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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..d7b82bc --- /dev/null +++ b/.gitattributes @@ -0,0 +1,4 @@ +*.txt text eol=lf +*.htm text eol=lf +*.html text eol=lf +*.md text eol=lf diff --git a/LICENSE.txt b/LICENSE.txt new file mode 100644 index 0000000..6312041 --- /dev/null +++ b/LICENSE.txt @@ -0,0 +1,11 @@ +This eBook, including all associated images, markup, improvements, +metadata, and any other content or labor, has been confirmed to be +in the PUBLIC DOMAIN IN THE UNITED STATES. + +Procedures for determining public domain status are described in +the "Copyright How-To" at https://www.gutenberg.org. + +No investigation has been made concerning possible copyrights in +jurisdictions other than the United States. Anyone seeking to utilize +this eBook outside of the United States should confirm copyright +status under the laws that apply to them. diff --git a/README.md b/README.md new file mode 100644 index 0000000..f489ec0 --- /dev/null +++ b/README.md @@ -0,0 +1,2 @@ +Project Gutenberg (https://www.gutenberg.org) public repository for +eBook #50380 (https://www.gutenberg.org/ebooks/50380) diff --git a/old/50380-0.txt b/old/50380-0.txt deleted file mode 100644 index c0666a6..0000000 --- a/old/50380-0.txt +++ /dev/null @@ -1,7657 +0,0 @@ -The Project Gutenberg EBook of Annals, Anecdotes and Legends, by John Francis - -This eBook is for the use of anyone anywhere in the United States and most -other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms of -the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll have -to check the laws of the country where you are located before using this ebook. - -Title: Annals, Anecdotes and Legends - A Chronicle of Life Assurance - -Author: John Francis - -Release Date: November 4, 2015 [EBook #50380] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK ANNALS, ANECDOTES AND LEGENDS *** - - - - -Produced by deaurider, Craig Kirkwood, and the Online -Distributed Proofreading Team at http://www.pgdp.net (This -file was produced from images generously made available -by The Internet Archive.) - - - - - - -Transcriber’s Notes: - -Text enclosed by underscores is in italics (_italics_). - -Additional Transcriber’s Notes are at the end. - - * * * * * - -ANNALS, ANECDOTES, AND LEGENDS OF LIFE ASSURANCE. - - * * * * * - - LONDON: - SPOTTISWOODES AND SHAW, - New-street-Square. - - - - -ANNALS, ANECDOTES AND LEGENDS: A Chronicle OF LIFE ASSURANCE. - - - BY JOHN FRANCIS, - - AUTHOR OF “THE HISTORY OF THE BANK OF ENGLAND,” ETC. - - “Tragedy never quits the world--it surrounds us everywhere. We have - but to look, wakeful and vigilant, abroad; and, from the age of - Pelops to that of Borgia, the same crimes, though under different - garbs, will stalk in our paths.”--SIR E. BULWER LYTTON. - - “Murder?” - - “Murder most foul, as in the best it is; But this most foul, strange, - and unnatural.”--SHAKSPEARE. - - LONDON: - LONGMAN, BROWN, GREEN, AND LONGMANS. - 1853. - - * * * * * - -Dedicated, by Permission, - -TO - -THE MOST NOBLE THE MARQUESS OF LANSDOWNE. - -THIS NARRATIVE, RECORDING THE PROGRESS OF LIFE ASSURANCE, AND RELATING -THE SERVICES OF SIR WILLIAM PETTY, THE FATHER OF POLITICAL ECONOMY, -IN THE CAUSE OF VITAL STATISTICS, IS, BY PERMISSION, RESPECTFULLY -DEDICATED TO HIS DESCENDANT, THE MOST NOBLE HENRY PETTY, THIRD MARQUESS -OF LANSDOWNE, BY HIS LORDSHIP’S MOST OBEDIENT AND VERY DEVOTED SERVANT, -JOHN FRANCIS. - -_Shooter’s Hill, May 23. 1853._ - - - - -PREFACE - - -The subject of Life Assurance is so important, that any endeavour -to trace its history, however imperfect, may not be unacceptable. -Men toil, work, slave, nay, almost sin for their families; they do -everything but insure: and should this volume induce any one to avail -himself of the benefits of Life Assurance who has not hitherto done so, -or should it attract the attention of others who are ignorant of the -system, the writer will not deem his labour entirely in vain. - -The many legends and traditions of the subject, form a page from the -romance of Mammon, which, remarkable as some of the stories may appear, -and fearful as many of them are, form but a small portion of the sad -and stern realities attached to the annals of Life Assurance. - -The simple fact, that the payment of a small yearly sum will at once -secure the family of the insured from want, even should he die the -day after the first premium is paid, is sufficiently singular to the -uninitiated; but it is more so, that very few avail themselves of an -opportunity within the reach of all. - - - - -CONTENTS. - - - CHAPTER I. - - Origin of the Doctrine of Probabilities. Essay of John de - Witt. The Plague. First Bills of Mortality. Captain John - Graunt--his Opinions, Life, and Estimates. Curious Terms in - the old Registers--their Explanation. Life of Sir William - Petty. His Career and Character Page 1 - - CHAP. II. - - Practice of Assurance by the Romans. Saxon Approximation to - Friendly Societies. Marine Assurance. Danger of Navigation, - and its Effect on Life Assurance. Assurance for Palmers and - Pilgrims to the Holy Land. Bulmer’s Office of Assurance. - Assurance of Navigators, Merchants, and Corporations. - Uncertainty of Life. Annuities. Audley the Usurer. His - History. Anecdotes concerning him. The Usurer’s Widow 25 - - CHAP. III. - - Judah Manasseh Lopez, the Jew Usurer. His Trick on the Duke of - Buckingham. Suspicions concerning him. The Increase of London. - Population of London. Proclamations. Halley’s Movement in Life - Assurance. His Tables 46 - - CHAP. IV. - - First Trial concerning Life Assurance. The Mercers’--its - Establishment and System. The Sun--John Povey, its - Projector--his Character. Wagers on the Life of King William. - New Assurances. The Amicable--the Mode in which it was - established. New Annuity Societies--Anecdotes concerning - them--Close of their Career 56 - - CHAP. V. - - Royal Exchange and London Assurance--their Rise and Progress. - Bubble Era. Epigrams. Opposition to the New Companies. - Accusations against the Attorney-General. List of Assurance - Companies. Extraordinary Character of many. Remarkable Career - of Le Brun. Directors in Trouble 72 - - CHAP. VI. - - Sketch of De Moivre--his Doctrine of Chances. Kersseboom. De - Parcieux. Hodgson. Dodson. First Fraud in Life Assurance--its - romantic Character. Thomas Simpson. Calculations of De Buffon 87 - - CHAP. VII. - - Rise and Progress of the Equitable--its Dangers and its - Difficulties. Comparative Premiums. Sketch of Mr. Morgan--his - Opinions. Singular Attempt to defraud the Equitable--Death of - the Offender. Attempt of Government to rob the Offices 108 - - CHAP. VIII. - - Bubble Annuity Companies--their Promises. Effect on the - People. Dr. Price--his Life. Sir John St. Aubyn. The Yorkshire - Squire--Assurances on his Life--his Suicide. 