The Sun.
London, England, 1869-03-22 00:00:00

OCEAN MAIL CONTRACM.

The select committee appointed by the tiouse of Com-
mons to consider the two Atlantic contracts which had
been entered into by the late Government, of which Mr
Disraeli was the head, held another sitting on Saturday
by special leave of the House. The members present
were Mr. Dent (chairman), Sir Massey Lopes, Mr.
Hamilton, Mr. Graves, Mr. Seeley, and Mr. Greaves.
The question demanding inquiry was whether two
contracts made between the Treasury and the Post
Office and Mr. Cunard and Mr. Inman for the
conveyance of the American mails at a cost of
£120,000 per annum should be ratified by the present
Government. An immense mass of evidence has been
given—Mr. Ward Hunt, the late Chancellor of the
Exchequer, and Mr. Scudamore, of the General Post
Office, being amongst the witnesses examined - from
which it appeared that when the Post Office
asked for tenders for the conveyance of the mails
at the expiration of the former contract, Messrs.
Cunard and Mr. Inman refused to send in a price, but
after certain negotiations the present contracts were
made, it being ngrced, in accordance with the custom of
the House, that they should be laid on the table for a
month before final settlement. The Conservative Govern-
ment going out of office, it devolved on their successors to
complete or repudiate them. Hence the committee,
the importance of whose labours may be esti-
mated by the fact that if it he decided to throw over
the contracts, the country will in a few days be without
any settled arrangement for the conveyance of Ur
American mails. Amongst the witnesses examined
was Mr. Burn, the representative of Messrs. Cunard and
Co., who raid that in 1867 surprise was expressed that
they had not tendered for the conveyance of the mails on
the forms put forth by the Post Office. After
ah interview with the Treasury and the Post
Office, a provisional arrangement was made to carry
the mails for a year for £O,OOO. At the close of the
year 1868 the Partners in the firm of Cunard and Co.
made an arrangement with Mr. Inman to send in a joint
offer to the Government to take the mails for £120,000 per
annum. This, in the opinion of the witness, was a lower
sum than ought to have been named, and had there been
the slightest idea that the subject of the contracts would
have been reopened, they would never have been made.
Were the contracts not carried out, great expense and
trouble would accrue to his company, as they had made
arrangements for building several larger ships for the
purpose of efficiently performing work they had under-
taken to do. The witness, in reply to questions from the
various members of the committee, further stated that it
had never happened in all the transactions of his company
with Governments that a contract left on the portfolio of one
Administration Lad 1 een repudiated by the successive
Government, and expressed the opinion that if the pre-
sent contracts were not ratified, the Post Office
authorities Iv( uld have great difficulty in getting in any
tenders from private firms, on account of the bad faith
kept by the Government. His own firm would never
tender again. Mr. Inman, National Ship Company, was
also examined by the committee, and described the inter-
view which had been referred to by Mr. Burn, and the
results which had followed from it. He generally
concurred in the views expressed by the third witness,
and, like him, did not believe that there was anything in
the way of pecuniary advantage to be got out of the
contract. The committee adjourned till to-day.

THE COX3ECEATION OF MR. MACE,ORIE.

ECONOMIC LIFE ASSURAATIE SOCIETY.

