Not every member belonging to a fraternal aid society or some larger organization is fully aware of the risks a given organization assumes by accepting hundreds and thousands of members each month. Scarcely anyone who desires to insure himself pauses to consider what guarantees certain organizations give of paying death benefits, for which they have obligated themselves. The majority of people endeavor to discover the company whose premiums are lowest. Hence, they become victims of many financially unsound insurance companies.

We know from numerous examples that hundreds and thousands of the smaller organizations and societies have failed. Their failure may be attributed to the fact that their premiums for death benefits were inadequate. As a result of this, sooner or later they were forced into bankruptcy, and an injustice was done to the families of members who were still living.

There are numerous insurance societies--even in Chicago--which, in their competitive zeal, endeavored to outdo each other....by lowering premiums for members and promising many things. Finally....all of them failed. They could not carry the risks that they had placed upon their shoulders. Thousands of members by being greedy for lower monthly rates lost their insurance, and some were even deprived of the opportunity to insure themselves elsewhere because of their age.

The attention of state authorities was turned to organizations taking such great risks and causing untold injustice to their policy holders. Through its insurance commissioners the state resolved to put an end to the abuses of organizations that are unable to fulfill their obligations because of low and inadequate premium rates and are forced to plead bankruptcy. Definite steps have already been taken in this direction in several states; organizations whose rates for its members are too low are forbidden to conduct an insurance business. It is anticipated that other states will soon follow suit.

A convention of the insurance commissioners of all states has been in progress at Mobile, Alabama, since last Tuesday, that is, since September 20. These gentlemen are seriously contemplating the enactment of uniform laws prohibiting any organization from conducting insurance transactions if its rates are inadequate. This step taken by the commissioners has created consternation in the "low-charging and great-promising" organizations. It is anticipated that they will raise their assessment rates to previously unheard-of heights in order to avoid legal insolvency. An association known as the Associated Fraternities of America, which guards the interest of eight million members of various individual organizations, held a convention during the past month. They ignored the demands of another similar association, the National Fraternal Congress, to which the Polish National Alliance belong. This Congress had requested that the Associated Fraternities raise their insurance table according to the scale of the former. Now, since the law will no longer tolerate an insurance business which is not based upon actuarial data, the Associated Fraternities of America have ceased to be so hostile. They have decided to consent to an assessment rate previously accepted by the 4National Fraternal Congress. Notice has been given to all organizations and societies that they must either raise their table to a normal rate, which will guarantee payment of all insurance obligations, or cease their business and stop making impossible promises to their members. This new stringent decree will severely affect such organizations as the Woodmen of the World, the Foresters, and others; they will be compelled immediately to raise their assessments to an unprecedented height to even the deficiencies that they have sustained by accepting low payments and, at the same time, to be able to guarantee the payment of all future obligations.

A storm seems to be in the offing in various organizations that have been led not by cold, just reasoning, but rather by an inane competitive spirit to make drives for new members--even old and sickly ones--at low rates. They were interested more in quantity than in quality and forgot what risks they were taking and what injustice they were preparing for those whom they inveigled into joining.

Of the Polish organizations it was found that the Polish National Alliance 5was the only one that stood on a definitely strong financial basis. It had adopted the graduated table of assessments specified by the National Fraternal Congress. This table is recognized by state laws as being adequate to meet the obligations of a given organization. Thus, the Alliance is empowered rightfully to conduct business and to obtain charters legally in all states. By adhering to such an assessment table as the one adopted by the Alliance, any organization can be at ease as to its future. The obligations of the organization are covered by a sane distribution of assessments; hence the law cannot encroach upon its business.

There were times when the Polish National Alliance also took gigantic risks upon itself. This occurred when it was paying death benefits for wives of members who had not themselves belonged to the organization and had not paid assessments. Before adopting the graduated rate scale, it had made the same assessments on the old as on the young members. The Alliance, however, has introduced timely reforms with no great internal shock. Today, the organization has equalized the obligations of members, regardless of 6sex. By so doing it has rejuvenated itself and grown in power; its capital has increased and the distribution of assessments is such that every risk has been excluded.

The organization, therefore, stands upon firm ground; it need not fear for the future well-being of our families because their death benefits are assured.

Other Polish organizations do not possess such strong foundations. Although some have adopted a graduated scale, it is inadequate to meet the risks they have undertaken.

The Polish National Alliance is not only interested in national matters; it has also regulated its financial status so excellently that there is no danger of its failure.