Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-10-03
reduction of Rates Dy the Mutual
E.sfe insurance Company OF New

great deal of excitement and no li5.le un-
comfortable apprehension have been created
In insurance circles by the recent announce
ment that the Mutual Life Insuran nee Company
ha1 concluded to reduce its rates thirty per
cent. As might have been expected, this or
any equivalent change is exceedingly un-
welcome TO all who cannot or dare not follow
its lead in this particular, and has come in for
no eng OF adverse comment and condemna-
ton. In fact, it has already been charged
with injustice to its old members aud an
lnequltabe discrimination against them for
the sake OF attracting new business: and GER
tam parties conspicuous chiefly for their un-
familiarity with the facts of the case, have
Ialher lngenlOusly and plauSibiy figured out
Just how much the company must necessarily
lose upon each dollar of premium received
upon this supposititious reduction. No degree
or kind OF Misrepresentation that may be in
dUlged IN will do more than disclose the ani-
mas OF the company's asSailants and gra.
tultOuSiy advertise Its unprecedented, and,
especially at this time, very welcome liberaity
No one conversant with the history and un-
qualified resources of this grand old company
doubts its ability to reduce its rates even more
Than thirty per cent. and be as sound and sub
stantlal as ever An immense breadth of base
and careful conservative and economical
diversity OF mortality expenses, as well as
great uniformity in the percentage of return
premiums, or, as they are persistently mis-
called, dividends. For many years past the
amount OF such repayment to the holders of
continued premium whole life inSuranceS has
aggregated about as much as the alleged re.
QucllOn In TACT this emlnently conservative
cid company has been collecting. investing and
using much larger premium than its neceSsi-
ties required, and has preserved entire equity
by returning the redundant portion. SO long
as his process continues with its accustomed
m0nGtony, it made no essential difference to
the company whether it collected the entire
premium and repaid thirty per cent. of it, or
collected seventy per cent. And during good
times it made little difference to policy holders
But it makes deal of odds just now to the
people. who want to insure, and who can turn
over this thirty per cent. to profit in their
busIneS several times in year. The company
which is just as progressive as it was thirty
hve years ago, and as alert to accommodate its
plans. to suit public needs, if no sacrifice of
principle is involved-proposest to permit ap-
pllcants for insurance to hypothecate their
expected dividends to the extent of thirty per
CENT; that is, to pay seventy per cent. and
fOregO the usual dividend at the end of the
year. The much condemned reduction is, it
will be readily seen, no reduction whatever,
nor device to insure new members cheaper
than old Ones nor one whit a departure from
the accustomed uSageS and ancient landmarks
OF this venerable institution. There is nothing
in it that can injuriOusly affect the financial
relations OF its members, present and pros
pectiye, or innOvate the Interchangeable actua.
rial structure OF its smachinery.-[N. Y. WeeEly
NC1TS, y 'o