Various - The Bay State Monthly, Volume 3, No. 5

But we admit that it is not sound policy to depend upon assessments alone, and this view is held by most if not all, who have studied the subject in its various aspects. While for many years, and perhaps indefinitely, a company might be successfully conducted, if under a competent management, depending solely upon assessments, yet contingencies arc liable to arise in which it will be evident that true conservatism and wise forethought would have held in hand some funds for use without imposing, at that particular time, the burden of an assessment upon the policy holders.

The advocates of such conservatism have been met with the argument that it is contrary to the principle of assessment insurance, and a concession to the theory of the level premium plan. But the reply is that the requirements of an assessment company in the form of an emergency or reserve are in no sense comparable with those of a level premium company, and the application of it is upon an entirely different principle, and for an altogether different purpose.

An assessment company may need funds in hand to relieve its members of an assessment when otherwise they might be overburdened, because the death rate fluctuates in different years. Or again, in case of a depleted membership from any cause, the assessment company would need funds in hand to supply any deficiency in the proceeds of an assessment below the face of the maturing obligation. For either purpose a comparatively small sum is required, while the level premium company must pile up tens of millions of overpayments to cover the requirements of the principle on which it conducts its business. It is susceptible of mathematical demonstration that one or two millions of dollars of reserve is adequate to perpetuate any well conducted assessment company for all time, however large or small it may be, while the spectacle is presented to us of level premium life companies holding fifty to one hundred millions of accumulations belonging to their policy holders, from which no possible benefit, in most cases, will ever accrue to them. We therefore emphasize the proposition that a system of insurance that relieves the insurer of one half the pecuniary burden he is compelled to bear under the level premium system, is one that is worthy of fair treatment on the part of a discriminating public, and that the people cannot afford to have impeded in its usefulness by ignorance, prejudice, or moneyed monopolies. We repeat the claim for assessment insurance that it is natural as against artificial insurance.

It is pure insurance as against insurance and banking combined.

It is within the comprehension of ordinary minds. It is adapted to the wants of the people, because they can easily avail themselves of it, and as easily discontinue it without material or considerable loss.

It is within the reach of a much greater proportion of the people on account of its small comparative cost, and the ease with which payments can be made in small amounts. More than sixteen hundred thousand of the citizens of this country are now availing themselves of its advantages, as against about six hundred thousand in level premium companies while the former represent more than thirty-seven hundred millions of insurance, as against about fifteen hundred millions represented by the latter.

The disbursements of assessment companies to families of deceased members reach the munificent sum of more than twenty-two millions of dollars annually. The national organization of Mutual Benefit Assessment Associations of America is exerting a most healthful influence in elevating the standard of those companies that comprise its membership. It embraces organizations from all of the principal States of the Union, and its influence is strongly on the side of scientific and conservative methods and practices.

To be eligible to membership, a company must have its rates of assessment graded according to one, or the combined standard mortality tables, take proper precautions in selection of risks, protect new members at any time in its history against an excessive number of assessments, either by increasing the rate of assessment with advancing years or by accumulating a fund in lieu of advancing rates, will make a full exhibit of its policy data annually to the Convention. This standard upon its publication, compelled favorable recognition upon the part of level premium journals.

Thus assessment insurance has gradually placed itself upon a higher and more scientific basis, until it has commended itself to the most intelligent and thoughtful, and in its wonderful growth outstripped its older and less popular rival, until its obligations to the families of the insured exceed those of level premium insurance to the amount of about two thousand millions of dollars.

A Bureau of Insurance has been established under the auspices of the National Organization whose object is to gather and compile statistics relating to all phases of assessment insurance, such as the experience of companies with agents and medical examiners, the comparative cost of carrying various classes of risks and in short, everything in the practical working of the business by the companies comprising its membership, that may furnish data for a more scientific basis, and more satisfactory results in the future.

Many assessment insurance companies are not what they ought to be, but there are those worthy of confidence and patronage, whose managers are making the business a careful study, and bringing to its administration, honesty of purpose and large executive ability.

If the insuring public will learn to discriminate and place their risks in the best assessment companies, remembering that insurance in any good company must cost a reasonable amount, they need have no apprehension as to the result.

The battle of Lake Erie was fought seventy-two years ago to-day; and we have convened to dedicate to the public and to posterity a statue in memory of the Commander of the American fleet on that occasion,

Oliver Hazard Perry needs no monument of bronze or marble to commemorate his name, or to illustrate his glory. History has taken these into its keeping and will preserve them for posterity, while genius in battle and heroic valor and unfaltering energy in the performance of high duty, receive the homage of the American people.

Wherever the patriotism of the citizen is the only reliance for the defence of the nation, the people owe it to themselves to show their appreciation of the conduct of those persons who have arisen among them that have been public benefactors, and have conferred distinction upon their localities. They owe it to those who may come after them, that they so manifest their gratitude that it will inspire succeeding generations with a due sense of patriotism, and be an incentive to them to rise above narrow and sinister purposes to the plane of exalted virtues, and be stimulated to the performance of great actions.

Citizens of South Kingstown, the town in which he was born,—of Newport, where he was reared, had his home in mature life, and is buried;—together with the State and people at large, who have participated in his glory, have been impelled by this common sense of obligation to undertake the erection of a memorial statue of Commodore Perry, a task, the execution of which was committed to a native artist, and here is the artist's finished work.

The statue is designed to represent Perry, not as he was superintending the cutting down of the forest for the construction of his ships; not as he was meditating the plan of the battle of Lake Erie or the order of its execution; not as he appeared the evening previous to the action advising his subordinate commanders in the words of Nelson, "No captain can do wrong if he places his ship alongside of that of an enemy;" nor as he was opening the battle flag which bore upon its folds the dying words of a gallant captain; not as he was leaving his wrecked ship with the deck strewed with his dead and dying comrades, when by the received cannons of naval warfare the Lawrence and the battle were lost; but as he appeared in that supreme moment of his life, when he had just gained the deck of the Niagara, before he had recovered his knocked-off cap, and while in distinct succession he was giving orders to "Back the main-top-sail," "Brail-up the main-try-sail," "Helm up" "Square the yards," "Bear down on the enemy's line," "Set the top-gallant-sail," "Hoist the signal for close action," orders which infused new enthusiasm into all the American crews; and as pendant answered pendant, from mast-head to mast-head indicating the reception of the order to break the enemy's lines, hearty cheers went up from the entire American force with a fervor that presaged the result of the impending death struggle.