The Sun.
London, England, 1855-07-05 00:00:00

To 31st Dec.

3,020 £541,5,14:j £17,320 15 9
The business done during the past year has been less
than in the year preceding. This, however, is easily to be
accounted for. The rise in the price of provisions, the double
income tax, the check to trade, and other results of the
sudden and unexpected calamity of war, have affected the
business of all Life Assurance Offices in a peculiar degree.
There are, however, two circumstances in our case afford-
ing cause for congratulation--the one is, that we had begun
a system of economy and curtailment in the expenses of
management by which a saving has been effected more than
equal to the decrease which has taken place in our busi-
ness • and the other, that the number of proposals hasbeen
nearly equal in number and amount to those of former
years, but many of the lives having been reported as of a
second or third-class character, the directors judged it
necessary, in order to your security, in many cases to de-
cline those proposals altogether, and in others to accept
them only on such an increase of premium, as while not
more than adequate to the extra risk, has had the effect of
preventing the parties from completing their policies. If
the directors have erred it has been on the side of caution,
both in accepting business and incurring expense. They
have been very fearful lest in a season of depression like
the present they should, merely to procure business and
make a good appearance, incur risks which might possibly
turn out to she future injury of the society.
The claims on policies during the year have amounted
to 3,4201. 18s.; these were all promptly paid in full to the
entire satisfaction of every claimant. Of this sum 2,7201.
18s. was paid in the year 1854, and 7031. in 1855.
The trust deeds directs that on the 3.tst Dec., 1854, and
thenceforth every third year, an investigation into the so-
ciety's affairs shall be instituted, in order to ascertain whe-
ther any profit has been made, and if there has, then to ap-
propriate it in the way directed by the trust deed.
The directors being anxious to obtain an impartial and
thorough investigation of the state of the society, as shown
in the elaborate report of their secretary, engaged the ser-
vices of two eminent consulting actuaries to undertake the
duty of examining the details and conclusions of that state-
ment, and their opinions are embodied in the following
reports :
" TO THE DIRECTORS OF THE LONDON MUTUAL LIFE

