New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-02-21

Alexander. of the Equitable. and by the OIL
GERS of The Germlnia and United States Lille.
COMMENTS on THE REPORT.
rr,soxs GIVEN IN TnE REPORT ron TIE COM
p,xy'a ACuoN-rHE PLAN MUCH DISCUSSED N
Iv,URANCE CIRCLKs-YHAT RIVAL COMPANIES
SAY ABOUT THE MUTUAL5 TACTICS.
Tho reduction in insurance premiums by
the trustees of tho Mutual Life Insurance
Company was tho general topic I'll as
cussion Yesterday in life insurance CIR
cles The meeting of the trustees, II Is stated was
FREQ from any angry discussions. and there
was 10 disposition 10 oppose the report oil
the committee. Tho action of tho company
in previous years to reduce premium rates was dls-
cusscd. AMI several long speeches were made re-
viewing the matter. Ex-Governor Rice took avery
conservative course and while dec airing himself III
favor Of the 80 per cent rebate plan, he Thought
that inasmuch as there were serious objections 10
II Lv many prominent policy holders. II
would DO wise to steer clear OI possible
litigation by the adoption Of reduction the legal
jtv Of which could not be called III question. Inns
view had led him In tho committee to suggest the
proposed reduction OF 10 per cent on all classes OF
premiums, as preferable TO the 30 per cent rebate
on new policies Oh common life insurance only.
THE REPORT
The report Of the special committee which was
adopted hy the trustees, was withheld through the
day. bnt was given out last night 1t begins win
recital of the remonstrances against the old plan
of 80 per cent rebate, and the efforts OF The com
mittce to secure thorough investigation OF the
suhicct. The report then continues rs follows:
The committee have held sessions extending over
a period of fourteen days. sitting on many consecu-
five DAYS both forenoon and afternoon; and great
Mains have been taken to reach thorough and i'm
partial investigation IT the matter ret Ired 10 them.
The obiectlng policy-holdcrr IN the CITY of New
York and vicinity were already organized ana
represented by an executive committee CHOSEN
from their number Similar ORGANIZATIONS also cA-
listed III other cities and in still other places pubHc
meetings had been held without rc~ulUHg ~
executive organization. From all the last named
places so far AS the committee know, communich-
IONS IN writing have been IecGNed ana me
executive committee III AcT-IOTA, and through
them like associations IN other cItlcS, were early
informed that the committee would be pleased
TO confer with them respecting me on
ections TO tine rebate plan, and TO It's col
lateral and consequential relations ms INVITA-
ton WAS accepted Dy the executive committee III
NeW-1Ork and conference oil several u"Ia Io4-
lowed during which the gentlemen presented Their
objections with great ciearncSs candor ana ability;
and the conference was rendered the more agree
able and instructive by its entire freedom
from statistical discussions, ana by inc ,hp-
parent unanmltY of desire TO promote mar
mOny in the company and 10 secure ana
advance ts prosperity. careful study Of the
points OF difference followed. under the hight
afforded by large citation OF facts and authorities
bearing thereon. AT the conclusion OF tins confer
encc your committee were informed by tncse gen
temen that no remOnsrantS from other cltlcs could
appear IN person, and that any other cOmmuulca-
tons would I've made in writing, If at all
To TecIte the whole ground tTaversed by your
committee in their investigation would render thls
report by far too yOIuunn0usand would be wel-nlgh
inpOss bic without touching upon nearly all the
points involved in the theory OF life Insurance and
the different methods of It's administration. Your
committee viii therefore CONNIE themselves
of
mcudations.
Tirs'-Tho absolute muualty OF the company,
and the ratable equality OF all rs mcmOero III
rights prerOgativcs and property arc 10 the utmost
extent conceded
LEGALITY or THS ETCRNr REBATE
Ceoond-Ihe legality of the recently adopted re-
bate Is judicial question which it Is not the PROV
inco OF any committee of layncn to decide. Lni-
nent lawyers have given opinions on either side.
The law department and the counsel OF the
company are emphatic and undOubtlng in their
opinion that the rebate is legal, aud that the
policies issued under il cannot be inyaldatcd.
There remains no shadow of doubt that the rebate
was adopted with tho single purpose OF promoting
the prosperity of the company a. u whole. 1t has
resulted, was anticipated, III large increase OF
msurants, and Ia that extent at least Jistlhes the
undertaking. Owing TO obscurty IN stat
ing OF TO misunderstanding Of the terms
of its announcement, the sum allowed to new
msuTanls was often estimated "a being about twice
az largo 1t really is inasmuch as VIII lie there are
nual premium natures. there Is but ono dividend
allowed during tie same period.
The allegation that the company does not receive
the actual cost OF insurance during the first
two years under the rebate plan is materially mOdi
fed under this view of the facts and the state
ment was referred to the actuarial department..
from which tabular illustration returned
show the contrary OF this allegation. and that poll
ces ISSUED under the rebate not only yield the cost
of insurance. hut considerable margin beyond.
A similar example shows. III Haze manner, that the
allegation of dctrmcnt 10 the Old pOlcy-hOldcrs by
allowing the rebate 10 now ln5urants IL lalaciOus,
aud illustrates how the advantage which accrucs
TO each of the old pOhCy-hOldefs by dividing the
mOrtuaIY payments among an increased member
ship than OYerComo5 The sum of
the rebate paid III oh aiming tho insurance.
The difference of opinion on these points appears TO
arise from the different methods Of actuarial
putatIon, and tho members Of this company on
questions 81 final doubt must abide by the decision
OF lis own authorities, unless they arc ready to
COnccd0 that all Its business Is conducted
upon uncertain or fallacIouS premises. 1t does
not appear therefore, from the evidence
Is any loss upon the first TWO years in,uI-
anco under the rebate allowed. that
the interests of the old polIcyhOld:rs suerany Diet
umcut thereby or that there - any such appruprla-
ton of funds for purposes of rebate q, is not more
than recovered in the regular and ordinary coulso
Of sui scqUent business. The ojccI and motive OF
the rebate piau Therefore, do not appear 10 Ice open
TO the dnimadyt versions which have been east upnn
il. some of the methods and cXpedlrnts hy winch
IT has bccn carried into eject may be. ana IN the
opinion of your committee are. objectionable They
have proved upon trial To be Indefinite and obscure
and capable # ana liable to, doubtful and perverted
Interpretation.
\ COMPROMISES oN THE FIRST r1Ay.
The whole subject of life insurance Is so intricate
to the uninItiaed. aud remote from the ordinary
plane OF thought and experience of the multitude
even OF the insured so difficult OF apprehension and
understanding without long study and experience.
and SO open 10 spcCiuus and mistaken representa-
tIOn-, that as far as po,>ihlc every oLscurtv IN ia
admluloratlon should be brushed away, and every
which j, involve. are guarded and conducted with
wisdom and conservation, fidelity. In addition 10
the ODscuutY of the rebate PLAN II apparently iu-