The Sun.
London, England, 1853-08-31 00:00:00

INSURANCE ASSOCIATIONS.

The select committee appointed to take into considera-
imwdttiioisiotscuntllmeodesthe subject of Insurance
.Associations, and who
minuteswer e
of
evidence empowered to rteapkoernt
beforethe ir t
hem to observationsthe andH outahe e,
have considered the matters to them referred, and have
agreed to the following report :
"1. Your committee have considered the subject re-
ferred to them, and have examined the Registrar and
Assistant-Registrar of Joint-Stock Companies ; the
late actuary to the Commissioners of the National Debt;
iasststrianrgoof Friendly Societies ; Mr. Finlaison, the
Dr, Farr, at the head of the statistical department of
the Registrar-General's office ; and many of the most
eminent actuaries connected with insurance offices of
every class.
"2. So far as regards the Joint-Stock Companies Act
of 1844, your committee have confined their inquiry
chiefly to that portion of it which affects insurance com-
panies, and more particularly the business of life insur-
ances. From the evidence of the Registrar and Assistant
Registrar of Joint-Stock Companies, it appears that the
law, as it now stands, is extremely defective, and that
the provisions of the act of 1844 are very imperfectly
carried out; many of which they have no power to en-
force if not complied with.
" 3. With regard to provisional registration, it ap-
pears that the law, as it now stands, does not affordl the
security which was contemplated 13Y, the act of 1844 ;
inasmuch as the representations made by the prospec-
tuses and advertisements issued by new companies often
vary very materially from the objects for which they
have been provisionally registered ; and there appears
to be no means at present to prevent deception and
misrepresentation being practised on the public in this
way. Nor are the regulations required in order to ob-
tain complete registration more perfect for that pur-
pose. It is required by the law that the deed of set-
tlement should be signed by shareholders equal to one-
fourth in number and representing one-fourth of the
proposed capital of such companies • but it appears, from
the evidence of Mr. Whitmarsh, that this provision has
been extensively abused by means of false and fraudu-
lent signatures, and has thus proved to be a very insuf-
ficient security for the objects contemplated. It appears,
also, that it has been frequently evaded by companies
commencing business with a very small capital,
and, immediately upon obtaining complete registration,
greatly increasing its amount, which they are enabled to
do without further recourse to the office of the regis-
trar. These observations, however, apply to joint-stock
companies generally.
"4. After joint-stock companies are completely regis-
tered, one of the chief securities contemplated by the act
of 1844 for the safety of the public is the duty impoqed
upon them to return annual balance-sheets representing
the state of their affairs to the registrar's office, where
they are open to public inspection. But from the Etct
that that act prescribed no form, and furnished the
registrar with no power to enforce a compliance with
the spirit, or even with the letter, of the law, it appears
that this provision has been very imperfectly complied
with in many cases, and in others altogether neglected ;
it cannot he said that it has afforded, in a majority of
cases, either the information or the security which was
intended.. Much doubt, indeed, has been expressed by
some witnesses whether the publication of accounts in
their present form has not rather tended to mislead than
to inform the public, in which view your committee are
inclined to acquiesce. And if the system of publishing
accounts is in future to be persevered in, your committee
express a decided opinion that the law must define more
clearly what it requires, and that a greater power should
be given to enforce whatever provisions are thought ne-
cessary for the purpose.
" 5. There is one subject which has formed so pro-
minent a feature during your committee's inquiry, and
which has partly arisen from the act of 1844, that they
cannot pass it over without some remark—viz., the dif-
ferences of opinions and views entertained by the two
great classes of offices, the one including those esta-
blished since the passing of the act of 1844 and com-
pletely registered under that act, and the other those
established prior to that date, and not so registered.
Your committee have arrived at the conclusion that in
many ways that distinction has operated prejudicially,
and that it would be eminently to the advantage of the
offices themselves, as well as to the public at large, if all
insurance companies could be brought under one law,
. tt
nao
than
hsysa theen
es
vti
hedxeegeneralyanmnhei
ancdheo
adbna,
been
eibtnbei
uoel condition d ol
in
laid
to
gbeenliexistingbeforeeervael
leaving each company to recommend itself to the public
upon intsreosibsw,tayhsntoirtsmehffaageecrarit.diwaotssryi
duty to report that
r e
consisted theyceedeninf
difficult
luroeel
dftd
touponafoor
spoa
penaeykn theirii :
in
Legislaturet inquiry.violationhethese
e o
f satisfactory
tN oa lo
1 lraewvdoubt,etoit:rterms
rsin-
stanceseos
ooearrabdermitteep they feel it their
gt flagrantlla
ro
little
trade,f r a
huaa
sdpnerdeghe
aosaunvuceeth: botaeeiniintr
your committee,
s
n
akinto ofa griodealitngabthuasnes
toanrde
privateffi e e
ep, persons ofna sr
aa exercisethe
evidence s
before
theseoteflongfeeogx i
hctaeofbetehoeiroalolwean
taoffathires.
great
tt
fwaehiillietiteheewchoimat-
tahtteecnotinodou.
with
n o
exist under the present state of the law, for insurance
existence companies,
;i in commonreasonable with
into
guarantee
for success, and not fr un equently without any bona fide
intention
,of transacting business. It appears by a re-
turn made to your committee from the office of the re-
gistrar, that since the passing of the act in 1844, no
fewer than 311 insurances companies of various kinds
have been provisionally registered, of which only 140
were completely registered, and of which only 96 con-
tinue to exist at this time. And while your committee
have reason to believe that some of the companies which
have ceased to exist during that period have been ab-
sorbed in other companies by whom their business has
been taken over, yet at the same time they have no doubt
that considerable traffic has been carried on in the mere
creation of companies which never had any real prospect
of a bona fide existence.
"7. So far, then, as regards the present state of the
law, as established by the act of 1844, it appears to be a
very general, if not a universal opinion, that it requires
some amendment, and in which your committee fully
concur. They are deeply impressed with the opinion
that, as the law now stands, it does either too much
or too little ; too much, inasmuch as any legisla-
tive enactments professing to protect the public in
such matters have a certain tendency to weaken
and impair that individual vigilance which would
be mere surely exercised if no such attempt was
made ; and too little, inasmuch as the securities with the
law provides are ill calculated to effect the object at/
which they aim. On the part of all the witnesses exa- •
mined, your committee found a laudable desire to im-
prove the existing state of the law, differing, no doubt
widely, in their views as to the best mode of accom-
plishing that object. On the part of the old offices of
extensive business, the witnesses who more particularly
represented them, expressed their desire to be placed
under one general rule, to make such annual returns,
and to afford such other tests as could be given without
an undue interference with their business for the purpose
of securing one safe and uniform system, by which a rea-
sonable security may be afforded for the respectability
and solvency of insurance companies.
"8. In approaching the question of what alterations
in the present state of the law your committee are pre-
pared to recommend, they feel that it is one which is
surrounded by great difficulties. The two distinct prin-
ciples in respect to subjects of this nature—viz., that of
interference by the Government for the protection of the
public, and that of no interference whatever, have been
very fully and ably discussed by the witnesses examined
by your committee. On the one hand, even admitting
the general wisdom of the principle of non-interference
on ih3 part of the Government in matters of trade it has
been contended that the question of life insurance differs
so materially in its general character from ordinary trad-
ing transactions that it may fairly be considered as an

