The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-01-01
.INsURANCE CO,rpANIEs,.

| tile IOuOWlnS correspondence:
| NEW YORK. December IL, 1872.
'F.S Winston, Esp. President Mutual Life m
8ardnCe Company:
Dear ySIr,--We have noticed the action OF your
company looking to reduction of It's premium
Without presuming to advise you rs to the man
agenent Of your business, yon must be aware that
many OF the holders OF policies In your company
and that any action affecting the interests OK life in
surucc generally cannot tall to affect all TO certain
Whatever may be your views as 10 the ability of
your company 10 carry out success fully the pro-
posed reduction, we cannot but believe, from the
would result from change of the kind proposed.
Other reasons Of weight might. In our opinion,
posed action: but we abstain from entering tron
them, and with the reason given content ourselves
by respectfully requesting you, 10 what we consider
the best Interests Of Insurance. TO reconsider your
IsIgnelJ HEsRY B. HYDE.
..- WIN. d. BEERS,
n. ID. MORGAN.
.. &c.. JOHN F. DE WITT.
Executive Committee, representing the following
Tic New York Life Insurance Company.
The United States Life Insurance Company.
The Equitable Life Assurance Society of the
| The Security Life Insurance and Annuity Com
The Continental Life Insurance Con pany.
The Manhattan Life Insurance Company.
| b. The Knckcrbockrr Life Insurance Company.
The Merchants Life Insurance Company.
The GcrmanIa Life Insurance Company.
The Eclectic Life Insurance Company.
The Commonwealth Life Insurance Company.
The World MutualIifc Insurance Company.
The Excelsior Life Insurance COMPANY
The National Life Insurance Company.
| The Brooklyn Life Insurance Company
| The Mutual Benefit Life Insurance Company.
| The John Hancock Mutual Life Insurance COM
The Massachusetts Mutual Life Insurance Com
| pany. <,..-.
The Government Security Life Insurance Com
pamy. -. ,...-., ,,,,,.
TIE MUTUAL LIFE INsURAScE1
COMPANY or NEW YORK,
III AND LAG BROADWAY. NEW YORK,
December Is. lS72. J
TeSsrs H. B. HyJc, y. H. Beers, " p. Morgan.
Senti,lg t,centy-tco ASSocintld Life Insurance
ConEIdHieS:
Genllcmen,-I have resolved your communication
Of this date.
u,r PROPOSED action With entire safety to The ILL.,
tereSts Of the policy-hVcrs Of this company never,
thclcss. fnIsinuch you aver that this proposed
action will lie injurious and I'm Difference Ia your
opinion, ;id without regard to The reserved reasons
which you say exist. bat of Which | am Ignorant,
will present your request TO the meeting of orr
Board 10 be held on Saturday next. and recommend
their favorable action upon i; Very rsspecdinliy
Whereupon. after discussion the following minute
and resolution were adopted:
aforesaid nemorlalan correspondence, do hereby
resolve
That while the past experience of the company
demonstrates Its ability to carry ont the plan OF re-
duced premiums according to the method recently
adopted, without injury to any pollcyllocr In this
company. but with benefit To ALL yet, In compliance
with the request OF the memoriaSts above mention
ed, and the very respectable bodyof insurance COM
panies above represented they direct that The pro-
posed rcdnction of rates he not carried into effect
until the further action of the Board
Extract from the minutes.
Vicc-i'rcsident and cxocio Secretary Of the board
THE MUTUAL LIFE AND LOW RATES.
We can but express extreme regret that ata meet
ing Of the trustees OF the Mutual Life Insurance
| Company, held on Saturday last, 1t was determined
that the reduced scale of premiums recently adopted
by the managers OF that company shall not lie put
| in execution. Gentlemen OF the character and
standing Of the thiry-live members of that Board
of Trustees must have had reason for their Inter
fcring with the acts of their cninently successful
managers which 70 them appeared mcighlya and COLL
tees in the CITY Which would be less likely to rcacin
| mistaken conclusion upon plain h,iSincssqucStnn
W. do not believe. however, that their action has
heen in any measure dictated by doubts as TO tic
absolute safety, equity, aud rropricty of the new
rates. On this point wr understand the Trustees 10
| he in perfect accord with the Managers. The exc
| obstacles which may easily appear TO practical men
reason why the traEsacilng OF business on the r.
