New-York tribune., 1872-12-06

from future premiums thereon receivable are reuuceo
by the present of life annuity Of 90 &c. has gained
on its books mathematical surplus Of s57 5o Multiply
this apparent gain by the number Of poicyhoders In
the Company and have total reduction OF its icgat
liabilities OF $45S190 which is far below what wouid Do
the true reduction of such legal liabilities because the
average amount insured by each policy Is more than
oO instead OF q OO0 and the average age OF entrants
about 81 instead Of 25.
The policy-hoders Of the "Mutual," invited to walk
into this attractive parlor should stop at the threshhod
and consider that II they all DO So ii will unlock and re-
lease from So 100000 s0OOOCO heretofore exacted OF
them and held out OF their reach the plea tand we
doubt not. the fair plea) Of making them sae beyond
peradventure. Prof Bartlett does not state n In e1aety
thus way but he astoushngly near to our formula
he says: The Company will, by this most desirable
plan. have within its control a large fnnd
Either this surplus, 40 obtained. IA fictitious OF the
assumptions upon which the Mutual" has been doing
business and the solemn professions mas Deeh making
for the past thirty years are false
But having conveyed these millions from thei"holy OF
holles which they supposed TO be kept to Its
own possession "wthOut legal imputatiOn OF larceny
what does the "Mutual" propose to do with themi
Prof Bartlett anticipating this question, volunteers
an answer He says that the Company Will have within
its large fund 70 which may resort In time OF
trouble should trouble come TO IL, while III VIII avoid
the Objectionable measure of keeping on hand large
undivided surplus which those who die cannot fail TO
cult TO ascertain"
That is the Company viii keep twill hold to this
percentage OF Oyercharge which it has confessedy Ia
ken from its nsured-and at the same time, mirabRe
dictu viii "arod keeping on hand large undivided
surplus" This IS how to do IL and how not TO do IT, at
the same time but win not go far TO satisfy the con-
tribuors 20 ths large undivided surplus into posses
SION of which the Company suddenly and adroity
come.
And what are the advantages OF the new plan to
policy If getting their insurance cheaper is an
advautage-and we dispute this for the phrase cheap
insurance is contradiction in terms-they viii not
even got this. certain that the mortality will not
be decreased by this reduction in rates. and il s pre-
tended that the expenses will be diminished. The pre-
miums will be less and the return viii be less. Hereto
FORE the company claims returned As per cent OF
its premium Now the rates to be reduced upon the
average about per cent, and the dividends reduced
accordingly. BY so much as the pocyhoder IN Oaning
company the per cent OF loading, stricken
Off insures himself-and be it remembered that in
mutual company every member a certain extent muss
insure himsef-by so much does he, under the new
rates. go uninsured, e., there is provision for
those extraordinary contn gencies which have excused
a liberal loading of'the premiums. unless the fictitious
surplus acquired uniusly used 10 protect the new
poheyhoders at the expense 5f the old.
The fact In respect TO the average fepoey holder s
that be pays 500 and receives back dividend OF sj,
he richer by S2 than If he had pad SIS without return
We have chosen to avoid considering the baneul in
auence Of this "new departure" Of the Mutual" upon
life insurance generally, in choking honest competition
and crowding younger companies 70 the wall, for TWO
reasons: first that wanted to present the case dis
passionatey upon its own merits; and second, because
competition is not made upon the matter Of rates alone
Other and many other and more potential, II not more
important, arguments 20 to make up healthful and
successfutcompetition.
onr conclusion is that the Mutual Life Insurance Com
sVfv for F14la
L It has invited AL its poncy-hoders to medical
examination, which is to certify 20 each his existing
physical condition. Sich are now pronounced unin-
suTable wl and at all hazard Keep their poll
force while those pronounced as good as new
will make much sacrifice % do so; and thus Will be
reinforced that selection against the Company, OF
which Prof Bartlett sad, in able paper presented to
the National Insurance Convention, that 1t works
damage 10 a company's vital force"
O. 1t proposes 20 admit members upon better
footing than the old. is bad enough perfect mutual
ity being in view admit them on the same footing
The old members have paid the expense Of organizing
equipping ana establishing tho Company. New men,
bers inevitably lreap the advantage Of this To give
them more is unjust concession. And so by these
new rates Of the Mutual! mutually betrayed and
crucifed
g. By this maneuver. that grand old institution which
the storms and borne the brunt OF the battles
of the last 30 years. rendered liable TO two aspersons
either that this IS desperate bid for new business
(Which it does not need, orthat 1t is cruel effort TO
crush weaker companies. OF all institutions on this
continent the Mutual Life Insurance Company rich as
IL is can least afford 10 provoke this calumny.
L. This is fairly interpreted to be confession that all
its former assumptions and professions were false; to
weaken II destroy faith in life insurance, by edu-
eating the people to believe that an its boasted securities
are but mathematical shams that IL is based upon fc-
ton governed by expedenc and more uncertain Of ITS
own future than each of its patrons is of his In this 1t
is an assault upon life Insurance. which, If the honorable
trustees OF the Company do their duty, OF ts 7265
pocy-hoders know their rights will be repulsed to the
L.