New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-03-22
TONTINE AGAIN.
A SEARCHING ANALYSIS.


TINE PROFITS ARE FAMILY LOSSES.
10 ne Ed,tor Of The Tribune.
SIR: On the 10th of February last there ap-
reared in THE TRIBUNE extracts from my official report
upon the affairs OF the Connecticut Mutual. In which,
among other things tried to set forth distinctly he
difference between simple life Insurance conducieo
according its own Inherent principles and solely ior s
own natural and proper results and the FEATURES Vi
Tontine, semi-TontIe, ETC., which have Deeh eA'eh
sively grated upon it in late years.
MY main pous against Tontne, either In Its grand or
is petty FORMS these: that II makes tne neh WI"
take it, gamblers; that 1t makes them eahoerS ho'
simply with their own money. but with the pro'oc'ion
that their policies ought to give to their families anu
which is lost In whole In part according as 1t Is ION
tine or semi-Toutne) in case of lapse; that makes
each man needessly expose his family to the otai OF
partial Of their protection In the nope tha no s
win the proceeds OF the loss OF such protection py o
families whose policies have to lapse while no p"e
through-a thing utterly repugnant to the au
nature of life Insurance. turning that which was
only for the protection Of families from loss lnto
means Of personal speculation in their losses' ahc
further that the Tontine profits being hed ior many
years. as part of the general assets ana surplus
without any special lien thereon by those whose pay
mens have created it. and without liability OF account
to Them made ON enormous fund which could De- mas
BEEN and is being drawn upon to meet unpreceden'ed
expenses in pushing business In suchw way as.'o
completely debauch competition
II these views be correct, they are OF tine most ero'
public Importance. for life insurance Is ALREADY an
essential part OF social machiney htney DC "rohs'
1t can be easily shown, for the facts are very 10" an"
their simple when they pointed ont; anu
the question Is not foreclosed by any success OF
hitherto because ii has not been uiy truly au" i"i'
discussed and presented to the public In all us
Certain attractive features have been set forward with
in,mense energy by vast body OF highly paid mon'
an xious reap the advantage OF novelty ana 'nore
are MANY holders OF Tontne policies who took them on
the estimated" possible profits without any rear uea
MT all OF the risk to which their families are thereby
exposed
with Mr. Beers OF the New-York Life ana Hr. AleA-
ander of the Ed litabe who introduces also what MI
I,yde has said TO his agents. and on March IL there
appears also an interview with MI McCuruy' oi .'no
Mutua Life These interviews undertake to answer the
points made to Justify TOntne and Its KIM ana 'heh
proceed TO attack me and the Connecticut Mutual
The first and necessarily the vital poni, in ther
defence IA as to the question OF gambling; Is iohuhe
gamblingf Their reply Is that T'niine is no hioio
Gambling tn an any other insurance transaction that
insurance deals with chances so does Iohthe 'ueio
fore there is a moral equality between them.
What, then, is the essence OF Insurance. anu "h' 10
the essence of gambling
DEFINITION OF INSURANCE.
Town house which cost money and which cannot
afford to lose; but there is constant chance that may
burn; that danger I cannot remove; II Is danger
which did not create, for which ain not to Dane ana
which I cannot control avoid. | car only secure
myself against its malign effect by getting other men 10
hear the loss when IL comes, IN consideration OF my
belpiug TO bear their ike losses until mine comes That
k Guarding against loss to which am in spite OF my
self exposed: that Is insurance.
DEFINITION OF GAMBLING.
Now on the other hand. / bet my house against my
neighbor's house. that certain morse will win certain
race he bets the contrary Aside from the bet the race
"a nothing TO either OF us; whether the horse loses or
wins it. does OF itself affect either OF us one parc'e.
So we have taken chance which did not anect either o
us by which neither OF stood naturally to gain or 10
lose anything chance with which neither OF us. hda
ANYTHING TO do and upon the event of hat chahce we
have each needlessly wuly exposed ourselves to the
loss OF our houses in the hope that will not al upon
me but will fall on him for my advantage; he for the ike
hope as 10 himsef We have created loss iwi'iuly,
nas.tIessy whore existed could have eSlht"u
otherwise and leave the Incidence OF the loss 10 DE
mined by au event in which have no interest ana
which has no connection with houses or our titles TO
them; each hopes he will win what the other loses IL
Is robbery by lot: the lot, the horse race determines
which one Is to be robbed That is gambling
Insurance is protection against inevitable loss from
without from source and power we cannot control or
resist; gambling 10 the wful, deliberate nnlcon OF
wholly needless loss the incidence OF the loss to be
determined by some chance wholly unconnected In
nature with the loss.
DEFINITION OF ToNTINE INSURANCE.
What now is the essence OF Tontne in life insurance
Ny family need my life; they lose 1t they lose money
which they cannot afford 10 lose they are In day
danger of losing IL money value this danger they
cannot help nor AVERT have placed them under that
danger: must guard them against 1t to my utmost
ability; the only way can do so adequately ana at once
Ga IN insure them against the loss OF my HES money
value; therefore must insure; Is my clear, simple
manly duty; It is equally INV duty to see that they 10
not lose that protection TOR any needless. wifu cause
4 thataa oh nv
| greater aud my premium woulc therefore naturally
| increase do not wish TO pay "a premium winch VIII
grow yearly higher too high for me to pay II i've; 80
will nay level premium each year. which VIII be more
than my risk for many years. but less than II would
cost after awhile and the company will reserve the
excess of premium cost In the early years TO offset
the excess OF cost premium in the later years. and
have never to pay than certain amount NOW IL
may easily haI pen that by long Illness loss OF means or
loss OF occupation. become unable to pay my prclun
by lust So my family need the protection OF the IN
snrapce all the more for have the less for them outside
| OF that But can't pay longer. How will my family
fare Suppose had been insured for twenty years In
the Connecticut Mutual under Its present contract Tor
$40 600 and forty years OF age when began ana
had 10 stop my policy would be paid VI insur-
apce for 22O should have paid for my twenty years
of $4,000 aud contributed besides TO the
reserve fund So 334 CO. against expected greater
risk in the FUTURE but as can't pay the company won't
have that future risk carry the $4,000 ana there
fore has no for the 1884 60 held to meet IT,
and ~ converts the s34 60, less q small surrender
charge into a single premium for paid up insurance and
nv family has permanent provision Of at least 1920
Now mark this: the 1884 90 is neld by the company
only as reserve against my future risk on the expecta-
ton that ey carry the risk IL ve and just
equal 20 the difference between the value OF that ture
risk and the value of the future premiums may be
expected to pay They have been fully paid already for
the risk Tor the twenty years, and besides have been
Maid s3i 90 on account OF the future rsk for $4,000
from which they relieved by my failure TO pay
further obviously, they have no further use Tor that
a. s3A 60: IL was paid In protect my policy for my