Evening star. [volume] (Washington, D.C.) 1854-1972, 1872-12-18
a Card.
TO THE WASHINGTON PoLIcY-HoLDgRs OF
THE MUTUAL LIFK INSURANCE COMPANY OF
INV YORK.


TO TIE WASHINGTON PoLIcY-HoLDERs OF
THE MUTUAL LIFE INSURANCE COMPANY OF
INV YORK. -
My attention has been called TO a publication
in the city papers signed by q number of New
York policy -holders of your company, protesting
against the proposed action of the trustees in
reducing the rates for new insurers after the
hrst OF January next, as prejudicial to the
interests OF the present members.
AS the agent OF this great CORPORATION in this
CITY, feel called upon to publish few words
trust, will prove satisfactory.
The idea that the interests OF the present
policy, holders would be at all injuriOusly at
absurd. The Mutual Life Insurance Company.
by an experience of 30 years, aud a business
large enough to command the laws of average
has established beyond any question, that the
=" loading or margin allowed for expenses in
the present rates, is larger than Is necessary in
their mode of conducting business. This excess
has been heretofore periodically returned to the
from other sources) in their so-callsd divi-
dends." These dividends, in the case of an
ordinary life policy, do not fall short, even for
the fist year, OF % per cent. of the whole an
nual premium, and it is the opinion of their
eminent aetuary, Professor Bartlett, late OF
west Point, that this percentage OF present
rates can be fully maintained in the future,
after making the most liberal allowance fer
the legal reserve, and for every possible un-
favorable contingency.
The proposed change simply contsmplates
There seems to be little use to receive one hum
bred collars from policy holder at the begin
ming of the year, with distinct understanding
that % or 80 per cent. of il is to be returned TO
him at the close. III the reduction iufIinged in
any way on that portion of the premium re-
served for losses, or legal premium reserve, 1t
would be obviously unwise; but it does not SO
lDfringe-it comes solely from the "loa ding" OF
margin for expenses; and the company BY
watcbfulness. prudence and economy, and bv
It's enormous bulk of business, has 30 diminished
the ratio OF expense that the reduction can be
made with perfect safety, and will be an obvious
convenience to those seeking insurance.
Now, as to its effect on existing policies:
very brief examination will show that IL only
anects them favorably. Each new policy-hOlder
viii be charged in his accruing dividends with
the full amount Of the reduction in original
premium, and OF course his dividends will be
LropoInona,ely smaller than those of the old
rate policy holders. Not only so, but the divi-
demos OF the old poIcy-hOlders will be larger
LOT, as there Is 10 increase proposed in the com
missions OF agents. an enormous reduction OF
expense wall be secured, which, of course, will
be direct gaiu 10 the sum available for dstri-
button among all the insured.
The agents of the company are certainly
haIc- hit BY the proposed change, and have the
right, If anybody has to enter Complaint and
protest, ss their commissions are from fest
years premiums only; but the Mutual Life In
surance Company, of New York, has always
oetn IN the habit OF conducting its business
soieiy IN the interest of the policy .holders and
does not consider itself as q mere source OF pa
uohSee and Irsht Tor its employees.
In conclusion would say that it Is not diff
cult to understand the virtuOus Indignation of
other companies, nor their lively sympathy for
the imag inary wrongs of policy-holders; nor Is
- IenaIksbIe that among the seyenty-seven
few dozen couid be found to sign the publication
siluded TO above, especially when the expense is
Kindly borne by disiDterested friends.
am personally veIl-known to almost every
individual ofthe class to whom this card is adj
dressed, and beg that il will be accepted by
them as simple and tolerably concise state
ment OF the reasons which counseled the pro-
posed reduction OF rates. and OF the results
which will probably ensue upon their adoption
ID. LEWIS BLACKBOARD,