The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1873-08-29
MISC Us NOTICES.
From the New York Commercial Advertiser
Aug 26.
Life Iusurancp-A Few Plain Truths

MISCELLANEOUS NOTICES.
From the New York Commercial Advertiser,
Aug g.
Life Iusurance-A Few Plain Truths.
The Equitable Life Assurance Society," of
this city Insists upon fitting the cap upon its
own head So be it. 1t was not the purpose
of the discussion originally opened through the
columns of the Commercial AdUertiser. to make
a personal issue of the important questions in
volved in fair comparison between the Mutu-
al and ,)oint-stock syst9,us of Life Insurance,
but rather to present the arguments advanced
on either side in such a manner as to lay be-
fore the public clear statement of the natur-
al results of given methods in the conduct of
vast business interest. 1t became necessary, in
consequence of the floud of misrepresentation
which had been widely circulated, to go direct
ly to the core OF the subject,an TO show wnere-
in the Inherent defects of Joint-stock enter
prise imperilled the stability of Life Company
formed upon that basis; and, in order to make
the comparison between the two systems as
definite aud convincing as it was possible to do
in the limited space 1T command, tue leading
Company organized under each of the rival
plans was cited as an example. But in making
his selection of the Mutual Life on the one
side and the Equitable Life on the other, it
was also distinctly announced that they were
| taken as the representative bodieS-n0t neces-
sarily to be regarded as in antagonism to each
other One represented the very perfection of
| the Mutual SYSTEM as proved by the long ex-
| perience OF thirty years OF active and prosper
| Gus life; the other represented the best ele-
| ments of the rival PLAN with fourteen years
| of dlligent effort at its back. The official rec
| ords of these Companies as laid before the
! State Superintendent, We're taken as the basis
/ OF comparison, and from statistics assumed to
| be correct the superior advantages of the Mu-
tual plan were deduced. No attempt was made
| to cast discedt upon the Equitable Company,
nor was the hostility of that stock concern in
vited; the defects of the Jont-stock system
were simply indicated, and the inevitable re-
| suits of those defects We're carefully described.
| But, apparently inspired by that sweet con-
| seriousness" which causes the hero of the play
to think fondly upon past escaDades, the Equi-
! table Company has chosen to apply to itself
every criticism directed at the system il repre-
sents; and, having thus confessed more than
has yet been charged, reveals the weakness of
| its cause by descending to evasions which it
now becomes an imperative duty to expose
| Yet, while truth and justice demand this ex-
posture, it must be promised that the task is
undertaken with reluctance, and that if blunt
words be used, they are used only because the
occasion demands plain speech
The communication which appeared in these
columns on Saturday last, under the sigma ure
of Mr.. G. w. Phillips. AGtuary of the Equta-
bic Company. was III effect confession Of all
that had been alleged against the Joint-stock
system of Life Insurance-but it was an unfor-
tunate production nevertheless. 1t professed
too much and too little-too much when it mis-
| represented results, aud too little when. it at
tempted to be precise. Ii would he but waste
of time and space to follow in detail an argu-
| meut loosely constructed and supported by in
| complete proofs vet, as the subject in dispute
is one which closely touches the interests of a
very large class of our citizens, one or two of
the errors into which Mr.. Phillips has been be-
trayed may be properly corrected before pro-
ceeding to the more important points in the
case.
First-The Equitable, according to Mr.. Phil
lips, has for several years past done more new
business than any other Life Company in the
world, and its expenses should be larger, COM
paratively, than those of other Companies whose
new business bears much less proportion to
their DID," 1t is the misfortune of the Equita-
BILE that its s'new business" leaves it much more
apdy than has ever been known in the hsto-
~ of any other Life Company: The reasons for
the sudden sickening that affects the spirits of
its policy-holders will be revealed presently.
Meanwhile, here are the official tigures-taken
from Superintendent Chapman's Report for
1873
Mutual EQUITABLE
Old policies revived during
| the year 1872. ...... ...... 2,131 713
Old policies incre sell in amt. None.
Total policies in force January
! Gross cash received for new
and renewal premiums, 1872, Si4.3s1 1868 S7426,s61
Being interpreted, these figures mean that
! the insurers 10 the Mutual Life cling to that
Company, revive their policies when through
| any accident those policies lapse, receive large
| ulNluoDuS, anu are cprtdlu OF Il PRONE because
the business is conducted strictly upon the Mu-
tuai plan. Three to one is the proportion of re-
| vivals in favor of the Mutual as against the Eq-
uitable. as the foregoing table proves.
Second.-Nr. Phillips contends that the Equi-
table secures to the policy holders all the ben.
e1its that could arise trom the Mutual system,
with the added advantages of an outside amount
pledged for their security, and the prudent
management of the Society" Perhaps the best
answer to this statement is the revelation of a
few facts not generally known, but which must
now be made public. These facts are:
/. That the Equitable Company is governed
by small clique of stockholders, who expend-
ed the enormous sum of 81. 296 900 in conduct
ing premium business of 81, 426, 900 last year
while the Mutual Life carried on premium
business nearly double the amount that Of the
Equitable with an expenditure ouly $50, 800
greater,
2. That not only the accumulations of the
Equitable Company are not the property of the
pOlicy-holders, but not one dollar of such accum-
ulatons is their property. NoG single policy
holder in that Company can thro~ his vote for
the directors and officers who have tue lingering
of its enormous funds-not one can exercise the
slightest voice. much less control, in it's man.
agement. The cooperative powers, persuaut to
its charter, are vested in directors chosen solely
by the holders of its one hundred thousand dol
lars of CAPITAL stock and this produces the mon.
strous condition of a majority, or the holder OF
ffty-one thousand dollars worth of such stock
welding absolute, unchecked control over accu.
mutations of nearly twenty millions of dollars
contributed by its policy holders.
8 That the stock Of the Equitable is uuattain.
able at price five times above its par value
that is to say, $500 for S100-yet Mr.. Phillips
writes that the stockholders of the Company
'have pledged as a guarantee of their good
faith" that they shall drdW legal interest only
Seven per cent. on capital of 81, 100000 is
$7,000-how. then, shall the immense rise in
the value of this stock be accounted for? Tt is
evident that the policy-h0ders of that Company
do not derive from it call the benefits that could
arise from the Mutual SYSTEM
! 4. (and lastly For the presently That one off,
Ger of the Equitable Company recei0es an darud
compensation of Eighty Thousand Dollars, by
virtue of contract made with him by the
clique four or five years ago. This also does
net secure to the policy holders sall the benefits
that could arise from the Mutual system"
On this latter point il is hardly worth while
to be more specific just now. The fact is suff
GENTLY startin9-but 1t is an illustration of thu
possibilities of the Jointstock system, and a;
such may be commended to the careful consid
GRAFTON of policy holders who have not yet EN-
braced the advantages offered by the purely
Mutual plan of Life Insurance.
There is much more to be said on this subject
To day, few only of the ''rottennesses" upon
which the State Superintendent nas comment
ed are revealed, as an essential part of the cur.
rent controversy.
| Messrs f. o. Bailey & Co, will sell at Il
o'clock to-day at Salesroom Is Exchange street
Eight barrels Pork on accodnt, Comms5ary De.
partnent Fort Prebe.
VASES and toilet sets of elegant designs may
be found at the Dollar Store, 2S4 Congress stree
1yu