New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-08-25
4" WHO PAYS" INDEED!
TO the Editor OF The Tribune.

DIR hi' bhHuT wright, q consulting Actu-
airy of Boston, under the caption "who Pays 2" enters
the lists IN the controversy Mr.. Sheppard Romans
endeavoring 10 keep alive against The Mutual Life In
surance Company and reierates the charge that Mr..
Romans became disconnected FROM the Company by
OF his refusal to audit certain could
not approve. 1t Snow time tina. this question should
be settled upon Its merits, and the following facts Of
long record VIII afford the public the Of doing 1t
1.-The account which Mr. Romans refused to audit
was presented 10 the Board November H. 1859
MI Romans continued Aetuary OF the Company until
the 18th day OF January 1871 fourteen months after the
refusal for which, he alleges, he was removed.
On the latter date, having resigned his position
Actuary he was appointed Consulting Actuary at half
his previous salary and continued to hold that position
until his resignation thereof under the following circum
on the 10th day OF October IsT2 the Board
unanimously abolished the Office OF Consulting Actuary
TO take effect on the 3lst day OF December Mr. Ho
mans Immediately informed thereof On the 4th OF
December. 1872 the intervening time having been
largely spent by him 10 fruess endesvors by letter
and personal interviews with members OF the Board
obtain reconsideration Of its action, Mr.. Homans
coincidently with the first meeting Of the representa-
tves Of Companies held at his private office, oppose
the reduction OF rates then in contemplation by the
Trustees sent IN his resignation He omitted to draw
ms salary for the first four days of December until last
March, when, on his written application the omission
rectifed by this Company.
1t will thus be seen that Mr. Romans was continued
Aouary or Consulting Actuary three years after
the occurrence which he alleges the OF his
removal and that his censure OF the President and
Trustees only made public after his pay was
stopped and after he had openly enlisted the service
Of companies united in active opposition to The Mutual
Life.
So much for bis assertion that he removed for
refusing audit false 1t pure after
thought, and is without q shadow Of truth.
THE USAUDnED ACCOUNT.
2. Early in the year 1869, discussion had among
the officers respecting what known postmortem
dividends The executive officers contended that Mr..
Honans's method OF calculating these credits
wrong in principle and contrary the charter Of the
Company and by their direction the payment of the
credits calculated suspended. pending examina
OF the question: and by necessary consequence the
COmpanys accounts contained only such payments for
post-mortem dividends suspended under the
| ruling adopted
This was the objection, aud the only objection, made
by Mr. Romans TO the correctness OF the Company's
accounts and it the Statement for the Quarter end
ing November 1862 which he declined to audit and for
that reason only.
The question at issue relative to such account was
purely technical one IL involved benefit hope
of benefit any officer Of the Company and to charge
thatsuch account fraud upon policy holders is
wild and wicked
Moreover, Romans did not hesitate to append the
tanned the Identical items objected to, entered In pre-
ciscy came manner; and the Annual Statement Of
the Company, which includes tho quarterly statement
which unaudited, bears the following eerthcate
" December 81, 1869.
~ have carefully examined the foregoing statement,
and find the correct.
"sHEPPARD HoaASs, Actuary.'
It may be added that the principle contended for by
the Executive officers sustained by the Counsel OF
the Company by actuarial experts and by the Board of
Trustees.
REAL CAUSE OF Mr.. HoNANss REMOVAL
g. In December 1870 more than a year after the Incl
dent relative to auditing the account advertisement
was widely published in the newspapers by the ST.
Louis Mutual Life Insurance Company, containing
letter OF Endorsement from Mr.. Romans, In which the
following passage occurs:
"From the high rate of interest to be derived from
rst-class Investments in the West, the advantages
offered by their local companies if well managed, are
very great much that have myself taken policy
OF ten thousand dollars in the St. Louis Mutual.
SHEPPARD HoMASs, Actuary."
At that time, after fifteen years Of service the only
policy held by Mr.. Romans on his life In the Mutual
Life was survvorship annuity Of five hundred dollars.
On the 2s of December 1870 the President after con-
sdering the effect such an Endorsement might have
upon the insurance business OF this Company generally
called the attention OF the Committee on Finance to the
letter referred 70, and the same was, after discussion,
referred TO the Board for action
At the regular meeting OF the Board, the day.
| a committee consisting of Messrs Oliver II. Palmer.
Richard Patrick, Samuel ID. Babcock, Alexander ii.
Rice and John wadsworth. appointed to communi-
cate with Mr. Homans examine into the facts and re-
port thereon the Board
At meeting OF the Finance Committee, held on the
asth OF December, 1870 another advertisement was pre-
sented containing similar letter in favor OF the Life
Association Of America and IN commendation OF GER
tain plan OF company which Mr. Homans the Actu-
hta
needed in the practice OF Life Insurance.. letter was
also presented from influential polcyholder In tho
Company addressed to the Board and strenuousY pro-
testing against this action OF Mr. Homans as tending TO
bd ND other companies at the expense OF the one he
WAS pad TO serve. and demanding the application OF
remedy for what characterized great injury to
the noicyholders The second advertisement and the
above letter we're referred to the Committee appointed
| by the Board.
Letters we're also received nearly all the General
| .oents OF the Company. strongly cOndemnng the
| course OF the Actuary, and complaining OF IL as an
| injury to the Company and to their business.
The Committee proceeded TO investigate the subjects
committed to It, 1t appeared that in August 1854, Mr.
| Humans had addressed formal application TO the
Roard requesting permission to employ his leisure as
mathematical counsel for other Life Insurance Compa-
MES on nth of August in that year the Board con
sdered his request and denied the permission sought
II olso appeared date OF May O. 1865, appa-
renty forgetting his previous alusion TO "eisure" he
had when urging increase OF his salary written that
his duties involved amount OF labor, research expe-
Renee and responsibility exceeded by those of the
second officer OF any Company-Marne, Fire, or Lie
in the country" But notwithstanding the refusal BY
the BOARD to permit him employ his leisure In the
ervce OF other companies and his subsequent descrp
ton of the Of his duties engrossng as to
leave him no leisure If they properly performed
# was ascerained. and when pressed by the Committee
admitted by Mr. Romans, that while in the pay and pre-
umably in the exclusive service Of this Company he
had acted Consulting Actuary for pay for the follow
| ng companies: