The New York herald., 1872-12-06

walk fvto this attractive partyr should stop at th0
1o VIII nniocs M snS STes release % nom ~ ts
$4,000, 100 heretofore exacted ~ them ana DeI6
ont Of their reach on the plea and we doubt not
the fsir pleal OF making them sale tfyOnd per.
adventure Professor Bartlett not state 10 ~
exactly this way but he comes astonishfAgy near
70 our formula. dc says, "fhe company wns ~
tnis most desirable plan, have within IT. centro
large fund"
Either this surplus. 40 obtained, is fictitious or
the assumptions upon which the "Musuap has
been doing business. aud tue solemn profe ssaonsh
mas oceu making, Tor tue past thirty years. arc
Bat having conveyed these millions from lhS
be kept TO it, own possession sWIthOut legal in
putati0l OF larceny what does the .sMutubp
propose to do with them
Professor Bartlett, anticipating this question:
volunteers an answer. He says that the company
.ill have within it, control large fund to which
y may resort IN time OF trouble, should trouble
come TO IT. while II will avoid the objectionabiG
measure na m n q keeping on hand large undivided sur
TO ascel tain.r
THAT is, the company will keep It: will hold on ia
tins percentage OF overcharge which 1t has con
iessediy taken from its insured, and at the same
a large undivided surplus" This is how Co do ID
and how not to do 10 at the same time but it wiA
not go far satisfy the contributors to tnis largo
company has so suddenly ana adroity come
And what are the ADVANTAGES Of the new paa to
cheaper Is an advantage-and we dispute this. for
the phrase scheap insurance" Is contradiction
tain that the mortality will NOT be decreased hv
this reduction in rates. and II is not pretendettas
the expenses will be diminished, The premiums
viii! he less and the return will he less Heretofore
the company claims to have returned fOrty-iye per
SSt G its Now the s to be re-
and the dividends reduced accordingly BY so
much as the po.icy.holder ia Ioaning to the com
on, insures himseif-and be 1t remembered that in
a mutual company every member TO certain ex-
tent must insure hmseif-by so much does he, un-
der the new rates. go uninsured T. e., there Ia now
no provision for those extraordinary contingent
cies, which have excused a liberal loading OF the
premiums, unless the 1ctitoub surplus aoquredl ~
nnustly used to protect the hew policy holders at
The fact In respect to the average life policy
holder is, that II he pays 800 and receives back
dividend OF $45 he Is richer by S2S than II he had
paid $78 without return.
We have chosen to avoid considering the banef,lr
influence OF this new departure" OF the mutual"
upon life Insurance generally, in choking honest
competition and crowding younger companies t.
the wall, for two reasons-drst that we wanted t.
merits and second, because competition is nok
made upon the matter OF rates alone. Other, aud
| portant, arguments go to make UP healthful and
successful competition.
| Company has done an unwise thing, and for these
reasons =
medical examination, which is to certify to each
his existing physical condition Such as are now
pronounced uninsurable VIII, OF course and at all
hazard keep their policies In force, while those
pronounced ''as good as news will not make much
sacrifice to do so and thus will be reinforced that
selection against the company OF which Professor
Bartlett said, in an able paper presented to th0
National Insurance Convention, that 1T 'sworkH
damage to a cOmpanys vital force"
2. 1t proposes TO admit new members upon d
better footing than the Old. IL Is bad enough, per-
feet mutuality being in view, to admit them on th0
same footing. The old members have paid the cx-
pense Of organizing, equipping and establishing
the company. New members inevitably reap tho
advantage OF this To give them more is an unjnas
concession. And so by these new rates OF the
"Mutual'' Is mutually betrayed and crucifed.
3. by thus manRuvre that grand old institution,
which has braved the storms and borne the brunt
OF the battles OF the last thirty years. is rendered
liable to two aspersions either tlTat this ls des
perate bid for new business (Which 1t docs nOs
need, or that 1t is cruel effort to crush Gus
weaker companies. or all institutions on thi1
continent the Mutual life Insurance Company,
rich as IT is, can least AFFORD 10 provoke this
caumny.
l. This is fairly interpreted to be . confession
that all Its former assumptions and professions
false; to weaken II not Destroy faith in uf6
insurance, by educating the people to ha|eve thab
ali its boosted securities are but mathematical
shams that it is based upon fiction governed by
eXpediency 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, II the honor.
able trustees OF the company do their duty, or lta
1926 policy holders know their rights, will be
repnlsed to the discontinue IL not the dish0nor.
OF those who have made lt.-FtOm The Chronicle.
Dec. S, 1872.