, 1873-08-28
WHO PAYS" INDEED!

"wHo PAYS" INDEED!
TO the Editor Of Tho Chicago Tribune:
SIN Mr. Eli2ur Wright, q 0onau1ting Aotuary
Of Boston, uutior tho caption, "Who Pays7'
enters tho lists in tho controversy aIr. Sheppard
Homans is cndoavoring to koop altvo against
tho Mutual Lifo Insurance Company, and rotor-
atoe tho charge that Mr. HonanB became diBcon-
nectod from tho Company by reaAon Of his re-
flsal to audit certhin accounts he could not ap-
| provo. It is now time that this question, should
! DO settled upon its merits and tho following
faota, OF long record, will afford tho public tho
means OF doing it:
!. Tho account which Mr. HoYnans rofusoa to
audit WAS prosecuted to tho Board Nov. II,
1869.
Alr. Homnns continued Aotuary OF tho Com
pany until tho 18th. day Of January, 1871, four
toen months aftor tho refusal for which, Lo d.
le6eB, ho was removed.
On the latter date, having resigned his post
tion as Actuary, ho was appointed Consulting
Actuary at half his previous salary, aud
continued to hold that position until his
resignation thorcof uudor tho following
circumstances On tho 18th day Of Octo-
ber 1879. tho Bonrd unanimously abol-
shed tho ofl1co Of Consulting Actuary,
to tal1o effect on tho 31st day Of December, aud
h1r. Hon1anB WINS Immediately informed thereof.
| On the 4th OF December, 1879, tho intervening
time having boen largely spent BY him in fruit
loss endcavors by letter and personal inter-
viows with mombors OF tho Doard to obtain d
reconsideration OF its action, Mr. Homans, COIN
cidontly with tho first meeting OF tho represent
| ativoB of companies, hold at His private Office,
| to oppose the reduction OF ratios tlen In contom-
plnton by tho Trustoos, scnt in his resignation.
Flo omitted to draw his salary for the frat four
days Of Deoomber, until last March, wl.en OH hiH
written application, tho omission VAS rocti1ed
by this Company.
I It will thus bo scen that Mr.. Homans was con-
tinued as Actuary or Consulting Actuary for
three Years after the occurrence which lie alleges
Was thecauB OF his removal and that his con-
sure Of tho President md Trustoes was only
mado public aftor his pay was stopped, and after
lie had openly enlisted in the service OF companies
united in actyo opposition to the Mutual Life.
So much fot his assertion TINT ho was removed
! for refusing to audit faIso account. It WAS O
purc afteythougst, and IL without shadow Of
, truth.
T1IU unAuDIrED ACCOUNT.
a. Early in the year 1860. tlisousslvsa ,vas had
among tho ofIicors respecting what was known nf
post-,nortcrn dividends. The executive oiFleert
commended tint h1r. Homa1,'B method OF caiculat
ing those credits was wrong ia principle, aut
| contrary to tho chartor OF tho Company; md b.,
their direction tho payment Of the credits 80 cal
culased was suspended, ponding examination O
: tho question, and by necessary consequence th
a Compauy's accounts contained only Hueh pay
ments for poat-mortom dividends as wero no
Il suspended undor the ruling adopted.
d This vas tho objection, and tho only objcc
|, tion, ma6o BY Arr. Homana to tho corroctnosa o
X tho Companys accounts, aud it was the state
k mont for tho quarter ending November, 1866
q which ho declined to admit, aud for that reaso
% only.
Tho question at issuo relative to such accor1,
was purely technical ouo. It involved no bone
a tit or hope Of benefit to any officer Of tho Con
l., pany, aud to charge that ouch account vas
Il fraud upon pooy-holdors is wild aud wicked.
# Moreover, Mr. HomauH did not hesitate to at
/. pend tho customary audit to five subsequent AZ
,r counts which contained tho identical itoms o5
iecsed to, entered in precisely the Same manner
If aud the annual statement Of tho Company
T. which Includes tho quarterly statement wl'cl
" Was unaudited, bears tho following certificate
Il DEo. 81, 1860,
haye carefully examined tho foregoing s.Jtement
:, | and hnl the sama correct.
- Sheppard HoMANs, tcuary.
u" It may DO added that tho principle soi'toude
FOR by the executive officers VAS sustained b.
10 tho Counsel Of tho Company, by a,tuarial ex
I. ports, anl by tho Dnanl Of TrustooH.
VI REAL uAusE OF LII. uoMAHs' nEaIoyAI.
3. In December, 1870. MORO thai year afte
the incident rolatiye to nudising Ito account, n
r advertisement was widely published In tho news
: papers by tho 81. Louis htutuM Life 1nsuranc
Company, containing letter Of indorBonon
OF from Alr. HomanB, in which clio following pat
I'd sage OCCURS
u, :"Fgom the high rate Of interest to be derive
u" from hrat-c1aas Investments ia tho West, the at
vautagea offered by their loal companies, II we
managed, arc very groat e5 much 40 that ha'
49 myself taken policy Of e1o.o0o In tho ss. Lou
y" ~ Mutual. bnErr40p HoMAfs, AotnarS'
~ At that time. after atcen yoars OF ser'Ico' u
i. only policy bold by yiMr. uon,ans On his hso
tAo Mutual Lifo WI suryivorHhp annuity
aa $500. -,
ny On tho 2lst of December. 1870, the preaidor
~ ~ after considering tho etoot such I'll tndoraclhe
Of ! might ,,aqe upon tAa insurance business OF tn
Il, Com pany generally, called tho attention OF 81
nd committee on Finance 10 tho fettor reforfed
m 20 aud tho aa,ns WAS, after discussion, referred
- tho Board for notion. !,
Of at tho regular meeting Of tho Board, on Il
os same day, q committee, consisting OF Moas,
oltvor II. Palmer, Richard Patrick, Samuel
nj Babcock, Alexander II. Rico. and John "at
vi NORTH mas appointed to communicate "1sn .