The Northern Daily Times.
Liverpool, Merseyside, England, 1857-04-11 00:00:00

MUTUAL LIFE ASSURANCF.

qcOTTISII PROVIDENT INSTITUTION.
•
The NINETEENTH ANNUAL GENERAL MEETING of the CONTRIBUTORS to this SOCIETY was held in the Waterloo-
rooms, Edinburgh, on 18th February: On the motion of Professor Almelo
• ROBERT HUNTER, Esq., Sherif de DOmbarion and Bute. was called to the Chair.
The CHAIRMAN said—Gentlemen, allow me to offer you my cordial thanks for the honour which you have done me in placing me
here, ancient the same time, to express my einem regret. in which you will all concur, that ind'suenstble inhincss has occasioned the
absence of the regular Ch irman of this meeting—Mr. John Hunter, the Auditor of the Court of Session. But it is consolatory. to me
that, tear by year, the dudes Of the Chairman of the General Meeting become more easy and agreeable. as they consist chiefly in his
being authorised to assure you of the actual prosperity of the Institution, and of the brightness of its prospects, and of pointing to the
Annual Report of the Directors as etebodying the evidence of that Assurance.
'the principles on which this Institution rests have been so thoroughly canvassed, they are so well known to all of reopen the
appreciation or them by the community has been so clearly evinced by arm and continued support, that while to detail them would
be tedious, even a glance at them would be superfious. But it may be well that I shined state a.s briefly as practicable, the more pro.
minent portion of the administrative rules by which. the Directors have been governed, and the consequent course of action, as it is
to adherence to them, as a secondary course, that the prosperity of the Institution is. in a greet measure, to be attributed.
The Chairman having stated these rules, and the principles on which they rested. their practical aeplicetion, their results, and the
probable future course of administration, proceeded—
' While these are some of the means by which we have promoted our welfare, and by which we hone to promote it hereafter. there
is a rollsteral topic which may, at first sight, aPPearsoms'What out of place here, but which, overy few havtie had an y n consideraon, will be fouotant ind to
ha 1 have a
practical bearing on our corporate interests. A tear; of the justice and sound policy of which sutal
by subjecting u; to heavy direct taxation; cheerfully borne, hes t eight the men of this day, anti revived n itht,sh e_e mvalinda s ofn f t
of cornhhose.o er
e .n.haln., e
surplus ot
times, those lessons of prUdenbe, economy, end tetrenehment, which a war-tax never fails to iinofese.
paratively short ais their duration niay have heed, will w.th ming Conti ine to be effective, and g-tattle 1110:1;9 eevetn
tecerne above expenditure Winch the cessation of the riropertYot -x will ereate Mayvve not hope, thed, teats portion tsose savings
Will be appliedto the purpoge of Life Insurance? This emPliestion Is the discharge of e leaded y. as, With a large body at Pie "rue
m unity, it affords, if not the only, certainly the most safe sad efficient means of making that provision for the future which is ineme's
bent on all. . When made, the provision will he secure and urofitable. This Institution ififdlves both of these beneficial qualities in
a mode and to an extent which will satisfy every resionahle man. Cur policies tire indisputable in the only senee in vent eh the word
ten have around practical meaning; forehr y can be annulled only by full legal proof of actual fraivi, or, that is equieatent, of wilful
farsehood. It Is in,Vain le ire that under the colourme such deects, a policy m' ht be annulted when there exismd innocent err or
only. As the distinction must ever be palliabld to the conscience and intellect of the perpetrator, it must be equally so to the minds
of the director and the judge; and no Insurance Institution teou:d attempt to eff, ct a forfeiture, when they nee;,. know that the
• attempt would fail, and that it would result in loss and disgrace. While In no instance have the " disputed" a podey, it is both in-
structive and amusing to knniv. that several of the Insurance Offices which have adopted the character of being' ind.sputaele" have
actually been involved in courts of law, in acrimonious and futile " disputes.'
Prevision, by sureaccemu'ations, is, doubtless, the prinery object of Life Assurance. but It affords to the Policy-holder advan-
tagss, secondary indeed, but legitimate, in the fund of credit which it creates, and in the position which it gives him as a member of
oee of the principal aggregate public bodies which this country contains. The important consequences which must accrue from the
increasing number and accUmulating result of Aesteance Associations, is a subject which, I think, has not yet attracted the atten-
tion of the statesman and political economist, in the manner and to the effect which Its magnitude demands. Assurance Aesociations
are the recipients and administrators of the savings of a proportion of the middle eittsses. Savings by insurance cannot, like other
savings, be resumed or relinquished at pleasure; once begun, it must proceed, and every nerve will be strained, and every sacrifice
made, to avoid forfeiture. The accumulation is but little retarded by the s merging claims, for the proportion which these be rto the
aggregate amount is small,- and, within a shout time, touch of their amount will revert to the general fund froth which it sprung. The
necessary investments must seriously influence securities, the rate of interest, and the money market generally. The effects are
fast becoming obvious. The greater permanence of their loans gives Assurance Societies a preference over private capitalists; and
while they can never supersede the trade of the banker, or even materially encroach on it, they can, by skilful arrangements, safely
part'cipate in the profits of some of its departments. , These cnanside aeons establish the wei,ht of those institutions, and conclu-
sively show how important it is to the community that, along with their growth, every care should be taken that they be sound and
healthy in their constitution and administration.
Mr. CHARLES LAWSON, jun., Seed Merchant, said—The Directors meet you in this place once a year, to give you a brief,
but at the same time distill& and accurate, report of the state of the Institution. After the excellent remarks so eloquently
delivered by the learned Sheeff in the chair, as to the general working of the Office, little remains for me to do ; but as convener of
the committee for the annual meeting,' I have the pleasure to lay before you the Report of the business done daring the past season,
and which will be read ey the Ma. ager. Ido not wish to anti' ipate anyof its details. but when I tell you that this year we have to
report the larg st amonnt of Policies accepted in one year since the formation of :the society, you will consider that we have not done
amiss, and that the business of the office continues to increase and prosper. At a time when so much is said about the solidity of
minty Insurance Companies, it is gratifying to be able to state that I believe that all the Scotch offices are unquestionably Bolin t, and
I knave that they appreciate the merits of each other, by the interchange through reinsurance, of their surplus risks. Of th a species
of business lam glad to say we have a considerable share. I suppose there are five to six in Mons of heads of families in the United
Eingdom who ought to insure. so that there is plenty of room for us all to progress. While I thus however bear a willing testimony
to the charaCter of the other offices in this country, I would not like to lose sight of the particular merits of our own Society—the
only one in which the generally, acknowledged erivatitages of the mutual system can be obtained without the counteracting
disadvantage of having to pay an unnecessarily higher rate of premium.
We have heard it urged at the public .meetings of other Offices, especially of the higher rated Mutual Societies, that a prefer-
ence ought to be given to high rates. I presume this can only be on the score of their supposed greater security. I need'not take
up your time with a defence of our Office on this point ; but were there any doubt, it is sufficiently dispelled by the fact that these
high rated Offices themselves act upon a scale of Premiums equally low with ours ; the only difference being that they give those
who assure by it DO sh,re in the profits. On the contrary, in promising the nroflts from this branch of business to their other
assurers, they, as I think, emphatically mark their sense tel its safety, by interposing the guarantee of the General Fund
The learned Chairtnam ilus alluded to the reelection of income t x, arid the sum which will thus become vailable for private
expenditure, or for purposes of family proelelon. It may not be cut of place to no ean instance or two showing how advantageously
turplus may be employed in Life Assurance. Take, far example, the case of a young man of twenty-five, having an income of
