Leader (1850-1860), 29th October 1859, Edition 2 of 2, Page 20

mT-r-Y-i T » TmTiT » TiT i mTAikT A T excess of the assets over the liabilities , supposing the the AssuranceOffices that a distinguished personage waR « n 1 H ± J INTERNATIONAL Society ' s investments tobear interest at four percent , per fully assured in the Life Offices ofthis kingdom tffat itwas LIFE ASSURANCE SOCIETY . ' •»»*• which is considerably less than they are now '! SSSS ^ S ^^^ I ^ SZMlS £ i lSS S ^ StSZ ijujj AODUiuvnuiJ OUWU 1 "' actually realising . If interest be taken at five per cent ., was had to Lloyd ' s to have the life underwritten ^ hew 142 , STjttANJ ) , LONI > 0 N , W . C . which is nearer the truth , the-balance in the Society ' s The Policies existinrupon this life at one time it h «« been CAPITAL-HAiF-A . MILLIOxV . favour will be £ 95 . 136 5 s . 5 d ., and in obtaining these balances ^ SS ^&^^&^ ff ^ i ^ SiS ? ^ DIRECTORS ** TO'U De seen I have provided for the shareholders * capital , cumstances would , in the result of such inquiry appear a « EdmondSheppardSymes , Esq .. < 7 A «/ rm « n . as well as every other liability * . . three or ^ four hundred deaths , while in fact only one had Wm . Kenworthy Browne , Esq . | John Moss , Esq . The quinquennial valuation of the Society ' s business up ** ' ^ John Elliotson , M . D ., F . R . S . I John Symes , Esq . to the end of November next , on which I shall soon be nr J ° l , h ™ , ™"' , *^ « if ift , ^ l 8 B ^ ing would Henry John Hodgson , Esq . f Joseph Thompson , Esq ^^^^ ^ ^ rticuIar 8 . which wiU be made kmwn fSS ^^ 'SSSSSf upon t ^ Zt ^ lf ^^ S Secretaries—Alexander Kichardson , Esq . ; Augustus _ n the report to be presented at the next annual general without any recorded death . BlondeL , Esq . , meeting- of shareholders ,-will , I have every reason to » it ia ' . therefore . clear that unless the principle of repeated Auditors—Professor Charles Wheatstone , F . K . S . ; Pro- eXpect , show that the position of the Society is steadily Policies on tlio same life was uniform as to numbers and fessor J . Radford Young , nrnorpssinn- ' ' , very generally characteristic of all the ass urances effected Me ^ ic ^ l ^ ereeGeneral-JoUn ^ Uotson , M . D . Cantab , » - * * ! am , gentlemen , / ! : S S & S ^ SS l S i F . R . S ., 37 , Conduit-street . Your most obedient servant , the truth . yproximanonto Actuary—W . S . 1 $ . "Woolhouse , Esq . yF . R . A . S ., F . S . S ., & c . W . S . B . Woolhouse , Consulting Actuary . "So far , therefore , we are yet without airy satisfactory Assistant Actuary—Barker TToolhouse , Esq . To the Court of Directors of the International Assurance -J ^ fcXx can ^ oc relied on adjudicating tlnfrate of ^ nortaUty Bankers—Messrs . Glyn , Mills , and Co . Society , i . 42 , Strand . among the assured classes in recent years . " Solicitors—Messxs . Gregory , Gregory * Skirrow , and Row- London , 25 th August , 1 S 39 . Whatever therefore may be the views of the Commissioneliffe ittt » s » . v « B w / . o j > ers in respect to the practical applicability of the Table they ' o „ , __ ,.- -pm , ^ -i > oii -nr-ii have adopted , there can be no doubt that it is not based on 2 , Waterloo Place , Tall Mall , observations on human life ; the principle on which it is The international Society has been established since 1837 To the Chairman ami Court of Directors of the International c ^ s [^ ^ ' £ ? J ^« le ^' ' eVen ftore ^ saitroufiesu ' ' 1 ' for effecting every description of Life Assurance . Immediate Life Assurance Society . did * br . Pricc ' sliypothcsis in his ' construction of the North " and Deferred Annuities , Endowments , & c . afc rates afford- Gentlemen , ampton Table . ing the most equitable adjustment of every contingency to la accordance with your instructions , I have carefully I have given prominence to this part of the question , not the corresponding _ isk . - "mined the document , purport ^^ Prospectuses and every information may be obtainedfrom to the Fourth Annual Report by the Insurance Oommis- the Commissioners' report , in which tliey refuse to deal the Chairman at tlie Chief Office , 142 , Strand . sionera of the Commonwealth