The Sun.
London, England, 1864-03-21 00:00:00

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STAMPED:....Sd.

Economic Life Assurance Society.

ANNUAL MEETING.

The ordinary annual meeting, and also the ex-
traordinary quinquennial meeting of members of
this Society was held on Saturday afternoon, at
Radley's Hotel, Bridge-street, Blackfriars, for the
purpose of receiving the Auditor's Report for the
year 1863, and the Directors' report upon the value
of the funds of the society, its engagements and
the valuation of the policies, with a view to the
declaration of a bonus. Henry Barnett, occu-
pied the chair.

The CHAIRMAN, in opening the proceedings,
briefly but feelingly alluded to the deaths of Messrs.
Biddulph and Routh, and remarked that that cir-
cumstance was the occasion of his occupying the
chair at that meeting. In order to show their appre-
ciation of the services of the late Mr. Biddulph they
had elected his son as a member of their board, and
the other vacancy had been filled up by the elec-
tion as director of Mr. A'Court Repington, of the
National Debt Office.

The statement of accounts, read by Mr. A. Mac-
donald, the secretary, having been adopted, and
the retiring auditors re-elected, the quinquennial
meeting was held, at which Mr. Downes, jun.,
the actuary, read the following report:—

" Since the last division, 2,641 policies,assuring £2,050,788,
have been issued, giving an annual average of 528 policies of
£777 each—a large and steady increase of the business. The
sum of £72,702 has been received during the five years in
new premiums, being at the rate of £14,540 a year. The
total income from premiums, which in 1859 was £182,429,
now amounts to £214,104, indicating an average annual in-
crease of £4,385, after allowing for loss of income from dis-
continued policies ; while the gross income from all
sources has increased at the rate of £10,230 per annum.
Claims have arisen dUring the five years on 794 policies,
assuring £524,327, and carrying bonuses to the amount of
£116,899. In addition to the bonuses on policies upon
which claims have arisen, the sum of £87,149 has been
paid as bonus in other ways, such as in reductioa of bonus
liability by cash payment, reduction of premium, purchase,
&c., making a total of £201,048. In the valuation of the
assets, an ample margin has been allowed for possible fluc-
tuation of the funds ; and in the valuation of the liabilities,
the risk premiums only have been taken into account. The
remaining portion of the premium income, after defraying
the expense of management, commission, &c., will accumu-
late till the next division, when the amount realised will be
found in the surplus. By this arrangement, old and new
assurers contribute rateably to the expenses of manage•
ment, and no profit is declared by anticipation. The assets,
consisting of funded property, mortgages, life interests, and
reversions, premiums due on Dec.3l (since paid), interest ac-
crued on investments, balance at bankers and in hand, amount
to £2,315,129195. 2d, The liabilities, consisting of the values
of policies and the bonuses already declared, claims ac-
crued in 1863 but due in 1864, commission, taxes, and sun-
dry small accounts, amount to £1,964,739 is 7d. There is,
therefore, after making provision for every known liability,
a surplus of £350,393 17s 7d. The directors recommend that
£329,890 of this surplus be distributed as absolute bonus ;
and that the remaining sum of £20,500 17s 7d be retained
for the payment of annual, contingent, and conditional
bonuses. It is further recommended that out of this sum of
£20,50017s 7d, an annual contingent bonus of £1 per cent per
annum be added to the absolute bonus on such policies, now
entitled to participate, as shall become claims during the cur-
rent quinquennial period, viz., on policies which become
claims in 1864, £1; in 1865, £2; in 1866, £3; in 1867, £4;
in 1868, £5 per cent. on sum assured. To those policies
which are not entitled to participate in the present bonus, by
reason of five annual premiums not having been paid upon
them, but on which claims may arise after the payment of
the fifth annual premium and before the next quinquennial
investigation, they propose to add a bonus of like amount
as if five annual premiums had been paid prior to the pre-
sent division. The sum of £329,890 will produce rever-
sionary bonuses amounting to £506,300, yielding a per
centage ranging from sto 34, or on the average of the
sums assured; and a per centage ranging from 26 to 160,
or 591 on the average, on the premiums received in respect
of which the bonus is allotted. The same options are offered
as at the last division, and so the present bonus may be
assured ; 3d, in a reduction of the premiums for five years
only; or, 4th, in a reduction of the premiums for the re-
mainder of life. The society now assures by 9,022 policies
the sum of £7,233,564, and has an assurance fund
amounting to £2,272,385 11d., and an annual income of
£307,475. The large number of assurances in force affords
a protection to the society against those deviations from the
average which attend a paucity of numbers, while the re-
spective amounts of the capital and the income attest the
firm and satisfactory condition of the society. The experi-
ence of the society during this period (the fourth which has
elapsed since paying off the shareholders), has fully realised
the expectations of the directors, and they feel assured that
the members will share their satisfaction."