125 - - CHAP. IX. - - Gambling in Assurances on Walpole. George II. The Jacobite - Prisoners. The German Emigrants. Admiral Byng. John Wilkes. - Young Mr. Pigot and old Mr. Pigot. Lapland Ladies and Lapland - Rein-deer. Insurance on Cities. Gambling on the Sex of - D’Eon. Public Meeting. Disappointment of the Citizens. Trial - concerning D’Eon. Lord Mansfield’s Decision 140 - - CHAP. X. - - Fraudulent Annuities--Act to prevent them. Salvador the Jew. - David Cunningham, the Scotchman--his Career--his Annuity - Company--its Success--his double Character--his Fate. Mortuary - Registration. John Perrott--his Passion for China--Trick - played him. Curious Fraud. Westminster Society. Pelican 157 - - CHAP. XI. - - Legal Decisions. William Pitt, and Godsall and Co. Romance of - Life Assurance. The Globe. New Companies. The Alliance--its - Promoters. Improvement of the Value of Life consequent on the - Improvement in Society--its Description. Trial concerning the - Duke of Saxe Gotha. Important Legal Decision 176 - - CHAP. XII. - - Government Annuities--Opinions concerning them--Great Loss to - the State. Mr. Moses Wing’s Letter. Mr. Finlaison. New Annuity - Act--its Advantages to Jobbers. Endeavours to procure old - Lives. Anecdotes concerning them. Philip Courtenay 199 - - CHAP. XIII. - - Fraud in Life Assurance Companies--its Extent--its - remarkable and romantic Character. Janus Weathercock. Helen - Abercrombie--her Death. Forgery of Wainwright--his Absence - from England--his Return, Capture, and Death. Independent and - West Middlesex--its Rise, Progress, and Ruin of all concerned 213 - - CHAP. XIV. - - Select Committee of 1841. Instances of Deception. Publication - of Accounts. New Companies--Assertions about them--their - Importance--Suggestions concerning them 252 - - CHAP. XV. - - Extension of Assurance. Society for Assurance against - Purgatory. Commercial Credit Company. Guarantee Society. - Medical, Invalid, and General. Agricultural Company. Rent - Guarantee. Railway Passengers. Law, Property, and Indisputable - Societies. Disputed Policy 282 - - CHAP. XVI. - - The Banker’s Mistress. The elder Napoleon. The deceived - Director. The murdered Merchant. The Corn Law League and the - Cutler. The Unburied buried. The disappointed Suicide. A Night - Adventure 295 - - CHAP. XVII. - - Scotch Life Assurance. Scottish Widows’ Fund--its Directors. - North British. The Farmer’s Fate. Edinburgh Life. List of - Scotch Companies 317 - - - - -ANNALS, ANECDOTES, AND LEGENDS OF LIFE ASSURANCE. - -CHAPTER I. - - ORIGIN OF THE DOCTRINE OF PROBABILITIES.--ESSAY OF JOHN DE - WITT.--THE PLAGUE.--FIRST BILLS OF MORTALITY.--CAPTAIN JOHN - GRAUNT--HIS OPINIONS, LIFE, AND ESTIMATES.--CURIOUS TERMS IN THE OLD - REGISTERS--THEIR EXPLANATIONS.--LIFE OF SIR WILLIAM PETTY--HIS CAREER - AND CHARACTER. - - -In the early annals of this country, there was no foundation whatever -on which to form a theory of the value of life. The wars of succession, -intestine strife, and civil discord, killed their thousands. Disease, -arising from exposure to the air, from foul dwelling-places, and -from an absence of the comforts of advanced civilisation, slew its -tens of thousands. They who were spared by the sword and escaped the -pestilence, perished too often by the fire of persecution. Death came -in forms which were governed by no known laws; and, notwithstanding -the insecurity of life, there was no possibility of making a provision -for survivors. To this we owe that kind consideration for the widows -and orphans of their members, which is observable in many of the city -corporate bodies. - -Commerce was yet in its infancy, and all the capital which could be -collected, was necessary to its development. It was, indeed, on this -that the wisdom of the executive was concentrated. Every half century -brought rumours of some new land which was to enrich the adventurers -who combined to explore it. The most gallant spirits of England sailed, -and not always in the stoutest vessels, to explore a new passage, or to -trade on the shores of some new country, alike indifferent where they -went or how long they remained, provided they could bring home some -attractive article of merchandise. Every energy was, therefore, devoted -to the extension of our mercantile interests; and although Lombards, -goldsmiths, Jews, and usurers, frequently granted annuities, there -appears to have been no united attempt to grant assurances on lives. - -This universal spirit of commerce produced, however, marine assurance -very early, while the gradual progressive movements made in science -and philosophy, prepared the way for assurance on life. The rude -notions of an uncultivated age were succeeded by broader and more -statesmanlike views; the Roman Church, with its narrow notions and -its denunciations of progress, ceased to exist; men feared no longer -to give a free exposition of their principles; and the Provincial -Letters of Pascal prove that a new era had arrived. The doctrine -of probabilities,--originated at a gaming-table,--so curious, so -interesting, and at the same time so necessary to the present -subject, was first popularised by this great genius; but we are -indebted to Holland for its earliest application to annuities; as -when the States-General resolved to negotiate some life payments, -the pensionary, John de Witt, added one more obligation to the many -received from this distinguished man, by employing the theory which -Pascal suggested, for the requirements of his government. His report -and treatise on the terms of life annuities is the first document of -the kind, and a most important paper it is. Step by step it explains -the grounds on which the proposition of its author was based, and by -which he arrived at the conclusion that the value of a life annuity, -in proportion to one for a term of twenty-five years, was really “not -below, but certainly above, sixteen years’ purchase.” It is probable -that from political motives this paper was suppressed; but John de -Witt was certainly the first who thought of applying mathematical -calculations to political questions, and the first who attempted to fix -the rate of annuities according to the probabilities of life. The essay -of the pensionary was, however, but little known to the public, and had -no sensible influence on the subsequent progress of the science. - -Leibnitz, whose hobby was to investigate the theory of chances[1], -first drew attention to this production; but though often alluded to, -its very title was not correctly given, and we are indebted to the -researches of Mr. Hendriks for its rescue from an unmerited oblivion, -and for the able translation of an essay which, had it been published -at the time it was written, would have exercised an important influence -on its subject.[2] Up to the end of the 17th century, therefore, -as there were no laws to calculate the chances of mortality, life -annuities were granted according to the caprice of the usurer, or the -ignorance of the annuitant; and there is no occasion to remind the -reader that the barbaric splendour of the Tudors witnessed customs -which, rendering the conditions of life terribly uncertain, had -a depressive effect on the science of assurance. The smallpox, a -frequent and fearful visitor, was only met by an attempt to stare it -out of countenance; for to effect a cure the patient was clothed in -scarlet, the bed was covered with scarlet, and the walls were hung -with scarlet; so simple and so ignorant were the leeches of the early -ages. Dysentery, then known by its Saxon synonyms of the “flux,” -“scouring,” and “griping,” daily carried off the unwashed artificers -of old London. Nor were dirty habits confined to the mere populace; -the banquetting-halls of the palace were rarely or ever cleansed; the -accumulations of months were left on the floors, which, to hide the -dirt and preserve an appearance of decency, were periodically covered -with rushes.[3] In such places disease was ever ready to spring into -vigorous life. Every few years, fevers which had been lurking in alleys -and ravaging obscure places, devastated the city under various names. -At last, that awful sickness which, even at the present day, chills the -blood but to think of it, seemed to be naturalised in this country, -under the name of the plague; but to it we owe that the initiative step -was taken in England, in founding the first principles which govern -life assurance, for to it we owe our earliest Bills of Mortality. - -Within a period of seventy years, London had been visited by it five -separate times; 145,000 having died from its collective attacks. As the -visitation had been governed by no known system, as it came without any -apparent cause and disappeared quite as capriciously, the Londoners -never felt safe from its re-appearance. It seemed always hovering -over them; and as the intervals between its departure and return were -sometimes only eleven years, and had never exceeded twenty-nine, its -harassing impressions were constantly on the minds of the citizens. -Its visits did not allow time even to soften or subdue the painful -remembrances connected with it; and were it necessary, a reference to -the letters, diaries, and chronicles of the day, would show that the -name of the plague turned men pale, and predisposed their constitutions -for its reception; that the very thought made the merchant regardless -of ’Change and of counting-house; and that the tradesman shuddered at -the memory of a disease which slew his children, depopulated London, -and destroyed his business. - -The reports of the approach of the plague were, then, a positive and -practical evil; and in 1592, when 30,561 died of the disease, the -rumours of its horrors, appalling as these were in reality, were -enormously exaggerated. An attempt to quiet public feeling by correctly -indicating its progress was, therefore, made in the Bills of Mortality; -and though they were not at first maintained consecutively, they were -afterwards found so useful as to be continued from 29th December, 1603, -to the present time.