 8.20 
 
 4.47 
 
 10.00 
 
 5.33 
 
 28 
 
 5.44 
 
 4.37 
 
 3.94 
 
 5.06 
 
 5.39 
 
 8.26 
 
 4.46 
 
 10.19 
 
 5.35 
 
 29 
 
 5.69 
 
 4.44 
 
 4.18 
 
 5.14 
 
 5.47 
 
 8.35 
 
 4.50 
 
 10.38 
 
 5.50 
 
 30 
 
 5.95 
 
 4.53 
 
 4.41 
 
 5.24 
 
 5.55 
 
 8.43 
 
 4.60 
 
 10.57 
 
 5.66 
 
 31 
 
 6.20 
 
 4.64 
 
 4.71 
 
 5.34 
 
 5.65 
 
 8.51 
 
 4.73 
 
 10.76 
 
 5.82 
 
 32 
 
 6.48 
 
 4.77 
 
 4.91 
 
 5.45 
 
 5.75 
 
 8.61 
 
 4.89 
 
 10.96 
 
 6.00 
 
 33 
 
 6.77 
 
 4.92 
 
 5.25 
 
 5.57 
 
 5.87 
 
 8.72 
 
 5.05 
 
 11.16 
 
 6.18 
 
 34 
 
 7.06 
 
 5.10 
 
 5.49 
 
 5.70 
 
 6.00 
 
 8.83 
 
 5.20 
 
 11.37 
 
 6.37 
 
 35 
 
 7.38 
 
 5.29 
 
 5.68 
 
 5.85 
 
 6.15 
 
 8.95 
 
 5.33 
 
 11.58 
 
 6.56 
 
 36 
 
 7.71 
 
 5.52 
 
 5.83 
 
 6.01 
 
 6.31 
 
 9.09 
 
 5.45 
 
 11.80 
 
 6.74 
 
 37 
 
 8.04 
 
 5.78 
 
 6.09 
 
 6.19 
 
 6.49 
 
 9.23 
 
 5.56 
 
 12.03 
 
 6.93 
 
 38 
 
 8.38 
 
 6.07 
 
 6.28 
 
 6.39 
 
 6.70 
 
 9.41 
 
 5.70 
 
 12.26 
 
 7.12 
 
 39 
 
 8.77 
 
 6\ 39 
 
 6.62 
 
 6.61 
 
 6.92 
 
 9.59 
 
 5.86 
 
 12.51 
 
 7.31 
 
 40 
 
 9.15 
 
 6.74 
 
 7.02 
 
 6.85 
 
 7.17 
 
 9.79 
 
 6.07 
 
 12.77 
 
 7.49 
 
 41 
 
 9.56 
 
 7.13 
 
 7.47 
 
 7.12 
 
 7.45 
 
 10.01 
 
 6.33 
 
 13.04 
 
 7.68 
 
 42 
 
 10.01 
 
 7.56 
 
 7.91 
 
 7.41 
 
 7.77 
 
 10.25 
 
 6.64 
 
 13.32 
 
 7.86 
 
 43 
 
 10.48 
 
 8.04 
 
 8.38 
 
 7.74 
 
 8.11 
 
 10.52 
 
 6.98 
 
 13.62 
 
 8.05 
 
 44 
 
 10.99 
 
 8.56 
 
 8.80 
 
 8.09 
 
 8.48 
 
 10.83 
 
 7.37 
 
 13.94 
 
 8.25 
 
 45 
 
 11.53 
 
 9.13 
 
 9.20 
 
 8.48 
 
 8.87 
 
 11.16 
 
 7.79 
 
 14.27 
 
 8.46 
 
 46 
 
 12.13 
 
 9.75 
 
 9.59 
 
 8.92 
 
 9.29 
 
 11.56 
 
 8.24 
 
 14.62 
 
 8.69 
 
 47 
 
 12.77 
 
 10.43 
 
 10.06 
 
 9.40 
 
 9.75 
 
 12.00 
 
 8.73 
 
 14.98 
 
 8.94 
 
 48 
 
 13.45 
 
 11.17 
 
 10.55 
 
 9.92 
 
 10.27 
 
 12.51 
 
 9.28 
 
 15.37 
 
 9.22 
 
 49 
 
 14.22 
 
 11.98 
 
 11.03 
 
 10.50 
 
 10.82 
 
 13.11 
 
 9.92 
 
 15.78 
 
 9.55 
 
 50 
 
 15.04 
 
 12.87 
 
 11.50 
 
 11.14 
 
 11.44 
 
 13.78 
 
 10.67 
 
 16.21 
 
 9.92 
 
 51 
 
 15.95 
 
 13.84 
 
 12.08 
 
 11.85 
 
 12.15 
 
 14.54 
 
 11.55 
 
 16.66 
 
 10.35 
 
 52 
 
 16.93 
 
 14.89 
 
 12.54 
 
 12.63 
 
 12.90 
 
 15.39 
 
 12.59 
 
 17.14 
 
 10.86 
 
 53 
 
 17.99 
 
 16.04 
 
 12.99 
 
 13.48 
 
 13.75 
 
 16.33 
 
 13.80 
 
 17.64 
 
 11.44 
 
 54 
 
 19.18 
 
 17.30 
 
 13.58 
 
 14.43 
 
 14.68 
 
 17.40 
 
 15.17 
 
 19.67 
 
 12.13 
 
 55 
 
 20.54 
 
 18.67 
 
 14.28 
 
 15.47 
 
 15.71 
 
 18.57 
 
 16.71 
 
 20.98 
 
 12.92 
 
 56 
 
 21.84 
 
 20.16 
 
 15.15 
 
 16.61 
 
 16.86 
 
 19.89 
 
 18.39 
 
 22.34 
 
 13.94 
 
 57 
 
 23.38 
 
 21.79 
 
 16.16 
 
 17.87 
 
 18.12 
 
 21.34 
 
 20.18 
 
 23.79 
 
 14.90 
 
 58 
 
 25.05 
 
 23.56 
 
 17.36 
 
 19.26 
 
 19.50 
 
 22.94 
 
 22.07 
 
 25.34 
 
 16.12 
 
 59 
 
 26.89 
 
 25.50 
 
 18.63 
 
 20.79 
 
 21.05 
 
 24.72 
 
 24.07 
 
 27.02 
 
 17.50 
 
 60 
 
 28.87 
 
 27.60 
 
 19.94 
 
 22.48 
 
 22.75 
 
 26.69 
 
 26.21 
 
 28.85 
 
 19.08 
 
 61 
 
 31.05 
 
 29.90 
 
 21.47 
 
 24.34 
 
 24.64 
 
 28.89 
 
 28.53 
 
 30.86 
 
 20.86 
 
 62 
 
 33.44 
 
 32.40 
 
 23.31 
 
 26.38 
 
 26.72 
 
 31.29 
 
 31.06 
 
 33.07 
 
 22.86 
 
DEATH RATE PER 1000. Continued. 
 
 
 MALES 
 
 FEMALES 
 
 Age. 
 
 .a 
 1 
 
 a 
 
 A 
 
 j 
 
 L 
 
 ill 
 
 8 
 
 ih 
 
 a 
 
 
 m 
 
 |.| 
 
 S 8 
 
 
 1 
 
 H 
 
 j 
 
 Mg 
 
 g.l 
 
 
 *A 
 
 II 
 
 11 
 
 a 
 
 ll 
 
 c 
 l.i 
 
 1 
 
 "ri 
 
 '% 1 
 
 
 X* 
 
 1" 
 
 < & 
 
 03 
 
 o 
 
 |a 
 
 
 CO 
 
 !* 
 
 i 
 
 63 
 
 36.03 
 
 35.13 
 
 26.07 
 
 28.63 
 
 29.03 
 
 33.94 
 
 33.88 
 
 35.50 
 
 25.09 
 
 64 
 
 38.86 
 
 38.10 
 
 29.37 
 
 31.10 
 
 31.57 
 
 36.87 
 
 37.00 
 
 38.18 
 
 27.58 
 
 65 
 
 41.96 
 
 41.33 
 
 33.40 
 
 33.82 
 
 34.39 
 
 40.13 
 
 40.40 
 
 41.12 
 
 30.34 
 
 66 
 
 45.32 
 
 44.84 
 
 37.23 
 
 36.81 
 
 37.52 
 
 43.71 
 
 43.99 
 
 44.35 
 
 33.38 
 
 67 
 
 49.00 
 
 48.66 
 
 42.13 
 
 40.10 
 
 40.96 
 
 47.65 
 
 47.70 
 
 47.90 
 
 36.72 
 
 68 
 
 52.99 
 
 51.81 
 
 44.67 
 
 43.71 
 
 44.78 
 
 52.00 
 
 51.54 
 
 51.77 
 
 40.37 
 
 69 
 
 57.35 
 
 57.32 
 
 47.31 
 
 47.68 
 
 48.98 
 
 56.76 
 
 55.76 
 
 55.99 
 
 44.35 
 
 70 
 
 62.07 
 
 62.22 
 
 50.06 
 
 52.04 
 
 53.65 
 
 61.99 
 
 60 85 
 
 60.59 
 
 48.67 
 
 71 
 
 67.23 
 
 67.52 
 
 53.38 
 
 56.83 
 
 58.81 
 
 67.67 
 
 67.22 
 
 65 56 
 
 53.34 
 
 72 
 
 72.81 
 
 73.27 
 
 53.04 
 
 62.07 
 
 64.49 
 
 73.73 
 
 75.12 
 
 70.95 
 
 58.36 
 
 73 
 
 78.92 
 
 79.50 
 
 57.82 
 
 67.83 
 
 70.81 
 
 80.18 
 
 84.07 
 
 76.75 
 
 63.76 
 
 74 
 
 85.48 
 
 86.23 
 
 63.14 
 
 74.13 
 
 77.78 
 
 87.03 
 
 93.55 
 
 82.98 
 
 69.55 
 
 75 
 
 92.64 
 
 93.51 
 
 66.33 
 
 81.04 
 
 85.48 
 
 94.37 
 
 102.55 
 
 89.67 
 
 75.72 
 
 76 
 
 100.43 
 
 101.37 
 
 72.15 
 
 88.60 
 
 93.99 
 
 102.31 
 
 110.28 
 
 96.81 
 
 82.30 
 
 77 
 
 108.82 
 
 109.85 
 
 87.34 
 
 96.86 
 
 103.40 
 
 111.06 
 
 115.98 
 
 104.43 
 
 89.29 
 
 78 
 
 117.95 
 
 118.97 
 
 100.16 
 
 105.89 
 
 113.84 
 
 120.83 
 
 120.26 
 
 112.53 
 
 96.70 
 
 79 
 
 127.82 
 
 128.79 
 
 114.31 
 
 115.73 
 
 125.35 
 
 131.73 
 
 123.62 
 
 121.11 
 
 104.54 
 
 80 
 
 138.44 
 
 139.34 
 
 136.31 
 
 126.47 
 
 138.09 
 
 144.47 
 
 127.68 
 
 130.19 
 
 112.82 
 
 81 
 
 150.00 
 
 150.66 
 
 158.20 
 
 138.16 
 
 152.20 
 
 158.61 
 
 133.48 
 
 139.77 
 
 121.55 
 
 82 
 
 162.40 
 
 162.78 
 
 172.21 
 
 150.87 
 
 167.77 
 
 174.30 
 
 142.65 
 
 149.85 
 
 130.73 
 
 83 
 
 175.73 
 
 175.75 
 
 187.25 
 
 164.68 
 
 184.96 
 
 191.56 
 
 155.47 
 
 160.44 
 
 140.38 
 
 84 
 
 190.14 
 
 189.60 
 
 202.98 
 
 179.64 
 
 204.04 
 
 211.36 
 
 172.11 
 
 171.53 
 
 150.50 
 
 85 
 
 205.69 
 
 204.35 
 
 212.21 
 
 195.83 
 
 225.08 
 
 235.55 
 
 191.00 
 
 183.12 
 
 161.12 
 
 86 
 
 222.13 
 
 220.05 
 
 219.76 
 
 213.32 
 
 248.35 
 
 265.68 
 
 211.55 
 
 195.20 
 
 172.24 
 
 87 
 
 240.01 
 
 236.72 
 
 231.99 
 
 232.17 
 
 274.15 
 
 303.02 
 
 232.48 
 
 207.77 
 
 183.87 
 
 88 
 
 258.87 
 
 254.38 
 
 246.61 
 
 252.43 
 
 302.57 
 
 346.69 
 
 253.40 
 
 220.81 
 
 196.04 
 
 89 
 
 278.81 
 
 273.05 
 
 262.89 
 
 274.16 
 
 334.18 
 
 395.86 
 
 273.76 
 
 234.33 
 
 208.76 
 
 90 
 
 300.75 
 
 292.73 
 
 283.02 
 
 297.39 
 
 368.79 
 
 454.55 
 
 294.17 
 
 248.30 
 
 222.04 
 
 91 
 
 322.58 
 
 313.43 
 
 312.58 
 
 322.15 
 
 407.67 
 
 532.47 
 
 314.72 
 
 262.71 
 
 235.90 
 
 92 
 
 347.88 
 
 335.14 
 
 352.94 
 
 348.45 
 
 449.75 
 
 634.26 
 
 335.96 
 
 277.54 
 
 250.37 
 
 93 
 
 371.20 
 
 357.85 
 
 406.93 
 
 376.27 
 
 498.45 
 
 734.18 
 
 357.74 
 
 292.78 
 
 265.46 
 
 94 
 
 400.00 
 
 381.52 
 
 484.19 
 
 405.58 
 
 549.38 
 
 857.14 
 
 380.02 
 
 308.40 
 
 281.18 
 
 95 
 
 424.73 
 
 406.12 
 
 608.49 
 
 436.31 
 
 602.74 
 
 1000.00 
 
 404.33 
 
 324.37 
 
 297.57 
 
 96 
 
 457.94 
 
 431.60 
 
 867 . 47 
 
 468.37 
 
 655.17 
 
 
 431.47 
 
 340.69 
 
 314.63 
 
 97 
 
 482 . 76 
 
 457.88 
 
 1000.00 
 
 501.61 
 
 700.00 
 
 
 462.18 
 
 357.31 
 
 332.38 
 
 98 
 
 500 ! 00 
 
 484^88 
 
 
 535.87 
 
 1000.00 
 
 
 495.12 
 
 374.21 
 
 350.83 
 
 99 
 
 533.33 
 
 512.51 
 
 
 570 93 
 
 
 
 531.29 
 
 391.36 
 
 369.99 
 
 100 
 
 571.43 
 
 540.64 
 
 
 
 606.53 
 
 
 
 581.73 
 
 408.74 
 
 389.87 
 
 101 
 
 666 . 67 
 
 
 
 642 38 
 
 
 
 666.67 
 
 426.30 
 
 
 102 
 
 1000.00 
 
 
 
 1000.00 
 
 
 
 1000.00 
 
 444.02 
 
 
 103 
 
 
 
 
 
 
 
 
 461.86 
 
 
 104 
 
 
 
 
 
 
 
 
 479.79 
 
 
 105 
 
 
 
 
 
 
 
 
 497.78 
 
 
 106 
 
 
 
 
 
 
 
 
 515.78 
 
 
 107 
 
 
 
 
 
 
 
 
 533.76 
 
 
 108 
 
 
 
 
 
 
 
 
 
 551.69 
 
 
147 
 
 APPLICATION OF ACTUARIAL PRINCIPLES. 
 
 Within the last ten years the fraternal beneficiary societies generally have followed 
 actuarial advice in making readjustments, where the management could control the 
 situation. Many times expert assistance was received by the executives and rejected 
 by the representatives of the members. Sometimes officials have gotten "cold feet," in 
 view of possible defeat for reelection and forgot the actuary and his advice. 
 
 But the general situation is very encouraging, and it is a personal satisfaction to 
 testify to the earnest solicitude of fraternal officials for solvency and permanency of 
 their societies. 
 
 To this end the employment of actuaries is the rule, rather than the exception, and 
 it is pleasant to note that where there was one available ten years ago, now there 
 are a score or more offering their services as experts. 
 
 If the rate of mortality were uniform at all periods of life, fraternal society finances 
 would be a very simple matter, and the original equal levy plan would suffice for the 
 perpetuation of the organizations. 
 
 However, the rate of mortality increases with the age of the individual, and there- 
 fore, to have a level contribution rate, with a uniform number of assessments each 
 year, it is necessary to charge more than sufficient to meet the current death claims in 
 the early years and accumulate the excess of contributions against the period when the 
 annual claims will, by reason of increasing age, exceed the annual contribution. 
 
 Tq fix the contribution at a rate which will be adequate to provide for future 
 claims matured from year to year to the end of the longest life, without making the 
 rate prohibitive, it is necessary to take advantage of interest increment. 
 
 In Exhibit i, demonstrating the method of computing level contribution rates, it 
 was shown that $92,215,000 of claims, maturing year to year from entry age 35 to the 
 limiting age of 99, could be provided for with a present sum at age 35 of $27,818,663.44 
 improved at 4 per cent interest compounded annually. In other words, the single con- 
 tribution as a principal sum would provide for $27,818,663.44 and the interest would 
 provide for $64,396,336.56 of the total of $92,215,000 in claims more than two-thirds 
 paid from interest earning on the principal, after paying the yearly instalments of 
 claims. 
 
 As elsewhere shown, without the aid of interest, it would require an average annual 
 contribution of $29.11, while with the 4 per cent interest increment, the annual level 
 contribution is $16.62 at age of entry, 35. 
 
 The effect of interest is not so marked in connection with the annual as with 
 the single premium, because of the larger principal to be improved in the latter case. 
 
 The fact to be impressed is that, without the interest factor level contribution rates 
 would be unnecessarily heavy. To introduce this factor involves a second complica- 
 tion to that of dealing with the increasing cost of insurance by virtue of increasing 
 age. 
 
 It is a common sense observation to assert that it requires some one especially 
 qualified to compute and apply adequate and satisfactory rates of contribution. 
 
 I have repeatedly remarked that before there can be any application of actuarial 
 principles, and before computations can be commenced, there must be an estimate 
 of the amount of yearly instalments of claims that will in the future be made by the 
 members upon the funds. 
 
 The only basis for such an estimate is past experience, either of the society in 
 question or of other societies similarly situated, or similarly constituted to the partic- 
 ular society for which a scale of rates is desired. 
 
148 
 
 This diagram is presented for 
 the lesson that may be learned 
 from it. 
 
 It suited the purpose for 
 which this table was con- 
 structed to reproduce the actual 
 experience, however erratic, and 
 no criticism is intended when I 
 say that it would be unsuited as 
 a basis for the estimate of 
 future claims, or for the com- 
 putation of level contribution 
 rates to provide for future 
 claims. 
 
 This would be a case where 
 the experience of the particular 
 society would not yield data for 
 a satisfactory Mortality Table, 
 in its entirety, and when it 
 would be advisable .to employ 
 some standard table (such as 
 the National Fraternal Con- 
 gress Table in this case), with an 
 assumed mortality approximat- 
 ing actual experience at the ages 
 where there were insufficient ex- 
 posures to give reliable results. 
 
GRADUATION 
 
 This diagram is given 
 as a second illustration of 
 the Mortality Curve re- 
 sulting from the gradu- 
 ation of irregular death 
 ratios. The original data 
 was taken from the ex- 
 perience of a society which 
 had comparatively few 
 exposures and deaths 
 above the age of 65. 
 The dotted line rep- 
 resents the Mortality 
 Curve projected upon 
 other experience. A 
 twenty-one term sum- 
 mation formula was em- 
 ployed for the graduation. 
 
 IB 10 *li* i M 30 M. * 35 3 40 4i 44 4 46 SO 5Z 54 56 58 60 6Z ^4 W 68 70 72 74 76 78 0O fll 84 3d fl* SO 
 
150 
 
 THE MORTALITY TABLE. 
 
 The construction of a mortality table from original data should always be en- 
 trusted to a competent actuary. 
 
 It is not the present purpose to go into detail concerning the preparation of the 
 data and their subsequent treatment. 
 
 In 1906 I made a report to the Committee on Statistics and Good of the Orders 
 of the National Fraternal Congress, and I have reproduced the Committee's report 
 to the Congress, which contains eight separate mortality tables, four of them unad- 
 justed and four graded. The tests of the graduations are also given. 
 
 It would fill a book to enter into an explanation of the proper method of transcrib- 
 ing the data from the records, and of their treatment before the unadjusted tables 
 can be secured, and the graduation so as to correctly reflect the actual mortality ex- 
 perience. 
 
 I content myself with a reference to the report to the National Fraternal Congress 
 in 1906, and with a diagram showing the mortality curves of the American Experience 
 and National Fraternal Congress Mortality Tables, together with a graphic representa- 
 tion of the unadjusted and adjusted Mortality Tables, according to the experience of 
 the Pacific Jurisdiction of the Woodmen of the World. 
 
 I had nothing to do with the graduation of the unadjusted ratios, and present the 
 diagram because of the unusual character of the mortality curve. Ordinarily a reliable 
 experience would produce a curve similar to that of the American Experience Table 
 or the National Fraternal Congress Table. 
 
 The purpose of a graduation is to smooth out the irregularities of the original 
 ratios, and to do this the line representing the graduation should cut the irregular 
 line, representing the unadjusted ratios, so that equal parts should be presented above 
 and below the graphically illustrated mortality curve. The graduation of the W. O. 
 W. Pacific Jurisdiction experience appears to follow this rule, and yet the falling 
 away from the Congress Table after 1 age 64 would indicate a paucity of exposures 
 and an unreliable experience at the advanced ages. The violent fluctuations from very 
 high to very low death rates at ages 66 to 70 bear out the assumption of unreliability 
 of the experience at the advanced ages. 
 
 EXPLANATION OF COMMUTATION COLUMNS. 
 
 The following comprehensive explanation was prepared by Dr. George E. West, for 
 the 1902 edition of "Life Insurance Premiums How Computed, Tested, and Valued." 
 I reproduce it in memory of a dear friend, and for the reason that it is unequalled as a 
 brief and lucid exposition of a technical subject. Later on I attempt to give a more 
 extended, if not a plainer, discussion of commutation columns and the arithmetical pro- 
 cess of computing contribution rates: 
 
 The methods of obtaining the data from which a mortality table is constructed 
 are so well understood that a description thereof would probably be superfluous. 
 The actual graduation of a table is too technical a process for popular exposition. 
 It may be best, therefore, to take the table for granted, and to confine our attention 
 to a description of its main features, and an explanation of a few of its principal uses. 
 It is advisable to premise that a mortality table does not represent any society past, 
 present, or future for which reason averages of the ratios at various ages are of no 
 practical utility. What it does represent is the average mortality experience of a 
 certain number of individuals taken at the initial age and kept under observation 
 during their respective lives. Any age subsequent to the first may be made the 
 initial age by cutting out the preceding portion of the table. 
 
 The first column of the table contains in serial order the years of age from the 
 earliest selected to the assumed limit of human life. The second column, designated 
 
151 
 
 by the letter "1," the initial of the word "living," contains the survivors at each 
 attained age of the original entrants, the number of which latter, known as the radix 
 of the table, being placed opposite the initial age. The survivors, at any particular 
 age, are indicated by the column symbol with the appropriate suffix; thus, 1 20 , Iso, 
 ho, express the numbers surviving at ages 20, 30, and 40, respectively. When a 
 general symbol is desired, it is customary to employ l x , in which x may have every 
 value successively in the age column. 
 
 Next to the "1" is usually placed the "d" column, "d" being the initial letter of 
 the word "dying." As before, suffixes are employed to secure definiteness; thus, 
 d 20 indicates the tabular number dying between ages 20 and 21. The general symbol 
 is d x . It is obvious that 
 
 I2o-d 20 =l 2 i, whence d 2 o=l2o Ui. Generally, d x =l x -l x+1 . 
 
 The initial letter of the word "probability," "p," heads the column showing the 
 probability of living at least one year at each age. The probability of surviving from 
 age 20 to age 21 is expressed by p 2 o; the general symbol is p x . As of l x persons who 
 attain age x, l x+ i will survive to age x + 1, it is evident that 
 
 The probability of dying within a year at any age is indicated by the letter "q," 
 the initial of the word "quotient," suffixes being employed for the usual purpose. 
 Of l x persons living at age x, d x die within a year; therefore 
 
 This relation may be otherwise obtained. Certainty is designated by 1, and it is 
 certain that a person will either survive or perish during the year; hence 
 
 Px+q x = l, or q x = l p x , as before. 
 
 The respective probabilities of surviving and dying during the second year are de- 
 noted by the symbols 2 p x and 2 q x , and, generally, during the nth year, by n p x and n q. 
 It is evident that 
 
 2px=px Px+l, 
 
 that apx =2px px+2 =PX Px+i p*+2, 
 
 and, generally, that n px = p x Px+i .......... Px+n-i- 
 
 Similarly, 2 q x = px q x +i, sqx = 2px qx+2 = px Px+i qx+2, 
 
 and, generally, n qx=px Px+i ---- Px+n-2 qx+n-i. 
 
 Therefore, npx+nqx = (px+n-l-f qx+n-1 =l)(px Px+l ..... Px+n-2) =n-lp x . 
 
 The present value of a dollar, due one year hence, is denoted by the letter "v," 
 the initial of the word "value;" v 2 represents the value of a dollar due two years 
 hence, and, generally, v* symbolizes the value of a dollar due x years hence. 
 
 In insurance calculations it is commonly assumed that premiums are payable 
 annually in advance, and claims at the end of the year. Starting at age x, each 
 member exposes the society during the first year to a risk of q x . As claims are not 
 
 payable till the end of the year, the value of the risk at the beginning is vq x =^ T ^ : 
 
 lx 
 
 During the second year the risk is 2 q x , and its value is 
 
 i x , . 
 
 lx lx+1 1 X 
 
 Similarly, the risk during the nth year is n qx, and its value is 
 
 The value of the combined risk for any number of years is, therefore 
 vq I+ v> 2 q I+ v 3 q* + ..... +v .q. = V<i ' +V ' d ' 
 
152 
 
 If in this formula n is given such a value that x+n 1 becomes the last age in the 
 mortality table, the complete expression gives the value of an insurance of one dollar 
 for the whole of life, the symbol for which is A x . For convenience only, it is customary 
 to multiply both numerator and denominator of the fraction by v x , so that we have 
 
 From inspection, it is evident that every term in the numerator of the second mem- 
 ber of this equation is of the same form that is, by giving x successive values from 
 x to x+n 1, we get the successive terms. If then, we write v x+ l d x =C x , v x+2 d x+1 
 will equal C x +i, etc., whence 
 
 A 
 
 C x +C x+ i+C x+ 2 + ' ' ' + C x+n -l 
 
 If, now, we sum C x , beginning at the highest age, and write the result, M x , the equa- 
 tion becomes A x = * . A x is the net single premium for a whole life assurance of 
 
 one dollar, issued at age x. 
 
 As annual premiums are payable in advance, the first is certain and immediate, 
 and hence has the full value, viz., P x . The probability that the second will be paid 
 is p x , and the time of payment is one year hence; therefore, the value of the premium 
 is 
 
 The value of the third premium is 
 
 Px v 2 2 px = PxV 2 ^ 1 
 
 Similarly, the value of the nth premium is 
 
 The value of the entire series of premiums is, obviously 
 
 p 
 
 Multiplying both numerator and denominator by v x the expression becomes 
 
 P V X lx+V X+1 l x+1 +V*+n x+2 + -- ' +V* +n " 1 lx+n-1 
 
 vM x 
 
 If n be given such a value as to make x+n 1 the last age in the mortality table, the 
 formula expresses the combined value of the premiums payable during life. From 
 an inspection of the numerator of the fraction, it is evident that the successive terms 
 are alike as to form, so that each can be formed from the preceding one by an increase 
 of one in the value of x. If then, we write v x l x = D x , the formula becomes 
 
 p x x+ x+ +D x+n -i 
 
 tx - - 7^ - 
 
 Dx 
 
 Summing D x , beginning at the highest age, and writing the result as N x , the com- 
 bined value of the premiums may be expressed as 
 
 N* 
 
This must be equal to the value of the assurance which has already been found to be 
 
 ^N. M x 
 
 M x M x ... . . 
 
 r- or -p . Writing 
 V x I x L> x 
 
 N 
 
 calculation of a*. In other words, N x is the summation of D x+ i, so that a*=r?, whereas 
 
 Lf x 
 
 it follows that 
 
 As P x is payable yearly during life, it is similar to a life annuity, of which the first 
 
 N x 
 payment is due. Therefore, the value of a life annuity due of P x is PX-J^-, whence 
 
 N x 
 
 the value of a like annuity of one dollar is equal to ^. This value is denoted by a x . 
 
 Immediately after the first payment of an annuity due, it becomes an ordinary or 
 immediate annuity, of which the first payment will be due a year hence. Expressing 
 this value by a x , it follows that 
 
 a x =a x -l. 
 
 It is customary in England to arrange the commutation columns so as to facilitate the 
 calculation of a*. In other words, N x i; 
 
 by the American form of table, a x = x ^ +1 - 
 
 i-^x 
 
 The calculation of varying annuities, assurances, and premiums is much facilitated 
 by summations of the M and N columns, producing the R and S columns, respectively. 
 Of the six columns heretofore described, the usefulness is by no means equal. 
 Although C is the basis of M, it is almost never directly involved in computations, 
 and is, consequently, seldom tabulated. On the other hand, the use of S is limited 
 to a class of obligations with which fraternal orders are not concerned. Orders which 
 scale certificates for a number of years are about the only ones requiring the R column. 
 There remain, then, three columns, D, N, and M, which may be regarded as indis- 
 pensable. 
 
 As already shown 
 
 d x =l x -lx+i, 
 
 whence v** l d x =v x+1 (l x l x +i) = v. v x l x v x+1 lx +i , 
 
 or C x =vD x D x+ i. 
 
 Similarly C x +i =vD x+1 D x+2 , etc. 
 
 Hence, by summation 
 
 M x =vN x N x+ i. 
 
 Summing once more, it is obvious that 
 
 Rx=vS x -S x+ i. 
 These formulas are useful for verification purposes. 
 
 THE INSURANCE CONTRACT. 
 
 All of the preceding matter is of a general character. At length I have told about 
 the history of different kinds of Insurance Organizations, and of the legislation enacted 
 for their regulation, and of what men in their management have said about them and 
 their objects, and of the immense sums represented by their promises to pay benefits 
 upon the occurrence of stated events. 
 
 However, in the last analysis the question of insurance is narrowed to the con- 
 tract between the corporation and the individual. 
 
 The billions of dollars involved in the promises to pay benefits are made up of 
 millions of individual undertakings, and to have a comprehensive idea of the whole 
 we must be informed concerning the individual agreement. 
 
154 
 
 The Insurance Contracts of Companies, of Associations, and of Societies, with 
 very few exceptions, have developed into an affair of business, whereby the party of 
 the first part, known as the insurer, promises to pay certain sums upon the hap- 
 pening of a designated event, such as death or disability, or upon the termination of a 
 stated period or on the attaining of a given age or prior to termination by expiry. 
 The party of the second part, known as the insured, in consideration of the promised 
 benefit, agrees to make periodical contributions during the term of insurance, or for 
 a limited period, or until the maturty of the contract by death, disability, or otherwise, 
 or until its expiration. 
 
 In the contract of the life company the amount of the benefit and the amount of 
 the contribution are definitely stated. 
 
 In the latest form of contract of the Fraternal Beneficiary Society the amount of 
 the benefit is definitely stated, but in the great majority of certificates now outstanding 
 the maximum amount only is definitely fixed. In all cases the contribution is subject 
 to change. 
 
 The relations between the parties to the contracts, or policies, issued by the life 
 companies, have been established by law and by judicial decisions. The company 
 must pay the amount promised when it matures under the provisions of the contract, 
 and it must account to the policy-holder for unused contributions (with increment) 
 should he decide to withdraw from the agreement before maturity of the promise. 
 
 The relations between the parties to the Fraternal Beneficiary Society contract are 
 unsettled. Generally the statement is correct that the society must pay the amount 
 promised when it matures. In many instances the amount to be paid is limited to 
 the proceeds of one assessment. In only a few cases must the society account to the 
 withdrawing member for any excess of contributions over cost of protection. 
 
 The contract of the life insurance company is scientifically constructed so that 
 upon execution, the promise by the first party to pay benefit has a present worth 
 equal to the promise by the second party to make periodical contributions. 
 
 The same equitable conditions now obtain in the contracts of many Fraternal 
 Beneficiary Societies; but under the majority of outstanding certificates the original 
 promise was made and the contract entered into without any appreciation of the 
 necessity and without any idea of the equity of requiring contributions with a 
 present value equivalent to that of the benefit promised. 
 
 This condition is due to the fact that the Fraternal Society contract was not con- 
 sidered as an affair of business. 
 
 The conception of the transaction was that the members would always make vol- 
 untary contributions to pay death benefits, and that the certificates held by themselves 
 were not "Insurance Contracts," but merely evidences of membership and fraternal 
 cooperation. 
 
 The same persons, who carried polices in a life company and held certificates in a 
 fraternal beneficiary society, would accept the former on a business basis of making 
 adequate contributions in consideration of the benefits promised by the life company, 
 and ignore entirely a similar obligation to the fraternal society, notwithstanding the 
 expectation of equal money returns in the way of insurance benefits. 
 
 From what has hereinbefore been given concerning the history of Fraternal Bene- 
 ficiary Societies, it is not strange that the first development of the certificate of mem- 
 bership into a business contract was on the benefit side. 
 
 The members very naturally preferred to maintain the voluntary principle as 
 applied to contributions because it directly affected themselves, and they desired to 
 maintain volition unrestrained by mathematical formula or business demands. 
 
1 55 
 
 Since the benefits were intended for the relief or the support of themselves or 
 their dependants, and since they realized the necessity for certainty in such relief or 
 support, very naturally they hesitated not at all in asserting a vested right in and to 
 the promised benefits. 
 
 This development changed the view of members to look upon their certificates as 
 Contracts and to depend upon their enforcement for relief to their dependants or to 
 themselves. 
 
 The members of the Societies have not failed to make demands for benefits, but 
 they have neither taken the trouble nor the time to carefully consider the relation of 
 these demands to the contributions required from them to make possible the pay- 
 ment of the benefits. 
 
 After many years of study and practical experience in connection with the affairs 
 of Fraternal Beneficiary Societies, it is my conclusion that indifference of members 
 to the importance of perpetuating these great provident institutions is the reason for 
 their tendency toward paying as little and getting as much as possible in their dealing 
 with the Societies. 
 
 They strenuously oppose the proposition that the requirement for stated and 
 adequate contributions is a contractual business obligation. 
 
 Nevertheless, valuation laws and business necessities are impressing and bringing 
 home the fact that the contribution side to the Fraternal Beneficiary Society contract 
 is a business affair, and the party of the second part, the insured, must be held ac- 
 countable as having assumed a business obligation. 
 
 EQUIVALENT PROMISES. 
 
 The question is, What constitutes a safe and equitable insurance contract? 
 
 Its equity consists in starting the insurer and insured on even terms, without dis- 
 crimination against or favor to members, when the value of the promised benefit is no 
 more nor less than the' value of the promised contributions. 
 
 Its safety consists in collecting an income and conserving an accumulation sufficient 
 to provide for the payment of promised benefits as they mature into claims. 
 
 The Fraternal Beneficiary Society, the mutual, cooperative association of indi- 
 viduals, has no capital stock, and therefore its income and accumulation must be 
 derived from the contributions of its members treating the interest earned on accu- 
 mulation as an incident of excess contributions. 
 
 When a person joins such an association, the consideration of its promise to pay a 
 benefit is the promise of the individual to make contributions. 
 
 It is obvious that the value of the promised contributions, at the inception of the 
 contract, must be equal to the value of the promised benefits, otherwise the associa- 
 tion could never have sufficient income to discharge its assumed liabilities having no 
 primary resources other than the contributions from its members. 
 
 If the association is to be a successful insurance organization, it must enter into 
 contract with each member, from first to last, upon a condition of equivalence in 
 values of benefits and contributions. The failure to exact this conditon has caused 
 all the trouble in regard to the fulfillment of promises, and has brought about the 
 necessity for readjustments. 
 
 The reason for the failure to demand contributions equal in value to that of the 
 benefits promised was the inability of the organizers of Fraternal Beneficiary Societies 
 to determine the proper rates of contribution. 
 
 It was easy enough to state the amount of benefit to be granted. 
 
156 
 
 To know the contribution that would certainly provide for the promised benefit 
 required information not possessed by the organizers, and hence they adopted the 
 method of fixing an arbitrary rate of assessment. 
 
 ASSESSMENTS-AS-NEEDEP. 
 
 This device of levying assessments-as-needed avoided the necessity of establishing, 
 in advance, any equivalent relation between benefits and contributions. The latter 
 were left to be determined by the claims for benefits. 
 
 Well-known and repeated experiences have thoroughly established the fallacy of 
 the assessment-as-needed plan of contribution. It requires from ten to thirty years 
 to demonstrate its fallacy by actual experience, and for that reason it has been a 
 deceptive plan which has led many organizations to ruin. 
 
 Members satisfy themselves with the plausible argument that the plan has sufficed 
 to provide for claims during one period of twenty years. They ignore the fact that 
 age distribution and death rates are very different in the second from the first period, 
 and other conditions are so different that the plan which will serve in the first will not 
 answer in the second. 
 
 But it is not here necessary to discuss discredited plans. Xo valuation is applicable 
 to the assessment-as-needed plan of contribution. The fact that the representatives of 
 American Fraternal Societies have joined in an endorsement of the proposed Uniform 
 Bill, which demands general valuation, placed the official stamp of disapproval and 
 discredit upon that plan. The officials of societies still employing it are emphatic and 
 vigorous in condemning it as a fallacy and a worn-out expedient. 
 
 The assessment-as-needed plan must not be confused with that of "uniform con- 
 tributions for all ages of entry" as practiced by English Friendly Societies. 
 
 METHOD OF COMPUTING RATES. 
 
 It is not in criticism of societies that reference is made to their crude method of 
 levying contributions. They were intent upon doing good for their fellowmen, and 
 their object was to give them the benefit of insurance protection at actual cost, without 
 any element of profit. To accomplish this, they believed it necessary to steer as far 
 as possible from business methods. Whatever the defects in their plan of contribu- 
 tions, they established organizations which have paid to widows and orphans hundreds 
 of millions of dollars. 
 
 The purpose of those now concerned about the future solvency of these societies 
 is to correct past errors and thus assure the payment of the 8,000 millions of dollars 
 in outstanding promises to pay benefits, and to enable them to continue indefinitely the 
 undertaking of billons of promises with certainty of performance. 
 
 Getting down to the undisputed facts in the case, if 8,000 millions of dollars of 
 present promised benefits are to be paid, then 8,coo millions - of dollars must be 
 raised and made ready for the benefit claims as they are presented for payment. 
 Likewise the billions of future protection must be provided for by billions in con- 
 tributions and interest earnings. 
 
 In other words, the members themselves must provide for their beneficiaries, and 
 the life insurance device is not to relieve them from that responsibility, but merely 
 to distribute and equalize the total burden through cooperative effort. 
 
157 
 
 LAW OF MORTALITY. 
 
 Life insurance is not a gambling scheme, but a tried and tested business arrange- 
 ment based upon contingencies which can be reduced by scientific treatment to mathe- 
 matical accuracy. 
 
 These contingencies are the probabilities of living and dying. 
 
 The living make the contributions. The dying mature the claims. 
 
 The contributions provide for the claims. 
 
 Obviously, the aggregate contributions (and increment) must equal the aggregate 
 claims. 
 
 The original promoters of Fraternal Beneficiary Societies understood these last 
 four propositions, when they adopted the device of levying assessments as needed. 
 Unfortunately they neglected to reckon with the inexorable Law of Mortality, and 
 this neglect condemned their plan to failure. 
 
 All of us, even children, understand the effect of the Law of Mortality, though 
 few know anything about its application to the life insurance business. 
 
 For example, any one would answer that more persons at age 60 than at age 30 
 would die within one year out of 1,000 persons at each age. 
 
 Any one would answer that there is a limit to life that men cannot live always. 
 
 These are the effects of the Law of Mortality, namely : 
 
 1. More members, amongst a given number, die at advanced than at younger ages. 
 
 2. There is a limit to human life. 
 
 Life insurance is the business of accepting risks on human life, with the promise 
 to pay benefits in the event of death. 
 
 To properly conduct the business of life insurance requires a knowledge of the 
 duration of human life and of the probable number of deaths to be expected every 
 month or every year. 
 
 The necessity for this knowledge is to enable the insurance manager to levy 
 contributions sufficient to provide for the claims expected to mature by death. 
 
 The practical way to gain this knowledge is to make investigation of some 
 mortality experience. 
 
 DEATH RATE. 
 
 Numerous investigations have been made, and it has been found that, on the 
 average, about five persons die within one year, taking 1,000 at age 20. About seven 
 die out of every 1,000 in one year from age 40 to 41. At 50 about eleven, at 60 
 about twenty-three, at 70 about fifty-four, at 80 about one hundred and thirty-eight, 
 and at 85 about two hundred and twenty-five die out of each 1,000 within one year. 
 Ultimately every person must die. 
 
 When applied to life insurance, these vital statistics mean that if a society insured 
 1,000 persons at age 20 it could expect, within one year, to pay five death claims. If 
 there were 1,000 insured at age 40, seven death c'aims could be expected within one 
 year. At age 50, eleven claims. At 60, twenty-three claims. At 70, fifty-four claims. 
 At 80, one hundred thirty-eight claims. At 85, two hundred twenty-five claims. At age 
 99 (if 1,000 arrive at that age), one thousand claims might be expected within the 
 year. So few would survive a century of life that all might be expected to d'ie 
 before attaining 100 years of age. 
 
 With a knowledge of the probable deaths to occur within a given period out of a 
 given number exposed to death, mortality ratios can be determined by dividing the 
 number of deaths by the number exposed to death. 
 
158 
 
 If 1,000 are exposed and five die, the mortality ratio, or death rate, is .005. If 
 fifty-four die out of 1,000, the death rate is .054. 
 
 These ratios ace known as "death rates," or "probabilities of dying." 
 
 The probability of a man dying within one year at age 20 is expressed by the 
 decimal .005 and at age 70 by .054 and at age 85 by .225. These decimals are the 
 quotients of the number expected to die divided by the number exposed to death, 
 according to the National Fraternal Congress Table of Mortality. 
 
 If an investigation be made of the mortality experience of any particular society, 
 the actual number of deaths occurring within one year can be definitely ascertained, 
 and by simple division the actual death rates or probabilities of dying can be de- 
 termined. 
 
 For example, a certain Society, for one year had an average membership of 
 2 ,939 at age 20, and during the year there were 14 deaths. Dividing 14 by 2,939 the 
 mortality ratio of .00476 is obtained. 
 
 That is to say, the Society experienced for the year at age 20 a death rate of 
 4.76 per 1,000 members exposed to death. 
 
 The probability of dying of one of the 2,939 members was .00476. 
 
 At age 70 it had 410 members exposed, amongst whom 25 died, making a death 
 rate of nearly 61 per 1,000. The probability of dying of one of the 410 members was 
 .060975- 
 
 If the Society mentioned had insured each of the 2.939 members at age 20 for 
 $1,000, and 14 of them died in one year, obviously the Society would have been 
 called upon to pay $14,000. To be able to discharge its liability it would have been 
 necessary to have collected $4.76 from each of the 2,939 members. 
 
 If the Society had insured each of the 410 members at age 70 for $T,OOO, and 25 
 of them died in one year, there would have been 25 death claims amounting to 
 $25,000, requiring $60.98 in contributions from each of them to provide for these 
 claims. 
 
 In the case of the 2,939 members, each insured for $1,000 the total insurance at 
 risk would be $2,939,000, and there being $14,000 of claims, the latter amount would 
 represent one year's cost to the Society in assuming liability for $2,939,000 of protec 
 tion on members at age 20. 
 
 In the case of the 410 members at age 70, there would be only $410,000 insurance 
 at risk; but the year's cost to the Society would be $25,000. 
 
 The $14,000 and $25,000 likewise would represent the value of the benefits prom- 
 ised to members at ages 20 and 70, while the $14,000 and $25,000 contributed by the 
 members would represent the value of the contributions. 
 
 With less than one-seventh of the protection the amount of the claims incurred 
 was nearly double for the members at age 70, compared with those at 20. 
 
 On the average, it costs a society from ten to tweVe times more to insure members 
 for one year at age 70 than at age 20. 
 
 The insurance business is like any other kind of business ; it will become insolvent 
 if cost is not obtained for what is sold. 
 
 Unless the Society received at least $4.76 from each of the 2,939 members at age 
 20, it could not pay $14,000 in claims. Similarly, $60.98 was the necessary contribution 
 from each of the 410 members to enable the Society to pay $25,000 in claims incurred 
 on account of the $410,000 of protection granted to them for one year. 
 
 DISTRIBUTION OF COSTS. 
 
 In other words, the Society must obtain contributions from its members sufficien 
 to provide for the cost of protection granted. 
 
159 
 
 Of course, this fact is now, and always has been, known to managers of Fraternal 
 Beneficiary Societies. 
 
 The trouble with them has been in the distribution of the costs. 
 For example, some of them made an equal levy upon all members regardless of 
 age. They would throw together the 2,939 members at 20 and the 410 at 70, making 
 a total of 3-349 members. 
 
 Likewise they would make one sum of the $14,000 and the $25,000 of claims, or a 
 total of $39,000, and then levy on each of the 3,349 members annual assessments 
 amounting to $11.65 per $1,000. 
 
 By the equal levy method the distribution of the total costs of $39,000 would 
 compel the 2,939 members to pay $34,223.50 and the 410 members to pay $4,776.50; 
 notwithstanding the fact that the Society had incurred claims of $14,000 on account 
 of the 2,939 members at age 20 and of $25,000 on account of the 410 at age 70. 
 
 The Society as a corporation is concerned only in obtaining contributions sufficient 
 to provide for total claims incurred, and the equal levy plan is all right for that 
 purpose, so long as it can be worked successfully. 
 
 But under that plan the young and the old are combined to the great disadvantage 
 of the former. 
 
 Standing by themselves, the 2,939 would contribute a total of $14,000. Combined 
 with only 410 members at age 70, they would be compeled to contribute $34,223.50. 
 
 In the course of operation members continually advance in age, and if there were 
 1,000 members at age 70, and only 1,200 at age 20, then, at the above ratios, there 
 would be 6 deaths amongst the 1,200 and 61 amongst the 1,000. 
 
 The 1,000 members at 70 would impose $61,000 of claims, and the 1,200 at 20 
 would cause $6,000 of claims. Combined, there would be a total of $67,000 in claims. 
 If the 1,000 and the 1,200 members were to pay equally, they would be called upon 
 to contribute in the year $30.46 each. 
 
 The young men at 20 might willingly submit to an annual contribution of $11.65 
 (less than $1.00 per month), but few of them would pay $30.46 (more than $2.50 per 
 month) for $1,000 of protection. 
 
 The equal levy plan and the assessnrent-as-needed plan of co'itribution are alike 
 defective in that they fail to distribute equally and equitably the costs of protection. 
 These plans discriminate against the younger members. 
 
 In the course of practical operation there are many members at advanced ages, 
 and to favor them by exacting excessive contributions from the members at the 
 younger ages, imposes so much of a burden upon the latter that they withdraw from 
 the Society, and others cannot be induced to take their places, and the plan becomes a 
 failure. 
 
 This has been the final result where the equal levy or assessment-as-needed plan 
 has been continued long enough. 
 
 From this general statement may be excepted American and British Societies where 
 benefits are small and the fraternal, social, or cooperative features are strong. Also 
 those Societies with small benefits and where the maximum age of admission is 
 low and uniform contributions are maintained by accumulation from excess con- 
 tributions. 
 
 CONTRIBUTION AND COST. 
 
 For permanent success, the contributions exacted must be proportionate to the 
 cost of the protection granted. 
 
 Where the yearly cost to the Society on $2,939,000 of insurance is $14,000, the 
 
160 
 
 proper contribution for the one year for each member per $1,000 of protection would 
 be $4.76. 
 
 Where the yearly cost on $410,000 of insurance is $25,000, the proper and equitable 
 contribution is $60.98 per $1,000 for the one year of protection. 
 
 The contribution by the member is simply the purchase price, and the latter is 
 always determined by the cost of production, of manufacture, or of protection, as the 
 case may be in life insurance it is the cost of protection. 
 
 To demand a contribution per $1,000 from a member at age 70, which is ten or 
 twelve times the contribution demanded of a member at age 20, is not a discrimination 
 against the aged member, but is merely conforming to the requirements of life in- 
 surance cost as demonstrated in actual business conduct. 
 
 AGE AND COST. 
 
 The paramount factor in the determination of life insurance cost is that of age. 
 
 It has been shown that the death-rate increases with the advance in age. 
 
 An increased death-rate of course means a larger number of deaths out of a given 
 number exposed to death. 
 
 The larger number of deaths means a greater amount of claims. 
 
 A greater amount of claims means a higher cost of life insurance protection. 
 
 For the present argument (omitting any consideration of the effect of accumulation), 
 the method of ascertaining cost is similar to that for obtaining death-rate, or probability 
 of dying, namely, 
 
 Divide the amount of claims by the insurance protection at risk. 
 
 From the experience of any Society the amount of insurance exposed to risk can 
 be obtained, and also the amount of claims can be ascertained, in a like manner to 
 that explained for determination of members exposed to death, and the number dying. 
 
 Simple division will obtain the yearly cost per $1,000 of protection at the various 
 ages from year to year. 
 
 From a recognized standard mortality table (the N. F. C), the following yearly 
 costs per'$i,ooo of protection have been taken for ages 20, 21, 22, 23, 24, 25, 30 and for 
 each quinquennial age to 95 and annually to 99: 
 
 YEARLY COSTS PER $1,000. 
 
 Age Cost Age Cost Age Cost Age Cost 
 
 20 $5.00 30 $5-55 60 $22.75 90 $ 368.70 
 
 21 5-04 35 6.15 65 34.39 95 602.74 
 
 22 5.07 40 7.17 70 53.65 96 655.17 
 
 23 5-II 45 8.87 75 85.48 97 700.00 
 
 24 5.15 50 11.44 80 138.09 98 1,000.00 
 
 25 5-20 55 15.71 85 225.08 99 
 
 (The Table appears in the Appendix.) 
 
 If it is desired to grant insurance protection at actual cost, obviously a member 
 would pay the amounts of the yearly costs, increasing with age. 
 
 In other words, if a member took out $1,000 insurance at age 20, and paid $5.00 
 in the first year from age 20 to 21, he would pay the actual cost, the same being his 
 share of the expected death claims for that year. When he attained 21 years of 
 age, he would contribute $5.04 as his share of the death losses for the year from 
 age 21 to 22. Similarly, for each 1 advanced year of age his contribution should be 
 increased to meet the increased insurance cost. 
 
161 
 
 He might not die until he, was 98 years of age, nevertheless the Society would 
 each year take the risk of his dying, and for that protection he should pay according 
 to the cost from year to year. 
 
 The probability of dying within the year is assumed to become a certainty at 
 age 98, and hence the risk is no longer contingent, and therefore the cost of $1,000 of 
 protection is $1,000, which is the expected contribution on the basis of cost, and must 
 be made in the last year of the longest expected life. 
 
 On the actual cost basis, the contribution corresponds to the yearly increasing 
 costs, and consequently there must be annually increasing contributions, or their 
 equivalents, in order to have a plan that will provide for the Actual Costs of protection. 
 
 NATURAL PREMIUMS. 
 
 Annually increasing contributions, which correspond to the yearly costs, are known 
 as "Natural Premiums." 
 
 There are a number of Societies which successfully operate under modified "Nat 
 ural Premium" plans. 
 
 The usual objection urged against the pure "Natural Premium" plan is that it 
 requires the largest contributions at the advanced ages, when members are supposed 
 to be least able to pay. 
 
 To meet this objection, Societies have modified the plan so as to have the increase 
 in contributions discontinue above a designated age. 
 
 The majority of Societies operate under rates of contribution intended to be 
 level and uniform from ages of entry, altogether avoiding the yearly increase from 
 age to age. 
 
 INCREASING COSTS OF PROTECTION. 
 
 The yearly increasing costs of protection must be provided for, whatever the 
 method of contribution. 
 
 Obviously, the actual cost of insurance to the Society cannot be affected by any 
 particular method of making contributions to meet the costs. 
 
 The insurance costs increase with advance in age, because the Law of Mortality 
 so decrees. 
 
 The yearly increasing costs must necessarily furnish the basis for the determina- 
 tion of contributions, under any and all methods. 
 
 The simplest and the natural method would be to have the contributions corres- 
 pond to the costs which is the natural premium plan. 
 
 However, the natural premium plan would make rates so high at extreme old 
 ages that the advantage of protection would not justify the contribution to provide 
 for its cost. (See foregoing yearly costs for age 70 and above the yearly costs being 
 the same as the natural premiums, or increasing contributions). The results in prac- 
 tical operation have been to adopt a modified natural premium plan, or a level premium 
 plan. 
 
 "LIFE EXPECTANCY/' 
 
 A great many people imagine that "Life Expectancy" enters into the computation 
 of level rates of contribution. 
 
 Recently a Texas jurist, in an otherwise able and learned opinion, made the 
 statement that the adequate level rate was that amount which, placed at compound 
 interest, zcould produce $1,000 at the end of life expectancy. 
 
162 
 
 Only the notorious lack of mathematical acumen by lawyers can excuse this 
 wholly erroneous statement by the learned Lone Star judge. 
 
 It is surprising that he failed to test his statement before solemnly delivering 
 it in judgment. For example : 4 
 
 The net level annual premium for $1,000 of insurance at age 40, by the American 
 Experience Table of Mortality and four per cent interest, is $22.35. 
 
 The period of "Life Expectancy" at age 40, by the same table, is 28.18 years. 
 
 The amount of $22.35 paid annually at four per cent compound interest for 
 28.18 years is $i, 175-39- 
 
 The net level annual premium by the National Fraternal Congress Table of 
 Mortality and four per cent interest, for $1,000 of insurance at age 40, is $20.11. The 
 period of "Life Expectancy" by that table, at age 40, is 29.9 years. The amount of 
 $20.11 paid annually and improved at four per cent compound interest for 29.9 years 
 is $1,168.19. 
 
 In both instances the amount, at the end of "Life Expectancy," is in excess of 
 $1,000. , , 
 
 The statement of the judge is not only erroneous, but it is fallacious in the 
 failure to take into consideration the fact that a portion of the net level annual pre- 
 mium must be taken to provide for the yearly costs of protection in paying the claims 
 which must mature from year to year. Hence, it is impossible to place the whole 
 premium at compound interest annually. 
 
 When the member's share of annual losses is deducted from the net premium, 
 and the balance improved at four per cent compound interest for the period of "Life 
 Expectancy," the net accumulation, at the end of the period by the American Experi- 
 ence Table for 28.18 years, is $520.32, and by the National Fraternal Congress Table 
 for 29.9 years, it is $550.84. In neither case is the accumulation at the end of "Life 
 Expectancy" very much more than one-half of $1,000. 
 
 Many persons, without expert knowledge, have arrived at radically wrong conclu- 
 sions by the employment of "Life Expectancy" and "Average Age" in their compu- 
 tations. The general public, and, even the courts, have been misled by these plausible 
 fallacies. "Life Expectancy" and "Average Age" do not enter into the ordinary com- 
 putations of life insurance premiums. 
 
 But we must return to the paramount consideration of the Insurance Contract, 
 and an exposition of the relations of the insurer and the insured in respect of the 
 integrity of the Contract in its twofold aspect of the 
 
 BENEFIT SIDE and the 
 CONTRIBUTION SIDE. 
 
 The Benefit Side involves the insurer's obligation to pay the promised benefit, 
 whether it be a death benefit, a disability benefit, an endowment benefit, or an old 
 age benefit. 
 
 The insurer is not altogether responsible and reliable unless every precaution is 
 taken to assure the payment of the promised benefit when it matures into a claim. 
 
 If the promise is to pay a benefit of $1,000 at death of the insured, whenever that 
 event may occur, it is no justifiable excuse for failure to provide for the performance 
 of the promise by alleging that the happening of the event is uncertain, and the 
 date of its occurrence subject to chance, and therefore not ascertainable by' the ordi- 
 nary rules of business. 
 
 The promise to pay should not be made if it is impossible or doubtful of per- 
 formance. 
 
163 
 
 If it partakes of a lottery or a gamble, the making of the promise is in violation 
 of public policy, and should be prohibited. 
 
 In this connection, and for emphasis, I desire to repeat what I have said hun- 
 dreds of times in public addresses and to managers and officials of Fraternal Bene- 
 ficiary Societies, That no Life or Casualty insurance corporation should be permitted 
 to transact business unless it could show that it would be able (under normal con- 
 ditions) to carry out its promises in good faith and according to the terms and tenor 
 of its contract. 
 
 POSSIBILITY OF PERFORMANCE. 
 
 Unless a demonstration oi possible performance can be made, the law should 
 prohibit the promise. 
 
 Then, What is the demonstration which will show that it is possible for an insur- 
 ance corporation to provide for the payment of $1,000 on the death of an insured 
 person whenever that event may happen. 
 
 First. It could show that it had $1,000 in cash, or well secured funds which 
 would be held until the occurrence of the event, and then used for the payment of 
 the benefit. 
 
 Second. It could show that it held the present worth of the $1,000 safely invested 
 and earning interest at a rate that would increase the sum, representing the present 
 Tiilitc of the $1,000, to the face value of the promised benefit at the date of its matu- 
 rity by death. . 
 
 Third. It could show that it had the offsetting promise from the insured person 
 to make periodical contributions to the benefit funds of the corporation, and that the 
 frcsent worth of these promised contributions was equal in value to- the present 
 worth of the promised benefit. And should the insured person default in his contri- 
 butions the corporation thereby would be released from the promise to pay the benefit. 
 
 When the proposition is thus plainly put, and its purpose is understood and 
 appreciated, it is inconceivable that any honest man could urge objection to a statu- 
 tory requirement for such a demonstration as a condition precedent to doing business. 
 
 THE INSURANCE PROBLEM. 
 
 The query often comes to me, You tell us what the demonstration should show, but 
 
 How are we to determine the present value of $1,000 payable at an unknown date? 
 
 How are we to determine the present value of the promise of the insurant to 
 make future periodical contributions when the number may be one or one hundred? 
 
 How are we to determine definite provisions for so uncertain an event as the 
 death of an individual which may occur tomorrow or fifty years hence? 
 
 These questions in themselves bear witness to the peculiar character of life 
 insurance, and clearly indicate the necessity for the application of special rules when 
 treating the Insurance Contract as an affair of business. 
 
 If $1,000 were payable one year hence, and were it desired to obtain the present 
 value on the basis of four per cent interest per annum, any sixth grade schoolboy 
 could readily answer that it was obtained by dividing 1.04 into $1,000. Or taking the 
 present value of $1.00 due one year hence, .961538, and multiplying by 1,000. 
 
 If the $1,000 were due ten years hence, multiply by .675564, the present value of 
 $1.00 due ten years from date. 
 
 The insurance problem is to find the present value of $1,000 payable at the death 
 of the insured. 
 
164 
 
 Obviously, the answer is not obtained by the simple use of interest discount fac- 
 tors for the very good reason that these cannot be applied until some time is set 
 for the payment of the principal sum. 
 
 How can a date for maturity be determined when it depends upon the uncertainty 
 of a human life? than which there is nothing less certain. 
 
 COOPERATION. 
 
 This question develops and discloses the paradoxical nature of the life insurance 
 business. 
 
 I have said that we must bring; under analysis the Insurance Contract between 
 the insurer and the insured before their relations can be understood, equity estab- 
 lished and success assured. 
 
 In answer to the last question, I now positively must assert that it is a business 
 impossibility to enter into a life insurance contract with a single individual separate 
 and apart from other insurants similarly situated. 
 
 The uncertain duration of the individual life would make a single contract for 
 life insurance a bet, or gamble, pure and simple. 
 
 Mutual cooperation is the essence of life insurance. 
 
 There must be a number of insured lives similarly conditioned before the single 
 risk is brought within the operation of the Law of Mortality. 
 
 This Law, like all Laws of Nature in their operation, produces regularity and 
 continuity in the occurrences of deaths amongst a given number within a given time 
 under similar conditions. 
 
 This Law makes no more certain the duration of the individual life of any one 
 of the many associated in mutual cooperation. 
 
 Its function is to establish the fact of regularity in the number that may be 
 expected to die within a given period from amongst a group of persons similarly 
 situated. 
 
 We must, therefore, predicate the conduct of a life insurance business upon the 
 assumption of cooperation by a number of persons associated for mutual protection, 
 with a managing corporation only as means for the accomplishment of the desired end. 
 
 PRESENT VALUE OF THE BENEFIT. 
 
 To find the present worth of the promise to pay $1,000 on the death of an 
 individual, we must find the present value of similar promises to a number of 
 insurants similarly situated, and then by division reduce the value to the basis of 
 the promised $1,000 benefit. 
 
 Even then, before we can make a start, the Laws of Mortality must be brought 
 to a definite basis for mathematical treatment. 
 
 This is accomplished by the selection of some standard Mortality Table, or by 
 the construction of a mortality table from the actual experience of a life insurance 
 organization, or from some exhibit of vital statistics. 
 
 In passing, it may be recalled that the philosopher and scientist, Dr. Milne, could 
 not secure statistics from any life insurance company, because such data were not 
 available one hundred and thirty-five years ago, hence he had recourse to the rec- 
 ords of births and deaths of his native village for the statistics to reduce the Law 
 of Nature to tangible, workable form. 
 
16,5 
 
 We have the advantage of one hundred years of practical operation in the 
 conduct of the life insurance business should we desire to refer to actual experience 
 for our statistics. Or, we can select any one of many Mortality Tables already 
 at hand. 
 
 In another part of this book I have given the several Tables constructed from 
 the experiences of forty-three Fraternal Beneficiary Societies, and also the National 
 Fraternal Congress and the American Experience mortality tables, together with 
 the "death rates" from numerous other tables. 
 
 For purposes of illustrating this -text I shall take my figures from the National 
 Fraternal Congress Table of Mortality. 
 
 Bear in mind that the object is to obtain the present worth of promises to pay 
 future benefits upon the death of members. 
 
 The use of the Mortality Table is to ascertain the time for payment of claims, 
 in order that they may be discounted to find their present value. 
 
 Referring to the National Fraternal Congress Table of Mortality (appearing in 
 the Appendix), it is seen that at age 35 (and we will assume age 35 for our pros- 
 pective insurant), 92,215 are the number living, and of these 567 are assumed to die 
 during the year of age 35-36. 
 
 Subtracting 567 from 92,215, it is seen that the number living at age 36 is 91,648. 
 Of the latter 578 die during the year of age 36-37. 
 
 The two columns record the number living at each subsequent age and the 
 number dying during each year of age, until the last three living at age 98 die dur- 
 ing the year of age 98-99. 
 
 Assuming that each was insured for $1,000, the total protection promised would 
 be $92,215,000 upon the issuance of the 92,215 contracts. 
 
 According to the Law of Mortalit3 r , exemplified in this table, in the first year there 
 woud be 567 deaths maturing $567,000 of death benefits. 
 
 In actual practice, these deaths would occur from week to week and from month 
 to month during the year, but to simplify the succeeding calculations it will be 
 assumed that payment of claims is made at the end of the year. 
 
 Then the $567,000 of death benefits would be assumed to mature one year hence. 
 Multiplying by the present value of $1.00 due in one year, .961538, the present value 
 of $567,000 is found to be $545,190 (giving results by use of five-place logarithms). 
 
 In the second year of insurance of the 91,648 living 578 are expected to die, 
 maturing $578,000 in claims, assumed to be due and payable at the end of that year, 
 which would be two years from the beginning of the Insurance Contracts. To find 
 the present worth of $578,000 due two years hence multiply by the decimal .924556, 
 which is the present value of $1.00 due in two years. 
 
 From the foregoing it is readily understood that the yearly instalments of 
 claims can be ascertained from the column of the number dying as given in the 
 Table of Mortality. When the yearly instalments have been recorded at the ages 
 attained when matured into claims, each instalment can be brought to present value 
 by employment of the discount factor corresponding to the year of expected maturity 
 after the beginning of the insurance. 
 
 Here it may be stated that were it desired to obtain reults on the basis of the 
 experience of the forty-three Societies, or of the Woodmen of the World, or of the 
 Royal Arcanum, or of the Knights of the Maccabees of the World, or of the Knights 
 and Ladies of Security, or of any other Society from whose experience a mortality 
 table has been constructed, then the yearly instalments of claims would be secured 
 from the column of the number dying in such table. 
 
166 
 
 Exhibit i in Column 2 gives the instalment of claims for each of the 64 years 
 from age 35 to 99, the aggregate being the total of insurance, $92,215,000, issued at 
 age 35. In other words, by employment of the mortality table we anticipate the 
 time when all of the insured persons would be dead and all of the promised benefits 
 matured into claims by annual instalments as deaths are assumed to occur from 
 year to year. 
 
 In column 3 are given the discount factors on the assumption of four per interest. 
 
 In column 4 are the products of the factors by the assumed amount of claims, 
 for corresponding years, the results representing present worth as at the beginning 
 of the insurance. That is to say, $3,000 due 64 years hence has a present value of 
 $243.78. 
 
 The sum of the present values in column 4, $27,818,663.44, is the present value 
 of the sum of the instalments of claims, $92,215,000. 
 
 The meaning of the Exhibit is : If 92,215 persons were insured at age 35 under 
 contracts promising a benefit of $1,000 payable at the death of each, it might be 
 expected 
 
 That $567,000 of the $92,215,000 would become claims by deaths in the first year 
 of insurance, $578,000 in the second year, $591,000 in the third year, and so on for 
 succeeding years ; 
 
 That 64 years would expire before the maturity of the last three claims of $3,000 
 in the year of age 98-9 ; 
 
 That the present worth of the promises to pay $92,215,000 in benefits as they are 
 expected to mature into claims from year to year would be $27,818,663.44 ; 
 
 And that the present value of the promise to an individual insurant to pay $1,000 
 at his death would be the average present value, or $27,818,663.44 divided by 92,215, 
 equal $301.68. 
 
 Thus we have solved the problem to find the present value of the promise to pay 
 a benefit of $1,000 at the death of a person aged 35 at date of insurance whenever 
 death may occur. 
 
 The $27,818,663.44 represents the sum, if paid at the time the insurance is effected, 
 that would provide for all of the yearly installments of claims to the total of 
 $92,215,000, when supplemented by four per cent compound interest. 
 
 This is called the "Single Premium" for the payment of thef claims arising out 
 of the $92,215,000 of insurance. 
 
 Reduced to the basis of $1,000 (by dividing 92,215 into $27,818,663.44), $301.68 is 
 the "Single Premium," or single payment to be made by the person at age 35 to 
 purchase an insurance of $1,000 covering the whole period of life, the sum insured 
 being payable at death whenever that event occur. 
 
 Obviously, the present value of the sum insured is identical with the single 
 payment for the purchase of the sum insured. 
 
 The present value of the promised benefits is equal to the single payment to 
 assure the performance of the promise. 
 
 If $27,818,663.44 were improved at four per cent interest for one year, and 
 deduct the claims for the first year, $567,000; and improve the remainder at four 
 per cent interest for another year, and deduct the claims for the second year, 
 $578,000; and continue the process for 64 years, the amount at the end of the sixty- 
 fourth year would equal the last instalment of claims, $3,ooo. 
 
 In this way it can be proved that, 
 
EXHIBIT I. 
 
 Years 
 of In- 
 surance. 
 
 Yearly Instalments 
 of Death Claims. 
 
 Present Value of 
 f 1.00 Due n 
 Years Hence. 
 
 Present Value of 
 Instalments of 
 Doath Claims. 
 
 
 1 
 
 $ 567,000 
 
 .961538 
 
 $ 545,190 00 
 
 
 2 
 
 578,000 
 
 .924556 
 
 534,390 00 
 
 
 3 
 
 591,000 
 
 .888996 
 
 525,400 00 
 
 
 4 
 
 606,000 
 
 .854804 
 
 518,010 00 
 
 
 5 
 
 622,000$ 2,964,000 
 
 .821927 
 
 511,230 00 $2,634,220 
 
 00 
 
 6 
 
 640,000 
 
 .790315 
 
 505,800 00 
 
 
 7 
 
 660,000 
 
 .759918 
 
 501,550 00 
 
 
 8 
 
 683,000 
 
 .730690 
 
 499,060 00 
 
 
 9 
 
 708,000 
 
 .702587 
 
 497,430 00 
 
 
 10 
 
 734,000 6,389,000 
 
 .675564 
 
 495,870 00 5,133,930 
 
 00 
 
 11 
 
 761,000 
 
 .649581 
 
 494,320 00 
 
 
 12 
 
 790,000 
 
 .624597 
 
 493,440 00 
 
 
 13 
 
 822,000 
 
 .600574 
 
 493,670 00 
 
 
 14 
 
 857,000 
 
 .577475 
 
 494,890 00 
 
 
 15 
 
 894,000 10,513,000 
 
 .555265 
 
 496,410 00 7,606,660 
 
 00 
 
 16 
 
 935,000 
 
 .533908 
 
 499,210 00 
 
 
 17 
 
 981,000 
 
 .513373 
 
 503,620 00 
 
 
 18 
 
 1,029,000 
 
 .493628 
 
 507,950 00 
 
 
 19 
 
 1,083,000 
 
 .474642 
 
 514,040 00 
 
 
 20 
 
 1,140,000 15,681,000 
 
 .456387 
 
 520,270 0010,151,750 
 
 00 
 
 21 
 
 1,202,000 
 
 .438834 
 
 527,470 00 
 
 
 22 
 
 1,270,000 
 
 .421955 
 
 535,880 00 
 
 
 23 
 
 1,342,000 
 
 .405726 
 
 544,480 00 
 
 
 24 
 
 1,418,000 
 
 .390121 
 
 553,200 00 
 
 
 25 
 
 1,501,000 
 
 .375117 
 
 563,050 00 
 
 
 26 
 
 1,588,000 
 
 .360689 
 
 572,770 00 
 
 
 27 
 
 1,681,000 
 
 .346817 
 
 583,000 00 
 
 
 28 
 
 1,778,000 
 
 .333477 
 
 592,930 00 
 
 
 29 
 
 1,880,000 
 
 .320651 
 
 602,820 00 
 
 
 30 
 
 1,985,000 
 
 .308319 
 
 612,010 00 
 
 
 31 
 
 2,094,000 
 
 .296460 
 
 620,800 00 
 
 
 32 
 
 2,206,000 
 
 .285058 
 
 628,840 00 
 
 
 33 
 
 2,318,000 
 
 .274094 
 
 635,350 00 
 
 
 34 
 
 2,430,000 
 
 .263552 
 
 640,440 00 
 
 
 35 
 
 2,539,000 42,913,000 
 
 .253415 
 
 643,410 0019,008,200 
 
 00 
 
 36 
 
 2,645,000 
 
 .243669 
 
 644,510 00 
 
 
 37 
 
 2,744,000 
 
 .234297 
 
 642,910 00 
 
 
 38 
 
 2,832,000 
 
 .225285 
 
 638,000 00 
 
 
 39 
 
 2,909,000 
 
 .216621 
 
 630,140 00 
 
 
 40 
 
 2,969,000 
 
 .208289 
 
 618,420 00 
 
 
 41 
 
 3,009,000 
 
 .200278 
 
 602,630 00 
 
 
 42 
 
 3,026,000 
 
 .192575 
 
 582,730 00 
 
 
 43 
 
 3,016,000 
 
 .185168 
 
 558,470 00 
 
 
 44 
 
 2,977,000 
 
 .178046 
 
 530,040 00 
 
 
 45 
 
 2,905,000 
 
 .171198 
 
 497,340 00 
 
 
 46 
 
 2,799,000 
 
 .164614 
 
 460,750 00 
 
 
 47 
 
 2,659,000 
 
 .158283 
 
 420,870 00 
 
 
 48 
 
 2,485,000 
 
 .152195 
 
 378,210 00 
 
 
 49 
 
 2,280,000 
 
 . 146341 
 
 333,660 00 
 
 
 50 
 
 2,050,000 
 
 .140713 
 
 288,460 00 
 
 
 51 
 
 1,800,000 
 
 .135301 
 
 243,540 00 
 
 
 52 
 
 1,539,000 
 
 . 130097 
 
 200,220 00 
 
 
 53 
 
 1,277,000 
 
 .125093 
 
 159,740 00 
 
 
 54 
 
 1,023,000 
 
 . 120282 
 
 123,050 00 
 
 
 55 
 
 788,000 
 
 .115656 
 
 91,136 00 
 
 
 56 
 
 579,000 
 
 .111207 
 
 64,389 00 
 
 
 57 
 
 404,000 
 
 . 106930 
 
 43,200 00 
 
 
 58 
 
 264,000 
 
 .102817 
 
 27,144 00 
 
 
 59 
 
 161,000 
 
 .098863 
 
 15,917 00 
 
 
 80 
 
 89,000 
 
 .095060 
 
 8,460 40 
 
 
 61 
 
 44,000 
 
 .091404 
 
 4,021 80 
 
 
 62 
 
 19,000 
 
 .087889 
 
 1,669 90 
 
 
 63 
 
 7,000 
 
 .084508 
 
 591 56 
 
 
 64 
 
 3,000 
 
 .081258 
 
 243 78 
 
 
 
 $ 92,215,000 
 
 
 1 27,8 18,663 44 
 
 
 
 
 
 
 
168 
 
 The present value of the promised benefits must be equal to the single payment 
 to assure the performance of the promise, and 
 
 That is the demonstration which should be required of every life insurance 
 organization before being permitted to make promises for the payment of future 
 benefits upon the death of citizens of any State or Province. 
 
 If the applicant for life insurance protection were 45 instead of 35 years of age, 
 the process for finding the present value, or "Single Premium," of the promise to 
 pay $1,000 at his death would be identical with that explained for age 35, differing 
 only in the fact that the Mortality Table would be entered at age 45, instead of at 
 35, and the first yearly instalment of claims would be $761,000 on account of the 
 761 deaths during the year amongst the 85,826 persons living at age 45- 
 
 Similarly for applicant at age 20. The Table would be entered at that age, 
 the first yearly instalment of claims being $500,000 on the 100,000 living at age 20. 
 
 There would be a total of $85,826,000 of claims, and 54 yearly instalments to 
 be dicounted for the entrants at age 45, while the total would be $100,000,000, and 
 there would be 79 yearly instalments of claims for the entrant at age 20. 
 
 The present value of the promise to pay $1,000 at the death of the entrant at age 
 45 would be $391.25, and at age 20 it would be $211.86. These amounts represent, 
 the "Single Premium" for the purchase of $1,000 insurance at the respective entry 
 ages. 
 
 The present value of the promise to pay $1,000 at the death of a member aged 70 
 would be $705.18, representing the "Single Premium" for the purchase of $1,000 whole 
 life insurance at age 70. 
 
 A second reading of the foregoing explanation is justified by its importance, since 
 a thorough understanding of the process to determine the present value of the prom- 
 ised benefit is necessary for ready comprehension of the process to determine the 
 amount of the level annual contribution rate adequate to provide for the promised 
 benefit. 
 
 Before re-reading, have fixed in mind the fact that the column of the number 
 dying during each year of age, as shown by the selected Mortality Table, determine 
 the yearly instalments of claims for the period covered by the promise of protec- 
 tion, whether that period be for the whole term of life or for a shorter stipulated 
 term, and from these yearly instalments of claims is obtained the present value of 
 the benefits promised to be paid during such term. 
 
 For illustration: If the promise were to pay a benefit of $1,000 provided death 
 occur before age 70, and the insurance was taken at age 35, then on $92,215,000 the 
 total of expected benefit payments would be the sum of the claims in column 2 ex- 
 pected to mature during the period of 35 years from age 35 to age 70 amounting to 
 $42,913,000. The total of the present values of the instalments of yearly claims is 
 the sum of the values in column 4 for the 35 years from age 35 to age 70, amounting 
 to $19,008,200. 
 
 Note carefully : 
 
 The present value of $92,215,000 of life insurance benefits, promised to be paid 
 whenever death occur, covering the whole period of life, is $27,818,663. 
 
 The present value of $92,215,000 of life insurance benefits, promised to be paid 
 if death occur prior to age 70, covering a period of 35 years, is $19,008,200. 
 
 The total amount of claims expected under the whole life contract on the $92,- 
 215,000 of promised protection is $92,215,000. 
 
169 
 
 The total amount of claims expected under the term contract to age 70 on the 
 $92,215,000 of promised protection is $42,913,000. 
 
 The present value (single payment) of $1,000, under a term contract to age 70, 
 is $19,008,200 divided by 92,215, equal $206.12 as against $301.68 on the whole life 
 contract. 
 
 Under a term contract for twenty years, of $92,215,000 face value of insurance 
 at age 35, it would be expected that $15,681,000 would mature into claims (the sum 
 of column 2 for 20 years), the present value of which would be $10,151,750. The 
 present value (or single payment) on $1,000 would be $10,151,750 divided by 92,215 
 equal $110.09. 
 
 On a 15-year term the insurance would be $92,215,000; the expected claims would 
 be $10,513,000; their present value, $7,606,660; and the present value of $1,000 would 
 be $82.49. 
 
 On a lo-year term the figures would be: Insurance, $92,215,000; total expected 
 claims, $6,389,000; total present values, $5,133,930; present value of $1,000, $55.67. 
 
 On a 5-year term the figures would be: Insurance, $92,215,000; total claims, $2,964,- 
 ooo; present value, $2,634,220; present value of $1,000, $28.67. 
 
 PRESENT VALUE OF THE CONTRIBUTION. 
 
 It is exceptional for a person to pay one premium for life insurance. 
 
 Ordinarily it is desired that the contributions be made annually, semi-annually, 
 quarterly, or monthly, and that they continue through the whole period of life or 
 for a limited number of years. 
 
 Let it be assumed that the contributions are to be annually in advance and to 
 continue until death. 
 
 The question returns, How is the annual contribution to provide for $1,000 of 
 insurance to be determined? 
 
 I have heard hundreds of well-informed men explain the method of computation 
 as did the learned Texas Judge heretofore quoted, who stated that "the adequate level 
 contribution rate was that amount which placed at compound interest would produce 
 $1,000 at the end of life expectancy." 
 
 Many others have said that the proper annual level rate could be obtained by 
 dividing the "single premium," or present value of the sum insured by the years of 
 life expectancy. Thus : For the whole life annual level premium for $1,000 at age 
 35 divide $301,68 by 34, which would give about $9 instead of the true net rate of 
 $16.62. 
 
 A very intelligent and well-educated man, and altogether of fine business capacity, 
 several years ago announced that he had solved the problem of an equitable and 
 adequate contribution rate, and he founded a society to exploit the plan. A number of 
 societies now operate upon similar plans. The scheme, generally described, is 
 somewhat as follows : 
 
 The single premium is divided by the number of years of life expectancy to de- 
 termine the annual level contribution rate. If the member dies before the end of 
 life expectancy, the amount of the single premium, less the number of assessments 
 paid, is deducted from the face of the certificate. 
 
 Thus: Single premium at age 35, $301.68; years of life expectancy, 34; level annual 
 rate, $301.68 divided by 34 equal $8.88 per annum per $1,000, or 72 cents per 
 month. The member pays twenty-four monthly assessments and dies. His bene- 
 ficiaries receive $1,000 minus ($301.68 minus $17.76) equal $716.08. 
 
170 
 
 The effect of the plan is to have an increasing insurance, beginning with $698.32 
 ($1,000 minus $301.68) and increasing 72 cents with each monthly contribution until 
 the amount equals the face of the certificate at the end of life expectancy. 
 
 The effect of operation under this plan was exaggerated, and in consequence 
 the contribution rates were made too low. The manner of obtaining them was alto- 
 gether erroneous. 
 
 This brings us to the correct method for the determination of the adequate level 
 rate, which is preceded by the determination of the single premium for an annuity. 
 
 Again recourse must be had to the Mortality Table. 
 
 Turn to the Table in the Appendix and find opposite age 35, in the column giving 
 the number living, 92,215 as the first factor in the computation. 
 
 Assume that the 92,215 persons agree to contribute $1.00 at the beginning of each 
 year for the whole period of their lives. 
 
 We would have at the beginning of the first year $92,215. 
 
 From the Table we find that 91,648 are expected to be living at the beginning of 
 second year, at age 36, and hence we expect a second contribution of $91,648 one? 
 year hence. 
 
 From the Table we find that 91,070 are expected to be living at the beginning of 
 the third year, at age 37, and we expect to receive at the beginning of the third 
 year a contribution of $91,070. 
 
 From the Table we find that 3 are expected to be living at the beginning of tho 
 64th year, at age 98, and we expect to receive from them our 64th annual contribution 
 of $3.00. 
 
 Under the assumption we have the promise of contributions at the beginning of 
 each year of $1.00 from each survivor, therefore, $1.00 times the number of living 
 at each year of age will give the expected yearly instalments of contributions for 
 the 64 years, at the expiration of which all of the contributors are assumed to 
 be dead. 
 
 Exhibit 2 gives, in column 2, the yearly instalments of promised contributions; 
 in column 3 are the interest discount factors (being unity at beginning of first year, 
 because the first instalment is paid in advance) ; and in column 4 are the present 
 values of the yearly instalments of the promised contributions, being the product 
 of column 2 by column 3. 
 
 The total of the promised contributions is $3,167,619, and the total of the present 
 values of the yearly instalments is $1,674,337.74. 
 
 The $1,674,337.74 is the single payment that could be made at age 35 as the 
 equivalent of $1.00 annually to be contributed at the beginning of each year, by 
 each of 'the survivors of the 92,215 entrants. 
 
 An annual payment is known as an "Annuity," because it is a sum of money 
 paid annually. 
 
 The above results might be stated to show that for a present sum in one payment 
 of $1,674,337.74, the 92,215 persons could purchase life annuities of $1.00 each, payable 
 annually in advance, because the present sum of $1,674,337.74, improved at 4 per cent 
 compound interest, will provide for the yearly instalments of $1.00 to each living per- 
 son (on the assumptions of the National Fraternal Congress Table of Mortality). 
 
 Any one can make proof of the statement by deducting from the present sum, 
 $92,215 (as the first instalment or annuity payment to the 92,215 entrants) ; and 
 then improve the remainder at 4 per cent interest for one year and deduct $91,648 (as 
 the second annuity payment to the 91,648 living at the beginning of the second 
 
EXHIBIT II. 
 
 Begin- 
 ning of 
 Yrs.of 
 ns. 
 
 Amount of Annual 
 Contributions at 
 $1.00 per Member. 
 
 Present Value of 
 $1.00 Due n Years 
 Hence. 
 
 Present Value of 
 Yearly Instalments 
 of Contributions. 
 
 1 
 
 $ 92,215 
 
 1.000000 
 
 $ 92,215.00 
 
 
 2 
 
 91,648 
 
 .961538 
 
 88,123.30 
 
 
 3 
 
 91,070 
 
 .924556 
 
 84,199.50 
 
 
 4 
 
 90,479 
 
 .888996 
 
 80,435.80 
 
 
 5 
 
 89,873$ 455,285 
 
 .854804 
 
 76,824.80$ 421,798 
 
 .40 
 
 6 
 
 89,251 
 
 .821927 
 
 73,358.90 
 
 
 7 
 
 88,611 
 
 .790315 
 
 70,031.70 
 
 
 8 
 
 87,951 
 
 .759918 
 
 66,836.60 
 
 
 9 
 
 87,268 
 
 .730690 
 
 63,766.90 
 
 
 10 
 
 86,560- 894,926 
 
 .702587 
 
 60,816.90 756,609. 
 
 40 
 
 11 
 
 85,826 
 
 .675564 
 
 57,982.10 
 
 
 12 
 
 85,065 
 
 .649581 
 
 55,257.50 
 
 
 13 
 
 84,275 
 
 .624597 
 
 52,639.00 
 
 
 14 
 
 83,453 
 
 .600574 
 
 50,120.80 
 
 
 15 
 
 82,596 1,316,141 
 
 .577475 
 
 47,698.20 1,020,307 
 
 .00 
 
 16 
 
 81,702 
 
 .555265 
 
 45,367.30 
 
 
 17 
 
 80,767 
 
 .533908 
 
 43,123.20 
 
 
 18 
 
 79,786 
 
 .513373 
 
 40,960.90 
 
 
 19 
 
 78,757 
 
 .493628 
 
 38,877.70 
 
 
 20 
 
 77,674 1,714,827 
 
 .474642 
 
 36,868.40 1,225,504 
 
 .50 
 
 21 
 
 76,534 
 
 .456387 
 
 34,930.10 
 
 
 22 
 
 75,332 
 
 .438834 
 
 33,059.30 
 
 
 23 
 
 74,062 
 
 .421955 
 
 31,251.90 
 
 
 24 
 
 72,720 
 
 .405726 
 
 29,505.40 
 
 
 25 
 
 71,302 
 
 .390121 
 
 27,817.40 
 
 
 26 
 
 69,801 
 
 .375117 
 
 26,184.40 
 
 
 27 
 
 68,213 
 
 .360689 
 
 24,604.50 
 
 
 28 
 
 66,532 
 
 .346817 
 
 23,075.20 
 
 
 29 
 
 64,754 
 
 .333477 
 
 21,594.80 
 
 
 30 
 
 62,874 
 
 .320651 
 
 20,161.40 
 
 
 31 
 
 60,889 
 
 .308319 
 
 18,773.90 
 
 
 32 
 
 58,795 
 
 .296460 
 
 17,431.00 
 
 
 33 
 
 56,589 
 
 .285058 
 
 16,131.80 
 
 
 34 
 
 54,271 
 
 .274094 
 
 14,875.90 
 
 
 35 
 
 51,841 2,699,336 
 
 .263552 
 
 13,663.30 1,578,564 
 
 .SO 
 
 36 
 
 49,302 
 
 .253415 
 
 12,494.10 
 
 
 37 
 
 46,657 
 
 .243669 
 
 11,369.30 
 
 
 38 
 
 43,913 
 
 .234297 
 
 10,289.10 
 
 
 39 
 
 41,081 
 
 .225285 
 
 9,255.40 
 
 
 40 
 
 38,172 
 
 .216621 
 
 8,269.20 
 
 
 41 
 
 35,203 
 
 .208289 
 
 7,332.70 
 
 
 42 
 
 32,194 
 
 .200278 
 
 6,448.00 
 
 
 43 
 
 29,168 
 
 . 192575 
 
 5,617.30 
 
 
 44 
 
 26,152 
 
 .185168 
 
 4,842.80 
 
 
 45 
 
 23,175 
 
 .178046 
 
 4,126.40 
 
 
 46 
 
 20,270 
 
 .171198 
 
 3,470.40 
 
 
 47 
 
 17,471 
 
 .164614 
 
 2,876.10 
 
 
 48 
 
 14,812 
 
 .158283 
 
 2,344.60 
 
 
 49 
 
 12,327 
 
 .152195 
 
 1,876.20 
 
 
 50 
 
 10,047 
 
 .146341 
 
 1,470.40 
 
 
 51 
 
 7,997 
 
 .140713 
 
 1,125.30 
 
 
 52 
 
 6,197 
 
 . 135301 
 
 838.50 
 
 
 53 
 
 4,658 
 
 . 130097 
 
 606.00 
 
 
 54 
 
 3,381 
 
 . 125093 
 
 423.00 
 
 
 55 
 
 2,358 
 
 .120282 
 
 283.60 
 
 
 56 
 
 1,570 
 
 .115656 
 
 181.60 
 
 
 57 
 
 991 
 
 .111207 
 
 110.20 
 
 
 58 
 
 587 
 
 . 106930 
 
 62.80 
 
 
 59 
 
 323 
 
 .102817 
 
 33.20 
 
 
 60 
 
 162 
 
 .098863 
 
 16.00 
 
 
 61 
 
 73 
 
 .095060 
 
 6.90 
 
 
 62 
 
 29 
 
 .091404 
 
 2.70 
 
 
 63 
 
 10 
 
 .087889 
 
 88 
 
 
 64 
 
 3 
 
 .084508 
 
 26 
 
 
 
 3, 167, 61 9 
 
 
 $1,674,337.74 
 
172 
 
 - 
 
 year) ; and proceeding in a similar manner to the 64th year, when it will be found that 
 $3.00 are on hand to pay the 3 survivors at the beginning of the year of assumed 
 existence. 
 
 Dividing $1,674,337.74 by 92,215 we obtain $18.16 (nearly) as the present value, 
 or "Single Premium," for a Life Annuity of $1.00 beginning at age 35. 
 
 THE LEVEL ANNUAL PREMIUM. 
 
 Having obtained the Single Premium ($301.68) for a promised benefit of $1,000 
 payable at death whenever that event may occur; 
 
 Having obtained the Single Premium ($18.16) for a promised payment of $1.00 
 annually until death; 
 
 We are now in position to solve the problem as to the amount of the Level Annual 
 Contribution to provide for a promised Death Benefit of $1,000. 
 
 The solution is effected by establishing the relations between the Single Premium 
 for the Insurance and the Single Premium for the Annuity that is, between the 
 present value of the Promised Benefit payable at death and the present value of 
 the Promised Annual Contribution payable until death. 
 
 Note the simplicity of the equation: 
 
 If $18.16 will provide for $1.00 payable annually until death, then a present sum 
 of $301.68 will provide for $16.62 payable annually until death, being the quotient of 
 $301.68 divided by $18.16. 
 
 That is to say, $16.62 paid annually is the equivalent of $301.68 paid in one sum. 
 Or, $301.68 is the present value of an annual contribution of $16.62 payable during 
 life; 
 
 But $301.68 is also the present value of a Benefit of $1,000 payable at death; 
 
 Or $301.68 is the Single Payment required to provide for the Benefit of $1,000 
 payable at death; 
 
 Then $16.62, payable annually until death, being the equivalent of $301.68 paid 
 in one sum, must be the annual contribution required to provide for the promised 
 Benefit of $1,000 payable at death. 
 
 It has taken many words and much space to make a plain and untechnical ex- 
 planation of the method to determine the level annual contribution at age 35 to 
 provide for the promise of $1,000 payable at death, but I feel justified in the effort 
 because of the prevailing unfamiliarity with the subject by capable and successful 
 managers. 
 
 However, the whole matter resolves itself into the calculation of Single Premiums 
 for Insurance and Single Premiums for Annuities, and with the first as dividends 
 and the second as divisors, the quotients will be the required Level Annual Con- 
 tribution Rates. 
 
 Thus : To find the level annual contribution (paid in advance) to provide for 
 $1,000 at death prior to age 70; 
 
 Divide 92,215 into $1,578,564.80, the sum of the present values of the yearly in- 
 stalments of contributions for the 35 years (35-?o), to obtain $17.12, the Single 
 Premium for an Annuity payable to age 70. 
 
 Then divide $206.12, the Single Premium to provide $1,000, payable at death prior 
 to 70, by this temporary annuity $17.12, and the result is $12.04, the required Level 
 Annual Contribution to provide $1,000 payable at death prior to age 70. 
 
 For the Level Annual Contribution for $1,000 at age 35 on a 2O-year term contract, 
 
173 
 
 Divide $1,225,504.50 by 92,215, obtaining $13.29, the value of the temporary an- 
 nuity, and dividing this into $110.09, the single premium for the temporary insurance, 
 we obtain $8.28 as the required rate. 
 
 By a similar process (using the side totals in the two exhibits) the Level Annual 
 Contribution Rate can be obtained for 15 and 10 and 5-year terms for entry age 35. 
 
 Exhibits could be prepared for other ages of entry and values computed by follow- 
 ing the procedure set forth in the given illustration. 
 
 It is well to explain that the Level Whole Life Annual Contribution Rate could 
 have been directly obtained by dividing $1,674,337.74 (the present value of yearly 
 instalments of $1.00 contributions) into $27,818,663.44 (the present value of the 
 yearly instalments of claims). 
 
 And similarly the annual contribution for Term to age 70 could be found by 
 dividing $1,578,564.80 into $10,008,200.00. For 2O-YearTerm, $1,225,504.50 into $10,- 
 151,750.00. And similarly for the other terms. 
 
 In other words if the sum of the present values of the yearly instalments of 
 claims on the basis of $1,000 per member is divided by the sum of the present values 
 of the yearly instalments of contributions on the basis of $1.00 per member, the 
 quotient will be the level annual contribution rate to provide for the $1,000 death benefit. 
 
 The employment of this principle gives a short cut for the determination of the 
 Single Premium for Insurance, the Single Premium for an Annuity and the Level 
 Annual Premium. 
 
 This shorter process consists of a summation of the column of present values of 
 promised benefits and the column of present values of promised contributions (columns 
 4 of Exhibits I and 2), beginning the summation at the 64th item and taking sub- 
 totals in summing upward to the first year at age of entry. From the summed 
 columns readily can be gotten the dividend and divisor to obtain the level annual 
 contribution rate as above indicated. This process is explained in more detail in 
 the treatment of "Commutation Columns." 
 
 The level annual premiums for limited payment contracts and endowment con- 
 tracts can be obtained from the present values of instalments of claims and present 
 value of the instalments of contributions in a similar way to that of determining 
 the level annual premium for whole life contracts and for term contracts. 
 
 It has been shown that by dividing the sum of the instalments of claims $27,818,- 
 663.44 by the sum of the present values of the instalments of contributions, $1,674,- 
 337-74, the net level annual premium for a whole life contract on $1,000 at age 35 
 is obtained, and it has been shown that if we divide the sum of the present value of 
 the instalment of claims for 20 years, $10,151,750, by the sum of the present values 
 of the instalments of contributions for 20 years, $1,225,504.50, we obtain $8.28, the 
 level annual premium for a term contract for twenty years, to provide for $1,000 
 payable at death within that period. 
 
 If now we want the net level annual premium for a whole life contract where the 
 benefit is payable at death whenever that event occur, but the contributions are 
 limited to 20 years, we would divide the sum of all the present values of the 
 instalments of claims, $27,818,663.44, by the sum of the present values of the instal- 
 ments of contributions for 20 years, $1,225,504.50, giving us $22.70 as the net level 
 annual premium lo provide for $1,000 death benefit whenever that even may occur 
 with the contributions limited to 20 annual payments. 
 
174 
 
 If we wanted to limit the number of annual contributions to 15, then we would 
 divide $27,818,663.44 by $1,020,307. Similarly we would divide by the sum of the 
 present values of the instalments of contributions for 10 years or 5 years to 
 obtain the level annual premium for whole life protection with the contributions 
 limited to 10 or 5 payments. 
 
 The annual premium for an endowment insurance is made up of the sum of an 
 annual premium for term insurance and an annual premium for "pure endowment" 
 insurance. To obtain the net annual premium for a 2O-year endowment policy, we 
 would take the annual premium for the 2O-year term, $8.28, and add it to the premium 
 for a pure endowment. 
 
 An endowment insurance contract promises to pay the sum insured at the end 
 of the stated period or to pay the sum insured at prior death. If we have under 
 consideration a 20-year endowment insurance contract, then the 2O-year term level 
 annual rate of $8.28 for entry age 35 would provide for the $1,000 payable at death 
 within the period 20 years, and this $8.28 is obtained as heretofore explained. 
 
 The endowment would provide for the payment of $1,000 to each of the survivors 
 at the end of the 20 years. By reference to the mortality table, in the column of the 
 number living opposite age 55 (the end of 20 years from age 35), we find that the 
 number of survivors are 76,534, and each one of these receiving $1,000 would make 
 $76,534,000 that we must have on hand at the end of 20 years in order to pay the 
 promised endowments. By reference to column 4 of Exhibit 2 we find that at the 
 end of the twentieth year (the beginning of the twenty-first year) that the value of 
 $76,534 is $34,930.10, and hence the value of $76)534,000 would be 1,000 times $34,930.10 
 or $34,930,100. 
 
 This latter amount, $34,930,100, is the present value or the single premium at 
 age 35 of $76,534,000 payable at the end of 20 years. All of the living members at 
 the beginning of each of the 20 years must contribute toward the payment of the 
 endowment of $76,534,000, and by reference to column 2 of Exhibit 2 it is seen that 
 the survivors would contribute at $1.00 each the sum of $1,714,827, the present value 
 of which would be $1,225,504.50. 
 
 Dividing the single premium for the pure endowment, $34,930,100, by the above 
 "temporary annuity" of $1,225,504.50, we obtain $28.50 as the required net annual 
 level premium per $1,000 for the pure endowment insurance. 
 
 Adding $28.50 to the annual premium for 20-year term, $8.28, we have $36.78 
 as the required annual premium per $1,000 for the endowment insurance at age 35. 
 
 As stated, the level annual premium of $8.28 per $1,000 paid by each of the sur- 
 vivors beginning with 92,215 entrants at age 35, will provide for the total of $15,681,000 
 of death claims which are expected to mature during the 20 years, while the level 
 annual premium of $28.50 will provide for the 76,534 endowments which are expected 
 to mature at the end of the 20 years, and of course the sum of these two level 
 annual premiums, $36.78, will provide for the death claims that mature during the 
 20 years, and also the endowments which mature at the end of the 20 years. 
 
 From the above it will be appreciated that Exhibits i and 2 give the basis for the 
 determination of level annual premiums to provide for death benefits and endowments 
 under many forms of contracts. Similar columns to those given in Exhibits I and 2 
 are prepared which facilitate the computation of contribution rates, and these are 
 known as "commutation columns," which hereafter will be explained. 
 
175 
 GENERAL STATEMENT. 
 
 For emphasis, I will restate some of the general propositions which have hecn 
 illustrated. 
 
 1. The single premium for insurance is the present value of the promised death 
 benefits. 
 
 2. The single premium for insurance, at the inception of the contract, is equal to 
 the present value of the future level annual contribution. 
 
 3. The single premium for insurance divided by the single premium for an 
 annuity will give the level annual premium to provide for the promised death 
 benefit. 
 
 4. The mortality table to be used in the computation of the single premium for 
 insurance and the single premium for annuities, may be constructed from any reliable 
 and sufficient data derived from the single or combined experience of insurance 
 organizations. Since the values are derived from the numbers living and numbers 
 dying according to the actual past experience of organizations, the result of computa- 
 tions must reflect what will be anticipated in the future experience, and managers of 
 such organizations will make a grievous error if they are not guided by results 
 obtained as hereinbefore indicated. 
 
 5. The level annual premium is obtained without regard to any division into 
 "mortality" and "reserve" elements. It is a fallacy to suppose that the "reserve" 
 and "mortality" elements are separately computed. The separation of the net level 
 annual rate into the "mortality element" and the "reserve element" is a fiction in 
 so far as the computation of the level rate is concerned. The reserve accumulation 
 is ascertained after the net level annual contribution rate has been determined. 
 
 ANOTHER METHOD OF COMPUTATION. 
 
 It has been suggested that the explanation of the methods for the determination 
 of single and annual premiums cannot be made too clear, and following this sug- 
 gestion I submit another method of computation by the use of the "probabilities of 
 living" and "probabilities of dying," instead of the "number living" and "number 
 dying." 
 
 Referring to the National Fraternal Congress Mortality Table at age 35, the 
 number living is found to be 92,215, and the number dying during the year of age, 
 35-36, is 567. By dividing the number living into the number dying the "probability 
 of dying" in the first year is found to be .006149. 
 
 The number dying in the next year of age, 36-37, is 578. By dividing 92,215, the 
 number living at age 35, into 578, the number dying at age 36, we obtain .006268 as 
 the "probability of dying" in the second year after entry at age 35. 
 
 The number dying at age 37 is recorded as 591, and dividing this by 92,215, the 
 number living at age 35, we find the "probability of dying," .006409, in the third year 
 after entry at age 35. 
 
 By dividing the number 92,215, living at age 35, into the number dying at any 
 advanced age, the "probability of dying" in the year at that advanced age can be 
 obtained. 
 
 The probability of dying in the current year is obtained by dividing the number 
 living at the beginning of the current year into the number dying during the 
 current year of age as 567 divided by 92,215. In life insurance the probabilities of 
 dying within the current year at the different ages are employed to determine the 
 current yearly costs of protection as hereinbefore shown as "Natural Premiums." 
 
176 
 
 The probability of dying in the first year, or the second, or the third, or any 
 other year after entry is made the basis for the computation of the single premium 
 for insurance, the probabilities of dying in the respective years being assumed as 
 the anticipated yearly costs of protection for those years. 
 
 That is to say, the probability of dying in the first year being .006149 (as above), 
 on the basis of $1,000 it can be assumed that $6.149 would be the year's cost to the 
 society for assuming the risk of paying $1,000 in the event of death during the 
 current year. 
 
 It has also been shown that .006268 is the probability at age 35 of dying in the 
 second year, and the society could accept $6.268 as the expected cost for the risk 
 on $1,000 in the second year of insurance. 
 
 And the society could accept $6.409 as the cost for the risk in the third year, 
 if the payment were made in advance at age 35 (without discount). 
 
 If the member waited until he reached age 36, then the current cost for the 
 year 37-38 would be $6.490, instead of $6.409 where he made an advance arrange- 
 ment at age 35 for the insurance in the third year. 
 
 However, if the insurant desired to make this advance contract, yearly costs 
 could be discounted in like manner to the discounting of the yearly instalments 
 of claims, and the sum of these discounted values would be the Single Premium for 
 the Insurance. The process follows, assuming age of entry 35, mortality according 
 to the National Fraternal Congress Table and interest at four per cent : 
 
 (1) 
 
 6.149 
 6.268 
 6.409 
 6.572 
 6.745 
 6.940 
 7.157 
 7.407 
 7.678 
 7.960 
 
 X 
 X 
 X 
 X 
 X 
 X 
 X 
 X 
 X 
 X 
 
 (2) 
 .961538=$ 
 .924556 = 
 .888996 = 
 .854804 = 
 .821927 = 
 .790315 = 
 .759918 = 
 .730690 = 
 .702587 = 
 .675564 = 
 
 (3) 
 5.9122 
 5.7951 
 5.6975 
 5.6174 
 5.5440 
 5.4850 
 5.4389 
 5.4119 
 5.3943 
 5.3773 
 
 $69.285 
 
 $55.6736 
 
 Column 1 gives the Insurance 
 Cost, derived from the Probability 
 of dying during ten years. 
 
 Column 2 gives the present 
 value of One Dollar due in 1, 2, 
 etc., years, at 4% Interest. 
 
 Column 3 gives the discounted 
 values of the Cost of Insurance, 
 the sum of which is ($55.6736) the 
 Present Value of all of these dis- 
 counted Costs, being the Single 
 Premium or Payment for $1,000 
 Protection for 10 years. 
 
 That this one Payment of $55.- 
 6736 is sufficient to meet the In- 
 
 Single Premium, age 35, 10 years Insurance. .$55.674 
 
 Interest for 1 year at 4% 2.227 
 
 Premium and Interest end of 1st year $57.901 
 
 Insurance Cost 1st year 6.149 
 
 Single Premium Reserve end 1st year $51 .752 
 
 Interest for 2d year at 4% 2.070 
 
 Premium Reserve and Interest end 2d year. .$53.822 
 
 Insurance Cost for the 2d year 6 . 268 
 
 Premium Reserve end of 2d year $47 .554 
 
 Interest for the 3d year at 4% 1.902 
 
 Premium Reserve and Interest end 3d year. . .$49.456 
 
 Insurance Cost for the 3d year 6 . 409 
 
 Premium Reserve at end of 3d year $43 .047 
 
 Interest for the 4th year at 4% 1.722 
 
 Premium Reserve and Interest end 4th year. .$44.769 
 
 Insurance Cost for 4th year 6.572 
 
 Premium Reserve end of 4th year $38 . 197 
 
 Interest for the 5th year 1.528 
 
 Premium Reserve and Interest end of 5th year . $39 . 725 
 
 Insurance Cost for the 5th year 6 . 745 
 
 Premium Reserve end of 5th year .$32.980 
 
 Interest for the 6th year 1.319 
 
 Premium Reserve and Interest end 6th year. .$34.299 
 
 Insurance Cost for the 6th year 6.940 
 
 Premium Reserve end of 6th year $27 .359 
 
 Interest for the 7th year 1.094 
 
 Premium Reserve and Interest end 7th year. .$28.453 
 
 Insurance Cost for 7th year 7.157 
 
 Premium Reserve end of 7th year $21 .296 
 
177 
 
 surance Costs for the ten years is 
 demonstrated by the accompany- 
 ing calculation. 
 
 Interest for the 8th year .$ 852 
 
 Premium Reserve and Interest end 8th year. .$22.148 
 
 Insurance Cost for the 8th year 7.407 
 
 Premium Reserve end of 8th year $14 .741 
 
 Interest for the 9th year .590 
 
 Premium Reserve and Interest end 9th year. .$15.331 
 
 Insurance Cost for the 9th year 7.678 
 
 Premium Reserve end of 9th year $ 7 .653 
 
 Interest for the 10th year .306 
 
 Premium Reserve and Interest end 10th year. .$ 7 .959 
 
 Insurance Cost for the 10th year 7.960 
 
 Termination of the 10 years' Protection $ 0.000 
 
 The foregoing computation and demonstration are based on a single insurance of 
 $1,000, which is entirely theoretical in treatment and not possible of practical ex- 
 emplification. However, if 92,215 persons are taken for the demonstration, the single 
 premium of 92,215 times $55.6736 can be proved adequate for the payment of claims, 
 the latter being determined by the death ratios shown in the Mortality Table in the 
 column of "Probabilities of Dying." This entire sum would be improved at 4 per 
 cent interest for the first year and $567,000 in claims deducted; then improve the 
 remainder at 4 per cent for one year and deduct $578,000; improve the remainder for 
 the third year and deduct $591,000; and thus continuing for the ten years it will be 
 found that the total of $6,389,000 of claims has been provided for. 
 
 The "probabilities of living" to the end of the first, second, third and so forth 
 years, are readily obtained and discounted under similar treatment to that shown 
 for the "probabilities of dying" in the first, second, third and so forth years, and 
 the result will be the single premiums for a ten-year Annuity $8.2048, and being 
 divided into the Single Premium for the 10-year term insurance ($55.6736) will 
 produce the ten-year term Level Annual Contribution Rate of $6.7855 to provide for 
 the promised $1,000 death benefit, if death occur within the ten years. 
 
 Level annual rates for whole life and other forms of contracts could likewise be 
 obtained. 
 
 COMPUTATION WITH LAPSE FACTOR CONSIDERED. 
 
 There prevails a general impression that considerable reduction in the rates of 
 contribution can be made, if allowance is made for gains from excess contribu- 
 tions of members who lapse or become suspended. In order to show what re- 
 duction may be anticipated, I have taken the select lapse experience of a very large 
 society, for entrants at age 35, and have constructed four tables similar to those 
 already given, save in the particular of using the lapse rate in diminishing the 
 amount of protection from year to year. That is to say, the insurance in force at 
 the beginning of the year is not only decreased by the amount of death claims 
 during the year, but also by the amount terminated by lapse. 
 
 After the full explanation made of the foregoing tables, it is unnecessary to enter 
 into any detailed discussion of the following exhibits, 3, 4, 5 and 6. 
 
 I have assumed such an amount of insurance at the beginning of the first year 
 as to produce at the end of the fifteenth year the same amount of insurance as 
 found in Exhibit I at the end of the fifteenth year. In Exhibit I the original 
 amount of protection was $92,215,000, which diminished by death claims during 
 
178 
 
 fifteen years left at the beginning of the sixteenth year $81,702,000. At the begin- 
 ning of the first year in column 2 of Exhibit 3 the amount of protection is $181,- 
 452,000, which being diminished during fifteen years by deaths and lapses is reduced 
 to $81,702,000 at the beginning of the sixteenth year. By this arrangement there is 
 an agreement in the amounts of protection at the beginning of the sixteenth year 
 of Exhibits i and 3. Likewise, after the fifteenth year, all of the items in all of 
 the columns are the same. 
 
 From Exhibit 3 it will be seen that during the first 15 years $86,697,000 of pro- 
 tection are terminated by lapse or suspension, while during the 64 years $94,755,000 
 are terminated by death. Assuming that the level rate of contribution for entry age 
 is in excess of current yearly costs of protection, then it is evident there is a gain 
 to the surviving and persistent members from the forfeitures of excess contributions 
 by those members who lapse. That this gain has been exaggerated by the estimates 
 of those who favor discounting contributions in anticipation of gains from for- 
 feitures can be demonstrated from a comparison of the two sets of tables re- 
 spectively constructed with and without consideration of the lapse factor. 
 
 Protection assumed with lapse $181 ,452,000 
 
 Protection assumed without lapse 92,215,000 
 
 Excess protection at risk $ 89 , 237 , 000 
 
 Total claims with lapse $ 94 , 755 , 000 
 
 Total claims without lapse 92,215,000 
 
 Excess claims with lapse $ 2,540,000 
 
 Total contributions with lapse $ 3 , 547 , 005 
 
 Total contributions without lapse 3 , 167 ,619 
 
 Total excess with lapse $ 379 , 386 
 
 From the above it will be noted that with $181,452,000 of protection, the sum of 
 the yearly installments of contributions, on the basis of $1.00 per $1,000 of protection, 
 is only $379,386 in excess of the contributions realized on the same basis from $92,- 
 215,000 of protection. 
 
 Starting out with almost double the amount of protection it would seem that a 
 very much greater excess in contributions would be realized than shown in the 
 above comparison, with and without the lapse factor. The reason for the small 
 excess in contribution is that the great bulk of the lapses is in the early years of 
 insurance. In the sixth column of Exhibit 3 it will be noted that $22,921,000 is 
 terminated by lapse in the second year of insurance. In the first year of insurance 
 $9,544,000 is terminated by lapse, notwithstanding the fact that the average exposure 
 in the first year is only from three to six months for those who lapse. In the third 
 year of insurance $12,921,000 is terminated by lapse. 
 
 In the first five years of insurance there are terminated by lapse $72,682,000 of 
 the entire $86,697,000 of terminations. 
 
 While the average lapse rate for the entire membership of a society may be 
 approximately uniform from year to year, when there is no unusual disturbance of 
 this average uniformity in the terminations by lapse, yet this fact does not give 
 any indication of the gains which may be expected from forfeitures by such termi- 
 nations. The experience of every life insurance organization shows that after the 
 tenth or fifteenth year lapses cease amongst the original entrants ; provided there have 
 
179. 
 
 been level contributions rates from ages of entry. Under the assessment plan mem- 
 bers at advanced ages, after 20, 25, and 30 years of membership, lapse in large num- 
 bers, and the heavy lapse rate materially increases the death rate. This fact can 
 be noted by reference to the experience of the 43 societies. The fact that there is 
 a continuous and comparatively regular rate of lapse amongst the new entrants tends 
 to mislead those persons who will insist upon drawing conclusions from averages. 
 
 A careful study of the following four tables should impress upon those who 
 have favored advance reductions in rates of contributions by anticipation of gains 
 from forfeitures the fact that this reduction must be made with extreme care and 
 conservatism. 
 
 ANNUAL PREMIUMS REDUCED BY FORFEITURE. 
 
 From column 4 of Exhibit 4 we find the present value of the yearly instalments 
 of claims, or "Single Premium," for $181,452,000 of protection to be $30,013,845, while 
 the present value of the yearly instalments of contributions is $2,018,413. 
 
