New-York tribune., 1877-10-13
early consiora ion on tho receipt Of Official information
by The Department Respectfully yours,
'NcIe- Y0rb oct 10 1877 RoBT A. CHERsBRoUGH.
WEAK LIFE INSURANCE COMPANIES.

WEAK LIFE INSURANCE COMPANIES.
VIEWS or 4 POrIcY-HOLDER on THE TRIBUNE PLAN
FOR REsUsCIT,rING SUCH CONCERNs-THE RE-
SUITS IVCOMPARABLY BETTER THAN A RECEry-
FRsHP
To the Edttor Of The Tribune.
SIR: | have noticed the communication of
"Observer" In last Saturdays TRIBUNE presenting OBJ
jcctons to your plan for saving weak life insurance com
panes. look position a polcyholder, having
no interests suhserye except those OF policy yhoders
lam compelled g that what a. In my be q juig
mcnt for my interest is for the interest Of an policy
holders who wish to only their benefit as pol
Icy-hoders. Thcro seems 10 be nothing gained By
uraing Observer" does, that the cOmp1nies when
reorgauizad, VIII be in bal condition. or
perhaps in bad repute Every objection he
urges to HE TpIBUyEs plan 'or proto ting pohcyho'd
ers in weak life companies is met by the single simple
process Of cutting deeply enough now I'm searching Tor
their weakness II tho live assets ato not e4a 10 hree
fouiths Of their liabilities reduce the policies more thhn
that. II they not equal 20 ouch ~, reduce the poll
cics than that. II is OF no ultimate Consequence ID
the pocyholier how great The reduction H. provided
their premiums rcdacet The same proportion ana
provided that whatever sum, beyond that % which
tie policies reduced tha assets shall ultimately yield
shall be used to restore so mr as MY W ,,o,s o3,
me reduced polces By ths process pi, NJ, =, ~
pOiicy-hOlder The exception \, OF course, IN cases
where the policy natures, by death or otherwise before
the company begins Ia accunu lie aG@ni Dut even IN
such cases. the cash paid will be- much more usenl than
claim IA receiver. 1t ls only On StiOn OF cuttihg
deeply enough. n that done no extraordinary tltht
will be needed 70 the finances for tire company
Will certainly grow stronger instead OI weaker III pro
portion to It's Liabilities There VIII De AN uu isudy
small proporton oi surrendered POI o"ieS ior can sur
render will deprive the snrrenderer of all right 10 such
Increased Inmate yuuo OF assets. II the work proper
ly DONE such companies though now the weakest ougnt
in short time be relatively the strongest cOmthrs
No reduction. IL even to one-ifth OF The present
amounts OF policies. can equal the loss to De sustained
a receiver bankruptcy administers upon tht ,1ta''
In Oif the receiver ana MS lcsai aiFI'''
anything. he pian o reinsuriug. .ou Sthnin. no
cits in autia COmuany FOR ther true Fau'
not ono-lalr good for tuc policy holders 3S is It
TRIBUNE plan. Ihe value Of the asset, m such ease j. 10
determined uow at tnis lowest ebb OF values, ana "
the company IN which reinsurance Is hld Is tctlY SUD
stantia all questions ol doubtful values vii b. decided
I'm luvor of the relusuriDg company ana ~ Ter IT,
against tue policy holders need not cav y0t attention
that when polcy-iO.ders withdraw, thty r-
ceyo much less for their policies tlan the reserve
ustines, tnat universally understood that surtc
dercd policies gius the company, for u the WORK
in relation the weak comi done ~ lt nuSl 10
De done o. in sricteSt 1usic" t. the policy 0hcirl
they been reduced thau II they were insured TO-
other comp ptnlrs
lf"O1seIyer' s really potcyhoderin an euloarIassed
cOmUtpN u.rNaYS his policy IT, >tail Slu toi-
pared with need for H. tlat he cares e or nothing
about it. confess to an earnest desire 10 save nI t
can policies. ! an RiiN lo see iHit
the convention " state III iu4ance 0ncilS ma pNed
resolution 'uiOuug tlc lnapuiy ol receives 10 r'F
auyfhiug the %. companies Tor the hehcnt OF
policy ldcs, and Urgiug that such plan ~ jO nave
Druposed shall be sOrtcd o, instead of tnat of iecclV
ersnip have read with casure N an insurance Journal
within day two that OF the companies hdied o.
"ObseTycY" Uhc Unvers1 has proposed 10 pace IN g
hands o! the policy cy-iOiders the appointments oi sich
number OF directors and officers OF the COMPANY a.
thcy shall see t 10 seect-an emDenty wise and just
pfoerciug on The pat the directors Ot tat company
Neir. York. Oct >. 1877 LIFE POLICY HOLDER.