New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-12-16
THE "mUTUAL LIFEp RECEDES

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THE "MUTUAL LIFED RECEDES
There il an armstlce in tho % life insurance
"war," which probably presages its termination.
| The trustees of the Mutual Life Insurance
! Company have decided to postpone for the
present the proposed reduction of rates. 1t Is
Il fitting conclusion to this very curious affair,
| that statement of the present determination
! is coupled with declaration that the reduc-
ton itself was perfectly justiiable and would
have been beneficial to all the policy holders III
the company; and the retroccssiOn is only made
in compliance with the request of the repre-
sentatives of other companies. Admitting
| that this, and this alone, is the motive the
| act of the trustees in going back to old
/ rates for fear OF inuriDg the business OF their
rivals, must be regarded as a marvel of disn-
terestedness. There was Il considerable por-
ton of the public that regarded the cutlery of
other companies against the Mutual Life's pro-
posed action as utterly ridiculous. Il was
compared with protest which one merchant
might make if another undcrsold nina cry
which would not interfere with the cheaper
vendors custom, nor prevent his Increased
sales to the detrimcnt of his rival. To those
F, who hold such views. the present determine
ton of the trustees may cap the climax of
absurdity.
Throughout the whole controversy, taking
the arguments put forward by either side and
trying them by the ordinary rules of trade,
similar contradictions become apparent, and it
il no wonder that some of the newspapers
designated the varying statements which they
published as "Tbe Insurance Muddle.' The
Mutual Company declared its ability to make
the reduction; other concerns, that could not
possibly know as much about its affairs, pro-
claimed its inability. Figures were given on
both Sides and neither side disputed the
others bases of calculation, though deducng
utterly antagonistic results. If the new meas
ure was so palpably risky as the other com
panics asserted, the fact that its adoption
would place the Mutual Company in a posi-
ton So dangerous as TO prevent it from COM
peting for new business, should have perfectly
c0mfOrted the rival concerns. If the new rates
were, as alleged by the opposition, no cheaper
to the assured their adoption need not hurt
the insurance business; for, if the reduction
did not reduce the total paid in. how could it
diminish the revenue Of the companies Or.
again, why need they fear an injurious compe-
titiOn from a company offering terms that
were really no better than those Of others
Abundant quotations cited from the writings
Of the very actuaries who over their sigma
lures opposed the reduction. show that they
previously advocated such a change, offering
strong arguments in its favor
Equally debatable were tho arguments adj
duced in favor of the measure. The capacity
for carrying it ont was proved by thirty years
experience; but if so long able to make this
deduction, why had the company never at
tempted it before: len per cent, it was said,
is enough to cover expenses; but will not
everybody admit that more than ten per
cent must be paid for tho first years expenses,
which iDclade commissioner Whence shall
tho additional expense be honestly drawn
IL is mutual company, and gives back, OH
the whole, what il receives on the whole; yet
IL proposes to give insurance to q class Of
people that cannot afford it at present rates,
though, taking year with year, the amount
paid by these people must be the same for
the same insurance. Lastly, why, if the pro-
posed change would be "a benefit to ALL"
did the trustees conclude to postpone it in
definitely .... ..-..
The facts probably are that the original step
was taken without due consideration of the
possible sentiments OF poioy-holders. Ii doubt
Less developed an opposition among them that
was not anticipated. Men who had already
placed their funds iu the safe-keeping of tire
company vehemently objected to having an
unexpected risk taken, and especially for the
benefit OF outsiders who as yet own no poll
cies. large share of the public insured In
other companies, fearing that similar reduc-
tons might become general, trembled for their
own investments. Whatever trustees might
privately believe about the benefcence of the
proposed measure, they would not care to face
a popular storm. The result, Oh tho whole, is
not to be regretted. If, as seems probable,
the new plan had brought odium on life insu-
rance, or broken down the smaller companies,
the disaster would be far greater than any
possible good. The weaker companies perform
a work which the larger ones cannot and will
not penetrating the Western wilderness and
the outskirts of civilization. and insuring the
pioneer and the laboring man. True, they do
ii At great expense; but that dimnishos only