Verhovayak Lapja, 1945 (28. évfolyam, 1-52. szám)
1945 / Verhovay Journal
August 29, 1945 VERHOVAY ----—— HYDE PARK This is your column, members of the Verhovay and readers of the Verhovay Journal. You are as free to speak your mind in this column as are the orators in London’s famous Hyde Park. Your “letters to the editor” will be published faithfully, provided you give your name and the branch of which you are a member. If desired, we shall not publish your name but anonym letters are not published, partly as a matter of principle, partly because this is a forum for the members of the Association and wc have Je have proof that the writer is a fellow-member in good standing. Your letter may contain approval or criticism, suggestions or questions, anj' thing, as long as it has any connection with the activities and functions of the Verhovay. The letter to the editor does not have to be an article. Just put your thoughts down, we shall be glad to do the editing for you. The editor reserves the right to answer the letters, hut other readers, too, may reply to them. This column is intended to promote the exchange of ideas among the membership. All members of the Association are invited to contribute to this column. THE EDITOR. * * * “THE FRATERNAL AGE” reprints article opening “Verhovay Hyde Park” column. It seems that by opening the “Verhovay Hyde Park” column we answered a need recognized by nationally known fraternalists whose approval, being based on •experiences gained from the continual observance of more than a hundred American fraternal societies’ activities, justifies our hope that the readers of the Journal will avail themselves of the opportunity for self-expression offered them in this column. “The Fraternal Age”, monthly national Journal of the Fraternal Benefit System of Life Insurance Societies, in the August, 1945, issue, reprinted in full our article introducing the' Hyde Park column, which appeared in the July 11th issue of the Verhovay Journal. The reprint is preceded by the following remarks: “Introducing a new department in Verhovay Journal, official publication of the Verhovay Fraternal Insurance Association, Pittsbu>rgh, the Society opens a column for members to ask qiiestions and air their grievances. It is called “Verhovay Hyde Park” and the introduction, as a subject of fraternal management policy, is interesting Naturally, we appreciate the attention paid to our endeavor by this nationally known, outstanding Journal and we hope that its commendatory remarks will serve to increase the interest of our readers in this column and encourage them to make use of it so as to make a real public forum of the Verhovay Journal. ❖ * * WHY CERTIFICATE? WHY NOT POLICY? (Letter No. 7.) “Dear Editor: It strikes me that the fraternal societies always speak of ‘membership certificates’, while the insurance companies use the term ‘insurance policy.’ I believe that ■ the continued using of the former term is to the detriment of the Association as I have often heard people voice the suspicion that a membership-certificate neither has the same value nor contains the same provisions as a life-insurance policy. It would be much easier to secure new members if we would call our membership certicifates what they really are: life insurance policies. Let’s keep up with the times. K. C. R.” Dear K. C. R.: The problem presented by you has been repeated by many of our fellowmembers, especially those engaged in organizing work. The opinions expressed in these letters are all based on the same misunderstanding, viz., that the continued use of the expression membership certificate is a matter of tradition only. Nothing is farther from the truth. There is a legal difference between the two terms, a difference which involves the safety of the fraternal societies on the one hand and the rights and privileges of the members, on the other hand. The life insurance policy issued by a commercial insurance company is what is known as a “closed contract” while the membership certificate is called an “open contract.” Under ordinary circumstances the contrast between these two plans may never affect neither the policy-holders of the commercial insurance companies nor the membership of fraternal societies. Life, however, seems to become an uninterrupted series of “extraordinary” events while what was previously considered “ordinary conditions” seems to disappear into the realm of the unusual. Wars, as a rule, are followed by economic upheaval. Reserves are wiped out, investments lose their value, and an excess mortality upsets the calculations on which the rates had been based. Epidemics, too, may ruin the strongest life-insurance company of the world. Europe went twice through the same tragic experience during the twentieth century. Due to the devaluation of currencies, savings as well as life-insurance policies have become worthless. Millions of people have seen their reserves dissolve in thin air. In some countries the currencies retained their value but banks and insurance companies collapsed. The savings of millions had been wiped out. We hope that such tragic situations will never arise in the United States. However, in the event conditions should deteriorate to such an extent, the difference between the closed and the opn contract would become apparent immediately. In such instance a commercial company would he forced into bankruptcy, it would be placed into the hands of a receiver and the policyholders would be reinsured by another company which, due to the lack of assets of the bankrupt company, would have to place a lien upon the policies or reduce their face value in proportion to the loss of assets suffered by the bankrupt company. Thus, the policy issued by a commercial company is called a “closed contract” because it can be “opened” only by a court. Fraternal societies, on the other hand, may in such cases of ex-Verhovay Journal Page 7 treme urgency restore the assets by levying a special assessment upon the members if such step be decided upon by the governing body of the society and approved by the insurance departments. This is, so to speak, the safety valve of the fraternal societies which assures their stability at Jimes when commercial companies may be subject to bankruptcy procedures. While fraternalists consider this one of their greatest single asset, the public views it with suspicion, fearing that fraternal societies may, at any time, change their rates. This is not