The Sun.
London, England, 1848-07-01 00:00:00

THE SUN, LONDON, SATURDAY

PROVIDENT CLERKS' MUTUAL

BENEFIT ASSOCIATION.

A special meeting of the members of this flourishing
society was held last evening, at 6 o'clock, at the London
Tavern, at the instance of the directors, in order to enable

them to state the amount of profits to which the respec-
tive assurers are entitled.

Among those present were R. H. Jones, Esq., Chair-
man; J. W. Welsh, Esq., Deputy Chairman; W. Ratray,
Esq., Consulting Actuary; W. J. Jordan, Esq.; R.
Price, Esq ; W. S. Sawtell, Esq.; S. Notley, Esq.; J.
J. Iselin, Esq.; S. Jepps, Esq.; G. Thomas, Esq.
Mr. It. li. JONES (the Chairman of the Board of
Management) occupied the chair. He said—Gentlemen,
it may be iu the recollection of all, or at least of most
of you present, that at the last annual meeting, held on
the 17th of January, we announced our intention of call-
ing a meeting at an early period, for the purpose of de-
claring a division of profits for the last seven years,
having previously to that announcement placed in the
hands of the actuaries the data whereby they might make
the necessary calculations. In accordance with that in-
timation we have caused you to meet here today; and
I can assure you it gives me the greatest pleasure and
satisfaction to see so many present, though I must con-
fess I would rather have seen a larger attendance. Siiil
it is gratifying that so many have attended on this in-
teresting occasion. It has been a source of the utmost
gratification to the directors to have received at your
hands, on every occasion on which they have met you,
your cordial approbation of our conduct; but when you
have been made acquainted with the contents of the re-
port, which will be read to you in a few minutes, I think
you will entertain, if possible, increased con-
fidence in us, for we have, as I have said,
to lay before you a satisfactory account of the progress
of the institution; however, that is for you to judge
hereafter. I repeat, that to my mind this is a most in-
teresting occasion, perhaps the most satisfactory occa-
sion on which we have ever assembled, but I think, and
I have no doubt you will agree with me, that I may go
further, and say that we have met ou an occasion which
truly deserves to be characterised as triumphant.—
(Cheers.) I think it is a triumph over that prejudice,
apathy, and indifference which beset the institution in
its early days—a triumph of honest endeavour on the
part of the managers to promote its prosperity.—
(Cheers.) The triumph is one of principle over preju-
dice; in short, to my mind, the results of the working
of the institution, which we are about to lay before you
with the most unfeigned pleasure, is satisfactory in
the extreme.—(Cheers.) I hope you will bear with
me whilst I enter briefly into a detail of the
operations of the society in order to put you in posses-
sion of matters necessary for you to know on an occasion
like this. This association was established, as you are
aware, seven years ego—seven years and six months
reckoning up to the time we have met; but the seventh
year of its establishment terminated on the 31st of Decem-
ber last, during which time we have had to contend with
many difficulties, but confident of the ultimate success
of the institution, we never saw occasion to despair. The
gradual increase in the number of policies issued from
year to year created confidence in our minds that the
time was not far distant when we should meet our re-
ward in the increased prosperity of the institution, and
be thereby enabled to encounter difficulties and
disadvantages which, had it been otherwise, we should
have sunk under. You will, I am sure, excuse me if
I read you a brief account of the progress of the institu-
tion since its commencement, for I am anxious on an
occasion like this to record it.—(Cheers.) In 1841 we
issued 73 policies for 14,3501., at which time our annual
income was only 4981., and our stock but 4501. ; in 1842
we issued 61 policies for 9,250/., our stock was 5501., and
our income 7141. ; 1843, 123 for 16,900/., stock 1,1004
income 1,296/. ; 1844, 110 for 15,9001., stock 1.700/., in-
, come 1,766/. ; 1845, 211 for 33,5201., stock 1,5001., in-
come 2,63sl.—(Cheers)-1846, 374 for 69,2001., stock
2,7001., income 4,841/.—(Cheers)-1847, 417 for
84,450/, stock 2,5001., income 7,36Bl.—(Cheers)—and up
to the present time we have issued 201 policies for
40,786/., our stock amounts to 13,0001., and our income to
B,so3l.—(Much cheering.) Altogether, we have issued
1,570 policies for an ageregate amount of 284,356/.
This statement bears me out in the observation I have
made that this society has gradually progressed,
which is far more satisfactory than rapid progress, be-
cause I apprehend when an institution becomes succes-
ful at once its managers are apt to get indifferent; we
have had to make our way, and that gradual improve-
ment which took place from year to year encouraged us to
renewed exertions—(Hear, hear)—and when the result
of this day's proceedings goes forth to the world, I have
no doubt that the confidence of the members and the
public in the managers will be augmented, if, indeed,
it be not impossible to repose in us a greater amount of
confidence than that with which we have been already
honoured. I am aware that objections have been raised
to some of the principles of the institution, and I have
had individually to combat with them. It is said by
some that the institution does not do all the good
of which it is susceptible; in reply to which I
would say, that every one who joined the association
did so with the rules before him, and therefore if he
became a member under a misconception as to the
objects of the institution, the fault lies with him and not
with us.—(Hear.) I maintain that the institution does
all the good that it can do.—(Hear.) Both branches
are now firmly established ; we have, I may say, the
most unbounded confidence of the members, and the
association is capable of bestowing upon its members
greater advantages than arc to be met with in any other
institution.—(Hear.) I will show you what it has
done, from which you will be enabled to judge what it