The CHAIRMAN gathered from the cheers which
had followed the reading of the report that it
was not altogether unsatisfactory. (Hear, hear.)
The society had been now forty years in exist-
ence. At the end of the first twenty years they
had paid off the shareholders, and since that
time they had been going on, and had now ar-
rived at a tolerably mature age. Tae present
quinquennial investigation was, therefore, the
more interesting seeing that they had been
long enough in existence as testing the accuracy
of the foundations upon which the society was esta-
blished. During the peat 40 years they had made
steady progress. Their capital had been rolling up,
and they had now to deal with very large figures.
The assets of the company were calculated at
£2,300,000 and upwards. The premium income
was £214,000, and the total income amounted to
£307,000. The accumulations, therefore, in com-
parison with the statement of five years ago, showed
an increase of £475,000 to their property, that was
in addition to the sums paid as claims and in reduc-
tion of various liabilities. It was true they owed
rather a large sum, their liabilities being £7,200,000,
the present value of which was £3,359,000. To
meet this they had in hand £2,315,000, and five
years' purchase of the premium income would make
up the whole sum necessary to meet the valua-
tion of the liabilities. That he submitted was a very
satisfactory position to be in, and one which he
thought must satisfy even the critical mind of the
Chancellor of th© Exchequer. (A laugh.) Their
assets in fact amounted to no less than 30 per cent.
of the whole of their liabilities. He considered their
actuary (Mr. Downes) had shown great skill in
bringing out these figures, and the board had every
confidence that the surplus now presented was actu-
ally divisible among the policy-holders. The pre-
sent bonus amounted to £329,890 in hard present
money, which in reversion would produce £506,000,
which was a large sum. In 1858, the total sum
they had divisible was £304,000, or about
£25,000 lees than they had now. As the business
had rolled on during the five years there had
been 2,600 policies added, and 1,400 had run off
in one way or another. It would be seen by the
report that the average bonus now to be declared
on the premiums received was 591 per cent., against
65 per cent. at the last quinquennial meeting. This
might atifirst sight seem startling, and some might
regard it as an indication that they were going down
hill, but the explanation he thought would be satis-
factory. ID point of fact the amount was spread
over a much larger surface. It was an average
they had young lives at one end, and old lives at the
other; and unless they could get the old lives to go
off as fast as the young lives came on, there would
necessarily be a variation reducing the average, but
Werewere
issued
during the first three or four years of the society.
The number of policies during the past quinquennial
period was 2,641 as against 2,578 in the previous
five years; the amount assured by them £2,050,000
as against £1,875,000. The average number of
policies per annum was 528 against 516 in the
former period; the average amount of each policy
£777 as against £729 ; and the average of each
policy issued in 1863 was £893. This led him to
the conclusion that so far as they were concerned
they need not take much heed of the Government
Annuities Bill. (Hear.) The Chancellor of the
Exchequer was going into a description of business
which this office did not court, and they were willing
to leave him to carry out his scheme as he best