of Massachusetts , " dated with real facts , and substitute for them mere hypothetical ' _ _ June 15 th , 1859 , respecting your Society , and now beg to and fictitious inventions . " state the document in question is written in so unusual a The next portion of the report to wWch I beg to direct ¦ D -cvD /~ kT > rric < / -ye T \ tT 7 OCT ? C \ xrr \ r \ T TIOTTG'R ow « . "' v . u «< -uiuw . , . * „ ¦ ,- a ,- attention is tlie tabulated figures at the top of page 4 . The -Kf-JPOK 1 fc > Uh JMLtiOto ± t » . VYUUI-JAUIJ ©^ tone aud temper , and m language so far removed from the figures in the last column W not represent any liability AND NEISON sober , deliberative style of our own official reports , that it is which has a real existence ; in fact , they do not represent ' iiorri * n hoiiovo irronliv authentic Xt has so much nf the tne value of the liability under the policies , and as I shall GENTUEMEX , —In pursuance of your request uar t d . be } ie ™ lfc re ^ ly autncnt » c- " nas so mucl 1 of * n ° presently prove , they do not represent the actual condition ... . ¦ '¦' ___ , _ j , ,. . -,-- - ' ... partisau feeling and warmth of expression , and is so full of your institution . These figures are purely a fabrication , a valuation of the assets and liabilities in respect of the of po jnted personal allusion , that I am sure if is impossible and therefore-undermine all the subsequent observations policies of the Society , up to the same period * as the report + fi 7 < , nvthiiio- Rimiiar to it amnn " our own "overnmontii an < l remarks of the Commissioners , which rest wholly on oTthe Insurance Commissioners of Massachusetts , has been *? "i governmental the fancif > ll fl 8 ,,., _„ f tne , t column of ^ th 08 ' " * . " .- ¦ Ol r ¦ ¦ „ _ ' records . the top of page 4 . This would have been apparent to any carefully calculated m minute detail , and I hasten to com- \ ycrG it not for this eircumstance , the very strong opinion ? ordinary calculator , had the Commissioners given the data munlcate the results of this investigation . ' expressed by the Commissioners ' might well occasion tin- on which their calculations rest , and also the calculations The calculations of tne Commissioners , in the report easiness , and excite alarm as to the state of your nfljiirs , but themselves . alliirioil in liPino- 'haR ^ ri on a hvnothesia of fiptitionn nrpm i when the defective nature of the data and statements What can be the reason of the Commissioners giving , in alluded ^ to . being-basea oni a liypotliesia of hctitious premi- addl ^ ed by them ig caimiy and patiently considered , and the the Table at the top of page 4 , the amount assure * and not urns having no relation whatever to the Society ' s tables , or unreal , fictitious , inequitable and unjust mode of valuation also the amount of premiums payable in connection with the premiums actually receivable , are necessarily fallacious ; followed by them analysed and exposed , the alarm which these assurances ? I shall not attempt an explanation , but , , _ . _ v . r « mr * lpd nnrelv as a fabrication It would their report is so well calculated to _ produce on the minds of simply state that had this information been furnished , and and maybe regarded purely as a tabrication . It would pel . 8 On 8 not technically acquainted with such subjects can- also the ages of the assured , a school-boy would at once therefore be a waste of time to enter on any discussion of not tail to disappear , and your Institution still continue to have detected the fallacious results which they have given them beyond the announcement of this undoubted fact . enjoy that share of public confidence to which the sequel in the column referred to . Oii the first perusal of the r & - Tho results T « m tiow ahotit to lav beforp the Court have wil 1 snow il ; to be i * lrIy entitled . port , I was forcibly struck by the systematic care with The results I am . now about ; to lay before the Conrt have ^ nfideut a nd overbearing tone in which Hie report which , in wvvy case , some element or other of their been arrived at from a calculation of the actual data of the of tae Commissioners is written , renders an examination of calculations was withheld , rendering it impossible for auy Society ' s existing : business , and may therefore be relied the basis on which their statements are made necessary one having onlsr the data in the report itself at command to npon . Ab regards the accuracy of the work , I am at all before attempting to show what is the true position of your check the results . fcimp « mvnaivd to aatisfv anv comnetent nprqon Company . It is important to understand , in the first place , From the means and data placed by you at my disposal times prepared to satisiy any competent person . whether the case they have made out is really an unim- to make the valuation to which we shall hereafter advert . On the 30 th November , 1858 , the policies in force on the peachable one . . I can however supply the deficient elements , or very nearly books of the Society consisted of the following : — Inpasre 3 itis stated that their computations are made so , and I shall duplicate the calculation of the Commis-. ¦ ;_ on the " Combined Experience , or Actuaries' Kate of Mor- sioners , and give all the details of the process , so that any : ' tality . " To experienced persons , and to the public in competent person may judge for himself , lhiswillbe < gS general , this mode of proceeding would appear to be sane- done for those risks included in the erst line of the Table SS Amount Annual tioned by great authority ; but what are the real facts ? at fhe top of page 4 oi the Commissioners ^ report , and !§••§ Assured . Premiums . There is really no such Table of Mortality as that desoribed . which represent 96 per cent , of all the assurances . Inithe Hg ABBureu . jrrciuiuuio . _ g ^ & meto \ ypoth ^ t lefa and fictitious Table , and is not following Table , in order to prove the fallacious nature of , based , as all reliable Tables are , upon observations on the results given by the Commissioners , the same rnteef £ s . d . & B . d . lives , but baa been deduced , from records as to JPolicies mortality is taken as that professed to be employed by Without profits 945 387 , 905 0 0 11 , 407 17 4 only in which the number of lives at risk was entirely them , and tho same rate ^ interest ^ viz ., four per cont . It LeBB ^ re-asBurancee ........ 33 , 200 0 0 1 , 270 4 1 unknown to any one engaged in its construction . In fact , will bo seen that the number of policies is 4 , J (> 3 , the amount . ueuBre aBBuriinceB . qq , aw m » J _ 2 l ! L . __ : your own Actuary , Mr , Woolhouse , was one of the most assured £ 2 , 003 , 130 ; and the amount of annual premiums 354 , 705 0 0 10 , 131 13 3 active members of the committee concerned in producing payable in regard to them £ 07 , 776-311 . With profits .. -.... 3962 1 , 780 , 319 0 0 58 , 710 8 2 the Table in question . It thus appears that the present value of the sums as-Bonus additions w 30 , 451 0 0 That it may bo clearly understood that this is not a now 8 urod is . .. XOO 4 , tB 8 02 ABSurances .. ' iio 7 2 , 174 , 475 ol ^ SSTTi fflSSSSH ^^^^^ A ^^»^ l & $ fa ^ iT V ^*™ ' 00 M 01 * Deferred and Survivorship . the Great Exhibition , when I had the honour to deliver an payable In respect to the same is _ ' Annuities 148 2 , 815 4 7 658 7 3 address to the meeting of distinguished Actuaries from all runwnh ™ r > r linhuntv imdrr the nolicies . ii 9 U 0 ' 7 U Bndovraierits 7 811 1 0 22 0 4 parts of the world , in the Institute here , I dwelt proml- Difference , or llablllity uudcr the pouoics .. Immediate Annuities 170 6 , 202 12 2 nontly on thla subject ; but the following extract from pp . Tn the calculations of which the preceding arc the results , _ - _ r ix . aiidx . of the 3 rd Edition of" Cont . VU Stat . " pub . Ii 557 , lt J w \_ j o ^ i Miirpff * to ^ Tn ) % \ A ^ e sot-1 Unit it includes Total 4938 69 , 528 0 0 will ehow the nature of the objections urged by n / o againsi f ^^ ftJJ _^ ^ ^ J < ? J ? 