The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-06
REDucINo INSURANCE RATES.


The new departure Of the officers and
trustees Of the Mutual Life Insurance Company
has created much excitement. not only among
the policy holders OF that company. but among
all persons Interested in lifo insurance com
panes. The meeting at the Fifth Avenue Hotel
on Thursday was evidently only the beginning
Of trouble. The position Of the Mutual Life as
the largest concern Of the kind in tho world.
with assets amounting to ss5 100000. and a
surplus Of nearly tii 900. 900. makes any action
ii may take out Of the regular order. tho sub
joct Of immediate and widespread criticism.
The cauee OF the present excitement Is found
in a recent proposal Of the managers TO give
TO now policy holders n rebate OF 80 per
cent. upon their premiums for the first two
years" This iavoritism 10 persons now COM
INK in for policies Is held by those protesting
against II to ~ grossly unjust 10 all who hold
policies on which they have paid full rates.
They say that IL Is as II tho manager Of any
company. concern. or partnership aftes hali
dozen stockholders have put in their money
! at lar and worked the business up 10 great
value. were to take ia new partners at 10 per
cont insieGd Of par. and give them not only this
advantage Of 80 per cent. but the further ad-
vantage Of the labor and accumulaticns Of the
original partners. who have born the burden
and created the properly.
Oht ol tne LollcJ nolueFb hhlus NOW. JUST rs
We are nearing the end OF the evil results Of tho
panic OF 1913 just rs our forty millions Of peo-
pie begin to feel hopeful about business and
the wheels OF trade and commerce begin to
move Just as we have reached specie basis (:
Just at this critical juncture. this great corpora
| ton the largest OF its class in tho world. pro-
| poses 10 make now and reckless departure in
.eondueting its business. THIS departure is. in
| including the Attorney General OF every New
England state. in direct violation Of its charter
and fraud upon every one OF its policy hold
ers; ! am serious In this matter. as have a
right 70 be. l have paid my money 70 that in
contribution 10 be used oniyto meet current
| cNpenses and death losses. It's charter. and
the sworn statements Of its officers made year
| money paid in must 20 for those and for no
other purposes. II tho surplus fund at any
time Is more than enough to meet these cure Mt
| expenses and death Losses. then i must. In law.
| equity. and good morals be divided among its
! existing policy holders. 10 whom 1t exclusively
The officers and trustees have no option in
| the matter. They cannot deviate from this
criminals. Ny money, and that u seventy FIVE
thousand other policy hol !crs. is in their hands.
| as trustees and servants. for = special purpose
! II they are anxious 10 give. away money 10 out
| side prrtlee Tor two years. OF any other period,
I they bad better use their own. and not that of
| others II an old policy holder. AZ the aga OF 30.
| j. forced 10 pay tl 600 in premiums TO renew
his policy. a new policy holder at tho same age
! ehNull moi EFt the same hUl nnnt OF insurance
| Tor 400 There is neither law. equity. nor
| sense In this, and the sooner this great corpo-
ration stops its new and illegal career the bet.
| ter u will be for It's managers personally and
for the institution which they serve. II they do
| not like their charter. or tho usual mode OF do
ing business. let them resign. and start another
| company. on the plan ot giving away as much
! Of other peoples money ~ they like. u whom
| they please 10 change their modes OF doing
business once In two or Ave years: TO treat old
| and now policy holders on unequal terms. with
! out law or reason and see what a glorious
T.. Hg Al FfII ian has will old
| policy holders do not propose TO do business at
! less than cost. even for two years. ana unless |
| am very much mistaken. the managers will fnd
| this out before they are verv much older. An
| Injunction euit in the United States courts, pro-
will not only quickly stop this unwise and ille-
| gal movement. but will show conclusively that
neither its surplus nor tits other condiii ions
and future PROSPECTS viii warrant any euch dan
With rcsHrd IN the legal aspee+s ot the cnse I,
dg1s"i T@ q cark. Adams Ozark. BSion. se a. e oS
! nined the opinion OF Proi Gray OF Harvard
IN td opinion EH1NS was isoSn = .as c9a
Now England States. Zach concurred unre-
servedy in Prot, Gray's views. which we're. that
issued by the Mutual Life Are fraudulent "a re-
| CARDS the Old members. and consequently void"
! The Object IN obtaining these opinions WAS "
induce the trustees voluntarily 20 reconsider
their action. and thereby render unnecessary
the litigation that Is otherwise likely.
| IL remains 70 be seen whether the trustees
| will back out. SO far, they have shown no dis
| position 20 do 50. II they 10 on taking new
policy holders on tho new terms the old policy
| holders will speedily mako a case in court and
test the legality of their action. But the Mutual
manAgem ent. so some OF the policy holders say.
Is almost an hutocracy. The President. or his
friends controls proxies enough " laugh at the
regular voters. The salaries OF ON 'rrs and
EMPLOYEES amount 10 nearly tiO0 200; the
! President and Vice Presiden drawing the little
trile Of s57 COO There has been no change in
the Presidency for well nigh a quarter Of Il
century. and under the proxy voting system
none Is likely 10 b. made.
The Mutual Life Is a great. powerful and
| prosperous company but then big figures do
not always mean hig profits In list Of seven
teen leading life insurance companies. while
the Mutual stands first in assets. first in liabi-
ties, and first IN surplus. meaning gross
amounts. OF course. II stands tho seventeenth.
or last. in the ratio of Assets TO liabilities. It's
per cent. OF surplus Is SO. while others show
better. the best being 26.21 per cent.
Naturally enough all other life Insurance
companies are watching the Mutual departure
with lively interest. IL Is not known that an y
company looks with favor upon its 80 rer cent
of movement for II that Il 20 be eminenuy sue
cessful. other companies must follow the urac-
tice There is no antagonlsm nor any special
friendship for the Mutual The other COM
panies are waiting TO see what the uushot will
be. Meantime the old policy holders of the
Mutual are ~ for the light. and are gaining
strength rapidly
THE FISHkILL sATINGS INSTITUTE