242 B. F. MEYER 



The report of the committee contains the following expla- 

 nation of this table : Column 2 gives the annual rates for the 

 natural step-rate to age 61, and a level rate from that age for 

 the balance of life. Column 3, the monthly rates as derived 

 from the annual rates, with allowance for slight loss due to 

 that method of payment. These two columns are the basis 

 for calculating columns 4 and 5. Column 4 shows a modifica- 

 tion of the natural step-rate by means of an accumulation of 

 15 cents per month, which is used to reduce the level cost from 

 age 61 to $3.00 per month. Column 5, a similar modification, 

 but with an accumulation of 30 cents per month and a level 

 cost from age 61 of $2.50 per month. Under either of these 

 plans all members pay the same rates at the same attained 

 ages. The purpose in view in these tables is to have a plan 

 that requires but little detail in its operation, so as to be readily 

 comprehended by the officers of the local lodges. It will be 

 noticed that an accumulation is provided for in the rates, of 

 colunms 4 and 5. This is technically a form of reserve, and 

 in so far as these accumulated funds permit the payment of 

 premiums at advanced ages smaller than the cost of insurance, 

 they perform exactly the same function as those performed by 

 the reserve under the level premium system. The expediency 

 of such an accumulation plan can scarcely be questioned. 

 Fraternal societies have suffered again and again from losses 

 in membership due to an increase in the size and number of 

 assessments, or both. Men seem to object to constantly in- 

 creasing payments, and in this lies the inherent weakness of 

 the natural premium plan. It is thoroughly sound. It can 

 not fail, but as a method of doing business it has serious faults ; 

 and, as long as human nature remains what it has been and 

 still is, the natural plan is open to strong objections. Remem- 

 bering that out of every thousand fraternal policies ninety 

 four lapsed during the year 1898, and that in one society 

 nearly 23 per cent dropped out, it is safe to assume that a more 

 general introduction of the natural premium plan can only 

 result in a continued high rate of lapses. The present high 

 rate of lapses is unquestionably the result of a variety of causes, 

 but it seems improbable that a system of premiums steadily 

 increasing with the advancing years of the policy holder should 



