; wis'sf ;v*r ww-^iP" O U% IS UUidows & Orphan: Ondowments m ISIDOR BUSH ><: preferable for a fraternal benevolent institution. The equality of contri- butions and of benefits at once distinguishes the truly benevolent institution from the mere in- surance business, and entitles fraternal en- dowment societies to the motto, "Alter alterius Onera Portate/' The NECESSARY LIMITATIONS are, that none be admitted to membership, (as far as the en- dowment is concerned), above the age of 45, none who are sick or subject to herditary dis- ease, and that none but the widow and orphans or designated members of the family, or purely 5. Appeal X, Hellbron et al, vs. D. G. L. No. 2. Re- port of the Executive Committee of C G. L , 1872-73. benevolent institutions, be allowed to receive the benefit. The principal adjustments are the great saving in expenses, the easy and perfect control of the management, the exclusion of any feature of profit; and the fact that all lapses enure to the benefit of the faithful adherents of the Order. These limitations and adjustments reduce the actual cost of insurance by more than the dif- ference in mortality between the ages of 25 and 45 years, which difference is not over $3. per $1000 annually. Practically, age alone is not a perfectly reliable guide, and unitorm rates for men of the same age are not always equitably just. From the uncertainty of individual life nobody can predict his own term ; hence it cannot be called unfair, else it would be just as unfair that a young member, who dies after paying but few years a low rate, receive the same benefit as an old member, who attains the age of 75 or more years, and pays a high rate. Moreover, there are two methods of grading mortality rates; one with rates which do not increase with age after entry, and another with rates which increase after age of entry. Both have, practically, some serious defects : If the rates are graded according to age and do not increase with advancing age after entry. 112 it must result, before long, in unequal taxation on members of the same age, but admitted at different ages, thereby creating dissatisfaction ; and the rates must be loaded so as to accumulate a reserve fund, no less in the aggregate amount than under a uni- form rate, but more complicated. If the rates in- crease after age of entr)'', they would be low at first, as no large reserve fund is required under this me- thod, but they advance with the increasing mortal- ity after the " turn of life," from age 60, so as to be- come oppressive, practically forcing old members to withdraw, losing the benefit intended for their widows and orphans. The following Table may serve to compare those methods. The figures {"columns i, 2 and 7) show the number of members of District No. i, I. O. B. B., at their respective ages on Jan. i, 1885 (ascertained from official reports of its Lodges) . hJ 1 ^ Ov Osv-n v-n ^ 4i- OJ K) ^ ^ 0\^ 0\^ o\^ ^ >^ ^ ^ '^ ON Onv^ or, 4:^ 4:^ u> 1 Ages. From to to 4^ 00 I-, -, HH to - - -tOiVj OU)4i-vO uri 00 i^ On OOVO On O No, of Members at the ^: respective ages. 1 <^U> to "-H w HH 4^ 4^ '^ w b vb bo Percent, of ^ mortality. 00 -*-- -'-H to 00 00 ti 00 00 ONV^ ON 00 No. of deaths ac. ^k to ex p. mor'ty. 1 0^4^4^VT to OvO .00"^ Annual as'ments -^ incr. with age. to 00 to 00^ ^ poccps^ p\cc ^ 00 "to "hh '0 on vb On b "^ Ov-n to OnOOOn04^ 00000000000 Amount realized from these Assessments at Ct therespect.ages. VO to h-i w 00 *^ 00 Wn OJ on ON Ck> un*vj M4^ No. of Members from 21-50, others grouped *^ as before. 1 4^ -1^ 00 v>i =^ Annual Assess- ^ ments not in- ON lo HH _, ^H 00^ -" OOVO -^ 4^ 00 -to l."^ ;^ ^ en to ONVjri "^ 000 ooto creasing up to age of 50, and ^ am't realized fr, such assessm'ts. 1 00 00 00 00 00 00 ^^ Uniform rate Ki not increasing. C On ON 4^ H t-H to ^ to V-nOJ VO W oooovb on'mh vb ^ VO to 4^ to en 4^ On ON to Amount realized Ki therefrom. 1*** to 4^ to - iM en ^J to 00 ONen VO ^J ..^ OOOOenOOOto^^ At increasing rates. - rt 3 to ^^^^^^^g^g^^ At uniPm non-inc's'g rates. 114 A careful study of these figures will convey more information to thoughtful readers than many pages of arguments could give. Having considered the question left unanswered in the minority report, and shown that the method pursued in our Endowment system is not as defective nor as erroneous as it appears^ if judged from the standpoint of theory; that, on the contrary, as a practical method, properly adjusted and based on a SUFFICIENT uniform contribution, it is preferable for fraternal organizations ; let us now return to that in- teresting report of one (Jan., 1880). It proceeds thus : '^ The absolute falsity of the proposition that the average age of the members will decrease con- siderably in years to come owing to the addition of a new and presumably you?iger element into the Order, is demonstrated by the following example : Assuming our membership in District No. i to be 9,000 at an average age of 40, it is evident that next year the average age will be 41^ or, in other words, the entire body will be collectively 9,000 years older. To keep the average age at that figure (not to reduce it, as asserted above) it would require an influx of not less than 900 members whose aver- age age must not exceed 30 years; and each succeed- ing year, instead of alleviating the evil, would only 1*5 heighten it. Statistics show that our gain in mem- bership does not and never will keep pace with what is required to maintain the average age."^ 6. The following table, showing the increase in mem- bership and mortality, in District No. i, from the Statistical Reports of its G. L. for the years 1874. to 1885 furnishes mathematical proof that the average age must have increase ed also, notwithstandmg the large addition of a new and young element. This calculation assumes the average age of the members in 1874 at 40, (it was then 40.66 in District No. 2,); the average age of all deceased members at 50, and that of the new additional members at 30 years only ; and yet, under these most favorable assumptions, their present average age must be 45 years. Year Date. Jan. I. g Q Addition of NewM'bers. Increase in Membership. It I 1874 6568 40.00 39 0.6 343 304 4.6 2 1875 6872 40.40 58 0.9 508 450 6.5 3 1876 7322 40.53 55 0.8 317 262 3.6 4 1877 75S4 41.00 5^ 0.7 570 518 6.8 5 1878 8102 41.10 77 0.9 470 393 4.8 6 1879 8495 4T-39 S9 I.O 317 228 ^7 7 1880 8723 41.72 85 I 162 11 0.9 8 1881 8800 42.4^ 90 1.0 236 146 1.7 9 1882 8946 43.00 85 0.9 250 165 1.8 10 1883 9111 43-54 106 1.2 247 141 1-5 II 1884 9252 44.09 100 I.I 91 dec. 9 0.0 12 1885 9243 44.86 ~ 1 ^* The assertion that as long as we keep our av- erage age at 40, the rate of mortaUty will not exceed I per cent, is not combatted ; but having demonstra- ted that it is physically impossible to keep our average age so low, it very naturally follows that our mortality must yearly increase and if we desire to perpetuate the 'Endowment Fund/ we must make provision for that contingency, so that all may equally receive the benefit of the same, whether we be cut down in the prime of Hfe or may reach the age of three score and ten. We cannot continue as we have done ; we cannot assume to pay out to the heirs of our members more than we receive, without drifting into bankruptcy. How is the deficiency to be supplied ? It is very simple to say, from the future accession of new members ; but that method will come to a speedy end, as the history of institu- tions based on this principle will show In con- clusion, if the statement made, that our death rate will never exceed i per cent, be true, it would re- quire just 100 years before the last member (even if we did not get another member,) would have died. "7 7. The statement that, (did we not get another member) it would require 100 years before the last of 9000 members would die, should our death rate never exceed I per cent is 117 The said minority report further expresses it as his opinion that: ^'We must either be prepared, as the increase m mortaUty comes, to pay the onerous increasing tax required, or we must make now some provision for the future." In further explanation the report quotes from the author of this Study, and arrives at the following re- a fair illustration of the gross mistakes which even very intelligent men may commit in calculating the simplest problem of life insurance. As I per cent of 9000=90, and as 100x90=9000, this statement, at first sight, appears correct; but as the number surviving is annually reduced by i per cent, the number of deaths is also proportionately reduced, so that after 100 years over 3000 members would remain living, and after 220 years 1000 members would not yet have died ! At this rate it would take a century for the last one hundred men, and this at a death rate annually increasing in percentage from I per cent in the first to 50 per cent in the 99th year. In like manner the 90 deaths annually, as assumed in above statement, would not be a death rate of i per cent, except- ing in the first year; in the 51s t year, when but half the members, (4500) wouldbe left, this number of deaths would already be 2 per cent, and in the 99th year it would be 50 per cent of the remaining 180 members. While this error is of no practical moment, as nobody is expected to reach Methuselah's age, it shows how easily fallacies are taken for truths. ii8 suit: *^ The amount annually payable by every member of District No. i, should be not less than $i8, and anything less than that sum would result in providing for only a part and not for all of the members of the District." . . . . ** The issue which in- stigated this investigation, having been brought about by a large number of brethren who find the increasing taxes too onerous to bear no remedy like the above can be expected to be adopted; the only alternative that the undersigned can therefore recommend, would be the reduction of the Endow- ment from ^i,ooo to $500 ; and an annual assess- ment of ^9.00 per annum, payable quarterly, in ad- vance, and invested under the 'direction of the Grand Lodge, or any committee, in such a manner as to bear not less than 5 per cent, interest per an- num; and while the first decade, under an average mortality, would show a large surplus, subsequent years, with an increased death rate would show that our resources were but just sufficient to meet the legitimate demand made upon us .... I question whether the above proposition will meet with your approval ; but, if I have only succeeded in convinc- ing a handful of your worthy body of the correct- ness of my theory, I feel well repaid and will leave to * Time, Patience and Perseverence,* which 119 conquer all things, the ultimate adoption, perhaps in some modified form, of my views.'* The doubts of the said report of one, as to whether the proposition contained therein would meet with approval, were but too well founded. Our representatives probably thought "'Twere to consider too curiously," to consider so oda a proposition. After a few hours' debate, rich in words and poor in arguments, the ^'previous ques- tion "was ordered, and the following motion was adopted : " That inasmuch as it is not advisable at present to increase the taxation of the lodges, and that as the endowment law has worked successfully up to the the present, the same be continued for another year, and the three reports as submitted be laid on the ta- ble." A motion to increase the per capita tax for endowments from 13 to 15 cents, and an amend- ment to make it 14 cents, were both defeated. Were the members who signed the majority report allowed to reconsider their action to-day, most of them would sign and vote for that min- ority report of one ; aye, they themselves would now scarcely believe that tney signed as they did, were the record thereof not preserved in print. This is no reproach; it shows a growth in wis- dom. Fools only do not admit that they have erred and are ashamed to learn. Thus, the En- dowment remained as it was unchanged. Whether the brethren of District No. i were willing to adopt the views of the majority, or, as good American citizens, had agreed to abide by the legal decision of the majority -7- right or wrong, certain it is, that ** the storm subsided," peace and harmony were, for a time, restored. In January, 1881, the President's Message re- ferred to the Endowment in the following words: " Our death-rate during the past year has been about the same as that of the year previous, one death less being reported than heretofore ; it is therefore gratifying to perceive that although our average is constantly advancing in age, we are equally fortunate in maintaining our equili- brium; the per capita dues therefore can be safely (i) retained at the present rate for the coming year'' The committee on Widows and Orphans Re- serve Fund of District No. i, also reported : " We find that the present dues of 13 cents leave a fair surplus, being at the same time not burdensome upon our members and, by degrees, augmenting our Reserve Fund to safe propor- tions, we recommend that the same remain for the next year as the pro rata rate." As early as January, 1882, however, the Pre- sident mentioned, in his message, that the En- dowment Laws caused animated discussion among our constituents, and urged the import- ance of a small increase in the per capita dues, in order that this prominent and interesting feature (the Endowment) might be perpetuated. He further suggested " that a special committee be appointed, to report, a year hence, their find- ings as to our future wants in this direction, based upon unbiassed opinions, and with ample time for reflection, such as is not granted us when in convention assembled." The committee on that President's Message justly praised this document as one of vast re- search and lucid reasoning, and reported : " In respect to the Endowment, we do not deem it expedient at present to increase the per capita assessment, but heartily concur with our brother president, and perceive the necessity of the ap- pointment of a committee as suggested by him, to secure the stability of our Endowment and our future wants in that direction." This recommendation was adopted and the committee appointed. Another year had elapsed, another year added to the age of our members. The Grand Lodge had re-assembled ; and on this occasion the spe- cial committee on Endowment presented a unan- imous report. The president in his message to that convention, on January 28th, 1883, referred to this special committee as "composed of breth- ren of experience and judgment, who had doubtless digested, and would present, a plan worthy of proper consideration.^ The report correctly represents the views gen- erally entertained respecting the Endowment Fund, and expresses the hope that " the most cursory review of the statistics presented will demonstrate to the least expert mathematician, that a grievous error has been committed by those who were the sponsors for the present I. The great length of this Report, filling over nine pages of the printed proceedings, and the fact that it was afterwards printed for distribution among all the members of the District, will necessitate merely a short synopsis of the same. 123 plan Any ordinary arithmetician could have shown readily and clearly what number of young men would be necessary to be added annually to justify the calculation based on a stationary average age or on retarding its ad- vance to such a degree that it would hardly be fractional." The report defines the position of this fund, in its relation to those who contribute towards it, thus: *' There are members who scout the idea of likening the Endowment Fund to an insurance. They set forth that the Order B*nai B*rith existed before the endowment feature was introduced ; that the fund is simply one of the benevolent objects of the institution, and should not be based on those mathematical principles which obtain in ordinary life insurance ; for^ say they, so long as the members are willing to pay the assessments levied upon them to this fund, so long will it exist as one of the benevo- lent features of the District. This aspect of the case would certainly be reasonable, if the endow ment laws were based upon the principle that * we pay as long as we can, {or are willing ta pay!) and no longer.* As the laws are framed at present, however, the District guaran- tees to the heirs of members, who have com- 124 plied with the provisions of the law, at their death, the payment of $1000, thus assum- ing a debt which it is in honor bound to pay. Let us, then, see whether we can fulfill the expectations of our members, if the present plan is continued." The report then invites the attention of the members to some statistics, which it 'presents in their simplest form ; * showing first, the increase in membership from 1870 to 1882. Here it may readily be seen that there is but little hope of retarding in any appreciative degree the steady advance of the average age of members. Then the statistics of the deaths of the same years are 2. The Committee says: **that the great difficulty has ever been that in demonstrating problems of this nature, recourse to figures is absolutely necessary ; usually, how- ever, the array is so great, that the ordinary mind stands aghast and fails to understand them. Many timely reforms, even in this Grand Lodge, have been wrecked by a display of this character." But while a display of figures is use- less and sometimes worse than useless in debate, it is no less indispensable to a thorough examination of such prob- lems. Those who wish to study the subject must be able to examine the figures, and those who cannot study these should be guided by trustworthy men who are able and willing to do so. 125 given, and a computation with these figures shows, that while the increase of membership from 1870 to 1882 was 94 per cent., the increase of deaths during the same period was 164 per cent.3 3. In the last decade, from 1874 to 1884, the increase in membership (from 6568 to 9252 members) was only 40 per cent., while the increase in the death-rate was over 170 per per cent, (from 39 deaths in 1874 to 106 deaths in 1884), reaching a mortality which, according to Am. Experience tables, would indicate the age of 47 years, while the z/^;- ageagewa."^ only 44 years. ** Average Age" furnishes no correct basis for accurately calculating the probable mortal- ity. For instance : 100 members aged 30 each, and 100 members aged 60 each, having together a total age of 9000 years, are said to have an average of age of 45 ; but while we find from the Table of Mortality that out of 200 men at the age of 45, (death rate 11 in 1000) 2.2 would die in one year, we find from the same reliable table that Out of 100 aged 30, the death-rate is 0.85 ** loo ** 60, " 2.67 Total, 3.52 Consequently out of these 200 members, having an average age of 45 years, the death-rate would be at least three^ and not only two members. This may sufficiently explain why the *^ Average Age'* fur- nishes no accurately correct basis for calculations of mor" tality ; practically, however, not even the most accurate cal- culation could be relied upon for a small number of meca* 126 "This exhibit must assuredly demolish the as- sumption so long and so unwarrantedly main- tained, that the " average age " of the members will always remain the same, and that no fear need be entertained from that source." " Having shown that our age is steadily ad- vancing, and, as a natural consequence, the number of deaths increasing," the committee had " no hesitation in saying that unless speedy measures were adopted, and of such a nature as would prove a remedy for the loss of the past failure would be inevitable. Earnestly and eloquently the report appeals to the Grand Lodge; to look this question serious- ly in the face; to consider it as men and brethren .seeking each other's good; to take wise counsel; there being yet time to effect a remedy. It al- ludes to former attempts ; but '' No sooner does bers ; and in a society whete no persons above the age of 45 years are admitted, the average age furnishes an approx- imately correct and very convenient basis for calculation. Thus, in the 9243 members of District No. i, at their pre- sent avetage age (45 years), the probable mortality would this year (1885) be, according to the Am. Experience Mortal- ity Table: 104 deaths; according to the Actuaries' Combined Experience Table, 1 1 1 deaths ; calculated separately for each age, the result would be: 128 deaths. (Seepage 115.) 127 the question arise than a sort of demagogical spirit springs up in its discussion an opposition based on utter ignorance of the interests in- volved a kind of catering to and currying of favor with the masses, takes the place of reason and duty, and thus legislation upon this question has ever resulted in the adoption of measures which were {seemed) expedient, instead of those which are just. The time has now arrived when such methods must be swept aside. Action, looking to the perpetuity of the Fund, must be taken immediately ; delay will prove disastrous.** The report offers further excellent arguments; also figures based on the average expectancy of life, (which for a healthy man of 41 is 27 years,) showing that at 5 per cent, interest an annual payment of $17.42 will in 27 years produce $1000 ;4 and after due consideration and calcula- tion the committee says: "that 18 cents per capita for each death will yield the annual con- tribution as shown above, and create a reserve 4. The committee overlooked, or else purposely ignored, the fact that out of the annual payments of the surviving members, the endowments of those who died from year to year had to be paid, leaving only a part of the members' contributions to accumulate at interest. 128 fund of adequate proportions." After some additional, highly valuable sugges- tions as to the admission of members, and other necessary safeguards, the committee report closes with the following words : ** we would ask you to study the questions herein discussed, to the end that the reforms advocated may be adopted, so that the system will be a real blessing, and secure for itself and our beloved institution en- during prosperity." Did the representatives study the question ? Did they mind the earnest appeal for the speedy , adoption of measures to remedy the loss of the past? Did they listen to the wise counsel of their own committee, "brethren of experience and judgment," as the President had designated them, and as every member of the Grand Lodge had to admit them to be ? Did this Grand Lodge take any action looking to the perpetuity of the fund ? Alas! far from it. The demagogical motion : " that the report be printed for distribution, that copies be sent to all the members of the District through the-respective lodges, and that the con- sideration of the report be deferred to the next annual session of th-e Grand Lodge," was adopted. 