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d'estime. Had it proved a failure, one who has not partici- seven years he has been at Lloyd's, he has been making for pated in the good fortune would have been mulcted in a himself a high character for rectitude and business ability, monetary loss referred to above.
which, on launching into business as a principal, seems to be made almost of no avail by the arbitrary action of those
in brief authority. Now the family relations between three members of the
The question of money-lending to clerks in Banks and management explain a great deal. But the gradual calling up of Capital, from sixty thousand pounds to two hundred Insurance offices, opened in these columns, has proved one
of great moment. Proof can be given that a high official and fifty thousand, with an attempt to double it, making half
in one of the Fire and Life Insurance Companies is in the a million, has not yet been satisfactorily explained. A circular was issued convening a meeting of shareholders,
habit of advancing money to his clerks at the rate of £1 before whom a statement was to be read showing the
interest for a month on £5-a little safe investment at 240 necessity for borrowing another quarter of a million. At per cent. Safe, indeed, is the money—as he deducts it when the meeting the chairman made the astounding assertion paying the monthly salaries. that, in addition to the total disappearance of the capital, a sum of eighty thousand pounds was owing upon deben
ANOTHER obliging gentleman is he who translates lantures which the shareholders had no cognizance of. These guages for many of the large establishments
. His business debentures were seemingly granted without the consent of
of translating extends beyond that connected with lanthe shareholders, and were instanced and used as a mild guages, as the translation of interest from borrowers is one sort of reason for some more capital being at once sub
of magnitude, and it enables him to put himself in touch
with many who, out of gratitude, must not allow legitimate scribed.
business to pass from him to a less lucky polyglot. It transpired, after a lot of heckling, that there were no
TRUMAN, HANBURY, BUXTON & Co. will get the money debentures, but only preferential claims to the amount
they want, but they seem a little greedy in retaining the whole stated. This is not a fair way of dealing with shareholders,
of the ordinary capital and one third of the debentures. and several expressed themselves in a manner that their
Few people know that the Hotel at Tilbury, which has feelings prompted. What has been done with the capital turned out such a'failure, belongs practically, if not actually, already in existence? Is there anything to show for it?
to the firm. The loss on this place must be something Industrial business is one needing careful manipulation, as it
reckoned by tens of thousands of pounds, so there is one is one in which competition is very keen, besides being as
sink for their money. How many more there are of the a rule worked by men whose positions are such that for a
same nature on a smaller scale perhaps may be learned little extra gain they are available for the purpose of presently by those who subscribe, after the glamour has subornation. It is averred that the London, Edinburgh and
waned. Glasgow try with all their power to buy agents of other THE BREAKDOWN OF THE ENGLISH CIRCUIT SYSTEM. — Companies by extra commissions and better terms. This
The depleted state of the English Bench during last month is, perhaps, quite legitimate for a new Company, if success
has again raised the question of the reform of the Circuit follows after a certain time. But this Company, having System in England. The arranging of the several circuit
established in 1881, has had time to see the effect of sittings is a recurring difficulty with the judges of the its system; and that effect can also be seen by the share
Queen's Bench Division. Their lordships appear to be holders, who, time after time have exerted themselves in
driven to their wits' end in the attempt to reduce to a miniproviding additional money, with the ultimate result that
mum the huge inconvenience which the absence of so many the Company must now double its present capital in order judges on assize always creates in the business of the that it may be placed on a proper footing. Is this
ordinary Courts in London. The great towns in the prosuccess? The Accident business is purposely left out of vinces provide a heavy list of work for the assizes. The consideration, and it would have been well perhaps if the
number of towns to be visited is considerable. So it hapfamily party on the Board had confined themselves to it. pened that from the 27th of November until the end of term,
eight of the common law judges were out of town. The Lloyd's committee has been using drastic measures over
Special Commission being then in session, there remained the new subscriptions payable by the companies. In se- available in London four Cominon Law judges, viz., veral cases they have been doubled, and in one, it is
the Lord Chief Justice, Mr. Justice Manisty, Baron rumoured, even quadrupled. The reason is not far to Huddleston, and Mr. Justice Denman. Of this thin seek, as recent reference in these columns has shown the battalion, one had to sit daily in chambers. Three position of decay Lloyd's occupies. Companies are getting judges, therefore, were left to deal with the common stronger and stronger every year. The barrier being erected jury list, the special jury list, the without jury list, round the Room is too late. Years
and various other matters. Then, too, since misfornow being aimed at should have been adopted, and the tunes never come singly, Mr. Justice Manisty was for result would have been apparent to-day. Many people
some time seriously indisposed. Now, this state of things regard the Committee as a lot of old women; perhaps the
-not exceptional at all, for, although the Special Commany people are right.