The ninth Quinquennial Court was held on Saturday
at Radley's Hotel ; Mr Barnett, M.l), in the chair.
Aftf r the passing of some formal resolutions, Mr.
Downes, the actuary, read the Quinquennial Report 94
follows:
The directors oF the Economic Life Assurance society
have the satisfectiou of presenting to its mernb 3rs a rerrt
.t
of the affairs of the society, as they appeared on the
December last, after a full investigation of the business
during the preceding five years, which complete the ninth
quinciummium. Since the last division, in 1864,. 2,*zua
policies, assuring £2,062,573, have been issued, glY'ugthae
annual average of 453 policies of £9lO each. During yr
last five years the sum of £e6,630 has been received in ve_
premiums, being at the rate of £13,326 a year. The total
income from premiums, which in 1861 was £214,104, now
ne
amounts to £228,883, indicating an average ann!uu
crease of £2,J46, after allowing for loss of income
from discontinued policies; while the gross income from
all sources has increased at the rate of £6,100 per an°
years 1..1.irr.
85
Claims have arisen during the five on 1,037 rhc!
assuring £811,303, and carrying bonuses to the amount of
£198,089. These claims are £4l 134 in excess of the es"
pectation. In addition to the bonuses on policies VP!:
which claims have arisen, the sum of £83,861 has bleu
paid as hones in other ways, such as in reduction of bonus
liability by cash payment, reduction of premium, purchasetb
Jtc., making a total of £281,953. In the valuation 0
,r
assets a sufficient margin has been allowed, as on fernier
occasions, for a possible fluctuation of the public securities'
and in regard to the liabilities, so much only
actually isk
has been taken into account as represents the
.eS
on life. The remaining portion provides for the e,lPen'be
of management, and accumulates to form the sun:nus. to
dealt with at the future divisions of profit. By this
ar-
rangement, old and new assurers contribute rateably ito
:,
the expense of management, and no profit is declared by
anticipation. The assets, consisting of funded properly,
mortgages, life interests, and reversions, the oT°' Yoe
of therenum
ro
raises, premiums duo on 31st December (since paid), i
rest accrued on investments, balance at banker and
_a_
hand, amount to £2,665,544 12s. 3d. The liabilities, con-
sisting of the values of policies and the bonuses already
declared, claims accrued in 1868 but due in 1869, COnls3To
sin, taxes, and sundry small accounts, amount to
£2,336,870 17s. 6d. There is, therefore, after In 1673
provision for every known liability, a surplus of .Z 37 '9d.
I,ls. 9d. The directors recommend that
..£308,6/ 3 les•
of this surplus be appropriated as absolute bonus in re-
version ; and that the remainin sum of £s
20
nel! “f
...000 he:A.
e.
Lined for the payment of annual, contingent,
tional bonuses. It is further recommended that ot!trui
this sum of .£20,000 an annual contingent bonus of
per cent, per annum be added to the absolute bobeauji
on such policies, now entitled to participate, as 6;o
rd,
become claims during the current quinquennial 13°r` e
viz. :—On policies which become claims in 1869 e ,P
cent. on sum assured ; on policies which become claims to
1870, £2 per cent. on sum assured ; on policies which be-
come claims in 1871, £3 per cent. on sum assured; 00
policies which become claims in 1872, £4 per cent on..s u'
assured ; on policies which become claims in 1873, S 3 per
n..
cent. on sum assured. To time policies which are o° t:af
titled to participate in the present bonus, by reefluent,
five annual premiums not having been paid upon them, the
but on which claims may arise after the payment of the
fifth annual premium and before the next quinqn3,n,ike
investigation, the directors propose to add a bonus 01. '
',mount as if five annual premiums had been paid prtovcr,,tiol
the present division. The sum of £308,673 14s. 9d:
~111,
X" 'i!ed;
produce reversionary bonuses amounting to
yielding a percentage from 4 to 31 on the sums assured,'
and a percentage ranging from 22 to 189 on the pren,r,,,a
received in respect of which the bonus is allotted. .i-tte
same options are offered as at the last division, and no a
hones at present added may be commuted either
present money payment; to a reduction of theldiac_
re-
'mums for five years only ; or to 3 re
life.
!ion of the premiums for the remainder of
of
The society now assures by 9,576 policies the sum
to
£8,670,625, and has an assurance fund amoununmeoo
£2,618,531 le's. 6d., and an annual income of £3,38,e •
• h re-
The directors regard the state of the society,
woin.Sebt. ference to capital and income, as well as the K
expenses, as highly satisfactory ; while the largo nn‘,..tiust
of assurances in force forms an adequate protection ,
recee
loss from any deviation from the aveiage rate of y the
tality. In closing this report, the directors beg leaaf
eoug eitulato the policyholders on the condition
saw
affairs. of. the society as now set forth, and at
tifiAr eed
time to impress on thorn they are all personally In— _cola
both wit, _
in endeavouring to extend the business of the 800
Life Assurance Society.
The CHAIRMAN, in moving the adoption of the. report,
observed that the investigation of the assets and liabilities
had been trade on the same principle as heretofore, and
..the
on
the basis of the deed of settlement. In some et
items there was a decrease, while in others there wag
an increase. There was no reason, however, tea
fuaYl.
pose that the decrease was any indication of
_face.
ling off in the continued prosperity of the I',
which
There W3S no doubt that the calculations on vnithat
their business was founded were sound, and it
the position of the office was as safe and secure es
o
had over been. Tho decrease in the number. of P.el.idiee..
was consequent probably upon the severe commercial de
pression which had prevailed during the past three years,;s;
and thus limiting the means of commercial men—
to which they chiefly looked as insurers. He did not athe
competition that they had suffered any serious loss fr0m.130..