can do for the future. When the assurance department
was established, the managers and other friends of the
institution, in order to testify that the association
was in a position to defray any liability
that it might contract, entered into a guarantee for
5,0001. for that purpose; but it has been a dead letter:
it has never been found necessary to fall back upon the
fund even for the smallest amount; and in April last it
expired, and the present position of the institution ren-
ders its renewal wholly unnecessary.—(Cheers.) Since
the establishment of the institution there have been 20
deaths, on account of which claims to the amount of
3,900/. have been paid. Now that is nearly 200/. for
each individual; and just imagine for a moment the vast
good this aid must have conferred upon the families
among whom it was spread.—(Cheers.) I would espe-
cially urge upon clerks and others throughout the
kingdom to avail themselves of the great advantages
offered by this institution.—(Hear, hear.) It is the
duty of every man who has any one dependent
upon him to assure his life, because how many, but for
the aid of assurance, would leave their survivors in a
helpless state of penury.—(Hear, hear.) Supposing on
the average there were four members in each of the
families of the members who were thus assured, which
is a very moderate calculation, upwards of a hundred
individuals have been preserved from want by the life
assurance department of the association alone.—(Hear,
hear.) Notwithstanding these drawbacks, which are,
of course, inherent in all similar institutions, we are en-
abled to present you a satisfactory report, and to tell
you that our income has now arrived at something like
B,ooo4—evincing, I think, the stability and fruitful-
nesst of the institution, and the fair prospect of its obtain-
ing greater prosperity than heretofore. With respect
to the managers, I may be permitted to say that I am
certain e
m and
no
I body oft
thofienydividuals could work harder, or
entertain a greater desire to fulfil the trust reposed in
h
will continue to receive, by an
augmentation of members, additional encouragement to
continue their labours. We trust we shall receive every
possible encouragement that you are enabled to extend
towards us. So long as we are thus aided in our labour
you may depend upon it that we shall never relax them.
I feel on this interesting occasion the greatest satisfac-
tion at the result of the working of the institution, and
I have no doubt similar feelings are entertained by the
original members of the institution, whom I see
around nie.-7-(Hear.) Before I sit down I am anxious
to allude to the advantages offered by the benevolent de-
partment, for the two deparhtmas theents ahreenseovuilneudtissolubly e
united, that if one were taken away, the other would be
—(e means Hear.) What
of accomplishing? We have this
d depart-
mentst destroyed.—(Hear.) o
beenye d.th
year granted 53 loans, amounting altogether to 1,054/.
Since the commencement of this branch in 1844, 191
loans have been granted, amounting in the whole to
3,7741.—(Hear.) Now I know cases in which this timely
aid has been of the most essential service, and many of
the parties thus assisted have expressed to me their grate-
ful thanks for the assistance thus afforded. We have
three clerks and seven widows receiving permanent an-
nuities. These are some of the prominent advantages of
the institution. I will not detain you by enumerating
some of its minor features. The more I know it the
more am I convinced that it is the means of conferring
the most substantial and lasting good. Some trifling
alterations in the rules have taken place ;
for instance, the abolition of the entrance fee
of half a guinea, and the payment of policies
quarterly as well as half-yearly and yearly,
which do not affect the principles of the association,
which I hope never to see altered, because we have
found, from the experience of the working of the insti-
tution for years, that as the association exists it is calcu-
lated to do an immense deal of good; it has been well
tested. As its members increase the sphere of its useful-
ness will be extended, and we may gather from the fact
that its having done good in a limited degree it is calcu-
lated to do good in a great degree.—(Hear.) In ac-
cordance with the rules the affairs of the institution were
placed in the hands of two actuaries, Mr. Griffith Davies
and Mr. William Ratray, being selected for that pur-
pose. I think no one can doubt that the choice of the
directors was judicious. Mr. Davies, without exception,
is one of the most active men to be met with; and the
merits of Mr. Ratray are well-known—he has been con-
nected with us since the commencement, and knows us
as intimately as we know ourselves. Having stated that,
Mr. Ratray would be happy to reply to any questions
that might arise out of the report. He called upon the
Secretary to read that document.
Dr. MULLINDER (the Secretary) then read the report,
of which the following is a succinct abstract:—
" The period having arrived for making the first divi
sion of profits on the business transacted by the associa-
tion, the board of management selected the eminent
Griffith Davis, Esq., and their consulting actuary, W.
Ratray, Esq., to make the necessary calculations and
investigations, and, in conformitywith Rule 32, furnished
these gentlemen with all the requisite data down to the
31st Dec., 1847.
" The operations of the association commenced in
1840, the first policy having been issued on the 17th of
March, 1841, and, as according to the rule above-men-
tioned, the first division of profits should be declared in
1848, and two-thirds of the profits are to be divided
among such members as have been assured five years,
the holders of all policies issued up to the 31st of Dec.,
1842, will participate in the present division. The
board of management having unanimously adopted the
report of these eminent actuaries (which was read at
length to the meeting, and was most elaborately and
carefully prepared and illustrated by various tables), had
the pleasure of informing the members, that after the
I interests of all the contributors to the association (or

