242 INSURANCE 



advice given by these actuaries; but great numbers of them are 

 still marching on to certain ruin under the impulse of morbid appeals 

 to brotherly love and sentimental twaddle about philanthropy. 

 Everything that has been said thus far regarding fraternal societies 

 is meant to apply only to that portion of the fraternal system which 

 offers definite sums of money to beneficiaries on the occurrence of 

 certain contingencies in return for contributions made irrespective 

 of the terms which the various societies may employ in designating 

 these features of their system. In other words, these remarks apply 

 exclusively to fraternal orders which are also insurance companies, 

 and which no amount of sophistry can make anything else. No 

 reference is made to that other portion of the fraternal world which 

 practices genuine benevolence and brotherly love, and which ex- 

 pends millions of dollars annually in charitable and relief work, but 

 which does not do an insurance business. A root and branch reform 

 of some kind is needed for the first-named class of societies. Possibly 

 a system of voluntary registration similar to that which eventually 

 effected a rejuvenation of British Friendly Societies may be expedient, 

 provided it is distinctly understood that unregistered societies are 

 of uncertain merit. Much can even be said in favor of compulsory 

 registration, provided a reasonable length of time is given to the 

 unsound societies in which to do their house-cleaning. Many leaders 

 among the fraternal orders have recognized the urgency of reform, 

 in evidence of which the proceedings of the fraternal congresses may 

 be offered. In fact, the volume of proceedings of the last congress 

 stands in strong contrast to a similar volume of ten or fifteen years 

 ago in the abundant evidences of a vigorous reform movement. 

 But the organization of the societies is such that reforms are unusually 

 difficult in their execution, and a single effective stroke of the law 

 would suggest itself as the most feasible and certain method of ending 

 a great public wrong. Granting a thorough reform of this phase 

 of the fraternal system, its future prospects appear to be unlimited. 

 Mutuality, self-help, rigid economy, thorough democracy, personal 

 sympathy, genuine protection, are all in the interest of public and 

 private welfare. 



The question of mortality experience and rates is not confined 

 exclusively to fraternal societies. On the other hand, some of the 

 criticisms passed by fraternal societies upon the old standard mor- 

 tality tables can be shown to be partially just by the published 

 experiences of the companies and the studies of actuarial societies. 

 During the year 1903, for instance, the companies doing business 

 in Wisconsin saved approximately $18,000,000 out of an expected 

 mortality charge of over $102,000,000, while on three and one half 

 millions of expected annuities they lost $175,000. These facts show 

 that the assumed mortality was much higher than the actual rate of 



