The New York herald., 1872-12-08
INSURANCE.
LIFE NSURANCE---REDUCTION OF RATES.

TO '1et well enough alOne' u large measure or
human wisdom. Conservatism and radicalism wage
eternal warfare; rather, let us say that conserva
tism needs to be on he defensive against the
aggressveness OF radcalism. We're not the cen
trifugal controlled by the centrpetal, our planet
would speedily dissipate into infinite space; and
that great preservative law OF gravitatiOn prevails
In the spiritual as we'll as In the material world.
SO to regulate the necessary movement of human
progress that we may protect that which ia good
from reckless disintegration Is the ambition of all
good men. The successful efforts of nearly two
hundred years have given us a bene1cent institu-
ton in the form OF life assurance-in the sphere OF
| social science-the very flower Of our modern civil
| izatiOn, q scheme by which stretch our hands
| beyond the grave to shield and comfort those we
love on earth or all social organizations or insti
| tutons certainly this one. more than all Others
seems to demand the protecting agls OF conserva-
tism-not an atom of its firm accretion should be
! exposed to the icOnOcastic touch OF rabid radical
| Ism.
Not from without Is any danger threatened to
the structure OF life assurance; It is from within
that the citadel is being mined. From motives that
mry be easily enough imagined, but that 1t is not
necessary 10 define here, the managing officers OF
| the Mutual Life. OF New York-the great standard
bearer company OF the cOuntry-have come to the
resolution 10 recommend that their company shall
abandon the conservative principles on which the
institution has been built up and descend to the
| "cheap John" plan of reduced rates. in order to
| compete for future business. The comparatively
new actuary OF the Mutual Lie, Pro-
| fcssor Bartlett, an eminent mathematician
| and honored authority, but not yet much
experienced in the practical working OF life
surance, has,ut appears, addressed to Mr.. winston
the President of the Mutual Life, official letter.
| under date of 18th November instant, recommend
ing in effect that the company shall reduce its life
rates about one-third in order to "give to persons
! OF slender means, and especially the laboring
classes the benefits OF life assurance This let
ter, which shall give in full, to prevent any
misinterpretation, has been "read to the Insur-
ance Committee, and, after discussion, ordered to
be printed for private circulation among the trus-
tees, with view to future action upon it by that
body" This Is the letter.
TnR MUTUAL LIFE INSURANCE CoMrANYl
OF NEW YORK, Nov, II, 1872.
FS. WINSTON, Esq, President, &c, &c:-
DEAR SIR-The Mutual Life Insurance Company
has now been in operation well nigh the period
allotted to human generation, and the exhibit OF
its affairs Just published demonstrates in my Opin
ion its ability, and urges upon 1t the duty, to re-
wise it's rates and widen the range Of It's usefulness
by diminishing the price OF It's assurance.
The true mission of life assurance is to give to
persons OF slender means and especially the labor
ior those whom sudden death may reduce to help
less dependence. The special objects OF It's care
are INDECENT widows , and orphans The prices for
and scanty means, and should be the lowest con-
sisent with entire safety. would respectfully
ask your early and serious attention to the sub
ect; and that you may have the matter fully be-
fore you submit herewith new scale OF reduced
rates and certain suggestions with regard to the
future practice Of the company, should they meet
your approval and become the basis of our future
business.
The old net prices, based on four per cent for
money and the mortuary rates OF the American
are n n aaa ne alterations M arise m
expenses, which is reduced from forty to ten.
The yearly dividends under the new system WILL
Of course, be greatly reduced, and earnestly re-
| commend =
/. That the reversionary credits for these divi-
dends be given, as heretofore but that no use be
made of them TILL in every instance, their present
cash value, on the policy anniversary, shall amount
to the sum of two annual premiums when one
half may be available to pay at the expressed wish
OF the owner, the premiums then due.
2. That these credits be held to be assessabe to
meet any deficit that may arise IRON any circum-
stances whatever.
g. That in case Of death the whole OF the rever-
sonary credit be paid to the heirs as at present.
4. That the existing policy holders may have the
option either to leave their policies undisturbed
proportional dividend and reversonary credits,
subject to the conditions OF 2) or to take out
pay the rates corresponding to their then
present age, provided they subject themselves to a
new medical examination and are pronounced
| assurable,
The company will, by this most desirable plan,
| have within its control large fund to which it
may resort in time of trouble, should trouble come
to it: while 1t will avoid the Objectionable measure
i
which those who die cannot fail to have interest
| whose precise value 1t would be difficult to ascer
would merely add that this company has pio
neered its way to a condition OF unrivalled pros
perity and success. 1t has had large experience,
and the community may properly expect II to use
this experience to advance the interests OF life
assurance so as to bring within the range OF its
business the poorer classes. To compel these to
advance money beyond the true price OF assurance,
| hardship to which, think, they ought not to be
i subjected.
w. H. G. BARTLETT, Actuary.
No one needs TO be told that Professor Bartlett's
action in this important instance is merely Official.
We pray to be excused If we decline TO accept the
motives alleged for this radical movement in the
1 hitherto strictly conservative Mutual Life.
The notion that the Mutual Life has an rressti-
BILE desire to extend its benefits to the "laborlng
classes" or .'poOrer classes" is as amusing as
the suppOsit0n that the 'laborng classes' or
| s'pOOrer classes" in the proper sense OF these
terms have any special 'hankering' for policies
in the Mutual Life. All that humanitarian episode
in Professor Bartett's letter must be taken
as mere Official varnsh The care OF 'Tndigent
widows and orphans" reads very pathetically,
but every one familiar with the business knows
very well that life Inurance Is strictly hnan-
cial operation-nOt whit leavencd with any elce-
mosynary element, nor even governed by any
philanthropic sentiment, although, when properly
appreciated, charged with a highly responsible
fduciary character. In fine, the trustees OF life
insurance companies, especially purely mutual
companies, may be called public trustees; and the
highest exercise of their trust may be found In
keeping their companies up TO the highest standard
Of strength attanable by the legitimate operations
of the business. That function especially the
trustees and managers OF the Mutual Life have, up
to this time, most honorably discharged 1t affords
us no qualification to make an issue with the
serious "new departure" now projected for the
company. The strength Of the Mutual Life has
been the pride OF all life insurance men and all
| lovers OF sound life insurance in the country
II seems now as II the officers Of the Mutual Life.
| In revenge Tor the unworthy eDposltlon, direct OF