[4] The mode of their production was simple. When -any one died it was indicated either by tolling or ringing a bell, or -by bespeaking a grave of the sexton. The sexton informed the searchers, -who hereupon “repair to the place where the dead corpse is, and by -view of the same and by other inquiries they examine by what disease -or casualty the corpse died. Hereupon they make their report to the -parish-clerk; and he, every Tuesday night, carries in an account of all -the burials and christenings happening that week, to the parish-clerks’ -hall. On Wednesday, the general account is made up and printed; and on -Thursday, published and disposed of to the several families who will -pay 4_s._ per annum for them.” In 1629, two editions of the weekly -bills were printed, one with the casualties and diseases, and the -other without. For a long time these papers were made but little use -of by the public. A writer of the day says they were examined at the -foot, to see whether the burials increased or decreased; they were -glanced at for the casualties, as a matter of gossiping interest; and -in the plague time, the progress of the pest was closely watched by -the courtiers and the nobles, that they might escape its ravages; and -by the citizens, with that morbid feeling which is as much attached -to extraordinary calamities as to great crimes. But though this might -be the case ordinarily, such was not the view with which a citizen of -London, by name John Graunt, thought they should be regarded. This -man was the author of the first English work on the subject, entitled -“Natural and Political Observations on the Bills of Mortality.” Little -is known of his antecedents, save that he was the son of one Henry -Graunt of Lancaster, that he was born in “Birching Lane,” and that he -had the ordinary education granted to the sons of tradesmen. He came -early into business, passed through the chief offices of his ward with -reputation, and became captain and major of the train-bands, when such -an office involved danger as well as honour. - -All that has hitherto been said of Graunt might be said of many. But -Graunt’s genius was far from being confined within these limits. -It shone through all the disadvantages of mean birth and doubtful -breeding. It broke down the barriers of rank and the limits of -position, and gave him the first thought of a design, which was -the earliest movement in economical arithmetic, and the closest -approximation to the data on which life assurance is founded. - -The exact time is not known when he began to collect and to consider -the Bills of Mortality; but he says his thoughts had been turned -that way for several years, before he had any design of recording -certain notions he had formed. Until he published his volume, a more -than Egyptian darkness was on the eyes of the people, and he had to -combat some very singular notions. Among others, that London was to be -reckoned by millions, that the proportion of women to men was three -to one, and that in twenty-six years the population had increased two -millions. “Men of great experience in this city talk seldom under -millions of people to be in London.” To grapple with these and similar -errors was Graunt’s object; and it is easy to comprehend, that his -readers rebelled against assertions which lowered the pretensions of -their favourite city. It is probable that he made some enemies by his -book; as when the fire of London occurred, he was accused of having -gone to the reservoir of the New River Company, and of cutting off -the supply of water. As, however, he had changed, or was on the point -of changing his creed from puritanism to papistry, and the papists -had the credit of originating the fire; the accusation was possibly -a party one, and is of little importance now. It is with his work on -the population we have to deal, and this, which contained “a new and -accurate thesis of policy, built on a more certain reasoning than had -yet been adopted,” was first published in 1664; meeting with such an -extraordinary reception that another edition was called for in the -following year, the book being spoken of wherever books then made -their way. It formed a taste for these studies among thinking men; and -the fact is greatly to the author’s credit, that he made a bold, if -fruitless, attempt to deduce the law of life from bills of mortality -which did not record the ages as well as the deaths of the people. -In addition to the London bills, he gave one for a country parish -in Hampshire; and in the later editions he added one for Tiverton, -and another for Cranbrook. Charles II. recommended the Royal Society -to elect him one of their members, charging the Fellows “that if -they found any more such tradesmen, they should admit them all;” and -immediately after the appearance of the work, Louis XIV. ordered the -most exact register of births and deaths to be kept in France, that -was then known in Europe. A few extracts from this rare and curious -work will at once indicate its character, and show the simplicity -of the existing information; but in their perusal the reader will do -well to consider, that Graunt was the first who wrote on the subject; -that he had but slight foundations for his calculations; and that with -all these difficulties, he was very successful in his conclusions. He -says:-- - -“There seems to be good reason why the magistrate should himself -take notice of the number of burials and christenings: viz., to see -whether the city increase or decrease in people, whether it increase -proportionably with the rest of the nation, whether it be grown big -enough. But,” he adds, “why the same should be known to the people, -otherwise than to please them as with a curiosity, I see not. - -“Nor could I ever yet learn from the many I have asked, and those not -of the least sagacity, to what purpose the distinction between males -and females is inserted, or at all taken notice of; or why that of -marriages was not equally given in. Nor is it obvious to every body why -the account of casualties is made. The reason which seems most obvious -for this latter is, that the state of health in the city may at all -times appear.” In another page he writes that “7 out of every 100 live -in England to the age of 70.” “It follows from hence that, if in any -other country more than 7 of the 100 live beyond 70, such country is to -be esteemed more healthy than this of our city.” It must be remembered, -however, that this was very conjectural. “We shall,” he says, when -leading to this conclusion, “come to the more absolute standard and -correction of both, which is the proportion of the aged; viz. 15,757 -to the total 229,250, that is, of about 1 to 15, or 7 per cent.; only -the question is, what number of years the searchers call aged, which I -conceive must be the same that David calls so, viz. 70. For no man can -be said to die properly of age, who is much less.” - -Out of the above 229,250 he estimates that 86 