mission is temporary, a similar state of congestion occurs regularly as the circuits come round-naturally causes much
irritation. Both on the part of provincial and metropolitan TAKE a recent instance. A young firm of brokers had the temerity to issue a sort of circular touting for business litigants, dissatisfaction has been loudly expressed. The in time risks, at a low price, according to a certain system dency to perfunctory and impatient despatch of their busi
latter complain of delay in their suits; the former of a tenwhich they had worked out. It was undoubtedly a smart
ness. Remedies have been called for, and suggestions have one, and they deserved all the success obtainable from the
been forthcoming. It would seem to be impossible to use of brains. It is rumoured now that the firm has been
improve the existing system further. All that ingenuity can summoned before that august tribunal in the Committee
suggest and earnestness can carry out has, we may safely Room, to expiate the terrible offence. There is no rule against circularising for business, but, unfortunately, the
assume, been already tried. “Either,” says the Spectator,
“the number of judges must be increased, or something letter in question appeared in a contemporary. Hinc illæ
must be done in the direction of decentralisation, or, in lachrymæ. This was an advertisement such as the Stock Exchange allows not, nor evidently does the Committee of
other words, the jurisdiction of County Courts and Quarter
Sessions must be extended.” There is, indeed, no escape Lloyd's nowadays.
from this alternative. No other course seems possible.
The obstacle in the way of either of these reforms is, of It may be that, as the firm in question-Messrs. Hargan, course, the same formidable one. Both would involve the Rawle and Co.-are agents for five foreign insurance com- spending of more money. A larger grant will be hard to panies, the actual reason for the action of the Committee wring from the Treasury, since even the present outlay has may be found in that fact, against the ostensible one men. been carped at. Yet the deadlock must be removed. tioned before. It is a serious matter for Mr. Charles Without the spending of more money, its removal is not Rawle, a most uncalled-for action, as, during the twenty- possible.--Journal of Jurisprudence.
time when the loan was made, provided that it shall appear THE LIABILITY OF TRUSTEES BILL. to the Court that in making such loan the trustee was acting
upon a report as to the value of the property made by a
person whom the trustee reasonably believed to be an able 1. Short title, extent, and Definition.—(1) This Act may practical surveyor or valuer, instructed and employed indebe cited as the Trustee Act, 1888.
pendently of any owner of the property, whether such (2) This Act shall not extend to Scotland except in so
surveyor or valuer carried on business in the locality where far as it declares that it shall be lawful for a trustee to
the property is situate or elsewhere, and that the amount of invest any trust funds in his hands in the debenture, pre
the loan does not exceed two equal third parts of the value ference, guaranteed, or rent-charge stock of any railway
of the property as stated in such report, and that the loan company in Great Britain or Ireland incorporated by
was made under the advice of such surveyor or valuer exspecial Act of Parliament, and having during each of the
pressed in such report. And this section shall apply to a
loan ten years last past, before the date of investment, paid a
upon any property of any tenure, whether agricultural dividend on its ordinary stock or shares.
or house or other property, on which the trustee can law(3) For the purposes of this Act the expression “trustee
fully lend. shall be deemed to include an executor or administrator
(2) No trustee lending money upon the security of any and a trustee whose trust arises by construction or implica- leasehold property shall be chargeable with breach of trust tion of law as well as an express trustee, and also the offi- only upon the ground that in making such loan he discial trustee of charitable funds.
pensed, either wholly or partially, with the production or (4) The provisions of this Act relating to a trustee shall investigation of the lessor's title. apply as well to several joint trustees as to a sole trustee.
