The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-12-24
THE eREArLrFE INSURANCE QUESTION

What the Landon Hcview, the Leading tn.
surnnce journal Of Great Britain, Thinks
About the New Feature In the Business Of
The Mutual Life Insurance Company
OpInions of Impartial Critic from n
Commercial Standpoint.
In two recent issues we have indicated to our
readers the very important decision taken by the mau
Of this company toward increasing their new bust
ness. This decision. involved novel feature, which,
with the arguments AMI against has been most ait
fully portrayed in these columns The total Of he
proposal IT, that the Mutual Life has resolved to attract
new business by spending money upon new policy hold
crs instead Of upon agents in extra commissions or upon
newspapers in flaming advertisements
While we have we think. impartally recopitulnted !
the various arguments advanced for the Plan by
the officers Of the Mutual and against by the officers Of
the combined rival companies through aquckly uppre-
hending press have not as vet expressed our own
views distinctly the point II had appeared to Us to
be question which hardly concerned jewellers ON this
side Of the Atlantic; but now we have consderc,sit
worth while to do on the general ground Of the un
doubted right Of any corporation to act as 1t thinks 1T
IN it Interests This would 10 US to be 50 in
controvertbc that the action Of the general body Of
American lie Offices against the Mutual Is 10 us noom
prchensble.
Before however discussing this the latest point rad
let Us briefly remark upon the original offence Of the
Mutual. and the which led 10 It. The company
has for years past considered that premiums too
high and could be reduced permanently and with safety
II has paid cash bonuses dividends It's fOunda
ton less than ~ iuOO1J and sull continues make
heavy returns to it, policy holders During the past two
three years unparalleled Of trade large
surrender Of nstciass lives have taken place and the
allowance made by the company on these policies has
lett large available surplus apart IRON the usua profits
ON the current policies These surplu. funds now
being used TO replace the good lives which gone by
Of equal commercial value to the company. II
bad lives only had retired the would be differ
emit but I'll only good lives that surrender freely. This
Is the which Il do
not see or understand and which their patrons who
know better. careful not to tell them Tho using ct
this surplus is therefore to restore the vitality Of the
company and to replace the existing mass Of deprecated
lives ON higher grade than they occupy at present 10
the greater sohdiy Of the company and the greater
pecunary profit OF the policy holders
We have not yet observed in the ucrauccs Of tho
critics any intelligent comprehension OF the uaurc %
the reduction made BY the Mutual The onieo has not
considered 1t necessary diae upon IT, and outsiders DO
not appear to understand IT, bat Little consideration Of
the question from calm and impartial standpoint woud
convince amy business man that the existing policy
holders need have no fears and that the officers Of the
Mutual have more in reserve than appears the
face. me principle Of the 30 per reduction easily
seen to be one which gives benefit to the
policy holders while gives equal future benefits both
| new aud old
somuch Tor the issues raised from scientific point Of
view but wish 10 look az the qul sion IN its
mcrcial aspect The Mutual has existed for ihiriy.nve
years, anu Its present position may BE- summarized ol
| lows
It ha. policies in force for.............e SIS oo1ooo
rs assets iu hand Observation-Disclosures. l72OOOuO
Since 1853 the commencement VI the present
management At has Issued policies 5000. 10 ooo 90
Il has paid In claims and bonus about ... 1000 90
It's income IA 1871 neariv. ....... 400
| Its cash assets exceed the combined capital VI
all the New York banks put together by. 10000
Now sppcars to that the people who put this ma.
chine together ought 10 know how work H. Iftwcuty-
nvc years the Management produces such results
It would appear t. be Judicous hing ~ let that
hsemcnt alone. Such. however, 10 not the impartial
| opinion u its rivals
Inspired b. holy arior for the interests Of the unor.
tunae policy holders Of the Mutual Lie. the ruler. Of
the other companies AMI take together.
| and their people imagine thing They consider
that tho action " the Mutual In allowing % per Of
the hst ami second annual premium the policy holder
himself instead OF 10 the Of the company and the
newspaper pres to be wicked ami shameful proceed.
luz Hal the Mutual increased is commission AGENTS
or bought ny the Insurance Press Throughout The UuiOn
machines. type and all. the other companies would
have uttered sound; but to nay It TO the policy
holders thaiis the grief and horror OF the critics
The Mutual Lie Is MANAGED az loss cost proportion
10 It's income than thtcc|ourhs OF the hv insurance
companies VI either En-iand or America AM this by
reason OF It's magultude aud the the MANAGEMENT
to devote ou'eo legitimate purpoes only Ilt. officers
Hound shat they could safely increase their business with
out increasing their normal expenditure 20 any pcrccp
Die extent they have perfect r.t 10 DO so The stock
holders Of acomrauy for selling Totiod beef would be
ashamed 20 write themselves down such egrcei1u, siu
petons gt the policy holders OF the Mutual Lie would Le
td they object 10 the necessary temporary QUITO Cor r
Vvins waning trade. Trade mus, be stimulated unon
tc same principles either by the outside OF the goods
being made snowy by git labels and bright coors or by
the oier OF sterling goods at low Prices Thcdi.cumuut
Ing purchaser wall prefer buying cheap hc feels CON
hicuee In tue goods supplied ani the shop deals with
Nor do We gather from The chorus rival companies
and Writers In the press that the Mutual Lie is going to
be made lnsol,eut - the plan that the occfs
do not know tIeir business Most decidedly not Wnat
they worrying about 10 the desire prove that 49,
and present policy holders In the Mutual Lie are m
going 90 get much dividend bonus neat ycar VI she
year after IS they might set d, ana CID not enter
the Mutual rs new policy holders In 1879 aud S3J What
they dc not explain is that they want set b. ana
Pinto companies other than the Mutual The Mutual u.s.
however likely 20 have Il an It's own way as r a, u
ming the confidence Of the public ia the plan con
ccrued.
ItRppsar to us that the device OF the impartial critics
l. So shallow thatit cannot impose upon even the mos,
simple constituents of the Mutual Their company 10
strong powerful, ami without peer the 'acc of thc
globe The officers who have raised it 10 rs pinnacle Of
experience is ignorance, and is failure u the
opinions OF its enemies can be relied Lott rely on
itself manage itself and take care OF it,c and let the
dsinerestcd advice VI its euslng friends be arpro
eated a, is proper value In fresh plan to benc
az its own policy holders instead outsiders. the Mutual
has, perhaps. made many enemies. but more friends.
The enmy appears however. TO 20 be more gotten
By fear than by Justice. T1c Rsrar-iir