were murdered; and, -alluding to a peculiar disease which had arisen, intimates that the -proportion of males was greater than that of females, in the words, -“for since the world believes that marriage cures it, it may seem -indeed a shame that any maid should die unmarried, when there are -more males than females; that is, an overplus of husbands to all that -can be wives.” “In regular times when accounts were well kept, we -find not above 3 in 200 died in childbed; from whence we may probably -collect that not 1 woman of 100, I may say of 200, dies in her labour, -forasmuch as there may be other causes of a woman’s dying within the -month.” He then attempted to show the population of London, from which -he had been a long time prevented by his religious scruples; but his -arithmetical mind was provoked by a “person of high reputation” saying -there were “two millions less one year than another.” To ascertain the -number he made many very interesting calculations, and came to this -conclusion:--“We have, though perhaps too much at random, determined -the number of the inhabitants of London to be about 384,000.” He then -gave the following table, which is perhaps one of the most remarkable -we have, the period and the material being taken into consideration:-- - - Of 100, there die within the first six years 36 - The next ten years, or decad 24 - The second decad 15 - The third ” 9 - The fourth ” 6 - The fifth ” 4 - The sixth ” 3 - The seventh ” 2 - The eighth ” 1 - -From whence it follows that, of the said 100 there remain alive-- - - At the end of 6 years 64 - ” 16 ” 40 - ” 26 ” 25 - ” 36 ” 16 - ” 46 ” 10 - ” 56 ” 6 - ” 60 ” 3 - ” 76 ” 1 - ” 80 ” 0 - -He says gravely of another of his calculations, “According to this -proportion Adam and Eve, doubling themselves every 64 years of the 5610 -years, which is the age of the world according to the Scriptures, shall -produce far more people than are now in it. Wherefore, the world is not -above 100,000 years old, as some vainly imagine, nor above what the -Scripture makes it.” - -That Captain Graunt was a man of no ordinary perceptive power let -his volume bear witness. In it he touches on almost every intricate -question which, despised when he wrote, has since been investigated -by Adam Smith, by M’Culloch, by Porter, by Tooke, and by all to whom -political economy is dear. The following will give some idea of the -character of these studies:-- - -“It were good to know how much hay an acre of every sort of meadow -will bear; how many cattle the same weight of each sort of hay will -feed and fatten; what quantity of grain and other commodities the -same acre will bear in 3 or 7 years; unto what use each sort is most -proper; all which particulars I call the intrinsic value, for there -is another value merely accidental or extrinsic, consisting of the -causes why a parcel of land lying near a good market may be worth -double another parcel, though but of the same intrinsic goodness; which -answers the question why lands in the north of England are worth but -16 years purchase and those of the west above 28.” “Moreover, if all -these things were clearly and truly known, it would appear how small a -part of the people work upon necessary labours and callings; how many -women and children do just nothing, only learning to spend what others -get; how many are mere voluptuaries, and as it were, mere gamesters -by trade; how many live by puzzling poor people with unintelligible -notions in divinity and philosophy; how many, by persuading credulous, -delicate, and religious persons that their bodies or estates are out -of tune and in danger; how many, by fighting as soldiers; how many, by -ministries of vice and sin; how many, by trades of mere pleasure or -ornament; and how many, in a way of lazy attendance on others; and, -on the other side, how few are employed in raising necessary food and -covering; and of the speculative men how few do study nature, the more -ingenious not advancing much further than to write and speak wittily -about these matters.” - -From this enumeration of his objects it may be seen that life assurance -was not contemplated by the author when his important book was written; -but as the earliest attempt to number the people, to classify their -callings, and to ascertain the mortality among them, he assuredly -laid the foundations of this science. His book gave new ideas. It -first propounded the fact, that “the more sickly the years are, the -less fruitful of children they be;” and though this was wonderfully -ridiculed, time has proved that it was not less strange than true. -It formed a taste for similar inquiries among thinking men. It was -published at a period when, the city being less populous, there was -additional facility in arriving at certain facts. From that time the -subject was cultivated more and more. Increased attention was paid -to the parish registers. The different diseases and casualties were -gradually inserted; but it was not till 1728 that the ages of the dead -were introduced. Graunt had forced people to think; and whatever merit -may be ascribed to Sir William Petty, Daniel King, Dr. Davenant, and -others, it may all be traced to the first observations of Graunt on the -Bills of Mortality. To him we owe the care with which parish registers -have since been kept, and the valuable material they have afforded to -the science of political economy. - -There is something in the old registers which places us in an almost -antediluvian world, and seems to treat of diseases belonging to another -sphere. In 1657, among the deaths are recorded 1162 “chrisomes and -infants;” and few reading in 1853 would know that infants, until -christened, wore a “chrisom” or cloth anointed with holy unguent, from -which they were denominated chrisomes. “Blasted and planet” would -puzzle the medical student of to-day; but the latter was simply an -abbreviation of “planet struck,” both words indicating some wasting -disease which the faculty failed to fathom. “Head-mould-shot” and -“horseshoe-head” were meant for water on the brain, and were very -expressive of the shape of the head in those who suffered from it. -Another complaint was “calenture,” a disease said to be similar to the -_maladie du pays_, for it seized seamen with an irresistible desire to -immerse themselves, the sea assuming in their eyes the appearance of -green fields. “Tissick” expressed phthisis or consumption. In 1634, -the “rickets” is recorded; and the “rising of the lights” has been a -great puzzle to our medical historians. A little later than this period -is mentioned, “one died from want in Newgate,” “one murdered in the -pillory,” and “one killed in the pillory.” In the course of twenty -years fifty-one are put down as starved. “But few are murdered, not -above eighty-six of the deaths in twenty years; whereas, in Paris, -few nights escape without their tragedy.” It must be remembered, in -explanation, that medicine had not assumed the dignity of a science -before the time of Harvey in the middle of the seventeenth century, -but was exercised by “a great multitude of ignorant persons.” Common -artificers, smiths, weavers, and women took upon them cures, “to the -high displeasure of God, and destruction of many of the King’s liege -people.” Nor was the patient much better off when the clergy, priests, -and poor scholars left the cure of the mind for the cure of the body. -Such, however, was the position of leech-craft when Graunt inoculated -the people with the love of vital statistics. - -Contemporary with Graunt, and contributor to his attempts, was one of -those strange, restless, speculative men whose love of money teaches -them how to procure it, and whose desire to preserve it, by purchasing -land, and leaving their heirs in possession, makes them the founders of -noble English houses. This was Sir William Petty, who, in his “Essay -on Political Arithmetick concerning the Growth of the City of London, -with the