 Dividing $30,013,845 by $2,018,413, we obtain the annual level premium per $1,000 
 of whole life protection to be $14.87, as against $16.62 without considering the lapse 
 factor, being an annual difference of $175, which is the reduction in premium per 
 $1,000 on account of gains from forfeitures. 
 
 In order to indicate the effect of the gains from lapses, the following comparisons 
 are submitted: 
 
 15-YEAR TERM. 
 
 Without lapse factor * $7.46 
 
 With lapse factor 7. 18 
 
 20- YEAR TERM. 
 
 Without lapse $ 8 . 28 
 
 With lapse 7 . 87 
 
 TERM TO AGE 70. 
 
 Without lapse $12 . 04 
 
 With lapse . . . . 1 1 ! 03 
 
 ORDINARY WHOLE LIFE. 
 
 Without lapse $16 . 62 
 
 With lapse 14 . 87 
 
 20-PAY LIFE. 
 
 Without lapse $22 . 70 
 
 With lapse 19.12 
 
 PAYMENTS LIMITED TO AGE 70. 
 
 Without lapse $17 . Q2 
 
 With lapse 15^6! 
 
 15-YEAR ENDOWMENT. 
 
 Without lapse $51 92 
 
 With lapse ...........'.['.'.'.'.'.'. 40.43 
 
 20-YEAR ENDOWMENT. 
 
 Without lapse $3(5 73 
 
 With lapse 30 72 
 
 ENDOWMENT AT AGE 70. 
 
 Without lapse $19.96 
 
 With lapse 17 . 53 
 
EXHIBIT III. 
 
 Years of 
 Insurance. 
 
 Insurance at Begin- 
 ning of Years. 
 
 Probability of 
 Dying. 
 
 Yearly Instalments 
 of Death Claims. 
 
 Lapse 
 Rate. 
 
 Yearly Terminations 
 By Lapse. 
 
 (1) 
 1 
 2 
 3 
 4 
 5 
 6 
 7 
 8 
 9 
 10 
 11 
 12 
 13 
 14 
 15 
 16 
 
 (2) 
 $181,452,000 
 170,792,000 
 146,794,000 
 132,920,000 
 122,429,000 
 113,887,000 
 107,151,000 
 101,640,000 
 97,010,000 
 92,844,000 
 89,651,000 
 87,213,000 
 85,205,000 
 83,843,000 
 82,696,000 
 81,702,000 
 
 (3) 
 .0061487 
 .0063067 
 .0064395 
 .0066977 
 .0069209 
 .0071708 
 .0074483 
 .0077657 
 .0081129 
 .0084797 
 .0088668 
 .0092870 
 .0097538 
 .0102693 
 .0108238 
 .0114440 
 
 (4) 
 $ 1,116,000 
 1,077,000 
 953,000 
 890,000 
 847,000 
 816,000 
 798,000 
 790,000 
 787,000 
 787,000 
 795,000 
 810,000 
 831,000 
 861,000 
 895,000 
 935,000 
 
 (5) 
 .05260 
 .13420 
 .08802 
 .07223 
 .06285 
 .05198 
 .04398 
 .03778 
 .03484 
 .02591 
 .01832 
 .01313 
 .00624 
 .00341 
 .00120 
 
 (6) 
 $ 9,544,000 
 22,921,000 
 12,921,000 
 9,601,000 
 7,695,000 
 5,920,000 
 4,713,000 
 3,840,000 
 3,379,000 
 2,406,000 
 1,643,000 
 1,198,000 
 531,000 
 286,000 
 99,000 
 
 17 
 
 80,767,000 
 
 0121460 
 
 981,000 
 
 
 
 18 
 
 79,786,000 
 
 .0128970 
 
 ,029,000 
 
 
 
 19 
 
 78,757,000 
 
 .0137512 
 
 ,083,000 
 
 
 
 20 
 
 77 674 000 
 
 0146767 
 
 140 000 
 
 
 
 21 
 
 76 534 000 
 
 0157054 
 
 202 000 
 
 
 
 22 
 
 75 332 000 
 
 0168587 
 
 270 000 
 
 
 
 23 
 
 74 062 000 
 
 0181200 
 
 342 000 
 
 
 
 24 
 
 72 720 000 
 
 0194994 
 
 418 000 
 
 
 
 25 
 
 71 302 000 
 
 0210513 
 
 501 000 
 
 
 
 26 
 
 69 801 000 
 
 0227504 
 
 1 588,000 
 
 
 
 27 
 
 68 213 000 
 
 0246434 
 
 1,681,000 
 
 
 
 28 
 
 66 532 000 
 
 0267240 
 
 1,778,000 
 
 
 
 29 
 
 64 754 000 
 
 0290330 
 
 1,880,000 
 
 
 
 30 
 
 62,874,000 
 
 0315711 
 
 1,985,000 
 
 
 
 31 
 
 60 889 000 
 
 0343904 
 
 2 094 000 
 
 
 
 32 
 
 58 795 000 
 
 0375202 
 
 2 206 000 
 
 
 
 33 
 
 56 589 000 
 
 0409620 
 
 2 318 000 
 
 
 
 34 
 
 54 271 000 
 
 0447753 
 
 2 430 000 
 
 
 
 35 
 
 51 841 000 
 
 0489767 
 
 2 539 000 
 
 
 
 36 
 
 49 302 000 
 
 0536489 
 
 2 645 000 
 
 
 
 37 
 
 46 657 000 
 
 0588122 
 
 2 744 000 
 
 
 
 38 
 
 43 913 000 
 
 0644912 
 
 2 832,000 
 
 
 
 39 
 
 41 081 000 
 
 0708113 
 
 2 909 000 
 
 
 
 40 
 41 
 
 38,172,000 
 35 203 000 
 
 .0777795 
 0854757 
 
 2,969,000 
 3,009,000 
 
 
 
 42 
 
 32 194 000 
 
 0939927 
 
 3 026 000 
 
 
 
 43 
 
 29 168 000 
 
 1034010 
 
 3 016 000 
 
 
 
 44 
 
 26 152 000 
 
 1138345 
 
 2 977 000 
 
 
 
 45 
 
 23 175 000 
 
 1253506 
 
 2 905 000 
 
 
 
 46 
 
 20 270 000 
 
 1380858 
 
 2 799 000 
 
 
 
 47 
 
 17 471 000 
 
 1521951 
 
 2 659 000 
 
 
 
 48 
 
 14 812 000 
 
 1677694 
 
 2 485 000 
 
 
 
 49 
 
 12 327 000 
 
 1849599 
 
 2,280,000 
 
 
 
 50 
 
 10 047 000 
 
 2040410 
 
 2,050,000 
 
 
 
 51 
 
 7 997 000 
 
 2250844 
 
 1,800,000 
 
 
 
 52 
 
 6 197 000 
 
 2483460 
 
 1 539 000 
 
 
 
 53 
 
 4 658 000 
 
 2741520 
 
 1 277 000 
 
 
 
 54 
 
 3 381 000 
 
 3025732 
 
 1 023 000 
 
 
 
 55 
 
 2 358 000 
 
 3341815 
 
 788 000 
 
 
 
 56 
 
 1 570 000 
 
 3687898 
 
 579,000 
 
 
 
 57 
 
 991 000 
 
 4076690 
 
 404 000 
 
 
 
 58 
 
 587 000 
 
 4497445 
 
 264 000 
 
 
 
 59 
 
 323 000 
 
 4984520 
 
 161 000 
 
 
 
 60 
 
 162 000 
 
 5493827 
 
 89 000 
 
 
 
 61 
 
 73 000 
 
 6027397 
 
 44 000 
 
 
 
 62 
 
 29 000 
 
 6551724 
 
 19,000 
 
 
 
 63 
 
 10 000 
 
 7000000 
 
 7 000 
 
 
 
 64 
 
 3 000 
 
 1 0000000 
 
 3 000 
 
 
 
 
 
 
 
 
 
 
 
 
 $ 94,755,000 
 
 
 $ 86,697,000 
 
EXHIBIT IV. 
 
 Years of 
 Insurance. 
 
 Yearly Instalments 
 of Claims. 
 
 Present Value of SI. 00 
 Due n Years Hence. 
 
 Present Value of Instalments of Death 
 Claims 
 
 (1) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 1 
 
 $ 1,116,000 
 
 .961538 
 
 $ 1,073,100.00 
 
 2 
 
 1,077,000 
 
 .924556 
 
 995,750.00 
 
 3 
 
 953,000 
 
 .888996 
 
 847,210.00 
 
 4 
 
 890,000 
 
 .854804 
 
 760,780.00 
 
 5 
 
 847,000 
 
 .821927 
 
 696,160.00 
 
 6 
 
 816,000 
 
 .790315 
 
 644,900.00 
 
 7 
 
 798,000 
 
 .759918 
 
 606,420.00 
 
 8 
 
 790,000 
 
 .730690 
 
 577,240.00 
 
 9 
 
 787,000 
 
 .702587 
 
 552,930.00 
 
 10 
 
 787,000 
 
 .675564 
 
 531,670.00 
 
 11 
 
 795,000 
 
 .649581 
 
 516,420.00 
 
 12 
 
 810,000 
 
 .624597 
 
 505,930.00 
 
 13 
 
 831,000 
 
 .600574 
 
 499,080.00 
 
 14 
 
 861,000 
 
 .577475 
 
 497,200.00 
 
 15 
 
 895,000 
 
 .555265 
 
 496,960.00$ 9,801,750.00 
 
 16 
 
 935,000 
 
 .533908 
 
 499,210.00 
 
 17 
 
 981,000 
 
 .513373 
 
 503,620.00 
 
 18 
 
 1,029,000 
 
 .493628 
 
 507,950.00 
 
 19 
 
 1,083,000 
 
 .474642 
 
 514,040.00 
 
 20 
 
 1,140,000 
 
 .456387 
 
 520,270.00 12,346,840.00 
 
 21 
 
 1,202,000 
 
 .438834 
 
 527,470.00 
 
 22 
 
 1,270,000 
 
 .421955 
 
 535,880.00 
 
 23 
 
 1,342,000 
 
 .405726 
 
 544,480.00 
 
 24 
 
 1,418,000 
 
 .390121 
 
 553,200.00 
 
 25 
 
 1,501,000 
 
 .375117 
 
 563,050.00 
 
 26 
 
 1,588,000 
 
 .360689 
 
 572,770.00 
 
 27 
 
 1,681,000 
 
 .346817 
 
 583,000.00 
 
 28 
 
 1,778,000 
 
 .333477 
 
 592,910.00 
 
 29 
 
 1,880,000 
 
 .320651 
 
 602,820.00 
 
 30 
 
 1,985,000 
 
 .308319 
 
 612,010.00 
 
 31 
 
 2,094,000 
 
 .296460 
 
 620,800.00 
 
 32 
 
 2,206,000 
 
 .285058 
 
 628,850.00 
 
 33 
 
 2,318,000 
 
 .274094 
 
 635,350.00 
 
 34 
 
 2,430,000 
 
 .263552 
 
 640,440.00 
 
 35 
 
 2,539,000 
 
 .253415 
 
 643,410.00 21,203,280.00 
 
 36 
 
 2,645,000 
 
 .243669 
 
 644,510.00 
 
 37 
 
 2,744,000 
 
 .234297 
 
 642,910.00 
 
 38 
 
 2,832,000 
 
 .225285 
 
 638,000.00 
 
 39 
 
 2,909,000 
 
 .216621 
 
 630,140.00 
 
 40 
 
 2,969,000 
 
 .208289 
 
 618,420.00 
 
 41 
 
 3,009,000 
 
 .200278 
 
 602,630.00 
 
 42 
 
 3,026,000 
 
 .192575 
 
 582,730.00 
 
 43 
 
 3,016,000 
 
 .185168 
 
 558,470.00 
 
 44 
 
 2,977,000 
 
 . 178046 
 
 530,040.00 
 
 45 
 
 2,905,000 
 
 .171198 
 
 497,340.00 
 
 46 
 
 2,799,000 
 
 .164614 
 
 460,750.00 
 
 47 
 
 2,659,000 
 
 . 158283 
 
 420,970.00 
 
 48 
 
 2,485,000 
 
 .152195 
 
 378,210.00 
 
 49 
 
 2,280,000 
 
 . 146341 
 
 333,660.00 
 
 50 
 
 2,050,000 
 
 .140713 
 
 288,460.00 
 
 51 
 
 1,800,000 
 
 .135301 
 
 243,540.00 
 
 52 
 
 1,539,000 
 
 . 130097 
 
 200,220.00 
 
 53 
 
 1,277,000 
 
 .125093 
 
 159,740.00 
 
 54 
 
 1,023,000 
 
 . 120282 
 
 123,050.00 
 
 55 
 
 788,000 
 
 .115656 
 
 91,138.00 
 
 56 
 
 579,000 
 
 .111207 
 
 64,389.00 
 
 57 
 
 404,000 
 
 .106930 
 
 43,200.00 
 
 58 
 
 264,000 
 
 .102817 
 
 27,144.00 
 
 59 
 
 101 ,000 
 
 .098863 
 
 15,917.00 
 
 60 
 
 89,000 
 
 .095060 
 
 8,460.40 
 
 61 
 
 44,000 
 
 .091404 
 
 4,021.80 
 
 62 
 
 19,000 
 
 .087889 
 
 1,669.90 
 
 63 
 
 7,000 
 
 .084508 
 
 591.56 
 
 64 
 
 3,000 
 
 .081258 
 
 243.78 
 
 
 $94,755,000 
 
 
 $30,013,845.44 
 
EXHIBIT V. 
 
 Ins;:rance 
 Protection. 
 
 Probability of 
 Living Less 
 Probability 
 of Lapse. 
 
 Years of 
 Insurance. 
 
 Insurance at Beginning 
 of Years Subject to 
 Contributions. 
 
 Assumed Annual 
 Premium Paid 
 in Advance. 
 
 Yearly Instal- 
 ments of 
 Contributions. 
 
 (1) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 (5) 
 
 (6) 
 
 $181,452,000 
 
 .9412513 
 
 1 
 
 $181,452,000 
 
 $1.00 
 
 $181,452 
 
 181,452,000 
 
 .8594933 
 
 2 
 
 170,792,000 
 
 1.00 
 
 170,792 
 
 170,792,000 
 
 .9054905 
 
 3 
 
 146,794,000 
 
 1.00 
 
 146,794 
 
 146,794,000 
 
 .9210723 
 
 4 
 
 132,920,000 
 
 1.00 
 
 132,920 
 
 132,920,000 
 
 .9302291 
 
 5 
 
 122,429,000 
 
 .00 
 
 122,429 
 
 122,429,000 
 
 .9408492 
 
 6 
 
 113,887,000 
 
 .00 
 
 113,887 
 
 113,887,000 
 
 .9485717 
 
 7 
 
 107,151,000 
 
 .00 . 
 
 107,151 
 
 107,151,000 
 
 .9544543 
 
 8 
 
 101,640,000 
 
 .00 
 
 101,640 
 
 101,640,000 
 
 .9570471 
 
 9 
 
 97,010,000 
 
 .00 
 
 97,010 
 
 97,010,000 
 
 .9656103 
 
 10 
 
 92,844,000 
 
 .00 
 
 92,844 
 
 92,844,000 
 
 .9728132 
 
 11 
 
 89,651,000 
 
 .00 
 
 89,651 
 
 89,651,000 
 
 .9769830 
 
 12 
 
 87,213,000 
 
 .00 
 
 87,213 
 
 87,213,000 
 
 .9840062 
 
 13 
 
 85,205,000 
 
 .00 
 
 85,205 
 
 85,205,000 
 
 .9863207 
 
 14 
 
 83,843,000 
 
 .00 
 
 83,843 
 
 83,843,000 
 
 .9879762 
 
 15 
 
 82,696,000 
 
 .00 
 
 82,696 
 
 82,696,000 
 
 .9891762 
 
 16 
 
 81,702,000 
 
 1.00 
 
 81,702 
 
 81,702,000 
 
 .9885560 
 
 17 
 
 80,767,000 
 
 1.00 
 
 80,767 
 
 80,767,000 
 
 .9878540 
 
 18 
 
 79,786,000 
 
 1.00 
 
 79,786 
 
 79,786,000 
 
 .9871030 
 
 19 
 
 78,757,000 
 
 1.00 
 
 78,757 
 
 78,757,000 
 
 .9862488 
 
 20 
 
 77,674,000 
 
 1.00 
 
 77,674 
 
 77,674,000 
 
 .9853233 
 
 21 
 
 76,534,000 
 
 .00 
 
 76,534 
 
 76,534,000 
 
 .9842946 
 
 22 
 
 75,332,000 
 
 .00 
 
 75,332 
 
 75,332,000 
 
 .9831413 
 
 23 
 
 74,062,000 
 
 .00 
 
 74,062 
 
 74,062,000 
 
 .9818800 
 
 24 
 
 72,720,000 
 
 .00 
 
 72,720 
 
 72,720,000 
 
 .9805006 
 
 25 
 
 71,302,000 
 
 .00 
 
 71,302 
 
 71,302,000 
 
 .9789487 
 
 26 
 
 69,801,000 
 
 .00 
 
 69,801 
 
 69,801,000 
 
 .9772496 
 
 27 
 
 68,213,000 
 
 .00 
 
 68,213 
 
 68,213,000 
 
 .9753566 
 
 28 
 
 66,532,000 
 
 .00 
 
 66,532 
 
 66,532,000 
 
 .9732760 
 
 29 
 
 64,754,000 
 
 .00 
 
 64,754 
 
 64,754,000 
 
 .9709670 
 
 30 
 
 62,874,000 
 
 .-00 
 
 62,874 
 
 62,874,000 
 
 .9684289 
 
 31 
 
 60,889,000 
 
 .00 
 
 60,889 
 
 60,889,000 
 
 .9656096 
 
 32 
 
 58,795,000 
 
 .00 
 
 58,795 
 
 58,795,000 
 
 .9624798 
 
 33 
 
 56,589,000 
 
 .00 
 
 56,589 
 
 56,589,000 
 
 .9590380 
 
 34 
 
 54,271,000 
 
 .00 
 
 54,271 
 
 54,271,000 
 
 .9552247 
 
 35 
 
 51,841,000 
 
 .00 
 
 51,841 
 
 51,841,000 
 
 .9510233 
 
 36 
 
 49,302,000 
 
 .00 
 
 49,302 
 
 49,302,000 
 
 .9463511 
 
 37 
 
 46,657,000 
 
 .00 
 
 46,657 
 
 46,657,000 
 
 .9411878 
 
 38 
 
 43,913,000 
 
 .00 
 
 43,913 
 
 43,913,000 
 
 .9355088 
 
 39 
 
 41,081,000 
 
 .00 
 
 41,081 
 
 41,081,000 
 
 .9291887 
 
 40 
 
 38,172,000 
 
 1.00 
 
 38,172 
 
 38,172,000 
 
 .9222205 
 
 41 
 
 35,203,000 
 
 1.00 
 
 35,203 
 
 35,203,000 
 
 .9145243 
 
 42 
 
 32,194,000 
 
 1.00 
 
 32,194 
 
 32,194,000 
 
 .9060073 
 
 43 
 
 29,168,000 
 
 1.00 
 
 29,168 
 
 29,168,000 
 
 .8965990 
 
 44 
 
 26,152,000 
 
 1.00 
 
 26,152 
 
 26,152,000 
 
 .8861655 
 
 45 
 
 23,175,000 
 
 1.00 
 
 23,175 
 
 23,175,000 
 
 .8746494 
 
 46 
 
 20,270,000 
 
 1.00 
 
 20,270 
 
 20,270,000 
 
 .8619142 
 
 47 
 
 17,471,000 
 
 1.00 
 
 17,471 
 
 17,471,000 
 
 .8478049 
 
 48 
 
 14,812,000 
 
 1.00 
 
 14,812 
 
 14,812,000 
 
 .8322306 
 
 49 
 
 12,327,000 
 
 1.00 
 
 12,327 
 
 12,327,000 
 
 .8150401 
 
 50 
 
 10,047,000 
 
 1.00 
 
 10,047 
 
 10,047,000 
 
 .7959590 
 
 51 
 
 7,997,000 
 
 1.00 
 
 7,997 
 
 7,997,000 
 
 .7749156 
 
 52 
 
 6,197,000 
 
 1.00 
 
 6,197 
 
 6,197,000 
 
 .7516540 
 
 53 
 
 4,658,000 
 
 1.00 
 
 4,658 
 
 4,658,000 
 
 .7258480 
 
 54 
 
 3,381,000 
 
 1.00 
 
 3,381 
 
 3,381,000 
 
 .(>< 174268 
 
 55 
 
 2,358,000 
 
 1.00 
 
 2,358 
 
 2,358,000 
 
 .6658185 
 
 56 
 
 1,570,000 
 
 1.00 
 
 1,570 
 
 1,570,000 
 
 .6312102 
 
 57 
 
 991,000 
 
 1 .00 
 
 991 
 
 991,000 
 
 .5923310 
 
 58 
 
 587,000 
 
 1 . 00 
 
 587 
 
 587,000 
 
 .5502555 
 
 59 
 
 323,000 
 
 1.00 
 
 323 
 
 323,000 
 
 .5015480 
 
 60 
 
 162,000 
 
 1.00 
 
 162 
 
 162,000 
 
 .4506173 
 
 61 
 
 73,000 
 
 1.00 
 
 73 
 
 73,000 
 
 .3972603 
 
 62 
 
 29,000 
 
 1.00 
 
 29 
 
 29,000 
 
 .3448276 
 
 63 
 
 10,000 
 
 1.00 
 
 10 
 
 10,000 
 
 .3000000 
 
 64 
 
 3,000 
 
 1.00 
 
 3 
 
 3,000 
 
 .0000000 
 
 65 
 
 0,000 
 
 
 
 
 Total of yearly instalments of contributions receivable $3,547,005 
 
EXHIBIT VI, 
 
 Years of 
 Insurance. 
 
 Amount of Annual 
 Contributions. 
 
 Present Value of $1.00 
 Due n Years Hence. 
 
 Present Value of Yearly Instalments of 
 Contributions. 
 
 (1) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 
 1 
 
 $181,452 
 
 1.000000 
 
 $ 181,452.00 
 
 
 2 
 
 170,792 
 
 .961538 
 
 164,223.00 
 
 
 3 
 
 146,794 
 
 .924556 
 
 135,719.00 
 
 
 4 
 
 132,920 
 
 .888996 
 
 118,166.00 
 
 
 5 
 
 122,429 
 
 .854804 
 
 104,635.00 
 
 
 6 
 
 113,887 
 
 .821927 
 
 93,606.80 
 
 
 7 
 
 107,151 
 
 .790315 
 
 84,682.70 
 
 
 8 
 
 101.640 
 
 .759918 
 
 77,237.90 
 
 
 9 
 
 97,010 
 
 .730690 
 
 70,884.30 
 
 
 10 
 
 92,844 
 
 .702587 
 
 65,230.70 
 
 
 11 
 
 89,651 
 
 .675564 
 
 60,564.80 
 
 
 12 
 
 87,213 
 
 .649581 
 
 56,651.90 
 
 
 13 
 
 85,205 
 
 .624597 
 
 53,219.10 
 
 
 14 
 
 83,843 
 
 .600574 
 
 50,354.00 
 
 
 15 
 
 82,696 
 
 .577475 
 
 47,755.00$ 1,364,382 
 
 .20 
 
 16 
 
 81,702 
 
 .555265 
 
 45,367.30 
 
 
 17 
 
 80,767 
 
 .533908 
 
 43,123.20 
 
 
 18 
 
 79,786 
 
 .513373 
 
 40,960.90 
 
 
 19 
 
 78,757 
 
 .493628 
 
 38,877.70 
 
 
 20 
 
 77,674 
 
 .474642 
 
 36,868.40 1,569,579 
 
 .70 
 
 21 
 
 76,534 
 
 .456387 
 
 34,930.10 
 
 
 22 
 
 75,332 
 
 .438834 
 
 33,059.30 
 
 
 23 
 
 74,062 
 
 .421955 
 
 31,251.90 
 
 
 24 
 
 72,720 
 
 .405726 
 
 29,505.40 
 
 
 25 
 
 71,302 
 
 .390121 
 
 27,817.40 
 
 
 26 
 
 69,801 
 
 .375117 
 
 26,184.40 
 
 
 27 
 
 68,213 
 
 .360689 
 
 24,604.50 
 
 
 28 
 
 66,532 
 
 .346817 
 
 23,075.20 
 
 
 29 
 
 64,754 
 
 .333477 
 
 21,594.80 
 
 
 30 
 
 62,874 
 
 .320651 
 
 20,161.40 
 
 
 31 
 
 60,889 
 
 .308319 
 
 18,773.90 
 
 
 32 
 
 58,795 
 
 .296460 
 
 17,431.00 
 
 
 33 
 
 56,589 
 
 .285058 
 
 16,131.80 
 
 
 34 
 
 54,271 
 
 .274094 
 
 14,875.90 
 
 
 35 
 
 51,841 
 
 .263552 
 
 13,663.30 1,922,640 
 
 .00 
 
 36 
 
 49,302 
 
 .253415 
 
 12,494.10 
 
 
 37 
 
 46,657 
 
 .243669 
 
 11,369.30 
 
 
 38 
 
 43,913 
 
 .234297 
 
 10,289.10 
 
 
 39 
 
 41,081 
 
 .225285 
 
 9,255.40 
 
 
 40 
 
 38,172 
 
 .216621 
 
 8,269.20 
 
 
 41 
 
 35,203 
 
 .208289 
 
 7,332.70 
 
 
 42 
 
 32,194 
 
 .200278 
 
 6,448.00 
 
 
 43 
 
 29,168 
 
 .192575 
 
 5,617.30 
 
 
 44 
 
 26,152 
 
 .185168 
 
 4,842.80 
 
 
 45 
 
 23,175 
 
 .178046 
 
 4,126.40 
 
 
 46 
 
 20,270 
 
 .171198 
 
 3,470.40 
 
 
 47 
 
 17,471 
 
 .164614 
 
 2,876.10 
 
 
 48 
 
 14,812 
 
 . 158283 
 
 2,344.60 
 
 
 49 
 
 12,327 
 
 .152195 
 
 1,876.20 
 
 
 50 
 
 10,047 
 
 . 146341 
 
 1,470.40 
 
 
 51 
 
 7,997 
 
 .140713 
 
 1,125.30 
 
 
 52 
 
 6,197 
 
 .135301 
 
 838.50 
 
 
 53 
 
 4,658 
 
 . 130097 
 
 606.00 
 
 
 54 
 
 3,381 
 
 .125093 
 
 423.00 
 
 
 55 
 
 2,358 
 
 . 120282 
 
 283.60 
 
 
 56 
 
 1,570 
 
 .115656 
 
 181.60 
 
 
 57 
 
 991 
 
 .111207 
 
 110.20 
 
 
 58 
 
 587 
 
 . 106930 
 
 62.80 
 
 
 59 
 
 323 
 
 .102817 
 
 33.20 
 
 
 60 
 
 162 
 
 .098863 
 
 16.00 
 
 
 61 
 
 73 
 
 .095060 
 
 6.90 
 
 
 62 
 
 29 
 
 .091404 
 
 2.70 
 
 
 63 
 
 10 
 
 .087889 
 
 .88 
 
 
 64 
 
 3 
 
 .084508 
 
 .26 
 
 
 
 S3, 047,005 
 
 
 $2,018,412.94 
 
184 
 
 FEASIBILITY OF EMPLOYING THE LAPSE FACTOR. 
 
 It is very reasonably contended that the immediate need of those who generally 
 seek protection in fraternal orders is to bring within their means the contributions 
 for sufficiently large benefits to support their families. To do this, it is argued that 
 every advantage must be taken by which the rate of contribution can be reduced. 
 
 For illustration, it may be stated that the net annual level premium at age 35 
 for $1,000 of protection according to the National Fraternal Congress Table of 
 Mortality, is $29.11, where the rate of mortality alone is considered. However, if it 
 is assumed that three .per cent interest can be earned on the excess contributions 
 over current insurance cost, then the premium can be reduced to $18.91. If three 
 and one-half per cent interest be assumed, the rate of contribution need be only 
 $17.71, and with a four per cent interest assumption, the rate would be $16.62. The 
 higher the rate of interest, the greater the reduction in premium. 
 
 No one will deny the feasibility, practicability, or desirability of allowing for 
 some interest earning in the computation of rates of contribution. The earnings from 
 interest go to increase the accumulation, and avoid the need for the members to 
 contribute so largely toward the principal of the required accumulation to maintain a 
 level pemium. The receipts from interest come from other sources than from the 
 contributions of members for whose benefit these receipts are used. 
 
 On the assumption of three per cent interest earnings, there has been no hesitancy 
 about applying that earning to an advance reduction of the rate of contribution 
 from $29.11 to $18.91. If it can be assumed that a sufficient amount can be de- 
 pended upon from forfeitures of withdrawing members to equal ten per cent of 
 the contribution of persistent members, then why should not this amount be anticipated 
 in the computation of premiums, and ten per cent at once deducted from the $18.91 
 rate, the $17.71, or $16.62 rates? 
 
 It has been shown that mathematical computations can be made to include the 
 lapse factor, on the same principle as when including the mortality and interest 
 factors, when a lapse rate is given. And by assuming the lapse rate of a large 
 society for entry age 35 the contribution rates have been computed and given in 
 comparison with contributions where lapse is not considered. The percentages of 
 decrease are as follows : 
 
 On 15-year term 4% 
 
 On 2O-year term 5% 
 
 On term to age 70 9% 
 
 On whole life 10% 
 
 On limited pay to age 70 13% 
 
 On endowment to age 70 13% 
 
 On 2O-limited pay 15% 
 
 On 2O-year endowment 17% 
 
 On 15-year endowment 20% 
 
 The above reductions in contribution rates, for the several forms of certificates, 
 were obtained upon the assumption of the same lapse rate under each form. This 
 is not true. The lapse is very much larger on term than whole life certificates. Is 
 larger on whole life without than with profit. Is larger on any whole life form 
 than on endowment certificates. Hence if the lapse factor were employed, different 
 rates would be necessary for different forms of contracts ; otherwise the percentage 
 reduction is exaggerated. 
 
 Admitting, however, that the introduction of the lapse factor would reduce the 
 
185 
 
 contribution rate in anticipation of gains from forfeitures by lapse, then why not 
 employ it in the computation of rates, even though necessitating different assumptions 
 for different societies and for different forms of contracts in the same society. 
 
 A writer in a recent report on the experience of a prominent fraternal beneficiary 
 society has strongly advocated the use of the lapse factor in premium calculations, 
 and vigorously combats the general objections almost universally urged by actuaries 
 against its employment. 
 
 It is well known that I take a different view of the lapse factor, and it is the 
 present purpose to give the facts upon which I have based my conclusions. I have 
 no partiality nor prejudice in the matter, and have no pet theory to sustain. The 
 facts in the case have formed for me my opinion. 
 
 In the outset the acknowledgment is frankly made that no one can possibly foretell 
 the actual mortality experience of any society. A fair estimate is the best that 
 can be expected in advance. Notwithstanding such admission, I have not hesitated 
 to advise the acceptance of some mortality experience as a basis for calculating rates 
 of contribution which are to provide for definitely promised benefits. 
 
 It is freely admitted that no one can foretell the interest rate that can be earned 
 on money during the next 20, 30, 40 or 50 years, nor can any one certainly predict 
 that the funds will always be safely invested, and yet I have unhesitatingly recom- 
 mended rates of contribution based upon a definitely assumed rate of interest, and 
 upon the presumption that the funds could be securely invested and honestly handled. 
 
 In view of such acknowledgment and admission, why should I hesitate to assume 
 some definite lapse rate, based upon some well authenticated experience, and in- 
 troduce that into the calculation of premiums, as well as to use the other two un- 
 certain factors of mortality and interest rates, to say nothing of the equally uncertain 
 condition of safe investment. 
 
 The reason for recommending rates of contribution based upon assumed rates of 
 mortality and interest, is because of the close, and usually accurate, estimate that 
 can be made of future mortality experience and interest earning, and of the com- 
 paratively simple mathematical calculations involved in the use of these two factors. 
 
 The reason for questioning the advisability of the use of the lapse factor is 
 because of (a) its uncertainty; (b) its variable and disappointing character; (c) its 
 subject to control by the human volition; (d) its effect upon expenses; (e) its effect 
 upon the reserve accumulation; (f) the complications incident to making an estimate 
 of a future lapse rate from any past experience. 
 
 To indicate how uncertain it would be as a factor in computations, I submit 
 the following rates of lapse per 1,000 members, at the given ages, for the societies 
 mentioned : 
 
 If the lapse rate of the Ancient Order of United Workmen were assumed for the 
 
 Ages. 
 
 A. 0. of F. 
 
 M. W. of A. 
 
 R. N. A. 
 
 R.A. 
 
 A. 0. U. W. 
 
 20 
 
 95.0 
 
 165.7 
 
 86.4 
 
 38.7 
 
 116.9 
 
 25 
 
 65 8 
 
 126 6 
 
 62 4 
 
 33 4 
 
 158 7 
 
 30. 
 
 44.8 
 
 81 6 
 
 42.7 
 
 27.8 
 
 103.1 
 
 35 
 40 
 
 30.1 
 17 9 
 
 56.7 
 43 1 
 
 25.0 
 25 2 
 
 24.0 
 20 2 
 
 79.6 
 59 5 
 
 45 . 
 
 10 4 
 
 32 9 
 
 21 4 
 
 16 2 
 
 43 8 
 
 50 
 55 
 
 6.1 
 3.6 
 
 15.3 
 5.7 
 
 15.4 
 7.6 
 
 12.7 
 9.3 
 
 27.7 
 12.6 
 
 60 
 
 2 6 
 
 2 7 
 
 
 6 2 
 
 8 5 
 
 
 
 
 
 
 
186 
 
 Royal Arcanum, the resulting contributions would be insufficient, measured by the 
 Royal Arcanum lapse rate. If the Royal Arcanum's past experience were assumed 
 for that and other societies, the reduction in rates of contribution would be so in- 
 significant as not to be worth consideration. 
 
 How would it be possible to construct any uniform schedule of rates that would 
 conform to these varying rates of secession? 
 
 If there were an exhibit of a larger number of societies, the variance would be 
 more striking, and the demonstration more complete of the impossibility of har- 
 monizing the differences into a uniform rate of lapse suitable for the different or- 
 ganizations. 
 
 An analysis of the experience of each society would disclose a different rate of 
 lapse in different localities and in different occupations. The difference due to different 
 localities is well established by the following showing of lapse rates in several juris- 
 dictions of the Ancient Order of United Workmen : 
 
 A. O. U. W. LAPSE RATE IN DIFFERENT JURISDICTIONS. 
 
 Ages. 
 
 N.Y. 
 
 Cal. 
 
 Mo. 
 
 Mass. 
 
 Pa. 
 
 Ga. 
 
 21 
 
 152.8 
 
 100.0 
 
 266.9 
 
 9 7 
 
 102 8 
 
 219 2 
 
 25 
 
 147.1 
 
 125.8 
 
 201.0 
 
 36 2 
 
 188 8 
 
 388 8 
 
 30 
 
 108.1 
 
 86.6 
 
 128.1 
 
 22.3 
 
 115 7 
 
 238 1 
 
 35 
 
 80.8 
 
 71.7 
 
 97.0 
 
 16.9 
 
 84 2 
 
 187 4 
 
 40 
 
 60.3 
 
 50.3 
 
 78.1 
 
 12.0 
 
 61 3 
 
 162 5 
 
 45 
 
 43.5 
 
 35.6 
 
 53.8 
 
 9.0 
 
 46.4 
 
 115 3 
 
 50 
 
 23.4 
 
 24.8 
 
 29.7 
 
 6.2 
 
 32.4 
 
 77.8 
 
 55 
 
 9.0 
 
 13.5 
 
 11.0 
 
 4.2 
 
 18.7 
 
 16.7 
 
 60 
 
 5.7 
 
 9.5 
 
 8.8 
 
 2.9 
 
 13.3 
 
 
 
 
 
 
 
 
 
 The aggregate lapse rate for the thirteen jurisdictions, as given in the first table, 
 would not fit any one of the above separate jurisdictions. It would simply be ruinous 
 for Massachusetts, since the amount to be realized from forfeitures would not equal 
 one-fourth of the assumed gains. The application of such a rate would bring the 
 ridiculous result of throwing one of the best managed jurisdictions into the deficiency 
 class. 
 
 The following from the recent experience of the Manchester Unity will emphasize 
 the effect of locality and occupation, as grouped by its actuary : 
 
 MANCHESTER UNITY LAPSE EXPERIENCE PER 1,000 MEMBERS. 
 
 
 Non-Manufacturing. 
 
 Textile. 
 
 Manu 
 tile 
 A 
 
 Facturing (ex-Tex- 
 ) , Mining and 
 letropolitan. 
 
 Rural 
 Lodges. 
 
 Urban 
 Lodges 
 
 All 
 Lodges. 
 
 Rural 
 Lodges. 
 
 Urban 
 Lodges: 
 
 All 
 Lodges. 
 
 Rural 
 Lodges. 
 
 Urban 
 Lodges. 
 
 All 
 Lodges. 
 
 20 
 
 48. 
 38. 
 25. 
 17. 
 12. 
 9. 
 5. 
 5. 
 2. 
 3. 
 
 74. 
 64. 
 39. 
 27. 
 16. 
 9. 
 4. 
 6. 
 1. 
 0. 
 
 53. 
 43. 
 28. 
 19. 
 13. 
 9. 
 5. 
 5. 
 2. 
 2. 
 
 28. 
 28. 
 22. 
 14. 
 12. 
 8. 
 3. 
 2. 
 2. 
 2. 
 
 68. 
 
 63. 
 48. 
 33. 
 19. 
 
 12. 
 9. 
 
 8. 
 7. 
 2. 
 
 57. 
 53. 
 40. 
 
 27. 
 17. 
 11. 
 7. 
 6. 
 5. 
 2. 
 
 49. 
 38. 
 27. 
 25. 
 12. 
 8. 
 7. 
 5. 
 2 
 
 o! 
 
 85. 
 76. 
 55. 
 37. 
 20. 
 10. 
 9. 
 3. 
 3. 
 3. 
 
 71. 
 63. 
 46. 
 33. 
 17. 
 9. 
 8. 
 4. 
 3. 
 2. 
 
 25 
 
 30 
 
 35 . . 
 
 40 
 
 45 
 
 50 
 
 55 
 
 60 
 
 65 . . 
 
 
187 
 
 The foregoing statistics are from "aggregate" tables, and show the lapse rate at 
 each age for all members at that age, without reference to their ages at entry or 
 duration of membership. These statistics clearly demonstrate that the larger per cent 
 of all lapses is at the low ages, and clearly prove that the material reduction in rates 
 of contribution on account of lapses could only be made at the low ages, assuming 
 that such statistics could be accepted as conclusive. 
 
 However, the above statistics from "aggregate'' tables do not disclose nor discover 
 all of the objections which can be urged against the use of lapse rate. When we 
 investigate lapse experiences, as given in "select" tables, we find that the larger per- 
 centage of lapses not only occur at the young ages, but likewise in the early years 
 of membership. 
 
 Of a given number who enter at age 20, many will lapse in the second year, 
 until lapse virtually ceases after twelve or fifteen years of membership. Therefore, 
 the members who entered at age 20 and attained to age 35 would become persistent, 
 and the lapse rate among them would not compare with the lapse rate among members 
 in their first year of entry at age 35. 
 
 To instance : The lapse rate of members, who entered at age 20, in the fifteenth 
 year of membership, at age 35, by the Modern Woodmen experience, was eight in 
 the 1,000. The lapse rate of members who entered at age 35, in the first year of 
 membership, was 93 in the 1,000. The "aggregate" lapse rate for all members at 
 age 35 is shown to be 57 in the 1,000. 
 
 Assuredly no one will contend that accurate results can be obtained from grouping 
 together persons of the same attained age with such a wide difference in rate of 
 lapse. This, however, is done when "aggregate" tables are used. To use "select" 
 tables would be impracticable, because of the complications introduced into the 
 calculation of rates of contribution. 
 
 Some one may say that "select" tables also show different death rates for the 
 fifteenth year of members who entered at 35. That is true. The Woodmen ex- 
 perience shows a death rate for members who entered at 20, in their fifteenth year 
 of membership, at attained age 35, of eight in the 1,000; while for members who 
 entered at 35, in the first year of membership, it shows three in the 1,000. The 
 "aggregate" death rate for all members at age 35 is six in the 1,000. 
 
 It is also true that when the "aggregate" lapse rate is lower than the "select" rate 
 for any age, say at 35, it would give a schedule of assessment rates, deduced therefrom, 
 on the side of safety. 
 
 While that is true, it must be remembered that the rate of lapse rapidly falls off 
 after the second year of membership, the effect of which is only partially disclosed 
 in the "aggregate" table, and there must result an error in calculations which will 
 be cumulative in character and ultimately end in trouble. The Modern Woodmen ex- 
 perience is conveniently at hand, and since it is similar to all other experiences which 
 have come under my observation, I give the lapse rate and death rate of that Society 
 by membership years, from one to fifteen, for the following sample entry ages (mem- 
 bers not admitted above age 45) : 
 
 As before intimated, it might be argued that wrong results would as likely proceed 
 from the use of "aggregate" mortality tables as from the "aggregate" method in 
 determining lapse rate, for it is seen that the death rate persistently tends to in- 
 crease with the years of membership in somewhat the same ratio to the decrease 
 in the lapse rate with duration of membership. 
 
 However, it has been found perfectly feasible and absolutely safe to allow for this 
 increase in death rate, and to avoid the effect of the medical selection during the 
 
188 
 
 OF A. LAPSE AND MORTALITY EXPERIENCE PER 1,000. 
 
 Years 
 
 20. 
 
 25. 
 
 30. 
 
 35. 
 
 40. 
 
 45. 
 
 of Ins. 
 
 Lapse 
 Rate. 
 
 Death 
 Rate. 
 
 Lapse 
 Rate. 
 
 Death 
 Rate. 
 
 Lapse 
 Rate. 
 
 Death 
 Rate. 
 
 Lapse 
 Rate. 
 
 Death 
 Rate. 
 
 Lapse 
 Rate. 
 
 Death 
 Rate. 
 
 Lapse 
 Rate. 
 
 Death 
 Rate. 
 
 1 
 
 184. 
 
 3.25 
 
 157. 
 
 3.06 
 
 126. 
 
 2.61 
 
 93. 
 
 3.02 
 
 85. 
 
 3.39 
 
 66. 
 
 2.91 
 
 2 
 
 180. 
 
 4.23 
 
 144. 
 
 3.01 
 
 109. 
 
 3.39 
 
 85. 
 
 2.92 
 
 68. 
 
 3.71 
 
 63. 
 
 5.27 
 
 3 
 
 129. 
 
 4.24 
 
 101. 
 
 3.44 
 
 72. 
 
 4.00 
 
 57. 
 
 4.69 
 
 48. 
 
 3.84 
 
 32. 
 
 6.39 
 
 4 
 
 97. 
 
 3.82 
 
 72. 
 
 3.74 
 
 51. 
 
 3 . 13 
 
 39. 
 
 5.27 
 
 34. 
 
 2.28 
 
 24. 
 
 6.53 
 
 5 
 
 68. 
 
 5.79 
 
 52. 
 
 3.51 
 
 39. 
 
 4.83 
 
 26. 
 
 4.56 
 
 23. 
 
 6.23 
 
 17. 
 
 7.09 
 
 6 
 
 55. 
 
 6.09 
 
 39. 
 
 4.59 
 
 30. 
 
 2.81 
 
 24. 
 
 4.94 
 
 16. 
 
 5.00 
 
 11. 
 
 8.44 
 
 7 
 
 40. 
 
 6.43 
 
 31. 
 
 5.49 
 
 24. 
 
 4.82 
 
 18. 
 
 4.66 
 
 13. 
 
 6.92 
 
 13. 
 
 8.20 
 
 8 
 
 42. 
 
 5.52 
 
 21. 
 
 4.53 
 
 17. 
 
 5.82 
 
 17. 
 
 5.34 
 
 12. 
 
 8.12 
 
 8. 
 
 8.85 
 
 9 
 
 32. 
 
 4.04 
 
 17. 
 
 4.27 
 
 19. 
 
 5.38 
 
 12. 
 
 5.43 
 
 9. 
 
 7.36 
 
 6. 
 
 9.04 
 
 10 
 
 21. 
 
 1.47 
 
 12. 
 
 4.63 
 
 14. 
 
 6.27 
 
 10. 
 
 5.75 
 
 7 . 
 
 9.71 
 
 8. 
 
 15.82 
 
 11 
 
 26. 
 
 3.98 
 
 9. 
 
 3.59 
 
 9. 
 
 4.17 
 
 14. 
 
 6.25 
 
 6. 
 
 10.85 
 
 6. 
 
 7.83 
 
 12 
 
 12. 
 
 5.95 
 
 7. 
 
 2.45 
 
 10. 
 
 2.55 
 
 7. 
 
 8.56 
 
 5. 
 
 8.99 
 
 5. 
 
 20.98 
 
 13 
 
 4. 
 
 3.58 
 
 13. 
 
 7.34 
 
 5. 
 
 8.43 
 
 4. 
 
 4.84 
 
 4. 
 
 6.67 
 
 
 10.96 
 
 14 
 
 14. 
 
 4.65 
 
 3. 
 
 4.09 
 
 8. 
 
 4.35 
 
 9. 
 
 6.20 
 
 5. 
 
 11.58 
 
 5.' 
 
 15.58 
 
 15 
 
 8. 
 
 8.06 
 
 2. 
 
 8.21 
 
 5. 
 
 9.38 
 
 12. 
 
 11.73 
 
 3. 
 
 14.64 
 
 2. 
 
 15.70 
 
 NOTE. 'The above disproves the oft repeated statement that more deaths occur in the earlier than later years 
 of insurance. General experiences of other societies are similar to that of the Woodmen. 
 
 first few years of membership by excluding the experience of the first five years, 
 when the effect is most pronounced. After this is done, the subsequent "adjustment" 
 further relieves the mortality table from the objections mentioned. Further than this, 
 the conservative management and cautious actuary will then adopt some standard 
 mortality table as a basis for rates, which is even higher than this adjusted table 
 representing the experience of the society in question. 
 
 It may be said that the same conservative and cautious course could be adopted 
 in respect of the lapse rate. Assuredly it could; but the result would be to make 
 the reduction in rates of contribution so triflingly small that no one would go to 
 the trouble and expense of introducing the lapse factor into premium calculations. 
 
 The only tenable argument to be made in favor of considering the lapse element 
 is that material reduction may be had in rates of contribution, in order to bring 
 them within the financial ability of poor men. If, when on the safe side, the lapse 
 rate is so low as to make insignificant reduction in contributions, then there is no 
 sufficient reason for introducing this lapse factor to complicate the calculations and 
 disturb the regular reserve values. 
 
 The uncertain and variable nature of the lapse rate is clearly established from 
 the lapse experience of life insurance organizations, and it would appear impossible 
 to settle upon any uniform schedule of assessment rates when the lapse factor enters 
 into their computation. 
 
 If the lapse element is to be considered, evidently each society must be largely, if 
 not altogether, controlled in that consideration by its own experience. It would be 
 extremely hazardous for a society to rely upon the experienced lapse rate of some 
 other society. 
 
 The fact of remaining with or withdrawing from a society is determined by in- 
 dividual volition, and the moving cause for the exercise of human volition would be 
 impossible to predict by any previous record of its exercise. 
 
 With the representative form under which the societies generally operate, the 
 cause might come from political influences or from disagreement between officials, or 
 
189 
 
 from the pernicious activity of agents and representatives of other organizations, or 
 from any one or more of a hundred influences which could operate upon the human 
 will a thing notoriously fickle, changeable, and unreliable. 
 
 If each society reduced its rates of contribution in an amount justified by its own 
 experience, there would be no uniformity in the resulting schedules. A reference to 
 the lapse rate of the Royal Arcanum and the Ancient Order of United Workmen, as 
 examples, will indicate the resulting difference in the rates of reduced contribution. 
 
 Were the societies to put out varying schedules, there would be no end of misrep- 
 resentation to the public. 
 
 As a practical proposition, it would seem advisable and preferable to agree upon a 
 uniform schedule of rates without considering the lapse element, and then let each 
 society return to its members, in optional form, the gains from forfeitures after 
 they are realized through actual withdrawals. 
 
 If the return is to be in the way of reducing rates of contribution, the amount 
 from forfeitures could be divided, at the end of each year, and the contribution of 
 each persistent member reduced by his proportionate share. 
 
 By this method the reduction would be after the fact, and there would be no 
 possibility of upsetting calculations by creating deficiencies, as under the method of 
 making the reductions beforehand upon guess and estimate. 
 
 The persistent member would receive the same advantage of lapses, and those 
 who object to surrender values should be satisfied. Each society would stand upon 
 its own record, as it should do ; the members of each would receive all possible benefit 
 from forfeitures, because they would share in a division of all the gains from that 
 source, and more than that they could not have, even though an over-estimate promised 
 more; withdrawing members would receive no part of their accumulation, and, there- 
 fore, would be punished for seceding; and so all of the conditions would be fulfilled 
 that are anticipated by those who would risk the danger of estimated and assumed 
 reduction before the fact. 
 
 I desire it to be distinctly understood that I have no prejudice against using the 
 lapse in constructing tables from which to derive insurance values and premiums. 
 I simply have no confidence in the reliability of such tables, because I can find no 
 statistics that will justify such confidence. 
 
 I do not believe in laying down any hard and fast rule and undertaking to apply 
 it to all cases of readjustment of existing rates of assessment. The conditions of 
 societies are widely different in respect of methods of management, plans of opera- 
 tion, character of membership, and original rates of contribution. Hence the necessity 
 of a careful investigation of the affairs of each organization before deciding upon the 
 best method for readjustment. 
 
 It is well known that I advised the Readjustment Committee of the Modern 
 Woodmen of America to ignore the lapse element in the preparation of rates. How- 
 ever, the members of that society had become so accustomed to very low rates of 
 contribution that they protested vigorously against the schedules proposed by the 
 Readjustment Committee, and, at the suggestion of the Head Consul, I prepared 
 another schedule with the lapse factor considered. This schedule was offered to the 
 Head Camp by Delegate Young, under the name of the "Hawes Plan" as a sub- 
 stitute for the committee's rates. But the representatives of the Modern Woodmen 
 of America were not willing to accept the concession, and did what so many 
 
190 
 
 other similar bodies have done, adopted a makeshift, devised on the spur of the 
 moment by those wholly ignorant of the true relation between promised contribu- 
 tions and promised benefits. 
 
 In such an emergency as that in which the officials of the Modern Woodmen of 
 America were placed, during the desperate struggle to put their society upon a 
 sound basis, I could favor the trial of rates reduced by an estimated gain from 
 forfeitures through lapse. 
 
 I would advise against any such estimate. I have endeavored to support my 
 opinion by facts in reference to lapse rates experienced by different organizations, 
 and by reference to opinions of the leading actuaries on both sides of the Atlantic. 
 It seems to me that the almost unanimous conclusion of the experts should satisfy 
 us that resort should only be made to the use of the lapse element in those cases 
 of revision of assessment rates where excessive loading is necessary to provide for 
 deficiencies of existing old members. It were as well to ignore expert advice altogether 
 as to fly in the face of an almost universal opinion against consideration of the lapse 
 element in premium calculations. 
 
 I cannot dismiss this part of the discussion without quoting the following from 
 Mr. George King's lecture, "Facts, Fallacies and Fancies in Life Insurance" : 
 
 "The company which takes account of discontinuances in calculating its 
 premiums, requires to make and I can prove it by mathematics a consid- 
 erably higher reserve than a company charging the ordinary level premiums. 
 Therefore it is utterly fallacious for assessment or natural premium officers 
 to argue that because they trust to discontinuances they do not require large 
 reserves. A premium calculated to allow for discontinuances is naturally lower 
 than the premium calculated for mortality only, because the surrender values 
 of the policies which it is assumed will lapse are applied in reduction of 
 premium. Now it is found that discontinuances take place in great proportion 
 in the early years of the policies, and that when policies have been in ex- 
 istence, say ten or fifteen years, discontinuances practically cease. All the dis- 
 continuances take place in the early years, and when a man has kept up a 
 policy for a certain time he keeps it up to the end. Now, the premium being 
 lower than the ordinary level premium, and the risk being the same, and the 
 premium being part of the assets relied upon by the office in order to meet the 
 claim, it follows that the other part of the assets namely, the reserves must 
 be increased. So that if the premium is reduced by the application of lapses, 
 to lower the premium, then the reserves, on the other hand, must be increased, 
 so as to get a perfect balance between the liabilities and assets. Now by these 
 simple considerations you can see that a company which trusts to discontinu- 
 ances in order to reduce its rates must, if it is to remain permanently solvent, 
 make larger reserves than a company which charges the ordinary premium 
 based upon mortality only." 
 
 EXAMPLES OF DISCOUNTED RATES. 
 
 I now come to that part of my presentation which should especially hold attention, 
 because it deals with the practical side of the subject, as it directly relates to that 
 ever-existing condition of securing and losing members, and the expense of field 
 work, with some bearing on the effect of competition. To immediately get at the 
 pith of the matter, I present a number of schedules of level annual premiums on the 
 basis of mortality alone, and on the basis of mortality and lapse considered. Only a 
 few sample ages are given : 
 
191 
 
 Age. 
 
 A. 0. U. W. 
 (By Eldridge.) 
 
 P. H. C. 
 (By Barnard.) 
 
 I. 0. F. 
 (By Rea.) 
 
 Without Lapse 
 
 (Net.) 
 
 With Lapse 
 (Net.) 
 
 Without Lapse 
 
 (Net.) 
 
 With Lapse 
 (Net.) 
 
 Without Lapse 
 (Gross.) 
 
 With Lapse 
 
 (Gross.) 
 
 25 
 30 
 35 
 40 
 45 
 50 
 
 $13.68 
 15.00 
 19.00 
 22.95 
 28.16 
 
 $ 9.69 
 9.40 
 11.58 
 14.21 
 17.29 
 
 $12.48 
 14.64 
 17.40 
 21.12 
 25.92 
 32.52 
 
 $10.20 
 12.00 
 15.00 
 18.60 
 24.00 
 31.20 
 
 $12.03 
 14.29 
 17.37 
 21.70 
 28.00 
 37.66 
 
 $10.90 
 13.16 
 16.08 
 20.36 
 26.81 
 35.96 
 
 
 
 Age. 
 
 ILLUSTRATIVE 
 (By I. P. Mantz.) 
 
 ILLUSTRATIVE 
 (By Hunter.) 
 
 M. W. of A. 
 (By Landis.) 
 
 Without Lapse 
 (Net.) 
 
 With Lapse 
 (Net.) 
 
 Without Lapse 
 (Net.) ' 
 
 With Lapse 
 
 (Net.) 
 
 Without Lapse 
 
 (Net.) 
 
 With Lapse 
 
 (Net.) 
 
 25 
 30 
 35 
 40 
 45 
 50 
 55 
 60 
 
 $11.91 
 13.96 
 16.62 
 20.11 
 24.72 
 30.91 
 39.36 
 51.13 
 
 $10.32*** 
 12.08 
 14.47 
 17.41 
 21.88 
 26.82 
 34.37 
 45.96 
 
 $16.25 
 
 $14.56** 
 
 $12.48 
 14.64 
 17.40 
 21.12 
 25 92 
 
 $11.64* 
 13.56 
 16.20 
 19.80 
 24.60 
 32.52 
 
 
 
 25.89 
 59 '.87 
 
 23.66 
 
 55.25 
 
 32.52 
 
 
 
 NOTE. ***These rates are based upon a mortality rate according to the National Fraternal Congress Table, and 
 upon lapse ratios reported to the nineteenth M. U. B. A. convention. **Double lapse rate here considered. With normal 
 lapse rate, the premiums given by Mr. Hunter were, age 25, $15.48; age 40, $24.83; age 60, $57.64. *Seventy~two cents were 
 added to these rates at each age to 48 years of age, the same being a "fraternal rate" to maintain a level premium of $30.00 
 annually for existing members above 48 years of age. In consequence, the premiums offered with lapse we're nearly the same 
 as the regular net premiums without lapse. The effect of lapse was not considered above age 47. 
 
 The reduction made by Mr. Eldridge for the Ancient Order of United Workmen, 
 from the rate without lapse, is very considerable, because the withdrawals from that 
 society were very great prior to 1896, before the old classified plan was adopted. 
 The lapse experience investigated by Mr. "Eldridge was prior to 1896. 
 
 The reduction from regular rates made by Mr. Barnard for the Protected Home 
 Circle is likewise considerable. Mr. Barnard, in his report to the society, does not 
 give the basis for his modification, but it is presumed that he followed the suggestion 
 made by Mr. Whiting some years ago. When the rates were prepared for the 
 Protected Home Circle, unfortunately the lapse experience of the society was not 
 available, and hence it cannot be known whether or not the reduction or modification 
 accords with that experience. 
 
 Mr. Rea and Mr. Pipe based the regular and reduced rates of the Independent 
 Order of Foresters upon the actual experience of that society, and the reduction is 
 not very great. 
 
 Mr. Hunter worked out sample rates for illustration, as was also the case of 
 Mr. Mantz; The former took the Hm Table of Mortality and double the normal 
 lapse, and the latter used the National Fraternal Congress mortality and the lapse 
 ratios of the Mutual Underwriters Benefit Associations. Mr. Landis used the National 
 
192 
 
 Fraternal Congress rates and discounted them on the basis of the Modern Woodmen 
 twenty years' experience. 
 
 The results of these several efforts reflect what might be expected in the way of 
 variety were all of the societies of America to have rates prepared with lapse element 
 considered. 
 
 The results certainly show that it would be impossible to secure a uniform 
 schedule for all of the societies. We must picture the situation from the standpoint 
 of a variety of schedules. Then what would be the practical effect of them? 
 
 First. Each society would be forced to make out special reserve values, base, 
 their valuations on specially prepared tables, or value upon standard tables modified. 
 
 Second. Each society would be compelled to have its affairs so managed as not 
 to have a lapse rate lower than assumed, and hence the officers could not exert 
 themselves to the utmost to prevent secessions, but might be forced to cause lapses 
 should the members be possessed of an extra confidence beyond that assumed for 
 them. 
 
 Third. The great reduction in rates, like those of Mr. Eldridge for the Ancient 
 Order of United Workmen, and Mr. Barnard for the Protected Home Circle, would 
 require a heavy lapse rate, and in time would require strenuous activity in the field 
 in order to replace withdrawing members by new ones to prevent a net loss in 
 membership and ultimate dissolution. This strenuosity would call for the sinews of 
 war in the shape of more money for extension purposes. This increased demand for 
 expense funds would offset the gains from forfeitures, and the management would soon 
 be brought to face a deficiency, or be forced to ask for an increase in the expense 
 contributions equal to the reduction in net mortality premiums, with the result that the 
 society would have rates equal to the regular premiums without lapse but with all 
 of the advantages of surrender values. The management could not seek relief in 
 preventing lapses, beyond the number assumed, because that would invite insolvency. 
 The management must secure enough new members to make good those going out 
 by lapse and death, and some additional for healthy growth, otherwise the society 
 would go into decay. If any one can work out an advantage from the assumption 
 of a high lapse rate in order to obtain low net premiums, it is more than is indicated 
 in this presentation, and more than I can see from a practical view of the situation. 
 
 THE INSURANCE RISK. 
 
 The mortality table enables the actuary to determine the risk to death assumed by 
 the society on the insured life, which is an increasing risk with increasing age. 
 
 But there are conditions other than age which affect the risk, such as occupation, 
 residence and the period of promised protection. 
 
 The added contribution necessary to provide for the extra occupation and resi- 
 dence risk is omitted from consideration in the first computation to obtain the rate 
 for the death benefit as an ordinary risk. The extra required contribution is separately 
 determined. 
 
 But the period of protection must be considered in the first instance, and only 
 that portion of the mortality table is employed which corresponds to the period 
 covered by the protection from age of entry to the terminating age. 
 
 The society's risk may be increased also by the addition of other than death benefits. 
 
 ,The promise may include claims on account of accidents, or sickness, or old age, 
 the inclusion of any one of which will require an extra contribution over that for 
 a death benefit only. 
 
193 
 
 To provide for accident benefits a level and equal rate for all ages is usual. And 
 most of the American companies have a level and equal premium to age 50 for health 
 (or sickness) benefits, and a somewhat higher equal rate for ages above 50. However, 
 the sickness rate increases with increasing age, and the companies only save them- 
 selves from the troubles which have come to the Friendly Societies by reserving the 
 right to cancel contracts at their option. 
 
 Recently much interest has been taken in Total Permanent Disability Benefits, and 
 I have given tables in respect of them. In 1903 I obtained the first American Dis- 
 ability Experience from the Knights of the Maccabees of the World and other So- 
 cieties, and from the data constructed the first Total Permanent Disability Tables. 
 Since that time I have furnished the statistics to other actuaries who have prepared 
 from them elaborate tables in connection with the American Experience Table of 
 Mortality. 
 
 For contribution rates for sickness benefits, other than for one-year renewable 
 term contracts, the Manchester Unity or Sutton's Tables are employed. 
 
 The day has passed when guessing should be resorted to in the matter of con- 
 tributions adequate to provide for promised benefits. 
 
 Mortality, Sickness and Total Permanent Disability Tables are well established 
 and, at moderate cost, any insurance organization can have computed contribution 
 rates for any character of insurance protection. 
 
 VARYING BENEFITS. 
 
 Not only can level contribution rates be computed for a uniform benefit, but the 
 tables enable the actuary to determine the rate for increasing or decreasing benefits. 
 In all cases, at the inception of the insurance contract, the present value of the 
 future contributions must be equal to the present value of the promised benefits. 
 Equity requires and solvency demands this condition. 
 
 The simplest form of contract in respect of assessments is the case of the level 
 and uniform contribution rate graded to ages when the payments commence and for 
 a uniform benefit payable at death. 
 
 From Exhibits i and 2 it is demonstrated that the Present Value of the Promised 
 Benefit is equal to the Present Value of the sum insured and is equal to the Single 
 Payment to provide for the Yearly Instalments of Claims. 
 
 From Exhibits i and 2 it is demonstrated that, at the inception of the insurance 
 contract, the future contributions to provide for the Yearly Instalments of Claims, 
 is equal in value to the Single Payment and is equal in value to the Promised Benefit, 
 and that the Present Value of the Annual Contribution is obtained from its multipli- 
 cation by the Whole Life or Temporary Annuity. 
 
 I have avoided symbols, but for the sake of brevity occasionally they must be used. 
 A=The Single Payment, 
 
 = Present Value of Sum Insured, 
 a = Present Value of an Annuity, 
 
 = Present Value of $1.00 Paid Annually. 
 P = Level Annual Premium, 
 = Level Annual Contribution. 
 
 Then commit to memory the following equations and we will have ended the first 
 lesson : 
 
 A=PXa, 
 
 = Present Value of Promised Benefits, 
 P=A-s-a, 
 a = A-rP, 
 
 P Xa = A, = Present Value of Future Contributions, 
 = Present Value of Promised Benefits, 
 
194 
 
 AT THE INCEFHON OF THE CONTRACT. Note well that the above equations are true, 
 under adequate rate schedules, at the moment the insurance contract is made, but 
 may not hold true in any subsequent year. After the first contribution payment, the 
 present value of future contributions is less than the present value of the promised 
 benefit, and reserve accumulation is required to make good the difference, as later 
 will be explained. 
 
 In Exhibits I and 2 the arithmetical process to obtain A and a is clearly and in 
 great detail set forth, both on the whole life and on the temporary or term basis, 
 and in respect of death benefit only and of combined death and endowment benefits 
 
 In all of the cases mentioned the foregoing three equations hold true. 
 
 And further : 
 
 A = The Benefit Side, 
 PXa=The Payment Side 
 
 of the Level Premium Insurance Contract, and at the inception of this contract, the 
 Benefit Side must equal the Payment Side, and this rule holds in all cases. 
 
 Instead of the Benefit being for a uniform amount as assumed in Exhibit i, sup- 
 pose that the promise is to pay $700 in the first year, $800 in the second year, $900 
 in the third year and $1,000 thereafter, thus having a varying in place of a uniform 
 benefit. Then how would we determine its Present Value? 
 
 The process is identical with that for finding A when the benefit is $1,000 from 
 the beginning of the insurance. Thus : 
 
 Beginning of 
 Years. 
 
 Number Living Begin- 
 ning of Years. 
 
 Amount of 
 Certificate. 
 
 Total 
 Protection. 
 
 1 
 2 
 3 
 4 
 
 92,215 
 91,648 
 90,070 
 90,479 
 
 $ 700 
 800 
 900 
 1000 
 
 $64, 550, ,500 
 73,318,400 
 81,063,000 
 90,479,000 
 
 After the completion of the third year the protection is on the basis of $1,000 and 
 the total for each year is 1,000 times the number living as found in the mortality 
 table. So also the yearly instalments of claims after the third year is 1,000 times the 
 number dying as given in the mortality table and also in Exhibit i. 
 
 The instalments of claims must be determined from multiplying the total protec- 
 tion by the probability of dying. Thus : 
 
 Beginning of 
 Years. 
 
 Total 
 Protection. 
 
 Probability 
 of Dying. 
 
 Instalment 
 of Claims. 
 
 1 
 
 2 
 3 
 4 
 
 $64,550,500 
 73,318,400 
 81,063,000 
 90,479,000 
 
 .0061487 
 .0063067 
 .0064895 
 .0066977 
 
 $397,000 
 462,000 
 526,000 
 606,000 
 
 Where the protection begins with $1,000 the total protection is $92,215,000, and 
 the first year's instalment of claims is $567,000. When the protection begins at $700, 
 the total is $64,550,500 and the first year's instalment of claims is $397,000, with 
 similar reductions in the second and third years. 
 
195 
 
 After the third year the instalments of claims obviously are the same as in Exhibit 
 i. since the basis is $1,000 for each person. 
 
 To find the Present Values of the Instalments, we adopt the identical procedure 
 as for Exhibit I. Thus: 
 
 Beginning of 
 Years. 
 
 Yearly Instalments 
 of Claims. 
 
 Present Value 
 of $1.00. 
 
 Present Value 
 of Claims. 
 
 1 
 2 
 3 
 
 4 
 
 $397,000 
 462,000 
 526,000 
 606,000 
 
 .961538 
 .924556 
 
 .888996 
 .854804 
 
 $381,630.00 
 427,510.00 
 467,650.00 
 518,010.00 
 
 The succeeding years to the end of the sixty-fourth year would be identical with 
 Exhibit i. But the total of the claims would be $91,864,000, instead of $92,215,000, and 
 the total of their Present Values is $27,490,473.44, instead of $27,818,663.44. 
 
 However, the Number Living at the Beginning of Years would not be changed 
 by the fact that each person received less than $1,000 of protection during the first 
 three years of membership, and the amount of yearly instalments of contributions 
 of $1.00 at beginning of years by each person living would not be changed, and 
 hence Exhibit 2 would remain unchanged. 
 
 Therefore, we would have the same total of Present Values of Contribution In- 
 stalments, $1,674,337.74 as the divisor into $27,490,473.44 (the reduced total of Present 
 Values of claims), giving $16.42 as the Level Annual Contribution Whole Life Rate 
 at age 35, where $700 is paid at death in the first year, $800 in the second, $900 in 
 the third, and $1,000 thereafter. 
 
 The Level Annual Whole Life Rate is $16.62 when $1,000 is payable in all years. 
 The scaling of $300 in the first year, $200 in the second, and $100 in the third reduces 
 the annual rate by 20 cents. 
 
 If the protection began at $700 in the first year and increased by a given amount 
 each year to the end of "Life Expectancy," say by the uniform amount of $10, then 
 we would multiply the "Number Living" at the beginning of the first year by $700; 
 at beginning of second by $710; of the third year by $720, and so on for thirty years, 
 until the amount equaled $1,000. The protection thus obtained would be multiplied 
 by the "Probabilities of Dying" to get the Yearly Instalments of Claims, and the 
 latter would be multiplied by the interest discount factors to secure the Present 
 Values, the total of which would be divided (for age 35) by $1,674,337.74 to obtain 
 the Level Annual Contribution Rate. 
 
 The varying benefit only affects the construction of Exhibit i. The annuities ob- 
 tained from Exhibit 2 remain unchanged. When the benefit is less than the unit of 
 $1,000, the resulting total of Present Values is less as a dividend, and, of course, the 
 quotient is less as an annual rate. 
 
 The reduction in the rate by giving less than $1,000 during "Life Expectancy" 
 is much exaggerated, as an example would prove. 
 
 If there were a decreasing instead of an increasing benefit, the process to find 
 the yearly instalments of claims and their present values would be identical with 
 that shown for increasing benefits. 
 
 The annual contributions for Term, Limited Pay and Endowment varying benefits 
 could be obtained by use of temporary single premiums as explained for Exhibits 
 i and 2. 
 
196 
 
 VARYING CONTRIBUTIONS. 
 
 Suppose the rate of contribution is to increase or decrease for a number of years, 
 then how can such a varying annual contribution rate be determined? 
 The simplest demonstration of the process is to employ the equation 
 Benefit Side=Payment Side, or 
 
 But P is to vary from year to year, say, for three years. Then let P' be the initial 
 contribution and that it be increased by 2 for three years and afterward remain level. 
 
 P', being the initial rate, must be paid through the period of protection, and ob- 
 viously its value is 
 
 P'Xa. 
 
 The first increase at the end of the first year is 2, which must be paid through 
 the period of protection, beginning the second year. Obviously the present value of 
 this first increrase is 2 multiplied by the present value of $1.00, paid annually, begin- 
 ning the second year. 
 
 Similarly the second increase in the rate by 2 is made at the end of the second 
 year and its present value is 2 multiplied by the present value of the annuity of i, 
 beginning the third year. 
 
 Likewise the present value of the third increase of 2 is the product of its mul- 
 tiplication by the annuity, beginning the fourth year. 
 
 Let i |a, 2 |a and 3 |a stand for the value of the annuities deferred one, two and three years. 
 Then the equation becomes 
 
 A = P'a+2Xi |a+2X 2 |a+2X 3 |a, 
 
 with the last three terms discounted one, two and three years. 
 
 Let v 1 represent the value of $1.00 discounted for one year, v 2 = discounted value for two 
 years, and v 3 = discounted value for three years. Then the equation becomes, 
 
 A-[vK2Xi |a)+v 2 (2X 2 |a)+v 3 (2X 3 |a)] = P'Xa. 
 dividing through by a, we have 
 
 p , = A-[v'(2Xi | a)+v(2X 2 |a)+v(2X 3 1 a)] 
 a 
 
 For age 35 we found (from Exhibit 2) that a (the whole life annuity single premium) was 
 $18.16. 
 
 i |a would be the single premium for the whole life annuity at age one year hence, or age 36, 
 and it could be found by constructing a table for age 36 similar to Exhibit 2 for age 35. 
 
 Also ? |a and 3 la represent annuities beginning two and three years hence, or at ages 37 and 
 38, and could be determined by a process similar to that illustrated by Exhibit 2. 
 
 The single premiums for whole life annuities at ages 36, 37 and 38 are $17.95, $17.94 and 
 $17.53, respectively. 
 
 The values of $1.00 due one, two and three years hence (discounted at 4 per cent) are .961538, 
 .924556 and .888996, respectively. 
 
 We have already found that A 35 (the single premium for the purchase of $1,000 promised 
 death benefit) was $301.68. 
 
 Substituting, the equation becomes, 
 
 , 301.68-.9615(35.90)+.9246(35.48)+.8890(35.06) 301.68-98.50 ( 
 
 P' = jg 16 Igl6 - = $11.19 equal the initial 
 
 contribution at age 35, and when increased by $2.00 for three years would give the level annual 
 rate after three years ($11.19 plus $6.00), or $17.19. And this instead of $16.62 as the level 
 annual rate from the beginning. 
 
197 
 
 The employment of temporary single premiums for annuities, as explained in con- 
 nection with Exhibits I and 2, will enable the computer to obtain increasing or de- 
 creasing contribution rates for term, limited payment and endowment contracts. 
 
 The foregoing tedious details are excusable only for the reason that they are 
 made for those who want arithmetical examples of the method of computing con- 
 tribution rates. 
 
 They are presented with the hope that the simplicity of the illustrations will dispel 
 the 'Common fallacy concerning "Life Expectancy" as a factor entering into the com- 
 putation of level annual contribution rates. 
 
 SHORT CUTS OF CALCULATIONS. 
 
 To follow the method of computation illustrated in the Exhibits and explained for 
 varying benefits and contributions would require the extended columns for each age 
 of entry as shown for age 35. 
 
 Short cuts in the way of "Commutation Columns" have been devised, and the 
 understanding of them appears to be a serious difficulty with those who are not 
 expert mathematicians. 
 
 I will try to make a simple explanation of their construction and use. 
 
 Refer to Exhibit I and note that the first thing is the determination of the "yearly 
 instalments of claims" expected to mature during the period of protection. The 
 actual process is better illustrated by Exhibit 3, when the yearly instalments are not 
 the tabular number dying as given in the mortality table. 
 
 The second process is to obtain the present value of the yearly instalments of 
 claims, which is accomplished by multiplying the amount for each year by the present 
 value of $1.00 discounted for one, two and so forth years. 
 
 In the illustrations the value of $1.00 due one year hence is the multiplier for the 
 first year's instalment of claims. 
 
 Instead of using this as the first discount factor to form the first "commutation column," 
 designated C x , we take the value of $1.00 due one year after the year represented by the age for 
 which the computation is to be made. We do this because, for convenience, it is assumed that 
 C x = d x v x+ J . In other words the value for C for any age as x is equal to the product of the num- 
 ber dying at that age by the present value of $1.00 due in a period of time one year greater than 
 age x. 
 
 That is to say, from Exhibit i for age 35 we would take the value .243669, oppo- 
 site the year 36, instead of .961538, opposite the year I. 
 
 Beginning with the youngest age given in the mortality table (age 20 for the 
 X. F. C.) we would take the value of $1.00 due the year hence represented by the 
 age one year older than the youngest (or in 21 years) as the multiplier to represent 
 the claims maturing in the first year of age, and thereafter successively use the corre- 
 sponding present values of $1.00 and yearly instalments of claims to the end of the 
 mortality table. 
 
 Turn to Table II of the Appendix. 
 
 In the first column, headed x, are the ages. 
 
 In the second column, headed v x , are the present values of $1.00, the first being the 
 value 20 years hence, .456387, and is the same as used in the exhibits for the twen- 
 tieth year. 
 
 In the sixth column, headed C x , are the amounts corresponding to the present 
 values of the yearly instalments of claims on the basis of i.oo instead of 1,000. 
 
 That is to say, the first value of C (219.416801) is the product of 500 (the num- 
 ber dying at age 20) by i.oo (the unit of benefit) by .438834 (the present value of 
 i.oo tiventy-one years hence). 
 
198 
 
 This value of Cao corresponds to the present value of the instalments of claims 
 .in Exhibit I, except, as stated, the promised benefits are on the basis of $1.00 for 
 each death instead of $1,000. 
 
 In Table i of the Appendix, the third column, headed d x (number dying), giv^s 
 the number of tabular deaths during each year of age, and these multiplied by $1.00 
 will give the yearly instalments of claims on the assumption of paying $1.00 at 
 each death. 
 
 Multiplying each of these yearly instalments of claims by the value of $1.00 for 
 the year one age advanced, the amounts corresponding to the present values of the 
 claims are obtained as given in column C x of Table 2, which are of identical char- 
 acter to those obtained for ages 35 to 98 of Exhibit i, excepting as to the unit of 
 protection as heretofore explained. 
 
 If we take the total of the values in the C x column of Table 2 from any given 
 age, this total can be used to obtain the single payment to provide for the promised 
 benefits at that age, in a similar manner to that of finding the single premium for the 
 protection at. age 35 in Exhibit i. 
 
 However, by summing the Cx column of Table 2 from the oldest to the youngest 
 age, and recording the subtotals for intervening ages, at once the total for any giver, 
 age is obtainable. Thus : 
 
 The oldest age is 98 and the present value of the claims expected to mature in 
 the last year of age is .061776. Starting with that value, the process would be (omit- 
 ting the sixth decimal) : 
 
 Value at 98 of C 06178 = M 9S 
 
 Value at 97 of C .. .14991 
 
 Total at 97 of C 21169 = M 97 
 
 Value at 96 of C.. .42317 
 
 Total at 96 of C 63486 = M 9 , 
 
 Value at 95.. ..1.01918 
 
 Total at 95 of C 1 .G5404 = M 95 
 
 and similarly to the youngest age 20. The sum of the values of C x are recorded in 
 the seventh column of Table 2 under the title of M X =SC X (S is the Greek letter 
 sigma, and stands for "summation"). 
 
 The number 9669.13897, opposite age 20, is the total of the numbers in column 
 Cx from 20 to 98, inclusive. 
 
 The number 7049.68360, ooposite age 35, is the total of the numbers for ages 35 
 to 98 in column C x . And similarly for other numbers in column M x , they are the 
 respective, totals for the opposite ages to the end of the Mortality Table, and corre- 
 spond to the total for age 35 to 98 in Exhibit i. 
 
 Now assuming that each person living, given in column 2 of Table I, paid $1.00 
 at the beginning of the year (precisely as done in the illustration by Exhibit 2, but 
 commencing at age 20 instead of 35), we form'a column of yearly instalments of con- 
 tributions, as in Exhibit 2. 
 
 The first payment at age 20 by the 100,000 living would give immediately $100,000. 
 
 In Exhibit 2 the 92,215 persons living at age 35 paid $92,215 immediately, and it 
 was entered at its face value of $92,215 in the column of present values of yearly 
 instalments of yearly contributions, because it was in hand' at the beginning of the 
 insurance. 
 
 But the treatment is now changed by the employment of the present values of $1.00 
 for years corresponding to years of age. 
 
199 
 
 Therefore, instead of multiplying $100,000 by i.oo, we multiply by the value of 
 i. oo twenty years hence, or .456387, as given in the column v x of Table 2, oppo- 
 site the year 20 in Exhibit i. 
 
 The product, to six decimal places, is given in column D x of Table 2, being 
 45638.694620=020. 
 
 The column Dx of Table 2 corresponds to the column of Present Vialues of 
 Yearly Instalments of Contributions of Exhibit 2. The only difference being in the 
 fact that the yearly instalments of contributions are multiplied by the present value 
 of $1.00 for the year equal to the insurance age instead of the year of insurance 
 duration. 
 
 At this point it is well to observe that in the Tables of Values a unit of I is 
 taken for the amount of contribution, and hence denominations of dollars and frac- 
 tions thereof are omitted or understood. 
 
 For this reason the number living (designated by l x ) are taken as the multipliers 
 instead of the amounts of $1.00 by the number living. Thus at age 20 the number 
 living is 100,000, and multiplied by the present value of i in the twentieth year would 
 be, as stated, 45638.69462. 
 
 The present value of i is designated by v; and where the value is taken as of 
 the insurance age (x) then it is designated v x . 
 
 The number living is designated by the letter 1, and for the number at any insur- 
 ance age a suffix is added for the given age, as lao for the number living at age 20; 
 and, therefore, lx is used for a general designation of the column of the number living. 
 
 When the number living is multiplied by the present value of i, the general ex- 
 pression for the product is l x v x which is further designated by D x for convenience 
 and brevity. 
 
 Similarly, the number dying is designated by the letter d. For a given age, as d w . 
 And generally, d*. 
 
 Omitting monetary considerations and making the insurance unit i, then we 
 obtain the present value of the yearly instalments of claims by using the tabular 
 number dying. 
 
 As before stated, we take the present value of i for the year one year advanced 
 in age as the multiplier. Therefore, for age 20 we have 500 multiplied by .438833602, 
 giving 219.416801, being dao v 21 =C2o. And generally, d x v x+1 C x . 
 
 Returning to the discussion of the column D x of Table 2, which corresponds to the 
 present value of yearly instalments of contributions, the total of the column for any 
 age can be used to obtain the single premium for an annuity, similar to the use of 
 the column of present values of contributions in Exhibit 2. 
 
 In a manner similar to that heretofore shown for summing the C x column, we 
 may sum the D x column of Table 2 from the oldest to the youngest age and, recording 
 the subtotals for intervening ages, at once obtain the total for any given age. Thus: 
 
 Value at 98 of D 06425 = N 98 
 
 Value at 97 of D . 22272 
 
 Total at 97 of D 28697 = N 97 
 
 Value at 96 of D . 67173 
 
 Total at 96 of D 95870 = N 96 
 
 Value at 95 of D . . 1 . 75856 
 
 Total at 95 of D 2.71726 = N 95 
 
 and similarly to the youngest age 20. The sum of the values of D x are recorded 
 in the fourth column of Table 2 under the title of N X = 
 
200 
 
 The totals in the N x column represent the 
 
 Payment Side 
 
 of the insurance contract, because they are derived from expected yearly instalments 
 of contributions. 
 
 The totals in the M x column represent the 
 
 Benefit Side 
 
 of the insurance contract, because they are derived from the expected yearly instal- 
 ments of claims for benefit. 
 
 To obtain the level annual contribution rate for any age it is only necessary to 
 divide the number in the M x column by the number in the N x column opposite the 
 given age. Thus : 
 
 Benefit Side Payment Side Annual Rate 
 7049.68360 -h 424294.62475 = .01662 
 M 35 N 35 P 35 
 
 If the result is desired on the basis of $1,000, multiply by 1,000, and we have 
 1,000 Pss $16.62?= Annual Rate, which is identical with the result obtained from Ex- 
 hibits I and 2 for the whole life level annual contribution to provide a death benefit 
 of $1,000. 
 
 The same principle obtains in the use of the M x and the N x columns to secure the 
 level annual contribution for term or limited Payment or Endowment Insurance 
 contracts. Thus : 
 
 Benefit Side Payment Side 
 (M X -M X+20 ) -=- (N X -N X+20 ) 
 
 gives the level annual contribution rate for an insurance of i for a term of twenty 
 years. In figures taken for age 35 from the M x and N x columns of \Table 2,, we have 
 
 Benefit Side Payment Side 
 
 (7049 . 68360 - 4477 . 07072) -i- (424294 . 62475 - 1 13737 . 2 1 570) 
 
 M 35 M 55 N 35 N 55 
 
 The annual contribution for a term to age 70 would be 
 
 Benefit Side Payment Side 
 
 (7049 . 68360-2232 . 70894) -r- (424294 . 62475 - 24269 . 33480) 
 M 35 M 70 N 35 N 70 
 
 The level annual contribution rate for a 2O-year limited payment insurance of 1 
 would be, for age 35, 
 
 Benefit Side Payment Side 
 
 7049. 68360 -K424294. 62475 -113737. 21570) 
 
 M 35 N 35 N 55 
 
 As previously explained an Endowment Insurance is a combination of a Term 
 Insurance and a Pure Endowment. 
 
 A Pure Endowment contract is one that promises to pay a sum at the end of a 
 given number of years, or on attaining a given age to the survivors of those living 
 at the date of the contract. Nothing is paid to those who die during the term of 
 the contract. 
 
 The Pure Endowment is the antithesis of the Term Insurance. The latter pro- 
 vides benefits to the dependants of those who die during the term. The Pure Endow- 
 ment provides benefits for those who survive the stated period. 
 
201 
 
 The combination of the two makes provision for the beneficiaries of those who die 
 and for the survivors themselves, and hence is called Endowment Insurance. 
 
 The level annual contribution for 2O-year Term Insurance for age 35, as here- 
 tofore shown, is 
 
 Benefit Payment 
 
 Side Side 
 
 (M 35 -M 55 )-(N 3 5-N 55 ) 
 
 The Pure Endowment is paid to Survivors, and in this case the Benefit Side 
 is represented by the Number Living at the end of the Endowment Period. 
 
 It has been said that D x is derived from the number living. The latter (lx) 
 being discounted by the present value of $1.00 -to obtain the D column. 
 
 The endowment being payable to the number living at the end of 20 years from 
 age 35, obviously this number would be that given in Table I for age 55, being 76,534, 
 or lr,.-,. 
 
 The discounted value of 76,534 (lr..-,) is that number multiplied by the value of i 
 for the year 55, or .115656 (represented by V M ). And we have 
 
 lu v< D 55 
 
 76,534 X . 115656 = 8851 .579 = Endowment Benefit. 
 
 The payment side would be the same for the Endowment as for the Term Insur- 
 ance, because the same persons make contributions during the 20 years, and there- 
 fore the annual rate for the Pure Endowment is 
 
 Benefit Payment 
 Side Side 
 
 D 55 -^ (N 35 -N 55 ) 
 
 Combining the two formulas we have, 
 
 Benefit Payment 
 
 Side Side 
 
 (M-MH)+D-5-(N-N) 
 
 which gives the level annual contribution at age 35 for a 2O-year Endowment Insur- 
 ance. 
 
 Anyone can make the substitution of actual numbers for the symbols by entering 
 the M, D and N columns opposite ages 35 and 55, and the answer then is a simple 
 matter of subtraction, addition and division. 
 
 The above formula is made general by expressing it in the terms of any age (x). 
 
 Benefit Payment 
 
 Side Side 
 
 In Exhibits i and 2 it was necessary to get the total of present values of claims 
 and contributions to obtain the single premiums for insurance and annuities for a 
 term of years. 
 
 On the margin are given these totals for 5, 10, 20 and 35 years in order to illus- 
 trate the method of employing single premiums for insurance and annuities in obtain- 
 ing annual premiums. 
 
 By summing from the oldest to the youngest age, and recording the subtotals, as 
 explained for the M and X columns of Table 2, the total of the C or D column 
 for a term of years can be got by taking the differences of the M and N columns. 
 
202 
 
 Thus, the sum of the numbers in the C column from age 20 to 24 inclusive equals 
 Man Mas. And the sum of the numbers in the D column for 20 years from age 35 is 
 equal to Nr, N-,-,. 
 
 This is an illustration of the Short cuts possible by use of the "Commutation Col- 
 umns," and, at the same time, an explanation of the preceding formulas where the dif- 
 ference of the M's and N's appear. , , 
 
 The level annual contribution for a varying benefit (increasing or decreasing) 
 is also readily obtained by use of the "Commutation Columns." 
 
 If the benefit begins with $700, obviously that amount is promised through the 
 period of protection, and hence is represented by 700 times M ;(3 . Being increased 
 $100 at the end of the first year that amount runs through the period of protection 
 from age 36 and is represented by TOO times M 3 e. Being again increased by $100 at the 
 end of the second year that amount runs through the period of the protection from age 
 37 and is represented by 100 times M 37 . Being increased by $100 at the end of the 
 third year that amount runs through the period of the protection from age 38 and is 
 represented by 100 times M 3 8. The benefit is $1,000 after the third year, and we have 
 
 700M 35 +100M 36 +100M 37 -|-100M38=The Benefit Side, 
 
 And this corresponds with the illustration, made by use of Exhibit I, modified 
 by multiplying the number living by 700, 800, 900 and 1,000 to find the amount of 
 yearly claims, and then getting their present values. Obviously the same final 
 results would have been obtained had the number living first been multiplied by the 
 present value of I, and then multiplied by 700, 800, 900 and 1,000, as in the case of the 
 multiplication of the numbers in the M column, which latter represent the totals of 
 present values of claims on the basis of an insurance of i. And it will be remem- 
 bered that the numbers in the C column represent the present values of yearly claims, 
 and that M is the summation of C. And that the C column of Table 2 corresponds 
 to the column of present values of claims of Exhibit i. 
 
 Varying rates of contribution also readily are obtained by use of the Commutation 
 Columns. 
 
 Assume that the protection is 1,000 for whole life and that the benefit is uniform, 
 and taken at age 35, and that the initial contribution rate is P' and is increased by 
 2 for three years and then continues uniform for the remainder of life being the 
 same assumptions as for the varying rate in the preceding explanation for its computa- 
 tion, by reference to Exhibits i and 2. 
 
 The Benefit Side = 1000M 35 . 
 
 The Payment Side = P'N 35 +2N 36 +2N 37 -f 2N 38 . 
 
 Remember that, at the inception of the insurance contract, the Payment Side must 
 equal the Benefit Side, then by equating we have 
 
 1000M 3 5 = P / N 35 +2N 36 +2N 37 +2N 38 . 
 
 By reference to the M and N columns of Table 2 (in the Appendix) the value?, 
 of 1,000 Ms.-,, N.TB, 2Nse, 2N W and 2N 3S could be found, and P', unknown quantity, can 
 be determined from the equation by transposing, so that 
 
 P / N 35 = 1000M 35 - (2N 36 +2N 37 +2N 38 ) 
 1000M 35 -2(N 36 +N 3 7+N 38 ) 7049683.60-2(400925.92+378594.17-1-357256.75) 
 
 P' 35 = 
 
 N 35 424294.62 
 
 _ 7049683. 60-1 136776. 84 25 
 424294.62 
 
203 
 
 In the preceding illustration where the single premiums for annuities (2Xi |a, 2X2 |a and 
 2X3 1 a) were employed the value of P' was found to be 11.19. With the use of the same number 
 of decimals the two results would not differ even to the amount of 1 in the second place of deci- 
 mals. The difference of .00 is due to a more accurate calculation in use of the Commutation 
 Columns. 
 
 Increasing P' (11.25) by 2-\-2-\-2 we have 17.25 as the level annual rate after the 
 third year to provide for $1,000 whole life death benefit. 
 
 When the Commutation Columns are used the formulas at first may appear for- 
 midable, but a little study and commonsense reasoning will render them easy of 
 comprehension. 
 
 If one will give a few hours study to Exhibits i, 2, 3, 4, 5 and 6, which are 
 worked out by arithmetical processes, he will become so well grounded in the funda- 
 mentals that little trouble will be experienced in comprehending the construction of 
 the "Commutation Columns," especially when only death rate and interest rate are in- 
 volved. When the sickness rate and the permanent total disability rate are included 
 and combined with the death and interest factors, then there are such complications 
 that no one other than an experienced and capable actuary should essay to deal 
 with them. 
 
 It would be beyond the scope of this work to undertake any explanation of the 
 computations where more than mortality and interest are involved, although tables 
 appear in the appendix which give values derived from combined death and perma- 
 nent total disability tables. 
 
 In presenting the formulas for varying benefits and contributions, the M and N 
 columns were employed thus for the varying benefit, 
 
 Benefi t Side = 700M X + 1 OOM X +1 + 1 OOM X +2 + 1 OOM X +3 
 And for the varying contribution, we had 
 
 Payment Side = P^N x +2N x+1 -f-2N x+2 +2N x+3 . 
 
 Obviously if the increase (or decrease) covered many years the formula would 
 become very cumbersome. To avoid the repeated additions, there is a summation 
 from the. oldest to the youngest age of the M and N columns, similar to the treatment 
 of the C and D columns, heretofore explained. 
 
 The subtotals in the summation of the N column are g s iven in Table 2 in the columns 
 designated S X = ZX X . 
 
 The subtotals in the summation of the M column are given in the column headed R X = SM X 
 
 By using the R, the above formula becomes, 
 
 Benefit Side = 700M x -HOO(R x+1 -R x+4 ). 
 
 And in the example for varying contribution, the formula would become by use of the S 
 Payment Side = P X N X + 2 (S x +1 - S x +4 ) . 
 
 Here advantage is taken of the Summation of M and N to obtain their totals by 
 taking the differences of the R and S. 
 
 It is my conviction that every officer of a life insurance organization should be 
 able to compute the contribution rates for the ordinary forms of insurance con- 
 tracts, and I guarantee that anyone can do so after two days of assiduous study, where 
 the explanations are made as in this publication, free from the ordinary expressions 
 of the expert. 
 
204 
 
 T do not mean to be understood as saying that officials, whose duties are admin- 
 istrative and executive, should undertake the work of the actuary. Such a position 
 would be as untenable as to say that they should do the work of the bookkeeper be- 
 cause they know the theory of accounting and could make single or double entries 
 and audit the books to prove their accuracy. 
 
 Every man who understands the system of bookkeeping is not a bookkeeper; nor 
 every man who understands discounts, a banker or money lender. Neither every offi- 
 cial, who understands the principles of "life insurance and how to compute contribu- 
 tion rates, need become an actuary. 
 
 I go further and assert that life insurance is of such importance that every young 
 man and woman should understand it before they leave the public schools. 
 
 If for no other reason, the science of life insurance should be taught in the 
 schools, because of the mathematical training in the important and everyday processes 
 of addition, subtraction, multiplication and division. 
 
 Absolutely these four arithmetical processes are all the requisites for the calcu- 
 lations for the ordinary forms of life insurance contracts, and only an elementary 
 knowledge of equations is necessary to evolve the formulas for use of the commuta- 
 tion columns. And the construction of the latter is simple, as any reader of the 
 foregoing explanations will testify. 
 
 In the effort to make plain the principles and practices of life insurance I may 
 be violating the ethics of the profession, judging from the following criticism of a 
 well known actuary: "I don't believe in so far simplifying technical subjects as to 
 dissipate entirely the professional nimbus or aura to which the standing of the expert 
 in the community is largely due. It is not my intention to uphold quackery in the 
 slightest degree, but merely to protect the public from the danger of acquiring the 
 erroneous opinion that the knowledge of the expert is but little superior to that of the 
 man in the street." 
 
 Our second lesson will be finished with the following recapitulation, which I com- 
 mend to be committed to memory, and having them in mind, let there be a rereading, 
 beginning with the explanation of the exhibits. 
 
 x = A person of attained age x. 
 v x = Present Value of $1.00 for the year of age x. 
 l x = Number living at age x. 
 d x = Number dying at age x. 
 l x v* = D x . 
 d x v* +1 = C*. 
 
 M x = SC X = Present Value of an insurance of 1 at age x 
 = C x +C x+1 +C x+2 +,etc. 
 
 = C x +2C x+1 +3C x+2 +, etc. = 
 NX = SDx = Present Value of an annuity of 1 at age x 
 
 = D x +D x+1 +D x+2 +,etc. 
 Sx = SN x 
 
 = Dx+2Dx + i+3D x+2 +,etc., = 2 2 D X . 
 
 The symbol S 2 denotes the "second summation," or the "sum of the sum of the function 
 under it." 
 
 The C, M and R columns are known as the "Insurance columns," because they 
 are derived from the d column, which latter represents the number dying; and the 
 dying mature the claims for promised benefits or protection. 
 
 The D, N and R columns are known as the "Annuity or Payment Columns," be- 
 cause they are derived from the 1 column, which latter represents the number living 
 and the living make the contributions or payments to provide for the benefit claims. 
 
205 
 
 There is close relation between the number living and the number dying, be- 
 cause the latter are merely withdrawals from the former. 
 
 Thus : At age 20 there are 100,000 living. At age 21 there are 99,500 living. 
 Assuming that death only is the cause of the decreased number at 21, 
 
 then lOC/OOO 99 ^00 mus t equal the number dying, or ^QQ. 
 
 Then, instead of writing 
 
 d 20 v 21 CM 
 
 500X. 438834 = 219. 416801 
 
 we could write 
 
 I 2 o I 2 i v v 21 CM 
 
 (100000 99500) X . 438834 "219.416801 
 
 Performing the multiplication, we have 
 
 V 21 1 20 -V 21 1 21 = C 20 . 
 
 Now, v 21 = vXv 20 , it being known by any one informed concerning the succeeding present 
 values of 1.00, that 
 
 1 X v = v 1 (or simply v) , 
 
 v 1 Xv = v 2 , 
 
 v 2 Xv = v 3 , and so on until 
 
 v 20 Xv = v 21 , so that 
 
 v 21 = v 2 Xv, and 
 
 v 21 Xl2o = vXv 20 Xl 2 o, but 
 
 v 20 Xl2o = D2o, and 
 
 v 21 Xl2i = D2i, then substituting, we have 
 
 vD 2 o D 21 = C2o, or, in terms of x, 
 
 vD x D x+ i = C x , and since N x is the summation of D x , and M x is 
 
 the summation of C x , the identical relations continue, and we have vN x N x+l = M z , and since 
 S x is the summation of N x , and R x is the summation of M x , the identical relation is true of the 
 second summation of D and C, hence we have vS x S x+ i = R x , whence it would be possible to 
 dispense with the "Insurance Columns," C, M and R and obtain single and annual premiums to 
 provide for promised death benefits by the employment of the "Annuity or Payment Columns," 
 D, N and S. 
 
 To avoid confusion it should be explained that English writers and actuaries and one Amer- 
 ican writer whose "Insurance Primer" has been used as a text book in some schools and colleges, 
 in giving the summation D x , record the first subtotal in the N x column opposite the second 
 age from the oldest age, instead of entering it opposite the oldest age. For example, taking 
 Table II, 
 
 D 98 =. 06425 = N 98 
 l) 9 7 =.22272 
 
 S=. 28697 = N 97 
 The British column for N would have no value for the oldest age, 98; but 
 
 N 97 =. 06425 
 
 N 96 =. 28697. Therefore 
 
 N x = D x+1 +D x+2 +, etc., instead of 
 
 N x = D x -j-D x+1 -|-D x+2 +, etc., as used by the American 
 
 writers generally and followed in this publication. The Acturial Society recommend that it be 
 written Nx so that H X = N X _ 1 and 2 X = S X _ ; but the closed N and S have been used in this 
 book. 
 
 Let it be noted that the 
 
 American N 98 equals the British N 97 , 
 American N 97 equals the British N 66 , 
 American N 9fi equals the British N 95 , 
 American N x equals the British N x _i 
 
206 
 
 which latter is the general expression. The equations to show the connection between the 
 benefit and contribution columns, under the British notation would be as follows: 
 
 C x = vD x -D x+1 , 
 
 M x = vN x _,-N x , 
 R x =vS x _ 1 -S x . 
 
 There would, of course, be no change from the American System in the first equation, as only 
 the recording of the totals in the summation of the D column varies from the American method. 
 
 PRACTICAL APPLICATION OF FORMULAS. 
 
 At the outset I want to admonish against an erroneous idea prevailing very gen- 
 erally, that different principles are involved in the computation of premiums for 
 "old line" life insurance companies from those required to obtain the contribution 
 rates for fraternal beneficiary societies. 
 
 For the same benefits promised and under the same conditions of contribution, 
 the net rates would be the same for the life company as for the fraternal society, 
 and the same methods of computation would be followed. 
 
 I have explained, in commenting on the open assessment companies and the "Flex- 
 ible Premium System,," why the fraternal societies are justified in adopting contribu- 
 tion rates that will yield no anticipated surplus above the estimated accumulation to 
 maintain rates level and uniform, or to provide for endowments or annuities at old 
 age. 
 
 The "old line" company contract is "fixed" as to benefit promised and premium 
 required it is a "fixed" contract. 
 
 The Fraternal Beneficiary Society contract is "flexible" in every respect of the 
 benefit promised, or the contribution required, or both. Either the benefit is limited 
 to the amount, of one assessment not to exceed a stated amount, or the contribu- 
 tions are subject to change, or both benefit and contribution may be altered. 
 
 The nature of the life insurance company contract makes a surplus over reserve 
 accumulation a necessity or demands annual redundant premiums. Unless there is 
 special provision in the way of capital subscription for the surplus, its accumulation 
 must be by redundant premium payments. 
 
 To obtain reundant premiums either there must be a low interest or a high 
 mortality assumption, or both. That is to say, the interest assumed to be earned 
 must be lower than actually earned, or the assumed mortality must be higher than 
 the actual, or both the assumed interest must be lower and the assumed mortality 
 must be higher in the computation of premiums than expected in actual operation. 
 
 The fraternal beneficiary society, having the reserved right to pay less than 
 stipulated in the contract or to charge more than the initial rate of contribution, may 
 omit any provision for a surplus over the reserve requirement, and may have com- 
 putations of interest and mortality assumptions on the basis of what reasonably may 
 be expected in future actual operation. 
 
 The "Safety Clause" (the right of extra assessment) in the society contract may 
 well be considered as taking the place of the "Buffer Fund" of the life company. 
 
 For a more extended exposition of this subject, see discussion of the "Flexible 
 Premium System." 
 
 Let it be impressed that the mathematical processes and the formulas and the 
 computations under them are not different when made for a life company than for a 
 fraternal beneficiary society. 
 
 All that has been or may be written on the methods for computing contribution 
 rates is of general application. 
 
207 
 
 Any mortality table may be substituted for that of the National Fraternal Congress 
 Table which has been used in the illustrations. 
 
 Any formula may be applied to the values derived from any mortality table or to 
 the first combined death and disability table having in mind that all formulas in this 
 book follow the American notation and must be modified to conform to the British 
 or ether different notations. 
 
 Any one can convert the following formulas by remembering that (x) or (x-f n), 
 or (x n) represent the age of the person for whom the value is to be obtained, and 
 then enter the commutation columns accordingly for the numerical quantities. When 
 the latter are substituted for the symbols only the arithmetical processes of addition, 
 subtraction, multiplication and division are required for the solution of the problem. 
 To the curious it may be stated that in the original selecton of symbols, the letters 
 were the first of significant words. Now they are used for convenience without par- 
 ticular reference to the initial letter of any word. 
 
 Long before benefits were payable at death, provision for the living was made, 
 and the Government of England granted pensions or annuities on the payment of 
 stipulated sums prior to the existence of life insurance organizations as we now 
 have them. 
 
 The first commutation columns were devised to facilitate the computation of annui- 
 ties, and, for this purpose, only the D and N columns were required. 
 The single premium for a whole life annuity is represented by a x , and 
 a x =N x divided by Drf; hence N was taken as the symbol because the first letter 
 in the word "numerator." And D selected because the first letter in the word ''denom- 
 inator." And when N was summed resulting totals were designated S, because first 
 letter in the word "sum." 
 
 When the commutation columns were extended to life insurance computations the 
 letter C was selected for no better reason than it was next to D in the alphabet, unless 
 for the reason that it corresponded to the present value of claims, and was taken 
 because the first letter in that word. M and R were accepted because of their alpha- 
 betical proximity to N and S. The annuity is represented by a or a because the first 
 letter in "annuity." 
 
 However, the system of notation now recognized and employed by actuaries is 
 arbitrary and must be learned from the books. An individual is at liberty to select 
 his own symbols to give expression to his values. This was my case when I prepared 
 values for permanent total disability benefits. I have given two tables for combined 
 death and disability benefits. Both are from a combination of the mortality assump- 
 tion, according to the National Fraternal Congress Table of Mortality, and disability 
 assumption, according to the Fraternal Society Permanent Total Disability Experience. 
 The first are the Tables originally prepared by me in 1902, before any other Actuary 
 in this country had taken up a study of the question. The second are columns worked 
 out by the formulas recognized by the Actuarial Society of America and the notation 
 is the system promulgated by that Society. 
 
 If anyone will perform the arithmetical calculations involved to obtain results in 
 dollars and cents from the following formulas, he will be in position to assert that he 
 can compute contribution rates for numerous forms of insurance contracts, wtithoui 
 provision for expenses. 
 
 Single Premium for Ordinary Whole Life Contract for Death Benefit only. 
 
208 
 
 For the Annual Net Contribution, 
 P X = M X -N X . 
 
 For the Monthly Net Contribution, 
 Pi 2 = M^ 2 -M2N 2 
 
 For the Single Premium for a Whole Life Annuity payable annually, with the first 
 payment at once, 
 
 a x = N x -i-D x . 
 
 For the same with the annuity payable monthly, 
 a x 2 = N x 2 -r D " 
 
 Single premium for a Deferred Whole Life Annuity payable annually, 
 | a _ xj D 
 
 n|x i>l x _j-n~ LJx* 
 
 and payable monthly, 
 
 For an annual contribution to provide for the Annuity to begin at age (x+n), Pre 
 mium and Annuity payable monthly, 
 
 p a i2_ N i2 ^_i2(N 12 N 12 ^ 
 r n a x - IN x +n I^IM x IN x +J 
 
 For the Single Premium for a Temporary Annuity, 
 | n a x or a^ = N x - N x +n -i- D x . 
 
 For the same with the Annuity payable monthly, 
 
 The Single Premium for Temporary Insurance, 
 n A x or A-,= (M x -M x+n )-:-D x . 
 
 The annual premium. 
 
 | n P x or P^- r (M x -M x+n ) - (N x -N x+n ) . 
 
 Payable monthly. 
 
 \Jf? or P ^- (M-M',f J + (Nj'-Njy . 
 
 Single Premium Term to Age 70, 
 
 | 7 o_xA x =(M x -M 70 )-KN x -N 70 ). 
 
 Monthly premium for same. 
 
 By substituting for "70" any other age, as 50, 55, 60, 65, etc., the formula will give 
 rate for Term, to Age 50, 55, 60 or 65, etc. 
 
 I will not burden the pages further with formulas for monthly contribution rates. 
 If monthly rates are desired make changes in formulas as indicated above, and enter 
 the commutation columns computed on the monthly basis. If these are not given, 
 the monthly rate can be obtained approximately from the formula 
 
 P^ 2 = 24P x -r- (24 ll(P x +d)), where d is equal to 1 v at the rate of interest assumed in 
 the calculation of P x . 
 
209 
 
 W^en the rate is 4 per cent, a close approximation for the monthly contribution 
 for the whole life insurance for ages younger than 42 is to multiply the annual rate by 
 .0875. After age 40 or 42 the resulting rate from using this factor will be somewhat 
 too small, the deficiency increasing for the advanced ages. By gradually increasing the 
 multiplier, the approximate accuracy can be maintained. 
 
 However, it is much better to construct commutation columns on the monthly 
 basis for the reason that approximation formulas are not readily adapted to monthly 
 contributions for Term, Limited Payment and Endowment Contracts. The work of 
 conversion is not great when using the following formulas : 
 
 The commutation columns on the monthly basis for the National Fraternal Con- 
 gress Table of Mortality and 4 per cent interest, given in this book, and originally 
 computed for another book, were derived by very complicated formulas, in which I 
 take no pride. 
 
 However, the long and tedious process taught a valuable lesson, namely, that math- 
 ematical and algebraic refinements entail useless waste of time when dealing with 
 vital statistics and the contingencies of living and dying. 
 
 Since 1900 I have investigated the mortality experience of about 100 different fra- 
 ternal beneficiary societies, and have made annual investigations of a score of old 
 and large societies, to find varying ratios for each Society, and for each investigation 
 of the same Society. 
 
 A reference to the diagrams which graphically show the irregularities of death 
 rates from age to age will convince anyone that we deal with an eccentric value when 
 treating average mortality ratios. 
 
 In the early days of my studies I accepted the often repeated statement that 
 the death ratios amongst a large number of persons were regular, and in the unvary- 
 ing character of their operation were like unto the law of gravitation. 
 
 I am inclined to believe that the man who was responsible for that assertion had 
 no experience in dealing with actual facts, but that he had all of his information 
 from books which discuss pretty theories. 
 
 I have no purpose to belittle the advantage of mortality tables and derived values. 
 They can be handled as efficient tools for the building of great and successful life 
 insurance companies and societies. But the truth of the case justifies the dissipation 
 of the prevalent idea that the mortality table is in correspondence with actual death 
 rate. 
 
 The mortality table is a fiction, corresponding exactly with no actual experience, not 
 even with that upon which it is based. Observe "graded" mortality ratios in compari- 
 son with the irregular ones in actual experience as represented in the graphic illustra- 
 tions heretofore given. 
 
 The facts do not support the theory of refinements in mathematical calculations 
 which have been presented in many publications. The main point is to be sure and 
 get on the side of safety, since a few cents added to the rate will do no harm and 
 may prevent readjustment. 
 
 Twenty years of activity in the effort to help the fraternal societies out of trouble 
 have taught many lessons, and one of the most valuable to me is that a knowledge 
 of the facts in a case is of more importance than anything else in deciding upon the 
 best plan of business conduct. 
 
Theory as a generalization of principles on which practice proceeds is most excel- 
 lent 'as a mean toward a positive end. But the results of actual and practical opera- 
 tion modify and should control theory. 
 
 Theory and practice in their relation to each other may be likened to the science 
 of composition as distinguished from the art of execution in music. 
 
 Theories and refinements in mathematical computations are indispensable assets for 
 an actuary, nevertheless, they are almost worthless if the possessor has not the expe- 
 rience to make commonsense application of them in actual practice. 
 
 With the( opportunity for observation covering thirty-five years of business con- 
 tact I have found that intelligent men receive the best part of their education after 
 leazring institutions of learning. It is original thought that counts, and it cannot be 
 acquired from books, however useful (and they are extremely useful) books and 
 schools are, as aids. 
 
 This diversion was due to the reflection upon the computations of the N 12 and M 1 ' 
 columns in the year that the National Fraternal Congress formally ratified the mor- 
 tality table which bears its name. I can give no better example to sustain my com- 
 ment than an explanation of the method adopted in that instance. 
 
 To get N x x 2 , D z x 2 was first obtained, thus : 
 
 Assuming an even distribution of deaths occurring in a year, if there are lx persons 
 living at the beginning of a year, and if d x die during the year, the deaths each 
 month will be represented by d x divided by 12. 
 
 The first instalment of the (annual premiums will be paid by lx persons ; the sec- 
 ond by l x (dsH-12); the third by l x (2d x -i-i2) ; . . . and the twelfth by 
 
 Furthermore, at the end of the year, the first instalment will amount to (l-f-i)X(l x -r-12), i 
 being the rate of interest. Thesecond instalment will amount to (l+(lli-r-12)) x(l x (d x ^ 
 12)) divided by 12. The third instalment will amount to (l+(10i-^12)) X (l x -(2d x -7-12)) 
 divided by 12; -and the twelfth will amount to(l+(i-f-12))x (l x -(lld x -r- 12)) divided by 
 12. 
 
 The sum of these amounts is 
 
 12 12 
 
 11+2.1-1-3.9+4.8+ +10.2+11.. 
 
 To obtain the final term it was necessary to change 286i to 288i, but the consequent 
 error is insignificant. 
 
 To get D r x 2 the foregoing expression was multiplied by v x+1 , since it represents the 
 value of the instalments at the end of the year. N X 2 =SD X 2 . 
 
 The M x 2 column has nothing to do with the monthly payment of premiums, but 
 it was constructed on the assumption that the death claims are to be paid within a 
 month of approval which is the general practice. 
 
 If claims equal to d x -i-l2 are to be paid at the end of the first month, the equivalent sum 
 of money at the end of the year, will be (l-f(lli-rl2)) X(d x -M2). For the second month' 3 
 
 claims the equivalent will be (l+(lOi^!2)) X(d x -J-12). and for the twelfth month 
 
 it will be d x -7-12. 
 
211 
 The sum of the instalments is, 
 
 This expression multiplied by v x+1 will give C 1 *. M 
 
 The values obtained by the complicated formulas are substantially the same as se- 
 cured from the approximation formulas first given. 
 Annual Premium for Limited Payment, 
 
 n P x = M x -KN x -N x+n ). 
 Annual Premium for Endowment Insurance, 
 
 PxH = (M x -M x+n +D x+n )-=-(N x -N x+n ). 
 Single Premium for Endowment Insurance, 
 
 Annual Premium for $1,000 of Insurance payable at death prior to age 70, or payable 
 at age 70 in 10 equal annual instalments, first payment at age 70; contributions cease at 
 70. If insured dies before instalments are paid the balance of $1,000 is paid in one 
 sum to beneficiaries. 
 
 lOOOPE^^I = 1000M x +100(N 70 -N8o) - 100(R 70 -R8o) -^N X -N 70 = 1000M x -hlOOJ(S 70 -S8o) 
 
 -r-N x -N 70 . 
 