(3) No trustee shall be chargeable with breach of trust 2. , Receipt of Money by Solicitor as Agent
. — (1) It shall be only upon the ground that, in effecting the purchase of any lawful for a trustee to appoint a solicitor to be his agent to
property, or in lending money upon the security of any proreceive and give a discharge for any money or any valuable perty, he shall have accepted a shorter title than the title
which a purchaser is, in the absence of a special contract, consideration or property receivable by such trustee under the trust by permitting such solicitor to have the custody accepted be such as a person acting with prudence and
entitled to require, if in the opinion of the Court the title of, and to produce, a deed containing any such receipt as is referred to in the fifty-sixth section of the Conveyancing
caution would have accepted. and Law of Property Act, 1881 ; and no trustee shall be
(4) This section shall apply to transfers of existing secu. chargeable with breach of trust by reason only of his having
rities as well as to new securities, and to investments made made or concurred in making any such appointment; and
as well before as after the passing of this Act, except where
some action or other proceeding shall be pending with the producing of any such deed by such solicitor shall have
reference thereto at the passing of this Act. the same validity and effeet, by virtue of the said fifty-sixth section, as the same would have had if the person appoint- 5. Liability for Loss by reason of Improper Investments. ing such solicitor had not been a trustee : Provided that (1) Where trustee shall have improperly advanced trust nothing herein contained shall exempt a trustee from any money on a mortgage security which would at the time of liability which he would have incurred if this Act had not the investment have been a proper investment in all passed in case he permits such money, valuable considera respects for a less sum than was actually advanced thereon, tion, or property to remain in the hands or under the the security shall be deemed an authorised investment for control of the solicitor appointed as aforesaid for a period such less sum, and the trustee shall only be liable to make longer than is reasonably necessary to enable such solicitor good the sum advanced in excess thereof with interest. to pay or transfer the same to the trustee.
(2) This section shall apply to investments made as well (2) It shall be lawful for a trustee to appoint a bankerbetore as after the passing of this Act, except where some or solicitor to be his agent to receive and give a discharge action or other proceeding shall be pending with reference for any money payable to such trustee under or by virtue thereto at the passing of this Act. of a policy of assurance by permitting such banker or solicitor to have the custody of and to produce such policy of
6. Indemnity for Breach of Trust. (1) Where a trustee
shall have committed a breach of trust at the instigation or assurance with a receipt signed by such trustee, and no trustee shall be chargeable with a breach of trust by reason
request or with the consent of a beneficiary, the Court may,
if it shall think fit, and notwithstanding that the beneficiary only of his having made or concurred in making any such appointment : Provided that nothing herein contained shall may be a married woman entitled for her separate use, exempt a trustee from any liability which he would have
whether with or without a restraint upon anticipation, make incurred if this Act had not passed, in case he permits such
such order as to the Court shall seem just, for impounding, money to remain in the hands or under the control of the
all or any part of the interest of the beneficiary in the trust banker or solicitor appointed as aforesaid for a period through him.
estate by way of indemnity to the trustee or person claiming longer than is reasonably necessary to enable such banker or solicitor to pay the same to the trustee.
(2) This section shall apply to breaches of trust com(3) This section shall apply only where the money or
mitted as well before as after the passing of this Act, except
where an'action or other proceeding shall be pending with valuable consideration or property is to be received after the passing of this Act.
reference thereto at the passing of this Act. 3. Depreciatory Conditions on Sales by Trustees.-(1) No 7. Trustee may Insure Buildings.-(1) It shall be lawful sale made by a trustee shall be impeached by any cestui for, but not obligatory upon, a trustee to insure against loss que trust upon the ground that any of the conditions, sub
or damage by fire any building or other insurable property ject to which the sale was made, may have been unne
to any amount (including the amount of any insurance cessarily depreciatory, unless it shall also appear that the already on foot) not exceeding three equal fourth parts consideration for the sale was thereby rendered inadequate. of the full value of such building or property, and to pay (2) No sale made by a trustee shall, after the execution
the premiums for such insurance out of the income thereuf of the conveyance, be impeached as against the purchaser or out of the income of any other property, subject to the upon the ground as aforesaid, unless it shall appear that
same trusts, without obtaining the consent of any person such purchaser was acting in collusion with such trustee
who may be entitled wholly or partly to such income. at the time when the contract for such sale was made.
