The New York herald., 1872-12-10
INSURANCE..
IME MUTUAL LIFE INSURANCE COMPANY OF
NEW YORK.

One or two statements officially published In the
daily papers over the signatures OF +. s. Winston.
President, and w. II. O. Bartlett Actuary. In de-
fence OF the recent acten OF tho company, de.
mand reply from mo.
1t is Offically stated that "the trustees OF this
company, after critical examination of the thirty
years experience or the company. and on mature
dcberati0n, unanimously resolved once more to
reduce the rates OF premiums" Also 0:-"The rates
OF premium first used by this company were b0r-
rowed of necessity, from English companies. In
the year 1858 alterations ana reductions were
recommended by MIR. Charles Gill, the first Actu-
ary OF the company, and adopted by the trustees.
! In 1868 Mr.. Sheppard HOmans, then Actuary, pro-
| posed further corrections many OF them reduc-
tions in the table OF rates, which, after investga
ton, were adopted on his recomme ndation."
No recommendation was ever made by myself as
Actuary, to reduce the rates OF premium. l have
never heard that Professor Gill, the first Actuary
ever made such a recommendation. The rates Of
premium OF the Mutual Life Company never have
been reduced by resolution Of the trustees. on my
recommendation or otherwise Slight changes
have been made In the premiums, rendered de-
sirable by the adoption o. improved mortality
tables but the margins added to the net rates for
expenses and contingencies have each time been
increased, not reduced. The premiums at certain
ges, by reason OF errors in the mortality tables
formerly used may be trife less now than In the
carrier history of the company, but the premiums
on the average are higher Nothing has ever been
said or written by myself that would favor dis
criminatiOn between present and future insurants,
as Is now contemplated by the company.
The rates OF expenses published by the company
are incorrect, unjust as compared with other COM
panies. and are calculated to mslead.
The striking success of the Mutual Life Is not
questioned; but every element which has conduced
to that is an argument against the measure
recently adopted by the trustees. y !.
| The issues involved in the adoption OF this meas
ure by the trustees OF the company, and which
seem to have been overlooked by Mr.. Winston ana
Prof. Bartlett, are simply these :---.-.zs.;..,,-
! Have the trustees Or strictly mutual corpora.
| ton the right to admit new members upon more
/ favorable terms than have been and will continue
to be exacted from existing mcmberss Have the
trustees OF the Mutual Life Insurance Com pany the
right to charge lower premiums for new nsurances
than have been paid and are still required to be
paid by existing policy holders, especially when
this may involve expense to the latter may dimn-
sh their security and may prejudice their rights
and intcressP
The whole plan is bid for new business upon
terms which would be certain ruin to any new
company without the security affDrded by q large
guarantee capital. The present assets OF the com.
pany belonging wholly to existing policy holders,
In weldelined proportions, would be staked as a
guarantee or security against extra expenses or
unexpected losses under reduced premiums These
assets held in trust may not be hazarded for such
purpose, or by permitting present policy holders,
II in good health to sell out, withdraw their entire
shares OF the assets, and be Insured at less
than they now pay The security now Afforded
persons Of impaired health would be lessened, If
vtv laa I.fa, -,
Three actuares whose opinions were asked by
the officers OF many companies, have stated as
their deliberate )udgment:-
We are unhcsitatingy of opinion that the reduc-
| ton OF premiums as proposed by the Mutual Life
Insurance Company Of New York Is unwise. def
cent In security, unjust to existing policy holders
and prejudical to their rights and interests, and
deserving our unqualified disapproval
Two or these gentlemen in professional attain
ries In this or any country. They are men of
the purest personal character. My own expert
ence Of seventeen years in the Mutual Life Com
pany would seem to entitle my opinion on actua-
rial matters to some consideration. As an old
policy holder have right to express my opinion.
Assuming the motives OF philanthrophy and
benevolence urged by Professor Bartlett In its sup
port to be the true motives. the measure is a
blunher; but II the real motives are iess worthy
than those stated, rs has been charged, 1t Is
measure deserving the condemnation not only OF
every person interested in life insurance, but Of
every who desires integrity and Just accounta-
bility in corporate management.
SHEPPARD HOMANS, Consulting Actuary.
NEW YORK, Dec. Q, 1872.