129 The opposition, so well characterized in said report, defeated every motion that the rate of assessment for the coming year be made 15, or even 14 cents; and the motion that it remain at 13 cents was adopted. Thus another year was lost ! The said able, elaborate and unanimous report of the committee had been printed and faithfully distributed to the various lodges of District No. I, by its indefatigable secretary; copies were freely sent to the members by their respective lodges ; and the eminent chairman of that com- mittee expressed the hope that " as our represen- tatives are mostly business men, possessed of sound, practical common sense, who from their daily walks of life knew better than any other class of men that figures can not lie, he had no reason to fear the final result. On the contrary, he was very hopeful that this *bone of conten- tion' would soon be disposed of, so far as Dis- trict No. I was concerned, in a manner as ration- al as it would be satisfactory.*' {Reports of the members of the Executive Committee, 1882-1883, page 10 ) Vain hope ! Men may be very good business men, may be of sound, practical common sense, I30 and yet understand nothing about Life Insur- ance.^2 'y\iq majority of business men have nei- ther time nor inclination to study such reports, 12. The Boston Globe has just published a pamphlet con- taining "Opinions of Eminent Men of the Country" on Life Insurance, letters and interviews, from which the follow- ing quotations are in point : ** I hive not made much of a study of Life Insurance.*' Senator Henry M. Teller, (who was Secretary of the In- terior under President Arthur, " I know very little about Life Insurance." Postmaster Pearson. ''I have not paid much attention to Life Insurance. Mayor Grace. "I don't know anything about it." W. H. Vanderbilt. "I have not considered the matter carefully." David Dudley Field. '*Like many other business men, I have never had time to thoroughly examine an institution in which I have confi- dence, and in which I carry several policies C A. Lori- mer, Chicago. '* I do not know that I given sufficient attention to the subject of Life Insurance to qualify me to give an opinion that would be worth anything" E.' H. Capen, President Taft's College. * ' If I had any wisdom on the life insurance question, you should certainly have it." Rev. M. J. Savage of Boston. " Life Insurance is a subject which has never received very careful attention from me." Bishop Wingfield of Cal. ** Upon this subject I really have no knowledge what- ever, though insured for $21,000." P. B. Plumb, U. S. Senator of Kansas. 131 much less the figures of mortality tables and their calculations ; they can not easily com- prehend how a tax which is all-sufficient for present wants, and besides that, yields an annual surplus, gradually increasing to several hundred thousand dollars, should need still more of an increase. The committee hoped to convince the repre- sentatives of the justice of its proposition by showing that in any sound Life Insurance Com- pany a man of the average age of our members would have to pay a much greater tax. But other fraternal organizations and assessment in- *' I have not given the matter of Life Insurance that at- tention." E. A. Peiry, Governor of Florida. * I have not given sufficient study to Life Insurance.*' Gen. Slocum of New York. ** I am in no sense an expert in the matter of Life Insu- rance. " G. D. Morgan of New York. *' I am too busy to go deeply into the subject of Life In- surance just now." A. B. Farcuharof Penn. *' I insured because.... .all classes of successful men in- sure. Many of these men know much more than I do. I am glad to take their advice." E. R. Wheelock of N. Y. "I have net sufficient knowledge, etc." Senator Gib- son of La. ' I have never made any careful study .of the subject. " Dorman B. Eaton, Comm. U. S. Civil Service. But they all recognize its benefits and insure. 132 surance societies,^ offer larger benefits at lower rates and charge the old system of life insurance as faulty in the extreme* Which is right ? Even with those brethren who fully recognize that the tax of 13 cents is insufficient and who gave the subject earnest thought, the proper amount to be paid is mere guesswork ; some propose 18 cents, others 16 cents, still others would be satisfied with 15 cents. Which amount is correct ? which is wrong ? For it would be just as wrong to ex- act too much as not enough. In matters of mathematical science, common sense alone cannot be relied upon ; guesswork will not inspire confidence. But " why not adopt a system based upon scientific calculation and fitted to our peculiar condition by competent minds ? Such a one is in successful operation in District No. 2, and under the circumstances I deem best that it be incorporated in the laws of all other Districts.*' This was the advice of Bro* Julius Bierty whose wonderfully clear head, broad and deep erudition, coupled with the most unselfish devotion to the Order, entitle him, beyond dispute, to be its chief and monitor. Unfortunately, his words are not read by the majority and are remembered by but few ; un- ^33 fortunately, *iriost every representative imagines his own mind **so clear in his great office'* that it renders him wise enough to decide every ques- tion whether of law, finance, mathematics or any other science ; according to the German adage : " Wen Gott giebt ein Amt, giebt er auch Verstand/* Aware of this weakness in many representatives and of the want of any precise scientific demon- stration as to the amount required, the President of District No. i in his opening Message to the Grand Lodge, referring to the report of the Special Committee on Endowment, the consider- ation of which had been deferred to that session; Jan., 1884, said as follows : * It is evident that the rate of assessment now being . paid is insufficient, and that an increase is absolutely necessary; What the extent of that increase should be^ // is for you to detenniney and, whilst the amount recommended by the special committee may be, for the present, larger than is absolutely necessary, some figure greater than that which we are now pay- ing should be adopted." . . . ** If, then, it is your desire that Endowment shall remain a permanent fea- ture of the District, you must make it so by such legislation as will render its continuance absolutely certain. I can see but one alternative, and that is, to 134 eliminate the Endowment entirely from the work of the District, creating either a distinct endowment fund, or leaving it optional with the lodges themselves whether or not they desire to avail themselves of such a benefit.'' How little effect these wise words of the Pre- sident, or the able and elaborate representation of the matter in the Special Committee's report, had on the members or on the Standing Com- mittee on W. and O, fund, is shown by the re- port of the latter, who recommended, by a vote of four to one, that the endowment tax be in- creased one cent, making it 14 cents, and saying: " that, while not making the burden too heavy, it still will constantly(?) and gradually increase our reserve fund." " We heartily agree (S. B. Hamburger dissent- ing,) in the recommendation of the increase in the per capita tax of one cent, making the same 14 cents for the coming year, believing the in- crease will aid in strengthening the reserve fund, so that in time we will have an endowment fund, the stability of which cannot be ques- tioned." Had this committee added: provided our mem- bership remains or will exceed 9000, and, provi- J55 ded further, that the payment of said tax be col- lected on the death of every member, not limited as to the number of deaths which may occur ; in such case, of course, the stability of the Endow- ment Fund and the constant increase of its re- serve would be beyond question. But as the committee knew that, according to the Endow- ment law of District No. i, the Endowment for all deaths exceeding one and one-quarter per cent, of the number of members, was to be paid out of the reserve fund ; and as by this time it ought to have known that, with the increasing age of the members, their mortality would also increase, the committee might easily have seen that the stability of which they talked was not only questionable, but impossible. Without con- sulting any mortality tables, and by merely look- ing at the statistics of their own District, they might have seen that: while in 1874, 39 out of 6568 members died, as early as 1883 106 died out of 91 1 1 members ; the death rate gradually increasing, from 6 to 12 out of every 1000 mem- bers. Thus, it would be reasonable to assume that, after another decennium, or perhaps later, the death rate would increase 2 per cent. ; how would the account then stand ? If the member- J 3^ ship increase to 10,000, there would be 200 deaths in one year; amount of Endor/ments to be paid, $200,000 ; 125 deaths, being assessed for 14 cents from 10,000 members,==$i 75,000, weakening the reserve fund by a deficit of $25,- 000. If the membership were to decrease, say to 8000 members, there would be 160 deaths in one year, requiring for endowments to be paid $160,000, while the assessments for 100 deaths (i^ per cent.,) at 14 cents would yield scarcely $112,000, causing a deficit of $48,000. Hence it required but little foresight and fore- thought to prognosticate that : far from having an Endowment Fund the stability of which could not be questioned, there would, at a time, not very remote either, be no Endowment Fund whatever left. Bro. S. B. H mburger, the chairman of said committee on the W. and O. committee's report, accordingly wrote as follows : " I must dissent from the recommendations of my brethren to in- crease the * per capita tax ' one cent, and cannot agree with their views, that it will strengthen the reserve fund, that the stability thereof cannot be questioned. I believe that the endowment sys- tem, as it exists at the present time, is wholly 137 insufficient to secure to the junior members of our Order, the Endowment which is guaranteed them by the Constitution. To the end of setting at rest forever the constant interminable discus- sion on the subject, I respectfully recommend that the present Grand Lodge adopt such legis- lation as vill repeal all laws contained in the District Grand Lodge Laws, affecting the subject of endowment, and that we recommend to the Constitution Grand Lodge, the repeal of the entire Endowment Law, and thus leave the perplexing question of endowment to the respect- ive Lodges, to be controlled and governed as they may deem fit and proper." "Should however this recommendation not meet your favor, I further recommend, for the benefit of those brethren who may depart this life within the next ten years, that the " per capita tax " be increased at least to the sum of sixteen cents. This amount of increase may seem exorbitant and burdensome. It will not be if those of us who are members of three or four organizations, kindred to our own, will cease to become members therein, or abolish the endow- ment." The discussion of these reports and of the Endowment questions in general lasted until past midnight of the G. L, Session, January 28th, 1884, and was resumed on the following day; at 4 P. M., as agreed, the vote was taken, first on the motion " to disagree with both reports and to leave the 'per capita tax' at 13 cents." This motion was lost by one vote, (48 ayes, 49 nays). Finally the motion to concur in the majority report of the W. and O, Committee, to make the tax 14 cents, was adopted (50 ayes against 48 nays). Thus the first victory was won, the first little step was taken towards an improvement of the Endowment System in District No. i, quite in- sufficient to make it permanently enduring, yet important as the first defeat of the persistent opposition against the least increase, and giving stronger hopes for further improvement in the right direction. Moreover, another amendment was adopted during the last hour of that same session almost without discussion which amendment (proposed by the representative of Washington Lodge) is of far greater value than an increase of the tax and by an additional cent would have been, namely: raising the per centage of mortality, for which assessments are to be ^39 collected, from one and one quarter to one and one half per cent; so that Endowments in excess of one and one half per cent of the number of members, in any one year, should be paid out of the Reserve-Fund. By this amendment the Endowment fund would be enduring for at least 20 years! Far from advocating the said rate and limita- tion, as it has serious defects, it might be desirable, in view of the present agitation in some Lodges, to show by careful arithmancy how this system would work, even were no fur- ther improvements to be made and not a single new member added. But a table to this effect, with its many columns of figures, would not be examined by one out of hundreds of our brethren and would scarcely merit the sacrifice of time and the large space it would necessarily occupy. This laborious calculation would be, moreover, of \\i\\t practical vdihxQy from the fact that the 14 cents "per capita tax" would sometimes amount to less than $15 assessment per year, whilst the law lately adopted by the Constitution Grand Lodge precludes any rate which would produce less than that amount. The readers of this study will therefore prefer 140 to take my word for it that said calculation proves: that the present "per capita tax'* of 14 cents would be sufficient, not only " for the bene- fit of those brethren who may depart this life within the next ten years" but for the next twenty years; and this without assuming any accession of young members, thus advancing the age annually one year, and diminishing the number surviving at the rate established by the American Table of Mortality. During the first ten years the assessment would increase with the growing mortality to nearly $18.00 (to 128 deaths at 14 cents), and the reserve fund, from surplus, (so-called) and from interest at 5 per cent, to over half a million dollars. At the end of the 20th year $1,120,000 would have been paid ottt to the Wfdows and Orphans or desig- nated beneficiaries of our brethren, of District No. I, who may have died during that period, but then, in the 21st year not a dollar would be left of that reserve fund, yet about 6100 mem- bers surviving, whose average would be beyond sixty, their mortality over 200, while their pay- ments, in death -assessments, restricted to i^ per cent of that number, would produce about $67,000 only scarce enough for one third of the 141 Endowments which would become due in that year. Would not an increase of the "per capita tax" to 15 cents on each members' death, up to i^ per cent, taking into account the admission of new members, replacmg those lost by death and lapses, be sufficient? And would not this secure annual assessments amounting to not less than fifteen dollars. To determine whether this or that rate of as- sessment would secure stability to the Endow- ment fund requires something more than a mere expression of opinion mathematical proof is necessary. At each of our Grand Lodge meetings the most conflictmg opinions have been expressed ; some asserting the present rate to be ample for the fulfilment of our promises and obligations, now and in the future ; others, seriously doubt- ing the safety of the Endowment, fearing their payment to be productive of only further ex- pense without any compensating benefit, and predicting an early and disgraceful failure. But neither side had figured out the matter ; they all simply " believed " and " supposed " and *' thought" or " were told." One generally re- 142 lies on the low rates held out as inducement by Assessment Life Associations, some of which are now, apparently, very prosperous ; the other judges from the high rates a person of the aver- age age of our members would have to pay in any sound Life Insurance Company. True, it seems to require but little arithmetic and not much good common sense to know, that to pay $1000 at the death of every member, their contributions should be equal to an amount which, accumulating at compound interest, would produce $1000 during the number of years they are expected to live ; and as the aver- age age of our members in District No. i is 45 years, and the expected life duration at such age averages 24 years, $21.41 per annum is the amount which, accumulating at 5 per cent, interest would in 24 years produce $1000. It may, however, be claimed that this amount would not be enough, considering that the pay- ment of Endowments for members who die prematurely must produce a loss whereby the accumulation is materially diminished. Nor can it be denied that the accession of new, younger members, produce considerable retardation in the advance of Age, and thereby affects the 143 resu4t. Careful calculation, wherein all these factors are taken into account, is therefore abso- lutely necessary to find the proper and mathe- matically correct remedy. In an article which appeared in The Ameri- can Hebrew of May 8th, (vol. 22, No. 13, p. 194,) under the heading ^^Make it Optional^'' it is ** taken for granted that the Endowment system, as now existing in District No. i, is unsafe ; and that the promise to pay to the heirs of all of the 9000 members $1000 cannot be fulfilled ; that the tables of mortality used by the insurance companies are safe guides in this matter ; that the system of assessing all members alike, irres- pective of differences in age, is mathematically inaccurate and unjust. All this is admitted and has been fully shown in this study ; but the said article further asserts, that it would require a rate, determined by the average age of the members, **such as the poor men would be un able to pay and the young men would be un- willing to pay, as they could secure cheaper in- surance in safe insurance companies." This is not correct. A uniform annual rate of $18, equal to 5 cents per day which is the rate adopted in District r 144 No. 2 is not beyond the ability of any poor man, and is a lower rate than any safe Life Insurance Company would charge for an insur- ance of $1000 to a person above the age of 32. And the young men of that District express themselves quite willing to pay this rate ; they opposed a reduction to $15 as asked by some 0;ld members ; the young men cheerfully contribute the |3 more for the benefit of their old brothers' widows and orphans, for whose benefit they would be taxed were there no Endowment Fund. The young members of District No. i will scarcely be less charitably inclined, much less would they withdraw from the Order for the sake of $3 per year, or i cent per day more than their own age alone might require, provided they could thereby secure the safety and per- manency of the Endowment. The advice to " Make the Endowment op- tional " will not prevail, if the question be pro- perly considered how the duty of providing for and assisting the widows and orphans of our brethren could best be performed. This duty is imperative and inalienable. Wolf*s resolution, adopted and made law by the Constitution Grand Lodge, never contem- 145 plated "leaving the Endowment optional with such lodges or members as may desire to parti- cipate." It merely left it to the option of each District Grand Lodge to have or not have an Endowment system. The proposed Endowment Law, endorsed by a resolution of said Constitu- tion Grand Lodge, recommended that partici pation be made optional for young unmarried men, until they either got married or reached the age of 35. This seems the utmost extent for a practically safe and just optional feature. It would at the same time obviate the complaint that members below the age of 32 are charged too high a rate, and those who would leave the Order for this reason would be no loss. The Grand Lodge might also permit those who con- sider the tax of $18 too burdensome, to pay half that rate only for the proportionate part ($500) of the benefit. The Tables herewith presented show that assuming the well established rates of mortality and other factors, hereinafter explained an en- during solution of the Endowment problem may be reached at the rate of $18 per annum, and that even a 15 cts. per capita tax would probably not result in deficiency for many years to come. ^ s O ^ ;3 o -^ o PTJ O H ^ CO ro ^^ O CT3 O , to +-> C/3 c ^3 p 4_i a a; H U) .s +-> d Tl . M -1 D i; oj > S ^ t-^ CN '^ CO t-^ LOCO 00 00 t^ i;*. ^ ai M VO CM 00 ^ M 00 to CI On cS vo M N 'O ro -^ 10 tOMD t^ 1:^ ^ & m^ -a cd t^^ vo ro M VO t^ On 2 s toOO VO ro ON 00 00 ^ CO 2 4-. O ^ TtOO ^ W M CO l:^ '^ ON T^ 1) rt ^.^ in c 00 COVO OS c^ 10 C^ w VO ^ M M M CM N CM CO CO ; c-"3 0000 0000 3 S'f. On 10 HI VO CM 0000 I'^Q rovo CO 10 J> CO to to to M ro ^ 10 r^ MD ^ 10 00" cq'vo 0" ^ 1 ^ . M M M (M CM CO CO w ^^ U2 M-i i2 a 0000 0000 ^IS ^ On 10 M vO 01 0000 2 S a CO^ CO 10 !> CO to to to "Ji "Tj- 10 On ^ ON CO Chvo VO VO S. CO ^ nj (4-1 0S4 to lovo vo* t-^ t^CO 00 00 CO M M M M M M i-l M M M ",2 m ^ 1000 M 10 00 (M VO ^ sq;B9Q M M M M M M M M CM C>^ CO CO H t-l M M ?^ rtalit eath ate) in 000. CM ''J- *>- Tj- 00 CM VO 10 M M M CM CM* CM* CO CO "^ Th OT5 -. H M M M M M M M M M "^^ r;. ^ M 00 10 CM 00 ^0 9SV 10 tovo r^ !>. 00* cfs On 0* M* ^ ^ ^ xl- ^ ^ Tt- '^ 10 10 C Jf^ M N fO Tf lO VO t^OO On UB3A * M OOwc< O CO lOCO VO r^ On 00 M VO ON M cf\ covo*" cf\ CO CO -^ ^ ^ lO 00 t^ t^ M M CO vo" 6\ un lo CO 00 O O Tl-00 CO M^OO^ cT" VO l>^ VO VO VO On t}-vo t^ CO ON ^ O M ^ CO *>. OvOO VO O' m" ^vo'oo" !>. t> t^ t^ ^>. VO CO "^ On t^ rj- M r- VO r^ O^ CO ''tCO lo O" m" cf CO ^ CO 00 00 CO CO O O O O O O O O O O m lo lo lo lo oo -^ 6s tFoo" N C^ M M o o o o o o o .^ o o o VO lOtc ^O VO VO rf ^ vi^ O*^ t>^ ^-1 MM O O O O O o o o o o VO VO lO VO VO CO cfsvo" cToo" M M CO tJ- rt- o o o o o o o o o o VO VO VO VO VO rf On CO C?\ VO lO vo^ vo r^ O o o o o o o o o o o o o o^ o oo" cT tC cToo" CO -^ "^ lO VO M M H> M M O o o o o o cTvo" VO VO M M O O O O o o o^ o^ o^ ^r tC r? t-* l>.00 o o o o o o o o o o o^ o^ o^ o^ o^ O^ vo" CO On lO On ON O O M M M M M M O O O O O O O O O O O^ O^ O^ O^ O^ M VO O VO M W M CO CO ^ C^ 01 CJ Cl Cl o o lO. ^ ^ ^ vo"" " " " VO M ^ ^ - - - 1 o o M 00 c< t^ M CO CO ''I- Tf VO VO M M H M M M VO VO VO M M t^ r>.co O VO CO On lO On UN O O M M M M 01 M M VO O VO M M M CO CO -^ M M M OJ M q "^ c^N '^ q lO to lovo' !> IH M M M ^ VO On M M VO M Ov CO On On VO c^ O ^ c< d M M ci CO M M M M M ON ''^OO VO N CO ^ Tt- lovd M M M 01 W in o lo q VO M ci ci CO CO in lo VO lo VO O VO VO VO O lo o VO vovo' lO lO lO VO On CO r^ M \6 ^ !>. t^oo' VO VO VO VO VO VOOO M Tf t^ 00* 00* cfv On Ov lO lO VO VO VO M M CO Tj- lO M M M M M VO t^ M M 00 ON o M M N M M CO "^ VO W M W M C< VO t^OO On O c^ c< C< M CO c3 < o CO Tj- r^ O t^ lO N M CO X^ M n to VO *^ lO t>. lO C? r^OO 00 VO VO M O IT) M lO c^^oo^oo^ N^ Tt 0-^ o" o a\ o o CO t^ cToo'^ VO o w CO c^ <^ O r^ CO OS CO t^ *> t^ !