presence o • these eminent professional gentlemen, in
order that they might state the result of the examination
they had upon their own rninds, in addition to that in
the able report• which had just been read; and with the
permission of the meeting he would call upon Mr.
Neison in address them upon the subject.
Mr. flux (a proprietor) objected, on the point of
order, that in all such cases the adoption of the report
should be moved before any statement was made or dis-
cussion arose upon it.
The CHAIRMAN explained that he had adopted that
course in the interest of the meeting itself, inasmuch
as he wished, before moving the adoption of the report
and balance-sheet, that they should have the advantage
of nfull explanation of the basis upon which the valua-
tion-rested from impartial and competent persons.- •
This view of the subject having been sustained bylthe
whole of the meeting, with the exception of Mr. flux,
Mr. NEISON proceeded, at some length, to explain the
result of his examination upon his own mind. It had
fully sati,fied him that the soeiety,was in a most prosper-
ous condition. In fact; it was-not possible to subject
the affairs of the society to a more severe test than bad
been done by Mr. Laundy. It would have been easy
for him, with the example of many flourishing societies,
to have adopted a very different basis of calculation, by
which the balance available for: valuation would hare
been largely inere used, without subjecting himself or the
society to any imputation of exaggeration. But he
thought that Mr. Laundy had taken a better course. In
the first place, he-had assumed an interest of 31. per
cent, upon the capital, whereas he might have assumed
31 or 4 per cent. In the latter, he would have presented
their affairs as several thousand pounds better on the
credit side than be had done; and many other offices
and high commercial houses. would have been inclined
to take the other assumption as a perfectly safe one.
He thought, however, the basis assumed was pre-
ferable, because, though at present they might be
able, when their capital was comparatively small, to
obtain seper, cent. ; yet, in future: yeam wleanit would
be certain to largely increase, they would find it
difficult to obtain more than 3 or 4 per cent. ; and a
larger portion of it would be in the hands of agents,
without interest being receivable upon it, although,
for the purposes of calculation, the actuary should
include it the moment it was due. It was not only pos-
sible, but highly probable, that a larger interest would
be realised ; but he thought Mr. Laundy had acted pru-
dently in estimating the lowest sum. (Hear.) Again,
he thOght that Mr. Laundy had done right in assuming
that the rate of mortality, in
.future, would be that of
the whole community ; because, though at present they
might be assuring a select or a superior class of lives, he
believed that the tendency of assurance was to carry all
companies in that direction, when the tables of mortality
for the whole community must be the basis of calcula-
tion. There was another point of serious importance.
The society had a revenue of 12,0001. a year, or there-
abouts, at present, a sum which left them a margin of
some 15 or 20 per cent. over what was necessary to cover
all current liabilities. In future years that margin would
become of great importance as the revenue of the so-
ciety increased. He might state that the Law
Life Office had, in the seven years preceding
the last, saved upwards of 700,0001. from this source,
and in the seven years just ended between 700,0001.
and 800,0001. more had been saved, which was a gigantic
sum, over all expenses. (Hear.) He bad carefully in-
vestigated the whole affairs of the society, and he bad
no hesitation in expressing his fullest confidence in the
principles which had been assumed, and in the perfect
safety of the present dividend and valuation. The busi-
ness had been most economically conducted. But upon
that point he must say that it was a question whether a
more liberal expenditure would not give greater returns
to the society. If they spent, for instance, 2,500/. a
year in getting 2,5001. worth of new business, and an in-
crewed expenditure of 2,5001. more, or 5,0001. in all,
would bring them in new business to the amount of
6,0001., it was clear that they would gain 1,0001. a year.
The policy of the directors had been to reduce expendi-
ture, and that year it did not exceed 1,3001. ; but other
offices which pursued the opposite course had found that
it increased their revenue in a much greater rate, and he
would leave the suggestion to the consideration of the
directors and the meeting. After some further state-
ments of a similar nature, Mr. Neison concluded by ex-
pressing his own perfect confidence that the state of the
society would have fully warranted the declaration of a
much larger bonus, while ho commended the prudence of
the course adopted.
Mr. J. JONES, in a short speech, said the subject had
been treated in so exhaustive a manner by Mr. Neison,
that there was nothing left for him to add, save that he
fully endorsed every statement that had been made as to
the safety and prudence of the valuation.