(2) This section shall not apply to any building or pro(3) No purchaser, upon any sale made by a trustee, shall perty which a trustee is bound forthwith to convey absobe at liberty to make any objection against the title upon
lutely to any cestui que trust upon being requested so to the ground aforesaid.
do. (4) This section shall apply only to sales made after the 8. Statute of Limitations may be Pleaded by Trustees. passing of this Act.
(1) In any action or other proceeding against a trustee, or 4. Loans by Trustees.-(1) No trustee lending money any person claiming through him, except where the claim is upon the security of any property shall be chargeable with founded upon any fraud or fraudulent breach of trust to breach of trust by reason only of the proportion borne by which the trustee was party or privy, or is to recover trust the amount of the loan to the value of such property at the property, or the proceeds thereof, retained or received by
the trustee and converted to his use, the following provi- to ascertain the whole of the facts in connection with the sions shall apply :
case before them, and to go over the whole of the ground (a) All rights and privileges conferred by any statute of upon which their judgment would depend. It would not, limitations shall be enjoyed in the like manner and to the in my opinion, be right to let this occasion go by without like extent as they would have been enjoyed in such action saying that; and, moreover, I think the thanks of the whole or other proceeding, if the trustee or person claiming bar are due to the tribunal for the invariable courtesy which through him had not been a trustee or person claiming has been displayed to us in allowing some latitude in the through him :
arrangements of our other work and in assisting us in per(6) If the action, or other proceeding, is brought to re- forming it here. That assistance is of the greatest possible cover money or other property, and is one to which no advantage, not only
to the bar, but to the suitors who come existing statute of limitations applies, the trustee or person before the Court. Personally, I have sometimes had to ask claiming through him shall be entitled to the benefit of for that indulgence, and I think it would not be right if I and be at liberty to plead the lapse of time as a bar to such did not record, as the senior representative of the bar, my action or other proceeding in the like manner and to the extreme appreciation of the great assistance which has thus like extent as if the claim had been against him in an action been rendered to my clients. I have one thing more to of debt for money had and received, but so nevertheless add, and that is how we all extremely regret one circumthat the statute shall run against a married woman entitled stance in regard to the new tribunal—that we shall lose for her separate use, whether with or without a restraint the present legal member. We have all appreciated the upon anticipation, but shall not begin to run against a care which he has bestowed upon the work; we have all beneficiary unless and until his interest shall be an interest appreciated the kindness with which he has always endea. in possession.
voured to show us the difficulties which were in his mind; (2) No beneficiary, as against whom there would be a and as, owing to circumstances over which none of us have good defence by virtue of this section, shall derive any any control, he is about to come back to the bar, I can greater or other benefit from a judgment or order obtained only say, as one of those with whom he will come into by another beneficiary than he could have obtained if he competition, we shall very heartily welcome him back and had brought such action, or other proceeding, and this feel that his legal acumen and general abilities will add section had been pleaded.
greatly to the strength of the bar likely to practise before (3) This section shall apply only to actions, or other the new Commission Court. We heartily thank you for proceedings, commenced after the passing of this Act. the treatment we have always received in this Court. 9. Investments on Mortgage of Long Terms.-A power to
Sir FREDERICK PEEL.-I should like, with reference to invest trust money in real securities shall authorise, and
the last portion of Mr. Littler's remarks in regard to my shall be deemed to have always authorised, an investment
learned colleague, no longer going to be a member of this upon mortgage of property held for an unexpired term of
commission, to express my regret on that account at the not less than two hundred years, and not subject to any re
change which is about to take place in its constitution, and servation of rent greater than one shilling a year, or to any
my sense of the loss involved in the severance of his conright of redemption, or to any condition for re-entry except
nection with the commission, both to the public and to for non-payment of rent.
