234 B. H. MEYER 



the population of the world, and then making the populated 

 globe larger, the author does not explain. Still another asserts 

 that the death of some members soon after joining the order 

 does not weaken the association. The first death in the order 

 is a case in point. Our deceased friend held a $3,000 contract 

 and had paid only one assessment of $3. The amount placed 

 in the reserve fund by reason of his death was, therefore, $897. 

 This was loaned at 5 per cent, and brings in $44.85 per year. 

 If he had lived, the most he could have paid in twelve assess- 

 ments would have been $36 a year. Yet the sum that his 

 death added to the reserve fund is earning more than that, and 

 in time will make good the amount paid to his beneficiaries. 

 In spite of such gross fallacies this society is gaining members 

 rapidly in one of our greatest commonwealths. 



It would be a thankless task to rehearse the long tale of 

 failures among fraternal societies. Besides, old line companies 

 and other departments of the mercantile world have had 

 their epidemics of financial ruin. Yet, excepting paper money 

 crazes, history probably affords no parallel to the blind and 

 persistent adhesion which so many people in all parts of the 

 United States have shown to hopelessly unsound schemes of 

 fraternal insurance. An examination of many such schemes 

 leaves upon one the impression that their promoters thought 

 of certain sums of money to be paid as benefits under certain 

 conditions on the one hand; and of certain contributions which 

 it might be convenient to make, on the other; without appar- 

 ently reflecting upon a possible causal connection between the 

 two. The history of such organizations is quite generally the 

 same. A rapid increase in membership, possibly also a simul- 

 taneous reduction in the average age ; a gradual increase in the 

 death rate, accompanied by increasing difficulty in securing 

 new members; an increase in assessments or rates and loss of 

 members, or an attempt to slide along without raising assess- 

 ments; and finally, financial failure. That some fraternal 

 societies are thoroughly sound, financially, and that others 

 have successfully advanced rates and maintained the integrity 

 of their organizations does not affect this general statement. 

 On the other hand, the very fact that an increase in contribu- 



