The Sun.
London, England, 1870-02-24 00:00:00

IMPERIAL PARLIAMENT.

110 USE OF COMMONS.-YESTERDAY.

The Speaker took the chair at quarter past twelve.

PRIVATE BUSINESS.
The following bills were read a second time :
Bristol and North Somerset Railway, Great Eastern
Railway (General Powers), Great Eastern Railway
(Metropolitan Railway), Leeds Street Tramways, Liver-
p)ol Street Tramways, Manchester Street Tramway's,
Midland Railway (Additional Powers), North Stafford-
shire Railway, Preston, Longton, and Southport Railway,
and SheiEgld Corporation Gas Bill.

PETITIONS.
By Sir Charles Dike, in favour of female suffrage, from
Chelsea ; by Mr. Holt, from Over Darwin and Great
Harwood, in favour of primary education, also from Row-
lenstall and Bacup, in favour of female suffrage ; Mr.
Dodds, from the Yorkshire Law Society, against the
Attorneys and Solicitors', Remuneration Bill ; Mr. Mun-
della, from Sheffield, for alteration of the Evidence
Amendment Act.

BENEFICES BILL
Mr. CROSS brought in his bill to render void the next
presentation to benefices, which was read a first time.
LIFE ASSURANCE BILL.
Mr. CAVE rose to move the second reading of this bill,
and in doing so said in order that his observations might
not appear invidious, he should avoid the mention of names
and offices until his statements were questioned, when he
should be prepared to substantiate. He might further say
that he was totally unconnected with any life assurance
office, and until very lately he had not paid much atten-
tion to the matter. The proposition for the governance
of life assurance offices had led to many suggestions, some
persons being of opinion that model tableishould be issued by
Government ; but he thought it was best that this matter
should be left to conpution, as it was in America, where
life rates were charged for, for those who were professed
homeopathists, for those according to the age of their pro-
genitors, and on various other principles ; but in this country
the people seemed to be self-selective and the best lives
were as a rule always endeavoured to be selected. It
might be interesting to the House to know that the most
long-lived people were peers, clergy, and the members
of the Society of Friends. (Laughter.) The
business of life assurance was comparatively
free from risk, and it was a remarkable fact
that exception notably had never ruined any office. The
Indian mutiny was about the most fatal for life
assurance, but yet that unfortunate calamity did not
cause the failure of any office, although it pressed most
severely on some. The hon. member then proceeded to
detail the number of offices which had been founded during
the last fifty yealts„the number wound up, the number
transferred, from which it appeared that seven companies
had been transferred four times, some three times, and
eighty he could name that had been transferred once.
Soma offices had absorbed not less than thirty-five
offices, and the Albert, of which they had heard so much,
had taken over no less than twenty-four. The mode in
which railway companies had been formed had been most
objectionable. Canvassers and agents had received ex-
horbitant sums for business done, and they had built the
Gower higher and higher every year, only to heighten the
alamity of its fall. Such questionable transactions had
seen brought to light that the celebrated Anglo-Bengalee,
shich had been drawn by one of our greatest writers, had not
een altogether a fiction. That the most careful super-
vision was required in these offices was apparent
when he stated that the contracts of the
offices in existence in this country amounted to no less than
£400,000,000. The provisions of the bill had received the
approbation of the highest authorities in America, and he
hoped it would receive the sanction of the House. The
right hon. gentleman then proceeded to state the provi-
sions of the bill, which were as follow :—Every company
established after the passing of the Act must, before
receiving a certificate of registration, deposit £20,000
with the Accountant-General in Chancery, to be invested
by him for the benefit of the company, but to be
:eturned as soon as the life assurance fund accu-
mulated out of the premiums shall amount to £40,000.
Should any other business be transacted in addition to
that of life assurance, the life assurance fund was to be
kept separate, and was not to be liable for the other con-
tracts of the company, but should be absolutely the
security of the life policy-holders. Every company was
to prepare, at the expiration of each financial year, state-
ments of its incomes and expenditure, with balance-sheet
in certain prescribed forms; and, further, once in five
years, an actuarial investigation was to be made into its
condition, and within six months thereafter, a
statement of its life and annuity business, made
up as at the date of the investigation was to be issued.
Copies of these statements to be deposited at the Board
of Trade, and to be delivered on application to every
shareholder. No amalgamation of companies to take
place until a statement of the nature of the arrangement.
and of all the material facts, with copies of the actuaoial