ourselves. That it has been a source of much strength to
the commission to have had at our command the experience 10. Trustees of Renewable Leaseholds may Renew.-It shall
in law of my learned friend is a statement which I am sure be lawful for any trustee of any leaseholds for lives or years
would be confirmed by all who have at any time been in which are renewable from time to time, either under any
this room, or have taken part in the proceedings, and, as covenant or contract or by custum or usual practice, if he
we have seen, it has been recognised by Mr. Littler, who shall in his discretion think fit, and it shall be the duty of
has just spoken. I am sure all the learned counsel who such trustee, if thereunto required by any person having any
have practised before us will say the same thing; and in beneficial interest, present or future or contingent, in such
referring to them and to what Mr. Littler has said, I desire leaseholds, to use his best endeavours to obtain from time to
to express my acknowledgments to them, many of them time a renewed lease of the same hereditaments on the accustomed and reasonable terms, and for that purpose it
among the first rank in their profession, for the uniform
courtesy which they have shown to this Court and to myself shall be lawsul for any such trustee from time to time to
in particular. It is not for me to eulogise my learned friend make, or concur in making, such surrender of the lease for
as a lawyer. I am too little versed in that branch of know. the time being subsisting, and to do all such other acts as
ledge in which he is so proficient to make it becoming for shall be requisite in that behalf; but this section is not to
me to do it, but I may speak of the manner in which he has apply to any case where, by the terms of the settlement or
applied his knowledge to aid us in carrying out the Act of will, the person in possession for his life or other limited
1873. That Act, creating a commission so admirably constiinterest is entitled to enjoy the same without any obligation
tuted as this, gave it to be understood that our course as a to renew the lease or to contribute to the expense of re- Court was to be governed not only by the rules of law, but also newing the same.
by the maxims of natural radical good sense, and my 11. Extent of the Act's Application.-(1) This Act shall learned friend on all occasions, as might have been expected, apply as well to trusts created before as to trusts created not only maintained his reputation as a lawyer, but has also after the passing of this Act.
treated all questions from that point of view and in the (2) Provided always, that save as in this Act expressly large and liberal-minded manner it implied. I think it is provided, nothing therein contained shall authorise any something like twelve years since my learned friend first trustee to do anything which he is in express terms forbidden joined this commission, and during this long time we, the to do, or to omit to do anything which he is in express members of this commission, have naturally seen terms directed to do, by the instrument or instruments great deal of each other, of course in Court and also out of creating the trust.
Court. I look back with pleasure to that intercourse with him. To my mind a colleague more agreeable to act with
could never have filled his place, and it has been a pleasure THE OLD RAILWAY COMMISSION.
to be joined with him in carrying out the Act of 1873. I
owe him myself many thanks for the readiness and kindness At the close of the business on Monday MR. LITTLER, with which he has always responded to any appeals that I Q.C., rose and said: “This is the last sitting of the present have made to him at different times for his advice and asCourt, and as I am the senior member of the bar present, sistance. We shall lose that benefit for the future, but it is and have, I think, been engaged before the Court in more
still satisfactory to think that the principles which he has cases than any other member of the bar, with the exception
promoted have been set out so clearly in his different judgof the Attorney-General, I think it would not be right for us
ments that they are there still to guide us and to be referred at the bar to allo this occasion to pass without remark. to ; and I think further, with pleasure, that his views, I have seen a good deal of practice, and a great variety of although he is no longer one of this commission, will still practice, before all sorts of tribunals, and I desire to say, assert themselves and exercise a beneficial influence on with the most thorough sincerity, that I have never prac. the course of this Court under the new circumstances of tised before a tribunal which evinced such a sincere desire
the existence upon which it is about to enter.