assurers), and of all persons having claims thereon in
' possession or in expectancy, have been fairlydealt with
and secured, and appropriating one-third or the profits, or
7111. 6s. 10d. to the benevolent fund of the, association,
the holders of all policies of five years standing are en-
titled to a reversionary bonus of one pound per cent.
per annum for all the time their policies have been
in existence, which bonus is equivalent on the average
to about thirty-three per cent. on the premiums paid by
them up to the 31st December, 1847. That the board
believe that the profits realised by the members of this
association will be found to be equal to, if they do not
exceed, those of a great majority of life assurance so-
cieties, and at the next division, which %yin take place
after the 31st December, 1852, it is hoped' from the in-
creased amount of business, and the reduction of ex-
penses consequent on their being spread over a larger
number of policies, a still more satisfactory result will
be shown ; that in a few days a circular would be ad-
dressed to all the members entitled to a boilers, s) that
each may make his election as to the mode in 'which he
individually wishes to receive his proportion (e,,ther
an
addition to the policy, reduction of premium, or present
cash payment).
" The report then congratulated the members ov such
an encouraging state of affairs, and earnestly called on* them
to make it known among their friends, and to exec ciso
all their influence in introducing new members, so the
not only may the present high position of the associa-
tion be maintained but most materially increased and
improved."
The report was much applauded.
Mr. HOOPER considered that Rule 32 should be altered,
as it operated injuriously to the institution ; it prevented
some of the assurers from participating in the profits
for nine years, and would cause new assurers to seek
other offices which divided theirprofits oftener ; he would
suggest that a special meeting should be called to con-
sider the matter.