> t^ !>. t^ vo^vq ^ ^ '^ Q^ *> ^M M M M -a M ro CO t^OO t^ M N rj- r^ M C G ro w O t^ O N VO ON ''t H 2h !-> O OJ O O^ ^O '^ O O^vo^OO^vO^ ON 4^ J W x: C lOVO MD VO VO^ VO CO M ONVO ^ cu G 00 00 00 00 00 CO 00 00 t^ t^ m O ^ T3 o o o o o O O O O O O O to VO CO t^ Tj-vO ^ VO "^ ^^ O^^^^CS CO O VO CI t^ a; V VO^O !> VO VO M ONVO -^ On K P VO t^OO ON O M M C< CO CO w m^ ^ o o o o o o o o o o 8 -o o o o o o o o o o o go*3 o^ o^ o^ o^ o^ o o o o o t^ tC m" rC o" o" O O M M M "= -^ t;J-. VO VO vovO VO VO VO VO VO c< G^m- J;^ Tj- t^ M Tt- t^ O ^ t^ M < i*- 00 t^vo VO VO '^ Tt CO ca ci <"" i ^ M M M M M o O O ^00 On Tt N C< "^ M sj9qraap\[ lO M t^ c< 00 Tf M 00 VO w O ^uiureui3-a M ON VO ta 00 VO W 00 VO C ON ON CO 00 00 !>. t^ t^vo VO VO VO sasdBq CO Onvo M on VO C^ ONVO W OnOO 00 00 l:^ t^ t^vo VO VO f* M t>* !>. O O O M 01 M sqiBOQ T^ VO VO VOVO VO VO VO VO VO N W C4 M W C< M C N Cl t^ N O CO O lo q o q vo" OO' O* w CO "^vo 00* o' c< 1 C^ M CO CO CO CO CO CO "^ Tf o 00 ^ q VO W 00 ^ O VO sSv O O HI c< ci CO CO ^ VO VO so VO VO VO VO VO VO VO VO VO d 3^ CO CO CO CO CO VO r^OO On O iB^A CO CO CO CO ^ r0"0 JtN. M "^ M r^ O to to HI t^ CO 01 VO CS M Tt "^ m\o O M o< CO 01 HI , On O 00 ro M ON to OJ M M M t^ M OO . to xo "^ tovo On t^ O On i-T oo 01 CO HI tC O c^i ro CO M M o t^ to o On to 01 -^ ro c^ M O OsOO ^O to "^ W HI HI ^H M M M M ^ N CO tH IT) C^ t^vo OO to O NO NO NO to ^-> t^ l_0 tJ-VO O On t^ HI tovO to CO O NO c^ c^ cq t^oo Tf CO O On to M NO On O CO O VO M vo M to O oo t-^ M rt t^ M (D t>^ t^vo VO lO to '^ "^ fO w 01 M Q O O O O O o o o o o o o o o \0 ON vo M O M rJ-OO r}- ro to Tt- 01 t^ TD M Tf t^ 0\ O OnvO m 00 vO to 01 t^ On C 03 Tf O vo O ro OO M M On to M On "^ On M M M M M NO VO MD to to to -^ ^ CO M M HI HI o o o o o O O O O O o o o o -a o o o o o O O O O O o o o o *> o o^ o^ o^ o^ o^ o o o o o o o o o OS OnGo" i>^ ro 00 Hi "^ to o On 01 CO ''t u LO lO lO vo to T^ '^ CO o< 01 O O OnOO Q^ 04 W W M N 01 01 01 04 W 01 01 M HI 3 o o o o o o o o o o o o o o S2. J2 rh M vooo O ONVO 01 VO t^ toMD 00 CO CO lo 01 O O O OOCO M oo rf t^ 01 O r^00 M VO o rtOO 01 to 01 t^ 01 00 Tf M O O OS 0\ 00 r^ r^vo NO to to '^ ^ M M M S fOOO t^ o o ON r^ to to 01 oo CO tooo 00 00 VO lO to U-) to t^ O ^ ON to 01 O On On lO M On^ rO O t^ to M On t>. to CO O O lO lO "^ "^ "^ t:!- ro OO OO 01 M d 01 Ol 01 ^ OnvO oO O t^ fO M 00 to oo O 00 to CO CO lo m lo vo ""^ ^ "^ CO CO OO CO 01 01 01 CO OS OnOO t^ OO 00 M ^ to O On 01 CO Tt- 00 iO lO vo u-> to Tj- rt" CO 01 01 O O ONOO M W N C< C< N OJ 01 01 OJ 01 01 01 M M to r 1 o lo o q to O to O to to O lO to o 03 Tfvd On oi -"t r^ On 01 rf t-^ d coNo' d O H rj" Tj- rf to lO to to^ NO NO t^ t-* l>.CO ^co Tj- q in q to o to o to O to O MD vd !>. 00* 00* On On O O M HI 01 Ol CO vO ^ vo VO vO NO NO t^ t^ !>. t>- t-^ !>. t-^ M 01 CO "^ to NO l>.00 ON O M 01 CO ^ Tf rh rf rf Tf "^ -^ Tj- Tt to to VO lO to OJ :3 G C cd O o CO M ^ M ctJ -G +-> It^ bJ) <\> 'O ^ 1 H ^ c 4-> H o a (D o 1 ^ -(-> h JC3 CTl pc C/3 a C ^ o O) m ."tlj OJ T1 d o o d o ^3 (U CQ o O t^ ON On CO ON C< N VO M lO Tj- M On M t^ O 00 O VO o On Tfvo^ ^ ^^ ^MD -+; M^ T:f- > rt*^ O Os ro f^ cf t^ m' tC cq' rC j-T li o O^ ro M 00 vo ro M GO vo ro M * cf\ N ro CO ^ lO VO vo t^CO ON C^ M ^ 'O 4) (U c O l:^ CJ O ^ VO CO O ''^ lO rt lO On t^OO c^ lO C 00 N vo C ^j o ^ ^ ^^ CO M 00 vo CO M 00 ii rt u C ?^ C! oo" t-T vn O^ CO vo O ^00 M O ^ M M M C< Tt -^ Tt CO CO 5 ^ n C o o o o o O O O O O o o o o o O O O O O S o'rt o o o o^ o^ o o o o o ^ LOOO"^ i-T vo 00*^ cTvo'^ o' ^ o o o M (NJ C^ CO ^O m^ ^ ^ o sSg o c lO^ >. \ \ a M 0) s rj- U-500 M LO CO M vo O "^ sqjBaa ON o o o M M M M M M H M (N e^ CO to M M M M M >, a rtalit in DOO o M M M 00 W VO O to ci CO to '^ "^ o M M M M M M M M M M S 9 ^ ^ M 00 to C^ 00 rt" q sSv to u-)VO !>. t^ CO* On ds d M ^ Tf r^ Th r:i- rt rf rj- to to JB9A -H N CO Tt lO VO 1:^00 ON O M M lOOO ILO !>* M O CO M lO N O O tONO vo NO On M CO On ^ ^ "^ Ch 00 t^ t^co Th r^ M o c^ O o t^ to -^ o ^ OS O MD t^ (N H M U-^ J>.00 VONO O TtNO NO M C^ to On w CO M On t^ M U") "^ O CO w r-00 to On M On CM 00 to CO o t^ CO O t-* CO ON lO O lO On CO t^ O ^NO On On O i-< . ^00^ 00 On On On On O '^ CO t^ N ^ On coco ^ r^oo O lo M O O CO CM CM rOOO !> Gs u^ 00 00 NO O NO M CO On M 00 O t^OO 00 NO t^ CM CS lO W lO On CONO !> 1-^ to M NO 00 ON t^ ^ O '^ lO Cn M VO O CO^O O rONO On C4 lO !> ON M CO to t^OO r^ ^ lO lOVO NO vO i:^ i:^ t^ t^OO 00 00 00 On On On On On o o o o o o o o o o lO to to to to OO" tF CN ^OO" M CM H H o o o o o o o .ti o o o lO to O to to to ^f > t/i o" tC '-J MM o o o o o o o o o o lO to to to to CO 0\N0 ^Too*" W CM CO ^ ^ o o o o o o o o o o to to to to to "^ On CO On to to toNO MD !>. o o o o o o o o o o o^ o^ o^ o^ o^ 00*" cT t^ cToo*^ CO "^ Tj- to to o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o CM NO CM t^ Tt O NO CO On to w NO O NO c< NO NO !>. IS.00 ON ON O O M CM c^ CO CO -^ 1 1 H M M M M M M (N! (M CM c< CM CM M 00 CM t^ CM 00 to "^ "^ to to H M M M M M NO NO NO CM r^ Tt- !>. r^oo M M M O NO On On M M CO On to O O M CM CM CM M NO O NO CM CM CM CO CO "^ CM M W CM CM q Tt On to q %n to toNo' t^ H M M M M lO On M M NO M ON CO On CK M M M NO CM d M CM M q NO M* ci CM CM CM CO CM On TfOO to CM CO rt- Tf lONO* M W M M C lO O to O to M cJ CM* CO CO m to to to to O to to to q to q to tONO to to to to On NO NO to to CO i>. M !>. I>.00' to to to tooO M Tf ir^ oo" 00* On On On to to to to to M CM CO ^ to NO t-* M M 00 On O M M IM M C< CM N CO Tl- CM CM to NO t^OO ON O W CM CM CM CO 5i < w . fO ro OS ON -t '^ t^OO NO t-i 3 rt *"fo M CO M M M t-* M NO M ^ ^18 -^ vo O lOVO 00 O I-* t>* to ga^is vo" M rC ^f cT cooo" CO o d N lovo -* r^ NO "^ N On to ^ '11 O O O O O o^ o^ o cr\ os c5 ^<* C^ M Cl M M c^" c^r m' hT m^ O O VO O U-) O CO M 00 to to ^ M W !>. to CI CO ON O 00 CO ^1S^ vO ^ to CO t^ vo M ^ M lO *> *^ -. 1 1 On M N CO CO CO CO n M On On O O O O O O O On m M M M M M M M M 1 . o o o o o o o o o o (2 .s O O CO lO CO t^ rtvo Tt to 8 si Tl- N O 00 vo CO O NO C^ t^ 1 lO^O !>. vo to M OnnO "^ On vo t^OO ON O M M M CO CO Piq M 1 . o o o o o o o o o o S -6 o o o o o o o o o o 3l o^ o o o o o o o o o tC m" tC tC cT O O HH M M -2 ^ T^ to to to^ NO NO NO NO NO N M N C< O CI C4 W (S M o o o o o o o o o o 3|6 3 S N O O t^ to t^ CONO ^NO to VO 00 On M CO vo On CO t^ N C cn^ r. v - r^ C S *j M rj- t^ M rt i:^ O "^ t^ tH <^^ 00 J-^VO vo to Tj- Tj- CO ca c < M M M M M M M M M M O O O t^OO On rf M C^ O M sjaquiajM to M t^ N 00 "^ M 00 to c< O SuiUtBUl9^ c< On to . M On cq VO N W r^ to r-^ ID M ON M vo t^ 1 1 O ^o t^ rO 00 ON O 0\ 0\ o 00 vn Tf ID ID M ^ c^ VO 00 r^ ^ O ID 00 C^ vO.0 QvOONONt^ M rj- t^ On O OnvO moOvO idc^X^OnO 00 COVO r^vo ^OidO^O fO^^Ma^l:^ h-Tos-^C^id Oo'cT idoO* cnT Tf ID IDMD VO VOVOVOIDID lD"^"^rOCO MMmQO OOOOO OOOOO OOOOO OOOOO OOOOO ooooo ooooo ooooo o^oooo^ o^oooo ooooo ooooo On OnOO r>.ro OOwrf-iDO OnncOt^id ididid idvo IDIDIDIDID rfr^rown OO OnOO J>. vo id ^ C^ CS|WCJ(NW WC^NMC4 CIC^MMM MMMMM o o O O o o o O o o O O O O o o o o o o rj- M ID CO o ONVO CI VO t^ IDVO 00 CO o o ^ M CO 00 ID . ID ID 01 ro CO iDOO w 00 VO IDVO t-* 00 VO tD ID ^D ID t^ o ^ ON ID M o On o TfCO CO ON ID W ONVO ro O t^ ID M ON t^ ID CO O ON t^ ID CO C^ o ID ID ^ ^ ^ ^ CO CO CO M W W c< c M M M 1 1 ONVO CO O t^ CO M 00 ID CO O 00 VD CO M On t^vo ^ CO ID ID ID ID -^ "^ rj- ro CO CO CO M M M N w " M M M ON OnOO I>. CO 00 M ^ ID o ON N CO -^ ID ID ID ID IDVO XTi \r^ \ri \j~i \r^ Tt- ^ CO N CJi O o OnOO t^ VO ID ^ CO M N W a N M C^ C^ c^ CI w N N " M " " QlDOOlD OlDOlDlD OlDlDOtD O^DO^DO rfvOCvNrf t-*ONcJrft^ o'covdoco r^6TJ-i>.ci Tf Tf rf ID ID ID ID^ VO VO t^ t-^ t^CO 00 00 ON ON On O NOOrhO'^ Oi^oO^dO idOidO^d OvdO^dO Vo' VO* l>.o6 CO 0\ On d O -<* M N n ro CO '^ rf id iDVo' vovovovovo vovot^t^r^ t^t^r^r-^r^ t^f^t-*t^t^ -I N CO Ti" ID VO h-CO 0\0 MMro-^iD VO t^OO On O ^-^ rf -+ rf tJ' -^ t^ "^ rt' id 'D iD VO ID ID 'O XO 1D ^DVO 154 This computation, though requiring a great deal of figuring, can be comprehended, examined and corroborated by any person familiar with ordinary commercial calculations. To facilitate a better understanding of these, however, a kind and careful consideration of the following ex- planatory remarks is solicited : Under the laws of nature, heavenly ordained, there is no such thing as chance, the human mind, ignorant of the future, can merely draw conclusions from observations of the past, as to what the probability or chance may be hereafter. From observation we know that, to every individual, death is only a question of time; the Psalmist already observed "our years are three score and ten, etc." From a large field of long and continued observations we can compute how many out of a hundred thousand persons of a certain age will probably die within one year; but no mortal can say who; hence the probability becomes more and more uncertain as we may attempt to apply the proportion to a smaller number. But while there may be slight deviations from the death-rate when applied to about 9000 members only it may be less in one year and more in another, the mortality table 155 may, on the whole, be safely relied upon. In many cases, however, it would be very deceptive to assume that " what has happened in a large number of instances in the past, may be accepted as a fact to determine the average result of a series of coming events with precision." The most deceitful schemes of cheap insurance are built on such misleading assumptions. The Tables presented in this study are arithmancies for District No. i, based on no unfounded suppositions; and yet, their figures are vatxtXy probabilities which maybe safely relied upon to prove realities. Thus, the membership, which at present is nine and a quarter thousand, is assumed to remain numerically unchanged for a long period. During the last 20 years our Order has increased from 5900 to 25000 members; from 1865 to 1880 the addition of new members in District No. i, averaged about 380 annually; since 1880, however, the accession ^to our ranks diminished to such an extent that no one acquainted with the facts would now assume a continued large increase for the future. As has already been stated in the former pages of this study, *'the history of every social organization XS6 in the past has shown that there comes a time when it is impossible to increase the member- ship;'* but history further proves that all well organized and properly managed associations, established for good and legitimate purposes and on a sound basis, are, for centuries, able to fill the gaps, created by deaths and discontinu- ance, and to replace them by new members. Hence it would be deceptive to assume an in- crease of membership for the future, but it may be considered as of the highest probability, that new members will supply the places of those who die and lapse. Should the membership increase, this would not affect the result, except that the limit of annual assessments, proposed in Table I, would be reached sooner, and if that amount ($i8) be deficient, the greater accession of new members would but delay the failure. The AGE, as shown in column i of both Tables I and II, is computed on the said probability of maintaining the present number of members, replacing those who die and lapse by new members. 13 13. It starts with age 45, this being the lowest estimate of the present average age of the members of District No. i. It is probably nearer 46 years. 157 The fallacious assumption that the average age of our membership could always be main- tained stationary by any probable " infusion of young blood " has been repeatedly confuted in this study; but it is not disputed that, by an increase in membership or by replacing those who die with younger members, the advance in average age would be proportionately retard- ed. Arithmetically calculated the result is as follows: If in one year out of looo members 12 die, whose average age is 55, and these are replaced by 12 new members whose average age is 30, there would be a gain of 12X25=300 years, reducing the advance during that one year from 1000 to 700 years, hence the average age would increase 7-10 instead of one whole year; if 17 die out of 1000 members, and are replaced by as many new members each about 30 years younger than those who died, the advance in average age would be reduced one half; and when the death-rate reaches 2iZ out of 1000, and those departing are replaced by members 30 years younger, then the average age may remain almost stationary. The substi- tution of new younger members for older ones who lapse would also serve to somewhat retard the advance in average age. 158 The RATE OF ASSESSMENT is assumed (in Table I, column 4) to be at first 15 cents per capita for every death. This is the rate most likely to be adopted by the Grand Lodge, were it only to comply with the law passed by the late Convention prescribing a minimum annual assessment of $15 for every one thous- and dollars. In the seventh year, when the mortality will be about one and one quarter per cent, this rate would produce an annual assess- ment of $18; and in ten years the mortality will reach 15 out of 1000, or one and one half per cent (which is the limit of assessment in District No. i), the annual assessment would then be $20. At this rate, and assuming the member- ship to continue undiminished, the Reserve fund would amount in 40 years, at 5 per cent interest^ to nearly three million dollars ($2,988,300.) But this would be more than necessary, and we may well suppose that a demand to limit the annual assessments to $18 would become irre- sistible. Were the membership of District No. I, to increase to 10,000, which is certainly possible, a mortality of but 1 5^ per cent would already produce an annual assessment of over $18. 1 159 Table I, therefore, calculates the amounts of assessments (shown in column 5) at $18 from the eighth to the thirtieth year, and, deducting therefrom the Endowments to be paid (column 6), it gives in column seven the difference the surplus received during the first half of that period, and the excess paid during the second half, when the Endowments will exceed the revenue from assessments. Table II, calculates the assessments at %i8 from the beginnings and in all other respects it is the same as table I, The INTEREST on the reserve, earned each year at five per cent^4 is shown in the eighth 14.. The rate of interest has decreased, but 5 per cent are still safely obtainable on real estate loans, as evidenced by the income of the largest financial institutions of the East derived from that source: The Mutual Life of N. Y. earned in 1884 on gross assets amounting to $103,583,301; interest etc., $5,245,060. The Equitable of N. Y. earned in 1884, on gross assets amounting to $58,161,926; interest etc., $2,972,150. The New York Life of N. Y., earned in 1884, on gross assets amounting to $58,941,739; interest etc., $2,873,390. The Connecticut Mutual of Hartford, earned in 1884 1 60 column; and deducting the Endowments paid from assessment and interest received during the same year, and adding the difference to the reserve of the preceding year, the result is found in the ninth (9th) column; showing at the end of the 30th year in Table I, an accumulated reserve fund of $1,700,000; in Table II, one of nearly two million dollars. Looking carefully at the annexed Tables, it will be seen at once that the amounts received from assessments, in excess of Endowments to be on gross assets amounting to $53,430,033; interest etc., $2,794,578. Loans on real estate secutity, carefully and judiciously made are the best mode of investments for our Reserve funds; no other form of property has such inherent strength and value, it is the foundation and source of all other values. Real property may, at times, not find a purchaser at any price, but in due time it rises to its proper place, and it the loan were judiciously made, at about half of what was a fair valuation, no loss is to be apprehended. Some would prefer U. S. Bonds for the investments of our Endowment funds, a mode by far easier for its managers, undoubtedly safe and always convertible into cash. But they who favor such investments do not know what great difference the rate of interest would make in the required rate of assessment. This important factor is but too often overlooked or disregarded. i6i paid will be annually decreaszng^n while the amounts derived from interest on the Reserve fund are annually increasing^ hence the difference in the rate of interest would in time balance the apparently excessive difference in the rate of assessments. Both tables further show that after 30 years the average age of 60, and the so-called station- ary point would be reached, provided always that the membership remains numerically the same by continually replacing those who die and withdraw with a like number of new mem- bers, but if no new members were to join then the reserve-fund, however large, would soon decline with the decrease of membership and consequent natural increase in age and mortal- ity. It might be assumed by some brethren that accessions of new members would never cease in our Order, as they never ceased, for centuries, among Free Masons. I do not question the perpetuity of our beloved Order, 15. The Endowments to be paid exceed the assessments at f 18 in the eighteenth year, if the assessments were cal- culated at $21 it would take only four years longer, before the death-rate would exceed the annual receipts from assessments. t62 but I deem it possible, if not probable, that it may at some future time adopt a different system of providing for our Widows and Or- phans. And it may come to pass although $i8 is a very low rate for insurance of $1000 on the life of persons above the age of 30, and though our youngest men are quite willing to pay in favor of their old brethren, remembering that they also hope to get old it may occur, I say, that young lodges with new young mem- bers would prefer to form an Endowment scheme or a class of their own; and that from such or any other cause the winding up of the old Endowment fund may become necessary. Finally it is thus only that the question can be solved, arithmetically, whether the seemingly very large reserve fund would be more than needed or insufficient to pay every Endowment as it would be required. Even admitting that there may never be a last member, I must assume a terminal point, as this presents me the means of solving the problem; of knowing whether my plan is correct or not; just as the compass cannot make a circle without beginning and closing at some assumed point, though circles have no terminal points. i63 The second half of Tables I and II, from the 30th year on, are therefpre calculated without assuming any further addition or contribution of new members. The AGE (column i) would then increase annually one year, were it not that, by the death of the oldest members, the advance in average age would naturally be somewhat less than one year, as shown in this column ;^^ and columns 3 and 3 give the mortality and number of deaths annually reached. The LAPSES (column 4) come then also into account, as they are no longer assumed to be replaced by new members. Experience places the withdrawals and suspensions in our Order at about two of every hundred members annually but with old members who belonged for many years to the Order scarce one half the number of lapses can safely be assumed. The member- ship, annually diminished by deaths and lapses is given in column 5. 16. Deduct from 1000 at age 6o=aggregate 60,000, the 26 who died in one year at average age 70="! 820 years, and add i year from each of the surviving 974 members their aggregate age will be 59,154 years being equal to age 63.8. 164 The annual assessments are advanced to $20. This increase of 50 cents per quarter year, would certainly not be objected to at that remote period, when the average age of the members would exceed 60 years, and the rate of interest may probably have declined to 4 per cent. The bubbles of cheap insurance of to-day will then all be exploded and these Tables will live and be acknowledged a safe guide, though its author be probably long among the dead. That $20 would then be absolutely required is proven by the figures in column 6^7. On the other hand, an assessment of $18 annually from now on, as figured in Table II, may be relied upon as securing the permanent soundness of the Endowment fund in District No. i ; its reserve fund would, at the end of the 60th year be still sufficient to pay to every members' family the promised Endowment, and could from this time on relieve all its members above the age of 75 from further contributions; a measure much to be desired. 17. From the members who die and from those who lapse in the course of the year only about half of the duies can be collected, hence these are reckoned at $10, and those surviving and continuing at $20. i65 This mode of assessment, payable regularly at $1.50 each month, or $4.50 quarterly, is so very little above the rate at 15 cents for each death during the first years and would be soon more than $18 under the present limit of i)^ per cent mortality, that its adoption should certainly prevail. It has besides many other advantages which will be discussed hereafter. I hope to have fully and satisfactorily answered the question propounded, as to what rates would be sufficient to make the Endowment fund of District No. i sound and enduring. I believe to have shown by figures, the most probable future results, as far as these can be foretold; by the light of science and experience, yet without pretending to be infallible, without pro- fessing to prophesy. I hope to have demon- strated that the apprehension lest our Order be unable to carry out its pledges to the widows and orphans of its members are almost ground- less, that, notwithstanding the shortcomings of the past, in not sooner providing for an adequate reserve, the remedy was nearer and easier than many supposed; that, spite of the advanced age of a large number of our brethren in this, the oldest District, a future annual i66 assessment of $18, would be sufficient under circumstances most likely to prevail, that unless there be a decline in membership, this rate would be reached within a few years, even at a 15 cents 'f^er capita tax, and much sooner if the member- ship were to increase. A little reflection will thus reveal the fact that to withdraw from the Order would tend to aggravate, and not to remedy the evil, and that mutual self-interest, if not devotion to the general good, would dictate the constant maintenance and not the dissolu- tion of our membership. That the latter may never again be used as a threat, is one among many other reasons why the adoption of a fixed contribution of $18 is far preferable to varying contributions based on after-death assessments. Those brethren who still are not disposed to concede the necessity of adopting the rate of $18 per annum as Endowment dues, those who will neither study nor believe the figures here- with submitted for their examination, those who still think that a better and cheaper, yet, at the same time, safe and reliable plan of assessment Life-insurance could be devised to those I would put these questions: Can any plan furnish insurance at less than cost ? 