Mr. Price.-The Chief Commissioner has been good property, of improper investments, and of breaches of trust enough to include me in what he has said so exceilently, committed at the instance of, or with the consent of, the and it is not necessary for me to add anything to show how beneficiary, and empowering trustees to insure the trust heartily I concur in all he has said.
property, and to plead the statutes of limitations, except in Mr. Miller, Q.C., who spoke with considerable emotion, cases where the trustee has himself benefited by the breach said :- I did not expect to have the duty put upon me of of trust. listening to and returning thanks for the touching addresses “To any ordinary mind it would appear strange that which have been uttered by our Chief Commissioner and legislative sanction should be needed to render such acts by Mr. Littler. I can only say that I retire after twelve as those which we have briefly indicated lawful; but, in years' service under circumstances which I think are un- fact, it is hardly an exaggeration to say that every provision precedented, and which I will not pretend to believe are of the Act represents what may be termed a monument to justifiable. I, nevertheless, feel one great consolation, and martyrs who have suffered in the cause of trusteeship. that is that I do not doubt I carry with me not only the “Another of these measures is the Solicitors' Act, 1888, sympathy which has been so kindly and so eloquently ex- one object of which is to intrust to the Incorporated Law pressed by my colleagues, but also that of the numerous Society the custody of the roll of solicitors of the Supreme members of the bar who know the circumstances, and I Court of Judicature in England; and another, to enlarge trust that I may have in the future many opportunities of greatly the powers of the Society in dealing with cases of meeting those with whom I have during the last twelve malpractice by solicitors at the very important stage of inyears been in such constant connection, and that, although vestigating the facts as a preliminary measure to bringing the circumstances will be very much altered, the friendship the offender before the Court. Other subjects of minor will not.
importance affecting the profession are dealt with in the The Court then separated.
"Lastly, comes a highly technical, but not the less useful, Act dealing with an important incident of land transfer. The perils of a purchaser of land, arising from
the need of guarding against the existence of charges on THE INCORPORATED LAWSOCIETY. the purchased land, in the shape of unregistered judgments,
writs of sequestration, and so forth, were brought into very
disagreeable prominence some two years since by a decision The following has been published by the Incorporated of the Court of Appeal in the case of Re Pope (17 Q. B. Law Society :-)
Div., 743), which upset preconceived notions as to the true "It is a noteworthy circumstance that among the Bills legal construction of an Act of Parliament passed in 1864 which received the Royal assent on the day of the proroga- with the honest but, as the Court held, unavailing intention tion of Parliament were no less than three measures of law of protecting purchasers from charges of this description on reform initiated, framed, and actively promoted by the In- land, not discoverable by means of searches at public corporated Law Society of the United Kingdom; two, at offices. These searches were in themselves of a very least, of which may be fairly said to have been conceived laborious kind, and formed no inconsiderable element in solely in the interests of the community at large.
the cost of land transfer, and a climax was reached when “Anxieties and responsibilities must inevitably attend the it was proclaimed by the judges of appeal, in the case redischarge of the thankless duties of a trustee; but they have ferred to, that no searches, however exhaustive, would been aggravated to an unbearable extent by a long series of effectively protect a purchaser, or, in other words, that no judicial decisions which have fenced in the trustee's path one could safely buy an acre of land in this country. The with thorns and briars innumerable, and required of him a consternation produced by the decision found voice in the degree of vigilance and circumspection passing all the legal journals, and in a very able paper, prepared by Mr. ordinary standards by which the reasonable conduct of William Godden, a member of the Society's council, and human affairs is measured. To remedy the evil as far as ultimately in the promotion by the Society of an Act just possible, it has of late years been customary for skilled passed under the title of the Land Charges Registration draftsmen of wills and settlements to introduce protective and Searches Act, which meets the difficulty so far as secret clauses; and to those familiar with such instruments it has burdens on land are concerned. The Bill, in its original been both painful, and, in a certain sense, almost amusing, shape, also contained provisions having in view the simplito see how every decision of the Courts which has added fication of the operation