Measures, Periods, Causes, and Consequences thereof,” made a -further onward movement. The earlier portion of his life was passed in -battling with the world. He was as much a votary of mathematics as of -money, and was eminently successful in both. Although only the son of a -Romney clothier, he was the founder of a house which has exercised an -important influence on English political life--the House of Lansdowne. -He began his career with nothing, and he closed it possessed of -15,000_l._ per annum. He lived at a time when social economy was but -little regarded; and he published a volume which, however uncertain -both in its data and its conclusions, was an attempt to apply -arithmetic to the economics of life. It is both unphilosophical and -unjust to say, “Petty was nothing of a politician or statesman, or even -of a political economist. He was merely a political arithmetician; -that is to say, he occupied himself with a consideration of the -circumstances of society and of the forces and activity that pervaded -it, only in so far as they could be stated and estimated numerically. -His social science was little more than an affair of ciphering, a -business of addition and subtraction.” It is from the figures of such -men that our politicians form deductions, estimate consequences, -frame laws, and create trade. It may be true that he was no seer, and -that he was wrong in his prophetic capacity; but this is only another -proof that statisticians rarely possess a large development of the -imaginative faculty. That his work is worth perusal to all who are -interested in his subject, although based on information which was rude -and imperfect, we hope to show. In it he calculates that-- - - Between 1604 and 1605, there died in London 5,135 - ” 1621 and 1622, ” 8,527 - ” 1641 and 1642, ” 11,883 - ” 1661 and 1662, ” 15,148 - ” 1681 and 1682, ” 22,331. - -In about forty years he estimated that London had doubled itself (the -number being, when he wrote, 670,000), and that the assessment of -London was about one-eleventh of the whole territory: “Therefore, the -people of the whole may be about 7,369,000; with which account that -of the poll-money, hearth-money, and the bishops’ late numbering of -the communicants, do pretty well agree.” This founder of the House of -Lansdowne was a good deal puzzled by the growth of the metropolis. He -thus accounts for it:--“The causes of its growth from 1642 to 1682 may -be said to have been as follows: From 1642 to 1650, men came out of -the country to London to shelter themselves from the outrages of the -civil wars during that time. From 1650 to 1660, the royal party came -to London for their more private and inexpensive living. From 1660 to -1670, the King’s friends and party came to receive his favours after -his happy restoration. From 1670 to 1680, the frequency of plots and -parliaments might bring extraordinary numbers to the city. But what -reasons to assign for the like increase from 1604 to 1642, I know -not, unless I should pick out some remarkable accident happening in -each part of the said period, and make that to be the cause of this -increase (as vulgar people make the cause of every man’s sickness to be -what he did last eat); wherefore, rather than so say, I would rather -quit what I have above said to be the cause of London’s increase from -1642 to 1682, and put the whole upon some natural and spontaneous -benefits and advantages that men find by living in great more than in -small societies: I shall, therefore, seek for the antecedent causes -of this growth in the consequences of the like, considered in greater -characters and proportions.” - -That the people are the life-blood of the kingdom, was Sir William’s -fixed belief; and he said, that if the whole highlands of Scotland -and the whole kingdom of Ireland were sunk in the ocean, so that the -people were all saved and brought to the lowlands of Great Britain, -the Sovereign and the subject in general would be enriched. The reader -will smile when he hears that a great deal of useful information -was embodied in Sir William Petty’s attempts to prove the following -extraordinary points:-- - -1st. That London doubles in 40 years, and all England in 360 years. - -2nd. That there be in 1682 about 670,000 souls in London, and 7,400,000 -in England and Wales; and about 20,000,000 of acres in land. - -3rd. That the growth of London must stop of itself before the year 1800. - -4th. That the world would be fully peopled within the next 2000 years. - -Burnet says, that Petty wrote the book published in Graunt’s name; -but the bishop was too much of a gossip to be trusted, and the works -which Sir William claimed are sufficient for his fame. In the midst -of a life devoted to the world, he turned his attention to abstruse -and recondite subjects. That money makes the man, was his fundamental -article of faith. “Instead of saying with Bacon,” remarks a biographer, -“that knowledge was power, he would have said that knowledge was _l._ -_s._ _d._... He was all for the practical, and in general for the -pecuniary, as the most comprehensive form of the practical.” - -He was, probably, not a brave man; for he left England at the most -stirring period of its history, and, when at a later period he was -challenged by one of Cromwell’s knights to fight a duel, he claimed -the privilege of choosing time, place, and weapons, to throw an air of -ridicule over the proceeding. The place he named was a dark cellar, and -the weapon he chose was a carpenter’s axe. Near-sightedness was his -excuse for both. - -He wrote “An Essay concerning the Growth of the City of London,” -“Observations on the Dublin Bills of Mortality,” “Two Essays concerning -the People of London and Paris,” “Two Essays on Political Arithmetick;” -and the name of Sir William Petty has come down to us more as the -author of these works, than as the successful speculator, as the -founder of the Marquisate of Lansdowne, or as one who began life -penniless, and left a princely inheritance. To those who wish to trace -the career of the man who drew so great a portion of public attention -to the foundations of life assurance, the epitome of his life as given -in his will may prove interesting. - -Having thus endeavoured to trace the early dawn of the theory, it is -now time to chronicle the progress of life assurance as a social and -mercantile requirement. - -FOOTNOTES: - -[1] When asked what benefit it would produce, he replied, “C’est pour -perfectionner l’art des arts, l’art de penser!” This, at first regarded -as a _mot_, became a proverb. - -[2] The title of this essay is “Waardye van Lyf-Renten naer proportie -van Losrenten;” or, the “Value of Life Annuities in Proportion to -Redeemable Annuities.” - -[3] There was no just cause for surprise in these periodical -visitations. The thinkers of the day understood the connection between -cleanliness and health; and the following will show that such as these -hit on the right source of pestilence:-- - -“I often wonder,” says Erasmus in a letter to Dr. Francis, “and not -without concern, whence it comes to pass, that England for so many -years hath been continually afflicted with pestilence, and above all, -with the sweating sickness, which seems in a manner peculiar to that -country.... They glaze a great part of the sides with small panes, -designed to admit the light and exclude the wind; but these windows are -full of chinks, through which enters a percolated air, which stagnating -in the room, is more noxious than the wind. - -“As to the floors, they are usually made of clay, covered with rushes -that grew in fens, which are so slightly removed now and then, that -the lower part remains sometimes for twenty years together, and in it -a collection of spittle, vomit, urine of dogs and men, beer, scraps -of fish, and other filthiness not to be named. Hence, upon change of -weather, a vapour is exhaled very pernicious, in my opinion, to the -human body.” - -[4] The first parish registers were kept in England in 1538, in -consequence of an injunction from Thomas Cromwell. They had been -kept for a long time previous in Augsburg and Breslau, though it was -not till the beginning of the 17th century that they were general -in Europe. It is worth mentioning, that long ere this, the paternal -government of Peru kept a register of all the births and deaths -throughout the country; exact returns of the population being made -every year by officers appointed by the state. - - - - -CHAP. II. - - PRACTICE OF ASSURANCE BY THE ROMANS.