Verhovayak Lapja, 1946 (29. évfolyam, 1-52. szám)
1946 / Verhovay Journal
Page 4 Verhovay Journal Journal of the Verhovay Fraternal Insurance Ass’n OFFICE OF PUBLICATION 8502 West Jefferson Ave. Detroit 17, Mich. PUBLISHED SEMI-MONTHLY BY THE Verhovay Fraternal Insurance Association Managing Editor: JOHN BENCZE Editor: COLOMAN REVESZ Editor’s Office: 436—442 FOURTH AVENUE PITTSBURGH 19, PA. Telephone: COurt 3454 or 3455 AH articles and changes of address should be sent to the VERHOVAY FRATERNAL INSURANCE ASSOCIATION 436 —442 FOURTH AVENUE, PITTSBURGH 19, PA. SUBSCRIPTION RATES: United States and Canada ___________________$.1.00 a year Foreign Countries __________________________$1.50 a year ADVERTISING DEPARTMENT: P. O. BOX 7, WOOLSEY STATION — LONG ISLAND CITY 5f N. Y. Entered as Second Class Matter at the Post Office at Detroit, Michigan under the Act of March 3, 1879. Would You Provide for a Starving Family? — OFFICIAL REQUEST TO ALL BRANCHES — Every day we receive heartrending letters from unknown people in Hungary, pleading for help, asking for food and clothes. The Verhovay, well known in Hungary for its fraternal and humanitarian activities, is the last hope for many of these unfortunate people who write us because they have nowhere else to turn. It would be impossible, however, for the Verhovay to comply with these requests, because the funds of the Association belong to the members and are to be used for their protection and assistance in accordance with the instructions of the national convention, the rules set forth in the by-laws and the insurance-laws pertaining to fraternal societies. Nor is the American Hungarian Relief, Inc., in position to render assistance in such individual cases, because this organization, too, is bound by its own constitutional provisions and the regulations governing relief—agencies which provide that the gifts shipped by the American Hungarian Relief, Inc., be used for national distribution. Yet, some ways must he found to relieve such individual cases of hardship. The American Hungarian Relief, Inc., has succeeded in securing the generous cooperation of many warm-hearted Americans who, upon receipt of such requests, send gift-packages to their writers. Many others follow suit, like our three fellow-members in Trenton, N. J., whose special relief activities are described elsewhere in this issue. However, there are thousands of cases where immediate help must be provided to prevent the most tragic consequences. j Therefore, the Supreme Officers of the Verhovay, herewith appeal to the BRANCHES OF THE ASSOCIATION requesting that they give this matter charitable consideration. It is suggested that each branch assume the responsibility for providing one or more starving families in Hungary WITH ONE GIFT-PACKAGE EACH MONTH. The expenses, if shared by the members of the branches, would amount to very little, yet the help afforded by such action, would be of inestimable value. Branches willing to adopt this suggestion, are requested to advise the Home Office as to their intention and, in turn, will be furnished the letter of the family (or families) appealing to the Verhovay for assistance. Branches participating in this program will, thereby, establish personal contact with the families in need. The great majority of the Hungarian people had lost everything as a result of the war. Millions of them escaped with their bare lives. Their household goods, furnishings, clothes and other possessions were either ruined with their homes, or disappeared. Now they have to start from scratch, but it will take a long time until conditions resembling normalcy can be attained. Reconstruction lias begun on a large scale, but it means little as far as the well-being of the people is concerned. They work very hard for very little. Now, that Hungary’s new currency, the forint, has appeared there is some hope for economic stabilization, but wages are so low that the w'orker is hardly able to provide his family with the barest necessities of life. The average hourly wages amounting to 1 forint, Hungarians have to pay 12 forint for a pound of lard, 100-120 forint for a pair of shoes. That means that a Hungarian wage-earner has to work 13 hours for a pound of lard, 100-120 hours for a pair of shoes. The people are desperate for help and not having any relatives in the United States, they appeal to organizations for help. Uppermost in their minds is the Verhovay, known as the largest “aid association” of American Hungarians. Their letters bring us their desperation, their prayers and expressions of their last hopes. Something must be done in their behalf, because national relief organizations cannot include in their program individual cases of hardship. Every effort is being made to develop a great group of charitable individuals willing to assume the responsibility for such cases. This appeal is part of that effort and, knowing the traditional generosity of Verhovayans, we hope that our branches will consider this request at their NEXT MONTHLY MEETING. Officers of all Verhovay branches are urged to give this matter full attention and to help organizing in each branch at least one group willing to ADOPT A STARVING FAMILY for the duration of this crisis. Our branch-managers are requested to immediately Verhovay Journal____________________________________September 25. ms THE CASH SURRENDER PANIC Cash surrenders are at an alltime high, report national business magazines, and this is certainly true in the Verhovay. While only a year ago not more than 8 certificates were surrendered for cash during any month, an average of 40 were surrendered during the last six months, a 500% increase over the previous average. It is, therefore, no exaggeration to call this trend a “panic,” especially if we keep in mind that the word, panic, denotes “sudden, extreme, groundless fear.” More life insurance is being sold than ever before, but it is like water drawn with a sieve because of the great volume of cash surrenders. That, however, is of secondary importance, because the insured public is little concerned, if at all, about the progress of the insurance organizations with which they deal. It is a headache for the insurance man to see his gains reduced because of the loss caused by surrendered policies, but he cannot expect his customer to shed tears over his worries. The important thing is that this trend is certain to result in bitter consequences for all who can’t resist the panic that seems to engulf a nation of policyholders. So let’s consider this question strictly from the point of view of the insured, for the protection of his interests is the main concern of every honest fratemalist. CAUSES OF THE PANIC What makes five times as many people as usual apply for the