New-York tribune., 1872-12-09
LIFE INSURANCE.
REDUCTION OF RATES-TTlE NEW POLICY
MON me Ne,r- YORK rli-. .'rttcr December, ls'S


aggressiveness Of radcali'n Were not ire ceh'iuga
oon,roed nv the centrpetG planet would speedily
diss,nate into infinite space aud tha great preseryatve
law OF grava;on prev n the spiritual as well as IN
the material world So Go regulate the necessary move
,oent OF human progress protect that which
a. good from reckless dsn Tation is the ambition OF
all GOOD men, The successful efforts Of nearly 200 years
have given us benenccnt institution in the form OF
Life Assuraneein the sphere OF social scence-the very
flower OF our modern zatiOn scheme by whieh we
stretch our hands beyond Tie TO shield aud COM
fort those we love earth or all social organizations
or institutions ,ts more than all Others
seems to demand proceeding egis OF conservatism
not an atom OF its firm accrcton should be exposed TO
the inconOclastie touch Of abd radioalism
Not from without is snv danger threatened to the
stcture OF Life Assurace IL is within that the
citadel is being mined FROM motives that may be easily
enough imagined but thI is not necessary 70 denne
here the managing oficers OF the Mutual Life Of New
York-the great STANDARD Company OF the coun-
try-have come 10 the resolution to recommend thas
their Company shall abandon the conservative primer
nles on which the institution has been built up and de-
ecend TO the cheap joan plan Of reduced rates. in
order to compete for future business. The compara-
lively Acuary OF the ltual Life, Prof Bartlett an
eminent mathematician and honOred authority but not
yet much experienced the practical working OF hte
assurance has appear a1ressed to Mr. Winston the
President of the Mutual i.e official letter, under
date of 12h November iust nj, recommending IN eneet
that Company shall reduce its life rates about one
third In order TO give persons of slender means ana
especially me labOrng cssS,' the benefits of life ass-
rance This letter which shall now give In ful, 70
prevent any misnterpotaaon. has been "read to the
Insurance Committee and after discussion. ordered to
be printed for private circulation among the trustees,
with a view TO future aejion upon it by that body"
This is the letter:
The MUTUAL ItFr INSURANCE COMPANY OF
NEW-ipP November 12 1872
Fs WINSTON esq P'esgs.a &c. De- 30 ,cou,,,.rv 10.
U Il
human generation, and the exhibit OF its affairs just
pTges n9on the duty to rse its rates and widen the
range OF its usefulness hoy diminishing the price OF It's
The true mission Of lie ssurance give TO persons
OF slender means and especially the laborng classes
the opportunity TO provide support for those whom
sudden death may reduce 70 helpless dependence The
special OBJECTS Of It's are INDECENT widows and or
trom bar5IyaarEed ana sc1nty me ms and should be
the lowest consistent wh entire safety. would re-
spectfuy ask your early and serious attention 10 the
subject; and that you may matter fully before
Won submit herewith a new scale OF reduced rates,
and certain suggestions vita regard to the future pac
and and become S % the basis o. orr future business
Tue old net prices based on four per cent Tor money
tanned and the atea M 1 TSe ITSL0 c1S I1e T
The yearly dividends under the new system will Of
course be greatly reduced, and earnestly recommends
That the reversonary credits Tor these dlydends ne
given heretofore but that use be made OF them TILL
Ia every instance their present cash value ON the pol
Icy anniversary shall amount to he SUN OF TWO annual
premiums. when One-half may DO available to pay at
the expressed wish OF the owner, the premiums then
due.
any deficit that arise from any circumstances what
That in case of death the whole OF reversionary
credit be paid TO the heirs as at present. ~,
g. That existing pollcy-boders may have the option
either to their policies undisturbed and pay their
old receiving of course, Their proportional dlvi-
dend and eversOnary credits subject TO the conditions
OF C) TO take out policies, vita their existing
credits added and pay the new & rates 20
to new medical examination ana are pronounced as
The Company will, by this desirable plan, have
within control large fund to which may resort IN
should trouble TO IT. while IL Will
avoid the Objectionable measure Of keeping on hand
large undivided surplus in which those who die cannot
fail 10 have an interest whose precise Nalue IL "ouu DC
difficult 70 ascertain
its condition OF unrivaled prosperity ana sue
It has bad large experience and the community
the interests life TO bring within the
its business the poorer classes To compel thee
10 advance money beyond the true price OF assurance
only be returned at the end OF twelve months Is
hardship TO which think, they ought not 10 DC suo-
WM II. c. BARTLETT Actuary.
No one needs to be told Prof Bartlets action in
this important instance merely official We pray to
be excused decline accept the motives alleged
for this radical in the hitherto strictly
servattve Mutual Life.
The notion thar the Mutual Life irresistible de-
sire to extend benefits to thelaborng classes" or
poorer classes" amusing the suppOsition that
the laborng classes pOorer classes" in the proper
sense OF these terms have special "hankerng for
policies in the Mutual Life All that humanitarian cpl |
sode Prof. BartleIts letter must be taken as mere
official varnsh. The Of "indigent widows and Or
phans" reads very paheticay, but every one familiar
with the business very well that life insurance is
strictly financial operation-nota whit leavened with
any eleemosynary element governed by any |
phanthrOpc sentiment, although when properly appre
cated charged with highly responsible hducary char
acter In ne the trustees OF life insurance companies
especially purely mutual companies may be called pub |
tic trustees and the highest exercise OF their trust may
be found in keeping their companies up to the highest
standard of by the legitimate opera
tons Of the business That function especially the trus
tees and managers Of the Mutual Life have up to this
time most hOnOraby discharged 1t affords us no grat
0cation to make an issue with the serious "new de-
parture" now projected the Company The strength
Of the Mutual Life has pride Of all life insurance
men and all lovers OF sound life insurance the country
1t seems now as IL the officers of the Mutual Life, in
revenge for the unworthy opposition, direct or ndi
direct OF successful rivals have resolved TO level
the principal defenses OF all life companies and expose
the whole business tothe influx OF experimental theory
When the loading for expenses is reduced from 40 per
cent 10 10 per there margin left to pay agents
10 solicit life Insurance. much ess TO accumulate re-
serve for any contingencies.
Let us particularize little. According to the recent
summary OF the years and II months experience OF
the Mutual recently published. it is shown that the
total receipts so called amounted 20 O3s o. made
up thus:
Premiums received ia cash. $6l677770 3
Premiums received IN surrender OF dvi-
dends" 23loAo00 VI
Interest, rents, lf4oOOi "
Total s1O5. .317 03s 90
Then we see from the summary that the expen-
ses OF the company for that period amounted to
s1oSs3Sso 6s Deductng from the amount OF premium
receipt the Ss 5266O o. stated as received by surren
dor Of dividends" which was really money receipt at