The American Legion of Honor was a fraternal benefit order that was active in the late 19th century and early 20th century. In its heyday, it was one of the best known benefit societies.

History

The organization was founded on December 18, 1878, in

Boston Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...

Massachusetts Massachusetts (Massachusett language, Massachusett: ''Muhsachuweesut assachusett writing systems, məhswatʃəwiːsət'' English: , ), officially the Commonwealth of Massachusetts, is the most populous U.S. state, state in the New England ...

, by Dr. Darius Wilson and nine others. Some of the founders had helped found the

Royal Arcanum The Supreme Council of the Royal Arcanum, commonly known simply as the Royal Arcanum, is a fraternal benefit society founded in 1877 in Boston, Massachusetts by John A. Cummings and Darius Wilson, who had previously been among the founders of the ...

. Wilson was also connected with the

Knights of Honor The Knights of Honor (K. of H.), was a fraternal order and secret society in the United States in the late 19th and early 20th century. The Knights were one of the most successful fraternal beneficiary societies of its time. History The orig ...

and was reportedly a member of the

Ancient Order of United Workmen The Ancient Order of United Workmen (AOUW) was a fraternal organization in the United States and Canada, providing mutual social and financial support after the American Civil War. It was the first of the "fraternal benefit societies", organizatio ...

Membership and benefits

Membership was open to white men and women 18 to 50 years of age, the upper age limit having been lowered from 64 in 1885. There were initiation ceremonies but, if the candidate objected, these could be dispensed with and a formal obligation could be taken at any time and place. The order had a three-tier structure: local units were called "Subordinate Councils"; above them were the "Grand" or "State Councils"; representatives of the latter and all living Past Supreme Commanders made up the "Supreme Council". The order issued certificates of $1,000, $2,000 or $3,000 each, at their option, and those certificates carried a "graduate weekly benefit." The Legion reached its largest membership at the end of 1889 with 62,457. Like many fraternal organizations, the Legion ran into financial difficulties in 1895 and 1896. These were caused by a number of factors, including the

Panic of 1896 The Panic of 1896 was an acute economic depression in the United States that was less serious than other panics of the era, precipitated by a drop in silver reserves, and market concerns on the effects it would have on the gold standard. Deflatio ...

, an increased death rate, increased expenses and debts, "unusually high" assessments in 1896, and a lack of new members. The total membership on December 31, 1895, was 53,210; a year later it was 36,028. Like many fraternal orders of its time, the American Legion of Honor was based on inadequate rates that eventually led to

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

. While the organization was successful in the early years, as the mortality of its membership increased, the order could no longer pay promised benefits as fewer people joined and others withdrew. (This phenomenon is known in insurance jargon as "

adverse selection In economics, insurance, and risk management, adverse selection is a market situation where buyers and sellers have different information. The result is that participants with key information might participate selectively in trades at the expe ...

", as sicker persons retain their memberships and younger, healthier persons fail to join in adequate numbers to offset the claims paid out.) In 1903, for instance, only 51 members joined, bringing in $755,000; while 2,004 members either died or withdrew, taking over $3 million with them. The order went into

receivership In law, receivership is a situation in which an institution or enterprise is held by a receiver—a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights"—especially in ca ...

in August 1904.

Other "Legions of Honor"

There were two groups related to the ALH, though their precise relationship with each other is unclear.

Iowa Legion of Honor

The Iowa Legion of Honor was founded in 1878 and, as the name implied, was designed for the residents of the state of Iowa (though members who left the state could keep their membership). This group was open to men and women, though in separate divisions, and members lives could be insured for $1000 or $2000. There were only two levels of organizations, the "Subordinate Lodges" and the "Grand Lodge", which met biennially. The founders of the Iowa Legion of Honor stated that they "were not members of any particular organization of like nature". There were 7,500 members in 1896. By 1905 membership was down to 4,300 and the group went out of existence some time after 1910.

Northwest Legion of Honor

The Northwest Legion of Honor was incorporated in the state of Iowa on March 12, 1884. Unlike the Iowa Legion of Honor, this order extended its jurisdiction to the

Dakotas The Dakotas is a collective term for the U.S. states of North Dakota and South Dakota. It has been used historically to describe the Dakota Territory, and is still used for the collective heritage, culture, geography, fauna, sociology, econom ...

Nebraska Nebraska () is a state in the Midwestern region of the United States. It is bordered by South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Kansas to the south; Colorado to the southwe ...

Kansas Kansas () is a state in the Midwestern United States. Its capital is Topeka, and its largest city is Wichita. Kansas is a landlocked state bordered by Nebraska to the north; Missouri to the east; Oklahoma to the south; and Colorado to the ...

and

Minnesota Minnesota () is a state in the upper midwestern region of the United States. It is the 12th largest U.S. state in area and the 22nd most populous, with over 5.75 million residents. Minnesota is home to western prairies, now given over to ...

, as well as Iowa. Membership was open to acceptable white persons eighteen to fifty years of age, who were not engaged in an extra-hazardous profession. Like the ILH it had only Subordinate Councils and a Grand Council. It had a ritual that taught benevolence and its motto was "We Work Together". Its total membership in 1896 was 2,500. The NLH "frankly admit d to being an "offspring" of the American Legion of Honor The Northwest Legion of Honor offered insurance certificates of $500, $1000, $2000 and $3,000. Assessments were graded by age, and one fifth was set aside for a fund to be used in the case of an epidemic or other increase in the death rate.Stevens p.171

History

Membership and benefits

Other "Legions of Honor"

Iowa Legion of Honor

Northwest Legion of Honor

References

See also