cash-values of their life-insurance policies? A study of a great number of cases handled by our Home Office, reveals that the majority of cash-surrenders are the result of chiefly the following situations: 1. The widely advertised emphasis on a properly balanced insurance program for every individual, developed during the last few years, has made the public conscious of the defects of the insurance protection sold to them by the now almost extinct type of insurance man who had no idea of the need and possibility for adapting the insurance protection of every prospect to his particular situation. Notwithstanding that their rate-books contained the descriptions and rates of all types of insurance policies, they never read a page beyond that containing the rates for Whole Life policies. Today hot only the agent but even the average prospect knows that life insurance has many other uses in addition to that of covering burial expenses. It can be used to insure higher education for our children, to cover mortgages, to provide a nest-egg for old age, to give us a fine endowment in middle-age, to establish a saving account in which the amount to be saved is guaranteed from the beginning, etc., etc. Now, what type of insurance policy to sell to a man, depends on the situation. A businessman may not be interested in a policy which is welcomed by the miner. A father of three children will have other plans and needs than the childless couple. The economic circumstances, profession, family status, age obligations and plans of the prospect all must be considered and weighed, and his insurance program must be made up so as to fit the situation. In a great number of cases the parties involved find that they had been sold the wrong type of insurance contract, because its provisions do not apply to their particular situation. They surrender them for cash with the aim to replace the surrendered certificates with other types of contracts whose provisions are more in line with their needs and requirements. In such cases, we reap the fruits of unplanned, undiscriminating, careless selling, but it is the insured who pays the price because, obviously, he cannot get his “money back” (as some expect, or even demand), only a fraction of the total amount of dues paid. WHY THE LOSS? Insurance rates are different from saving deposits in that they guarantee the full amount named in the contract to the beneficiaries even if the insured should die at any time after the first payment has been made, while saving deposits will yield only as much as has been deposited plus whatever interest may amount to. A saving bank does not assume a risk, while the insurance organization obviously does just that, and this risk must be shared by the whole group of insured. Thus, the insured whose insurance contract has been in force for ten years, has contributed toward paying the death claims occurring during that period. This contribution cannot be refunded to him, because it has been spent and had the insured died in the meantime, the amount spent would have included the benefits paid to his beneficiaries, too. The entire membership of the Association shares this risk and that insures the fairness of the whole set-up. Then, too, the rates include the expense element, the amount contributed toward expense of management. These two items add up to such a substantial amount that cash values can be made available only after the first three years’ dues have been paid in full. The cash reserve, available to the insured, increases (Continued on Page 5)------------------V--------------------TNEWS —-FROM THE FIELD (Continued from Page 3) YOUNGSTOWN, O. ATTENTION, BOWLERS! All members of the Verhovay in Youngstown, O., who are interested in bowling, beginners as well as advanced, are invited to join the Youngstown Verhovay Bowling club. For information please call on any of the following officers: Andrew Blasho, Captain, 25 N. Osborne Ave., Phone 95807; Frank Molnár, manager of Branch 514, Phone 95721; George Gregosits, manager of Branch 364, Phone 33270; Joseph Turner, manager of Branch 108, Phone 95394, or Joseph Danish, manager of Branch 21, Phone 70547. Fraternally FRANK MOLNÁR, manager, Branch 514. YOUNGSTOWN, O. BRANCH 108. Last call for the Victory Banquet and Dance to be held by Branch 108, in honor of the 70 veterans of this branch, on September 29th, Sunday. Banquet shall be served at 5:30 P. M. and the dance is to open at 8 o’clock. Every veteran member of Branch 108 will be presented with a gift by the officers of the branch. Music will be furnished by the Szikora and Medve Orchestra. Admision to the dance 75 cents and to both the banquet and the dance $2.50. Supreme President John Bencze will attend this affair. Everybody is invited! JOSEPH TURNER, MGR. Heroes’ Portraits Presented in Sharon, Pa♦ Memorial ceremonies were held in Sharon, Pa., by branches 26 and 171, on September 15th, Sunday, when tribute was paid to the late CpL Charles Nagy and M. M. 3/C Emery P. Kaibash by the members of these two branches and many out of town visitors. The detailed report on this event was received too late for transcription and will be published, therefore, in the next issue of the Journal. THE EDITOR. notify us of the action taken at the branch-meeting. Branches acting in favor of this request, will be furnished with the letters from needy families. It should be mentioned here that many of these letters are accompanied by proofs as to their contents. Clergymen and others of authority attest that the facts are as set forth in the letters of the applicants. Great care will be exercised in selecting from the mass of applications those deserving immediate and helpful attention. Most of us of European descent are doing our utmost to help our next of kin in these desperate times. At the same time, wre must realize that there are millions in just as great need, who have no one to help them. Please, pay heed to their anguished cries ... extend to them a brotherly hand . . . Adopt them to the extent of sharing the costs of a package per month with your fellowmembers . . . PLEASE, LET US KNOW ABOUT YOUR ACTION. CLEVELAND, O. BRANCH 14. Be sure to reserve October 13th, Sunday, for the Grape- Harvest (Szüreti) Festival and Program to be held by Branch 14. An excellent program and a great variety of entertainments are being prepared. This is going to be one of the greatest affairs ever held by Branch 14. You can’t afford to stay away! THE COMMITTEE. GARY, IND. BRANCH 138. Memorial Ceremonies will he conducted by Branch 138, in honor of the late John Farkas, Jr., Paul A. Kish, John A. Kish and William Babinsky, Verhovay hero dead of World War II. All members of Branch 138 and the sister-branches are invited to attend. JULIUS DANCH, MGR.
