The Indianapolis journal., 1886-01-08

which s7O5 As more is taken for the pool under
the name Of loading leaving only 81, ,4l0 90 actu-
ally used in buying non-participating paic-up
insurance; out OF his reserve he has lost 1892 54
add his share in surplus So. 631 g. his total loss
is "a 404 IL, or over rs per cent. of what he had
In, and what would have paid for over So, 600 of
paid-up insurance for his family: that is the pro-
lection OF seml-Tontine to him and his family.
GROSS EFFECT OF sEMI-ToNTINE.
To produce the estimated semi-Tontine re-
suit with the same experience as to interest and
expense as the last ten years, at least ,S65 men
out of these 10000 would hare to lapse. pro.
ducing for the pool Sc 954 9l0 of which So 613 9S7
IS the per cent reserve. and 81 340, 923 is sur
plus, which is lost ou1Gight to the pool; the per
cent. reserve is cut down. by the loss to the pool
of about 1885 258, to II reserve of s. 378, T29.
one-third of which. 1892. 900, is carried to the
pool in the name of loading; so that of the 4-per
cent reserve Of 50, 613 987, only 81. $50, 800 be-
comes effective in purchasing participating
paid-up insurance and 81 OPS l67 of 1t is lost 10
the pool, in addition to the 81 $40 923 surplus;
total loss to the pool of $4,000 900, over n per
cent. of all their interest in the semi Tontine
fund.
LOSS OF $l2, 100000
The Sc, 954, 910 interest in the pool should have
bought over Sic, 600 paid-up insurance for
the families of those lapsing; they actually get
about ST. 250 900, a loss of about $12 000, 000
That is semi -Tontne. Is that small affair In
point of amountR Or harmless one In point OF
moralsl In addition to all this, those who die
during the period pay for their insurance over
$400. 900 more than it has cost the company.
The substantial difference between semi-Ton-
tine and pure Tontine, effected by the operation
of the New York statute is, that semi -Tcntine
ought apparently, to save on the average about
70 per cent. of what Is lost in pure Tontine; but,
by the New York law, all reserves are forfeited
for two years; also the reserves on policies not
surrendered within six months after lapse which
would reduce the amount of reserve used as SIN
gle premiums and increase the Tontine profits.
At any rate the estimates on semi Tontine are
only about IL per cent. less than those now Of
fered OIL full Tontine
The gambling element remains precisely the
same, perfectly unchanged; the man is still putt.
ting at needless and therefore wanton hazard
his money and the paid-up insurance for his
family which that money ought to buy, the
amount of cash and of family protection put at
the hazard is simply trihe smaller Twenty-Five
per cent of non forfeiture to cover and atone for
IS per cent of forfeiture! That is semi-Tontine.
BUT WILL EVEN SEMI ToNTINE ESTIMATES BE
REAL1ZED2
Granting that man can be willing to hazard
rs per cent. Of his family's protection on the
game, is the sum played for certain in amount,
even if it be won, and his own family does not
happen to lose three-fourths of their paid-up
insurance? Let the facts answer The Equita-
BILE, for instance. is actually paying only 81 per
cent. of the estimated" surplus on the full
Tontines issued ten years ago: and only go per
cent. on the ffteen-year Tontines. But it is
making the best of the disappointment by adver-
tlsng that their settlements of full Tontine are
a little above its estimates" of sem-Tontine
now used In soliciting!
What surer foundation for guessing have the
present semi-Tontine estimates? The only ele-
IN 4Iao
troll is the matter of expenses. And the Tontine
companies have not reduced expenses certainly.
In their replies last spring to my articles, they
alleged that they were not paying higher com
missions for Tontines than for other forms Of
policies; but IN their sworn testimony before the
Ohio Senate committee they admitted the fact
that they did pay higher. and disclosed by what
mental process they had allowed themselves to
say otherwise.
The semi Tontine estimates" of the New York
Life are higher than those of the Equitable,
though its full Tontine settlements are dis
appointing. The estimates" of the North
western Mutual are good deal higher than
either.
OTHER VARIETIES OF sEMI-ToNTINE.
The Five-year Distribution, Reserved Divi-
dend. Five-year Dividend policies, ETC., of other
companies, are all short-term varieties of semi
Tontine, precisely the same in principle and
identical in effect as far as the shorter term will
allow. Warned by the disappointment caused
by the difference between results" and 'esti-
mates" on the full Tontines, the companies
push these sub-varieties of Tontine without spe-
cific estimates" on the general representation
that the profits from lapses will make the divi-
dends of the lucky very large. For in these
days of low and still declining rate Of interest,
the lucky few cannot get large dividends unless
the unlucky many are first made to lose them.
THE UNANSWERED QUESTION.
But the great question which underlies all
these multiplying varieties of Tontine remains
unanswered
By what right does man who has family to
protect expose any part of that protection to
loss, or seek to take from any other family any
part of their projections
By what right do men speculate in any degree
with family protection9
By what right do they seek gain which can
come only from the needless losses Of families
JACOB T.. GREENE.
HARTFORD, Jan. 2. 1885,
THE great life destroyer is consump ii on, yet
one can ever be afflicted with this disease
who resorts at the outset of cough, cold, bron-
chial affection, or inflammation of the lungs to
Hala's Honey of HOrAh0und and Tar For colo