i5O. The saving of tax in his rase, at gd leer pound, is £5 13s 6d-ea sum equal to the premium on '3OO. which would thus be
secured to his family in the event of his death. A mats of thirty, again, with au income of m e'ie per annum, will savel£ls, which
would secure a policy with us for abut £7eo ; while-a man of forty, on an income of £l,OOO, will save as much as would enable him
to effect a similar provision cf £l, 160 dearly. ' -
The Scottish Provident Institution yearly receives, an accession of Members from all el. sees cf the commu sty, and of late years
we have a good -number of AgrcUlturists, whom we are glad to welcome among us. Their occupation is mulch in favour of health
and longevity, and they are just the people who stiould join us, as most likely to reap the greatest benefit from our peculiar system.
If you approve of the list of new Directors, which will shorn% be submitted to you, we shall receive the serii:es at our Boatel of a
most eminent member 01 this class, generally known, not only in connection with agriculture, but with the sound.and practical
applitatien of the 'rules of political economy, and who has long been a Member of this Society. I have no doubt that his example
will be the meats of inducing many of his brethren to associate themselves with us.
REPORT BY THE DIRECTORS.
The Report, which the Directors have now the please, .of submitting, presents a very satisfacterg view of the progress of the
Institution, the new business during the year being considerable in advance of that of eit hi r of the two last years.
The new Proposals accepted have beep 689 in number, assuring Capital Sums to the amount of £125 9:15. The yearly Premiums
online new business 'amount to £9,274 7s 4d; and a further sum of £5,735 5s Li has bees received for Assurances by Single Pay-
ment, and for Annuities mite.racteci for in the year. The gross amount of Premiums received was £t8,079 is. 4d.; and, including
interest on the Accurnalated Fund, the Income of the.year was £106.222 35. 7d.
The claims on account of Policies which hare emerged during the year, by the death of 59 Members, amounted to £36,360 7s,
being considerably under the amount in the, preceding year.
At the close of the year there had been issued, in all, 8 494 Policies, assuring £3,745 639, besides annuities arid miscellaneous
transactions. The subsisting Assurances were £2411,522 3s, and the nett yearly premrums corresponding to these £79,224 Os ad.
The realised Feed, arising from accumulated Premiums, was, at 31st December last, £445,347 4s 7d, and the Revenue from Premiums
and Interest, £93,763 les 2d.
The Report and relative Statements having been read—
On the motion of ROBERT WALKER, Etie (Bell and Bradfute), Publisher, seconded by ROBERT NASMYTH, Esq., Dentist, the
Report was unanimously approved of.
Rev. THOMAS M'LAUCHLAN said—l rise to move, that the thanks of the meeting be given td the Directors for the manner in
which they have connected the businees of this Institution hir the past year. And, in making a few remarks on the general claims of
the Institutron to receive support, Ido not knew that I posse's any qualification for doing so, beyond that of being a member of it. I
insured my life several years ago ; but, really, it was more them instinct than as the result of any process of reasoning. I felt as a man
feels when he gr es to provide his daily laread,that I could not do without it. At the same time, there are abundant good and sub-
stantial reasons that can be adduced in favour of such a step ; and when one does begin to look about for them, he does not need to
go far to find them, while lam not aware of one gold argument that can be adduced on the- other side. There are three arguments
in favour of Insuran, e that stand out very prominently.—First, A man owes it to his Ma' Cr, is. placed by Him in circumstances
in which providing for the future is ever a pressing duty. In spring time he has to provide for the con ing winter; In winter, again,
for the opening spring. Tile great business of life is, to provide for death, and what lies beyond it. And this is true in the
most subordinate matters. Nor can we quote against this principle the emphatic passage of Scripture which tells a', that
sufficient for.the day is the evil thereof." It is comforting to know that there is a wise, superintending Providence, anti that, in
his u most extremity, man has that Providence to lean on; but Providence was never intended to be a pillow for human indolence
and human negligence, or a substitute for human forethought or human effort. hhen, Secondly, we owe this to others.
