New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1851-02-04
The CONNECTICUT MutuaI Life Insurance Go.

The Connecticut Mutual Life Insurance Go.
To the Editor Of The Tribune:
SIR: The Importance Of the subject must afford
my excuse for again trespassing upon the atten.
tion Of the public.
Having noticed the great discrepancy between
the assets Of this Company set forth in its last
Annual Report and in the advertisement of its
authorized agent at Louisville, feel it due to this
community where it is doing large business,
that some explanation should be given of a mis-
representation that on its face would seemtO have
been made with the view Of obtaining larger
share of public confidence than it was entitled to-
The f-ct was accordingly stated, and the agentin
this city was called upon for an explanation. In his
reply the fact was not denied, but he insisted that
although the Kentucky agent had made an error
in stating the assets OF the Company at
ISL 900 all safely invested" still the assets
now amounted to S94s 002-and that the publica-
ton originated in the rival feeling of an institu-
ton of which l was counsel. The fact being ad-
mitted its publication was justified. The motive
may have been feeling Of jealousy and it may
have been an unwillingness to ALLOW tho system
of mutual Life InsuI ance to be dlscredlted Dy
companies conducted upon false principles and
obtaining business by declaring njusthable dlvI-
dends and grossly exaggeratlng their resources
There was no necessity of abiding to motives.
If it were true that this misstatement was an err
TOR of the Louisville agent, the public ought to be
satisfied.
1t is rather unfortunate for that explanation,
that the Boston agent fell into the same error
In the Boston Erening IfGreler Of the lst Of last
October his advertisement, continued from July
previous, states the assets of the Company to be
"S $50 OOO all safely invested for the benefit of
the members" An error into which two agents
one at Louisville and the other at Boston-sim-
ultaneOusly fell, would seem to bave originated in
a common source, and 1t will be difficult to con-
vince the public that the statement was not made
by authority from Hartford. In your paper Of
Friday last new advocate for the Company APP
pears and after making it one of the backgrounds
Of its claims to confidence that it is Hartford Co
where no Insurance Co. was ever known to break,
be proceeds TO make attack upon the Mutual
Life Insurance Co. Of New York.
Whether it is preferable that all our Insurance
Companies should be managed at Hartford, on &C.
count of any peculiar superiority of the inhabitants
of that town for the transaction OF that business,
il a question do not feel called upon 70 discuss
The statements made by the writer it may be
well to examine. In that communication he has
fallen into the following errors
The dividend of the New-YoEk Mutual he puts
down at S532,443 90, which he deducts from its
assets, leaving balance, as he states OF S49l,-
49l OF.
The fact is, that the only dividend declared by
the New-York Company ..:.............sS S50A
lis last declared assets amounted tO........l1zif
This dividend has been reduced by the payments -
on policies that have become due, 1858
leaving its at the last account S74O98
over and above the dividend which is also retained
by the Company, and is liable for all losses 1t is
also asserted that the Connecticut has made but
one dividend of 90 per cent and that its average
dividends have been but 53l per cent. Ia the
advertisement of the Boston agent before alluded
to, the average dividends are stated TO have ex-
ceeded an average Of 81 per cent
Is this true or has the Company dividend
which is one rate when soliciting business and
another rate when seeking to vindicate its char
acter? AS to the dividend of the New.York Co.
it should be remembered that it is made, not an
nu0lly but at the end of every five years and Of
course comprehends the interest at compound
rate of all the premiumsreceived during that time.
la the instance alluded to there was large profit
resulting from the purchase of the stocks belong
ing to the Company when they were much de-
pressed. These circumstances necessarily war
raDted large dividend.
The reserved fund, however, is the criterion
which determines the question as to the prudent
management of Life Insurance Company andit
ultimate soIvency. With the view, therefore, of
afording some information TO those who have Pc
rused this long communication, will make acom-
parative statement Of the two Companies, taken
from their own reports.
The Mutual Ltje Insvanee The Connecticut Mutual LIE