The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-06-09
MORE ABOUT TONTINE.
The President Of the Connecticut Mutual Re-
views the Partial Reply of the Presi-
dent of the Equitable.


ton of the Tontine and Semi Tontine system
which have made at different times in your
columns. He begins by imputing my motive for
such discussion to jealousy at the amount of
new business written on the Tontine plans, and
disappointment at the much smaller amount
written by the Connecticut Mutual. and asserts
my consequent desire 'to injure the business
and reputation" of the Tontine companies.
have not assaulted the credit or reputation of a
single company in the slightest degree; / have
but stated the facts respecting system Of bust
ness which prove it to be an unnecessary and
cruel hardship to multitudes of families and a
public evil And if the system be pernicious
and this discussion establishes its character and
enables the public to judge both it and legitimate
insurance upon their merits, upon the truth, and
the whole truth, then it will simply be fair to
judge my motive for the discussion by the result
of the discussion.
MOTIVES Do NOT ALTER FACTS
But neither my motive, nor the success Of the
companies in pushing Tontine nor the amount
written or not written on other systems, touches
in the slightest degree the questions | have rails
ed respecting Tontine Is Tontine gamblng2 Is
it a perfectly needless and wanton hardship i'm
posed upon the families of the multitudes who
lapse their policies? Does it, without the shadow
of necessity, take from the family of the man who
lapses the pad-up insurance his reserve and sur
plus might buy and ought to buy for their pro-
lection and give its price to pool which has not
earned it by any possible mathematical or COM
mercial fction9 Is it taking, yearly, millions of
fovo md
putting its price into such poole These are the
questions of interest to the public.
shall make no further reply to Mr.. Hyde's
statements respecting the business of the Connec-
ticut Mutual, than that they are but half truths,
with the essential parts left out to produce dis
crediting effect When Mr. Hyde wishes to dis
cuss them squarely, on the full facts, and dares,
by reason Of them, to impugn by one hair the
solvency Or financial standing of that company,
he will be promptly met. But as these matters
do not affect the merits of Tontine, let US not be
diverted from Tontne by innuendo as to some
thing else.
MR.. HYDEs DEFINITION OF TONTINE EXAMINED.
Let us see how Mr.. Hyde's reply leaves the
questions raised. He thus defines Tontine pol
icies: ''They are the same in all respects as or
binary policies except that all premiums re-
ceived and interest on the same, minus only
death losses on members dying in the meantime,
and the average expense Of the company, are
accumulated and divided exclusively among
those policy holders who survive and continue
to pay their premiums until the end of the Ton
tine period, at which time the surplus is ascer-
tanned and awarded" That is to say, the sur
nlus on tho nraminms IF thosa who dia ovar and
above the cost of their insurance up to the time
of death; and both the reserves and surplus of
those who lapse, 'are accumulated and divided
exclusively etc. What the amount thus lost
to those who die and lapse, and what amount of
paid up insurance it would buy for their families
this definition does not reveal But in my letter
of May 10 l showed what the amount of such
loss would have to be in order to make good the
Estimates of Tontine profits which the Equita-
bio puts into the hands of its agents to solicit
Tontine with. To that exhibit Mr. Hyde does
not make the slightest alusion.
WHAT MIR. HYDE DOES NOT ANSWER
He does not deny that to make good his 'esti-
mates" on a twenty year Tontine for instance,
out of each 800 900 written there would have
to be-and therefore he expects there will be
900 of lapses yielding to the pool at least
81, 500, 600 of cash, which might have bought and
ought to have bought at least ST. OO0 600 of paid
up insurance for the families of those who
lapsed; he does not deny that if his pany
continues indefinitely to write new business at
the rate of a million and quarter day, as on
the 18th of April, thus writing $780, 900, 900
year, in order to make good its Estimates, !" it
would need to have-and therefore must expect
and intend to have at least $241. 000 900 of
lapses yielding to the pool at least 26 000 900 of
cash which might have bought and ought to have
bought for the families of those who lapse at
least $66, 600, 900 Of paid-up insurance; he does
not deny that on such business, in twenty
years his company alone would be having each
year at least $241 OOO 600 of apses, and would be
taking therefrom, for the Tontine pool, at least
$26, OO0,0 900 year in cash, whereby would be
lost to the families Of those lapsing at least
$66, 100000 year of paidup insurance He
does not deny that to make good his Estimates"
he has got to give those "who survive and con-
tinue' at least Y per cent. more than their own
premiums can be made to produce with the
Equitable's expenses and rate of interest, and
that he can get that ~ per cent extra only out Of
the IorIeltureS OF reserve ana surplus which
ought to buy and would buy paid up insurance
for families.
These are the grand fundamental facts of
Tontine; these the results necessary to it's
estimated" success; these are. therefore, the
results deliberately foreseen, intended and ar
ranged for; these are the induces Gifts character
and those who think it wise and beneficent that
many men and their families should lose these
enormous sums for the benefit of few, that the
extraordinary profit of the few is full iustifica-
ton for the losses of the many, that it is public
benefit to base scheme of speculation on the
knowledge that in a long period of years a great
many men of fair and even excellent financial
prospects will become financially broken and
unable to carry on the insurance their families
need, that the profits wrung from such disaster
Org fair proftc claap nopev will ct;I1 1;l,a Ton