New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1853-03-28


,ecmed saroat Professor siimap retsrns;
Amount Insured BY eIistns poteies SO 70 20
Presept value Of eIi.iins polcs,s;s 'oS
Presnt value 20 the COMPANY OF future preni- 49,. -.
49,. ~ ss.e.. ..................... l505l9 IS
This Company has been IN operation but few
years and possible that its sssets exceed the actual
net value Of its poces they would be computed by
the ordinary arithmetic Of hfe-contngencies NJ the
cu,tonary rates. but the Mr. "Noyes, who s returned
ss the peron who made the calculations must either
have re.orted to some higher cal ;ulus to show that
the present value" Of its liabilities s the n<gatrs
qon,y-s45le02s or else be has the singular frank
to confess that the Company al present worth
sloe 1874 80 LEES than nothing can divine no third
solution OF the riddle.
Then another company, several Of whose officers
have every reason to respect and whose returns con-
sidernz that it was chartered in 1850 show to be tr
umphantly solvent and prosperous ssrely puzzles my
arithmetic BY the handy work of iu actuary (or actu-
AIRY pro tmi) 1t is the United States Company OF
New York and answers the main questions Of the Law
ssfoows:
Amount insured by existing policies 81, l6606e %
Present value Of existing policies 439s3i %
PTesenvalue 10 the Co ofiuture prems on do 81 % 90
Whether the second sum above is the present value
of the policies the present value Of the sums az
vency But illustrate the curiosity or curious Jsi
city of this return let make the not very outrageous
suppositon that the whole amount insured is by
policy. Then the Company, and Of course the policy
not being oue three years of age and will suppose
il not lees if the second of the return is e net
ralps Of the policy, will say By the combined ex-
perience rate Of mortality either at three or four per
cent then the holder must be 90 or 81 years of age
N If nh ma no of
octogenerians On the other hand il the second
be either the net gross value Of the amount
assured then the single policy holder in question, at
the rates of mortality and interest must be less
than ten years of agel Does the Company insure in
fsntsi Or what does the learned person who made
the calculations" mann From his good old Neither
lands name judge he ia Yankee, and has therefore
no right TO be guessing.
Cut me short If am too tedious butt this connec
ton cannot help saying that the "actuary profes
sion, like the Egyptian priesthood, seems to have
great taste for mystery. 1t regularly imported
along with the Life Insurance business from the mother
country where ii has been cultivated in a congenial
coil for generations But doubt its thriving here az
ter ii is duly recognized by Life Insurance Directors
aud pOlicy-holders ! have before me very curious
avowsl oft from the other eide of the water II in
report Of the meeting Of the Institute OF Actuares which
took place at the Societys rooms ST. James Square,
London, Jan 81 lSj3, the subject of valuation Of liza
bies and division of surplus being under considera
ton Mr. Ferren, having the floor, said, among 9th
things:
-"There were certain subjects which it was impo.-
sible 10 really pOpusrze and all purely mathematical
subjects were OF this class Hence true Life AZ uTance
valuation matter and confidence in the kill
OF the aiEan selected for the purpose and can be really
achieved by no other means To prepare such class
Of professional men from time to time rs the proper
formation OF institute Of actuares, and tn be
hoped that in the discussion of details the progress
siye character Of sctuarys knowledge would not be
lesf because baSed the doctrine Of probabli
ty one OF the most difficult within the range Of mathe
matics shown, by how il has almost overtesed
the skil of such analysts La Place, Passon, and
own DeMorgsn."
there be any truth in the rappngs" the spirit Of
Ls Place at any rate should give this professional gen
teman loud whack, for, far as the business Of
nuites and assurance lives is concerned. the doc
trine of probability tests nothing more than common
sense and the knowledge Of vulgar fractions Loga-
rithms convenient in operation, and algebraic
tston equally for the expression and transmutaton
Of the formulas rules that pertain to the subject
though oftener used for the hierogphc purposes Of
the "professon." The whole science be- fully
couprehended without the OF either. In country
where the purely mathematical" ground rules OF
icies is also to be So soon the newspapers
have thrown their proper light on the nature Of the
case. When the shrewd business men who direct
Life Offices decide and nobody Is better qualified
to do it, what census taken with that view, but repre-
cents the law of mortality which is likely prevail
among assured lives, and what will be the minimum
rate of interest for they have only to pay the COM
mencng generation once for ALL for the drudgery Of
computing tables like interest tables, upon these data,
which will show the value of policy for every age OF
the assured, and every age which the policy has a
chance Of obtaining under the tables, and they will
have further during hs century for professional
mathematical sctusnes any more than for astrologers
to cast the horoscopes of their applicants for insurance
and not quite much. Banks and Fire Insurance
Offices get along without AerosyPAic actuaries aud
equally well might Lie Insurance 0fhees-vih IL,
proper tools. And indeed, am eredbly informed tbs.
u number of the Life Officers have already entered
into an efectusl arrangement to secure such tools
There is no business knowledge to the webeing Of
society which cannot be popE!dri;ed among isteii
gent prble; let us see II there is W.