The CHAIRMAN then moved the adoption of the report,
and congratulated the members upon the statements they
had just heard. At the same time he was bound to say
that the directors believed they were fully justified in
keeping down what was in their own power, namely, the
expenditure of the society, as much as they could, consist-
ently with efficiency. Last year they had been enabled to
reduce it 250/. by paying off the temporary loan, for which
they had ample means, and they did not see the propriety
of paying 5 per cent. for a loan, while their own bankers
had gradually reduced interest from 4 to 2?; per cent.
With respect to their financial position, they stood that
day with the assets mentioned in the balance-sheet of
28,0001., with only a claim of 221. 103. against them,
of which 211. was unclaimed original capital. (Hear.)
If they proceeded in the same ratio the valuation and
bonus in 1857 must be much larger, but it was danger-
ous to prophecy on these mattes. Since the commence-
ment they had paid off 22 damns with a sum of 4,7201.,
and, he need not say, with hop much advantage to the
widow and fatherless. The reversionary bonuses de-
claredthat day amounted to -`2.!2 per cent. upon the net
premiums, and the bonuses on reduction of premium to
them
27 per cent. Upon such a gratifying proof of progress it
was not necessary for him to erlarge. The society had
overcome its early difficulties, it was now established on
a secure and satisfactory basis, and he therefore had
great pleasure in moving the adoption of the report.
The Rev. Mr. LEWIS expressed the very great satisfac-
tion he bad in seconding the motion, not only 011 account
of the interest he felt in life assurance ge
benefit it conferred upon the community,
rty ,
ffrroor
exceedingly frank, candid, and satisfactory explanations
which had been tendered as to the condition and pro-
spects of •he society.
Mr. Hex then asked a number of questions relative to
the accounts, and to matters of detail, with the view of
showing that the expenditure was too large in proportion
to the business transacted. This gave rise to a lengthened
The CHAIRMAN said the books, in which all the items
referred to were entered, could be broaght into the
room, and read seriatim, if the meeting wished it.
This proposal was, however, met with a negative, to
which there was but one dissentient.
Mr. Huse then moved an amendment to the effect that
three members should be appointed a committee to exa-
mine all books, papers, and records, and that the adop-
tion of the report should be postponed until the 3d of
August, to receive the report of that committee.
The amendment fell to the ground for want of a
seconder, and the original resolution was then agreed to,
with one dissentient.
The Rev. W. LEASE moved, and J. COOK, jun., Esq.,
seconded—" The members present tender to the direc-
tors their hearty thanks for their judiefous management
of the society's affairs, and offer to them their congratu-
lations on the very prosperous positiselveon of
and i the
nvite the
society
at the same time they pledge thems,
absent members to join them in such pledge, that they
will use their efforts to extend the business of the office,
by inducing their friends and connexions to take out
policies of assurance."
The Rev. W. KIRKIIS moved, and T. B. GODDARD,
Eeq., of Cheltenham, seconded —"That J. S. Margetson,
'Esq., T. Chambers, Eq., M.P.; and Joseph Davis, Esq.,
being the retiring directors, under the deed of settlement,
and the board recommending those gentlemen for re-
election, that they be re-elected accordingly."
J. S. Margetson, Esq., T. Chambers, Esq., M.P., and.
Joseph Davis, Esq., the retiring directors, were then
re-elected ; as were the auditors, Messrs. E. Fox and H.
Brett.
The CHAIRMAN said that he could not allow the vote
to pass without saying that the directors were under
very deep obligations to those gentlemen.
The CHAIRMAN proposed a vote of thanks to the trus-
tees, whose services were performed gratuitously, and in
a manner that entitled them to the grateful acknowledg-
ments of the proprietors.
Carried unanimously.
Mr. Davis moved a vote if thanks to the secretary,
whose onerous duties were lerformed in a manner that
could not fail to give genera satisfaction. He was a
gentleman of great ability, serseverance, and industry ;
and lie (Mr. Davis) felt that the society wns deeply in-
debted to him for his very valuable services. (Hear.)
The motion also included th( medical officers and solici-
tors to the society.
The CHAIRMAN begged tosecond the motion ; and he
did so because no one knew lo well as himself how much
they were indebted to those ifficers. The secretary, as
aanndaetthueamrye,dsitcoaol domaseehris had
gh aLny man in the metropolis ;
111
own
the most skilful and
diligent attention to their dities,
wcitahrraieedrbY acclamation ; and the
dial
meTethiengrateortniolinnawteads vote of thanks to the
chairman and directors.

PARIS EXHIBITION.—At a meeting of the British
jurors, Jly, at 14, Rue du Cirque,
iie chair—present the Mar-
quisu Selburne, Lord Elcbo, Sir
Paris, ro rs
of,
Lord
heldoHertford,
de ert An
fsohrt
Ashburton
r t ue 2
Lod
on r odi f
n
George Clerk, Sir Charles Barry, R.A., Sir Joseph
Oiliffe, Messrs. Addington, ktn°B, Dr. Arnott, T. Baz-
ley, Bird, Butterfield, Aderman Carter, Cockerell,
R.A., W. Crum, T. De it,Rue, Warren De la Rue,
Evelyn Denison, ALP., W.,:4airbairn, W. Felkin, T. F.
Gibson, W. J. Hamilton, :tesident of the Geographical
Society, J. Hartley, C. TWA, J. liPAdam jun., D.
Maclise, R.A., C. Marshal R.A., J. H. Robinson, Dr.
Royle, J. Scott Russell,
Tyndal, Professor Willisl Prottssor Wilson, and T.
tarring ton Smythe, Professor
Winkworth—it was resold. unanimously —" That it
is desirable an early intiliation. should be given to the
British public of the grey xcellence of the Exhibition,
and of its marked advance tb e objects exhibited over
that of 1851. That it is 'nem fly worthy the attention
of artists, of manufaot ant 1 their workmen, and of
all clams in the United gdo in.",