167 Can any society be less subject to ** fraudulent claims " than our lodges ? Is there any association where you could be as sure that every dollar paid in will be used for no other purpose than to pay the just claims of our deceased brethren, as with our own chosen trustees ? Is there any Society or form of Life insurance that can be as economically managed as our Endowment Funds ? Certainly, whatever the defects of our Endow- ment system may be, no dishonesty or mal- appropriation of its funds could ever be charged to its trustees; no attempt at a fraudulent claim has so far ever been made, nor has any honest claim ever been resisted. The annual expense of management is about 30 cents per member! And yet, some of you may say that there are associations where the rates for men, 45 years of age, are less than I claim to be required. Yes, I admit there are. Let me take the "Mutual Reserve Fund Life Association," of your great State of N. Y., the largest and most successful of all, as an instance, and show ic to you in its true light. I will not question the correctness of its brilliant statements; I will admit the great energy and ability displayed in Its management; nor will I doubt that its i68 funds are carefully and honestly managed ;i8 i, will not even ask you to take into consideration the fact that it charges $io admission fee and one year's annual dues for $1000, then $2 annual dues for expenses after the first year; but I will show you, from its own documents and papers, that the rate must increase in future years, so as Svioner or later to force its mem- bers to withdraw. In a little book of * Endorsements," issued by the Mutual Reserve Fund Life Association is one from the celebrated old actuary, Elizur Wright, Ex-Insurance Commissioner of Massa- chusetts,^9 wherein he says: "Your assessment rates being loaded one- 18. Though some well-informed persons charge, that for every $1000 paid to members, $600 were paid to managers, and that no proper account of expenses is rendered in its reports. 19. Hon. Elizur Wright is a bitter opponent of the old system of life insurance and has done much to improve it. In one of his books he wrote: ** Having been extensively used as a sort of stool pigeon, in years gone by, when my attention was more directed to the value of the bait than to the inconveniences of the trap, it is a penitential labor with me to let the public know what, in my judgment, the matter is with life insurance.*' 169 third above the American mortality, and increas- ing according to the scale with the ages, I regard as equitable and sufficient to provide for the death -claims in full, after reserving one fourth for the Reserve fund." And with regard to the assessments becoming large and oppres- sive to the insured in future years, he says: "As they outgrow the need of insurance they can diminish the amount insured, from year to year, or retire without loss, and let younger men take their places.'* The rates of said association are graded according to age^^ and are based on the cost under the natural premium plan, of which this association is the leading exponent. In the "Society Journal," a monthly issued 20. These rates are : at Age 25, $1.00 j at age 45, $1.64 ** 30, $1.10; ** 50, $2.00 ** 35,|i-H; ** 55, $3.25 40, $1.44; * 60, $4.50 " 65, $7.00. Thus at age 45 ten assessments would cost $16.40 and $2.00 for expenses=$i8.4o. No assurance is given as to the number of assessments; it is merely claimed that '*no more assessments will be called for than is required for the payment of the losses and provitiing for the Reserve fund." under the auspices of that Company, you can find the 'Natural Premium system^ fully explain- ed and compared with the level or, what it calls the artificial premium plans. I extract from its hst Oc ober number the following: " The man who insures his building against damage or destruction by fire, pays such a premium cheerfully, because he understands it to be the price of contingent indemnity and that, whether he encounters losses or not, he receives a full equivalent of protection in exchange. He will even continue to pay an annually increasing premium without protest so long as he is satis fied that the increase of rate [which at the age of 75 is $87.10 for one year?] is warranted by increase of hazard and the company's neces- sities."2i *'that the rapid increase of pre- mium at advanced ages would deter men from 21. Knowing that these rates would force members to give up their insurance when they get old, Mr. B. S. Price says, in justification thereof, (in "The Guardian," a semi- monthly devoted to the interest of Assessment Life Insur- ance, April 25, 1885): " Insurances continued into old age and beyond the producing period of life, are as false and useless as insurances upon dilapidated, decayed and untenantabl e houses. " 171 paying them, is an object not wholly without foundation.*' **It will be observed that though the natural premiums increase in amounts every year, and more rapidly at the older than at the younger ages, they do not exceed the level premiums of the old system until after 30 years, (from the age of 30).'* "The advantages of the natural premiums (upon which the system of the Mutual Reserve Fund Life Association is modeled, by the main- tenance of an adequate reserve to insure equality of payments and by the calling in of premiums by periodical installments) are suffi- ciently obvious." But it is also sufficiently obvious that the natural premium plan, increasing with age however advantageous and equitable it may appear to some is ill adapted to fraternal insurance. Our Endowment system should not ask its old members to retire and let younger men take their places. Our Order may invite young men to join, and must protect them from paying for the deficiency of its older members; but it would never allure young, new members by offering to them "a gambler's chance of winning 172 profits out of a loss of protection by their old, most needy brethren." Let business associations, offering cheap Life insurance, claim the " Ton- tine System " as one of their " Pillars of strength"; a truly fraternal, charitable organiza- tion demands that its members stand together as long as life lasts, stand by each other's families beyond the grave; brothers should be willing to pay for one another, sharing the bur- den all alike; the young paying even a little more than Is necessary at their present age, in order that the old, who have paid for many years, and may have to pay during many more, should not be required to pay higher rates. By far the most preferable way would be, to altogether exempt brothers beyond the age of 75 from pay- ing any further assessments, and this might be safely done after 20 years, if by virtue of a better rate of interest and a lower rate of mortality the reserve fund should have become proportionately larger than calculated in the preceding Tables. I could proceed to prove the importance of IMMEDIATELY adopting the level rate of $18. per annum ; it being the lowest possible rate to secure an enduring Endowment system; it being 173 the highest practicable rate under which it is probable to replace those who die and withdraw by new members ; its cheapness compared with the higher rates of regular Life Insurance Com- panies, and its advantages over a lower, yet an- nually advancing assessment ; but *1 scorn to tyrannize over the impatience of my reader.'' Moreover, the vast majority of our brethren place but little confidence in the so-called co- operative insurance societies, and are by no means disputing the correctness of my figures ^3 and arguments. They simply think that, as their present contribution of 14 cents per capita at each death is more than sufficient for paying the endowment of $1000, and adds about $30 000 to the reserve fund, it ought to be enough. They do not ponder on the future, do not reckon that a mortality of one and one half per cent, out of the present membership of District No. I, would be 138 deaths ; that at 14 cents assessments this would amount to $19.32, and that whenever the death rate should reach iV^ 23. Fractions are omitted in my calculations, and there are some inaccuracies; but not sufficient to materially affect the result. .174 per cent., this amount would have to be paid in one year. This rate of mortality is sure to come soon, by the natural and inevitable advance of age, without assuming the possible contin- gency of an epidemic ; this also they do not consider ; and though our old lodges show an annual death rate of two and more per cent., they scarcely believe it ; or, if they do, prefer to leave the unpleasant task of further increasing the tax, to future times and representatives, or to that supreme legislative body the Constitu- tion Grand Lodge. This latter was relied upon in District No. i. The chairman of the Widow and Orphan Committee said in his report (Jan. 25th, 1885. Proceedings 33d annual session of D. G. L. No. I, page 103) : "A godsend to some, it was a burden to none. The Endowment fund, in spite of all that is said to the contrary, is one of the most impor- tant adjuncts in the District, and we hope to see it secured beyond peradventure for ail time to come. We have no doubt the ensuing General Convention of the Order will find the right method for its perpetuity, and therefore we will make no recommendations at this time '' 175 The committee to whom this report was re- ferred fully concurred in this opinion, and expressed "the hope that the convention of the Constitution Grand Lodge, which meets shortly, will endeavor to legislate upon this subject in such a manner that any doubts that may have heretofore existed in the minds of our brethren, as to the stability of the present Endowment law, may be absolutely and completely dis- pelled." Before examining these endeavors to so legislate in the C. G. L. Convention, and before discussing the causes of its unsatisfactory results, as far as District No. i is concerned, let us re- view the condition of the Endowment fund in the other Districts, at the time preceding said convention. In District No. 2, the membership increased from 2709 in Jan., 1879, to 3070 in Jan., 1885 ; the assessments paid by each member amounted to $15 per annum and the rate of interest earned was fully 7 per cent., increasing the reserve fund annually by about $20,000, or about $7 for each member. No changes were made in its laws, except such as became necessary by the consoli- dation of the three degrees into one only, as 176 ordained by the C. G. L. in 1879, and some amendments, proposed by the Trustees, with a view to improve the practical working of the plan and to perfect some of its details. The most important of these was the change in the mode of collection from twenty post-mortem assessments at 75 cents to ten regular monthly dues at $1.50 (from Feb. to Nov., both in- clusive). This change was made to avoid the irregularity caused by the occurrence of many deaths in one month and none in another, while it was absolutely certain that no less than twenty deaths would occur during each year in a mem- bership of 3000, whose age averaged over 45 years; they would sometimes occur already dur- .ing the first eight months, while under the monthly rates the collection was evenly distri- buted over the year. In 1883 forty-seven mem- bers died (which is 15.4 out of a 1000 or over I J^ per cent.), and for the first time the endow- ments exceeded the assessment-receipts; it be- came also evident that the rate of interest de- clined and no new investments with first-class 7 per cent. In view of these facts the question arose whether $15 per annum would be sufficient to 177 secure the enduring prosperity, the permanency of the endowment institution. In the report of the Executive Committee of the C. G. L. (1872- 1873) I had demonstrated that $15 per annum from each member, their average age being then about 35, and none above the age of 45 to be admitted, would be exactly enough to establish a permanent and reliable endowment fund; and, after the Chicago Convention had blindly re> jected the excellent proposition for a genera endowment of the entire Order, District No. 2 established its own district endowment on that basis. But this was calculated on 7 per cent, interest. That the assumption of this rate was at that time both reasonable and justifiable, is proven by the fact that during more than ten years the reserve fund of District No. 2 was safely invested at a rate considerably above SEVEN /^sible calamities, he sub- mitted two propositions to the Grand Lodge : One, to make a uniform annual assessment, suf^ ficient in amount to insure the payment of the Endowment The other, to segregate the En- dowment fund from the direct control of the District Grand Lodge. Possibly it might be WISE TO combine BOTH PROPOSITIONS. His recommendations were not approved by the Grand Lodge, except as to the appointment of a special committee on this subject, which was to report to the next annual session. In 1885, the same President (having been re- elected) again referred to the thoughts he had expressed in his former annual message and stated that many members ol the Grand Lodge had regarded him as an alarmist. But, since he had spoken upon that subject, our eminent Grand President of the Order, Brother Julius 195 Bien, had expressed his views upon the Endow- ment question,^? so full of anxious apprehension and so fraught with wisdom, that he quoted them in full, saying that "notes of warning from a source so much entitled to our respectful consideration, ought not to pass unheeded.** In view of the near approach of the extra ses- sion of the Constitution Grand Lodge, (to con- vene in New York in March, 1885) he said in his Message : " It is a question which ought to be settled authoritatively by the Constitution Grand Lodf^e in such a manner that the rule of action should be uniform throughout the Order, and that the principles upon which the Endow- ment system shall be conducted will be estab- lished on a basis, so wise, as to avert any possi- ble calamity in our Order, even in the far future.** Grand Lodge No. 4, however, adopted a reso- lution "that we desire no change in our Endowment laws, as at present constituted ; that we find them working satisfactorily and desire no legislation on the matter ot Endow- 27. Report of the Executive Committee 1883-1884." ** Introductory;'* pages 3 and 4. 196 ment which will affect District No. 4/' A com- mittee was also appointed to draft resolutions in conformity with this sentiment, urging the lodges to submit them to the Constitution Grand Lodge. They did so, and not a single lodge of District No. 4 dissented. Thus it is apparent that the majority of its mem- bers still believe that their death rate will not materially increase ; they rely on the salubrious climate of the Pacific coast, on its immunity from yellow fever and, perhaps, from other epi- demies ; they persistently ignore that, neverthe- less, they will all die, and that their average duration of life differs but very little from that of the Atlantic coast. They still consider the accumulation of a large reserve fund impracti- cable and unnecessary though every one of them, individually, wishes and tries to accumu- late wealth. They consider a tax of $15. per annum burdensome, and yet boast that they will be willing and ready to pay twice and thrice that amount of assessment m later years, if necessary ; forgetting that many members may then not be able to pay about $4. monthly, (as the members of the Mutual Covenant Endow- ment Association of Cincinnati, O., are now 197 required to pay) and that, certainly, no young men would then be willing to join. Now, if the members of District No. 4 prefer to be guided by leaders of certain so-called Mu- tual Aid Societies who are unknown and irre- sponsible to them, rather than by the chosen representatives of their own Order, let them get their insurance in those societiei?, or fiom an insurance association of their own outside of the Order^ as is done by Masons and Odd-fellows. Every District is perfectly at liberty to have or not have an Endowment institution. All that our Constitution demands is : that no Endow- ment system be carried on in the honored name of the Order B'nai B'rith which might fail in the fulfillment of its promises and obligations. If our brethren want to carry on a Widow and Or- phan Endowment, as a part of our noble institu- tion and under its jurisdiction^ it must be an honest one ; not what is proven to be a delusion that would end in disaster and disgrace. What cause, then, is there for protests or for revolutionary measures? If I am allowed to give advice or to make a suggestion, it is this : Combine both propositions made by your Presi- dent in 1884. Let District Grand Lodge No. 4 198 enact an Endowment law, in harmony with the late constitutional' enactment, for $t,ooo only, fixing the contributions at $15. annually, giving to unmarried men the option not to contribute nor participate, until they get married, and let those who desire an additional insurapce of $1,000 or more dollars form a separate, optional organization, under any plan or system they may deem proper, apart from the control and responsibility of the District Grand Lodge and of the Order. In District No. 5, an Endowment law was adopted in 1874. It gave to the widow, orphans or designated beneficiary of each deceased mem- ber $1000, to be produced by assessment ; and it established a sinking fund, formed on a basis of 15 cents per member at each death. This fund was to be kept under the control of the several lodges, and from it all assessments in excess of twenty deaths were to be paid. Thus the study of this District Endowment of its struggles for more than ten years offers an opportunity for considering the question as to whether it were better for each lodge to be the custodian of its own share in the reserve 199 fund, or whether it would be more advisable to centralize it and vest its management and cus- tody in one Board of Trustees, Theoretically, it makes no difference which of the two methods is adopted, if the amount be the same, and if it be equally well guarded and invested at interest. Fears of possible mismanagement, petty distrust or local considerations induced men in this and every other District to oppose centralization ; but, practically, this method is by far safer and more advantageous. It is easier to find a few men possessing the necessary business capacity, combined with strict integrity, who will take charge of a large fund and will consider it an honor and a sacred duty to do so; while, among thirty or more lodges, mistakes will sometimes be made in the selection of so great a number of Trustees three from each lodge. Besides, small amounts cannot be as safely invested, often not at all, and losses become inevitable.a^ 28. In 1878 already, Malachi Lodge, No. 146, reported the fact that $360.22 of their Endowment sinking fund had been lost by the failure of a bank, and asked whether the lodge or the trustees were responsible for the loss. The General Committee decided that the Grand Lodge c?n hold only the lodge responsible for keeping the Endowment Other difficulties and complications arise from the divided administration of the fund into many- small fractional parts, as will be fully illustrated by the developments in District No. 5. During the first years the members of this District were not only well satisfied, but quite enthusiastic about their endowment system. In 1876 it had been visited at Savannah, Ga. by that dreadful scourge, the yellow fever. The suffering and destruction among the inhabitants of that section was great, yet the deaths were only 23 out of the 2028 members composing the 32 lodges that formed that District ; and on October i, 1877, the amount of the reserve was already $24,382.71, while $25,000 had been paid for endowments during that year. Nevertheless, amendments were offered and made at every sinking fund intact, and can not know the trustees in this matter. Malachi Lodge appealed ; claiming that " the trustees could not be compelled to pay the same, having deposited the money in a chartered bank nor the lodge, having strictly complied with the law, it would be unjust to expect us to pay the amount again.'* In vain did the General Committee urge the adoption of measures placing the fund more directly under the control of the Grand Lodge. meeting of the Grand Lodge, and more stringent measures adopted for their administration. In Jan., 1878, the President's report to the Grand Lodge states that quite recently the Gen- eral Committee directed him to suspend the charters of three lodges for non-payment of their endowment dues. In the same message the President said: *'The only safety and surety for the perpetuation of the endowment is in the strict enforcement of that part of the law creat- ing a sinking fund. ... Is there a sane man who would insure his life in a company whose receipts only equal its annual disburse- ments ? . . . I warn you, my brethren, as you value the endowment, do not give up your sinking fund." And yet, in 1879, his successor states to the Grand Lodge : ^' In consequence of the excel- lent health in the District, and not a single death during the first six months of the current year, many of the lodges took advantage of this Providential blessing, by adopting laws tending to the ultimate destruction of the sinking fund." In 1880, repeated complaints were expressed against several of the lodges, they having been in arrears for two and three assessments at a 202 time, and asserting that " the law now in force does not serve the purposes for which it was designed.*' The General Committee's report makes the following statement: ^* By our present law the custody of the fund is entrusted to the lodges, but the same law also makes it the duty Of a certain set of officials to receive this fund from the lodge, to invest it and to be responsible for its safe keeping. ' It is true, they are required to give bond for the faithful execution of this trust, but, aside from the fact that such bonds are generally of insufficient security, and the manifest impossibility of the Grand Lodge satisfying itself of the sufficiency of 175 bonds, scattered over and subject to the varying laws of five States and the District of Columbia, they cannot be enforced and the penalty collected without expensive and tedious litigation.'