The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-01-15
"LETTER FROM BANKERS

LETTER FkOM BANKERS"
VINO are Insured In the Connections
Mutual Life Insurance Company, Show
Ing how the Promises of the COnnecti-
cut Mutual Life Insurance Company
are Performed.
Troy, October 20, ls66.-Messrs. Peck 4 HILL
man, General Agents OF Connecticut Mutual
Lille insurance COmpany-Ge entlemen:-The un-
dersigned, policy holders in the Connecticut
Mutual Life Insurance Company, feel that It is
too late In the day for this Company to need
any recommendation from US. Yet, in view Of
the fact that rival companies are jealous OF her
unparalleled success, and are making an effort
to disparage her, we take great pleasure in say
ing that the CONNECTICUT Mutual has done better
by Us than was promised.
"YOur representations to US have been more
than realized. The non-forfeitable feature
adopted by your COmpany-the great economy
and prudence in the management OF its busi-
ness-the large dividends annually paid TO us,
and especially the go per cent dividend paid
this year-also the change made by which, in
the settlement ofpOliclos at death, not even
single note comes out of the pocy-all combine
to increase (f any increase is possible) our CON
fdeDCe in your Company. And we cheerfully
recommend 1t to all desiring TO get their lives
insured. We would not change our insurance
in this for one in any other company.
Respectfully yours,
JARED s. WEED.
President Troy Savings Bank.
WILLARD GAY,
Obbul5E NauOnAl Dtat6 bAnkJ Troy
G. N. WELLINGTON,
Cashier Manufacturers National Bank, Troy.
6. II, SIMS
Cashier Troy City National Bank.
z. M. CORBIN
Cashier Union National Bank, Troy.
Cashier National Exchange Bank, Troy.
j. b. KELLOGG,
Cashier Mere csants' and Mech. Nat Bank, Troy.
Cashier Mutual National Bank, Troy.
Cashier National Albany Exchange Bank.
CASHIER National Bank of Lansinpburg,
cashier Second National Bank, New York"
These gentlemen commend ''The Connecticut
Mutual" in much stronger language l think
than the facts Justify. They may understand
banking operations, but 1t Is extremely doubtful
whether they know enough OF the principles or
science of lie insurance, or of the management
OF that Company, TO warrant them in expressing
their opinions with so much confidence.
If it was their object - enllghten the public
upon the subject, it was q very laudable one;
but they should have furnished such facts and
figures as would have prevented any mistake or
misapprehension in q matter of so much impor-
tanCe. They know that the dividends are paya-
bic four years from date OF policy, that is, when
the fifth premium is due, and il any OF them
have beeu insured ten or mere years, and pay
One-half cash and the other half with a note
bearing per cent interest, they know that the
uiVluenUS were as per cent. III 1901, 1000, 1909,
and 1860, and that the notes then given were
assessed 20 per cent. in 1860 1861, 1852, and
1868, to make up the deficiency.
The so per cent dividend, Of which we hear so
much, applies only to Policies which were issued
in 1862, and not to those of ''thiS year." as one
would be led to suppose by reading this cores
pOndence.
dividends, and that would reduce the 80 per cent.
dividend to about 40 per cent.
Perhaps some OF these gentlemen may have
been insured ten or fifteen years; II so, 1t Is
quite time they knew that uniform percentage
dividends are very unjust to old members.
call their attention to the following extracts
taken from the bound official reports, OF the
Hon. Elizur Wright, Insurance Commissioner
of Massachusetts, 1859 to 1865, pages 30l-3O2.
He says:-"Since a Mutual Company Is as
solemnly bound to maintain EQUITY as solvency
it appears to us that there can be NO POSSIBLE
JUSTIFICATION for Uniform percentage OF dlVl-
dends;n and "other tnSuperable objections TO
uniform percentage, have beeu dwelt on in
former reports" They amount to this, that
money which belongs to old members is put
into the pockets OF new comers;" ana ne de-
clares that this process OF sacrificing the IN
terest of old members TO new-ones, we think
would be set aside by any COURT OF EQUITY,
and the question would soon get there II the
OLDER members came to understand their in
terest.n
No one acquainted with the qualifications of
Professor Wight will doubt his ability to de.
teTmine this or any other question OF Lille ln-
suIance scientifically.
As policy is not an eXchangeable article, 1T Is
very convenient for these policY-holders to say,
1--WE would not change our insurance in this for
one in any other company; but guess II tney
knew the results of assurances in some other
companies, they would not make such an asser-
ton; if they did, they would be considered very
incompetent bankers, and incapable OF under
standing exchange
The "contributon plan" is the only one
whereby the 'divisible surplus" can be adjusted
lequitably, by
A MUTUAL LIFE INSURANCE COMPANY.