New-York tribune., 1885-02-10

:; .sss sss L ~: Ssss sssi:ss':a s.9 4
The equity p this too obvicu. foF word; and BY %
,: . Sa 70 s s S dS s
s a q sys In
Insurance be could get no value or oP
S % hS M to
divided among the more re- icrtunate and bis family lost
ns ns e haa PSd f0 20 plain wss Gs S
opinion compelled the companies reform their prac
tlces as to do partial justice at east and they began to
9SsF s to aSus ss
the universal catchword.
THE UBIQUITOUS roNTINE.
But It presently occurred to some companies which
do 50 for good wse to foana scheme for attracting
business on these very oretures to get man to insure
s called fonne and this the men Who enter
Toane One R in s S sacS ss ae
is to pay his premium in fdli leaving IA the pool all the
sdrplus ms premium may earn for the twenty ysnrs II
force the his policy viii n pa aSR surplus
poo S Gi he g C amy
reason & to Ray MS premium no matter why no Iatter
% naa e aiss as 20 a he
O:s: whst be sI has paid and bis family Lose; the
which PAID for And the only iudacemsnt IL to him him
expose himself to the clear loss OF so much money and
paid for and Was bouud by every SSnest motive to see
to hen the hope that he Will rot forfeit but
period comes she will be one of sthose that remain to
divide the profits from the losses OF other men and OF
% at great on chance b.
may personally profit by the loss OF their raid-up
But carry the exhibition Of this Tontiue principle q
little further from the individual to the mass sTske on
illustration which is being more than paralleed
yearly by moro than company doing this basness
Suppose aTontine company takes 900 new insurers
al psa esss fs
Of new insurance Judging from known fasts It Is fslr
business would lapse, a6 that the ap.ed policies would
To
would therefore be about os2,9;5 tn. surras earned
s Jay yDSa nf
thing year by pp year. Millions Of dollars o PAID
Up to NEEDY families sar Ss sFep er n,0 the ne
divided among the lucky! Il is tempting game but
how cruel.
1T Is PURE GAMBLING.
The thing gambled for Is the families The utter
Inconsistency Of all this with the spirit and the only
proper function of life insurance does not need denf
Life insurance is protection to the family; this gam
bling with that protection. Life insurance Is financial
Life insurance means an InSroken home family union
and comfort this CANDLES the protection OF ones own
against the chance that he may share the profits seized
from other homes broken by death and despOed OF their
rightful protection by the gamblers chance
when lapses his policy, his family by natural
contribution to the reserve fund still give and in the
FORM to the extent that that contribution can give
IT, they 20 the protection which It would have given
under the original policy had IL been Kept n force And
beyond proper surrender charge there no ccnsaera
company no condition or exigency OF the business,
which, in the slightest degree even suggests that II one
continue his policy for the full amount his family
should therefore lose Its protection Cor such amount as
his contribution to the reserve viii s pay for And 1t
Is this protection which Is lost and which Is tile thing
gambled ior IN the TOntine pool.
IT, then lie insurance be high and Imperative duty
to ones f1u!ly or other depen1epis, this Is a crime
against them; waGon, selfish, crIe trieng with their
future welfare; changing life Insurance from benecent
Tlan for distributing death losses that each family Is
certainly protected FROM their financial eject into
device FOR winning profits ON gamblers chance out OF
a loss o, protection by the most needy.
Life Insurance is wholly uasehsh thing; it can be
cfecnal!y done only In Wholly Inseln1h M way one u,
his family; he cannot undertake to save himself from The
fun necessary cost OF true Insurance without Just 80 Tar
making Il doubtful that his family VIII have any protec
tOn ut all
SPECULATIVE INSURANCE.
Ever snce the revival OF business began In 1879 two
specnlatons have held the field In life Insurance; the
one, assessment insurance, with IT'S yncertan amount
ana certainty OF short Duration holding out the hope
thns for pothng; the other the Tontine scheme the
hope OF winning some ones money 30 adroitly mas
mns when DO not appear il the policy SO closely
connected with Legitimate thing AMI YET so apparently
full OF rich speculative possibilities that II has won Its
way with peculiar facility No doubt that at least four
nuhs Of the new bnsness written In the last tan years ny
the many guscs OF Tontne. Aud one after another OF
the companies that in former years sosat public favor
Joined the number OF thoe who under the names OF
men 10 The feast OF fat things taken from these
at the risk OF fclng wholly or partly
nlneked themselves and their familics: until the
that have not adopted some yhae other OF this
speculao on In the forfeurcs Of protection TO widows
and orphans be counted almost the In gers OF
hand.
ToSTINE EXPENSE.
And there is moreover. peculiar featu OF this
speculation that makes it very fascinating 10 those man
ages Of companies who think that the success of q
and measured by the amount OF new business IT can
write that prosperity lies In assuming obligations
nshes an alrns mitless expense fupd. The accumula
tions OF the surplus earned for many yeurs and tie
part of the general surplus aud funds OF the company
they a the absolute control and disposal OF the COM
the Tontne or semi-Tontlne period is reached. the
Tontine pocyho who has paid through Is notified
not told nor eau be by legal process compel the
managers tell as several futile attempts have proyed
how much the whole pool is nor h". II is made up what
forfcitures went into H. hcw lmch surplus. nor how
any part Of either accumulation or distribution was
must be content with such portion OF the blind pool
A. is assigned him The official control over the funds
20 accumulated is absolute and wholly Irresponsible IL
= perfectly easy TO use any part ott for expenses for
no one can called account Therefore and no matter
al orsenL because all dividends are post
pOned many years; ana meantime hls payments are
therefore Affected by any eXI endltures, however
great =, -
"A nd now-in point OF fact Mt time when. In every
business economy is condition OF success-when
he companies never In so good condition To pe
Indifferent TO the amount or new business, there was
yer such struggle for new business, nor at sch
ost nor by such ACKNOWLEDGEMENTS OF competition
ali Of which the Tonine companies are, far and away
bo leaders High salaries to any one who eau sell their
pecuative insurance, high commissions, whch arc
vided between the agent and the Insurer in what
yer proportion be needed TO induce the new man 70
ONE In. all adding greatly 10 the general eost OF IRE
insurance. and drawing from legitimate work those
gents who ind H. for the time teing, easier to sell
peculation than simple, plain life insurance.
one company, which has recently adopted FORM OF
emi Tontine has raised Us commissions for at par
rular L,ud Of business; ana the TOntine companies
aia kind than