The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-12-18
The Life Insurance Controversy


The controversy among the life insurance
companies and policy-holders, which the action
of the Mutual Life Company to reduce the rate
of its premiums brought about, has thrown Z
great deal Of light upon the condition and
management both Of the Mutual and hf> ~ ~
surance companies geus'~.v nas;rous .,
presenting ths fA ...s to the public our columns
nave beer open to the representations and ar;
guments Of all sides, leaving the people to
aecisa T. addition to vast amount Of mat
ter already published we insert to-day com.
munication from policy-holder addressed to
his fellow policy-holders on the subject of the
management of the Mutual Life Company.
The statements made in this are damaging and
call for serious consideration. The policy
holders of the Mutual are more immediately
concerned in these; still other companies and
the many thousands Of pohcy-holders in all
are deeply interested in Investigating the
alleged mismanagement in order to find REM
edy f9E whatever evils may exist and to give
that feeling Of security in life insurance insti-
tutions which the public needs.
The contest between the Mutual and other
companies appears to be settled for the presS
ent by the former abandoning its policy of
reducing the premiums, though its action in
this respect has been declared to be only one
of expediency and temporary. Notwithstand-
ing this apparent reluctance to yield to the
pressure Of the other companies, and an
nouncement Of the fact, we think the matter
ho or1o cd Id
is fortunate, for anything that tends to shake
the confidence of the people in these institu-
tons is fraught with widespread disaster. We
have only to reflect upon the vast number Of
people of all classes, and particularly of the
poorer and Industrious class who have been
paying their scanty means to the compa-
MES, to understand the terrible consequences
that must result from feeling Of insecurity.
Then see how all the financial interests of the
country are interviewer with these numerous
and wealthy life insurance institutions, and
what shock must be given if the impression
should become general that they are misman-
aged or unsound.
While, however, it is gratifying to know
that the late controversy, hostility or rivalry.
Ut Whatever IL may De caueu, between the
Mutual and other companies has about termi.
mated on the question at issue of reducing the
premiums, it is evident that o more strict and
comprehensive supervision Of the whole sys-
tenn is necessary. The revelations that have
been made through our columns, and the very
conflict itself which has brought them out,
shows that stringent and general law, apple
cable to all the companies alike. should be,
made and enforced, and that system of the
most rigid inspection by the State should be
established. This would prove benefit to-
the companies themselves, by inspiring feel.
ing Of confidence and security in the com.
munity while afording the necessary protec-
ton to the vast number Of policy-hoIders. The
State should ascertain if the premiums can be
reduced, and provide against the extravagant
use or misapplication of the funds of life in
surance companies The interests involved
are of too great magnitude to be left to the
will, cupidity, CT caprice Of individuals OF
corporations