of making searches for the various an extra cord to the judicial lash wherewith trustees have registered charges, but, as most of those practically been reminded of their duties, has been followed by the acquainted with the subject will probably think, the insertion of a new clause in subsequent wills and settle- efficiency of this part of the measure was considerably ments, expressly declaring that the trustees of those instru- impaired by amendments made during the passage of the ments may do that precise thing which the Court has Bill through Parliament. declared that their unfortunate brethren not similarly pro- “Like all bodies discharging varied public functions, the tected had no right to do. But it is manifest that such a. Incorporated Law Society has to encounter criticism. mode of pruning judicial severity must, at the best, be very There are those who charge it with doing too much, those partial in its practical results, and that the necessity for it who charge it with doing too little, and those who charge it indicates a condition of things calling loudly for the inter- with doing inefficiently what it does undertake. The ference of Parliament. Recognising this to be so, the achievements in legislation to which allusion has been made Incorporated Law Society, with the able assistance of Lord go far to show that the governing body take a high-minded, Herschell in the one House and Mr. Cozens-Hardy in the as well as an eminently practical, view of the Society's other, have prevailed on the Legislature to lessen, in some powers of public usefulness; and the gradually extended degree, at least, the personal responsibilities of trustees control over what may be termed the internal concerns of who act in good faith, and take reasonable measures for the solicitors' branch of the legal profession conferred on protecting the interests committed to their charge.
the Society from time to time by statute is a fitting recog“ This much-needed change in the law is to be found in nition of the sound good sense and moderation which have the Liabilities of Trustees Act. The Act declares that a marked the exercise of its privileges and the discharge of trustee may appoint a solicitor or a banker to be his agent its important and laborious duties." for the receipt of trust money in certain cases, and protects him against liability arising out of depreciatory conditions on sales, or out of losses resulting from loans of the trust Receipt is acknowledged of The Law of Charitable funds where he has lent not more than two-thirds of the Bequests, by Amherst D. Tyssen, D.C.L. of the Inner value of the property, and has acted upon a report as to
Temple, Barrister-at-Law (William Clowes & Sons.) ; Lonthe value of the property made by a person whom he
don Government, by Henry Clarke (Simpkin, Marshall & reasonably believes to be an able practical surveyor or valuer, instructed and employed independently of any
Co). ; also the following magazines : The Cosmopolitan owner of the property. It also contains provisions limiting (Digby & Long); The Verulam Review (Elliot Stock); the liability of trustees in cases of advances on leasehold Baily's Magazine (Vinton & Co.).
department carried direct to Profit and Loss Account, instead PUMP COURT.
of meandering through, and trying to hide itself in, the Fire
Revenue Account? The Temple Pewspaper and Review.
The fact that this office, notwithstanding its enormous annual dividends to its shareholders, has been able to build
up a General Reserve and Fire Fund of £785,539, is proof EDITORIAL, ADVERTISEMENT AND PUBLISHING OFFICES,
of the greater additional advantages that would have 33, Exeter Street, Strand, W.C. history of all life offices that have been at all decently
accrued to policy-holders had it been a mutual office. The
managed shows that the protection afforded policy-holders JANUARY 9, 1889.
against loss, by shareholders assuming the liability, is in name only. The very essence of life assurance is the mutual principle. Tables of mortality disclose the truth that at each age a certain percentage of selected lives die. To meet the losses occasioned by this mortality, it is neces. sary for the hundreds to band together and co-operate-the contributions from the many paying the death losses of the few as they occur. This is the primary principle, indepen
dent of compound interest. But why band together under 1883
the pseudo ægis of a syndicate of shareholders, which is
The Scottish The directors' report of the Seventy-fourth
tains very interesting information, and shows this affluent Pro Lege.
office to have continued its wonderful growth of funds. The statement regarding its mortality and claims is worthy of notice, as the following extract will show :
" The rate of mortality among the members is still con. INSURANCE.
siderably less than that indicated by the tables of mortality which form the basis of the Society's calculations. The number of deaths which might have been looked for was 644,
while the actual number was only 473, or 26 per cent. less. Union Assurance A REVIEW of the accounts of this Society
Of these, 131 were of persons who had attained 70 years of Society.
