The Sun.
London, England, 1855-06-09 00:00:00

science of averages so thoroughly and completely that
he had scarbely any thing more to learn. Enthusiasm
was the genius of sincerity. He (the chairman) knew
Mr. Sheridan to be enthusiastic, and he believed him, to
be sincere in his aspirations for the success of the insti-
tution ; and he did not know of any insurance office
which could point with greater pride to the head of its
management than theirs could. Mr. Sheridan bad al-
ways shown himself equal to the trust reposed him,'
and that was one of great magnitude, and therefore the
policy holders, shareholders, and directors were alike in-
debted to_him. He was, in fact, the mainspring of the,
company ; for in an office like theirs, combining life
with guarantee business, the directors must be subser-
vient to the manager. In conclusion he was happy to
add that the institution was in other respects well offi-
cered, and he.therefore begged to move the best thanks
of the company to them collectively for their services.
Mr. MALCOLM very cordially seconded the resolution,
which was carried amidst applause.
Mr. SHERIDAN, in reply, said, on behalf of himself
and the other officers comprised in the resolution, he had
to thank them all for the manner in which they' had paid
the annual compliment to them. As the meeting had
now occupied so long a time he was reluctant to address
them at any length ; but as it was usually expected that
the manager of a company on such occasions should say
something relative to the business events of the past
year be would offer them a few observations ; but he
promised he would be as brief as possible. The share-
holders had, no doubt, had their attention drawn to the
items of the company's general expenditure. On this
point it should be borne in mind that the great portion
of the expenditure for the year consisted of what
we termed preliminary expenses. These out'ays were
not only necessary and unavoidable the first year, but
for many years there must be a great deal of what is
termed preliminary or extension expenses. Some com-
panies which had been in existence ten, twelve, and fif-
teen years, and which had hardly yet left London, had
been obliged to incur these expenses ; and what would
their shareholders say when the cost of extending the
business into the provinces was put before them ? Only
that it was as expense that must be spread over a period
of time, and therefore must be called preliminary, ex-
pense. An office in King William-street, for instance,
had no agents in the country for the first nine or ten
years of its existence. In fact there must be prelimi-
nary expenses, and each year, if a company was pro-
gressing, it must incur a large amount of expenditure
in this way, which must be separated from those
items that come under the head of annual
expenses. Bat if business was not sought by
these means how were you to obtain it ? There were
three patent modes by which insurance offices could ob-
tain a connection. One was by means of age and re-
putation. The old offices threw their doors wide open,
and waited calmly for the entrance of their customers,
relying on their age and reputation; but that would
not do with their office, for he supposed if they were to
turn the whole front of their office into a doorway lie
did not suppose customers would walk in, inasmuch
as they were not what was termed :an old office, and in
the technical language of the insurance world they conse-
quently had no reputation. Another mode was by ob-
taining the support of a class. There were ifices that
bad obtained an unusual degree of success by addressing
themselves to, and starting with the support of a parti-
cular class. One office to which he would refer had
secured the co-operation of a highly industrious
and intellectual body of men, men as respectable as
any in the middle class of life. Mr. Pratt would know
very well to what office he alluded when he said that the
success attending the efforts of that office-was traceable
to the exertions of that excellent class of persons, the
Sunday school teachers— a body remarkable for ac-
tivity, zeal, and intelligence, and who could back
their views with sound and logical- arguments. Then
there was a class of offices which compelled their share-
holders to become insurers, such as the Rock and other
offices. That had been found to be successful, though
the annual new business was not large ; but there was
necessarily a large number of share transfers each year,
and the transferers being obliged to insure their lives
on taking their shares, that, of course, brought more
business into the office. In the absence of either of
these features then in their own office they had been
obliged to have recourse to purchase, -to competition, to
expenditure, without which it was impossible for them to
get the public to look at them. _ There was for instance
a large amount of the expenditure deducted for com-
missions, for unless they allowed the agents liberal re-
muneration they did not exert themselves at all, and
transferred their services to the keenest of their compe.-
titers. With reference to the past five years, notwith-
standing the large items of expenditure to which he had
alluded, they had to-dajy seen that a large amount of
profit had been made in the first year of the company's
working, and the proprietary had that day declared how
that profit should be divided and appropriated. Lapsed
policies bad been referred to ; and it seemed to be sup-
posed that they had taken place during the past year.
But the fact was they were the policies thatlhad lapsed
from the first commencement of the company, and these
lapsed policies bad materially contributed towards the
declaration of profits which bad been this day- made.
If, then, the last five years had been so satisfactory, they
might safely take the next on trust to be equally if not
more so. Although no profits had been made in the
guarantee ddpartrnent they bad made a large connec-
tion, which he anticipated' would materially assist the
company during the ensuing five years. They would
perceive, by the prospectus, that a very great number of
public companies and corporations had accepted the
guarantee of their company—companies that were com-
pelled to be particular with reference to the financial
value of their money ' securities— and who yet had
been amply satisfied with the security offered by this
company after a careful, examination of its condition.
At the same time as many as 2,000 firms, in (Ffferent
parts of the country, had accepted the security of their
society. Although their efforts, in this department had,

