The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-02

Increase in surplus....... s.74S.Ioa
a@M
sS&m
Here again the only item needing -.
PLANTATION is the saving Of Sl.lAs. 10 IN lis
fifteen years on lapsed and SURRENDERED
policies. These amounted 70 s7eMzs,
the reserve on these was slisaTe@s a
which amount 1881. e5S-or about % r.r
cent.-was returned 10 policy holders ia
Were ours a Tontine business the she;s
81, s07 OF and all the surplus sccamuiasss
by II would have gone into the pool far
the lucky ones to divlde--or SO much IS
was not eaten up by the expenses x
Racing
Similar exhibits by the many Toasine
or investment life insurance life companies
would be of remarkable interest.
Life Insurance >psculalion-A Turn In
the Tide.
Over twenty years ago certain Nss
York companies found themselves losing
business very rapidly on account OF very
high expenses and very small dividenaS
The enormous number OF resulting lapsrs
threatened their extinction but thess
were seized upOl as the happy basis of
plan 10 convert life insurance into 8
scheme for making money out Of tia
many who should die or lapse their poi
clss. for the benent OF the few who shout
alive and keep paying premiums throuEa
a certain period of years. The reserves %
lapsed policies-whlch with Us 70 70 pzld.
UP Insurance for the famiiy--and the usr
paid dividends OF both those who sses
and iapSed, were 10 be put into n Tonssns
pool. 10 be divided among those who wers
lucky enough 10 live and keep PAYNE
The gamble was as TO who the lucky ones
should be.
They figured out enormous probable
profits from the enormous losses indistd-
ual policy holders were TO suffer. and ths
Estimates OF these were powerfully al
tractiye Rich men took the Policies n
certain confidence that they could beat
the game. poorer men took them in in.-
tation OF richer men. and trusting lgcS
70 escape consequences--the forfsitsng q
their dividends and reserves for the riea
men 20 divide. Plain life Insurance. hss
no glitter; but here was a new np-se-
date thing that sparkled. The pool sas
drawn upon for commissions To- agents
that were simply staggering, and for fe-
hates TO new insurers which became
Schesae swept the field like prairie ffs.
The business OF these Companies sook On
a startling grow IN. and new business ~
measure OF the popularity or the hsT
terson OF success. The reliability ef the
ESTIMATES" could not be tested until ine
day OF settlement came ~ the end 81 80
Tontine or Postponed dividend period, an'
that was many years OF.
There were but two ways of meeting ~
scheme on which and the comm ss1cn a1A
rebates by which business was being eSq
turea In such enormous quantities. 80
was 10 fall in with the scheme ard cIe.
the same speculation with the salns 80
Of estimates. and pav the same prices ~ ~
business, and justify ones sell on -
ground that \ was selling peeps s.s "- =
point out TO those whose families hes 80
protection. and all the proieciion W. w.
could get. that this was pure 49, 49,
s sls Tor the lucky few il mus, Be q
the cost Of such confiscatiCn or the -
serves and dividends Of the mary as
a crime azains; those thereby suippe.a, ss
the protection they needed; INST -
people wanted 10" only because Trey ~
frade TO believe thar x was sosnstnas
else than what II was; that the 1870
at which The scheme was Ds anilv,ng ;hs
''estifuated" profits, and that, inse.aaa.,
being simply the distribution q $50
ard premiums being simply contfi po ~, !,
20 losses, IL ~as Impossible 20 mas ~asns
,,T,,,fssashIa investment 20 any one sxesls
BY robbing some one else Tor MS 1870 ,.,a<
iThe Connecticut Mutual chose the 49,, 49,.
course IL has steadily arg .ssss,es
erroged the true character o- tDe 49,. lsa. I,
exnhstte9 in the name OF life insurahns' !.
haa r3eadeA for pure life insNrsh !,
those whose families could n9t 800 i
have their protection gaslssDis.n ~ stevv peo-
nas 4rss1 10 teach the truth. - sIfe nSf.sa
r,le what their true want II, q n. a9l II
r0st 81 protection SIS syrai as pgsAsssS' az
has been content 70 SEQ fiaa'is. ..., rsss
a " sfs.1
es,,e, rev ones by deuSoraiizsng eoIhs es
esnsr,s ard 10 do new business ~ nsfs
- rfslions whsrs us spec uiaaas rcrs-
and they have become q nu ,,,,,sl4r<a. a
"a rlx--have done 70 by the aunaI I -.
ls5iiSon~ and - be criticised az 800
- ss.4s rtr.ss and enterprise eiN - 800
nos, 70 cater 20 the plblic. - s.s SER
on studying how 20 maze 800 s.,,ts. tsas a.
,rset ,tutII they are ultersfooa 80 .,,-a
-rtssf he replaced ~ has o'osa u svssr,
rs warnings have been realiz s.s,.. re~-s
twenty years ago tnese go $3.50 ~ prof-
~ rate 81 say, 5000 o.
then ages a. they ars ssttlinR 80 ..s,isaas =
Sow al s. $40 THOUSANDS % s,nt ths
Ne frs-,rsuc~ have been forie,s..' .r. -
-, - re e-rist ground out has fon'
.,.,t sSigkar commissions ana Di1~ .s,sas
Sase~ - keen the volume OF nsssnse.sy "a ~
swelling. and has lest on,y : estimates
cent er Iess OF the syslennia
tsgas catered 20 the pflpilc- wen shstr
sr4 row The tide has turned. sss ear.
.reraenaosss expenditures t@F - gerns. n
not keep them ahsad q cre ~ shfNs
f-avs in Tires Ike fheSr . ssfra
-. na,7ser -x--ssa IN 1885 the enoftf..p -. ssas
~ sfag 30 5g3 OF new business 80. rhsrh
erruuken s;s amount w, W has gore -
glaea 49, 1..s saar Another wrole - -sfg
90 ~ - raw business, a.. - III
ssert or It's books. MaIlg - arr5zrst-
ions Of dollars. the 1870 ss,sT'erssss a 81.
$3.50 =, inwurarce have gore a..s..slss
ions ions. % - shs sevsrai Tonfine esns y -
IN III these years: but 70 ae -, sas be~a
srrlIcation of the pTocee,<g,s- - 80 10 az
~ eyer VII Be maze.
,;.,. .ess5nnecticu, Mutual rensE -, wss
20 .s,~e IiSe inFurarc@' tnas .s1-- re
families need = buy ne o,sty x4ve. rs
,,,l1 afsossste ard simple .sssh : *
I'LL .het tbev cease - ganols ~ ~ T.
10 try % make sI'eoss a .,sg offsrs 80
-. - -rsess SINCERE sBaesvsr. ssty
.-atsf by is unpsraYieled resssn
s5.srs HeepectfuIIy slr1rls 80 ss,..szsecf.
JkcOB l.. GREENE.
Hartford, Feb. 10 sJs.