 If contributions are to continue during the payment of instalments or until death, 
 the denominator would be 
 
 N Nso. 
 
 Another formula is to treat the present value of the instalments at 70 as an 
 endowment. 
 
 And 
 
 I = 1000(M X -M 70 )+875D 70 ^D X . 
 
 Annual Premium for $1,000 at death prior to 70, or an annuity for life of $100, first 
 payment at 70. Contributions cease at 70. 
 
 | 7 o-xPx=1000(Mx-M 7 o)+100N 70 4-N x -N 7 o. 
 
 Single Premium for a death benefit of I in the first year and increasing by I until 
 death 
 
 (IA) x =R x -=-D x . 
 
 The Annual Premium 
 
 (IP)x=R*-N x . 
 
 Annual Premium for whole life insurance, all premiums paid to be returned in 
 addition to the sum insuranced. 
 
 P X = M X -(N X -R X ). 
 
 Annual Premium for whole life insurance, all premiums paid to be returned with 
 simple interest at the rate i with the sum insured, 
 
 Annual Premium for death benefit in the first year of $1,000 less the amount of 
 the premium multiplied by the years of "Expectancy," and increasing for each subse- 
 quent year by the amount of the premium to the end of "Expectancy," 
 
 P x =1000M x --(N Jt+ e x M x -(R x+l -R x , 1+ eJ). 
 
212 
 
 Annual Premium for a life annuity of i beginning at age 70, no benefit payable in 
 event of prior death. 
 
 Annual Premium for an insurance of i at death, with an annual reduction in the 
 contributions by the twentieth part of the first payment, so that the contributions dimin- 
 ish each year and cease after twenty payments. 
 
 My original purpose was to incorporate amongst the formulas one for each society, 
 but to date only sixty-six have sent their laws and constitutions, and half of that 
 number announce contemplated changes of material or minor importance, while up- 
 wards of one hundred give as the reason for not sending their laws that a new 
 edition soon will be necessary on account of probable changes to meet conditions 
 which are expected to develop under the operation of the valuation laws. In these 
 circumstances the original purpose had to be abandoned. However, I have under- 
 taken to give a sufficient number of formulas to enable the student to apply the com- 
 mutation columns in any ordinary case. For the postage I will pass upon any special 
 formula submitted by a subscriber to this book. 
 
 A NOVEL PLAN. Recently a very novel plan has come into prominence from the activity of 
 its originator, The Heralds of Liberty, of Huntsville, Alabama, with executive offices in Phila- 
 delphia. Because it is unique and very much out of the ordinary, the plan is being severely 
 criticised by insurance agents and journals, and by some Insurance Commissioners. Some go 
 so far as to characterize it as a gambling scheme, because the member holding the lowest num- 
 bered certificate in his class may elect to surrender his certificate for cancellation in considera- 
 tion of a cash payment, the election being granted at the death of a member of his class. In 
 brief, $500 is made the unit of protection payable to beneficiaries at the death of the member, or 
 a similar amount to the holder of the lowest numbered certificate on the death of a member who 
 entered the Society at the same age and was in the same "Class" with the holder of such certifi- 
 cate. Originally an Old Age Double Endowment was promised on attaining to a stated age 
 above 70. 
 
 No objection can be raised to the promise to pay the death benefit, nor to the former promise 
 to pay an old age benefit. 
 
 The payment to a living member at the death of an associate member is the cause of the ad- 
 verse criticism. 
 
 The members are placed in "Divisions" and "Classes." A "Division" is composed of not 
 exceeding 1000 persons of all ages at entry within the admission ages. A "Class" is composed 
 of the members of a "Division" who entered at the same age. Each member of a "Class" is 
 given a number and at the death of one of the "Class," the Society will pay $500 to the bene- 
 ficiary of the deceased member and $500 to the member of the same "Class" and "Division" 
 who holds the lowest numbered certificate. 
 
 It is charged that the payment to the living member is a "gamble," or "lottery." 
 
 To the extent that life insurance is based upon the chances of living or dying, the life insur- 
 ance business is a "gamble," or "lottery." To no greater extent is the payment of a sum of 
 money to a surviving member on the death of an associate member. Survivorship insurance 
 is too old and too well established and too favorably known to be characterized as a "gamble." 
 
 It is argued that in ordinary survivorship insurance the parties as insured or beneficiaries 
 are named in the contract, which is contained in one policy; but in this case each member holds 
 a separate certificate and a payment is promised to Number 1 in the event of the death of Number 
 2, or Number 10, or Number 20, or any other numbered person in his "Class." 
 
213 
 
 The fact is ignored that the identification in advance of death is immaterial in the treatment 
 of the probabilities involved. The death of some member of the "Class" is the event that fixes 
 the time of payment, and it is wholly immaterial whether the amount be $1000 payable in one 
 sum or in two sums of $500 each, if provision has been made for the total payment. 
 
 In the text books we learn of joint life probabilities concerning persons designated u, v, x, y 
 and z. Where is the difference in calling them 1, 2, 3, 4 and 5? 
 
 It is perfectly orthodox to promise something to u in the event of the death of v, or of x, or 
 of y, or of z. Why a "gamble" to promise something to 1 in the event of the death of 2, or of 3, 
 or of 4, or of 5? 
 
 "But the latter are not named in the same policy contract," is a reply. 
 
 But if they are recorded upon the books of the Society, definitely associating them in mutual 
 cooperation, and specifically setting them into a designated "Class," limited to a given number, 
 and each furnished with a certificate reciting the conditions of insurance, and all are subject to 
 the same probabilities and the Society to the same liabilities as if covered in a single policy con- 
 tract, wherein is there any "gamble?" 
 
 Every reputable and informed actuary will admit that contribution rates can be computed 
 for the payment to the holder of the lowest numbered certificate (or for that matter to the holder 
 of any numbered certificate in the "Class") upon the death of any member of the "Class." And 
 the rates can be computed upon the basis of any ordinary mortality table for single lives, or with 
 the aid of a table for joint lives. This fact takes the case from amongst those to be characterized 
 as "lotteries," or "gambles," or "frauds." 
 
 The formula for the benefits stated is one of the simplest in form, when employing Joint Life 
 Commutation Columns. 
 
 500M xx -r-Nxx = Annual Premium, which provides $500 to the beneficiaries of the deceased and 
 $500 to the surviving member of the same "Class" holding the lowest numbered certificate. (It 
 could as easily be the highest numbered, or the next serial number to that of the deceased.) If 
 the Single Life Columns are employed we have 
 
 P x = 1000 (M x -M x+n )-KN x -N x+n ), where 21 x+n =l x . 
 
 The two formulas are substantially equivalent. I give the rates for two equal lives in the 
 appendix, derived from the "Makehamized" N. F. C. Table for Joint Lives. Using the same Table 
 for Single Lives, rates by the last formula may be obtained for comparison. For the following 
 ages the net annual premiums are as follows, on basis of, 
 
 Ages. Joint Life. Single Life. 
 
 20 $ 8.15 $ 8.09 
 
 30 10.65 10.53 
 
 40 15.08 14.76 
 
 50 23.28 22.50 
 
 60 39.28 38.15 
 
 From an actuarial standpoint, the formulas for contribution rates to provide for the benefits 
 of many societies would be very interesting, and I have been tempted to give the most unusual. 
 However, for the reason that many changes are contemplated, and because no question has been 
 raised concerning the benefits by Insurance Departments, I have not multiplied examples. The 
 Heralds of Liberty, with their copyrighted plan, have brought about an especially interesting 
 question which justifies the foregoing analysis. 
 
 To avoid confusion from similarity I give the following expressions together : 
 
 n P x = Annual Premium for Limited Payment. 
 n | P x = Annual Premium for Deferred Insurance. 
 I n Px = Annual Premium for Temporary Insurance, 
 Or P | = Annual Premium for Temporary Insurance. 
 P I = Annual Premium for Pure Endowment. 
 P~i = Annual Premium for Endowment Insurance. 
 
214 
 
 As heretofore stated, the notation for the first Death and Disability tables (see 
 Appendix) was my own, because it was the first American production of its kind. I 
 supplied other actuaries with the statistics and other tables have been constructed, and 
 recently the Actuarial Society of America adopted a system of notation which follows. 
 I have prepared a second series of Death and Disability values, which appear for the 
 first time in this book. I also regraded the National Fraternal Congress Table of 
 Mortality by the Makeham formula to facilitate the computation of contribution rates 
 for joint lives. That table and derived values appear in the Appendix. 
 
 DISABILITY SYMBOLS. 
 l aa = the number of active lives at age x. 
 lx = the number of invalid lives at age x, 
 
 then l x a +l x = l x . 
 
 l x =the survivors at age x in a mortality table based on invalid lives (not to be confused 
 with lx amongst whom there are additions each year from those just disabled). 
 
 d aa = the number dying as active lives between ages x and x-fl. 
 
 d^ =the number dying as invalid lives between ages x and x-f-1 = l x +i x ~l x r 
 
 i x =the number of active lives becoming invalid between ages x and x+1. 
 
 Px = the probability of an active life aged x being alive one year hence, whether then act- 
 ive or invalid. 
 
 q x =the probability of an active life aged x dying within a year, whether still active or after 
 becoming invalid, 
 
 then Px+q x = 1 - 
 
 p x =the probability of an invalid life aged x being alive one year hence. 
 
 q x = the probability of an invalid life aged x dying within a year, 
 
 then p x +q x =l - 
 
 p aa = the probability of an active life aged x being alive and active one year hence. 
 p ai =the probability of an active life aged x being alive but invalid one year hence. 
 q aa = the probability of an active life aged x dying while still active within a year. 
 q ai =the probability of an active life aged x becoming invalid and dying within a year. 
 
 r x =the probability of an active life aged x becoming invalid within a year, 
 
 ,1 aa i ai a aa i ai a ai i ai aa i aa i aa i ai _j_ aa i ai , 
 
 then p x +p x =p x ; q x +q x =q x ; p x +q x = r x ; Px +q x = -r x ; Px + Px +q x +q x =1. 
 
 r x ='the absolute annual rate of invalidity, 
 
 xu ' ix 
 
 t * en r, i "^-* 
 
 rVi x iii 
 
 D v =v lv 
 
 N x = 
 
215 
 
 o^ 1 = value of an annuity payable at the end of each year provided an active life now aged 
 
 x is then alive but invalid. 
 
 a^ = value of an annuitynlue on an active life payable during survival, active or invalid. 
 a* a = value of an annuity-due on an active life payable during activity, 
 a^ = value of an annuity -due on an invalid life. 
 
 JaJly ) = value of a deferred temporary annuity payable at the beginning of each of t 
 years deferred n years, pVovided the disability occur during the n years. 
 
 a x a Tn[ :y^x"| = value of an annuity-due on an active life for n years or for y x years, which- 
 ever is the shorter, during activity. 
 
 FORMULAS FOR RESERVES. Another commonly used method for determining the 
 reserve at any age is by actual accumulation of premium receipts, less death losses. 
 Thus, lx persons insured at age x each pay P x dollars annually in advance. The total 
 payments for the first year are, therefore, l x XPx- 
 
 This sum accumulates interest at the annual rate of i, and amounts, at the end of the year, 
 to l x P x X(l+i). The death losses payable at the end of the year equal d x dollars. Subtracting 
 these losses, we have left l x P*(l+i) d x . This remainder belongs to the survivors, who num- 
 ber l x d x , or I x +i; therefore, the share of each is 
 
 - Multiplying both numerator and denominator by v x+1 , and remembering 
 
 that l+i = , we obtain 
 
 l x v*P x -y X+ 'd x 
 
 D C 
 
 If, now, we represent ~ by u x , and n by k x , the expression becomes P x u x k x , 
 
 which is the reserve to the credit of each survivor at the end of the first year. To find the 
 reserve at the end of the second year, add P x , the second annual premium, and proceed as before, 
 using u x+ i, and k x +i in place of u x and k x . By continuing the process, the reserve at the end of 
 any specified year may be ascertained. This is known as the retrospective method. 
 
 A simple formula for obtaining the reserve on a continuous level annual premium 
 for Whole Life Insurance is : 
 
 a z 
 
 The required reserve accumulation on Endowment and Term Insurance is obtained 
 by use of Temporary Annuities in_ a similar way as above indicated for the use of 
 Whole Life Annuities in Whole Life Insurance. 
 
 The prospective and retrospective methods will bring out identical results under 
 the same assumptions of death rate and interest rate otherwise not. The retrospec- 
 tive formula is : 
 
 y _Px(N x -N x+n )-(M x -M x+n ) 
 D x+n 
 
 (Nx N x + n )-i-D x4 . n = n U x , which multiplied by the protection by P x , gives the accumulated 
 contributions. (M x -M x+n )-j-D x+n = n K x , which multiplied by the protection gives the ac- 
 cumulated claims. The difference is the accumulated reserve. 
 
 In the following illustrations are shown the practical workings of three methods 
 of computing reserves. Nos. i and 2 are applicable to any level premium contract 
 
216 
 
 of insurance. No. 3, which is more rapid than either of the others, is, unfortunately, 
 limited to whole life insurance, with continuous annual premiums, being, in fact, a 
 special case of No. 2.. All three illustrations are based on the National Fraternal 
 Congress Mortality Table and four per cent interest, and the same entry age is 
 assumed in each, so that the results may be compared with one another, and with 
 the table of reserves in the appendix and "Friendly Societies and Fraternal Orders." 
 In No. 3, the reserves obtained are on an assurance of one dollar, and should, there- 
 fore, be multiplied by 1,000 before comparison is instituted. When extensive reserve 
 tables are to be computed by the methods of Nos. 2, or 3, the work will be greatly 
 facilitated by the preliminary tabulation of A x+ i A x in the former case, and of a x a x +i 
 in either case. Reserve at end of years is printed in italic figures. 
 
 No. 1. 
 
 P2o= ........................... 10.34 
 
 1120= ........................... 1.0452 
 
 P2oXu2o= ...................... 10.807 
 
 k M = ........................... 5.025 
 
 iV 2 o = (P 20 Xu 2 o)-k 20 = ........... 5.78 
 
 ?-,= ......... .................. 10.34 
 
 iV^+P^ ...................... 16.12 
 
 u 21 = ........................... 1.0453 
 
 (iV 20 +P 20 )Xu 21 = ................ 16.850 
 
 k 21 = ........................... 5.061 
 
 2 V 20 =(iV 20 +P 2 o)Xu 21 -k 21 = ...... 11.79 
 
 No. 2. 
 A M = ............. ....... 211.86 
 
 A 21 = .................... 216.42 
 
 a20 = ..................... 20.492 
 
 a 21 = ..................... 20.373 
 
 a 20 -a 21 = .................. 119 
 
 P2o= ..................... 10.34 
 
 iV 2 o = A 2l -A 20 +P 2 o(a 2 o-a 21 )= ..... 
 
 A 22 -A 21 = ...................... 
 
 a 21 -a 22 = .................. 123 
 
 P2o(a 2 i-a 22 ) = ................... 
 
 2V 2 o=iV 2 o+A 22 -A 21 +P 20 (a 21 -a 22 ) = 
 A 23 -A 22 = ...................... 
 
 a 23 -a 21 = .................. 128 
 
 P 2 o(a 22 -a 21 ) = ................... 
 
 3 V 20 = 2 V 2 o+A 23 -A 22 +P 2 o(a 22 -a 23 ) = 
 
 4.56 
 
 1.23 
 
 5.79 
 4.73 
 
 1.27 
 
 4.92 
 
 1.32 
 
 18.03 
 
 No. 2 Continued. 
 
 Pa)= 10.34 
 
 2 V 2 o+P 20 = 22.13 
 
 u 22 = 1.0453 
 
 GVa+Pa)) Xu 22 23 . 133 
 
 k 22 = 5.097 
 
 3 V 2 o=( 2 V 2 o+P 20 )Xu 22 -k 22 = 18.04 
 
 P M = 10.34 
 
 3 V 20 +P 20 = 28.38 
 
 u 23 = 1.0453 
 
 ( 3 V 20 +P 20 )Xu 23 = 29.666 
 
 k 23 = 5.133 
 
 4 V 20 =( 3 V 2 o+P 2 o)Xu 23 -k 23 = 24.53 
 
 No. 3. 
 
 a2o= 20.492 Multi- 
 
 a a = 20.373 ply by 
 
 a20 -a 21 = 119 1,000 
 
 iV= (* an) -J-a2<> = 00581 
 
 a 21 - a22 = 123 
 
 (a 2 i-a 22 )-j-a2o = 00600 
 
 a 22 -a 23 = ". i28 
 
 (a 22 -a 23 )^-a2o= 00625 
 
 sV 2 o = 2 V 20 +(a 22 a 23 )-:-a 2 o= 01806 
 
 a28-a 24 = 133 
 
 .00649 
 
 .02456 
 
 a 24 -a 25 = 
 (a 24 
 
 138 
 
 .00673 
 .03128 
 
 AN EXAMPLE. 
 
 The foregoing formulas were made from the benefits actually promised by com- 
 panies and by societies. The last one now given will show how differently different 
 persons will prepare formulas from a different view point of identical provisions in 
 the certificate contract. 
 
 The society in question promised to pay $1,000 at death prior to age 70 and attain- 
 ing to age 70 promised a payment of $50, and at the beginning of each subsequent 
 year for 9 years to pay a similar amount; that is, would pay $50 on attaining age 71, 
 $50 on attaining age 72, 73, 74, 75, 76, 77, 78 and 79, being a total of endowments or 
 annuity payments of $500 in ten equal annual instalments. Premium payments would 
 continue until death, and were not altered on account of the decrease in the amount 
 
217 
 
 of protection, due to the payment of the $50 annuities at and after age 70. The $500 
 of protection against death was continued after the annuity payments were discon- 
 tinued. Since the contributions were to be made unaltered at the level rate as of age 
 of entry until death; therefore, as seen from former formulas, the denominator in 
 this case would be N. The numerator, or the benefit side of the contract, would be 
 a straight $1,000 death benefit to age 70, and then decreasing the death benefit by $50 
 for each year to age 79 inclusive, and then continuing $500 death benefit from 79 to 
 the end of life. i,oooM x will represent the benefit side to age 70. From 70 the death 
 benefit will decrease $50 a year. According to former illustrations we must use the 
 R column for the decreasing protection, and we would have, beginning the reduction 
 at 70, 50 (R 70 RSO). In the place of the decreasing amount of death benefit there is an annuity 
 of $50, and, according to former illustrations, the annuity would be represented by the N col- 
 umn, so that we would have a payment of $50 each year, and hence we would have $50 (N 70 NSO) ; 
 therefore the complete enumerator would be 1,OOOM X 50(R 70 Rso)-f 50(N 70 NSO) for the 
 straight life and decreasing temporary insurance, and for the instalment of $50 annually from 
 70 to 79 inclusive. These instalment endowments are of the nature of a deferred temporary 
 annuity. We have seen that R can be written in the terms of S, and when substituted in the 
 above numerator we would have R 70 = vS 70 S 7 i and R8o = vS8o S 8 i, whence 1,OOOM X 50(R 70 
 R8o)-r-50(N7o-N 8 o) = l,OOOM x -50(vS 7 o-S 7 i-vS 8 o-S 8 i-N 7 o+N 8 o), but asSx is equal to Sx+i 
 -|-Nx, whence the last expression = l,OOOM x -f-50(l v)(Svo Sso), but as 1 v equals d, 
 this becomes l,OOOM x +50c? (Syo Sgo), which is the formula that probably will puzzle the 
 operator who went to the trouble of constructing the modified C and the modified M columns in 
 order to obtain the results which are possible through the use of the last named simple formula. 
 It will be appreciated what may be done by the use of the commutation columns 
 when it is stated that the operator who undertook to obtain the annual premiums for 
 the benefits above described modified the regular C column (as given in the appendix 
 to this book for the National Fraternal Congress Table of Mortality) from 98 to 70 
 by taking one-half thereof for all of the ages from 98 to 79, then for age 78 he took 
 eleven-twentieths of the regular C column and for 77 twelve-twentieths, and so on, 
 increasing one-twentieth until and including age 70, where he had nineteenth-twentieths 
 of the regular C column. For age 79, and all ages younger, the regular C column was 
 used. By summing this new C column he secured a new M column and used it in 
 the regular way for obtaining contributions with a decreasing insurance from 70 to 80, 
 and with a constant insurance from 80 to the end of life. 
 
 AN ENGLISHMAN'S CONCLUSION. 
 
 I shall conclude this chapter with a quotation from Thomas Fatkin, of Leeds, 
 England, who issued a 62-page pamphlet in 1906 in advocacy of teaching life insurance 
 and annuity principles in the public schools, and undertook to demonstrate that the 
 computations involved simple arithmetical processes, in connection with a "preparatory 
 table," meaning "commutation columns :" 
 
 The principles upon which hundreds of millions of pounds are financed in this 
 country are only understood by a few competent men, who could probably be put in 
 a single room of a small cottage. How long will the Board of Education let this state 
 of things continue? 
 
 It is probable that most of the 90,000 teachers could explain the following problem 
 to their pupils : 
 
 V(H-2V30) V (7 -2V 10) V(8X4V3) 
 
 But, at the same time, it is very possible that very few of them could solve the follow- 
 ing problem: 
 
218 
 
 Assuming that a teacher now 25 years of age desired to provide himself with an 
 annuity of 50 pounds, payable quarterly, on arriving at 60 years of age, and in the 
 event of death before 60, half the amount subscribed to be returned to his representa- 
 tives. How much per annum should the teacher subscribe? 
 
 I have shown that the solution of such problems are only simple arithmetical opera- 
 tions with the help of a preparatory table. 
 
 In the "Advanced Course of Mathematics in the University Tutorial Series," a 
 work used in our universities, and also used in the "University Correspondence Col- 
 lege," for training students for the matriculation examination of London University 
 and for higher honors, there are abundance of such problems as the above "Surd" 
 problem. 
 
 I notice only two problems in this great and deservedly popular work, which treat 
 on two very simple questions affecting life Annuities and Assurances. The answers 
 to both problems appear to be incorrect. I will give one of them, which appears on 
 page 275. 
 
 "A man aged 54 in the receipt of a pension of 100 pounds a year net, wishes to com- 
 mute that for a present payment, interest being reckoned at 5 per cent. How much 
 does he receive if his expectation of life is 17 years?" The answer given is 1,127.406 
 pounds. 
 
 If the eminent mathematical authors had put the problem as follows: "A man 
 aged 54, in the receipt of a pension of 100 pounds a year, certain for 17 years, wishes 
 to commute that for a present payment, interest being reckoned at 5 per cent." The 
 answer would be 1,127.4066 pounds, which can be ascertained from tables published 
 above a century ago. 
 
 The formula for the Annuity Certain is : 
 
 100X(1.05 17 -1) n 1107 , f 
 Value of Annuity = 1 17 127.4066, 
 
 a mere geometrical progression sum. 
 
 The formula is not, however, applicable to Annuities on life, whatever may be the 
 average number of years "Expectation." I allude to this problem because I believe 
 that there are a great many arithmeticians, accountants, and financiers who fall into 
 the same error. 
 
 An eminent mathematician above 70 years ago wrote : "Many persons who have 
 but an imperfect knowledge of the subject (i.e., Annuities) erroneously suppose that 
 the value of an Annuity payable during the life of an individual is found by calculat- 
 ing the value of an Annuity Certain for a number of years equal to the expectation of 
 life of the individual." 
 
 According to the mortality rate upon which my calculations are made (i.e., the 
 mortality experienced amongst members of Friendly Societies as ascertained by the 
 Government Actuary) a man at 55 has an expectation of future life of 15.904 years. 
 If he have a pension of 100 pounds net, payable at the end of each year, what is the 
 commutable value of the pension at 2.y 2 per cent interest? 
 
 , , N M 15646.0662 
 Formula as before p- = 187663 . 2477 = l L994277 
 
 the value of 1 per annum X 100 = 1199 8s 6.65d. 
 
 Let any student work out the commutable value on the principle of taking 15.904 
 years certain and 2*4 per cent as the basis of valuation as adopted in the mathematical 
 work referred to and he will make the value 100 pounds too much. 
 
 According to the Carlisle rate of mortality, a person at 29 years of age has an 
 expectation of just 35 years, the commutable value of a pension of 100 pounds at age 
 29 made upon a correct principle (Carlisle 2^ per cent) is 2,143 IDS 7d. 
 
 According to the data I have used in my calculations, Government Friendly Societies 
 2*4 per cent, the commutable value would be : 
 
 2,142 is od, a difference of only i 95 7d as compared with Carlisle rate of mortality. 
 
219 
 
 If worked out on erroneous principles, i.e., adopting the 35 years' "expectation" 
 as a basis, the commutable value would be 2,314 IDS 4d, or 172 gs 4d too much. 
 This would be a serious difference if a few million pounds were invested in such a 
 fund. 
 
 How long will the Board of Education permit such simple formulae as those to 
 which I have alluded to remain untaught in our public schools? 
 
 DEFINITIONS. 
 
 INSURANCE is or should be a provision for indemnity against loss. Fire Insurance 
 is an indemnity against loss from fire; Marine Insurance against loss by accident at 
 sea; accident Insurance against loss by accident either to the person or to property. 
 Disability Insurance, which includes accident insurance, is to indemnify against loss 
 of time, either due to sickness or accident which disables a person or prevents him 
 from attending to his ordinary occupation. Sickness Insurance is to indemnify 
 against loss oi time by sickness, and is also included under disability. Life Insurance 
 is to indemnify against loss from death; that is to say, the bread winner upon whom 
 are dependent other persons, is of value to them, and should he die they will sustain 
 a loss because of that event. Therefore, accepting the definition that insurance is to 
 indemnify against loss, there can be or should be no insurance where loss will not 
 result either from accident or disease or death or fire or storm or other causes of 
 loss, as from burglary and for theft and for mistakes of different kinds. 
 
 Insurance has been diverted from its proper channel by failure to confine it to 
 indemnifying against loss. It occurs to me that personal insurance would be about 
 perfect if a man were to insure against loss from death during the period in which 
 he has dependants and when he is a support to some one ; and during the same period 
 he should insure against the loss of time through disability from accident or sickness, 
 and during the same period, while he is able to earn not only a living, but to lay 
 aside something, he should contribute to a deferred pension ; that is, he should make 
 annual or monthly payments from his youth to old age, when there should be a dis- 
 continuance of the contributions and also a discontinuance of the insurance against 
 death and of the insurance against disability, and he should enter upon a pension or 
 an annuity, or should have paid to him one sum in cash for investment and for the pro- 
 tection of himself in old age. The trouble I have found in putting such a plan into 
 operation is the desire on the part of Americans to have large amounts in the way 
 of annuities or in the way of disability benefits. To give the amount of death benefit, 
 and the amount of disability benefit desired by the ordinary workingman, when it 
 comes to considering a contract of this character, and then an amount sufficient for 
 his old age, as he considers it, the rate of contribution would come so high that it is 
 beyond the ability of the ordinary workingman to pay. If a moderate amount of 
 insurance protection in the way of death benefit, disability benefit and a pension for 
 old age would satisfy the average American citizen, I should say that this combined 
 protection would be the most satisfactory and certainly would meet the needs of the 
 great majority of people. 
 
 A POLICY is the contract written by Life Insurance Companies. 
 
 A CERTIFICATE is the contract written by Fraternal Beneficiary Societies. 
 
 There is a material difference between a policy issued by Life Companies and a 
 certificate issued by Fraternal Societies, due to the fact that the former is a fixed 
 contract, and cannot be avoided during its term by the life company, while the member 
 or policy-holder may discontinue or break his contract at his option. A certificate 
 issued by the Fraternal Societies is not a fixed contract, but flexible. While it cannot 
 
220 
 
 be voided during its term by the Society, and while the member may discontinue it or 
 break his contract at option, yet there are obligations (while he is a member) upon 
 the holder of the certificate which is not present in the provisions of the policy of a 
 life insurance company. 
 
 Policy and certificate contracts vary greatly, the same company or the same society 
 issuing many forms of policies or certificates. 
 
 THE ORDINARY WHOLE LIFE policy is one which promises to pay a death benefit 
 or a disability benefit at death, or in the event of disability whenever it may occur, 
 and the contributions continue until death. 
 
 THE LIMITED PAYMENT contract is one where the contributions are limited either 
 to one payment or to 10 payments or 15 payments or 20 payments, or as may be 
 agreed upon at the issuance of the contract. The death or disability benefit is for 
 the whole period of life similar to a benefit promised under an ordinary whole life 
 contract. At the date when the contributions cease that is, at the end of the premium- 
 paying period the reserve or accumulation on such certificates is equal to the single 
 premium at the age at the end of the premium-paying period. 
 
 ENDOWMENT INSURANCE is a contract promising to pay a death and disability ben- 
 efit within a term of years, or at the end of the period to pay an endowment or an 
 amount in cash or the amount of the certificate or policy by instalments. This is a 
 combination of term insurance and pure endowment insurance as heretofore explained. 
 
 TERM INSURANCE is temporary insurance for a designated term or period, which 
 may be for 5, 10, 15, 20 or any stated number of years, or to a designated age, as age 
 50, 60 or 70. 
 
 RENEWABLE TERM INSURANCE gives the privilege of renewing the insurance at the 
 end of the given term, without medical re-examination, by contributing at an increase 
 contribution rate for the renewed term. 
 
 CONVERTIBLE TERM INSURANCE gives the privilege of converting or changing con- 
 tracts without medical re-examination, but at increased contribution. The transfer 
 should not be granted to a lower contribution rate for the same benefit. 
 
 INSTALMENT INSURANCE provides that the benefits shall be paid by instalments 
 instead of one sum. 
 
 MORTALITY TABLES are the instruments, so to speak, which are used in the computa- 
 tion of contribution rates for promised benefits. 
 
 There are in existence numerous tables of Mortality. Some of these have been 
 constructed from population statistics, and many of them from life insurance statistics. 
 The latter are the ones in which we are concerned. There was published in 1783 
 what is known as the North Hampton Table, which was constructed by Dr. Price 
 from statistics in two parishes in the town of North Hampton. The Carlisle table 
 was published in 1815, and constructed by Dr. Milne from the census of the popula- 
 tion of two parishes in Carlisle in 1780, and the deaths in the same 
 parishes from 1779 to 1787, inclusive. The population at the beginning of 
 this period was 7877, and the deaths during the 9 years 1,840. A half a dozen Mor- 
 tality Tables have been taken from the population statistics of Great Britain, espe- 
 
221 
 
 daily in England. The original table is known as "The Healthy English Table." It 
 was formed by Dr. Farr from the census returns in 1851, and the record of the births 
 and deaths from 1848 to 1853, inclusive, in 63 of the healthiest registration districts 
 of England and Wales. In all of these districts the mortality of the general popula- 
 tion did not exceed the rate of 17 annual deaths to 1,000 living, and at the census of 
 1851 the total population of these selected districts was nearly one million persons, 
 of whom about 493,000 were males and 503,000 were females. 
 
 In 1834 Mr. Morgan published a table formed from the experience of the Old 
 Equitable Society. In 1843 there was published the experience of 17 life insurance 
 companies now known as the Actuaries or the Combined Experience Table. The 
 statistics from which this experience was compiled embraced nearly 84,000 policies, 
 running from 1762 to 1833, of which nearly 14,000 were terminated by death. In 1868 
 Mr. Shepherd Homans constructed and published the American Experience Table of 
 Mortality based upon the Experience of the Mutual Life Insurance Company of New 
 York. This is the recognized standard mortality table of the United States for Life 
 Insurance Companies, although valuations are permitted upon basis of net reserves 
 derived from the Actuaries or the Combined Experience Table. In 1869 there was 
 published in Great Britain what is known as the "Hm Table," meaning the experience 
 of healthy males. About 180,000 policies were submitted, n per cent of which were 
 on female lives. By excluding duplicate policies and female lives, the number was 
 reduced to 140,000 healthy male lives. This Hm table was used almost exclusively 
 in Canada and up to within recent years was used in Great Britain to the exclusion 
 of any other table, excepting for annuities. Recently a new table has been published in 
 Great Britain covering British assured lives from 1863 to 1893 and including all of 
 the Life Insurance companies of that country. This is known as the O m Table. 
 After excluding the lives during the first 5 years, there were 411,340 exposed to risk 
 for 5,324,862 years. This table has been adopted in Great Britain and also by the 
 Canadian Parliament in 1907 as a standard for life insurance for those countries. The 
 Actuarial Society of America has recently instituted an investigation into mortality 
 as influenced by large policies and by term policies and the nationality of the insured 
 as well as the occupation, residence, family history and personal disability. The 
 National Fraternal Congress Table of Mortality has been fully explained. There have 
 also been constructed permanent total disability tables, the first one being constructed 
 by me in 1902, and which is given in this book. Another and more recently con- 
 structed table was from statistics furnished by me to Actuaries who combined these 
 statistics with the American Experience Table. I have used the formulas adopted 
 by the Actuaries in their construction of disability tables in combination with the 
 American Experience Table, and give in this book the second table constructed 
 according to the formulas prescribed by the Actuarial Society, or at least which have 
 been accepted by that body. The original disability tables constructed by me are upon 
 simple lines as compared with the complications of the second table constructed accord- 
 ing to the formulas first worked out by an Actuary of Germany, and which has been 
 accepted, as stated, by the Actuarial Society of America. 
 
 Of persons similarly selected within a given period of time out of a given number 
 exposed to death a larger number will die at advanced than at younger ages. Common 
 observation will confirm this statement, and the reason for the fact is found in the 
 natural law which fixes a limit to human life. 
 
 The ordinary mortality table is constructed upon the assumption that the annual 
 death rate increases with each year of advance in age. Represented by dollars and 
 cents, the annually increasing rates of mortality (or probabilities of dying), given in 
 
222 
 
 the aggregate mortality tables, are known as "natural premiums," because they are 
 assumed to conform to the natural law that increases the insurance risk with the 
 yearly advance in age. 
 
 In reality these assumptions are not in strict accord with facts, but reflect a fiction 
 of much greater value to the life insurance business than if the theory literally fol- 
 lowed the facts. 
 
 It is not true that there is a law of mortality as fixed and as definite as the law of 
 gravitation, and it is not true that actual death rates amongst selected or unselected 
 lives increase either regularly or progressively from year to year as age advances. 
 Investigation and exposure of actual conditions show that' the death rates of insured 
 persons are both irregular and erratic when compared for different ages and for 
 different years. All that can be stated truthfully is that the tendency to an increase 
 in death rate with advance in age is present in every mortality experience after about 
 age ten. For each of several years after birth the death rate decreases; then it 
 increases for several years to about age eighteen; then the tendency is toward a slight 
 decrease for about ten years, followed by an almost uniform rate for about ten or 
 twelve years, after which the general tendency is toward an increase to about age 
 fifty, with very marked and abrupt advances between ages fifty and seventy; while 
 after the latter age there is considerable uniformity in the rate of increase for ten or 
 fifteen years. An irregular line will fairly represent the rate at the very advanced 
 ages, when men wear out and die from natural decay. 
 
 A table of mortality constructed from the exposures to death of female lives will 
 differ from one constructed from the exposure to death of male lives in that the 
 death rates of the former will be slightly higher for ages 15 to 25, and then somewhat 
 lower for ages 25 to about 43, and then materially higher for ages about 43 to 50 
 or 53; afterward for all older ages the female death rate is below that of males. 
 In all experiences, that have come under my observation, there is a pronounced 
 "hump" in the female, table for ages between 40 and 55. This is obviously due to 
 the extra hazard from natural causes to which women in middle life r are subjected. 
 The unfavorable death rate for ages 18 to 25 is probably due to first child-birth, since 
 it is absent in the experience of unmarried females. 
 
 The mortality table is the result of smoothing out the irregularities of actual death 
 rates at the different ages, and therefore merely represents averages, and is conse- 
 quently a fiction though constructed from real mortality experiences. 
 
 Little scientific use could be made of the actual facts, and hence resort to graded 
 averages, rendering the fictitious results of more value than the absolute facts them- 
 selves. 
 
 NET PREMIUM is the net charge to provide for the promised benefit without any 
 provision for expenses. The net premium is erroneously assumed to be divided into 
 two parts, namely the mortality element and the reserve element. As a matter of 
 fact, net premium to provide for a death benefit is all for mortality, and it is erroneous 
 to conclude that it is divided in the office, a part going for term mortality and a part 
 going for accumulation. It is true that this is the effect of practical operation, but the 
 division is not made in the office, but is made through the payment of claims and 
 contributions as they .are received; the excess being invested and accumulated at 
 interest. If the premium were divided into mortality and reserve elements, then 
 under a limited payment contract, when the contributions cease there would be no 
 mortality element. When, as a fact, the accumulation becomes a single premium for 
 the payment of mortality on the discontinuance of the contributions under a limited 
 
223 
 
 . e%z / 
 
 7T^ 
 
224 
 
 payment policy or certificate. It has been shown that the net premium is computed 
 without any reference to reserve accumulation, and it is only after the net premium 
 has been determined that the reserve accumulation can be ascertained. The net pre- 
 mium is in excess of the current cost of protection in the early years of the insurance 
 contract, and in the later years the current cost of protection is in excess of the yearly 
 net premium. This being true, it follows that in the early years there is an excess in 
 contributions over the cost of the protection. This excess is laid away and accumulated 
 at interest until the time when the cost of protection exceeds the yearly contributions 
 when the accumulation is drawn upon to make good the deficiency. The diagram on 
 the following page will clearly illustrate the working of the net premium. 
 
 There are three net premiums illustrated, one of $7.46 for a term insurance to 
 age 50; one for $12.04, the annual premium for term insurance to age 70, and $16.62, 
 the annual net premium for whole life insurance on a person at age 35. The first 
 horizontal line marked $7.46 represents the level annual net premium for term insur- 
 ance to age 50; the horizontal line marked $12.04 represents the net level annual pre- 
 mium for term to age 70, while the horizontal line marked $16.62 represents the level 
 whole life annual premium for a person at age of entry 35 and promising $1,000 pay- 
 able at death whenever that event occur. Under the whole life policy and (provided 
 the event occur prior to age 70 or age 50) under the term contract, the diagonal 
 line marked YZ represents the annually increasing cost of protection, beginning at 
 $6.15 in the first year of age 35-36 and increasing annually to the end of life or to 
 the end of the term of protection. The values represented by the diagonal line below 
 the horizontal lines represents the period when the annual level contribution rate 
 exceeds the annually increasing cost of protection. And the triangles to the left of 
 the diagonal line, as explained in the diagram, represent the accumulated surplus 
 when the contributions are in excess of the cost to make good the deficiencies repre- 
 sented by the triangles on the right of the diagonal line when the cost of protection 
 exceeds the annual contribution. The amount of excess contribution is largest in the 
 first year of insurance, and it decreases with the increase in the cost of protection 
 until at the point where the diagonal line crosses the horizontal lines, when the cost 
 of protection is equal to the annual level premiums. Above the intersection of these 
 lines the cost of protection is in excess of the annual contribution, when there is a 
 deficiency that is made good by drawing upon the accumulation from the previous 
 excess contributions and interest. 
 
 THE LOADING of an insurance contract is the designation commonly used in referring 
 to the amount added to the net premium for expense purposes. I have explained this 
 matter in the chapter dealing with expenses. 
 
 THE NATURAL PREMIUM and THE LEVEL PREMIUM I have also explained in previous 
 
 AND SUBSEQUENT pagCS. 
 
 THE RESERVE ordinarily is the required accumulation to maintain the contribution 
 rates level and uniform during the period of protection as illustrated in the foregoing 
 diagram, where for a term insurance to age 50 the reserve accumulation is represented 
 by the triangle with the apex at A. The accumulation for term insurance to age 70 
 is represented by the triangle with the apex at B, while the reserve accumulation on a 
 whole life insurance is represented by the triangle with the apex at C. It will be 
 observed that the reserve accumulation varies with the duration and the period of 
 protection. It also varies with the character of the contract. For example, a con- 
 tract for term insurance to age 50 requires a very much less reserve than a whole 
 
225 
 
 life contract, and an endowment insurance requires a much larger reserve accumula- 
 tion than the whole life. The reserve accumulation on an endowment insurance is 
 of a two-fold) character; one part is for the purpose of maintaining the contribution 
 rates level and uniform during the period when death benefit is promised and the 
 other is for the accumulation of the endowment at the end of the period. So also 
 is the reserve on limited payment contracts of a dual character, in that it is a reserve 
 for a term insurance during the premium-paying period and a reserve accumulation 
 for the purpose of providing a single premium at the end of the premium-paying 
 period. As a matter of fact, whole life insurance may be considered as a term insur- 
 ance to the limiting age of the mortality table, with an endowment to the survivors at 
 that age; therefore, the reserve could be considered as of dual character, in that it 
 would provide for term insurance to the end of the mortality table and for the endow- 
 ment payable to the survivors at that age. The reserve accumulation not only depends 
 upon the character of the contract and the duration of the period of protection, but 
 also upon the rate of interest and mortality assumption in the computation of the 
 contribution rates. However, there may be identical reserve accumulations where the 
 interest assumption is the same, but the mortality assumptions are different. To 
 illustrate this point, I give the yearly cost of insurance or death rate per $1,000 accord- 
 ing to three different assumed tables ; the first being designated as "Normal Mortality," 
 the second "Sub-Normal Mortality," and the third "Super-Normal Mortality." That 
 is to say, taking the first table as normal, the second one being lower is termed sub- 
 normal and the third one being higher is termed super-normal. I give below the 
 annual death rate per $1,000 for every five years from age 20 to 95 inclusive: 
 
 DEATH RATE PER 1,000. 
 
 Ages 
 
 Normal 
 Mortality 
 (1) 
 
 Sub-normal 
 Mortality. 
 (2) ' 
 
 Super-normal 
 Mortality. 
 (3) 
 
 20 
 
 5.72 
 
 3.57 
 
 7.97 
 
 25 
 
 7.07 
 
 4.82 
 
 9.43 
 
 30 
 
 7.71 
 
 5.33 
 
 10.20 
 
 35 
 
 8.62 
 
 6.08 
 
 11.28 
 
 40 
 
 10.01 
 
 7.27 
 
 12.89 
 
 45 
 
 12.24 
 
 9.21 
 
 15.42 
 
 50 
 
 15.72 
 
 12.34 
 
 19.27 
 
 55 
 
 21.23 
 
 17.37 
 
 25.28 
 
 60 
 
 29.83 
 
 25.31 
 
 34.58 
 
 65 
 
 43.27 
 
 37.84 
 
 48.97 
 
 70 
 
 64.10 
 
 57.40 
 
 71.13 
 
 75 
 
 96.04 
 
 87.56 
 
 104.95 
 
 80 
 
 144.26 
 
 133.25 
 
 155.82 
 
 85 
 
 215.22 
 
 200.69 
 
 230.48 
 
 90 
 
 315.79 
 
 296.47 
 
 336.08 
 
 95 
 
 449.61 
 
 424.28 
 
 476.21 
 
 When the reserves are worked out by the mortality tables, for which the above 
 death rates are given, it is found that they are identical. That is to say, that at the 
 end of each year the terminal reserve is the same whether we assume normal mortality, 
 sub-normal or super-normal mortality. On a 3 per cent basis the following are the 
 annual premiums per $1,000 deduced from the three tables. It will be found that the 
 premiums of the sub-normal mortality are lower than those derived from normal, 
 
226 
 
 while those from the super-normal are higher than those from the normal, as will be 
 seen from the following: 
 
 ANNUAL PREMIUM PER $1,000. 
 
 
 Normal 
 
 Sub-normal 
 
 Super-normal 
 
 Ages. 
 
 Mortality. 
 
 Mortality. 
 
 Mortality. 
 
 
 (1) 
 
 (2) 
 
 (3) 
 
 20 
 
 14.23 
 
 12.17 
 
 16.40 
 
 25 
 
 16.28 
 
 14.12 
 
 18.55 
 
 30 
 
 18.73 
 
 16.45 
 
 21.13 
 
 35 
 
 21.86 
 
 19.43 
 
 24.41 
 
 40 
 
 25.89 
 
 23.27 
 
 28.64 
 
 45 
 
 31.15 
 
 28.28 
 
 34.17 
 
 50 
 
 38.09 
 
 34.88 
 
 41.45 
 
 55 
 
 47.37 
 
 43.73 
 
 51.21 
 
 60 
 
 59.97 
 
 55.73 
 
 64.43 
 
 65 
 
 77.32 
 
 72.24 
 
 82.63 
 
 70 
 
 101.49 
 
 95.27 
 
 108.03 
 
 75 
 
 135.51 
 
 127.66 
 
 143.73 
 
 80 
 
 183.54 
 
 173.42 
 
 194.19 
 
 85 
 
 250.87 
 
 237.54 
 
 264.91 
 
 90 
 
 343 . 19 
 
 325.48 
 
 361.81 
 
 95 
 
 462.34 
 
 438.81 
 
 486.87 
 
 For emphasis let me repeat that when the reserves are worked out on the 'basis 
 of the above contribution rates and the mortality .assumed in the respective tables, it 
 is found that they are identical ; that is to say, the terminal reserve accumulated at the 
 end of each year is the same whether we assume normal mortality, sub-normal or 
 super-normal mortality, but assuming the rate of contribution as above given. How- 
 ever, if we use the normal mortality in connection with the sub-normal contribution 
 rates, then, of course, the reserve accumulation would be different from that where 
 we use the sub-normal mortality in connection with the sub-normal contribution. 
 Were we to employ the normal mortality in a valuation, while having as a basis the 
 contribution rates of the sub-normal mortality, then the reserve would be inadequate. 
 This "reference is of importance, because of the often expressed idea that the net 
 reserve accumulation is the same or about the same whether we make the valuation 
 on the basis of the American Experience Table of Mortality, or on the National Fra- 
 ternal Congress Table of Mortality. This is true only when the contribution rateo 
 are taken as derived from the respective tables. Were we to make a valuation on the 
 basis of the contribution rates of the National Fraternal Congress Table, while em- 
 ploying the American Experience Table of Mortality as the basis for the valuation, 
 then we would find that the reserve would be inadequate, but if we were to make a 
 valuation, using the contribution rates derived from the National Fraternal Congress 
 Table and employing contribution rates according to that table, we should obtain 
 reserve accumulation about the same as when we employ the contribution rates 
 derived from the American Experience Table of Mortality and based on the valuation 
 upon the death rate according to that table. This may be better understood by making 
 an example from the three tables above given. 
 
 It will be observed that the annual rate on 3 per cent basis by the sub -normal 
 mortality table for age 20 is $12.17 per $1,000 of protection, while the annual net rate 
 per $1,000 according to the super-normal is $16.40. Here there is a difference of 
 $4.23 per $1,000 in net premiums, and yet the reserve accumulation at the end of any 
 
227 
 
 year is identical for both premiums; that is to say, the reserve accumulation for a 
 net premium of $12.17 at the end of, say the tenth year, employing the sub-normal 
 mortality assumption in the determination of the amount, is identical with the reserve 
 accumulation by the premium of $16.40 at the end of the tenth year. In other words, 
 as a standard of net valuation, the table which produces the lower premium would 
 give as large an accumulation, as a measure of commercial solvency, as would the 
 table which produces the larger premium. Similarly the same reserve would be accu- 
 mulated by the premium of $14.23, which is derived from the normal mortality table. 
 The example will emphasize this statement : 
 
 ENTRY AOE 20. 
 
 
 Annual 
 Premium 
 
 Value of $1,000 
 Insurance, End 
 of 10th Year. 
 
 Value Future 
 Premiums. 
 
 Required Accu- 
 mulation, End 
 of 10th Year. 
 
 Normal 
 
 $14.23 
 
 $342.00 
 
 $299.00 
 
 $43.00 
 
 Sub-normal 
 
 12.17 
 
 312.00 
 
 269.00 
 
 43.00 
 
 Super-normal 
 
 16 40 
 
 370 00 
 
 327 00 
 
 43.00 
 
 
 
 
 
 
 All of the above values are based on 3 per cent interest assumption. The above 
 accumulation at the end of 10 years is much less than the reserve of the American 
 Experience, the National Fraternal Congress or the Actuaries' Table of Mortality 
 with 4 per cent interest assumption. The reserves per $1,000 being, respectively, 
 $65, $69 and $73. It will be observed that the reserve by the National Fraternal Congress 
 Table is $4.00 higher than that of the American Experience and $4.00 less than that 
 of the Actuaries' Table. Later on this showing will be given further attention. 
 
 In practical operation the largest reserve accumulation is required on the protection 
 for the members at advanced ages, because ordinarily it is of the longest duration. 
 In total amount the required reserve accumulation is largest for the middle ages, 
 because in the course of operation the membership of any large insurance company 
 or society is greater at these ages, with the tendency, of course, to mass the member- 
 ship always at the more advanced ages. In this connection it will be interesting to 
 reproduce a diagram made by Carlan A. Brown, Grand Master Workman of the 
 Massachusetts Ancient Order of Workmen, in an article published in Vol. 2 of '.he 
 Criterion. He gives the ages attained and the number of members and illustrations 
 for the grand jurisdiction of the Ancient Workmen of Massachusetts, for the years 
 1885, 1890, 1895, 1901. The diagram graphically represents the distribution of mem- 
 bership and the progress toward massing at the advanced ages. The membership is 
 divided into three sections for ages 18-44, 45-54, and 55 and older. A more striking 
 illustration could not be made of the passing of members from the maximum age of 
 admission into the higher ages. The diagram tells the tale of increasing mortality 
 cost and the reason for increasing rate or the number of assessments under defective 
 plan. The purpose of the illustration was to show that the number of assessments 
 which would provide for the mortality claims in 1885 when the membership was at 
 the younger ages would not provide for the claims in 1890, when they had progressed 
 toward the advanced ages, nor in 1895, when the massing of the members was still 
 greater at the advanced ages, and especially would be inadequate in 1901 when the 
 number of members older than .age 55 would exceed the total number of members 
 below age 50 in 1885. I reproduce the diagram for its educational effect in many 
 
10 
 
 IT 
 
 IU 
 
 OCD 
 CrS 
 
 ui 
 
 i 
 
 >> }V> Ct .*,, o- H-^ib 
 
 ts^oViSi*^ Ov 
 
 Islr 
 
 aov 
 
 OX^->^ V),Jt-*DtJ. 
 
 i^**9* t>VH*P ****< <kO-j &CNS\ o r^^rr-^^ 
 
 lit 
 
 30V 
 
 oc5 
 
 ^ w 
 
 f*1* ^v <>) n^V>^ <)OOoO o*** 1 *^*"*^ ) o !* * *>*> 
 
 4ui 
 
 ll 
 
 1... 
 
 
 to 
 to S 
 
 
 
 .S -S S- 
 
 [nun.. 
 
 5 j *>** /if* A 
 
229 
 
 directions. In this connection I also reproduce an article furnished to May and June 
 issue of the Criterion in 1904 by Professor S. A. Still-well, Actuary then and now for 
 the Ohio Insurance Department. This article relates to reserve accumulation under 
 the American Experience Table of Mortality, the National Fraternal Congress Table 
 and the Actuaries' Table, and is supplemental to the showing made for the normal, 
 sub-normal and super-normal mortality tables. 
 
 In an exhibit of reserves in the Criterion of March-April, credit is given me for 
 the special method of exhibiting these reserves at different ages on the three mortality 
 tables American, Actuaries', and National Fraternal Congress with compound inter- 
 est at same rate in all cases. The purpose of the exhibit would, I think, be more 
 readily seen if, while retaining the same figures and headings, the National Fraternal 
 Congress reserves were put in the dark-faced type and the Actuaries' reserves in 
 italics, as below (leaving the American in ordinary type), as one can follow the dark- 
 faced type more easily than the italics. The dark-faced type will be found to be sand- 
 wiched, as it were, almost throughout between the other two. Only at the attained 
 ages from 50 to 65 would the dark-faced type move up into the first or lowest place 
 in the reserves. I hardly need state that these reserves are for whole life policies 
 with level rates : 
 
 FOUR PER CENT ACCUMULATION ON $1,000. 
 ENTRY AGE 20. 
 
 At End of Years 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 10 
 
 15 
 
 20 
 
 25 
 
 30 
 
 35 
 
 40 
 
 45 
 
 50 
 
 55 
 
 60 
 
 5 
 
 11 
 
 1 
 
 23 
 
 29 
 
 65 
 
 108 
 
 159 
 
 220 
 
 291 
 
 371 
 
 455 
 
 541 
 
 624 
 
 696 
 
 760 
 
 6 
 
 12 
 
 18 
 
 25 
 
 31 
 
 69 
 
 114 
 
 167 
 
 228 
 
 296 
 
 373 
 
 456 
 
 542 
 
 626 
 
 704 
 
 776 
 
 6 
 
 IS 
 
 19 
 
 96 
 
 33 
 
 73 
 
 119 
 
 173 
 
 236 
 
 307 
 
 384 
 
 465 
 
 546 
 
 629 
 
 707 
 
 779 
 
 ENTRY AGE 40. 
 
 At End of Years 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 10 
 
 15 
 
 20 
 
 25 
 
 30 
 
 35 
 
 40 
 
 45 
 
 14 
 
 28 
 
 42 
 
 57 
 
 73 
 
 156 
 
 247 
 
 346 
 
 449 
 
 545 
 
 632 
 
 710 
 
 780 
 
 14 
 
 28 
 
 43 
 
 58 
 
 73 
 
 157 
 
 252 
 
 352 
 
 451 
 
 551 
 
 648 
 
 734 
 
 808 
 
 14 
 
 29 
 
 45 
 
 61 
 
 77 
 
 163 
 
 256 
 
 353 
 
 456 
 
 556 
 
 648 
 
 735 
 
 814 
 
230 
 
 To illustrate to the eye the slight variations in values, lines are drawn below for 
 age 20, showing reserves by the three .tables for several quin-quennial years, and 
 extending to the attained age of 80. The continuous line represents the National 
 Fraternal Congress line of reserves ; the dotted line represents the American, and the 
 dashed line represents the Actuaries'. Similar lines may be drawn for other ages 
 
 
 
 f, 
 
 
 
 For earlier years and later year of policies than are given in the chart, the National 
 Fraternal Congress line runs between the American line and the Actuaries' line. It 
 will be observed, by following closely the dotted line and the dashed line that the 
 American and Actuaries' reserves are determined not to be on friendly terms, for 
 when one approaches the other it is not to coincide with it, but to cross it and remain 
 as far apart as ever. It is only at or near this crossing point of the American and 
 Actuaries' reserves that the National Fraternal Congress reserves fall below the other 
 two. If it be said that the National Fraternal Congress reserves are erratic at this 
 place, then it may also be said that the other two American and Actuaries' are 
 somewhat unsteady. If the lines be examined closely it will be found that the Amer- 
 ican and National Fraternal Congress lines almost coincide throughout their entire 
 extent. The differences between the lines are indicated in the chart by small numbers 
 placed below and above the three lines. 
 
231 
 
 A table of differences below will show how much more closely the National Fra- 
 ternal Congress reserves follow the American than they follow the Actuaries' : 
 
 FOR AGE 20. 
 
 At End of Years 
 
 Difference Between N. F. C. 
 and American. 
 
 Difference Between N. F. C. 
 and Actuaries'. 
 
 5 
 
 +$2.00 
 
 -$2.00 
 
 10 
 
 + 4.00 
 
 - 4.00 
 
 15 
 
 + 6.00 
 
 - 5.00 
 
 20 
 
 + 8.00 
 
 - 6.00 
 
 25 
 
 + 8.00 
 
 - 8.00 
 
 30 
 
 + 5.00 
 
 -11.00 
 
 35 
 
 + 2.00 
 
 -11.00 
 
 40 
 
 - 1.00 
 
 -10.00 
 
 45 
 
 - 1.00 
 
 - 5.00 
 
 50 
 
 - 3.00 
 
 + 2.00 
 
 55 
 
 + 3.00 
 
 +11.00 
 
 60 
 
 + 3.00 
 
 +19.00 
 
 Where both columns are minus ( ) the National Fraternal Congress reserves 
 fall slightly below the other two, and where both columns are plus (+) the National 
 Fraternal Congress reserves are higher than the other two. 
 
 Below will be found an exhibit of net life level rates by the three mortality tables 
 with four (4) per cent compound interest, and the percentages to be taken of the 
 Actuaries' to produce the National Fraternal Congress, and the same with respect to 
 the American, showing that in no instance is the National Fraternal Congress net 
 level rate less than eighty (80) per cent of that by the American or Actuaries' : 
 
 
 Actuaries' 
 
 American 
 
 N. F. C. 
 
 Ratio of 
 
 Ratio of 
 
 Ages. 
 
 4% Net 
 
 4% Net 
 
 4% Net 
 
 N. F. C. to 
 
 N. F. C. to 
 
 
 Level Rates. 
 
 Level Rates. 
 
 Level Rates. 
 
 Actuaries. 
 
 American. 
 
 20 
 
 $12.95 
 
 $12.67 
 
 $10.34 
 
 80.0% 
 
 81.4% 
 
 30 
 
 16.97 
 
 16.21 
 
 13.96 
 
 82.1% 
 
 86.2% 
 
 40 
 
 23.68 
 
 22.35 
 
 20.11 
 
 84.8% 
 
 89.8% 
 
 50 
 
 35.78 
 
 33.70 
 
 30.91 
 
 86.3% 
 
 91.7% 
 
 60 
 
 57.56 
 
 55.45 
 
 51.13 
 
 88.7% 
 
 92.1% 
 
 Comparing also the National Fraternal Congress 4 per cent net life level rates 
 with the same by the American mortality table and 3^/2 per cent interest (which is now 
 the basis for rates in nearly all the old line companies), we obtain the following table: 
 
 Ages. 
 
 American 3%. 
 
 N. F. C. 4%. 
 
 Ratio. 
 
 20 
 
 $13.48 
 
 $10.34 
 
 76.6% 
 
 30 
 
 17.19 
 
 13.96 
 
 81.2% 
 
 40 
 
 23.50 
 
 20.11 
 
 85.6% 
 
 50 
 
 34.99 
 
 30.91 
 
 88.3% 
 
 60 
 
 56.83 
 
 51.13 
 
 90.0% 
 
 Hence, except at very early ages, the National Fraternal Congress 4 per cent net 
 life level rates are greater than 80 per cent of the American 3^ per cent net rates. 
 
 EXPECTATION OF LIFE means the average number of years which persons of a certain 
 age will survive. It has no relation to the time the individual will probably die, nor to 
 the time when death is most probable. The individual may die today or tomorrow or 
 
232 
 
 25 years hence, while his life expectancy may be 10 years or 20 years or 40 years. To 
 find the years of life expectancy, sum the number in the column of members living 
 given in the mortality table from the age one year older than the given age to the end 
 of the table, and then divide the total by the number living at the given age. This 
 will give what is known as the curtate expectation of life. The complete expectation 
 is obtained by adding five-tenths to the number of years for the curtate expectation. 
 
 INSURANCE COST. The illustrations given correspond to the natural premiums or 
 probabilities of dying per 1,000, as given in table i of the appendix to this book. 
 Technically, and as given in the text-book, insurance cost is a product of the prob- 
 ability of dying by the difference between the sum insured and the reserve accumu- 
 lation. 
 
 For example, Suppose there are one million of insurants at age 35, and at the end 
 of the year on whole life certificates there is $11.20 per $1,000 reserve accumulation, 
 or $11,200 on the $1,000,000 of protection. If we subtract the $11,200 from the 
 $1,000,000 we have remaining $988,800 which is technically called the amount "at risk;" 
 that is to say, it is assumed that the company holds $11,200 of the funds of members, 
 and consequently the amount at risk is the face value of the certificates less the 
 reserve accumulation, making as stated, net amount at risk of $988,800 on the $1,000,000 
 of protection. The probability of dying at age 35 is .00615, and multiplying this by 
 the $988,800 we obtain $6,081 as the cost of insurance on $1,000,000 of protection, or 
 $6.08 per $1,000. 
 
 It may be further added that if the cost of the protection is $6.08, and the whole 
 life level net premium at age 35 is $16,62; if we improve the latter for one year at 
 4 per cent, we get $17.28, and subtracting the cost of protection, $6.08, we have $11.20 
 per $1,000 as the reserve accumulation, or as first stated, $11,200 on $1,000,000 of 
 protection. 
 
 Taking $6.15 per $1,000 as the cost of protection, the following example will 
 illustrate the method of determining the reserve accumulation. We will take the 
 tabular number living, 92,215, at age 35, and assume that each one carries $1,000, and 
 that the annual net contribution is $16.62, then we have the following exhibit : 
 
 92,2i5X$i6.62 Premium Payments $1,532,613.30 
 
 Interest at 4 per cent for i year 61,304.50 
 
 Premium and Interest end of first year i,593>9 I 7-8o 
 
 92,2i5X$6.i5=Death Claims 567,000.00 
 
 Accumulation end of year 1,026,917-80 
 
 We began the year with $92,215,000 protection and there was $567,000 in claims, 
 leaving at the end of the year $91,648,000 of protection. Dividing the $1,026,917.80 
 by 91,648 we obtain the reserve at the end of the year, which is $11.20 per $1,000, and 
 precisely the same as obtained by the method of subtracting the cost of the protection 
 as technically determined from the annual premium and accrued interest for one year. 
 
 If the single premium of $301.67 is illustrated, instead of the annual premium of 
 $16.62, we would have this example : 
 
 92,2i5X$30i.67=premiums $27,818,663.44 
 
 Interest one year 1,1 12,746.54 
 
 Interest and premium 28,931,409.98 
 
 92,215 X$6. 1 5=claims 567,000.00 
 
 Total accumulation 28,364,409.98 
 
 Divided by 91,648 3O9-49 
 
 or the single premium at end of the first year which is the reserve for the 91,648 
 survivors of the original 92,215 entrants. 
 
233 
 
 In every case the results of the two methods in respect of reserve accumulation are 
 identical, and since there are advantages to be gained by assuming that the cost of 
 protection is the product of the probability of dying by the difference between the sum 
 insured and the reserve accumulation, I would not occupy space to give my view con- 
 cerning the matter were it not that a principle is involved in regard to the conduct 
 of Fraternal Beneficiary Societies under existing conditions. 
 
 However, from a technical standpoint, I contend that the above illustration which 
 assumes that the probability of dying corresponds to the cost of protection is in 
 accord with actual practice. 
 
 In no office do officials pay a part of the claims from current contributions and 
 then make draft upon the reserve accumulation for a portion of the claims. As a 
 matter of fact, the claims are paid out of current contributions, and the reserve accu- 
 mulation is permitted to remain invested for the benefit of the survivors. 
 
 I assert that the method illustrated, being in accord with practice, is the better one, 
 and is technically correct. 
 
 If we analyze the individual position of one of the survivors, this is found : 
 
 Premium Payment $16.62 
 
 Interest^ ($io.62X-04) 66 
 
 Premium and Interest 17.28 
 
 Share of Claims 6.15 
 
 Surplus from Premium and Interest 11.13 
 
 Mortuary Accretion 07 
 
 Reserve $11.20 
 
 The "mortuary accretion" comes from the share of each survivor in the surplus 
 from contribution and interest of the 567 who died. Each one of the 567 paid $16.62, 
 which earned 66 cents, and the total of $17.28, less $6.15, the share of each in the 
 claims, yielded a surplus at the end of the year of $11.13, exactly the same as for each 
 survivor. The total for the 567 who died was : 
 
 567X$ii.i3X$6,3n.oo, 
 
 and 6,3 1 1 -4-9 1, 648=. 07 for each survivor, which added to the surplus for each, $11.13, 
 makes the reserve $11.20. 
 
 The contention that the reserve belongs to the member has led many to the con- 
 clusion that it should be returned in addition to the sum insured. This conclusion 
 could not result from the true exposition that, under ordinary computations, the reserve 
 is not to be paid to beneficiaries of deceased members, but upon the assumption that 
 it will be appropriated for the benefit of survivors in the way of "mortuary increment." 
 
 At the advanced ages the "mortuary increment" is much larger than the "interest 
 increment" for accumulation. 
 
 My contention is supported further by the general employment of the u and k 
 columns in computing reserves. With these factors the reserves per $1,000 are deter- 
 mined precisely as illustrated for the $16,62 annual rate where $92,215,000 were 
 involved. In the illustration the $567,000 of claims were paid from the current con- 
 tributions, including $6.15 per $1,000 paid by the 567 who died. The $11.20 of accu- 
 mulation was retained in the reserve fund for the benefit of the 91,648 survivors. 
 
 In computing reserves per 1,000, the accumulation factor, u, corresponds to 
 the interest factor in the illustration, while the decrement factor, k, corresponds to 
 the deductions for claims. The u and the k are larger than the interest and mortality 
 
234 
 
 rates in order to account for the "mortuary increment." The u and k factors are thus 
 developed : 
 
 Let 1 35 = 92,215 = Insurants at age 35. 
 
 P 35 = $16 . 62 = Premium. 
 l+i= 1. 04 =(i = interest). 
 d 36 = 567 = Members died. 
 iv 35 = Accumulation or reserve. Then 
 
 From the illustration it was seen that the total reserve accumulation at the end of 
 the year, $1,026,917.80, was divided between the 91,648 survivors, giving $11.20 to each 
 per $1,000 of insurance. Now let 
 
 I 3 e = survivors = Iss+i, 
 then 
 
 but, 
 
 las 1 A , d 35 dismiss- 
 r~ = Anci-r-=^j A; 
 
 136 P35 136 135 136 
 
 substituting, we have, 
 
 P 36 X = ^ 6 = P3 6 Xu 35 -k 3 5 = 1 V 35 . 
 
 P35 P35 
 
 By reference to Table 1, we find q 3 5=. 0061487 :p 35 being its complement = .9938513. Substi- 
 tuting, we have P 35 X 1.04 -=-.993851 3 = 1. 04643 = u 36 , and .0061487 ^-.9938513 = .0061 87 and 6.187 
 = l,000k 35 . Making an example, we have, 
 
 P 36 = Premium ..................................................... $16.62 
 
 u 36 = Accumulation Factor .......................................... 1 .04643 
 
 P35Xu86 = Accumulation end of year ...................................... 17 .39 
 
 k 35 = Decrement Factor ............................................. 6. 19 
 
 iv 35 = Reserve at end of first year .................................... 1 1 . 20 
 
 Very generally the u and k columns arc employed to calculate in advance the 
 reserves per $1,000 for use in "net valuations," and, as seen, the k is directly derived 
 from the probability of dying, or death rate, and this is the decrement factor as was 
 q x in the first illustration. 
 
 Notwithstanding the apparently good arguments to support my position, I stand 
 alone in undertaking to maintain it. 
 
 Elizur Wright, in 1850, asserted that the reserve was of the nature of a savings 
 bank deposit, and when the insured saw fit to break his contract he had a right to 
 demand the surrender of his reserve (less a reasonable surrender charge), and from 
 that time to now an individual interest in the reserve has been recognized. 
 
 In such circumstances it was natural to develop the theory that the insurance 
 company held the reserve in trust to be paid to beneficiaries at the death of the mem- 
 ber, or returned to the member on his withdrawal. In this view the reserve is truly 
 a "reinsurance fund," belonging to the insured as much as a bank deposit. 
 
 If carried to this logical conclusion, then there should be an individual accounting 
 and a right of withdrawal of credits on notice. 
 
 I cannot subscribe to such a theory. It would be subversive of insurance principles. 
 
 Present payments to provide for the inevitable future increase in the cost of insur- 
 ance are as much the property of the society or company as present payments for 
 current insurance cost. While present payments for future cost represent present 
 over-payments of current cost, later on as age increases current cost will exceed the 
 then present payments, and a deficiency will result between current collections and 
 
235 
 
 current claims, when the previous advance payments are brought into requisition to 
 cover the deficiency. The early excess contributions over current cost are absolutely 
 necessary under the level premium plan, and are as much a part of the insurance 
 funds as are the portions of contributions used for current cost. If the insured 
 desires to change or annul his contract, by agreement that will not injure the society 
 or company, a return might be made of the excess accumulation. 
 
 I arrive at the equity of surrender values from a different course of reasoning. 
 Thus: 
 
 All insurance is cooperative, the very object of it being to distribute losses. 
 
 It proceeds on the theory of averages, and, therefore, an insurance society which 
 is scientifically operated assumes as a unit the entire group of members who enter at 
 a particular age, during a particular year, on the same form of contract. 
 
 All payments made by members of the group are treated as items of an individual 
 account. 
 
 The term "individual reserve" is largely a misnomer, as it simply means the" share 
 of each individual of the group in the entire reserve for the group. It becomes of 
 importance chiefly when a member desires to change the form of his contract from 
 whole life protection ; for instance, to temporary protection, the latter requiring a 
 smaller reserve. It is necessary in such circumstances to make an individual adjust- 
 ment with this particular member, which is done by returning to him his individual 
 share of the reserve, according to his previous contract, or a definite portion thereof: 
 
 Let us suppose that he entered originally at age 30 and desired a life contract under 
 the level premium system. The net annual price charged him would be $13.96 annually, 
 by the Natnonal Fraternal Congress Table, and four per cent interest. 
 
 At the end of twenty years he decides that he no longer wants the protection. 
 
 Had he originally applied for a twenty-year contract, he would have been charged 
 only $6.80 annually. 
 
 He has, therefore, paid $7.16 a year in excess of the amount required for the pro- 
 tection furnished. 
 
 This excess, at least in part, may be returned if the demands of equity are to be 
 satisfied. 
 
 The larger premium was collected on the assumption that the member's certificate 
 would eventually become a claim. 
 
 This assumption is nullified by his withdrawal, and the accumulation provided in 
 conformity therewith may not be retained. 
 
 When the member dies, on the contrary, the assumption still holds. There is no 
 change in the contract. The certificate becomes a claim. In what year this latter 
 occurs is immaterial. 
 
 Were it not for the uncertainty of the date of death there would be no such thing 
 as life insurance. r 
 
 The insured persons enter into mutual agreement, under the terms of a whole life 
 iunsrance contract, to remain in the association until death, whether it occur soon 
 or late. 
 
 The rates of contribution are based upon persistence until death, and upon such 
 conditions they are adequate to provide for the payment of promised benefits at 
 death. 
 
 A payment of more than the promised benefits, by a return of a portion of the con- 
 tributed assessments, would upset all calculations and render the rates of contribution 
 insufficient to provide for the payment of the future promised benefits. 
 
 Maturity of the whole life contract by death fulfills the conditions and terms of 
 the agreement. 
 
236 
 
 The surrender of the contract abrogates the terms of the original agreement, and 
 renders unnecessary the fund which has been accumulated to insure its integrity were 
 it continued to maturity at death. 
 
 So long as the contracts of insurance are in force, accumulated funds must be held 
 in common and cannot be considered as "individual deposits," of the same character 
 as "deposits in a savings bank." 
 
 Much misconception of the character and function of the reserve fund has resulted 
 from efforts to explain it. 
 
 The first wrong impression came from the so-called "division of the level premium 
 into its three elements Expense, Mortality and Reserve." 
 
 Taking age 40 and an "Old Line" premium, for example, this "division" was made : 
 
 Gross Expense Mortality Reserve 
 
 Premium Element Element Element 
 
 $31-57 $7-89 $9-82 $13.86 
 
 To this day there are many who believe the above to be a permanent division, and 
 that annually the amount of $13.86 is set aside from the gross premium for continuous 
 accumulation into a reserve fund, "which goes on accumulating from generation to 
 generation long after those who have contributed to it have passed away." 
 
 It is not unusual to find the serious, and evidently honest, statement in the litera- 
 ture of Fraternal Societies, that "the principal of the reserve accumulation is never 
 touched only the interest is used to keep down the increasing cost at old age." 
 
 This misapprehension largely proceeds from two sources. 
 
 (1) The erroneous impression made by such as the foregoing "division" of the 
 level premium. 
 
 (2) The superficial consideration given to the workings of the reserve by those 
 who essay to discuss it. 
 
 For the purpose of net valuation, terminal reserve values have been computed, and 
 these values have been very generally published, and are often used in making com- 
 parisons of Mortality Tables, as well as for many illustrations in life insurance discus- 
 sion. 
 
 Such publication and use are appropriate and of material benefit, but, unfortunately, 
 they have led those who jump to conclusions into very erroneous statements. 
 
 The truth of it is, the breaking up of the reserve fund into individual credits or 
 values can only serve for analytical purposes, and for accounting between "tenants in 
 common" when the Common Fund is to be divided or apportioned. 
 
 So, also, is it a purely analytical process when the level premium is split into its 
 "elements" of "Expense," "Mortality," and "Reserve." 
 
 No practical results can be arrived at by considering the reserve as "an individual 
 deposit," nor in viewing it as separate and distinct from the "Mortality" element. 
 
 It would be equally practical to endeavor to make separate use of hydrogen and 
 oxygen and obtain the results derived from water, as to try to work out life insur- 
 ance problems by separately considering the "Reserve" and "Mortality" element of a 
 level premium, or by undertaking to break up the general reserve accumulation into 
 individual credits of the nature of deposits in bank. 
 
 There are but two parts to a level premium, which are the "Expense" portion and 
 the "Mortality" portion. 
 
 The "Reserve" element is a fiction a product of analysis. 
 
 When the expense portion is deducted, the balance (called the "Net Premium") is 
 provided, by calculation, for the payment of death losses, for "Mortality" purposes, 
 and for nothing else. 
 
237 
 
 If the death losses are less than anticipated, there results a surplus which may be 
 returned to members. 
 
 However, the whole of the "net premium" is primarily intended solely for the pay- 
 ment of death claims,, and there are no pre-determined portions of it for "Mortality" 
 and "Reserve." 
 
 The idea should be gotten rid of that there are "Reserve" and "Mortality" elements 
 to a level premium, if there is to be a clear conception of its real and true function. 
 
 The idea should be gotten rid of that the so-called reserve accumulation is a fund 
 of individual credits, if its true function is to be understood. 
 
 The level premium plan, subjected to critical analysis, will reveal the following 
 conditions as a business proposition : 
 
 First, the individual insurant, as such, is not considered in the determination of the 
 level premium. It would be a gambling venture pure and simple to undertake to insure 
 one life or to enter into an insurance contract with one person. 
 
 Second, it requires a considerable number of persons associated together in mutual 
 cooperation for practical and successful insurance business conduct. In such circum- 
 stances only the mass is considered in reference to contributions, and necessarily all 
 resulting accumulations constitute a fund in common against which individual demand 
 could not be made unless the association went into liquidation, and then each member 
 should share in the general distribution according to the character of contracts carried. 
 
 As stated, I have made an argument in the case because of the importance to the 
 Fraternal Societies. It is of small moment to life companies whether the one or the 
 other explanation of the working of the level premium is correct. But the very exist- 
 ence of many of the Fraternal Societies depends upon the construction that will 
 maintain their funds in common for the sole purpose of providing for the payment of 
 claims. 
 
 If voluntarily or through compulsion, Fraternal Societies undertake to segregate 
 the funds "and allow credits to individual members, they must abandon the original 
 conception of fraternal protection, and should base their contribution rates on a 
 higher table of mortality than that of the National Fraternal Congress and 4 per cent 
 interest assumption. 
 
 THE NET VALUE of a certificate or policy corresponds to the reserve accumulation. 
 To put it another way, the net value represents the difference between the present 
 value of the benefit and the present value of future contributions, under the prospec- 
 tive method of valuation. Under the retrospective method of valuation the net value 
 is represented by the difference between the value of accumulated claims and the value 
 of accumulated contributions. 
 
 SURRENDER VALUE is the amount of the reserve accumulation which is used as the 
 single premium for the purchase either of paid-up insurance or extended insurance, 
 or for a loan, or given altogether for the surrender of the certificate in settlement of 
 the contract. The amount deducted from the reserve is called surrender charge, and 
 this surrender charge is determined by various methods. In some offices a flat amount 
 as $10 per thousand is deducted from the reserve. In other cases, there is a percen- 
 tage of the reserve taken as a surrender value; thus 10 per cent is deducted for the 
 surrender charge and 90 per cent used as the single premium for the purchase of the 
 surrender value. If the reserve were $100, and 90 per cent used as a surrender value, 
 then $90 could be used either as a payment in cash, or as a loan, less one annual pre- 
 mium, or for the purchase of paid-up insurance, or for the purchase of extended 
 insurance. Let it be noticed that a "surrender value" includes a cash surrender value, 
 
238 
 
 a loan surrender value, a paid-up insurance surrender value, or an extended insurance 
 surrender value. 
 
 LOANS. Until Elizur Wright secured the enactment of non-forfeiture laws in Mas- 
 sachusetts, the life companies (with one or two exceptions) allowed no surrender 
 values not even paid-up or extended insurance. From giving nothing the companies 
 went to the extreme of paying on demand cash to the amount of the reserve. From 
 this extreme there was a reaction to the extent of deducting one annual premium from 
 the cash surrender value, and the amount paid was called a "loan." The loans are 
 seldom paid off by the policy-holder, and consequently the real object of life insur- 
 ance is largely defeated through the reduction in benefits by the lien against the policy. 
 
 A recent compilation by the Association of Life Insurance Presidents shows that 
 of reserves amounting to about three and one-half billions of dollars, $590,000,000 had 
 been loaned to policy-holders, or about 16 per cent. The amount of the policies is 
 reduced by the total of the loans and the insurance for the protection of beneficiaries 
 is five hundred and ninety millions less than the face value of the policies. 
 
 In answer to this last statement it may be asserted truly that were it not for the 
 loan privilege on insurance policies, the policy-holders would be forced often to borrow 
 at a great sacrifice, and certainly at a less favorable rate of interest than granted by 
 the life companies, and in the end the debt would exist, and many times with the life 
 insurance policy as collateral and subject to reduction by payment of the debt. 
 
 When the policy-holder obtains a loan on his policy he seldom repays it, and often 
 permits it to accumulate at compound interest, rapidly increasing the lien and finally 
 rendering the promised benefit very disappointing to those dependent upon it for relief 
 or support. A loan obtained from any other scource is not permitted to run indefi- 
 nitely, and at least the interest must be paid periodically, so that should the debt be 
 not discharged it will not be increased by compound interest additions. Where the 
 company requires payment of interest with the payment of each premium the interest 
 of the beneficiary is better protected. 
 
 However, if we are to accept the theory that the reserve is held by the company 
 as an advance accumulation from the insured to be used in part payment of the 
 promised benefit, then the beneficiary receives from the company only the difference 
 between the sum insured and the reserve accumulation. 
 
 Therefore, when the beneficiary is paid the face value of the policy, that part 
 representing the amount of the reserve accumulation is a return of money belonging 
 to the insured and simply held by the company in trust. 
 
 If the insured, previous to death, believed he could make immediate use of this 
 trust fund for the advantage of his family, and which would be better for his beneficia- 
 ries than to delay its payment until he died, why should he be denied the privilege 
 of withdrawing the reserve and leave as protection the amount assumed as the insur- 
 ance risk? 
 
 It seems to me that the Life Insurance Presidents are in no position to throw 
 obstacles in the way of policy loans, while they assert that the reserve is an individual 
 credit. The president of a savings bank would be as much justified in preventing a 
 depositor from withdrawing his deposit on the ground that his family would be more 
 benefited by leaving it to accumulate until his death. 
 
 To hold that the reserve is an individual credit produces such inconsistency be- 
 tween theory and practice as to warrant my criticism of the theory. 
 
 In readjustments by fraternal beneficiary societies, loans or liens have been entered 
 against certificates, at the option of members, either to the amount of the value of 
 the difference between the rates of contribution at attained and entry ages, or the 
 
239 
 
 amount of one-half (or other portion) of the monthly contribution rate fixed by the 
 readjustment. In some cases the Hen is increased by compound interest; in others 
 by simple interest; in others no interest is charged, according to whether or not the 
 advice of an actuary or the suggestion of a delegate has been accepted. 
 
 Members have elected to reduce the insurance protection by the amount of the liens, 
 and then the management has had much trouble with beneficiaries who expected the 
 face value of certificates. 
 
 In my opinion the lamented President Greene, of the Connecticut Mutual, was 
 right in refusing to pay cash or make loans on policies, and confined surrender values 
 to paid-up and extended insurance. He also correctly contended that the funds of a 
 life insurance company or society were held for the purpose of paying the benefits 
 promised for the protection of dependants that the funds were held in common for 
 the advantage of all the insured persons according to their contributions toward such 
 funds. 
 
 Theoretically there is no objection to making a loan to the policy-holder from the 
 reserve within the net value of the policy. 
 
 Practically there is often protection to the insurance by granting loans for the 
 purpose of paying premiums, especially when the insured is unable to meet them 
 through loss of wage or salary because of disability or otherwise. I have recommended 
 loans to the amount of monthly or annual contributions when there was accumulation 
 from excess of past contributions. This has been done because the loan was a protec- 
 tion to the insurance protection. Nevertheless, it is somewhat inconsistent for the 
 reason that it recognizes an individual interest in the reserve accumulation; and the 
 practice, from a legal standpoint, would establish the right to individual credit and 
 segregation. The possible saving of the protection for dependants is the excuse for it. 
 
 NoN-FoRFEiTABLE means that a policy or certificate will not be forfeited or cancelled 
 after two, three or four years, as the provisions may be, but that a surrender value 
 is given in the way of paid-u/p insurance or extended insurance, even though the mem- 
 ber make no application for such a surrender value. 
 
 INCONTESTABLE means that a policy or certificate is incontestable when, by provisions 
 and conditions of the contract, payments of the benefits cannot be excluded by the 
 company or society for any cause, except the non-payment of premiums or contribu- 
 tions. 
 
 LAPSE in life insurance means the termination of a contract and forfeiture of the 
 value; that is of the accumulation thereunder, by failure to make contribution within 
 the time agreed. Lapse does not include all terminations by voluntary withdrawal, 
 before the end of the period of protection ; for example if the conditions of the con- 
 tract are such that it has a withdrawal value (that is, a surrender value) and the 
 member chooses to withdraw, or if the) contract is non-forfeitable and the insurance 
 company or society must by the terms of the contract give a surrender value, then it 
 is not correct to say that the member lapsed, but that the certificate was terminated 
 by "surrender." Hence, a lapsed contract is one where the insurant discontinues con- 
 tributions and receives no surrender value but forfeits all reserve accumulation. 
 
 EXPIRY is the termination of an insurance contract under the conditions and pro- 
 visions of the insurance; that is to say, if the member has a term contract for 20 
 years, at the end of that period, the contract expires, therefore, its termination is by 
 "expiry." 
 
 MATURITY is also the termination of a contract under its conditions and provisions ; 
 as, a contract promising a death benefit is said to mature when it becomes a claim by 
 
240 
 
 death, or an endowment contract is said to mature at the end of the endowment 
 period when the benefit is payable, whether payable in one sum or by instalments. 
 
 VALUATION. Since the first paper concerning valuation was read at Detroit, before 
 the National Fraternal Congress, there has been much discussion of the question. 
 
 Some have construed the advocacy of valuation into a contention for such State 
 supervision as would turn fraternal orders into "old line" companies. 
 
 When the question is properly understood this fear will be found to be almost 
 entirely groundless. 
 
 A valuation is primarily a stock-taking, and its object is to give information as to 
 the condition of the business. Only incidentally may it be regarded as a test of 
 solvency. 
 
 In he business of life insurance the assets are of two characters property and cash 
 in actual possession, and promised receipts. The liabilities are promises to pay definite 
 amounts upon the occurrence of certain events, or at the expiration of certain terms 
 of years. 
 
 Valuation is the process of comparing the liabilities with the assets in order to find 
 out whether they balance or whether there is an excess on one side or the other. As 
 the future payments are due at various dates, the balancing process must be brought 
 to some definite date, and the time at which the valuation is begun is usually chosen 
 as the most desirable date. 
 
 Of course, if the valuation discloses the fact that the present value of the benefits 
 promised is in excess of the present value of the contributions promised, the balance 
 can be restored by the assets on hand in the form of cash, Or other property with a 
 cash value. 
 
 The balance can also be restored in two other ways ; fiirst, by increasing the value 
 of the promised contributions, or by decreasing the value of the promised benefits. 
 
 Only in case the latter two remedies are inadmissible can valuation be regarded as 
 a test of solvency. 
 
 That it is so regarded today in the case of "old line" companies is due to the fact 
 that these companies are limited in the manner just described. On the side of ben- 
 efits they have contracted to pay definite amounts, which they cannot diminish. On 
 the side of contributions they have agreed to accept in full definite payments at definite 
 periods, and these they cannot increase, either in size or frequency. 
 
 It is, consequently, essential that these companies should be able to show upon 
 valuation that they have on hand the difference between the present value of benefits 
 promised and the present value of contributions promised. 
 
 This difference is known as the net or legal reserve, when the net premium only 
 is used in estimating the present value of promised contributions. 
 
 The fact that this difference, or reserve, has come to be used as a test of solvency 
 for insurance companies has caused its importance to be unduly magnified, until the 
 original object of valuations threatens to be lost sight of. 
 
 What the original object was understood to be in this country is indicated by the 
 Massachusetts statute of 1852, quoted by President John A. McCall in his address 
 before the State insurance officials, at Columbus, Ohio, September, 1902. The form 
 prescribed by this act required two items to be stated, viz. : "Present value of existing 
 policies," and "present value to the company of future premiums on these policies." 
 
 Not a word is here said about the reserve, as it was not then used as a test of 
 solvency. 
 
 Similarly, in Great Britain the same method of valuation is used when Friendly 
 Societies are in question. 
 
241 
 
 The reason is not difficult to find. 
 
 Friendly Societies, on the other side, and fraternal orders on this side of the 
 Atlantic are not confined within the rigid limits of "old line" companies, but enjoy a 
 much more flexible premium system. 
 
 So far as benefits are concerned they are usually as little able as "old line" com- 
 panies to diminish them, but their ability to increase assessments, either in number or 
 frequency, is practically unlimited. 
 
 It is not necessary, therefore, for these societies to have on hand the entire differ- 
 ence between the promised benefits and promised contributions at existing rates. 
 
 A valuation of one of these societies is not a test of solvency, but rather an ex- 
 ploration. 
 
 Just as the navigator in coastal waters heaves the lead in order to determine 
 whether or not there is any danger of a vessel's going aground, so the fraternalist 
 institutes valuation of his society to see whether it needs to change its course in order 
 to avoid the shoals. 
 
 If he finds as a result of such valuation that the assets in hand are insufficient to 
 balance the difference between the present values of promised benefits and promised 
 contributions, he then knows that it will be necessary to increase the latter, either in 
 size or frequency, and can readily estimate the amount of increase required. 
 
 We find an excellent illustration of this method in a little pamphlet entitled, "Valua- 
 tions of Fraternal Associations," by Frederick Gaston, President of the Grand Fra- 
 ternity, in which he gives the items concerning a suppositions society. The present 
 worth of future liabilities in this case is $1,061,648.76. The present worth 
 of the future payments, on the other hand, is $1,017,033.01, the difference being 
 $44,615.75. Now, if this society had in hand $40,000, being $4,615.75 less than the 
 required reserve, it would be insolvent by the legal reserve test, and yet by adding 
 $4,000 to the present value of the future payments, this technical insolvency could be 
 immediately abolished. But $4,000 is to $1,000,000 as I is to 250. Therefore, an. addi- 
 tion to the rates of one-two-hundred-and-fiftieth part would restore the balance be- 
 tween the value of future benefits and future contributions. 
 
 From this example it must be so evident that he who runs may read that it 
 would be the height of absurdity to apply the legal reserve test of solvency to a fra- 
 ternal order. 
 
 And yet it is just as evident that valuation is as important to a fraternal order as 
 to an "old line" company. 
 
 The operation can be applied to any society, no matter what its plan. 
 
 The ordinary fraternal order endeavors, as a rule, not to exceed twelve assessments 
 annually. Twelve, in fact, may be called the normal number, and twelve times the 
 assessment rate may be considered as the normal annual payment. 
 
 If, then, in any such society, we place on one side the present value of all the 
 insurance "promised, and on the other side the present value of twelve assessments 
 annually, we will obtain a difference which represents the amount that ought to be on 
 hand to make the contract good if the present rates are to continue. 
 
 Or, we can determine from this same lack of balance what increase in the rates is 
 necessary in order that their present value shall equal that of the benefits. 
 
 It has been repeated many times that at the inception of the contract the present 
 value of the benefit secured under the same is from the very nature of the case exactly 
 equal to the present value of the contributions expected to be received. 
 
 I have further explained that in the course of operation the present value of the 
 benefit increases because of the nearer approach to maturity of the contract. 
 
242 
 
 In other words, the benefit side of the insurance contract has an increasing value 
 with the lapse of time and the duration of membership. 
 
 On the other hand, the payment side of the insurance contract has a decreasing 
 value because the number, of premiums, or annual or monthly contributions, still 
 remaining to be paid diminishes with every payment, and, of course, the present value 
 of the future contributions decreases with the continuance of the insurance contract 
 and the lapse of time and duration of membership. 
 
 Obviously, with an increasing present value of the benefit and a decreasing present 
 value of future contributions in the course of operation the present value of the ben- 
 efits becomes greater than the present value of future expected contributions. 
 
 Under the explanation of the reserve I have stated that the net value of the insur- 
 ance contract is represented by this reserve, and that the reserve represents the differ- 
 ence between the present value of the benefits and the present value of the future con- 
 tributions at any given date after the issuance of the contract. 
 
 At the moment the contract is entered into the present value of the promised 
 benefit is just equal to the preesnt value of the future contributions. 
 
 Immediately after the first contribution is made, then there is a difference between 
 the present value of the promised benefit and the present value of future contributions. 
 The former increasing and the latter diminishing with the duration of the contract, 
 there develops a net value to the insurance contract equal to the difference between 
 the present value of the promised benefits and the present value of the remaining 
 contributions to be received. 
 
 At tha moment the insurance contract is made the company or society depends 
 entirely upon the future contributions in order to provide for the benefits promised. 
 
 Immediately after the first contribution is made then the society depends upon the 
 remaining contributions, together with the reserve accumulation, to provide for the 
 benefits promised. 
 
 In other words, the reserve accumulation supplements the future contributions to 
 enable the society or company to carry out its contract to pay benefit. 
 
 The valuation of promised benefits and future contributions is a forecast of the 
 future on assumptions that future mortality will correspond with or be not higher 
 than represented by the Mortality Table em-ployed in the valuation, and that future 
 interest earnings on investments will correspond with or be not lower than the interest 
 rate assumed. 
 
 This kind of valuation is known as a "Prospective Valuation" undertaking as it 
 does to set forth future prospects. 
 
 In my opinion a Prospective Valuation is much more suitable for life insurance 
 companies than for fraternal beneficiary societies, considering the present situation 
 of the two kinds of organizations. At least, this character of valuation is not suitable 
 for many societies and for a portion of the business of many others. 
 
 The contribution rates for the entire business of many societies are inadequate to 
 provide for the promised benefits, when the latter are construed to fix the character 
 of the contract. The same is true of large portions of the business of many other 
 societies. 
 
 For example, in the certificate it is promised that a designated sum will be paid on 
 proof of death of the member. In another certificate it is promised that a designated 
 sum will be 'paid on the death of the member prior to age 70, or the principal sum 
 will be paid in ten equal annual instalments, the first payment beginning at age 70. 
 
 The Benefit Side of the first certificate undoubtedly conforms to a whole life 
 contract for death benefit payable whenever that event occur, and the present value of 
 such a benefit is represented by 
 
243 
 
 A x =Singlc Premium, which would be employed in the Prospective Valuation. 
 
 The Benefit Side of the second certificate undoubtedly conforms in promises to a 
 contract for an instalment endowment at age 70, or prior death benefit, and is repre- 
 sented by 
 
 AEx: 70 x| = Single Premium, which would be employed in the Prospective Valuation 
 of such a benefit 
 
 When the future expected contributions, "as in practice acutally collected," are 
 valuated by corresponding Single Premiums for whole life and temporary annuities, 
 the resulting values, for very many societies, range from 30 per cent to 85 per cent of 
 the values obtained for the promised benefits; while the accumulated funds will range 
 from nothing to 10 per cent or 15 per cent of the value of promised benefits. 
 
 It is the exception when the present value of future expected contributions ("as 
 in practice actually collected") plus the accumulated funds will equal the present value 
 of promised benefits. 
 
 Consequently, under a Prospective Valuation the degree of solvency is shown as 
 low as 30 per cent and seldom 100 per cent. 
 
 Complaint is immediately made of the injustice in such an exhibit, because by such 
 the construction of the Payment Side of the contract it is not completely valued when 
 assuming that the future contributions are represented by those "as in practice ac- 
 tually collected" at the date of valuation. 
 
 It is shown that the society has the reserved right to> levy extra assessments, and 
 that the legality of the exercise of this right has been sustained by court decisions 
 whenever made an issue. 
 
 It is claimed that a present value should be given to the future contributions which 
 may be collected under this reserved right. 
 
 It is argued that the right to levy extra assessments is not restricted, nor the num- 
 ber limited, and, therefore, the value of future extra assessments should equal the 
 difference between the value of the promised benefits and the accumulated funds 
 (if any) plus the present value of the future contributions on the basis of those "as 
 in practice actually collected" at date of valuation. 
 
 This argument is supplemented by the statement that the members declare and 
 assert their willingness to pay extra assessments when needed. This statement is 
 supported by reference to the fact that members resist an increase in rates of con- 
 tribution on the ground that their contracts were made upon a level rate basis, with 
 a provision for the call of extra assessments when needed, and that they want to 
 abide by the letter of their contracts. 
 
 It would be subversive of the fundamental principles of prospective valuation to 
 assign a present money value to deferred contributions which might be collected 
 under a latent right to demand future assessments. 
 
 If there were any present assurance that future extra payments would be made 
 when demanded, their present value might be considered. 
 
 Ample experience can be produced to show that reliance cannot be placed in the 
 payments of extra assessments as a substitute for increased assessments. The levy of 
 extra assessments to supplement regular assessments has put many societies out of 
 business, because of lack of response to the call. 
 
 The only practical use of the reserved right to levy extra assessments is to raise 
 a fund to make good some impairment in the reserve, or to meet some emergency 
 not contemplated in the computation of contribution rates that would be adequate 
 under normal conditions. As hereinbefore explained the value of the reserved right 
 to levy extra assessments cannot be greater than a required extra surplus or "buffer" 
 fund under a "fixed" premium system of insurance. 
 
244 
 
 Notwithstanding it is impractical, if not impossible, to assign a present money 
 value of any degree to the reserved right to levy future extra assessments, neverthe- 
 less there is matter for serious consideration in the presentation concerning the unques- 
 tioned attitude of members in respect of increase in rates of assessment, and in regard 
 to their declarations about a willingness to pay extra assessments "when needed." 
 
 A valuation exhibit that shows 30 per cent of solvency is an absurdity. One that 
 shows 70 per cent of solvency discloses an impossible condition in so far as ultimate 
 solvency is to be attained without increased rates or decreased benefits. 
 
 The publication of such exhibits brings valuation into disrepute and ridicule 
 amongst the members of the societies. 
 
 They sneer at the idea of a society being one hundred and fifty millions of dollars 
 deficient when it has fifteen millions in actual accumulated funds or that there is a 
 deficiency of $20,000,000 when the society is possessed of $2,000,000 invested in good 
 securities. 
 
 There is so much ignorance in regard to the liability assumed in the promise to 
 pay benefits at the death of members, that no general conception can be formed of 
 the present money value of such promises. Logically, there can be no concrete idea 
 of the present value of future contributions to meet future obligations. 
 
 The outcome is that only ridicule or indifference follows the presentation of an 
 exhibit which shows a difference of millions of dollars between the present value of 
 expected future claims and the present value of expected future contributions. 
 
 Absolutely nothing is accomplished by such a prospective valuation in way of 
 educating the members or causing them to realize the technically insolvent position 
 of their organization. 
 
 However much the officials may appreciate the valuation results, they are unable 
 to stir the membership to reformative action by publication of the exhibit of deficiency. 
 
 It is of public knowledge that f many unsuccessful efforts have been made to secure 
 reforms and readjustments by the broadcast publication of valuation deficiencies. 
 
 It appears equally barren of practical accomplishment to make known valuation 
 deficiencies under the sanction of law. 
 
 The aim should be to obtain practical results from valuation publicity. 
 
 Little appears to be accomplished by the publication of results from Prospective 
 Valuations where large deficiencies are exhibited. 
 
 After years of study I have reached the conclusion that the best method is to 
 make a Retrospective Valuation of certificates with rates not adequate for the benefits 
 promised when construed from the Benefit Side of the contracts. 
 
 And there should follow the valuation exhibit requests for extra contributions 
 from those who were shown to be creating deficiencies. 
 
 This method would test immediately the sincerity of the declared willingness to 
 pay extra assessments when needed. 
 
 The Retrospective Valuation would clearly indicate the need of extra contributions 
 and from whom they should be required. 
 
 Even though extra assessments were not levied until all accumulation was ex- 
 hausted, nevertheless the retrospective valuation would disclose actual instead of 
 expected conditions, and the members could see for themselves who were and who 
 were not paying their share of the maturing claims, and could see who were creating 
 deficiencies and thereby consuming the accumulated funds. 
 
 As an object lesson and for educational purposes nothing could be better than an 
 exhibit of the results of a Retrospective Valuation. 
 
 It is a valuation which gives the results of past operation up to the date of valua- 
 tion. 
 
245 
 
 It shows to the members the accumulated value of all the past benefits which have 
 been paid and the accumulated value of all past contributions, and whether or not the 
 member's past contributions have been more or less than his share in the payment of 
 claims it shows whether or not he has paid more or less than the equitable cost for 
 the protection granted to him. 
 
 RESERVE VALUES which are ordinarily published are the terminal reserves, and, as 
 stated, these would be useful for making a valuation by policy years ; that is, by taking 
 the value at the end of the policy years. In practice, however, the valuations are 
 made by the calendar years, and the modified terminal reserves are known as "mean" 
 or "midyear" reserves. 
 
 When premiums or contributions are paid annually in advance the "mean" or 
 "midyear" reserves ordinarily are obtained from the terminal reserves by taking one- 
 half of the sum of the annual premiums and terminal reserves of the preceding and 
 current years of valuation. 
 
 Thus for age 35 on a whole life policy or contract the premium is $16.62 and the 
 reserve at the end of the first year is $11.20; adding these together and dividing by 
 two we have the mean reserve in the first year of $13.91. 
 
 The initial reserve for the second year is $16.62 plus the reserve of $11.20 at the 
 end of the first year, or $27.82. 
 
 The initial reserve of $27.82 at the beginning of the second year plus the reserve 
 at the end of the second year equals $50.58, which divided by 2 gives $25.29 as the 
 mean reserve for the second year. 
 
 When the contribution is made annually in advance the mean or midyear reserve 
 is greater than the terminal reserve. For example, the terminal reserve at the end 
 of the first year is $11.20, while the mean reserve is $13.91. The terminal reserve at 
 the end of the second year is $22.76, while the mean reserve is $25.29. This is due 
 to the fact that the premium is paid in the beginning of the year, and is supposed to be 
 diminished by the" payment of claims during the year, so that at the end of the year 
 a larger amount of the premiums and reserves would be used for the payment of 
 claims. 
 
 The premium of $16.62 in the beginn ; ng of the first year is called the initial reserve. 
 Likewise the $50.58 is the initial reserve at the beginning of the second year. 
 
 It is seen that the amount of the annual premiums plus the reserve at the end of 
 the year is the initial reserve at the beginning of the following year. Therefore, we 
 have the initial reserve, the mean reserve and the terminal reserve. 
 
 The terminal reserve is used in the valuation by policy years and is also used in 
 the determination of the single premium for the purchase of paid-up insurance, ex- 
 tended insurance, loans or cash surrender value. 
 
 If premiums are paid monthly in advance on the first day of the month, the mean 
 reserve would be found by taking one-half of the sum of the monthly contributions 
 and terminal reserve of the preceding and current month, if we followed the method 
 of obtaining the mean reserves when the premium is payable annually in advance. 
 
 However, in practice the premiums are due and payable on a fixed day in each 
 month, and the better approximation of the mean reserve is obtained by taking one- 
 half of the sum of the terminal reserves for the preceding and current years of valua- 
 tion. In the words of the text-book : 
 
 "The value of the policy is the sum which the insurance society or company must 
 have in hand to provide for that portion of the liabilities under the contract, which 
 future premiums will not cover, and the only source from which it can be derived is 
 
246 
 
 the accumulation of the balance of past premiums, not absorbed by the risks already 
 incurred." 
 
 The valuation is the determination of the amount of the reserve accumulation 
 required to supplement future contributions in order to enable the society or com- 
 pany to fulfill its promise. 
 
 The valuations may be made by employing the net reserve values; that is to say, 
 the reserve values on the basis of $1,000 may be worked out in advance, and be used 
 for the valuation of any amount of protection by employing the reserve values for 
 the age of entry and the duration as the multiplier for the amount of protection 
 for the same age of entry and year of duration. 
 
 For example, the reserve accumulation at the end of the fifth year on a whole life 
 certificate, the National Fraternal Congress Table of Mortality and 4 per cent interest 
 on $1,000 is $59.62. Now, if at the end of the fifth year, we had $100,000 of protection 
 on members at age 35, we would multiply the $100,000 by the $59.62 (or rather we 
 would multiply the $59.62 by 100, because fhe $59.62 is the amount of reserve at the 
 end of the fifth year for entry age 35 on $1,000 of whole life certificate). Conse- 
 quently on $100,000 we would have 100 times $59.62, which would give us a reserve 
 of $5,962. 
 
 However, the $59.62 is the terminal reserve; that is to say it is the amount accu- 
 mulated at the end of the fifth policy year. If the valuation were made by the use of 
 terminal reserve values, then the certificate or policy must be valued at the end of the 
 certificate or policy year. This date might be in any month or any day of any month 
 in the year. Contracts are issued throughout the month of each year, and conse- 
 quently, in making a terminal reserve valuation the date of issue must be known in 
 order to have the valuation to end on the anniversary of the issuance of the contract. 
 
 Such a valuation would be impractical, and therefore, the law permits and the 
 practice is to make valuations as if contracts were issued at the middle of the year, 
 because, on the average, policies or certificates have been issued all through the year 
 and therefore have an average duration of six months. 
 
 At the end of the year that is to say, on December 31 of any year it is assumed 
 that all of the policies or certificates outstanding at that date and issued during the 
 current year have a duration of six months ; and all policies issued in the previous 
 year have a duration of one year and six months ; and similarly for other years of 
 issue. Therefore, to make a valuation on the basis of duration of one-half a year, 
 one year and a half, two years and a half, etc., the terminal reserve values must be 
 modified, as before indicated, by conversion into "mean" or "midyear" reserves. 
 
 If the valuation is made by single premiums and annuities these must be modified 
 to give "mean" or "midyear" values. 
 
 Likewise if the valuation be on the "accumulation basis" there must be a modifica- 
 tion of the accumulation factors to produce results, as of one half a year, one year 
 and a half, etc. 
 
 SURPLUS is the excess of assets over liabilities. 
 
 ASSETS of a life insurance company consist of the available securities and other 
 property and the present value of expected future contributions. The available prop- 
 erty makes up the actual assets of the company or society. The expected future con- 
 tributions receivable make up the prospective assets of the company or the society. 
 The prospective assets are of the nature of bills receivable, being composed of the 
 promised contributions expected to be received from the members. Only within the 
 last two years have fraternal societies been compelled to report prospective assets; 
 
247 
 
 that is, the present value of the future contributions expected to be received. Here- 
 tofore, they were only required to report the available or actual assets. 
 
 LIABILITIES of a life insurance company or society are the matured debts and claims 
 of every character and the present value of the promised benefits. Assumed and 
 matured debts and claims are called the actual liabilities, while the present value of 
 the promised benefits are known as the prospective liabilities. The latter are of the 
 nature of bills payable. The actual liabilities consist of claims reported, approved and 
 unpaid, or existing, or in course of approval, and also the amount that is due to 
 different parties whether for expenses or otherwise, and the net value of the outstand- 
 ing certificates. This net value is known and heretofore explained as the reserve 
 accumulation, or the required accumulation to maintain the integrity of the insurance 
 contract. If the total actual and prospective assets are in excess of the actual net 
 claims and reserve liabilities, the balance is called surplus, which is available for 
 apportionment or distribution or appropriation, as may be determined by the manage- 
 ment of the life insurance company or by the rules of the fraternal beneficiary society. 
 
 DIVIDENDS are the amounts distributed to policy-holders from the surplus or the 
 amount paid to stockholders of stock companies from the surplus. Dividends to policy- 
 holders of life companies are not always paid in cash, but are sometimes paid in the 
 way of extended or paid-up insurance; usually in the way of paid-up insurance, and 
 which latter, being purchased with the dividends, is added to the face of the policy, 
 and has been called Reversionary Addition. Dividends to policy-holders are only paid 
 upon participating policies or contracts. The contracts upon which no dividends are 
 paid are called non-participating policies. 
 
 STOCK Companies are those which are controlled by stockholders who own the 
 capital stock and in which policy-holders have no voice or vote. 
 
 MIXED Companies are those which have stockholders who jointly act with policy- 
 holders to control the management of the companies. 
 
 MUTUAL Companies are those which are controlled by the policy-holders; at least, 
 they have no stockholders and the policy-holders theoretically control the management. 
 
 RENEWAL PREMIUMS are the premiums or contributions made after the first 
 payment. 
 
 PRESENT VALUE is the amount which a sum due at a future date would be worth 
 now, at an agreed rate of interest. 
 
 ACTUAL MORTALITY is the death rate actually experienced by a company or society. 
 
 EXPECTED MORTALITY is the death rate according to some standard table of mor- 
 tality. 
 
 ADVERSE SELECTION usually occurs in connection with unfavorable mortality, but 
 generally it is the exercise of privileges and options by the members which are to the 
 disadvantage of the society or company. In readjustments of contribution rates there 
 are always large withdrawals, and when the withdrawals are of good lives, and the 
 impaired lives remain, this is called adverse selection, since the company or society 
 can not prevent the withdrawals of good lives nor the retention of the impaired lives. 
 Adverse selection also results when members are taken on low rates of contribution 
 to be increased or renewed at the end of a term or designated age at a higher rate. 
 Many members on attaining to the age or to the end of the period for the low rate 
 of contribution will not pay the higher rate and continue the protection, but will lapse. 
 Usually these are good lives, while all impaired lives will continue the protection at 
 the higher rate; therefore, there is an adverse selection against the society or com- 
 pany. 
 
248 
 
 GROUP INSURANCE is thus described by Mr. Henry Moir: 
 
 "In 1911 bills were introduced in several State legislatures to authorize companies 
 to accept groups of men for life insurance without medical examination, and to make 
 it clear that this would not constitute an unjust discrimination. Such laws passed in 
 one or two States and failed of passage in others. They facilitate and give legal 
 sanction to plans for the assurance of working men by manufacturers and others who 
 employ many men. When the plan is compulsory on the workmen, it is generally best 
 that the employer should pay the premium or give what is nearly its equivalent, 
 namely, an increased salary enough to meet the premium with the stipulation that the 
 premium be deducted from the wages. When the plan is not compulsory on all, a 
 medical examination is essential for the due protection of the company. New employes 
 are usually subject to examination in any case. As an encouragement to thrift and 
 an inducement to a contented spirit amongst workmen the plan is to be warmly com- 
 mended. To make it completely satisfying it should be accompanied or supplemented 
 by a pension fund providing for the old age of those w r orkmen who survive. Several 
 large groups have been accepted on yearly renewable term plans, thus furnishing pro- 
 tection without accumulating large reserve funds. Since the average age of a group 
 of workmen remains approximately the same from year to year, the older men who 
 die or drop out being replaced by young men, the total premiums to be paid by the 
 employer would remain about the same. But if a business should begin to fall off, 
 the average age of the men will tend to increase, meaning an increase of the pre- 
 miums just at the time when the business is least able to meet this expense. Some 
 firms and corporations prefer a plan of endowment insurance, maturing at an advanced 
 age, as 60 or 65, and there is much to commend this form of policy for the purposes 
 in view." 
 
 The group insurance plan of the life insurance companies has been opposed by 
 the fraternal beneficiary societies, and at the meetings of the Associated Fraternities 
 and the National Fraternal Congress in 1912, when the organizations were consol- 
 idated, there were resolutions passed condemning this kind of insurance, and the legis- 
 lative committee of the Consolidated Congress was authorized to take such action 
 as would prevent legislation favoring group insurance which might be to the disad- 
 vantage of the fraternal beneficiary societies. The opposition of the fraternal socie- 
 ties was aroused by the fact that one company, at least, undertook to insure as a 
 group the lodges of a society in the State of Michigan. By this action a prejudice 
 was raised against group insurance, and it was largely due to this opposition that the 
 life insurance companies failed to secure favorable legislation in the States, with the 
 exception of two or three, or possibly four, up to the date of this writing. 
 
 Under proper regulations and restrictions group insurance might be of great ad- 
 vantage of the workingman. 
 
 The trouble appears to be that proper supervision and regulation are not possible 
 under existing conditions of disagreement. 
 
 Only a few companies (and no societies) are writing "Group" insurance, and these 
 have different plans. 
 
 A very large number of the life companies and practically all of the fraternal 
 societies oppose or do not care for this method of getting business. 
 
 Not exceeding half a dozen States (to March, 1914) have laws directly providing 
 for group insurance, but the business can be done in upwards of thirty States by 
 permission of Insurance Commissioners. 
 
 The Executive Committee of the National Fraternal Congress of America has 
 adopted an unconditional resolution in opposition to group insurance and instructed 
 
249 
 
 its Committee on Statutory Legislation to attempt the defeat of any bills which may 
 be introduced in any of the States favorable to group insurance. 
 
 The position of unqualified opposition is taken mainly on the ground that to 
 permit life companies to write group insurance would be to allow them to invade the 
 field heretofore considered the exclusive pasture for fraternals. 
 
 The particular reason for opposition is the character of policies which are being 
 written by the life companies, and the danger of "switching" entire lodges from the 
 societies. 
 
 The Insurance Commissioners have declared themselves against the latter, and the 
 companies proclaim that they have no intention of making any effort to "switch," 
 or even solicit the wholesale transfer of local bodies. Nevertheless, the fraternal 
 officials are firmly convinced that the opportunity would exist, and they fear to trust 
 their "ancient enemy'' with such power. 
 
 The question will finally be settled as all questions of a public character are 
 settled upon the determination of public utility. 
 
 The people will not deny themselves of an advantage, because one corporation 
 can and another can not give the service. Neither will the people forego a general 
 benefit in order to protect the business of any public service corporation. 
 
 The present situation is not now affected by popular attention. It is a contest 
 between corporations which favor and oppose a particular method of securing business. 
 
 What decision the people would render is problematical. 
 
 As heretofore stated, it appears that the public might be benefited by group insur- 
 ance, under proper restrictions, regulations and supervision. 
 
 The objectionable feature under present methods is the elimination of the indi- 
 vidual 
 
 The employer and the life or casualty company come to an understanding and 
 straightway announcement is made to the employes that a condition of their employ- 
 ment is that they be insured according to the scheme arranged for them. And that 
 if they quit the service of the employer, or should he discharge, their insurance ceases. 
 
 This is a character of "beneficent" interference with individual rights and privileges 
 not conducive to that sort of independence for which Americanism stands. 
 
 It is an utter impossibility to formulate one scheme of insurance for a group of 
 persons and have the single plan best for each individual of the group. 
 
 It is a denial of unrestrained liberty when the individual is compelled by force of 
 circumstances to accept something inferior to what he could obtain if left to his own 
 selection. 
 
 There are objections to the present methods of writing group insurance, because 
 of the misconception of its real character by those who are insured. 
 