* To remedy this and other defects of the law, the General Committee submitted a set of carefully prepared amendments, proposing to assimilate this law with that of District No. 2, changing the occasional assessment to a fixed contribu- tion, and placing the management of the En- dowment sinking fund in the hands of one board of control, to be elected by the Grand Lodge. 203 But the Special Committee on Endowment recommended some temporary changes only, and a Resolution : ^* That this committee be con- tinued with authority to draft a plan for a re- vised Endowment Law, if deemed necessary, and that they submit their report to the secre- tary of the Grand Lodge ninety days before the next meeting of this Grand Lodge, which officer shall submit the same to the lodges of the Dis- trict for their approval or disapproval, sixty days before such session, when if approved by a two-third majority of all the lodges, and so re- ported to this Grand Lodgfe, the same shall be declared a law." This was, of course, adopted. With what result ? The Endowment Law and its proposed modi- fications were widely discussed in all the lodges discussed by men who have very little know- ledge and a mere superficial understanding of th subject. And when the Grand Lodge of District No. 5 met in January, 1881, it again adopted the worse than useless Resolution, that the further consideration of the subject of En- dowment be postponed until the next annual session and that the secretary be instructed to have printed a sufficient number of the reports 204 of the majority and minority of the Endowment Committee, together with the proposition of Rimmon Lodge, No. 68, with such other matter as may be presented, and that in due time such information be forwarded to the several lodges. In vain had the worthy president of the Dis- trict Grand Lodge urged immediate action, as follows : " I recommend to your favorable con- sideration the amendments to the Endow- ment Law proposed by the special committee. I am prompted to do so because I believe a change of the existing law absolutely essential, in order to secure a prosperous future for our institution. ... If the present system shall be continued, it can be demonstrated with mathematical precision that early in the next century the heirs of members must be deprived of their promised legacies. This result is the inevitable sequence of the action of the spend- thrift, who improvidently lavishes more than his income, and in a few years becomes bankrupt. Taking the past decade for our guidance we must admit that if the present law remains in- tact, the death assessments will be multiplied until they will become a heavy burden, and thereby prevent an infusion of youthful blood 205 into the infirm body. . . . It is therefore our duty to enact a law that will improve the present system, and arrest the future danger that threatens to weaken the resources and strike at the vitality of the Order." . . . '* Recent irregularities and violations of law by some of our lodges in the mode of accounting and investing this fund, and the dilatory action of other lodges in transmitting the assessment for deaths, prove that its transfer to the Grand Lodge would not only be most judicious, but highly advantageous from every point of view. It would then become a sacred trust fund, the account of which would be correctly kept and promptly rendered ; each member would know the exact amount he was required to pay ; the assessments would then be promptly settled, the principal and interest invested in accordance with law, each year swelling its volume, until it shall have augmented to such a sum that the in- terest accruing therefrom will materially decrease the future taxation of each member of the District." " I can present no stronger argument in sup- port of the proposed law than to state that a similar system has obtained in District No. 2, ao6 where it has been in practical operation with most favorable results for the past seven years. . The experience of a sister jurisdiction, where the plan has been fairly and favorably tested for several years, is an exhaustive argu- ment in its favor.'' But the representatives did not listen to arguments. They preferred to refer the subject to their constituents to the ** sovereign lodges." It is the curse of democratic governments that the most ignorant people claim equal suf* frage in determining all questions, regardless of the degree of knowledge they possess regard- less of other qualifications which an intelligent and able consideration may require. They are free men, hence they deem it their prerogative to decide what they wish or wish not to do, they will not concede that others may know better what they should do. The more intelligent among the people expect and demand of their representative that he fully inform himself and decide in his wisdom, according to his honest conviction, what is best for the people. But most representatives prefer not to take this res- ponsibility ; they hesitate in adopting measures 207 of whose excellence and justice they are sure, su-nply because they have no faith in the intelli- gence of the majority of their constituents, and are swayed more by their fear of the noisiest and most ignorant of these, than by a longing for the silen: praise of the best and wisest men, or of their own conscience. Is it to be wondered then, that the average member, seeing his chosen representative waver- ing, disregard mg the voice of science and the lessons of experience, coming home to ask for instructions, instead of teaching is it to be wondered then, that the people lend their ear to fallacies, and do not recognize them as such until they have to suffer from their bad results ? Goethe lets his Mephisto truly say : "fStxd^tt ttur 93ernunft unb 3BtJTenf(^aft SaJT nur in 33lenb*'nb 3<^^^^^ totxUn ^id^ i)on bem Sugengeijl U^axUn @o ^abMcl bic^ f^on unbebfngt." Thus year after year passed away without bringing about the much-desired and much- needed reform in District No. 5. In the year 1881, however, an alarming death-, roll aroused the members to the importance of 208 this matter. There had been no epidemic* From purely natural causes thirty one members (nearly 15 in a thousand) had died during that year, and the District was compelled, under the then existing law, to use considerable of the sinking fund. Difficulties arose in draw- ing on the different lodges for the proportionate share of the fund held by each of them. Circu- lars had to be issued by the general committee recommending the lodges to abstain from mak- ing investments, and the President found it necessary to have the securities of the Endow- ment sinking fund examined and to give special instructions not to install the trustees of any lodge whose accounts were not kept in accord- ance with the law. In order to induce the lodges to consent to a centralization of the sinking fund, the Endow- ment committee proposed that each lodge sur- render the small sum of $7 for each of its mem- bers, but Eliah Lodge, No. 50, proposed to amend even this to two dollars only.29 Neither proposition, however, prevailed. 29. On Jan. 1st, 1882, the District had 2270 members, and the Endowment sinking fund was reported to amount to $48,547, equal to nearly $22 for each member. 209 In view of the experienced great increase in mortality, however, an amendment was adopted providing for quarterly endowment dues of $3.75, payable to the trustees of the lodge. These should invest the surplus in U.S. bonds, to be registered as follows : ''^Endowment sinking fund of District Grand Lodge, No, 5, /. O. B. B., subject to the order of Lodge, No, , /. a B. B. But the registering officer of the U.S. Treasury Department immediately observed that this form of issue leaves the control of the bonds in doubt; and he ruled against this form. In his letter of Nov. 27 th, 1882, he wrote to Dr. S. B.Wolfe, secretary of the D. G. L. : ** Assuming that the bonds belong to the sinking fund of the Grand Lodge, I am of the opinion that trustees should be appointed (if there are now none), and the bonds should be inscribed : * The trustees of the Endowment sinking fund of District Grand Lodge, No. 5, L (9. B. B: " Many other difficulties presented themselves under this system,3o and the President felt justi- 30. Hasmonea Lodge, No. 45, had $5000 of the Endow- ment sinking fund invested in 4 per cent. U. S, bonds, and afterwards had these converted into a 3}^ per cent, certifi- 2IO fied in declaring to the G.L. session in February, 1883, that "the working of this law, on its pre- sent plan, has not been satisfactory." Hasmonea Lodge instructed its representatives to that G.L. session for : " centralization of Endowment fund ; each lodge contributing one-half of its present sinking fund, and the other half to flow back into the lodge fund of each lodge.'* The committee on Endowment presented a report, submitting an entirely new Endowment law, wherein the assessments were reduced to $13 annually ; the management and investment of the funds were to be entrusted to a board of trustees, composed of thirteen past presidents of lodges of this District. The securities and moneys then held by the lodges, as custodians of the Endowment sinking fund were to be sur- rendered to the said board of trustees, elected under this law, and to be invested by said board cate, at a profit of about $600. The lodge held the amount so gained as a portion of its lodge fund, claiming that the Grand Lodge had no authority to inquire into the matter, but" must be satisfied. The general committee, on the contrary, claimed that all profits, premiums or interest de- rived from investments of the Endowment sinking fund must accrue to this fund and be so accounted for. I 211 of trustees in U. S. securities, and registered in the name of : " The Trustees of the Endowment sinking fund of District No. 5, /. O, B, B" (as suggested by the U. S. Reg ) To make this law the more acceptable, or, as the committee expressed it, " to meet the views and wishes of the entire brotherhood in this District," it further recommended that each lodge be exempted from the payment of Endow- ment dues from the ist of April to the 30th of Sept., 1883, inclusive, amountingto$6.5o,and that said sum, instead of being paid to the Endow- ment fund, should be paid into the treasury of each lodge. But this new law was not to take effect unless approved and adopted by a ma- jority of the lodges of this District. The Grand Secretary duly submitted this pro- posed law to the lodges, and in h^'s own report for the year ending Dec. 31, 1882, remarked : ** It is claimea, and with apparent correctness, that similar benefits can be obtained in other institutions and societies for less money. We have said with apparent correctness, but we believe that time will show that our plan of en- dowment is the safest, and thereby necessarily the cheapest form of co-operative insurance. Its 212 present cost is caused by the provision in our law creating and maintaining a sinking fund to provide against future contingencies. This sinking fund is the guarantee, and the only one we have, against an increase of assessments, which must in time become burdensome unless a fund of the kind is provided. We do not be- lieve that, the sinking fund should be tampered with, but should be maintained inviolate, strengthened, secured, and never touched ex- cept when needed." And yet, as shown, the destruction of that sinking fund was demanded by the lodges. The proposed new Endowment law, adopted by their Grand Lodge, after protracted and laborious meetings, sugar-coated all over with so-called liberal provisions, aiming "to meet the wishes of the entire brotherhood," was rejected by the lodges.31 This was the result of their being the custodians of the Endowment fund, instead of its being kept separate, under the management 31. The law was declared rejected on a tie vote 16 lodges voting for and 16 lodges against the proposed En- dowment law. The votes of two lodges were thrown out on account of informalities. It is noteworthy that Jedid- JAH and Hasmonea Lodges had voted for the law. 213 of a board of trustees of the Grand Lodge. Yet, results far more serious were to be the issues of that injudicious measure, dictated and fostered by a foolish local pride and a more than foolish distrust. Are Grand Lodges anything else than the chosen members ot the lodges ? chosen for their devotion to the Order; brothers who, after years of faithful services in different stations, have proven themselves worthy of the confidence of their brethren. At its next convention, in Feb., 1884, the Grand Lodge felt it below its dignity to attempt any further amendments to the Endowment law with the exception of prescribing the form of registry, in compliance with the ruling of the U. S. Treasury Department, as follows . " The trustees of Lodge^ No, yl.O.B.B., in trust for the Endowment sinking fund of Dis- trict Grand Lodge, No. 5, /. O. B. B'' In the month of May, 1884, the attention of the general committee was called to the fact that two lodges Jedidjah, No. 7, and Hasmonea, No. 45 wilfully violated their obligations, and by a vote of a large majority of their members refused to comply with the law (to register the bonds of the Endowment fund ^^ in trust'' oi District 214 Grand Lodge, No. 5), and it was feared that these funds would be made away with. To pre- vent this, said two lodges were suspended, in- junctions were issued and receivers temporarily appointed. A special meeting of the Grand Lodge was called to consider this grave matter; the same was held in Baltimore, Md., August 19th, 1884, and the charters of Jedidjah, No. 7, and Hasmonea, No. 45, the two oldest and largest lodges of the Pistrict, were declared for- feited ; the general committee was empowered to obtain possession of their funds by legal pro- ceedings, and to the loyal members of said two lodges proper protection was secured. Thes^ members at once petitioned for a new charter, and in Sept., 1884, two new lodges. Loyal Lodge, No. 350, and Fidelity Lodge, No. 353, new in name, but old in loyal devotion to the Order of B'nai B'rith, arose from the ashes of the two extinct lodges. Jedidjah Lodge, No. 7, and Hasmonea Lodge, No. 45, appealed against the action of D. G. L., No* 5, to our court of appeals,32 which court 32 . The grounds of appeal, the answer of the District Grand Lodge and the opinions of the court are fully pub- lished with the proceedings of the General Convention held 215 affirmed the action of the District Grand Lodge. The two lodges were lawfully expelled and the appeal dismissed. At the next following annual convention of in New York, March, 1885, pages 191-234. ; all the judges of our court concur, except only J. Moses, dissenting. He bases his opinion for sustaining the appeal on the ground that the forfeiture in the case at bar was ordered at a SPECIAL MEETING of the Grand Lodge. The law of the Order provides that if any lodge refuse to obey. &c. . . , and if such refusal be persisted in until the meeting of the Grand Lodge next following, said Grand Lodge shall de- clare the charter of such offending lodge forfeited." A pro- vision for forfeiture will always be strictly construed and the act will be jealously watched as to its legality. In the circuit court of Baltimore the case was decided in favor of the lodges and that the injunction be dissolved and the receiver discharged. Judge Phelps, of that court, says, in his opinion that : *' It is laid down as a rule, absolutely without exception, that equity never lends its aid towards the enforcement of forfeitures and penalties.*' The Judge seems to ignore the fact, or it may not have been clearly presented by the attorneys of the District Grand Lodge, that the En- dowment fund is a district fund and never did belong to the lodges; furthermore that his decision works a forfeiture against the loyal members of those lodges. The amounts involved are : Endowment fund in custody of Jedidjah Lodge, $9060.45 ; in the custody of Hasmonea Lodge, $8787.25. The case will now go to the court of appeals. 2l6 District Grand Lodge, No. 5, held at Washing- ton, D.C., Feb. 25th, 1885, the firm and dignified action of the President, displayed on occasion:* that threatened the future weal and existence of the District, received the highest commenda- tion. And yet, when it came to adopting his recom- mendations with regard to the Endowment fund, his counsel did not prevail. In his report the President said: *'The lesson to be learned from' the unfortunate troubles of the two rebellious lodges of Baltimore is, to my mind, the most convincing argument that the most doubting could exact, that no Endowment law can be secure unless based upon the requisite of a centralized sinking fund administered by officers directly appointed and controlled by the Grand Lodge. I therefore most earnestly recommend that some measure that will accomplish that idea be at once inaugurated, and the disgraceful proceedings of the past year will, in my judg- ment, never again be chronicled in the history of the Order. . . . .To your earnest, thoughtful consideration I commend this ques- tion as one that involves the permanency, even existence, of the Order We must 217 build a wall around the ark of our Endowment fund that will be a perpetual bar in the future to any subordinate lodge, at its pleasure, con- verting that fund to its own use ; and that can only be done by some system of centralization." The committee on Endowment also recom- mended, with four against one member, that the fund be centralized. The minority report of one^ however, claiming that it would involve an expense, if the majority report were adopted, was put upon its passage and adopted. Also a proposition to reduce the contributions from $3.75 to $3.00 per quarter for this year; but the suggestion of the eminent Secretary of the Dis- trict, that the law be amended " so as to allow the general committee to levy an assessment, sufficient to pay one Endowment, in advance of the actual requirements, thereby avoiding delays, nearly inevitable under existing laws" was not acted upon at all. The argument brought forward that ** it would involve an expense," may be seen in its true light when we consider that, in District No. 5, under the system of keeping the funds in the care, management and custody of the lodges, it requires thirty- four boards of trustees 2l8 and the keeping of its accounts by thirty-four secretaries ; under the system of centralization it needs but one board and only the Secretary of the District, who must after all correspond and keep those accounts with every lodge. But in the one case this may be done but how done ! without pay ; in the other the District Secre- tary might probably be allowed a few hundred dollars of additional compensation. Which is the proper, cheaper, better method ? The late Constitution Grand Lodge has de- cided this point at least. But there is another, far more important rea- son for relieving the lodges from the custody and management of the Endowment fund, namely, the removal of troublesome money matters and their discussion from the lodge- room, whose atmosphere freed from that heavy cloud which darkened its light and caused many a storm might then become clear, pure, more attractive to its members. Should they then fail to make it so, fail to cultivate the higher aims and objects of the Order, the reason could no longer be designated by " all on account of Endowment.'* 219 Let us now look at District No. 6. The progressive character of our Order in this Dis- trict is an established fact ; the best representa- tives of modern enlightened Judaism may be found in its ranks. It possesses a phalanx of brethren who are serving the advancement of the Order with ability, fidelity and unremitting zeal. Nevertheless, as shown in the former part of this study (pages 48-58), this District was un- successful in its attempts to adopt a sound plan; but there is no bitter feeling about it ; their Trustees of the Endowment Reserve Fund wisely said : *' Like all other human devices, our system of endowment has its imperfections, but the benefits, so far, overshadow these, that we can afford to ignore them." Thus, for years, the endowment was carried on, under the fifty cents assessment plan, pro- ducing a small surplus at each case of death. This surplus gradually increasing from $100 to about ^270, as the membership and the number of deaths increased, was erroneously deemed *< sufficient to satisfy the wishes of our most ar- dent supporters of a large reserve fund." Had the membership continued to increase in the same ratio as it had up to 1882, this rate of assessments would gradually have reached, and even exceeded, $15 per annum ; and investing its accumulation at seven per cent, interest, as its trustees did, it would finally have produced the necessary reserve ; but, as their President correctly remarked in his message to this Dis- trict Grand Lodge meeting at Peoria, in Jan., 1882: " Already the history of the last few years shows us that the time for a rapid increase of membership is gone ; the attractions oifered by the Order have been in existence long enough to have induced all those to join who have passed the first meridian of manhood, and, gen- erally speaking, our recruits are now from the young men, and are not more than enough to keep our membership numerically about the same." But the death-rate cannot remain the same In 1876 . . -9 members died. ** 1877 ... 9 " 1878 . . .10 " 1879 . , . 18 " 1880 . . .17 '' 1881 . . . 22 " 1882 . . .28 And the President, directing attention to the 221 fact that it must largely increase in future time, said: "The 2500 members in the District are all bound to die during the next forty years, making an average of over sixty a year . , , and that man must be blind who cannot see that, at some future time, the yearly death-rates will be as much above sixty as they hitherto have been below. But long before that time shall have come, our endowment system, unless put on some enduring basis, will have gone to wreck and ruin, and drawn our Order with it into one common gulf of destruction. . . . The only remedy against these terrible consequences lies in the establishment of a rapidly increasing sinking fund. It should have been established long ago." But, through 1882, the system remained un- changed. Every motion to amend the Endow- ment law, was objected to as inadmissible under the laws of this District, which required a peti- tion of two-thirds of its lodges before any pro- position changing sections i and 2 of their en- dowment law could be entertained by the Grand Lodge. The President, an eminent jurist, doubted the validity of a law depriving the Grand Lodge of the power to legislate, and the 222 restriction was finally repealed ; nevertheless, the same Grand Lodge decided, by a vote of 35 against 23, that at this convention the rate of assessment (50 cents at every death) remain undisturbed. Already at the next Grand Lodge Convention, however, a new endowment law was enacted, which provided for fixed endowment dues of $15 annually, payable in quarterly instalments of $3.75. The Grand Secretary's report to that session showed that, under the system of 50 cents assessments without limitp an emergency may arise, at any moment, compelling the secre- tary to make assessment for an extraordinary number of deaths, in consequence of which many members, especially the younger ones, would withdraw, and the influx of new members 33. The system of 50 cents assessments without limits is theoretically quite sound for a membership exceeding two thousand, as it will produce over $1000 as long as that membership does not decrease ; and the surplus accumu- lated while the number of members is above 2000, would probably cover the deficit when it falls below that number ; but the assessments must, sooner or later, become very burdensome, and consequently this system is impracti- cable. 