ri,Ric. SD•

exception to that rule. This exceptional treatment has
been jastified and supported, on the ground that the ob-
ligation undertaken by such associations have reference
to a very remote and uncertain period ; that the
object which persons have in view in effecting insur-
ances upon their lives is generally of an important and
solemn character—viz., the provision for widows and
orphans after the death of their natural protectors; that,
unlike any ordinary transaction of trade, a contract once
entered into cannot be discharged or abandoned if doubts
of the stability of au office should arise, without a great
sacrifice of premiums paid in past years, and the neces-
sity of effecting new policies in other offices at increased
rates of premium, owing to the greater age of the as-
s ared ; and that in the present state of uncertainty which
arises from the imperfect knowledge as to the real con-
dition of insurance offices, persons are thus placed in the
anxious and unhappy dilemma of being compelled to per-
severe in paying premiums from year to year, with some
suspicion and doubt as to the ultimate advantage of doing
so, or of incurring the serious loss which, under the most
favourable circumstances, must attend the abandonment
or sale of a policy. On these considerations, as a special
case, it has been contended by different witnesses of great
experience, that interference on the part of the Govern-
oomprdeenrinatatiirsoyonstor of
not
eonlyin
insurancejut hstifiable, but a matter of high duty,
for the protection and information of the public.
"9. On the other hand, it has been contended with equal
ability, that insurance business forms no exception to
es e
societiesrespects
have; b
thatee thera
rather
rs
hurtful
which
l
have already been passed with a view of controlling the
n
than beneficial for the very objects they had in view ;
that an apparent compliance with the provisions of an
act of Parliament and a certificate of complete registra-
tion, while they have proved entirely ineffectual for their
professed objects, and no real security to the public,
have afforded facilities, under the sanction of Parlia-
mentary authority, embodied in regulations administered
by a public department, for the formation of companies
. • hrl perpetration of frand4hiela could tiourwise.
have been accomplished: ---Atill'in-arbtfte.hgrZOlV
tended that it is impossible to make such regulations,
consistent with the free development of private enterprise,
which, so far as the public is concerned, will prove more
prejudicial by lulling private prudence and vigilance than
beneficial in respect to any increased security which
they can confer.