--SAXON APPROXIMATION TO - FRIENDLY SOCIETIES.--MARINE ASSURANCE.--DANGER OF NAVIGATION, AND - ITS EFFECT ON LIFE ASSURANCE.--ASSURANCE FOR PALMERS AND PILGRIMS - TO THE HOLY LAND.--BULMER’S OFFICE OF ASSURANCE.--ASSURANCE OF - NAVIGATORS, MERCHANTS, AND CORPORATIONS.--ASSURERS.--UNCERTAINTY - OF LIFE.--ANNUITIES.--AUDLEY THE USURER--HIS HISTORY--ANECDOTES - CONCERNING HIM.--THE USURER’S WIDOW. - - -It has been the endeavour of most writers to trace the practice, if not -the principle, of assurance as far back as possible; but in doing this, -trifles have been exaggerated into matters of importance. Some authors -contend, on the authority of Livy, that it was in use during the Second -Punic War: others, arguing from a passage in Suetonius, refer to the -Emperor Claudius, as the first insurer; because, in order to encourage -the importation of corn, he took all the loss or damage it might -sustain upon himself. - -These cases are, however, entirely exceptional, and certainly indicate -no settled plan, as the very fact that the Emperor guaranteed the -contractor against damage, is a proof that there was no other mode of -doing so. Cicero is also quoted, because, in one of his epistles, he -expresses a hope of finding at Laodicea, security by which he could -remit the money of the republic without being exposed to danger in its -passage. - -If, however, the assertion that marine assurance was known to the -ancients is not demonstrable, there is no doubt that life assurance -was unknown and unpractised, although the Romans had some wise -regulations in connection with the economy of the people. From Servius -Tullius downwards, they took a census every fifth year, and the right -of citizenship was involved in any one failing to comply with the -requirements of his age, name, residence, the age of his wife, the -number of his children, slaves, and cattle, together with the value -of his property. They do not seem to have kept any exact mortuary -register, as the chief object of their census was to levy men and money -for the purpose of conquest. One of the commentators on the Justinian -Code also gave a calculation of the worth of annuities, which, if it -may be accepted as an expectation of life, gives far more correct views -of its comparative value at various ages, than was known in Europe -until the time of De Witt. - -Turning from these vague theories of an antique age to our own -country, we find that associations founded on social principles, in -which union for good or for ill, and in which provision was made for -contingencies, were the prominent features, are to be found in our -Saxon annals. The axiom, that “Union is Strength,” the necessity -of providing for casualties by mutual assistance, in other words, -assurance on its broadest and most rational basis, was practised in -the Saxon guild, the origin of which was very simple: Every freeman -of fourteen being bound to find sureties to keep the peace, certain -neighbours, composed of ten families, became bound for one another, -either to produce any one of the number who should offend against the -Norman law, or to make pecuniary satisfaction for the offence. To do -this, they raised a fund by mutual payments, which they placed in one -common stock. This was pure mutual assurance. From this arose other -fraternities. The uncertain state of society, the fines which were -arbitrarily levied, the liability to loss of life and property in a -country divided against itself, rendered association a necessity. And -if it was necessary before the Conquest, it became doubly so after -it. The mailed hand of the Norman knight was ever ready to grasp the -goods of the Saxon serf; and the Norman noble trod the ground he had -aided to subdue, with the pride of a conqueror, at the same time that -he exercised the rapacity of an Eastern vizier. To meet the pecuniary -exigencies which were perpetually arising from fines and forfeitures, -and to aid one another in burials, legal exactions, penal mulcts, -payments, and compensation,--ancient friendly societies, somewhat -similar to those of the present day, were established; and the rules of -one which existed at Cambridge prove its approximation to the modern -mutual friendly association. The following extracts will satisfy the -reader of the truth of this assertion:-- - -“1. It is ordained, that all the members shall swear by the holy -reliques that they will be faithful to each of their fellow-members, as -well as in religious as in worldly matters; and that, in all disputes, -they will always take part with him that has justice on his side. - -“2. When any member shall die, he shall be carried by the whole Society -to whatever place of interment he shall have chosen; and whoever shall -not come to assist in bearing him shall forfeit a sextarium of honey: -the Society making up the rest of the expense, and furnishing each -his quota towards the funeral entertainment; and also, secondly, for -charitable purposes, out of which as much as is meet and convenient is -to be bestowed upon the church of St. Etheldred. - -“3. When any member shall stand in need of assistance from his -fellow-members, notice thereof shall be given to the Reeve or Warden -who dwells nearest that member, unless that member be his immediate -neighbour; and the Warden, if he neglect giving him relief, shall -forfeit one pound.[5] In like manner, if the President of the Society -shall neglect coming to his assistance, he shall forfeit one pound, -unless he be detained by the business of his lord or by sickness. - -“4. If any one shall take away the life of a member, his reparatory -fine shall not exceed eight pounds; but if he obstinately refuse to -make reparation, then shall he be prosecuted by and at the expense of -the whole Society: and if any individual undertake the prosecution, -then each of the rest shall bear an equal share of the expenses. If, -however, a member who is poor kill any one, and compensation must be -made, then, if the deceased was worth 1200 shillings, each member shall -contribute half a mark[6]; but if the deceased was a hind, each member -shall contribute two oræ[7]; if a Welchman, only one. - -“5. If any member shall take away the life of another member, he -shall make reparation to the relations of the deceased, and besides -make atonement for his fellow-member by a fine of eight pounds, or -lose his right of fellowship to the society. And if any member, except -only in the presence of the king, or bishop, or an alderman, shall eat -or drink with him who has taken away the life of a fellow-member, he -shall forfeit one pound, unless he can prove, by the evidence of two -witnesses on oath, that he did not know the person. - -“6. If any member shall treat another member in an abusive manner, or -call him names, he shall forfeit a quart of honey; and if he be abusive -to any other person, who is not a member, he shall likewise forfeit a -quart of honey. - -“7. If any member, being at a distance from home, shall die or fall -sick, his fellow-members shall send to fetch him, either alive or -dead, to whatever place he may have wished, or be liable to the stated -penalty; but if a member shall die at home, every member who shall not -go to fetch his corpse, and every member who shall absent himself from -his obsequies, shall forfeit a sextarium of honey.” - -These rules might have been certified by a Pratt, so simple and so -excellent is their arrangement. But