New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-05

DDS by Henry B. Hyde had outgrown entirely
the lottery idea" which Mr.. Mccall said be-
lcnged to the original ''tontine" scheme AS ne
explained it, the tontine system was:
Certain persons signed contracts with an IN
surance company in the same year to pay reg
ular premiums to that company for twenty
years or any other given time. IT they dled
before the completion of that time they got
nothing The survivors got at the expiration OF
the tontine period their payments plus the ac-
cretions from the payments of the dead Nat
uraIlv. Mr.. Mccall explained. tontine policies
yielded larger dividends than the ordinary de-
ferred dividend policies.
THE DEFERRED DIVIDENDS.
As to the deferred dividends. the inqusitors
could get no very definite statements me
actuaries decided apparently at their own dis
cretien the amount to be paid out OF the sur
plus or excess" each year for dividends Even
he bimseI. Mr.. Mccall explained. could not tell
how these figures were determined. No ordinary
poucvholder ever could hope to. the committee
mon deci6e5 Nevertheless. these deferred div
idend ,o1iciez were excellent things. Mr. Mccall
contanded because they had in their contracts
clauses providing for cash surrender value, or
paid-up insurance, or extended insurance. Fur
Their examination by the committees counsel, II
Is expected will be aimed to bring out just why
the cash surrender value or the loan value fixed
by the companies is not large the total OF
premiums paid.
Mr. Mccall was the first witness. Examined
by Mr.. McKeen. he told the history of State SUI
pervision of insurance. 1t began in Massachu-
sets. he said. and was taken UP few years
later by this State. He explained the various
mortality tables-the English and American 'ex-
perience" which had been in use by the insur-
ance departments and the companies. "Legisla-
ton by Elias Wright presented the view that
the reserve was entirely the property Of the
policyholder. Mr. Mccall did not agree with this
view. He thought a percentage should be
charged against the reserve TO protect other
policyhoIders if one chose to drop out
MIR. Mccall explained the method of fixing pre-
mfl1ns-the net premium, based on the actual
cost of insurance to the company, and the load
ing" of 221k per cent. an amount added to pro-
tect the company against possible losses After
telling of English supervision, which required
the filing by the companies OF elaborate reports
with boards of trade Mr. Mccall took up the
history of wildcat" life insurance, from 1870 to
1880 In that time. he said, the policyholders OF
seven prominent companies which failed lost
$17OOOOOO Nine other companies caused loss
of $4,000 GOO when thrown into recelvershlps
The greatest hardship in such conditions. Mr.
Mccall said was the man whose health had
deteriorated and was unable TO buy insurance
elsewhere. The courts held he said, that
policyholder was creditor to about the cash
surrender value of his policy.
Mr. McKeen then took up the subject OF re-
bates The present legislation, said Mr.. Mccall
in which he had taken i great part, had done
much toward dscouraging this pernicious prac-
tice yet the measure as II stood, was rather
ineffective as 10 punishment, Originally pun
bod ided In he iApSl lat
an amendment inserted preventing "dls-