NEWSPAPER

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could. It was no doubt the duty of a ' -
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ee ery
Government to look after the inter tsl;er-.4lteV4 .
working classes, and they had no righ 'kl:OV- -'' -'44:-."
plain that Mr. Gladstone had taken up the sttjectri S
Small policies such es the Government contemplated
did not pay as well as large ones. The Economia
issued policies as low as £lOO, but they did not like
them, experience having shown that the larger the
amount of the policy the better for the office, the
premiums being calculated upon the average risk of
life, and provision being made for expenses and a
fair margin of prefin Suppose, for instance, the
margin for expenses and profit were taken at 25 per
cent., if they insured a life for £lOO at an annual
premium of £4, £1 would go every year for office
expenses, and any balance that might accrue ns be-
tween that charge and the actual proportion of
office expenses belonging to the policy would acme
mulate for the benefit of the policyholders gene-
rally. But if they insured a life for £l,OOO at an an-
nual premium of £49, they would have £lO ever3-year
towards the expenses of management, and .as the
cost to the office would be the same, there would be
so much more left to accumulate as profit for the
general good. It was found, by comparing the
expenses of management with the number of pelicies
in force, that the annual cost of each policy was
nearly £l, and the Chancellor of the Exchequer
showed that he was well informed upon all files,
points when he stated it would be necessary far
the Government to charge a higher rate of premium
than the average of the ordinary insurance offices.
Some years ago it was thought the premiums
charged by the Economic were calculated at too low
a rate, and that the office was not quite safe in con-
sequence ; but during the 40 years it had been
established they had paid back 30 per cent. to the
policy-holders without reference to the average,
besides making ample provisions for all liabilities.
The total amount declared in bonuses since they
started was £l,36s,ooo—(cheers)—of which amount
they had redeemed by cash payments, lives drop-
ping in, and other ways, £803,000, leaving out-
standing £562,000. They were now adding
£500,000 odd to that amount, making in round
numbers about a million of liabilities for bonus on
existing policies, which they were quite prepared
to pay as those policies fell in. Another favourable
feature in the business of the society was that poli-
cies were taken out on older lives than formerly,
yielding a higher rate of premium, and showing
that the value of the office had been maturely cone
sidered by the insuring public. It was difficult,
from the uncertainty of life, to arrive at an aver.
age bonus, but he might state that the highest
they had paid was upon a policy of £2,500 taken
out at the age of 54 on a life that fell in at
the ego of 83. To the representatives of that life
the directors had the pleasure of paying over
£2,171 besides the £2,500, or 8771 per cent. on the
premiums paid. At the other end of the scale, on
a life that dropped in very early, the policy carried
only 52 per cent. bonus. The funds of the office
arising from the accumulation of premiums had
been invested at an average rate of £4 4s. ld.,
against £4 2s. 4d. in 1858. This might appear a
small rate of interest looking at the high value of
money lately, but the board were tied down to
the funds and other investments which paid a
low rate of interest, but were free from risk, and
he added that the office had not made a single bad
investment or bad debt since he had known it.
(Hear.) The directors took credit for the economy
exercised in the conduct of the business of the office,
the total expenses notexceeding 21 per cent. on the
gross income. (Cheers.) He then announced that
negotiations were in progress for taking over the
business of the Amicable upon terms which would
be perfectly safe for the Economic, and after paying
a high compliment to the actuary (Mr. Downes),
and the secretary, Mr. Macdonald, for their zeal
and attention, he concluded by moving the adoption
of the report.

The Right Hon. E, P. BOUVERIE, M.P. (director)
seconded the motion, which was carried unani-

mously.
The next motion, that £329,890 be distributed as
bonus among the policy holders, was also cirried ;
as was another resolution providing that one
oar cent. tier annum should b 3 uaid as additional
bonus on policies becoming claims during the ensuing
five years ; and notice was given of a motion for a
future meeting to increase the remuneration of the
directors from £1,500 to £2,000 a year.
The directors retiring by rotation were re-elected.
A vote of thanks to the chairman and directors,
and a similar compliment to the actuary and secre-
tary, concluded the business.

