, 1879-01-03

that ihs alowsncc o M % q IS rer rec cent rebate gor
two years to new policy holders by The Mutual
Life Is some degree worsc than htEhTay-roi'-
bcry by tic officers Of that Coolphny-or words
OF like mild import.
started ont this morning, intending. to nave
brief Informal Interviews with half dozen or
mora officers Of as many different 1!e-nsur-
ancu companies, and then to wind up
vtce-PrestJcnt McCurdy OF the Mutual Life !;
thinking that in this war would get both sides
OF tho question and somewhat An index to tho
popular feeling. nut mr. interviews we're so
terminated BY tho enforced departure Of the
officer, who had been giving me much Informs
tIon With liberal sptce of ha individual views
Of the "30 per cent rebate scheme" vas too
late to see either Of the first two officers Of the
Mutual. However hnd lrss dcstrn to see them
than expected in the mornipn should have
after conrcrsinG with seveia al Of their sisa's.
had supposed that after hearing tho adverse
should believe that there was little good left In the
Mutual L1fo or its managers, and that would
be In danger Of making unfair comments upon
theIr action II attempted 70 write you about
But i WAS disappointed. While it Is
true that the otl]ccra with whom l con-
yerscd Eero bitterly opposed to tho Mutual
Lilo and Its recently y-adopted mcthod, aud werc
not economical of their dcnunctatlon. and some
times used language which would not look we'll
In your columns, IL IL also true that thoy seemed
10 be utterly at loss for candid arguments
adapted to convincing lay mind that theis dc.
profess to bo an expert IN lile-tnsursnce, have
0iven enough attention to the subject, think,
TO enable me TO comprehend candid arguments
used In discussing 80 simple matter ~ a 30 per
cent reduction Of my premium; and was pre-
pared 10 be convinced that tho Mutual was do
Ing wrong. 1 had read .the opinion OF tho DoB-
ton lawyers who say thst the policies tasncd by
the Mutual Lsfe to those who pay only 70 neF
bad road tho "proteat ~ circulating for policy
holders' signatures, In which It IL act forth that
4 great HropR IL dsne to old policy holders; and
was unable to satisfactorily answer thcsa as
sestlous.
Al. to the validity Of the po]Icte. was as
eured BY an otIlces Of another ltfc-tnsurancc
company, who is also lawyer Of larae e1peri-
ence QUALIFYING hin to form 40 opinion, tbst
merit attention. Tho officers Of the Company
arc expressly empowered bJ It's charter to mako
contracts and to determine tho rates Of premium
Te o!ee, se, ba Ths
policies.
AZ to Tho wrong done to old po1lcy-holdcrs It
T. fAlr to say that such wronE Is not platn!y 70
Tho officers OF tho Mutual Ltfo say distinctly, ia
elfect, that 10 providing for the " fcr cent de-
fcteucy in the payments OF those who became
sncroach upon funds arising from the pay
In tue Company And wo must
take tlcir word for It. They explain how they
cannot see that it taxes ones crclullty much to
accapt thelr statement ~ quits accurate. On
the contrary, oac's credulity.s sevc.ely taxed
to betteTe any other explanation Of it. But It IL
claimed BY tic opponents Of the Company tha.
tha fund which, under the 90 per cent rebate
plan, Ia in effect divided amouR new comers,
ought to be divided among the old potlcy-bold-
ers, on tho principle that I'll the surplus Of the
Company, nitbout regard to whence 4 was DE-
rlvedt belongs of right to all pollcT-holcrs, the
share OF Zach being determined by the sun OF
hLs contributions to the whole fluids OF the
Company, The officers tel u' that thls
the 80 per cent deficiency waa created
out Of surrender charges, ~ they called, col
lcstcd from those Who sold their policies to The
| Company for cash, ani that tho Company was
Justified in collecting these surrender charges.
bceausu only healthy lives withdraw, with few
| exceptions, md thus the Company loses average
| yttaltty, for which it must be compensated.
| Now, II W. once admit thst q surplus formed Of
| theso slrrendcr charges may pr0Der1y and safely
| bt divided R,nour roinulutug polio v-huldors, We
take away al! the, classification for any consider
| at'ln surrender charge. Fur this loss Of aver
ever heard for surrender charge TO outgoing
pollcy-hotdcrs. And II ID not Unreasonable to
suppose that, II man bn tn 4 0cltcate OF doubt
ful state Of health. ho will try very hard, II nee
:
while 3 robuat msn. With the promise Of a long
aud productive life, Will hare less anxiety
about tho futufa OF Ills fnmfly. and will DO
less reluctant 10 permit bis insurance 10 cease.
Aud this, Il u obvious. may tend to leave n
company With IN undue or unexpected propof-
tiou Of cnfcebled lives, and an unexpectedly
large number Of dcaths to draw upon its
| resources.
| Therefore, II there be any truth in the theory
| that company must for IT. own safely collect
or retain something from the sutrenleriug
po!lcy-ho!dere to compeneate It for the loss of
vitality, 4 follows shs. whatever T. 80 collected
pollcy-ho!defs, but must bo made to serve the
purposa TOT which It was obtained. It may DO
! kept to pay for the Increased number Of deaths
- they occur, or bcused u obtain healthy mcm-
| deaths. 1t ID manifest that to dly,dc 1t among
old poltcy-holders would e!thur be unsafe or
would Aatly contradict the theory that is pleaded
| as Justification TOR exncsfng It.
II seems tuo plain to nccd enforcement that
| compa1y acts wisely when Il tries BY lcgiti-
mats means 70 tndueo the entrance OF new lives
to takn the places Ut those who voluntarily With
arc Legitimate meansl In this case tic Mutual
Life iIas accumulated fund by a tax Or charge
upon shose who have Withdrawn, mud It acrumu-
| lated this fund Tor tho purpose Of using II 10
vet healthy lives to come ln and take the place.
VI tho Withdrawn opes. Can any fair.Miindctt
| man question tho 1cgpl or moral right Of the
COMPANY 10 accumulate fund for this purposo
md precisely II thls way! Now It becomss
this fund shall be used 10 aesye tho purposo TOT
/ which It waA cFsatctt-i. t., to get new business
fcr tho Company. hare not seen or hcArl any
tttseussion Of The matter from tlIs point Of
view. Tho Company may l1so the money 10 ad.
vcstlse tho mcFlls of lifc-lasurauco generally
or Ut this Company In particular; II may Use
I. to pay agents larger compensation thai,
formerly, or to Pay an additional number Of
| agents: 1t tuny Offer direct money Inductsnent
70 tic sssuIel. 1aY II may doelthcr Vi these
either would be a legitimate use Of the fluid.
Tho 0niy question to dec!1o =, Which mcthosl
will produce tho best rcsultsf This officers OF
tho Mutual Lie, who hare built up The Com.
pany until 1t IL tho largest l!fe-!nxurAnce com
nanY in tie world, whu have accumulated its
&s5, ,000, ,o00, and have found safe and productive
| Investments for this vast sum, declt1ed to use
this accumulated fund 10 get new bus!neas by
ompsSy ID pet cent for tho 1T tTn atu yesr. .t
Tha: thsT acted wisely, ail things considered.
Am not called upun to say. That they sctetl
strictly within the limits OF thetr official power
| aud with DUE regAtl for the ftxllks nf former