223 would be stopped for ever. In fact he already had to make a levy for five deaths in the month of July of that year, and members were about to withdraw in great numbers, so that but for the promise of changing the law and limiting the contribution at the next Grand Lodge session, a stampede would have been the result. And thus it came that in January, 1883, the long- desired, oft-defeated system (similar to the one of District No. 2) was adopted, by a vote of 58 to 4: ^^all delegates voting in the affirmative except Bros, Geo, Braham^ Max Stern^ Isaac Weil and D. W. Simoftr But, shortly after the adjournment, a few dis- satisfied members distributed a **remonstrance"34 34. This Remonstrance was a mere reiteration of the sufficiently controverted opinion that * 'one generation should not be made to hoard a large capital for future generations;'' that ** the sinking fund, however large this sum may be in the annual report, may eventually prove to be so only on paper;" that "the law is injurious to the interest of the Lodges of the District, &c.;'* that "it was hastily (!) passed, without du3 notice and proper consideration " and "should be immediately repealed,* for which purpose a special meeting of District Grand Lodge, No. 6, should be called. For all of these statements the remonstrance offered neither proof nor argument. It merely stated that " it would be 224 demanded a call for a special session, and finally agreed that the constitutionality of the new law be tested by an appeal to the court of appeals. Two prominent members a rabbi and a lawyer championed the appeal. The rabbi admitted *' that the purest motives actuated the enthusiastic advocates of that law," and " that only an enormous reserve fund could secure the permanency of our endowments ; " but he best to subdivide the Endowment Reserve Fund, pro rata, to the lodges, and have every lodge keep its own fuid, subject to the disposition of the Grand Lodge. Thereby the fund would always be secure and safe. Vide District No. 5 ! and also District No. 7, whose President said in his message, delivered in May, 1885: " The only argument in favor of allowing the fund to remain in the hands of the different lodges, is the one of safety against defalcation. On the other hand, experience has demonstrated that where the fund is divided into a number of smaller ones, a large pioportion thereof necessarily remains idle and the balance is not invested to best advantage. The income from the fund will be largely increased and its safety guaranteed, if the whole fund be consolidated and placed under the management of a Board of Trustees. Our ex- perience at Vicksburg, with the fund of Enrogel Lodge, must convince the most skeptical, that even under our present system (said lodge holding its own share of the fund), we are not safe against loss.*' 225 thought that it was not legally enacted ; that it was in conflict with the laws of the State of Illinois as he had been told by his brother the lawyer. The latter gentleman tried to make the members believe that the mere change from post mortem assessments to quarterly dues, would sub- ject us to all the burdens imposed upon regular Life Insurance Companies, that it would cause the Attorney-General of the State of Illinois to file information against the District, and that the penalties provided for by statutes as punish- ment for those who prosecute the business of life insurance unlawfully would be incurred. Nobody knew better than that very lawyer, that there was not the least danger of any such re- sult. The statute of Illinois, herein referred to, was adopted in favor of corporations not for pecuniary profit^ and at the request of benevolent organizations intended to benefit the widows, orphans and devisees of their members; the law was intended for our protection; and no attor- ney-General would ever have instituted quo warranto proceedings, on the ground that our society might quarterly collect a stipulated amount. The framers of said statute considered assess- 226 ments as one of the features that distinguished benevolent societies from regular life insurance companies collecting annual premiums. To remove this mere shadow and at the same time comply in form with the State law, the General Committee expressly empowered by the Grand Lodge " to properly frame that Endow- ment law" and ^*see to the correct phraseology thereof" changed the wording of Section 2 accordingly; but this by no means satisfied the appellants. And the appeal was sustained; not however because of a conflict with the State law, but simply for the omission of a formality; the NAMES of those voting for it were not re- corded; three judges only concurring,3s three not voting, and one dissenting! With the ex- ception of two, all lodges of the District had paid the first quarter, notwithstanding the fact that the appeal was then pending. This decision, however, annulled the new law and the District had to be governed by the old one. Had the new Endowment law been main- 35 It was rumored that the vote was 2 for and 2 against the appeal and that the judge from District No. 6, who favored the appellants, finally succeeded in bringing one judge over to his side. 227 tained the increase of the Reserve fund would have been more than double the amount for that year. The Trustees say in their report that in their opinion that the decision arrived at by the court was "prompted by a mistaken generosity/* that the anxiety felt about the safety of the Reserve fund was groundless and had given way to more rational reasoning. Irreparable injury was done by that appeal and its decision; a by far greater harm, a far more deplorable injury than the loss of a few thousand dollars of the Reserve fund. The District was in a vortex of excitement, if not strife. The General Committee itself was di- vided on this endowment question, and though the executive officers tried to steer the ship safely through the tempest aroused by the struggle, there was a decline in membership and the District had made a step backward. A larger number of members than ever before allowed themselves to be suspended for non- payment of dues while the dues were less than in the preceding year. Hence it was quite natural that the President who had most zeal- ously labored to promote the welfare of the in- stitution he so dearly loved, felt discouraged. 228 In his message to the Grand Lodge meeting, held at Chicago in January, 1884, he attributes the situation to "the unwholesonieness of the appeal and the dissensions in the General Com- mittee." He says: **It is to be regretted that the Honorable Court seemingly evaded the rendering of a decision upon the vital points at issue, and apparently resorted to finding a technical flaw. This must have been as disap- pointing to the appellants as to every other member who had interested himself in the case, especially to those fifty-eight of the sixty-two members attending our last year's session, who were happy in the thought of having placed our District on firmer footing than it , had ever been. ** That the Law had worked satisfactorily to all, excepting probably to a small fraction, was shown by the prompt payment of nearly all amounts due to the Endowment Fund. ''Aside of the mischief done by reason of the appeal to the progress of the Lodges, the Reserve Fund is minus about $i2,ooo,wliich if in the treasury, would be at least one important factor in contributing to the stability of our institution. Our members became accustomed to the systematic payment of their dues. The majority ot Lodges that had not already adopted the regular installment plan in previous times, found its workings now admirable for the convenience of 229 njembers and the collection of outstandings, and I can say with the fullest assurance, that had this fire- brand not been thrust into the plans and work of the present administration, I would be enabled to lay before you better results of our labors than I do/* After referring to the breach in the General Committee, eventuating in continuous differ- ences of opinion on nearly all issues and in threats of asking the courts to issue an injunc- tion, he continues thus: "It may be justifiable from a legal standpoint, to clog the wheels of a benevolent institution; it may also be allowable to discuss in pubHc places, highways or halls, the justness of laws and measures, but the motives of issuing inflammatory circulars, threaten- ing prosecution* arousing animosities and the like action must certainly be regarded somewhat inconsis- tent with those requisites, which should form part of men's good intention in an order like ours, especially as impeUing them to protect and assist widows and orphans. It was only through the wise councils of some of our most distingished members that these contaminating influences were checked." And in his melancholy mood, while memory watched o'er the sad review of the past year, he tried to consider some of the causes of the de- cline and the possible remedies. The former 230 appear to him to centre in the Endowment ques- tion. He thinks that before its insidious en- trance in our organization .... few if any of our old members joined the Order B'nai B'rith with the expectation of reaping any benefit in a material sense; he supposed that the bene- ficence to the needy widow and orphan directly bestowed by the Lodges was far in excess to the present advantages, derived from the $1,000 Endowment benefit; he saw in the shadowy past the Lodge meetings well and regularly attended and suspensions scarcely known. The oraer of things has greatly changed, he remarks. The man who does not want his life irsured is excluded from membership; thus many worthy men, men with no selfish purpose in view, are kept out and many would not join us because of the compulsory law, who would do so if this feature were not enforced. The president then proceeds to consider the remedies; and he recommends, first the enact- ment of laws, "making it optional with members and applicants to remain or become endowment members," and he supports this recommenda- tion with warm eloquence. I have dwelt at such length on this president's 231 message because it is the first official document of that kind which has given impetus to this rather popular demand for an optional endowment^ and its author is certainly entitled to highest regard, both for ability and purity of motives. But is it true that many would join if the En- dowment feature were optional ? By no means! Would the former method of each Lodge, giving a small stipend to the widows and orphans of its deceased members, be more satisfactory and become less oppressive ? Certainly not. Those who have **worked and watched " for our Order, those, who, like myself, have long opposed the introduction of assessment-insurance to our bro- therhood, know that the demand /<:7r it was gen- eral and irresistible; know that the failure to in- troduce it in District No. 2, caused the separation of the Southern Lodges, forming District No. 7; know that kindred Jewish organizations owe their rise to the demand for endowment. Many would not join us of late not because they do not want insurance, but because they can get ^t for less in other societies, and some withdrew for the same reason. O, yes, if endowment could be made optional, with the privilege of joinmg thereafter, at afty time, discontinuing and rejoin- 232 ing at pleasure, this would be considered very nice. But it cannot be done under a system of uniform contributions, and should not be allowed under any system in fraternal organizations. In District No. 7 the endowment has lately been made optional to young men until they reach the age of thirty. My proposed Endowment law submitted to the late Constitution Grand Lodge by the Executive Committee, recommended making it optional for young, unmarried, up to age of thirty-five. This is the utmost extent to which optional endowment might be permitted. As soon as a brother gets married and assumes the responsibility of providing for his family it becomes his duty to insure the same against misery and want in case of his demise. And if some brethren, while enjoying health and strength, forget that **Death still draws nearer, never seeming near;" if Others, blessed with ample means and flatter- ing prospects, forget that "Riches take unto themselves wings;'* if some fool pretends to be sure of the distant future, to need no protection, and not to care for the welfare of ^'future generations" ''Yet ne'er looks farther than his nose;** then ^''Let the wise make the rest obey, ^^ ^2>Z The committee on endowment of that Dis- trict Grand Lodge (Jan., 1884) endorsed the recommendation of the President to make the endowment optional ; yet it did not prevail ; nor did the proposition to charge 75 cents at each assessment limiting these to twenty per year, as was proposed in a new Endowment law, pre- pared by the General Committee. Said law was adopted after a long and hot discussion, amend- ed, however, to unlimited assessments at 50 cts.; thus virtually remaining the same as before. At the end of another year, (January, 1885), the President of District Grand Lodge No. 6, reported that " the dissatisfactions and contro- versies of the preceding year regarding the Endowment proved to be a thing of the past under the present law, and peace and harmony prevailed ... It will remain so until the number of deaths will exceed the expectations of those who desire to legislate only for to-day without any regard of what will come to-morrow, and then it will be discovered that the turmoil of last year is only *aufgeschoben nicht aufge- hoben,' and will again break forth with greater force and energy than before." .... 234 ^^ I hope that the Constitution Grand Lodge will be able to solve this problem'' He also favored " Optional Endowment," but says: " Were it not for the vested rights of those who have joined our Order, partly induced thereto by this very Endowment, I would hail with joy the day on which the entire Endowment would be abolished." But the majority of the members will not con- sent to its abolishment. The eminent Trustees of the Endowment Fund of District No. 6, said in their last report: ^' The Endowments paid have proven very beneficial in most cases, and in many instances the only source of revenue and sustenance left to its recipients, thereby not only alleviating misery but furnishing the means for self-support. Let us earnestly hope and strive that we may always be able to give sub- stantial aid; that our system of Endowment be placed upon a basis of permanency, furnishing lasting benefits to those who receive them and happiness to us who sustain this noble monu- ment of our Order." District No. 6, with its young vigorous mem- bership, its salubrious climate, with ample 235 material for numerical increase, with a reserve fund of over $60,000, and further accumula- tion, invested at over six per- cent, interest; this District will be able to protect all its mem- bers' widows and orphans at the rate of $15 per annum. And though, in later years, the advance in age and decline in the rate of interest may make a slight increase of the annual assessments necessary say to $18 then, when the many bubbles of cheap insurance will have burst? this will be readily assented to by the very mem- bers who have heretofore objected to $15. Moreover, this amount would soon be exceeded at the present rate of 50 cents on every death. I cannot doubt, therefore, that the next Grand Lodge will already place the Endowment fund of District No. 6, on a sound and enduring basis; and that the long struggles and ordeals she has passed through will be spared to her future sessions. I hope that those who think that most of our members have joined the Order induced by the Endowment, and at the same time believe it is the Endowment that keeps many men from joining us will recognize the self-contradiction of these two assertions. There are, no doubt, some men who were partly 236 attracted by the natural desire to secure pro- tection for those dearest to them in life when they themselves will be called hence, there may be a few others who are kept from us by the insurance feature, and many more by being offered greater benefits for less money in other societies. It must be our aim to do right; not to please all. Let those who seek only the sham of cheap insurance stay out; let those who joined our Order for no other purpose withdraw in peace. District No. 7, has been the subject of this study in the first pages of this long, sad chapter (Part III). The opinion therein expressed as to the grave errors of its Endowment laws which the late Grand Secretary considered " as perfect as human heads could frame them," has lately been endorsed by the President of that District, who said in his address to the Grand Lodge (May 1885), "The plan formulated and adopted at the Galveston Convention in 1882, depends for its success upon a steady revenue of at least four per cent upon our reserve, and an annual increase of our membership of not less than one per cent. Anything less than these conditions 237 renders an Endowment system unsafe/* But their reserve fund, instead of increasing and accumulating at interest decreases. On Dec. 31st, 1884, it was $5,851 less than on the year previous; it now amounts to less than $12,000. There is, besides, a District Endowment fund held by the various (62) lodges. The amount of this fund cannot be ascertained from the last G. L. report. In the President's address to the preceding G. L. meeting (1884), it was stated that: "the large proportion of the whole fund is uninvested, said to be *in currency,* and bearing no interest; some of the lodges carry their whole fund in this shape. The message of my honored predecessor recommended, and the Dallas Con- vention ordered, that all such sums should be invested, but no attention has been paid to this. I venture the assertion that this currency is not laid up in stockings or safe drawers, nor deposited in bank to the credit or this particular fund; and lodges who allow the trustees to use it, should be made to pay the interest, which, by their neglect of duty, the District fails to obtain." The entire financial condition of the funds for this District is in confusion. In January 1879, after the epidemic, the 238 membership of District No. 7, was 2665, since then it has annually decreased, until in January 1884, it was reduced to 2318. There is no com plete report for the year 1884, owing to the sickness and subsequent death of the Secretary And in the face of these undeniable facts, the members of the Executive Committee for the District^ in February 1885, reported that ^*they regard their own Endowment as near perfection as can be reached.'' Comment is unnecessary. This condition of the Endowment in our various Districts ^threatening the peace and harmony, assailing the honor and integrity of the Order, besides other questions affecting the welfare of our brotherhood, prompted our M. W President, Bro. Julius Bien, to call a meeting of the Executive Committee. He said: "unless the evil is speedily checked, I fear that disturb- ances and disruptions may follow, which it would be too late to heal. I have repeatedly called attention to the seriousness of this question, and to the inevitable consequences involved in a dis- regard or the true principles underlying a safe and secure Endowment law; but my warnings have not been heeded. I see no other way out of the present dilemma, in the absence of any 239 other authority, than through the action of a General Convention, where the representative men of the Order, in their united wisdom, will determine upon the means and measures neces- sary to prevent the Order from being diverted from its true course, and give a fresh impulse to its higher and nobler aspirations.'' The Executive Committee met and resolved that the lodges be communicated with for that purpose. In conformity with this resolution, the lodges were called upon to express their opinion for or against a special Convention; and m that call the Executive Committee stated as one of the reasons which had actuated them to take this step, the following: "The Widow and Orphan Endowment having caused so^reat an agitation in most of the Districts as to overshadow nearly every other object of the Order, threatens to seriously interfere with its pro- gress and prosperity. The Endowment law has been declared to be within the scope of the Order by our last Convention; it therefore behooves the Order to spread such safe- guards around it as to advance rather than to jeopardize the welfare of our Districts and Lodges, and to assign to it its proper position in our bene- volent aspiration." Part IV. The General Cofivention^ ^^8^. A large majority of the lodges voted in favor of holding the proposed special meeting of the Constitution Grand Lodge. The solution of the Endowment question was generally considered to be its engrossing topic. The supreme legis- lature of the Order met at Tammany Hall, New York, on March ist, 1885, about two hundred delegates attending. The message of ihe President of the Executive Committee set forth the fact that there were also other potent topics demanding serious attention and consideration. This admirable paper, which should be studied by every brother, says with reference to the spirit then prevailing in the Order: " There is a deeply felt want, a want of genuine unity and true fraternal concord amongst our Districts. There seems to be a lack of some tangible object which would create closer relations and call into action the Order as an entirety. Material interests, which of late have taken an un- 242 due prominence, may safely be left in the care of the Districts ; they offer no common rallying point ; on the contrary, some of these material interests, as will be shown, have rather a tendency to disturb the har- mony of our Order and to imperil its welfare. The old fl?me of enthusiasm must be rekindled if we mean to arrest the growing indifferentism ; the higher principles must again be brought to the fore- ground; the life-giving spirit must be evoked to re- establish the solidarity of the Order, from which we are drifting away. Without it we have no future.