competition of other offices. There had been unquestwoa
ably keen competition ; but they had been ably to k„01.
et
the even tenour of their way, not taking doubttul,go:..
proceeding upon the same principles of careful n1:110'
meat as they had pursued from the outset, assuring f;Jii
carefully selected lives. The fluctuations which bad. t 4.
place in the five years were nothing more than m.igtu
the
t he
expected in a business depending upon averages ;
test of time showed that, taking a long series of veers,
coy
certain results might be looked for with tolerable °
tainty. Tho number of policies issued in the five years
ending 1863 was 2,266, and in the last live ye`"g
2,041, or 375 less. The average annual flambe,' t
been in the last quinquennial period 453 against
528 in the previous one, but the anneal average affle_esi
of the policies had been greater, viz., £9lO as against t‘hl 0
showing that the class of business was batter, 80...048
total amount had been £2,062,573, against £2,°°6 there
the previous period, or about £13,000 more, so
was a compensation in the greater amount, although
_tars
number was less. The new premiums in the fiv.enYi°B6l
had also been less ; but the total premiums which I_,.arly
were £214,104 had risen to £228,833, or r
tham,.
.he
£229,000 at the end of the past year. This proved the
°f
they were still progressing, and when, the effects.sa
the commercial crisis, and other circurustauG.e
_v_sed
fluctuating nature which had affected them !iiiduPsra
away, there was reason to believe that their business
would extend more rapidly. They must
.not,
u,„
ebb
calculate upon a continuous flood—the tide wO.
and flow with life assurance as with everythweg of
and they must be content when they
any period that the water was higher than at the 60,10 d
increased
the The gross incomo from all sources had
to th©
the extent of £30,000 in five years. With regard.called an
claims, they had experienced what the actuaries
that n
saw at the a
n..
extra high wave of mortality, and the result was tns to
for the first time at any quinquennial period theyn bade
report that the total amount of claims
of the amount expected. Hitherto they bad f
titer than
duration of life amongst their policy holders gee „41,000
paid was
found the
was anticipated, but this time they had had to pal
mere than expected. There was, however., 011:n(1:utile
tory circumstance, that, whereas at one time
excess was reduced at the end of the period
five years they were £90,000 beyond the c.alculat.zioinl.,otoho:
estimate'
and at the end of the next five years he hopetS
that the rate of mortality had been below
was in the nature of the constitution of the society
The must, however, expect the claims tothinecreegeth; that
clainis
they should do so, for as the older policies becatnes. The
they necessarily carried with them larger bonudettring
the
fact was almost marvellous that they had paid time
to report
five years £1,040,000 to the public, and at the aTulhe
had a surplus of £328,000 beyond. (Cheers.)
hile the
pected claims last year were about £190,000, w
this
actual amount that accrued was £lO,OOO less, and
year Mr. Downes, the actuary, expected that they 111,1120
have £215,000 to pay, besides the new bonns:atisfe„
statement, he submitted, as to the past was
tory (hear, hear)—and there was every grounal°__scit
lieving that time low rate of premium the society e.lar
and the solid basis on which it stood, would c.ontiVae to
noes
attract business in the future. They bad paid. h°
veer.
on the claims which had arisen during the 1175-rvery
£198,089, and the previous five years
large difference ; and in addition to the bonuses ersenliTres,
claims they had paid in cash, in reduction of 1)
ready money bonuses to the amount of £83,8. 64,_.
£281,953. During the past year they 116,000
tug
upon
paid fl °
bonus upon one policy of £2,000. The nutubor
at present in existence was 9,576, and the total
but the
assured .£8,670,625. A very large sum, no doubt, but
present value of it, according to the actuary's ca 544 i
was £2,336,870, against which they had assets.. X2,6i,D,,u.;034
being a surplus of £328,673 beyond the liability.t. Leu'eeir.
hoar.) Of this they set aside £20,000 to meet h
the current
tiugont bonus on policies falling in during
five years, and divided the rest among the
Tho insurance fund the directors believed they
always
vested in the safest possible manner. They had a
to a
rather preferred small interest with great security..oors.)
high rate of interest with indifferent security. (Gn ;al
•nquenn'
Acting on a suggestion made at the last gni
to the
meeting, the board had turned their attention to ja
policyh:ld.
subject; and by carefully investing their
hand had in some degree been able to iner_e..asset
the rate of interest it produced, but as
.theyn 0,71.1..
always keep a considerable sum invested
order
ment stocks, convertible at a moment's notice ino_....eet
to meet claims as they arose, they could untve7,e.
to place out their money at ft highly remunerative r
Besides the Government stocks, they had mortg.aguijear.
laud, rates, and other securities, of au equally sate.vae
actor. The workiug expenses were by no means extra
gant. They took care that the business of the offieu.
na
properly and well done, but they did not la..inc.h tuL,,,et
needless expenditure, or pay enormous commission t
The
bus:ncss, as some offices did, and which, in . effect,
The
equivalent to lowering the premiums received._
won
premiums wore fixed upon certain ascertained results
would
a certain rate of expenditure, to exceed 'Wilton
ease,
upset the whole calculation. The entire office exP„
to
I;were under three per cent., and including everythito
lit:le more. The amount paid to agents for com'n
at the ordinary rate had been £38,000, and £ll4OOO
had been paid for income tax during the five
report,3"
and
In conclusion, Ile invited discussion on the
t
stated his readiness to give any explanation that 111 g"
t
be demanded.
Dr. DALRYMPLE inquired whether any change Wes eon^
litioS
templated in the policy of the office in granting faci