The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-08-25
INSURANCE..
"Who Pays" Indeed .

To THE EDITOR OF THE HERALD
Mr. Elizur Wright, consulting actuary'of Bos-
lists in the controversy Mr.. Sheppard Romans is
endeavOrng TO keep alive against the Mutual Life
Insurance Company, and reiterates the charge that
Mr.. Romans became disconnected from the com
pany by reason OF his refusal to audit certain &C
counts he could not approve; Il is now time that
this question should be settled upon Its merits,
and the following facts of long record will afford
the public the means Of doing it,
dit was presented to the Board November II, 1869.
Mr.. Romans continued Actuary Of the company
until the 18Th day ofJanuary 1871 fourteen months
Alter the refusal for which, he alleges he re-
moved.
On the latter date, having resigned his position
as Actuary, he was appointed Consulting A0tuary
at half his previous salary, and continued TO hold
that position until his resignation thereon under
the following crcumstances:-On the 10th day OF
October 1872, the Board unanimously abolished the
Office OF Consulting Aotuary, to take effect on the
3lst day OF December and Mr.. Romans was imme-
diatey informed thereof On the 4th of December,
1872 the Intervening time having been largely spent
by him in ruitess endeavors by letter ana personal
interviews with henderson, the Board to obtain
reconsideration OF its action, Mr.. Romans, conci-
IDENTIFY with the first meeting OF the representatives
OF companies, held at his private Ofice, TO oppose
the reduction OF rates then in contemplation by the
Trustees, sent in his resignation. He omitted to
his salary for the first iour days of December,
until last March, when, on mis- written application,
the omission was rectliied by this company.
II Will thus be seen that Nh. Romans was con-
tinued as Actuary or Consulting Actuary Tor three
the cause Of his removal, and that mis- censure of
the President and trustees was only made public
after his pay was stopped, and after he had openly
enlisted In the service OF companies united in &C
tive opposition to the Mutual Lie.
SO much for his assertion that he was removed
for refusing to audit false account. II was q
pure afterthougnt, and is without a shadow Of
truth.
2. Early in the year 1869 discussion was had
among the officers respecting what was known as
cont ended that Mr.. Homans method Of calculating
these credits was wrong In principle and contrary
to the charter OF the company; and by tneir drec-
suspended, pending examination OF the question,
and by necessary consequence the company's
accounts contained only such payments for post
norton dividends as were not suspended under
This was tie objection and the only objection
made by Mr.. Romans to the correctness OF the CON-
panys accounts, and it was the statement for the
quarter ending November, 1883, which he declined
to audit, and for that reason only.
The question at issue relative to such account was
purely o technical one. IL involved no benefit or
to charge that sucn account was fraud upon
policy holders Is wild and wicked.
Moreover, Mr.. Romans did not hesitate to APP
pend the customary audit TO five subsequent &C
counts which contained the Identical items objected
to, entered IN precisely the same manner; and the
annual statement OF the company, which includes
the quarterly statement which was unaudted,
bears the following certificate = -
Ihaye carefully examined the foregoing state
SHEPPARD ROMANS, Actuary.
BY the executive officers was sustained by the
counsel OF the company, by actuarial experts and
by the Board Of Trustees.
REAL CAUSE OF MR.. HOMANS REMOVAL.
3. In December, 1870 more than year after the
incident relative to auditing the account, ad-
vertlsement was widely published In the news
papers by the st. Louis Mutual Life Insurance
Company, containing letter OF endorsement from
Mr.. Honans In which the following passage 0c-
curS:-
''From the high rate OF interest to be derived
from first class investments in the West, the all
vantages offered by their local companies If wet
managed, are very great, 80 much so that nave
myself taken out policy OF $4,000 in the st. Louis
Mutual SHEPPARD ROMANS, Actuary.n
AT this time, after fifteen years of service, she
only policy held by Mr.. Romans ON his life Ia tn,
Mutual Lie was a survlvorshlp annuity OF $500.
On the 2lst OF December, 1870, the President
after considering the eject such an endorsemen
| might have upon the Insurance business OF thi
| company generally, called the attention OF tn
| Committee on Finance to the letter reierrem 10
and the same was, after discussion, referred TO tn
| Board fN action.
At regular meeting OF the Board, on the sam,
day, committee, consisting oil Messrs. OliVer
Palmer, Richard Patrick, samuel d. BabcoCk, Alex
| ander n. Rice and Jonn Wadswortb, was appointed
| to communicate with Mr.. HOmans examine mt'
| the facts and report thereon To the Board. -,
At meeting OF the Finance committee, hei'
on the 28th OF December. 1870 another auveI Ise
ment was presented containing similar iettcr ~
favor OF the Lite Association OF America anu ~
commentator OF certaip plan Of tlht cVn'Va'N