We owe it to there who are dependent on us for supoort. It is a poor token of our affection and regard for 'hem to resolve that,
when we ourselves die, they, shall be left to
.the haphazard action of. ordinary benevolence This, surely, is not sufficient to- satisfy
trijeillaitcecedtn nor isa lt. P 2 tti7tytMea SOTIINIG itrfftaftatildnrk.. JEN Nl,P§.§,,n(seeieblie. lemon lets. I orogisennea„..tternens,which
to be punished in the persons 'of those of whom we should most love, and most liberally provide for. Thirdly, A man owes this duty
to himself. It's the readiest way of getting rid of sources cf mental anxiety, to which few men are s; r eng” rs. Ido not know that
a man, who has anainity or other relatives dependent on him, ever feels. more comfortable than going home after insuring his life.
He feels that, so tor, they, axe secure. To tell the truth. I can look upon my own children, after paying my insurance, with an amount
of complacency I could not feel before. Indeed, I het eve that Life Insurance heroines a help to longevity. and Ido not. know but
Insurance Companies sir- uld take this into their calculations in estimating the value of a life. It helps to drive away some of those
cares anti anxieties which sap the very foundations on which physical lite is based.
What]: have said applies stionely to those like myself, who have only a stated annual income, dying With themselves. To take
nay own profesaion, it is the only means most of them have of providing for their families. Thera is one.thing whith most ministers
want. They may have learning, and they may have piety—they may have prudence, and they may have eltquence—but they rarely
have wealth ; and, whether it be right or wrong, they thus seldom have the means of laying up for their families. As to these, and
such as these, no greater earthly blessing eoitld visit them and their households than such es came within their reach, through the
development of the system of Lift Insurance.
One word, ere closing, as to this Institution. It always struck me as having two strone recommendations. First, its economy.
Economy is the cry of the day, and no more powerful lever can be devised to move the public mind than bringing before it a desirable
object. associated with economy in the conditioes on which it is offered. Well, here we have it It appears to me that in this
Institution the Insurer has the beet pennyworth for his money. I have looked around, and I have not been able to see another whose
terms are, in this respect, so favourable to the insurer. And there is a second recommendation: in that you have, after meeting the
fair and jest claims of all insurers, the just principle in operation of giving the largest share in the distribut'on of. your profits to
those by whom the institution has profited most. I don't like the term bad and good lives. What men call tad lives often turn out
the best; but I speak of those who, by their payments, have benefitted the society most, and I say that these are justly entitled to a
measure of benefit from its profits, somewhat proportional to the benefit they have conferred. But I have done ; and without adding
a word as to the success of the measures adopted by the Ditectors for the last year, for which the report itself speaks, I move in terms
of the motion I have already announced. -
The motion was seconded by Mr. JAMES Hetes, Corn Merchant, 17 aymarket, and unanimously agreed to.
Thanks were also voted to the Auditors and Trustees, and to the Office-bearers; and the Management having been constituted for
the ensuing year, (the three last-named Directors being new appointments), the meeting separated after a vote of thanks to their
Chairman.
SCOTTISH PROVIDENT INSTITUTION.
TRUSTEES.

Sir WIWI= Johnston, of Kirkhill •
Charles Cowan. Esq.. M.P,
John Masterman, Jun., E q., London

William Campbell, Esq.. Tillichewan
James Pedoe, Esq, Writer to the Signet

DIRECTORS.

Alex. Keith Johnston Esq , Geographer to the Queen
Graham Pinny, Esq., Writer to the Signet •
NeitColquhoun, Esq., Advoca' e
Robert hunter, Esq.; Sheriff of Dumbarton and Rule
Charles J. Kerr, Esq., Banker
James Usher, Fag Brewer
John S. More, Professor of Scots Law
John F. Macfarlan, Esq., Chemist

James Crawford, Jun., Ef q., Writer to the Signet
John Auld, EN., Writer to the Signet
James Cathcart.. Erg., Merchant, Leith
Andrew R. Clarke, Esq.. Advocate
Charles W. Anderson, Esq., Merchant, Leith
George Hope, Egq., Fentonbarne. East Lothian
;?, Edmund Baxter, Esq., Writer to the Signet