a 10. Much difference of opinion has been expressed
by the different witnesses favourable to the former of the
two principles alluded to, as to the extent to which Go-
vernment interference should take place ; some have
contended, not only for an enactment which should more
strictly regulate the circumstances under which insur-
ance companies can be formed, but also for the appoint-
ment of Government actuaries, under a department of
the State, who should have a direct supervision of the
proceedings of all insurance companies, while the gene-
rality of witnesses favourable to some regulations have
confined themselves to much narrower limits, and have
contended only for such precautions as should test the
bona fides of new companies, and as should from time to
time afford a fair amount of information with respect to
the condition of such companies, relying upon the good
faith of directors and actuaries for the accuracy of the
information furnished.

" 11. In venturing to express the views which your
committee have been led to entertain as to the course
which Parliament should pursue in future in regard to
the subject of life assurances, they will divide their re-
marks into five heads :

" 1. As to the mode in which it is desirable to deal
with the present Joint-Stock Companies Act, so far as
relates to insurance companies.
"2. As to the registrar's office, duties, and powers.
"3. As to the registration of existing offices.

"4. As to precautions which it-seems desirable
to take in order to test the bona fides of new associations,
and to entitle them to complete registration.
"5. As to the securities which can be afforded to the
public by the publication of periodical accounts.
"12. Your committee will now proceed to remark on
each of these points separately.
"Ist. Your committee are of opinion that the busi-
ness of assurance companies differs so much from ordi-
nary business that it will be advisable to repeal all the
provisions of the Joint-Stock Companies Act, so far as
they relate to insurance societies, and to deal with them
in a separate act. •

" 2d. Your committee have already adverted to the in-
sufficient power which the existing act confers upon the
registrar of joint-stock companies to give effect to the
provisions of the law. Your committee are of opinion
that whatever duties may be intrusted to that officer
under any act to be passed, it is essential that adequate
powers should be provided to enable him, either by him-
self or through one of the departßents of the State, to
enforce any regulations that Pitiliament may think it
wise to enact. Experience has proved that without such
powers, regulations become a dead letter, and are only
calculated to mislead by iliWtoßpamat sanction which
they give to proceedings not in reality:conkftledlry
them.

" 3d. Your committee, in a former part of this report,
have alluded to the inconvenience which has arisen,
from the fact that a portion of the existing assurance
offices tre completely registered under the act of 1844,
and a portion not so registered. The effect of this dis-
tinction has been to lead to controversies between the
old offices' (established prior to 1844), and the 'new
offices' (established since the passing of the act of that
year); which have been prejudicial to the interests of
the public. Your committee are therefore of opinion
that it would be highly advantageous to all parties if all
companies, both those existing and those that may in
future be formed, could be placed under one general sys-
tem of registration. In accomplishing this, your corn-
mittee would recommend that the requirements for re-
gistration, as regards existing companies, should be as
simple as possible, but that whatever periodical returns
may be deemed necessary should be the same as regards
all companies whatever.