*' With reference to the Widow and Orphan Endowment the words of that message are as follows: " One of the prmcipal objects of the Order from its inception was the care and support of the Widows and Orphans of deceased brethren. The provisions made for them in the early days were rather scant, but conformed to the modest demands of the time. With the growth of the Order, the changed con- dition and requirements of life, as well as the natural increase in the number of deaths from year to year, the revenue derived from the small Widow and Or- phan funds of the Lodges proved insufficient, and it became evident that a change in the existing method was necessary. 243 After extend^^d discussions of various propositions made by committees appointed for the purpose, District Grand Lodge No. i adopted an amendment to its by-laws, whereby each member of the District (then numbering over 4,000) contributed twenty-five cents at the death of a brother, and the sum of $1,000 was paid to the Widow and Orphans. This was the beginning of our present Endowment system. In time all the other Districts, from the same neces- sity, adopted the Endowment plan, variously formu- lated into laws, which were changed and altered as occasion demanded, or ill-advised reduction of assess- ments prompted. An attempt, made at the Conven- tion of 1874 in Chicago, to consolidate the interests of all the Districts into a General Endowment for the whole Order, failed, but the declaration was made, *That the establishment of Widows' and Orphans' Endowment Funds is within the legitimate scope of the aims and objects of the Order.' Doubts soon arose as to the permanency of the institution on the plan pursued, and wholesome and sound advice was not wanting. It remained unheed- ed, however, because of a general disinchnation to consider future needs, largely engendered by a clamor for cheap insurance, and a want of comprehension of the principles involved. The progressive death rate brought with it addition- al taxation, which threatened to become oppressive, 244 and beyond the means of many brethren, if not check- ed by remedial legislation. District No. 2 alone adopted a law insuring the permanency of its endowment. District No. 7 unwisely mcreasing its endowmenc to $1,000, surrounded its law with some safeguards. District No. i, in the face of strenuous and con- tinued opposition, has still accumulated a reserve fund, which as yet is by no means sufficient, but all the attempts of the better informed and well-meaning brethren have failed to make adequate provision for the future. Districts Nos. 4, 5 and 6. the first with an Endow- ment of $2,000, have repeatedly changed their laws, and with some improvement, but ty no means meet- ing the requirements of the case ; while Districts No. 3, has made no provi^^ion whatever for future demands that will assuredly be made. It is fifteen years since the endowment law was passed in District No. i, and a crisis is approaching in this, as in other Districts. A feeling of uncertainty, of lurking danger, has become widespread; fallacies, which appeal powerfully to the ignorant and mercenary, such as to perpetuate an average age by the accession of new members^ and to profit by it in obtaining a large life insurance by small payments, have at last been generally dis- sipated, but without changing the fatal course, lead- ing inevitaWy to disaster. 245 To aggravate the situation, many of our brethren have affiliated with other Jewish societies offering endowment benefits similar to our own, and for no other apparent purpose than to secure a larger amount of cheap life insurance. Th^ burden thereby assumed has proven too heavy for many, hence the outcry against onerous taxation and the constantly swelling list of suspensions for non- payment of dues. An agitation detrimental to every other interest has consequently been kept up for several years. In Grand Lodge meetings the endowment is the pre- dominant, all-absorbing subject of interminable, passionate and profitless discussion. Lodges have taken a threatening attitude, and complications aris- ing out of this question have already led to the ex- pulsion of two of the older Lodges from the Order^ A solution of this problem must be speedily arrived at, as it is evident that a continuance of the present state of affairs will defeat the benevolent object sought to be attained, bankrupt existing endowment funds and carry in its wake want and distress to many homes, as well as destruction to a portion, if not to the whole Order. Widows' and Orphans' endowment funds have been sanctioned by the Constitution Grand Lodge ; it becomes now its solemn and imperative duty to avert the dangers which have arisen from their establish- ment. 14^) The endowment fenture must either be entirely eliminated from the Order, relegating to the Lodges the support of their widows and orphans, as their meaos will permit, or a District Widow and Orphan Endowment law, permanent in its character, honest, just and equitable, must be engrafted on our Consti- tution. Such a law should be based on principles tersely stated by Brother Bush : I. Man is mortal, and the inevitaole decline of life cannot be neutralized by adding more lives. a. To pay out a certain sum at the death of every member, the aggregate amount must also be paid by the members. 3. As some men die before they can have paid as much as their beneficiaries receive, others must make good that deficiency. 4. This deficiency must be made good by paying in the early years a sum sufficient to accumulate a reserve which, increased by interest, will balance the deficiency. " Such a law has been prepared by Brother Bush. It is presented to you with my earnest endorsement. Its adoption will ensure for all future time the incalculable benefits, of whiuh the past has furnished a brilliant example, it will open the doors cf our Lodges to men at the best time of life, who have, until now, been excluded by the limitation of age, and by ending a hurtful agitation, give way to a calm pur- suit of our intellectual and ethical aspirations, and 247 attract to our ranks the young men of Israel, who are our hope and reliance for the perpetuation of our beloved Order.^ Against his desire the writer was appointed I. This proposed Endowment law is published as Ap- pendix No. 3 to the *' Proceedings of the General Conven- fion of the I.O.B.B., held in New York, March i-6, 1885," pages 237-24-5. Before proceeding any further, the originator of that law wishes to state that he has been materially aided in framing the same by some of the ablest brothers of the Order. It was one of the chief aims of the framers of the law to make it as satisfactory to all reasonable demands as was possible without sacrificing any fundamental principle of justice and safety; and yet under that unwise and unjust system of representation now fortunately abolished its acceptance by a two-thirds majority of the delegates elected, was doubtful. This doubt grew as propositions from different lodges and members were presented. Some asked for a consolidation of all Districts under one general Endowment law ; others protested against any and every interference with their District Endowment. The author of this Study has not thought of proposing a consolidated Endowment fund. For, however wise and beneficial such a plan would have been, if adopted in 1874, the condition of the District Endowment funds of that time differs so widely from that of the present Endowment funds, and these differ so widely from each other, as to make it altogether impracticable. 248 Chairman of the Committee on Endowment. This committee consisted of eleven members from the various Districts, and held protracted sessions. Though unanimous in cordially en- dorsing and recommending the proposed law-^ yet the eighteen dollar clause was strongly ob- jected to ; it being held by some that in their Districts the annual contribution need not be more than fifteen dollars. In vain was it repre- sented to them that the great desideratum was a UNIFORM rate and a complete law which would free the Grand Lodges from all further discus- sions and dissensions concerning Endowment legislation; that $18 was certainly safer; that in case of a continuance of favorable conditions of mortality and interest in any District, its Grand Lodge would, in later years, be enabled to en- tirely exempt its members after reaching the age of seventy five from paying any assess- ments; a feature much to be desired, but impos- sible of accomplishment at less than $18. In vain were these and other arguments used ; the majority of ihe committee declared itself ready to sign a report in favor of adopting the law as recommended by the President of the Execu- tive Committee-f J^romded the rate be changed to 249 **NOT LESS THAN $15 ANNUALLY.'* The dele- gates of District No. 6 sent assurances to the committee that, if so amended, the proposed law would receive their almost unanimous vote, but not otherwise. Several members of the com- mittee would not decide whether or not to sign such report, until submitted to them in writing. Hence the chairman felt himself instructed to report as follows : *'We fully recognize the fact that, with advancing age and the inevitable increase of mortality, the endow- ment system would becoire very burdensome and end in disastrous failure, unless it were placed on a sound and enduring basis. "Attempts to improve the prevailing system and provide for the necessary reserve funds have absorbed the time and attention of most of our Grand Lodge sessions, without satisfactory lesults and to the great detriment of the progress of our lodges. " The experience of the last decade has fully de- monstrated the fact that there is no hope of obtaining a correct, sound and enduring endowment system through District legislation before, it would be too late. Some may think that it would be of no great consequence were the endowment system to fail, argu- ing that the Endowment Fund is not the Order B'nai B'rith; and that, having existed, grown and flourished 250 without endowments, it could again exist without them. ''Certainly it could had they never been introduced ; but, having been introduced, and being at present a part of our Order, we deem it incumbent upon us to make our endowment system an honest and per- manent one. Were we to maintain a delusion, making it impossible to keep faith with our brethren; were we to permit and sustain a deception, it would become disastrous to a great number of our members, a dis- grace to our Order, and consequently its ruin. " The undersigned members of your committee, therefore, have arrived at the conclusion that it is the duty of this Constitution Grand Lodge, and would be to the best interest of our fraternitv, to pass a law which shall be binding on those Districts of our Order that intend to carry on and maintain an Endowment Fund. " Should the members of any District prefer to per- severe in Its present scheme, those members might form a separate organization under whatever name and jurisdiction they please, but such organization should certainly not be allowed to bear the honored name of the Independent Order B'nai B'rith, nor to form an integral part of our Order. " The law which we submit for your consideration and adoption is, with some few modifications, the one prepared by the Chairman of this Committee, and com- mended to you by the President of the Executive Coromittee in his message to this Comvention. " It is not a plan for one General Endowment Fund, but merely a safe guide for every District 'desiring to carry on and maintain an Endowment Fund/ in con- ducting it on a sound and enduring basii; it is a system, not merely theoretically correct, but which has been tried and has proved eminently successful in District No. 2. ** It has, besides, some new, liberal and beneficial features, which would prove of value." The only material change made was, to strike out $18, and insert in lieu thereof the words, "not less than fifteen dollars ($15) annually for each participating member;" and the report expressly states that : "While the Chairman of the Committee may be fully justified in proposing $18 annually, as the lowest amount required in some Districts for the safety and perpetuity of the Endowment we believe that in Districts with a younger membership, and where the investment of funds at a higher rate of interest than five per cent, can safely be made, the annual contribu- tion need not be more than $15, at least for the present." This report was signed by six members of the committee the others signed a minority re- 252 PORT, which " cordially endorsed the plan sub- mitted by Bro. Bush as a wise, efficient and satisfactory scheme of Endowment tor the Districts; but, in view of the local statutes of several States of the Union, the difficulty of avoiding any infringement of contract rights, and the legal complications that must necessarily arise in the attempt to enforce a law obligatory upon District Grand Lodges adopting the en- dowment feature it would be inexpedient and impracticable to recommend, at this session, the passage of a system of endowment operating alike upon all the Districts." The reports were considered together, and a very animated discussion ensued. Bro. Sifhon M. Roeder of New York, Vice- President of the Convention, from District No. t, made an eloquent speech against both reports; appealing to the Convention not to send the delegates home without settling this burning question. He believed that, for District No. i, the rate required would be no less than twenty dollars; but, relying on the expert knowledge of Bro. Bush, would have been satisfied with eighteen dollars. The members of his District 253 were now paying very nearly fifteen dollars and under its present system of paying 14 cents per capita for each death up to one and a half per cent of its membership their annual con- tribution would soon reach or even exceed $18; but by adopting a law which sanctions a rate of $15, every advance would be obstructed. The young men, though willing to pay more, in order to lighten che burden of their elder brethren, were not willing to pay for the benefit of those only who might die during the next score years, after which nothing would be left for their own protection. Bro. J. HiRSCH, of Vicksburg, author of the minority report, made flattering comments about the proposed law but, at some length and with great force, presented the legal difficulties. In his District (No. 7), especially where an Endow- ment of $1500 was guaranteed, the reduction of the benefit to $1000 would be looked upon as a violation of the sacred character of funds accumulated under that promise. In his Grand Lodge he would use his best efforts towards securing, in a legal and peaceful manner, the adoption of an Endowment law, similar to the one proposed. 254 There was much noise and confusion in the Hall, and it was often impossible to hear what was being said. Some speakers seemed to censure the chairman of the committee for hav- ing abandoned his position, in reporting con- trary to his own opinion. But, as a reply, he referred, in his address to the Convention, to the report wherein he had distinctly stated that the members of the committee had instructed him thus to report. He said : "If it were your intention to erect a building, strong and enduring, you would not devote yourself to the study of architecture and engineering, you would not ask your physician, your banker, or your tailor, as to how you should proceed ; you would consult an expert architect, who knew what you wanted; you would let him make the plans and estimate the cost. You now wish to erect a tower of protection, an institution that shall stand for centuries to come, shall brave all storms and be equal to all emergencies, not only tor a certain number of years, but for ever. Your will may determine what kind of protection you wish to insure, for what amount you wish to provide; but you cannot say you will do so with so many cents of assessments, or so many dollars a year. 255 The plan for the foundation and construction as well as the computation of its cost must be made by the scientific expert. Being possessed of some knowledge on this subject the result of many years of study and experience I have made the plans, estimated the cost, and after careful consideration, due examination, and consulting with other experts, I have submitted the plan and cost for your investigation and action. Your committee endorse the plan with rare unanimity, but believe that in some localities the cost will be a little less than in others. This may be. It is the duty of the chairman to report as the committee have instructed him. It is for the collective wisdom of this Convention to decide what it deems best." Thereupon Bro. Simon Wolf, of Washington, D.C., presented the following substitute for both reports.2 2. Bro, S. Wolf offered his substitute verbally only. The secretary, Bro. Alfred T. Jones, wrote it down, and both kindly submitted it to the chairman of the committee for correction. This correction was made hastily many members pressing for a recess and an imperfect wordmg was the result. But it was wisely ordained by the Conven- tion (Proceedings page 157) that the Executive Committee 256 WIDOW AND ORPHAN ENDOWMENT LAW. Sect. I. The creation or maintenance of any en- dowment system by a District Grand Lodge shall be left entirely to the option of such Grand Lodge. Sect. 2. If any District Grand Lodge shall decide to enact a law providing for the establishment of an endowment system, or has enacted such ^aw and desires to maintain the same, then in such case the annual assessment shall be fixed at a rate of not less than fifteen dollars for every one thousand dol- lars guaranteed, or in the same proportion for a fractional part thereof. Sect. 3. Any fund that may be created under the provision contained in sect. 2, shall be under the absolute control of the District Grand Lodge, and not of the individual lodges. Sect. 4. This law shall go into effect April ist, 1886. A motion to amend by inserting '* sixteen " in place of fifteen, and a further amendment offered to substitute "eighteen *' in place of fifteen or sixteen, were both rejected. have power to make verbal and grammatical changes not affecting the sense. The substitute was offered, in- tended and clearly understood by all members present as quoted above ; and the original wording does not admit of a different sense any attempted interpretation to the con- trary notwithstanding. -^ 257 This proves that it would have been worse than useless to present a report in favor of the proposed endowment law, without the change asked by the committee. The previous question being ordered, the substitute proposed by Bro. S. Wolf was voted upon. There were 109 votes in the affirmative and only 48 in the negative ; it was therefore declared duly enacted as part of our Organic Law. Bro. Thalmessinger then offered the following resolution, which was adopted without dissent : '''Resolved, That aside from the Widow and Orphan Endowment Law just passed by this Convention, the plan submitted to the Convention by Bro. Isidor Bush on that subject is earnestly recommended to the consideration of the Lodges and District Grand Lodges, as representin?: a valuable guide to those who desire to see the endowment fund firmly estab- lished.'* The brief law adopted by the Convention en- forces the same fundamental rules as are con- tained in the proposed law, as submitted by the committee. By changing the originally proposed endowment law, especially as to the tax, from " eighteen dollars " to " not less than fifteen 258 dollars," the main point of contention, the RATE, would have been left undetermined, and the object intended by the framer of that law the uniformity of the endowment and the re- moval of this subject from the forum of the District Grand Lodges could not have been attained; it seemed preferable, therefore, that the organic law should simply establish the basis on which the Endowment system must be reorganized in each District, or else discontinued. In promulgating the Constitution of the I. O. B. B., as revised and amended by the Conven- tion, the circular of the Executive Committee of April 25th, 1885, contains the following words in reference to the Widow and Orphan Endowment Law: "It is just and right, that such a benevolent prevision should be surrounded with the proper safe- guar'is, to secure an honest and certain fulfilment of our promises, and in this view the Convention has disposed of the vexed question. ** It is left optional with the District to have an Endowment Law or not nor has the amount to be provided for been limited. But a minimum annual contribution has been fixed upon below which no Endowment law can be safely cairied out, nor will hereafter be permitted to exist in the Order. Wher 259 ever this minimum should be found insufficient, it is left to the respective District to make a proper adjust- ment adapted to its condition. *' It is earnestly hoped and strongiy recommended that all Districts will at once loyally harmonize their Endowment Laws with the Constitutional Enactment, and wisely and calmly adopt such measures as will make them safe and permanent, and thereb> forever remove an element of disturbance and discord.