To the splendid record of financial benefits provided, hundreds of thousands of families that would otherwise have been left nearly destitute, must be added the incalculable moral, social and educational influence the lodges have had upon American life during the past half century. The benefit orders are a true expres sion of democracy and a fruit of the self-re spect and self-reliance for which popular self government . stands.
Owing to the insecurity of the earlier plans and in some cases to poor business methods numbers of benefit orders have come to grief, while others have found it advantageous to amalgamate. Those that have wisely fore stalled trouble by increasing rates and better ing methods, and the younger orders that prof ited by the experiences of predecessors in the field, have entered upon a new era of develop ment which will be marked, not so much by large numbers as by strength and quality.
The nearly two decades of the 20th century have been troublous for the fraternal orders owing to the agitation and uncertainty attend ing discussion of rate changes and the elimina tion of the endowment or short-term certifi cate, which latter proved as deceptive as the tontine forms of old-line policies and is no longer offered by any reputable society; yet according to the completest showing available, that of the 'Spectator Year-Book,' the follow ing table represents conditions on Jan. 1, 1917: About 100 minor orders are not included in this tabulation. Of the 560 societies included, 380 have $1,000,000 or over of insurance in force. A compilation made by another reliable authority, the Fraternal Monitor, gives the ag gregation of death benefits paid since organi zation by American benefit societies, to the end of 1917, as $2,344,738,818. The amount of sick, hospital and funeral benefits paid by local lodges is not available but the aggregate of such benefits paid by the larger benevolent orders offering them is $624,866,506.
The fraternal beneficiary orders have in re cent years had a yearly addition of 1,000,000 new members, the yearly payment of over $100,000,000 in death benefits, the yearly in crmse of over $1,000,000,000 in insurance is force, and a substantial increase in assets over immediate liabilities.
Some of the larger orders have latterly pro vided old age and disability benefits and many of the local lodges have from the first had in operation special sick, hospital and funeral benefits for such of the membership as wish to share them.
New Standards Set—A long and definite advance in fraternal history was registered in 1886, when, pursuant to a call fathered by the Suareme Lodge of United Workmen, 16 of the leading orders met at Washington, D. C., and formed a federation, entitled the National Fra ternal Congress, with which others soon affili ated. In 1901 a number of orders formed a separate organization, the Associated Fraterni ties of America. The two bodies, by means of yearly gatherings and discussion, proved a good influence in setting standards and develop ing uniform and business-like methods.
The efforts of these federations, not always harmonious at first, at length made for unity of purpose and brought them to actual unity in 1913. The results of many years of experience,
criticism and agitation found fruition in 1910, under the guidance of the National Convention of Insurance Commissioners held at Mobile, Ala., in a model fraternal code, which was slightly modified in 1912 at New York. This so-called Mobile bill, or the later New York Conference bill, was promptly enacted into law by a number of States, and now controls in 37.
During the years when the necessity for more adequate rates was becoming apparent, as some orders made provision for an increase rather than resort to more than the monthly calls that had come to prevail, their action was contested by individuals in a number of cases. The State courts in Iowa, New Jersey and New York rendered decisions adverse to the right of particular orders to adjust their rates, while Connecticut and Texas rendered favorable de cisions. A case was in due course carried up to the United States Supreme Court, which in 1916, in Green v. The Royal Arcanum, gave decision at the hands of Justice Hughes practi cally securing this right to the orders on the ground that a benefit certificate is not a mere business contract but an agreement among the holders for no other consideration than that mutually provided and which all were bound to make good.
By means of the uniform code the charac teristic features of fraternal benefit orders are now written into statute law generally as soci eties having a lodge system, with ritualistic form of work and a representative form of government and making provision for mortu ary benefits, to which may be added benefits in case of sickness, accident and old age, provid ing disability benefits do not begin under the age of 70. Besides provisions for the more responsible conduct of their business and a closer public supervision, the uniform law pro vides for a standard of valuation to be used from 1917 and to which each order must attain by progressive improvement, or else by the end of three years adopt increased rates for new members and hold the funds for such members in a separate lass.
Whole Family Protection.—A new devel opment in fraternal circles is a plan for extend ing fraternal insurance to the minor children of members. The orders have hitherto allowed membership of one or both parents and of minors at the 18. The States of Con necticut, Iowa, Kansas, Maine. Massachusetts, Michigan, Missouri, Nebraska, New Hampshire, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, Texas, Utah and Wis consin had by the first part of 1918 provided for the insurance of the children of members of fraternal orders. A uniform bill for whole family protection, adopted by the National Con vention of Insurance Commissioners in 1916, has been followed in general. The plan of the industrial companies is used with a separation of funds in a juvenile department. Whole family protection is in wide use among the friendly societies of Great Britain.