 Again it is objectionable because of the opportunity given to the employer to 
 unduly control the employes. 
 
 A case in point : A person has been employed at a wage of $1,000 a year for ten 
 years. He has a valuable interest in his insurance. He has an offer (because of his 
 skill from ten years' experience) of $1,200 a year. If he accepts the better position 
 he loses his interest in the insurance. The present employer has an advantage gained 
 from past contributions of his employe (in part at least) which is not to be com- 
 mended. 
 
 The position of an employe should not be prejudiced by any scheme of group insur- 
 ance, and he should be left free to accept or reject any plan offered. 
 
 If laws are enacted that will permit the writing of group insurance, all insurance 
 organizations should be included. There should be no discrimination between com- 
 panies and fraternal societies, as under the practice where the business is written by 
 
250 
 
 permission of commissioners. And always the employe should be left free to accept 
 or reject any group insurance scheme without prejudice to his employment, and he 
 should be given an election as to the kind of policy for his insurance, and whether or 
 not it terminated with his employment 
 
 ANNUITY is a stated sum of money which is to be paid yearly. 
 
 ANNUITANT is the one to whom the annuity is payable. 
 
 LIFE ANNUITY is one which terminates on the death of the annuitant. 
 
 PERPETUAL ANNUITY is one that is to be paid yearly or periodically for an unlim- 
 ited number of years. 
 
 TEMPORARY ANNUITY is one which terminates after a specified number of years. 
 
 CONTINGENT ANNUITY is one that terminates on the happening of some stated future 
 event, as at the death of a designated person, or at the end of a number of years after 
 the end of a designated period. The event may be one that must occur, or one that 
 may never occur, so that it is possible for a contingent annuity to be perpetual. 
 
 DEFERRED ANNUITY is one the yearly payments of which do not commence until 
 some future date, or the happening of some future event. 
 
 JOINT ANNUITY is one to be paid so long as both or all of two or more lives con- 
 tinue to exist. 
 
 ANNUITY ON THE LAST SURVIVOR is an annuity to be paid so long as either or any 
 one of two or more lives shall continue to exist. 
 
 SURVIVORSHIP ANNUITY is to be paid to a person termed the nominee, provided he 
 survives a designated person who is termed the insured. 
 
 AMORTIZATION OF BONDS. In a number of States the laws provide for a valuation 
 of securities by the method known as Amortization. The law of New York State 
 reads as follows : 
 
 "All bonds or other evidences of debt held by a life insurance corporation, author- 
 ized to do business in this State, shall, if amply secured and if not in default as to 
 principle and interest, be valued as follows: If purchased at par, at the par value; if 
 purchased above, or below par, on the basis of the purchase price, adjusted so as to 
 bring the value to par at maturity, and so as to yield in the meantime the effective 
 rate of interest at which the purchase was made, provided that the purchase price 
 shall in no case be taken at a higher figure than the actual market value at the time 
 of purchase, and provided further that the Superintendent of Insurance shall have 
 full discretion in determining the method of calculating values according to the fore- 
 going rules, and the values found by him in accordance with such method shall be 
 final and binding; provided also that any such corporation shall return such bond or 
 other evidences of debt at their market value or their book value, but in no event at 
 an aggregate value exceeding the aggregate of the values calculated according to the 
 foregoing rule. The Superintendent of Insurance may at any time, in his discretion, 
 require any insurance corporation, other than a life insurance corporation, authorized 
 to do business in this State, to value its bonds or other evidences of debt in accordance 
 with the foregoing rule." 
 
 In commenting upon this law, Mr. Moir said : 
 
 "It should be noted that this method of valuation does not apply to debts which 
 are not amply secured, nor to bonds which may be in default as to principle or inter- 
 est. It means generally that securities may be valued on the original basis on which 
 
251 
 
 they were bought, and if a bond were purchased so as to yield 4^ per cent interest, 
 then it may be taken throughout its entire duration as yielding this interest, whether 
 the rate of interest should move upwards or downwards. For a life insurance company 
 whose obligations extend for 50 or 60 years, the system is to be highly commended." 
 
 LEGAL RESERVE. Many persons confuse legal reserve with mathematical reserve. 
 The error is due to the fact that in almost all of the States life insurance companies 
 are required to maintain a reserve accumulation according to some standard mortality 
 table. From the fact that this reserve is required by law, it got its name of "Legal 
 Reserve," and Life Insurance Companies became known as "Legal Reserve Companies." 
 The laws which require reserve accumulation are called valuation laws from the fact 
 that the legal reserve, or the reserve accumulation, can be determined only by a 
 valuation, and since the laws require that the net value of the certificates or policies, 
 should be reported, they are known as net valuation law,s. The laws recently enacted 
 for the valuation of the certificates of fraternal beneficiary societies do not confine the 
 ^alue to the net reserve, but the Societies are permitted to report the present value 
 of the promised benefits and the present value of the future contributions as in prac- 
 tice actually collected. In more recent enactments it is also provided that the Societies 
 may value their certificates on what has been designated "accumulation basis." This 
 is a retrospective method of valuation, since it accumulates the claims which have 
 been paid and accumulates contributions which have been made ; the difference between 
 the two being the value of the accumulated surplus or deficiencies. In the case of 
 fraternal societies which have had inadequate rates of contribution, some of the values 
 are negative. This will be explained in more detail in describing valuations. 
 
 MORTALITY RATES. There is no reason why the mortality rate in a 
 fraternity should be either higher or lower than in an "old line" company, 
 unless the one takes poorer risks than the other does. Kansas Workman. 
 
 While the above statement is correct in intention, it is unfortunately put. There 
 are other reasons, and one or two of them are of considerable importance. 
 
 In the first place, there is no> qualification made as to the age distribution of the 
 members, and yet this affects, more than any other one circumstance, perhaps, the 
 death rate of an insurance society. This age distribution, will not be the same in a 
 fraternal order as it is in an "old line" company, even though they have been admitting 
 members between the same age limits, for the same length of time, because of the 
 different kind of policies issued. The ordinary fraternal order deals principally in 
 straight life insurance, and the certificates have little or no cash value at any time. 
 The "old line" company, on the contrary, makes a much more prominent feature of 
 the investment side of insurance, and its policies have a constantly increasing cash 
 value. The result of this difference is that the old members remain in the fraternal 
 order, while a large proportion of them withdraw from the "old line" company, so 
 that in the course of years the age distribution becomes very different in the two, 
 and the fraternal order will consequently show a much higher death rate than the 
 "old line" company. 
 
 Another important fact in this connection is that every investigation that has 
 been made of mortality experience shows that at similar ages the death rate on 
 limited payment policies, whether endowment or whole life, is much lower than on 
 ordinary life policies, and that the latter is lower than that on term policies. The 
 fraternal order usually issues neither endowment nor limited payment life policies, 
 and a great many of its usual certificates are really taken on a temporary basis. 
 It is but natural in these circumstances that the fraternal order should have a higher 
 
252 
 
 death rate than an "old line" company, even when the age distribution in the two 
 is the same. 
 
 There are other minor reasons for difference, but the two given are sufficient 
 to show that the statement quoted from the Kansas Workman is decidedly mislead- 
 ing if unqualified. The reason for offering this criticism is that misinformation on 
 this subject is so widespread and so injurious on account of the false conclusions 
 to which it leads that no effort should be spared to disseminate the truth. 
 
 PENSIONS. As a solution of the problem of superannuation in the government 
 service the United States Civil Service Commission has recommended the compulsory 
 purchase of deferred annuities, payable at age 70, or upon the occurrence of prior 
 disability. It is believed by the Commissioners that this system will be more equitable 
 than that of pensions, as the element of "pull" enters so largely into the latter. 
 
 While this opinion of the Commissioners is probably correct, the question may 
 well be asked, why should government employes be pensioned? They are a peculiarly 
 favored set, with short hours and long vacations, and it is difficult to understand 
 why the mere fact that they are serving the government should entitle them to 
 continued pay after they cease such service unless the employes of private cor- 
 porations should be equally favored. A pension is properly payable either for extra- 
 ordinary services or for premature disability incurred in the line of duty. Thus sol- 
 diers or sailors who have been wounded or otherwise injured as a result of the 
 hazardous service that they perform are rightly entitled to be pensioned, but a 
 service pension, even for these, is wrong in principle. Similar remarks apply to the 
 fire and police force of municipalities. 
 
 That the employes of the government ought to provide for their old age no one 
 will deny. The only question is as to whether or not this provision should be com- 
 pulsory. It seems to me that in making their recommendation the Commissioners 
 have considered immediate effects only, and have overlooked the secondary effects, 
 which, as has been so well pointed out by Herbert Spencer, are frequently of far 
 more importance. The independence of character of which we boast so much in 
 this country is undoubtedly the product of our free institutions, and any steps in the 
 direction of paternalism should be taken with the utmost hesitation, and only after 
 their necessity has been conclusively demonstrated. We all desire that other people 
 should be good, but most intelligent men have come to the conclusion that they cannot 
 be made good by law that it must be entirely by self-development. Similarly, the 
 advantages of thrift are abundantly evident; but this quality also must be of indi- 
 vidual growth. It has comparatively little value when forced by legislation. Fur- 
 thermore, a measure such as that proposed by the Civil Service Commissioners would 
 tend to retain government servants in their positions in spite of their lack of merit. 
 
 There are numerous minor objections that might be raised to this recommenda- 
 tion, but enough has been said to show that it should not be endorsed without care- 
 ful examination and consideration of all its possible results. 
 
 Some States and many cities have pension funds, most of them being largely 
 maintained and dominated by those who expect to become beneficiaries under the 
 system. 
 
 Railroad and other corporations subscribe to pension funds for employes and in 
 some instances control the management of the funds and prescribe the relief to be 
 granted. 
 
 There are pension funds maintained by cooperative associations of teachers and 
 policemen and firemen, etc. 
 
I have investigated many of these funds and there can be urged against them 
 the objections to pensioning public servants, or they are subject to the criticism 
 of contributions inadequate for the benefits promised, even in respect of the teachers' 
 funds. 
 
 STRENGTH OF FRATERNITY. There is an inherent strength in fraternity where there 
 exists real fraternity. A Mason will do much and sacrifice much for a brother Mason. 
 It is the same with a Woodman, a Workman, a Maccabee, an Arcanumite, a Forester, 
 and members of many other real and truly fraternal orders which have that bond 
 of brotherly love which really binds. 
 
 The fraternity of such societies is an element of strength which counts for dollars, 
 and can be relied upon with the same degree of faith as can the contract promises 
 to pay premiums by policy-holders of business life companies. 
 
 There is a disposition to "pooh-pooh" this element of strength when writing about 
 the millions of promised benefits assumed by the fraternal beneficiary societies. 
 
 There are eighty-seven fraternal beneficiary societies which can depend upon the 
 spirit of fraternity to materially aid them in placing these organizations on a per- 
 manent and sound basis. There are others which can depend upon the fraternity of 
 their associations to equal so much money, but the amount would be difficult to state 
 in dollars and cents. There are some which have given too much attention to the 
 business side and too little to the fraternal side and must place no reliance in fra- 
 ternity to help them out of difficulties. 
 
 All fraternal orders which preach and practice fraternity have a strength wholly 
 unknown to business organizations. 
 
 If officials will only be frank and candid and thoroughly confidential and honest 
 with their members, telling them plainly and truthfully of present or prospective 
 difficulties, they can be assured of support in any practical remedy to overcome such 
 difficulties. 
 
 There will be certain members, for individual and personal reasons, who will make 
 a great noise, and often make it appear that the members will turn out and turn 
 their backs upon the honest officials, but no instance of such a thing can be recalled. 
 
 Honest officials of the true fraternal orders can depend upon the discrimination 
 and justice, as well as the strength, of real fraternity. 
 
 Demagogues and self-seeking persons will endeavor to make the members believe 
 that the executive officers are doing a wrong thing in telling the truth and in offering 
 a remedy for universally acknowledged errors and defects. 
 
 These kind of people always have a big mouth and a loud voice, and they have 
 been going about making quite a noise, but the members will not be fooled. 
 
 Fraternity is a thing to be conjured with, if it be real. The counterfeit won't do. 
 The name "Fraternal" is not sufficient. 
 
 Indeed, the greatest strength of fraternity has a breaking point. 
 
 Nearly every one of the eighty-seven, now in mind, is placing a greater and 
 greater strain upon its bonds of brotherhood, which is something that must stop, 
 otherwise they must be soon placed in the doubtful class. 
 
 Don't strain and abuse fraternity. Encourage and use it for the betterment of 
 man and the protection of women and children. 
 
 ADEQUATE RATES. Certainly no one will accuse the author of this book of oppos- 
 ing the adoption of adequate rates by fraternal orders. He has been too urgent in 
 advocacy of them for his position to be misunderstood. 
 
 However, the mere adoption of a plan of adequate rates of assessment will not 
 assure present or future solvency. 
 
254 
 
 The proceeds from the assessments must be properly applied if the rates of assess- 
 ment are to maintain a successful management. 
 
 Rates may be "adequate" in so far as computations are concerned, but if the pro- 
 ceeds are dissipated in wasteful operation, careful calculation goes for naught. 
 
 The officials of fraternal orders, in some instances at least, are following the "old 
 line" example set for them nearly half a century ago. 
 
 Actuaries computed tables of "adequate rates'' for the old line companies, and the 
 same were adopted and put into force, and the companies advertised the fact and 
 thereby gained the confidence of the public. 
 
 Straightway, officials of many of the life companies diverted funds from the uses 
 intended by the actuaries, and it followed that primarily adequate premiums were 
 inadequate to support abuse and extravagance. 
 
 The result was failure. 
 
 This result was hurried, in many cases, by examination and valuation. 
 
 The result of diverting funds by fraternal officials will ultimately be failure. 
 
 That result will be no less disappointing and disastrous because of ignorance in 
 the uses of funds by these fraternal officials. 
 
 It will not alter the situation even though the funds arc used in "building up" 
 the society. 
 
 A good plan and adequate rates will not make a successful life insurance or- 
 ganization. 
 
 Wise and economical management will do more with a poor plan and inadequate 
 rates than wasteful and extravagant management will do with a perfect plan and 
 adequate rates. 
 
 Without regulation, supervision and valuation, there is possible great danger of 
 the public being deceived, and may be defrauded, by officials adopting "adequate 
 rates" and securing endorsement by actuaries of their sufficiency, and then destroy- 
 ing the effect of such endorsement by improper management. 
 
 In calculating or certifying to adequate rates, the actuary or mathematician must 
 always assume proper management, and the use of funds according to the assump- 
 tions of the computations. 
 
 If there is no restraint or regulation to prevent or correct poor or improper man- 
 agement the adequacy of rates and endorsement of an expert cannot keep the or- 
 ganization from failure. 
 
 COMPETING FOR ADEQUACY. No better evidence could be given of the change in 
 public sentiment than the pride with which officials of fraternal orders announce a 
 revision of assessment rates. 
 
 We predict that the shibboleth of "Cheapness," which was the dependence of 
 deputies and organizers for so many years, will soon be relegated to the things which 
 have been. 
 
 It is significant that the more recently organized societies have been most active 
 in the effort to provide adequate rates. 
 
 They are wise in this, because the longer the operation on wrong lines, the more 
 difficult it becomes to get upon a sound basis. 
 
 This truth was recently strikingly demonstrated by actual application of a cer- 
 tain schedule of rates to three different societies ; one of them had just organized 
 and the rates could be applied to all of its members; the second had been operating 
 for twenty years, but 85 per cent of its members were within admission ages and 
 to whom the rates could be applied; the third had been operating about twenty 
 
255 
 
 years, but a very large percentage of members was above the admission ages and 
 the rates were inadequate for these at their attained ages. 
 
 The schedule was an exceedingly attractive one for the new society. 
 
 For the second society the schedule was equally attractive for the members within 
 admission ages; but, when the rates were advanced proportionately to attained ages 
 of the older members, they became so exorbitant as to arouse protest and antagonism 
 from these members. To avoid such a condition, it was necessary to "load" a part 
 of this burden upon the younger members, which "loading"' necessarily increased 
 the rates at the lower ages and made the schedule less attractive. 
 
 While the third society did not have members at more advanced ages, it had a 
 larger proportion of its membership at these ages. While the relief, per each $1,000 
 of protection, for the old members was the same, age for age, as in the second society, 
 the aggregate amount "loaded" onto the younger members made much higher rates 
 at the lower ages in the third society, and hence rendered the schedule less attractive 
 when applied to that society. 
 
 In the first society the member, at say, 20 years of age was only required to pay 
 a rate necessary to cover the cost of his own protection. The same was true, of 
 course, for all other members at their respective ages. 
 
 In the second society, the member at age 20 (as well as members at other admis- 
 sion ages) would be required to pay a rate to provide for his own protection, and, 
 in addition, an extra rate for the purpose of assisting older members. 
 
 In the third society a still higher extra rate must be paid by the younger for the 
 benefit of the older members, because of the large number of the latter in proportion 
 to the former. 
 
 Represented by its present value in cash, the "load" placed upon the member at 
 age 20, by the second society, was $35 per $1,000 of insurance. This meant an extra 
 rate of about 60 cents annually. 
 
 The present value of the "load" laid upon the member at age 20, by the third 
 society, was $53 per $1,000 of protection, which meant a yearly extra rate of 90 cents. 
 
 Suppose the annual rate, at age 20, without any "loading" for old members was, 
 say $9.00, then that would be the rate for the member of age 20 in the first society. 
 For a member of the same age in the second society the rate would be $9.60, and in 
 the third $9.90. 
 
 The second and third, as compared with the first society, would be at a disadvan- 
 tage of 60 and 90 cents, respectively, because they would only offer $1,000 of pro- 
 tection for $9.60 and $9.90, which could be had on as safe a plan in the first society 
 for $9.00. 
 
 The above demonstrates three things, namely: 
 
 First, a society should start right. 
 
 Second, if the start is wrong, the society should get right as quickly as possible. 
 
 Third, that rates which are adequate when applied to one society may be in- 
 adequate when applied to some other society. 
 
 ADEQUACY, PERMANENCY, ATTRACTIVENESS. These are the three requisites for a 
 practical and successful schedule of assessment rates. 
 
 The rates may be "Adequate" for a temporary society, and they may be very 
 "Attractive" because "cheap," which is always possible for temporary protection. But 
 such rates might not assure "Permanency." 
 
 Rates may be "Adequate" and may be such as to guarantee "Permanency," and 
 yet may not be "Attractive." 
 
256 
 
 So, also, rates may be "Attractive," but wholly "Inadequate" to provide for 
 promised benefits or to assure "Permanency." 
 
 Unless there is obtained a combination of "Adequacy," "Permanency" and "At- 
 tractiveness," there can be no successful business operation. 
 
 "Adequacy" of rates may guarantee "Permanency," but if not "Attractive," the 
 society adopting them will fail for lack of public patronage. 
 
 There may be "Attractiveness," but if the rates are not "Adequate" and give 
 assurance of "Permanency," then the society adopting them will fail because unable 
 to fulfill its promises. 
 
 To successfully work the combination of "Adequacy," Permanency" and "Attract- 
 iveness" requires the joining together of expert knowledge in the preparation of rates 
 and practical knowledge in applying them to existing conditions. 
 
 NECESSARY COMBINATION. There is no royal road to good and successful man- 
 agement of any sort of a life insurance organization. 
 
 There are no simple rules to be laid down for attaining to a perfect system in 
 business methods. 
 
 In the words of Josiah Quincy: "Neither a good system nor good men can be 
 sufficient alone. They must be combined. An ideal organization can be perverted 
 by bad men, and the efforts of good men can be rendered nugatory by defective 
 systems." 
 
 There have been failures amongst "old line" companies, not because of defects 
 in the system of insurance, but because of mismanagement by incompetent or dis- 
 honest men. 
 
 There have been failures amongst fraternal orders, not because the officers and 
 managers were incompetent or dishonest, but because of a defective system. 
 
 For successful and permanent operation there must be a combination "of good 
 men and a perfect system. 
 
 Adequate rates and a scientific plan are of no avail when the business manage- 
 ment is controlled by selfish, designing, incompetent, unscrupulous or dishonest men. 
 
 The fact of a scientific plan and adequate rates may become a cloak to hide the 
 misdeeds or mistakes of such men. 
 
 The plan and the rates are emblazoned in shining letters to dazzle the eye, to 
 the end that ruinous management may not be noticed until too late for remedy. 
 
 On the other hand, the results of adding new members; of economical manage- 
 ment, of popular social features, may so attract attention as to cause members, and 
 even officials, to neglect to look into the system under which the business is being 
 operated. 
 
 Present promises may be made for the future payments of millions and millions 
 in benefits, without any consideration whatever of the means for the fulfillment of 
 these promises. 
 
 Because thousands of persons can be persuaded to accept certificates as evidences 
 of the promises to pay future benefits, and in consideration therefor will make monthly 
 contributions of small amounts, these facts appear conclusive as to the efficiency of 
 management and the prosperity of the society. 
 
 The relation between the contributions and the promises are utterly ignored. 
 
 In a general way it is realized that the promises can only be fulfilled by having 
 contributions adequate for the payment of all claims under these promises. 
 
 But how many members, how many directors and trustees and officials stop to 
 question and analyze and investigate the system and plan of operation? How many 
 of these can give a plain and satisfactory and correct answer to the question : 
 
257 
 
 "Will the promised contributions be adequate and sufficient to provide for the 
 promised benefits?" 
 
 Permanent life insurance organizations cannot be builded by good men and good 
 managers alone. 
 
 There must be a combination of good men and good plans. 
 
 Look to it that your society has both, else ultimate failure will result. 
 
 LEGISLATION. The importance of thrift, both to the individual and to the com- 
 munity, has been so often told in song and story that a rehearsal of the tale would 
 be wearisome and profitless. Charity is a beautiful virtue when the necessity for it 
 exists, but few intelligent persons will deny that alms-houses and dispensaries are 
 blots on our fair landscape, only less hideous than jails and penitentiaries. The 
 abolition of poverty may be an "irridescent dream," but surely the eye of hope is 
 not forbidden to view a time when every adult male shall be able and willing to 
 support himself and his natural dependants. Verily, it is a consummation devoutly 
 to be wished, and to the accomplishment of no better end can we devote our sur- 
 plus energies. 
 
 In this connection precept is not lacking. Advice, proverbial and otherwise, so 
 prominently adorns the pages of both permanent and ephemeral literature and is 
 thundered from so many platforms and pulpits that he who would escape the all- 
 pervading admonitions must seek a rock in the mighty waste or some "boundless 
 contiguity of shade," "far from the madding crowd." 
 
 It is the incompetent that need to learn the lesson of thrift, and it is of the utmost 
 importance to society that they should be encouraged therein. 
 
 Unable properly to protect themselves, they should receive the more consideration 
 at the hands of the law. 
 
 To those that clear their minds of cant and reason from facts instead of formulas, 
 the necessity of a certain admixture of paternalism with government is apparent. 
 
 Men -with the ability to acquire wealth may safely be left to take care of it in 
 their own way. 
 
 Not so the poor, however. Their money is hard earned and still more hard saved, 
 and the loss of their little surplus is not only a misfortune to them, but indirectly 
 to the whole community, in that it discourages the developing habit of providence. 
 
 For these reasons, if for no others, peculiar safeguards should be applied to the 
 business of any financial institution that caters specially to the poor. 
 
 This duty of the government has been recognized in the case of savings banks, 
 and, as a result, the loss of deposits made therein is exceedingly rare. 
 
 Of perhaps equal importance with the savings banks are the great fraternal bene- 
 ficiary associations, the so-called poor man's insurance societies. 
 
 For some reason not easy to understand, but probably owing to the influence of 
 general apathy, the government has grossly neglected its duty toward these orders. 
 
 Perhaps because of their democratic management they have been largely free 
 from restraint. 
 
 In most cases failure of the society has caused little or no financial loss to the 
 members because collections were made for the purpose of paying current claims 
 only, and there was no accumulated fund belonging to the aggregate membership. 
 
 The damage resulting from failures has been largely indirect, but none the less real. 
 
 Many members, a'ike ignorant of insurance principles and of the modus operand* 
 of their own societies, supposed that they were paying for whole life protection. 
 
 Upon discovery of their error they were not unnaturally disposed to blame every- 
 thing else rather than their own lack of information. 
 
258 
 
 Embittered by disappointment, they denounce the whole fraternal system as a 
 fraud and often abandon the attempt to protect their families in this way. 
 
 Thus what should be a blessing becomes a curse, in that it discourages rather than 
 stimulates the disposition toward thrift. 
 
 Such an attitude on the part of the poorer classes is most unfortunate and de- 
 mands the serious consideration of everyone interested in the welfare of humanity. 
 
 If a remedy can be found that will restore and justify the confidence once placed 
 in these societies, it cannot be applied too quickly. 
 
 Within recent years reserve funds have become increasingly prominent in the 
 plans of the various orders so that failures will be more disastrous in the future than 
 they have been in the past. To) prevent these failures, which are inevitable under 
 present loose methods of regulation, is one of the most urgent duties of the times. 
 
 As fraternal beneficiary associations are chartered by the various States, and 
 thus receive official endorsement of their plans, the duty of the State to test such 
 plans before issuing the charters is clear. 
 
 This duty is rendered more imperative by the fact that the average citizen is 
 utterly incapable of doing the work himself. 
 
 Life insurance contracts cover long periods and are based on assumptions as to 
 mortality and interest that place them beyond the comprehension of all who are not 
 somewhat instructed in the technicalities of the subject. 
 
 The average man buys protection to his family as he buys medical or legal advice, 
 largely on faith. He cannot test the quality of his purchase except by results. 
 
 In the latter two cases these results are more or less immediate; in the former 
 they are remote. 
 
 Yet the State properly requires the aspirant for medical or legal practice to demon- 
 strate his competency before it allows him to solicit the public. 
 
 Still more rigid should the requirement be in the case of a life insurance or- 
 ganization, which expects, on the average, to receive money for many years before 
 it makes any direct return. 
 
 The plan of such an institution needs to be adequate not only for the present, but 
 for a long time to come. 
 
 By failing to subject these plans to proper tests 'before permitting their operation, 
 the State neglects one of its most important duties. 
 
 It is true that old line companies are held to a pretty strict accountability where 
 net reserve laws are in force ; but the fraternal order, which caters particularly to poor 
 men, to whom the loss of their protection is of the most serious consequence, in re- 
 spect of reserves, is practica'ly unrestrained. The recently enacted valuation laws 
 for fraternal societies is a step in the right direction and probably is a sufficiently 
 progressive step until 1921, when their effect can be determined and their defects cured. 
 INSURANCE METHODS. "Principles" are often confused with "methods" in respect 
 of rates of assessment for insurance cost. 
 
 There is in reality but one primary principle underlying the business of life insurance. 
 
 There are many ways or methods of applying that principle to practical operation. 
 
 One way, and the first method which was adopted in practice, is to make a level 
 rate for all contributing members, regardless of age, occupation, health or residence, 
 and levy assessments according to that rate to provide for claims as they occur. 
 
 This method may be modified by confining the insurance to one class, as in Brook- 
 lyn, N. Y., where there is a society which insures doctors only. 
 
 Or the modification may be in excluding certain hazardous occupations, or persons 
 in bad physical condition, etc. 
 
259 
 
 Another method is to grade the rates to ages of entry and have them remain 
 level thereafter and increase the number of assessments to provide for increased cost. 
 
 Again the method may be to grade to ages of entry and have the rates remain 
 level thereafter, and provide for the future increase in cost by adding to the rates 
 an excess charge over actual cost for a number of years so as to produce an accumu- 
 lation to take care of the heavier cost in later years. This is called the "Level Pre- 
 mium" method. 
 
 And then there is a method of grading rates to ages of entry and have them in- 
 crease annually or periodically thereafter to cover the increasing cost. This is the 
 "Natural Premium" or "Term" method. 
 
 There are other different methods of providing for the payment of the cost of 
 insurance protection, and there are many modifications and combinations of all of 
 the methods. 
 
 The object of all of them is to pay claims under the agreements and contracts of 
 insurance. 
 
 Some one very pertinently wants to know why a man should not exercise the 
 privilege of selecting either method that suits his fancy. 
 
 Why should Insurance Commissioners, or legislators, undertake to prevent so- 
 cieties or associations from offering protection under any one of these methods? 
 
 There should be no abridgment of the right of the individual to select the method 
 of payment most to his liking. The very fact that he elects to choose between 
 methods is evidence of discrimination and judgment, and every man should be left 
 to his own judgment in such purely personal matters. 
 
 It is not so easy to answer the question when it relates to open and unrestricted 
 license to societies and associations. 
 
 If they would tell the whole truth about their methods and leave the applicant 
 to intelligently select, then unrestrained operation would be advisable. 
 
 However, it is well known that individuals are persuaded to take insurance pro- 
 tection. Very few voluntarily seek it. Very few use any judgment in deciding be- 
 tween methods. Almost invariably they accept what they take on faith and believe 
 what is told them as to plans and methods. 
 
 In such circumstances, would it not be well to require organizations to fairly 
 represent what they have to offer? 
 
 Would it no't be to the advantage of those who voluntarily tell the whole truth 
 to have some law to force all to be truthful? 
 
 If one society has the old equal levy plan, and believes it good, why should it 
 object to being advertised as operating upon such a method? And so with all others 
 having different methods. 
 
 Why should not each tub stand upon its own bottom? 
 
 Why not have each society state its method in plain terms and then succeed or 
 fail upon the merits of it? 
 
 Why not have insurance principle the foundation stone for practical operation? 
 
 THE NATURAL PREMIUM PLAN. The following exhibit is worth study from many 
 angles. 
 
260 
 
 Take columns 2. and 3. Column 2. shows the "natural premiums," the "annually 
 increasing costs of insurance." Column 3 shows the sum that an entrant at 20 will 
 pay towards claims on account of death amongst his associate insurants, amounting 
 to $8,009.80 if he lives to age 98, and, under the pure natural premium plan, he would 
 be assessed $1,000 to pay his death claim should he die at that age as expected of him. 
 
 Then note the last item of column 5, showing $7,967.58 as the total of "mortuary 
 increment" in comparison with $1,242.22 as the "interest increment" under the net 
 level annual premium of $10.34. 
 
 Following is an analysis and demonstration of the workings of the two plans from 
 age 20 to the limit of the N. F. C. Table at age 99, under an assumption of 4 per 
 cent interest : 
 
 Column o gives the number of years from ages 20 to 98, inclusive. 
 
 Column i gives the level annual premium at age 20 for insuring $1,000 in the 
 event of death. 
 
 Column 2 gives the natural annual premiums, or yearly increasing insurance 
 costs of $1,000 payable at death, beginning with $5.00 at age 20, and increasing 
 yearly to $1,000 at age 98, for the seventy-ninth and last year of insurance. 
 
 Column 3 gives the summation of the natural premiums (in column 2), and shows 
 the total amount ($9,009.80) that would be paid by a member who entered at age 
 20 and survived to age 99 (the limit of life as assumed in the Mortality Table). 
 
 Column 4 gives the amounts, with 4 per cent interest, taken each year from the 
 level premium and placed in reserve to the end of the twenty-ninth year. Beginning 
 with the thirtieth year the insurance cost (see column 2) exceeds the level premium 
 (.and interest thereon) by 7 cents, which latter amount is drawn from the accumu- 
 lated reserve from the member's premiums (shown in column 5). The difference 
 between the cost and the level premium in succeeding years is drawn from the 
 reserve accumulated by the member until that fund is exhausted in the fifty-fifth 
 year. Beginning with the fifty-fifth year the difference between the yearly increasing 
 costs and the level premium is drawn from "Mortuary Accretions," being the accumu- 
 lated amount of reserve payments (with interest) that have been forfeited by those 
 who have died. 
 
 Column 5 gives the summation of the amounts (with interest) which have been 
 placed in the reserve from the level premium payments. There are additions from 
 the level premiums and interest for twenty-nine years. The additions are only from 
 interest after the twenty-ninth year, since the entire level premium is consumed for 
 insurance cost in succeeding years. The costs of insurance increase so rapidly in 
 these succeeding years that they also consume the entire individual reserve accumu- 
 lation before the end of the fifty-fifth year. Beginning with the latter year, the mem- 
 ber's interest in the accumulation from reserve payments forfeited by those who have 
 previously died is made available to meet the increasing demands for insurance cost 
 (as given in column 2). The summation of the amounts thus drawn from "Mor- 
 tuary Accretions," shown in this column (5) from the fifty-fifth to the seventy-ninth 
 year, discloses the fact that the member is benefited thereby to the amount of 
 $7,967.58. It has required all of his payments with interest (under the level pre- 
 mium, see $1,242,22 in column 6), and $7,967.58 forfeited by deceased members, to 
 pay the costs of his $1,000 of protection during seventy-nine years. 
 
 Column 6 gives the sum of columns 3 and 5, and shows the total amounts, with 
 interest, paid by the member under the level premium plan of contributing the 
 yearly and uniform amount of $10.34. Beginning with the fifty-fifth year, the sum of 
 columns 3 and 5 is, in reality, a difference, because the amounts in the latter column 
 are minus quantities, being derived from the accumulation of others and not from 
 the payments by the individual member. The. annual increase in column 6, after 
 the fifty-fifth year, is, therefore, only the amount of the level premium ($10.34) 
 with interest, or $10.75. 
 
261 
 
 (0) 
 
 (1) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 (5) 
 
 (6) 
 
 1 
 
 10.34 
 
 5.00 
 
 5.00 
 
 5.75 
 
 5.75 
 
 10.75 
 
 2 
 
 10.34 
 
 5.04 
 
 10.04 
 
 5.71 
 
 11.69 
 
 21.73 
 
 3 
 
 10.34 
 
 5.07 
 
 15.11 
 
 5.68 
 
 17.84 
 
 32.95 
 
 4 
 
 10.34 
 
 5.11 
 
 20.22 
 
 5.64 
 
 24.19 
 
 44.41 
 
 5 
 
 10.34 
 
 5.15 
 
 25.37 
 
 5.60 
 
 30.76 
 
 56.13 
 
 6 
 
 10.34 
 
 5.20 
 
 30.57 
 
 5.55 
 
 37.54 
 
 68.11 
 
 7 
 
 10.34 
 
 5.26 
 
 35.83 
 
 5.49 
 
 44.53 
 
 80.36 
 
 8 
 
 10.34 
 
 5.32 
 
 41.15 
 
 5.43 
 
 51.74 
 
 92.89 
 
 9 
 
 10.34 
 
 5.39 
 
 46.54 
 
 5.36 
 
 59.17 
 
 105.71 
 
 10 
 
 10.34 
 
 5.47 
 
 52.01 
 
 5.28 
 
 66.82 
 
 118.83 
 
 11 
 
 10.34 
 
 5.55 
 
 57.56 
 
 5.20 
 
 74.69 
 
 132.25 
 
 12 
 
 10.34 
 
 5.65 
 
 63.21 
 
 5.10 
 
 82.78 
 
 145.99 
 
 13 
 
 10.34 
 
 5.75 
 
 68.96 
 
 5.00 
 
 91.09 
 
 160.05 
 
 14 
 
 10.34 
 
 5.87 
 
 74.83 
 
 4.88 
 
 99.61 
 
 174.44 
 
 15 
 
 10.34 
 
 6.00 
 
 80.83 
 
 4.75 
 
 108.34 
 
 189.17 
 
 16 
 
 10.34 
 
 6.15 
 
 86.98 
 
 4.60 
 
 117.27 
 
 204.25 
 
 17 
 
 10.34 
 
 6.31 
 
 93.29 
 
 4.44 
 
 126.40 
 
 219.69 
 
 18 
 
 10.34 
 
 6.49 
 
 99.78 
 
 4.26 
 
 135.72 
 
 235.50 
 
 19 
 
 10.34 
 
 6.70 
 
 106.48 
 
 4.05 
 
 145.20 
 
 251.68 
 
 20 
 
 10.34 
 
 6.92 
 
 113.40 
 
 3.83 
 
 154.84 
 
 268.24 
 
 21 
 
 10.34 
 
 7.17 
 
 120.57 
 
 3.58 
 
 164.61 
 
 285.18 
 
 22 
 
 10.34 
 
 7.45 
 
 128.02 
 
 3.30 
 
 174.49 
 
 302.51 
 
 23 
 
 10.34 
 
 7.77 
 
 135.79 
 
 2.98 
 
 184.45 
 
 320.24 
 
 24 
 
 10.34 
 
 8.11 
 
 143.90 
 
 2.64 
 
 194.47 
 
 338.37 
 
 25 
 
 10.34 
 
 8.48 
 
 152.38 
 
 2.27 
 
 204.52 
 
 356.90 
 
 26 
 
 10.34 
 
 8.87 
 
 161.25 
 
 1.88 
 
 214.58 
 
 375.83 
 
 27 
 
 10.34 
 
 9.29 
 
 170.54 
 
 1.46 
 
 224.62 
 
 395.16 
 
 28 
 
 10.34 
 
 9.75 
 
 180.29 
 
 1.00 
 
 234.60 
 
 414.89 
 
 29 
 
 10.34 
 
 10.27 
 
 190.56 
 
 .48 
 
 244.46 
 
 435.02 
 
 30 
 
 10.34 
 
 10.82 
 
 201.38 
 
 -.07 
 
 254.17 
 
 455.55 
 
 
 
 
 
 
 
 31 
 
 10.34 
 
 11.44 
 
 212.82 
 
 -.69 
 
 263.65 
 
 476.47 
 
 32 
 
 10.34 
 
 12.15 
 
 224.97 
 
 -1.40 
 
 272.80 
 
 497.77 
 
 33 
 
 10.34 
 
 12.90 
 
 237.87 
 
 -2.15 
 
 281.56 
 
 519.43 
 
 34 
 
 10.34 
 
 13.75 
 
 251.62 
 
 -3.00 
 
 289.82 
 
 541.48 
 
 35 
 
 10.34 
 
 14.68 
 
 266.30 
 
 -3.93 
 
 297.48 
 
 563.78 
 
 36 
 
 10.34 
 
 15.71 
 
 282.01 
 
 -4.96 
 
 304.42 
 
 586.43 
 
 37 
 
 10.34 
 
 16.86 
 
 298.87 
 
 -6.11 
 
 310.49 
 
 609.36 
 
 38 
 
 10.34 
 
 18.12 
 
 316.99 
 
 -7.37 
 
 315.54 
 
 632.53 
 
 39 
 
 10.34 
 
 19.50 
 
 336.49 
 
 -8.75 
 
 319.41 
 
 655.90 
 
 40 
 
 10.34 
 
 21.05 
 
 357.54 
 
 -10.30 
 
 321.89 
 
 679.43 
 
 41 
 
 10.34 
 
 22.75 
 
 380.29 
 
 -12.00 
 
 322.77 
 
 703.06 
 
 42 
 
 10.34 
 
 24.64 
 
 404.93 
 
 -13.89 
 
 321.79 
 
 726.72 
 
 43 
 
 10.34 
 
 26.72 
 
 431.65 
 
 -15.97 
 
 318.69 
 
 750.34 
 
 44 
 
 10.34 
 
 29.03 
 
 460.68 
 
 -18.28 
 
 313.16 
 
 773.84 
 
 45 
 
 10.34 
 
 31.57 
 
 492.25 
 
 -20.82 
 
 304.87 
 
 797.12 
 
 46 
 
 10.34 
 
 34.39 
 
 526.64 
 
 -23.64 
 
 293.42 
 
 820.06 
 
 47 
 
 10.34 
 
 37.52 
 
 564.16 
 
 -26.77 
 
 278.39 
 
 842.55 
 
 48 
 
 10.34 
 
 40.96 
 
 605 . 1 2 
 
 -30.21 
 
 259.32 
 
 864.44 
 
 49 
 
 10.34 
 
 44.77 
 
 649.89 
 
 -34.02 
 
 235.67 
 
 885.56 
 
 50 
 
 10.34 
 
 48.98 
 
 698.87 
 
 -38.23 
 
 206.87 
 
 905.74 
 
262 
 
 (0) 
 
 (1) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 (5) 
 
 (6) 
 
 51 
 
 10.34 
 
 53.65 
 
 752.52 
 
 -42.90 
 
 172.24 
 
 924.76 
 
 52 
 
 10.34 
 
 58.81 
 
 811.33 
 
 -48.06 
 
 131.07 
 
 942.40 
 
 53 
 
 10.34 
 
 64.49 
 
 875.82 
 
 -53.74 
 
 82.57 
 
 958.39 
 
 54 
 
 10.34 
 
 70.81 
 
 946.63 
 
 -60.06 
 
 25.81 
 
 972.44 
 
 55 
 
 10.34 
 
 77.78 
 
 1024.41 
 
 -67.03 
 
 -40.19 
 
 984.22 
 
 56 
 
 10.34 
 
 85.48 
 
 1109.89 
 
 -74.73 
 
 -114.92 
 
 994.97 
 
 57 
 
 10.34 
 
 93.99 
 
 1203.88 
 
 -83.24 
 
 -198.16 
 
 1005.72 
 
 58 
 
 10.34 
 
 103.40 
 
 1307.28 
 
 -92.66 
 
 -290.81 
 
 1016.47 
 
 59 
 
 10.34 
 
 113.84 
 
 1421.12 
 
 -103.09 
 
 -393.90 
 
 1027.22 
 
 60 
 
 10.34 
 
 125.35 
 
 1546.47 
 
 -114.60 
 
 -508.50 
 
 1037.97 
 
 61 
 
 10.34 
 
 138.09 
 
 1684.45 
 
 -127.34 
 
 -635.84 
 
 1048.72 
 
 62 
 
 10.34 
 
 152.19 
 
 1836.75 
 
 -141.44 
 
 -777.28 
 
 1059.47 
 
 63 
 
 10.34 
 
 167.77 
 
 2004.52 
 
 -157.02 
 
 -934.30 
 
 1070.22 
 
 64 
 
 10.34 
 
 184.96 
 
 2189.48 
 
 -174.21 
 
 -1108.51 
 
 1080.97 
 
 65 
 
 10.34 
 
 204.04 
 
 2393.52 
 
 -193.29 
 
 -1301.80 
 
 1091.72 
 
 66 
 
 10.34 
 
 225.08 
 
 2618.60 
 
 -214.33 
 
 -1516.13 
 
 1102.47 
 
 67 
 
 10.34 
 
 248.35 
 
 2866.95 
 
 -237.60 
 
 -1753.73 
 
 1113.22 
 
 68 
 
 10.34 
 
 274.15 
 
 3141.10 
 
 -263.40 
 
 -2017.13 
 
 1123.97 
 
 69 
 
 10.34 
 
 302.57 
 
 3443.67 
 
 -291.82 
 
 -2308.95 
 
 1134.72 
 
 70 
 
 10.34 
 
 334.18 
 
 3777.85 
 
 -323.43 
 
 -2632.38 
 
 1145.47 
 
 71 
 
 10.34 
 
 368.79 
 
 4146.64 
 
 -358.04 
 
 -2990.42 
 
 1156.22 
 
 72 
 
 10.34 
 
 407.67 
 
 4554.31 
 
 -396.92 
 
 -3387.34 
 
 1166.97 
 
 73 
 
 10.34 
 
 449.75 
 
 5004.06 
 
 -439.00 
 
 -3826.34 
 
 1177.72 
 
 74 
 
 10.34 
 
 498.45 
 
 5502.51 
 
 -487.70 
 
 -4314.04 
 
 1188.47 
 
 75 
 
 10.34 
 
 549.38 
 
 6051.89 
 
 -538.63 
 
 -4852.67 
 
 1199.22 
 
 76 
 
 10.34 
 
 602.74 
 
 6654.63 
 
 -591.99 
 
 -5444.66 
 
 1209.97 
 
 77 
 
 10.34 
 
 655.17 
 
 7309 . 80 
 
 -644.42 
 
 -6089.08 
 
 1220.72 
 
 78 
 
 10.34 
 
 700.00 
 
 8009.80 
 
 -689.25 
 
 -6978.33 
 
 1231.47 
 
 79 
 
 10.34 
 
 1000.00 
 
 9009.80 
 
 -989.25 
 
 -7967.58 
 
 1242.22 
 
 If the foregoing table is carefully studied, a clear understanding should be had 
 of the difference between the level and natural premiums. And there should also be 
 a definite appreciation of the advantages of the two plans. 
 
 It will be seen, from comparing columns 3 and 6, that the member entering at 
 20 does not pay out a total sum under the "Natural Premium" equal to the sum 
 paid under the "Level Premium" until the end of fifty-four years, or at age 74. To 
 the latter age the advantage is with the "Natural Premium" plan. 
 
 If no interest is accounted for on the excess payments under the level premium 
 plan, and only, the actual payments of $10.34 annually are considered, even then the 
 advantage is with the "Natural Premium" plan for forty-three years, as may be 
 seen by comparing columns i and 3. At the end of forty-three years the total pay- 
 ments under the "Level Premium" amount to $444.62, and under the "Natural Pre- 
 mium" to $431.65. Thus the advantage of the latter is maintained, under the most 
 favorable comparison, to the advanced age of 64, when, ordinarily, there are few, 
 if any, dependants. 
 
 This advantage in the method of paying costs by "Natural Premiums," from age 
 20 to 64, if improved as any provident man could and should improve it, would be 
 represented by a cash accumulation of $318.69 (see column 5) at age 64. 
 
263 
 
 It is, therefore, clear that the actual amounts paid in assessments, without con- 
 sidering interest on excesses, amount to a greater sum under the Level than the 
 Natural Premium plan during forty-three years. If the difference in payments is 
 utilized, there could be accumualted $318.69, as an old age or other benefit. 
 
 If insurance protection is continued to the advanced ages, when there are few 
 or no dependants to protect, then the "Natural Premium" plan is not so attractive. 
 
 It is a plan that follows "Nature" and conforms to the ordinary conditions in life, 
 and meets the demands of common sense in deciding upon a plan for the protection, 
 of dependants at a time when they most need protection. 
 
 It is not a plan to provide for old age, or to encourage speculation upon the 
 lives of old people or to build up estates, or to answer for an investment. It is not 
 a plan to be safely or economically operated beyond age 65 or 70 in its pure and 
 simple form. It must be combined in some way with reserve accumulation if pro- 
 tection is to be continued beyond age 70. 
 
 DEDUCTIONS FROM THE N. F. C. TABLE. 
 
 Column i gives the number dying during each year, assuming 100,000 persons 
 living at age 20. Thus, during the first year, age 20 to 21, 500 die. During the second 
 year, age 21 to 22, 501 die, making the total deaths in the two years 1,001. At the 
 end of the fiftieth year, age 69 to 70, 50,698 of the original 100,000 have died. Hence, 
 half of all the original entrants would be dead between age 69 and 70, or at the 
 end of 49.7 years, as shown in column 3 opposite age 20. 
 
 Column 2 gives the years of "Life Expectancy." The figures in this column, 
 whether for the N. F. C. Table or any other mortality experience, are almost uni- 
 versally misused when endeavoring to base rate upon "Life Expectancy." 
 
 Column 3 gives the "Equation of Life," which is the number of years that will 
 elapse until half of the original entrants at any given age have died. Thus, of 1,000 
 persons at age 20, 500 will have died within 49.7 years. O'f 1,000, at age 25, one-half 
 will have died at the end of 45.2 years. Of 1,000 at age 40, one-half will have died 
 at the end of 31.7 years. And so on for each age, as shown in column 3. 
 
 Column 4 gives the number of years that will elapse before an entrant will con- 
 tribute on the natural premium system an amount equal to the face of his cer- 
 tificate. Thus, a member who enters at age 20 and pays $5.00 the first year and $5.04 
 the second year, and so on, increasing each year according to the N. F. C. Mortality 
 Table, will require 54-7 years to contribute $1,000. Similarly, a member entertaing 
 at age 30 will require 45-3 years. The corresponding figures for other ages will be 
 found in this column opposite the respective ages. 
 
 (0) 
 
 (1) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 20 
 
 500 
 
 45.6 
 
 49.7 
 
 54.7 
 
 21 
 
 1,001 
 
 44.9 
 
 48.8 
 
 53.8 
 
 22 
 
 1,503 
 
 44.1 
 
 47.9 
 
 52.8 
 
 23 
 
 2,006 
 
 43.3 
 
 47.0 
 
 51.9 
 
 24 
 
 2,511 
 
 42.5 
 
 46.1 
 
 50.9 
 
 25 
 
 3,018 
 
 41.8 
 
 45.2 
 
 50.0 
 
 26 
 
 3,528 
 
 41.0 
 
 44.3 
 
 49.1 
 
 27 
 
 4,041 
 
 40.2 
 
 43.4 
 
 48.1 
 
 28 
 
 4,558 
 
 39.4 
 
 42.5 
 
 47.2 
 
 29 
 
 5,080 
 
 38.6 
 
 41.6 
 
 46.3 
 
 30 
 
 5,607 
 
 37.8 
 
 40.7 
 
 45.3 
 
 31 
 
 6,140 
 
 37.0 
 
 39.8 
 
 44.4 
 
 32 
 
 6,680 
 
 36.2 
 
 38.9 
 
 43.5 
 
 33 
 
 7,228 
 
 35.4 
 
 38.0 
 
 42.5 
 
 34 
 
 7,785 
 
 34.6 
 
 37.1 
 
 41.6 
 
 35 
 
 8,352 
 
 33.9 
 
 36.2 
 
 40.7 
 
 36 
 
 8,930 
 
 33.1 
 
 35.3 
 
 39.7 
 
 37 
 
 9,521 
 
 32.3 
 
 34.4 
 
 38.8 
 
264 
 
 (0) 
 
 (1) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 38 
 
 10,127 
 
 31.5 
 
 33.5 
 
 37.9 
 
 39 
 
 10,749 
 
 30.7 
 
 32.6 
 
 36.9 
 
 40 
 
 11,389 
 
 29.9 
 
 31.7 
 
 36.0 
 
 41 
 
 12,049 
 
 29.1 
 
 30.9 
 
 35.1 
 
 42 
 
 12,732 
 
 28.3 
 
 30.0 
 
 34.2 
 
 43 
 
 13,440 
 
 27.5 
 
 29.1 
 
 33.3 
 
 44 
 
 14,174 
 
 26'. 8 
 
 28.2 
 
 32.4 
 
 45 
 
 14,935 
 
 26.0 
 
 27.4 
 
 31.4 
 
 46 
 
 15,725 
 
 25.2 
 
 26.5 
 
 30.5 
 
 47 
 
 16,547 
 
 24.4 
 
 25.6 
 
 29.6 
 
 48 
 
 17,404 
 
 23.7 
 
 24.8 
 
 28.7 
 
 49 
 
 18,298 
 
 22.9 
 
 23.9 
 
 27.9 
 
 50 
 
 19,233 
 
 22.2 
 
 23.1 
 
 27.0 
 
 51 
 
 20,214 
 
 21.4 
 
 22.2 
 
 26.1 
 
 52 
 
 21,243 
 
 20.7 
 
 21.4 
 
 25.2 
 
 53 
 
 22,326 
 
 19.9 
 
 20.6 
 
 24.3 
 
 54 
 
 23,466 
 
 19.2 
 
 19.8 
 
 23.5 
 
 55 
 
 24,668 
 
 18.5 
 
 19.0 
 
 22.6 
 
 56 
 
 25,938 
 
 17.8 
 
 18.2 
 
 21.8 
 
 57 
 
 27,280 
 
 17.1 
 
 17.4 
 
 20.9 
 
 58 
 
 28,698 
 
 16.4 
 
 16.6 
 
 20.1 
 
 59 
 
 30,199 
 
 15.7 
 
 15.8 
 
 19.3 
 
 60 
 
 31,787 
 
 15.0 
 
 15.1 
 
 18.5 
 
 61 
 
 33,468 
 
 14.4 
 
 14.4 
 
 17.7 
 
 62 
 
 35,246 
 
 13.7 
 
 13.6 
 
 16.9 
 
 63 
 
 37,126 
 
 13.1 
 
 12.9 
 
 16.1 
 
 64 
 
 39,111 
 
 12.4 
 
 12.2 
 
 15.3 
 
 65 
 
 41,205 
 
 11.8 
 
 11.6 
 
 14.6 
 
 66 
 
 43,411 
 
 11.2 
 
 10.9 
 
 13.8 
 
 67 
 
 45,729 
 
 10.7 
 
 10.3 
 
 13.1 
 
 68 
 
 48,159 
 
 10.1 
 
 9.7 
 
 12.4 
 
 69 
 
 50,698 
 
 9.5 
 
 9.1 
 
 11.7 
 
 70 
 
 53,343 
 
 9.0 
 
 8.5 
 
 11.1 
 
 So much has 'been said about the undesirability and unattractiveness of the 
 "Natural Premium" or "Step Rate" plan of insurance that column 4 was especially 
 prepared to show that it is a paying proposition for a great many years, even when 
 taken at advanced ages. 
 
 No one will deny that the "Natural Premium" plan is the very cheapest possible 
 in the event of early death. 
 
 The practical question for decision is (when deciding upon the plan for paying 
 assessments), how long will I probably need protection for dependants, and how 
 long will I probably live? 
 
 The needs of protection for dependants is an individual matter exclusively and 
 must be determined by each member for himself. Assistance in the determination 
 cannot be rendered by an appeal to averages. The individual must know his present 
 status, estimate the prospects for the future and make his own calculations as to 
 the time when present and prospective dependants will relieve him from care for 
 their support. 
 
 As to how long he will probably live, an approximate idea can be given to him 
 by consulting column 3. According to observed experience, half of a given number 
 of persons at his age (say 35) have survived for 36.2 years. Hence, it is assumed 
 that he has an equal chance to live for that period. 
 
 If he were to pay the increasing insurance costs as they accrue from year to 
 year, according to the "Natural Premiums," it would require that he should live and 
 pay for 40.7 years 'before he would pay out $1,000. 
 
265 
 
 Should he only live the average life time, 36.2 years, he would pay out as assess- 
 ments $671, which would be $229 less than the sum insured, and hence the "Natural 
 Premium" plan would yield a "profit" for more than half of all who entered at age 35. 
 The "profit," or "benefit," to the heirs of those who died in the first year of insurance, 
 and who had paid one annual assessment of $6.15, would be $993.85. To the heirs of 
 those who died in the thirty-sixth year of insurance the "profit" would be $229 over 
 all payments of assessments. 
 
 Why is it not an attractive proposition that will yield to half of all who enter 
 at age 35 "profits" to heir ranging from $993.85 to $229? 
 
 Each member has an equal chance with every other member of benefitting his heirs 
 to a greater or less extent, according to the year of his death, but which in any event 
 will exceed by at least thirty-three and one-third per cent his total outlay, even 
 though he survive to the age of 71. 
 
 If 1,000 members enter into insurance at age 40, half of them will survive for 
 31.7 years, while no one of these survivors will pay, by "Natural Premiums," a total 
 sum equal to $1,000 in less than 36 years. It follows) that the 500 who die before 
 attaining to 72 years of age will pay out much less than $1,000 in assessments. 
 
 Entering at 60, i't would require 18.5 years for a member to pay, by "Natural 
 Premiums," the sum of $1,000. Half of a given number at 60 would die within 15.1 
 years, and, therefore, half would pay out much less than $1,000 under the "Natural 
 Premium" plan, even at that advanced age. 
 
 It is just as well to calmly consider this "Step Rate" plan before condemning it 
 by mere inspection of the figures at the very advanced ages. 
 
 Insurance is for the protection of dependants, is it not? How many dependants 
 will there be at age 70, anyway? 
 
 How much need will there be for it after the age of three score years and ten?. 
 
 Up to that age you have a good proposition, and you have an equal chance with 
 your associates for living to 70, since beginning as young as 20 only a fraction more 
 than half of all original entrants will have died before reaching that age. 
 
 Under the "Natural Premium" plan there is no bother about reserve accumulation 
 and investments and interest earnings. It is a straight, simple insurance proposition, 
 where you "pay as you go," and get exactly what you pay for. 
 
 If a man believes that he will be of that number who live beyond the average life 
 time, that he will survive beyond the "Equation of Life," then he may look with 
 disfavor upon the "Natural Premium" plan, which levies large and progressively 
 increasing assessments at the very advanced ages. 
 
 It is strange that anyone should have anxiety about protection for dependants 
 beyond the age of 70, since so little need exists for such protection, yet that apparent 
 anxiety is the basis for objection to the "Natural Premium" plan. 
 
 If the real purpose were exposed by close analysis of what men really desire at 
 these advanced ages, it would be discovered that they want protection for them- 
 selves in old age, and they have an idea that an insurance certificate on their own 
 lives will serve their purpose. 
 
 It is a mistaken use of life insurance to undertake to turn it to such a purpose, 
 and there will result disappointment from such an undertaking. However, if the 
 effort is to be made to combine in one contract protection for self in old age as well 
 as protection for dependants during the dependancy period, then the "Level Pre- 
 mium" plan is superior to the "Natural Premium" plan, by virtue of the accumulation 
 to the credit of the former at advanced ages. 
 
 THE LEVEL PREMIUM PLAN. There are many things to be said in favor of the 
 straight "Level Premium" plan, and much more to be said in favor of the "Natural 
 
266 
 
 Premium" plan, but it is not to be disputed that popular sentiment strongly leans 
 towards the former. Much of this sentiment is due to a misconception of insurance 
 methods and principles. 
 
 Believing that too much details is impossible in this connection, I submit another 
 chart showing the working of the reserve under a level premium. 
 
 /ooo. 
 
 PRACTICAL WORKING OF THE RESERVE. 
 
 This chart illustrates the Level Premium at the age of 
 35 in five-year periods. The curved line represents the 
 increasing cost of insurance according to the N. F. C. 
 Table of Mortality, and begins there at $6.00 annually and 
 ends at $1,000. 
 
 The horizontal line which represents the Level Premium 
 cuts the curved line at a point corresponding to $16.62. 
 To the left of the point of crossing the distance between 
 the curved and straight lines represents the amount of 
 excess payments at any point. The corresponding dis- 
 tance to the right of the crossing represents deficiency. It 
 is obvious at a glance that the deficiencies are far greater 
 than the excesses. The balance, however, is maintained 
 by means of interest and mortuary accretions on the over 
 payments of the early years. When the age of crossing is 
 reached there is on hand the sum of $329, which reserve is 
 thereafter drawn upon each year to help out deficiency 
 payments. Thus, in the 25th year, the cost of insurance 
 is $23, and as the payment is only $16, the balance of $7 
 must be taken from the reserve. Exch succeeding year the 
 draft will be somewhat heavier on account of the increasing 
 cost of insurance, but as the reserve accretions increase 
 even more rapidly, the reserve itself constantly grows 
 until, at the age of 99, it amounts to $1,000, and thus suf- 
 fices to pay the entire claim. The inequality of the two 
 sections of this chart illustrates admirably the wonderful 
 effects of compound interest and mortuary accretions. 
 
 7 
 
267 
 
 The "Natural Premium," or "Increasing Cost" of Protection is greater than the 
 Level Premium after age 55. 
 
 At age 60 the Natural Premium is $22.75 ; at 65 it is $34-39 ; $53-65 at 70 ; and $85.48 
 at 75 ; while at 80 it is $138.09. 
 
 Most men are optimistic and they believe that a long life is allotted to them. 
 This feeling causes them to look at the cost when they are advanced -ages and when 
 comparison is made between the Level and Uniform Rate of $16.62 and the rate that 
 is $16.86 at 56; $22.75 at 60; $53.65 at 70; and $138.09 at 80, they decide in favor of 
 the Level Contribution Rate. 
 
 Their decision often would be otherwise if they considered the cost as set forth 
 in the foregoing analysis. 
 
 Yet, it must be admitted, that men of thought and experience and matured judgment 
 favor the Level Premium. 
 
 The diagram illustrates its advantages. 
 
 COMPARISON OF RESERVES. As there seems to be a rather general impression 
 amongst those who have not given special study to insurance questions that reserves 
 vary to a considerable extent, according to the mortality table by which they are 
 calculated, we have constructed a chart which illustrates in a graphic manner how 
 slight the difference really is on contracts for whole-life insurance. 
 
 The data are for age 20, and terminal reserves are used so that the increase as 
 representd by the curves is from nothing to $1,000. The dotted line corresponds to 
 the Actuaries' Mortality Table; the broken line to the American Experience, and 
 the light continuous line to the National Fraternal Congress Table. 
 
 Although these three tables differ materially in death rates at some ages, it will 
 be observed that the three lines are almost identical throughout their length. 
 
 The medium continuous line represents a reserve on a contract providing for 
 natural premium payments to the age of 70, with a slight reserve loading to keep 
 the payments level after that age. Although the reserves under this plan, as it will 
 be noticed, begin and end at the same points as those previously considered, yet 
 they are very much lower at intermediate points. 
 
 The heavy continuous line represents the reserves under a temporary contract 
 terminating at the age of 70. It will be noticed that at the start these reserves follow 
 much the same course as those under a whole-life contract, but they they decline 
 with great rapidity to zero after reaching a maximum. The table accompanying the 
 chart tells the same story in figures. 
 
 It will be noted that the reserves under the National Fraternal Congress Table 
 are greater than those under the American Experience for nearly 40 years. At the 
 end of the fortieth year there is only $t.oo difference in favor of the latter, the 
 individual reserve being $455 and $456 respectively. 
 
 By combining the level and natural premiums the reserve accumulation is kept 
 at a moderate sum, being small in the early years of the contract when there are 
 many members, and large in the later years when the number of members is small, 
 thus avoiding at any period of the contract a large aggregate accumulation. 
 
 On a term contract ending at age 70, in the beginning the accumulation approaches 
 in amount the full reserve for a whole life level rate certificate, and greatly exceeds 
 
268 
 
 TERMINAL RESERVES 4 PER CENT FOR 
 ENTRY AGE 20. 
 
 Policy 
 Year. 
 
 Actu- 
 aries'. 
 
 Ameri- 
 ican 
 Expe- 
 
 Nation- 
 al Fra- 
 ternal 
 Con- 
 
 Modi- 
 fied 
 Natu- 
 ralPre- 
 
 N.F.C. 
 
 Term 
 to Age 
 
 
 
 rience. 
 
 
 mium 
 
 70. 
 
 
 
 
 gress. 
 
 Plan. 
 
 
 5 
 
 33 
 
 29 
 
 31 
 
 8 
 
 19 
 
 10 
 
 73 
 
 65 
 
 69 
 
 17 
 
 41 
 
 15 
 
 119 
 
 108 
 
 114 
 
 29 
 
 66 
 
 20 
 
 173 
 
 159 
 
 167 
 
 44 
 
 95 
 
 25 
 
 236 
 
 220 
 
 228 
 
 63 
 
 124 
 
 30 
 
 307 
 
 291 
 
 296 
 
 89 
 
 151 
 
 35 
 
 384 
 
 371 
 
 373 
 
 123 
 
 171 
 
 40 
 
 465 
 
 456 
 
 455 
 
 172 
 
 173 
 
 45 
 
 546 
 
 542 
 
 541 
 
 248 
 
 134 
 
 50 
 
 624 
 
 629 
 
 626 
 
 381 
 
 
 55 
 
 696 
 
 704 
 
 707 
 
 519 
 
 
 60 
 
 760 
 
 776 
 
 779 
 
 643 
 
 
 65 
 
 818 
 
 844 
 
 840 
 
 747 
 
 
 70 
 
 872 
 
 905 
 
 889 
 
 830 
 
 
 75 
 
 919 
 
 949 
 
 925 
 
 892 
 
 
 tf.F.C. 
 
 ACTt/AfHfS 
 AMGff. jtp. 
 
 ooo. 
 
 QOO 
 
 700 
 
 (ooo 
 
 $00 
 
 [00 
 
 Ooo 
 
 3o 3S 
 
 45 
 
 60 
 
 80 
 
 loo 
 
269 
 
 that of the whole life combined level and niatural rate. The term reserve increases 
 for forty years, and then rapidly decreases during the last ten years, being nil at 
 the end of the fiftieth year, at age 70, when the insurance period ends. 
 
 The most deceptive kind of a reserve is that accumulated under a level premium 
 term certificate, because of the increasing accumulation that lulls the confiding into 
 a sense of security with a sudden awakening by the rapid disappearance of the 
 basis of his hopes. 
 
 THE LAST MAN. Following is from an insurance magazine: 
 
 At frequent intervals one hears the statement that certain organizations can con- 
 tinue and pay the last man the face of his certificate, regardless of growth. No in- 
 surance organization has ever done this. It is a law of nature that everything must 
 either progress or retrograde. If the latter, there comes a time when normal condi- 
 tions do not obtain, and then disaster follows. The properly balanced organization 
 is one which provides for normal conditions, which does not rely unduly upon growth 
 and which does not lull itself into a sense of fancied security for the reason that it 
 believes its plans are correct and, therefore, it will perpetuate itself. There must 
 be progress if successful results follow. 
 
 Of course an organization will go out of existence if new members are not se- 
 cured, because all existing members must eventually die. But it is surprising that a 
 well-informed editor should intimate that "the last man" could not be paid if the 
 company or society, which has an adequate and scientific plan, ceased writing 1 new 
 policies or certificates. 
 
 The Pennsylvania Company for Insurance on Lives and Granting Annuities was 
 incorporated and commenced business M'arch 10, 1812. For a number of years the 
 company transacted a life insurance business, but finally ceased to accept applications, 
 but continued to receive premiums from existing policy-holders and to pay death 
 claims as they occurred. 
 
 At the beginning of the year 1901 there were just twenty-four whole life policies 
 outstanding, covering $91,500 of insurance. During 1901 there were three policies 
 matured by death for $8,000, leaving on December 31, 1901, only twenty-one policies 
 in force, with $83,500 of insurance. During the year 1901 the total premium receipts 
 were $1,880.24, being $6,119.76 less than the death claims paid, which deficit was, 
 of course, made good out of the reserve fund, which latter amounted to $56,975 on 
 December 31, 1901. 
 
 Here we have a life insurance business gradually decaying, and yet every claim 
 will be paid in full. The reserve accumulation of $56,975 is 67 per cent of the total 
 insurance in force $83,500 and it will suffice to supplement the premiums in the 
 payment of the claim on the "last man." 
 
 CONCOMITANTS OF CHANGE. The transition from one system to another is always 
 attended by friction. 
 
 An omelet cannot be made without breaking eggs, and you cannot right a wrong 
 without a disturbance. 
 
 It is as stated by a coal miner when discussing the best method of settling labor 
 troubles : "In any great change somebody is going to get hurt." 
 
 When we become accustomed to certain conditions, we are tempted to endure 
 evident evils rather than submit to the inconvenience of a change. 
 
 These thoughts come from contemplating the situation of the Modern Woodmen 
 of America. 
 
 For twelve months continuous agitation has disturbed the membership of that 
 great order. 
 
 Few of its members deny the weakness of the present plan. 
 
270 
 
 Those who oppose any change base their argument upon the present splendid 
 condition of the society, and contend that the present plan will suffice for ten, fifteen 
 or possibly twenty years before the cost of protection becomes exorbitant. 
 
 The laissez faire argument is the only one presented in favor of continuing the 
 present plan. "Do not interfere with existing conditions, and let the future take 
 care of itself," is the sentiment of a very large number of the members. 
 
 But those who take this position do not deny that a change from the present plan 
 must be made within a few years. 
 
 There is another large class who favor a change but want a very little change. 
 They oppose anything which would be "radical." They favor some makeshift "or 
 expedient, which usu'ally takes such form as to permit them to virtually remain as 
 now, and to throw the burden of increase upon future members, whom they suppose 
 will be ignorant enough to join them, and then become burden-bearers for them. 
 This course has been taken so many times by other societies that this class of persons 
 believe that they can successfully follow it, and that American workingmen will con- 
 tinue to voluntarily make of themselves hewers of wood and drawers of water be- 
 cause invited to do so under the guise of fraternity. We place a higher standard 
 upon American intelligence than to believe that they can be hoodwinked in any 
 such fashion. 
 
 There are a great host of thinking, conscientious members who realize the serious- 
 ness of the situation, and who desire an adequate and scientific and safe plan, but 
 who are divided as to the kind of a plan which should be adopted. The majority 
 of them have a more definite and a clearer conception of their objections to the 
 several plans than they have of the particular plan they would favor. 
 
 It is so easy to make objections; so difficult to mark out a satisfactory line of action. 
 
 It is impossible to anticipate the action of the next Head Camp. 
 
 Political trading for personal advantage will possibly determine the action on 
 readjustment. 
 
 Were politics eliminated from consideration, and were there no office-seekers to 
 influence results, it might be predicted that a change to an adequate plan would be 
 made. Some of the head officers believe that such will be the result in spite of the 
 handicap of self-seeking politicians. 
 
 MISLEADING STATEMENTS. A society paper contains the following: 
 
 The legal reserve theory is false because it assumes that every policy issued will 
 become a claim. This is borne, out by the fact, as shown by experience, that the 
 actual amount needed to meet each one million of insurance written has only been 
 $473,000; lapses relieved the companies of the balance. Therefore, if the estimates 
 of reserve necessary to "pay the last man" is reduced to one-half the present re- 
 quired so-called legal reserve it would appear that the resources will be sufficient 
 for every probable contingency. Fraternals anticipate making good any deficiency 
 in reserve from greater lapsing, flexible rates and assessments. 
 
 The "legal reserve theory" assumes no such thing as stated. 
 
 The "legal reserve" is the fund required by statute, and has no reference what- 
 ever to the fact of assuming or not assuming that "every policy issued will become 
 a claim." 
 
 The legal reserve laws take no cognizance of the method of calculating premium 
 rates. The only requirement is that a fund must be on hand which will equal the 
 difference between the present value of the future premiums and the present value 
 of the outstanding insurance obligations. 
 
 If the premium rates are low, the reserve accumulation must be correspondingly 
 large, because the present value of low rates is smaller than the present value of 
 
271 
 
 high rates, and hence it requires a larger fund to make good the difference between 
 such smaller value and the value of the obligations the insurance liabilities are not 
 affected by low or high rates every obligation of $1,000 must be paid, if the or- 
 ganization remain solvent, and it cannot reduce that obligation by reducing rates 
 nor increase it by increasing rates. 
 
 The legal reserve law confines its operation to knowing whether or not the fund 
 makes a balance between the two values of premiums and insurance promises. 
 
 The law cares nothing about the source from which the necessary accumulation 
 is obtained, it only has to do with being satisfied that the ''legal reserve" is in pos- 
 session of the company in cash or in good and acceptable securities. 
 
 Misleading statements are detrimental to the general interests of fraternal orders, 
 and those who know better, or ought to know better, should not indulge them be- 
 cause they happen to pander to a present prejudice. 
 
 CRITICISM. To freely and frankly and fairly discuss the questions now before 
 the fraternal world is to be more or less critical in all that is written concerning the 
 present methods, especially in reference to present rates of assessment of most of 
 the fraternal orders. 
 
 Criticism is never pleasant, and consequently it is natural that the officials of 
 some orders should feel inclined to resent gratuitous comments which more or less 
 reflect upon the conduct of their societies. 
 
 If the criticisms are true, it is not well for any official to feel resentment, though 
 he may be temporarily hurt. 
 
 The truth must prevail, and the sooner it is recognized the better for those who 
 are not in line with it. 
 
 No one likes to be told of his errors, especially when the telling of them is in a 
 public way, and yet the correction of many mistakes is only possible by having them 
 publicly pointed out. 
 
 The animus of the criticism should determine whether it is resented or accepted 
 in good spirit. 
 
 We should always profit by criticism. At the same time it is impossible for any- 
 one to feel other than resentful when the critic is an enemy to the cause, or to the 
 organization which is criticised. 
 
 When it is known that the criticism is from a friendly source and the purpose 
 is to serve the best interests of those who are criticised, it can, and should, be ac- 
 cepted in a friendly and appreciative way. 
 
 However, a critic is never popular, and he is usually tolerated as a necessary evil. 
 
 A few persons have been heard to deplore this spirit of criticism, and this dis- 
 position to point out defects, and this undertaking to present correct principles as 
 applicable 'for successful operation. 
 
 Some persons construe such a spirit, and such a disposition, and such an under- 
 taking as evidence of a belief that the fraternal orders are in a very bad way, and are 
 going rapidly down hill to the demnition bow-bows. 
 
 That is a narrow and superficial view. 
 
 The fraternal orders are becoming stronger under criticism, because they are 
 profiting by it. They are becoming more firmly fixed as life insurance organizations, 
 because they are setting about to remedy defects in their plans. 
 
 Criticism never hurts when the criticised person or organization at once sets 
 about removing the causes of criticism. 
 
 Criticism strengthens when those who are criticised profit by it. 
 
272 
 
 Criticism insures success when those who criticise are earnest advocates of the 
 subject of criticism. 
 
 A friend's criticism is a power for good, and in no other way is it possible to 
 make so great improvement as when there is a mutual and earnest and honest in- 
 vestigation of defects within the circle of friendship. 
 
 It is folly to talk of the failure of the grand cooperative effort which has builded 
 up the great provident institution known as the Fraternal Beneficiary Societies of 
 America. 
 
 It is because they are so great, and because of the glorious future that awaits 
 them, that it is necessary to be sure that they are operated upon right lines, and 
 that any defects in plan should be cured while they are in the heyday of their 
 prosperity. 
 
 For fifteen or twenty years prior to 1895 the critics of fraternal orders were al- 
 together found amongst the officers and representatives of "old line" companies. The 
 criticism indulged by them was unfriendly, was unfavorable, was unfair and was unjust. 
 
 The fraternal orders grew and prospered, but they did not concede the truth of 
 such criticisms, and, therefore, made no effort to profit by them. The criticism did 
 not hurt the fraternal orders, neither did it benefit them. The officials of the societies 
 resented it, and because of its unfriendliness and unfairness they took no heed, even 
 when there was truth in it. 
 
 Since 1895, when the first criticisms were indulged by members of the National 
 Fraternal Congress, how different has been the situation. 
 
 The friends of fraternal societies have been investigating their conditions, have 
 been studying their positions, and have been undertaking to discover what was neces- 
 sary to be done to make them permanent and stable insurance institutions. 
 
 The criticisms which have come from the officers of these fraternal orders, and 
 from the editors of the official organs, and from the writers in the independent jour- 
 nals have been no less searching, and, indeed, scorching, than the criticisms of old 
 line agents and representatives. 
 
 But there has been a wonderful difference in the effect of these criticisms, be- 
 cause they have been made by friends, with friendly intent, and with friendly regard 
 for the future of these great institutions. 
 
 The societies have continued to grow and prosper under the criticisms of these 
 friends and they have done more than that, their plans have been improved, and 
 steps are being taken to place them upon a firm and sound basis so that they will 
 endure for all time. 
 
 Criticism properly made and properly received is the very basis of all progress 
 and the foundation for all success. 
 
 The strength of fraternal insurance is shown by its resistance of unfriendly criti- 
 cism, and by its acceptance of the criticism which is intended for its improvement. 
 
 Nothing can stop or prevent the progress of cooperation amongst the people, 
 because the people are all-powerful. 
 
 Capital and combination may throw obstacles in the way, but ultimate success is 
 a certainty for the majority of the provident institutions which are now making it 
 possible to protect the home by mutual cooperation. 
 
 THE HOME OF BROTHERHOOD. At the dedication of the Carnegie library in Wash- 
 ington, D. C., the donor said : "Free libraries maintained by the people are cradles 
 of democracy, and their spread can never fail to extend and strengthen the demo- 
 cratic idea equality of the citizen, the royalty of man. They are emphatically fruits 
 of the true American ideal." 
 
273 
 
 A beautiful truth, beautifully clothed! 
 
 If there is any other institution than the church that is better for a town, or a 
 village, or a community, than a public library, it is the lodge room of the fraternal 
 beneficiary society. 
 
 The lodge is the home of brotherhood. 
 
 Around its altars gather men who solemnly obligate themselves to protect the 
 loved ones of home from the cold embrace of misery, want and despair. 
 
 About the fireside and within the family circle there can be found no more faith- 
 ful compliance of pledges to brotherly consideration than in the lodge room of the 
 true fraternal society. 
 
 HEALTH AND ACCIDENT INSURANCE. The principal benefit granted by the British 
 Friendly Societies was that of sickness insurance. For a level and uniform weekly 
 contribution there was promised and paid a weekly benefit of a small amount ranging 
 from five shillings to ten shillings a week. After an illness had continued for six 
 months the weekly benefit was reduced, if originally at ten shillings, to half the amount, 
 or five shillings. If the illness or disability continued beyond two years the weekly 
 benefit was further reduced to one-quarter pay, or in the case of ten shillings originally 
 it was reduced to two and one-half shillings per week. This last benefit was continued 
 indefinitely during the disability of the member, even though the disease became 
 chronic. The liability for sick pay increased with the advance in age and the friendly 
 societies found themselves in an insolvent position because of the large amount of 
 claims presented at the advanced ages. The cost of sickness insurance increases 
 with the increase in age in the same manner that the cost of life insurance increases 
 with the advance in age. The equal and uniform contribution rates for sickness 
 benefits failed in their adequacy just as equal and uniform contribution rates failed 
 in adequacy for payment of death claims, due, as stated, to the fact that the liability 
 for either sickness or death insurance has an increasing cost with the increasing age 
 of the membership. 
 
 Very recently there has been great activity amongst what are called health and 
 accident and casualty companies in promoting the business of sickness and accident 
 insurance. Almost without exception these companies charge an equal and uniform 
 rate, but they save themselves somewhat by reserving the right to cancel the insurance 
 upon notice. Under such a contract, when the cost of the protection granted becomes 
 excessive or exceeds the contribution rates of course they can relieve themselves 
 of the insurance liability by cancelling the insurance contract. 
 
 For many years sickness benefits have been granted by fraternal societies, but 
 these have been incidental rather than the main business of the organization. Nearly 
 every one of the secret fraternal orders grant some form of sickness relief or benefit. 
 It has not been in the way of a business, but rather as a relief to those in need and 
 only the members who feel themselves in need of the relief apply for it. 
 
 There have been no requirements for valuations either from the health and acci- 
 dent companies or from the fraternal societies which have granted sickness and 
 accident benefits. However, under the provisions of the Mobile Bill and the later 
 New York Conference Bill and under the laws of the States where these bills have 
 been enacted, the requirement has been made for the valuation of disability benefits. 
 Whether or not the Commissioners will rule that this includes the sick and accident 
 benefits is not yet determined. Certainly the provision requires a valuation of total 
 permanent disability benefits and there is reason for the requirement of a valuation 
 of the sickness benefit where the contract covers the whole period of life or a term 
 of years, since the liability increases with age. In Great Britain the friendly so- 
 
274 
 
 cieties, or at least the registered friendly societies, must make a valuation of their 
 sickness benefits every five years. In principle the valuation of sickness benefit is 
 the same as the valuation for death benefit. 
 
 PERMANENT TOTAL DISABILITY. Insurance against permanent total disability is 
 included in the insurance for disability on account of diseases or accident, as granted 
 by the friendly societies, and as granted by the fraternal beneficiary societies in 
 America for many years under the express provision for total and permanent dis- 
 ability. In 1902 I completed the first investigation of permanent total disability ex- 
 perience for the Knights of the Maccabees of the World, and in 1909 I supplemented 
 the experience of that society with its experience from 1902 to 1909 and that for the 
 Knights of the M'odern Maccabees and of the Royal League and of the Ladies of the 
 Modern Maccabees and the Ladies of the Maccabees of the World. The data ob- 
 tained by me from the experiences of these societies has been employed in the con- 
 struction of several tables which provide for the computation of contribution rates 
 for combined death and disability benefits. 
 
 Many fraternal societies grant total permanent disability benefits, and ordinarily 
 these are payable in ten equal annual instalments, sometimes in twenty semi-annual 
 instalments and sometimes in one payment on proof of disability. Some societies 
 require a proof of disability and then a probation period of six months, when a 
 second proof must be made and, if satisfactory, the first instalment of the disability 
 benefit is paid. After this some societies continue to pay the instalments without fur- 
 ther proof. In other cases the society requires proof each six months or each year 
 as the disability instalment is due and payable. Some societies promise to pay the 
 certificates by instalments at age 70, provided the member is disabled by age or other- 
 wise. Other societies assume total permanent disability at 70 and promise to pay 
 the face of the certificate by instahiients on attaining that age. 
 
 Within the last three or four years the life insurance companies have taken up 
 this form of insurance, first in the way of promising to relieve the policy-holder of 
 further premium payments in the event of perm-anent total disability, if prior to 
 age 60. That feature is now contained in the policy contracts of most every insur- 
 ance company. Many of them have gone further and promise to pay the face of the 
 policy in twenty annual instalments in the event of total permanent disability pro- 
 vided it occur prior to age 60, w'hile others do not limit the age, and others pay 
 the benefit if the disability occur prior to age 70. Where the premium payments 
 are discontinued in the event of total permanent disability sometimes an extra pre- 
 mium is charged, sometimes it is not. I believe the Travelers Insurance Company 
 was the first to discontinue the premiums in the event of total permanent disability 
 and made no extra charge for this benefit. Complaint was made of this practice by 
 the Ohio Insurance Department and after that a nominal extra premium was charged 
 by the Travelers. Many of the companies, however, make no charge for the dis- 
 continuance of premium payments in the event of permanent total disability. Other 
 companies have a graded extra premium rate according to the age of the insurant. 
 Almost all the companies, as stated, limit the liability for total permanent disability 
 benefits or for the discontinuance of premium payments in the event of permanent 
 total disability to the occurrence of the event prior to age 60. Almost all of the 
 fraternal societies which promise a permanent total disability benefit also promise 
 the face of the certificate by instalments at age 70, and hence this provision virtually 
 limits the occurrence of permanent total disability prior to age 70. 
 
 READJUSTMENTS. It is well that we learn from experience, and an experience 
 covering almost any phase of insurance can be found in England. Some of our 
 
275 
 
 societies have placed new members on adequate rates into classes separate from the 
 old members on inadequate rates; other societies contemplate such a course, 
 and under the valuation sections of the laws in States which have enacted the Mobile 
 Bill or the New York Conference Bill there is a provisional requirement that such 
 separation be made. Writing of a similar provision in the rules of the Manchester 
 Unity, Mr. Watson, the actuary, says: 
 
 It is provided by General Rule 82 that in cases wherein lodges reduce benefits 
 or increase contributions (or both) under the instructions of the Board of Directors 
 the members admitted after the date of valuation or (in certain cases) within the 
 five years previous to such date shall receive the full benefits corresponding with 
 their contributions ; and such members are to form a new and distinct section in 
 respect of which separate accounts are to be kept. 
 
 The meritorious purpose of this provision is to safeguard the interests of new 
 members by preventing the absorption of the funds arising out of their contributions 
 by the claims of the older members in cases wherein the latter have failed to accumu- 
 late adequate reserves against their own liabilities. In connection with the Eighth 
 Valuation we were instructed to value the sections separately in all cases in which 
 the funds of lodges were divided, and this instruction has brought the system under 
 our special notice. The result has been to show to us that the system -is, practically, 
 of somewhat limited value, notwithstanding the admirable principle which it expresses. 
 The first effect of a reduction of benefits or increase of contributions is almost in- 
 variably loss of credit, and though th l 's may be of temporary duration only, its re- 
 flection is at once seen in the falling off of admissions. Every new section opened in 
 such circumstances is numerically weak, often extremely so, and for a lengthy period 
 there is little scope for the operation of average results in sickness and mortality 
 experiences. The advantage of mutual assurance between the new and old members 
 being entirely lost, the young members, thrown on the risk of sickness and death as 
 a class apart, are frequently in worse cases than they would have been had their 
 contributions been paid into the common fund even with the liability for an existing 
 deficiency hanging over it. It is obvious that unless there is a strong probability that 
 a steady influx of members will be maintained the "new members' section" must be 
 subject to the risk of serious fluctuations and that neither the accretion of a surplus 
 nor the growth of a deficiency in such a section can be regarded as establishing any- 
 thing with regard to the adequacy of the contributions of the members comprised in it. 
 
 Whilst it is of the first importance that the interests of young members should 
 be protected, we are impelled to the belief, on review of all the facts, that the 
 system of separate sections does not substantially achieve this purpose; as a general 
 plan, and excepting special cases, it appears to us to be the better course, whilst in- 
 sisting always that financial changes shall be confined to the members who are re- 
 sponsible for the existence of the deficiency, to retain the lodge as the unit of the 
 assurance organization, summarily closing those few branches which from incurable 
 unsoundness are as little likely to obtain new members as they would be unable to 
 properly safeguard their interests. 
 
 The concluding suggestion in regard to the retention of the lodge as a unit is 
 applicable to the whole society under the American system of a centralized govern- 
 ment, and I have adopted a similar course in advising societies which have fixed a 
 scale of adequate rates for new members while leaving the old on inadequate rates. 
 My advice has been to keep separate only the accumulation required to maintain 
 level and uniform the rates for the new members and to treat as one fund the con- 
 tributions for current mortality, and to permit all savings and gains to remain in 
 this fund for the advantage of the general membership regardless of the source of 
 the surplus. This course has been advised because it is right in view of the fact 
 that the new class must be instituted from the expense contributions of existing 
 members. Where this relation of mutual cooperation and unity is retained, the work 
 of securing new members can proceed as when the latter were obtained prior to 
 the adoption of an adequate rate scale, and the existing members are assured of all 
 advantages from "new blood" and from gains and savings incident to the intro- 
 duction of new lives. 
 
276 
 
 VALUATION STATISTICS. 
 
 Different methods have been adopted for keeping records for statistical purposes, 
 each of which has some special advantage. The suggestions hereafter made should be 
 considered in connection with existing methods and adapted to the practice of the 
 office to produce as little disturbance as possible for the required results. 
 
 One thing I would especially impress : Compile your statistics so that duplication 
 of work will not be necessary in obtaining data for the annual report and the valua- 
 tion. The usual method of arranging statistics for the annual report to Insurance 
 Departments will not supply the required data in proper form for a valuation. But 
 the statistics can be prepared to serve both purposes and s-ave double labor. 
 
 Every office should be equipped with statistical cards. The installation of the 
 card system is neither so laborious nor expensive as commonly supposed, if the work 
 is properly directed. Many offices now have statistical (as well as record) cards. 
 Many have not. The suggestions and sample sheets answer for either situation. 
 
 There are three methods of valuation allowed to Fraternal Beneficiary Societies 
 under Statutory enactment. In the "New York Conference Bill" they are designated, 
 "Net," "Tabular," and "Accumulation" methods of valuation. One form of statis- 
 tics is suitable for either method, namely : A sheet giving the amounts of protection 
 by ages and years of entry and form of certificate. The best arrangement for this 
 sheet is the following: 
 
 Form of Certificate. Amount of Protection. 
 
 Entry Years of Entry 
 
 Ages. 1913. 1912. 1911. 1910. etc. 
 
 18 1000 looo 1000 1000 etc. 
 
 19 looo looo looo 1000 etc. 
 
 20 1000 1000 1000 looo etc. 
 
 21 looo looo looo 1000 etc. 
 
 etc etc. etc. etc. etc. etc. 
 
 There must be a separate sheet for each form of certificate. That is, one for the 
 Whole Life, one for the Term, one for the Death and Old Age, or other form of 
 benefit. The valuation factors are different for the Ordinary Whole Life from those 
 for the Term to Age 60, or for the Death and Old Age. With many different forms 
 the work of .preparing statistics is considerable, unless there are statistical cards 
 properly arranged, when the labor is reduced to the minimum. 
 
 Opposite. the ages of entry in the columns for the years of entry are given the 
 amounts of protection outstanding as of December 31 for the year of valuation. 
 
 If the "Net" method of valuation is employed, the amounts of protection are 
 multiplied by the proper mid-year reserve values. The total of the products will 
 give the required "net reserve" accumulation. 
 
 If the "Tabular" method is used, the amounts of protection are multiplied by 
 the rates of contribution and the products entered upon a sheet of the form .above 
 indicated and then summed upward diagonally from left to right to obtain the con- 
 tributions by attained ages and then are multiplied by modified annuities to obtain 
 the "present value of future contributions." The amounts of protection then .are 
 summed diagonally upward from left to right to obtain the protection at 
 attained ages and the amounts are multiplied by modified single premiums to obtain 
 the "present value of the promised benefits." The difference between the present 
 values of benefits and contributions represents the required accumulation to be in 
 possession of the Society to make it technically solvent. 
 
 NOTE. "Tabular" is hardly description of a valuation of "promised benefits" and "Future Net Con- 
 tributions," but is quoted from another in the absence of a better term. 
 
277 
 
 For whole life contracts, life annuities must be used; and for term contracts (for 
 a designated period or to a given age), temporary annuities must be employed to 
 obtain the present value of future contributions. The annuities must be modified to 
 obtain "mid-year" values. 
 
 Similar single premiums must be empoyed and modified. 
 
 WJien monthly contribution rates are to be valued the annuities must be on the 
 monthly basis. 
 
 If the "Accumulation" method is adopted, then the amounts of protection are 
 multiplied by the proper accumulation factors to secure the required "credits" for 
 those members entitled to them. These "credits" correspond to the "net reserve" 
 obtained by the "Net" valuation method. In fact, the "Accumulation" method pro- 
 duces "net reserves," and these will be identical with the "net reserves" secured under 
 the "Net" valuation method when the contribution rates are deduced from the mor- 
 tality table used in the valuation, assuming the same rate of interest. The accumula- 
 tion factors are obtained by employing the u and k, or u .and c columns in the 
 identical manner of computing reserve values per $1,000, assuming the same rates 
 of mortality and interest. Or, preferably by employing the accumulation factors 
 n U x and n K x . 
 
 It is a simple sheet of statistics that is required for the valuation of certificates 
 with level rates of contribution graded to ages of entry. 
 
 It is not a simple matter to those first undertaking the work to 1 extract the re- 
 quired data from the records. 
 
 It is not easy to write down a plain statement of the best method of accom- 
 plishing the task where statistical cards are not properly kept, or not kept at all. 
 
 In the absence of cards there is always a membership register. The first sugges- 
 tion will be in reference to the transfer of the data from the register to the sheet. 
 
 In this connection it is well to caution against the use of statistics carried for- 
 ward from year to year by additions and deductions. The numerous changes incident 
 to transfers from one lodge to another, and due to lapses, reinstatements, deaths and 
 new entrants, make an accurate accounting very difficult. An accurate record is not 
 impossible, but it is assured only by everlasting diligence and intelligent checking. 
 Where there is such accounting the statistician will know how to secure the valuation 
 data without suggestion. 
 
 For transferring the data from the membership register the following form is 
 recommended : 
 
 Begin with the first page of the register for members in good standing December 
 31 st, and make a tally mark opposite the year of entry on the line for the certificate 
 amount and in the column for the year of entry. Make a tally for the next member 
 in good standing, and continue to the completion of the list. With the form properly 
 ruled, two clerks can make the tallies for several thousand in a day of eight hours. 
 Large sheets ruled for five squares to the inch (or to suit your case) can be pur- 
 chased at almost any book store. Where there -are a number of certificate amounts 
 it will require several sheets, but with proper arrangement and table space they can 
 be manipulated without much trouble. 
 
 If there are record cards instead of a register, the same process will be pursued 
 by beginning with the first card in the drawer and tallying successively as stated. 
 
 For example, suppose the first name (on register or card) is of a member who 
 entered at age 18, carried a certificate of $500, and joined in 1913. The call would 
 
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279 
 
 be "18," "500," "1913." The operator would follow the call and be ready to make 
 the tally in the right space on the call of "1913." If the entry age were 45 (or one 
 to be entered on a second or third or fourth sheet) the operator soon would be 
 able to locate it without delay. The sample form shows tallies as in practice actually 
 made. 
 
 When the sheets are completed, the tally marks are counted and the number 
 entered in the space (preferably in red ink) for the certificate amount. In the sample 
 form, for age of entry 18, and for the several certificate amounts and the year of entry 
 1913, there are 18 of the $500 certificates, 42 for $1,000, n for $1,500, and 6 for 
 $2,000, and a subtotal of 77 certificates and $79,500 of protection. In the same space 
 enter the amounts of protection (equal to the number multiplied by certificate amount). 
 By adding together the numbers of certificates for each age of entry and multiplying 
 the total by the certificates amount the product should equal the sum of amounts 
 for each age of entry, which is a check of the accuracy of the detailed multiplica- 
 tions. This gives the total number of certificates and amount of protection for each 
 age of entry, and is important information. The sums of the subtotals in the columns 
 for years of entry give the total number of certificates and amount of protection by 
 years of entry also important information. The grand totals for entry ages should 
 be the same as the grand totals for years of entry, and is the final check of the 
 completed sheet. These grand totals should give the total number of certificates 
 and amount of protection taken directly irom the register or record cards. The 
 names on the register, or the cards, could be counted to verify the total number 
 of certificates shown on the sheets. Or the comparison could be made with the 
 returns from the clerks of local lodges. The application of some effective check 
 upon the work should not be neglected. 
 
 If the office has statistical cards, they should be filed by: i, ages of entry; 2, years 
 of entry; 3, certificate forms; 4, certificate amounts. To obtain the data for the 
 valuation sheet it is only necessary to count the cards for the certificate amounts 
 and enter the number opposite the age of entry, on the line of the amount (one line 
 only for each certificate amount) and in the column for the year of entry. For 
 example: 18 for $500; 42 for $1,000; n for $1,500, and 6 for $2,000. The transcribing 
 can be done rapidly from statistical cards, and the checking is facilitated by the 
 count of the total cards for each age of entry and all of the years of entry for that age. 
 
 The subtotals of numbers of certificates and amounts of protection should be 
 transferred to two sheets for the advantage of compact form, as below. 
 
 NUMBER OF CERTIFICATES. 
 
 Entry Years of Entry 
 
 Ages. 1913. 1912. 1911. 1910. 1909. 1908. Totals. 
 
 18 77 7i 68 67 56 46 385 
 
 19 85 87 80 72 48 66 438 
 
 20 65 92 81 80 66 58 
 
 21 54 61 73 65 54 64 
 
 22 72 55 60 59 57 67 
 
 442 
 37i 
 370 
 
 Entry 
 Ages. 
 
 18.... 
 
 19.... 
 
 20. 
 
 21 
 
 22. . 
 
 AMOUNTS OF PROTECTION. 
 
 Years of Entry 
 
 1913. 1912. 1911. 1910. 1909. 1908. 
 
 $79,500 $76,000 $74,000 $70,500 $57,000 $46,000 
 
 92,500 94,5oo 86,500 76,000 50,500 68,000 
 
 88,000 81,000 91,000 85,000 55,ooo 71,000 
 
 79,000 66,000 72,000 74,000 48,000 57,000 
 
 69,000 72,000 61,000 65,000 64,000 44,000 
 
 Totals. 
 
 $403,000 
 468,000 
 471,000 
 396,000 
 375,ooo 
 
280 
 
 These sheets (with a carbon) can be made in a few minutes on an adding ma- 
 chine with eighteen -inch carriage, and have the advantage of totals for checking. 
 
 The sheet giving the number of certificates is of no use to the valuer. The sheets 
 giving the amounts of protection by ages and years of entry is the one required 
 by him. 
 
 Both sheets can be used by the office in preparing schedule VI of the annual 
 report for Insurance Departments. 
 
 The number of members (or the number of certificates, which will answer the 
 purpose of the report) at attained ages is obtained by diagonal upward summation 
 of the numbers in the first sheet, assuming the entry age in the current years as the 
 attained age December 31 of that year. (In fact, on the average, the members are 
 one-half year older on December 31 of the calendar year, and this fact is taken into 
 consideration in making a valuation or in a mortality investigation.) 
 
 Thus: There would be 77 members (certificates) at attained age 18. At attained 
 age 19 there would be the 85 entrants at age 19 in 1913 and 71 entrants at age 18 
 in 1912, making 156 as the number at attained age 19. Similarly for attained age 
 20 we have the sum of the 65 entrants at age 20 in 1913, and 87 entrants at 19 in 
 1912, and 68 entrants at 18 in 1911, making 220 as the number at attained age 20. 
 For attained age 21 the summation would be 54-|-92-|-So-f 67 equal 293. For age 22 
 the summation would be 72-}-6i-f 81+72+56 equal 343. The same process is continued 
 for other ages. The work is facilitated by diagonal ruling of the sheets. 
 
 The .amounts of protection at attained ages are obtained by the! identical pro- 
 cess explained for members. 
 
 The above procedure gives the number of certificates and amounts of protection 
 by attained ages for each form of certificate. The same for the different forms 
 (if there is more than one .form) of certificates must be combined into one column 
 for members and one for protection as the exhibit for schedule VI. 
 
 The totals of members and amounts thus obtained for attained ages should 
 correspond with the grand totals by ages and years of entry. 
 
 Schedule VI also calls for "the Mortuary Assessments received during the year." 
 This has been construed to mean the total amount of the contributions less the ex- 
 pense deductions. This is obtained by getting the net monthly contributions for 
 each form of certificate (gross rates less expense deductions) and using these as 
 multipliers for the protection at ages and years of entry. Thus : If the Whole 
 Life Net Rate per $1,000 at age 18 is 68 cents, and assuming that the sample sheet 
 shows the protection 1 for the Whole Life form, 68 would be multiplied by 79.5, 76, 
 74, 70.5, 57, and 46, and the products entered on a sheet for contributions by ages 
 and years of entry, thus: 
 
 AMOUNT OF ONE ASSESSMENT. 
 
 Entry Years of Entry 
 
 Ages. 1913. 1912. 1911. 1910. 1909. 1908. Totals. 
 
 18 54.06 51.68 50.32 47.94 38.76 31.28 274.04 
 
 etc etc. etc. etc. etc. etc. etc. etc. 
 
 The total of $274.04 will be given if a cross tabulating adding machine is used, 
 and its correctness is checked by the product of the total protection by the contribu- 
 tion rate per $1,000.00, or 403X68 equal 274.04. 
 
 The amounts of protection for other ages and years of entry are multiplied by 
 the corresponding net rate for the respective ages of entry .and the products entered 
 as for age 18. 
 
281 
 
 When the sheet has been completed a diagonal summation from left to right will 
 give the amount of one assessment at attained ages, which, multiplied by 12, gives 
 the amount of 12 assessments on the protection in force December 31. Similar sheets 
 must be made for each form of certificate and all combined for the total contributions. 
 
 The amounts thus finally obtained must be modified to secure a total corresponding 
 with the actual cash received from the net contributions during the year. This modi- 
 fication is made by dividing the total, as above obtained, into the actual total receipts, 
 and use the quotient as a multiplier for the amounts at each attained age, which are 
 obtained from the diagonal summation. 
 
 If there is a considerable difference between the cash receipts from net con- 
 tributions and the total of 12 .assessments obtained from the combined sheets, some 
 error has probably been made and should be found. 
 
 Obviously 12 assessments would not be received on the certificates written in 
 the current year (1913 in the example), because >the members are admitted in every 
 month of the year. The average number of assessments received from the 1913 en- 
 trants would not exceed 6 .and might be 5. The foregoing method, therefore, would 
 overstate the contributions received in the current year, but this excess, ordinarily, 
 is offset by the amounts received from members who lapse and die during the year, 
 which receipts are not shown in this exhibit. Under normal conditions the method 
 given will approximate the actual facts. As stated, if the difference between the 
 actual receipts .and the estimated under this process is very large, then it may be 
 necessary to take the average number of assessments received in the current year, 
 and also find approximately the receipts in the year from those who paid one or 
 more assessments before, death or lapse, in order to furnish a satisfactory column 
 for schedule VI of the annual report. This seldom occurs. 
 
 Many valuations were made in 1913 for Fraternal Beneficiary Societies and dif- 
 ferent methods were adopted to obtain the valuation data. The statistician of one 
 society adopted the following form : 
 
 etc. 
 etc. 
 etc. 
 etc. 
 etc. 
 
 
 NUMBER OF MEMBERS. 
 
 Years of 
 Entry. 
 
 IQOQ 
 
 Attained Ages 
 18. 19. 20. 21. 
 10 
 
 IQIO. . 
 
 ... 28 39 
 
 IQTT 
 
 99 134 171 
 
 IQI2. . 
 
 03 167 l68 IQ3 
 
 Totals 93 266 330 413 
 
 In this form the ages arc at the top instead of at the side of the sheet, and the 
 footings of columns give the total number at attained ages. The number :at ages of 
 entry would be obtained by diagonal summation from left to right. The above shows 
 the combined form for members. To obtain the same for protection, first it would 
 be necessary to get the details for certificate amounts. 
 
 Another form is to have the ages at the side and the years at the top of sheet, 
 but to begin with the first year of operation for the first column at left, and the 
 current year for the last column to the right. In such form the diagonal summation 
 must be upward from right to left to obtain attained ages. The work under this 
 method is awkward to most operators. 
 
 The means to the end are immaterial so far as results are concerned. However, 
 they should be chosen to suit office conditions, and the foregoing details are given 
 in the way of suggestions for the accomplishment of results. 
 
282 
 
 When the data are in proper form the cost of valuation should be much reduced. 
 Indeed, the secretaries should agree upon a uniform blank for reporting statistics, 
 and should secure a scale of fees from valuers on the ordinary forms of certificates. 
 
 As the situation now is, the actuary has great difficulty in making an advance 
 estimate of his charge for valuation. In the first place, it may be necessary to com- 
 pute special valuation factors. In the second place, he may have to rearrange or 
 combine the data before they can be utilized and very often must have errors cor- 
 rected which have been committed through lack of proper checking. 
 
 In passing, it may be remarked that the first valuation under Section 23b of the 
 New York Conference Bill will always involve more work and a larger charge than 
 subsequent valuations. This is also true of valuations under Section 23 and 233 
 where valuation factors must be computed for special forms of certificates. These 
 factors serve for subsequent valuations. 
 
 If the "Tabular" method of valuation is adopted, the society could reduce the fee 
 for valuation by making the multiplications of the net contribution rates by the 
 amounts of protection for ages and years of entry. Or the office could save the time 
 and labor of this work by having the results furnished by the valuer it being re- 
 membered, as hereinbefore shown, that these data can be used not only for the 
 valuation, but also in the preparation of schedule VI of the annual report. 
 
 At the next meeting of the National Fraternal Congress of America the secre- 
 taries' section could spend some time profitably in consideration of these matters. 
 
 The forms suggested for the compilation of the number of members (or certi- 
 ficates) in good standing and the amount of protection in force as of December 31, 
 are suitable for the compilation of statistics to show the number of deaths and lapses 
 during the current year by ages and years of entry and by attained ages. If these 
 statistics are prepared, then a close estimate can be made of the amount contributed 
 during the year by those who have lapsed and died by assuming an average of six 
 assessments for entrants in all years excepting the current year, and for that year 
 assuming three or four assessments, according to whether or not the first assessment 
 is paid at date of entry, or at the end of the month, or in the month after admission. 
 
 In cases where the amount of the certificate is scaled for a number of years, or 
 where the protection increases from first year of entry during Life Expectancy, 
 or at age 70, or until a designated amount is paid in assessments, the statistics are 
 compiled as of the face of the certificate in the manner described. The valuer will 
 make modifications by proper deductions for actual insurance in force at date of 
 valuation. 
 
 Societies having natural premium rates (contributions increasing annually) can 
 secure amount of contributions by multiplying the protection at attained ages by 
 twelve times the rates of contribution for respective attained ages and deducting for 
 the current year as indicated for the average number of assessments collected in 
 that year. 
 
 The management should be informed each year concerning the Mortality ex- 
 perience of the Society. There is very little extra work involved over that of mak- 
 ing a valuation, for the valuer to report upon the mortality experience. The addi- 
 tional data are the amounts of claims by attained ages. These can be obtained by 
 compiling the statistics for certificate amounts at ages and years of entry on the 
 claim$ incurred during the year and then summing diagonally for attained ages, as 
 explained for amounts of protection in force. In order to closely approximate the 
 amounts of protection exposed to risk during the year there should be given the 
 protection at attained ages on the previous December 31, that the mean of the pro- 
 tection at the beginning and end of the current year could be ascertained, which 
 
 
283 
 
 added to the claims incurred at attained ages, will give the protection exposed at 
 attained ages during the year. From .these data the loss rates per $1,000 are obtained. 
 If death rates pen 1,000 are desired, then the number of members (or certificates) 
 should be treated instead of amounts of protection. 
 
 If it were concluded (and it is desirable) to investigate the past mortality ex- 
 perience for comparison with the current year, it would suffice (for approximate and 
 practical results) to furnish the amounts of protection and the amounts of claims 
 incurred, as reported in schedule VI, for as many years as the report had been made. 
 
 I will make some examples of valuation by use of the foregoing sample exhibit 
 of protection by ages and years of entry. 
 
 The first illustrates the net reserve valuation. I have taken the "terminal" instead 
 of the "mid-year" valaes for the reason that they are found in the Appendix to this 
 book for ordinary whole life protection, which is assumed in this case. For ages 18, 
 19 and 20 I have used the reserve values for age 20. Assuming that the insurance 
 was written and in force January ist of each year, at the end of 1913 there should 
 be, and there is supposed to be, the terminal reserve at the end of one year for 1913 
 issues; at the end of three years for the 1912 issues; at the end of four years for 1911 
 issues; ... at the end of six years for the 1908 issues. Therefore, we would 
 multiply the protection issued in 1913 by the terminal reserves at the end of one 
 year for ages 20, 21 and 22, being (see Table of Reserves) $.00578, $.00604, $.00632 
 (or $5.78, $6.04 and $6.32 per $1,000 protection). The protection issued in 1912 would 
 be multiplied by the reserve values at the end of the second year; and similarly for 
 other years of issue. 
 
 The following table exhibits the protection and net reserve values. The total 
 protection of $2,113,000 requires $43,566.56 in reserve accumulation as supplemental 
 to the present value of future contributions to make it equal to the present value of 
 promised benefits. 
 
 PROTECTION BY AGES AND YEARS OF ENTRY. 
 
 
 Years of Entry. 
 
 Entry 
 
 
 Ages. 
 
 
 
 
 
 
 
 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1098. 
 
 Totals. 
 
 18 
 
 79,500 
 
 76,000 
 
 74,000 
 
 70,500 
 
 57,000 
 
 46,000 
 
 403,000 
 
 19 
 
 92,500 
 
 94,500 
 
 86,500 
 
 76,000 
 
 50,500 
 
 68,000 
 
 468,000 
 
 20 
 
 88,000 
 
 81,000 
 
 91,000 
 
 85,000 
 
 55,000 
 
 71,000 
 
 471,000 
 
 21 
 
 79,000 
 
 66,000 
 
 72,000 
 
 74,000 
 
 48,000 
 
 57,000 
 
 396,000 
 
 22 
 
 69,000 
 
 72,000 
 
 61,000 
 
 65,000 
 
 64,000 
 
 44,000 
 
 375,000 
 
 Totals . . 
 
 408,000 
 
 389,500 
 
 384,500 
 
 370,500 
 
 274,500 
 
 286,000 
 
 2,113,000 
 
 TERMINAL RESERVE VALUES. 
 
 Entry 
 
 Ages. 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 Totals. 
 
 18 
 19 
 20 
 21 
 22 
 
 Totals . . 
 
 459.51 
 534.65 
 508.64 
 477.16 
 436.08 
 
 896.04 
 1114.16 
 954.99 
 813.12 
 928.08 
 
 1334.22 
 1559.60 
 1640.73 
 1357.20 
 1202.31 
 
 1729.37 
 
 1S64.28 
 2085.05 
 1896.62 
 1742.00 
 
 1782.39 
 1579.14 
 1719.85 
 1568.64 
 2185.60 
 
 1760.42 
 2602.36 
 2717.17 
 2278.86 
 1838.32 
 
 7961.95 
 9254.19 
 9626.43 
 8391.60 
 8332.39 
 
 2416.04 
 
 4706.39 
 
 7094.06 
 
 9317.32 
 
 8835.62 
 
 11197.13 
 
 43566.56 
 
284 
 
 In the ordinary valuation of certificates issued throughout the year, one-half a 
 year duration is assumed, and "mid-year" reserve values must be employed. I have 
 fully explained the method of obtaining "mid-year," or "mean" reserve values. (See 
 "Definitions.") 
 
 The tabular reserve values assume a net contribution rate deduced from the Mor- 
 tality Table from which the Reserve Values are derived. 
 
 The foregoing is designated a "net reserve valuation," and the total of $43,566.56 
 would be reported as the net reserve liability. For technical solvency the society 
 or company should have net assets not less than the reserve liability. 
 
 Under the "legal reserve," or net valuation laws for life companies, the writing 
 of new business would be suspended should the net available assets be shown on 
 valuation to be less than the reserve value of the outstanding policies. And should 
 the company fail to make good the impairment within a given time it would be 
 barred from doing business in foreign States and placed in the hands of a receiver 
 in the home State. 
 
 The valuation laws for fraternal beneficiary societies are less stringent. The 
 most recent enactments have been given (in substance) under the title of "The New 
 York Conference Bill," pages 66-72. 
 
 The second example will exhibit the results of a valuation of the promised ben- 
 efits and future net contributions as in practice actually collected, on the assumption 
 of whole life protection. Instead, however, of taking the tabular net premiums, the 
 contribution rates will be 
 
 For age 18 annually $7.20 per $1,000. 
 For age 19 annually $7.80 per $1,000. 
 For age 20 annually $8.00 per $1,000. 
 For age 21 annually $8.20 per $1,000. 
 For age 22 annually $8.40 per $1,000. 
 
 The protection for each age and year of entry is multiplied by the rate for the 
 age of entry. That is, 7.20 is the multiplier for 79.5 ; for 76.0 ; for 74.0 ; for 70.5 ; for 
 57.0; and for 46.0. The results are as follows: 
 
 PROTECTION MULTIPLIED BY CONTRIBUTIONS. 
 
 Entry 
 
 Ag.es. 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 Totals. 
 
 18 
 19 
 20 
 21 
 22 
 
 Totals . . 
 
 572.40 
 721.50 
 704.00 
 647.80 
 579.60 
 
 547.20 
 737.10 
 648.00 
 541.20 
 604.80 
 
 532.80 
 674.70 
 728.00 
 590.40 
 512.40 
 
 507.60 
 592.80 
 680.00 
 606.80 
 546.00 
 
 410.40 
 393.90 
 440.00 
 393.60 
 537.60 
 
 331.20 
 530.40 
 568.00 
 467.40 
 369.60 
 
 2901.60 
 3650.40 
 3768.00 
 3247.20 
 3150.00 
 
 3225.30 
 
 3078.30 
 
 3038.30 
 
 2933.20 
 
 2175.50 
 
 2266.60 
 
 16717.20 
 
 Summing diagonally the protection and the products of protection by contributions, 
 the following columns of protection and amount of one year's contributions are 
 obtained for attained ages. Then multiplying by the single premiums for whole 
 life insurances and annuities the present values of the protection and future contri- 
 butions are obtained. 
 
 As hereinbefore explained, for a valuation as of December 31, for certificates 
 written in every month of the year of issue, the single premiums for insurances and 
 annuities must be modified to give "mean" or mid-year" values. 
 
 
285 
 
 In the following it is assumed that the certificates were issued January I of each 
 year, and hence terminal values are given by using the whole life single premiums and 
 annuities taken from the Table in the Appendix. $211.86 is the multpilier for the 
 protection at attained ages 18, 19 and 20; $216.42 at 21 ; . . . $247.75 at attained 
 age 27. The whole life annuities used were 20.49 for attained ages 18, 19 and 20; 
 ^0.37 for 21 ; . . . 19.56 for 27. The results follow : 
 
 Attained 
 Age. 
 
 Protection. 
 
 Value of 
 Protection. 
 
 One Year's 
 Contributions. 
 