*' Whether or not this will be accomplished, whether wise counsel will prevail and measures be adopted securing the much desired end; or whether the struggles of the past will have been in vain, the hopes for a harmonious adoption of safe and enduring endowment laws by our District Grand Lodges be again disappointed, the near future will show. 3 A study of the history of our Endowments, from their inception to the present day, must surely aid in a correct solution of this problem. Even three hundred years ago. Sir Walter Raleigh already said: ^*we may gather out of 3. A few of tthe members, plotting the disruption of the Order, may attempt to deny the right of the Constitution Grand Lodge to legislate on our Endowment, forgetting that the Constitution Grand Lodge is supreme, and they have sworn to obey its laws. 26o history a policy no less wise than eternal; by the comparison and application of other men's fore- passed miseries with our own like errors." And Carlyle, the great historian of this century says: " History is Philosophy teaching by experience." Very few legislators, however, study history; and popular delusions^ distrusts and prejudices^ long and deeply rooted in their minds, will again have to be fought. (i). Delusions about ^^cheap insurance^*^ opposing a large reserve as unnecessary, have been amply controverted in the course of this study. If smaller amounts were paid in the beginning, much larger amounts would have to be paid in future years, when the members would have become of a more advanced age and finally the tax would become too burden- some to bear. No assessment insurance, with- out large reserve fund, can practically extend beyond the age of 60 or 65 years.4 There is, 4. At the age of 65 the mortality (American Table) is 40 in 1000, increasing with each year until at the age of 70 it is 62 out of 1000; at 75 years it is about 95 deaths in 1000 ; hence the annual net cost of risk must be just as many dollars for one thousand dollars. Add to this the Insur- ance Companies' charge for expenses of management, 26 1 no hocus pocus in existence, whereby men can receive more than they contribute, except by an accumulation of interest. Those who promise larger benefits at much smaller expenses are sham concerns, Cornelius Walford, an insur- which is about $5 annually on $1000, while in our fraternal endowment it is less than 50 cents per annum for the same amount (as we employ no agents, pay neither commissions nor salaries, except to one District Secretary)} and the thinking brother can easily form his own judgment about the pre- tences of cheaper insurance in other societies. But facts speak louder than all arguments, The following figures are taken from the most prominent associations' own reports for 1884 to the Insurance Department : (A). Showing the present cost per $1000 insurance in some of the oldest Assessment Societies : The United Brethren Mutual Aid Society of Lebanon ^ Pa.^ established 1870. Insurance in force $11,702,000 amount paid by members, ^470,972 ; cost per $rooo=$4o.27, Ohio Mutual Relief Association. Cincinnati ^ O.^ established iZt^, Insurance in force, $1,686,000 -amount paid by members, $48,530 \ cost per $1000= $28.78. In many of the older societies the insurance in force is no definite amount (B). Showing the ratio of expenses to losses paid in some of the leading Assessments Societies : Mutual Reserve Fund Life Association^ New York City. Losses paid to members, $479,967 - expenses paid. $300,306. Ratio of expenses to claims paid, 62.5 per cent. 262 ance scholar of world-wide reputation, replied to the question : whether he considered it an impossibility for an assessment society to suc- ceed ? " No, I certamly do not, provided the fundamental principles governing life insurance be fully and properly recognized; but these very principles seem to be entirely disregarded by the assessment societies working on t is con- tinent/' The testimony of impartial experts, the advice of our most devoted fellow-members, facts and figures, experience and common sense all com- bine to disabuse our brethren of these delusions; and truth will finally conquer. (2). Distrusts, a fear of dishonesty and mis- managementby the centralization of a large fund and by placing it in the hands of one Board of Trustees -has also been shown in its Fidelity Mu'ual Life Association^ PhiladelphiUy ha. Losses paid to members, $51 129 expenses paid $51,910. Ratio ot expenses to claims paid, 101.5 per cent. North- Western Masonic A id Association^ Chicago^ III. Losses paid to members, $468,997 expenses paid, ^,728. Ratio of expenses to claims paid, '^1.3 per cent. IV. & O. Endowment Fund^ District Grand Lodge^ No. i, J.O.B.B.. New York. Losses paid to members, $ 100 000 expenses paid, $2066. Ratio of expenses to claims paid. 2.0 per cent. Sapiente Sat. 263 futility. The history of District No. 5 has illustrated the great evils of charging the lodges with the custody and management of fractional parts of the endowment fund ; while no District that has placed its fund in the care of one Board of Trustees has sustained any loss what- ever. Moreover, it should be remembered that the reserve fund being from time to time in- vested, as it accumulates, in bonds and mort- gages, there are never more than a few thousand dollars in cash money on hand, for which the treasurer gives ample security. True, we often hear of defalcations ; but it is no less true that innumerable more trusts are honestly discharge^^d. The hundreds of millions held in trust and annually paid out by our monetary institutions to rightful owners and beneficiaries, provide the truest evidence this argument may require ; and only the vilest carper will hint that we have no honest, trustworthy men. (3). Prejudices. There prevail, among some of the best and brightest of our members, pre- conceived opinions of a more respectable char- acter notions which, though incorrect, still seem to be none the less firmly rooted. The men possessed of these notions think the endow- 264 ment to be, after all, nothing different from ordinary life insurance ; they believe that it should be optional s that it is selfish, not ger- mane to the objects of the Order not a CHARITY. The wonderful growth of life insurance, especially in this country 5 notwithstanding the failures of many mismanaged companies, and the distrust cast thereby on all similar associ- ations present the most eloquent testimony and 5. Policies in force at end of 1884, in twenty nine regur lar Life Insurance Companies, reporting to the Insurance Department of the State of New York, amounted to $1,870,728,059.00 in 750,567 policies. Ten of lhes>e com- panies hold assets amounting to over two hundred and sixty million dollars ! There are a number of smaller in- surance companies, doing a local business only, and not reporting to the New York Insurance Department. Then there are, besides, the numerous assessment, or so-called co-operative insurance societies and fraternal organizations, wherein over a million people have placed their dependence for the future protection of their widows and orphans. The aggregate amount of life insurance now in force in the United States of America is fully five thousand million DOLLARS. View this as we may it proves one thing beyond all doubt : that millions of people recognize life insurance as a necessity. 265 the best proof that ** human science has never devised a more admirable plan for securing at the same time the benefit of association and the independence of the individual." There may yet be and, no doubt, still are some objectionable features in the systems, some defects in the methods of the life insurance business ; but FRATERNAL INSURANCE, divcstcd of all Specu- lative features, of all opportunities for profit or dividends, either to the insured, while living, or to the managers; simply providing a certain protection and assistance to every brother's widow and orphans this cannot be considered a mere business. Life insurance is recognized as a moral and social duty for every man of family, and especially for the man of small means. What right has a man to become the head of a family, knowing it would be in utter want the moment he dies ? Only the man void of all noble, generous feelings, caring for nobody else not even for his wife and children, only he can refuse to deny himself five cents a day, to forego, perhaps, one glass of beer or a cigar in order to secure to them the endowment of one thousand dollars, that may protect them from want in the event of his death. There is a class z66 of selfish men, who say : " Let the women and children earn their living as we did.*' These are men with whom duty is nothing, greed everything; but such men, if such exist among Israelites, cannot be B*nai B*rith. Furthermore, to protect the widows and orphans of our de- parted brethren is one of the principles and objects of the Order, and would be no less a duty towards the widow and orphans of a brother who might not have contributed were it op- tionalas towards those brethren who had taxed themselves to provide an endowment. Would not this be unjust ? Would we not thereby rob the unselfish brother for the benefit of the selfish one? Then it certainly is proper and germane to the objects of the Order that every member be required to contribute to the Widow and Orphan Endowment Fund. And he should do so for his own sake as well, as it tends to preserve self-respect and freedom from anxiety. Let the wealthy brother, whose family is amply provided for (and such are but few), bequeath his endowment to his lodge for the benefit of its poorer members (as some have already done). " O, what a precious comfort 'tis to have so many, Like brothers, commanding one another's fortunes. " Timon of Athens 267 Some eminent, but too idealistic and not very practical, members of the Order believe to stig- matize the endowment by saying : " It is no charity." True, it is no charity "that renders good for evil, blessings for curses ; " it is some- thing far superior : it makes charity unne- cessary; it does "on mutual wants build mu- tual happiness." Which one of us would ever wish his wife and children to depend on charity? In days of old our fathers prayed at the con- clusion of each meal that ours may never eat the bread of charity. We, as B'nai B'rith, offer the same prayer in our way ; to do good, to work and watch for ourselves and our fellow- men, is our form of prayer. Therefore, let us not be misled by glittering phrases concerning higher objects of our Order. There are but few higher objects than that of providing mutually for our widows and orphans. ** He gives but little who gives his tears ; He gives his best who aids and cheers ; He does well, in the forest wild, Who slays the monster and saves the child ; Bui he does best, and he merits more, Who keeps the wolf from the widow's door !' Let US do this honestly, wisely; and, ''^sustained and soothed by an unfaltering trusty approach our Endr CONTENTS, Part I. EARLY HISTORY. PAGE Protecting the W. and O. one of the tenets of the Order 3 First method inefficient and unsatisfactory. Report, 1866 4 Question of benefit. Resolution of D.G.L. No i, 1868 5 First District Endowment law ; warning voices . 6, 7 Friedlein's Statistical table 1 85 1- 1 868 . . 7 Appeals against Endowment laws . . .8 Causes leading to their adoption ; except in District No. 2 . . . . . 9, 10 Separation of the South predicted . . .11 Opposition in Cincinnati, O. ; Local Endowments 1 1 G.N.A.*s message on this subject, Jan., 1872 . . 12 A future solution of this problem . , . 12 A plan with graded assessments adopted . 13,14 Declared unconstitutional, agitation continues . 14,15 Consolidation of Endowment funds suggested . .16 A general Endowment plan recommended . . 17 Antagonized by the Jewish Press . . .18 Delegates to Convention instructed against it . 19 A District EndDwment law submitted ; defeated 20, 2i Resolution adopted by the Convention . . 22 The delegates of District No. 2 determine on calling a Special Session of their Grand Lodge . . 23 Adopt an Endowment law framed on the plan recom- mended for a General Endowment fund . 23 270 Part II. 1874-1879. PAGE Our Endowment system differs from others , . 25 Standard rules adopted by most Benefit Associations 25, 26 Provisions of our first Endowment laws . 27-29 Reserve funds not thought of . . .30 Difficulties experienced in the beginning . 30, 31 *' Legal heirs'* no sufficient designation . . 32, 33 Endowments confined to members of the family and charitable institutions . . . .34 Management placed in a Board of Trustees . . 34 Beneficial working of the system . . . 35 Opposition to a reserve fund . . . 36, 37 Ascendance of Assessment Life Insurance . 37, 38 Belief that death rate would not increase . . 39 Can average age remain the same? . . 40, 41 Average age no true basis for death-rate . .42 Why brethren not enlightened on this subject . 42 Members begin to doubt the safety of the system with- out reserve fund . . . . 43, 44 District No. i, Endowment Committee recommends to reduce the assessments . . . 45-47 District No. 6, efforts to create a Sinking Fund 48 Authorities on this subject Advocates of Assessment Insurance on same . Delusive arguments of the opposition An Endowment Commission appointed (1877) Report of that Commission (1878) District No 6 A fine preface and poor recommendations The District Grand Lodge rejects both District No. 2. The difficulties overcome j its law sus tained; it gives satisfaction . . 59-64 Its successful working . . . .65-68 48, 49 49 52 49 ->3 53> 54 55, 56 57 58 271 Treatise on * 'Fraternal Endowment" in Executive Committee Report 1878. . 69 The majority continue in blissful ignorance . , 70 Convention of Const. Grand Lodge, 1879 70-77 Memorials and propositions reviewed . . 71,72 Report of Endowment Committee . . .72 Graded Rates considered (in Note) . . 73-76 The convention decides to let each district work out its own destiny . . . . .77 Struggles that ensuedj their results . . 77-80 Part III. 1879-1885. District No. 7, Grand Lodge Meeting, May 1879 Its President recommends the right plan Report of its Secretary who saved the district Opportunity lost and his mistakes His plan adopted; its defects Its unsatisfactory working A report contrary to preconceived notions and an reasoning public clamor Injurious experimenting Plans computed on increase of membership Question of benefit submitted to the lodges District No. i^ condition of, in 1879 **The ship sailing in troubled waters" Special meeting, July 1879 Misunderstood statistics Their correct interpretation Prof. Neilson on friendly societies A harmful peroration . . , *Fraternal Life Insurance is the realization of frater- nity," etc. 81 . 82 82,83 84, 85 86 . 87 n- 88 89, 90 91 92 93 . 94 95 . 96 97 . 98 99 PAGE lOI, I02 106 107 108, 109 , Resolutions ctfered at special meeting . Reports of Committee on Endowment, 1880 Absurdities exposed The Committee's actuary Minority report of one, January 1880 . A uniform rate, within certain limitations, preferable for fraternal societies . . . no 112 Tflj^/^ comparing different methods . . 113 Average age cannot decrease , , . 114 Its advance, from 1874 to 1884 . , 115 Minority report continued . . , 116 Mistakes in calculating . . . .117 Recommendations of the minority report , 118 The three reports laid on the table . . 119 The storm subsided. The delusion continues 120 A special committee appointed in 1882 . . 121 A unanimous report presented, in Jan. 1883 , 122 It defines the position of this fund . . 123 Some statistics . . . . .124-126 Demagogical spirit stigmatized ,. ,. . . . 127 Consideration deferred to next session . . 128 Copies of report distributed. Vain hopes . 129 Prevailing ignorance about Life Insurance . 130,131 Advice of Bro. Julius Bien . , . 132 President's message, Jan. 1884 . . 133 Committee recommend increasing the tax one cent, making it 14 cents . . , 13^ Its insufficiency plainly shown . . ^35, 136 The Chairman dissents . . . 137 The first victory won . . . ,138 Result of the 14 cents tax, to i}^ per cent . 139. 140 Would 15 cents be sufficient ? . . , 141 A little arithmetic , . . 142 273 PAGE Suggestion to **Make it optional'' . 143 Why it should not prevail . . , 144 Table I. Probable results, calculated at i5cts. assess- ments, hraited to $18,00, during 30 years . 146 ** Continued from 31st year, at $20.00. 148 Table II. Probable results, calculated at $18 during 30 years ..... 15^ *' Continued from 31st year, at $20 . 152 Explanatory Remarks: Probabilities . . 154 Probability as to membership . . . 155 Advance of age, how much retarded . 157 Assumed rates of Assessment . . . 158 Interest on the Reserve . . . i59> '^^ Explanation of Tables continued . . 161,165 Why the rate of $18 preferable . . .166 Can other Benefit Associations be better? . 167 Their rates must increase in future ; shown from their own documents . . . . .168 The natural premium plan . . 169, 170 It is ill adapted to Fraternal Insurance . 171, 172 The majority of our brethren do not ponder . 173 They rely on the ensumg General Convention for Legislation on our Endowment . . 174 District No. 2; its membership and funds . 175 Its mode of collection changed from 20 assessments at 75 cents to $15 in monthly dues . . 176 Difference produced by the rate of interest . 177 The Trustees recommend an increase of the Annual Contribution to $18 . . . . 179 It is adopted (May, 1884) by 42 against 17 votes 180 It is re-affirmed with still larger majority (1885) , 182 District No. 3 Struggles to amend her Endowment laws yearly defeated . . . 182-184 274 ^ PAGB Condition oi this District . . . .185 Rate required to secure stability . . 186 It were better to reduce the benefit . . . 187 District No. 4; Protest against the "injudicious measure" of a General Endowment system 189 What its advocates recommended . , .189 The Endowment laised to $2000 without providing for a Reserve fund (188 1) . . . 190 Report of her Executive Committee member (1881) 191 Unwilling to pay for posterity . . . 192 Deficit as to survivmg members . . . 192 In 1884 the President proposes to make the assessment sufficient, or to segregate the Endowment from the D. G. L. or combine both propositions ; refers to same agam in 1885 . . . 193 195 Grand Lodge No. 4, however, desires no change 195, 196 Proposed solution of the difficulty . . 197 District No. 5j its Endowment system j sinking fund under control of the Lodges . . .198 The members enthusiastic about their system . 200 Presidents' Reports 1878 and 1879 , . . 201 In 1880 the General Committee recognizes the defects of the law ..... 202 A new law to be submitted to the Lodges . . 203 In 1 88 1 the different Reports are again to be submitted to the Lodges .... 204 The President urges immediate action . . 204, 205 The representatives again refer it to their constituents 206 By what representatives are swayed . . 207 Difficulties arose in drawing on the Lodges . 208 Quarterly Dues of $3.75 adopted . . . 209 Defective form of registering U.S. Bonds . 209 A new Endowment Law submitted . . 210, 211 275 PAGE Rejected by a tie vote of the Lodges . . 212 The Grand Lodge prescribes a form of registry in accord with the ruling of the U.S. Treasury . 213 Two Lodges refuse to comply . . . 213 Their Charter declared forfeited . . .214 Appeal. Our Court of Appeal affirms the action of the Grand Lodge ; the Circuit Court decides in favor of the two Lodges . . . 215 The lesson to be learned from these troubles . 216 Centralization of the Fund recommended, but a Mino- rity Report opposing this and reducing the contri- bution for this year (1885) adopted . . 2 17 Reasons for relieving the Lodges from the management of the Endowment Funds . . . 218 District No. 6 : its Endowment Planj 50 cents assess- ments at every death . . . 219 Rapid increase of the death rate . . . 220 An increasing Sinking Fund the remedy . 221 A new Endowment Law enacted in 1883 . . 222 A remonstrance and an appeal . . 223 Weak grounds of said appeal . . 224, 225 Appeal sustained on a technical flaw . . 226 Injury done by the appeal and its decision . 227-229 The President considers the causes of the decline and the remedies . . . 230 His views controverted . . . .231 To what extent optional Endowment miofht be per- mitted ..... ^3* Meeting of the Executive Committee called . 233 New law adopted with unlimited assessments at 50 cts. (virtually the same as before) . . .233 President's Report in 1885. His predictions . 233 He hopes that the C G. L. may solve this problem 234 276 PAGE Similar views of the Board of E. F. Trustees . 234 How its Endow. Fund can be placed on enduring basis 235 Charge that men join for the Endowment and that the Endowment keeps men from joining . 235, 236 Our aim be to do right j not to please all . 236 District No. 7. Errors of its Endowment plan. It is recognized as unsafe . . . .237 Condition of its Reserve Funds , . . 237 Meeting of Executive Committee called . 238 Lodges to vote for or against a Special Convention 239 Reasons for such Special Meeting . . . 239 Pakt IV. the general convention, 1885 Message of the President Ex. Committee . 241, 242 A review of the situation . . . 243-245 The Endowment feature must either be eliminated or made permanent, etc. , . . 246 Principles tersely stated and endorsed . . 246 The proposed Endowment law , . . 247 Action of the Committee on Endowment . . 248 Report of that Committee . . , 249-251 Minority Report and Discussion . . 252, 253 The Chairman's Address . . . 254 255 Substitute, offered by Bro. S. Wolf, adopted . 256 The proposed Endowment Law recommended . 257 The organic law simply establishes the basis . 258 Executive Committee's Circular in promulgating it 259 The aim of this study; the use of history . . 260 Delusions facts stronger than arguments . 261, 262 Distrusts unreasonable and unjustifiable . . 263 Prejudices considered ; growth of life insurance 264 Fraternal InsuraTue different from Insurance business 265 It is superior to charity making charity unnecessary 267 D^ ^^n..ir-i^...-ijiD. ERRATA, Page 17, 13th line, 10,000 in number should be "16.000." 43,7th ' accommodation should be '' SLCcumul^tion.'* 43, 19th ' 200 members should be **2ooo." 48.19th " /<5'77 should be "1878." . 55, quotation ends on 19th line. 62, footnote ''25" omitted at end of text. 96, 22d line should be omitted. 135, 25ih line should read "to two per cent.^' 163. from in third line of foot-note should be " for." 165, 4th lin", should read *' ^.'c^d fifteen cents for each death would '' etc. 176, 23d line should read ''first-class sectirity could now be made yielding seven per cent." 180, 22 d line, Investments begins a new sentence. 192, 22d line, 6goo should be "6990 " 192, 24th line, /o 000 should be "10,667." 219, 15th line, " omit commas before and after so far.''' 244. 6th line, %iooo should be "$1500." numbers as far as published may be taken at 'once. ' Subscriptions should be sent to The American Hebrew, 498-500 Third Avenue, 276 PAGE Similar views of the Board of E. F. Trustees . 234 How its Endow. Fund can be placed on enduring basis 235 Charge that men join for the Endowment and that the Endowment keens men frnm ininin or '^tr' ^^-la Prejudices considered j growth of life insurance 264 Fraternal Insurance different from Insurance business 265 It is superior to charity making charity unnecessary 267 Aruch Completum BY Rev. Dr. ALEXANDER KOHUT, BEING A COMPLETE LEX/CON TO THE WORDS OCCURRING IN THE TALMUD, TARGUMIM &^ MIDRASCHIM, This great work embodies th results of the best modern philological research. The Aruch will be completed in forty parts, of which twenty- three are now ready for distribution at two dollars with a reduction to ministers. Parts may be taken either weekly, monthly, or the numbers as far as published may be taken at once. Subscriptions should be sent to The American Hebrew, 498-500 Third Avenue, liberal in Thought, Vigorous in Expression, i Scholarly in Treatment, The American Hebrew, 498-500 THIRD AVE., NEW YORK. 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