Evening Republican, Volume 16, Number 254, Rensselaer, Jasper County, 23 October 1912 — KILLS NEW RATES OF THE WOODMEN [ARTICLE]

KILLS NEW RATES OF THE WOODMEN

Court Holds Head Camp Cannot Change Without Consent of Members. A ruling at Des Moines, lowa, Tuesday, on the new rates of insurance of the Modern Woodmen of America will be of considerable interest in the members here; 7 -- — - Proposed changes in the law governing the Modern Woodmen of America are in direct violation of the vested contract rights of the members and are null and void so far as they attempt to change the rates without the consent of the members, according to a ruling handed down Tuesday by Judge Charles S. Bradshaw of the equity division of the district court. The decision was given in a case wherein the insurgent wing of the organization asked the court to set aside and annul certain changes in the articles of the association’s by-laws adopted by the head camp of the Woodmen at an adjourned session held in Chicago in January, 1912. The court held: First, that under a certificate of this character the holder occupies toward the society a dual relation; he, as a member of the corporation, is bound by all reasonable by-laws enacted by the corporation, whether they come into existence before or after the issuance of his certificate. He also occupies the position of a person holding a contract with the society and as such stands on the same footing as any other person making a contract with it. , Second, that the contract of insurance consists of the certificate of application for membership, the articles of association, by-laws of the society and the statutes of the state of Illinois relating thereto. Third, that the new law of the society'proposes to change both the rate and plan of insurance, and both rate §nd plan are a part of the members’ contract. Fourth, that there is no difference in principle between reducing the amount of benefit and increasing the price charged for the benefit. Fifth, that the proposed change in the law is a direct violation of the vested rights of the plantiffs and other members, and is null and void so far as it atatempts to change the states or plan without the consent of the member. Sixth, that the amendments to the articles of incorporation are }1 legal, and void because not adopted by a two-thirds vote of the members.