duce rates shouldbe, for the present at least held
| in abeyahcc. The announcement of the reduction
Of rates has raised profound alarm among The III
|
SOILS. The Mutual Life Is almost the only company
| IN the Stale which can afford to make the proposed
reduction. The Mn ilal decides To reduce its rates
| for the reason that, while its old scale Is
| based upon $40 for cxl cilscS OH premium
OF $40, lis expenses really amount to only So and
the company therefore, instead Of collecting this
large amount in excess of lis actual requirements,
| ami then returning 1t In the way of dividend pro-
| Poses 10 rrducc the premiums and correspondugly
diminish its dlyidcnSlis, ut least with reference
| To new puCirs. while old policies would he COLI
| tinued rs heretofore in respect both TO premiums
and dividends How far this course could be adopted
by other companies pay be Judged from INC follow
| ing facts ont of the New York life companies
there are but two or three talter the Muall whose
expenses range between 10 and 10 per cent. OF their
gross receipts; seven range between Is and 70 per
| cent; eight between 70 and 30 per ceu.: six he
tween 80 and 10 per cent. and three between i0and
% per cent 1t Is evident. therefore, that the rates
| adopted by the Mutual would compel every other
company to reduce its expenses IN way very In
that some would be embarrassed and others conn ell
ed to wind up. Perhaps the result would have 10 BE-
al lga!latiOn of several OF the smaller cOlnpi
MES into larger IL 10 secure advantages
| for economy which n large company always pos
scSscs over !; slt:til Onc-a course by no means wei
come 10 officers OF companies 1t viii thus be per-
| ccivcd that while the policy of the Mutual was Of
immense advantage to the public, yet 1t was death
To the interests OF The personnel OF other life COLL
pancs. Hence the storm. Every sort Of means have
been employed t. misreprcscnt the purpose and the
| bcuriug of Tie course adopted by the Mutual the
cry OF danger has been raised but without one ac-
| tulry yentring 10 stake his reputation upon de-
tailed statement or where the dagger lies: dark In
safety, upon Il subject involving much rricacy ;
aprcals have been made To tile fears OF tic policy
holders, who, understanding nothing about Iusl-
rance stat istcs, easily induced To sign pro cst
against their own company legal proceedings have
been Threatened and we understands! funds have been
provided for carrying through the site Legislature
measures designed To c.arrass the company and
| prevent it doing Its own business in It's own way
| Under these circumstances 1t became question
with the Trustees oil the Mutual whether Ii was
| worth while 10 encounter so much embarrassing
opposition. depending, as the merits of insurance
do, upon statistical and Mathematical considera :
tons uccmprchcusiblc IT, ordinary minds, ii would
indirect agitation TO miSlead the public us To the
position of the Mutual, Ia lis disadvantage: to say
4 nothing Of more direct emharrtssments through
! procured legislative interference. The company
has nothing to gain by the change of rates beyond
the Increase OF business Which lower premiums
afford TO wait until Its position becomes more intel
/ lgently understood and the motives OF the Upposi-
! ton are appreciated by The public III their proper
\ value.
I If the other life companies will accept slIgges-
/ ton from us, we would recommend them not by
X any means TO conclude that the Mutual has tnally
4 backed down. We very much mlsundcrStand the
+ temper Of that Board of Trustees II they mean any
thing more than simply to wait until they can carry
public opinion wi In them. They are convinced
sivc to tile Interests the company and those of its
policy holders; and we shall lie very much mistaken
ii il Is not found, In short time, that public opiI-
ion has come round to that company and forsaken
| the opposition companies. The public are the
weaker companies well know that their case will
not stand intelligent scrutiny. and that the Mutual
must come out with increased prestige when Its
case comes up to he properly understood, 1t would
be only the part of prudence for the opposition TO
give up their hopeless tactics OF mlstirectng public
opinion and prepare themselves for the new order
OF things which is inevitable The Mutual has fixed
the llSs for the future and the sooner nthr COM
panles put themselves i'll position for conforming
to IL the more to their adv;tlitasc-'e" l"fh Ddhy
| Bulletin, December d. 1877 la l-lt
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