Year: 1872




SIR: There is no reason to believe that the
Mutual Life Company in proposing to lessen the rates OF
life insurance, is obsnstey bent insuring people
only at the lower rates No doubt 1t will hereafter con-
tnue to insure at the higher present rates any one
who insists upon paying these, and will keep as 1t can
easily do the accounts separate of the higher and lower
rate pocyhoders. Then those who their money can
have their choice II you will inquire at the Companys
Office no doubt they will tell you that they can aud will
do this.


There Is no reason why insurer who wishes TO pay
more than needed insure him should not be grat
fed but everybody is not fond OF overpaying 1t s
also worth while let those have chance who desire
TO pay more than is needed for safety. This the
Mutual Life now proposes to do.


Eighteen other companies seem TO have been so
alarmed at this step OF the Mutual Life that abandoning
their paid actuares they have retained three gen
tenen who call themselves consulting actuaries TO
tell the public what they think about II. consulting
actuary probably Ikea consulting lawyer-be thinks
what his employer thinks aud what the eighteen
ployers of these three consulting actuaIes"
sary and unavoidaby think Of proposition 20 reduce
the rates of life insurance anybody may judge from
glance the following tables which show from ocal
reports rs ratio between receipts and expenses in
the eighteen companies and In the Mutual Life for three
years past (which of course shows the comparative
economy Of management; secondly 1.-THE percentage OF
claims by death on amounts insured, which shows the
comparatveEcare with (which risks have been taken
and lastly the proportion which unreazed assets bear


TO total assets which shows how closely loosely the
companies have done business unrealized assets being
moneys due but collected.


1t appears from theseIoffeia figures that,


Frs II the expenses Of the Mutual Life had been as
great In only the last three years the acreage o Of
the IS companies who do not like its present action
would paid out $7S62 more than 1t did pay Tor
working expenses m0nstrous sum, nearly as great as
the total expenses OF the Mutual Life during the whole
thirty years OF its existence. The Mutual Le. pouid
appeor from hs may safely for loper rates be-
ea.se as these figures shor is management and has
been more economical than that Of the IS companies who
complain.


Second II the claims by death the Mutual Life had
been as great the average OF the Is companies who
attack It's course 1t would have had to pay in 1871,
t0SOeu more than actually called 70 pay for
death losses II these figures are correct The Mutual
Ls may safely tnsure for iO~rates because 1t has used
greater care IN selecting Tires than the IS companies who
complain OF it,


Third In every large business there are necessarily
unsettled accounts and incomplete transsottons; but
that merchant will be the safest and can do business


most economically who has the fewest OF such unsettled
and outstanding accounts.


Now In this case OF the total assets OF the Mutual Life
Company three per cent consist OF balances due from
agents. uncolleeted premiums. and the like The aver
age percentage Of the "unrealzed assets In the
eighteen companies s according TO these Official ngures


little over seventeen per cent. II the Mutual Lies
affairs managed these figures would indicate the
other companies to have managed theirs, 1t would TO-
day have nearly nine millions Of its Funds outstanding
and therefore TO q certain extent In peril


Fourth But the first table below shows that, looking to
the differences IN the rates Of expense between the Mu
tual Life and the average OF the eighteen companies
which attack It 22 for the Mutual Life. and 3o6i for the
average Of the other eighteen companies, the Mutual
Life do business on the proposed lower raetweny
per cent reduction, nameyand yet continue 10 return
to the new policy large dividends the
age OF these eighteenlcompanies.


1t should known that the hgureshn the following
tables are taken RON - sworn sl;:l1ats o; tic d.