New-York tribune., 1877-09-29
NsoLvENT INSURANCE COMPANIES.
THE PLAN OF REDUCING POLICIES UNIFoRMLY-oB-
JECuONs To IT.

JFCTONs To
70 the Edttor Of Thc Tribune.
SIR: The plan fOTrescuing an lns0lvent life com
pany rom hands of liver, by uniform rec uciion
OF Az its policies hen coupled with an entire change OF
management has been approved in your columns on
several occasions Permit suggest objections
TO the plan They are stated Tor the consideration Of
those interested. and may prevent some mistakes and
some disappOintments.
~ Conceding that the agreement to such reduction II
unanimous and that the new managers shall be men of
the highest gritty will il bc possible 10 the ser
wees of officers who have sufficient knowledge Of the
subject and experience IN the business TO pilot the craft
safely out OF the breakersi II VIII require more skill
and more intimate acquaintance with the principles
underlying the system Of life insurance TO save the
Charter Oak after its policies have been reduced
onehaf than to manage any Of the great and solvent
mpanes in the country. You can count on your FIN
gers the names OF men equal the task. Winch of them
can be induced 10 undertake ia As for the Universal
no man with reputation for success or ability TO Lose
would care 10 NEEDLE with assets already claimed by
receiver half dozen other companies in suits at law
TO say nothing Of the other complications in its affairs
(2 Coneeding at the right Is installed let US see
what is the condition Of the company which lie Is 10
manage IL has lost the confidence Of Its own members
who have already parted with one haif OF their cal
and who naturally smart under the loss. and who fear
they have YET the worst. They viii not ADVISE
their friends to that company. Nothing short
OF rate Of commission, so great a. 10 he rnous 10 the
company will induce agents solicit for It. The public
knows il as n concern which has not fulfilled its prom
ises Hence the new manager must not expect new
buslness for many years, II at all. Next. he must
look for the immediate disappearance Of the best
business on his Those policy Cyholders who are
in perfect health who yet have contributed but little
10 the fund.- and were therefore depended upon to pay
the most hereafter, Will discontinue. They viii have no
inducemeut 10 remain in doubtful company when, II
they want the Insurance. they get II quite as eheapy
in good companies Those who have paid for og time
and are stu in good health, VIII say we VIII rsk WDat
We have ALREADY put ill., bat We viii pay more. gave
ur Daid-up insurance for what You can lhIs process
which Inevitable will reduce the income Oh the com
diminishing payments by lnValds, whose cary
Jeafu AT no distant day VIII 1nish II entirely.
Meantime, how j. IL with the disDuIsthentsi On
taking possesslOD the manager found the assets e1
polices Those reserves based upon suppOslt0n
that deaths would occur ia exact accordance Will lhe
rates given in a mortality able. These rates hlght De
safe the best lives would remain TO offset TIE lOFtalg
among the impaired and diseased but the best Hfcs
A. we ave seen will stay. Tue inyallds, however
will remain and they Will die off al rate which Will up
SCI an his calculations by mortality table IN e1lt
teuce The rigid economy and the Dusiess thihts
o. an VIII be Of no service 70 pre-
vent The necessity for another scaling process the
company be saved again, within the next nNe years
With no income with death claims detying al Preulc
tions calculations, the catastrophe Will surely CONE
Pubic confidence II tQe Soul " life Insurance.. NheH
that gone put the heless body away as quietly ana
decenfy viii permit Galyanlc ba
tcres and electricity prOlOug the senDlahcr o nv
bat sue operation cruel and useless OBSERVER
y