The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1885-05-22
T0NTINE INSURANCE AGAIN..
To the Holders of Policies Upon the Ton
tine ysfem in the Equitable Life AssuF-
ance Society of tine Omitted States.

tine yStcH gA tue &qultHDfe Eille AhSuF~
ance Society of tine Omitted States.
The President of a Connecticut company
has recently by advertisements made violent
attacks upon the Tontine system OF lie as
surance as practiced by the principal COM
panies of tho Uoited States.
The annual new business of the Connecticut
company has run down from S46,00o,oOO in
1866 to about 100000 a year, and SO lsrge
have been its forieilures and surrenders that
its amount OF risk is now S33 100000 less than
it was ten years ago. Its surplus is about one
third as much as it was fifteen years ago; its
incomei is about two and one-half millions less
than it was eleven years ago.
These results have so embittered this officer
that he makes an attack upon the Tontine
system Of life assurance, which has been in
successful operation for seventeen years, as q
pretext to injure the business and reputation
OF more successful companies.
His partisan statements have been seized
upon by iew members of the New York
Legislature, and used as prsteuce to obta in
committee to investigate this system OF assur-
snes.
The action OF the Connecticut President vas
not the work of philanthropist but the soph
istry OF disappointed manager directed
against more prosperous competitors with the
intent TO inJure. The action OF the Legisla-
ture was but the basty step of large body Of
men, urged BY few, and arrested by the body
itself almost SIS soon as taken. AS an attempt
has been made to befog the public mind on a
very simple subject, g word of explanation
will be opportUne.
WHAT Is ToNTINE AssURANCE-PDAIN STATE
MENT ON THE SUBJECT.
The Equitable issues two kinds OF Tontine
assurance policies, Tontine Saving Funds and
Semi-Tontine.
WHAT ARE ToNrIEa SAVINGS FUND POLICIES?
They are the came in all respects as ordi-
nary policies except that all premiums re-
cev and interest on the same, minus only
death losses on members dying in the mean
time and tbs 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 Toatine period, at which time the sur
plus is ascertsined and awarded. This with
the reserve the policy is paid to tho assured
either in some form Of new assurance or cash,
as he may slect.
The plan is very simple, csn be easily under
stood and carried out, and there is 10 mystery
in it whatever, and the accounts are kept 80
distinctly that the relative reaults on these
policies are easy Of demonstration.
WHAT ARE sEMI-ToNTNz POLICIES?
They are the same as the above except that
they have surrender value after three years.
THE PUBLIC HAVE THEIR CHOICE OF NUMER-
Gus KINDS OF ASSURANCE.
This Society offers to the public the various
forms of policy in general use. including En-
dowmert, Ordinary Life, Toniine Ssmi.Ton-
tine and others. 1t is matter of indifference
to the managers which of these are chosen.
The fact that the varieties Of Toatine policies
are selected in greater proportion than othera,
is because they are popular with the pabhc,
and ibis IS probably the very reason why the
plan is 81 bitterly attacked by one who had not
origipAllY Tic foresight to adopt it, but COM
mittad himself against it.
why "a Great Public Coed is Accomplished
by TOnIine Policies.
THE WIDOW AND ORPHAN PROTECTED
Nothing human is absolutely free IRON evil.
The object Of the life assurance manager
should be to pursue that course which will TO
the greatest extent correct existing faults in
the business and extend the ultimate benefits
Of life assurance to the greatest number. In
telligent underwriters will. think, agree with
ma that one OF the greatest evils at prescott ex-
listing in life assurance is the lack OF persist
ence on the part of the policy holders in pay-
ing their premiums and the resulting forfeit
ura OF policies. Many wits who has antci-
pated the receipt of a competency in case the
hearth-stone should be desulated 0g tho death
Of the husband, has sssn herself bsggars5. and
her children psnnilsss through tAe surrsnder
OF the policS by the husband, oftau without
the wife's knowledge. and perhaps for some
trihipg reason, the sale of the policy being the
readiest way Of raising money.
ow DOES THE ToNTINE SYSTEM CORRECT THE
EVIL OF SURRENDER?
The Tontine System, introduced by the
Equitable Life, has in measure corrected the
evil, as will be shown by the following facts.
IT Is SHOWN THAT ToNTINE POLICY HOLDERS ARE
MORE PERSISTENT IN PAYING THEIR
PREMIUMS THAN ANY OTHERS.
To show the tenscity CT TontiDe policies, we
Assurance Society in regard 10 examinations of
policies, Tontine and Non-Tontine, taken in
1875. The experience of policies issued in
every other year shows similar results; bat the
issues Of this year ara selected for illustration
because at the end of 1884, no Tontine term
had yet lnatured. This examinations previous
to December 81, 1877, are omitted in both cases
because during the first two years u policy,
whether Tontine or Non Tontine, has existed
long enough 10 acquire surFeuder-value. The
following figures, therefore, are fair illustra
tion OF the mparative persistence of Tontine
and Non-Tontine policyholders, during peri
cd whom the latter are entitled to a surrender
value, and are deprived of the large prospect
i've value offered to the former as a motive to
continue.
TOTAL ISSUES OF 1875.
Ordinary. Toatine.
OF the policies in each class is
sue1 in 1878 there In