as yet, been productive of no financial profit, he hoped
they would be more successful in future years. No
guarantee office had ever declared profits at the end of
the first five years ; and a gentleman behind him,
who was connected with the first guarantee office,
could bear him out in this assertion. Although gua

rantee companies had suffered great losses it must
be remembered that they had to feel their way,
for their rates of premium at first there was no data on
which to base a table of rates. The statistics of crime,
though, unhappily, sufficiently ample, were not suffi-
ciently classified, and they could not ascertain the amount
of that particular class of persons who were likely to
seek the advantages of a guarantee office: They had,
consequently, to pay for their experience. Their
own (the Times) office had followed the course
of the other two offices, and, in consequence
of low rates of preMium, bad also • been sufferers.
The first Guarantee Company had to learn that there
were two features that were elements in the calculation
of guarantee rates, and that could not have been origi-
nally considered. One was that, in the same way that
epidemic diseases attack large masses of mankind physi-
cally at stated periods, though the causes were partially
ascertainable, so there were periods when men were
seized with a kind of mental epidemic, a disorder that
threatened moral dissolution to the patient, and in like
manner the causes were partially ascertainable ; periods
of great commercial pressure, periods when temptations
of an unusual kind were made to young men to emigrate,
when new and royal roads to fortune dazzled their judg-
ments, such as gold mining, &c. ; or to times of strong
political convulsion and excitement, which lead to dis-
content and depression, and to unsettle men's minds—
these were the causes that at stated periods invariably
affected the fortunes of guarantee societies ; but as they
had` the advantage of anticipating the approach of
those periods, they could now prepare for them.
The other feature referred to was that there were two sides
to the great question of crime, " that worst infirmity of
man," that for a man to become dishonest he must in
most cases be tempted in some way or other ; either for
instance by the laxity of employers, or the carelessness
with which they entrusted large sums of money to per-
sons under them, unused to trial or temptation, and here
lay the great series of all guarantee business. Limit
the temptation and you reduce at once the amount 01
crime, compel employers to be careful and the employed,
in most cases, will be honest. Thus, in accepting a
guarantee policy, it became important to inquire into
the character of employers, and these were the precau-
tions which, if duly Observed, would tend, in a great de-
gree, to reduce the chances of guarantee losses. He
must apologise for detaining them at such length, but
before ho sat down, he might observe that there was
now before the House of Commons a measure for
the limitation of liability in Joint 'Stock Companies
which would have some effect upon their' company in
this way. The best business had been for some time
monopolised in the guarantee department by the British
Guarantee Company, which had been selected by Go-
vernment, from the fact of its' proprietary being liable
to the last shilling of their fortune. They bad resisted
the temptation to any such principle, and consequently
the office to which he alluded had been used by all the
employes of the Government to effect their policies. But
when the measure he spoke of had passed the house this
temptation to unlimited liability would cease, and the
Government could not consistently supp6rt or persist
in this monopoly ; and he trusted they should have a
fair share of that business. • '-
T. M. BAEHR, Esq., then moved a vote of thanks to
the medical officers of the company, observing that
their, professional ability and consistent, attention to
their duties entitled them to respect and praise.
.Mr. W. Honuon seconded the vote, which was
forthwith approved of unanimously. •

Dr. COOKE, in acknowledging the compliment, said
that it was at all times gratifying to receive praise for
one's exertions when one knew that it was not altoge-
ther uwleserved. So far as the ability of himself and col-
leagues went, it was devoted carefully and attentively,
to the interests of the society by the scrupulous exami-
nation of all medical reports sent up for their considera-
tion. ;With regard to transfers from other offices, which
had swelled by one-half the 'losses the society bad sus-
tained since its commencement, they were particularly
careful, and gave them much anxious consideration before
affixing their names to the reports. The society might
rest assured that their vigilance in the execution of their
responsible duties would not be relaxed.

Dr. BISHOP said there was one matter which his col-
league had omitted to state, which was that,.from the
care they had taken in the examination of proposals
paf.sing through their hands, the life department, he
believed, was in as sound a state as that of any institu-
tion in the kingdom. With regard to the foreign busi-
nesq, although during the past year much had been done
in Berlin, and in spite of the prevalence of the cholera,
they had but lost a single life in that city. It was
true they had rejected a large number of proposals ; but
he attributed in a great measure the success of the com-
pany in Berlin and liamburgh to the efficiency of the
agents and the integrity of the medical officers there.
He believed the latter were as able and qualified as any