 Value of 
 Contribution. 
 
 Required 
 Accumulation. 
 
 18 
 
 79500 
 
 16842.87 
 
 572.40 
 
 11728.48 
 
 5114.39 
 
 19 
 
 168500 
 
 35698.41 
 
 1268.70 
 
 25995.66 
 
 9702.75 
 
 20 
 
 256500 
 
 54342.09 
 
 1973.90 
 
 40445.21 
 
 13896.88 
 
 21 
 
 317000 
 
 68605.14 
 
 2478.10 
 
 50478.90 
 
 18126.24 
 
 22 
 
 359000 
 
 79396.44 
 
 2852.00 
 
 57753.00 
 
 21643.44 
 
 23 
 
 325500 
 
 73589.04 
 
 2600.30 
 
 52318.04 
 
 21271.00 
 
 24 
 
 258000 
 
 59647.02 
 
 2089.60 
 
 41771.10 
 
 17875.92 
 
 25 
 
 184000 
 
 43517.84 
 
 1507.60 
 
 29925.86 
 
 13591.98 
 
 26 
 
 121000 
 
 29285.63 
 
 1005.00 
 
 19808.55 
 
 9477.08 
 
 27 
 
 44000 
 
 10901.00 
 
 369.60 
 
 7229.38 
 
 3671.62 
 
 
 2113000 
 
 471825.48 
 
 16717.20 
 
 337454.18 
 
 134371.30 
 
 The present value of $2,113,000 of promised death benefits is found to be $471,- 
 825.48. The present value of the future contributions expected to be received on the 
 $2,113,000 of protection is $337,454.18. The required accumulation to balance the 
 present values is $134,371.30. The latter is the reserve liability, and the society 
 should have in possession net assets equal to or greater than this liability to be in a 
 technically solvent position. 
 
 Had I taken the tabular rates of contribution, namely : 
 
 For age 18 annually $10.34 per $1,000. 
 For age 19 annually $10.34 per $1,000. 
 For age 20 annually $10.34 per $1,000. 
 For age 21 annually $10.62 per $1,000. 
 For age 22 annually $10.92 per $1,000. 
 
 the present value of the future contributions would have been increased and the 
 required reserve accumulation decreased to $43,566.56, being identical with the 
 amount obtained by the net reserve valuation. The curious can readily test the 
 statement by multiplying the protection by the above rates to obtain the amount of 
 one year's contribution, summing diagonally for attained ages and then multiplying by 
 the whole life annuities as before. The present value of the future expected net con- 
 tributions will be increased to $428,258.92, which subtracted from the present value 
 of the protection, $471,825.48, will give the required accumulation of $43,566.56. 
 
 It will be noticed that the change in contribution rates does not affect the value 
 of the promised benefits. Neither the method of making contributions nor their 
 amount have anything to do with the value of the protection. If learned this would 
 l)e a valuable lesson to many officials. 
 
 Reference is again made to the fact that the two preceding methods are known 
 as "Prospective Valuations." 
 
 The past is not considered. 
 
 The present position of the Society or company is determined, and then it is 
 undertaken to forecast the future and bring expected future claims and future con- 
 
286 
 
 tributions to present money worth, and, by assuming these present values a part 
 of the present position, to show whether or not the Society or company is technically 
 solvent. 
 
 The Prospective Valuation is based upon estimates and assumptions. 
 
 This declaration applies equally to a "Net Reserve Valuation" and to a valuation 
 of "Promised Benefits" and of "Future Net Contributions." 
 
 The third example illustrates a valuation on the "Accumulation Basis." 
 
 Instead of using the u and k columns as recommended by Mr. Anderson in his 
 book explanatory of this method of valuation I find it more convenient and expedi- 
 tious to apply directly the D U X and D K X values. 
 
 In the chapter on "Definitions" I have given the formulas for the u and k col- 
 umns and for the n U x and n K x accumulation values. In previous chapters I have 
 also given the formulas by which these columns and values may be determined. 
 
 A valuation on the "Accumulation Basis" is a "Retrospective Valuation." It is 
 looking backward and reviewing past operation and making an exhibit of the present 
 position as developed from past operation. 
 
 Were we to assume that the past mortality experience and past interest earnings 
 and past contributions rates were, for example, according to the National Fraternal 
 Congress Table of Mortality and 4 per cent interest, then a "Retrospective Valuation" 
 would bring out an identical reserve liability as obtained from the "Net Reserve" and 
 "Tubular" Valuations. 
 
 However, it will be seen from the following exhibit that the reserve liability will 
 not be the same as produced by the "Tabular" method with the same assumptions 
 of mortality and interest and contribution fates, where the latter arc not the contri- 
 bution rates derived from the mortality table and interest rate employed in the 
 valuation. 
 
 That is to say, were we to value the annual rates $10.34, $10.62 and $10.92 for 
 entry ages 18, 19, 20, 21 and 22, the reserve liability by the "Accumulation" method 
 and the "Tabular" method would be identical with that of the "Net Reserve" method. 
 
 When we value the annual rates $7.20, 7.80, $8.00, $8.20 and $8.40, the reserve 
 liability under the "Accumulation" method differs from that of the "Tabular" method, 
 and both differ from that of the "Net Reserve" method. 
 
 Technically, the "Net Reserve" method ignores the "contributions as in practice 
 actually collected." 
 
 Net Reserve Values are prepared in advance of valuation, and these values are 
 computed on the assumption of contribution rates deduced from the standard table 
 of mortality and designated interest rate. 
 
 These values are then arbitrarily fixed by law as the measure of technical solvency, 
 and hence are known as "legal reserves." 
 
 Therefore, the results of a "Legal Reserve," or "Net Reserve" Valuation are 
 obtained from the determination of the reserve liability, and whether or not the 
 net assets in hand are equal in amount to such reserve liability. 
 
 If the requisite net assets are in possession of the society or company the valua- 
 tion requirements are met and no questions are asked concerning the contribution 
 rates "as in practice actually collected," nor concerning the mortality and interest 
 assumptions employed in the computation of rates of contribution. However, all of 
 these facts are disclosed in the "Gain and Loss Exhibit" required of life companies. 
 
 While absolute liberty is left to th e Society or company in respect of premiums 
 or contributions, this fact should never be forgotten: The Required Reserve Accu- 
 mulation ivill not be in hand, unless the Contribution Rates, as in practice actually 
 
287 
 
 collected, have been computed upon the same (or more favorable} Mortality and 
 Interest Assumptions used in the Calculation of the Net Reserve lvalues prescribed 
 as Legal Reserves. 
 
 The values of the n U x and n K x , on the basis of the National Fraternal Congress 
 Table of Mortality and 4 per cent interest, are not in print, and so far as I am 
 informed, the only manuscript tables are in my office.* These have been computed 
 specially for "retrospective valuations," particularly under provisions of Section 23!). 
 
 There is a separate value of U and K for each age of entry and year of duration 
 (or year of issue). The following are the products of the contribution rates by 
 n U x and then by the protection, and the products of n K x by the protection. 
 
 The results in the first instance exhibit the accumulated past contributions as 
 credits to those carrying the protection in force at date of valuation. And in the 
 second instance, the accumulated past assumed claims chargeable against those carry- 
 ing the protection at date of valuation. 
 
 As with the other valuations, I do not use modified factors for "mid-year" values 
 in obtaining the following results : 
 
 ACCUMULATED VALUES OF PAST CONTRIBUTIONS. 
 
 
 Years of Entry 
 
 Entry 
 
 
 Ages. 
 
 
 
 
 
 
 
 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 Totals. 
 
 18 
 
 598.16 
 
 1169.91 
 
 1747.58 
 
 2271.00 
 
 2348.72 
 
 2327.67 
 
 10463.04 
 
 19 
 
 753.97 
 
 1575.92 
 
 2213.02 
 
 2652 . 19 
 
 2254.29 
 
 3727.65 
 
 13177.04 
 
 20 
 
 735.68 
 
 1385.42 
 
 2387.84 
 
 3042.32 
 
 2518.12 
 
 3991.90 
 
 14061.28 
 
 21 
 
 676.95 
 
 1157.09 
 
 1936.51 
 
 2715.43 
 
 2252.57 
 
 3285.35 
 
 12023.90 
 
 22 
 
 605.68 
 
 1293.06 
 
 1681.18 
 
 2443.35 
 
 3077.22 
 
 2598.29 
 
 11698.78 
 
 Totals . . 
 
 3370.44 
 
 6581.40 
 
 9966.13 
 
 13124.29 
 
 12450.92 
 
 15930.86 
 
 61424.04 
 
 ACCUMULATED VALUES OF PAST CLAIMS. 
 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 
 18 
 19 
 20 
 21 
 22 
 
 Totals . . 
 
 399.89 
 465.28 
 442.64 
 399.74 
 351.90 
 
 783.56 
 974.30 
 835.11 
 685.74 
 753.12 
 
 1175.12 
 1373.62 
 1445.08 
 1151.28 
 983.32 
 
 1531.97 
 1651.48 
 1847.05 
 1620.60 
 1435.20 
 
 1590.30 
 1408.95 
 1534.50 
 1349.76 
 1815.68 
 
 1578.26 
 2333.08 
 2436.01 
 1977.33 
 1540.44 
 
 7059.10 
 
 8206.71 
 8540.39 
 7184.45 
 6879.66 
 
 2059.45 
 
 4031.83 
 
 6128.42 
 
 8086.30 
 
 7699.19 
 
 9865.12 
 
 37870.31 
 
 The total credits in the way of accumulated past contributions is $61,424.04. 
 
 The total charges in the way of accumulated past claims is $37.870.31. 
 
 The net fund in hand to equal the net reserve assumed to b e accumulated, $23,- 
 55373, is the difference between the totals of credits and charges. 
 
 As a matter of fact, the actual net fund in hand at date of valuation may be 
 (and usually is) less or larger than this difference between the credits and charges. 
 
 i. The past mortality may have been more or less favorable than assumed. 
 
 *(Note. Sets of the n U x and n K x values can be purchased at a reasonable price.) 
 
288 
 
 2. The interest earnings may have been larger or less than assumed. 
 
 3. There may have been (and usually are) forfeitures of accumulation by with- 
 drawing members. 
 
 4. There may have been (such things have been known to occur) transfers from 
 unusued expense funds to the surplus or reserve accumulation. 
 
 5. There may have been (and under past society conditions almost invariably have 
 been) appropriations of contribution excess to relieve members from the full payment 
 of the cost of their protection. 
 
 6. There may have been losses from bad investments, or from other causes. 
 
 (a) If past mortality were more favorable than assumed, the actual to be expected 
 accumulation should be increased. The reverse, if less favorable. 
 
 (b) If past interest earning were larger than assumed the actual to be expected 
 accumulation should be increased. The reverse, if the earning were less. 
 
 (c) If there were forfeiture of accumulation by lapse, the accumulation for the 
 persistent survivors should be increased. 
 
 (d) If there were transfer from expense fund to accumulation the latter should 
 be larger than expected. 
 
 (e) If there were appropriation of excess of contributions over insurance cost 
 for the use of members who paid less than cost, there would be a decrease in the 
 actual accumulation. 
 
 (f) If there were loss from bad investments, or otherwise, the actual accumulation 
 would be decreased thereby. 
 
 For making a Retrospective Valuation, Mr. Ekern, the Insurance Commissioner 
 of Wisconsin (the author of Section 23b), and Mr. Anderson, the Actuary, have rec- 
 ommended modified k columns for use in fixing the claims and establishing the 
 charges. These modifications are worked out by taking percentages of the q x col- 
 umns derived from some standard mortality table. They also recommended an 
 interest rate in computing u which approximates the interest rate actually earned. 
 
 These recommendations, if followed, would produce a close agreement between 
 the actual accumuation and that obtained by valuation, if there were no other account- 
 ing than for actual death-rate and interest rate. 
 
 Speaking from a large experience in these matters, I assert that items 3 and 5 
 (c and e), as stated above, exert more influence (in the majority of instances 5 (e) 
 alone is more potential) than I (a) and 2 (b) combined. 
 
 The gains from forfeitures by lapse (c) are never very large, nor is the loss 
 from bad investments or otherwise (f) very great, but the appropriations of excess 
 contributions to make good deficiencies in contribution rates (e) reduce to a con- 
 siderable degree the percentage of the actual to the expected accumulation. 
 
 Hence, if the recommendations of Mr. Anderson were followed, always there 
 would be necessary an adjustment after valuation to bring actual and valuation accu- 
 mulation into agreement. 
 
 In these circumstances, my practice is to make the valuation by use of the 
 accumulation factors D U X and n K x , based on some standard mortality table and 
 rate of interest that most nearly approximate the actual mortality experienced and 
 interest earned. 
 
 The accumulation obtained from the valuation will not be identical with the 
 actual accumulation (and neither are they by use of modified k columns). The two 
 are brought into agreement by arbitrary adjustment; or I simply report the facts 
 (my invariable course to the Society), exhibiting a surplus or deficiency as the case 
 may be. 
 
289 
 
 And why not? 
 
 In the valuation of any life company in existence has it ever been known that 
 the reserve accumulation shown in the valuation was identical with the actual net 
 accumulation ? 
 
 It is practically impossible under any method of valuation to bring out results 
 in perfect accord with the facts. 
 
 Therefore, I hold that the direct application of the accumulation factors, n ll x 
 and n K x , is preferable in practice to the use of modified valuation columns, for cer- 
 tainly it is more simple and expeditious and the difference between actual and ex- 
 pected accumulation for adjustment is not materially larger than when the Anderson 
 method is employed. 
 
 I intend no criticism nor reflection upon Mr. Anderson's method, I merely ex- 
 press a preference for my method, and state the reasons. 
 
 Let us come back to the exhibit for the Retrospective Valuation, which has been 
 made by the employment of accumulation factors derived from the National Fra- 
 ternal Congress Table of Mortality and 4 per cent interest the same assumptions 
 as in the other two valuations. 
 
 It is shown that the expected accumulation is $23,553.73. 
 
 If the actual accumulation is larger, the surplus arises out of gains and savings 
 from sources heretofore indicated. 
 
 If the actual accumulation is smaller, the deficiency has been created by one or 
 all of the causes hertofore enumerated. 
 
 In either case the results of the Retrospective Valuation clearly indicates the 
 course of past operation, and with its detailed information is singulary suited as a 
 guide for making adjustments in establishing equitable relations between the members, 
 and equally so for making readjustments of contribution rates to assure future 
 solvency. 
 
 Without the results of a Retrospective Valuation, it is difficult, if not almost 
 impossible, to make a satisfactory apportionment of accumulated funds amongst mem- 
 bers contributing at rates inadequate for the promised benefits. 
 
 When a Society has two classes of members with one contributing at rates as- 
 sumed to be adequate to provide for the benefits promised, and the other contributing 
 at rates admitted to be inadequate, or where such separation is contemplated, the inad- 
 equate rate certificates should be valued by the retrospective method. This suggestion 
 is independent of the acceptance of the provisions of Section 23b in respect of appor- 
 tioning credits and charges with a view to collecting the excess of charges in the 
 way of increased assessments. 
 
 In the chapter on "Definitions," where I review Valuations, it is stated that a 
 Prospective Valuation becomes a farce and of no effect when there is a great differ- 
 ence between the values of promised benefits and future contributions, and therefore, 
 I have asserted and now repeat the assertion after further deliberation that the 
 Retrospective Valuation, in such cases, alone will be educational, or can be turned to 
 practival advantage. 
 
 For Fraternal Beneficiary Societies the Retrospective Valuation generally is to 
 be preferred to the Prospective Valuation. 
 
 The Net Reserve method of valuation is applicable entirely to very few fraternal 
 societies, because few have all members on adequate rates. Further than this, the 
 results of a Net Reserve Valuation give less information than those of other methods, 
 and are not as effective for educational purposes. And still, further, because of the 
 varied and exceptional contract conditions of fraternal society certificates, the ordi- 
 nary reserves to be had in book form are not applicable, and hence special tables 
 
290 
 
 must be prepared for individual societies, which is a much more expensive work than 
 preparing single premiums for insurances and annuities for a "Tabular" valuation. 
 
 For a valuation on the "Accumulation Basis" the n U x and n K x factors can be 
 employed for almost any form of certificate providing for a death benefit only, or 
 death and old age benefit. 
 
 Of course, in any case, values must be derived from combined death and dis- 
 ability tables where combined death and disability benefits are promised. 
 
 To be more explicit concerning the different results obtained by the different 
 methods of valuation specific comparisons will be made. 
 
 First, the "Net Reserve" Valuation, assuming tabular premiums and death rate 
 and 4 per cent interest, shows a required accumulation of $43,566.56 on the $2,113,000 
 whole life protection outstanding at the date of valuation, for entry ages 18, 19, 20, 
 21 and 22, and issued in the years 1913, 1912, 1911, 1910, 1909 and 1908 as of January 
 i of each year, and valued as of December 31, 1913. 
 
 The meaning is, that tabular reserves per $1,000, previously prepared, were em- 
 ployed as multipliers to obtain corresponding reserves on the thousands of protection 
 in force; and according to arbitrary assumptions of mortality and interest the total 
 required accumulation is $43,566.56, and that if this amount, above all accrued liabil- 
 ities and debts, is not in hand the Society is, to the degree of deficiency, technically 
 insolvent. 
 
 The "Net Reserve" is a Prospective Valuation in effect, because the accumulation 
 of $43,566.56 is required to supplement future contributions in order to provide for 
 the promised benefits under the $2,113,000 of protection. 
 
 Second. The (so-called) "Tabular" Valuation assumes tabular death rate and 4 
 per cent interest for the future, but assumes contributions less than the tabular, and 
 shows a required accumulation of $134,371.30 on the $2,113,000 of whole life protection. 
 
 The meaning is, that the present money worth of $2,113,000 of whole life protec- 
 tionthe present value of the Benefit Side of the insurance contracts is $471,825.48, 
 while the present money worth of all future contributions expected to be received 
 the present value of the Payment Side of the insurance contracts is $337,454.18; 
 and if the Society has not the difference, $134,371.30, between these present values, 
 then it, to the degree of the deficiency, is technically insolvent. 
 
 In other words, it is arbitrarily expected that the death rate and interest rate 
 for the future will be on the average identical with the assumed in the valuation, 
 and that the present contribution rates will continue. Under these assumptions there 
 should be in hand, at date of valuation, $134,371.30 to supplement future contributions 
 in order to provide for the promised benefits under the $2,113,000 of Whole Life pro- 
 tection. 
 
 Third. The valuation on the "Accumulation Basis" assumes tabular death rate and 
 4 per cent interest in past operation, but assumes contributions in the past less than 
 tabular premiums, and shows that $23,553.73 should have been accumulated on $2,113,- 
 ooo during past operation to the date of the valuation. 
 
 The meaning is, that if the past mortality had been according to the National 
 Fraternal Congress Table, and had 4 per cent been earned on invested funds, and the 
 annual net contributions as stated, then the Society should have in hand $23,553.73. 
 
 From the meaning of the three valuations let us determine the value of the 
 information derived from each and it is to be supposed that the prime object of a 
 valuation is the information to be derived therefrom for some specific purpose on the 
 part of Insurance Commissioners as well as on part of officers and members of 
 societies and companies. 
 
291 
 
 The Net Reserve Valuation gives the least information for practical purposes. 
 The usual method of making the valuation is not that given in the foregoing illustra- 
 tion, but reserve values are entered upon cards and the amounts listed on adding 
 machines, and the final total is reported as the reserve liability. The information given 
 by a Net Reserve Valuation is little more than a mere announcement of an assumed 
 accumulation requirement for expected conditions arbitrarily anticipated. 
 
 There is more of material information in the results obtained from the (so-called) 
 "Tabular" Valuation. It exhibits the present worth of the insurance liability and the 
 present worth of the contribution assets, and thus is more readily understood by the 
 average man. It is educational in effect, because anyone can be made to see that 
 by increasing the contribution rate there is a corresponding increase in the present 
 worth of future contributions, because a higher rate must have a greater value. If 
 the assumptions of future death rate and interest rate are conservative, the results of 
 the "Tabular" valuation may be relied upon as a safe index for future operation, 
 and a sure monitor against inadequate rates. The usual form that exhibits the value 
 of protection and contributions by attained ages is more or less misleading. To in- 
 stance : For attained age 23 there is shown the amount of $325,500 of protection, being 
 the sum total of $72,000 issued at 22 in 1912; $72,000 at 21 in 1911; $85,000 at 20 in 
 1910; $50,500 at 19 in 1909; and $46,000 at 18 in 1908. Similarly, the present value of 
 $325,500 of insurance is the total of present values of these amounts issued at different 
 ages and in different years. Likewise, the present value of contributions at attained 
 age 23 is the total of the present value of contributions at different contribution rates. 
 The exhibit of this latter condition is misleading, because for the same attained age 
 some members might be contributing at rates that create deficiencies while others 
 might be contributing at rates yielding a surplus over current insurance cost at the 
 attained age. Notwithstanding this all are thrown together at the one attained 
 age, and their combined contributions valued by taking the annuity at that age for 
 the common multiplier. 
 
 The valuation on the "Accumulation Basis" accumulates the past actual contribu- 
 tions made by the members. True, this accumulation is on the assumption of mor- 
 tality and interest only approximating the actual, nevertheless it tells the tale of past 
 operation in a way that can be generally understood and appreciated. Then it accu- 
 mulates the past claims to the date of the valuation which are justly and equitably an 
 offset to the accumulated contributions. This is readily understood upon the mere 
 suggestion that past operation consists in collecting money in the way of contributions 
 and paying out money in the way of claims. Therefore, if surviving members at the 
 date of valuation are given credit to the full value of past contributions they should 
 be charged with the full value of their share of past claims. It is then plain that 
 if their accumulated contributions exceed the amount of their accumulated share of 
 past claims they should have a net surplus to their credit. On the other hand, if the 
 accumulated claims exceed the amount of accumulated contributions a deficiency has 
 been created; and then it is not difficult to understand that if all claims from con- 
 tributions received have been paid to the date of the valuation, that the excess in 
 contributions of some members has been appropriated to make good the deficiencies 
 created by other members. From an examination of th e valuation sheet on the 
 "Accumulation Basis" one can place the finger upon the group of members, by ages 
 and years of entry, who have paid more and who have paid less than cost of protection. 
 The present status of each member is disclosed as developed from past operation. We 
 must judge the future by the past, and our judgment is obviously strengthened by 
 having laid before us the present position as brought about by past operation. We 
 
292 
 
 are better equipped to forecast the future after studying the results of a Retrospective 
 Valuation, and certainly better informed for formulating a plan of readjustment for 
 future operation. 
 
 If contribution rates are adequate to provide for the benefits promised it is imma- 
 terial as to the choice of methods for valuation. If net reserves are at hand, the 
 Net Reserve method involves the least work and time. 
 
 However, the majority of subscribers to this book are officials of fraternal bene- 
 ficiary societies, and I am trying to present the case primarily for their benefit. Be- 
 cause of this, I make two more examples. The same amounts of protection and the 
 same assumptions as to mortality and interest, and the same annual contribution rates, 
 $7.20, $7.80, $8.00, $8.20 and $8.40 are employed, but the ages of entry will be taken in 
 the first example as 38, 39, 40, 41 and 42, and as 48, 49, 50, 51 and 52. I will repeat the 
 examples given for 18, 19, 20, 21 and 22. The "Tabular" and "Accumulation Basis" 
 methods will be illustrated : 
 
 PROSPECTIVE VALUATION. 
 
 Attained 
 Age. 
 
 Amount of 
 Protection. 
 
 Present Value 
 of Protection. 
 
 Amount of 
 1 Assessment. 
 
 Present Value 
 of Future Con- 
 tributions. 
 
 Required 
 Accumulation. 
 
 18 
 
 $ 79500 
 
 $16842.87 
 
 $ 572.40 
 
 $11728.48 
 
 $ 5114.39 
 
 19 
 
 168500 
 
 35698.41 
 
 1268.70 
 
 25995.66 
 
 9702.75 
 
 20 
 
 256500 
 
 54342.09 
 
 1973.90 
 
 40445.21 
 
 13896.88 
 
 21 
 
 317000 
 
 68605.14 
 
 2478.10 
 
 50478.90 
 
 18126.24 
 
 22 
 
 359000 
 
 79396.44 
 
 2852.00 
 
 57753.00 
 
 21643.44 
 
 23 
 
 325500 
 
 73589.04 
 
 2600.30 
 
 52318.04 
 
 21271.00 
 
 24 
 
 258000 
 
 59647.02 
 
 2089.60 
 
 41771.10 
 
 17875.92 
 
 25 
 
 184000 
 
 43517.84 
 
 1507.60 
 
 29925.86 
 
 13591.98 
 
 26 
 
 121000 
 
 29285.63 
 
 1005.00 
 
 19808.55 
 
 9477.08 
 
 27 
 
 44000 
 
 10901.00 
 
 369.60 
 
 7229.38 
 
 3671.62 
 
 
 $2113000 
 
 $471825.48 
 
 $16717.20 
 
 $337454 18 
 
 $134371.30 
 
 38 
 
 $ 79500 
 
 $ 25909.05 
 
 $ 572.40 
 
 $ 10034.17 
 
 $ 15874.88 
 
 39 
 
 168500 
 
 56359.88 
 
 1268.70 
 
 21948.51 
 
 34411.37 
 
 40 
 
 256500 
 
 88059.02 
 
 1973.90 
 
 33694 . 47 
 
 54364.55 
 
 41 
 
 317000 
 
 111710.80 
 
 2478.10 
 
 41731.20 
 
 69979 . 60 
 
 42 
 
 359000 
 
 129864.66 
 
 2852.00 
 
 47314.68 
 
 82549.98 
 
 43 
 
 325500 
 
 120867.92 
 
 2600.30 
 
 42514.91 
 
 78353.01 
 
 44 
 
 258000 
 
 98339.28 
 
 2089.60 
 
 33621.66 
 
 64717.62 
 
 45 
 
 184000 
 
 71990.00 
 
 1507.60 
 
 23865.31 
 
 48124.69 
 
 46 
 
 121000 
 
 48592.39 
 
 1005.00 
 
 15637.80 
 
 32954.59 
 
 47 
 
 44000 
 
 18136.36 
 
 369.60 
 
 5647.49 
 
 12488.87 
 
 
 2113000 
 
 769829.36 
 
 16717.20 
 
 276010.20 
 
 493819.16 
 
 48 
 
 $ 79500 
 
 $ 33632.48 
 
 $ 572.40 
 
 $ 8586.00 
 
 $ 25046.48 
 
 49 
 
 168500 
 
 73157.65 
 
 1268.70 
 
 18662.58 
 
 54495.07 
 
 50 
 
 256500 
 
 114278.45 
 
 1973.90 
 
 28463.64 
 
 85814.81 
 
 51 
 
 317000 
 
 144913.38 
 
 2478.10 
 
 34965.99 
 
 109947.39 
 
 52 
 
 359000 
 
 168360.23 
 
 2852.00 
 
 39386.12 
 
 128974.11 
 
 53 
 
 325500 
 
 156578.52 
 
 2600.30 
 
 35078.05 
 
 121500.47 
 
 54 
 
 258000 
 
 127273.98 
 
 2089.60 
 
 27520.03 
 
 99753.95 
 
 55 
 
 184000 
 
 93065.36 
 
 1507.60 
 
 19372.66 
 
 73692.70 
 
 56 
 
 121000 
 
 62733.66 
 
 1005.00 
 
 12582.60 
 
 50151.06 
 
 57 
 
 44000 
 
 23377.20 
 
 369.60 
 
 4505.42 
 
 18871.78 
 
 
 $2113000 
 
 $997370.91 
 
 $16717.20 
 
 $229123.00 
 
 $768247.82 
 
293 
 
 RETROSPECTIVE VALUATION. 
 Accumulated Contributions. 
 
 Entry 
 
 Ages. 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 Totals. 
 
 IS 
 19 
 20 
 21 
 22 
 
 Totah .. 
 
 $598.16 
 753.97 
 735.68 
 676.95 
 605.68 
 
 $1160.91 
 1575.92 
 1385.42 
 1157.09 
 1293.06 
 
 $1747.58 
 2213.02 
 2387.84 
 1936.51 
 1681.18 
 
 $2271.00 
 2652.19 
 3042.32 
 2715.43 
 2443.35 
 
 $2348.72 
 2254 . 29 
 2518.12 
 2252.57 
 3077.22 
 
 $2327.67 
 3727.65 
 3991.90 
 3285.35 
 2598.29 
 
 $10463.04 
 13177.04 
 14061.28 
 12023.90 
 Ilp98.78 
 
 $3370.44 
 
 $6581.40 
 
 $9966.13 
 
 $13124.29 
 
 $12450.92 
 
 $15930.86 
 
 $61424.04 
 
 Accumulated Claims. 
 
 Entry 
 
 Ages. 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 Totals. 
 
 18 
 19 
 20 
 21 
 22 
 
 Totals . . 
 
 $ 399.89 
 465.28 
 442.64 
 399.74 
 351.90 
 
 $ 783.56 
 974.30 
 835.11 
 685.74 
 753.12 
 
 $1175.12 
 1373.62 
 1445.08 
 1151.28 
 983.32 
 
 $1531.97 
 1651.48 
 1847.05 
 1620.60 
 1435.20 
 
 $1590.30 
 1408.95 
 1534.50 
 1349.76 
 1815.68 
 
 $1578.26 
 2333.08 
 2436.01 
 1977.33 
 1540.44 
 
 $7059.10 
 8206.71 
 8540.39 
 7184.45 
 6879.66 
 
 $2059.45 
 
 $4031.83 
 
 $6128.42 
 
 $8086.30 
 
 $7699.19 
 
 $9865.12 
 
 $37870.31 
 
 Accumulated Contributions. 
 
 Entry 
 
 Ages. 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 Totals. 
 
 38 
 39 
 40 
 41 
 42 
 
 Totals . . 
 
 $ 601.02 
 757.58 
 739.20 
 680.19 
 608.58 
 
 $1171.01 
 1577.39 
 1393.20 
 1163.58 
 1300.32 
 
 $ 1752.91 
 2219.76 
 2402.40 
 1948.32 
 1690.92 
 
 $ 2284.20 
 2667.60 
 3066.80 
 2736.67 
 2462.46 
 
 $ 2363.90 
 2272.80 
 2538. 8Q 
 2275.01 
 3112.70 
 
 $ 2348.21 
 3765.84 
 4038.48 
 3327.89 
 2635.25 
 
 $10521.25 
 13260.97 
 14178.88 
 12131.66 
 11810.23 
 
 $3386.57 
 
 $6605.50 
 
 $10014.31 
 
 $13217.73 
 
 $12563.21 
 
 $16115.67 
 
 $61902.99 
 
 Accumulated Claims. 
 
 Entry 
 Ages. 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 Totals. 
 
 38 
 39 
 40 
 41 
 42 
 
 Totals . . 
 
 $ 535.83 
 644.73 
 635.36 
 592.50 
 540.27 
 
 $1066.28 
 1372.14 
 1220.67 
 1035.54 
 1180.08 
 
 $1622.08 
 19G5.2S 
 2149.42 
 1773.36 
 1570.14 
 
 $2148.14 
 2404.64 
 2800.75 
 2544.86 
 2336.75 
 
 $2266.89 
 2088.68 
 2371.05 
 2161.44 
 3015.68 
 
 $2294.02 
 3531.24 
 3846.78 
 3229.05 
 2610.96 
 
 $ 9933.24 
 12006.71 
 13024.03 
 11336.75 
 11253.88 
 
 $2948.69 
 
 $5874.71 
 
 $9080.28 
 
 $12235.14 
 
 $11903.74 
 
 $15512.05 
 
 $57554.61 
 
294 
 
 Accumulated Contributions. 
 
 Entry 
 Ages. 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 Totals. 
 
 48 
 49 
 50 
 51 
 52 
 
 Totals . . 
 
 $ 601.48 
 758.59 
 740.61 
 082.00 
 610.67 
 
 $1179.87 
 1590.74 
 1399.94 
 1170.51 
 1309.69 
 
 $1769.11 
 2243.31 
 2424 . 02 
 1969.10 
 1712.03 
 
 $2308.82 
 2701 . 15 
 3104.68 
 2776.60 
 2504.39 
 
 $2399.12 
 2308.02 
 
 2584.82 
 2318.78 
 3177.16 
 
 $2390.90 
 3840.15 
 4125.67 
 3407.25 
 2705.14 
 
 $10649.30 
 13441.96 
 14379.74 
 12324.24 
 12019.08 
 
 $3393.35 
 
 $6650.75 
 
 $10117.57 
 
 $13395.64 
 
 $12787.90 
 
 $16469.11 
 
 $62814.32 
 
 Accumulated Claims. 
 
 Entry 
 
 Ages. 
 
 1913. 
 
 1912. 
 
 1911. 
 
 1910. 
 
 1909. 
 
 1908. 
 
 Totals. 
 
 48 
 49 
 50 
 51 
 52 
 
 Totals . . 
 
 $ 806.13 
 1011.95 
 1019.04 
 971.70 
 901.83 
 
 $1660.60 
 2182.01 
 1982.88 
 1717.32 
 2042.64 
 
 $ 2557.44 
 3165.90 
 3536.26 
 2979.36 
 2693.15 
 
 $ 3431.94 
 3923.88 
 4668.20 
 4334.18 
 4069.65 
 
 $ 3668.52 
 3453.70 
 4007.30 
 3736.32 
 5336.32 
 
 $ 3763.26 
 5921.44 
 6599.45 
 5670.93 
 4697.88 
 
 $15887.89 
 19658.88 
 21813.13 
 19409.81 
 19741.47 
 
 $4710.65 
 
 $9585.45 
 
 $14932.11 
 
 $20427.85 
 
 $20202.16 
 
 $26652.96 
 
 $96511.18 
 
 
 
 Note the fact of the same amounts of protection and the same amounts for one 
 assessment in the three age-groups of the 'Tabular" Valuation, and then observe how 
 the value of protection increases and the value of future contributions decreases with 
 the advance in age. 
 
 The value of $79,500 of protection at age 18 is $16,842.87, and the .value of future 
 contributions $11,728.48. At age 48 the value of $79,5oo is $33,632.48, and the future 
 contributions $8,586. The required accumulation at age 18 is $5,114.39, and at age 
 48 is $25,046.48. For the age-group 18-27 it is $134,371.30, while for 48-57 it is 
 $768,247.82. 
 
 There can be no better illustration than this of the increase in cost of protection 
 with increase in age. 
 
 The striking feature of the Prospective Valuation is the increased differences. 
 with increased attained ages, between the present values of future expected claims 
 and the present values of the future expected contributions. 
 
 Rerriember that in the Prospective Valuation we bring all expected liabilities and 
 assets to the present age. We ignore the results of past operation. We have regard 
 only for anticipated results in an attempt to forecast the future. Observe that the 
 greater the value of expected future claims the smaller the value of the expected 
 future contributions, and that the latter decrease with the advance in age. 
 
 Now turn to the study of the valuation on the "Accumulation Basis." 
 
 The striking feature of this valuation is the increase in the value of accumulated 
 contributions with advance in age, notwithstanding 1 the same rate for corresponding 
 ages of each group. 
 
 The total for entry age 18 and all years of issue is $10,463.04; for entry age 38 
 the total is $10,521.25; and for age 48 it is $10,649.30. 
 
 For the year 1913 and the groups of ages 18-22, 38-42 and 48-52, the respective 
 totals are $3,370.44, $3,386.57 and $3,393-35- 
 
295 
 
 Why should the present value of future contributions decrease with the increase 
 in age, while the accumulated value of past contributions increase with the increase 
 in age? 
 
 The answer to this question can be found in previous pages to which reference 
 is directed especially where I dwell at some length on "Mortuary Accretions" and 
 their potency at advanced ages. 
 
 There can be no surprise by the exhibit of increase with age in accumulated claims. 
 Nor in the fact that the accumulated claims exceed the accumulated contributions at 
 the advanced ages. 
 
 Note the Summary : 
 
 Entry Ages. 
 
 Accumulated 
 Contributions. 
 
 Accumulated 
 Claims. 
 
 Differences 
 
 18-22 
 38-42 
 
 48-52 
 
 $61,424.04 
 61,902.99 
 62,814.32 
 
 $37,870.31 
 57,554.61 
 96,511.18 
 
 $23,553.73 
 4,348.38 
 33,696.86 
 
 The summary indicates the most important of all the lessons in insurance that 
 may be learned from the study of the valuation by the Accumulation method. 
 
 Here is clearly demonstrated the need for extra assessments or the readjustment 
 of rates of contribution which has come to every Society fifteen years in operation. 
 
 The accumulated past contributions for the age group 18-22 exceed the accumu- 
 lated past claims by $23,553.73. 
 
 The accumulated past claims for the age group 48-52 exceed the accumulated past 
 contributions by $33,696.86. 
 
 The excess of contributions and increment on $2,113,000 of protection at the 
 young ages 18-22 lacks $10,143.13 of being sufficient to make good the deficiencies in 
 contributions on $2,113,000 of protection at ages 48-52. 
 
 This disclosure by a valuation, which exhibits the present situation as developed 
 through past operation, discovers to any average intellect the cause of failure where 
 an insurance business is run upon the principle of appropriating from the young for 
 the benefit of the old. The ever-increasing demands of the latter eventually over- 
 burden the former and drive them away and others cannot be found to take their 
 places. 
 
 The Retrospective Valuation, taken alone, gives more valuable infornnation. Taken 
 with the Prospective Valuation complete information is given. 
 
 The valuation laws recently enacted allow the option of either method. 
 
 Probably this opinion of the privileges granted should be modified by stating' 
 that the Commissioners of three States construe the valuation provisions of the laws 
 following the "Mobile >Bill" to require either the "Net Reserve" or the (so-called) 
 "Tabular" valuation, and as excluding the valuation on the "Accumulation Basis." 
 
 Without stretching to any dangerous degree the power of discretion granted to 
 every Insurance Commissioner, the provisions of th e Mobile Bill will allow a valua- 
 tion on the "Accumulation Basis." The provision is express that "the valuation may 
 show the net value of the certificates subject to valuation." 
 
 Certainly the difference between the accumulated past contributions and accu- 
 mulated past claims is the "net value" of the certificates. 
 
 No Commissioner will controvert that statement, but it is contended that "net 
 value" has been known as th e "difference between the present value of future claims 
 
296 
 
 and the present value of future contributions," and so hoary with age is this definition 
 that it would be unpardonable disrespect to accept any other. 
 
 The superiority of the accumulation method in respect of information concerning 
 fraternal Society conditions should commend it to every Commissioner of Insurance 
 even to the extent of accepting as "net value" the difference between the present 
 value of past contributions and the present value of past claims. 
 
 The acceptance of a valuation on the "accumulation basis" does not necessarily 
 carry with it an acceptance of all of the provisions of Section 2$b of the "New York 
 Conference Bill." 
 
 The valuation may be made on the "Accumulation Basis" without following it 
 with an "apportionment" of accumulated funds. 
 
 To make an apportionment of the accumulated funds is to make a readjustment 
 of the relations between members. 
 
 A valuation followed by readjustment was no. doubt contemplated by the author 
 of Section 2^b. However, the provisions of the Bill permit a valuation on the 
 "Accumulation Basis" without a readjustment. 
 
 I am not saying that valuation and readjustment is less desirable as a fact, it is 
 preferable to valuation without apportionment and readjustment. 
 
 The point is that the merits of a Retrospective Valuation should cause its adop- 
 tion as the best method for fraternal societies (in their present condition), and 
 without reference to its peculiar adaptability to an apportionment of accumulated 
 funds and the establishing of equitable relations between members in respect of con- 
 tributing according to insurance risk. 
 
 SECTION 236. 
 
 The Mobile Bill, as hereinbefore stated, provides for valuations by the "Net Re- 
 serve," or the (so-called) "Tabular" methods. At a conference in New York, De- 
 cember 4, 1912, amendments were agreed to, and the Bill, as amended, is given (in 
 substance) at pages 66-72. 
 
 At a second conference in New York, December 15, 1913, additional amendments 
 were agreed to as follows, in respect of Section 23b : 
 
 First. That the first paragraph of Section 23b of said conference bill be amended 
 by inserting after the words "to cover his share of the losses" in the third line from 
 the end in the printed copy, the following words, first changing the period to a comma : 
 "and if the credit at the time any benefit becomes payable during the lifetime of the 
 member, including any available funds, does not equal such benefit, the contributions 
 ; ;o be made by him or on his behalf shall be increased by the difference." 
 
 Second. By striking out the sixth and seventh paragraphs of said bill as printed, 
 and substituting therefor the following: 
 
 "A table showing the rates being paid by and the credits to indi- 
 vidual members at each age and year of entry, and showing opposite 
 each credit the tabular rate and the tabular reserve on a level rate 
 equivalent to that being paid, according to assumptions for mortality 
 and interest recognized by the laws of this State and adopted by the 
 Society, and, in either case, including any benefit payable at a specified 
 age or on account of old age disability, shall be filed by the Society 
 with each annual report and also be furnished to each member before 
 July ist of each year." 
 
 "In lieu of the aforesaid statement there may be furnished to each 
 member within the same time a statement giving the data aforesaid for 
 such member. No table or statement need be made or furnished when 
 the reserves are maintained on the tabular basis." 
 
297 
 
 The amendments so recommended are for the purpose of making the section more 
 specific and definite, and to prevent misunderstandings which have arisen with regard 
 to the purpose and intent of the section. 
 
 The Committee on Fraternal Insurance for the Insurance Commissioners' Con- 
 vention reported (and the recommendation was adopted, subject to such changes and 
 corrections as might be made by the Committee on Statutory Legislation for the 
 National Fraternal Congress) the following form of valuations under Section 2$h : 
 
 TABLE OF CREDITS 
 
 For the 
 
 for certificates of $1,000.00 on the 
 
 As of December 31, 191 
 
 (Name of Society.) 
 Year of Issue. 
 
 plan. 
 
 
 19 
 
 13. 
 
 19 
 
 12. 
 
 19 
 
 11. 
 
 Etc. 
 
 Age. 
 
 Present 
 Rate and 
 Credit. 
 
 Required 
 Rate and 
 Reserve. 
 
 Present 
 Rate and 
 Credit. 
 
 Required 
 Rate and 
 Reserve. 
 
 Present 
 Rate and 
 Credit. 
 
 Required 
 Rate and 
 Reserve. 
 
 Etc. 
 
 16 
 
 
 
 
 
 
 
 
 17 
 
 
 
 
 
 
 
 
 18 
 
 
 
 
 
 
 
 
 Etc. 
 
 
 
 
 
 
 
 
 The valuer must state whether or not account has been taken of contributions 
 or reserves made, or held, or required to be made or held for sickness, accident, or 
 other benefits than mentioned in the body of the report. 
 
 He must state whether or not the credits and reserves have been calculated to the 
 last anniversary of the certificates, or must specify the time to which they have 
 been calculated. 
 
 The Committee added the following explanatory statements and notes : 
 
 "Any member may find the figures for his certificate by following down the col- 
 umns for his year of entry to the horizontal lines for his age at entry. 
 
 "The table shows the ('monthly) rates being paid by, and the present credits to, 
 members holdings certificates on the ( 2 whole life plan) at each age and year of 
 entry; and for purposes of comparison shows opposite such rate and credit ( 3 the 
 tibular entry age, monthly rate required to 'be paid and the tabular reserve now 
 
 required), assuming a death rate equal to the = table of mortality and interest 
 
 at the rate of - per cent in order to provide the death benefit (*four or 5 five) 
 promised in the contract upon a certificate for $1,000. The credit of the member is 
 the balance from contributions made by him, or in his behalf, and his share of 
 interest earnings after deducting his cost of insurance for his share of the actual 
 death claims. 
 
 "If the credit and contribution made by or on behalf of a member shall together 
 be insufficient to pay his share of the actual death claims for any year, the contri- 
 bution to be made by him or on his behalf for said year shall be increased by the 
 difference." 
 
 Note i. In the proper case, substitute the word "quarterly" or "annual" for 
 "monthly." 
 
 Note 2. In the proper case, substitute for the words "whole life," the words 
 descriptive of the plan covered by this table. 
 
 Note 3. The Society may, at its option, substitute for the words included in the 
 parenthesis the following words : "The reserve that should be in hand if the present 
 rate is not to be increased." 
 
298 
 
 Note 4. According to the facts, add "and the benefit payable at age ." 
 
 Note 5. According to the facts, add "and the benefit payable on account of 
 old age disability." 
 
 Note 6. Where Note 4 or 5 applies, add to the paragraph above which begins: 
 "If the credit and contribution" the following words, "and if the credit at the 
 time any benefit becomes payable during the lifetime of the member, including any 
 available funds, does not equal such benefit, the contribution to be made by him or 
 on his behalf shall be increased by the difference." 
 
 The committee further recommends that the reports to the several insurance 
 departments made by the societies which elect to value under Section 2$b contain a 
 similar table to the above, showing for each age and year of issue the number of 
 members, the amount of insurance, the total credits and the total reserves, and that 
 there shall be appended to said table the following: 
 
 "The total credits for all certificates outstanding upon this plan as above are 
 $ , and adjusted to December 31, 19 , such credits are $ . 
 
 "The total required reserves for all certificates outstanding upon this plan as above 
 are $ , and adjusted to December 31, 19 , such reserves are $ . 
 
 It appears that Section 23b offers a fairly satisfactory solution of the problem 
 as to the best method of dealing with 
 
 1. The membership of a society in oppostion to th e acceptance of theoretically 
 adequate contribution rates, provided existing rates are not too low. 
 
 2. The membership of a society on readjusted rates assumed to be adequate but 
 not equal to theoretically adequate contributions. 
 
 3. The membership of a society to which rates adequate only for attained a.^es 
 had been applied as of original ages at entry, or at younger than attained ages at 
 date of rerating. 
 
 4. The membership of a society placed to itself in a designated inadquate rate class. 
 
 5. The membership of a society thrown together in one class, with entrants prior 
 to a given date contributing at inadequate rates, and with entrants subsequently to the 
 given date contributing at adequate rates. 
 
 Generally speaking, these five groups will cover the character of business to which 
 Section 23b is applicable and then only when all new members, admitted after the 
 date of its application, are placed upon theoretically adequate contribution rates with 
 required reserve accumulation set aside to maintain their adequacy. 
 
 The one exception to this requirement might be in the second case of a read- 
 justment upon rates assumed adequate by officials or members, but lower than the 
 theoretically adequate rates, and where it is desired that a test be made in practical 
 and continued operation as to the adequacy of the assumption. Even in this instance, 
 it would be much better, for all concerned, present and future members alike, to 
 have the new entrants contribute at theoretically adequate rates. The latter never 
 yet have failed to produce income sufficient to provide for promised benefits (assum- 
 ing wise and honest management), while estimated adequacy time and again has 
 miscarried. 
 
 This opinion of the remedy offered by Commissioner Ekern was submitted to a 
 man who is recognized as one that can speak with authority on such matters, and 
 he writes to me as follows : 
 
 "A second matter that you have referred to in no uncertain terms, but which 
 I should be glad to see with even a little more emphasis, is that 23b is absolutely 
 useless to a society, unless it puts its new business on adequate tabular rates. In fact, 
 to my mind, a second condition of an institution which adopts the concessions of 23!) 
 and does not accompany it with adequate tabular rates as far as new business is con- 
 cerned is worse than the first; for in the first place it might be innocently guilty of 
 the deception of the public implied in its operation. In the second place, it is enter- 
 
299 
 
 ing willfully upon a course of deceit. I have been much disappointed that Mr. Ekern 
 has not been prepared to adopt this view, but with all the respect I have for him, I 
 cannot feel that he is right in counseling that the issue be not raised at this time. 
 It seems to me that now is the time that no society ought to be allowed to put 
 in force the methods of 2$b under the assumption that through the remedy it pre- 
 scribes it may still continue safely to write new members under old conditions, with 
 the expectation of applying the remedy to them when the time comes. Aside from 
 this, such a course is needless, because if a society desires to write purely current 
 cost business, it can do so under the law on the step-rate plan, and have the con- 
 sciousness that it is doing what it is doing honestly." 
 
 Commissioner Ekern declares that a valuation under Section 2$b has the striking 
 advantage over other methods in that the results of a valuation as provided in the 
 section will show 100 per cent or more of solvency and cannot disclose any technical 
 deficiency, because of offsetting charges and th e required increase of contribution or 
 other recourse to provide for the member's share of losses in excess of his credit and 
 current net contribution. To render this statement altogether correct demands a 
 construction that will change certificates to yearly renewable contracts promising death 
 benefit only, or a construction of the provisions of the section which will explain the 
 procedure in the determination of ''cost of insurance" and the "charge" to be entered 
 where a member is within one or more years of maturing a promised endowment or 
 other benefit of a character as hereinafter suggested. 
 
 It is my opinion that Commissioners have the authority, under discretionary 
 powers, to prescribe the methods of procedure in the valuation of other than death 
 benefits. As the section stands it is not applicable to such cases, and I agree with 
 as Actuary who has expressed himself on this point to the effect that "the added cost 
 involved by these extra benefits must be provided for by accumulation functions deter- 
 mined actuarily." Valuation by the employment of such factors could be accepted 
 by Commissioners through a proper exercise of discretionary powers. 
 
 In effect, this has been done by the Commissioners in their action at the recent 
 conference, December 12, 1913. 
 
 Very many societies promise to pay the face of certificates by installments in the 
 event of permanent total disability, or on attaining to 70 years of age. Upon the 
 date of any valuation there will be matured obligations under both of these promises, 
 and there will be members in such physical condition or so near the endowment 
 age that claims will mature shortly, and on all such certificates the insurance liability 
 is greater than where the promise is for death benefit only. 
 
 Unless the courts decide against the segregation of funds under the provisions 
 of Section 2^b, valuation under it can be made to serve the purpose hereinbefore 
 indicated. 
 
 The method of valuation best suited for the individual society can be determined 
 only by knowing the individual condition. 
 
 Section 23a of the "Mobile and of the New York Conference Bills" provides for 
 the valuation of "Promised Benefits" and of "Future Net Contributions as in practice 
 actually collected," and provides also for an exhibit merely of the "Net Value of 
 Certificates." 
 
 Section 23b of the New York Conference Bill provides: "In lieu of the require- 
 ments of Sections 23 and 233 any society, accepting in its laws the provisions of this 
 section, may value its certificates on a basis, herein designated Accumulation Basis, 
 by crediting each member with the net amount contributed for each year and with 
 interest at approximately the net rate earned, and by charging him with his share 
 
300 
 
 of the losses for each year, herein designated Cost of Insurance, and carrying the 
 balance, if any, to his credit." 
 
 The section further provides: "Certificates issued, rerated or readjusted on a 
 basis providing for adequate rates, with adequate reserves to mature such certificates 
 upon assumptions for mortality and interest recognized by the laws of this State, 
 shall be valued on such basis, herein designated Tabular Basis." 
 
 In order to take advantage of the "Accumulation Basis" of valuation each society 
 must "accept the provisions in its laws." This is a condition precedent and must 
 be complied with prior to making the valuation. 
 
 It is understood that some, and probably all, of the Commissioners of the eleven 
 States in which the "Mobile Bill" is effective will accept valuations made on the 
 "Accumulation Basis," although there is no specific provision for it in that bill. This 
 acceptance is permissible under the general discretionary power given to the Com- 
 missioners. 
 
 By whatever method the valuation is made, a society may employ a Table of Mor- 
 tality based upon its own experience "of at least twenty years and covering not less 
 than one hundred thousand lives, with interest assumption not more than 4 per centum 
 per annum." 
 
 A question has been raised as to the intent of the quoted words in reference to 
 "one hundred thousand lives." The original wording in the amendment offered by 
 the Royal Arcanum in the National Fraternal Congress was "one hundred thousand 
 members." I pointed out to the representative of that society that such wording 
 would operate to exclude the Royal Arcanum from the benefit of the proposed amend- 
 ment to Section 23 of the tentative bill then under consideration. I suggested as 
 a substitute for "members" the words "lives exposed to risk." The learned attorneys 
 who had charge of the bill adopted the suggestion by substituting "lives" for "mem- 
 bers," but omitted the words "exposed to risk," which would have made clear the 
 intent of Brother Wiggins in offering the original amendment. However, the use 
 of the word "lives" instead of "members," and the unquestioned purpose of the 
 provision, leaves no doubt that the meaning of the provision is that any society can 
 employ a Table of Mortality based upon its own Experience, when that experience 
 covers a period of at least twenty years and includes a total of not less than one hun- 
 dred thousand lives exposed to risk during that period. 
 
 MATERNITY BENEFITS. 
 
 Only one American Society has established a scale of contributions for maternity 
 Benefits. 
 
 It is very common in Europe for societies to pay a stipulated benefit on the birth 
 of a child. 
 
 Concerning this benefit Mr. Alfred W. Watson writes : 
 
 Amongst the minor allowances of friendly societies, maternity benefits have almost 
 always been found in village friendly societies of women, and these benefits have re- 
 cently come more frequently under notice because of the establishment of branches 
 of women members of affiliated orders -during the last twenty years. There has been 
 a considerable misunderstanding of the financial incidence of this particular benefit 
 in the establishment of the branches of some of the affiliated orders. An attempt 
 has been made to set up separate funds for maternity benefits on the theory that, if 
 separate funds for sickness and death benefits were required (this necessity was as- 
 sured on grounds which I have explained previously), a separate fund for the ma- 
 ternity benefit was also needed. But, of course, the societies which attempted to set 
 up such funds failed to observe that while benefits depending on sickness and mortality 
 were increasing risks provided for by a level premium, maternity benefit repre- 
 
301 
 
 sented a decreasing risk with the like form of premium, and that consequently, the 
 reserves, after about 30 years of age, must be negative. Several societies have tried 
 to set up such a fund, and naturally, have found it nearly always in a state of in- 
 solvency. I do not suppose that any qualified adviser would undertake to quote a pre- 
 mium for maternity benefit to be paid into a separate fund for that benefit; but the 
 point is worth mentioning, if only to indicate the problems which are submitted to the 
 actuary, with excellent intentions, by friendly society managers who, of necessity, are 
 imperfectly versed in the technical principles involved. The same may be said of the 
 request occasionally advanced, that the actuary will quote a premium payable through- 
 out life for an optional maternity benefit; this, obviously, is an impossible form of 
 contract. 
 
 The maternity benefit is very easily valued as a variable annuity, ceasing at about 
 4.5 years of age in the case of societies of women, but assuming it to run on to age 55, 
 or later, in the case of societies of men. The only collected experience in this country 
 of maternity benefit claims is that of the Heart of Oaks Society, three recent years' 
 experience of which I was enabled to obtain and analyze some time ago. I am in- 
 clined to think that the birth rate of the country generally is rather higher than it is 
 among the members of the Hearts of Oak Society, but having in view the constant 
 decrease in this rate, it is scarcely safe to put forward any positive opinion. 
 
 On the point last mentioned it is, perhaps, worth referring to the fact that I have 
 recently had under examination a fairly large experience, obtained from a centralized 
 society's records referring to the years 1876 to 1880, and tabulated by Mr. R. P. Hardy. 
 This society showed at the age of 27, which is a typical age for this purpose, a birth 
 rate of 30 per cent; that is to say, 30 per cent of the entire membership at age 27 
 had children born to them within a year. In the Hearts of Oak experience, in the 
 three years 1907 to 1909, the corresponding proportion was only 17 per cent. The 
 society giving the 1876-80 experience has been recently through my hands, and I found 
 its experience to be about one-third higher than the Hearts of Oak, which would 
 make the present birth rate in respect of its members about 23 per cent at the age 
 of 27. So far, therefore, as somewhat inperfect statistics! show, it would seem that 
 in the case of that society the birth rate has fallen during the last 30 years by about 
 25 per cent. 
 
 BENEFIT FOR MEMBER'S WIFE. 
 
 Quoting further from Mr. Watson : 
 
 There appears to be scope for consideration with regard to the method employed to 
 value the benefit payable on the death of a member's wife during his lifetime. Hitherto 
 it has been the orthodox custom to value this benefit by the ordinary function A*y 
 the female life (x) being generally taken as two to five years younger than the male 
 life (y). The employment of this function somewhat overestimates the claims, in 
 consequence of ignoring the unmarried condition of a substantial proportion of the 
 membership, and assuming that on the valuation date the society is on the risk for 
 everybody except widowers. The opposite and extremely unreasonable course has 
 been taken by many "valuers" of assuming that the men who on the valuation date 
 were not married, never would be married, and, consequently, of debiting the society 
 with no liability in respect of the wife's death benefit for these members. I think a 
 middle course might be found, and the claims in respect of the wives recorded at each 
 age of the member, in order that a rate of claim in respect of wife's death might be 
 obtained (precisely as one would get out the rate of claim in respect of maternity or 
 sickness) and the benefit be valued on that basis. To test the possibility of adopting 
 this course I have analyzed the Hearts of Oak experience for the three years 1907 to 
 1909, and have found that the claims for wife's death benefit per thousand members 
 at risk emerge on something like the following scale : 2 at age 26 ; 3 at age 30 ; 5 at 
 age 40; 8 at age 50; 14 at age 60, and 25 at age 70. This gives a very good series, 
 and naturally produces a value substantially lower than the text-book factor for the 
 benefit. After full consideration, I am of opinion that this method would supply a 
 legitimate way of valuing this particular benefit in a well established society. It is 
 clear, however, that in the case of any recently established society, the society's own 
 experience should not be used, because, in such cases, there is a tendency to recruit 
 the membership from amongst young and unmarried men ; but on the principle the 
 pla.n seems sound. 
 
302 
 
 LAPSE ELEMENT IN VALUATION. 
 
 Mr. Alfred W. Watson, an authority on Friendly Societies, makes the following 
 comment on the consideration of the lapse element in the valuation. His statements 
 are applicable to the valuations of the certificates of Fraternal Beneficiary Societies. 
 Only the .actuary of a Canadian Order has undertaken to introduce the lapse element 
 into the valuation of American Societies. 
 
 On general principles it is a custom and a sound one to deprecate any use of the 
 secession element in valuing friendy societies. Personally, I would say nothing to 
 weaken the general opinion on this point. My observations now are simply directed 
 to matters that should be taken into consideration before, and in case the actuary does 
 decide to employ the secession element in a particular valuation. Broadly, I would 
 lay down the rule that in small societies the probability of secession should be ignored ; 
 in large societies there is more ground for its recognition. But while I would admit 
 in the case of a large society, the use of the secession rate, as giving some abatement 
 of liabilities in a case where there is reason to expect a deficiency, and where the basis 
 in other respects is adequate, I think it would be distinctly undesirable to use a rate 
 of secession in the case of a society, however large, where the expected outcome of 
 the valuation was a distribution of surplus. Not only can it be urged in such a case, 
 that the use of a secession rate represents a present anticipation of possible future 
 profit, but the direct result of that course of action may be to so enlarge the amount 
 of present surplus as to afford the members strong inducement to remain in the society, 
 thus weakening one of the pillars on which the surplus depends. In dealing with 
 societies of recognized soundness, and especially if there is any question of the appro- 
 priation of the surplus, my own course has always been to disregard the secession 
 element, except in regard to the large collecting societies which are outside the scope 
 of our syllabus. 
 
 The employment of a secession rate for large societies and its disregard in the 
 case of small bodies appears to set up a discrimination in favor of large societies, as 
 regards the leniency of the test of valuation. Scientifically this is not difficult to de- 
 fend if the true ground for the differentiation be kept in view. This is not that seces- 
 sions will be fewer relatively in the small societies than they will be in the large 
 societies, but that the uncertainty of estimating them is greater. Secession, being an 
 event dependent upon the action of the human will, is always difficult of measurement ; 
 when the actuary comes to deal with very small bodies, such as village friendly societies, 
 he may say, with confidence, that if he could take a thousand societies and pool them 
 he would find probably amongst them as he would find in one large society with pre- 
 cisely the same type of members. But in the practical conditions each society must be 
 regarded separately, and it is the uncertainty of the secession element which debars 
 the actuary from giving effect to it when appraising the position of a small body. 
 
 GENERAL COMMENTS. 
 
 Fraternal beneficiary societies reserve the right to expel members for certain in- 
 fractions of the constitution and laws, and for certain offenses and crimes. The cases 
 of expulsion are comparatively few and may be ignored in forecasting future results. 
 
 The society is virtually in the position of the life company in respect of voiding 
 or cancelling its contract. It has the right to levy extra assessments, but so long as 
 the member keeps up his contributions the society must abide the contractual condi- 
 tions. 
 
 However, the constitution and laws being part of the contract, in very many cases, 
 it is not an easy matter to reduce the benefits and payments to a working formula. 
 
 The policy of a life company contains all of the provisions and conditions of the 
 contract, where the application is incorporated in the policy, as is done almost uni- 
 versally. 
 
 One must read the entire constitution and laws of the fraternal beneficiary society 
 to be sure of contract conditions, and in some instances he cannot then be certain of 
 
303 
 
 the "Benefit Side" and "Payment Side" of the contract. The learned actuaries who 
 have written text-books have not evolved symbols sufficient to express algebraically 
 all of the features of either side to the contract. 
 
 It has been the practice of societies to have paramount regard to safety of the 
 principal invested, and it is difficult to impress officials with the necessity of earning 
 4 per cent or more when they adopt contribution rates calculated upon four per cent 
 interest assumption. 
 
 I have commented upon the importance of the expense consideration. 
 
 The valuation laws require that the "net" contributions be valued. 
 
 Some societies "load" the net premium, or contribution rate, to continue through 
 the period of protection and to replace by monthly payments an amount used in the 
 first year for expenses. 
 
 This practice may be considered in the nature of preliminary term insurance and 
 treated similarly in making a valuation. 
 
 Or the present value of the loading may be treated as a single premium for the 
 purchase of the cash sum for immediate use, and the amount of this single premium 
 added to the single premium for the valuation of the protection. The loaded contribu- 
 tion rate then may be treated as the "net" rate of contribution. Obviously the present 
 value of the loading to be added to the insurance single premiums will decrease from 
 year to year, being valued by the annuity at the attained age. which is employed in the 
 valuation of the contributions. 
 
 If the valuation is by "Net Reserves," these must be modified for a valuation where 
 the net premium is loaded for a flat amount for expenses in the first year. 
 
 The valuation laws for fraternal societies provide that the protection for the current 
 year need not be valued where the whole or any part of the first year's contributions 
 are used for expenses. 
 
304 
 
 TABLE I. 
 NATIONAL FRATERNAL CONGRESS TABLE OF MORTALITY. 
 
 X 
 
 Age. 
 
 lx 
 
 Number 
 Living. 
 
 d x 
 
 Number 
 Dying. 
 
 q* 
 
 Yearly Proba- 
 bility of Dying. 
 
 1000 q x 
 Yearly Death 
 Rate Per 1,000. 
 
 1000 q x v x 
 Discounted 
 Yearly Rate 
 Per 1,000. 
 
 e x 
 
 Expecta- 
 tion of Life. 
 
 Average 
 Duration 
 of Life. 
 
 20 
 
 100000 
 
 500 
 
 .0050000 
 
 5.000 
 
 4.808 
 
 45.6 
 
 49.7 
 
 21 
 
 99500 
 
 501 
 
 .0050352 
 
 5.035 
 
 4.841 
 
 44.9 
 
 48.8 
 
 22 
 
 98999 
 
 502 
 
 .0050708 
 
 5.071 
 
 4.876 
 
 44.1 
 
 47.9 
 
 23 
 
 98497 
 
 503 
 
 .0051068 
 
 5.107 
 
 4.911 
 
 43.3 
 
 47.0 
 
 24 
 
 97994 
 
 505 
 
 .0051535 
 
 5.154 
 
 4.956 
 
 42.5 
 
 46.1 
 
 25 
 
 97489 
 
 507 
 
 .0052006 
 
 5.201 
 
 5.001 
 
 41.8 
 
 45.2 
 
 26 
 
 96982 
 
 510 
 
 .0052587 
 
 5.259 
 
 5.057 
 
 41.0 
 
 44.3 
 
 27 
 
 96472 
 
 513 
 
 .0053176 
 
 5.318 
 
 5.113 
 
 40.2 
 
 43.4 
 
 28 
 
 95959 
 
 517 
 
 .0053877' 
 
 5.388 
 
 5.181 
 
 39.4 
 
 42.5 
 
 29 
 
 95442 
 
 522 
 
 .0054693 
 
 5.469 
 
 5.259 
 
 38.6 
 
 41.6 
 
 30 
 
 94920 
 
 527 
 
 .0055520 
 
 5.552 
 
 5.338 
 
 37.8 
 
 40.7 
 
 31 
 
 94393 
 
 533 
 
 .0056466 
 
 5.647 
 
 5.430 
 
 37.0 
 
 39.8 
 
 32 
 
 93860 
 
 540 
 
 .0057532 
 
 5.753 
 
 5.532 
 
 36.2 
 
 38.9 
 
 33 
 
 93320 
 
 548 
 
 .0058723 
 
 5.872 
 
 5.646 
 
 35.4 
 
 38.0 
 
 34 
 
 92772 
 
 557 
 
 .0060040 
 
 6.004 
 
 5.773 
 
 34.6 
 
 37.1 
 
 35 
 
 92215 
 
 567 
 
 .0061487 
 
 6.149 
 
 5.912 
 
 33.9 
 
 36.2 
 
 36 
 
 91648 
 
 578 
 
 .0063067 
 
 6.307 
 
 6.064 
 
 33.1 
 
 35.3 
 
 37 
 
 91070 
 
 591 
 
 .0064895 
 
 6.490 
 
 6.240 
 
 32.3 
 
 34.4 
 
 38 
 
 90479 
 
 606 
 
 .0066977 
 
 6.698 
 
 6.440 
 
 31.5 
 
 33.5 
 
 39 
 
 89873 
 
 622 
 
 .0069209 
 
 6.921 
 
 6.655 
 
 30.7 
 
 32.6 
 
 40 
 
 89251 
 
 640 
 
 .0071708 
 
 7.171 
 
 6.895 
 
 29.9 
 
 31.7 
 
 41 
 
 88611 
 
 660 
 
 .0074483 
 
 7.448 
 
 7.162 
 
 29.1 
 
 30.9 
 
 42 
 
 87951 
 
 683 
 
 .0077657 
 
 7.766 
 
 7.467 
 
 28.3 
 
 30.0 
 
 43 
 
 87268 
 
 708 
 
 .0081129 
 
 8.113 
 
 7.801 
 
 27.5 
 
 29.1 
 
 44 
 
 86560 
 
 734 
 
 .0084797 
 
 8.480 
 
 8.154 
 
 26.8 
 
 28.2 
 
 45 
 
 85826 
 
 761 
 
 .0088668 
 
 8.867 
 
 8.526 
 
 26.0 
 
 27.4 
 
 46 
 
 85065 
 
 790 
 
 .0092870 
 
 9.287 
 
 8.930 
 
 25.2 
 
 26.5 
 
 47 
 
 84275 
 
 822 
 
 .0097538 
 
 9.754 
 
 9.379 
 
 24.4 
 
 25.6 
 
 48 
 
 83453 
 
 857 
 
 .0102693 
 
 10.269 
 
 9.874 
 
 23.7 
 
 24.8 
 
 49 
 
 82596 
 
 894 
 
 .0108238 
 
 10.824 
 
 10.408 
 
 22.9 
 
 23.9 
 
 50 
 
 81702 
 
 935 
 
 .0114440 
 
 11.444 
 
 11.004 
 
 22.2 
 
 23.1 
 
 51 
 
 80767 
 
 981 
 
 .0121460 
 
 12.146 
 
 11.679 
 
 21.4 
 
 22.2 
 
 52 
 
 79786 
 
 1029 
 
 .0128970 
 
 12.897 
 
 12.401 
 
 20.7 
 
 21.4 
 
 53 
 
 78757 
 
 1083 
 
 .0137512 
 
 13.751 
 
 13.222 
 
 19.9 
 
 20.6 
 
 54 
 
 77674 
 
 1140 
 
 .0146767 
 
 14.677 
 
 14.112 
 
 19.2 
 
 19.8 
 
 55 
 
 76534 
 
 1202 
 
 .0157054 
 
 15.705 
 
 15.101 
 
 18.5 
 
 19.0 
 
 56 
 
 75332 
 
 1270 
 
 .0168587 
 
 16.859 
 
 16.211 
 
 17.8 
 
 18.2 
 
 57 
 
 74062 
 
 1342 
 
 .0181200 
 
 18.120 
 
 17.423 
 
 17.1 
 
 17.4 
 
 58 
 
 72720 
 
 1418 
 
 .0194994 
 
 19.499 
 
 18.749 
 
 16.4 
 
 16.6 
 
 59 
 
 71302 
 
 1501 
 
 .0210513 
 
 21.051 
 
 20.241 
 
 15.7 
 
 15.8 
 
 60 
 
 69801 
 
 1588 
 
 .0227504 
 
 22.750 
 
 21.875 
 
 15.0 
 
 15.1 
 
 61 
 
 68213 
 
 1681 
 
 .0246434 
 
 24.643 
 
 23.695 
 
 14 A 
 
 14.4 
 
 62 
 
 66532 
 
 1778 
 
 .0267240 
 
 26.724 
 
 25.696 
 
 13.7 
 
 13.6 
 
 63 
 
 64754 
 
 1880 
 
 .0290330 
 
 29.033 
 
 27.916 
 
 13.1 
 
 12.9 
 
 64 
 
 62874 
 
 1985 
 
 .0315711 
 
 31.571 
 
 30.357 
 
 12.4 
 
 12.2 
 
 65 
 
 60889 
 
 2094 
 
 .0343904 
 
 34.390 
 
 33.067 
 
 11.8 
 
 11.6 
 
305 
 
 TABLE I. 
 NATIONAL FRATERNAL CONGRESS TABLE OF MORTALITY Continued. 
 
 X 
 
 Age. 
 
 lx 
 
 Number 
 Living. 
 
 dx 
 
 Number 
 Dying. 
 
 Qx 
 
 Yearly Proba- 
 bility of Dying. 
 
 1000 q x 
 
 Yearly Death 
 Rate Per 1,000. 
 
 1000q x v x 
 
 Discounted 
 Yearly Rate 
 Per 1,000. 
 
 Cx 
 
 Expecta- 
 tion of Life. 
 
 Average 
 Duration 
 of Life. 
 
 66 
 
 58795 
 
 2206 
 
 .0375202 
 
 37.520 
 
 36.077 
 
 11.2 
 
 10.9 
 
 67 
 
 56589 
 
 2318 
 
 .0409620 
 
 40.962 
 
 39.387 
 
 10.7 
 
 10.3 
 
 68 
 
 54271 
 
 2430 
 
 .0447753 
 
 44.775 
 
 43.053 
 
 10.1 
 
 9.7 
 
 69 
 
 51841 
 
 2539 
 
 .0489767 
 
 48.977 
 
 47.093 
 
 9.5 
 
 9.1 
 
 70 
 
 49302 
 
 2645 
 
 .0536489 
 
 53.649 
 
 51.586 
 
 9.0 
 
 8.5 
 
 71 
 
 46657 
 
 2744 
 
 .0588122 
 
 58.812 
 
 56.550 
 
 8.5 
 
 7.9 
 
 72 
 
 43913 
 
 2832 
 
 .0644912 
 
 64.491 
 
 62.011 
 
 8.0 
 
 7.4 
 
 73 
 
 41081 
 
 2909 
 
 .0708113 
 
 70.811 
 
 68.087 
 
 7.5 
 
 6.9 
 
 74 
 
 38172 
 
 2969 
 
 .0777795 
 
 77.780 
 
 74.788 
 
 7.0 
 
 6.4 
 
 75 
 
 35203 
 
 3009 
 
 .0854757 
 
 85.476 
 
 82.188 
 
 6.6 
 
 6.0 
 
 76 
 
 32194 
 
 3026 
 
 .0939927 
 
 93.993 
 
 90.377 
 
 6.2 
 
 5.5 
 
 77 
 
 29168 
 
 3016 
 
 .1034010 
 
 103.401 
 
 99.424 
 
 5.7 
 
 5.1 
 
 78 
 
 26152 
 
 2977 
 
 .1138345 
 
 113.835 
 
 109.457 
 
 5.3 
 
 4.7 
 
 79 
 
 23175 
 
 2905 
 
 . 1253506 
 
 125.351 
 
 120.530 
 
 5.0 
 
 4.3 
 
 80 
 
 20270 
 
 2799 
 
 .1380858 
 
 138.086 
 
 132.775 
 
 4.6 
 
 4.0 
 
 81 
 
 17471 
 
 2659 
 
 .1521951 
 
 152.195 
 
 146.341 
 
 4.3 
 
 3.6 
 
 82 
 
 14812 
 
 2485 
 
 . 1677694 
 
 167.769 
 
 161.316 
 
 3.9 
 
 3.3 
 
 83 
 
 12327 
 
 2280 
 
 .1849599 
 
 184.960 
 
 177.846 
 
 3.6 
 
 3.0 
 
 84 
 
 10047 
 
 2050 
 
 .2040410 
 
 204.041 
 
 196.193 
 
 3.3 
 
 2.8 
 
 85 
 
 7997 
 
 1800 
 
 .2250844 
 
 225.084 
 
 216.427 
 
 3.0 
 
 2.5 
 
 86 
 
 6197 
 
 1539 
 
 .2483460 
 
 248.346 
 
 238.794 
 
 2.8 
 
 2.3 
 
 87 
 
 4658 
 
 1277 
 
 .2741520 
 
 274.152 
 
 263.608 
 
 2.5 
 
 2.0 
 
 88 
 
 3381 
 
 1023 
 
 .3025732 
 
 302.573 
 
 290.935 
 
 2.3 
 
 .8 
 
 89 
 
 2358 
 
 788 
 
 .3341815 
 
 334.182 
 
 321.329 
 
 2.1 
 
 .7 
 
 90 
 
 1570 
 
 579 
 
 .3687898 
 
 368.790 
 
 354.606 
 
 1.9 
 
 .5 
 
 91 
 
 991 
 
 404 
 
 .4076690 
 
 407.669 
 
 391.989 
 
 1.7 
 
 .4 
 
 92 
 
 587 
 
 264 
 
 .4497445 
 
 449.745 
 
 432.447 
 
 1.5 
 
 .2 
 
 93 
 
 323 
 
 161 
 
 .4984520 
 
 498 . 452 
 
 479.281 
 
 1.4 
 
 .0 
 
 94 
 
 162 
 
 89 
 
 .5493827 
 
 549.383 
 
 528.253 
 
 1.2 
 
 .9 
 
 95 
 
 73 
 
 44 
 
 .6027397 
 
 602.740 
 
 579.557 
 
 1.1 
 
 .8 
 
 96 
 
 29 
 
 19 
 
 .6551724 
 
 655.172 
 
 629.973 
 
 1.0 
 
 .8 
 
 97 
 
 10 
 
 7 
 
 .7000000 
 
 700.000 
 
 673.077' 
 
 .8 
 
 .7 
 
 98 
 
 3 
 
 3 
 
 1.0000000 
 
 1000.000 
 
 961.538 
 
 .5 
 
 .5 
 
 
 
 
 
 
 
 
 
306 
 
 TABLE II. 
 
 FRATERNAL EXPERIENCE FOUR PER CENT. 
 Commutation Columns. 
 
 X 
 
 v x 
 
 D x = l x v* 
 
 N X = SD X 
 
 S X = SN X 
 
 C x 
 
 d x v* +1 
 
 M X =SC X 
 
 R X = ZM, 
 
 20 
 21 
 22 
 23 
 24 
 
 0.456387 
 .438834 
 .421955 
 .405726 
 .390121 
 
 45638.694620 
 43663.943411 
 41773.161323 
 39962.826653 
 38229.563757 
 
 935208.44679 
 889569.75217 
 845905.80876 
 804132.64744 
 764169.82079 
 
 16198892.4659 
 15263684.0191 
 14374114.2669 
 13528208.4581 
 12724075.8107 
 
 219.416801 
 211.399649 
 203.674619 
 196.231102 
 189.433985 
 
 9669.13897 
 9449.72217 
 9238.32252 
 9034.64791 
 8838.41680 
 
 312174.1212 
 302504.9822 
 293055.2600 
 283816.9375 
 274782.2896 
 
 25 
 26 
 27 
 28 
 29 
 
 .375117 
 .360689 
 .346817 
 .333477 
 .320651 
 
 36569.761935 
 34980.363189 
 33458.088154 
 32000.164667 
 30603.612321 
 
 725940.25703 
 689370.49509 
 654390.13190 
 620932.04375 
 588931.87908 
 
 11959905.9899 
 11233965.7329 
 10544595.2578 
 9890205.1059 
 9269273.0621 
 
 182.869441 
 176.876451 
 171.073943 
 165.776781 
 160.942345 
 
 8648.98282 
 8466.11338 
 8289.23693 
 8118.16298 
 7952.38620 
 
 265943.8728 
 257294.8900 
 248828.7766 
 240539.5397 
 232421.3767 
 
 30 
 31 
 32 
 33 
 34 
 
 .308319 
 .296460 
 .285058 
 .274094 
 .263552 
 
 29265.607964 
 27983.773102 
 26755.538255 
 25578.468237 
 24450.254452 
 
 558328.26676 
 529062.65880 
 501078.88570 
 474323.34744 
 448744.87920 
 
 8680341 . 1830 
 8122012.9163 
 7592950.2575 
 7091871.3718 
 6617548.0243 
 
 156.234556 
 151.935882 
 148.010854 
 144.426545 
 141.152417 
 
 7791.44386 
 7635.20930 
 7483.27342 
 7335.26257 
 7190.83602 
 
 224468.9905 
 216677.5466 
 209042.3373 
 201559.0639 
 194223.8031 
 
 35 
 36 
 37 
 38 
 39 
 
 .253415 
 .243669 
 .234297 
 .225285 
 .216621 
 
 23368.707633 
 22331.751021 
 2133Z. 413942 
 20383.600485 
 19468.343764 
 
 424294.62475 
 400925.91712 
 378594.16610 
 357256.75216 
 336873.15167 
 
 6168803.1451 
 5744508.5204 
 5343582.6033 
 4964988.4373 
 4607731.6850 
 
 138.160165 
 135.423578 
 133 . 143690 
 131.2720SS 
 129.555786 
 
 7049.68360 
 6911.52344 
 6776.09986 
 6642.95617 
 6511.68408 
 
 187032.9653 
 179983.2817 
 173071.7583 
 166295.6584 
 159652.7022 
 
 40 
 41 
 42 
 43 
 44 
 
 .208289 
 .200278 
 . 192575 
 .185168 
 . 178046 
 
 18590.005525 
 17746.827439 
 16937.157699 
 16159.258675 
 15411.691911 
 
 317404.80791 
 298814.80238 
 281067.97494 
 264130.81724 
 247971.55857 
 
 4270858.5333 
 3953453.7254 
 3654638.9231 
 3373570.9481 
 3109440.1309 
 
 128.177874 
 127.099454 
 126.409SS2 
 126.056815 
 125.659634 
 
 6382.12830 
 6253.95042 
 6126.85097 
 6000.38109 
 5874.32427 
 
 153141.0182 
 146758.8899 
 140504.9394 
 134378.0885 
 128377.7074 
 
 45 
 46 
 47 
 48 
 49 
 
 .171198 
 . 164614 
 . 158283 
 .152195 
 . 146341 
 
 14693.274895 
 14002.877792 
 13339.262351 
 12701 . 109702 
 12087.191143 
 
 232559.86666 
 217866.59176 
 203863.71397 
 190524.45162 
 177823.34192 
 
 2861468.5723 
 2628908.7056 
 2411042.1139 
 2207178.3999 
 2016653.9483 
 
 125.271146 
 125.043219 
 125.104097 
 125.414340 
 125.797078 
 
 5748.66464 
 5623.39349 
 5498.35028 
 5373.24618 
 5247.83184 
 
 122503.3831 
 116754.7185 
 111131.3250 
 105632.9747 
 100259.7285 
 
 50 
 51 
 52 
 53 
 54 
 
 .140713 
 .135301 
 .130097 
 . 125093 
 .120282 
 
 11496.502098 
 10927.822887 
 10379.897122 
 9851.949610 
 9342.763354 
 
 165736.15078 
 154239.64868 
 143311.82579 
 132931.92867 
 123079.97906 
 
 1838830.6064 
 1673094.4556 
 1518854.8069 
 1375542.9811 
 1242611.0525 
 
 126.506053 
 127.624885 
 128.720700 
 130.265117 
 131.847285 
 
 5122.03476 
 4995.52871 
 4867.90382 
 4739.18312 
 4608.91801 
 
 95011.8967 
 89889.8619 
 84894.3332 
 80026.4294 
 75287.2463 
 
 55 
 
 56 
 57 
 58 
 59 
 
 .115656 
 .111207 
 .106930 
 .102817 
 .098863 
 
 8851.579017 
 8377.462587 
 7919.451359 
 7476.876219 
 7049.116582 
 
 113737.21570 
 104885.63669 
 96508.17410 
 88588.72274 
 81111.84652 
 
 1119531.0734 
 1005793.8577 
 900908.2210 
 804400.0469 
 715811.3242 
 
 133.671083 
 135.801129 
 137.980857 
 140.187475 
 142.685662 
 
 4477.07072 
 4343.39964 
 4207.59851 
 4069.61765 
 3929.43018 
 
 70678.3283 
 66201.2575 
 61857.8579 
 57650.2594 
 53580.6417 
 
 60 
 61 
 62 
 63 
 64 
 
 .095060 
 .091404 
 .087889 
 .084508 
 .081258 
 
 6635.311052 
 6234.956860 
 5847.409949 
 5472.253719 
 5109.017328 
 
 74062.72994 
 67427.41889 
 61192.46203 
 55345.05208 
 49872.79836 
 
 634699.4776 
 560636.7477 
 493209.3288 
 432016.8668 
 376671.8147 
 
 145.149920 
 147.740878 
 150.255847 
 152.765095 
 155.093450 
 
 3786.74452 
 3641.59460 
 3493.85372 
 3343.59787 
 3190.83278 
 
 49651.2116 
 45864.4671 
 42222.8725 
 38729.0187 
 35385.4209 
 
 65 
 
 .078133 
 
 4757.423211 
 
 44763.78103 
 
 326799.0163 
 
 157.317227 
 
 3035.73933 
 
 32194.5881 
 
307 
 
 TABLE II. 
 
 FRATERNAL EXPERIENCE FOUR PER CENT Continued. 
 Commutation Columns. 
 
 X 
 
 v x 
 
 D x = l x v* 
 
 N X = SD X 
 
 S X = SN X 
 
 c x = 
 
 C1 X V* +1 
 
 M X = SC X 
 
 R X = SM X 
 
 66 
 67 
 68 
 69 
 
 .075128 
 .072238 
 .069460 
 .066788 
 
 4417.128168 
 4087.881392 
 3769.647591 
 3462.365875 
 
 40006.35782 
 35589.22965 
 31501.34862 
 27731.70067 
 
 282035.2353 
 242028.8775 
 206439.6478 
 174938.2996 
 
 159.357231 
 161.007594 
 162.295270 
 163.053059 
 
 2878.42210 
 2719.06487 
 2558.05727 
 2395.76200 
 
 29158.8488 
 26280.4267 
 23561.3618 
 21003.3045 
 
 70 
 71 
 72 
 73 
 74 
 
 .064219 
 .061749 
 .059374 
 .057091 
 .054895 
 
 3166.144898 
 2881.042869 
 2607.310048 
 2345.347708 
 2095.452434 
 
 24269.33480 
 21103.18990 
 18222.14703 
 15614.83698 
 13269.48927 
 
 147206.5989 
 122937.2641 
 101834.0742 
 83611.9272 
 67997.0902 
 
 163.327226 
 162.923480 
 161.681184 
 159.689593 
 156.714705 
 
 2232.70894 
 2069.38172 
 1906.45824 
 1744.77706 
 1585.08746 
 
 18607.5425 
 16374.8336 
 14305.4519 
 12398.9936 
 10654.2166 
 
 75 
 76 
 
 77 
 78 
 79 
 
 .052784 
 .050754 
 .048801 
 .046924 
 .045120 
 
 1858.143405 
 1633.958993 
 1423.441179 
 1227.169188 
 1045.649028 
 
 11174.03684 
 9315.89343 
 7681.93444 
 6258.49326 
 5031.32407 
 
 54727.6009 
 43553.5641 
 34237.6707 
 26555.7362 
 20297.2430 
 
 152.717358 
 147.673238 
 141.524253 
 134.321344 
 126.031467 
 
 1428.37276 
 1275.65540 
 1127.98216 
 986.45791 
 852.13656 
 
 9069.1291 
 7640.7564 
 6365.1010 
 5237.1188 
 4250.6609 
 
 80 
 81 
 
 82 
 83 
 
 84 
 
 .043384 
 .041716 
 .040111 
 .038569 
 .037085 
 
 879.400291 
 728.814963 
 594.127809 
 475.433998 
 372.594038 
 
 3985.67505 
 3106.27475 
 2377.45979 
 1783.33198 
 1307.89798 
 
 15265.9189 
 11280.2438 
 8173.9691 
 5796.5093 
 4013.1773 
 
 116.762239 
 106.655809 
 95.842742 
 84.554037 
 73.100445 
 
 726.10510 
 609.34286 
 502.68705 
 406.84431 
 322.29027 
 
 3398.5243 
 2672.4192 
 2063.0764 
 1560.3893 
 1153.5450 
 
 85 
 86 
 87 
 88 
 89 
 
 .035659 
 .034287 
 .032969 
 .031701 
 .030481 
 
 285.163053 
 212.478170 
 153,567377 
 107.179398 
 71.874792 
 
 935.30395 
 650.14089 
 437.66272 
 284.09535 
 176.91595 
 
 2705.2793 
 1769.9754 
 1119.8345 
 682.1718 
 398.0764 
 
 61.717074 
 50.738556 
 40.481541 
 31 . 182321 
 23.095410 
 
 249.18982 
 187.47275 
 136.73419 
 96.25265 
 65.07033 
 
 831.2547 
 582.0649 
 394.5922 
 257.8580 
 161.6053 
 
 90 
 91 
 92 
 
 93 
 94 
 
 .029309 
 .028182 
 .027098 
 .026056 
 .025053 
 
 46.014967 
 27.927996 
 15.906363 
 8.415927 
 4.058646 
 
 105.04116 
 59.02619 
 31.09819 
 15.19183 
 6.77590 
 
 221 . 1605 
 116.1193 
 57.0931 
 25.9949 
 10.8031 
 
 16.317164 
 10.947480 
 6.878653 
 4.033592 
 2 . 143990 
 
 41.97492 
 25.65776 
 14,71028 
 7.83163 
 3.79803 
 
 96.5350 
 54.5601 
 28.9023 
 14.1920 
 6.3604 
 
 95 
 96 
 97 
 
 98 
 
 .024090 
 .023163 
 .022272 
 .021416 
 
 1.758554 
 0.671734 
 0.222724 
 0.064247 
 
 2.71726 
 0.95870 
 0.28697 
 0.06425 
 
 4.0272 
 1.3099 
 .3512 
 .0642 
 
 1.019183 
 0.423175 
 0.149910 
 0.061776 
 
 1.65404 
 0.63486 
 0.21169 
 0.06178 
 
 2.5624 
 .9083 
 .2735 
 .0618 
 
308 
 
 TABLE III. 
 FRATERNAL EXPERIENCE FOUR PER GENT. 
 
 X 
 
 a N * 
 
 A M * 
 
 p= M x 
 
 % o 
 
 *"f 11? 
 
 S ' H| 
 
 O Z (K 
 
 100 N 70 
 
 - ITO-X^X 
 
 Value of? 1.00 
 tu Age 70. 
 
 X D x 
 Life 
 Annuity. 
 
 * D x 
 
 Whole Lite 
 Sin ;le 
 Premium. 
 
 * N x 
 Annual 
 Premium. 
 
 N X -N 70 
 
 Annuity of $100, 
 beginning at 70. 
 
 20 
 
 20.491G 
 
 211.863 
 
 10.34 
 
 8.16 
 
 2.66 
 
 19.960 
 
 21 
 
 20.3731 
 
 216.420 
 
 10.62 
 
 8.34 
 
 2.80 
 
 19.817 
 
 22 
 
 20.2500 
 
 221.155 
 
 10.92 
 
 8.53 
 
 2.95 
 
 19.669 
 
 23 
 
 20.1220 
 
 226.077 
 
 11.24 
 
 8.72 
 
 3.11 
 
 19.515 
 
 24 
 
 19.9890 
 
 231.193 
 
 11.57 
 
 8.93 
 
 3.28 
 
 19.354 
 
 25 
 
 19.8508 
 
 236.507 
 
 11.91 
 
 9.14 
 
 3.46 
 
 19.187 
 
 26 
 
 19.7074 
 
 242.025 
 
 12.28 
 
 9.37 
 
 3.65 
 
 19.014 
 
 27 
 
 19.5585 
 
 247.750 
 
 12.67 
 
 9.61 
 
 3.85 
 
 18.833 
 
 28 
 
 19.4040 
 
 253.691 
 
 13.07 
 
 9.86 
 
 4.07 
 
 18.646 
 
 29 
 
 19.2439 
 
 259.851 
 
 13.50 
 
 10.13 
 
 4.30 
 
 18.451 
 
 30 
 
 19.0780 
 
 266.232 
 
 13.96 
 
 10.41 
 
 4.54 
 
 18.249 
 
 31 
 
 18.9060 
 
 272.844 
 
 14.43 
 
 10.70 
 
 4.81 
 
 18.039 
 
 32 
 
 18.7280 
 
 279.691 
 
 14.93 
 
 11.01 
 
 5.09 
 
 17.821 
 
 33 
 
 18.5439 
 
 286.775 
 
 15.47 
 
 11.34 
 
 5.39 
 
 17.595 
 
 34 
 
 18.3534 
 
 294.101 
 
 16.02 
 
 11.68 
 
 5.71 
 
 17.361 
 
 35 
 
 18.1565 
 
 301.672 
 
 16.62 
 
 12.04 
 
 6.07 
 
 17.118 
 
 36 
 
 17.9532 
 
 309.493 
 
 17.24 
 
 12.42 
 
 6.44 
 
 16.866 
 
 37 
 
 17.7482 
 
 317.569 
 
 17.90 
 
 12.82 
 
 6.85 
 
 16.606 
 
 38 
 
 17.5267 
 
 325.897 
 
 18.59 
 
 13.24 
 
 7.29 
 
 16.336 
 
 39 
 
 17.3036 
 
 334.476 
 
 19.33 
 
 13.69 
 
 7.76 
 
 16.057 
 
 40 
 
 17.0740 
 
 343.310 
 
 20.11 
 
 14.16 
 
 8.28 
 
 15.768 
 
 41 
 
 16.8376 
 
 352.398 
 
 20.93 
 
 14.65 
 
 8.84 
 
 15.470 
 
 42 
 
 16.5948 
 
 361.740 
 
 21.80 
 
 15.16 
 
 9.45 
 
 15.162 
 
 43 
 
 16.3455 
 
 371.328 
 
 22.72 
 
 15.71 
 
 10.12 
 
 14.844 
 
 44 
 
 16.0898 
 
 381.160 
 
 23.69 
 
 16.28 
 
 10.85 
 
 14.515 
 
 45 
 
 15.8276 
 
 391.245 
 
 24.72 
 
 16.88 
 
 11.65 
 
 14.176 
 
 46 
 
 15.5587 
 
 401.588 
 
 25.81 
 
 17.51 
 
 12.54 
 
 13.826 
 
 47 
 
 15.2830 
 
 412.193 
 
 26.97 
 
 18.18 
 
 13.51 
 
 13.464 
 
 48 
 
 15.0006 
 
 423.053 
 
 28.20 
 
 18.89 
 
 14.60 
 
 13.090 
 
 49 
 
 14.7117 
 
 434.165 
 
 29.51 
 
 19.64 
 
 15.81 
 
 12.704 
 
 50 
 
 14.4162 
 
 445.530 
 
 30.91 
 
 20.42 
 
 17.16 
 
 12.305 
 
 51 
 
 14.1144 
 
 457.138 
 
 32.39 
 
 21.26 
 
 18.67 
 
 11.893 
 
 52 
 
 13.8067 
 
 468.974 
 
 33.97 
 
 22.14 
 
 20.39 
 
 11.469 
 
 53 
 
 13.4930 
 
 481.040 
 
 35.65 
 
 23.07 
 
 22.33 
 
 11.030 
 
 54 
 
 13.1738 
 
 493.314 
 
 37.45 
 
 24.05 
 
 24.56 
 
 10.576 ' 
 
 55 
 
 12.8494 
 
 505.793 
 
 39.36 
 
 25.09 
 
 27.13 
 
 10.108 
 
 56 
 
 12.5200 
 
 518.462 
 
 41.41 
 
 26.18 
 
 
 9.623 
 
 57 
 
 12 . 1862 
 
 531.299 
 
 43.60 
 
 27.34 
 
 
 9.122 
 
 58 
 
 11.8484 
 
 544.294 
 
 45.94 
 
 28.56 
 
 
 8.602 
 
 59 
 
 11.5067. 
 
 557.436 
 
 48.45 
 
 29.85 
 
 
 8.064 
 
 60 
 
 11.1619 
 
 570.696 
 
 51.13 
 
 31.21 
 
 
 7.504 
 
 61 
 
 10.8144 
 
 584.061 
 
 54.01 
 
 32.64 
 
 
 6.922 
 
 62 
 
 10.4649 
 
 597.505 
 
 57.10 
 
 34.16 
 
 
 6.315 
 
 63 
 
 10.1138 
 
 611.009 
 
 . 60.41 
 
 35.75 
 
 
 5.679 
 
 64 
 
 9.7617 
 
 624.549 
 
 63.98 
 
 37.42 
 
 
 5.012 
 
309 
 
 TABLE III. . 
 FRATERNAL EXPERIENCE FOUR PER CENT Continued. 
 
 X 
 
 N x 
 
 ai= D7 
 
 Life 
 
 Annuity. 
 
 A - Mx 
 X ~DT 
 
 Whole Life 
 Single 
 Premium. 
 
 P _M 
 Px ~N^ 
 
 Annual 
 Premium. 
 
 % 
 
 L'fc a eg 
 
 L 31$ 
 
 8* 
 
 100 N 70 
 
 70-xftx 
 
 Value of $1.00 
 to Age 70. 
 
 N X -N 70 
 
 Annuity of $100, 
 beginning at 70. 
 
 65 
 
 9.4092 
 
 638.106 
 
 67.82 
 
 39.18 
 
 
 4.308 
 
 66 
 
 9.0571 
 
 651.650 
 
 71.95 
 
 41.03 
 
 
 3.563 
 
 67 
 
 8.7060 
 
 665.153 
 
 76.40 
 
 42.96 
 
 
 2.769 
 
 68 
 
 8.3566 
 
 678.593 
 
 81.21 
 
 44.99 
 
 
 1.919 
 
 69 
 
 8.0095 
 
 691.944 
 
 86.39 
 
 47.09 
 
 
 1.000 
 
 70 
 
 7.6653 
 
 705.182 
 
 92.00 
 
 
 
 
 71 
 
 7.3248 
 
 718.275 
 
 98.06 
 
 
 
 
 72 
 
 6.9889 
 
 731.197 
 
 104.62 
 
 
 
 
 73 
 
 6.6578 
 
 743.931 
 
 111.74 
 
 
 
 
 74 
 
 6.3325 
 
 756.442 
 
 119.45 
 
 
 
 
 75 
 
 6.0135 
 
 768.710 
 
 127.83 
 
 
 
 
 76 
 
 5.7014 
 
 780.715 
 
 136.93 
 
 
 
 
 77 
 
 5.3967 
 
 792.433 
 
 146.83 
 
 
 
 
 78 
 
 5.0999 
 
 803.848 
 
 157.62 
 
 
 
 
 79 
 
 4.8117 
 
 814.936 
 
 169.37 
 
 
 
 
 80 
 
 4.5323 
 
 825.682 
 
 182.18 
 
 
 
 
 81 
 
 4.2621 
 
 836.074 
 
 196.16 
 
 
 
 
 82 
 
 4.0016 
 
 846.093 
 
 211.44 
 
 
 
 
 83 
 
 3.7510 
 
 855.733 
 
 228.13 
 
 
 
 
 84 
 
 3.5102 
 
 864.990 
 
 246.42 
 
 
 
 
 85 
 
 3.2799 
 
 873.850 
 
 266.43 
 
 
 
 
 86 
 
 3.0598 
 
 882.315 
 
 288.36 
 
 
 
 
 87 
 
 2.8500 
 
 890.386 
 
 312.42 
 
 
 
 
 88 
 
 2.6507 
 
 898.052 
 
 338.80 
 
 
 
 
 89 
 
 2.4614 
 
 905.329 
 
 367.81 
 
 
 
 
 90 
 
 2.2828 
 
 912.202 
 
 399.60 
 
 
 
 
 91 
 
 2.1135 
 
 918.711 
 
 434.69 
 
 
 
 
 92 
 
 1.9551 
 
 924.805 
 
 473.02 
 
 
 
 
 93 
 
 1.8051 
 
 930.572 
 
 515.52 
 
 
 
 
 94 
 
 1.6695 
 
 935.789 
 
 560.51 
 
 
 
 
 95 
 
 1.5452 
 
 940.571 
 
 608.71 
 
 
 
 
 96 
 
 1.4272 
 
 945 . 107 
 
 662.21 
 
 
 
 
 97 
 
 1.2885 
 
 950.444 
 
 737.64 
 
 
 
 
 98 
 
 1.0000 
 
 961.538 
 
 961.54 
 
 
 
 
TABLE IV. 
 FRATERNAL EXPERIENCE FOUR PER CENT. 
 
 X 
 
 1000 M x 
 
 1000 M x 
 
 M x M x +20 
 
 M X -M X+10 
 
 M x -M x+6 
 
 N X -N X+20 
 
 N X -N X+10 
 
 N X -N X+20 
 
 N X -N X+10 
 
 N x -N x+5 
 
 Age. 
 
 20 Payment Life. 
 
 10 Payment Life. 
 
 20 Year Term 
 Premium. 
 
 10 Year Term 
 Premium. 
 
 5 Year Term 
 Premium. 
 
 20 
 
 15.65 
 
 25.66 
 
 5.32 
 
 4.98 
 
 4.97 
 
 21 
 
 16.00 
 
 26.21 
 
 5.41 
 
 5.03 
 
 5.01 
 
 22 
 
 16.36 
 
 26.79 
 
 5.51 
 
 5.09 
 
 5.06 
 
 23 
 
 16.73 
 
 27.39 
 
 5.62 
 
 5.15 
 
 5.11 
 
 24 
 
 17.12 
 
 28.02 
 
 5.74 
 
 5.22 
 
 5.16 
 
 25 
 
 17.53 
 
 28.67 
 
 5.88 
 
 5.30 
 
 5.22 
 
 26 
 
 17.96 
 
 29.35 
 
 6.03 
 
 5.39 
 
 5.29 
 
 27 
 
 18.40 
 
 30.06 
 
 6.19 
 
 5.49 
 
 5.36 
 
 28 
 
 18.86 
 
 30.79 
 
 6.38 
 
 5.59 
 
 5.45 
 
 29 
 
 19.34 
 
 31.55 
 
 6.58 
 
 5.72 
 
 5.54 
 
 30 
 
 19.85 
 
 32.34 
 
 6.80 
 
 5.85 
 
 5.65 
 
 31 
 
 20.37 
 
 33.16 
 
 7.04 
 
 6.00 
 
 5.76 
 
 32 
 
 20.92 
 
 34.01 
 
 7.31 
 
 6.17 
 
 5.89 
 
 33 
 
 21.49 
 
 34.90 
 
 7.60 
 
 6.35 
 
 6.04 
 
 34 
 
 22.08 
 
 35.82 
 
 7.93 
 
 6.56 
 
 6.20 
 
 35 
 
 22.70 
 
 36.77 
 
 8.28 
 
 6.79 
 
 6.38 
 
 36 
 
 23.35 
 
 37.76 
 
 8.67 
 
 7.04 
 
 6.58 
 
 37 
 
 24.02 
 
 38.78 
 
 9.11 
 
 7.31 
 
 6.80 
 
 38 
 
 24.73 
 
 39.84 
 
 9.58 
 
 7.62 
 
 7.05 
 
 39 
 
 25.46 
 
 40.94 
 
 10.10 
 
 7.95 
 
 7.32 
 
 40 
 
 26.23 
 
 42.08 
 
 10.67 
 
 8.31 
 
 7.63 
 
 41 
 
 27.03 
 
 43.26 
 
 11.29 
 
 8.70 
 
 7.96 
 
 42 
 
 27.87 
 
 44.48 
 
 11.98 
 
 9.14 
 
 8.32 
 
 43 
 
 28.74 
 
 45.74 
 
 12.72 
 
 9.61 
 
 8.71 
 
 44 
 
 29.65 
 
 47.04 
 
 13.55 
 
 10.13 
 
 9.13 
 
 45 
 
 30.61 
 
 48.38 
 
 14.45 
 
 10.70 
 
 9.59 
 
 46 
 
 31.62 
 
 49.77 
 
 15.43 
 
 11.33 
 
 10.09 
 
 47 
 
 32.67 
 
 51.22 
 
 16.52 
 
 12.02 
 
 10.65 
 
 48 
 
 33.79 
 
 52.71 
 
 17.70 
 
 12.79 
 
 11.27 
 
 49 
 
 34.96 
 
 54.26 
 
 19.00 
 
 13.63 
 
 11.95 
 
 50 
 
 36.21 
 
 55.87 
 
 20.42 
 
 14.57 
 
 12.70 
 
 51 
 
 37.52 
 
 57.54 
 
 21.98 
 
 15.60 
 
 13.53 
 
 52 
 
 38.92 
 
 59.28 
 
 23.67 
 
 16.73 
 
 14.46 
 
 53 
 
 40.40 
 
 61.08 
 
 25.52 
 
 17.99 
 
 15.48 
 
 54 
 
 41.97 
 
 62.96 
 
 27.54 
 
 19.37 
 
 16.61 
 
 55 
 
 43.65 
 
 64.91 
 
 29.73 
 
 20.90 
 
 17.86 
 
 56 
 
 45.45 
 
 66.95 
 
 32.10 
 
 22.58 
 
 19.24 
 
 57 
 
 47.37 
 
 69.07 
 
 34.67 
 
 24.43 
 
 20.77 
 
 58 
 
 49.43 
 
 71.29 
 
 37.45 
 
 26.48 
 
 22.46 
 
 59 
 
 51.65 
 
 73.61 
 
 40.45 
 
 28.73 
 
 24.34 
 
 60 
 
 54.04 
 
 76.05 
 
 43.68 
 
 31.21 
 
 26.41 
 
 61 
 
 56.77 
 
 78.61 
 
 47.30 
 
 33.93 
 
 28.71 
 
 62 
 
 59.41 
 
 81.31 
 
 50.86 
 
 36.94 
 
 31.25 
 
 63 
 
 62.43 
 
 84.15 
 
 54.83 
 
 40.24 
 
 34.07 
 
 64 
 
 65.74 
 
 87.17 
 
 59.07 
 
 43.87 
 
 37.19 
 
 65 
 
 69.27 
 
 90.38 
 
 63.59 
 
 47.85 
 
 40.64 
 
 66 
 
 73.26 
 
 93.79 
 
 68.50 
 
 52.22 
 
 42.60 
 
 67 
 
 77.35 
 
 97.43 
 
 73.46 
 
 57.01 
 
 44.64 
 
 68 
 
 81.95 
 
 101.34 
 
 78.86 
 
 62.26 
 
 46.79 
 
 69 
 
 86.96 
 
 105.54 
 
 84.60 
 
 68 00 
 
 49.03 
 
311 
 
 TABLE V. 
 MODIFIED COMMUTATION COLUMNS FOR MONTHLY PREMIUMS. 
 
 National Fraternal Congress Table of Mortality and 4 per cent interest. 
 
 Age 
 
 N 12 
 
 1N Z 
 
 log.N- 
 
 MJ' 
 
 log. M^ 2 
 
 Age 
 
 N 
 
 log. N^ 2 
 
 M- 
 
 log. M l x 2 
 
 20 
 
 914228 
 
 5.961055 
 
 9846.39 
 
 3.99328 
 
 60 
 
 70996.2 
 
 .851235 
 
 3856.17 
 
 .58616 
 
 21 
 
 8(59496 
 
 .939268 
 
 9622.97 
 
 .98331 
 
 61 
 
 64545.4 
 
 .809865 
 
 3708.36 
 
 .56919 
 
 22 
 
 S26700 
 
 .917348 
 
 9407.69 
 
 .97348 
 
 62 
 
 58489 . 1 
 
 .767075 
 
 3557.91 
 
 .55119 
 
 23 
 
 785758 
 
 .895289 
 
 9200.28 
 
 .96380 
 
 63 
 
 52814.6 
 
 .722754 
 
 3404.90 
 
 .53210 
 
 24 
 
 746591 
 
 .873083 
 
 9000.47 
 
 .95427 
 
 64 
 
 47509.8 
 
 .676783 
 
 3249.33 
 
 .51179 
 
 25 
 
 709123 
 
 .850722 
 
 8807.55 
 
 .94486 
 
 65 
 
 42563.0 
 
 .629032 
 
 3091.40 
 
 .49016 
 
 26 
 
 673283 
 
 .828198 
 
 8621.32 
 
 .93557 
 
 66 
 
 37962.6 
 
 .579356 
 
 2931.20 
 
 .46705 
 
 27 
 
 639002 
 
 .805502 
 
 8441.20 
 
 .92640 
 
 67 
 
 33697.4 
 
 .527596 
 
 2768.91 
 
 .44231 
 
 28 
 
 606213 
 
 .782625 
 
 8266.98 
 
 .91735 
 
 68 
 
 29756.5 
 
 .473582 
 
 2604.96 
 
 .41581 
 
 29 
 
 574854 
 
 .759558 
 
 8098.17 
 
 .90839 
 
 69 
 
 26128.8 
 
 .417120 
 
 2439.69 
 
 .38734 
 
 30 
 
 544865 
 
 .736289 
 
 7934.29 
 
 .89951 
 
 70 
 
 22803.3 
 
 .357998 
 
 2273.64 
 
 .35671 
 
 31 
 
 516188 
 
 .712808 
 
 7775.19 
 
 .89071 
 
 71 
 
 19768.9 
 
 .295982 
 
 2107.32 
 
 .32373 
 
 32 
 
 488768 
 
 .689103 
 
 7620.47 
 
 .88198 
 
 72 
 
 17014.4 
 
 .230817 
 
 1941.41 
 
 .28812 
 
 33 
 
 462553 
 
 .665161 
 
 7469.75 
 
 .87331 
 
 73 
 
 14528.2 
 
 .162212 
 
 1776.77 
 
 .24964 
 
 34 
 
 437493 
 
 .640971 
 
 7322.66 
 
 .86467 
 
 74 
 
 12298.5 
 
 .089852 
 
 1614.15 
 
 .20796 
 
 35 
 
 413539 
 
 .616517 
 
 7178.93 
 
 .85606 
 
 75 
 
 10312.9 
 
 .013381 
 
 1454.56 
 
 . 16273 
 
 36 
 
 390646 
 
 .591783 
 
 7038.24 
 
 .84746 
 
 76 
 
 8558.49 
 
 3.932397 
 
 1299.04 
 
 .11361 
 
 37 
 
 368771 
 
 .566757 
 
 6900.32 
 
 .83887 
 
 77 
 
 7022.00 
 
 .846461 
 
 1148.66 
 
 .06024 
 
 38 
 
 347872 
 
 .541419 
 
 6764.74 
 
 .83025 
 
 78 
 
 5689.46 
 
 .755071 
 
 1004.54 
 
 .00195 
 
 39 
 
 327909 
 
 .515753 
 
 6631.06 
 
 .82159 
 
 79 
 
 4546.38 
 
 .657666 
 
 867.761 
 
 2.93840 
 
 40 
 
 308844 
 
 .489739 
 
 6499 . 14 
 
 .81285 
 
 80 
 
 3577.77 
 
 .553612 
 
 739.416 
 
 .86889 
 
 41 
 
 290641 
 
 .463357 
 
 6368.60 
 
 .80404 
 
 81 
 
 2768 . 17 
 
 .442193 
 
 620.513 
 
 .79275 
 
 42 
 
 273266 
 
 .436586 
 
 6239 . 19 
 
 .79513 
 
 82 
 
 2101.80 
 
 .322591 
 
 511.903 
 
 .70919 
 
 43 
 
 256686 
 
 .409402 
 
 6110.39 
 
 .78607 
 
 83 
 
 1562.71 
 
 . 193878 
 
 414.303 
 
 .61731 
 
 44 
 
 240870 
 
 .381783 
 
 5982.02 
 
 .77685 
 
 84 
 
 1134.98 
 
 .054988 
 
 328.199 
 
 .51614 
 
 45 
 
 225788 
 
 .353701 
 
 5854.06 
 
 .76746 
 
 85 
 
 802.943 
 
 2.904685 
 
 253.758 
 
 .40442 
 
 46 
 
 211412 
 
 .325130 
 
 5726.48 
 
 .75789 
 
 86 
 
 551.505 
 
 .741549 
 
 190.910 
 
 .28083 
 
 47 
 
 197714 
 
 .296037 
 
 5599 . 16 
 
 .74813 
 
 87 
 
 366.366 
 
 .563915 
 
 139.241 
 
 .14377 
 
 48 
 
 184668 
 
 .266392 
 
 5471.76 
 
 .73813 
 
 88 
 
 234.330 
 
 .369828 
 
 98.0174 
 
 1.99130 
 
 49 
 
 172249 
 
 .236157 
 
 5344.04 
 
 .72787 
 
 89 
 
 143.539 
 
 .156971 
 
 66.2633 
 
 .82127 
 
 50 
 
 160433 
 
 .205294 
 
 5215.94 
 
 .71733 
 
 90 
 
 83.671 
 
 1.922575 
 
 42.7445 
 
 .63088 
 
 51 
 
 149198 
 
 . 173763 
 
 5087.11 
 
 .70647 
 
 91 
 
 46.055 
 
 .663277 
 
 26.1282 
 
 .41711 
 
 52 
 
 138522 
 
 .141519 
 
 4957.15 
 
 .69523 
 
 92 
 
 23.710 
 
 .374932 
 
 14.9800 
 
 .17551 
 
 53 
 
 128385 
 
 .108514 
 
 4826.06 
 
 .68360 
 
 93 
 
 11.282 
 
 .052386 
 
 7.9752 
 
 0.90174 
 
 54 
 
 118767 
 
 .074696 
 
 4693.42 
 
 .67149 
 
 94 
 
 4.890 
 
 0.689309 
 
 3.8677 
 
 .58745 
 
 55 
 
 109650 
 
 .040009 
 
 4559.15 
 
 .65889 
 
 95 
 
 1.900 
 
 .278754 
 
 1.6844 
 
 .22645 
 
 56 
 
 101017 
 
 .004394 
 
 4423.03 
 
 .64572 
 
 96 
 
 .646 
 
 1.810233 
 
 .6465 
 
 1.81057 
 
 57 
 
 92S50.3 
 
 4.967783 
 
 4284.75 
 
 .63193 
 
 97 
 
 .184 
 
 .264818 
 
 .2156 
 
 .33365 
 
 58 
 
 85134.6 
 
 .930106 
 
 4144.23 
 
 .61744 
 
 98 
 
 .034 
 
 2.531479 
 
 .0629 
 
 2.79865 
 
 59 
 
 77854.7 
 
 .891285 
 
 4001.47 
 
 .60222 
 
 
 
 
 
 
312 
 
 TABLE V*. 
 ANNUITIES, SINGLE PREMIUMS, AND ANNUAL PREMIUMS. 
 
