New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-12-24
THE INSURANCE WAR.

WHAT THE LONDON REVIEW, THE LEADING NsUR-
ANCE JOURNAL OF GREAT BRITAIN, THINKS
ABoU1 THE NEW FEATURE IN The BUSINESS Oh
TIE MUTUAL LIFE INSURANCE COAPANY-oPIs-
IONS OF AN IMPARTIAL CRITIC FROM CONNER
CIAL STANDPOINT.
In two recent issues we have indicated to
readers the very important decision taken by the
managers OF this toward Increasing their new
business. This decision involved novel feature
which. with the arguments for and against, has been
most faithfully portrayed in these columns The sum
total OF the proposal is. that tbs Mutual Life has
solved 10 attract business by spending money upon
new policy instead OF upon agents in extra
missions, or upon newspapers in flaming advertise
ments.
Whilst We have. think. mpartislly reeapituated
the various arguments advanced for the new plan, by
the officers Of tue Mutual and against 1t by the officers
OF the combined rival companies through quickly ap
pretending have no; yet expressed our own
views distinctly the point II had appeared to us to
he question which hardly concerned jewellers on this
side OF the Atlantic but now have considered 1t
worth while to do So the general ground or the un
doubted night OF any corporation 1t thinks III in
ts interests This would to be so incOnrO
verbe that the action OF the general body OF American
life Offices against the Mutual Is to incOmprehensle
Before, however. discussing this, the latest point
raised. let us brief, remark upon the original offence OF
the Mutual and the which led TO IT, The COM
paDy has for years past considered that it's premiums
were too high, and could be reduced permanently and
with safety Il paid in cash bonuses dividends
since its foundation no less than 80 100000, and stu
continues to make heavy returns TO lts pOlicyhOlders
During the past two or three OF unparalleled de-
preston Of trade. large surrenders OF rstcass lives
have taken place. the allowance made by the COM
pany on these policies has left large available surplus
apart from tie usual profits on the current policies
These surplus funds being used To replace the
good lives which by new OF equal com
mcrcal value To the company. II bad lives only had re-
tired he would Oe different but II IL only good
lives that surrender freely This is the point which the
writers in the inspired Press do not understand,
aud which their patrons, who know better CAREFUL
tell them The using Of TINS surplus is therefore,
TO the vitality OF the company and to replace
the existing OF deprecated lives higher grade
than they occupy present To the greater sodity OF
the company and the greater pecunary profit OF the
policy holders.
We have not as yet observed the utterances OF the
critics, any intelligent comprehension OF the nature OF
the reduction made by the Mutual. The office has not
considered diate upon It, and outsiders
do appear understand H. hut little consideration
OF the question: from calm and impartial standpoint,
would any business that the existing pol
holders need have iears aud that the Oeefs OF
the Mutual nave in reserve than appears on the
The principle OF the 30 per cent reduction 10
easily he which gives present benett to the
policy holders, whilst gives equal future benefits
TO both and old
so much Tor the issues raised from scientific point OF
view but tn look NJ the question in It's
commercial aspect The Mutual has existed for thirty
1--we years and It's present position be summarized
az follows:
IL has policies In force f0r............. &oS,OOOoOo
Its assets in hand Observation-Disclosures. 100000
Since 1883 Uhe commencement of thc pres
ent manngcment II has issued policies
llO.OoooOo
II has paid In claims and bonus, about. 100000
ItsIncomc in 1877 was nearly .......... 100000
Its cash assets exceed the comDIled cap:-
Ia! Of all the E,w-York bLnLs put to.
retber by .............................. 100000
Now il appears to Us that the people who put this
machine together ought to know how TO work IT, II
twenty-five years OF the same management produces
such results. would appear to bo iudieious thing to
let that management alone. Such, however 10 not the
impartial opinion OF its rivals.
Inspired ny holy ardor for the interests OF the unfor
tuuate policy holder, Of tho Mutual Lfe the rulers Of
the other companies up and take counsel together
and their people imagine n thing They consider
that action Of thc Mutual In allowing 30 per cent OF
the fr-t and second annual premium 10 the policy
holder himself instead VI 10 the agents Of the company
and the newspaper press be u wicked and shameful
proceeding Had the Mutual increased its commission
10 agents bought up the Insurance Press throughout
the Union. machines type and all the other companies
would not have uttered sound; but 10 pay 1t 10 the
new policy holders h Is the grief aud horror Of the
critics
The Mutual Life IA managed At less cost in proportion
10 IT. income tlan hrerourths OF the life insurance
companies Of either England America. and this by
Of It's magnitude aud tho Of the management
10 devote outgu to legitimate purposes only. IL is
officers that they could sally Increase their bust
ness without Increasing their normal expenditure to
any perccptbe extent tnsy have perfect night to DO
ST. The stockholders OF company for selling pottei
beef would be Asnsmed 70 write themSeves down such
eyre giou, the pOcyhoders OF the Mutual
Life would be dd they object TO the necessary temporary
outgo for reyiying q waning trade Trade must be
stimulated upon the principles either by the out
side OF the goods being made Snowy By gilt labels ana
bright colOrs by the offer OF sterling goods at low
pr.ce The discriminating purchaser will pre-
fer buying cheap II he feels confidence IN the
goods supplied and the shop he deals with.
Nor do We gather from the chorus Of rival companies
and writer's IN the press that the Mutual Life Is going
10 he mad the plan. or that the officers
do not know their business. Most decidedly not what
they are worrying about the desire TO prove that A.
and present policy holders IN the Mutual Lfe are not
going to get much dividend bonus next year or the
year after as they light get d. and did not enter
The Mutual a. new policy holders In 1879 ana 1850
What they do explain Is that they want to get
and into companies other than the Mutual Inc hu-
tual L. however likely 10 have It oil It's own way as
far winning the confidence OF the Puohc IN INV no"
plan Is concerned
II npenr, TO us that the OF the impartial crit
les IN 40 shallow that II impose upon even the
most simple constituents OF tho Mutual Their company
Is stroug powerful and without peer on the lace Oh Inc
Globe The officers who have raised II to It's pnnaoe Vi
greatness are those no still guide its destinies Surely
experience Is ignorance, and success Is failure the
Opinions OF It's enemies be relied on Let rely on
itself manage itself and take OF ITSELF and let the
advice OF gushing friends be appfe-
cated at It's proper value In trying fresh plan 10 pehe
ntits own policy-hoders instead OF outsiderS' te .u
tun has perhaps made many enemies. but more friends
I'm. enmty appears however To us to be more begotten
by fear than by justce-lThe Review.