0 tlmn mtW i ^ othoConunlsHipncrB ' — . -t ^— ¦ . ~— the adoption of euoh a Table :- estimate , and which difference nrleos cliiolly from their The age for eoob poljoy being- brought up to the date of "Thoro is likewise the Table usually denominated the flgwoa having roforenoc to the 1 st of Novcinlw ¦ last , ana the calculation * and the whole being afterwards subjected Experience Table , deduced from the recorded observations the precodiiif ,--to the 30 th of the same nionti IDutr o" ]" . '• A Jl ^ r i r . JLL dfera ^ ffi ^ a ^ Affia-JJSK ^ rw js ^ r ^ ja ^ sss t ^ s £ S'JSSS balance-sheet of the Society la found to bo as follows : — tho Committee of Actuaries appointed in the your 1830 . I n mlsBioners' report . a . *™ . ^^ S ^^ K- o ^ tRgSlSSBliiJ ^ SfiiSSg ¦ "g $ $ St % SS &) < "" " - T . HT .. t »«' "SSLSSf prcmta ™ ° - ' " " * mm 10 o ^^ S ^ fflaKSK ^ tfi ^^ S-Si-VriS ^ P ^^ s ^^ imo ^^ ^ *& E & yBs £ r ~' 4 iKSiXSli Z « n & 'SGia ^^ sMsJ ! fassBssta ™— ; *""_ '§ E £ 2 & y ~^!&!! ** E m » o &« 3 _^ B « 3 SiS ^ M &' M ? Sffi J ^^^^^ STSSSSTS & ' iSS InveBtmontB 10 " 807 13 10 £ oiront ScihoduloB should bo Bubmlttod ia an ouonymoua hobs of thlH roBult there cannot bo two opinions , as all tlio Inv-etraonts 1 O ^ , . W 1 J 10 f all wore given with blank headings , and ho com- JJot . Uls of tlooalculiXna "" o glvo « in Table A , ami mny £ 1100 047 13 8 P . lotoly . mixed up together , that It was impoeslblo aftor- bo vorHlud by any ¦ ouo . Had tlio Corninl » fllonor 8 fflvon MABitixiBe . *' ° ' . SttR Jo dotonnlao from what Office any particular ache- go , rPfflA Kanio co . nplotouosfl , ^ o ul . ould hav j Ajcc urgent vilIuo of . Bsi . rancoa du ° ° * onablod to sco In what maunor tholr OtfuroH have boon turn Sfd ^ dition- _ 3 O 17 830 12 2 . ! ' Thl . arranffomontprovon ^ d tho investigation Lolngany porod with . Pr ^ e nt value of dofeVredaAd oth , or tlliftn ono Jpnanod to Policies Issued " by those OhIoob , Ah tho OommiBBlonorfl rIvo only their oatlmatod valuo of SHSHSS * sg s s sta ? JMf— ° ' '" ° —" —• • — - - & sis & a ^&^? i !^ & 2 £ PwSent Vftluo of immodiato ,. " fo those , thoroforo , of ovon limited oxporlonoo , It muat poslnff that they have by an arbitrary process ol «{_ JEf , annuities ..... ; ..,....,... " .. 45 . 205 17 5 boobvionB that tho roaultsaro thereby doprlvod of all valuo mentod tho ltiibilltios or doproclatod lUo uBBotB , or ""»«•« pSd-UD capital 70 008 0 0 ae Indicating : thq rate of mortality among- tho Offloos con- bo by partly tlio ono moans ami partly t » o pthop . *»»'" JBotoVouShweB .............. 320 11 0 trlbuting tho facts . " , ncaln reonrho thin part of thoquoatlun , whlloln theimo » n _ - — 1 , 001 , 858 4 11 " Nothing- la more notorious than tho frequency with tlmo I rofor totho balauoo-flhoot flubmittod in paffo o . , , which tho aamo Ufo is assured In duplicate and tripUoato , It should Uo uudorstood tliat | r . is no part of tno auwr » . Dalitnce In favour of tho boolety ...... rfi 44 , 160 8 0 not only in tho same CMHoo , but In several oWIqcb , and It tho OommlBflloncra to adjudloato as to the rolatlvo ana i »«« miti-i . M . -.. ™ . -.. ki » i n-,. - » * , i « Mn--ann »< . ?! . „ ofton llftPPe ! lB "lftt on tho Bamo Ufo thoro huH « t ono tlmo vidual lntovoete of poUqy-holdors in a oonipany . *»« ThlBlBthc ouiu which In proeont valuo roprosonta tho Or another boon Iflsuod hb many na from twenty to fifty functions aro limited to tho determination of tho f «« — *—? —~ 7- —; PoIIoUjb in tho dlftorent Oflloos conjointly . Totitko an ox- whether a company has guillolviit nHsotH to Pr 0 VJ ?^ ' ~ a , {[ QT * Xnatcad of tho 1 st of November tho valuation la horoln tremo example , in order to show tho naturo of tho principle olalmu to arlno undor lt » HUbslBtlng polluios i and tI i , j _ l ooinnutfo W 4 h £ mtt ? i *~ i „ « ?!» i I ? vftl " " ° « " „„ , " , « nd . Its oflViot In vitiating tho truth of any results dorlvorl widely from tho funotloiia and dufliw dovolylng on the torn 5 _ S ? $ » ° M » t '* emff tho torminntion of tho flnanolRl from « calculation founded on tho number of Pollolea , and pany ' a own Aotunry , who has to adjust tho rotatlve inw * not upon tho number of lives i it la well known In moat ol rests , not only an regards tho Interests of tho various oi « o » v

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1208 The Leader [No, 501, Oct. .Sg> 1859...

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