The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-02-25
LIFE INSURANCE.


rIirur WrighI's New PIan-.The Saw
tnus Rank SysIem..Mr. Wright EIs
nIHIns..ErFOrs Pointed Outs.An
aid Misunderstanding PTeml'
ums"..Cheating the People to Benz
rGt AgenIs..An Interesting Show
iuE by an Experienced AcIuaTy.
10 tho Rdlto'ol the Courant)
Al your invitation the secretary Of the
charter Oak Lie lns. Co, in your issue
n DECEMBER II, produces au argument
in favor o. the lately proposed reduction
II rates by the Mutual Life ms. Go. OF
New York, in the course OF which he
sludes TO me in the following language.
"Wr, Wrighl'slpoi;iOa towards tho Md
n.l Lie is very astonishing, wheni 1t
/. we'll known that tor some time past he
has persisIently urged plan OF insurance
uDon the companies, which on large class
~ Of policiCs does not provide Tor any.
ming like the amount Of expenses which
/, furnished by tue new rates Of the Mu,
tusl Life. lie nov objects to n loading
On endowment insurance, considerably
more than his own plans contemplate, us
being unsafe. II il Is so, what sort Of IN
adviser Is Mr.. Wright TO be SO considered
Shen he urges his own plans with so.
very little margin for expenses that only
one company has as yet been induced 10
Use thGmr"
lie also says OF me in connection with
TWO other persons, that | am on record In
favor Of that which now condemn.
Its not that differ with him inIegard
10 the reduction OF rates, or 10 defend
myself against what l deem 10 be a per
sOnal Injustice, but 10 explain matter In
which the public has a deep interest that
has thus far been left out Of sight in this
discussion, that l ask space in your COL
umns to reply to this
Sir. White cannot possibly h9 50 severe
oa Inc in regard 10 my past short comings
"a an myself. But prefer TO tell the
story Of my own guilt, and confess my
real crime. 1t will then be seen that |
sm quite innocent Of ever advocating such
reduction as the Mutual Lilo proposed.
Though the premiums charged by the
Mutual Lie Insurance Company have
never, in my opinion, been, on the whole,
TOO high, it is quite undeniable that some
orthem are unnecessarily high in relation
10 others. In truth there was committed,
long before | was born, and before lie
insurance was born in America, blum.
der In what Is called "load the premiums"
which OF course extended to agents com.
missions and the assessment Of expenses
among the members. This was adopted
unwittinglY 10 this country, with most Of
the other rules and practices oil the bust.
ness. 1t did not become very apparent
N troublesome TIL We had gone largely
into the practice Of issuing endowment
policies. Then, when 1t was attempted
10 distribute surplus, either on the per
centage or contribution" plan, the most
Astounding and unsatisfactory results de.
veloped themselves. l, for one, discov-
cred that something had got wrong end
foremost, but was unable to see what,
or how TO sat 1t right. l carefully ex-
plored the literature OF tho British insti-
tule Of aCtuaries, but got no help from
that. Hints Of the trouble were given IN
tue ninth report OF the Massachusetts i'll
suranCe commissioners in 1854 (see report
with appendix, 1865, pages 274 and 1867
BY about 1869, when the blunder was
cheating people out of millions, for no.
bOdy's benefit but the agents, oil at once
the right way Of assessing expenses, COM
penssting tho agents, and keeping the &C.
counts Of u life Insurance company dawncd
upon me. Not to have discovered this
before was intensely and almost inlolera.
Lac 1f1Vtn kNRn Ayr 1nn RNf
ly than | had recommended endowment
Insurance policies. Tens OF thousands
had taken them, and on the short terms
been as good as cheated, every mothers
sou OF them. And | had ignOrantly Rc
quiesced in tue stupid and stupendous
Olunder by which this was brought about .
could have torn tho hair oil from the
top d my head il there had been any
there, and 1t would have done any good
And yet was US sure Qs ever that endow
ment policies were the right ones TO take,
y hey could Il dealt By tqaltd6iy az 10 the
EsgtRSs
Nobody would have been gladder than
10 have had my discovery proved mis-.
lake. And ! will pay handsome re-.
'"'N " Nul buC WIN VIII W. ~ INV !
saw II then, and see It now, that the com
pAnles that have trusted me as their i'd
TerIlsSr arc in danger Of coming to grief
lot by want OF funds but by want Of
equity within themselves. On this ac-
count called together my brother actua.
Lles in 1870, At the Mutual Lite Otllce in
New York, in presence Of Me- Winston,
aud some Of his directors, and hNd the
method Of loading premiums and aSsess-
ing commissions and expenses discussed
think It was unanimously agreed by the
setuarieS present that the old procedure
wss wrong, and the only question was
how, without alternating the agents, who
Ste interested In the present cxotbilauI
commissions on endowment policies, the
base could be changed from premium to
insurance value" It was concluded that
aething was only possible by concert o.
action Of the leading companies, and
understood Nr. Winston TO promise thai
ne wouldlendeayor TO have convention
Of the executive officers Of such com
psnles assembled tor that purpose They
pever assembled.
have urged the calling Of such a con
Yention, upon several companies, with all
my might. For ! felt that such a blundel
Affecting one OF the grandest institution.
y modern civilization, must DO corrected
but Mr., White is not quito correct in say
ing that have urged NJ plan OF doing il
upon any individual company, and NOT a