The CHAIRMAN said it was always injudicious to alter
the rules of a society soon after its establishment. It
might have the very contrary effect to that intended, as
the public seeing that the rules were altered from time
to time, according to the caprice of some of the mem-
bers (be did not use the term in an offensive sense)
would hesitate to join it. In this institution the relatives
of an assurer of the class referred to would receive the
equivalent value of the policy sooner than in any other
office. Perhaps Mr. Ratray would wish to explain this
more fully.
Mr. RATRAY thought the rule a very wholesome one.
Some offices—the Equitable, for instance—divided its
profits but once in ten yars. Institutions started with
certain rules, and parties joining them did so in accord-
ance with them.

Mr. HOOPER said those whom he had induced to join
the institution agreed with him in saying they would get
profits for one or more years at the National Provident,
and other offices.

Mr. PBICE said a reservation was made for those who
did not participate in the profits at present. They should
recollect that if they did no; divide so much, they kept
a better capital in hand to meet contingencies.
Mr. RATRAY said the suggestion could be better un-
deretood at the end of the next fire years than at present
—then, perhaps, they would be in a position to divide
every three years; indeed, he hoped the success of the
institution would be such as to enable it to divide every
year.—(Hear, hear.) The present assured business did
not justify a departure from the rule. If they had
an income of 80,0001., instead of 8,0001, he should agree
with the suggestion; let them bear in mind that seven
years was not a great test of an office, and that they should
no alter rules which had been in existence so short a
time.

Mr. H. Smrrist sympathised very much with the obser-
tions of Mr. Hooper. Be was in favour of a quinquen-
nial division, because expense was saved ; when the
profits were divided all should come in for their share.—
(Hear, hear.) It was a clear injustice to deprive persons
who bad not been assured five years of any share in the
profits. He would, therefore, most cordially second the
suggestion of the Hon. Member, and recommend the
board of management to take into their consideration
the propriety of altering the rule. He wished to know
whether there was any doubt in the minds of the ac-
tuaries as to the construction of that rule ; because it
said that the profits were to be divided among all the
members, and in a subsequent clause there was a limita-
tion, with regard to the participation of profits, to those
who had been assurers five years.
Mr. RATRAY said the observations he had made
applied to the periodical distribution of the profits and
not to the question, as to who the parties were that were
entitled to participate in them. For himself, however,
ho considered it would be very desirable to admit those
who bad been more recently assured.—(Hear, hear.)
He would not go so far as to say that assurers of only
one year's standing should participate in the profits, but
the period might prudently be limited to two or three
years. Yet, still he was of opinion that five years
should elapse before they made any such alteration, for
the reason stated in the report, viz., that 1,8241. 10s. 10d.
would be required to give a bonus of 1/. per cent. to
those who had assured within the last five years,
and to meet that the association had only about
1,0001. in hand, so that they would require about
8001. more to make up the necessary amount.
He and Dr. Griffith Davies had maturely con-
sidered the subject, and taking into account the
superior and very economical manner in which
the association had been hitherto managed, they
entertained no doubt whatever that a bonus of 11.
per cent. would be received at the end of the five years.
It would be advisable therefore to wait another five
years, by which time the society would be placed on a
more firm footing, and they would be better enabled to
ruu the risk of making fresh arrangements. Ever since
its establishment the society had been gradually gaining
in strength and power. In 1845 they issued 178 policies;
in 1846 they issued 333 ; in 1847 they issued 384 ; and
no doubt in 1848 the number would be increased to 500
or more.—(Cheers.) He concluded by again stating it
was his opinion that they should wait five years in order
to recover themselves from the drawbacks which always
attended the first workings of such a society as theirs.
Mr. Pumas/ said it appeared to him that it would be
possible to give all the assurers up to the present
time, or within twelve months of it, a bonus upon their
premiums of 11. per cent. In order to benefit the as-
sured for five years and upwards, all who had
assured at a later period were put off for a period of five
years, and a great portion of them, therefore, would not
participate in the profits of the association at all.
Mr. RATRAY said that arose from the working of the
rule, and net from any fault in calculation on the part of
the actuaries.

