New-York tribune., 1877-09-22
HOPE FOR LIFE POLICY-HOLDERs.

A novel plan was set forth in THE TRIBUNE
of July 80, for saving weak insurance compa-
MES. whose reserves, calculated by tho mOrtall-
ty tables. have fallen below the legal Standard
In a letter afterwards published, corre-
snondent who was heavily insured in such an
unfortunate concern, spoke of the plan with
undualifed approval, and pointed ont many
minor objects that it would accomplish An
earnest effort is now in progress to apply TINS
plan to the Universal Life Insurance Com
papy. Judge LandOn. of Schenectady, has
consented to withhold the appointment OF
receiver until the plan can be adopted. Ii
il understood to have the favor OF the In
surance Department, and many OF the pohcy-
holders have given their written assent BrleI-
" stated, the plan IS 10 scale down the poll
cies. reducing their promise to pay to fgllre
that the present assets, rs now invested, can
be depended on to meet; reduced policies to
take the place of the old ones. The reduc-
tion nroDosed in the case OF the Universal. Is
80 ppr cent. The stock holders are expected
10 relinqush all claim upon the company, and
hereafter it is to be rnn upon the mutual
plan. being entirely in the hands of the poll
cv-holders, who will appoint q new board and
new officers. An abstract of the circular, de-
scIibing the proposal to pOlicy-holders, Is given
in another column.
The chief object to be gained is TO prevent
the runous loss and delay that will follow if
the concern goes into the hands of receiver.
Even if the receiver should manage matters
with unusual skill and economy, he could not
he expected to do for the policyhOlders that
which they most want, that for which they
originally took out poicies-tO give the as
surance of money TO be paiO promptly. in case
Of death, to the survivors. THIS the new plan
secures. Not so much money Will be paid as
was originally promised hut the contract to
nav is changed in TO other respect. Ibe COM
pany, being again upon a sound baSls may
take in new business or merely close its Old
affairs that is for the pOIicy-hOlders and their
new trustees to determine Very probably
such concern, beng popular with the policy
holders who controlled it, would again find
favor with the general public.
But no faint of the former management must
adhere to the new order of things. The men
who guided the vessel on the rocks should not
again be trusted with the helm. There must
not he suspicion of such intent i'll the move
ment for reorganizing. Yet this is quite likely
to be- among the chances where the policy
holders are left TO themselves without any
guidance, while the former officers may be
plotting for the control of the new organiza-
ton. There is one easy and proper way 10
avoid such Il lame conclusion. The Insurance
superintendent is put in Office to guard the
interests of the policy-holders. lie should be
at the mead Of the movement and should di-
rect it ; he should secure the adhesion Of the
policy-hoiders to the plan, and receive their
proxies for the election of the men who are to
manage their interests The details of the
change could then be managed without fric-
tion and without costly legal proceedings.