1903-4.] THE PRINCIPLES OF INSURANCE. 91 
ultimately increased, the payment of the death benefits postponed, and the 
anticipated interest and contribution income augmented. In either case 
the effect upon the sickness claims will be much greater than that upon 
the interest and contribution income. ‘The net result of a high death-rate 
may be summed up, therefore, as diminution of liability, and that of a 
low death rate as augmentation of liability.”’ 
What ought to be done to meet, honestly and justly, the desire to 
secure the benefits in question through fraternal organizations? Clearly 
this, to make the premiums adequate to the benefits. The societies say 
that if this is done, the membership will fall away. Even in the largest 
of these which collect assessments for the purpose from their members gener- 
ally, there was last summer, at the Toronto convention, a division on the 
subject of raising rates, which an exhaustive report shewed to be necessary, 
and the result was that the proposal to raise the assessments was defeated 
and the report was ‘‘not received.” This, as I understand the facts, but in- 
formation is difficult to obtain. The table of actual rates I have copied 
above would provide almost enough for the funeral fund, if the money 
collected were placed at once in safe hands and properly invested on mort- 
gage security at current rates. But that for sick benefits would come wo- 
fully short. 
Taking the case of an entrant at twenty-five years of age, who would 
pay thirteen cents to the funeral fund and thirty-four for sick 
benefits, the liability to pay for his funeral should at once be 
Sstimateds (AupeICents Kats «4c. salons wieislotans.s ateterela « shevalareitersle si arel $29 37 
Also for his wife’s funeral claim (same age assumed).............. 10 02 
The liability to pay $4 a week for his sickness, not lasting over 
SUSAMTOM EMS HL Shee BAr alee chitetorheyshat elo cuateuchecotonh oi avetieva ech obeys tents oleits 82 66 
The risk of paying $3 a week for the second six months costs ..... 9 94 
And that of disbursing $1.50 a week for the rest of his period of 
UFIOSS BES tere tere che teve se soie eicue checs /siaad cxaie aie, w che asc aih, sini s eitevenes 15 76 
$147 75 
To meet these anticipated claims the society has his premium pay- 
ments for life, or, say a value of $18.01 for every dollar, i.e.:— 
Neyer GHA sims sens Gooaoe $73 48 
Hore funeral iirc ta 28 09 
IOI 57 
The society therefore incurs a lability of ..........5...-.006 $46 18 
for every member admitted at twenty-five! 
If now we divide this deficiency by $18.01 we shall at once see that 
the quotient, $5.64 a year, or say $0.47 a month, marks the additional 
sum which the entrant at twenty-five should pay. The management 
fee, which is nearly 35 per cent. of the total paid in, could be easily 
reduced by enlarging the number in each lodge, and then perhaps the 
members might contribute at the age mentioned $1 a month, instead of 