Mr. PITMAN trusted, in that case, that the board of
management would see the importance of making an
alteration in the rule hereafter. It was obvious, if they
had to wait five years before all the assurers were brought
alike, that parties would go to other offices where they
could participate in the profits the first year, and con-
sequently the society would sustain a great loss. He
was himself an assured for more than four years, and
not being qualified to partake of the present division,
would lose much individually.
Mr. RATRAY—At the next division you will have nine
payments instead of five.
Mr. PITMAN—Yes, but it will lie in the hands of the
society until then.
Mr. RATRAY—The money will not be laying idle, but
will be lent out at interest by the society.
Mr. PITMAN thought he might be able to lay it out to
more advantage himself.—(Laughter.) Theirs was a
mutual society for the exclusive benefit of one another,
and they ought all to be placed on the same footing.
Mr. ItATRAY said it was not altogether a mutual office,
for if that were the case there was sufficient profit to
divide one per cent., but they gave over 7001. to the
benevolent fund, and therefore only participated in
their contributions to the extent of one-third, the other
going to the fund.
Mr. PITMAN said he should conclude his observations
by asking the Chairman to put the question, whether or
not members, from the date of their policy, should parti-
cipate in the profits?
The CHAIRMAN said it was only competent fora mem-
ber to make a suggestion at that meeting. The object
of the directors in calling them together was to make
them thoroughly acquainted with every particular con-
nected with the society, but more especially to know
what the feelings and sentiments of the members were
upon various matters brought under discussion.
Mr. HOOPER said if the division was to be made only
among those who had been members for fiveyears it would
involve the necessity of some waiting nine years ; and
besides, if a person died in the intermediate period, there
would be no division of profits payable on his policy. If
they provided for such a contingency, he was of opinion
that every object would be met. _

Mr. RATEAY said the object in taking fire years was
to enable them to make an average of the profits, for in
one year there might be a great profit, and in another a
great loss.
Mr. lseLisr said, with the permission of the Chair-
man, he would take the liberty of delivering a few of his
sentiments on the subject before the meeting. The vice
of the present day, with regard to life assurance,
he said, was a greedy anticipation of what
the result would be upon a calculation of the
profits over an average of years. In making that obser-
vation he meant no offence to those gentlemen who de-
sired the present calculation to be based upon a nearer
approximation than fiveyears, but simply to show that the
real intrinsic value of Tile assurance had never been fully
appreciated by the public. At the present time life as-
surance, considering the general intelligence of this glo-
rious nation, was immensely below par compared with
the population of the country, and the number of those
who did insure their lives for the benefit of themselves,
their families, their creditors, or for other purposes in- •
telligible to gentlemen engaged in commercial pursuits,
was immensely too small. Consequently life assurance
was now largely on the increase, and he begged to say
that they would scarcely expect Os arrive at any
great benefit without being liable, in the pursuit
of it, to certain imperfections which were insepa-
rable from common humanity. For instance,
the competition among assurance companies, each offer-
ing greater advantages than the other, had in a great
degree crippled the efforts of young companies to esta-
blish themselves. Ile made those few observations in
order that gentlemen might not be misled, and take that
which was cheap but not durable. The society had been
found to work most satisfactorily, and by the appropria-
tion of a portion of the profits to the benevolent fund,
they were enabled to relieve casual distress, as well as
pay the premiums which became due at death. If any
member could suggest any rule or alteration of any rule
that would tend to make the system • upon which the
society was managed more perfect and complete, be
could assure him that no body of persons would be more
anxious to effect such an object than the present board
of directors. But it was absurd and fallacious to suppose
that the casualties attendant upon the lives which were
assured in the society could be calculated over one year
so as to take a correct average.
Mr. GOSBELL did not think any member would want
anything short of a quinquennial division; but at the
same time he must say that if a person went to other