New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-05-23

gwen 10 the last he would have paid So $50 and his
family would have collected but 267 per cent instead OF
zoO per cent; an attempt at equalization amounting to
ony per cent ~ against 1000 per cent still In the
hrSe case and 1000 per cent In the second II 1t be
preposterons to have the disproporon it is equally
80 10 nave the Oher II dsprD be preposterous it
ought to DO done away altogether not nanitesmally
'aeu IL must be the very basis Of calculation that Is
wrong and not It's "rehnemsnts Bat will Mr. HYDE
tetl us that the perpetually varying dispropOrtOn
between premiums paid and insurance collected In both
re anu Ire insurance Is wrong II will he tell
now IL Is wrong viii he indicate and develop tn
proper oasis OF calculation for both kinds VIII he tell
us now II disproporton be done away there can be
any such thing a. insurance at all Will he tell us
now the premiums paid can be adjusted TO the policy
To De collected other basis tn the current risk of
loss And If risk be the basis Of premium aud the only
possible basis VIII he tell why any man should pay
more than his risk costs the Company in order that
another may pay less than his risk costs themi II
dsproportOn be prePOster0us why does he still offer TO
Issue policies by plan which leaves 1t at maximum
why does he stop reform Mt plan which only scratches
the surface and leaves the body Of the thing untouched
tenyear Tontne goes one-ha In this reform as
twenty year; and a fortYyear Tontne would 20 twice
as FAR STILL Why does he tenyear Tontine at all
and stop short at % twenty
No; Mr.. Hydes defence ignores not the "refnenents"
but the very alphabet OF the business; and presumes
upon the complete Ignorance Of his readers He practi
cay denies that the true individual share in the yearly
gross cost OF insurance is known or that the premiums
nc charges have any relation or proportion to 1t.
THE TRUE BASIS or ADJUSTING COST.
Ills company is carrying gross amount OF insurance
on large number Of men OF different ages and conse
quently different risk OF dying In each year. and he
charges each premium proportional to that risk at the
end OF the year he finds that the losses have been less
than he oxpected that is the Of has not
booV
as vas expected; T. now be that part of each
premium which charged an paid to meet losses
which did not accrue expected greater risk
than the actual one the cost OF insurance will
wholly met-each premiun-payer. including those who
have died during the year, will have paid his full
share OF that cost os proportion OF the entire risk will
have paid all that would have been charged him had
greater losses been expected Is not that exactly true
Mr.. Hyde And why should any pay than is
called for by the proportion of his individual risk the
entire risk And II more. how much more On what
principle viii you calculate the proper individual share
II that is not the proper basis OF individual share in the
gross cost, what is 1t, and how will you apply 1t
ToNTINE MORTALITY.
Mr. Hyde's third point is that the TOntine policy
holders better risks and have a smaller mortality,
which makes their profits larger; and las ademonstra-
ton OF this fact he gives the ratio OF the death losses
premium income the Eqnitabes Tonttne policies,
those OF four other companies not named and those OF
the Connecticut Mutual and says these figures speak
for themselves"
"LUCUs NOM"
The figures as demonstration are simply grotesque
in their absury. The ratio OF death losses premium
income in different companies OF different ages with
different plans Of insurance. with great deal OF
old business others with nearly all newke the Equit
abesome with much paid-up Business and others with
comparatively little, some with much business high
premium plans Others with much on the low premium
plans afford the slightest indication the
value OF any kind OF business because does not give
hint TO the actual mortality per cent in any
company We judge the quality Of any kind Of bust
only by comparing the actual losses under all kinds
FIRST with the table OF expected losses and then with
each other Let Mr. Hyde tell us what per cent of the
mortality table the death losses in the Tontne class
and what they in the TOntine risks and shall
begin TO know something about It. But his present
hgures grossly msrepresent the whole matter. II his
comparison were a true demonstration" then the
average mortality OF Tontne Is good deal less
than nehih that expected by the American table Is
that tho case, Mr.. Hyde Give facts which mean
something. not figures which have relation TO the
matter. TOntine pOicyaOders would probably live as
long insured under nonTontine policies
THE Distribution or THE MORTALITY LOSSES IL
THE EQUITABLE.
The natural Inference from Mr. Hyde's statement that
chief OF large Tontine profits Is the smaller
death rate experienced among the holders OF these
policies than among those insured the ordinary plaD"
is that his policy the ordinary plan have to
bear their greater mortality by themselves and the
Tontine get the whole benefit of their smaller
tally; and that the mortality OF the company Who'll
made to bear all in equal proportion, according
to age by which the premiums graded. Is that the
case
ToNTINE RESULTS.
Mr. Hyde's fourth pont is. the results OF fifteen
-. ~ do,
the Connecticut Mutual.
Here again. Mr. HyIe's fe ures DO not represent Ike
conditions make allowance for tho differences. In
the Connecticut Mutual policy, Mr. - had given notes
for part OF his premiums on which he paid interest
which Mr.. Hyde inc udes his statement OF premiums
paid. II he wishes to include part Of the interest We
have received with the premium. lot include 1t all in
both cases. let reduce both policies 10 like conditions;
take the full payments tho Connecticut Mutual, and
compouuding them at per cent, they would have
amounted TO 81, 923 49, compromising his payments TO
the Equitable at the same rate they would amount to
SlOO5 So During all the time stood ready to Il 20
his family the paidup insurance that what We had In
hand would buy II he lapsed. Had no lapsed IN the
Equitable all would have gone, hs family would baye got
nothing. lie would have paid to the Equitable
81 Os2 80 than to Deduct that excess Of pay
mcnt from the value S2765 35 which the Equitable
now offers him. aud leaves $l6S2 3d. AS the sum wi tn
which the Connecticut Mutuas settle ment ought to be
compared The reserve In that company on this policy
ut that time 81 321 %; the surplus for that year
was S45 3d. total 1869 81, 1913 80 less than the
Equitabos TOutine settlement equivalent basis.
That 1913 80 out OF the apses and fOrfeures OF
other peoples Insurance. and good deal than that
had to gotten of other peoples insurance for this
man. the Equitable has not earned per cent interest
for the last iteon years. and its expenses have been
good deal above those OF the Connecticut Mutual But
whatever advantage it show in its rontine settle
ments comes out OF other peoples losses That is the
point And in order to get this 1913 80, this
man has BEEN for niteen years rs1ing every dollar he
has paid Tho Connecticut Mutaars settlements repre-
sent simply the full proper results from each mans own