they must not be regarded as -exceptional. The following form a portion of the regulations of -another similar society at Exeter:-- - -“1. At each meeting every member shall contribute two sextaria of -barley meal, and every knight one, together with his quota of honey. - -“2. When any member is about to go abroad, each of his fellow-members -shall contribute five pence; and if any member’s house is burnt, one -penny. - -“3. If any one should by chance neglect the stated time of meeting, his -regular contribution to be doubled.” - -Well may Mr. Ansell say, “The guilds or social corporations of the -Anglo-Saxons seem, on the whole, to have been friendly associations, -made for mutual aid and contribution, to meet the pecuniary exigencies -which were perpetually arising.” Nor can the reader fail to be struck -with the resemblance these rules bear to those of many of the modern -societies; and, as they were framed 800 years ago, the similitude is -somewhat remarkable. After the Conquest guilds were established for -the express promotion of religion, charity, or trade, and from these -fraternities the various companies and city corporations have arisen. -The following, forming a portion of the rules of St. Catherine’s Guild, -seem like those of some modern fraternity:-- - -“If a member suffer from fire, water, robbery, or other calamity, the -guild is to lend him a sum of money without interest. - -“If sick or infirm, through old age, he is to be supported by his guild -according to his condition. - -“If a member falls into bad courses, he is first to be admonished, and -if found to be incorrigible he is to be expelled. - -“Those who die poor, and cannot afford themselves burial, are to be -buried at the charge of the guild.” - -Societies like these, established at a period when - - “The good old rule, the simple plan, - That they should take who have the power, - And they should keep who can,” - -was almost the law of the land, cannot fail to surprise those who -believe that the past was an age of barbarism, and the present the -culminating point of civilisation. It is certainly a curious truth, -that that combination which has been esteemed a peculiar feature of -modern times, had its antetype in societies framed when commerce and -law were yet in their infancy. - -Of the rise of assurance generally in Europe the information is limited -enough. Malynes and Anderson say it was known about the year 1200, -and refer to the marine laws of the isle of Oleron; but a perusal -of these has satisfied later writers that the theory was too hastily -adopted, and that the earliest ordinance on the subject with which we -are acquainted is that of the magistrates of Barcelona, in 1523, to -which city must be attributed the honour, until some authentic evidence -to the contrary has been produced; and we must not omit to notice, -also, that a writer on the “Us et Coutumes de la Mer” says assurance -was long detested by the Christians, “being classed by them with the -unpardonable sin of taking interest.” - -The first English statute relating to marine assurance was passed in -1601. The earliest mention of it occurs in 1548, in a letter written -by the Protector Somerset to his brother the Lord Admiral, and that -it was commonly known in 1558 may be gathered from a speech of the -Lord Keeper Bacon. In the act alluded to above, “An Act concerning -Matters of Assurances among Merchants,” it is stated, that “it hath -been time out of mind an usage among merchants, both of this realm and -of foreign nations, when they make any great adventure, specially into -remote parts, to give some consideration of money to other persons, -to have from them assurance made of their goods, merchandises, ships, -and things adventured, or some parts thereof, at such rates and in -such sort as the parties assurers and the parties assured can agree; -which course of dealing is commonly called a policy of assurance, by -means of which policies of assurance it cometh to pass, upon the loss -or perishing of any ship, there followeth not the loss or undoing of -any man, but the loss lighteth rather easily upon many than heavily -upon few, and rather upon them that adventure not than on those that do -adventure.” - -If mercantile or marine assurance were so common, it is difficult to -imagine that some approximation to life assurance, however imperfect -or normal it might be, was entirely unpractised. It must necessarily -have occurred to the captain of a trading vessel, that the storm or the -whirlwind, which might send his merchandise to the bottom of the sea, -might also send himself with it; and the thought that, if his goods -were worth insuring for the benefit of the owners, his own life was -worth insuring for the benefit of his family, arose naturally from the -risks he ran. And in those days there was not merely a risk of storm -or whirlwind. Man was more cruel than the tempest; and the galleys of -the Turks were then as much feared, by the masters of trading vessels, -as the corsairs of the Algerine were dreaded at a later period. They -roved the seas as if they were its masters; they took the vessels, -disposed of the cargo in the nearest market, and sold the navigators -like cattle. The only way of mitigating this terrible calamity was by -some mode of insurance, to procure their rescue if taken; and we find -that to attain so desirable a result they paid a certain premium to -their merchant freighters, who, in return, bound themselves to pay a -sufficient sum to secure the navigators’ freedom within fifteen days -after the certificate of their captivity, the ordinary days of grace -being lessened on such policies. - -In those days, also, when crusades were common, and men undertook -pilgrimages from impulse as much as from religion, it was desirable -that the palmer should perform his vow with safety, if not with -comfort. The chief danger of his journey was captivity. The ballads of -the fifteenth century are full of stories which tell of pilgrims taken -prisoners, and of emirs’ daughters releasing them; but as the release -by Saracen ladies was more in romance than in reality, and could not be -calculated on with precision, a personal insurance was entered into, -by which, in consideration of a certain payment, the assurer agreed -to ransom the traveller, and thus the palmer performed his pilgrimage -as secure from a long captivity as money could make him. It is true, -that this care for his personal safety may detract somewhat from a high -religious feeling; but truth is sadly at variance with sentiment, and -the pilgrims of the crusading period were but too glad to lessen the -chances against them. - -Another mode of assurance was commonly practised, by which any -traveller departing on a long or dangerous voyage deposited a specific -amount in the hands of a money broker, on condition that if he returned -he should receive double or treble the amount he had paid; but, in the -event of his not returning, the money broker was to keep the deposit, -which was in truth a premium under another name. - -In 1643 Captain John Bulmer published, “Propositions in the Office of -Assurance, London, for the blowing up of a boat and a man over London -Bridge.” Nor was this an unusual mode of conducting an enterprise -which was at once ingenious and costly, and which required an union -of capital to support it. In the address above alluded to, Bulmer, an -unsuccessful engineer, pledged himself to perform his promise within -a month after intimating from the office that he was ready; “viz. so -soon as the undertakers wagering against him, six for one, should have -deposited enough to pay the expenses of boat and engine,” he also -subscribing his own proportion. The money was not to be paid until the -Captain had performed his contract, when he was to receive it all. If, -however, he should fail, it was to be repaid to the subscribers. “And -all those that will bring their money into the office shall there be -assured