New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-04-04
LIGHT ON THE TONTINE PLAN
VARIOUS PHASES OF THE SYSTEM.

VARIOUS PHASES OF THE SYSTEM.
Testimony BY vIcE-PREsIDENr ALEXANDER AND
ACrUARY PAcKLER.
Tontine straight, Tontlne mixed and Tontine 9TH
erwise caused notable gathering OF lawyers yes,
terday in the Equitable Building. The cOunser nad
transferred themselves from the flItn hvenIe TOT
70 TINS insurance centre in order to follow the ioo
steps of the special committee OF the Assembly III
It's investigation Of the Tontine variety Of me lu
surance First vice-President Alexander, Oh I ne
was strongly guarded by insurance books, pam;
phlets, etc. 2 have enough reading matter mere.
s n,sd 70 for week" The Assembly, looked APP
prebensive while MI. Alexander set fortn tne deIaus
of the Equitable COmpany's business lot 1901
DAVID p Fackier, a consulting actuary OF nine-
teen years experience. the next witness. he
defined pure rontne as "a fund to which many con-
tribute with the understanding that the income "
70 he shared by the survivors year Dy year, snu
with the possible understanding that after Ger,
tain period of years the reserve should De shared.
AS applied to life insurance, tine contriou.ors W
years at the end of which term the surviving
policy holders of that class share the surplus NC
cumulatmg from premiums and 1orteltures vi onOso
who had failed to pay their premiums MI. haihes
pled the witness with questions regardIhg wna'
Conditions would vitiate a. pure iontlne ponc S:
In the iSntne SYSTEM M drsStaSes Of TINS plan
were two-fold First 1t guaranteed the paymens
of The policy at the end OF the term agreed on 10
the policy secondly ,his plan acs sna ~ held them
to their payments in order to save what they mao
paid In. The disadvantages OF tn e, a wbo
tine plan were that an insured man VINO
tailed to make a payment. dropped out
and lost what he had paid in. In ordinary poiicles
the insured man, in case he could not mcee gay
ment could borrow of the company ana SO Ree
breathing spell for year OF So ms hns;r wss
impossible in the 1ontine plan. From business s
point OF view, therefore the i3nsdhS t pa econowy
since the pOIicy-hoder could not ascertain wnoSo
the money intrusted to the company was nanuiea
economically. Again. the holder OIL an 9rddnar IS
nocv if dissatisfied with his DIVIDENDS, couid
transfer il to another company. , L
Luclus McAdaIn the committees COUNSEL mere
intrusted tine examination 30 AssemDiyman names,
who took I'D a phase of the question Wnlch Tue
committee intend to probe thoroughly. lhat ls 10
ascer ain whether in the 9utaoie anG o.hel CUM
panles the surplus on any TontiDe Pohcy Is coin e
nntad exclusively as the basis OF the number VI
holders of that particular Glass;
Mr. Raines-If took Tontine ten years policy IN
1880 culd an actuary the reserve anu surplus
on that policy in lSS4i Al should say yes . +,
is that true of any year in rontine period' Al
If that Computation were limited to policy
entering in tho same year. would oe be dcI but
not impossible -
Mr.. Raines took up Circular No. "a, setting forth
the relations of scientific discovery 10 Inc ion-
tine tendencies of men," and asked:
Can Won explain the meaning Of 1.-The Tontine tenden-
Mr. Fsckier tdubfously)-I don't know what yon mean
MT Beaman-It means that the last man taxes the
Mr. Rhinestone one gets the whole pot by taking
Mr. Beanan ito the witness-Is your life insured ,
Mr. Fackler-i suppose so, yet l shant Kho" until
am dead. (Langhter ,.,r,o A
MR. Beaman-Do you think it wise for wise man to
scatter his Insurance. in different staes-Conhec'
MIR Fackler-I think that this would be safe policy to
PMr Reaman-Do not persuasive agents induce many
people to apply policies. who, after examination 10
not take cut the policiesf
Mr.. Fackler-les, SIR 1870, ,-,...,o,
Mr.. Beaman-Do you know the technical oesignauon
OF such peoplei Al do not - - a..
Mr. Beaman-Did you ever hear OF the n; L. Os'
Mr. Fackler (puzzled)-i can't say that nave.
Mr. Beamau explained that the n. 1. Vs were
those not taking out policies after appncation'
Mir BeaInan then demonstrated that man har-
assed by an insurance agent might &c free agent
himself Me- Beaman also induced MI fackier 10
admit that Iontlne policy was an optlonai one
Just as 1t would be optional with woman 10 wear
short sleeved dresses.
MIR Be.,nan-Was the pure old Tontine Q wise thing
for a Young man Al can hardly say.
Mr. Beamah-Was 1t not wise for men OF nfty years.
Mr. Beaman-Then would not pure Tontine be good
for voung men Young fellows of thirtyi Wouldnt
they clean the old fellows QUIT
Mr.. Fackler thought that in some respects the
younQ men had the best chance. lie SAID IN con
clusion that better and safer average might De
obta,ned in the ten years classes than IN the yearly
classes assuming the actuaries to be honest anu
their successors Also -, nj
The hraring was adjourned until to-day. Inc
Commiftee on the invitation of Colonel Emmons
Clark, in the evening visited the 7th Regiment Al
mory and had a dinner.