" With regard to mutual insurance companies, where
the claims of the insured are confined to the funds of
the society and where no personal liability attaches,
your committee are of opinion that the requirement of
the law, that the members of such societies should be
registered, is of no real utility to the public or the as-
sured, while it is both expensive and troublesome ; and
that all the objects of the law would be answered by a
registration of the directors and other officers of such
societies.

regardt importanth e`
rtehct .
ao
uTt
tphioaoeurn
formation
sopsoosrcwreeefnmoefdchlutmcayiubi
lemter!ienttnirnnyltssyittthtno!fqfbuhu!t
Iteoheiideehuroeenwyillnbgpdstehi
cuhs
hbveobhar:ealiett r
ys,rbcpa
npe.abalaptanedfoetceci reeennwohrsdnmtba.
comparatively
edednsmdb,deociotplrytthenarhaht
ebereetefalhrdcweyt:
sehmia most
eansuttlsephodoyets.:
hand, your committee feel that the ground hitherto occu-
limited, and. that their application is capable of a great
pexietdenbsyionth,e7otu
of society, but also among the humbler classes, to
plied ; and that it is, therefore, very important that
whomn o
needfulc h check ki
fort o r:ihmse
the further extension of this enterprise, not absolutely
the sommithee are of opinion that, in the interest of the
companies themselves, as well as in that of the public,
it is desirable to interpose such checks as will give a
reasonable guarantee as to the bona fide intentions of the
promoters of such companies. To this extent only the
committee are of opinion that any interference at this
stage is desirable. With this view, in addition to such
regulations as may be considered needful for the purposes
of registration, the committee are of opinion that no new
company should be admitted to complete registration
until a capital shall have been subscribed, and actually
paid up, of at least 10,0001., and which shall be invested
in the public funds, under such regulations as Parliament
promoters,
rgaoby deemmt
ootfe arstest; fitan dteofoefbnaoanc t
fi; tod
securitye ibnfetoerconsidered ia
the
tbi ses
pt
ahe
of
rtth doe
foutbhlee
com-
pany at its early stage of existence.
" sth. No part of the subject submitted to your com-
mitliaße aptt
uieoebnl
soa shf e
pdr
eeioai
dvvierd
bl me
aeocnrceoo
uaf
ntat et
accounts.
to
Hi
sot ni
tuhtnhe
sraat
ont
sttfhhaacotts
oeor
yf theeh accounts,
aprua bc
ter. Your committee have carefully considered whether
it would be practicable to prescribe such a form of
account as would accomplish the objects of the Legisla-
ture ; but, after the most careful consideration, they are
to
lapplicabledtothe t
the coo all cases,nclus iont
which would not be exposed
that no fixed form madecouldbe
uchm evasion, or which would practically afford any real

security.
"Your committee, therefore, would recommend that
it shall be imperative upon each company to make a
complete investigation into its affairs at least once in
five years, as is usually prescribed by their deeds of set-
tlement, and at such times so prescribed, which shall
show a complete valuation of their risks and liabilities
and of their assets to meet the same ; and that all such
valuation accounts, which may be made for the informa-
tion and use of their proprietors, shareholders, or mem-
bers, shall be registered in the office of the registrar ;
and that in each intermediate year, between such peri-
odical balance sheets or valuations, there shall also be
registered a statement containing authenticated infor-
mation on the following particulars :
"The amount of receipts during the year for pre-
miums on policies.

" The amount of expenses during the year.
"The number and amount of new policies issued.
" The total number and amount of liabilities on all
current policies.

" The total amount of premiums receivable on the
same.

" The whole amount of capital, distinguishing the
manner in which invested.
" How much in cash.
"How much in Government securities.
" How much in mortgage upon real estate.
" How much in other securities, specifying their
nature.

" The average rate of interest received upon each
class of investments.
" The amount of such investment, if any, on which
the payment of interest is in arrears.
"The table of mortality, and the rate of interest used
in calculating the premiums.
13. The evidence which yot committee has ob-
tained leads them to believe that some such general
statement would be of much greater utility in enabling
the public to come to a correct judgment as to the con-
dition of an office than any form of account thit could
be adopted. In addition to the above, in the case of

suit of the advancement or . which;
based ; but there is a class of business which some oftides
have undertaken—viz., that of receiving deposits of
money at interest, which appears to your committee
totally inconsistent with the business of life insurance.

" 16. Your committee will conclude their report by
calling attention to a part of the evidence which advo-
cates the formation of an incorporated society of actua-
ries, with a view to the advancement of that important
science, and also with a view to issue diplomas or certi-
ficates to persons qualified to practise as actuaries. If
any effort should be made to induce Parliament to grant
such an incorporation, the committee are of opinion that
it will be worthy of consideration, but that further in-
vestigation would be needful before such measures should
be adopted, as considerable difference of opinion prevails
on the subject among actuaries themselves.
"August IG."

