New-York tribune., 1873-03-15

a., ,o,., IN te-p,s Of ayordupois. Mr.. Boutwell,
having to employ sSensnc th Tad Of each metal on
by taking the specific gravity OF each nso ana fS
the proper formula IL such boOkhooPihs ''0
the iast half OF the nineteenth century,
SURRENDER VALUE
There Is more difficulty IN precaicua''ns HaN''
Mum surrender charge and consequently minimum
value every possible year OF every desirable
policy than there precalculatinG the premium In
fact that work ia already done. No such valuc, how
ever ia ordinarily stipulated in the policy, but it might
be with perfect safety TO the Company and 1t would be
m,uSnsey 10 the advantage OF evory honest Company
10 do IT, This would secure least three important
objects l. 1t would give the policy tangible money
yaiue making IL useful as security for loan TO aid In
maintaining through tight place. or for any other pur-
pose O. IL would make the officers In some measure,
ike those of an ordinary savings bank, more imme-
datey responsible TO individual policy yholders, so that
greater pubic confidence would be secured, and the
necessity for. well the labor Of State supervision
would be reduced nearly to Here Is something for
harassed life insurance officials to think seriously Of B.
1t would remove all possibility OF complaint from the
tongues OF retiring members, and avoid the back
water caused by too many OF them. Everything being
fairly f0retod 10 and fOremOwn BY the policy holder
being inscribed IN plain figures on his pocy ise rom
the first year TO the last of its tcrmhe will have only
himself TO blame II he changes his mind aud retres be-
for. He cannot then. as now bitterly say, 81 was
entlced in by seeing in the companys prospectus
paragraph promising TO give me an equitable slrreI-
der value In should at any tme wish 10 dlscOh-
tinuo but when at last was Obliged to do H. the Com
pany refused TO give me ANYTHING OF inc soi oecau'e "
was not stipulated in the policy" , ,,
Here is very swampy spot IN the business, (lnd
apology for surrender value, whether IN cash or whht
te party scarcely wants, pad up whole lie IN
surance is simply ridiculous When TWO OF three year
ago. the Auditor OF the State OF ONO took into his mead
to ask all life insurance companies their rules hnOnt
value, the answers he got ana published ex-
cited broad guiiaw and copied by an Insurance
journal under the head OF " Facetl9 But they nave
been laughing matter TO thousands OF poor men VINO
$50 to 500 beyond any righteous surren
der charge
DIVIDENDS on THE CONTRIBUTION PLAN.
This plan of distributing the surplus of mutual life
,.IaIo nf,yin iifX
and theoretically 1t has carried the day. But it does not
decide the previous question of the mode OF assessing
the expenses and when prcfaced by the false method
above exposed OF assessing expenses IN proportion 10
premiums il becomes practically either farce OF an n
possibility. This trouble eyaded Ia the company
where the contribution plan first practced, be-
cause the excessive surrender chdrgts III l coPanS
To the working expenses, 50 that that burden
thrown wholly on retiring memDtfs' Hut
If the policies stpuae righteous surrender value, the
retiring members Will leave nothing iin the company
which properly be applied 10 deiray the wOikns eA
penses OF the wear in which they What they 40
leave must either be held additional reserve against
impairment OF the average vitality, or II must DC OK
pended in the future years TO repair that average by
the procurement of new insurance value Of higher vi
alty. Companies cannot expect much longer 10 tnro"
the whole OF their expenses the retiring members
Most of them retire too early and the old members are
consulting equity lawyers about the rights unutr ger
tain promise OF the companies outside OF the policies
Hence If the combination plan to be thrown to
dogs, there necessity OF assessing expenses
on Insurance value II this ~ done ana the books are
kent and D0cips written as above described, contrbu
on dividends will work admirably ana be lnteIlSlDie
to everybody.
The TRUE REMEDY.
Its in vain look legislatures to correct the errors
of life insurance Legislatures cannot impair the obli
cations OF existing contracts As to future policy
holders OF their existence as such, they
are not likely appear in person. by counsel before
any legislature The insurance corporations Themselves
If they appear, likely TO ask the Legislature to
tie u i'm any way their hundreds OF hands They are
more likely to ask Just the There is funny
story about lie insurance president who spent several
thousands of the COmpauy's money at state capital
aud had the amount carried its books To the dividend
account where of course. il appeared credaOy II not
logically. The only hope of having business IKE
business in life insurance, lies IN enlghteniDg TIE pubic
mnd through press and the lectureroOn up To the
point OF making all applicants for Insurance insist upon
being dealt VITA inteiglDy aud reasonably, or not
AT Al. ELlZUg WRIGHT.
BOgL,u. March G. 1873.