The New York herald., 1872-12-08

reserve for any contingencies.
Let US particularze little. According to the
recent summary OF the twenty-eight years and
eleven months experience OF the Mutual, recently
published, it Is shown that the total receipts. so
called, amounted to sos. .3l7.o3S oS, maze up
thus
Premiums received in cash. ...... $6i, i,677, ITO %
Premlums received. surrender OF
dividends" Observation-Disclosures. %. .152. $50 OF
Interest, rents, &c. &c............... 1T.486 707 70
T0tal Sl05,3l7 O3S 03
Then we see from the same summary that the ex-
penses of the company for that period amounted
to slO.53a6 $50 So. Deducting from the amount OF
premium receipt the S23 1852. $50 OF. stated as re-
ceived by surrender OF dividends" which was
really no money receipt at ALL but mere
taking back OF paper certificates in exchange, in
part for increased insurance, and IL viii he
found that tine expenses OF the company for its first
twenty-eight years and eleven months amounted
to l6 2-o per cent on its actual premium receipts.
excluding the income from 'interests rents ,&c.u
Hence It ia only by taking credit for the effect of its
full loaded premium as misunderstanding power
that the Mutual Life pretend that its gross
penses have been below ten per cent of its receipts.
Therefore, taking the actual experience of the past
as the true guide for the future the Mutual Life has
no right to expect that it can do life business on
the reduced nondividend power rate plan at less
than sixteen per cent per annum on the new pre-
MUM.
Certainly Mr.. Winston would not favor . proposi-
ton to establish a mutual life insurance company
on the basis OF his proposed new rates without a
subscribed capital. Yet this is virtually the thing
that he now proposes to do, unless, indeed, he
urges that the present strength of the com
pany warrants the contemplated reduction Of the
rates. But this, the only really supporting argu-
rms n i'm itQ
the change as affecting the old policy holders
Why should their accumulations be used to secure
incoming members, who Join the company upon
totally different terms ana who can never bring
any advantage to the old membersg
Lille insurance Is not yet SO od--not at least in
the United States-that it can afford to do busi-
ness at mere cost and discard all precautions
against extraordinary emergencies. Recent events
have vvidly demonstrated how utterly insecure
the system Of low rate, close-shaven premium was
in fire insurance; how, when large reserve was
not maintained for special contingencies, or, may
we not say, for inevitable occurrences, the COM
panies went down to utter ruin In the face or large
disasters. Have any men OF our generation the
hardhood to contend that our medical science
is so perfect, our sanitary regulations
so complete, physical condition so
vastly improved, that human life is hence
forth safe from all the dread caamites
that have afflicted our race in other cmes and pc
riods? Has the angel OF death, who year by year
spreads his wings on the hot blasts o. Eastern
clmes, become so enfeebled that he may never
more wing his dasolating night over the waters to
our western landg Have all the diseases that
.'fesh ia heir to" so subsidized that we may have no
more fear OF epidemics any disturbance Of the
measured ratios or mortality which our companies
have known during the first quarter Of century
of their existences 1t would be very gratifying to
be able to be very positive that we had reached
sucn halcyon days. But it seems rather reck-
less course Tor an old life insurance company to
take to predicate its future action on vain ny.
pothesis
Our human experience is often fallacious If any
man had declared eighteen months ago that the
great fire OF London, which occurred in 1866, would
some day be Outranked by great cOnlagraton in
some American city, he would have been scolfed at
AZ silly aarmist Our civil conditions were so
different, our facilities for suppressing fires so
perfect that we would certainly have derided
such suggestion. But what is our expert
ence nows In October 1871. more property
destroyed by fire at Chicago than was lost
in the great fire OF London, and in Novem-
Der OF this year the weDuilt city OF Bos-
ton, the most solid OF all our American cities,
has suffered fire loss not much short OF that at
any form never sweep over agains Very fer
venty we hope thxs we may have passed the days
Of such terrible vistations, but we should not be
so over-conddent as to cast aside all precautions.
Now and then, unhapply, we find that disease is
the air. Such chemical atmospheric changes take
place as to destroy vegetable and animal life, as
the locust destroys the green herb and the growing
grain and all our science is bailed Let US not re-
peat the FOLLY of the foolish virgins. We must not
burn our lamps 80 low that we cannot replenish
them when more light is demanded.
The general financial interests OF the country
have been greatly exercised from time to time dur
Ing the last few years by the apprehension OF
sudden return to specie payments. That fear has
been allayed by the wise, conservative action OF
firm government Yet even sudden return to
specie basis could work no sucn general disaster in
financial and mercantile circles as the reduction OF
life insurance rates to unsafe basis would pro-
duce in life insurance business
There are many thousands OF active able, intelli-
gent citizens engaged in the business OF life insu-
rance, as agents and otherwise, throughout the
country, and to all these persons the proposed
ducton OF life rates will bring serious disturb
ance financial business that has supplied
payment OF s25,o0oO0O this year among
widows and orphans in this country needs
to be meddled with very cautiously.
Every mutual company that has up to the present
period attempted to conduct life insurance on the
low rate plan has come to grief In every field the
aborer is worthy OF his hire, especially so in the
arid soil of life insurance The work will not be
done-cannot be done-upon maudlin humanita-
rian pretences. Life insurance has to be paid for
Ofcers, agents, doctors and clerks must get their
living out of the business If they give their time to
it, and Mr.. Winston and his co-trustees had better
lay by their oxmuzzes until they reach the happy
land OF Utopia where every one will do everything
for everybody for pure love and affection, without
any vulgar reward in dollars and cents, and virtue
only will be its own reward. We fear that If Mr..
winston persists in the propagandism OF this
threatened crusade he will work more positive in
jury to the permanent interests OF the Mutual Life
than to that OF any other organization in the busi
ness II does not strike US as fair to the old high
rate policy-holders Of the company to let in what