FIRE AT THE ORATORY IN KING
WILLIAM-STREET.

-
At an adjourned petty sessions held yesterday at the
vestry-house of the parish of St. Martin's-in-the-Fields,
an investigation took place in reference to a ,fire that
occurred on Friday, the 19th inst., at No. 27, King
William-street, Strand, better known as St. Phillip's
Oratory. The inquiry arose out of the dOrnand made)
by the firemen for the usual rewards under the Metro-
politan Act ; but the ultimate object, as it appeared
from a circular addressed to the parishioners generally,
by Mr. Bowes, one of the overseers, and who lives next
door to the Oratory, was to ascertain whether there was
any foundation for a rumour prevailing in the neigh-
bourhood that the fire had been wilfully occasioned, and
to petition Parliament for an act making it imperative
on the coroner to hold inquests in all cases of fire.
From the testimony of the enginemen and turncock
who were called to extinguish the fire, it appeared that
it broke out at half-past eleven at night, and that it
was confined to a narrow space about one inch and a
half wide, between an unused front door and the wains-
coating nailed behind to conceal the doorway on th
inside. The fire was extinguished in less than half an
hour and beyond charring the wood work did little or
no damage. A small quantity of paper, partly burnt,
,4‘l6zudAsAtiv....4. ,th.a. door and the partition, and

flirrebeing a :I.ole-ctifin the door fora letter-40x, which
had formerly been fixed to it, it was suggested by
one of the firemen, and the opinion seemed to be shared
in by the priests who reside in the house (one of whom
was present at the inquiry),,that the fire was caused by
some person outside dropping the lighted paper into the •
hollow space by means of this hole ; while Mr. Bowes
thought the paper, or the fire that ignited it, must have
been placed there from the inside, which, as the space
was open at the top under the fan-light, it was possible
to do. A great deal of evidence was gone into, with the
view to establish one or other of these hypotheses, the
yfi!liiii
.0
elene
dhdc aaatsdheat
weight of it being decidedly in favour of the first ; but
doubt,katesh IL iprtstoppedlhoaencelfiyor
or not
firemen
theytoeytn
was;w the
were
set to
entitledaatn ascertain t abient
oe
nw.tpiihreeoch rewardee
proved tao.
claimed. •

In reply to a question from Mr. Bowes,
The Vestry Clerk said it was the duty of the;cOroner on being called upon to do so to hold an inquest in any
case of fire.
Mr. Bowes had been informed that if he called upon
the coroner to hold the inquest he would have to beai
the expense.
The Priest, who was in attendance, was anxious as
one of the residents of the Oratory, against whom an
imputation had been indirectly thrown' to give his ex-
planation of the circumstances so far as he knew them,
and by permission of the magistrate did so, but his ac-
count in no respect differed from that of the firemen ;
and

The Chairman said that as far as the investigation had
gone no imputation rested upon any one, nor had that
court power to pursue an inquiry for the purpose of
attaching guilt in any quarter.
The parties then retired.

ROYAL PRINCESS'S THEATRE, OXFORD-STREET.

Under the Management of Mr. Charles Kean.
LAST NIGHT BUT TWO OF THE SEASON.

TAUS EVENING, AUGUST 31,

Will be performed the Tragedy of MACBETH. Principal cha-
racters by Mr. and Mrs. C. Kean.
To conclude with THE HONEYMOON. Messrs. W. Lacy, Har-
ley, Meadows, J. Vining, and Everett ; Misses Murray, Desborongh,
and C. Leclercq.

THEATRE ROYAL ADELPHI.
Proprietor, Mr. B. Webster —Directress, Madame Celeste.
THIS EVENING, AUGUST 31,
Will be performed GENE VIEVE. Characters by Messrs. Parselle,
rullenford, Woolgar, Leigh Murray, Hastings, A. Wigan, Paul
Bedford, Keeley, O. Smith, and C. J. Smith; Miss Woolgar and
Mrs. Keeley.
After which, will be presented SARDANAPALUS.
To be followed by THE CAMP AT CHOBHAM.
To conclude with WHAT! NO CAB?