true. IT HAS NEVER BEEN NECESSARY FOR A FRATERNAL BENEFIT SOCIETY, OPERATING ON THE American Experience TABLE OF MORTALITY, TO LEVY A SPECIAL ASSESSMENT. This speaks volumes for the dependability and safety of fraternal societies for they have survived economic crises which many commercial companies could not withstand. Therefore, the open-contract feature of fraternal societies has a more or less academic importance which would assert itself only under extremely pressing conditions. But under such conditions it would mean a great deal that fraternal sosieties issue “open contracts”, called so because they can be “opened” without court litigation, by the membership. There is, however, another difference between the two plans which makes itself felt in all circumstances. RIGHTS AND PRIVILEGES INVOLVED The commercial life insurance policy is a simple contract of life insurance. It is a business-contract between the company and the policy-holders who have no organization as such, nor do they have common interests. On the other hand, a membership certificate assures the member of the society of certain rights and privileges in addition to the life-insurance contract feature which it has in common with the commercial life insurance policy. The member has the right to his share in the Association’s benefit fund. As a member of his branch he has every opportunty to participate in the program of the Branch and to exercise control over the activities of the Association as a whole. In fact, the member of the Association is both, the insurer and the insured. He is a joint owner of the organization and, as such, has all the privileges of ownership. A fraternal society is a cooperative enterprise which is based on the principle of mutuality and representative government. This set-up ties up with the “open-contract” feature explained above. The membership of the Association cannot be assessed unless the majority of the membership agrees that such step be taken. The safety valve of fraternal insurance cannot be put into operation except by the consent of the membership. Naturally, the membership will not agree to the levying of additional eontributions unless it is convinced that such step would benefit all of the members. These are the fundamental legal differences between the terms “insurance policy” and “membership certificate.” It is obvious that the retaining of the term “membership certificate”, is not the result of back-ward traditionalism but that of adhering to the fundamental principles of fraternalism as applied to its functioning in the field of lifeinsurance. We are sure that upon NEW MEMBERS IN CALIFORNIA IT’S TWINS THIS TIME! ANETTE AGNES AND LORRAINE ANN SCHOTT Pretty little habies they are, the twin-daughters of Mr. and Mrs. Lawrence R. Schott, who were written up recently by our District Manager in California, Mr. Alexander Gyulay. First he wrote up Mr. Schott and then he followed up with the applications of the two babies who were six months old at the time this picture was taken. As twins go, they look very much alike on the picture, but actually they are easy to distinguish for Anette is blond and has great big blue eyes, while Lorraine is brown and has just as big brown eyes. If they stay that way, boyfriends ^o be—17 years from now—won’t have any difficulty distinguishing them. Mr. Schott, the happy father of the two babies hails from Iowa and Mrs. Schott, nee Goldie Erdey, was born in East Chicago, Ind., and has a Hungarian background. The father and the twins serious contemplation you will decide that a membership certificate means much more than a life insurance policy for both carry identical provisions pertaining to legal reserve life insurance but the membership certificate entitles the member, in addition to life insurance protection, to such rights and privileges as are not granted by any commercial company. are members of Branch 525, Lt» Angeles, Cal. We hope that Mr. Gyulay will be able to make the family - circle complete, by writing up Mrs. Goldie Schott who will certainly not prefer to be left out in the cold when the rest of the family belongs to such an outstanding organization as the Verhovay. A hearty welcome is extended to the Schott family by all Verhovayans! * * * CORRECTION It was our happy privilege to present to our readers Miss Irene Mezey, new member of Branch 525, in the last issue of the .Journal. Mr. Gyulay wrote us that the presentation was satisfactory excepting that we gave her age being 16. She is 25—he says—and the correction is made herewith. We are certainly sorry for having made that mistake but we hope that Irene will forgive us considering that we made her even younger than she is... it would have been worse had the mix-up been made the other way around. Truthfully, we feel that it does not matter much if she is 16 or 25...’ she is young, appealing and pretty (understatement!).., and that’s all that counts. Speaking of corrections we may just as well continue by reporting that this isn’t the first time that Ieren became a member of the Verhovay. Pop Kunstadt, (Manager of Branch 164) states and Mr. Szalanczy affirms that Irene was written up by Mr. Kunstadt a score of years ago .,. Of course, at that time, it wasn’t she who signed on the dotted line and to us it makes a difference that she joined on her own will at this time. Now that she became a Verhovayan for the second time ... she is twice welcome by our fellow members who áré proud to have her on our roll. A war of ideas can no more be won without books than a naval war can be won without ships. Books, like ships, have the toughest armor, the longest cruising range, and mount the most powerful guns. —Franklin D. Roosevelt FAMOUS CLOSE SHAVES By Barber Sol P'TLwtf in 1 to MARINE, NICHOLAS SILEO, SFbTTED THREE'S JAPS ATTACKING HIM IN INDIAN FILE. IT WAS 3to1— BUT, SILEO BRACED HIMSELF AND SHOT, KILLING THE THREE JAPS | WITH A SINGLE SHOT/ , . , . //V ms. LOUIS PASTEUR HEARD THE FRENZIED CRy OF A BOY BITTEN BY A MAD DOG. KNOWING THE CHILD FACED CERTAIN DEATH, HE RUSHED HIM INTO HIS LABORATORY AND TRIED FOR THE FIRST TIME A VACCINE. IT PROYED lb BE THE LONG SOUGHT CURE FOR HYDROPHOBIA.-THE B0Y& LIFE WAS SAVED. JSIL a F»> * A CALL FOR MESS SAVED FÉLIK KNIGHT, TOURING concert star, from A SNIPER’S BULLET IN NEW GUINEA JUNGLES. A BULLET JUST WHIZZED BY HIS HEAD AS HE TURNED TO HEED THE CALL/ -BARBER SOL SMS'Goebbels doesn’t know WHAT To DO SINK, SWIM OR BALLYHOO BUV u.s. WAR bond:
