Vi   TABLE OF CONTENTS.

SURPLUS, WHENCE DERIVED    Page 92

Sources of gain, three. One. additional. Conservative assumptions assure margins from interest and mortality. "Loading" originally intended to provide dividend. Usually little margin nowadays. Salvage on mortality expected. "Suspended mortality." Aecretions from forfeitures. Extravagant estimates. Causes of disappointment. Relaxation of harsh conditions. Little or no profit. ' No pretense of great gains now. Certain fraudulent exceptions. Surplus forfeited at death.

SURPLUS. HOW AND WHEN APPOR-

TIONED    Page 97

Variety of modes. Contribution plan. Sheppard Homans and David Parks Fackler, authors. Mr. Homans' explanation. First idea of cash dividends. Equitable's Deed of Settlement. Plan not carried out. "Reversionary bonuses." "Bonus" English name for dividend. Idea and name of cash dividend revived by American companies. Popularity of eontribution plan. Generally- adopted here. Distributing lapse and other forfeiture gains. Mr. Homans' formula. Elizur Wright's savings bank system. Surplus individual aecount. General average pereentages usually employed. Five-year and seven-year distributions. Annual dividends. Tontine plans. No surplus from loading for several years. Not always apparent. Advantages claimed for deferred dividend periods. Plans offering either accumulation or annual withdrawal.

SURPLUS. HOW APPLIED    Page 105

Cash. Paid-up additions. Interest-bearing script. Bonuses on bonuses. Cash dividends the rule in United States. Dividend additions with privilege of cash. Cash, with privilege of additions. Proof of good health. Usually but once required. Temporary additions. Options. Accelerated maturity. To purehase pure endowments.