 MOMENTLY BASIS. 
 National Fraternal Congress Table of Mortality and 4 per cent interest. 
 
 Age 
 
 Ox 
 
 A x 
 
 Fx 
 
 Age 
 
 a x 
 
 A x 
 
 F x 
 
 20 
 
 19.9879 
 
 216.06 
 
 10.81 
 
 60 
 
 10.6568 
 
 582.03 
 
 54.62 
 
 21 
 
 19.8694 
 
 220.71 
 
 11.11 
 
 61 
 
 10.3091 
 
 595.67 
 
 57.78 
 
 22 
 
 19.7463 
 
 225.54 
 
 11.42 
 
 62 
 
 9.9595 
 
 609.38 
 
 61 . 19 
 
 23 
 
 19.6183 
 
 230.56 
 
 11.75 
 
 63 
 
 9.6082 
 
 623.16 
 
 64.86 
 
 24 
 
 19.4853 
 
 235.77 
 
 12.10 
 
 64 
 
 9.2559 
 
 636.98 
 
 08.82 
 
 25 
 
 19.3471 
 
 241.19 
 
 12.47 
 
 65 
 
 8.9031 
 
 650.81 
 
 73.10 
 
 26 
 
 19.2037 
 
 246.82 
 
 12.85 
 
 66 
 
 8.5508 
 
 664.63 
 
 77.73 
 
 27 
 
 19.0548 
 
 252.66 
 
 13.26 
 
 67 
 
 8.1994 
 
 678.41 
 
 82.74 
 
 28 
 
 18.9003 
 
 258.72 
 
 13.69 
 
 68 
 
 7.8497 
 
 692.13 
 
 88.17 
 
 29 
 
 18.7402 
 
 265.00 
 
 14.14 
 
 69 
 
 7.5022 
 
 705.76 
 
 94.07 
 
 30 
 
 18.5743 
 
 271.50 
 
 14.62 
 
 70 
 
 7.1576 
 
 719.27 
 
 100.49 
 
 31 
 
 18.4023 
 
 278.25 
 
 15.12 
 
 71 
 
 6.8167 
 
 732.64 
 
 107.48 
 
 32 
 
 18.2243 
 
 285.23 
 
 15.65 
 
 72 
 
 6.4803 
 
 745.84 
 
 115.09 
 
 33 
 
 18.0402 
 
 292.45 
 
 16.21 
 
 73 
 
 6.1487 
 
 758.84 
 
 123.41 
 
 34 
 
 17.8496 
 
 299.93 
 
 16.80 
 
 74 
 
 5.8228 
 
 771.63 
 
 132.52 
 
 35 
 
 17.6527 
 
 307.65 
 
 17.43 
 
 75 
 
 5.5031 
 
 784.16 
 
 142.49 
 
 36 
 
 17.4494 
 
 315.62 
 
 18.09 
 
 76 
 
 5 . 1903 
 
 796.43 
 
 153.45 
 
 37 
 
 17.2394 
 
 323.86 
 
 18.79 
 
 77 
 
 4.8848 
 
 808.41 
 
 165.50 
 
 38 
 
 17.0229 
 
 332.35 
 
 19.52 
 
 78 
 
 4.5871 
 
 820.09 
 
 178.78 
 
 39. 
 
 16.7998 
 
 341 . 10 
 
 20.30 
 
 79 
 
 4.2978 
 
 831.44 
 
 193.46 
 
 40 
 
 16.5701 
 
 350.11 
 
 21.13 
 
 80 
 
 4.0173 
 
 842.44 
 
 209.70 
 
 41 
 
 16.3337 
 
 359.38 
 
 22.00 
 
 81 
 
 3.7458 
 
 853.09 
 
 27.75 
 
 42 
 
 16.0909 
 
 368.90 
 
 22.93 
 
 82 
 
 3.4838 
 
 863.36 
 
 247.82 
 
 43 
 
 15.8416 
 
 378.68 
 
 23.90 
 
 83 
 
 3.2316 
 
 873.25 
 
 270.22 
 
 44 
 
 15.5858 
 
 388.71 
 
 24.94 
 
 84 
 
 2.9889 
 
 882.77 
 
 295.35 
 
 45 
 
 15.3236 
 
 399.00 
 
 26.04 
 
 85 
 
 2.7565 
 
 891.89 
 
 323.56 
 
 46 
 
 15.0547 
 
 409.54 
 
 27.20 
 
 86 
 
 2.5341 
 
 900.61 
 
 
 47 
 
 14.7789 
 
 420.36 
 
 28.44 
 
 87 
 
 2.3215 
 
 908.95 
 
 
 48 
 
 14.4965 
 
 431.44 
 
 29.76 
 
 88 
 
 2.1191 
 
 916.89 
 
 
 49 
 
 14.2076 
 
 442.77 
 
 31.16 
 
 89 
 
 1.9263 
 
 924.45 
 
 
 50 
 
 13.9120 
 
 454.36 
 
 32.66 
 
 90 
 
 1.7435 
 
 931.62 
 
 
 51 
 
 13.6101 
 
 466.20 
 
 34.25 
 
 91 
 
 1.5694 
 
 938.45 
 
 
 52 
 
 13.3024 
 
 478.27 
 
 35.95 
 
 92 
 
 1.4053 
 
 944. SS 
 
 
 53 
 
 12.9886 
 
 490.58 
 
 37.77 
 
 93 
 
 1.2485 
 
 951.03 
 
 
 54 
 
 12.6693 
 
 503.10 
 
 39.71 
 
 94 
 
 1 . 1044 
 
 956.68 
 
 
 55 
 
 12.3449 
 
 515.82 
 
 41.78 
 
 95 
 
 .9705 
 
 961.94 
 
 
 56 
 
 12.0154 
 
 528.75 
 
 44.01 
 
 96 
 
 .8413 
 
 967.00 
 
 
 57 
 
 11.6815 
 
 541.84 
 
 46.38 
 
 97 
 
 .6915 
 
 972.88 
 
 
 58 
 
 11.3436 
 
 555.10 
 
 48.94 
 
 98 
 
 .3800 
 
 985.10 
 
 
 59 
 
 11.0017 
 
 568.51 
 
 51.67 
 
 
 
 
 
313 
 
 TABLE VI. 
 
 FRATERNAL EXPERIENCE THREE AND ONE-HALF PER CENT. 
 Commutation Columns. 
 
 X 
 
 D x = l x v x 
 
 N X = SD X 
 
 S X = SN X 
 
 c x = 
 
 d x v x+I 
 
 M X = 2C X 
 
 R* = 2M, 
 
 20 
 
 50256.6 
 
 1116620 
 
 20395400 
 
 242.786 
 
 12496.5 
 
 426927 
 
 21 
 
 48314.3 
 
 1066360 
 
 19278800 
 
 235.044 
 
 12253.7 . 
 
 414430 
 
 22 
 
 46445.4 
 
 1018050 
 
 18212400 
 
 227.550 
 
 12018.7 
 
 402176 
 
 23 
 
 44647.3 
 
 971606 
 
 17194300 
 
 220.293 
 
 11791.2 
 
 390157 
 
 24 
 
 42917.2 
 
 926959 
 
 16222700 
 
 213.689 
 
 11570.9 
 
 378366 
 
 25 
 
 41252.2 
 
 884042 
 
 15295700 
 
 207.281 
 
 11357.2 
 
 366795 
 
 26 
 
 39649.9 
 
 842790 
 
 14411700 
 
 201.456 
 
 11149.9 
 
 355438 
 
 27 
 
 38107.6 
 
 S03140 
 
 13568900 
 
 195.788 
 
 10948.4 
 
 344288 
 
 28 
 
 36623 . 1 
 
 765032 
 
 12765800 
 
 190.643 
 
 10752.6 
 
 333340 
 
 29 
 
 35194.0 
 
 728409 
 
 12000800 
 
 185.978 
 
 10562.0 
 
 322587 
 
 30 
 
 33818.0 
 
 693215 
 
 11272400 
 
 181.410 
 
 10376.0 
 
 312025 
 
 31 
 
 32492.9 
 
 659397 
 
 10579200 
 
 177.270 ' 
 
 10194.6 
 
 301649 
 
 32 
 
 31216.9 
 
 626904 
 
 9919750 
 
 173.525 
 
 10017.3 
 
 291454 
 
 33 
 
 29987.7 
 
 595687 
 
 9292850 
 
 170.141 
 
 9843.74 
 
 281437 
 
 34 
 
 28803.5 
 
 565699 
 
 8697160 
 
 167.087 
 
 9673.60 
 
 271593 
 
 35 
 
 27662.4 
 
 536895 
 
 8131460 
 
 164.335 
 
 9506.51 
 
 261919 
 
 36 
 
 26562.6 
 
 509233 
 
 7594560 
 
 161.858 
 
 9342 . 18 
 
 252412 
 
 37 
 
 25502.5 
 
 482670 
 
 7085330 
 
 159.902 
 
 9180.32 
 
 243070 
 
 38 
 
 24480.2 
 
 457168 
 
 6602660 
 
 158.416 
 
 9020.42 
 
 233890 
 
 39 
 
 23493.9 
 
 432688 
 
 6145490 
 
 157.100 
 
 8862.00 
 
 224870 
 
 40 
 
 22542 . 3 
 
 409194 
 
 5712800 
 
 156.180 
 
 8704.90 
 
 216008 
 
 41 
 
 21623.9 
 
 380652 
 
 5303610 
 
 155.614 
 
 8548.72 
 
 207303 
 
 42 
 
 20737.0 
 
 36502S 
 
 4916960 
 
 155.591 
 
 8393.11 
 
 198754 
 
 43 
 
 19880.2 
 
 344291 
 
 4551930 
 
 155.833 
 
 8237.51 
 
 190361 
 
 44 
 
 19052.1 
 
 324411 
 
 4207640 
 
 156.092 
 
 8081.69 
 
 182123 
 
 45 
 
 18251.7 
 
 305359 
 
 3883230 
 
 156.361 
 
 7925.60 
 
 174041 
 
 46 
 
 17478.1 
 
 287107 
 
 3577870 
 
 156.831 
 
 7769.24 
 
 166115 
 
 47 
 
 16730.3 
 
 269629 
 
 3290760 
 
 157.665 
 
 7612.41 
 
 158346 
 
 48 
 
 16006.8 
 
 252899 
 
 3021130 
 
 158.820 
 
 7454.74 
 
 150734 
 
 49 
 
 15306.7 
 
 236892 
 
 2768230 
 
 160.074 
 
 7295.92 
 
 143279 
 
 50 
 
 14629.1 
 
 221585 
 
 2531340 
 
 161.754 
 
 7135.85 
 
 135983 
 
 51 
 
 13972.6 
 
 206950 
 
 2309760 
 
 163.972 
 
 6974.10 
 
 128847 
 
 52 
 
 13336.1 
 
 192983 
 
 2102800 
 
 166.179 
 
 6810.13 
 
 121873 
 
 53 
 
 12718.9 
 
 179647 
 
 1909820 
 
 168.985 
 
 6643.95 
 
 115063 
 
 54 
 
 12119.8 
 
 166928 
 
 1730170 
 
 171.864 
 
 6474.96 
 
 108419 
 
 55 
 
 11538.1 
 
 154808 
 
 1563240 
 
 175.083 
 
 6303.10 
 
 101944 
 
 56 
 
 10972.9 
 
 143270 
 
 1408430 
 
 178.733 
 
 6128.02 
 
 95641.2 
 
 57 
 
 10423 . 1 
 
 132297 
 
 1265160 
 
 182.479 
 
 5949.29 
 
 89513.2 
 
 58 
 
 9888.16 
 
 121874 
 
 1132860 
 
 186.292 
 
 5766.81 
 
 83563.9 
 
 59 
 
 9367.46 
 
 111986 
 
 1010990 
 
 190.529 
 
 5580.52 
 
 77797.1 
 
 60 
 
 8860.14 
 
 102619 
 
 899004 
 
 194.755 
 
 5389.99 
 
 72216.6 
 
 61 
 
 8365.79 
 
 93758.5 
 
 796385 
 
 199.190 
 
 5195.23 
 
 66826.6 
 
 62 
 
 7883.69 
 
 85392.7 
 
 702626 
 
 203.559 
 
 4996.04 
 
 61631.4 
 
 63 
 
 7413.54 
 
 77509.0 
 
 617233 
 
 207.958 
 
 4792.48 
 
 56635.4 
 
 64 
 
 6955.89 
 
 70095.5 
 
 539724 
 
 212.148 
 
 4584.52 
 
 51842.9 
 
314 
 
 TABLE VI. 
 
 FRATERNAL EXPERIENCE THREE AND ONE-HALF PER CENT Continued. 
 
 Commutation Columns. 
 
 X 
 
 D x =l x v* 
 
 N X = SD X 
 
 S X = SN X 
 
 c x = 
 
 d x v* +1 
 
 M X = SC X 
 
 R X = 2M X 
 
 65 
 
 6507.54 
 
 63139.6 
 
 469629 
 
 216.229 
 
 4372.37 
 
 47258.4 
 
 66 
 
 6071.25 
 
 56632.1 
 
 406489 
 
 220.091 
 
 4156.14 
 
 42886.0 
 
 67 
 
 5645.86 
 
 50560.9 
 
 349857 
 
 223.444 
 
 3936.05 
 
 38729.9 
 
 68 
 
 5231.48 
 
 44915.0 
 
 299296 
 
 226.319 
 
 3712.61 
 
 34793.8 
 
 69 
 
 4828.26 
 
 39683.5 
 
 254381 
 
 228.475 
 
 3486.29 
 
 31081.2 
 
 70 
 
 4436.52 
 
 34855.2 
 
 214697 
 
 229.965 
 
 3257.82 
 
 27594.9 
 
 71 
 
 4056.51 
 
 30418.7 
 
 179842 
 
 230.504 
 
 3027.85 
 
 24337.1 
 
 72 
 
 3688.83 
 
 26362.2 
 
 149423 
 
 229.851 
 
 2797.35 
 
 21309.3 
 
 73 
 
 3334.23 
 
 22673.4 
 
 123061 
 
 228.117 
 
 2567.50 
 
 18511.9 
 
 74 
 
 2993.37 
 
 19339.2 
 
 100388 
 
 224.949 
 
 2339.38 
 
 15944.4 
 
 75 
 
 2667.20 
 
 16345.8 
 
 81048.4 
 
 220.270 
 
 2114.43 
 
 13605.0 
 
 76 
 
 2356.72 
 
 13678.6 
 
 64702.6 
 
 214.024 
 
 1894.16 
 
 11490.6 
 
 77 
 
 2063.00 
 
 11321.9 
 
 51024.0 
 
 206.103 
 
 1680.14 
 
 9596.43 
 
 78 
 
 1787.14 
 
 9258.89 
 
 39702.1 
 
 196.558 
 
 1474.04 
 
 7916.29 
 
 79 
 
 1530.15 
 
 7471.75 
 
 30443.2 
 
 185.318 
 
 1277.48 
 
 6442.25 
 
 80 
 
 1293.08 
 
 5941.60 
 
 22971.4 
 
 172.518 
 
 1092.16 
 
 5164.77 
 
 81 
 
 1076.84 
 
 4648.52 
 
 17029.8 
 
 158.347 
 
 919.640 
 
 4072.61 
 
 82 
 
 882.076 
 
 3571.68 
 
 12381.3 
 
 142.981 
 
 761.293 
 
 3152.97 
 
 83 
 
 709.266 
 
 2689.60 
 
 8809.60 
 
 126.749 
 
 618.312 
 
 2391.68 
 
 84 
 
 558.532 
 
 1980.33 
 
 6120.00 
 
 110.109 
 
 491.563 
 
 1773.37 
 
 85 
 
 429.535 
 
 1421.80 
 
 4139.67 
 
 93.4121 
 
 381.454 
 
 1281.81 
 
 86 
 
 321.597 
 
 992.266 
 
 2717.87 
 
 77.1605 
 
 288.042 
 
 !)()(). 356 
 
 87 
 
 233.555 
 
 670.669 
 
 1725.60 
 
 61.8643 
 
 210.875 
 
 612.314 
 
 88 
 
 163.793 
 
 437.114 
 
 1054.93 
 
 47.8834 
 
 149.011 
 
 401 . 439 
 
 89 
 
 110.371 
 
 273.321 
 
 617.811 
 
 35.6365 
 
 101.128 
 
 252.428 
 
 90 
 
 71.0020 
 
 162.950 
 
 344.490 
 
 25.2992 
 
 65.4913 
 
 151.300 
 
 91 
 
 43.3015 
 
 91.9475 
 
 181.540 
 
 17.0557 
 
 40.1921 
 
 85.808 
 
 92 
 
 24.7815 
 
 48 . 6460 
 
 89.592 
 
 10.7684 
 
 23.1364 
 
 45.616 
 
 93 
 
 13.1750 
 
 23.8645 
 
 40.946 
 
 6.34501 
 
 12.3680 
 
 22.480 
 
 94 
 
 6.38444 
 
 10.6895 
 
 17.082 
 
 3.38888 
 
 6.0230 
 
 10.112 
 
 95 
 
 2.77965 
 
 4.3050 
 
 6.392 
 
 1.61875 
 
 2.6341 
 
 4.089 
 
 96 
 
 1.06690 
 
 1.5254 
 
 2.087 
 
 0.67537 
 
 1.0153 
 
 1.455 
 
 97 
 
 0.35546 
 
 0.4585 
 
 0.562 
 
 0.24041 
 
 0.3400 
 
 0.440 
 
 98 
 
 0.10303 
 
 0.1030 
 
 0.103 
 
 0.09955 
 
 0.0995 
 
 0.100 
 
315 
 
 TABLE VII. 
 
 FRATERNAL EXPERIENCE THREE PER CENT. 
 Commutation Columns. 
 
 X 
 
 D x = l x v* 
 
 N X = SD X 
 
 S X = ZN X 
 
 c x = 
 
 d x v* +1 
 
 M X = SC X 
 
 Rx = 2M x 
 
 20 
 
 55367.6 
 
 1340690 
 
 25841300 
 
 268.774 
 
 16318.2 
 
 588033 
 
 21 
 
 53486.2 
 
 1285330 
 
 24500600 
 
 261.467 
 
 16049.4 
 
 571715 
 
 22 
 
 51666.9 
 
 1231840 
 
 23215300 
 
 254.359 
 
 15788.0 
 
 555666 
 
 23 
 
 49907.6 
 
 1180170 
 
 21983500 
 
 247.442 
 
 15533.6 
 
 539878 
 
 24 
 
 48206.7 
 
 1130270 
 
 20803300 
 
 241.190 
 
 15286.2 
 
 524344 
 
 25 
 
 46561.3 
 
 1082060 
 
 19673000 
 
 235.092 
 
 15045.0 
 
 509058 
 
 26 
 
 44970.0 
 
 1035500 
 
 18590900 
 
 229.596 
 
 14809.9 
 
 494013 
 
 27 
 
 43430.0 
 
 990527 
 
 17555400 
 
 224.220 
 
 14580.3 
 
 479203 
 
 28 
 
 41941.4 
 
 947097 
 
 16564900 
 
 219.387 
 
 14356 . 1 
 
 464623 
 
 29 
 
 40500.4 
 
 905155 
 
 15617800 
 
 215.057 
 
 14136.7 
 
 450267 
 
 30 
 
 39105.8 
 
 864655 
 
 14712700 
 
 210.793 
 
 13921.6 
 
 436130 
 
 31 
 
 37756.0 
 
 825549 
 
 13848000 
 
 206.983 
 
 13710.8 
 
 422208 
 
 32 
 
 36449.3 
 
 787793 
 
 13022500 
 
 203.594 
 
 13503.9 
 
 408497 
 
 33 
 
 35184.2 
 
 751344 
 
 12234700 
 
 200.593 
 
 13300.3 
 
 394993 
 
 34 
 
 33958.7 
 
 716160 
 
 11483400 
 
 197.948 
 
 13099.7 
 
 381693 
 
 35 
 
 32771.7 
 
 682201 
 
 10767200 
 
 195.633 
 
 12901.7 
 
 368593 
 
 36 
 
 31621.5 
 
 649429 
 
 10085000 
 
 193.620 
 
 12706.1 
 
 355691 
 
 37 
 
 30506.9 
 
 617808 
 
 9435580 
 
 192.208 
 
 12512.5 
 
 342985 
 
 38 
 
 29426.2 
 
 587301 
 
 8817770 
 
 191.347 
 
 12320.3 
 
 330473 
 
 39 
 
 28377.7 
 
 557875 
 
 8230470 
 
 190.678 
 
 12128.9 
 
 318153 
 
 40 
 
 27360.5 
 
 529497 
 
 7672600 
 
 190.482 
 
 11938.2 
 
 306024 
 
 41 
 
 26373.2 
 
 502136 
 
 7143100 
 
 190.713 
 
 11747.7 
 
 294086 
 
 42 
 
 25414.3 
 
 475763 
 
 6640960 
 
 191.611 
 
 11557.0 
 
 282338 
 
 43 
 
 24482.4 
 
 450349 
 
 6165200 
 
 192.839 
 
 11365.4 
 
 270781 
 
 44 
 
 23576.5 
 
 425867 
 
 5714850 
 
 194.097 
 
 11172.6 
 
 259416 
 
 45 
 
 22695.7 
 
 402290 
 
 5288980 
 
 195.376 
 
 10978.5 
 
 248243 
 
 46 
 
 21839.2 
 
 379594 
 
 4886690 
 
 196.914 
 
 10783 . 1 
 
 237264 
 
 47 
 
 21006.2 
 
 357755 
 
 4507100 
 
 198.923 
 
 10586.2 
 
 226481 
 
 48 
 
 20195.5 
 
 336749 
 
 4149340 
 
 201.353 
 
 10387.3 
 
 215895 
 
 49 
 
 19406.0 
 
 316553 
 
 3812590 
 
 203.928 
 
 10185.9 
 
 205508 
 
 50 
 
 18636.8 
 
 297147 
 
 3496040 
 
 207.068 
 
 9981.99 
 
 195322 
 
 51 
 
 17886.9 
 
 278511 
 
 3198890 
 
 210.927 
 
 9774.93 
 
 185340 
 
 52 
 
 17155.0 
 
 260624 ' 
 
 2920380 
 
 214.804 
 
 9564.00 
 
 175565 
 
 53 
 
 16440.6 
 
 243469 
 
 2659760 
 
 219.491 
 
 9349.20 
 
 166001 
 
 54 
 
 15742.2 
 
 227028 
 
 2416290 
 
 224.314 
 
 9129.70 
 
 156652 
 
 55 
 
 15059.4 
 
 211286 
 
 2189260 
 
 229.625 
 
 8905.39 
 
 147522 
 
 56 
 
 14391 . 1 
 
 196227 
 
 1977970 
 
 235.549 
 
 8675.77 
 
 138617 
 
 57 
 
 13736.4 
 
 181835 
 
 1781740 
 
 241.654 
 
 8440.22 
 
 129941 
 
 58 
 
 13094.7 
 
 168099 
 
 1599910 
 
 247.902 
 
 8198.56 
 
 121501 
 
 59 
 
 12465.4 
 
 155004 
 
 1431810 
 
 254.770 
 
 7950.66 
 
 113302 
 
 60 
 
 11847.5 
 
 142539 
 
 1276810 
 
 261.685 
 
 7695.89 
 
 105351 
 
 61 
 
 11240.8 
 
 130691 
 
 1134270 
 
 268.943 
 
 7434.20 
 
 97655.0 
 
 62 
 
 10644.4 
 
 119451 
 
 1003580 
 
 276.177 
 
 7165.26 
 
 90220.8 
 
 63 
 
 10058.2 
 
 108806 
 
 884133 
 
 283.515 
 
 6889.08 
 
 83055.5 
 
 64 
 
 9481.74 
 
 98748.0 
 
 775327 
 
 290.630 
 
 6605.57 
 
 76166.4 
 
316 
 
 TABLE VII. 
 
 FRATERNAL EXPERIENCE THREE PER CENT Continued. 
 Commutation Columns. 
 
 X 
 
 D x =l x v* 
 
 N X = SD X 
 
 S X =SN X 
 
 c x = 
 
 d x v* +1 
 
 M X = SC X 
 
 Rx = SM x 
 
 65 
 
 8914.96 
 
 89266.2 
 
 676579 
 
 297.659 
 
 6314.94 
 
 69560.8 
 
 66 
 
 8357.63 
 
 80351.3 
 
 587313 
 
 304.447 
 
 6017.28 
 
 63245.9 
 
 67 
 
 7809.77 
 
 71993.6 
 
 506962 
 
 310.586 
 
 5712.83 
 
 57228.6 
 
 68 
 
 7271.72 
 
 64183.9 
 
 434968 
 
 316.110 
 
 5402.25 
 
 51515.8 
 
 69 
 
 6743.21 
 
 56912.1 
 
 370784 
 
 320.670 
 
 5086.14 
 
 46113.6 
 
 70 
 
 6226.71 
 
 50168.9 
 
 313872 
 
 324.327 
 
 4765.47 
 
 41027.5 
 
 71 
 
 5721.03 
 
 43942.2 
 
 263703 
 
 326 . 666 
 
 4441.14 
 
 36262.0 
 
 72 
 
 5227.28 
 
 38221.2 
 
 219761 
 
 327.323 
 
 4114.47 
 
 31820.9 
 
 73 
 
 4748.14 
 
 32993.9 
 
 181540 
 
 326.430 
 
 3787.1") 
 
 27706.4 
 
 74 
 
 4283.42 
 
 28245.8 
 
 148546 
 
 323.458 
 
 3460.72 
 
 23919.2 
 
 75 
 
 3835.20 
 
 23962.4 
 
 120300 
 
 318.268 
 
 3137.26 
 
 20458.5 
 
 76 
 
 3405.22 
 
 20127.2 
 
 96337.3 
 
 310.744 
 
 2819.00 
 
 17321.2 
 
 77 
 
 2995.29 
 
 16721.9 
 
 76210.1 
 
 300.696 
 
 2508.25 
 
 14502.2 
 
 78 
 
 2607.36 
 
 13726.6 
 
 59488.2 
 
 288.163 
 
 2207.56 
 
 11994.0 
 
 79 
 
 2243.26 
 
 11119.3 
 
 45761.6 
 
 273.003 
 
 1919.39 
 
 9786.42 
 
 80 
 
 1904.92 
 
 8876.02 
 
 34642.3 
 
 255.381 
 
 1646.39 
 
 7867.03 
 
 81 
 
 1594.05 
 
 6971.10 
 
 25766.3 
 
 235.540 
 
 1391.01 
 
 6220.64 
 
 82 
 
 1312.08 
 
 5377.05 
 
 18795.2 
 
 213.715 
 
 1155.47 
 
 4829.63 
 
 83 
 
 1060.15 
 
 4064.97 
 
 13418.2 
 
 190.374 
 
 941.754 
 
 3674.10 
 
 84 
 
 838.900 
 
 3004.82 
 
 9353.22 
 
 166.184 
 
 751.380 
 
 2732.41 
 
 85 
 
 648.280 
 
 2165.92 
 
 6348.40 
 
 141.668 
 
 585.196 
 
 1981.03 
 
 86 
 
 487.729 
 
 1517.64 
 
 4182.48 
 
 117.598 
 
 443.528 
 
 1395.83 
 
 87 
 
 355.926 
 
 1029.91 
 
 2664.84 
 
 94.7360 
 
 325.930 
 
 952.301 
 
 88 
 
 250.824 
 
 673.989 
 
 1634.93 
 
 73.6822 ' 
 
 231.194 
 
 626.371 
 
 89 
 
 169.836 
 
 423.165 
 
 960.939 
 
 55.1031 
 
 157.511 
 
 395.177 
 
 90 
 
 109.787 
 
 253.329 
 
 537.774 
 
 39.3090 
 
 102.408 
 
 237.666 
 
 91 
 
 67.2800 
 
 143.542 
 
 284.445 
 
 26.6291 
 
 63.0992 
 
 135.258 
 
 92 
 
 38.6913 
 
 76.2623 
 
 140.903 
 
 16.8944 
 
 36.4701 
 
 72.1584 
 
 93 
 
 20.6700 
 
 37.5710 
 
 64.6402 
 
 10.0029 
 
 19.5757 
 
 35.6883 
 
 94 
 
 10.0651 
 
 16.9010 
 
 27.0692 
 
 5.36851 
 
 9.5728 
 
 16.1126 
 
 95 
 
 4.40339 
 
 6.8359 
 
 10.1682 
 
 2.57680 
 
 4.2043 
 
 6.5398 
 
 96 
 
 1.69834 
 
 2.4325 
 
 3.3323 
 
 1.08030 
 
 1.6275 
 
 2.3355 
 
 97 
 
 0.56858 
 
 0.7342 
 
 0.8998 
 
 0.38641 
 
 0.5472 
 
 0.7080 
 
 98 
 
 0.16561 
 
 0.1656 
 
 0.1656 
 
 0.16078 
 
 0.1608 
 
 0.1608 
 
TABLE VIII. 
 
 FRATERNAL EXPERIENCE. 
 
 Values of Life Annuity Due of $1 and of Single and Level Premiums for $1,000 
 
 Life Insurance. 
 
 X 
 
 3% Per Cent Basis. 
 
 3 Per Cent Basis. 
 
 _Nx 
 
 ax ~DT 
 
 A - M * 
 
 Ax ~DT 
 
 P _Mx 
 Px ~N x 
 
 N x 
 
 a *=DT 
 
 A M * 
 
 Ax= D7 
 
 M, 
 Px ~N x 
 
 20 
 
 22.218 
 
 248.65 
 
 11.19 
 
 24.214 
 
 294.72 
 
 12.17 
 
 21 
 
 22.071 
 
 253.62 
 
 11.49 
 
 24.031 
 
 300.07 
 
 12.49 
 
 22 
 
 21.919 
 
 258.77 
 
 11.81 
 
 23.842 
 
 305.57 
 
 12.82 
 
 23 
 
 21.762 
 
 264.10 
 
 12.14 
 
 23.647 
 
 311.25 
 
 13.16 
 
 24 
 
 21.599 
 
 269.61 
 
 12.48 
 
 23.446 
 
 317.10 
 
 13.52 
 
 25 
 
 21.430 
 
 275.31 
 
 12.85 
 
 23.239 
 
 323.12 
 
 13.90 
 
 26 
 
 21.256 
 
 281.21 
 
 13.23 
 
 23.026 
 
 329.33 
 
 14.30 
 
 27 
 
 21.076 
 
 287.30 
 
 13.63 
 
 22.807 
 
 335.72 
 
 14.72 
 
 28 
 
 20.889 
 
 293.60 
 
 14.06 
 
 22.581 
 
 342.29 
 
 15.16 
 
 29 
 
 20.697 
 
 300.11 
 
 14.50 
 
 22.348 
 
 349.03 
 
 15.62 
 
 30 
 
 20.498 
 
 306.82 
 
 14.97 
 
 22.110 
 
 356.00 
 
 16.10 
 
 31 
 
 20.293 
 
 313.75 
 
 15.46 
 
 21.865 
 
 363.14 
 
 16.61 
 
 32 
 
 20.082 
 
 320.89 
 
 15.98 
 
 21.613 
 
 370.48 
 
 17.14 
 
 33 
 
 19.864 
 
 328.26 
 
 16.53 
 
 21.355 
 
 378.02 
 
 17.70 
 
 34 
 
 19.640 
 
 335.85 
 
 17.10 
 
 21.089 
 
 385.75 
 
 18.29 
 
 35 
 
 19.409 
 
 343.66 
 
 17.71 
 
 20.817 
 
 393.69 
 
 18.91 
 
 36 
 
 19.171 
 
 351.70 
 
 18.35 
 
 20.538 
 
 401.82 
 
 19.56 
 
 37 
 
 18.926 
 
 359.98 
 
 19.02 
 
 20.251 
 
 410.15 
 
 20.25 
 
 38 
 
 18.675 
 
 368.48 
 
 19.73 
 
 19.958 
 
 418.68 
 
 20.97 
 
 39 
 
 18.417 
 
 377.20 
 
 20.48 
 
 19.659 
 
 427.41 
 
 21.74 
 
 40 
 
 18.152 
 
 386.16 
 
 21.27 
 
 19.353 
 
 436.33 
 
 22.55 
 
 41 
 
 17.881 
 
 395.34 
 
 22.11 
 
 19.040 
 
 445.44 
 
 23.40 
 
 42 
 
 17.603 
 
 404.74 
 
 22.99 
 
 18.720 
 
 454.74 
 
 24.29 
 
 43 
 
 17.318 
 
 414.36 
 
 23 .-93 
 
 18.395 
 
 464.23 
 
 25.24 
 
 44 
 
 17.028 
 
 424.19 
 
 24.91 
 
 18.063 
 
 473.89 
 
 26.23 
 
 45 
 
 16.730 
 
 434.24 
 
 25.96 
 
 17.725 
 
 483.73 
 
 27.29 
 
 46 
 
 16.427 
 
 444.51 
 
 27.06 
 
 17.381 
 
 493.75 
 
 28.41 
 
 47 
 
 16.116 
 
 455.01 
 
 28.23 
 
 17.031 
 
 503.95 
 
 29.59 
 
 48 
 
 15.799 
 
 465.72 
 
 29.48 
 
 16.674 
 
 514.34 
 
 30.85 
 
 49' 
 
 15.476 
 
 476.65 
 
 30.80 
 
 16.312 
 
 524.89 
 
 32.18 
 
 50 
 
 15.147. 
 
 487.79 
 
 32.20 
 
 15.944 
 
 535.61 
 
 33.59 
 
 51 
 
 14.812 
 
 499.13 
 
 33.70 
 
 15.571 
 
 546.48 
 
 35.10 
 
 52 
 
 14.471 
 
 510.65 
 
 35.29 
 
 15.192 
 
 557.50 
 
 36.70 
 
 53 
 
 14.124 
 
 522.37 
 
 36.98 
 
 14.809 
 
 568.67 
 
 38.40 
 
 54 
 
 13.733 
 
 534.24 
 
 38.79 
 
 14.422 
 
 579.95 
 
 40.21 
 
 55 
 
 13.417 
 
 546.28 
 
 40.72 
 
 14.030 
 
 591.35 
 
 42.15 
 
 56 
 
 13.057 
 
 558.47 
 
 42.77 
 
 13.635 
 
 602.85 
 
 44.21 
 
 57 
 
 12.693 
 
 570.78 
 
 44.97 
 
 13.238 
 
 614.44 
 
 46.42 
 
 58 
 
 12.325 
 
 583.20 
 
 47.32 
 
 12.837 
 
 626.10 
 
 48.77 
 
 59 
 
 11.955 
 
 595.73 
 
 49.83 
 
 12.435 
 
 637.82 
 
 51.29 
 
 60 
 
 11.582 
 
 608.34 
 
 52.52 
 
 12.031 
 
 649.58 
 
 53.99 
 
 61 
 
 11.207 
 
 621.01 
 
 55.41 
 
 11.627 
 
 661.36 
 
 56.88 
 
 62 
 
 10.832 
 
 633.72 
 
 58.51 
 
 11.222 
 
 673 . 14 
 
 59.98 
 
 63 
 
 10.455 
 
 646.45 
 
 61.83 
 
 10.818 
 
 684.92 
 
 63.31 
 
 64 
 
 10.079 
 
 659.18 
 
 65.41 
 
 10.415 
 
 696.66 
 
 66.89 
 
 65 
 
 9.703 
 
 671.89 
 
 69.25 
 
 10.013 
 
 708.35 
 
 70.74 
 
 66 
 
 9.328 
 
 684.56 
 
 73.39 
 
 9.614 
 
 719.97 
 
 74.89 
 
 67 
 
 8.955 
 
 697.16 
 
 77.85 
 
 9.219 
 
 731.50 
 
 79.35 
 
 68 
 
 8.586 
 
 709.67 
 
 82.66 
 
 8.827 
 
 742.91 
 
 84.17 
 
 69 
 
 8.219 
 
 722.06 
 
 87.85 
 
 8.439 
 
 754.19 
 
 89.37 
 
 70 
 
 7.856 
 
 734.32 
 
 93.47 
 
 8.057 
 
 765.33 
 
 94.99 
 
318 
 
 TABLE IX. 
 
 MODIFIED N x COLUMNS FOR MONTHLY PREMIUMS. 
 
 National Fraternal Congress Mortality Table, and Three Per Cent, Three and 
 One-Half Per Cent, and Four Per Cent Interest. 
 
 
 3% 
 
 3|% 
 
 4% 
 
 
 3% 
 
 3|% 
 
 4% 
 
 X 
 
 N^ 2 
 
 N 12 
 
 iN| X 
 
 N^ 2 
 
 X 
 
 N 12 
 
 1N X 
 
 N^ 2 
 
 N^ 2 
 
 20 
 
 1315233 
 
 1093510 
 
 914228 
 
 60 
 
 137071 
 
 98525.1 
 
 70996.2 
 
 21 
 
 1260729 
 
 1044150 
 
 869496 
 
 61 
 
 125503 
 
 89892.7 
 
 64545.4 
 
 22 
 
 1208078 
 
 996692 
 
 826700 
 
 62 
 
 114537 
 
 81749.1 
 
 58489.1 
 
 23 
 
 1157219 
 
 951072 
 
 785758 
 
 63 
 
 104163 
 
 74082.1 
 
 52814.6 
 
 24 
 
 1108092 
 
 907219 
 
 746591 
 
 64 
 
 94370.2 
 
 66880.0 
 
 47509.8 
 
 25 
 
 1060641 
 
 865066 
 
 709123 
 
 65 
 
 85149.7 
 
 60131.4 
 
 42563.0 
 
 26 
 
 1014810 
 
 824550 
 
 673283 
 
 66 
 
 76491.7 
 
 53825.1 
 
 37962.6 
 
 27 
 
 970547 
 
 785608 
 
 639002 
 
 67 
 
 68386.6 
 
 47950.1 
 
 33697.4 
 
 28 
 
 927800 
 
 748182 
 
 606213 
 
 68 
 
 60825.0 
 
 42495.5 
 
 29756.5 
 
 29 
 
 886520 
 
 712215 
 
 574854 
 
 69 
 
 53796.9 
 
 37450.1 
 
 26128.8 
 
 30 
 
 846660 
 
 677653 
 
 544865 
 
 70 
 
 47291.7 
 
 32802.8 
 
 22803 . 3 
 
 31 
 
 808174 
 
 644443 
 
 516188 
 
 71 
 
 41298.3 
 
 28541.8 
 
 19768.9 
 
 32 
 
 771018 
 
 612536 
 
 488768 
 
 72 
 
 35805.0 
 
 24655.2 
 
 17014.4 
 
 33 
 
 735149 
 
 581883 
 
 462553 
 
 73 
 
 30798.8 
 
 21130.2 
 
 14528.2 
 
 34 
 
 700528 
 
 552440 
 
 437493 
 
 74 
 
 26265.3 
 
 17953.5 
 
 12298.5 
 
 35 
 
 667114 
 
 524160 
 
 413539 
 
 75 
 
 22188.9 
 
 15111.0 
 
 10312.9 
 
 36 
 
 634871 
 
 497003 
 
 390646 
 
 76 
 
 18552.4 
 
 12587.4 
 
 8558.49 
 
 37 
 
 603761 
 
 470927 
 
 368771 
 
 77 
 
 15336.6 
 
 10366.5 
 
 7022. 
 
 38 
 
 573750 
 
 445894 
 
 347872 
 
 78 
 
 12520.6 
 
 8431 . 16 
 
 5689.46 
 
 39 
 
 544806 
 
 421867 
 
 327909 
 
 79 
 
 10081.5 
 
 6762.96 
 
 4546.38 
 
 40 
 
 516895 
 
 398810 
 
 308844 
 
 80 
 
 7994.71 
 
 5342.55 
 
 3577.77 
 
 41 
 
 489988 
 
 376689 
 
 290641 
 
 81 
 
 6233.55 
 
 4149.59 
 
 2768.17 
 
 42 
 
 464056 
 
 355473 
 
 273266 
 
 82 
 
 4769.91 
 
 3162.94 
 
 2101.80 
 
 43 
 
 439069 
 
 335130 
 
 256686 
 
 83 
 
 3574.37 
 
 2360.91 
 
 1562.71 
 
 44 
 
 415003 
 
 315630 
 
 240870 
 
 84 
 
 2616.58 
 
 1721.47 
 
 1134.98 
 
 45 
 
 391831 
 
 296946 
 
 225788 
 
 85 
 
 1865.87 
 
 1222.70 
 
 802.943 
 
 46 
 
 369529 
 
 279049 
 
 211412 
 
 86 
 
 1291.89 
 
 843.185 
 
 551.505 
 
 47 
 
 348072 
 
 261915 
 
 197714 
 
 87 
 
 865.154 
 
 562.391 
 
 366.366 
 
 48 
 
 327439 
 
 245517 
 
 184668 
 
 88 
 
 557.873 
 
 361.171 
 
 234.330 
 
 49 
 
 307606 
 
 229832 
 
 172249 
 
 89 
 
 344.536 
 
 222.143 
 
 143.539 
 
 50 
 
 288554 
 
 214837 
 
 160433 
 
 90 
 
 202.498 
 
 130.024 
 
 83.671 
 
 51 
 
 270262 
 
 200510 
 
 149198 
 
 91 
 
 112.390 
 
 71.8663 
 
 46.055 
 
 52 
 
 252711 
 
 186830 
 
 138522 
 
 92 
 
 58.3464 
 
 37.1528 
 
 23.710 
 
 53 
 
 235885 
 
 173778 
 
 128385 
 
 93 
 
 27.9993 
 
 17.7538 
 
 11.282 
 
 54 
 
 219765 
 
 161334 
 
 118767 
 
 94 
 
 12.2399 
 
 7.7281 
 
 4.890 
 
 55 
 
 204337 
 
 149482 
 
 109650 
 
 95 
 
 4.7967 
 
 3.0157 
 
 1.900 
 
 56 
 
 189585 
 
 138204 
 
 101017 
 
 96 
 
 1.6460 
 
 1.0305 
 
 .646 
 
 57 
 
 175495 
 
 127484 
 
 92850.3 
 
 97 
 
 0.4708 
 
 0.2936 
 
 .184 
 
 58 
 
 162054 
 
 117307 
 
 85134.6 
 
 98 
 
 0.0889 
 
 0.0552 
 
 .034 
 
 59 
 
 149252 
 
 107659 
 
 77854.7 
 
 
 
 
 
319 
 
 TABLE X. 
 
 VALUATION COLUMNS BY THE NATIONAL FRATERNAL CONGRESS TABLE 
 And Three Per Cent, Three and One-Half Per Cent, and Four Per Cent Interest. 
 
 
 
 3% 
 
 $\% 
 
 4% 
 
 
 
 3% 
 
 SWo 
 
 4% 
 
 X 
 
 k x 
 
 U x 
 
 a, 
 
 Ux 
 
 X 
 
 kx 
 
 U x 
 
 Ux 
 
 U x 
 
 20 
 
 5.025 
 
 1.0352 
 
 1.0402 
 
 1.04523 
 
 60 
 
 23.280 
 
 1.0540 
 
 1.0591 
 
 1.06421 
 
 21 
 
 5.061 
 
 1.0352 
 
 1.0402 
 
 1.04526 
 
 61 
 
 25.266 
 
 1.0560 
 
 1.0612 
 
 1.06627 
 
 22 
 
 5.097 
 
 1.0352 
 
 1.0403 
 
 1.04530 
 
 62 
 
 27.458 
 
 1.0583 
 
 1.0634 
 
 1.06856 
 
 23 
 
 5.133 
 
 1.0353 
 
 1.0403 
 
 1.04534 
 
 63 
 
 29.901 
 
 1.0608 
 
 1.0660 
 
 1.07110 
 
 24 
 
 5.180 
 
 1.0353 
 
 1.0404 
 
 1.04539 
 
 64 
 
 32.600 
 
 1.0636 
 
 1.0687 
 
 1.07390 
 
 25 
 
 5.228 
 
 1.0354 
 
 1.0404 
 
 1.04544 
 
 65 
 
 35.615 
 
 1.0667 
 
 1.0719 
 
 1.07704 
 
 26 
 
 5.287 
 
 1.0354 
 
 1 .0404 
 
 1.04550 
 
 66 
 
 38.983 
 
 1.0702 
 
 1.0754 
 
 1.08054 
 
 27 
 
 5.346 
 
 1.0355 
 
 1.0405 
 
 1.04556 
 
 67 
 
 42.711 
 
 1.0740 
 
 1.0792 
 
 1.08442 
 
 28 
 
 5.417 
 
 1.0355 
 
 1.0406 
 
 1.04563 
 
 68 
 
 46.874 
 
 1 .0783 
 
 1.0835 
 
 1.08875 
 
 29 
 
 5.499 
 
 1.0357 
 
 1.0407 
 
 1.04572 
 
 69 
 
 51.499 
 
 1 0830 
 
 1.0883 
 
 1.09356 
 
 30 
 
 5.583 
 
 1.0358 
 
 1.0408 
 
 1 .04581 
 
 70 
 
 56.690 
 
 1.0884 
 
 1.0937 
 
 1.09896 
 
 31 
 
 5.679 
 
 1.0358 
 
 1.0409 
 
 1.04590 
 
 71 
 
 62.487 
 
 1.0944 
 
 1.0996 
 
 1 . 10499 
 
 32 
 
 5.787 
 
 1.0360 
 
 1.0410 
 
 1.04602 
 
 72 
 
 68.937 
 
 1.1010 
 
 . 1063 
 
 1.11169 
 
 33 
 
 5.907 
 
 1.0361 
 
 1.0411 
 
 1.04614 
 
 73 
 
 76.208 
 
 1 . 1085 
 
 .1139 
 
 1.11935 
 
 34 
 
 6.040 
 
 1.0362 
 
 1.0413 
 
 1.04628 
 
 74 
 
 84.339 
 
 1.1169 
 
 .1224 
 
 1.12771 
 
 35 
 
 6.187 
 
 1.0364 
 
 1.0414 
 
 1.04643 
 
 75 
 
 93.465 
 
 1 . 1263 
 
 .1317 
 
 1 . 13720 
 
 36 
 
 6.347 
 
 1.0365 
 
 1.0416 
 
 1.04660 
 
 76 
 
 103.744 
 
 1 . 1369 
 
 .1424 
 
 1 . 14789 
 
 37 
 
 6.532 
 
 1.0367 
 
 1.0418 
 
 1.04679 
 
 77 
 
 115.326 
 
 .1488 
 
 1 . 1544 
 
 1 . 15994 
 
 38 
 
 6.743 
 
 1.0369 
 
 1.0420 
 
 1.04700 
 
 78 
 
 128.457 
 
 . 1623 
 
 .1680 
 
 1 . 17359 
 
 39 
 
 6.969 
 
 1.0372 
 
 1.0422 
 
 1.04725 
 
 79 
 
 143.315 
 
 1.1776 
 
 .1833 
 
 1.18905 
 
 40 
 
 7.223 
 
 1.0374 
 
 1.0425 
 
 1.04751 
 
 80 
 
 160.208 
 
 .1950 
 
 1.2008 
 
 1.20662 
 
 41 
 
 7.504 
 
 1.0377 
 
 1.0428 
 
 1.04780 
 
 81 
 
 179.517 
 
 .2149 
 
 1.2208 
 
 1.22670 
 
 42 
 
 7.826 
 
 1.0381 
 
 1.0431 
 
 1.04814 
 
 82 
 
 201.590 
 
 1.2376 
 
 1.2437 
 
 1.24965 
 
 43 
 
 8.179 
 
 1.0384 
 
 1.0435 
 
 1.04851 
 
 83 
 
 226.934 
 
 1.2637 
 
 1.2699 
 
 1.27601 
 
 44 
 
 8.552 
 
 1.0388 
 
 1.0438 
 
 1.04889 
 
 84 
 
 256.346 
 
 1.2940 
 
 1.3003 
 
 1.30660 
 
 45 
 
 8.946 
 
 1.0392 
 
 1.0443 
 
 1.04931 
 
 85 
 
 290.463 
 
 1.3292 
 
 1.3356 
 
 .34208 
 
 46 
 
 9.374 
 
 1.0397 
 
 1.0447 
 
 1.04974 
 
 86 
 
 330.400 
 
 1.3703 
 
 1.3766 
 
 .38361 
 
 47 
 
 9.850 
 
 1.0401 
 
 1.0452 
 
 1.05024 
 
 87 
 
 377.700 
 
 1.4190 
 
 1.4259 
 
 .43280 
 
 48 
 
 10.376 
 
 1.0407 
 
 1.0457 
 
 1.05079 
 
 88 
 
 433.842 
 
 1.4769 
 
 1.4840 
 
 .49119 
 
 49 
 
 10.942 
 
 1.0413 
 
 1.0463 
 
 1.05138 
 
 89 
 
 501.910 
 
 1.5470 
 
 1.5545 
 
 .56199 
 
 50 
 
 11.577 
 
 1.0419 
 
 1.0470 
 
 1.05204 
 
 90 
 
 584.258 
 
 1.6318 
 
 1.6397 
 
 1.64763 
 
 51 
 
 12.295 
 
 1.0427 
 
 1.0477 
 
 1.05279 
 
 91 
 
 688.245 
 
 1.7389 
 
 1.7474 
 
 1.75578 
 
 52 
 
 13.065 
 
 1.0435 
 
 1.0485 
 
 1.05358 
 
 92 
 
 817.337 
 
 1.8719 
 
 1.8810 
 
 1.89003 
 
 53 
 
 13.943 
 
 1.0444 
 
 1.0494 
 
 1.05450 
 
 93 
 
 993.827 
 
 2.0536 
 
 2.0636 
 
 2.07358 
 
 54 
 
 14.895 
 
 1.0453 
 
 1.0504 
 
 1.05549 
 
 94 
 
 1219.180 
 
 2.2858 
 
 2.2968 
 
 2.30794 
 
 55 
 
 15.956 
 
 1.0464 
 
 1.0515 
 
 1.05659 
 
 95 
 
 1517.240 
 
 2.5928 
 
 2.6054 
 
 2.61793 
 
 56 
 
 17.148 
 
 1.0477 
 
 1.0527 
 
 1.05783 
 
 96 
 
 1900.000 
 
 2.9870 
 
 3.0014 
 
 3.01600 
 
 57 
 
 18.454 
 
 1.0490 
 
 1.0541 
 
 1.05919 
 
 97 
 
 2333.333 
 
 3.4333 
 
 3.4501 
 
 3.46667 
 
 58 
 
 19.887 
 
 1.0505 
 
 1.0556 
 
 1.06068 
 
 
 
 
 
 
 59 
 
 21.504 
 
 1.0522 
 
 1.0573 
 
 1.06237 
 
 
 
 
 
 
320 
 
 TABLE XL 
 MAKEHAMIZED NATIONAL FRATERNAL CONGRESS TABLE OF MORTALITY 
 
 (Graduation by Landis.) 
 
 Age. 
 
 Ix- 
 
 d x . 
 
 Px- 
 
 Qx. 
 
 MX. 
 
 20 
 
 100000 
 
 503 
 
 .99497 
 
 .00503 
 
 .005029 
 
 21 
 
 99497 
 
 504 
 
 .99493 
 
 .00507 
 
 .005062 
 
 22 
 
 98993 
 
 506 
 
 .99489 
 
 .00511 
 
 .005098 
 
 23 
 
 98487 
 
 507 
 
 .99485 
 
 .00515 
 
 .005138 
 
 24 
 
 97980 
 
 509 
 
 .994 SI 
 
 .00519 
 
 .005183 
 
 25 
 
 97471 
 
 511 
 
 .99476 
 
 .00524 
 
 .005232 
 
 26 
 
 96960 
 
 514 
 
 .99470 
 
 .00530 
 
 .005280 
 
 27 
 
 96446 
 
 517 
 
 .99464 
 
 .00536 
 
 .005346 
 
 28 
 
 95929 
 
 521 
 
 .99457 
 
 . 00543 
 
 .005412 
 
 29 
 
 95408 
 
 526 
 
 .99449 
 
 .00551 
 
 .005486 
 
 30 
 
 94882 
 
 531 
 
 .99440 
 
 .00560 
 
 .005567 
 
 31 
 
 94351 
 
 537 
 
 .99431 
 
 .00569 
 
 .005657 
 
 32 
 
 93814 
 
 543 
 
 .99421 
 
 .00579 
 
 .005756 
 
 33 
 
 93271 
 
 551 
 
 .99409 
 
 .00591 
 
 .005867 
 
 34 
 
 92720 
 
 560 
 
 .99396 
 
 .00604 
 
 .005988 
 
 35 
 
 92160 
 
 569 
 
 .99383 
 
 .00617 
 
 .006123 
 
 30 
 
 91591 
 
 580 
 
 .99367 
 
 .00633 
 
 .006272 
 
 37 
 
 91011 
 
 592 
 
 .99350 
 
 .00650 
 
 .006437 
 
 38 
 
 90419 
 
 606 
 
 .99330 
 
 .00670 
 
 .006620 
 
 39 
 
 89813 
 
 620 
 
 .99310 
 
 .00690 
 
 . 000822 
 
 40 
 
 89193 
 
 637 
 
 .99286 
 
 .00714 
 
 . 007045 
 
 41 
 
 88556 
 
 655 
 
 .99260 
 
 .00740 
 
 .007293 
 
 42 
 
 87901 
 
 676 
 
 .99231 
 
 .00769 
 
 .007566 
 
 43 
 
 87225 
 
 698 
 
 . 99200 
 
 .00800 
 
 .007809 
 
 44 
 
 86527 
 
 723 
 
 .99164 
 
 .00836 
 
 .008204 
 
 45 
 
 85804 
 
 749 
 
 .99127 
 
 .00873 
 
 .008575 
 
 46 
 
 85055 
 
 780 
 
 .99083 
 
 .00917 
 
 .008985 
 
 47 
 
 84275 
 
 812 
 
 .99036 
 
 .00964 
 
 .009439 
 
 48 
 
 83463 
 
 848 
 
 .98984 
 
 .01016 
 
 .009941 
 
 49 
 
 82615 
 
 888 
 
 .98925 
 
 .01075 
 
 .010496 
 
 50 
 
 81727 
 
 930 
 
 .98862 
 
 .01138 
 
 .011111 
 
 51 
 
 80797 
 
 976 
 
 .98792 
 
 .01208 
 
 .011791 
 
 52 
 
 79821 
 
 1028 
 
 .98712 
 
 .01288 
 
 .012544 
 
 53 
 
 78793 
 
 1082 
 
 .98627 
 
 .01373 
 
 .013377 
 
 54 
 
 77711 
 
 1141 
 
 .98532 
 
 .01468 
 
 .014298 
 
 55 
 
 76570 
 
 1206 
 
 .98425 
 
 .01575 
 
 .015318 
 
 56 
 
 75364 
 
 1275 
 
 .98308 
 
 .01692 
 
 .016446 
 
 57 
 
 74089 
 
 1349 
 
 .98179 
 
 .01821 
 
 .017694 
 
 58 
 
 72740 
 
 1428 
 
 .98037 
 
 .01963 
 
 .019075 
 
 59 
 
 71312 
 
 1512 
 
 .97880 
 
 .02120 
 
 .020603 
 
 60 
 
 69800 
 
 1601 
 
 .97706 
 
 .02294 
 
 .022293 
 
 61 
 
 68199 
 
 1696 
 
 .97513 
 
 .02487 
 
 .024164 
 
 62 
 
 66503 
 
 1795 
 
 .97301 
 
 .02699 
 
 .026234 
 
 63 
 
 64708 
 
 1898 
 
 .97067 
 
 .02933 
 
 .028524 
 
 64 
 
 62810 
 
 2005 
 
 .96808 
 
 .03192 
 
 .031058 
 
 65 
 
 60805 
 
 2114 
 
 .96523 
 
 .03477 
 
 .033862 
 
321 
 
 TABLE XL 
 
 MAKEHAMIZED NATIONAL FRATERNAL CONGRESS TABLE OF MORTALITY 
 
 Continued. 
 
 (Graduation by Landis Continued.) 
 
 Age. 
 
 1*. 
 
 d x . 
 
 Px. 
 
 Qx. 
 
 /V 
 
 66 
 
 58091 
 
 2225 
 
 .96209 
 
 .03791 
 
 .036995 
 
 67 
 
 56466 
 
 2337 
 
 .95861 
 
 .04139 
 
 .040387 
 
 68 
 
 54129 
 
 2447 
 
 .95479 
 
 .04521 
 
 .044185 
 
 69 
 
 51682 
 
 2554 
 
 .95058 
 
 .04942 
 
 .048398 
 
 70 
 
 49128 
 
 2656 
 
 .94594 
 
 .05406 
 
 .053048 
 
 71 
 
 46472 
 
 2750 
 
 .94082 
 
 .05918 
 
 .058193 
 
 72 
 
 43722 
 
 2832 
 
 .93523 
 
 .06477 
 
 .063885 
 
 73 
 
 40890 
 
 2902 
 
 .92903 
 
 .07097 
 
 .070184 
 
 74 
 
 37988 
 
 2954 
 
 .92224 
 
 .07776 
 
 .077154 
 
 75 
 
 35034 
 
 2985 
 
 .91480 
 
 .08520 
 
 .084865 
 
 76 
 
 32049 
 
 2993 
 
 .90661 
 
 .09339 
 
 .093397 
 
 77 
 
 29056 
 
 2974 
 
 .89765 
 
 .10235 
 
 .102838 
 
 78 
 
 26082 
 
 2925 
 
 .88785 
 
 .11215 
 
 .113284 
 
 79 
 
 23157 
 
 2846 
 
 .87710 
 
 . 12290 
 
 .124842 
 
 80 
 
 20311 
 
 2734 
 
 .86539 
 
 .13461 
 
 . 137631 
 
 81 
 
 17577 
 
 2591 
 
 .85259 
 
 . 14741 
 
 .151781 
 
 82 
 
 14986 
 
 2418 
 
 .83865 
 
 . 16135 
 
 .167438 
 
 83 
 
 12568 
 
 2218 
 
 .82352 
 
 . 17648 
 
 .184761 
 
 84 
 
 10350 
 
 1997 
 
 .80705 
 
 . 19295 
 
 .203929 
 
 85 
 
 8353 
 
 1761 
 
 .78918 
 
 .21082 
 
 .225138 
 
 86 
 
 6592 
 
 1516 
 
 .77002 
 
 .22998 
 
 .248605 
 
 87 
 
 5076 
 
 1273 
 
 .74921 
 
 .25079 
 
 .274570 
 
 88 
 
 3803 
 
 1038 
 
 .72706 
 
 .27294 
 
 .303299 
 
 89 
 
 2765 
 
 821 
 
 .70307 
 
 .29693 
 
 .335087 
 
 90 
 
 1944 
 
 627 
 
 .67747 
 
 .32253 
 
 .370259 
 
 91 
 
 1317 
 
 461 
 
 .64996 
 
 .35004 
 
 .409176 
 
 92 
 
 856 
 
 324 
 
 .62150 
 
 .37850 
 
 .452236 
 
 93 
 
 532 
 
 217 
 
 .59211 
 
 .40789 
 
 .499881 
 
 94 
 
 315 
 
 139 
 
 .55873 
 
 .44127 
 
 .552598 
 
 95 
 
 176 
 
 83 
 
 .52841 
 
 .47159 
 
 .610928 
 
 96 
 
 93 
 
 48 
 
 .48387 
 
 51613 
 
 .675468 
 
 97 
 
 45 
 
 24 
 
 .46667 
 
 .53333 
 
 .746879 
 
 98 
 
 21 
 
 12 
 
 .42857 
 
 .57143 
 
 .825893 
 
 99 
 
 9 
 
 6 
 
 .33333 
 
 .66667 
 
 .913319 
 
 100 
 
 3 
 
 3 
 
 .00000 
 
 1.00000 
 
 1.010053 
 
 Constants: k = 110239. 3. 
 
 s = .9955888. g = . 9994988. 
 
 c = 1.1064652. 
 
322 
 
 TABLE XII. 
 COMMUTATION COLUMNS. 
 
 Makehamizcd National Fraternal Congress Table of Mortality and 4 Per Cent Interest. 
 
 Age. 
 
 D x . 
 
 N. 
 
 Age. 
 
 D x . 
 
 N. 
 
 20 
 
 45639.0000 
 
 935010.000 
 
 61 
 
 6233.6000 
 
 67431.500 
 
 21 
 
 43663.0000 
 
 SS937 1.000 
 
 62 
 
 5844.8000 
 
 61197.900 
 
 22 
 
 41770.0000 
 
 ' 845708.000 
 
 63 
 
 5468.4000 
 
 55353 . 100 
 
 23 
 
 39959.0000 
 
 803938.000 
 
 64 
 
 5103.8000 
 
 49884.700 
 
 24 
 
 38224.0000 
 
 763979.000 
 
 65 
 
 4750.9000 
 
 44780.900 
 
 25 
 
 36563.0000 
 
 725755.000 
 
 
 
 
 
 
 
 66 
 
 4409.3000 
 
 40030.000 
 
 20 
 
 34973.0000 
 
 689192.000 
 
 67 
 
 4079.0000 
 
 35620.700 
 
 27 
 
 33449.0000 
 
 654219.000 
 
 68 
 
 3759.8000 
 
 31541.700 
 
 28 
 
 31990.0000 
 
 620770.000 
 
 69 
 
 3451.8000 
 
 27781.900 
 
 29 
 
 30593.0000 
 
 588780.000 
 
 70 
 
 3155.0000 
 
 24330.100 
 
 30 
 
 29254.0000 
 
 558187.000 
 
 
 
 
 
 
 
 71 
 
 2869.6000 
 
 21175.100 
 
 31 
 
 27971.0000 
 
 528933.000 
 
 72 
 
 2596.0000 
 
 18305.500 
 
 32 
 
 26743.0000 
 
 500962.000 
 
 73 
 
 2334.4000 
 
 15709.500 
 
 33 
 
 25565.0000 
 
 474219.000 
 
 74 
 
 2085.4000 
 
 13375.100 
 
 34 
 
 24436.0000 
 
 448654.000 
 
 75 
 
 1849.2000 
 
 11289.700 
 
 35 
 
 23355.0000 
 
 424218.000 
 
 
 
 
 
 
 
 76 
 
 1626.6000 
 
 9440.540 
 
 36 
 
 22318.0000 
 
 400863.000 
 
 77 
 
 1418.0000 
 
 7813.940 
 
 37 
 
 21324.0000 
 
 378545.000 
 
 78 
 
 1223.9000 
 
 6395.940 
 
 38 
 
 20370.0000 
 
 357221.000 
 
 79 
 
 1044.8000 
 
 5172.040 
 
 39 
 
 19455.0000 
 
 336851.000 
 
 80 
 
 881.1800 
 
 4127.240 
 
 40 
 
 18578.0000 
 
 317396.000 
 
 
 
 
 
 
 
 81 
 
 733.2200 
 
 3246.060 
 
 41 
 
 17736.0000 
 
 298818.000 
 
 82 
 
 601 . 1000 
 
 2512.840 
 
 42 
 
 16927.0000 
 
 281082.000 
 
 83 
 
 484.7200 
 
 1911.740 
 
 43 
 
 16151.0000 
 
 264155.000 
 
 84 
 
 383.8200 
 
 1427.020 
 
 44 
 
 15406.0000 
 
 248004.000 
 
 85 
 
 297.8500 
 
 1043.200 
 
 45 
 
 14690.. 0000 
 
 232598.000 
 
 
 
 
 
 
 
 86 
 
 226.0400 
 
 745.350 
 
 46 
 
 14001.0000 
 
 217908.000 
 
 87 
 
 167.3600 
 
 519.310 
 
 47 
 
 13339.0000 
 
 203907.000 
 
 88 
 
 120.5700 
 
 351.950 
 
 48 
 
 12703.0000 
 
 190568.000 
 
 89 
 
 84.2730 
 
 231.378 
 
 49 
 
 12090.0000 
 
 177865.000 
 
 90 
 
 56.9660 
 
 147 . 105 
 
 50 
 
 11500.0000 
 
 165775.000 
 
 
 
 
 
 
 
 91 
 
 37.1090 
 
 90.139 
 
 51 
 
 10932.0000 
 
 154275.000 
 
 92 
 
 23.2030 
 
 53.030 
 
 52 
 
 10384.0000 
 
 143343.000 
 
 93 
 
 13.8660 
 
 29.827 
 
 53 
 
 9856.5000 
 
 132958.600 
 
 94 
 
 7.8805 
 
 15.961 
 
 54 
 
 9347.2000 
 
 123102.100 
 
 95 
 
 4.2372 
 
 8.0805 
 
 55 
 
 8855.7000 
 
 113754.900 
 
 
 
 
 
 
 
 96 
 
 2.1426 
 
 3.8433 
 
 56 
 
 8381.0000 
 
 104899.200 
 
 97 
 
 1.0123 
 
 1.7007 
 
 57 
 
 7922.4000 
 
 96518.200 
 
 98 
 
 .44365 
 
 .68839 
 
 58 
 
 7479.0000 
 
 88595.800 
 
 99 
 
 .17892 
 
 .24474 
 
 59 
 
 7050.1000 
 
 81116.800 
 
 100 
 
 .065815 
 
 .065815 
 
 60 
 
 6635.2000 
 
 74066.700 
 
 
 
 
TABLE XIII. 
 ANNUITIES, SINGLE PREMIUMS AND ANNUAL PREMIUMS ONE LIFE. 
 
 Makehamized National Fraternal Congress Table of Mortality and 4 Per Cent Interest. 
 
 Age. 
 
 Immediate Life Annuity. 
 a x . 
 
 Single Premium Per $1,000. 
 
 A x . 
 
 Annual Premium Per $1,000. 
 P x . 
 
 20 
 
 $20.487 
 
 $212.02 
 
 $ 10.35 
 
 21 
 
 20.369 
 
 216.56 
 
 10.63 
 
 22 
 
 20.247 
 
 221.28 
 
 10.93 
 
 23 
 
 20.119 
 
 226.18 
 
 11.24 
 
 24 
 
 19.987 
 
 231.27 
 
 11.57 
 
 25 
 
 19.849 
 
 236.55 
 
 11.92 
 
 26 
 
 19.707 
 
 242.04 
 
 12.28 
 
 27 
 
 19.559 
 
 247.74 
 
 12.67 
 
 28 
 
 19.405 
 
 253.64 
 
 13.07 
 
 29 
 
 19.246 
 
 259.77 
 
 13.50 
 
 30 
 
 19.081 
 
 266.11 
 
 13.95 
 
 31 
 
 18.910 
 
 272.69 
 
 14.42 
 
 32 
 
 18.733 
 
 279.50 
 
 14.92 
 
 33 
 
 18.550 
 
 286.55 
 
 15.45 
 
 34 
 
 18.360 
 
 293.84 
 
 16.00 
 
 35 
 
 18.164 
 
 301.37 
 
 16.59 
 
 36 
 
 17.962 
 
 309.16 
 
 17.21 
 
 37 
 
 17.753 
 
 317.20 
 
 17.87 
 
 38 
 
 17.537 
 
 325.51 
 
 18.56 
 
 39 
 
 17.314 
 
 334.07 
 
 19.30 
 
 40 
 
 17.085 
 
 342.89 
 
 20.07 
 
 41 
 
 16.848 
 
 351.98 
 
 20.89 
 
 42 
 
 16.605 
 
 361.33 
 
 21.76 
 
 43 
 
 16.355 
 
 370.95 
 
 22.68 
 
 44 
 
 16.098 
 
 380.84 
 
 23.66 
 
 45 
 
 15.834 
 
 390.98 
 
 24.69 
 
 46 
 
 15.564 
 
 401.39 
 
 25.79 
 
 47 
 
 15.286 
 
 412.06 
 
 26.96 
 
 48 
 
 15.002 
 
 422.98 
 
 28.20 
 
 49 
 
 14.712 
 
 434.15 
 
 29.51 
 
 50 
 
 14.415 
 
 445.57 
 
 30.91 
 
 51 
 
 14.112 
 
 457.21 
 
 32.40 
 
 52 
 
 13.804 
 
 469.08 
 
 33.98 
 
 53 
 
 13.489 
 
 481.17 
 
 35 ,67 
 
 54 
 
 13.170 
 
 493.46 
 
 37.47 
 
 55 
 
 12.845 
 
 505.94 
 
 39.39 
 
 56 
 
 12.516 
 
 518.60 
 
 41.43 
 
 57 
 
 12.183 
 
 531.42 
 
 43.62 
 
 58 
 
 11.846 
 
 544.38 
 
 45.96 
 
 59 
 
 11.506 
 
 557.47 
 
 48.45 
 
 60 
 
 11.163 
 
 570.66 
 
 51.12 
 
 61 
 
 10.817 
 
 583.94 
 
 53.98 
 
 62 
 
 10.471 
 
 597.28 
 
 57.04 
 
 63 
 
 10.123 
 
 610.67 
 
 60.33 
 
 64 
 
 9.774 
 
 624.07 
 
 63.85 
 
 65 
 
 9.426 
 
 637.46 
 
 67.63 
 
 66 
 
 9.079 
 
 650.82 
 
 71.69 
 
 67 
 
 8.733 
 
 664.12 
 
 76.05 
 
 68 
 
 8.389 
 
 677.33 
 
 80.74 
 
 69 
 
 8.049 
 
 690.43 
 
 85.78 
 
 70 
 
 7.712 
 
 703.39 
 
 91.21 
 
 71 
 
 7.379 
 
 716.19 
 
 97.06 
 
 72 
 
 7.051 
 
 728.79 
 
 103.35 
 
 73 
 
 6.730 
 
 741.17 
 
 110.14 
 
 74 
 
 6.414 
 
 753.31 
 
 117.45 
 
 75 
 
 6.105 
 
 765 . 19 
 
 125.34 
 
 76 
 
 5.804 
 
 776.77 
 
 133.84 
 
 77 
 
 5. Ml 
 
 788.05 
 
 143.01 
 
 78 
 
 5.226 
 
 799.00 
 
 152.89 
 
 79 
 
 4.950 
 
 809.61 
 
 163.55 
 
 80 
 
 4.684 
 
 819.85 
 
 175.04 
 
324 
 
 TABLE XIV. 
 MAKEHAMIZED NATIONAL FRATERNAL 
 CONGRESS. 
 
 Table Showing the Addi- 
 tion to be made to the 
 Younger of Two Lives in 
 order to obtain the 
 Equivalent Equal Ages. 
 
 Age. 
 
 Ixx 
 
 dxx 
 
 log. Ixx 
 
 log. d xx 
 
 20 
 21 
 22 
 23 
 24 
 25 
 
 26 
 27 
 28 
 29 
 30 
 
 31 
 32 
 33 
 34 
 35 
 
 36 
 37 
 38 
 39 
 40 
 
 41 
 42 
 43 
 44 
 45 
 
 46 
 47 
 48 
 49 
 50 
 
 51 
 52 
 53 
 54 
 55 
 
 56 
 
 57 
 58 
 59 
 60 
 
 61 
 62 
 63 
 64 
 65 
 
 10000000000 
 9899700000 
 9799600000 
 9699700000 
 9000200000 
 9500800000 
 
 9401300000 
 9301900000 
 9202400000 
 9102700000 
 9002600000 
 
 8902000000 
 8801200000 
 8699400000 
 8596900000 
 8493600000 
 
 8388800000 
 8283000000 
 8175600000 
 8066400000 
 7955400000 
 
 7842100000 
 7726500000 
 7608200000 
 7486900000 
 7362400000 
 
 7234400000 
 7102300000 
 6966100000 
 6825300000 
 6679400000 
 
 6528100000 
 6371300000 
 6208400000 
 
 6039100000 
 5862900000 
 
 5679800000 
 5489100000 
 5291100000 
 5085500000 
 4872000000 
 
 4651000000 
 4422600000 
 4187100000 
 3945100000 
 3697300000 
 
 100300000 
 100100000 
 99900000 
 99500000 
 99400000 
 91)500000 
 
 99400000 
 99500000 
 99700000 
 100100000 
 100600000 
 
 100800000 
 101800000 
 102500000 
 103300000 
 104800000 
 
 105800000 
 107400000 
 109200000 
 111000000 
 113300000 
 
 115600000 
 118300000 
 121300000 
 124500000 
 128000000 
 
 132100000 
 136200000 
 140800000 
 145900000 
 151300000 
 
 156800000 
 162900000 
 169300000 
 
 176200000 
 183100000 
 
 190700000 
 198000000 
 205600000 
 213500000 
 221000000 
 
 228400000 
 235500000 
 242000000 
 247800000 
 252600000 
 
 10.0000000 
 9.9956174 
 .9912050 
 .9867596 
 .9822776 
 .9777552 
 
 .9731880 
 .9685712 
 .9638996 
 .9591674 
 .9543680 
 
 .9494944 
 .9445386 
 .9394918 
 .9343444 
 .9290856 
 
 .9237036 
 .9181852 
 .9125160 
 .9066800 
 .9006594 
 
 .8944344 
 .8879834 
 .8812822 
 .8743042 
 .8670200 
 
 .8593970 
 .8513992 
 .8429866 
 .8341150 
 .8247356 
 
 .8147942 
 .8042310 
 .7929798 
 .7809674 
 .7681128 
 
 .7543264 
 .7395090 
 .7235508 
 .7063304 
 .6877134 
 
 .6675510 
 .6456786 
 .6219142 
 .5960564 
 
 .5678824 
 
 8.00130 
 .00043 
 7.99957 
 .99782 
 .99739 
 .99782 
 
 .99739 
 .99782 
 .99870 
 8.00043 
 .00260 
 
 .00346 
 .00775 
 .01072 
 .01410 
 .02036 
 
 .02449 
 .03100 
 .03822 
 .04532 
 .05423 
 
 .06296 
 .07298 
 .08386 
 .09517 
 .10721 
 
 .12090 
 .13418 
 . 14860 
 .16406 
 . 17984 
 
 .19535 
 .21192 
 .22866 
 .24601 
 .26269 
 
 .28035 
 .29667 
 .31302 
 .32940 
 .34439 
 
 .35870 
 .37199 
 .38382 
 .39410 
 .40243 
 
 Difference of Ages. 
 (Years.) 
 
 Add to 
 Younger 
 Age. 
 
 1 
 
 .50 
 
 1.05 
 1.60 
 2.19 
 2.81 
 3.44 
 
 4.10 
 4.78 
 5.48 
 6.21 
 6.96 
 
 7.72 
 8.50 
 9.29 
 10.10 
 10.93 
 
 11.77 
 12.62 
 13.49 
 14.37 
 15.26 
 
 16.16 
 17.07 
 17.98 
 18.91 
 19.83 
 
 20.77 
 21.71 
 22.65 
 23.61 
 24.56 
 
 25.52 
 26.48 
 27.44 
 
 28.42 
 29.40 
 
 30.37 
 31.35 
 32.33 
 33.31 
 34.30 
 
 2 
 
 3 
 
 4 
 
 5 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 19 
 20 
 21 
 
 22 
 
 23 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 30 
 
 31 . 
 
 32.. 
 
 33 
 
 34 
 
 35 
 
 36 
 
 37 
 
 38 
 
 39 . . 
 
 40 
 41 
 
325 
 
 TABLE XIV. 
 MAKEHAMIZED NATIONAL FRATERNAL 
 CONGRESS Con tinned . 
 
 Table Showing the Addi- 
 tion to be made to the 
 Younger of Two Lives in 
 order to obtain the 
 Equivalent Equal Ages 
 
 Age. 
 
 Lx 
 
 d xx log. Ixx 
 
 log. dxx 
 
 
 
 
 
 
 Continued. 
 
 66 
 
 3444700000 
 
 256300000 
 
 .5371456 
 
 40S7'"i 
 
 
 67 
 68 
 69 
 
 3188400000 
 2929900000 
 2671000000 
 
 258500000 
 258900000 
 2574QOOOO 
 
 '5035730 
 .4668628 
 .4266810 
 
 . ^UO 1 O 
 
 .41246 
 .41313 
 .41061 
 
 Differences of Ages. 
 (Years.) 
 
 Add to 
 Younger 
 
 Acre 
 
 70 
 
 2413600000 
 
 254000000 
 
 .3826580 
 
 .40483 
 
 
 .rvgc. 
 
 71 
 
 2159600000 
 
 247900000 
 
 .3343848 
 
 .39428 
 
 42 
 
 35.28 
 
 72 
 
 1911700000 
 
 239700000 
 
 .2814088 
 
 .37967 
 
 43 
 
 36.27 
 
 73 
 
 1G720000CO 
 
 228900000 
 
 .2232294 
 
 .35965 
 
 44 
 
 37.26 
 
 74 
 
 1443100000 
 
 215700000 
 
 .1592926 
 
 .33385 
 
 45 
 
 38.25 
 
 75 
 
 1227400000 
 
 200300000 
 
 .0889854 
 
 .30168 
 
 46 
 
 39.24 
 
 76 
 
 1027100000 
 
 182850000 
 
 .0116296 
 
 .26210 
 
 47 
 
 40.23 
 
 77 
 
 844250000 
 
 163970000 
 
 8.9264748 
 
 .21476 
 
 48 
 
 41.22 
 
 78 
 
 680280000 
 
 144040000 
 
 .8326906 
 
 .15848 
 
 49 
 
 42.21 
 
 79 
 
 536240000 
 
 123710000 
 
 .7293582 
 
 .09240 
 
 50 
 
 43.20 
 
 80 
 
 412530000 
 
 103590000 
 
 .6154612 
 
 .01532 
 
 
 
 81 
 
 308940000 
 
 84370000 
 
 .4898748 
 
 7.92619 
 
 
 
 82 
 
 224570000 
 
 66620000 
 
 .3513544 
 
 .82360 
 
 
 
 83 
 
 157950000 
 
 50830000 
 
 . 1985230 
 
 .70612 
 
 
 
 84 
 
 107120000 
 
 37350000 
 
 .0298570 
 
 .57229 
 
 
 
 85 
 
 69770000 
 
 26309000 
 
 7.8436706 
 
 .42010 
 
 
 
 86 
 
 43461000 
 
 17693000 
 
 .6380984 
 
 .24780 
 
 
 
 87 
 
 25768000 
 
 11303000 
 
 .4110766 
 
 .05319 
 
 
 
 88 
 
 14465000 
 
 6821200 
 
 .1603216 
 
 6.83386 
 
 
 
 89 
 
 . 7643800 
 
 3866000 
 
 6.8833066 
 
 .58726 
 
 
 
 90 
 
 3777800 
 
 2043900 
 
 .5772358 
 
 .31046 
 
 
 
 91 
 
 1733900 
 
 1000700 
 
 .2390158 
 
 .00030 
 
 
 
 92 
 
 733200 
 
 450020 
 
 5.8652238 
 
 5.65323 
 
 
 
 93 
 
 283180 
 
 184240 
 
 .4520726 
 
 .26538 
 
 
 
 94 
 
 98940 
 
 68002 
 
 4.9953718 
 
 4.83252 
 
 
 
 95 
 
 30938 
 
 22382 
 
 .4904850 
 
 .34990 
 
 
 
 96 
 
 8556 
 
 6490 
 
 3.9322820 
 
 3.81224 
 
 
 
 97 
 
 2066 
 
 1637 
 
 .3150864 
 
 .21405 
 
 
 
 98 
 
 429 
 
 354 
 
 2.6326176 
 
 2.54900 
 
 
 
 99 
 
 75 
 
 64 
 
 1 . 8779264 
 
 1.80618 
 
 
 
 100 
 
 11 
 
 11 
 
 .0433234 
 
 .04139 
 
 
 
326 
 
 TABLE XV. 
 COMMUTATION COLUMNS FOR JOINT LIVES. 
 
 Makehamized National Fraternal Congress Table of Mortality and 4 Per Cent Interest. 
 
 Age. 
 
 D^ 
 
 NX* 
 
 Cxx 
 
 M xx 
 
 20 
 
 4563900000 
 
 83340300000 
 
 44015000 
 
 1358500000 
 
 21 
 
 4344300000 
 
 78776400000 
 
 42238000 
 
 1314500000 
 
 22 
 
 4135000000 
 
 74432100000 
 
 40532000 
 
 1272200000 
 
 23 
 
 3935400000 
 
 70297100000 
 
 38817000 
 
 1231700000 
 
 24 
 
 3745200000 
 
 66361700000 
 
 37287000 
 
 1192900000 
 
 25 
 
 3563900000 
 
 62616500000 
 
 35888000 
 
 1155600000 
 
 26 
 
 3390900000 
 
 59052600000 
 
 34474000 
 
 1119700000 
 
 27 
 
 3226000000 
 
 55661700000 
 
 33181000 
 
 1085200000 
 
 28 
 
 3068800000 
 
 52435700000 
 
 31969000 
 
 1052000000 
 
 29 
 
 2918800000 
 
 49366900000 
 
 30862000 
 
 1020100000 
 
 30 
 
 2775700000 
 
 46448100000 
 
 29824000 
 
 989200000 
 
 31 
 
 2639100000 
 
 43672400000 
 
 28734000 
 
 959380000 
 
 32 
 
 2508800000 
 
 41033300000 
 
 27903000 
 
 930650000 
 
 33 
 
 2384500000 
 
 38524500000 
 
 27014000 
 
 902740000 
 
 34 
 
 2265700000 
 
 36140000000 
 
 26178000 
 
 875730000 
 
 35 
 
 2152400000 
 
 33874300000 
 
 25536000 
 
 849550000 
 
 36 
 
 2044100000 
 
 31721900000 
 
 24789000 
 
 824020000 
 
 37 
 
 1940700000 
 
 29677800000 
 
 24195000 
 
 799230000 
 
 38 
 
 1841800000 
 
 27737100000 
 
 23655000 
 
 775030000 
 
 39 
 
 1747400000 
 
 25895300000 
 
 23120000 
 
 751380000 
 
 40 
 
 1657000000 
 
 24147900000 
 
 22691000 
 
 728260000 
 
 41 
 
 1570600000 
 
 22490900000 
 
 22262000 
 
 705570000 
 
 42 
 
 1487900000 
 
 20920300000 
 
 21905000 
 
 683300000 
 
 43 
 
 1408800000 
 
 19432400000 
 
 21597000 
 
 661400000 
 
 44 
 
 1333000000 
 
 18023600000 
 
 21314000 
 
 639800000 
 
 45 
 
 1260400000 
 
 16690600000 
 
 21071000 
 
 618490000 
 
 46 
 
 1190900000 
 
 15430200000 
 
 20909000 
 
 597420000 
 
 47 
 
 1124200000 
 
 14239300000 
 
 20729000 
 
 576510000 
 
 48 
 
 1060200000 
 
 13115100000 
 
 20605000 
 
 555780000 
 
 49 
 
 998810000 
 
 12054900000 
 
 20530000 
 
 535170000 
 
 50 
 
 939870000 
 
 11056100000 
 
 20471000 
 
 514640000 
 
 51 
 
 883270000 
 
 10116250000 
 
 20400000 
 
 494170000 
 
 52 
 
 828890000 
 
 9232980000 
 
 20377000 
 
 473770000 
 
 53 
 
 776630000 
 
 8404090000 
 
 20364000 
 
 453400000 
 
 54 
 
 726390000 
 
 7627460000 
 
 20379000 
 
 433030000 
 
 55 
 
 678080000 
 
 6901070000 
 
 20362000 
 
 412650000 
 
 56 
 
 631630000 
 
 6222990000 
 
 20392000 
 
 392290000 
 
 57 
 
 586960000 
 
 5591360000 
 
 20358000 
 
 371900000 
 
 58 
 
 544020000 
 
 5004400000 
 
 20326000 
 
 351540000 
 
 59 
 
 502760000 
 
 4460380000 
 
 20296000 
 
 331210000 
 
 60 
 
 463140000 
 
 3957620000 
 
 20200000 
 
 310920000 
 
 61 
 
 425130000 
 
 3494480000 
 
 20074000 
 
 290720000 
 
 62 
 
 388700000 
 
 3069350000 
 
 19902000 
 
 270640000 
 
 63 
 
 353850000 
 
 2680650000 
 
 19665000 
 
 250740000 
 
 64 
 
 320570000 
 
 2326800000 
 
 19361000 
 
 231080000 
 
 65 
 
 288880000 
 
 2006230000 
 
 18977000 
 
 211720000 
 
327 
 
 TABLE XV. 
 COMMUTATION COLUMNS FOR JOINT LIVES Continued. 
 
 Makehamized National Fraternal Congress Table of Mortality and 4 Per Cent Interest- 
 Continued. 
 
 Age. 
 
 D^ 
 
 N xx 
 
 c 
 
 MX* 
 
 66 
 
 258790000 
 
 1717350000 
 
 18515000 
 
 192740000 
 
 67 
 
 230320000 
 
 1458560000 
 
 17955000 
 
 174220000 
 
 68 
 
 203510000 
 
 1228240000 
 
 17291000 
 
 156270000 
 
 69 
 
 178390000 
 
 1024730000 
 
 16530000 
 
 138980000 
 
 70 
 
 155000000 
 
 846340000 
 
 15684000 
 
 122450000 
 
 71 
 
 133360000 
 
 691340000 
 
 14719000 
 
 106760000 
 
 72 
 
 113504000 
 
 557980000 
 
 13685000 
 
 92046000 
 
 73 
 
 95454000 
 
 444476000 
 
 12566000 
 
 78361000 
 
 74 
 
 79218000 
 
 349022000 
 
 11385000 
 
 65795000 
 
 75 
 
 64787000 
 
 269804000 
 
 10166000 
 
 54410000 
 
 76 
 
 52131000 
 
 205017000 
 
 8923400 
 
 44244000 
 
 77 
 
 41201000 
 
 152886000 
 
 7694100 
 
 35320000 
 
 78 
 
 31922000 
 
 111685000 
 
 6499100 
 
 27626000 
 
 79 
 
 24195000 
 
 79763000 
 
 5367000 
 
 21127000 
 
 80 
 
 17897000 
 
 55568000 
 
 4321400 
 
 15760000 
 
 81 
 
 12888000 
 
 37669600 
 
 3384200 
 
 11439000 
 
 82 
 
 9007800 
 
 24781600 
 
 2569400 
 
 8054600 
 
 83 
 
 6091900 
 
 15773800 
 
 1885000 
 
 5485200 
 
 84 
 
 3972400 
 
 9681900 
 
 1331900 
 
 3600200 
 
 85 
 
 2487900 
 
 5709500 
 
 902050 
 
 2268300 
 
 86 
 
 1490200 
 
 3221600 
 
 583310 
 
 1366300 
 
 87 
 
 849530 
 
 1731380 
 
 358310 
 
 782940 
 
 88 
 
 458550 
 
 881850 
 
 207920 
 
 424630 
 
 89 
 
 232991 
 
 423300 
 
 113310 
 
 216710 
 
 90 
 
 110720 
 
 190309 
 
 57601 
 
 103400 
 
 91 
 
 48863 
 
 79589 
 
 27116 
 
 45802 
 
 92 
 
 19868.2 
 
 30726 
 
 11725 
 
 18686 
 
 93 
 
 7378.6 
 
 10857.8 
 
 4615.8 
 
 6960.8 
 
 94 
 
 2478.8 
 
 3479.2 
 
 1638.1 
 
 2345. 
 
 95 
 
 745.28 
 
 1000.44 
 
 518.4 
 
 706.92 
 
 96 
 
 198.19 
 
 255.164 
 
 144.6 
 
 188.52 
 
 97 
 
 46.010 
 
 56.974 
 
 35.1 
 
 43.92 
 
 98 
 
 9 . 1907 
 
 10.9641 
 
 7.3 
 
 8.82 
 
 99 
 
 1.5546 
 
 1.7734 
 
 1.3 
 
 1.52 
 
 100 
 
 .21877 
 
 .21877 
 
 .22 
 
 .22 
 
328 
 
 TABLE XVI. 
 
 ANNUITIES, SINGLE PREMIUMS AND ANNUAL PREMIUMS TWO LIVES, 
 
 EQUAL AGES. 
 
 Makehamized National Fraternal Congress Table of Mortality and 4 Per Cent Interest. 
 
 
 Immediate Joint 
 Life Annuity 
 
 
 
 
 Immediate Joint 
 Life Annuity 
 
 
 
 Age 
 
 a xx 
 
 A xx 
 
 Pxx 
 
 Age 
 
 a xx 
 
 Axx 
 
 Pxx 
 
 20 
 
 18.2609 
 
 297.65 
 
 16.30 
 
 61 
 
 8.2199 
 
 683.85 
 
 83.19 
 
 21 
 
 18.1334 
 
 302.55 
 
 16.69 
 
 62 
 
 7.8965 
 
 696.28 
 
 88.18 
 
 22 
 
 18.0007 
 
 307.66 
 
 17.09 
 
 63 
 
 7.5758 
 
 708.62 
 
 93.54 
 
 23 
 
 17.8626 
 
 312.97 
 
 17.52 
 
 64 
 
 7.2583 
 
 720.83 
 
 99.31 
 
 24 
 
 17.7190 
 
 318.49 
 
 17.98 
 
 65 
 
 6.9449 
 
 732.89 
 
 105.53 
 
 25 
 
 17.5698 
 
 324.23 
 
 18.45 
 
 
 
 
 
 
 
 
 
 66 
 
 6.6361 
 
 744.76 
 
 112.23 
 
 26 
 
 17.4148 
 
 330.19 
 
 18.96 
 
 67 
 
 6.3326 
 
 756.43 
 
 119.45 
 
 27 
 
 17.2538 
 
 336.38 
 
 19.50 
 
 68 
 
 6.0351 
 
 767.88 
 
 127.23 
 
 28 
 
 17.0868 
 
 342.81 
 
 20.06 
 
 69 
 
 5.7442 
 
 779.07 
 
 135.63 
 
 29 
 
 16.9136 
 
 349.47 
 
 20.66 
 
 70 
 
 5.4604 
 
 789.98 
 
 144.68 
 
 30 
 
 16.7340 
 
 356.38 
 
 21.30 
 
 
 
 
 
 
 
 
 
 71 
 
 5.1841 
 
 800.61 
 
 154.43 
 
 31 
 
 16.5480 
 
 363.53 
 
 21.97 
 
 72 
 
 4.9160 
 
 SI 0.92 
 
 164.95 
 
 32 
 
 16.3555 
 
 370.93 
 
 22.68 
 
 73 
 
 4.6564 
 
 829.90 
 
 176.30 
 
 33 
 
 16.1561 
 
 378.59 
 
 23.43 
 
 74 
 
 4.4058 
 
 830.54 
 
 188.51 
 
 34 
 
 15.9506 
 
 386.51 
 
 24.23 
 
 75 
 
 4.1645 
 
 839.82 
 
 201.66 
 
 35 
 
 15.7381 
 
 394.68 
 
 25.08 
 
 
 
 
 
 
 
 
 
 76 
 
 3.9327 
 
 848.73 
 
 215.81 
 
 36 
 
 15.5187 
 
 403.12 
 
 25.98 
 
 77 
 
 3.7107 
 
 857.28 
 
 231.03 
 
 37 
 
 15.2926 
 
 411.82 
 
 26.93 
 
 78 
 
 3.4987 
 
 865.43 
 
 247.36 
 
 38 
 
 15.0595 
 
 420.78 
 
 27.94 
 
 79 
 
 3.2967 
 
 873.20 
 
 264.87 
 
 39 
 
 14.8198 
 
 430.00 
 
 29.02 
 
 80 
 
 3.1048 
 
 880.58 
 
 283.62 
 
 40 
 
 14.5732 
 
 439.49 
 
 30.16 
 
 
 
 
 
 
 
 
 
 81 
 
 2.9229 
 
 887.58 
 
 303.66 
 
 41 
 
 14.3199 
 
 449.23 
 
 31.37 
 
 82 
 
 2.7511 
 
 894.19 
 
 325.03 
 
 42 
 
 14.0600 
 
 459.22 
 
 32.66 
 
 83 
 
 2.5893 
 
 900.41 
 
 347.74 
 
 43 
 
 13.7936 
 
 469.47 
 
 34.04 
 
 84 
 
 2.4373 
 
 906.26 
 
 371., S3 
 
 44 
 
 13.5208 
 
 479.96 
 
 35.50 
 
 85 
 
 2.2949 
 
 911.73 
 
 397.29 
 
 45 
 
 13.2420 
 
 490.69 
 
 37.06 
 
 
 
 
 
 
 
 
 
 86 
 
 2.1619 
 
 916.85 
 
 424.09 
 
 46 
 
 12.9571 
 
 501.64 
 
 38.72 
 
 87 
 
 2.0381 
 
 921.61 
 
 452.20 
 
 47 
 
 12 . 6665 
 
 512.82 
 
 40.49 
 
 88 
 
 1.9230 
 
 926.03 
 
 481.53 
 
 48 
 
 12.3705 
 
 524.21 
 
 42.38 
 
 89 
 
 1.8168 
 
 930.12 
 
 511.95 
 
 49 
 
 12.0693 
 
 535.79 
 
 44.39 
 
 90 
 
 1.7188 
 
 933.88 
 
 543.34 
 
 50 
 
 11.7634 
 
 547.55 
 
 46.55 
 
 
 
 
 
 
 
 
 
 91 
 
 1.6288 
 
 937.35 
 
 575.48 
 
 51 
 
 11.4532 
 
 559.49 
 
 48.85 
 
 92 
 
 1.5465 
 
 940.52 
 
 608.16 
 
 52 
 
 11.1390 
 
 571.57 
 
 51.31 
 
 93 
 
 1.4715 
 
 943.40 
 
 641.10 
 
 53 
 
 10.8213 
 
 583.79 
 
 53.95 
 
 94 
 
 1.4036 
 
 946.01 
 
 673.99 
 
 54 
 
 10.5006 
 
 596.13 
 
 56.77 
 
 95 
 
 1.3424 
 
 948.37 
 
 706.49 
 
 55 
 
 10.1774 
 
 608.56 
 
 59.80 
 
 
 
 
 
 
 
 
 
 96 
 
 1.2875 
 
 950.48 
 
 738.25 
 
 56 
 
 9.8523 
 
 621.06 
 
 63.04 
 
 97 
 
 .2383 
 
 952.37 
 
 769.10 
 
 57 
 
 9.5260 
 
 633.61 
 
 66.51 
 
 98 
 
 .1930 
 
 954.12 
 
 799.80 
 
 58 
 
 9.1989 
 
 646.19 
 
 70.25 
 
 99 
 
 1 . 1 407 
 
 956.13 
 
 838.17 
 
 59 
 
 8.8718 
 
 658.77 
 
 74.26 
 
 100 
 
 . 0000 
 
 961.53 
 
 961.53 
 
 60 
 
 8.5452 
 
 671.33 
 
 78.56 
 
 
 
 
 
TABLE XVII. 
 
 FRATERNAL CONGRESS EXPERIENCE, FOUR PER CENT WHOLE LIFE 
 
 POLICY FOR $1000. 
 
 Age, 
 
 Net Reserve at End of Year. 
 
 1 
 
 * 
 
 3 
 
 4 
 
 5 
 
 6 
 
 ? 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 20 
 
 $ 5.78 
 
 $11.79 
 
 $18.04 
 
 $24.53 
 
 $31.27 
 
 $38.27 
 
 $45.53 
 
 $53.07 
 
 -160.89 
 
 $68.99 
 
 $77.37 
 
 $86.06 
 
 21 
 
 6.04 
 
 12.32 
 
 18.85 
 
 25.63 
 
 32.67 
 
 39.98 
 
 47 . 56 
 
 55.42 
 
 63.57 
 
 72.00 
 
 80.74 
 
 89.78 
 
 22 
 
 6.32 
 
 12.89 
 
 19.71 
 
 26.80 
 
 34.15 
 
 41 . 78 
 
 49.69 
 
 57.8S 
 
 66.37 
 
 75.16 
 
 84 26 
 
 93.66 
 
 23 
 
 6.62 
 
 13.48 
 
 20.61 
 
 28.01 
 
 35.69 
 
 43.65 
 
 51.89 
 
 60.44 
 
 69.28 
 
 78.43 
 
 87.90 
 
 97.68 
 
 24 
 
 6.91 
 
 14.09 
 
 21.54 
 
 29.26 
 
 37.28 
 
 45.58 
 
 54.18 
 
 63.08 
 
 72.30 
 
 81.83 
 
 91.67 
 
 101.85 
 
 25 
 
 7.23 
 
 14.73 
 
 22.51 
 
 30.58 
 
 38.94 
 
 47.60 
 
 56.56 
 
 65.84 
 
 75.44 
 
 85.35 
 
 95.60 
 
 106.18 
 
 26 
 
 7.55 
 
 15.39 
 
 23.52 
 
 31.94 
 
 40.66 
 
 49.69 
 
 59.04 
 
 68.70 
 
 78.69 
 
 89.01 
 
 99.66 
 
 110.65 
 
 27 
 
 7.90 
 
 10.09 
 
 24.57 
 
 33.36 
 
 42.46 
 
 51.88 
 
 61.62 
 
 71.68 
 
 82.08 
 
 92.82 
 
 103.89 
 
 115.29 
 
 28 
 
 8.26 
 
 16.81 
 
 25.67 
 
 34.84 
 
 44.33 
 
 54.15 
 
 64.29 
 
 74.77 
 
 85.59 
 
 96.75 
 
 108.25 
 
 120.08 
 
 29 
 
 8.62 
 
 17.56 
 
 26.81 
 
 36.38 
 
 46.27 
 
 56.50 
 
 67.07 
 
 77.98 
 
 89.23 
 
 100.82 
 
 112.76 
 
 125.04 
 
 30 
 
 9.01 
 
 18.34 
 
 28.00 
 
 37.98 
 
 48.30 
 
 58.96 
 
 69.96 
 
 81.31 
 
 93.00 
 
 105.04 
 
 117.43 
 
 130.16 
 
 31 
 
 9.41 
 
 19.15 
 
 29.22 
 
 39.64 
 
 50.39 
 
 61.50 
 
 72.95 
 
 84.75 
 
 96.90 
 
 109.40 
 
 122.25 
 
 135.43 
 
 32 
 
 9.84 
 
 20.01 
 
 30.52 
 
 41.38 
 
 52.59 
 
 64.15 
 
 76.06 
 
 88.33 
 
 100.95 
 
 113.91 
 
 127.22 
 
 140.88 
 
 33 
 
 10.27 
 
 20.88 
 
 31.85 
 
 43.17 
 
 54.85 
 
 66.87 
 
 79.26 
 
 92.00 
 
 105.10 
 
 118.54 
 
 132.33 
 
 146.47 
 
 34 
 
 10.73 
 
 21.81 
 
 33.25 
 
 45.05 
 
 57.20 
 
 69.72 
 
 82.59 
 
 95.83 
 
 109.41 
 
 123.34 
 
 137.62 
 
 152.28 
 
 35 
 
 11.20 
 
 22.77 
 
 34.69 
 
 46.98 
 
 59.63 
 
 72.64 
 
 86.02 
 
 99.75 
 
 113.83 
 
 128.27 
 
 143.08 
 
 158.27 
 
 36 
 
 11.69 
 
 23.75 
 
 36.18 
 
 48.97 
 
 62.13 
 
 75.66 
 
 89.55 
 
 103.79 
 
 118.39 
 
 133.37 
 
 148.73 
 
 164.46 
 
 37 
 
 12.19 
 
 24.76 
 
 37.70 
 
 51.02 
 
 64.71 
 
 78.76 
 
 93.17 
 
 107.95 
 
 123.10 
 
 138.64 
 
 154.56 
 
 170.84 
 
 38 
 
 12.73 
 
 25.84 
 
 39.32 
 
 53.18 
 
 67.40 
 
 81.99 
 
 96.95 
 
 112.29 
 
 128.02 
 
 144.13 
 
 160.61 
 
 177.47 
 
 30 
 
 13.27 
 
 26.93 
 
 40.96 
 
 55.37 
 
 70.14 
 
 85.30 
 
 100.84 
 
 116.77 
 
 133.09 
 
 149.79 
 
 166.86 
 
 184.31 
 
 40 
 
 13.84 
 
 28.07 
 
 42.67 
 
 57.64 
 
 73.00 
 
 88.75 
 
 104.90 
 
 121.44 
 
 138.36 
 
 155.66 
 
 173.34 
 
 191.36 
 
 41 
 
 14.43 
 
 29.23 
 
 44.42 
 
 59.99 
 
 75.96 
 
 92.34 
 
 109.11 
 
 126.26 
 
 143.81 
 
 161.74 
 
 180.02 
 
 198.65 
 
 42 
 
 15.03 
 
 30.44 
 
 46.23 
 
 62 . 44 
 
 79.05 
 
 96.07 
 
 113.48 
 
 131.29 
 
 149.47 
 
 168.02 
 
 186.92 
 
 206.15 
 
 43 
 
 15.65 
 
 31.69 
 
 48.14 
 
 65.01 
 
 82.29 
 
 99.96 
 
 118.04 
 
 136.50 
 
 155.33 
 
 174.52 
 
 194.05 
 
 213.89 
 
 44 
 
 16.30 
 
 33.02 
 
 50.15 
 
 67.70 
 
 85.66 
 
 104.02 
 
 122.78 
 
 141.91 
 
 161.41 
 
 181.24 
 
 201.40 
 
 221.88 
 
 45 
 
 16.99 
 
 34.41 
 
 52.25 
 
 70.51 
 
 89.18 
 
 108.25 
 
 127.69 
 
 147.51 
 
 167.67 
 
 188.17 
 
 208.98 
 
 230.07 
 
 46 
 
 17.72 
 
 35.87 
 
 54.44 
 
 73.43 
 
 92.83 
 
 112.61 
 
 132.77 
 
 153.28 
 
 174.14 
 
 195.31 
 
 216.76 
 
 238.47 
 
 47 
 
 18.47 
 
 37.38 
 
 56.71 
 
 76.46 
 
 96.60 
 
 117.12 
 
 138.00 
 
 159 . 23 
 
 180.79 
 
 202.62 
 
 224.73 
 
 247.09 
 
 48 
 
 19.26 
 
 38.96 
 
 59.08 
 
 79.60 
 
 100.51 
 
 121.79 
 
 143.42 
 
 165.37 
 
 187.62 
 
 210.15 
 
 232.92 
 
 255.91 
 
 49 
 
 20.08 
 
 40.60 
 
 61.51 
 
 82.84 
 
 104.53 
 
 126.58 
 
 148.97 
 
 171.66 
 
 194.62 
 
 217.85 
 
 241.29 
 
 264.91 
 
 50 
 
 20.93 
 
 42.28 
 
 64.04 
 
 86.18 
 
 108.68 
 
 131.53 
 
 154.69 
 
 178.12 
 
 201.82 
 
 225.74 
 
 249.84 
 
 274.09 
 
 51 
 
 21.80 
 
 44.03 
 
 66.64 
 
 89.63 
 
 112.97 
 
 136.61 
 
 160.55 
 
 184.76 
 
 209.18 
 
 233.80 
 
 258.57 
 
 283.44 
 
 52 
 
 22.72 
 
 45.84 
 
 69.34 
 
 93.19 
 
 117.37 
 
 141.84 
 
 166.59 
 
 191.56 
 
 216.73 
 
 242.04 
 
 267.47 
 
 292.97 
 
 53 
 
 23.65 
 
 47.70 
 
 72.11 
 
 96.85 
 
 121.89 
 
 147.21 
 
 172.71 
 
 198.52 
 
 224.42 
 
 250.44 
 
 276.53 
 
 302.66 
 
 54 
 
 24.62 
 
 49.63 
 
 74.96 
 
 100.61 
 
 126.54 
 
 152.71 
 
 179.09 
 
 205.63 
 
 232.28 
 
 259.00 
 
 285.76 
 
 312.49 
 
 55 
 
 25.64 
 
 51.61 
 
 77.91 
 
 104.50 
 
 131.33 
 
 158.37 
 
 185.58 
 
 212.90 
 
 240.30 
 
 267.73 
 
 295.14 
 
 322.46 
 
 56 
 
 26.66 
 
 53.64 
 
 80.93 
 
 108.47 
 
 136.23 
 
 164.14 
 
 192.19 
 
 220.31 
 
 248.46 
 
 276.59 
 
 304.63 
 
 332.54 
 
 57 
 
 27.73 
 
 55.77 
 
 84.06 
 
 112.58 
 
 141.26 
 
 170.07 
 
 198.96 
 
 227.88 
 
 256.78 
 
 285.59 
 
 314.27 
 
 342.75 
 
 58 
 
 28.84 
 
 57.94 
 
 87.27 
 
 116.77 
 
 146.40 
 
 176.12 
 
 205.85 
 
 235.58 
 
 265.21 
 
 294.71 
 
 324.01 
 
 353.06 
 
 59 
 
 29.96 
 
 60.16 
 
 90.53 
 
 121.05 
 
 151.64 
 
 182.28 
 
 212.88 
 
 243.39 
 
 273.76 
 
 303.93 
 
 333.84 
 
 363.42 
 
 60 
 
 31.13 
 
 62.44 
 
 93.90 
 
 125.44 
 
 157.02 
 
 188.57 
 
 220.02 
 
 251.33 
 
 282.43 
 
 313.26 
 
 343.76 
 
 373.86 
 
 61 
 
 32.32 
 
 64.79 
 
 97.34 
 
 129.93 
 
 162.49 
 
 194.96 
 
 227.27 
 
 259.37 
 
 291.20 
 
 322.67 
 
 353.74 
 
 384.36 
 
 62 
 
 33.55 
 
 67.19 
 
 100.88 
 
 134.53 
 
 168.07 
 
 201.47 
 
 234.64 
 
 267.53 
 
 300.06 
 
 332.16 
 
 363.80 
 
 394.88 
 
 63 
 
 34.80 
 
 69.66 
 
 104.47 
 
 139.18 
 
 173.74 
 
 208.06 
 
 242.09 
 
 275.75 
 
 308.97 
 
 341.71 
 
 373.87 
 
 405.41 
 
 64 
 
 36.11 
 
 72.19 
 
 108.15 
 
 143.95 
 
 179.51 
 
 214.77 
 
 249.64 
 
 284.06 
 
 317.97 
 
 351.29 
 
 383.97 
 
 415.94 
 
 65 
 
 37.42 
 
 74.73 
 
 111.88 
 
 148.77 
 
 185.35 
 
 221.53 
 
 257.23 
 
 292.42 
 
 326.99 
 
 360.89 
 
 394.06 
 
 426.44 
 
 66 
 
 38.76 
 
 77.35 
 
 115.67 
 
 153.67 
 
 191.26 
 
 228.36 
 
 264.91 
 
 300.82 
 
 336.04 
 
 370.50 
 
 404.14 
 
 436.91 
 
 67 
 
 40.14 
 
 80.01 
 
 119.55 
 
 158.65 
 
 197.24 
 
 235.27 
 
 272.63 
 
 309.27 
 
 345.12 
 
 380.12 
 
 414.21 
 
 447.32 
 
 68 
 
 41.54 
 
 82.72 
 
 123.46 
 
 163.67 
 
 203.28 
 
 242.21 
 
 280.38 
 
 317.73 
 
 354.19 
 
 389.71 
 
 424.20 
 
 457.64 
 
 69 
 
 42.97 
 
 85.47 
 
 127.42 
 
 168.76 
 
 209.37 
 
 249.20 
 
 288.16 
 
 326.20 
 
 363.26 
 
 399.25 
 
 434.14 
 
 467.87 
 
 70 
 
 44.41 
 
 88.24 
 
 131.43 
 
 173.87 
 
 215.48 
 
 256.20 
 
 295.95 
 
 334.67 
 
 372.28 
 
 408.73 
 
 443.97 
 
 477.96 
 
TABLE XVII. Continued. 
 
 FRATERNAL CONGRESS EXPERIENCE, FOUR PER CENT WHOLE LIFE 
 POLICY FOR $1000. Continued. 
 
 Age. 
 
 Net Reserve at End of Year. 
 