reports, had been forwarded to each policy-holder, nor
until the written consent of one-half of the policy-holders
had been obtained : and in cases where the requisite con•
sent had not been obtained, but where the dissents amounted
to less than a tenth of the total sum assured, the directors
must apply to the Court to sanction the arrangement.
When an amalgamation took place, the combined company
must, within ten days, deposit with the Board of Trade
full statements of the assets and liabilities transferred,
with particulars as to the nature and terms of the transfer,
and a declaration by the chairman of each company that
every payment made to any person on account of the
amalgamation was fully set forth, and that no other
payments, either in money or other property, have
been made, or were to be made, with the knowledge of
any parties to the transfer. Every company which made
default was liable to a penalty of fifty pounds per day,
and if the default continued for three months after notice
had been given by the Board of Trade, the court might
order the company to be wound up. The court might also
order a company to be wound up on the application of one
or more policy or shareholders; on its being proved that
the company was insolvent, and in determining this point
the contingent or prospective liability under policies and
annuity or other contracts, was to be taken into account ;
but the Court was not to give a hearing to the petition
until security for costs had been given, and until aprirai
facie case had been established to the satisfaction of the
judge. In the case of a proprietary company having an
uncalled capital equal, ,with 'the invested assets, to the
estimated liabilities, the Court might suspend further pro-
ceedings to enable the capital to be called up. Where a
company had been proved to be insolvent, the Court
might reduce the amounts of the contracts in place of
making a winding-up order. The passing of the
bill, he could not but believe, would bring about a feeling
of security which did not generally exist at the present
moment, and to a great extent prevent those directors
and promoters of bubble companies who sometimes sat in
high places from further enjoying the hard earnings and
thrifty savings of those whose efforts to provide for the
future ought to receive the strongest protection
it was in the power of Parliament to give. He concluded
by formally moving the second reading of the bill.
Mr. LEFEVRE, on the part of the Government, said
he had great pleasure in giving his assistance to the second
reading of thebillwhich had beedso ably movedbytheright
hon. gentleman. He was sure that the present bill was a
great improvement on the bill of last year, and
that it would, if sanctioned by the House, bring
forward the best results. It was most im-
portant that the policy-holder (should have the
earliest possible information of the exact position of the
company in which he was interested, and that he should
be put into such a legal position as to be enabled to pro-
tect himself, and the classes that he (Mr. Lefevre) had sug-
gested, and which the right hon. gentleman had
drafted into the bill would effect that desirable object.
There were some other matters which, perhaps, might
call for consideration, one of which was to ascertain
whether it was not possible to do something to prevent
what was now called " wrecking." (Hear, hear.) The
Government did not dish to take too prominent a part in
passing the present bill, but he should have very great
pleasure in giving the -right hon. gentleman all the assis-
tance in his power, In order to enable him to arrive at a
satisfactory result, as that a recurrence of such scanda-
lous cases as had 'accursed might be prevented. (Hear,
hear.)
Mr. BARNETT cordially supported the bill, and com-
plimented the right hon. gentleman on the successful
manner in which he had brought forward the subject. A
positive necessity for such a bill as that now before the
House had been fully made out, and he for one thought
the/ measure only asked for that which was reasonable and
just.

Mr. W. SHAW said he should in committee move th•
amendment which he placed on the paper last year, that
there should be a perfectly independent and compulsory
audit of the accounts of insurance companies. He would
not adopt the American system of audit in its entirety.
but there was muell 111 that method 01 cocci:tug at:comas
to recommend it. What he proposed was a middle
course, and he would say the Board of Trade
should nominate a public auditor every five years. He
trusted the bill would be amended in such a way as to
make it in reality a safeguard to the people. (Hear, hear.)
Mr. G. B. GREGORY would compel directors of in-
surance companies to call meetings not only of sharo-
holders but also of policy-holders, Ins object being to put
them on a more substantial footing than that they now
occupied. He also thought that the winding-up of insu-
rance companies should be placed under the machinery of
the Bankruptcy Acts of last session, rather than remain
with the Court of Chancery.
Mr. BOWRING suggested that actuaries, whenever
required,
.should
.1)q uleinhers of the Institute of Actuaries,