The New York herald., 1872-12-10

4 DAAancc0 ny Oan&ers
The two great conAagrations which brought
so many fire insurance companies to the
ground caused considerable speculation
and calculation among the learned in such
matters as to how provision can in the future
be made to osuccessfully meet such emergencies
While New York and Philadelphia generally
were discussing how to check the spread Of
fires astute mathematicians were considering
how the damage could be paid for III case
the efforts of fremen, steamers and gum
powder were of no avail Wise and pro-
found theories of mutual support were
broached, then the public began to
lose interest in the matter. and it was
relegated to the experts and the Interested
On the skirts Of this transient sensation comes
another, which is likely to last little longer
the rights and the wrongs of life insurance
There has been no destroying plague of terrible
dimensions in our midst and yet from all
quarters come the wall and the cry Of life in
surance companies. When we consider the
hundreds Of thousands of policy holders in
the United States whose provision for postum
nous contingencies makes them interested in
tho question. anything Of danger to the sys-
tenn demands careful investigation. Corpora
tions have no souls, and we never therefore,
can pity q corporation but when we
come down to look upon all the
hopes and soothed anxieties which
every cent Of premium paid upon
life policy represents it is different
matter. There the humane and the pathetic
step in with room for whole columns Of emo
tional writing. But we do not choose at pres
ent to harrow up the finer feelings of our
readers natures by giving way to it. The
fact is that life insurance Office, with all its
gloomy suggestiveness Of the undertaken, is
the last place in the world to meet sickly sur
roundings. Policy holders are presumably
among the healthiest of mortals, and too
much interested in living to grudge the yearly
premium, even under the temptation of max
ing their widows Ito be) comfortable or remar-
riageable. The peculiar case of DR.. West, at
present agitating the State of Delaware, is
certainly curious exaggeration of this feel
ing. He wanted, it would seem, to taste the
insured sweets of death himself. Outside,
then, of the affecting pictures on the insur-
ance companies placards, it may at once be
admitted that Of hard-headed, cold-blooded
prosaic calculation, these institutions are the
essence. Now as to the cause of the present
life insurance excitement.
1t is o story Of nineteen companies The
rich, responsible Mutual Life Company, with
a fifty-five-million surplus, has, by recent
proposition to reduce the premiums upon new
policies, thrown down the gauntlet to the
other companies, eighteen Of which have
united in condemnation Of the measure. In
their own statement the Mutuals aver that this
proposition to reduce the premium is simply
with the benevolent view Of allowing the
poorer classes to insure their miserable lives;
that their ability to do so arises from economy
of administration and the selection Of a
healthier grade Of policy holders; that, in
fine, it is rich enough to take the risk of
the 'loading' or marginal percentage above
the actual premium rate to pay expenses. 1t
is on the latter clause that the eighteen COM
panies take serious issue. Their argument is as
follows: This close shaving is dangerous, as
it is against all the experience Of successful
life insurance, that of the Mutual Life in
cluded; it is fiction SO far as benefit to the
poorer classes is concerned, merely insuring |
individuals at lower rate, but giving them
no benefit of the mutual idea, which is divi-
dends; it carries rather the reverse of benefit
to the present policy holders, and lastly, it is
likely to cause the ultimate ruin Of some
weaker companies. Again, the last reason is
the most potent Of all, and one that must
be given great weight. If the Mutual Life
Company reduces its rate so must the other
or witness all the new life insurers
of the country flock to the portals of the for
mer. It need hardly be stated that an insurance
company cannot live without renewed blood any
more than human being, and any visitation of
Providence in the shape of pestilence, or
even the elimination of its funds in the course
of nature, would render worthless many
thousands of policies now Of full value. The
alarming overflow Of charity in the actuary
Of the Mutual Life for the poorer classes will
not certainly carry much of its tinselled phi
lanthropy in face Of this view Of the case. AS
we have said, corporations have no souls, and
the sooner this proposition of the Mutual Life
is put on its proper footing the better. That
plainly stated, is to gather policies unto itself
by what most people would grasp at-a lower
ing of the rates-and so, if the other COM
panies refused to lower, stop their business
and eventually lead to their ruin. In case, too,
the other companies should lower to the Mutual
Life Company's rate, the latter would have the
advantage by making many Of the other COM
panies less secure The ratio Of expenses to
receipts shows that this would markedly occur
among the smaller companies 1t is little
wonder, then, the. the eighteen companies
strive energetically against this action of the
Nriual Life and that all their policy holders