New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-02-25

connection.
Part Of premium provided FOR
assumed I4.lso.cs7
Sa.ed from expected death losses. G.7l3,5so
Saved from Reserves on surrenders.
sa a%S stocks ' sl:ssi
sas osa5o2
This has been applied follows: o.,o-.
Expenses Of management $50 o2G3al
/ Iaxes ............................ 4's'+'%'
1891 200
nerss.s IN ' aeeqmuiaisd dividends .s!sss
Increase In surplus ................. 3'4o'loi
% 262 2os
sss oe35o2
Here again the only Item needing explanation
Is the saving of si.1s9,7s9 in the fifteen years on
lapsed and surrendered policies. These
amounted to $40 9373ls; the reserve on these
was sll.5O7 .ci7. of which amount SO,3l725S-or
about 90 per cent was returned to policy hod-
| ers in pad-up insurance. cash and otherwise
We're ours a Tontine business the whole $ll,-
507.oi7 and all the surplus accumulated by II
would have gone into the pool" for the lucky
/ ones to dvde-or so much as was not eaten up
by the expenses of Racing
Similar exhibits by the many Tontine or in
vestment life insurance companies would be or
remarkable interest
Life Insurance SpccuIatiOn--t Turn In the
Tide.
over twenty years age certain New-fork COM
panies found themselves losing business very
rapidly ON account of very high expenses and
very small dividends The enormous number OF
resulting lapses threatened their extinction;
but these were seized upon as the happy basis
OF plan 20 convert life insurance into a scheme
! for making money out of the many who should
III" or lapse their policies, for the heneit OF .ne
few VINO should live and Keep paying premiums
through a certain period of years the reserves
on apsed policios-which with us go To BUY
/ paid-up insurance for the family-and the ul,
Of lt.fI hoe
/ apsod were to be put into a Tontine pool, to be
/ divided among those who We're lucky enough 10
who the lucky ones should be.
Thav ngiIrcd out enormous probable profits
/ from Tho enormous losses individual policy mold
ors wcr. To- suffer ana the "EsiimateS or these
/ were powerfully attractive. Ken men TOOK tti
! policies I'm certain confidence that they cvuIu
! lsat tn. game. poorer men to them III i'il'd-
/ ton Of richer men. and trusting iucK 10 GsoIpe
consepuenccs- forfetirg OF their dlVidrnas
! and reserves for the rich men to divide ram
lice insurance has no glitter; out mere ""T
now up-tO-late thing that spatKi'u
F "pnoI' was drawn upon for commissions to
agents that were simply staggering. and Tor
i rebates 10 new Insurers which be'at' " p,a. ,
+ uai means ~ competition. The sch'me SMep
+ m. r.ld Tx. "A prairie hre. The business 81
these companies took on n startling growth anu
1 ney business. as a measure or IN" l"i'" ~
Of tho new scheme. was insisted upon a. -
r,,i criterion II success The reliability Of the
! .Estimaies" could not be tested uh'n VA "Iy ~
/ Of setil-m"nt came nj the end OF wv | =,
years Of. ,.
There were but two ways OF meeting the schehe
on which. and the commission ana reoa'es -
which business was being captured IN suyn s"u ~
NOUS Quantities one vas 10 IAN III VIII WIZ . W
/ e.b.r,o ard offer the same speculation WIN VIC
s,,,. 49,, - estimates and pay the same pflC''s
f,- us.pess and Justify one selt on 'Hr -.
B that II was selling people what 'hri m'noaa
d IN. other way was 10 point OUT 20 'i'"S' 49,
Il t,,es needed protection and all the protection
thry could get that this was pure ganpir ~ ~.
thai url,ccilDn: that II the scheme suCcc ~
tho lucky few. II must be- al the ro-t "a s"0 -.
,..,,l.n I'd, the reserves and DIVIDENDS OF we
I many ns WAS a crime against thVse Wv w.
..i,.,.I -, IA. rroter ton they needed; that inc
,.oti. wanted II" only because they "e'e ma n !,
. :, f.,ieye that IL was something else IMAM VIZ
4, was. that the expense az whl'h W. No.. ~,
vas being worked prcclnied the p'sS'uh,a n, tn
I'n'."'.h h.,ry Simply the distribution OF
1sscs. and premiums being simply cot =, ,r"lt
To- losses. II was in.possiD'e - .vant hv robbing
able "iuvestment' To any one eN0'P' ~
some one else for his bcreh'.
Tho Councctirut Mutual chose the latter 'ou' &C.
7, i,s steadily and continually exposed the true
character II the schemes exploited III .le ' ,
~ M, insurance 1t has pleaded for pnte mr. ~,
,.,r9nee 10 those who's" families couli nor a. ~
~ t'r hin protection gambled With: II mas
,r.J - teach the truth; To- show people M''",
their true want is. 10 make the COST VI 600
80 nan ,s ,,nsslbc: Il has been content - 7,e
many OF It's agents hired away % De Nri's
a.,tinp row ones by demorul2ns
and To- DO new business by the tens Oh ha
where its speculative rivals.ah Insy ~, rho
coma u numerous company-have dohe II pH '
hrn1r~ds ~ millions and to be crltcissu 40
wanting I'm smartness ana entc'pIISv "' na ~,
ing how 10 cater to the puDh'' II NJ ,n.,aad
,,,r,, bovv Ia make stil better serVlcc iIis'eau
Of seeking novelties that attract uhtll ''; has
understood and then must De 'ei"Veu' -
bldcd its time. ,, .o,,,
r,o Mornings have been realized. Where twenty
voarq oeo these companies were getuhe ou"'''''
-, a., estimate" OF profits at rate Oh. ray
sio oon on a man then aged forty t"eF a.
.,,1tD ,bat business now at 1870. Ihousa'u9
-, ,niiiiors 81 life insurance have peeh iolt''
but the bulk of the grlst srouiu Hu. no. ah, tas
a. nay HIGHER commissions ana pBsei TO"
;, L.on ne volume Of new busn' ~ t"' 49,
80 =. r,,, a uitiful 40 per cent or less oi .h'
s''lnndid estimates that catered to the puDnc
And now the tide has turned Even theN ire
uendous expenditures for business cannot NJ ',,
them ahead Of the game. at least III mn" 'n is9-
these one OF these compdntS VIZ ~ huSi
tho enormous sum Of $l39J o3o"3 Oh nv" ,n,,
-. ana vat has ehrunken It's amount III III
which means that over $l3o.OooVoo mas Is 100 <,
It's books last year AnothcI o W. uart ofY II.
of new business, and slil. ''''i' s,Iors IN,
boota MANY scores OF millions OF uolI"ie, ',
1870. and accumulated surplus on man,
| hundreds OF millions OF insurance, no. '.sr,a Ia,
,n, Tho 'nool' OF the several Tontine coiIipa,'.
in all these years; but no accou 49, ar ever vii
lion OF the proceeds ever has been Vi e'e' wa
ba made There are no accounthes'
Tho Connecticut Mutual renews us PIE" W
nurs life insurance; that men whose ia'"'''''
need Il buy the only thing lie insulan.e, sJ,,,
nanv car really give. the full apsoiutc. an hi,
nle protection needed: that they Ot'Sc ~ - g.
,,,i,h q or IN try 10 make a speculate" ""t W. -
WIN II -, Uoh tho company offers Its best ahe
most sincere endeavor, illustrated ny ~ my ,,h
olIeIel record Of fifty years. h'spe0""'' 'N
mitted o,, cpEENE President
L..b