New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-11-15
the hoard TO visit the Post ONCE The board then adj
tourned Ia m three months hence.
THE MUTUAL LIF,RS METHODS.

PRESIDENT wINsTON's REPLY TO STRUCTURES ON
THE CoMPANY's Recent ACTION.
The method adopted recently by the Mutual
Life Insurance Company, Of this city, to attract ne"
business by reduction Of 80 per cent in the premiums
of the first two years. has excited much uiscussion
among insurance men aud the poicy-hoidefs OIL u't
company IL is said that the plan has been successful
in stimulating business and that the apparent succe
of the scheme has irritated rival companies.
In reply to the adverse opinion recently puphsneu
given By law firm Of Boston upon the application Oh
John T. Clark an old policy-hoder. Frederick g. Wine
ton, president of the company, said yesterday:
a. have read the opinion OF Messrs. Ropes Gray q
Lorng, did not regard II OF very great Wep. w M
porance. had supposed tnal te d va intended 10
nure the business and standing OF thls SoiupaS ave
have besn further assured this fact by liz extensive
through The press i'm different parts OF tne
country The opinion itself Is Dased lroh ~ the
sumptons both in regard to the Jaw, ue S vsrranre
cOmtany and the methods by Whlch Ine hH' T,, (.
business is conducted. IL taxes Two gIouius 'ad I'm
That reduction of premiums VII os his IL
Tie reverse OF the fact, the measure behk olS Tbe
for the ADVANTAGE OF lne Fu eTefcsing their
best Judgment to promote the Interests vi erIcr ot
poicy-hoders Alter an eAPenSe 81 their duties
Tiny have aims or objects save the er.a i'm
corporation. Experience mas laushs ,,dar of Vitality
p0rtsncr Of maintaining proper stanuaau a. -, met
second only keeping III saIety suIoiVt IL, oud
all liabilities as they mature anu l onv the Vi
fotv Of fhe company so be reduced as 10 .e o9!n
PEELED to apply the earnings ordinarily Is
dends IN the payment OF lncftaseu uo's" .i,ipy,
which mUst inevitably result from decfetscu Nlut1'
"FOrpgeelBg what might happen III the ueprtsaeu Tou
diton or business affairs, namely, tDat the ptSt
would wish to realize on theii poiiGles ny s.AS
and retiring from the company, u was beleNeu 20 oo
and eouitable that those who thus Determined 70 VIZ"
draw sluuld contribute 10 fund that WoId ehaoc Wv
company without taxing the continuing pOlclh
10 nh their places with risks equally deslIaDe, anu S
keen M the vital standard. 10 h WehknOWn IAct ~
insurance that in hard times the best Ncs are 'he wv
10 withdraw; the poor risks always sucE our ple5enu
pnlcy-aoldcrs are the last who ought TO complain
of this ction seek 10 embaIrass the operations o ~
Some other companies" he added are striving Tor
the same result but they seek accomplish 10 hy gNhg
large commiss ions, salaries travelling expenses un
rents TO their agents the expense or all lhelf pOhy
holders This company preferred % gave nc pcn.lv no
incoming pocy-hOldeIs at the expense OF tho5O VIM
insisted upon Withdrawing from tne partnership mo
which they had entered, and IN when BoOa ial. 30
associates would require them To remain. tnlhk thc
managers of the company for the time beuB may IA
rates of premiums and generally determine what con-
tracts the company shall enter into, ana th9t
no mower can control their ncuons unless II
go grossly Injurious 10 the interests o. tho pulcY,
holders rs TO require tho intervention OF Court OF
Faulty To prevent a course OF Acknowledgement Mhich
W1utd ipfct seriOus ana iTfcparubc INJURY upob VIC
polcyhDders and which thCy could not prevent by Tue
ordinary method OF choosing now trustees "ueh us
satisfied with the Old ones. IT,.
second, the opiEion holds that insurance policies
issucd on the new terms void That position ~
quote the language OF distinguished lnrist rs VOC
Tidcu0usly absurd for consideration Al the baslH OF
this opinion law and eQdiiy lie insurance "ouiu
cease"