New-York tribune., 1872-12-10
LIFE INSURANCE.
THE MUTUAL LIFE INSURANCE COMPANY
OF EEW-YOSK.

OF kEN-1C-h'
Ono OF two statements officially puOnsheu
in the daily papers over the signatures OF f. : "i
cen Prc.dent and W. H. c. bartlett. Actuary in dc
topso az tha recent action Of the Company demand
roHy fr0m me. .,- -.
II q; officially stated that The trustees OF tis Com
many after critical examination Of the 80 wears eApe
re,,ce OF the OA%pany, and ON mature dehDeFallon'
unanimously resolved more TO reduce the rates oil
rreniums" Also: "Tho rates OF premium first used by
This Company were borrowed, OF necessity from English
companies In tne year 1885, alterations aud reductions
were recommended By M Charles Gill. the first Acuary
of the Companv and adopted BY the trustees. In lsOs
MI sheppard Homans then Actuary. proposed iurther
corrections many of them reductions, III the taOe oi
rates which, after investigation, were adopted on MS
recommendation"
No recommendation was ever made by myself, as Act
uary 10 reduce the rates of premium. nave never
heard that Prof Gill; the first Actuary ever made sueh
a recommendation The rates OF premium OF the Mutual
Life Company never have been reduced by resolution OF
the trustees, on my recommendation or otherwlse'
Slight changes have been made IN the premiums rem
dered desirable by the adoption OF improved mortality
tables but margins added to the net rates for ex-
puse aud contingencies have each time been increased
not reduced The premiums at certain by reason
OF errors m tie mortality tables formerly used, may be
trhe less now than the earlier history of the Com
pany. hut the premiums on the average are higher
Notlinr Ess ever been said or written by myself that
would favor discrimination between prescut and future
insura1;s. Us IS now contemplated by the Company.
The rates Of expenses published by the Company are
Incorrect; UNREST as compared with other companies
aui ccc cgl, U.ntcd 10 msload.
TIs sI!.ug success OF the Mutual Life Is not ques-
uoac' bt every element which has conduced to that
succcss - an argument against the measure recently
a u..ej ;y tie Trustees.
T. Issues Involved II the adoption Of this measure
by o.. g-us..,s Of the Company, and which seem TO
yi,tsf, md prof Rar
lest ar. .i-py these;
Have tc trustees OF strictly mutual corporation the
risAt admit members upon more favorable terms
than lave and will continue TO he exaoted from ex
iSnc mcnbcrsl Have the Trustees of the Mutual Life
Insurance Company the right to charge lower premiums
for new srluccs Than have been paid and stil re-
qnircd to De paid bv existing poicyholders, espe-
cay when tds may Involve expense 70 the latter may
diminish their security, and may prejudice their rights
and iujerostsg
The whole plan is bid for new business upon terms
whi,h would be certain ruin 70 any Company, with
ont tlo security Afforded by large guarantee capital
The pres Ut assets OF the Company belonging wholly tt
existing pOicy-hOders, in well-de1ned proportions
would be sa,ed guarantee security against extr
expenes unexpected losses under reduced premiums
These assets held III trust may not be hazarded FOR sue
purpose, or by permitting present pohcy-holders y q
good health to sell withdraw their entire shares
the assets and insured at less rates than they no
pay The security now afforded persons of impaire
health would be es5ened, if not utterly destroyed
such a course.
Three ac.uaries, whose opinions were asked by III
officers of many companies have stated their delit
crate Judgment:
uuhositatingly Of opinion that the reduction
premiums as proposed 10y the Mutual Life Insuranc
Company Of New-York Is unwise, deficient in security
unjust 70 existing policy holders and preudical to thc
rights and interests, and deserving our unqualified dis
approval
Two of these gentlemen in professional attainment
and character are among abest aetuaries in this
any country. They men of the purest personal
character. Ny experience Of II years in the Mutua
Life Company would to entitle my opinion OF
actuarial matters 10 consideration. As an Ol'
pOlicy-holder. have o right TO express opinion.
Assuming the motives Of philanthropy and benevoleuc
urged by Prof. Bartlett in s support to be the tru
motives, the is a b'under; but if the rea
motives less worthy than those stated has beel
charged, II IS measure deserving the condemnation
only OF every person interested in life insurance, bu
Ofevery who desires integrity and just accountability
in corporate management SHEPPARD HOMANs
Nelo- York, Dec Q, 1872. Consulting Actuary.