 13 
 
 fi 
 
 15 
 
 *9 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 
 
 * 
 
 20 
 
 95.05 
 
 04.35 
 
 13.95 
 
 23.87 
 
 34.12 
 
 44.69 
 
 55.57166.78 
 
 78.31 
 
 90.17 
 
 $ 
 202.33 
 
 $ 
 214.81 
 
 21 
 
 99.13 
 
 08.80 
 
 118.78 
 
 29.08 
 
 139.71 
 
 50.6)6 
 
 161.93 
 
 173.53 
 
 185.45 
 
 197.69 
 
 210.24 
 
 223.11 
 
 22 
 
 03.38 
 
 13.43 
 
 123.79 
 
 134.49 
 
 145.50 
 
 56.84 
 
 168.51 
 
 180.51 
 
 192.82 
 
 205.44 
 
 218.39 
 
 231.6)7 
 
 23 
 
 07.79 
 
 18.22 
 
 128.99 
 
 140.07 
 
 151.48 
 
 63.23 
 
 175.30 
 
 187.69 
 
 200.39 
 
 213.42 
 
 226.79 
 
 240.49 
 
 24 
 
 12.35 
 
 23.18 
 
 134.34 
 
 145.83 
 
 157.65 
 
 169.81 
 
 182.28 
 
 195.07 
 
 208.18 
 
 221.64 
 
 235.43 
 
 249.56 
 
 25 
 
 17.08 
 
 28.32 
 
 139.89 
 
 151.79 
 
 164.03 
 
 176.59 
 
 189.47 
 
 202.67 
 
 216.22 
 
 230.11 
 
 244.34 
 
 258.89 
 
 26 
 
 21.97 
 
 133.62 
 
 145.62 
 
 157.94 
 
 170.59 
 
 83.56 
 
 196.87 
 
 210.51 
 
 224.50 
 
 238.83 
 
 253.49 
 
 268.48 
 
 27 
 
 27.03 
 
 39.12 
 
 151.53 
 
 164.28 
 
 177.35 
 
 190.76 
 
 204.51 
 
 218.60 
 
 233.04 
 
 247.81 
 
 262.92 
 
 278.35 
 
 28 
 
 32.26 
 
 144.78 
 
 157.62 
 
 170.80 
 
 184.31 
 
 198.17 
 
 212.38 
 
 226.94 
 
 241.82 
 
 257,05 
 
 272! 61 
 
 288.47 
 
 29 
 
 37.66 
 
 150.61 
 
 163.90 
 
 177.52 
 
 191.50 
 
 205.83 
 
 220.50 
 
 235.51 
 
 250.87 
 
 266.55 
 
 282.54 
 
 298.85 
 
 30 
 
 43.23 
 
 156.63 
 
 170.37 
 
 184.47 
 
 198.92 
 
 213.72 
 
 228.86 
 
 244.35 
 
 260.17 
 
 276.30 
 
 292.75 
 
 309.47 
 
 31 
 
 48.95 
 
 162.82 
 
 177.05 
 
 191.63 
 
 206.56 
 
 221.85 
 
 237.47 
 
 253.44 
 
 269.72 
 
 286.31 
 
 303.19 
 
 320.35 
 
 32 
 
 154.87 
 
 169.23 
 
 183.96 
 
 199.03 
 
 214.46 
 
 230.24 
 
 246.35 
 
 262.79 
 
 279.54 
 
 296.58 
 
 313.90 
 
 331.49 
 
 33 
 
 160.97 
 
 175.84 
 
 191.07 
 
 206.65 
 
 222.58 
 
 238.86 
 
 255.45 
 
 272.37 
 
 289.58 
 
 307.08 
 
 324.84 
 
 342.84 
 
 34 
 
 167.30 
 
 182.68 
 
 198.42 
 
 214.52 
 
 230.97 
 
 247.74 
 
 264.83 
 
 282.22 
 
 299.89 
 
 317.84 
 
 336.03 
 
 354.44 
 
 35 
 
 173.82 
 
 189.73 
 
 206.00 
 
 222.63 
 
 239.58 
 
 256.85 
 
 274.43 
 
 292.30 
 
 310.44 
 
 328.83 
 
 347.43 
 
 366.25 
 
 36 
 
 180.55 
 
 197.01 
 
 213.82 
 
 230.96 
 
 248.44 
 
 266.21 
 
 284.28 
 
 302.63 
 
 321 22 
 
 340.04 
 
 359.07 
 
 378.28 
 
 37 
 
 187.49 
 
 204.51 
 
 221.85 
 
 239.53 
 
 257.52 
 
 275.80 
 
 294.37 
 
 313 . 18 
 
 332.22 
 
 351.48 
 
 370.93 
 
 390.49 
 
 38 
 
 194.70 
 
 212.25 
 
 230.15 
 
 248.36 
 
 266.87 
 
 285.66 
 
 304.71 
 
 323.98 
 
 343.48 
 
 363.15 
 
 382.98 
 
 402.92 
 
 39 
 
 202.09 
 
 220.22 
 
 238.66 
 
 257.42 
 
 276.45 
 
 295.74 
 
 315.26 
 
 335.01 
 
 354.94 
 
 375.02 
 
 395.22 
 
 415.51 
 
 40 
 
 209.74 
 
 228.43 
 
 247.43 
 
 266.72 
 
 286.27 
 
 306.06 
 
 326.07 
 
 346.26 
 
 366.62 
 
 387.09 
 
 407.65 
 
 428.27 
 
 41 
 
 217.60 
 
 236.87 
 
 256.43 
 
 276.25 
 
 296.32 
 
 316.61 
 
 337.09 
 
 357.73 
 
 378.48 
 
 399.34 
 
 420.35 
 
 441 . 18 
 
 42 
 
 225.70 
 
 245.55 
 
 265.66 
 
 286.02 
 
 306.61 
 
 327.39 
 
 348.33 
 
 36)9.39 
 
 390.55 
 
 411.76 
 
 433.00 
 
 454.22 
 
 43 
 
 234.05 
 
 254.47 
 
 275.13 
 
 296.04 
 
 317.13 
 
 338.39 
 
 359.77 
 
 381.26 
 
 402.79 
 
 424.36 
 
 445.90 
 
 467.38 
 
 44 
 
 242.62 
 
 263.62 
 
 284.85 
 
 306.28 
 
 327.88 
 
 349.60 
 
 371.42 
 
 393.30 
 
 415.21 
 
 437.10 
 
 458.91 
 
 480.64 
 
 45 
 
 251.41 
 
 273.00 
 
 294.78 
 
 316.74 
 
 338.82 
 
 301.01 
 
 383.25 
 
 405.52 
 
 427.77 
 
 449.95 
 
 472.03 
 
 493.96 
 
 46 
 
 260.44 
 
 282.59 
 
 304.93 
 
 327.40 
 
 349.96 
 
 372.59 
 
 395.24 
 
 417.88 
 
 440.44 
 
 462.90 
 
 485.21 
 
 507.33 
 
 47 
 
 269.65 
 
 292.39 
 
 315.26 
 
 338.23 
 
 361.27 
 
 384.33 
 
 407.37 
 
 430.34 
 
 453.21 
 
 475.92 
 
 498.44 
 
 520.72 
 
 48 
 
 279.07 
 
 302.37 
 
 325.78 
 
 349.25 
 
 372.75 
 
 396.22 
 
 419.62 
 
 442.92 
 
 466.06 
 
 489.01 
 
 511.70 
 
 534.10 
 
 49 
 
 288.66 
 
 312.53 
 
 336.46 
 
 360.42 
 
 384.36 
 
 408.22 
 
 431.98 
 
 455.57 
 
 478.97 
 
 502.10 
 
 524.94 
 
 547.45 
 
 50 
 
 298.44 
 
 322.86 
 
 347.31 
 
 371.74 
 
 396.09 
 
 420.33 
 
 444.41 
 
 468.29 
 
 491.90 
 
 515.21 
 
 538.17 
 
 560.74 
 
 51 
 
 308.39 
 
 333.36 
 
 358.31 
 
 383.18 
 
 407.94 
 
 432.53 
 
 456.92 
 
 481.04 
 
 504.84 
 
 528.30 
 
 551.34 
 
 573.94 
 
 52 
 
 318.50 
 
 344.01 
 
 369.43 
 
 394.75 
 
 419.89 
 
 444.82 
 
 469.47 
 
 493.81 
 
 517.79 
 
 541.34 
 
 564.45 
 
 587.05 
 
 53 
 
 328.76 
 
 354.77 
 
 380.67 
 
 406.40 
 
 431.91 
 
 457.14 
 
 482.04 
 
 506.57 
 
 530.68 
 
 554.32 
 
 577.45 
 
 600.03 
 
 54 
 
 339.14 
 
 365.67 
 
 392.01 
 
 418.14 
 
 443.98 
 
 469.49 
 
 494.62 
 
 519.31 
 
 543.52 
 
 567.21 
 
 590.34 
 
 612.88 
 
 55 
 
 349.65 
 
 376.67 
 
 403.45 
 
 429.95 
 
 456.09 
 
 481.86 
 
 507.17 
 
 532.00 
 
 556.29 
 
 580.00 
 
 603.10 
 
 625.53 
 
 56 
 
 360.26 
 
 387.76 
 
 414.95 
 
 441.78 
 
 468.23 
 
 494.21 
 
 519.68 
 
 544.61 
 
 568.95 
 
 592.66 
 
 615.68 
 
 638.00 
 
 57 
 
 370. 9S 
 
 398.93 
 
 426.50 
 
 453.66 
 
 480.36 
 
 506.53 
 
 532.14 
 
 557.15 
 
 581.50 
 
 605.16) 
 
 628.09 
 
 650.26 
 
 58 
 
 381. 7S 
 
 410.14 
 
 438.09 
 
 465.54 
 
 492.46 
 
 518.80 
 
 544.52 
 
 569.57 
 
 593.90 
 
 617.48 
 
 640.28 
 
 662.27 
 
 59 
 
 392.62 
 
 421.39 
 
 449.66 
 
 477.38 
 
 504.51 
 
 530.99 
 
 556.78 
 
 581.83 
 
 606.12 
 
 629.60 
 
 652.23 
 
 674.02 
 
 60 
 
 403.52 
 
 432.67 
 
 461.24 
 
 489.21 
 
 516.50 
 
 543.09 
 
 568.92 
 
 593.95 
 
 618.16 
 
 641.49 
 
 663.95 
 
 685.51 
 
 61 
 
 414.44 
 
 443.93 
 
 472.79 
 
 500.9" 
 
 528.41 
 
 555.07 
 
 580.90 
 
 605.89 
 
 629.97 
 
 653.15 
 
 675.41 
 
 696.71 
 
 62 
 
 425.36 
 
 455.19 
 
 484.30 
 
 512.66 
 
 540.21 
 
 566.91 
 
 592.73 
 
 617.62 
 
 641.57 
 
 664.57 
 
 686.58 
 
 707.61 
 
 63 
 
 436.2 
 
 466.40 
 
 495.74 
 
 524.24 
 
 551.87 
 
 578.58 
 
 604.34 
 
 629.12 
 
 652.92 
 
 675.70 
 
 697.46 
 
 718.21 
 
 64 
 
 447.1 
 
 477.56 
 
 507.09 
 
 535.71 
 
 563.39 
 
 590.07 
 
 615.75 
 
 640.41 
 
 664.01 
 
 686.55 
 
 708.05 
 
 728.47 
 
 65 
 
 457. 9 C 
 
 488.62 
 
 518.32 
 
 547.03 
 
 574.72 
 
 601.35 
 
 626.94 
 
 651.42 
 
 674.81 
 
 697.11 
 
 718.29 
 
 738.40 
 
 66 
 
 468.74 
 
 499.59 
 
 529.42 
 
 558.18 
 
 585.85 
 
 612.43 
 
 637.86 
 
 662.17 
 
 685.33 
 
 707.34 
 
 728.23 
 
 747.96 
 
 67 
 
 479.4 
 
 510.45 
 
 540.37 
 
 569.16 
 
 596.80 
 
 623.26 
 
 648.54 
 
 672.65 
 
 695.54 
 
 717.27 
 
 737.80 
 
 757.24 
 
 68 
 
 489.9 
 
 521.14 
 
 551.14 
 
 579.94 
 
 607.51 
 
 633.84 
 
 658.95 
 
 682.81 
 
 705.45 
 
 726.83 
 
 747.08 
 
 766.04 
 
 69 
 
 sqo*. as 
 
 531.68 
 
 561.74 
 
 590.56 
 
 617.98 
 
 644.17 
 
 669.06 
 
 692.68 
 
 714.99 
 
 736.12 
 
 755.90 
 
 774.63 
 
 70 
 
 510.66 
 
 542.06 
 
 572.11 
 
 600.82 
 
 628.20 
 
 654.20 
 
 678.88 
 
 702.19 
 
 724.27 
 
 744.94 
 
 764.51 
 
 782.20 
 
TABLE XVII. Continued. 
 
 FRATERNAL CONGRESS EXPERIENCE, FOUR PER CENT WHOLE LIFE 
 POLICY FOR $1000. Continued. 
 
 Age. 
 
 Net Reserve at End of Year. 
 
 25 
 
 26 
 
 27 
 
 <j)O 
 6O 
 
 29 
 
 30 
 
 31 
 
 32 
 
 33 
 
 34 
 
 35 
 
 36 
 
 20 
 
 227.60 
 
 240.73 
 
 254.18 
 
 267.96 
 
 282.06 
 
 296.48 
 
 111.21 
 
 326 . 23 
 
 % 
 341.54 
 
 $ 
 
 357.11 
 
 % 
 372.94 
 
 $ 
 389.02 
 
 21 
 
 236.31 
 
 249.84 
 
 263.70 
 
 277.88 
 
 292.39 
 
 307.20 
 
 322.31 
 
 337.70 
 
 353.37 
 
 369.29 
 
 385.46 
 
 401.85 
 
 22 
 
 245.29 
 
 259.23 
 
 273.50 
 
 288.09 
 
 302.99 
 
 318.19 
 
 333.68 
 
 349.44 
 
 365.47381.73 
 
 398.21 
 
 414.90 
 
 23 
 
 254.52 
 
 268.88 
 
 283.56 
 
 298.56 
 
 313.86 
 
 329.45 
 
 345.31 
 
 361.43 
 
 377.80 
 
 394.39 
 
 411.18 
 
 428.16 
 
 24 
 
 264.01 
 
 278.79 
 
 293.89 
 
 309.29 
 
 324.98 
 
 340.95 
 
 357.18 
 
 373.66 
 
 390.35 
 
 407.26 
 
 424.35 
 
 441.60 
 
 25 
 
 273.77 
 
 288.98 
 
 304.48 
 
 320.28 
 
 336.36 
 
 352.71 
 
 369.30 
 
 386.11 
 
 403.13 
 
 420.34 
 
 437.71 
 
 455.22 
 
 26 
 
 283.80 
 
 299.42 
 
 315.33 
 
 331.53 
 
 347.99 
 
 364.70 
 
 381.64 
 
 398.78 
 
 416.12 
 
 433.62 
 
 451.25 
 
 468.99 
 
 27 
 
 294.09 
 
 310.12 
 
 326.44 
 
 343.03 
 
 359.87 
 
 376.94 
 
 394.21 
 
 411.68 
 
 429.31 
 
 447.07 
 
 464.95 
 
 482.90 
 
 28 
 
 304.63 
 
 321.08 
 
 337.80 
 
 354.78 
 
 371.98 
 
 389.39 
 
 407.00 
 
 424.76 
 
 442.67 
 
 460.69 
 
 478.78 
 
 496.92 
 
 29 
 
 315.43 
 
 332.29 
 
 349.41 
 
 366.75 
 
 384.30 
 
 402.06 
 
 419.98 
 
 438.03 
 
 456.20 
 
 474.44 
 
 492.74 
 
 511.05 
 
 30 
 
 326.48 
 
 343.75 
 
 361.24 
 
 378.95 
 
 396.86 
 
 414.93 
 
 433.15 
 
 451.47 
 
 469.87 
 
 488.32 
 
 506.80 
 
 525.26 
 
 31 
 
 337.77 
 
 355.43 
 
 373.30 
 
 391.37 
 
 409.61 
 
 427.99 
 
 446.48 
 
 465.05 
 
 483.67 
 
 502.31 
 
 520.94 
 
 539.51 
 
 32 
 
 349.31 
 
 367.35 
 
 385.59 
 
 404.00 
 
 422.56 
 
 441.22 
 
 459.97 
 
 478.77 
 
 497.59 
 
 516.39 
 
 535.14 
 
 553.80 
 
 33 
 
 361.06 
 
 379.48 
 
 398.08 
 
 416.82 
 
 435.66 
 
 454.60 
 
 473.58 
 
 492.59 
 
 511.58 
 
 530.51 
 
 549.36 
 
 568.08 
 
 34 
 
 373.05 
 
 391.84 
 
 410.72 
 
 429.81 
 
 448.95 
 
 468.13 
 
 487.33 
 
 506.52 
 
 525.65 
 
 544.69 
 
 563.60 
 
 582.35 
 
 35 
 
 385.24 
 
 404.38 
 
 423.63 
 
 442.97 
 
 462.36 
 
 481.77 
 
 501 . 17 
 
 520.50 
 
 539.75 
 
 558.87 
 
 577.82 
 
 596.57 
 
 36 
 
 397.63 
 
 417.10 
 
 436.66 
 
 456.27 
 
 475.90 
 
 495.52 
 
 515.07 
 
 534.53 
 
 553.87 
 
 573.04 
 
 592.00 
 
 610.72 
 
 37 
 
 410.19 
 
 429.98 
 
 449.82 
 
 469.69 
 
 489.54 
 
 509.32 
 
 529.02 
 
 548.58 
 
 567.98 
 
 587.17 
 
 606.10 
 
 624.76 
 
 38 
 
 422.95 
 
 443.04 
 
 463.15 
 
 483.24 
 
 503.27 
 
 523.21 
 
 543.02 
 
 562.65 
 
 582.08 
 
 601.25 
 
 620.14 
 
 638.69 
 
 39 
 
 435.86 
 
 456.23 
 
 476.58 
 
 496.86 
 
 517.06 
 
 537.12 
 
 557.01 
 
 576.69 
 
 596.10 
 
 615.24 
 
 634.03 
 
 652.47 
 
 40 
 
 448.91 
 
 469.54 
 
 490.10 
 
 510.57 
 
 530.90 
 
 551.06 
 
 570.99 
 
 590.67 
 
 610.06 
 
 629.11 
 
 647.80 
 
 666.08 
 
 41 
 
 462.09 
 
 482.94 
 
 503.70 
 
 524.31 
 
 544.76 
 
 564.97 
 
 584.93 
 
 604.59 
 
 623.91 
 
 642.85 
 
 661.39 
 
 679.49 
 
 42 
 
 475.38 
 
 496.44 
 
 517.35 
 
 538.10 
 
 558.61 
 
 578.85 
 
 598.80 
 
 618.41 
 
 637.63 
 
 656.44 
 
 674.80 
 
 692.68 
 
 43 
 
 488.76 
 
 509.99 
 
 531.05 
 
 551.88 
 
 572.43 
 
 592.69 
 
 612.59 
 
 632.10 
 
 651.20 
 
 669.84 
 
 687.99 
 
 705.63 
 
 44 
 
 502.21 
 
 523.60 
 
 544.76 
 
 565.64 
 
 586.21 
 
 606.43 
 
 626.25 
 
 645.65 
 
 664.59 
 
 683.04 
 
 700.95 
 
 718.32 
 
 45 
 
 515.71 
 
 537.21 
 
 558.44 
 
 579.36 
 
 599.91 
 
 620.06 
 
 639.78 
 
 659.03 
 
 677.78 
 
 696.00 
 
 713.65 
 
 730.72 
 
 46 
 
 529.21 
 
 550.81 
 
 572.09 
 
 592.99 
 
 613.49 
 
 633.56 
 
 653.14 
 
 672.21 
 
 690.74 
 
 708.70 
 
 726.06 
 
 742.81 
 
 47 
 
 542.70 
 
 564.36 
 
 585.65 
 
 606.52 
 
 626.94 
 
 646.88 
 
 666.30 
 
 685.16 
 
 703.44 
 
 721.12 
 
 738.17 
 
 754.57 
 
 48 
 
 556.17 
 
 577.85 
 
 599.12 
 
 619.92 
 
 640.23 
 
 660.02 
 
 679.24 
 
 697.86 
 
 715.87 
 
 733.24 
 
 749.95 
 
 765.99 
 
 49 
 
 569.56 
 
 591.24 
 
 612.45 
 
 633.17 
 
 653.34 
 
 672.93 
 
 691.93 
 
 710.29 
 
 728.00 
 
 745.03 
 
 761.40 
 
 777.05 
 
 50 
 
 582.86 
 
 604.51 
 
 625.65 
 
 646.24 
 
 666.23 
 
 685.61 
 
 704.35 
 
 722.42 
 
 739.81 
 
 756.51 
 
 772.49 
 
 787.75 
 
 51 
 
 596.06 
 
 617.64 
 
 638.67 
 
 659.09 
 
 678.89 
 
 698.03 
 
 716.49 
 
 734.25 
 
 751.30 
 
 767.62 
 
 783.21 
 
 798.08 
 
 52 
 
 609.12 
 
 630.62 
 
 651.50 
 
 671.74 
 
 691.30 
 
 710.17 
 
 728.32 
 
 745.76 
 
 762.44 
 
 778.38 
 
 793.58 
 
 808.02 
 
 53 
 
 622.03 
 
 643.39 
 
 664.10 
 
 684.13 
 
 703.43 
 
 722.01 
 
 739.85 
 
 756.92 
 
 773.23 
 
 788.78 
 
 803.55 
 
 817.58 
 
 54 
 
 634.75 
 
 655.96 
 
 676.47 
 
 696.24 
 
 715.27 
 
 733.54 
 
 751.03 
 
 767.74 
 
 783.66 
 
 798.79 
 
 813.16 
 
 826.72 
 
 55 
 
 647.28 
 
 668.31 
 
 688.58 
 
 708.08 
 
 726.82 
 
 744.74 
 
 761.87 
 
 778.20 
 
 793.71 
 
 808.44 
 
 822.35 
 
 835.57 
 
 56 
 
 659.58 
 
 680.38 
 
 700.40 
 
 719.63 
 
 738.03 
 
 755.61 
 
 772.37 
 
 788.29 
 
 803.40 
 
 817.67 
 
 831.19 
 
 843.82 
 
 57 
 
 671.63 
 
 692.20 
 
 711.95 
 
 730.85 
 
 748.91 
 
 766.13 
 
 782.49 
 
 798.02 
 
 812.68 
 
 826.57 
 
 839.57 
 
 S51.84 
 
 58 
 
 683.42 
 
 703.74 
 
 723.18 
 
 741.75 
 
 759.46 
 
 776.29 
 
 792.26 
 
 807.34 
 
 821.62 
 
 834.99 
 
 847.65 
 
 859 . 10 
 
 59 
 
 694.94 
 
 714.96 
 
 734.08 
 
 752.32 
 
 769 . 64 
 
 786.08 
 
 801.61 
 
 816.32 
 
 830.09 
 
 843.12 
 
 854.91 
 
 865.71 
 
 60 
 
 706.15 
 
 725.87 
 
 744.67 
 
 762.53 
 
 779.48 
 
 795.49 
 
 810.65 
 
 824.84 
 
 838.28 
 
 850.43 
 
 861.57 
 
 872.14 
 
 61 
 
 717.06 
 
 736.46 
 
 754.90 
 
 772.39 
 
 788.91 
 
 804.56 
 
 819.21 
 
 833.08 
 
 845.62 
 
 857.12 
 
 868.03 
 
 880.86 
 
 62 
 
 727.66 
 
 746.71 
 
 764.79 
 
 781.86 
 
 798.04 
 
 813.18 
 
 827.51 
 
 840.47 
 
 852.35 
 
 863.62 
 
 876.88 
 
 904.44 
 
 63 
 
 737.91 
 
 756.62 
 
 774.29 
 
 791.03 
 
 806.69 
 
 821.52 
 
 834.93 
 
 847.22 
 
 858.88 
 
 872.60 
 
 901 . 12 
 
 
 64 
 
 747.85 
 
 766.15 
 
 783.49 
 
 799.72 
 
 815.08 
 
 828.98 
 
 841.71 
 
 853.80 
 
 868.01 
 
 897.56 
 
 
 
 65 
 
 757.39 
 
 775.38 
 
 792.22 
 
 808.15 
 
 822.57 
 
 835.78 
 
 848.32 
 
 863.06 
 
 893.72 
 
 
 
 
 66 
 
 766.65 
 
 784.14 
 
 800.69 
 
 S 15.67 
 
 829.40 
 
 842.42 
 
 857.74 
 
 889.59 
 
 
 
 
 
 67 
 
 775.43 
 
 792. 6f 
 
 808.24 
 
 822.52 
 
 836.07 
 
 852.00 
 
 885.14 
 
 
 
 
 
 
 68 
 
 783.99 
 
 800.22 
 
 815.10 
 
 829.21 
 
 845.81 
 
 880.33 
 
 
 
 
 
 
 
 69 
 
 791. 5f 
 
 807.08 
 
 821.81 
 
 839.13 
 
 875.15 
 
 
 
 
 
 
 
 
 70 
 
 798.42 
 
 813.81 
 
 831.91 
 
 869.54 
 
 
 
 
 
 
 
 
 
TABLE XVII. Continued. 
 
 FRATERNAL CONGRESS EXPERIENCE, FOUR PER CENT WHOLE LIFE 
 POLICY FOR $1000. Continued. 
 
 
 Net Reserve at End of Year. 
 
 Age. 
 
 37 
 
 38 
 
 39 
 
 40 
 
 41 
 
 42 
 
 43 
 
 44 
 
 45 
 
 46 
 
 47 
 
 48 
 
 20 
 
 $ 
 405.31 
 
 % 
 421.79 
 
 $ 
 438.47 
 
 $ 
 455.29 
 
 $ 
 472.25 
 
 489.31 
 
 506.44 
 
 523.62 
 
 540.82 
 
 558.01 
 
 57.5.14 
 
 592.20 
 
 21 
 
 418.43 
 
 435.20 
 
 452.12 
 
 469.18 
 
 486.34 
 
 503. .57 
 
 520.85 
 
 538.15 
 
 555 . 44 
 
 572.67 
 
 589.82 
 
 606.86 
 
 22 
 
 431.77 
 
 448.80 
 
 465.96 
 
 483.22 
 
 500.56 
 
 517.94 
 
 535.35 
 
 552.74 
 
 570.07 
 
 5S7.33 
 
 604.47 
 
 621.47 
 
 23 
 
 445.29 
 
 462.56 
 
 479.93 
 
 497.38 
 
 514.88 
 
 .532.39 
 
 549.89 
 
 567.34 
 
 584.71 
 
 (501.93 
 
 619.06 
 
 63.5.98 
 
 24 
 
 458.98 
 
 476.47 
 
 494.03 
 
 511.65 
 
 529.28 
 
 546.90 
 
 564.46 
 
 581.94 
 
 599.31 
 
 616.53 
 
 633.56 
 
 650.36 
 
 25 
 
 472.83 
 
 490.51 
 
 508.25 
 
 526.00 
 
 .543.74 
 
 561.43 
 
 579.03 
 
 596.52 
 
 61,3.86 
 
 631.01 
 
 647.93 
 
 664.61 
 
 26 
 
 486.80 
 
 504.67 
 
 522.55 
 
 540.42 
 
 .558.23 
 
 575 . 97 
 
 593.58 
 
 611.05 
 
 628.32 
 
 645.37 
 
 662.17 
 
 678 . 67 
 
 27 
 
 500.90 
 
 518.92 
 
 536.92 
 
 554.87 
 
 572.74 
 
 590.49 
 
 608.09 
 
 625.49 
 
 642.67 
 
 659.60 
 
 676.23 
 
 692.54 
 
 28 
 
 515.09 
 
 533.24 
 
 551.33 
 
 569.34 
 
 587.23 
 
 604.97 
 
 622.51 
 
 639.82 
 
 656 . 89 
 
 673.65 
 
 690.09 
 
 706.17 
 
 29 
 
 529.35 
 
 547.59 
 
 565.76 
 
 583.79 
 
 601.68 
 
 619.37 
 
 636.83 
 
 654.03 
 
 670.93 
 
 687.51 
 
 703.73 
 
 719.56 
 
 30 
 
 543.66 
 
 561.98 
 
 580.17 
 
 598.21 
 
 616.06 
 
 633.67 
 
 651.02 
 
 668.07 
 
 684.79 
 
 701.15 
 
 717.12 
 
 732.68 
 
 31 
 
 557.99 
 
 576.35 
 
 594.56 
 
 612.56 
 
 630.33 
 
 647.85 
 
 665.05 
 
 681.92 
 
 698.43 
 
 714.55 
 
 730.25 
 
 745.49 
 
 32 
 
 572.33 
 
 590.71 
 
 608.89 
 
 626.83 
 
 644.50 
 
 661.87 
 
 678.90 
 
 695.57 
 
 711.84 
 
 727.69 
 
 743.08 
 
 758.00 
 
 33 
 
 586.64 
 
 605.00 
 
 623.11 
 
 640.97 
 
 658.51 
 
 675.71 
 
 692.54 
 
 708 . 97 
 
 724.98 
 
 740.52 
 
 755.59 
 
 770.10 
 
 34 
 
 600.90 
 
 619.21 
 
 637.25 
 
 654.97 
 
 672.35 
 
 689.35 
 
 705.96 
 
 722.13 
 
 737.83 
 
 753.06 
 
 767.78 
 
 781.97 
 
 35 
 
 615.08 
 
 633.31 
 
 651.23 
 
 668.79 
 
 685.99 
 
 702.77 
 
 719.11 
 
 734.99 
 
 750.38 
 
 76.5.26 
 
 779.61 
 
 793.41 
 
 36 
 
 629.16 
 
 647.28 
 
 665.04 
 
 682.43 
 
 699.40 
 
 715.93 
 
 731.99 
 
 747.55 
 
 762.60 
 
 777.11 
 
 791.07 
 
 804.48 
 
 37 
 
 643.10 
 
 661.07 
 
 678.66 
 
 695.84 
 
 712.56 
 
 728.81 
 
 744.56 
 
 759.79 
 
 774.47 
 
 788.59 
 
 802.16 
 
 815.14 
 
 38 
 
 656.89 
 
 674.70 
 
 692.09 
 
 709.02 
 
 725.47 
 
 741.41 
 
 756.82 
 
 771.69 
 
 785.99 
 
 799.72 
 
 812.86 
 
 825.42 
 
 39 
 
 670.51 
 
 688.11 
 
 705.27 
 
 721.92 
 
 738.07 
 
 753.69 
 
 768.74 
 
 783.23 
 
 797.14 
 
 810.45 
 
 823.17 
 
 835.30 
 
 40 
 
 683.92 
 
 701.30 
 
 718.19 
 
 734.55 
 
 750.38 
 
 765.63 
 
 780.31 
 
 794.41 
 
 807.90 
 
 820.79 
 
 833.08 
 
 844.75 
 
 41 
 
 697.11 
 
 714.23 
 
 730.83 
 
 746.87 
 
 762.34 
 
 777.23 
 
 791.52 
 
 805 . 21 
 
 818.28 
 
 830.74 
 
 842.58 
 
 853.81 
 
 42 
 
 710.05 
 
 726.89 
 
 743.17 
 
 758.87 
 
 773.97 
 
 788.47 
 
 802.36 
 
 815.62 
 
 828.26 
 
 840.27 
 
 851.68 
 
 862.44 
 
 43 
 
 722.72 
 
 739.25 
 
 755.19 
 
 770.52 
 
 785.25 
 
 799.34 
 
 812.81 
 
 825.64 
 
 8.37.84 
 
 849.41 
 
 860.34 
 
 870.70 
 
 44 
 
 735.11 
 
 751.30 
 
 766.88 
 
 781.84 
 
 796.15 
 
 809.83 
 
 822.87 
 
 835.26 
 
 847.02 
 
 858.13 
 
 868.64 
 
 878.49 
 
 45 
 
 747.18 
 
 763.01 
 
 778.22 
 
 792.77 
 
 806.68 
 
 819.94 
 
 832.53 
 
 844.48 
 
 855.77 
 
 866.47 
 
 876.48 
 
 885.95 
 
 46 
 
 758.92 
 
 774.39 
 
 789.19 
 
 803.34 
 
 816.83 
 
 829.64 
 
 841.80 
 
 853.28 
 
 864.16 
 
 874.34 
 
 883.98 
 
 S92.70 
 
 47 
 
 770.32 
 
 785.39 
 
 799.79 
 
 813.52 
 
 826.56 
 
 838.94 
 
 850.63 
 
 861.71 
 
 872.07 
 
 881.89 
 
 890.76 
 
 898.90 
 
 48 
 
 781.35 
 
 796.02 
 
 810.01 
 
 823.30 
 
 835.91 
 
 847.82 
 
 859.11 
 
 869.67 
 
 879.66 
 
 888.72 
 
 896.99 
 
 904.86 
 
 49 
 
 792.01 
 
 806.28 
 
 819.83 
 
 832.69 
 
 844.83 
 
 856.34 
 
 867.11 
 
 877.30 
 
 886.52 
 
 894.99 
 
 902.99 
 
 912.42 
 
 50 
 
 802.31 
 
 816.13 
 
 829.26 
 
 841.65 
 
 853.39 
 
 864.38 
 
 874.78 
 
 884.19 
 
 892 . 82 
 
 901.00 
 
 910.62 
 
 930.63 
 
 51 
 
 812.20 
 
 825.61 
 
 838.27 
 
 850.26 
 
 861.48 
 
 872.11 
 
 881.72 
 
 890.53 
 
 898.88 
 
 908.71 
 
 929.15 
 
 
 52 
 
 821.72 
 
 834.66 
 
 846.92 
 
 858.40 
 
 869.26 
 
 879.08 
 
 888.09 
 
 896.63 
 
 906.68 
 
 927.57 
 
 
 
 53 
 
 830.82 
 
 843.36 
 
 855.10 
 
 866.22 
 
 876.27 
 
 885.48 
 
 894.23 
 
 904.51 
 
 925.89 
 
 
 
 
 54 
 
 839.57 
 
 851.59 
 
 862.98 
 
 873.27 
 
 882.71 
 
 891.66 
 
 902.19 
 
 924.09 
 
 
 
 
 
 55 
 
 847.85 
 
 859.52 
 
 870.07 
 
 879.75 
 
 888.93 
 
 899.73 
 
 922.18 
 
 
 
 
 
 
 56 
 
 855.82 
 
 866.65 
 
 876.58 
 
 886.01 
 
 897.09 
 
 920.13 
 
 
 
 
 
 
 
 57 
 
 863.00 
 
 873.20 
 
 882.88 
 
 894.27 
 
 917.94 
 
 
 
 
 
 
 
 
 58 
 
 869.59 
 
 879.54 
 
 891.25 
 
 915.60 
 
 
 
 
 
 
 
 
 
 59 
 
 875.97 
 
 888.02 
 
 913.09 
 
 
 60 
 
 884.57 
 
 910.41 
 
 
 Net Reserve at End of Year. 
 
 61 
 
 907.53 
 
 
 
 
 Age. 
 
 49 
 
 50 
 
 51 
 
 52 
 
 53 
 
 54 
 
 55 
 
 56 
 
 57 
 
 58 
 
 59 
 
 60 
 
 20 
 
 609.13 
 
 625.93 
 
 642.54 
 
 658.94 
 
 675.10 
 
 690.97 
 
 706.54 
 
 721.77 
 
 736.64 
 
 751 . 12 
 
 765.19 
 
 778.82 
 
 21 
 
 623.75 
 
 640.46 
 
 656.95 
 
 673.21 
 
 689.17 
 
 704.83 
 
 720.1.5 
 
 735.10 
 
 749.67 
 
 763.82 
 
 777.54 
 
 790. SO 
 
 22 
 
 638.28 
 
 654.87 
 
 671.22 
 
 687.28 
 
 703.04 
 
 718.45 
 
 733.50 
 
 748.15 
 
 762.39 
 
 776.18 
 
 789.53 
 
 802.39 
 
 23 
 
 652.68 
 
 669.13 
 
 685.30 
 
 701 . 15 
 
 716.66 
 
 731.80 
 
 746.55 
 
 760.88 
 
 774.76 
 
 788.19 
 
 801 . 13 
 
 813.59 
 
 24 
 
 666.93 
 
 683.20 
 
 699.16 
 
 714.77 
 
 730.01 
 
 744.86 
 
 759.28 
 
 773.26 
 
 786.78 
 
 799.81 
 
 812.35 
 
 824.39 
 
 25 
 
 681.00 
 
 697.06 
 
 712.79 
 
 728.14 
 
 743.09 
 
 757.61 
 
 771.69 
 
 785.29 
 
 798.42 
 
 811.04 
 
 823.17 
 
 834.77 
 
TABLE XVII. Continued. 
 
 FRATERNAL CONGRESS EXPERIENCE, FOUR PER CENT- 
 POLICY FOR $1000. Continued. 
 
 -WHOLE LIFE 
 
 A 
 
 Net Reserve at End of Year. 
 
 Aye. 
 
 49 
 
 50 
 
 51 
 
 52 
 
 53 
 
 54 
 
 55 
 
 56 
 
 57 
 
 58 
 
 59 
 
 60 
 
 
 % 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 26 
 
 694.86 
 
 710.70 
 
 726.16 
 
 741.22 
 
 755.84 
 
 770.02 
 
 783.72 
 
 796.95 
 
 809.67 
 
 821.88 
 
 833.57 
 
 844.74 
 
 27 
 
 708.49 
 
 724 . 07 
 
 739.25 
 
 753.99 
 
 768.27 
 
 782.09 
 
 795.40 
 
 808.23 
 
 820.53 
 
 832.30 
 
 843.56 
 
 854.28 
 
 28 
 
 721.88 
 
 737.17 
 
 752.03 
 
 766.43 
 
 780.35 
 
 793.78 
 
 806.69 
 
 819.10 
 
 830.97 
 
 842.31 
 
 853.13 
 
 863.40 
 
 29 
 
 734.98 
 
 749.96 
 
 764.48 
 
 778.52 
 
 792 . 06 
 
 805.08 
 
 817.59 
 
 829.56 
 
 841.00 
 
 851.90 
 
 862.26 
 
 872.09 
 
 30 
 
 747.79 
 
 762.43 
 
 776.60 
 
 790.25 
 
 803.39 
 
 816.00 
 
 828.08 
 
 839.62 
 
 850.61 
 
 861.06 
 
 870.98 
 
 880.35 
 
 31 
 
 760.27 
 
 774.56 
 
 788.34 
 
 SOI. 60 
 
 814.33 
 
 826.52 
 
 838.16 
 
 849.25 
 
 859. 80 '869. 80 
 
 879.26 
 
 888.21 
 
 32 
 
 772.42 
 
 786.33 
 
 799.72 
 
 S12.57 
 
 824.87 
 
 836.62 
 
 847.82 
 
 858.47 
 
 868.57878.11 
 
 887.15 
 
 895.61 
 
 33 
 
 784.21 
 
 797.72 
 
 S10.70 
 
 823.13 
 
 835.00 
 
 846.31 
 
 857.06 
 
 867.26 
 
 876.90886.03 
 
 894.57 
 
 902.66 
 
 34 
 
 795.63 
 
 SOS. 74 
 
 821.29 
 
 833.29 
 
 844.72 
 
 855.58 
 
 865.89 
 
 875.62 
 
 884.84 
 
 893.48 
 
 901.65 
 
 909.04 
 
 35 
 
 806.67 
 
 SI 9. 35 
 
 831.48 
 
 843.03 
 
 854.01 
 
 864.43 
 
 874.27 
 
 883.60 
 
 S92.32 
 
 900.58 
 
 908.05 
 
 914.90 
 
 36 
 37 
 
 817.31 
 
 827.55 
 
 829.57 
 S39.37 
 
 841.25 
 850.61 
 
 852.36 
 S61.27 
 
 862.90 
 871.34 
 
 S72.S5 
 880.88 
 
 882.28 
 889.81 
 
 891 . 10 
 
 898.26 
 
 899.45907.01 
 905.91 912.91 
 
 913.93920.50 
 919.56927.38 
 
 38 
 
 837.39 
 
 848.77 
 
 859.56 
 
 869.76 
 
 879.41 
 
 8SS.45 
 
 897.01904.75 
 
 911.84918.57 
 
 926 . 49 942 . 94 
 
 39 
 
 846.81 
 
 857.75 
 
 868.08 
 
 877.86 
 
 887.01 
 
 895.68 
 
 903.52 
 
 910.70 
 
 917.52 
 
 925.54 
 
 942.21 
 
 
 40 
 
 855.84 
 
 S66.30 
 
 876.22 
 
 885.49 
 
 894.28 
 
 902.22 
 
 909.50 
 
 916.41 
 
 924.54 
 
 941.43 
 
 
 
 41 
 
 864.43 
 
 874.48 
 
 883.89 
 
 892 . 79 
 
 900.85 
 
 908.23 
 
 915.24923.48 
 
 940.61 
 
 
 
 
 42 
 
 872.64 
 
 882.19 
 
 891 . 22 
 
 S99.40 
 
 906.89 
 
 914.00 
 
 922.36 
 
 939.74 
 
 
 
 
 
 43 
 
 880.39 
 
 889 . 56 
 
 897.86 
 
 905.47 
 
 912.69 
 
 921.17 
 
 938.82 
 
 
 
 
 
 
 44 
 
 887.81 
 
 896.24 
 
 903.97 
 
 911.30 
 
 919.92 
 
 937.85 
 
 
 
 
 
 
 
 4.1 
 
 894.52 
 
 902.38 
 
 909.83 
 
 918.59 
 
 936.82 
 
 
 
 
 
 
 
 
 46 
 
 900.69 
 
 908.27 
 
 917.19 
 
 935.73 
 
 
 
 
 
 
 
 
 
 47 
 
 )06.61 
 
 915.69 
 
 934.57 
 
 
 48 
 
 914.11 
 
 933.34 
 
 
 Net Reserve at End of Year. 
 
 .49 
 
 932.03 
 
 
 
 
 A(jc. 
 
 61 
 
 62 
 
 63 
 
 f>7 f 
 
 65 
 
 66 
 
 67 
 
 68 
 
 69 
 
 70 
 
 71 
 
 72 
 
 
 $ 
 
 % 
 
 % 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ 
 
 $ |$ 
 
 $ 
 
 20 
 
 792.01 
 
 804.72 
 
 816.95 
 
 828.70 
 
 839.94 
 
 850.68 
 
 860.92 
 
 870.65 
 
 879.88 
 
 888.60896.86 
 
 904.59 
 
 21 
 
 803.58 
 
 815.89 
 
 827.70 
 
 S39.00 
 
 849.81 
 
 860.11 
 
 869.89 
 
 879.18 
 
 887.95 
 
 896. 261904.04 
 
 911.40 
 
 22 
 
 814.77 
 
 826.66 
 
 S3S.03 
 
 848.91 
 
 859.26 
 
 869.10 
 
 878.45 
 
 887.27 
 
 895.63 
 
 903.45910.86 
 
 917.56 
 
 23 
 
 825.55 
 
 S37.00 
 
 847 . 94 
 
 858.37 
 
 868.27 
 
 S77.67 
 
 886.55 
 
 894.97 
 
 902.84 
 
 910.29,917.03 
 
 923.21 
 
 24 
 
 835.92 
 
 846.93 
 
 857.42 
 
 867.39 
 
 876.86 
 
 885.80 
 
 894.27 
 
 902.19 
 
 909.69 
 
 916.48 
 
 922.70 
 
 928.60 
 
 25 
 
 845.86 
 
 856.43 
 
 866.47 
 
 876.00 
 
 885.00 
 
 893.53 
 
 901.51 
 
 909.07 
 
 915.90 
 
 922.16 
 
 928.10 
 
 935.09 
 
 26 
 
 855.39 
 
 865.50 
 
 875 . 10 
 
 884.17 
 
 892.76 
 
 900.79 
 
 908.40 
 
 915.29 
 
 921.59 
 
 927.58934.62 
 
 949.26 
 
 27 
 
 864.48 
 
 874.15 
 
 883.29 
 
 891.94 
 
 900.04 
 
 907.71 
 
 914.64 
 
 921.00 
 
 927.03 
 
 934.12948.87 
 
 
 28 
 
 873.15 
 
 882.36 
 
 891.08 
 
 899.24 
 
 906.97 
 
 913.96 
 
 920.37 
 
 926.45 
 
 933.60 
 
 948 . 46 
 
 
 
 29 
 
 881.38 
 
 890.17 
 
 898.41 
 
 906.20 
 
 913.25 
 
 919.71 
 
 925.84 
 
 933.05 
 
 948.04 
 
 
 
 
 30 
 
 889.22 
 
 897.52 
 
 905.38 
 
 912.49 
 
 919.01 
 
 925.19 
 
 932.46 
 
 947.58 
 
 
 
 
 
 31 
 
 896.59 
 
 904.52 
 
 911.69 
 
 918.27 
 
 924.51 
 
 931.85 
 
 947.11 
 
 
 
 
 
 
 32 
 
 903.61 
 
 910.86 
 
 917.50 
 
 923.79 
 
 931.20 
 
 946.60 
 
 
 
 
 
 
 
 33 
 
 909.97 
 
 916.67 
 
 923.04 
 
 930.52 
 
 946.07 
 
 
 
 
 
 
 
 
 34 
 
 915.81 
 
 922.24 
 
 929.80 
 
 945.51 
 
 
 
 
 
 
 
 
 
 35 
 36 
 37 
 
 921 .39 
 928.23 
 943.64 
 
 929 . 04 
 944.30 
 
 944 . 92 
 
 Net Reserve at End of Year. 
 
 Age. 
 
 73 
 
 u 
 
 75 
 
 76 
 
 77 
 
 78 
 
 
 
 
 
 
 
 20 
 
 $ 
 911.91 
 
 $ 
 
 918.53 
 
 $ 
 924.60 
 
 $ 
 930.35 
 
 $ 
 937.12 
 
 $ 
 951.20 
 
 
 
 
 
 
 
 21 
 
 918.05 
 
 924.16 
 
 929.95 
 
 936.76 
 
 950.92 
 
 
 
 
 
 
 
 
 22 
 
 923.70 
 
 929 . 52 
 
 936.37 
 
 950.62 
 
 
 
 
 
 
 
 
 
 23 
 
 929.07 
 
 935.97 
 
 950.30 
 
 
 
 
 
 
 
 
 
 
 24 
 
 935.54 
 
 949 . 97 
 
 
 
 
 
 
 
 
 
 
 
 25 
 
 949.62 
 
 
 
 
 
 
 
 
 
 
 
 
334 
 
 TABLE XVIII. 
 AMERICAN EXPERIENCE MORTALITY TABLE. 
 
 X 
 
 lx 
 
 dx 
 
 1000 q K 
 
 e x 
 
 X 
 
 l x 
 
 d* 
 
 1000 q x 
 
 e x 
 
 10 
 
 100,000 
 
 749 
 
 7.490 
 
 48.72 
 
 53 
 
 66,797 
 
 1,091 
 
 16.333 
 
 18.79 
 
 11 
 
 99,251 
 
 746 
 
 7.516 
 
 48.08 
 
 54 
 
 65,706 
 
 1,143 
 
 17.396 
 
 18.09 
 
 12 
 
 98,505 
 
 743 
 
 7.543 
 
 47.45 
 
 55 
 
 64,563 
 
 1,199 
 
 18.571 
 
 17.40 
 
 13 
 
 97,762 
 
 740 
 
 7.569 
 
 46.80 
 
 56 
 
 63,364 
 
 1,260 
 
 19.885 
 
 16.72 
 
 14 
 
 97,022 
 
 737 
 
 7.596 
 
 46.16 
 
 57 
 
 62,104 
 
 1,325 
 
 21.335 
 
 16.05 
 
 15 
 
 96,285 
 
 735 
 
 7.634 
 
 45.50 
 
 58 
 
 60,779 
 
 1,394 
 
 22.936 
 
 15.39 
 
 16 
 
 95,550 
 
 732 
 
 7.661 
 
 44.85 
 
 59 
 
 59,385 
 
 1,468 
 
 24.720 
 
 14.74 
 
 17 
 
 94,818 
 
 729 
 
 7.688 
 
 44.19 
 
 60 
 
 57,917 
 
 1,546 
 
 26.693 
 
 14.10 
 
 18 
 
 94,089 
 
 727 
 
 7.727 
 
 43.53 
 
 61 
 
 56,371 
 
 1,628 
 
 28.880 
 
 13.47 
 
 19 
 
 93,362 
 
 725 
 
 7.765 
 
 42.87 
 
 62 
 
 54,743 
 
 1,713 
 
 31.292 
 
 12.86 
 
 20 
 
 92,637 
 
 723 
 
 7.805 
 
 42.20 
 
 63 
 
 53,030 
 
 1,SOO 
 
 33.943 
 
 12.26 
 
 21 
 
 91,914 
 
 722 
 
 7.855 
 
 41 .53 
 
 64 
 
 51,230 
 
 1,889 
 
 36.873 
 
 11.67 
 
 22 
 
 91,192 
 
 721 
 
 7.906 
 
 40.85 
 
 65 
 
 49,341 
 
 1,980 
 
 40.129 
 
 11.10 
 
 23 
 
 90,471 
 
 720 
 
 7.958 
 
 40.17 
 
 66 
 
 47,361 
 
 2,070 
 
 43.707 
 
 10.54 
 
 24 
 
 89,751 
 
 719 
 
 8.011 
 
 39.49 
 
 67 
 
 45,291 
 
 2,158 
 
 47.647 
 
 10.00 
 
 25 
 
 89,032 
 
 718 
 
 8.065 
 
 38.81 
 
 68 
 
 43,133 
 
 2,243 
 
 52.002 
 
 9.47 
 
 26 
 
 88,314 
 
 718 
 
 8.130 
 
 38.12 
 
 69 
 
 40,890 
 
 2,321 
 
 56.762 
 
 8.97 
 
 27 
 
 87,596 
 
 718 
 
 8.197 
 
 37.43 
 
 70 
 
 38,569 
 
 2,391 
 
 61.993 
 
 ' 8.48 
 
 28 
 
 86,878 
 
 718 
 
 8.264 
 
 36.73 
 
 71 
 
 36,178 
 
 2,448 
 
 67.665 
 
 8.00 
 
 29 
 
 86,160 
 
 719 
 
 8.345 
 
 36.03 
 
 72 
 
 33,730 
 
 2,487 
 
 73.733 
 
 7.55 
 
 30 
 
 85,441 
 
 720 
 
 8.427 
 
 35.33 
 
 73 
 
 31,243 
 
 2,505 
 
 80.178 
 
 7.11 
 
 31 
 
 84,721 
 
 721 
 
 8.510 
 
 34.63 
 
 74 
 
 28,738 
 
 2,501 
 
 87.028 
 
 6.68 
 
 32 
 
 84,000 
 
 723 
 
 8.607 
 
 33.92 
 
 75 
 
 26,237 
 
 2,476 
 
 94.371 
 
 6.27 
 
 33 
 
 83,277 
 
 726 
 
 8.718 
 
 33.21 
 
 76 
 
 23,761 
 
 2,431 
 
 102.311 
 
 5.88 
 
 34 
 
 82,551 
 
 729 
 
 8.831 
 
 32.50 
 
 77 
 
 21,330 
 
 2,369 
 
 111.064 
 
 5.49 
 
 35 
 
 81,822 
 
 732 
 
 8.946 
 
 31.78 
 
 78 
 
 18,961 
 
 2,291 
 
 120.827 
 
 5.11 
 
 36 
 
 81,090 
 
 737 
 
 9.089 
 
 31.07 
 
 79 
 
 16,670 
 
 2,196 
 
 131.734 
 
 4.74 
 
 37 
 
 80,353 
 
 742 
 
 9.234 
 
 30.35 
 
 80 
 
 14,474 
 
 2,091 
 
 144.466 
 
 4.39 
 
 38 
 
 79,611 
 
 749 
 
 9.408 
 
 29.62 
 
 81 
 
 12,383 
 
 1,964 
 
 158.605 
 
 4.05 
 
 39 
 
 78,862 
 
 756 
 
 9.586 
 
 28.90 
 
 82 
 
 10,419 
 
 1,816 
 
 174.297 
 
 3.71 
 
 40 
 
 78,106 
 
 765 
 
 9.794 
 
 28.18 
 
 83 
 
 8,603 
 
 1,648 
 
 191.561 
 
 3.39 
 
 41 
 
 77,341 
 
 774 
 
 10.008 
 
 27.45 
 
 84 
 
 6,955 
 
 1,470 
 
 211.359 
 
 3.08 
 
 42 
 
 76,567 
 
 785 
 
 10.252 
 
 26.72 
 
 85 
 
 5,485 
 
 1,292 
 
 235.552 
 
 2.77 
 
 43 
 
 75,782 
 
 797 
 
 10.517 
 
 26.00 
 
 86 
 
 4,193 
 
 1,114 
 
 265.681 
 
 2.47 
 
 44 
 
 74,985 
 
 812 
 
 10.829 
 
 25.27 
 
 87 
 
 3,079 
 
 933 
 
 303.020 
 
 2.18 
 
 45 
 
 74,173 
 
 828 
 
 11.163 
 
 24.54 
 
 88 
 
 2,146 
 
 744 
 
 346.692 
 
 1.91 
 
 46 
 
 73,345 
 
 848 
 
 11.562 
 
 23.81 
 
 89 
 
 1,402 
 
 555 
 
 395.863 
 
 1.66 
 
 47 
 
 72,497 
 
 870 
 
 12.000 
 
 23.08 
 
 90 
 
 847 
 
 385 
 
 454.545 
 
 1.42 
 
 48 
 
 71,627 
 
 896 
 
 12.509 
 
 22.36 
 
 91 
 
 462 
 
 246 
 
 532.466 
 
 1.19 
 
 49 
 
 70,731 
 
 927 
 
 13.106 
 
 21.63 
 
 92 
 
 216 
 
 137 
 
 634.259 
 
 .98 
 
 50 
 
 69,804 
 
 962 
 
 13.781 
 
 20.91 
 
 93 
 
 79 
 
 58 
 
 734.177 
 
 .80 
 
 51 
 
 68,842 
 
 1,001 
 
 14.541 
 
 20.20 
 
 94 
 
 21 
 
 18 
 
 857.143 
 
 .64 
 
 52 
 
 67,841 
 
 1,044 
 
 15.389 
 
 19.49 
 
 95 
 
 3 
 
 3 
 
 1000.000 
 
 .50 
 
335 
 
 TABLE XIX. 
 
 AMERICAN EXPERIENCE FOUR PER CENT. 
 Commutation Columns. 
 
 X 
 
 D* 
 
 N x 
 
 M x 
 
 Rx 
 
 10 
 
 6755.641 
 
 137908.321 
 
 1451.4759 
 
 42004.234 
 
 11 
 
 8447.156 
 
 131152.680 
 
 1402.8223 
 
 40552.758 
 
 12 
 
 6152.593 
 
 124705.524 
 
 1356.2274 
 
 39149.936 
 
 13 
 
 5871.333 
 
 118552.931 
 
 1311.6047 
 
 37793.709 
 
 14 
 
 5602.778 
 
 112681.598 
 
 1268.8716 
 
 36482.104 
 
 15 
 
 5346.364 
 
 107078.820 
 
 1227.9486 
 
 35213.232 
 
 16 
 
 5101.492 
 
 101732.456 
 
 1188.7063 
 
 33985.283 
 
 17 
 
 4867.702 
 
 96630.964 
 
 1151.1274 
 
 32796.577 
 
 18 
 
 4644.497 
 
 91763.262 
 
 1115.1419 
 
 31645.449 
 
 19 
 
 4431.356 
 
 87118.765 
 
 1080.6354 
 
 30530.307 
 
 20 
 
 4227.832 
 
 82687.409 
 
 1047.5473 
 
 29449.672 
 
 21 
 
 4033.496 
 
 78459.577 
 
 1015.8196 
 
 28402.125 
 
 22 
 
 3847.894 
 
 74426.081 
 
 985.3544 
 
 27386.305 
 
 23 
 
 3670.647 
 
 70578.187 
 
 956.1015 
 
 26400.951 
 
 24 
 
 3501.380 
 
 66907.540 
 
 928.0128 
 
 25444.849 
 
 25 
 
 3339.739 
 
 63406.160 
 
 901.0419 
 
 24516.836 
 
 26 
 
 3185.391 
 
 60066.421 
 
 875.1444 
 
 23615.794 
 
 27 
 
 3037.974 
 
 56881.030 
 
 850.2430 
 
 22740.650 
 
 28 
 
 2897.185 
 
 53843.056 
 
 826.2993 
 
 21890.407 
 
 29 
 
 2762.733 
 
 50945.871 
 
 803.2765 
 
 21064.108 
 
 30 
 
 2634.305 
 
 48183.138 
 
 781 . 1084 
 
 20260.831 
 
 31 
 
 2511.641 
 
 45548.833 
 
 759.7633 . 
 
 19479.723 
 
 32 
 
 2394.487 
 
 43037.192 
 
 739.2106 
 
 18719.961 
 
 33 
 
 2282.574 
 
 40642.705 
 
 719.3936 
 
 17980.750 
 
 34 
 
 2175.649 
 
 38360.131 
 
 700.2597 
 
 17261.356 
 
 35 
 
 2073.496 
 
 36184.482 
 
 681.7857 
 
 16561.096 
 
 36 
 
 1975.910 
 
 34110.986 
 
 663.9491 
 
 15879.310 
 
 37 
 
 1882.645 
 
 32135.076 
 
 646.6814 
 
 15215.361 
 
 38 
 
 1793.520 
 
 30252.431 
 
 629.9652 
 
 14568.680 
 
 39 
 
 1708.314 
 
 28458.911 
 
 613.7403 
 
 13938.715 
 
 40 
 
 1626.862 
 
 26750.597 
 
 597.9936 
 
 13324.975 
 
 41 
 
 1548.970 
 
 25123.735 
 
 582.6723 
 
 12726.981 
 
 42 
 
 1474.492 
 
 23574.765 
 
 567.7670 
 
 12144.308 
 
 43 
 
 1403.242 
 
 22100.273 
 
 553.2313 
 
 11576.541 
 
 44 
 
 1335.081 
 
 20697.031 
 
 539.0410 
 
 11023.310 
 
 45 
 
 1269.830 
 
 19361.950 
 
 525.1397 
 
 10484.269 
 
 46 
 
 1207.360 
 
 18092.120 
 
 511.5097 
 
 9959.1291 
 
 47 
 
 1147.501 
 
 16884.760 
 
 498.0873 
 
 9447.6194 
 
 48 
 
 1090.126 
 
 15737.259 
 
 484.8464 
 
 8949.5321 
 
 49 
 
 1035.085 
 
 14647.133 
 
 471.7342 
 
 8464.6857 
 
 50 
 
 982.2302 
 
 13612.048 
 
 458.6901 
 
 7992.9515 
 
 51 
 
 931.4364 
 
 12629.817 
 
 445.6742 
 
 7534.2614 
 
 52 
 
 882.5892 
 
 11698.381 
 
 432.6515 
 
 7088.5872 
 
 53 
 
 835.5838 
 
 10815.792 
 
 419.5918 
 
 6655.9357 
 
 54 
 
 790.3230 
 
 9980.2079 
 
 406.4691 
 
 6236.3439 
 
336 
 
 TABLE XIX. 
 
 AMERICAN EXPERIENCE FOUR PER CENT. Continued. 
 Commutation Columns. 
 
 X 
 
 D x 
 
 N x 
 
 M x 
 
 R* 
 
 55 
 
 746.7065 
 
 9189.8849 
 
 393.2497 
 
 5829.8748 
 
 56 
 
 704.6535 
 
 8443.1784 
 
 379.9160 
 
 5436.6251 
 
 57 
 
 664.0783 
 
 7738 . 5249 
 
 366.442S 
 
 5056.7091 
 
 58 
 
 624.9134 
 
 7074.4466 
 
 352.8195 
 
 4690.2663 
 
 59 
 
 587.0969 
 
 6449.5332 
 
 339.0380 
 
 4337.4468 
 
 60 
 
 550.5613 
 
 5862.4363 
 
 325.0831 
 
 3998.4088 
 
 61 
 
 515.2547 
 
 5311.8750 
 
 310.9520 
 
 3673.3257 
 
 62 
 
 481.1291 
 
 4796.6203 
 
 296.6437 
 
 3362.3737 
 
 63 
 
 448.1477 
 
 4315.4912 
 
 282.1674 
 
 3065.7300 
 
 64 
 
 416.2850 
 
 3867.3435 
 
 267.5410 
 
 2783.5626 
 
 65 
 
 385.5146 
 
 3451.0585 
 
 252.7817 
 
 2516.0216 
 
 66 
 
 355.8120 
 
 3065.5439 
 
 237.9064 
 
 2263.2399 
 
 67 
 
 327.1735 
 
 2709.7319 
 
 222.9531 
 
 2025.3335 
 
 68 
 
 299.6005 
 
 2382.5584 
 
 207.9637 
 
 1S02.3804 
 
 60 
 
 273.0969 
 
 2082.9579 
 
 192.9831 
 
 1594.4167 
 
 70 
 
 247.6878 
 
 1809.8610 
 
 178.0778 
 
 1401.4336 
 
 71 
 
 223.3970 
 
 1562.1732 
 
 163.3135 
 
 1223.3558 
 
 72 
 
 200.2700 
 
 1338.7762 
 
 148.7786 
 
 1060.0423 
 
 73 
 
 178.3688 
 
 1138.5062 
 
 134.5801 
 
 911.2637 
 
 74 
 
 157.7573 
 
 960.1374 
 
 120.8289 
 
 776.6836 
 
 75 
 
 138.4886 
 
 802.3801 
 
 107.6277 
 
 655.8547 
 
 76 
 
 120.5954 
 
 663.8915 
 
 95.0611 
 
 548.2270 
 
 77 
 
 104.0936 
 
 543.2961 
 
 83.1975 
 
 453.1659 
 
 78 
 
 88.97350 
 
 439.2025 
 
 72.0811 
 
 369.9684 
 
 79 
 
 75.21453 
 
 350.2290 
 
 61.7442 
 
 297.8873 
 
 80 
 
 62.79449 
 
 275.0144 
 
 52.2170 
 
 236.1431 
 
 81 
 
 51.65655 
 
 212.2199 
 
 43.4942 
 
 183.9261 
 
 82 
 
 41.79190 
 
 160.5634 
 
 35.6164 
 
 140.4319 
 
 83 
 
 33.18048 
 
 118.7715 
 
 28.6124 
 
 104.8155 
 
 84 
 
 25.79269 
 
 85.59102 
 
 22.5007 
 
 76.2031 
 
 85 
 
 19.55883 
 
 59.79833 
 
 17.2589 
 
 53.7024 
 
 86 
 
 14.37665 
 
 40.23950 
 
 12.8290 
 
 36.4435 
 
 87 
 
 10.15101 
 
 25.86285 
 
 9.15627 
 
 23.6145 
 
 88 
 
 6.802926 
 
 15.71184 
 
 6.19861 
 
 14.45882 
 
 89 
 
 4.273472 
 
 8.908914 
 
 3.93081 
 
 8.25962 
 
 90 
 
 2.482463 
 
 4.635442 
 
 2.30417 
 
 4.32881 
 
 91 
 
 1.301991 
 
 2 152979 
 
 1.21918 
 
 2.02464 
 
 92 
 
 .5853109 
 
 . 8509883 
 
 .552581 
 
 .805462 
 
 93 
 
 .2058384 
 
 .2656774 
 
 . 195621 
 
 .252881 
 
 94 
 
 .0526121 
 
 .0598390 
 
 .0503106 
 
 .0572596 
 
 95 
 
 .0072269 
 
 .0072269 
 
 .0069490 
 
 .0069490 
 
337 
 
 TABLE XX. 
 AMERICAN EXPERIENCE AND FOUR PER CENT. 
 
 
 Single and Annual Premiums for Whole 
 Life Insurance, and Whole Life Annuity, 
 First Payment at Once. : 
 
 Valuation Columns. 
 
 X 
 
 a x 
 
 A x 
 
 Px 
 
 k x 
 
 U x 
 
 LOR. u x 
 
 20 
 
 19.558 
 
 247.774 
 
 12.669 
 
 7.866 
 
 1.0482 
 
 .0204361 
 
 21 
 
 19.452 
 
 251.846 
 
 12.947 
 
 7.917 
 
 1.0482 
 
 .0204583 
 
 22 
 
 19.342 
 
 256.076 
 
 13.239 
 
 7.969 
 
 1.0483 
 
 .0204806 
 
 23 
 
 19.228 
 
 260.472 
 
 13.547 
 
 8.022 
 
 1.0483 
 
 .0205034 
 
 24 
 
 19.109 
 
 265.042 
 
 13.870 
 
 8.076 
 
 1.0484 
 
 .0205266 
 
 25 
 
 18.985 
 
 269.794 
 
 14.211 
 
 8.130 
 
 1.0485 
 
 .0205498 
 
 26 
 
 18.857 
 
 274.737 
 
 14.570 
 
 8 . 197 
 
 1.0485 
 
 .0205787 
 
 27 
 
 18.723 
 
 279.872 
 
 14.948 
 
 8.265 
 
 1.0486 
 
 .0206078 
 
 28 
 
 18.585 
 
 285.208 
 
 15.346 
 
 8.333 
 
 1.0487 
 
 .0206374 
 
 29 
 
 18.440 
 
 290.754 
 
 15.767 
 
 8.415 
 
 1.0488 
 
 .0206728 
 
 30 
 
 18.291 
 
 296.514 
 
 16.211 
 
 8.499 
 
 1.0488 
 
 .0207085 
 
 31 
 
 18.135 
 
 302.497 
 
 16.680 
 
 8.583 
 
 1.0489 
 
 .0207452 
 
 32 
 
 17.973 
 
 308.714 
 
 17.176 
 
 8.682 
 
 1.0490 
 
 .0207875 
 
 33 
 
 17.806 
 
 315.168 
 
 17.700 
 
 8.795 
 
 1.0491 
 
 .0208361 
 
 34 
 
 17.632 
 
 321.862 
 
 18.255 
 
 8.910 
 
 1.0493 
 
 .0208856 
 
 35 
 
 17.451 
 
 328.809 
 
 18.842 
 
 9.027 
 
 .0494 
 
 .0209361 
 
 36 
 
 17.263 
 
 336.022 
 
 19.464 
 
 9.172 
 
 .0495 
 
 .0209986 
 
 37 
 
 17.069 
 
 343.496 
 
 20.124 
 
 9.320 
 
 .0497 
 
 .0210623 
 
 38 
 
 16.868 
 
 351.245 
 
 20.824 
 
 9.498 
 
 .0499 
 
 .0211386 
 
 39 
 
 16.659 
 
 359.267 
 
 21.566 
 
 9.679 
 
 .0501 
 
 .0212168 
 
 40 
 
 16.443 
 
 367.575 
 
 22.354 
 
 9.891 
 
 .0503 
 
 .0213079 
 
 41 
 
 16.220 
 
 376.168 
 
 23.192 
 
 10.109 
 
 .0505 
 
 .0214016 
 
 42 
 
 15.988 
 
 385.060 
 
 24.084 
 
 10.359 
 
 .0508 
 
 .0215088 
 
 43 
 
 15.749 
 
 394.252 
 
 25.033 
 
 10.629 
 
 .0511 
 
 .0216250 
 
 44 
 
 15.502 
 
 403.752 
 
 26.044 
 
 10.947 
 
 .0514 
 
 .0217620 
 
 45 
 
 15.248 
 
 413.551 
 
 27.122 
 
 11.289 
 
 1.0517 
 
 .0219086 
 
 46 
 
 14.985 
 
 423.669 
 
 28.273 
 
 11.697 
 
 1.0522 
 
 .0220838 
 
 47 
 
 14.714 
 
 434.063 
 
 29.499 
 
 12.146 
 
 1.0526 
 
 .0222766 
 
 48 
 
 14.436 
 
 444.762 
 
 30.809 
 
 12.668 
 
 1.0532 
 
 .0225003 
 
 49 
 
 14.151 
 
 455.744 
 
 32.207 
 
 13.280 
 
 1.0538 
 
 .0227629 
 
 50 
 
 13.858 
 
 466. OSS 
 
 33.697 
 
 13.974 
 
 1.0545 
 
 .0230601 
 
 51 
 
 13.559 
 
 478.481 
 
 35.287 
 
 14.755 
 
 1.0553 
 
 .0233946 
 
 52 
 
 13.255 
 
 490 . 207 
 
 36.984 
 
 15.629 
 
 1.0563 
 
 .0237686 
 
 53 
 
 12.944 
 
 502.154 
 
 38.794 
 
 16.604 
 
 1.0573 
 
 .0241853 
 
 54 
 
 12.628 
 
 514.308 
 
 40.728 
 
 17.704 
 
 1.0584 
 
 .0246547 
 
 55 
 
 12.307 
 
 526.646 
 
 42.792 
 
 18.922 
 
 1.0597 
 
 .0251744 
 
 56 
 
 11.982 
 
 539.153 
 
 44.997 
 
 20.289 
 
 1.0611 
 
 .0257563 
 
 57 
 
 1 1 . 653 
 
 551. S07 
 
 47.353 
 
 21.800 
 
 1.0627 
 
 .0263994 
 
 58 
 
 11.321 
 
 564.589 
 
 49.872 
 
 23.474 
 
 .0644 
 
 .0271101 
 
 5!) 
 
 10.985 
 
 577 483 
 
 52.568 
 
 25.347 
 
 .0663 
 
 .0279041 
 
 60 
 
 10.648 
 
 590.458 
 
 55.452 
 
 27.425 
 
 .0685 
 
 .0287837 
 
 61 
 
 10.309 
 
 603.492 
 
 58.539 
 
 29.739 
 
 .0709 
 
 .0297604 
 
 62 
 
 9.969 
 
 616.").")? 
 
 61.844 
 
 32.302 
 
 .0736 
 
 .0308404 
 
 63 
 
 9.630 
 
 629.631 
 
 65.385 
 
 35.136 
 
 .0765 
 
 .0320305 
 
 64 
 
 9.290 
 
 642.687 
 
 69.180 
 
 38.285 
 
 .0798 
 
 .0333499 
 
338 
 
 TABLE XX. 
 AMERICAN EXPERIENCE AND FOUR PER CENT. Continued. 
 
 
 Single and Annual Premiums for Whole 
 Life Insurance, and Whole Life Annuity, Valuation Columns. 
 First Payment at Once. 
 
 X 
 
 a x 
 
 A, 
 
 Px 
 
 k x 
 
 u x 
 
 Log. u x 
 
 65 
 
 8.952 
 
 655.699 
 
 73.248 
 
 41.807 
 
 .0835 
 
 .0348203 
 
 66 
 
 8.616 
 
 668.629 
 
 77.607 
 
 45.704 
 
 .0875 
 
 .0364423 
 
 67 
 
 8.282 
 
 681.452 
 
 82.279 
 
 50.031 
 
 .0920 
 
 .0382356 
 
 68 
 
 7.952 
 
 694.137 
 
 87.286 
 
 54.855 
 
 .0970 
 
 . .0402259 
 
 69 
 
 7.627 
 
 706.647 
 
 92.649 
 
 60.178 
 
 .1026 
 
 .0424121 
 
 70 
 
 7.307 
 
 718.961 
 
 98.393 
 
 66.090 
 
 .1087 
 
 .0448271 
 
 71 
 
 6.993 
 
 731.046 
 
 104.543 
 
 72.576 
 
 .1155 
 
 .0474616 
 
 72 
 
 6.685 
 
 742.891 
 
 111.130 
 
 79.602 
 
 .1228 
 
 .0502970 
 
 73 
 
 6.383 
 
 754.505 
 
 118.208 
 
 87.167 
 
 .1307 
 
 .0533295 
 
 74 
 
 6.086 
 
 765.916 
 
 125.845 
 
 95.323 
 
 .1391 
 
 .0565756 
 
 75 
 
 5.794 
 
 777.159 
 
 134.136 
 
 104.204 
 
 1 . 1484 
 
 .0600829 
 
 76 
 
 5.505 
 
 788.265 
 
 143.188 
 
 113.971 
 
 1.1585 
 
 .0639071 
 
 77 
 
 5.219 
 
 799.257 
 
 153.135 
 
 124.941 
 
 1 . 1699 
 
 .0681631 
 
 78 
 
 4.936 
 
 810.141 
 
 164.119 
 
 137.433 
 
 1 . 1829 
 
 .0729589 
 
 79 
 
 4.656 
 
 820.909 
 
 176.296 
 
 151.720 
 
 1 . 1978 
 
 .0783803 
 
 80 
 
 4.380 
 
 831.554 
 
 189.870 
 
 168.861 
 
 1.2156 
 
 .0847961 
 
 81 
 
 4.108 
 
 841 .988 
 
 204.949 
 
 188.502 
 
 1.2332 
 
 .0910332 
 
 82 
 
 3.842 
 
 852.232 
 
 221.821 
 
 211.089 
 
 1.2595 
 
 . 1002095 
 
 83 
 
 3.580 
 
 862.326 
 
 240.904 
 
 236.952 
 
 1.2864 
 
 . 1093861 
 
 84 
 
 3.318 
 
 872.367 
 
 262.887 
 
 268.004 
 
 1.3187 
 
 . 1201538 
 
 85 
 
 3.057 
 
 882.409 
 
 288.618 
 
 308.133 
 
 1.3605 
 
 . 1336851 
 
 86 
 
 2.799 
 
 892.349 
 
 318.816 
 
 361.806 
 
 1.4163 
 
 .1511485 
 
 87 
 
 2.548 
 
 902.006 
 
 354.032 
 
 434.762 
 
 1.4922 
 
 . 1738134 
 
 88 
 
 2.310 
 
 911.168 
 
 394.519 
 
 530.070 
 
 1.5919 
 
 .2019150 
 
 89 
 
 2.085 
 
 919.817 
 
 441.222 
 
 655.254 
 
 1.7215 
 
 .2358979 
 
 90 
 
 1.867 
 
 928.179 
 
 497.077 
 
 833.333 
 
 1.9067 
 
 .2802748 
 
 91 
 
 1.654 
 
 936.396 
 
 566.277 
 
 1138.89 
 
 2.2244 
 
 .3472215 
 
 92 
 
 1.454 
 
 944.081 
 
 649.340 
 
 1734.18 
 
 2.8435 
 
 .4538601 
 
 93 
 
 1.291 
 
 950.362 
 
 736.310 
 
 2761.90 
 
 3.9124 
 
 .5924411 
 
 94 
 
 1.137 
 
 956.256 
 
 840.766 
 
 5999.99 
 
 7.2800 
 
 .8621334 
 
 95 
 
 1.000 
 
 961.538 
 
 961.538 
 
 
 
 
TABLE XXI. 
 INTEREST TABLES, THREE PER CENT. 
 
 
 
 Amount of One 
 Dollar at End 
 of n Years. 
 
 S2 
 
 5! 
 
 gOo>g 
 &** 
 
 Amount of One 
 Dollar Per An- 
 num at End of 
 n Years. 
 
 Present Value 
 of One Dollar 
 Per Annum for 
 n Years. 
 
 1 
 
 Amount of One 
 Dollar at End 
 of n Years. 
 
 HI* 
 fJ a l 
 
 PS! 
 
 I-SQB 
 
 Amount of One 
 Dollar Per An- 
 num at End of 
 n Years. 
 
 Present Value 
 of One Dollar 
 Per Annum for 
 n Years. 
 
 (l) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 (5) 
 
 (6) 
 
 (7) 
 
 (8) 
 
 (9) 
 
 (10) 
 
 
 1.0300 
 
 .970874 
 
 1.0300 
 
 .9709 
 
 51 
 
 4.5154 
 
 .221463 
 
 120.6962 
 
 25.9512 
 
 2 
 
 1.0609 
 
 .942596 
 
 2.0909 
 
 1.9135 
 
 52 
 
 4.6509 
 
 .215013 
 
 125.3471 
 
 26.1662 
 
 3 
 
 1.0927 
 
 .915142 
 
 3.1836 
 
 2.8286 
 
 53 
 
 4.7904 
 
 .208750 
 
 130.1375 
 
 26.3750 
 
 4 
 
 1.1255 
 
 .888487 
 
 4.3091 
 
 3.7171 
 
 54 
 
 4.9341 
 
 .202670 
 
 135.0716 
 
 26.5777 
 
 5 
 
 1.1593 
 
 .862609 
 
 5.4684 
 
 4.5797 
 
 55 
 
 5.0821 
 
 .196767 
 
 140.1538 
 
 26.7744 
 
 6 
 
 .1941 
 
 .837484 
 
 6.6625 
 
 5.4172 
 
 56 
 
 5.2346 
 
 .191036 
 
 145.3884 
 
 26.9655 
 
 7 
 
 1.2299 
 
 .813092 
 
 7.8923 
 
 6.2303 
 
 57 
 
 5.3917 
 
 . 185472 
 
 150.7800 
 
 27.1509 
 
 8 
 
 .2668 
 
 .789409 
 
 9.1591 
 
 7.0197 
 
 58 
 
 5.5534 
 
 . 180070 
 
 156.3334 
 
 27.3310 
 
 9 
 
 .3048 
 
 .766417 
 
 10.4639 
 
 7.7861 
 
 59 
 
 5.7200 
 
 .174825 
 
 162.0534 
 
 27.5058 
 
 10 
 
 .3439 
 
 .744094 
 
 11.8078 
 
 8.5302 
 
 60 
 
 5.8916 
 
 . 169733 
 
 167.9450 
 
 27.6756 
 
 11 
 
 1.3842 
 
 .722421 
 
 13.1920 
 
 9.2526 
 
 61 
 
 6.0684 - 
 
 .164789 
 
 174.0134 
 
 27.8404 
 
 12 
 
 .4258 
 
 .701380 
 
 14.6178 
 
 9.9540 
 
 62 
 
 6.2504 
 
 .159990 
 
 180.2638 
 
 28.0003 
 
 13 
 
 1.4685 
 
 .680951 
 
 16.0863 
 
 10.6350 
 
 63 
 
 6.4379 
 
 .155330 
 
 186.7017 
 
 28.1557 
 
 14 
 
 1.5126 
 
 .661118 
 
 17.5989 
 
 11.2961 
 
 64 
 
 6.6311 
 
 . 150806 
 
 193.3328 
 
 28.3065 
 
 15 
 
 1.5580 
 
 .641862 
 
 19.1569 
 
 11.9379 
 
 65 
 
 6.8300 
 
 . 146413 
 
 200.1627 
 
 28.4529 
 
 16 
 
 1.6047 
 
 .623167 
 
 20.7616 
 
 12.5611 
 
 66 
 
 7.0349 
 
 .142149 
 
 207.1976 
 
 28.5950 
 
 17 
 
 1.6528 
 
 .605016 
 
 22.4144 
 
 13.1661 
 
 67 
 
 7.2459 
 
 . 138009 
 
 214.4436 
 
 28.7330 
 
 18 
 
 1.7024 
 
 .587395 
 
 24.1169 
 
 13.7535 
 
 68 
 
 7.4633 
 
 . 133989 
 
 221.9069 
 
 28.8670 
 
 19 
 
 1.7535 
 
 .570286 
 
 25.8704 
 
 14.3238 
 
 69 
 
 7.6872 
 
 . 130086 
 
 229.5941 
 
 28.9971 
 
 20 
 
 1.8061 
 
 .553676 
 
 27.6765 
 
 14.8775 
 
 70 
 
 7.9178 
 
 . 126297 
 
 237.5119 
 
 29.1234 
 
 21 
 
 1.8603 
 
 .537549 
 
 29.5368 
 
 15.4150 
 
 71 
 
 8.1554 
 
 .122619 
 
 245.6672 
 
 29.2460 
 
 22 
 
 1.9161 
 
 .521893 
 
 31.4529 
 
 15.9369 
 
 72 
 
 8.4000 
 
 .119047 
 
 254.0673 
 
 29.3651 
 
 23 
 
 1.9736 
 
 .506692 
 
 33.4265 
 
 16.4436 
 
 73 
 
 8.6520 
 
 .115580 
 
 262.7193 
 
 29.4807 
 
 24 
 
 2.0328 
 
 .491934 
 
 35.4593 
 
 16.9355 
 
 74 
 
 8.9116 
 
 .112214 
 
 271.6309 
 
 29.5929 
 
 25 
 
 2.0938 
 
 .477606 
 
 37.5530 
 
 17.4131 
 
 75 
 
 9.1789 
 
 . 108945 
 
 280.8098 
 
 29.7018 
 
 26 
 
 2.1566 
 
 .463695 
 
 39.7096 
 
 17.8768 
 
 76 
 
 9.4543 
 
 . 105772 
 
 290.2641 
 
 29.8076 
 
 27 
 
 2.2213 
 
 .450189 
 
 41.9309 
 
 18.3270 
 
 77 
 
 9.7379 
 
 .102691 
 
 300.0020 
 
 29.9103 
 
 28 
 
 2.2879 
 
 .437077 
 
 44.2189 
 
 18.7641 
 
 78 
 
 10.0301 
 
 .099700 
 
 310.0321 
 
 30.0100 
 
 29 
 
 2.3566 
 
 .424346 
 
 46.5754 
 
 19.1885 
 
 79 
 
 10.3310 
 
 .096796 
 
 320.3630 
 
 30.1068 
 
 30 
 
 2.4273 
 
 .411987 
 
 49.0027 
 
 19.6004 
 
 80 
 
 10.6409 
 
 .093977 
 
 331.0039 
 
 30.2008 
 
 31 
 
 2.5001 
 
 .399987 
 
 51.5028 
 
 20.0004 
 
 81 
 
 10.9601 
 
 .091240 
 
 341.9640 
 
 30.2920 
 
 32 
 
 2.5751 
 
 .388337 
 
 54.0778 
 
 20.3888 
 
 82 
 
 11.2889 
 
 .088582 
 
 353.2529 
 
 30.3806 
 
 33 
 
 2.6523 
 
 .377026 
 
 56.7302 
 
 20.7658 
 
 83 
 
 11.6276 
 
 .086002 
 
 364.8805 
 
 30.4666 
 
 34 
 
 2.7319 
 
 .366045 
 
 59.4621 
 
 21.1318 
 
 84 
 
 11.9764 
 
 .083497 
 
 376.857Q 
 
 30.5501 
 
 35 
 
 2.8139 
 
 .355383 
 
 62.2759 
 
 21.4872 
 
 85 
 
 12.3357 
 
 .081065 
 
 389.1927 
 
 30.6312 
 
 36 
 
 2.8983 
 
 .345032 
 
 65 . 1742 
 
 21.8323 
 
 86 
 
 12.7058 
 
 .078704 
 
 401.8984 
 
 30.7099 
 
 37 
 
 2.9852 
 
 .334983 
 
 68.1594 
 
 22.1672 
 
 87 
 
 13.0870 
 
 .076412 
 
 414.9854 
 
 30.7863 
 
 38 
 
 3.0748 
 
 .325226 
 
 71.2342 
 
 22.4925 
 
 88 
 
 13.4796 
 
 .074186 
 
 428.4650 
 
 30.8605 
 
 39 
 
 3.1670 
 
 .315754 
 
 74.4013 
 
 22.8082 
 
 89 
 
 13.8839 
 
 .072026 
 
 442.3489 
 
 30.9325 
 
 40 
 
 3.2620 
 
 .306557 
 
 77.6633 
 
 23.1148 
 
 90 
 
 14.3005 
 
 .069928 
 
 456.6494 
 
 31.0024 
 
 41 
 
 3.3599 
 
 .297628 
 
 81.0232 
 
 23.4124 
 
 91 
 
 14.7295 
 
 .067891 
 
 471.3789 
 
 31.0703 
 
 42 
 
 3.4607 
 
 .288959 
 
 84.4839 
 
 23.7014 
 
 92 
 
 15.1714 
 
 .065914 
 
 486.5502 
 
 31.1362 
 
 43 
 
 3.5645 
 
 .280543 
 
 88.0484 
 
 23.9819 
 
 93 
 
 15.6265 
 
 .063994 
 
 502.1767 
 
 31.2002 
 
 44 
 
 3.6715 
 
 .272372 
 
 91.7199 
 
 24.2543 
 
 94 
 
 16.0953 
 
 .062130 
 
 518.2720 
 
 31.2623 
 
 45 
 
 3.7816 
 
 .264439 
 
 95.5015 
 
 24.5187 
 
 95 
 
 16.5782 
 
 .060320 
 
 534.8502 
 
 31.3227 
 
 46 
 
 3.8950 
 
 .256737 
 
 99.3965 
 
 24.7754 
 
 96 
 
 17.0755 
 
 .058563 
 
 551.9257 
 
 31.3812 
 
 47 
 
 4.0119 
 
 .249259 
 
 103.4084 
 
 25.0247 
 
 97 
 
 17.5878 
 
 .056858 
 
 569.5135 
 
 31.4381 
 
 48 
 
 4.1323 
 
 .241999 
 
 107.5406 
 
 25.2667 
 
 98 
 
 18.1154 
 
 .055202 
 
 587.6289 
 
 31.4933 
 
 49 
 
 4.2562 
 
 .234950 
 
 111.7969 
 
 25.5017 
 
 
 
 
 
 
 50 
 
 4.3839 
 
 .228107 
 
 116.1808 
 
 25.7298 
 
 
 
 
 
 
TABLE XXII. 
 INTEREST TABLES, THREE AND ONE-HALF PER CENT. 
 
 e 
 
 1 
 
 Amount of One 
 Dollar at End 
 cf n Years. 
 
 US 
 
 ?8 
 
 ii:I 
 
 I'oQK 
 
 Amount cf One 
 Dollar Per An- 
 num at End of 
 
 n Years. 
 
 Present Value 
 of One Dollar 
 Per Annum for 
 n Years. 
 
 2 
 
 i 
 
 <D-O 
 
 o . 
 
 3I 
 II- 
 
 |o 
 
 5|l*> 
 
 y;| 
 
 !* 
 
 Amount of One 
 Dollar Per An- 
 num at End of 
 n Years. 
 
 Present Value 
 of One Dollar 
 Per Annum for 
 n Years. 
 
 (1) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 (5) 
 
 (6) 
 
 (7) 
 
 (8) 
 
 (9) 
 
 (10) 
 
 1 
 
 .0350 
 
 .966184 
 
 1.0350 
 
 .9662 
 
 51 
 
 5.7804 
 
 .172998 
 
 141.3632 
 
 23.6286 
 
 2 
 
 .0712 
 
 .933511 
 
 2.1062 
 
 1.8997 
 
 52 
 
 5.9827 
 
 .167148 
 
 147.3459 
 
 23.7957 
 
 3 
 
 .1087 
 
 .901943 
 
 3.2149 
 
 2.8016 
 
 53 
 
 6.1921 
 
 .161496 
 
 153.5381 
 
 23.9572 
 
 4 
 
 .1475 
 
 .871443 
 
 4.3625 
 
 3.6731 
 
 54 
 
 6.4088 
 
 . 156035 
 
 159.9469 
 
 24.1133 
 
 5 
 
 .1877 
 
 .841972 
 
 5.5502 
 
 4.5151 
 
 55 
 
 6.6331 
 
 . 150758 
 
 166.5800 
 
 24.2640 
 
 6 
 
 .2293 
 
 .813500 
 
 6.7794 
 
 5.3286 
 
 56 
 
 6.8653 
 
 . 145660 
 
 173.4453 
 
 24.4097 
 
 7 
 
 .2723 
 
 .785991 
 
 8.0517 
 
 6.1145 
 
 57 
 
 7.1056 
 
 .140734 
 
 180.5509 
 
 24.5504 
 
 8 
 
 .3168 
 
 .759410 
 
 9.3685 
 
 6.8740 
 
 58 
 
 7.3543 
 
 . 135975 
 
 187.9052 
 
 24.6864 
 
 9 
 
 .3629 
 
 .733731 
 
 10.7314 
 
 7.6077 
 
 59 
 
 7.6117 
 
 .131377 
 
 195.5169 
 
 24.8178 
 
 10 
 
 .4106 
 
 .708920 
 
 12.1420 
 
 8.3166 
 
 60 
 
 7.8781 
 
 . 126934 
 
 203.3950 
 
 24.9447 
 
 11 
 
 1.4600 
 
 .684945 
 
 13.6020 
 
 9.0016 
 
 61 
 
 8.1538 
 
 .122642 
 
 211.5488 
 
 25.0674 
 
 12 
 
 .1.5111 
 
 .661783 
 
 15.1131 
 
 9.6633 
 
 62 
 
 8.4392 
 
 .118495 
 
 219.9880 
 
 25.1858 
 
 13 
 
 1.5640 
 
 .639403 
 
 16.6770 
 
 10.3027 
 
 63 
 
 8.7346 
 
 .114487 
 
 22N . 7226 
 
 25.3003 
 
 14 
 
 1.6187 
 
 .617781 
 
 18.2957 
 
 10.9205 
 
 64 
 
 9.0403 
 
 .110616 
 
 237.7629 
 
 25.4110 
 
 15 
 
 1.6753 
 
 .596890 
 
 19.9710 
 
 11.5174 
 
 65 
 
 9.3567 
 
 . 106875 
 
 247.1196 
 
 25.5178 
 
 16 
 
 .7340 
 
 .576692 
 
 21.7050 
 
 12.0941 
 
 66 
 
 9.6842 
 
 . 103261 
 
 256.8038 
 
 25.6211 
 
 17 
 
 .7947 
 
 .557204 
 
 23.4997 
 
 12.6513 
 
 67 
 
 10.0231 
 
 .099769 
 
 266.8269 
 
 25.7209 
 
 18 
 
 .8575 
 
 .538361 
 
 25.3572 
 
 13.1897 
 
 68 
 
 10.3739 
 
 .096395 
 
 277.2008 
 
 25.8173 
 
 19 
 
 .9225 
 
 .520155 
 
 27.2797 
 
 13.7098 
 
 69 
 
 10.7370 
 
 .093136 
 
 287.9379 
 
 25.9104 
 
 20 
 
 .9898 
 
 .502566 
 
 29.2695 
 
 14.2124 
 
 70 
 
 11.1128 
 
 .089986 
 
 299.0507 
 
 26.0004 
 
 21 
 
 2.0594 
 
 .485571 
 
 31.3289 
 
 14.6980 
 
 71 
 
 11.5018 
 
 .086943 
 
 310.5525 
 
 26.0X73 
 
 22 
 
 2.1315 
 
 .469151 
 
 33.4604 
 
 15.1671 
 
 72 
 
 11.9043 
 
 .084003 
 
 322.4568 
 
 26.1713 
 
 23 
 
 2.2061 
 
 .453286 
 
 35.6665 
 
 15.6204 
 
 73 
 
 12.3210 
 
 .081162 
 
 334.7778 
 
 26.2525 
 
 24 
 
 2.2833 
 
 .437957 
 
 37.9499 
 
 16.0583 
 
 74 
 
 12.7522 
 
 .078418 
 
 347.5300 
 
 26.3309 
 
 25 
 
 2.3632 
 
 .423147 
 
 40.3131 
 
 16.4815 
 
 75 
 
 13.1985 
 
 .075766 
 
 360.7286 
 
 26.4067 
 
 26 
 
 2.4460 
 
 .408838 
 
 42.7591 
 
 16.8903 
 
 76 
 
 13.6605 
 
 .073204 
 
 374.3891 
 
 26.4799 
 
 27 
 
 2.5316 
 
 .395012 
 
 45.2907 
 
 17.2853 
 
 77 
 
 14.1386 
 
 .070728 
 
 388.5277 
 
 26.5506 
 
 28 
 
 2.6202 
 
 .381654 
 
 47.9108 
 
 17.6670 
 
 78 
 
 14.6335 
 
 .068337 
 
 403.1611 
 
 26.6189 
 
 29 
 
 2.7119 
 
 .368748 
 
 50.6227 
 
 18.0357 
 
 79 
 
 15.1456 
 
 .066026 
 
 418.3068 
 
 26.6850 
 
 30 
 
 2.8068 
 
 .356278 
 
 53.4295 
 
 18.3920 
 
 80 
 
 15.6757 
 
 .063793 
 
 433.9825 
 
 26.7488 
 
 31 
 
 2.9050 
 
 .344230 
 
 56.3345 
 
 18.7363 
 
 81 
 
 16.2244 
 
 .061636 
 
 450.2069 
 
 26.8104 
 
 32 
 
 3.0067 
 
 .332590 
 
 59.3412 
 
 19.0688 
 
 82 
 
 16.7923 
 
 .059551 
 
 466.9992 
 
 26.8700 
 
 33 
 
 3.1119 
 
 .321343 
 
 62.4532 
 
 19.3902 
 
 83 
 
 17.3800 
 
 .057538 
 
 484.3791 
 
 26.9275 
 
 34 
 
 3.2209 
 
 .310476 
 
 65.6740 
 
 19.7007 
 
 84 
 
 17.9883 
 
 .055592 
 
 502.3674 
 
 26.9831 
 
 35 
 
 3.3336 
 
 .299977 
 
 69.0076 
 
 20.0006 
 
 85 
 
 18.6179 
 
 .053712 
 
 520.9853 
 
 27.0368 
 
 36 
 
 3.4503 
 
 .289833 
 
 72.4579 
 
 20.2905 
 
 86 
 
 19.2695 
 
 .051896 
 
 540.2547 
 
 27.0887 
 
 37 
 
 3.5710 
 
 .280032 
 
 76.0289 
 
 20.5705 
 
 87 
 
 19.9439 
 
 .050141 
 
 560.1987 
 
 27.1388 
 
 38 
 
 3.6960 
 
 .270562 
 
 79.7249 
 
 20.8411 
 
 88 
 
 20.0420 
 
 .048445 
 
 580.8406 
 
 27.1X73 
 
 39 
 
 3.8254 
 
 .261413 
 
 83.5503 
 
 21 . 1025 
 
 89 
 
 21.3644 
 
 .046807 
 
 602.2050 
 
 27.2341 
 
 40 
 
 3.9593 
 
 .252572 
 
 87.5096 
 
 21.3551 
 
 90 
 
 22.1122 
 
 .045224 
 
 624.3172 
 
 27.2793 
 
 41 
 
 4.0978 
 
 .244031 
 
 91.6074 
 
 21.5991 
 
 91 
 
 22.8861 
 
 .043695 
 
 647.2033 
 
 27.3230 
 
 42 
 
 4.2413 
 
 .235779 
 
 95.8487 
 
 21.8349 
 
 92 
 
 23.6871 
 
 .042217 
 
 670.8904 
 
 27.3652 
 
 43 
 
 4.3897 
 
 .227806 
 
 100.2384 
 
 22.0627 
 
 93 
 
 24.5162 
 
 .040789 
 
 695.4066 
 
 27 . 4060 
 
 44 
 
 4.5433 
 
 .220102 
 
 104.7817 
 
 22.2828 
 
 94 
 
 25.3742 
 
 .039410 
 
 720.7808 
 
 27.4454 
 
 45 
 
 4.7024 
 
 .212659 
 
 109.4840 
 
 22.4954 
 
 95 
 
 26.2623 
 
 .038077 
 
 747.0431 
 
 27.4835 
 
 46 
 
 4.8669 
 
 .205468 
 
 114.3510 
 
 22.7009 
 
 96 
 
 27.1816 
 
 .036790 
 
 774.2247 
 
 27.5203 
 
 47 
 
 5.0373 
 
 . 198520 
 
 119.3883 
 
 22.8994 
 
 97 
 
 28.1329 
 
 .035546 
 
 802.3575 
 
 27.5558 
 
 48 
 
 5.2136 
 
 .191806 
 
 124.6018 
 
 23.0912 
 
 98 
 
 29.1175 
 
 .034344 
 
 831.4750 
 
 27.5902 
 
 49 
 
 5.3961 
 
 . 185320 
 
 129.9979 
 
 23.2765 
 
 
 
 
 
 
 50 
 
 5.5849 
 
 . 179053 
 
 135.5828 
 
 23.4556 
 
 
 
 
 
 
TABLE XXIII. 
 INTEREST TABLES, FOUR PER GENT. 
 
 1 
 
 Amount of One 
 Dollar at End 
 of n Years. 
 
 {*> 
 
 ^Ji 
 
 o> O a? a 
 
 |^J 
 
 Amount of One 
 Dollar Per An- 
 num at End of 
 n Years. 
 
 Present Value 
 of One Dollar 
 Per Annum for 
 n Years. 
 
 r* 
 
 Amount of One 
 Dollar at End 
 of n Years. 
 
 ssg 
 3'iJu' 
 
 >&>"> 
 
 id 
 
 1*** 
 
 Amount of One 
 Dollar Per An- 
 num at End of 
 n Years. 
 
 Present Value 
 of One Dollar 
 Per Annum for 
 n Years. 
 
 (1) 
 
 (2) 
 
 (3) 
 
 (4) 
 
 (5) 
 
 (6) 
 
 (7) 
 
 (8) 
 
 (9) 
 
 (10) 
 
 
 1.0400 
 
 .961538 
 
 1.0400 
 
 .9615 
 
 51 
 
 7.3910 
 
 .135301 
 
 166.1647 
 
 21.6175 
 
 2 
 
 1.0816 
 
 .924556 
 
 2.1216 
 
 1.8861 
 
 52 
 
 7.6866 
 
 .130097 
 
 173.8513 
 
 21.7476 
 
 3 
 
 1 . 1249 
 
 .888996 
 
 3.2465 
 
 2.7751 
 
 53 
 
 7.9941 
 
 .125093 
 
 181.8454 
 
 21.8727 
 
 4 
 
 1 . 1699 
 
 .854804 
 
 4.4163 
 
 3.6299 
 
 54 
 
 8.3138 
 
 .120282 
 
 190.1592 
 
 21.9930 
 
 5 
 
 1.2167 
 
 .821927 
 
 5.6330 
 
 4.4518 
 
 55 
 
 8.6464 
 
 .115656 
 
 198.8055 
 
 22.1086 
 
 6 
 
 .2653 
 
 .790315 
 
 6.8983 
 
 5.2421 
 
 56 
 
 8.9922 
 
 .111207 
 
 207.7978 
 
 22.2198 
 
 7 
 
 .3159 
 
 .759918 
 
 8.2142 
 
 6.0021 
 
 57 
 
 9.3519 
 
 .106930 
 
 217.1497 
 
 22.3267 
 
 8 
 
 .3686 
 
 .730690 
 
 9.5828 
 
 6.7327 
 
 58 
 
 9.7260 
 
 .102817 
 
 226.8757 
 
 22.4296 
 
 9 
 
 .4233 
 
 .702587 
 
 11.0061 
 
 7.4353 
 
 59 
 
 10.1150 
 
 .098863 
 
 236.9907 
 
 22.5284 
 
 10 
 
 .4802 
 
 .675564 
 
 12.4864 
 
 8.1109 
 
 60 
 
 10.5196 
 
 .095060 
 
 247.5103 
 
 22.6235 
 
 11 
 
 .5395 
 
 .649581 
 
 14.0258 
 
 8.7605 
 
 61 
 
 10.9404 
 
 .091404 
 
 258.4507 
 
 22.7149 
 
 12 
 
 .6010 
 
 .624597 
 
 15.6268 
 
 9.3851 
 
 62 
 
 11.3780 
 
 .087889 
 
 269.8288 
 
 22.8028 
 
 13 
 
 .6651 
 
 .600574 
 
 17.2919 
 
 9.9856 
 
 63 
 
 11.8332 
 
 .084508 
 
 281.6619 
 
 22.8873 
 
 14 
 
 .7317 
 
 .577475 
 
 19.0236 
 
 10.5631 
 
 64 
 
 12.3065 
 
 .081258 
 
 293.9684 
 
 22.9685 
 
 15 
 
 .8009 
 
 .555265 
 
 20.8245 
 
 11.1184 
 
 65 
 
 12.7987 
 
 .078133 
 
 306.7671 
 
 23.0467 
 
 16 
 
 .8730 
 
 .533908 
 
 22.6975 
 
 11.6523 
 
 66 
 
 13.3107 
 
 .075128 
 
 320.0778 
 
 23.1218 
 
 17 
 
 .9479 
 
 .513373 
 
 24.6454 
 
 12.1657 
 
 67 
 
 13.8431 
 
 .072238 
 
 333.9209 
 
 23 . 1940 
 
 18 
 
 2.0258 
 
 .493628 
 
 26.6712 
 
 12.6593 
 
 68 
 
 14.3968 
 
 .069460 
 
 348.3177 
 
 23.2635 
 
 19 
 
 2.1068 
 
 .474642 
 
 28.7781 
 
 13.1339 
 
 69 
 
 14.9727 
 
 .066788 
 
 363.2905 
 
 23.3303 
 
 20 
 
 2.1911 
 
 .456387 
 
 30.9692 
 
 13.5903 
 
 70 
 
 15.5716 
 
 .064219 
 
 378.8621 
 
 23.3945 
 
 21 
 
 2.2788 
 
 .438834 
 
 33.2480 
 
 14.0292 
 
 71 
 
 16.1945 
 
 .061749 
 
 395.0566 
 
 23.4563 
 
 22 
 
 2.3699 
 
 .421955 
 
 35.6179 
 
 14.4511 
 
 72 
 
 16.8423 
 
 .059374 
 
 411.8988 
 
 23.5156 
 
 23 
 
 2.4647 
 
 .405726 
 
 38.0826 
 
 14.8568 
 
 73 
 
 17.5160 
 
 .057091 
 
 429.4148 
 
 23.5727 
 
 24 
 
 2.5633 
 
 .390121 
 
 40.6459 
 
 15.2470 
 
 74 
 
 18.2166 
 
 .054895 
 
 447.6314 
 
 23.6276 
 
 25 
 
 2.6658 
 
 .375117 
 
 43.3117 
 
 15.6221 
 
 75 
 
 18.9453 
 
 .052784 
 
 466.5766 
 
 23.6804 
 
 26 
 
 2.7725 
 
 .360689 
 
 46.0842 
 
 15.9828 
 
 76 
 
 19.7031 
 
 .050754 
 
 486.2797 
 
 23.7312 
 
 27 
 
 2.8834 
 
 .346817 
 
 48.9676 
 
 16.3296 
 
 77 
 
 20.4912 
 
 .048801 
 
 506.7709 
 
 23.7800 
 
 28 
 
 2.9987 
 
 .333477 
 
 51.9663 
 
 16.6631 
 
 78 
 
 21.3108 
 
 .046924 
 
 528.0817 
 
 23.8269 
 
 29 
 
 3.1187 
 
 .320651 
 
 55.0849 
 
 16.9837 
 
 79 
 
 22.1633 
 
 .045120 
 
 550.2450 
 
 23.8720 
 
 30 
 
 3.2434 
 
 .308319 
 
 58.3283 
 
 17.2920 
 
 80 
 
 23.0498 
 
 .043384 
 
 573.2948 
 
 23.9154 
 
 31 
 
 3.3731 
 
 .296460 
 
 61.7015 
 
 17.5885 
 
 81 
 
 23.9718 
 
 .041716 
 
 597.2666 
 
 23.9571 
 
 32 
 
 3.5081 
 
 .285058 
 
 65.2095 
 
 17.8736 
 
 82 
 
 24.9307 
 
 .040111 
 
 622.1972 
 
 23.9972 
 
 33 
 
 3.6484 
 
 .274094 
 
 68.8579 
 
 18.1476 
 
 83 
 
 25.9279 
 
 .038569 
 
 648.1251 
 
 24.0358 
 
 34 
 
 3.7943 
 
 .263552 
 
 72.6522 
 
 18.4112 
 
 84 
 
 26.9650 
 
 .037085 
 
 675.0901 
 
 24.0729 
 
 35 
 
 3.9461 
 
 .253415 
 
 76.5983 
 
 18.6646 
 
 85 
 
 28.0436 
 
 .035659 
 
 703.1337 
 
 24.1085 
 
 36 
 
 4.1039 
 
 .243669 
 
 80.7022 
 
 18.9083 
 
 86 
 
 29.1653 
 
 .034287 
 
 732.2991 
 
 24.1428 
 
 37 
 
 4.2681 
 
 .234297 
 
 84.9703 
 
 19.1426 
 
 87 
 
 30.3320 
 
 .032969 
 
 762.6310 
 
 24.1758 
 
 38 
 
 4.4388 
 
 .225285 
 
 89.4091 
 
 19.3679 
 
 88 
 
 31.5452 
 
 .031701 
 
 794.1763 
 
 24.2075 
 
 39 
 
 4.6164 
 
 .216621 
 
 94.0255 
 
 19.5845 
 
 89 
 
 32.8071 
 
 .030481 
 
 826.9833 
 
 24.2380 
 
 40 
 
 4.8010 
 
 .208289 
 
 98.8265 
 
 19.7928 
 
 90 
 
 34.1193 
 
 .029309 
 
 861 . 1027 
 
 24.2673 
 
 41 
 
 4.9931 
 
 .200278 
 
 103.8196 
 
 19.9931 
 
 91 
 
 35.4841 
 
 .028182 
 
 896.5868 
 
 24.2955 
 
 42 
 
 5.1928 
 
 . 192575 
 
 109.0124 
 
 20.1856 
 
 92 
 
 36.9035 
 
 .027098 
 
 933.4902 
 
 24.3226 
 
 43 
 
 5.4005 
 
 .185168 
 
 114.4129 
 
 20.3708 
 
 93 
 
 38.3796 
 
 .026056 
 
 971.8699 
 
 24.3486 
 
 44 
 
 5.6165 
 
 . 178046 
 
 120.0294 
 
 20.5488 
 
 94 
 
 39.9148 
 
 .025053 
 
 1011.7846 
 
 24.3737 
 
 45 
 
 5.8412 
 
 .171198 
 
 125.8706 
 
 20.7200 
 
 95 
 
 41.5114 
 
 .024090 
 
 1053.2960 
 
 24.3978 
 
 46 
 
 6.0748 
 
 . 164614 
 
 131.9454 
 
 20.8847 
 
 96 
 
 43.1718 
 
 .023163 
 
 1096.4679 
 
 24.4209 
 
 47 
 
 6.3178 
 
 . 158283 
 
 138.2632 
 
 21.0429 
 
 97 
 
 44.8987 
 
 .022272 
 
 1141.3666 
 
 24.4432 
 
 48 
 
 6.5705 
 
 .152195 
 
 144.8337 
 
 21.1951 
 
 98 
 
 46.6947 
 
 .021416 
 
 1188.0613 
 
 24.4646 
 
 49 
 
 6.8333 
 
 .146341 
 
 151.6671 
 
 21.3415 
 
 
 
 
 
 
 50 
 
 7.1067 
 
 . 140713 
 
 158.7738 
 
 21.4822 
 
 
 
 
 
 
COMBINED MORTALITY AND DISABILITY TABLE XXIV. 
 
 National Fraternal Congress Table of Mortality and Fraternal Society Total and Permanent 
 
 Disability Experience. 
 
 Age 
 
 q* 
 
 lx 
 
 log. i x 
 
 / 
 
 q x 
 
 18 
 
 .00500 
 
 .00012 
 
 4.07918 
 
 .00512 
 
 19 
 
 .00500 
 
 .00012 
 
 .07918 
 
 .00512 
 
 20 
 
 .00500 
 
 .00012 
 
 .079 IS 
 
 .00512 
 
 21 
 
 .00504 
 
 .00013 
 
 .11394 
 
 .00517 
 
 22 
 
 .00507 
 
 .00015 
 
 .17609 
 
 .00522 
 
 23 
 
 .00511 
 
 .00018 
 
 .25527 
 
 .00529 
 
 24 
 
 .00515 
 
 .00021 
 
 .32222 
 
 .00536 
 
 25 
 
 .00520 
 
 .00025 
 
 .39794 
 
 .00545 
 
 26 
 
 .00526 
 
 .00029 
 
 .40240 
 
 .00555 
 
 27 
 
 .00532 
 
 .00032 
 
 .50515 
 
 .00564 
 
 28 
 
 .00539 
 
 .00034 
 
 .53148 
 
 .00573 
 
 29 
 
 .00547 
 
 .00035 
 
 .54407 
 
 .00582 
 
 30 
 
 .00555 
 
 .00037 
 
 .56820 
 
 .00592 
 
 31 
 
 .00565 
 
 .00038 
 
 .57978 
 
 .00603 
 
 32 
 
 .00575 
 
 .0003',) 
 
 .59106 
 
 .00614 
 
 33 
 
 .00587 
 
 .00041 
 
 .61278 
 
 .00628 
 
 34 
 
 .00600 
 
 .00044 
 
 .64345 
 
 .00644 
 
 35 
 
 .00615 
 
 .00048 
 
 .68124 
 
 .00603 
 
 36 
 
 .00631 
 
 .00052 
 
 .71600 
 
 .00083 
 
 37 
 
 . 00649 
 
 .00056 
 
 .74819 
 
 .00705 
 
 38 
 
 .00670 
 
 .00061 
 
 .78533 
 
 .00731 
 
 39 
 
 .00692 
 
 .00065 
 
 .81291 
 
 .00757 
 
 40 
 
 .00717 
 
 .00069 
 
 .83885 
 
 .00786 
 
 41 
 
 .00745 
 
 .00073 
 
 .86332 
 
 .00818 
 
 42 
 
 .00777 
 
 .00077 
 
 .88649 
 
 .00854 
 
 43 
 
 .00811 
 
 .00082 
 
 .91381 
 
 .00893 
 
 44 
 
 .00848 
 
 .00086 
 
 .93450 
 
 .00934 
 
 45 
 
 .00887 
 
 .00090 
 
 .95424 
 
 .00977 
 
 46 
 
 .00929 
 
 .00094 
 
 .97313 
 
 .01023 
 
 47 
 
 .00975 
 
 .00099 
 
 .99564 
 
 .01074 
 
 48 
 
 .01027 
 
 .00105 
 
 3.02119 
 
 .01132 
 
 49 
 
 .01082 
 
 .00113 
 
 .05308 
 
 .01195 
 
 50 
 
 .01144 
 
 .00124 
 
 .09342 
 
 .01268 
 
 51 
 
 .01215 
 
 .00139 
 
 . 14301 
 
 .01354 
 
 52 
 
 .01290 
 
 .00157 
 
 . 19590 
 
 .01447 
 
 53 
 
 .01375 
 
 .00179 
 
 .25285 
 
 .01554 
 
 54 
 
 .01468 
 
 .00210 
 
 .32222 
 
 .01678 
 
 55 
 
 .01571 
 
 .00255 
 
 .40654 
 
 .01826 
 
 56 
 
 .01686 
 
 .00321 
 
 .50651 
 
 .02007 
 
 57 
 
 .01812 
 
 .00407 
 
 .00959 
 
 .02219 
 
 58 
 
 .01950 
 
 .00504 
 
 .70243 
 
 .02454 
 
 59 
 
 .02105 
 
 .00640 
 
 .91023 
 
 .02751 
 
 60 
 
 .02275 
 
 .00830 
 
 .91908 
 
 .03105 
 
 61 
 
 .02464 
 
 .01035 
 
 2.01494 
 
 .03499 
 
 62 
 
 .02672 
 
 .01290 
 
 .11059 
 
 .03902 
 
 63 
 
 .02903 
 
 .01645 
 
 .21017 
 
 .04548 
 
 64 
 
 .03157 
 
 .02200 
 
 .34212 
 
 .05357 
 
 65 
 
 .03439 
 
 .02955 
 
 . 47056 
 
 .00394 
 
 66 
 
 .03752 
 
 .04010 
 
 .00314 
 
 .07702 
 
 67 
 
 .04096 
 
 .05465 
 
 .73759 
 
 .09561 
 
 68 
 
 .04478 
 
 .07420 
 
 .87040 
 
 .11898 
 
 69 
 
 .04898 
 
 .09975 
 
 .99891 
 
 . 14873 
 
 70 
 
 .05365 
 
 .13230 
 
 1.12150 
 
 .18595 
 
 71 
 
 .05881 
 
 .17285 
 
 .23767 
 
 .23166 
 
 72 
 
 .06449 
 
 .22240 
 
 .34713 
 
 .28689 
 
 73 
 
 .07081 
 
 .28195 
 
 .45017 
 
 .35276 
 
 74 
 
 .07778 
 
 .35250 
 
 .54710 
 
 .43028 
 
 75 
 
 .08548 
 
 .43505 
 
 .03854 
 
 .52053 
 
 76 
 
 .09399 
 
 .52060 
 
 .71050 
 
 .61459 
 
 77 
 
 .10340 
 
 .62015 
 
 .79250 
 
 .72355 
 
 78 
 
 .11384 
 
 .73470 
 
 .86011 
 
 .84854 
 
 79 
 
 .12535 
 
 .85345 
 
 .93118 
 
 1.00000 
 
 i x = Probability of becoming totally and permanently disabled. 
 
 q' x = i x -f-q x (N. F. C.)- Not the Actuarial Society notation. See text. 
 
COMBINED MORTALITY AND DISABILITY TABLE XXV. 
 
 National Fraternal Congress Table of Mortality and Fraternal Society Total and Permanent 
 
 Disability Experience. 
 