for the year ending June 30, 1888, reveals a age and upwards-43 of them dying between 80 and 90 years continued satisfactory state of affairs as far as shareholders of age, and three over 90. are concerned. The directors' report states that the bonus “ The claims arising in consequence of the 473 deaths appropriated to policy-holders "ranks among the largest amount to £598,955 185. 5d., made up thus-original sume bonuses given by any Company, and has given great satis
assured entitled to participate in profits, £400,171 6s. Id.;
bonus additions thereon, £ 174,834 125. 4d.; policies not enfaction to all entitled to participate in it." This is very
titled to participate, £23,950; claims in consequence of death, pleasing, particularly to those most directly interested; but
£598,955 185. 5d. ; seventeen endowment assurance policies a study of the accounts shows that under different condi. became claims by survivance of the lives assured, amounting tions than those that exist in this office, results might have to £4,559 145. 5d.; the total claims of the year thus amounted been considerably better than they were. Our dictum is to £603,515 125. rod. against proprietary, or stock company, offices, inasmuch
• The bonuses paid, with participating policies which
became claims in 1887, amounted, on the average, to 43.7 per as life assurance is concerned; for the reason that the
cent., notwithstanding that in many instances bonus had been primary principle and foundation of all life assurance is
previously surrendered for cash or applied in reduction of mutuality, and the protection supposed to be afforded by
premiums. In 38 cases these additions increased the original shareholders assuming the liability is merely nominal. This sum assured by 100 to 174 per cent.--the average increase point is well illustrated in the case of this office. While being 122 per cent.” the amount of authorised and subscribed capital is It is worthy of note, regarding the growth of the funds, £300,000, the total amount paid up in cash is but £30,000. that the net premium income (less re-assurance premiums) The nominal amount of each share is £200, and the
was £ 763,417 195. 5d., which was sufficient to pay the amount paid up in cash on each share is £20. The
entire disbursements for the year, including death claims dividend for year ending June 30, 1888, was £26 per and bonus additions, without trespassing upon income from share, and in 1887 it was £24 per share. This is equal to any other source, or the life assurance funds, and also to 125 per cent. per annum, from the combined life and fire
embody an excess amount of £14,023 os. 7d. The branches, on the paid-up capital. As the general reserve entire total disbursements for the year amounted to and fire fund contains over £775,000, the inutility of the £749,394 185. 10d., and embraced the following items :share capital is apparent.
s. d. Life assurance is entirely distinct from fire, both in the
Claims (after deduction of sums re-assured) ... 603,515 12 10 nature of the risks and mode of premium charged. In Year 1887 includes £4,559 145. 5d. payable point of fact, one has nothing in common with the other,
under Endowment Assurances, and and, when offices undertake both branches, the accounts
£975. os. 2d. in respect of deaths in should be kept separately, and not intermingled. In the
previous years. case of this Society, the "shareholders' proportion of profit
Surrender values. Includes unclaimed values for the five years, carried to the General Reserve and Fire
of policies lapsed during year...
44,741 13 2 Annuities ...
12,592 0 Fund,” is £34,089 10s. 11d. (which is over 113 per cent. Commission
22,750 9 on the paid-up capital). This, we are told, is “appro- Expenses of management. Includes rent of priated to the benefit of the shareholders, but retained by offices belonging to and occupied by the the Society in order to increase the security of the assured, society
53,556 2 7 which amount now forms part of the General Reserve
Bonus additions taken in cash
898 1 9
Income tax Fund." This appears very magnanimous, and it is duly
11,340 18 8 entered in the “ Fire Revenue Account as an item re. The funds were augmented by the handsome sum of ceived from the Life department. Out of this account, a £427,951 155. 2d., and aggregated £9,656,930 175. 5d. on profit is carried, in its turn, to Profit and Loss Account, and December 31, 1887. the “dividends to shareholders” is there found to be This is a magnificent showing, and evinces honest £39,000. The question naturally suggests itself, Why management; but it is also suggestive of the query, To was not the shareholders' proportion of profit from the life what amount will the funds increase and grow, when all