THE PUGIN MEMORIAL.—The duties of the com-
mittee have been brought to a close by the execution of the
deed of trust by the president and council of the Institute
of British Architects. The proceeds of the fund (-1S40)
have been invested in London and North-Western Rail-
way shares, and will yield 40 guineas annually to a Pugin.
travelling student. • It is understood that a Pugin, medal
will be presented to each student at discretion,
MAZZINI'S MORAL DAGGER.—What M. Mazzini's
"moral dagger" may be we know not. It is proved
from his writings that he advocated the use of the physical
dagger, and eulogised the men who slew tyrants such as
Cresar, and Rossi as an exemplar to those who might essay
the life of obstacles to republican liberty like Carlo Alberto
or Louis Napoleon. It is at least unfortunate for a Minis-
ter of the Crown in a constitutional country to have been
associated in hie ante-official period so very closely with
the arch-enemy of monarchy and constitutions, and to hays
very recently had, according to his own admission, rela-
tions with a man lately convicted, on the clearest evidence
to our minds, of having been in communication with a per-
son engaged in conspiring with other Italian desperadoes to
assassinate the Emperor of the French; M. Mazzin's moat
detested and formidable enemy. Let us reverse the case.
Suppose John Mitchell were in Paris, bent on illustrating
his peculiar modes of making war on the Saxon enemy;
that a band of conspirators were attested in London previ-
ous to an attack on the Queen or even Lord Palmerston,
among whom were Mr Mitchell's intimates ; and that it was
proved that Mr Mitchell was a constant visitor and personal
friend of one of the Emperor's ministers,—let us consider
for one moment whether public opinion in this country
would be satisfied by the repetition of the process in Par-
liament and out of it, which is considered sufficient to sa-
tisfy France. Mr. Stansfeld has done good service since ho
has been in office, but he should not have been restrained
by any sense of personal dignity from giving such ample
cxplanaticns as shall satisfy national honour and good
faith.—Army and Nary Gazette.
Mr. E. M. WARD has just completed another of
the series of pictures with which he is commissioned
to decorate the Commons' corridors in the Houses of Parlia-
ment. This work has been executed in the stereochrome cr
water-glass material, and by its brilliancy and clearness, as
well as by the facility with which it has been produced,
testifies to the suitability of that method of treatment. It is
one of Mr. Ward's most successful pictures, and does him
great honour in its technical excellencies. The subject is
"The Landing of Charles 11, at Dover, at the Restoration."
The King, who is splendidly dressed, after his taste, is step-
ping to the beach from his state barge ; he raises his hat in
salutation to the people assembled to welcome him, keeps
his head aloft and looks at them. A. resemblance to Charles
has been admirably given by the artist in the face, with its
dark complexion, strong and rather harsh features, and that
debauched look he had. Foremost of the crowd stands
Monk, hat in hand, with a stooping, half cringing air, that
is clumsily courteous. Here again the likeness of the mart
is excellent. Enthusiastic Royalists, and persons who were
ready to shout for anything, make up the groups of officials
and spectators. Among them isanold man supposed to have
suffered his beard to grow, pursuant to a vow to do so until
the King returned. Some dissolute-louking courtiers, young
men, stand in the barge, their heads being visible above the
roof of its cabin. One of the best figures in the design is that
of a young sailor, vociferously cheering, whose back is to-
wards us. The drawing of the bare legs and arms of this
man is bold, broad and true, exactly what is required in
works on the scale of this one. There is noteworthy solidity
in the painting of this figure and in some of the others.
Among those in the background of the group is a
woman
holding up a child that it may look at the King. The land-
scape shows Dover heights, castle and cliffs. The effect of
slightly-broken sunlight, and all the details of the fore-
ground, such as the beach, the groyne, the barge, the sea,
gently falling on the sand, &c., are rendered with extreme

PERFECTION OF MECTIANISItf.—" As engineers we can
say that it really approaches much nearer the perfection of
mechanism than any other examp e of clock work we have
yet seen on anything like the same large scale."—Engineer,
Aug. 15, 1862. Clocks by the first artists of the day for the
drawing room, dining room, bed room, library, hall, staircase,
bracket, carriage, church, turret, railways, warehouse, count-
ing house, musical, and astronomical. Church and turret
clocks specially estimated for. Benson's illustrated pamphlet
on clocks (free by post for two stamps) with descriptions and
prices, enables those who live in any part of the world
to select a clock. Also a short pamphlet on cathedral and
public clocks, free for one stamp. Prize medal and honour-
able mention in classes 33 and 15. J. W. Benson, 33 and 34,
Ludgate-hill, London. Established 1749. Watch and clook
maker by sr &Vial warrant of oppointment to 11,1x.11. the
Prince of Wiles.