 Age 
 
 a l x 
 
 log. *l x 
 
 
 
 log. d< 
 
 5 lx 
 
 log. >l x 
 
 18 
 
 100000 
 
 5.00000 
 
 512 
 
 2.70927 
 
 12 
 
 1.07918 
 
 10 
 
 99488 
 
 4.99777 
 
 509 
 
 .70672 
 
 12 
 
 .07695 
 
 20 
 
 98979 
 
 .99554 
 
 507 
 
 .70501 
 
 12 
 
 .07472 
 
 21 
 
 98472 
 
 .99331 
 
 509 
 
 .70672 
 
 13 
 
 . 10725 
 
 22 
 
 97963 
 
 .99106 
 
 511 
 
 .70842 
 
 15 
 
 .16715 
 
 23 
 
 97452 
 
 .98879 
 
 516 
 
 .71265 
 
 18 
 
 .24406 
 
 24 
 
 90936 
 
 .98649 
 
 520 
 
 .71600 
 
 20 
 
 .30871 
 
 25 
 
 96416 
 
 .98415 
 
 525 
 
 .72016 
 
 24 
 
 .38209 
 
 26 
 
 95891 
 
 .98178 
 
 532 
 
 .72591 
 
 28 
 
 .44418 
 
 27 
 
 95359 
 
 .97936 
 
 538 
 
 .73078 
 
 31 
 
 .48451 
 
 28 
 
 94821 
 
 .97690 
 
 543 
 
 .73480 
 
 32 
 
 .50838 
 
 29 
 
 94278 
 
 .97441 
 
 549 
 
 .73957 
 
 33 
 
 .51848 
 
 30 
 
 93729 
 
 .97187 
 
 555 
 
 .74429 
 
 35 
 
 .54007 
 
 31 
 
 93174 
 
 .96929 
 
 562 
 
 .74974 
 
 35 
 
 .54907 
 
 32 
 
 92612 
 
 .96667 
 
 569 
 
 .75511 
 
 36 
 
 .55773 
 
 33 
 
 92043 
 
 .96399 
 
 578 
 
 .76193 
 
 38 
 
 .57677 
 
 34 
 
 91465 
 
 .96125 
 
 589 
 
 .77012 
 
 40 
 
 .60470 
 
 35 
 
 90876 
 
 .95845 
 
 603 
 
 .78032 
 
 44 
 
 .63969 
 
 36 
 
 90273 
 
 .95556 
 
 617 
 
 .79029 
 
 47 
 
 .67156 
 
 37 
 
 89656 
 
 .95258 
 
 632 
 
 .80072 
 
 50 
 
 .70077 
 
 38 
 
 89024 
 
 .94951 
 
 651 
 
 .81358 
 
 54 
 
 .73484 
 
 39 
 
 88373 
 
 .94632 
 
 669 
 
 .82543 
 
 57 
 
 .75923 
 
 40 
 
 87704 
 
 .94302 
 
 689 
 
 .83022 
 
 61 
 
 .78187 
 
 41 
 
 87015 
 
 .93959 
 
 712 
 
 .85248 
 
 64 
 
 .80291 
 
 42 
 
 86303 
 
 .93603 
 
 737 
 
 .86747 
 
 66 
 
 .82252 
 
 43 
 
 85566 
 
 .93230 
 
 764 
 
 .88309 
 
 70 
 
 .84611 
 
 44 
 
 84802 
 
 .92841 
 
 792 
 
 .89873 
 
 73 
 
 .86291 
 
 45 
 
 84010 
 
 .92433 
 
 821 
 
 .91434 
 
 76 
 
 .87857 
 
 46 
 
 83189 
 
 .02007 
 
 851 
 
 .02993 
 
 78 
 
 .89320 
 
 47 
 
 82338 
 
 .91560 
 
 884 
 
 .94645 
 
 82 
 
 .91124 
 
 48 
 
 81454 
 
 .91091 
 
 922 
 
 .96473 
 
 86 
 
 .93210 
 
 49 
 
 80532 
 
 .90597 
 
 962 
 
 .98318 
 
 91 
 
 .95905 
 
 50 
 
 79570 
 
 .90075 
 
 1009 
 
 3.00389 
 
 99 
 
 .99417 
 
 51 
 
 78561 
 
 .89521 
 
 1064 
 
 .02694 
 
 109 
 
 2.03822 
 
 52 
 
 77497 
 
 .88928 
 
 1121 
 
 .04961 
 
 122 
 
 .08518 
 
 53 
 
 76376 
 
 . SS296 
 
 1187 
 
 .07445 
 
 137 
 
 .13581 
 
 54 
 
 75189 
 
 .87615 
 
 1262 
 
 .10106 
 
 158 
 
 . 19837 
 
 55 
 
 73927 
 
 .86880 
 
 1350 
 
 . 13033 
 
 189 
 
 .27534 
 
 56 
 
 72577 
 
 .86080 
 
 1457 
 
 .16346 
 
 233 
 
 .36731 
 
 57 
 
 71120 
 
 .85199 
 
 1578 
 
 .19811 
 
 289 
 
 .46158 
 
 58 
 
 69542 
 
 .8422.') 
 
 1707 
 
 .23223 
 
 351 
 
 .54468 
 
 59 
 
 67835 
 
 .83145 
 
 1866 
 
 .27091 
 
 438 
 
 .64168 
 
 60 
 
 65909 
 
 .81934 
 
 2048 
 
 .31133 
 
 548 
 
 .73842 
 
 61 
 
 63921 
 
 .80564 
 
 2237 
 
 .34967 
 
 662 
 
 .82058 
 
 62 
 
 61684 
 
 .79017 
 
 2444 
 
 .38810 
 
 796 
 
 .90076 
 
 63 
 
 59240 
 
 .77262 
 
 2694 
 
 .43040 
 
 975 
 
 .98879 
 
 64 
 
 56546 
 
 .75240 
 
 3029 
 
 .48130 
 
 1244 
 
 3.09482 
 
 65 
 
 53517 
 
 .72849 
 
 3422 
 
 .53428 
 
 1581 
 
 .19905 
 
 66 
 
 50095 
 
 .69979 
 
 3888 
 
 .58973 
 
 2009 
 
 .30293 
 
 67 
 
 46207 
 
 .66471 
 
 4418 
 
 .64523 
 
 2525 
 
 .40230 
 
 68 
 
 41789 
 
 .62106 
 
 -1073 
 
 .69662 
 
 3101 
 
 .49157 
 
 69 
 
 36816 
 
 .56604 
 
 5475 
 
 .73838 
 
 3672 
 
 .56495 
 
 70 
 
 31341 
 
 .49611 
 
 5829 
 
 .76559 
 
 4146 
 
 .61767 
 
 71 
 
 25512 
 
 .40674 
 
 5911 
 
 .77166 
 
 4410 
 
 .64441 
 
 72 
 
 19601 
 
 .29228 
 
 5624 
 
 .75005 
 
 4359 
 
 .63941 
 
 73 
 
 13977 
 
 .14541 
 
 4931 
 
 .60294 
 
 3941 
 
 .59558 
 
 74 
 
 9046 
 
 3.95646 
 
 3890 
 
 .58995 
 
 3189 
 
 .50362 
 
 75 
 
 5156 
 
 .71231 
 
 2686 
 
 .42911 
 
 2243 
 
 .35085 
 
 76 
 
 2470 
 
 .39270 
 
 1519 
 
 .18156 
 
 1286 
 
 .10920 
 
 77 
 
 951 
 
 2.97818 
 
 689 
 
 2.83822 
 
 590 
 
 2.77068 
 
 78 
 
 262 
 
 .41830 
 
 222 
 
 .34635 
 
 193 
 
 .28441 
 
 79 
 
 40 
 
 1.60206 
 
 40 
 
 1.60206 
 
 34 
 
 1.53324 
 
 a l x = Active, or premium paying members. 
 
 d 1 x = a l x a l x+1 , number dying and number totally and permanently disabled at age x out of 
 the a l x persons. *l x = *l x X i x . 
 
COMMUTATION COLUMNS TABLE XXVI. 
 
 (Death Benefit or Total and Permanent Disability Benefit.) 
 
 National Fraternal Congress Table of Mortality and Fraternal Society Total and Permanei 
 Disability Experience and 4 per cent. 
 
 Age 
 
 *D X 
 
 >N X 
 
 c' x 
 
 Ml 
 
 18 
 
 49363 
 
 994246- 
 
 243.02 
 
 11122.59 
 
 19 
 
 47222 
 
 944883 
 
 232.30 
 
 10879.57 
 
 20 
 
 45172 
 
 897661 
 
 222.49 
 
 10647.27 
 
 21 
 
 43213 
 
 852489 
 
 214.78 
 
 10424.78 
 
 22 
 
 41336 
 
 809276 
 
 207.32 
 
 10210.00 
 
 23 
 
 39538 
 
 767940 
 
 201.30 
 
 10002.68 
 
 24 
 
 37817 
 
 728402 
 
 195.06 
 
 9801.38 
 
 25 
 
 36168 
 
 690585 
 
 189.36 
 
 9606.32 
 
 26 
 
 34587 
 
 654417 
 
 184.51 
 
 9416.96 
 
 27 
 
 33072 
 
 619830 
 
 179.41 
 
 9232.45 
 
 28 
 
 31621 
 
 586758 
 
 174.11 
 
 9053.04 
 
 29 
 
 30230 
 
 555137 
 
 169.27 
 
 8878.93 
 
 30 
 
 28898 
 
 524907 
 
 164.54 
 
 8709.66 
 
 31 
 
 27622 
 
 496009 
 
 160.20 
 
 8545.12 
 
 32 
 
 26400 
 
 468387 
 
 155.96 
 
 8384.92 
 
 33 
 
 25228 
 
 441987 
 
 152.34 
 
 8228.96 
 
 34 
 
 24106 
 
 416759 
 
 149.26 
 
 8076.62 
 
 35 
 
 23029 
 
 392653 
 
 146.93 
 
 7927.36 
 
 36 
 
 21997 
 
 369624 
 
 144.56 
 
 7780.43 
 
 37 
 
 21006 
 
 347627 
 
 142.38 
 
 7635.87 
 
 38 
 
 20056 
 
 326621 
 
 141.02 
 
 7493.49 
 
 39 
 
 19143 
 
 306565 
 
 139.35 
 
 7352.47 
 
 40 
 
 18268 
 
 287422 
 
 137.99 
 
 7213.12 
 
 41 
 
 17427 
 
 269154 
 
 137.11 
 
 7075.13 
 
 42 
 
 16620 
 
 251727 
 
 136.47 
 
 6938.02 
 
 43 
 
 15844 
 
 235107 
 
 136.03 
 
 6801.55 
 
 ' 44 
 
 15099 
 
 219263 
 
 135.59 
 
 6665.52 
 
 45 
 
 14382 
 
 204164 
 
 135.15 ' 
 
 6529.93 
 
 46 
 
 13694 
 
 189782 
 
 134.70 
 
 6394.78 
 
 47 
 
 13033 
 
 176088 
 
 134.54 
 
 6260.08 
 
 48 
 
 12397 
 
 163055 
 
 134.93 
 
 6125.54 
 
 49 
 
 11785 
 
 150658 
 
 135.37 
 
 5990.61 
 
 50 
 
 11196 
 
 138873 
 
 136.51 
 
 5855.24 
 
 51 
 
 10629 
 
 127677 
 
 138.42 
 
 5718.73 
 
 52 
 
 10082 
 
 117048 
 
 140.23 
 
 5580.31 
 
 53 
 
 9554.1 
 
 106966 
 
 142.77 
 
 5440.08 
 
 54 
 
 9043.8 
 
 97411.9 
 
 145.96 
 
 5297.31 ' 
 
 55 
 
 8550.1 
 
 88368.1 
 
 150.13 
 
 5151.35 
 
 56 
 
 8071.0 
 
 79818.0 
 
 155.80 
 
 5001.22 
 
 57 
 
 7604.8 
 
 71747.0 
 
 162.25 
 
 4845.42 
 
 58 
 
 7150.2 
 
 64142.2 
 
 168.76 
 
 4683.17 
 
 59 
 
 6706.3 
 
 56992.0 
 
 177.38 
 
 4514.41 
 
 60 
 
 6271.0 
 
 50285.7 
 
 187.20 
 
 4337.03 
 
 61 
 
 5842.7 
 
 44014.7 
 
 196.61 
 
 4149.83 
 
 62 
 
 5421.3 
 
 38172.0 
 
 206.54 
 
 3953.22 
 
 63 
 
 5006.3 
 
 32750.7 
 
 218.91 
 
 3746.68 
 
 64 
 
 4594.8 
 
 27744.4 
 
 236.66 
 
 3527.77 
 
 65 
 
 4181.4 
 
 23149.6 
 
 257.09 
 
 3291.11 
 
 66 
 
 3763.5 
 
 18968.2 
 
 280.87 
 
 3034.02 
 
 67 
 
 3338.0 
 
 15204.7 
 
 306.87 
 
 2753.15 
 
 68 
 
 2903.4 
 
 11866.7 
 
 332.14 
 
 2446.28 
 
 69 
 
 2458.9 
 
 8963.3 
 
 351.60 
 
 2114.14 
 
 70 
 
 2012.7 
 
 6504.4 
 
 359.93 
 
 1762.54 
 
 71 
 
 1575.3 
 
 4491.75 
 
 350.96 
 
 1402.61 
 
 72 
 
 1163.8 
 
 2916.45 
 
 321.09 
 
 1051.65 
 
 73 
 
 797.96 
 
 1752.55 
 
 270.69 
 
 730.56 
 
 74 
 
 496.58 
 
 954.59 
 
 205.33 
 
 459.87 
 
 75 
 
 272.15 
 
 458.01 
 
 136.33 
 
 254.54 
 
 76 
 
 125.36 
 
 185.86 
 
 74.129 
 
 118.212 
 
 77 
 
 46.41 
 
 60.509 
 
 32.331 
 
 44.083 
 
 78 
 
 12.294 
 
 14.099 
 
 10.017 
 
 11.752 
 
 79 
 
 1.805 
 
 1.805 
 
 1.735 
 
 1.735 
 
COMMUTATION COLUMNS TABLE XXVII. 
 
 (Death Benefit or Total and Permanent Disability Benefit.) 
 
 National Fraternal Congress Table of Mortality and Fraternal Society Total and Permanent 
 Disability Experience and 4 per cent. 
 
 Age 
 
 X 
 
 X 
 
 <," 
 
 M x 12 
 
 18 
 
 48292.5 
 
 969564 
 
 247.83 
 
 11343.26 
 
 19 
 
 46197.0 
 
 921272 
 
 236.90 
 
 11095.42 
 
 20 
 
 44192.5 
 
 875075 
 
 226.90 
 
 10858.52 
 
 21 
 
 42274.5 
 
 830882 
 
 219.03 
 
 10631.62 
 
 22 
 
 40437.0 
 
 788608 
 
 211.43 
 
 10412.59 
 
 23 
 
 38677.5 
 
 748171 
 
 205.29 
 
 10201.16 
 
 24 
 
 36992.5 
 
 709493 
 
 198.93 
 
 9995.87 
 
 25 
 
 35377.5 
 
 672500 
 
 193.11 
 
 9796.94 
 
 26 
 
 33829.5 
 
 637123 
 
 188.16 
 
 9603.83 
 
 27 
 
 32346.5 
 
 603294 
 
 182.97 
 
 9415.67 
 
 28 
 
 30925.5 
 
 570947 
 
 177.56 
 
 9232.70 
 
 29 
 
 29564.0 
 
 540022 
 
 172.62 
 
 9055.14 
 
 30 
 
 28260.0 
 
 510458 
 
 167.80 
 
 8882.22 
 
 31 
 
 27011.0 
 
 482198 
 
 163.38 
 
 8714.42 
 
 32 
 
 25814.0 
 
 455187 
 
 159.05 
 
 8551.04 
 
 33 
 
 24667.0 
 
 429373 
 
 155.35 
 
 8391.99 
 
 34 
 
 23567.5 
 
 404706 
 
 152.22 
 
 8236.64 
 
 35 
 
 22513.0 
 
 381138 
 
 149.84 
 
 8084.42 
 
 36 
 
 21501.5 
 
 358625 
 
 147.43 
 
 7934.58 
 
 37 
 
 20531.0 
 
 337124 
 
 145.20 
 
 7787 . 15 
 
 38 
 
 19599.5 
 
 316593 
 
 143.81 
 
 7641.95 
 
 39 
 
 18705.5 
 
 296993 
 
 142.11 
 
 7498.14 
 
 40 
 
 17847.5 
 
 278288 
 
 140.72 
 
 7356.03 
 
 41 
 
 17023.5 
 
 260440 
 
 139.83 
 
 7215.31 
 
 42 
 
 16232.0 
 
 243417 
 
 139.17 
 
 7075.48 
 
 43 
 
 15471.5 
 
 227185 
 
 138.72 
 
 6936.31 
 
 44 
 
 14740.5 
 
 211713 
 
 138.28 
 
 6797.59 
 
 45 
 
 14038.0 
 
 196973 
 
 137.83 
 
 6659.31 
 
 46 
 
 13363.5 
 
 182935 
 
 137.37 
 
 6521.48 
 
 47 
 
 12715.0 
 
 169571 
 
 137.21 
 
 6384.11 
 
 48 
 
 12091.0 
 
 156856 
 
 137.60 
 
 6246.90 
 
 49 
 
 11490.5 
 
 144765 
 
 138.05 
 
 6109.30 
 
 50 
 
 10912.5 
 
 133275 
 
 139.22 
 
 5971.25 
 
 51 
 
 10355.5 
 
 122363 
 
 141.17 
 
 5832.03 
 
 52 
 
 9818.05 
 
 112007 
 
 143.01 
 
 5690.86 
 
 53 
 
 9298.95 
 
 102189 
 
 145.60 
 
 5547.85 
 
 54 
 
 8796.95 
 
 92890 
 
 148.85 
 
 5402.25 
 
 55 
 
 8310.55 
 
 84093 
 
 153.10 
 
 5253.40 
 
 56 
 
 7837.90 
 
 75782.5 
 
 158.88 
 
 5100.30 
 
 57 
 
 7377.50 
 
 67944.6 
 
 165.46 
 
 4941.42 
 
 58 
 
 6928.25 
 
 60567 . 1 
 
 172.10 
 
 4775,96 
 
 59 
 
 6488.65 
 
 53638.8 
 
 180.90 
 
 4603.86 
 
 60 
 
 6056.85 
 
 47150.2 
 
 190.91 
 
 4422.96 
 
 61 
 
 5632 .60 
 
 41093.3 
 
 200.50 
 
 4232.05 
 
 62 
 
 5213.80 
 
 35461.3 
 
 210.63 
 
 4031.55 
 
 63 
 
 4800.55 
 
 30247.5 
 
 223.25 
 
 3820.92 
 
 64 
 
 4388.10 
 
 25446.0 
 
 241.35 
 
 3597.67 
 
 65 
 
 3972.45 
 
 21058.9 
 
 262.18 
 
 3356.32 
 
 66 
 
 3550.75 
 
 17086.4 
 
 286.43 
 
 3094.14 
 
 67 
 
 3120.70 
 
 13535.7 
 
 312.95 
 
 2807.71 
 
 68 
 
 2681 . 15 
 
 10415.0 
 
 338.72 
 
 2494.76 
 
 69 
 
 2235.80 
 
 7733.81 
 
 358.57 
 
 2156.04 
 
 70 
 
 1794.00 
 
 5498.01 
 
 367.06 
 
 1797.47 
 
 71 
 
 1369.55 
 
 3704.01 
 
 357.92 
 
 1430.41 
 
 72 
 
 980.88 
 
 2334.46 
 
 327.45 
 
 1072.49 
 
 73 
 
 647.27 
 
 1353.58 
 
 276.05 
 
 745.04 
 
 74 
 
 384.365 
 
 706.308 
 
 209.40 
 
 468.99 
 
 75 
 
 198.755 
 
 321.943 
 
 139.03 
 
 259 .59 
 
 76 
 
 85.885 
 
 123.188 
 
 75.598 
 
 120.555 
 
 77 
 
 29.352 
 
 37.303 
 
 32.972 
 
 44.957 
 
 78 
 
 7.049 
 
 7.951 
 
 10.215 
 
 11.985 
 
 79 
 
 .902 
 
 .902 
 
 1.770 
 
 1.770 
 
 M 
 
 SC 
 
 '12 
 
 2 "D 1 
 
 i l) 1 
 
COMMUTATION COLUMNS TABLE XXVIII. 
 
 (Total and Permanent Disability Benefit not in Combination with a Death Benefit.) 
 
 National Fraternal Congress Table of Mortality and Fraternal Society Total and Permanent 
 
 Disability Experience and 4 per cent. 
 
 Age 
 
 'C x 
 
 log. *C* 
 
 J M X 
 
 log. 'M* 
 
 18 
 
 5.70 
 
 0.75555 
 
 3151.95 
 
 3.49859 
 
 19 
 
 5.45 
 
 .73628 
 
 3146.25 
 
 .497SO 
 
 20 
 
 5.21 
 
 .71702 
 
 3140.80 
 
 .49704 
 
 21 
 
 5.40 
 
 .73252 
 
 3135.59 
 
 .49632 
 
 22 
 
 5.90 
 
 .77538 
 
 3130.19 
 
 .49557 
 
 23 
 
 6.84 
 
 .83526 
 
 3124.23 
 
 .49474 
 
 24 
 
 7.64 
 
 .88288 
 
 3117.39 
 
 .49379 
 
 25 
 
 8.69 
 
 .93922 
 
 3109.75 
 
 .49273 
 
 26 
 
 9.05 
 
 .98428 
 
 3101.06 
 
 .49152 
 
 27 
 
 10.18 
 
 1.00758 
 
 3091.41 
 
 .49016 
 
 28 
 
 10.34 
 
 .01441 
 
 3081.23 
 
 .48872 
 
 29 
 
 10.17 
 
 .00748 
 
 3070.89 
 
 .48727 
 
 30 
 
 10.28 
 
 .01204 
 
 3060.72 
 
 .48582 
 
 31 
 
 10.09 
 
 .00400 
 
 3050.44 
 
 .48436 
 
 32 
 
 9.90 
 
 0.99563 
 
 3040.35 
 
 .48293 
 
 33 
 
 9.95 
 
 .99764 
 
 3030.45 
 
 .48151 
 
 34 
 
 10.20 
 
 1.00853 
 
 3020.50 
 
 .48008 
 
 35 
 
 10.63 
 
 .02649 
 
 3010.30 
 
 .47861 
 
 36 
 
 11.00 
 
 .04133 
 
 2999.67 
 
 .47708 
 
 37 
 
 11.31 
 
 .05350 
 
 2988.67 
 
 .47548 
 
 38 
 
 11.76 
 
 .07054 
 
 2977.36 
 
 .47384 
 
 39 
 
 11.97 
 
 .07790 
 
 2965.60 
 
 .47211 
 
 40 
 
 12.12 
 
 .08350 
 
 2953.63 
 
 .47035 
 
 41 
 
 12.23 
 
 .08751 
 
 2941.51 
 
 .46857 
 
 42 
 
 12.31 
 
 .09009 
 
 2929.28 
 
 .46676 
 
 43 
 
 12.49 
 
 .09664 
 
 2916.97 
 
 .46494 
 
 44 
 
 12.49 
 
 .09641 
 
 2904.48 
 
 .46307 
 
 45 
 
 12.45 
 
 .09504 
 
 2891 .99 
 
 .46120 
 
 46 
 
 12.38 
 
 .09263 
 
 2879.54 
 
 .45932 
 
 47 
 
 12.41 
 
 .09364 
 
 2867.16 
 
 .45746 
 
 48 
 
 12.52 
 
 .09747 
 
 2854.75 
 
 .45558 
 
 49 
 
 12.81 
 
 .10738 
 
 2S42.23 
 
 .45365 
 
 50 
 
 13.35 
 
 .12547 
 
 2829.42 
 
 .45169 
 
 51 
 
 14.21 
 
 . 15249 
 
 2816.07 
 
 .44965 
 
 52 
 
 15.22 
 
 .18241 
 
 2801.86 
 
 .44745 
 
 53 
 
 16.44 
 
 .21601 
 
 2786.64 
 
 .44507 
 
 54 
 
 18.26 
 
 .26154 
 
 2770.20 
 
 .44251 
 
 55 
 
 20.97 
 
 .32147 
 
 2751.94 
 
 .43963 
 
 56 
 
 24.91 
 
 .39641 
 
 2730.97 
 
 .43632 
 
 57 
 
 29.77 
 
 .47365 
 
 2706.06 
 
 .43234 
 
 58 
 
 34.65 
 
 .53971 
 
 2676.29 
 
 .42753 
 
 59 
 
 41.66 
 
 .61968 
 
 2641.64 
 
 .42187 
 
 60 
 
 50.05 
 
 .69939 
 
 2599.98 
 
 .41487 
 
 61 
 
 58.14 
 
 .76451 
 
 2549.93 
 
 .40652 
 
 62 
 
 67.25 
 
 .82766 
 
 2491.79 
 
 .39651 
 
 63 
 
 79.20 
 
 .89866 
 
 2424.54 
 
 .38462 
 
 64 
 
 97.21 
 
 .98765 
 
 2345.34 
 
 .37020 
 
 65 
 
 1U8.81 
 
 2.07485 
 
 2248.13 
 
 .35182 
 
 66 
 
 145.11 
 
 .16170 
 
 2129.32 
 
 .32824 
 
 67 
 
 175.40 
 
 .24403 
 
 1984.21 
 
 .29759 
 
 68 
 
 207.14 
 
 .31627 
 
 1808.81 
 
 .25739 
 
 69 
 
 235.84 
 
 .37262 
 
 1601.67 
 
 .20458 
 
 70 
 
 256.04 
 
 .40830 
 
 1365.83 
 
 .13539 
 
 71 
 
 261.82 
 
 .41801 
 
 1109.79 
 
 .04524 
 
 72 
 
 248.88 
 
 .39598 
 
 847.97 
 
 2.92838 
 
 73 
 
 216.33 
 
 .33511 
 
 599.09 
 
 .77749 
 
 74 
 
 168.31 
 
 .22612 
 
 382.76 
 
 .58293 
 
 75 
 
 113.85 
 
 .05632 
 
 214.45 
 
 .33133 
 
 76 
 
 62.75 
 
 1.79763 
 
 100.60 
 
 .00260 
 
 77 
 
 27.68 
 
 .44208 
 
 37.85 
 
 1.57807 
 
 78 
 
 8.69 
 
 0.93878 
 
 10.17 
 
 .00732 
 
 79 
 
 1.48 
 
 . 17057 
 
 1.48 
 
 0.17026 
 
COMMUTATION COLUMNS LOGARITHMS TABLE XXIX. 
 
 (Death Benefit or Total and Permanent Disability Benefit.) 
 
 National Fraternal Congress Table of Mortality and Fraternal Society Total and Perma- 
 nent Disability Experience and 4 Per Cent. 
 
 Age. 
 
 log. a D x 
 
 log. *D x 2 
 
 log. a N x 
 
 log- *N< 2 
 
 log- C x 
 
 log. M x 
 
 18 
 
 4.69340 
 
 4.68388 
 
 5.99750 
 
 5.98657 
 
 2.38564 
 
 4.04622 
 
 19 
 
 .67414 
 
 .66461 
 
 .97538 
 
 .96439 
 
 .36605 
 
 .03663 
 
 20 
 
 .65487 
 
 .64535 
 
 .95311 
 
 .94204 
 
 .34731 
 
 .02723 
 
 21 
 
 .63561 
 
 .62608 
 
 .93069 
 
 .91954 
 
 .33199 
 
 .01808 
 
 22 
 
 .61633 
 
 .60678 
 
 .90810 
 
 .89636 
 
 .31665 
 
 .00903 
 
 23 
 
 .59702 
 
 .58746 
 
 .88533 
 
 .87400 
 
 .30585 
 
 .00013 
 
 24 
 
 .57760 
 
 .56812 
 
 .86237 
 
 .85095 
 
 .29017 
 
 3.99129 
 
 25 
 
 .55832 
 
 .54873 
 
 .83921 
 
 .82769 
 
 .27729 
 
 .98256 
 
 26 
 
 .53891 
 
 .52930 
 
 .81586 
 
 .80422 
 
 .26601 
 
 .97391 
 
 27 
 
 .51946 
 
 .50983 
 
 .79227 
 
 .78053 
 
 .25385 
 
 .96532 
 
 28 
 
 .49997 
 
 .49032 
 
 .76846 
 
 .75660 
 
 .24083 
 
 .95679 
 
 29 
 
 .48044 
 
 .47076 
 
 .74440 
 
 .73241 
 
 .22857 
 
 .94836 
 
 30 
 
 .46087 
 
 .45117 
 
 .72008 
 
 .70796 
 
 .21626 
 
 .94000 
 
 31 
 
 .44126 
 
 .43154 
 
 .69549 
 
 .68323 
 
 .20467 
 
 .93172 
 
 32 
 
 .42160 
 
 .41186 
 
 .67061 
 
 .65819 
 
 . 19301 
 
 .92350 
 
 33 
 
 .40189 
 
 .39212 
 
 .64541 
 
 .63283 
 
 .18280 
 
 .91535 
 
 34 
 
 .38212 
 
 .37232 
 
 .61989 
 
 .60714 
 
 . 17395 
 
 .90723 
 
 35 
 
 .36228 
 
 .35243 
 
 .59401 
 
 .58108 
 
 .16712 
 
 .89913 
 
 36 
 
 .34236 
 
 .33248 
 
 .56776 
 
 .55465 
 
 .16006 
 
 .89100 
 
 37 
 
 .32235 
 
 .31241 
 
 .54112 
 
 .52778 
 
 . 15345 
 
 .88286 
 
 38 
 
 .30224 
 
 .29226 
 
 .51404 
 
 .50050 
 
 . 14928 
 
 .87468 
 
 39 
 
 .28202 
 
 .27198 
 
 .48652 
 
 .47274 
 
 .14410 
 
 .86644 
 
 40 
 
 .26169 
 
 .25159 
 
 .45852 
 
 .44450 
 
 . 13985 
 
 .85812 
 
 41 
 
 .24122 
 
 .23106 
 
 .42999 
 
 .41571 
 
 . 13708 
 
 .84973 
 
 42 
 
 .22063 
 
 .21037 
 
 .40094 
 
 .38636 
 
 . 13504 
 
 .84123 
 
 43 
 
 .19987 
 
 . 18955 
 
 .37127 
 
 .35637 
 
 .13362 
 
 .83261 
 
 44 
 
 .17894 
 
 . 16853 
 
 .34096 
 
 .32574 
 
 .13223 
 
 .82383 
 
 45 
 
 .15783 
 
 .14731 
 
 .30997 
 
 .29440 
 
 . 13081 
 
 .81491 
 
 46 
 
 .13654 
 
 . 12594 
 
 .27825 
 
 .26228 
 
 .12936 
 
 .80583 
 
 47 
 
 .11503 
 
 .10432 
 
 .24573 
 
 .22935 
 
 .12885 
 
 .79658 
 
 48 
 
 .09331 
 
 .08246 
 
 .21232 
 
 . 19551 
 
 .13010 
 
 .78714 
 
 49 
 
 .07134 
 
 .06036 
 
 .17800 
 
 .16062 
 
 .13151 
 
 .77747 
 
 50 
 
 .04908 
 
 .03794 
 
 .14261 
 
 .12473 
 
 .13519 
 
 .76754 
 
 51 
 
 .02651 
 
 .01519 
 
 .10612 
 
 .08764 
 
 .14121 
 
 .75730 
 
 52 
 
 .00355 
 
 3.99203 
 
 .06837 
 
 .04926 
 
 .14684 
 
 .74666 
 
 53 
 
 3.98019 
 
 .96844 
 
 .02926 
 
 .00941 
 
 .15455 
 
 .73561 
 
 54 
 
 .95635 
 
 .94433 
 
 4.98861 
 
 4.96797 
 
 . 16423 
 
 .72405 
 
 55 
 
 .93197 
 
 .91963 
 
 .94630 
 
 .92476 
 
 .17646 
 
 .71193 
 
 56 
 
 .90693 
 
 .89420 
 
 .90210 
 
 .87957 
 
 . 19256 
 
 .69907 
 
 57 
 
 .88109 
 
 .86791 
 
 .85580 
 
 .83216 
 
 .21018 
 
 .68533 
 
 58 
 
 .85432 
 
 .84063 
 
 .80714 
 
 .78224 
 
 .22726 
 
 .67054 
 
 59 
 
 .82648 
 
 .81216 
 
 .75581 
 
 .72948 
 
 .24891 
 
 .65460 
 
 60 
 
 .79734 
 
 .78225 
 
 .70145 
 
 .67348 
 
 .27230 
 
 .63719 
 
 61 
 
 .76661 
 
 .75066 
 
 .64360 
 
 .61377 
 
 .29360 
 
 .61803 
 
 62 
 
 .73410 
 
 .71715 
 
 ,58174 
 
 .54975 
 
 .31500 
 
 .59695 
 
 63 
 
 .69952 
 
 .68130 
 
 .51522 
 
 .48070 
 
 .34027 
 
 .57365 
 
 64 
 
 .66227 
 
 .64228 
 
 .44317 
 
 .40564 
 
 .37413 
 
 .54750 
 
 65 
 
 .62132 
 
 .59900 
 
 .36455 
 
 .32344 
 
 .41008 
 
 .51734 
 
 66 
 
 .57.");-)'.) 
 
 5033 
 
 .27802 
 
 .23264 
 
 .44850 
 
 .48202 
 
 67 
 
 .52348 
 
 .49425 
 
 .18199 
 
 .13149 
 
 .48696 
 
 .43984 
 
 68 
 
 .46290 
 
 .42833 
 
 .07434 
 
 .01766 
 
 .52132 
 
 .38851 
 
 69 
 
 .31)074 
 
 .34943 
 
 3.95247 
 
 3.88839 
 
 .54605 
 
 .32513 
 
 70 
 
 .30378 
 
 .25382 
 
 .81321 
 
 . 74020 
 
 .55622 
 
 .24613 
 
 71 
 
 .19737 
 
 .13659 
 
 .65241 
 
 .56867 
 
 .54526 
 
 .14693 
 
 72 
 
 .06588 
 
 2.99162 
 
 .46485 
 
 .36819 
 
 .50662 
 
 .02189 
 
 73 
 
 2.90198 
 
 .81109 
 
 .24368 
 
 . 13149 
 
 .43247 
 
 2.86366 
 
 74 
 
 .69599 
 
 .5847") 
 
 2.97982 
 
 2.84900 
 
 .31245 
 
 .66264 
 
 75 
 
 .43481 
 
 .29833 
 
 .66088 
 
 .50777 
 
 .13458 
 
 .40576 
 
 76 
 
 .09817 
 
 1.93392 
 
 .26921 
 
 .09058 
 
 1.86999 
 
 .07265 
 
 77 
 
 1.66661 
 
 .46764 
 
 1.78182 
 
 1.57174 
 
 .50962 
 
 1.64427 
 
 78 
 
 .08970 
 
 0.84813 
 
 .14919 
 
 0.90042 
 
 .00072 
 
 .07011 
 
 79 
 
 .25643 
 
 1.95521 
 
 0.25648 
 
 1.95521 
 
 0.23939 
 
 0.23930 
 
 *D x + a Dx + i 
 2 
 
 M = s c . 
 
348 
 
 TABLE XXX. 
 ANNUITIES, SINGLE PREMIUMS AND ANNUAL PREMIUMS. 
 
 National Fraternal Congress Table of Mortality and Fraternal Society Total and Perma- 
 nent Disability Experience and 4 Per Cent. 
 
 
 Ifjif 
 
 
 -n 3 
 
 
 fiffflf 
 
 
 III 1 .! 
 
 
 " i-a oo Q 
 
 
 ifltP 1 
 
 Age. 
 
 log. a a" 
 
 -? 
 
 log. a Ax 2 
 
 A- 
 
 log. *P 2 
 
 X 
 
 18 
 
 1.29317 
 
 19.64 
 
 2.36133 
 
 229.79 
 
 1.06816 
 
 11.70 
 
 19 
 
 .29025 
 
 19.51 
 
 .37099 
 
 234.96 
 
 .08074 
 
 12.04 
 
 20 
 
 .28717 
 
 19.37 
 
 .38092 
 
 240.39 
 
 .09375 
 
 12.41 
 
 21 
 
 .28393 
 
 19.23 
 
 .39101 
 
 246.04 
 
 . 10708 
 
 12.80 
 
 22 
 
 .28053 
 
 19.08 
 
 .40125 
 
 251.91 
 
 . 12072 
 
 13.20 
 
 23 
 
 .27698 
 
 18.92 
 
 .41162 
 
 258.00 
 
 .13464 
 
 13.64 
 
 24 
 
 .27326 
 
 18.76 
 
 .42213 
 
 264.32 
 
 .14887 
 
 14.09 
 
 25 
 
 .26937 
 
 18.59 
 
 .43277 
 
 270.88 
 
 . 16340 
 
 14.57 
 
 26 
 
 .26531 
 
 18.42 
 
 .44353 
 
 277.67 
 
 .17822 
 
 15.07 
 
 27 
 
 .26107 
 
 18.24 
 
 .45439 
 
 284.70 
 
 . 19332 
 
 15.61 
 
 28 
 
 .25663 
 
 18.06 
 
 .46536 
 
 291.98 
 
 .20873 
 
 16.17 
 
 29 
 
 .25197 
 
 17.86 
 
 .47645 
 
 299.54 
 
 .22448 
 
 16.77 
 
 30 
 
 .24709 
 
 17.66 
 
 .48765 
 
 307.36 
 
 .24056 
 
 .17.40 
 
 31 
 
 .24197 
 
 17.46 
 
 .49898 
 
 315.49 
 
 .25701 
 
 18.07 
 
 32 
 
 .23659 
 
 17.24 
 
 .51042 
 
 323.91 
 
 .27383 
 
 18.79 
 
 33 
 
 .23094 
 
 17.02 
 
 .52198 
 
 332.64 
 
 .29104 
 
 19.55 
 
 34 
 
 .22502 
 
 16.79 
 
 .53363 
 
 341.69 
 
 .30861 
 
 20.35 
 
 35 
 
 .21880 
 
 16.55 
 
 .54537 
 
 351.05 
 
 .32657 
 
 21.21 
 
 36 
 
 .21229 
 
 16.30 
 
 .55717 
 
 360.72 
 
 .34488 
 
 22.13 
 
 37 
 
 .20543 
 
 16.05 
 
 .56903 
 
 370.71 
 
 .36360 
 
 23.10 
 
 38 
 
 .19826 
 
 15.79 
 
 .58096 
 
 381.03 
 
 .38270 
 
 24.14 
 
 39 
 
 .19072 
 
 15.51 
 
 .59293 
 
 391.68 
 
 .40221 
 
 25.25 
 
 40 . 
 
 .18281 
 
 15.23 
 
 .60495 
 
 402.67 
 
 .42214 
 
 26.43 
 
 41 
 
 .17449 
 
 14.95 
 
 .61703 
 
 414.03 
 
 .44254 
 
 27.70 
 
 42 
 
 .16573 
 
 14.65 
 
 .62913 
 
 425.73 
 
 .46340 
 
 29.07 
 
 43 
 
 .15650 
 
 14.34 
 
 .64126 
 
 437.78 
 
 .48476 
 
 30.53 
 
 44 
 
 . 14680 
 
 14.02 
 
 .65342 
 
 450.22 
 
 .50662 
 
 32.11 
 
 45 
 
 .13657 
 
 13.70 
 
 .66560 
 
 463.02 
 
 .52903 
 
 33.81 
 
 46 ' 
 
 .12574 
 
 13.36 
 
 .67781 
 
 476.22 
 
 .55207 
 
 35.65 
 
 47 
 
 .11432 
 
 13.01 
 
 .69007 
 
 489.86 
 
 .57575 
 
 37.65 
 
 48 
 
 . 10220 
 
 12.65 
 
 .70235 
 
 503.91 
 
 .60015 
 
 39.82 
 
 49 
 
 .08934 
 
 12.28 
 
 .71465 
 
 518.38 
 
 .62531 
 
 42.20 
 
 50 
 
 .07565 
 
 11.90 
 
 .72698 
 
 533.31 
 
 .65133 
 
 44.81 
 
 51 
 
 .06113 
 
 11.51 
 
 .73931 
 
 548.67 
 
 .67818 
 
 47.66 
 
 52 
 
 .04571 
 
 11.11 
 
 .75163 
 
 564.46 
 
 .70592 
 
 50.81 
 
 53 
 
 .02922 
 
 10.70 
 
 .76393 
 
 580.67 
 
 .73471 
 
 54.29 
 
 54 
 
 .01162 
 
 10.27 
 
 .77622 
 
 597.34 
 
 .76460 
 
 58.16 
 
 55 
 
 0.99279 
 
 9.84 
 
 .78847 
 
 614.43 
 
 .79568 
 
 62.47 
 
 56 
 
 .97264 
 
 9.39 
 
 .80067 
 
 631.93 
 
 .82803 
 
 67.30 
 
 57 
 
 .95107 
 
 8.94 
 
 .81276 
 
 649.77 
 
 .86169 
 
 72.73 
 
 58 
 
 .92792 
 
 8.47 
 
 .82474 
 
 667.94 
 
 .89682 
 
 78.85 
 
 59 
 
 .90300 
 
 8.00 
 
 .83665 
 
 686.52 
 
 .93365 
 
 85.83 
 
 60 
 
 .87614 
 
 7.52 
 
 .84838 
 
 705.31 
 
 .97224 
 
 93.81 
 
349 
 
 TABLE XXX. 
 ANNUITIES, SINGLE PREMIUMS AND ANNUAL PREMIUMS Continued. 
 
 National Fraternal Congress Table of Mortality and Fraternal Society Total and Perma- 
 nent Disability Experience and 4 Per Cent Continued. 
 
 
 i&3 
 
 
 ^>> 
 
 
 illjlii 
 
 
 "on-JS'S Q 
 
 
 QJ "^ ^ H "S '_3 fi 
 
 
 
 
 J ^"g.1-3 
 
 
 2 I 111 1 
 
 
 a S "J5 2-o.S 
 
 
 If a .1 
 
 
 a'31* 3 ! 
 
 
 4i*JJ' a 
 
 Age. 
 
 log. **\ 2 
 
 a C 
 
 log. a A* 2 
 
 X 
 
 log. *P^ 2 
 
 X 
 
 61 
 
 .84716 
 
 7.03 
 
 .85994 
 
 724.34 
 
 2.01278 
 
 102.99 
 
 62 
 
 .81565 
 
 6.54 
 
 .87137 
 
 743.65 
 
 .05572 
 
 113.69 
 
 63 
 
 .78118 
 
 6.04 
 
 .88265 
 
 763.22 
 
 .10147 
 
 126.32 
 
 64 
 
 .74337 
 
 5.54 
 
 .89375 
 
 782.98 
 
 . 15038 
 
 141.38 
 
 65 
 
 .70212 
 
 5.04 
 
 .90454 
 
 802.68 
 
 .20242 
 
 159.37 
 
 66 
 
 .65705 
 
 4.54 
 
 .91494 
 
 822.13 
 
 .25789 
 
 181.09 
 
 67 
 
 .60801 
 
 4.06 
 
 .92487 
 
 841.14 
 
 .31686 
 
 207.42 
 
 68 
 
 .55476 
 
 3.59 
 
 .93414 
 
 859.29 
 
 .37938 
 
 239.54 
 
 69 
 
 .49765 
 
 3.15 
 
 .94291 
 
 876.82 
 
 .44526 
 
 278.78 
 
 70 
 
 .43642 
 
 2.73 
 
 .95089 
 
 893.08 
 
 .51447 
 
 326.94 
 
 71 
 
 .37130 
 
 2.35 
 
 .95809 
 
 908.01 
 
 .58679 
 
 386.18 
 
 72 
 
 .30231 
 
 2.01 
 
 .96452 
 
 921.55 
 
 .66221 
 
 459.42 
 
 73 
 
 .22951 
 
 1.70 
 
 .97020 
 
 933.68 
 
 .74069 
 
 550.41 
 
 74 
 
 .15301 
 
 1.42 
 
 .97517 
 
 944.43 
 
 .82216 
 
 663.99 
 
 75 
 
 .07296 
 
 1.18 
 
 .97948 
 
 953.85 
 
 .90652 
 
 806.34 
 
 76 
 
 1.99241 
 
 .98 
 
 .98303 
 
 961.68 
 
 .99062 
 
 978.63 
 
 77 
 
 .90513 
 
 .80 
 
 .98619 
 
 968.70 
 
 3.08106 
 
 1205.20 
 
 78 
 
 .81072 
 
 .65 
 
 .98894 
 
 974.85 
 
 .17822 
 
 1507.40 
 
 79 
 
 .69878 
 
 .50 
 
 .99154 
 
 980.71 
 
 .29276 
 
 1962.30 
 
350 
 
 TABLE XXXI. 
 FRATERNAL DEATH AND DISABILITY EXPERIENCE. 
 
 Age. 
 
 lx 
 
 d* 
 
 Px 
 
 Qx 
 
 ,aa 
 
 if 
 
 pT 
 
 qf 
 
 20 
 
 100000 
 
 500 
 
 .9950000 
 
 .0050000 
 
 100000 
 
 498 
 
 .994904 
 
 .004976 
 
 21 
 
 99500 
 
 501 
 
 .9949648 
 
 .0050352 
 
 99490 
 
 492 
 
 .994923 
 
 .004947 
 
 22 
 
 98999 
 
 502 
 
 .9949292 
 
 .0050708 
 
 98982 
 
 498 
 
 .994823 
 
 .005027 
 
 23 
 
 98497 
 
 503 
 
 .9948932 
 
 .0051068 
 
 98473 
 
 494 
 
 .994805 
 
 .005015 
 
 24 
 
 97994 
 
 505 
 
 .9948466 
 
 .0051534 
 
 97961 
 
 499 
 
 .994696 
 
 .005094 
 
 25 
 
 97489 
 
 507 
 
 .9947994 
 
 .0052006 
 
 97446 
 
 494 
 
 .994677 
 
 .005073 
 
 26 
 
 96982 
 
 510 
 
 .9947413 
 
 .0052587 
 
 96927 
 
 500 
 
 .994549 
 
 .005161 
 
 27 
 
 96472 
 
 513 
 
 .9946824 
 
 .0053176 
 
 96403 
 
 496 
 
 .994540 
 
 .005140 
 
 28 
 
 95959 
 
 517 
 
 .9946123 
 
 .0053877 
 
 95875 
 
 500 
 
 .994440 
 
 .005220 
 
 29 
 
 95442 
 
 522 
 
 .9945307 
 
 .0054693 
 
 95343 
 
 505 
 
 .994349 
 
 .005301 
 
 30 
 
 94920 
 
 527 
 
 .9944480 
 
 .0055520 
 
 94807 
 
 510 
 
 .994260 
 
 .005380 
 
 31 
 
 94393 
 
 533 
 
 .9943534 
 
 .0056466 
 
 94266 
 
 506 
 
 .994249 
 
 .005371 
 
 32 
 
 93860 
 
 540 
 
 .9942468 
 
 .0057532 
 
 93720 
 
 520 
 
 .994059 
 
 .005551 
 
 33 
 
 93320 
 
 548 
 
 .9941277 
 
 .0058723 
 
 93167 
 
 525 
 
 .993950 
 
 .005640 
 
 34 
 
 92772 
 
 557 
 
 .9939960 
 
 .0060040 
 
 92606 
 
 530 
 
 .993842 
 
 .005718 
 
 35 
 
 92215 
 
 567 
 
 .9938513 
 
 .0061487 
 
 92035 
 
 534 
 
 .993714 
 
 .005806 
 
 36 
 
 91648 
 
 578 
 
 .9936933 
 
 .0063067 
 
 91452 
 
 547 
 
 .993496 
 
 .005984 
 
 37 
 
 91070 
 
 591 
 
 .9935105 
 
 .0064895 
 
 90857 
 
 559 
 
 .993288 
 
 .006152 
 
 38 
 
 90479 
 
 606 
 
 .9933023 
 
 .0066977 
 
 90248 
 
 571 
 
 .993061 
 
 .006329 
 
 39 
 
 89873 
 
 622 
 
 .9930791 
 
 .0069209 
 
 89622 
 
 582 
 
 .992853 
 
 .006497 
 
 40 
 
 89251 
 
 640 
 
 .9928292 
 
 .0071708 
 
 88979 
 
 603 
 
 .992535 
 
 .006775 
 
 41 
 
 88611 
 
 660 
 
 .9925517 
 
 .0074483 
 
 88317 
 
 613 
 
 .992328 
 
 .006942 
 
 42 
 
 87951 
 
 683 
 
 .9922343 
 
 .0077657 
 
 87636 
 
 641 
 
 .991920 
 
 .007310 
 
 43 
 
 87268 
 
 708 
 
 .9918871 
 
 .0081129 
 
 86931 
 
 659 
 
 .991603 
 
 .007577 
 
 44 
 
 86560 
 
 734 
 
 .9915203 
 
 .0084797 
 
 86200 
 
 685 
 
 .991195 
 
 .007945 
 
 45 
 
 85826 
 
 761 
 
 .9911332 
 
 .0088668 
 
 85443 
 
 710 
 
 .990787 
 
 .008313 
 
 46 
 
 85065 
 
 790 
 
 .9907130 
 
 .0092870 
 
 84659 
 
 734 
 
 .990390 
 
 .008670 
 
 47 
 
 84275 
 
 822 
 
 .9902462 
 
 .0097538 
 
 83846 
 
 766 
 
 .989873 
 
 .009137 
 
 48 
 
 83453 
 
 857 
 
 .9897307 
 
 .0102693 
 
 83001 
 
 796 
 
 .989357 
 
 .009593 
 
 49 
 
 82596 
 
 894 
 
 .9891762 
 
 .0108238 
 
 82120 
 
 826 
 
 .988812 
 
 .010058 
 
 50 
 
 81702 
 
 935 
 
 .9885560 
 
 .0114440 
 
 81200 
 
 862 
 
 .988149 
 
 .010611 
 
 51 
 
 80767 
 
 981 
 
 .9878540 
 
 .0121460 
 
 80234 
 
 903 
 
 .987358 
 
 .011252 
 
 52 
 
 79786 
 
 1029 . 
 
 .9871030 
 
 .0128970 
 
 79216 
 
 949 
 
 .986449 
 
 .011981 
 
 53 
 
 78757 
 
 1083 
 
 .9862488 
 
 .0137512 
 
 78143 
 
 1000 
 
 .985413 
 
 .012797 
 
 54 
 
 77674 
 
 1140 
 
 .9853233 
 
 .0146767 
 
 77007 
 
 1047 
 
 .984303 
 
 .013597 
 
 55 
 
 76534 
 
 1202 
 
 .9842946 
 
 .0157054 
 
 75800 
 
 1097 
 
 .982982 
 
 .014468 
 
 56 
 
 75332 
 
 1270 
 
 .9831413 
 
 .0168587 
 
 74510 
 
 1154 
 
 .981304 
 
 .015486 
 
 57 
 
 74062 
 
 1342 
 
 .9818800 
 
 .0181200 
 
 73120 
 
 1202 
 
 .979489 
 
 .016441 
 
 58 
 
 72720 
 
 1418 
 
 .9805006 
 
 .0194994 
 
 71619 
 
 1255 
 
 .977430 
 
 .017530 
 
 59 
 
 71302 
 
 1501 
 
 .9789487 
 
 .0210513 
 
 70002 
 
 1310 
 
 .974820 
 
 . .018720 
 
 60 
 
 69801 
 
 1588 
 
 .9772496 
 
 .0227504 
 
 68243 
 
 1358 
 
 .971807 
 
 .019893 
 
 61 
 
 68213 
 
 1681 
 
 .9753566 
 
 .0246434 
 
 66323 
 
 1395 
 
 .968721 
 
 .021029 
 
 62 
 
 66532 
 
 1778 
 
 .9732760 
 
 .0267240 
 
 64245 
 
 1434 
 
 .964976 
 
 .022324 
 
 63 
 
 64754 
 
 1880 
 
 .9709670 
 
 .0290330 
 
 61994 
 
 1463 
 
 .960274 
 
 .023606 
 
 64 
 
 62874 
 
 1985 
 
 .9684289 
 
 .0315711 
 
 59529 
 
 1482 
 
 .954040 
 
 .024890 
 
 65 
 
 60889 
 
 2094 
 
 .9656096 
 
 .0343904 
 
 56795 
 
 1473 
 
 .946052 
 
 .025928 
 
351 
 
 TABLE XXXI Continued. 
 FRATERNAL DEATH AND DISABILITY EXPERIENCE Continued. 
 
 Age. 
 
 1* 
 
 dx 
 
 Px 
 
 qx 
 
 ,aa 
 
 ,aa 
 
 d x 
 
 P f 
 
 qf 
 
 66 
 
 58795 
 
 2206 
 
 .9624798 
 
 .0375202 
 
 53732 
 
 1432 
 
 .935705 
 
 .026645 
 
 67 
 
 56589 
 
 2318 
 
 .9590380 
 
 .0409620 
 
 50276 
 
 1355 
 
 .922617 
 
 .026953 
 
 68 
 
 54271 
 
 2430 
 
 .9552247 
 
 .0447753 
 
 46387 
 
 1230 
 
 .906733 
 
 .026507 
 
 69 
 
 51841 
 
 2539 
 
 .9510233 
 
 .0489767 
 
 42062 
 
 1069 
 
 .890657 
 
 .025403 
 
 70 
 
 49302 
 
 2645 
 
 .9463511 
 
 .0536489 
 
 37464 
 
 866 
 
 .865553 
 
 .023117 
 
 71 
 
 46657 
 
 2744 
 
 .9411878 
 
 .0588122 
 
 32425 
 
 636 
 
 .841035 
 
 .019605 
 
 72 
 
 43913 
 
 2832 
 
 .9355088 
 
 .0644912 
 
 27270 
 
 404 
 
 .815443 
 
 .014827 
 
 73 
 
 41081 
 
 2909 
 
 .9291887 
 
 .0708113 
 
 22238 
 
 199 
 
 .789161 
 
 .008949 
 
 74 
 
 38172 
 
 2969 
 
 .9222205 
 
 .0777795 
 
 17549 
 
 43 
 
 .762593 
 
 .002477 
 
 75 
 
 3o203 
 
 3009 
 
 .9145243 
 
 .0854757 
 
 13383 
 
 
 
 
 76 
 
 32194 
 
 3026 
 
 .9060073 
 
 .0939927 
 
 9780 
 
 
 
 
 77 
 
 29168 
 
 3016 
 
 .8965990 
 
 . 1034010 
 
 6731 
 
 
 
 
 78 
 
 26152 
 
 2977 
 
 .8861655 
 
 .1138345 
 
 4228 
 
 
 
 
 79 
 
 23174 
 
 2905 
 
 .8746494 
 
 . 1253506 
 
 2213 
 
 
 
 
 80 
 
 20270 
 
 2799 
 
 .8619142 
 
 . 1380858 
 
 844 
 
 
 
 
 81 
 
 17471 
 
 2659 
 
 .8478049 
 
 .1521951 
 
 61 
 
 
 
 
 82 
 
 14812 
 
 2485 
 
 .8322306 
 
 . 1677694 
 
 
 83 
 
 12327 
 
 2280 
 
 .8150402 
 
 . 1849598 
 
 
 84 
 
 10047 
 
 2050 
 
 .7959590 
 
 .2040410 
 
 lx, d x , PX and q x are taken from the 
 
 85 
 
 7997 
 
 1800 
 
 .7749156 
 
 .2250844 
 
 National Fraternal Congress Table of 
 
 
 
 
 
 
 Mortality and the disability ratios 
 
 86 
 
 87 
 
 6197 
 
 4658 
 
 1539 
 1277 
 
 .7516540 
 .7258480 
 
 .2483460 
 .2741520 
 
 from the experience of four Fraternal 
 beneficiary societies. Modifications of 
 
 88 
 
 3381 
 
 1023 
 
 .6974268 
 
 .3025732 
 
 one or the other would have been 
 
 89 
 
 2358 
 
 788 
 
 .6658185 
 
 3341815 
 
 necessary in order to have assigned 
 
 90 
 
 1570 
 
 579 
 
 .6312102 
 
 .3687898 
 
 any deaths (df) to the l aa column, 
 
 91 
 
 991 
 
 404 
 
 .5923310 
 
 .4076690 
 
 or to have obtained any positive 
 
 92 
 93 
 
 587 
 323 
 
 264 
 161 
 
 .5502555 
 .5015480 
 
 .4497445 
 .4984520 
 
 values for q aa and pf at any age 
 
 94 
 
 162 
 
 89 
 
 .4506173 
 
 .5493827 
 
 older than 74. I did not make the 
 
 95 
 
 73 
 
 44 
 
 .3972603 
 
 .6027397 
 
 modifications, but permitted the last 
 
 
 
 
 
 
 three columns to vanish at age 75. 
 
 96 
 
 29 
 
 19 
 
 .3448276 
 
 .6551724 
 
 The formulas employed were those 
 
 97 
 
 10 
 
 7 
 
 .3000000 
 
 .7000000 
 
 given by Mr. F. B. Mead in his paper 
 
 98 
 
 3 
 
 3 
 
 .0000000 
 
 1.0000000 
 
 in the May, 1910, Transactions of the 
 
 
 
 
 
 
 Actuarial Society for values at ages 
 
 _ j.1 *rr TJ nr c*r\ \\ 
 
 
 following: 
 
 -^("^-i^^ because qf = 0). 
 
 For ages younger than 75: 
 
352 
 
 TABLE XXXII. 
 FRATERNAL DEATH AND DISABILITY EXPERIENCE. 
 
 Age. 
 
 I? 
 
 dl! 
 
 iL 
 
 dl 
 
 pL 
 
 qL 
 
 rf! 
 
 q* 
 
 20 
 
 00 
 
 2 
 
 2191100 
 
 876400 
 
 .6000 
 
 .4000 
 
 .000096 
 
 .000024 
 
 21 
 
 10 
 
 6 
 
 1314700 
 
 456340 
 
 .6529 
 
 .3471 
 
 .000107 
 
 .000023 
 
 22 
 
 17 
 
 8 
 
 858360 
 
 260600 
 
 .6964 
 
 .3036 
 
 .000127 
 
 .000023 
 
 23 
 
 24 
 
 9 
 
 597760 
 
 160020 
 
 .7323 
 
 .2677 
 
 .000155 
 
 .000025 
 
 24 
 
 33 
 
 11 
 
 437740 
 
 104440 
 
 .7614 
 
 .2386 
 
 .000184 
 
 .000026 
 
 25 
 
 43 
 
 12 
 
 333300 
 
 71830 
 
 .7845 
 
 .2155 
 
 .000223 
 
 .000027 
 
 26 
 
 55 
 
 14 
 
 261470 
 
 51670 
 
 .8024 
 
 .1976 
 
 .000261 
 
 .000029 
 
 27 
 
 69 
 
 16 
 
 209800 
 
 38600 
 
 .8160 
 
 .1840 
 
 .000290 
 
 .000030 
 
 28 
 
 84 
 
 18 
 
 171200 
 
 29750 
 
 .8262 
 
 .1738 
 
 .000310 
 
 .000030 
 
 29 
 
 99 
 
 19 
 
 141450 
 
 23500 
 
 .8339 
 
 .1661 
 
 .000321 
 
 .000029 
 
 30 
 
 113 
 
 21 
 
 117950 
 
 18883 
 
 .8399 
 
 .1601 
 
 .000340 
 
 .000030 
 
 31 
 
 127 
 
 23 
 
 99067 
 
 15376 
 
 .8448 
 
 . 1552 
 
 .000351 
 
 .000029 
 
 32 
 
 140 
 
 24 
 
 83691 
 
 12637 
 
 .8490 
 
 .1510 
 
 .000361 
 
 .000029 
 
 33 
 
 153 
 
 25 
 
 71054 
 
 10403 
 
 .8536 
 
 .1464 
 
 .000380 
 
 .000030 
 
 34 
 
 166 
 
 27 
 
 60651 
 
 8691 
 
 .8567 
 
 . 1433 
 
 .000408 
 
 .000032 
 
 35 
 
 180 
 
 28 
 
 51960 
 
 7305 
 
 .8594 
 
 .1406 
 
 .000446 
 
 .000034 
 
 36 
 
 196 
 
 31 
 
 44655 
 
 6172 
 
 .8618 
 
 .1382 
 
 .000484 
 
 .000036 
 
 37 
 
 213 
 
 33 
 
 38483 
 
 5237 
 
 .8639 
 
 . 1361 
 
 .000522 
 
 .000038 
 
 38 
 
 231 
 
 35 
 
 33246 
 
 4465 
 
 .8657 
 
 .1343 
 
 .000569 
 
 .000041 
 
 39 
 
 251 
 
 37 
 
 28781 
 
 3822 
 
 .8672 
 
 .1328 
 
 .000607 
 
 .000043 
 
 40 
 
 272 
 
 39 
 
 24959 
 
 3282 
 
 .8685 
 
 .1315 
 
 .000645 
 
 .000045 
 
 41 
 
 294 
 
 43 
 
 21677 
 
 2827 
 
 .8696 
 
 .1304 
 
 .000682 
 
 .000048 
 
 42 
 
 315 
 
 45 
 
 18850 
 
 2441 
 
 .8705 
 
 .1295 
 
 .000720 
 
 .000050 
 
 43 
 
 337 
 
 48 
 
 16409 
 
 2113 
 
 .8712 
 
 .1288 
 
 .000767 
 
 .000053 
 
 44 
 
 360 
 
 51 
 
 14296 
 
 1833 
 
 .8718 
 
 .1282 
 
 .000805 
 
 .000055 
 
 45 
 
 383 
 
 54 
 
 12463 
 
 1591 
 
 .8723 
 
 .1277 
 
 .000843 
 
 .000057 
 
 46 
 
 406 
 
 57 
 
 10872 
 
 1384 
 
 .8727 
 
 .1273 
 
 .000880 
 
 .000060 
 
 47 
 
 429 
 
 60 
 
 9488 
 
 1205 
 
 .8730 
 
 .1270 
 
 .000927 
 
 .000063 
 
 48 
 
 452 
 
 63 
 
 8283 
 
 1050 
 
 .8732 
 
 .1268 
 
 .000983 
 
 .000067 
 
 49 
 
 476 
 
 67 
 
 7233 
 
 917 
 
 .8733 
 
 .1267 
 
 .001058 
 
 .000072 
 
 50 
 
 502 
 
 70 
 
 6316 
 
 800 
 
 .8733 
 
 .1267 
 
 .001161 
 
 .000079 
 
 51 
 
 533 
 
 75 
 
 5516 
 
 699 
 
 .8733 
 
 .1267 
 
 .001302 
 
 .000088 
 
 52 
 
 570 
 
 80 
 
 4817 
 
 610 
 
 .8733 
 
 .1267 
 
 .001471 
 
 .000099 
 
 53 
 
 614 
 
 87 
 
 4207 
 
 534 
 
 .8732 
 
 .1268 
 
 .001677 
 
 .000113 
 
 54 
 
 667 
 
 95 
 
 3673 
 
 466 
 
 .8732 
 
 .1268 
 
 .001967 
 
 .000133 
 
 55 
 
 734 
 
 105 
 
 3207 
 
 406 
 
 .8732 
 
 .1268 
 
 .002388 
 
 .000162 
 
 56 
 
 822 
 
 118 
 
 2801 
 
 356 
 
 .8731 
 
 .1269 
 
 003006 
 
 .000204 
 
 57 
 
 942 
 
 139 
 
 2445 
 
 310 
 
 .8731 
 
 .1269 
 
 003811 
 
 .000259 
 
 58 
 
 1101 
 
 162 
 
 2135 
 
 271 
 
 .8730 
 
 .1270 
 
 004720 
 
 .000320 
 
 59 
 
 1300 
 
 194 
 
 1864 
 
 237 
 
 .8730 
 
 .1270 
 
 006050 
 
 .000410 
 
 60 
 
 1558 
 
 234 
 
 1627 
 
 207 
 
 .8730 
 
 .1270 
 
 007773 
 
 .000527 
 
 61 
 
 1890 
 
 283 
 
 1420 
 
 180 
 
 .8730 
 
 .1270 
 
 009599 
 
 .000651 
 
 62 
 
 2287 
 
 342 
 
 1240 
 
 158 
 
 .8729 
 
 .1271 
 
 011894 
 
 .000806 
 
 63 
 
 2760 
 
 414 
 
 1082 
 
 137 
 
 .8729 
 
 .1271 
 
 015096 
 
 .001024 
 
 64 
 
 3345 
 
 505 
 
 945 
 
 120 
 
 .8728 
 
 .1272 
 
 019730 
 
 .001340 
 
 65 
 
 4094 
 
 622 
 
 825 
 
 105 
 
 .8728 
 
 .1272 
 
 026238 
 
 .001782 
 
353 
 
 TABLE XXXII Continued. 
 FRATERNAL DEATH AND DISABILITY EXPERIENCE Continued. 
 
 Age. 
 
 il! 
 
 dS 
 
 iL 
 
 dL 
 
 Px 
 
 qL 
 
 P a x 
 
 ai 
 
 q x 
 
 66 
 
 5063 
 
 773 
 
 720 
 
 92 
 
 .8727 
 
 .1273 
 
 .035255 
 
 .002395 
 
 67 
 
 6313 
 
 964 
 
 628 
 
 80 
 
 .8727 
 
 .1273 
 
 .047223 
 
 .003207 
 
 68 
 
 7884 
 
 1202 
 
 548 
 
 70 
 
 .8726 
 
 .1274 
 
 .062507 
 
 .004253 
 
 69 
 
 9779 
 
 1472 
 
 478 
 
 61 
 
 .8725 
 
 .1275 
 
 .078593 
 
 .005347 
 
 70 
 
 11838 
 
 1777 
 
 417 
 
 53 
 
 .8724 
 
 .1276 
 
 . 104227 
 
 .007103 
 
 71 
 
 14232 
 
 2108 
 
 364 
 
 46 
 
 .8722 
 
 .1278 
 
 . 130455 
 
 .008905 
 
 72 
 
 16643 
 
 2429 
 
 318 
 
 41 
 
 .8719 
 
 .1281 
 
 .158867 
 
 .010863 
 
 73 
 
 18843 
 
 2710 
 
 277 
 
 36 
 
 .8715 
 
 .1285 
 
 . 188929 
 
 .012961 
 
 74 
 
 20623 
 
 2926 
 
 241 
 
 31 
 
 .8710 
 
 .1290 
 
 .219777 
 
 .015153 
 
 75 
 
 21820 
 
 3009 
 
 210 
 
 27 
 
 .8703 
 
 .1274 
 
 .251756 
 
 .017444 
 
 76 
 
 22414 
 
 3028 
 
 183 
 
 24 
 
 .8693 
 
 .1265 
 
 .291617 
 
 .020373 
 
 77 
 
 22437 
 
 3016 
 
 159 
 
 21 
 
 .8678 
 
 .1273 
 
 .347336 
 
 .024584 
 
 78 
 
 21924 
 
 2978 
 
 138 
 
 19 
 
 .8654 
 
 .1299 
 
 .444460 
 
 .032070 
 
 79 
 
 20961 
 
 2904 
 
 119 
 
 16 
 
 .8615 
 
 .1342 
 
 .575914 
 
 .042816 
 
 SO 
 
 19426 
 
 2799 
 
 103 
 
 15 
 
 .8555 
 
 .1412 
 
 .860776 
 
 .066984 
 
 81 
 
 17410 
 
 2659 
 
 
 
 
 
 
 
 82 
 
 14812 
 
 2485 
 
 
 
 
 
 
 
 83 
 
 12327 
 
 2280 
 
 
 
 
 
 
 
 84 
 
 10047 
 
 2050 
 
 
 
 
 
 
 
 85 
 
 7997 
 
 1800 
 
 
 
 
 
 
 
 86 
 
 6197 
 
 1539 
 
 
 
 
 
 
 
 87 
 
 4658 
 
 1277 
 
 
 
 
 
 
 
 88 
 
 3381 
 
 1023 
 
 
 
 
 
 
 
 89 
 
 2358 
 
 788 
 
 
 
 
 
 
 
 90 
 
 1570 
 
 579 
 
 
 
 
 
 
 
 91 
 
 991 
 
 404 
 
 
 
 
 
 
 
 92 
 
 587 
 
 264 
 
 
 
 
 
 
 
 93 
 
 323 
 
 161 
 
 
 
 
 
 
 
 94 
 
 162 
 
 89 
 
 
 
 
 
 
 
 95 
 
 73 
 
 44 
 
 
 
 
 
 
 
 96 
 
 29 
 
 19 
 
 
 
 
 
 
 
 97 
 
 10 
 
 7 
 
 
 
 
 
 
 
 98 
 
 3 
 
 3 
 
 
 
 
 
 
 
TABLE XXXIII. 
 FRATERNAL DEATH AND DISABILITY EXPERIENCE AND FOUR PER CENT. 
 
 Age. 
 
 r x 
 
 r*V) 
 
 C L 
 
 ML 
 
 'C, 
 
 5 M X 
 
 20 
 
 .00012 
 
 12 
 
 384590.00 
 
 886491.89 
 
 5.2660 
 
 3692.6142 
 
 21 
 
 .00013 
 
 13 
 
 192560.00 
 
 501901.89 
 
 5.4854 
 
 3687.3482 
 
 22 
 
 .00015 
 
 15 
 
 105730.00 
 
 309341.89 
 
 6.0858 
 
 3681.8628 
 
 23 
 
 .00018 
 
 18 
 
 62427.00 
 
 203611.89 
 
 7.0221 
 
 3675.7770 
 
 24 
 
 .00021 
 
 21 
 
 39178.00 
 
 141184.89 
 
 7.8775 
 
 3668.7549 
 
 25 
 
 .00025 
 
 24 
 
 25908.00 
 
 102006.89 
 
 8.6565 
 
 3660.8774 
 
 26 
 
 .00029 
 
 28 
 
 17920.00 
 
 76098.89 
 
 9.7109 
 
 3652.2209 
 
 27 
 
 .00032 
 
 31 
 
 12872.00 
 
 58178.89 
 
 10.3380 
 
 3642.5100 
 
 28 
 
 .00034 
 
 33 
 
 9539.40 
 
 45306.89 
 
 10.5810 
 
 3632.1720 
 
 29 
 
 .00035 
 
 33 
 
 7245.50 
 
 35767.49 
 
 10.1740 
 
 3621.5910 
 
 30 
 
 .00037 
 
 35 
 
 5598.10 
 
 28521.99 
 
 10.3760 
 
 3611.4170 
 
 31 
 
 .00038 
 
 36 
 
 4383.00 
 
 22923.89 
 
 10.2620 
 
 3601.0410 
 
 32 
 
 .00039 
 
 37 
 
 3463.70 
 
 18540.89 
 
 10.1410 
 
 3590.7790 
 
 33 
 
 .00041 
 
 38 
 
 2741.80 
 
 15077.19 
 
 10.0150 
 
 3580.6380 
 
 34 
 
 .00044 
 
 41 
 
 2202.40 
 
 12335.39 
 
 10.3900 
 
 3570.6230 
 
 35 
 
 .00048 
 
 44 
 
 1780.00 
 
 10132.99 
 
 10.7210 
 
 3560.2330 
 
 36 
 
 .00052 
 
 48 
 
 1446.10 
 
 8352.99 
 
 11.2460 
 
 3549.5120 
 
 37 
 
 .00056 
 
 51 
 
 1179.80 
 
 6906.89 
 
 11.4890 
 
 3538.2660 
 
 38 
 
 .00061 
 
 55 
 
 967.21 
 
 5727.09 
 
 11.9140 
 
 3526.7770 
 
 39 
 
 .00065 
 
 58 
 
 796.09 
 
 4759.88 
 
 12.0810 
 
 3514.8630 
 
 40 
 
 .00069 
 
 61 
 
 657.31 
 
 3963.79 
 
 12.2170 
 
 3502.7820 
 
 41 
 
 .00073 
 
 64 
 
 544.41 
 
 3306.48 
 
 12.3250 
 
 3490.5650 
 
 42 
 
 .00077 
 
 67 
 
 452.00 
 
 2762.07 
 
 12.4060 
 
 3478.2400 
 
 43 
 
 .00082 
 
 71 
 
 376.21 
 
 2310.07 
 
 12.6410 
 
 3465.8340 
 
 44 
 
 .00086 
 
 74 
 
 313.81 
 
 1933.86 
 
 12.6090 
 
 3453 . 1930 
 
 45 
 
 .00090 
 
 77 
 
 261.90 
 
 1620.05 
 
 12.6750 
 
 3440.5240 
 
 46 
 
 .00094 
 
 80 
 
 219.06 
 
 1358.15 
 
 12.6630 
 
 3427.8490 
 
 47 
 
 .00099 
 
 83 
 
 183.40 
 
 1139.09 
 
 1 2 . 6320 
 
 3415.1860 
 
 48 
 
 .00105 
 
 87 
 
 153.66 
 
 955.69 
 
 12.7320 
 
 3402.5540 
 
 49 
 
 .00113 
 
 93 
 
 129.03 
 
 802.03 
 
 13.0860 
 
 3389.8220 
 
 50 
 
 .00124 
 
 101 
 
 108.24 
 
 673.00 
 
 13.6650 
 
 3376.7360 
 
 51 
 
 .00139 
 
 112 
 
 90.94 
 
 564.76 
 
 14.5710 
 
 3363.0710 
 
 52 
 
 .00157 
 
 12,4 
 
 76.31 
 
 473.82 
 
 15.5110 
 
 3348.5000 
 
 53 
 
 .00179 
 
 140 
 
 64.23 
 
 397.51 
 
 16.8400 
 
 3332.9890 
 
 54 
 
 .00210 
 
 162 
 
 53.90 
 
 333.28 
 
 18.7370 
 
 3316.1490 
 
 55 
 
 .00255 
 
 193 
 
 45 . 15 
 
 279.38 
 
 21.4630 
 
 3297.4120 
 
 66 
 
 .00321 
 
 238 
 
 38.07 
 
 234.23 
 
 25.4500 
 
 3275.9490 
 
 57 
 
 .00407 
 
 298 
 
 31.87 
 
 196.16 
 
 30.6400 
 
 3250.4990 
 
 58 
 
 .00504 
 
 361 
 
 26.79 
 
 164.29 
 
 35.6890 
 
 3219.8590 
 
 5'.) 
 
 .00646 
 
 452 
 
 22.53 
 
 137.50 
 
 42.9670 
 
 3184.1700 
 
 60 
 
 .00830 
 
 566 
 
 18.92 
 
 114.97 
 
 51.7360 
 
 3141.2030 
 
 61 
 
 .01025 
 
 680 
 
 15.82 
 
 96.05 
 
 59.7640 
 
 3089.4670 
 
 62 
 
 .01270 
 
 815 
 
 13.35 
 
 80.23 
 
 68.8750 
 
 3029.7030 
 
 63 
 
 .01612 
 
 999 
 
 11.13 
 
 66.88 
 
 81.1780 
 
 2960.8280 
 
 64 
 
 .02107 
 
 1254 
 
 9.38 
 
 55.75 
 
 97.9780 
 
 2S79 . 6500 
 
 65 
 
 .02802 
 
 1591 
 
 7.89 
 
 46.37 
 
 119.5300 
 
 27S 1.6720 
 
 66 
 
 .03765 
 
 2023 
 
 6.65 
 
 38.48 
 
 146.1400 
 
 2662.1420 
 
 67 
 
 .05043 
 
 2535 
 
 5.56 
 
 31.83 
 
 176.0800 
 
 2516.0020 
 
 68 
 
 .06676 
 
 3097 
 
 4.68 
 
 26.27 
 
 206.8400 
 
 2339.9220 
 
 69 
 
 .08394 
 
 3531 
 
 3.92 
 
 21.59 
 
 226.7600 
 
 2133.0820 
 
 70 
 
 .11133 
 
 4171 
 
 3.27 
 
 17.67 
 
 257.5600 
 
 1906.3220 
 
 71 
 
 . 13936 
 
 4519 
 
 2.73 
 
 14.40 
 
 268.3100 
 
 1648.7620 
 
 72 
 
 .16973 
 
 4629 
 
 2.34 
 
 11.67 
 
 264.2800 
 
 1380.4520 
 
 73 
 
 .20189 
 
 4490 
 
 1.98 
 
 9.33 
 
 246.4800 
 
 1116.1720 
 
 74 
 
 .23493 
 
 4123 
 
 1.64 
 
 7.35 
 
 217.6300 
 
 869.6920 
 
 75 
 
 .26920 
 
 3603 
 
 1.37 
 
 5.71 
 
 182.8600 
 
 052.0620 
 
 76 
 
 .31199 
 
 3069 
 
 1.17 
 
 4.34 
 
 149.7700 
 
 469.2020 
 
 77 
 
 .37192 
 
 2555 
 
 .99 
 
 3.17 
 
 119.8900 
 
 319.4320 
 
 78 
 
 .47653 
 
 2144 
 
 .86 
 
 2.18 
 
 96.7360 
 
 199.5420 
 
 79 
 
 .61873 
 
 1486 
 
 .69 
 
 1.32 
 
 64.4690 
 
 102.8060 
 
 80 
 
 .92776 
 
 919 
 
 .63 
 
 .63 
 
 38.3370 
 
 38.3370 
 
TABLE XXXIV. 
 FRATERNAL DEATH AND DISABILITY EXPERIENCE AND FOUR PER CENT. 
 
 Age. 
 
 D aa 
 
 N aa 
 
 DL 
 
 D x 
 
 N i 
 
 20 
 
 45638.00 
 
 915582.50 
 
 1000000.000 
 
 
 2950822 . 04 
 
 21 
 
 43660.00 
 
 869944.50 
 
 576930.000 
 
 3.94 
 
 1950822.04 
 
 22 
 
 41767.00 
 
 826284.50 
 
 362190.000 
 
 6.16 
 
 1373892.04 
 
 23 
 
 39953.00 
 
 784517.50 
 
 242530.000 
 
 9.83 
 
 1011702.04 
 
 24 
 
 38216.00 
 
 744564.50 
 
 170770.000 
 
 13.56 
 
 769172.04 
 
 25 
 
 36554.00 
 
 706348.50 
 
 125030.000 
 
 15.76 
 
 598402.04 
 
 26 
 
 34960.00 
 
 669794.50 
 
 94308.000 
 
 20.36 
 
 473372.04 
 
 27 
 
 33434.00 
 
 634834.50 
 
 72763.000 
 
 24.09 
 
 379064.04 
 
 28 
 
 31973.00 
 
 601400.50 
 
 57091.000 
 
 27.16 
 
 306301.04 
 
 29 
 
 30572.00 
 
 569427.50 
 
 45354.000 
 
 31.61 
 
 249210.04 
 
 30 
 
 29231.00 
 
 538855.50 
 
 36366.000 
 
 34.61 
 
 203856.04 
 
 31 
 
 27947.00 
 
 509624.50 
 
 29370.000 
 
 36.77 
 
 167490.04 
 
 32 
 
 26715.00 
 
 481677.50 
 
 23857.000 
 
 40.54 
 
 138120.04 
 
 33 
 
 25536.00 
 
 454962.50 
 
 19476.000 
 
 42.47 
 
 114263.04 
 
 34 
 
 24407.00 
 
 429426.50 
 
 15985.000 
 
 43.25 
 
 94787.04 
 
 35 
 
 23323.00 
 
 405019.50 
 
 13167.000 
 
 45.71 
 
 78802.04 
 
 36 
 
 22284.00 
 
 381696.50 
 
 10881.000 
 
 47.75 
 
 65635.04 
 
 37 
 
 21288.00 
 
 359412.50 
 
 9016.700 
 
 49.41 
 
 54754.04 
 
 38 
 
 20332.00 
 
 338124.50 
 
 7489.800 
 
 51.60 
 
 45737.34 
 
 39 
 
 19414.00 
 
 317792.50 
 
 6234.600 
 
 54.34 
 
 38247.54 
 
 40 
 
 18534.00 
 
 298378.50 
 
 5198.800 
 
 56.01 
 
 32012.94 
 
 41 
 
 17688.00 
 
 279844.50 
 
 4341.400 
 
 58.83 
 
 26814.14 
 
 42 
 
 16876.00 
 
 262156.50 
 
 3630.100 
 
 61.16 
 
 22472.74 
 
 43 
 
 16097.00 
 
 245280.50 
 
 3038.500 
 
 62.26 
 
 18842.64 
 
 44 
 
 15348.00 
 
 229183.50 
 
 2545.300 
 
 63.69 
 
 15804.14 
 
 45 
 
 14628.00 
 
 213835.50 
 
 2133.700 
 
 65.27 
 
 13258.84 
 
 46 
 
 13936.00 
 
 199207.50 
 
 1789.700 
 
 66.88 
 
 11125.14 
 
 47 
 
 13271.00 
 
 185271.50 
 
 1501.800 
 
 68.26 
 
 9335.44 
 
 48 
 
 12632.00 
 
 172000.50 
 
 1260.600 
 
 69.11 
 
 7833.64 
 
 49 
 
 12018.00 
 
 159368.50 
 
 1058.400 
 
 69.19 
 
 6573.04 
 
 50 
 
 11426.00 
 
 147350.50 
 
 888.750 
 
 70.50 
 
 5514.64 
 
 51 
 
 10856.00 
 
 135924.50 
 
 746.290 
 
 71.82 
 
 4625.89 
 
 52 
 
 10306.00 
 
 125068.50 
 
 626.670 
 
 73.90 
 
 3879.60 
 
 53 
 
 9775.10 
 
 114762.50 
 
 526.210 
 
 76.85 
 
 3252.93 
 
 54 
 
 9262.50 
 
 104987.40 
 
 441.810 
 
 80.26 
 
 2726.72 
 
 55 
 
 8766.80 
 
 95724.90 
 
 370.950 
 
 84.78 
 
 2284.91 
 
 56 
 
 8285.90 
 
 86958.10 
 
 311.450 
 
 91.56 
 
 1913.96 
 
 57 
 
 7818.80 
 
 78672.20 
 
 261.470 
 
 100.65 
 
 1602.51 
 
 58 
 
 7363.80 
 
 70853.40 
 
 219.510 
 
 113.08 
 
 1341.04 
 
 59 
 
 6920.50 
 
 63489.60 
 
 184.260 
 
 128.62 
 
 1121.53 
 
 60 
 
 6487.20 
 
 56569 . 10 
 
 154.670 
 
 148.11 
 
 937.27 
 
 61 
 
 6062.20 
 
 50081.90 
 
 129.830 
 
 172.76 
 
 782.60 
 
 62 
 
 5646.40 
 
 44019.70 
 
 108.980 
 
 201.01 
 
 652.77 
 
 63 
 
 5239.00 
 
 38373.30 
 
 91.470 
 
 233.25 
 
 543.79 
 
 64 
 
 4837.30 
 
 33134.30 
 
 76.773 
 
 271.72 
 
 452.32 
 
 65 
 
 4437.50 
 
 28297.00 
 
 64.429 
 
 319.92 
 
 375.55 
 
 66 
 
 4036.70 
 
 23S59.50 
 
 54.070 
 
 380.43 
 
 311.12 
 
 67 
 
 3631.90 
 
 19822.80 
 
 45.373 
 
 455.98 
 
 257.05 
 
 68 
 
 3222.00 
 
 16190.90 
 
 38.074 
 
 547.65 
 
 211.68 
 
 69 
 
 2809.20 
 
 12968.90 
 
 31 .946 
 
 653 . 17 
 
 173.61 
 
 70 
 
 2405.90 
 
 10159.70 
 
 26.802 
 
 760.24 
 
 141.66 
 
 71 
 
 2002.20 
 
 7753.80 
 
 22.482 
 
 878.84 
 
 114.86 
 
 72 
 
 1619.20 
 
 5751.60 
 
 18.855 
 
 988.11 
 
 92.38 
 
 73 
 
 1269.60 
 
 4132.40 
 
 15.808 
 
 1075.75 
 
 73.52 
 
 74 
 
 963.34 
 
 2862.80 
 
 13.246 
 
 1132.11 
 
 57.71 
 
 75 
 
 706.40 
 
 IS! (9.46 
 
 11.094 
 
 1151.74 
 
 44.46 
 
 76 
 
 499.16 
 
 1193.06 
 
 9.284 
 
 1137.60 
 
 33.37 
 
 77 
 
 335.31 
 
 693.90 
 
 7.760 
 
 1094MO 
 
 24.09 
 
 78 
 
 207.22 
 
 358.59 
 
 6.475 
 
 1028.80 
 
 16.33 
 
 79 
 
 108.38 
 
 151.37 
 
 5.388 
 
 945.76 
 
 9.85 
 
 80 
 
 42.99 
 
 42.99 
 
 4.463 
 
 842.77 
 
 4.46 
 
INDEX 
 
 Actuarial Principles, Application of 147 
 
 Adequate Rates 253 
 
 Adverse Selection 247 
 
 Age and Cost 160 
 
 Algebraic Notation _ 193-217 
 
 Annuities 193 
 
 Disability 214 
 
 Premiums 193 
 
 American Notation 205 
 
 Amortization of Bonds 250 
 
 Annual Reports 276 -284 
 
 Annuity, Kinds of 250 
 
 Assessments-as-needed Insurance 156 
 
 Assessment Associations 91 -96 
 
 Assets 246 
 
 Associated Fraternities of America ___ 62-66 
 
 Benefit Side to Insurance Contract 162 
 
 Benefits, Varying 193,201 
 
 British Notation 205 
 
 Calculations by Commutation Columns 197 
 
 Certificate, Kinds of 219 
 
 Child Insurance 97 
 
 Commutation Columns, How to Use 216 
 
 Commutation Tables, Explanation of 150 
 
 Constitutions, Difficulty of Interpreting 303 
 
 Contracts, Variety of 106 
 
 Contribution and Cost 159 
 
 Contribution Side to Insurance Contract 162 
 
 Contributions, Varying 196-202 
 
 Cooperation 104,164 
 
 Death Rate 157 
 
 Definitions 217-275 
 
 Actual Mortality 247 
 
 Adequate Rates 253 
 
 Adverse Selection 247 
 
 Amortization of Bonds 250 
 
 Annuitant 250 
 
 Annuity, Kinds of 250 
 
 Assets 246 
 
 Certificate and Policy, Kinds of . 219 
 
 Comparison of Reserves 267 
 
 Concomitants of Change 269 
 
 Cost of Insurance 232 
 
 Development of u and k 234 
 
 Disability, Permanent and Total... 274 
 
 Discount and Present Value 247 
 
 Division of Premium Into "Expense," "Mortality" and "Reserve" Elements 236 
 
357 
 
 Equity of Surrender Values 235 
 
 Expected Mortality 247 
 
 Expiry__ 239 
 
 Group Insurance 248 
 
 Health and Accident Insurance 273 
 
 Incontestable 239 
 
 Indemnity Against Loss 219 
 
 Individual Reserve 234 
 
 Lapses 239 
 
 Legal Reserve 251 
 
 Liabilities 247 
 
 Life Expectancy 23 1 
 
 Loading 224 
 
 Loans 238 
 
 Maturity 239 
 
 Methods of Insurance 258 
 
 Mortality Rates 251 
 
 Mortality Tables (See Contents) 220 
 
 Mutual, Mixed and Stock Companies 247 
 
 Natural Premiums 224 , 259 
 
 Natural Premium Plan of Insurance 295 
 
 Net Premiums 222 
 
 Net Value 237 
 
 Non-Forfeitable 239 
 
 Pensions 252 
 
 Policy and Certificate, Kinds of 219 
 
 Present Value and Discount 247 
 
 Prospective Valuation 243 
 
 Readjustments 274 
 
 Renewal Premium 247 
 
 Reserve 224 
 
 Reserve, Initial, Mean and Terminal 245 
 
 Reserve Values 245 
 
 Retrospective Valuation 244 
 
 Stock, Mixed and Mutual Companies 247 
 
 Surplus 246 
 
 Surrender Value 237 
 
 Valuation 240 
 
 Solvency, A Test for When 240 
 
 Solvency, Not a Test for Fraternal Society 241 
 
 Diagrams 148-9,223,228,230,266,268,278 
 
 Disability, Permanent and Total 274 
 
 Disability Symbols 214 
 
 Distribution of Cost . 158 
 
 Equivalent Promises 155 
 
 Exhibits 1167, 11171, III 180, IV 181, V 182, VI -183 
 
 Expenses 119 
 
 Expiry 239 
 
 Expulsion of Members 301 
 
 Flexible Premium System 93 
 
 Fraternal and Life Company Contract Compared 154 
 
358 
 
 Fraternal Beneficiary Societies ^9-79 104-111 
 
 Associated Fraternities of America (;> 
 
 General Review of ]Q4 
 
 History of < j 
 
 National Fraternal Congress and Legislation 16-60 
 
 Statistics of 75 
 
 Fraternal Experience Tables 122 
 
 Fraternity, Strength of 253 
 
 Formulas to Memorize 204 
 
 Friendly Societies 1_9 
 
 History of 2 
 
 Legislation Concerning 3 
 
 Origin of 1 
 
 Report of Royal Commission 7 
 
 Group Insurance 2 -IX 
 
 Health and Accident Insurance 273 
 
 Incontestable 239 
 
 Increasing Cost of Insurance 161 
 
 Indemnity Against Loss_ , 219 
 
 Industrial Companie , History of 96 
 
 Insurance Contract 152-161 
 
 Age and Cost 160 
 
 Assessment- as-needed 156 
 
 Benefit Side and Contribution Side 162 
 
 Contribution and Cost 1 59 
 
 Death Rate 157 
 
 Distribution of Cost 1 5s 
 
 Equivalent Promises 155 
 
 Fraternal and Life Company Compared 15 I 
 
 Inception of 19-} 
 
 Increasing Cost of Protection 161 
 
 Law of Mortality 157 
 
 Life Expectancy - 101 
 
 Method of Computing Rates ^ _ _ _ 156 , 1 C4 
 
 Natural Premiums 101 
 
 Possibility of Performance . 161 
 
 Insurance Cost -. 232 -237 
 
 Interest Earnings 303 
 
 Lapse Factor 177 -HH) 
 
 Feasibility of 184-190 
 
 Premium Computation Including 177 
 
 Lapses 177-190,239 
 
 Law of Mortality 157 
 
 Legal Reserve 25 1 
 
 Level Annual Premium 54,61,125,172-5,179 
 
 Computation of 175 
 
 Legislation 3,16-74,90,297-300 
 
 Liabilities 247 
 
 Life Expectancy 161,231 
 
 Life Insurance Companies SO -91 
 
 Fraternal Societies and Life Companies 80 
 
 History of __ 81 
 

 359 
 
 Legislative Investigation 90 
 
 Statistics of 90 
 
 Loading , 224 
 
 Loans 238 
 
 Maternity Benefits 300 
 
 Maturity 239 
 
 Methods of Insurance 258 
 
 Mobile Bill 66-74,297-300 
 
 Monthly Contributions ..208-209 
 
 Commutation Columns 208 
 
 Formula 209 
 
 Mortality, Actual and Expected 247 
 
 Mortality Rates (See Insurance Contract) 251 
 
 Mortality Tables (See Tables in Contents 122,220 
 
 A Fiction __209-210 
 
 Diagrams 148 
 
 Normal, Sub-Normal and Super-Normal... _ _223 -226 
 
 Mutual, Mixed and Stock Companies 247 
 
 National Fraternal Congress 16-60 
 
 Legislation and Proceedings of 16-60 
 
 Report on Table of Mortality 52 
 
 Natural Premiums 161,224,259 
 
 Natural Premium Plan of Insurance 259 
 
 Net Contributions to be Valued 303 
 
 Net Premiums 222 
 
 Net Value 237 
 
 New York Conference Bill 66-74,297-300 
 
 Non-Forfeitable 239 
 
 Observations on Present Industrial Regime 110 
 
 Open Assessment Associations 91-96 
 
 Flexible Premium System 93 
 
 History of 91 
 
 Statistics of 95 
 
 Operation Along Social and Fraternal Lines 108 
 
 fusions . 252 
 
 } olicy, Kinds of 219 
 
 'ossibility of Performing Insurance Contract 163 
 
 Vliminary Term Insurance 303 
 
 'remiums, Level and Increasing _._, 172-174,265-267 
 
 'rcmiums, Single and Annual _' 164-172,207-212 
 
 Vemiums, Renewal 247 
 
 'resent Value 247 
 
 'resent Value of Benefits 164 
 
 'resent Value of Contributions 169 
 
 Rates, Method of Computing 156, 164 
 
 Readjustments . 111,274 
 
 Relations Between D & C, N & M, and S & R 205 
 
 Reports to Insurance Commissioners 276 -284 
 
 Reserve 224 -245 
 
 Formulas for Computing 215 
 
 Individual 234 
 
 Initial, Mean and Terminal.. 245 
 
360 
 
 Legal _. 
 
 Methods of Determining Illustrated 
 
 Values 
 
 Risk, Accident, Death and Sickness 
 
 Statistics and Explanations for Valuation. 
 
 Stock, Mixed and Mutual Companies 
 
 Surplus 
 
 Surrender Value 
 
 Equity of 
 
 Similar Symbols 
 
 Symbols for Disability 
 
 Symbols for Premiums and Annuities 
 
 Tables (See Contents). 
 
 Valuation 
 
 Prospective 
 
 Retrospective 
 
 Test for Solvency When 
 
 Valuation Statistics and Explanations 
 
 Wives of Members, Benefits to 
 
CONTENTS. 
 
 Pages 
 
 FRIENDLY SOCIETIES 1-9 
 
 Origin, 1-2. History, 2-3. Legislation, 3-7. Report Royal Commission, 7-9. 
 
 FRATERNAL BENEFICIARY SOCIETIES 9-79, 104-111 
 
 Inequity of Original Plans, 12-16. History, 9-16. Legislation and Proceedings 
 National Fraternal Congress, 16-60. Major N. S. Boynton, 50-53. Report on 
 National Fraternal Congress Mortality Table, 53-58. Dr. Oronhyatekha, 60r-61 . 
 Associated Fraternities of America, 62-66, 74-75. Statistics, 75-79. General 
 Review, 104-111. 
 
 NEW YORK CONFERENCE BILL (being the Mobile Bill Amended) 66-74 
 
 LIFE INSURANCE COMPANIES 80-91 
 
 Fraternal Societies and Life Companies, 80-81. History, 81 L -89. Statistics, 90. 
 Legislative Investigation, 90-91. 
 
 OPEN ASSESSMENT ASSOCIATIONS 91-96 
 
 History, 91-93. Flexible Premium System, 93-95. Statistics, 95-96. 
 
 INDUSTRIAL COMPANIES 96-97 
 
 History, 96-97. 
 
 CHILD INSURANCE 97-1 04 
 
 GENERAL REVIEW 104-111 
 
 Cooperation, 104, 164. Father Upchurch, 105. Variety of Contracts, 106, 107. 
 Capacity of the Common People, 106. Ingenuity of Ignorance, 107. Actuarial 
 Predictions not Verified, 108. Operation, along Social and Fraternal Lines, 109. 
 In Harmony with Conditions, 110. The Present Industrial Regime and Observa- 
 tions, 110-111. 
 
 READJUSTMENTS 111-119 
 
 EXPENSES 119-121 
 
 FRATERNAL EXPERIENCE TABLES 122-146 
 
 APPLICATION OF ACTUARIAL PRINCIPLES 147 
 
 MORTALITY TABLES 122-146, 14-150 
 
 Diagrams, 148, 149. 
 
 EXPLANATION OF COMMUTATION COLUMNS 150-153 
 
 THE INSURANCE CONTRACT 1 53-164 
 
 Fraternal and Life Company Compared, 154-5. Equivalent Promises, 155-6. 
 Assessments-as-Needed, 156. Method of Computing Rates, 156, 164-177. Law 
 of Mortality, 157. Death Rate, 157-158. Distribution of Cost, 158-159. Con- 
 tribution and Cost, 159-160. Age and Cost, 160-161. Natural Premiums, 161. 
 Increasing Cost of Protection, 161. Life Expectancy, 161-162. Benefit Side 
 and Contribution Side, 162-3. Possibility of Performance, 163. The Insurance 
 Problem, 163-4. Cooperation, 164, 104. 
 
 PRESENT VALUE OF BENEFITS 164-169 
 
 PRESENT VALUE OF CONTRIBUTIONS 169-172 
 
 LEVEL ANNUAL PREMIUM 172-174 
 
 GENERAL STATEMENT 175 
 
 ANOTHER METHOD OF COMPUTATION 175-177 
 
 COMPUTATION INCLUDING LAPSE FACTOR 177-183 
 
 FEASIBILITY OF LAPSE FACTOR. _ __ 184-192 
 
Pages 
 
 THE INSURANCE LIABILITY 192-203 
 
 Death, Accident and Sickness Risk, 192-3. Symbols for Premiums and Annui- 
 ties, 193. Inception of the Contract, 194. Varying Benefits, 193-5, 201-3. 
 Varying Contributions, ,196-7, 202-3. 
 
 SHORT CUTS IN CALCULATIONS 197-206 
 
 Commutation Columns, 197-206. C x , 197-199. M x , 198. D x , 199. N x , 199- 
 200. P x = M x -rN x , 200. Benefit Side and Payment Side, 200-2. 20- Year ' 
 Term, 200. Pure Endowment, 200-1. Endowment Insurance, 201. Increas- 
 ing or Cumulative Insurance, 202. Varying Benefits, 193-5, 202-3. Varying 
 Contributions, 196-7, 202-3. R. and S. Columns, 203. Formulas to Memorize, 
 204. Relations Between D and C, N and M, and S and R, 205. American and 
 British Notation, 205-6. 
 
 PRACTICAL APPLICATION OF FORMULAS 206-217 
 
 Principle of Computations the same for Societies and Companies, 206. Assump- 
 tions Different, 206. Single and Annual Premiums for Whole Life, Term and 
 Limited Payment Insurance and for Whole Life, Deferred and Temporary An- 
 nuities, 207-209. Commutation Columns for Monthly Contribution Rates, 
 208-9. An Original but Uselessly Intricate Formula for N x 2 and M* 2 , 209-21 1. 
 Annual and Single Premiums for Limited Payment and Endowment Insurances 
 and Various Modifications of Insurances and Annuities, 211-212. A Novel 
 Plan, 212-213. Similar Symbols, 213. 
 
 DISABILITY SYMBOLS 214-215 
 
 FORMULAS FOR COMPUTING RESERVES 215-216 
 
 Three Methods Illustrated, 216. 
 
 USE OF COMMUTATION COLUMNS 216-217 
 
 Illustrated by Examples, 216-217. 
 
 AN ENGLISHMAN'S CONCLUSION 217-219 
 
 Teach Insurance in Public Schools. Lack of Information Amongst Teachers. 
 
 D EFINITIONS --21 7-275 
 
 Indemnity Against Loss, 219. Policy and Certificate, 219-220. Whole Life, 
 Limited Payment, Endowment, Term, Renewable Term, Convertible Term, 
 Instalment Policies or Certificates, 220. Mortality Tables, 220-222. Net Pre- 
 miums, 222-224. Loading, 224. The Natural Premium, 224, 259. The Re- 
 serve, 224-231. Life Expectancy, 231-232. Insurance Cost, 232-237. Devel- 
 opment of u and k, 234. Individual Reserve, 234-236. Equity of Surrender 
 Values, 235-236. Division of Premium into "Expense," "Mortality" and "Re- 
 serve" Elements, 236. Reserve a Fiction, 236-237. The Net Value, 237. 
 Surrender Value, 237-8. Loans, 238-9. Non-Forfeitable, 239. Incontestable, 
 239. Lapses, 239. Expiry, 239. Maturity, 239-240. Valuation, 240-245. 
 Difference for Life Companies and Fraternal Societies, 240-1. When a Test of 
 Solvency, 241-2. Can not be Made Test of Solvency for Fraternal Society, 
 241-3. Prospective Valuation, 243-4. When an Absurdity, 244. Results of, 
 244. Retrospective Valuation, 244-5. Reserve Values, 245-6. "Initial," 
 "Mean" and "Terminal" Reserves, 245-6. Surplus, 246. Assets, 246-7. Lia- 
 bilities, 247. Stock, Mixed and Mutual Life Companies, 247. Renewal Pre- 
 mium, 247. Present Value, 247. Actual Mortality, 247. Expected Mortality, 
 247. Adverse Selection, 247. Group Insurance, 248-9-250. Annuity, Annui- 
 tant, Life Annuity, Perpetual Annuity, Temporary Annuity, Contingent Annui- 
 ty, Deferred Annuity, Joint Annuity, Survivorship Annuity, 250. Amortiza- 
 tion of Bonds, 250-1 . Legal Reserve, 251. Mortality Rates, 251-2. Pensions, 
 252-3. Strength of Fraternity, 253. Adequate Rates, 253-4. Competing for 
 Adequacy, 254-5. Adequacy, Permanency, Attractiveness, 255-6-7. Legisla- 
 tion, 257-8. Insurance Methods, 258-9. The Natural Premium Plan, 259-265. 
 Level Premium Plan, 265-7. Comparison of Reserves, 267-8-9. The Last Man, 
 269. Concomitants of Change, 269-270. Misleading Statements, 270-1 . Crit- 
 icism, 271-2. The Home of Brotherhood, 272-3. Health and Accident Insur- 
 ance, 273-4. Permanent Total Disability, 274. Readjustments, 274-5. 
 
363 
 
 Pages 
 
 VALUATION STATISTICS AND EXPLANATIONS 276-300 
 
 Compilation of Statistics, 276-283. Three Methods of Valuation Allowed by 
 State Laws, 276-7. Form of Sheet for Protection, 276. Valuation Factors, 277. 
 The n U x and n K x Factors for Valuation under "Section 23b," 277. How to tran- 
 scribe Data with Forms of Sheets, 277, 8, 9, 280. How to Prepare Schedule VI 
 of the Annual Report, 280-1. Additional Forms 281-2. Suitable for Tabulat- 
 ing Deaths and Lapses, 282. Investigation of Mortality Experience, 282, 3. 
 Examples of Valuations by the "Net Reserve," "Tabular" and "Accumulation" 
 Methods, 283-296. "Net Reserve" Method, 283-4. "Tabular" Method, 284-5. 
 Prospective Valuations, 285-6. Retrospective Valuations, 286-7. Identical 
 Valuation Results under the three Methods with the same Tabular Contribution 
 Rates, otherwise Different Results, 286. Valuation Results differ from Actual 
 Results in Practical Operation, 287-8. Valuation on the "Accumulation Basis" 
 Advocated by Commissioner Ekern and Actuary Anderson compared with the 
 Treatment in this Book, 288-9. Retrospective Valuation compared with the 
 Prospective Method, 289-296. Retrospective Valuation necessary for Appor- 
 tionment of Funds, 289. "Net Reserve" Method applicable to Few Fraternal 
 Societies, 289. Its Meaning, 290. "Tabular" Method has many advantages, 
 290. "Accumulation" Method is Best Suited for the Majority of Societies and 
 Especially Valuable in Connection with the "Tabular," 290-6. Examples of 
 Prospective and Retrospective Valuations, 292-3-4. Section 23b, 297-300. 
 
 MATERNITY BENEFITS 300- 1 
 
 BENEFITS TO MEMBERS' WIVES 301-2 
 
 GENERAL COMMENTS 302-3 
 
 Right to expel members not considered in Valuations, 301. Difficulty to Inter- 
 pret Constitutions, 303. Interest Earning Secondary, 303. "Net" Contribu- 
 tions to be Valued, 303. Preliminary Term and Other Methods to Provide 
 Expense, 303. 
 
 TABLES 
 
 CONTRIBUTION RATES FOR CHILD INSURANCE 101-102 
 
 SOCIETIES ADMITTING MEN ONLY 122 
 
 SOCIETIES ADMITTING WOMEN ONLY 123 
 
 SOCIETIES ADMITTING MEN AND WOMEN 123 
 
 43 SOCIETIES COMBINED 123 
 
 CONTRIBUTION RATES FOR 43 SOCIETIES 125 
 
 MORTALITY TABLES OF 43 SOCIETIES 128-133 
 
 Attained Ages, Existing, Lapses, Deaths, Exposures, Unadjusted and Adjusted 
 Death Ratios, 128-9. Unadjusted and adjusted l x (living) d x (dying) p x prob- 
 ability of living, q x (probability of dying) 130-1. Test of Graduation, 132-3. 
 
 MORTALITY TABLES FOR MEN ONLY 134-137 
 
 Attained Ages, Exposures, Unadjusted and Adjusted Death Ratios, l x (living) d x 
 
 (dying), 134-5. Test of Graduation, 136-7. 
 MORTALITY TABLES FOR WOMEN ONLY 138-140 
 
 Attained Ages, Exposures, Unadjusted and Adjusted Death Ratios, l x (living) 
 
 d x (dying), 138-9. Test of Graduation, 140. 
 
 MORTALITY TABLES FOR MEN AND WOMEN 141-144 
 
 Attained Ages, Exposures, Unadjusted and Adjusted Death Ratios, l x (living), 
 d x (dying) 141-2. Test of Graduation, 143-4. 
 
 COMPARATTV V I ) E ATII RATIOS 1 45~1 46 
 
 Males. New English Experience, Scandinavian Experience, Australian Expe- 
 rience, Canada Life, National Fraternal Congress, American Experience, Forty- 
 three Societies. Females. Farr's, Scandinavian. 
 
364 
 
 Pages 
 
 COMPUTATION OF PREMIUMS 164-183 
 
 Exhibit 1. Insurance Years, Instalments of Claims, Present Value of $1.00, 
 Present Value of Claims (or Benefits), 167. Exhibit II. Beginning of Years, 
 Instalments of Contributions, Present Value of Contributions, 171. Test of Com- 
 puted Premiums, 176-7. Level Premiums with and without Lapse Factor, 179. 
 Computations with Lapse Factor, 179. Computations with Lapse Factor 
 Exhibit III Insurance years, Insurance at Beginning of Years, Probability of 
 Dying, Instalment of Claims, Lapse Ratios, Terminations by Lapse, 180. 
 Exhibit IV Present Value of Claims, 181. Exhibit V Insurance, Probability 
 of Living, Protection at Beginning of Years, Instalments of Contributions, 182. 
 Exhibit VI Present Value of Contributions, 183. 
 
 COMPUTATION OF RESERVES.... .216 
 
 ILLUSTRATING LEVEL AND INCREASING PREMIUMS 261-262 
 
 "NET RESERVE" VALUATION 283 
 
 "TABULAR" VALUATION 284-285 
 
 "ACCUMULATION" VALUATION 287 
 
 PROSPECTIVE AND RETROSPECTIVE VALUATION 293-294 
 
 FORM FOR CREDIT EXHIBIT 297 
 
 APPENDIX . 304-355 
 
 TABLE I. (N. F. C.) 304-305 
 
 Age (x) Number Living (l x ), Number dying (d x ), Probability of Dying (q x ). 
 Death Rate per 1000, Discounted Death-Rate (q x v x ), Life Expectancy (e x ) 
 Average Duration of Life. 
 
 TABLE II. (N. F. C. COM. COLS. & 4%) 306-307 
 
 Age (x) Present value of One due n Years Hence (v x ), D x , N x , S,, C x , M x , R x . 
 
 TABLE III. (N. F. C. DERIVED VALUES, 4%) 308-309 
 
 Life Annuity (a x ). Whole Life, Single Premium (A x ). Whole Life Annual 
 Premium (P x ) Term to Age 70, Annual Premium ( 1 7o_ x P x ) Annuity of $100 
 Beginning at age 70. Annual premium Temporary Annuity to Age 70. 
 
 TABLE IV. (N. F. C. AND 4% ANNUAL PREMIUMS) 310 
 
 Twenty Payment Life (^Px) Ten Payment Life (i P x ) Twenty Year Term 
 (UPx) Ten Year Term (|i P x ) Five Year Term (| 5 P X ). 
 
 TABLE V. (N. F. C. & 4% MONTHLY BASIS) 311 
 
 VrI2 , XT I 2 TV/rI2 , TT 12 
 
 N x , log. N x , M x , log. M x . 
 
 TABLE V a . (N. F. C. & 4% MOMENTLY BASIS) 312 
 
 Life Annuity (a x ), Whole Life Annual Premium (A x ), Whole Life Annual 
 Premium (P x ). 
 
 TABLE VI. (N. F. C. AND 3% COM. COLS.) 313-314 
 
 D x , Nx, S x , C x , M x , R x . 
 
 TABLE VII. (N. F. C. & 3% COM. COLS.) 315-316 
 
 D x , NX, Sx, C x , M x , R x . 
 
 TABLE VIII. (N. F. C. & 3|% AND 3%) 317 
 
 Life Annuity (a x ) Whole Life Single Premiums, (A x ) Whole Life Annual Premium 
 (Px). 
 
 TABLE IX. (N. F. C. & 3%, 3|% AND 4% MONTHLY PREMIUM RATES) 318 
 
 TABLE X. (N. F. C. AND 3%, 3%, AND 4%) 319 
 
 Valuation Columns, u and k. 
 
365 
 
 Pages 
 
 TABLE XI. (MAKEHEMIZED N. F. C.) 320-321 
 
 Number living (l x ) number dying (d x ) Probability of Living (p x ) Probability of 
 dying (q x ) Force of Mortality (A**). 
 
 TABLE XII. (MAKEHAMIZED N. F. C. & 4%) D x , N x 322 
 
 TABLE XIII. (MAKEHAMIZED N. F. C. & 4%) 323 
 
 Life Annuity (a x ) Sing. Prem. (A x ) An. Prem. (P x ). 
 TABLE XIV. (MAKEHAMIZED N. F. C. & 4%, Two LIVES) 324 
 
 Living (Ixx), Dying (d), log. 1^, log. d. Uniform Seniority. 
 TABLE XV. COM. COLS. FOR Two LIVES, 4% 326-327 
 
 D, N, Cxr, M. 
 TABLE XVI. DERIVED VALUES Two LIVES, 4% 328 
 
 Life Annuity (EXX) Sing. Prem. (Axx), Aiv Prem. (P**)- 
 
 TABLE XVII. N. F. C. WHOLE LIFE TERMINAL RESERVES, 4% 329-333 
 
 TABLE XVIII. AMERICAN EXPERIENCE TABLE OF MORTALITY 334 
 
 Living (l x ), Dying (dx), Prob. Dying (q x ) Life Expectancy (e x ). 
 
 TABLE XIX. COM. COLS. AT 4%, D x , N x , M x , RX 335-336 
 
 TABLE XX. AM. EXPERIENCE TABLE 4% VALUES 337-338 
 
 Life Annuity (a x ), W. L. Sing. Prem. (A x ), W. L. Annual Prem. (P x ), Valuation 
 
 Cols, u and k. 
 
 TABLE XXI. INTEREST TABLES, THREE PER CENT 339 
 
 Amt. of 1.00 at End of n Years (l+i) n . Present Value of 1.00 Due n Years 
 Hence (v n ). Amt. of 1.00 Per Annum at End of n Years (S^"| ). Present Value of 
 1.00 Per Annum for n Years (aJTj ) 
 
 TABLE XXII. INTEREST TABLES, 3|%, (SAME AS XXI) 340 
 
 TABLE XXIII. INTEREST TABLES, 4%, (SAME AS XXI) 341 
 
 TABLE XXIV DEATH AND DISABILITY (1902 FUNCTIONS) 342 
 
 N.^F. C. Prob. of Dying (q x ),Prob. of Disability (i x ) Prob. of Death or Disability 
 
 (q x = qx+ix). 
 TABLE XXV. COMBINED DEATH AND DISABILITY 343 
 
 Actives ( a l x ), Number Dying and Disabled at Age (x) out of a l x persons (d' x = a l x 
 
 a l x+1 ), Number Disabled ( i l x = a l x Xi x ). 
 
 TABLE XXVI. DEATH AND DISABILITY COM. COLS., 4% 144 
 
 a D x = v x *l x , *N X =Z*D X . 
 
 C x = v x+1 d' x , M X =2C X . 
 TABLE XXVII. COM. COLS. 4% MONTHLY 345 
 
 a D x 2 , a N x 2 , C' x 12 , M x 12 . 
 TABLE XXVIII. DISABILITY ONLY COM. COLS., 4% 346 
 
 'CK-V'^lx, S M X = S'C X . 
 
 TABLE XXIX. LOGARITHMS OF COM. COLS 347 
 
 TABLE XXX. DERIVED VALUES, 4%, MONTHLY 348-349 
 
 a 12 a . 12 3^12 , , . , 
 
 a x , A x , P x and logarithms. 
 
 TABLE XXXI. DEATH AND DISABILITY (1910 FUNCTIONS) 350-351 
 
 N. F. C. l x , d x , p x and q x . 
 
 Death and Disability if, d aa , p aa , qf . 
 
 TABLE XXXII. i", djj, l x , d x , p x , q x , p ai , q ai 352-352 
 
 TABLE XXXIII. r x , i x = r x l aa , C x , M x , J C X , J M X ... - 354 
 
 TABLE XXXIV. D aa , N aa , D x , D x , N x , N x 355 
 

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