of their loss or gain, according to the conditions above named.” - -These facts are an evidence that the principle of assurance was making -way, and that men endeavoured to provide against the chances or -mischances of life, to the best of their ability. Thus, any seafaring -person proceeding on a voyage, could insure his life for the benefit -of his heirs; and if the information which has come down to us limits -the practice to this particular class, it was because seamen were the -chief visitors to foreign countries, and for them some such plan was -essentially a necessity. - -But there was a further and more remarkable fact in operation; as an -annuitant enjoying a life-rent or pension could make an insurance on -his life, by way of provision for his family. These, however, were only -exceptional cases, for which the premiums were probably distressingly -heavy; if we may judge from the fact, that a century later the life -of a healthy man, of any age, was estimated at only seven years’ -purchase. The great merchants of that day were chiefly responsible -for such assurances, and many of the corporations engaged in these -and similar adventures. The following will show that by 1569 the -provident societies of the present day were anticipated. The writer is -illustrating his opinion on usury. - -“A merchant lendeth to a corporation or company 100_l._, which -corporation hath by statute a grant, ‘that whosoever lendeth such a -sum of money, and hath a child of one year, shall have for his child, -if the same child do live till he be full 15 years of age, 500_l._ of -money; but if the child die before that time, the father to lose his -principal for ever.’ Whether is this merchant an usurer or not? The -law says, if I lend purposely for gain, notwithstanding the peril or -hazard, I am an usurer.” - -Again: “A corporation taketh 100_l._ of a man, to give him 8_l._ in the -100_l._ during his life without restitution of the principal. It is -no usury, for that here is no lending, but a sale for ever of so much -rent for so much money. Likewise, if a private man have 1000_l._ lying -by him, and demandeth for his life and his wife’s life 100_l._ by the -year, and never to demand the principal, it is a bargain of sale and no -usury.” - -But though these things are evidences of something closely akin to -the principles of life assurance, it is certain that no system existed -by which so happy a result could be habitually attained. The state of -society was opposed to it. Life was then scarce “worth a pin’s fee.” -The noble was at the mercy of his own fierce passions, and, if not -engaged in some intestine warfare, was crossing and recrossing seas, -was making or unmaking kings. The knight sought dangerous adventures -with an avidity which would place his life on the trebly hazardous list -of assurance-offices, and pale the roses on the cheeks of directors. -The citizen, again, was constantly embroiled in quarrels with which -he had no business, and merchants would have looked doubtfully on any -proposal to accept a life which was likely enough to end the day after -its assurance. - -In addition to these chances, there was the liability to “plague, -pestilence, and famine.” The black pest, the sweating sickness, the -small-pox, are names to conjure up frightful images. Nothing is now -certainly known of the numbers which these diseases swept away in our -early history, but the rapidity with which whole families disappeared -tended to exaggerate the feeling of insecurity. It seems, therefore, -almost impossible to suppose that any plan of life assurance could -have existed during these ages, when there were no documents to -give the number of deaths, and no laws to determine the value of -life. But if assurances were rare, we have constant evidence that -annuities were familiar enough. The State employed them for its wants; -scriveners employed them for the necessities of their clients; Pole and -Whittington, Canning and Gresham, invested their mercantile gains in -them; the usurer made his money breed by granting them in many forms -and on various securities; and although to arrive at a just system -of annuities was as difficult as a just system of assurance, yet the -usurer took as much care in the one case to secure his own interest, as -he would in the other had it been an operation into which he chose to -enter. - -The sixteenth century gave birth to one of these men, who, before -life assurance was understood, exercised great genius in granting -and receiving annuities. The name of Audley is one of the earliest -we possess in this line: he was originally a lawyer’s clerk, with a -salary of 6_s._ a week; but his talent for saving was so well supported -by his self-privation, that he lived upon half, keeping the other -half as the superstructure of his future fortune. He was so great an -adept in the tricks of law, that he was soon enabled to purchase his -apprenticeship; and, with the first 600_l._ he had saved, bought of a -nobleman an annuity of 96_l._ for nineteen years. The nobleman died; -his heir neglected to pay the annuity, and Audley made him suffer for -his neglect to the tune of 5000_l._ in fines and forfeitures. - -The usurer soon found money trading better than law writing. He became -a procurer of bail; he compounded debts; he enticed easy landowners -into granting well-secured annuities; he encouraged their extravagance, -and, under pretence of ministering to their wants, became possessed of -many a fine estate. The following story will illustrate his craft:--In -the early part of his career, a draper of mean repute was arrested -by his merchant for 200_l._ Audley bought the debt of the latter for -40_l._, and was immediately offered an advance on his bargain by the -fraudulent tradesman. Audley refused the terms; and when the draper -pressed, as if struck by a sudden whim, he consented to discharge -the debt, if his creditor would sign a formal contract to pay within -twenty years from that time one penny, to be progressively doubled on -the first day of twenty consecutive months, under a penalty of 500_l._ -The terms seemed easy, and the draper consented. The knave was one of -those who “grow rich by breaking.” But here Audley had him in his net. -Year after year he watched his prey; he saw him increase in wealth, -and then made his first demand for one penny. As month succeeded month -he continued his claim, progressively doubling the amount, until the -draper took the alarm, used his pen, found that to carry out his -agreement would cost him more than 4000_l._, and, to avoid it, paid the -penalty of 500_l._; his only revenge being to abuse Audley as a usurer, -probably anticipating the wish of Jaffier, that he could “kill with -cursing.” - -Audley, like many of our own day, was equally ready to lend money to -the gay gallants of the town on annuities, as he was to receive it from -the thrifty poor who took, on “the security of the great Audley,” the -savings of their youth to secure an annuity for their age. But needy as -the youngsters of that day might be, the usurer was as willing as they -were needy. He lent them, however, with grave remonstrances on their -extravagance, and took the cash they paid him, with an air of paternal -regret. - -His money bred. He formed temporary partnerships with the stewards of -country gentlemen, and, having by the aid of the former gulled the -latter, finished by cheating the associates who had assisted him to his -prey. The annuity-monger was also a philosopher. He never pressed for -his debts when he knew they were safe. When one of his victims asked -where his conscience was, he replied, “We monied people must balance -accounts. If you don’t pay me my annuity, you cheat me; if you do, I -cheat you.” He said his deeds were his children, which nourished best -by sleeping. - -His word was his bond; his hour was punctual; his opinions were -compressed and sound. In his time he was called the great Audley; and -though the Fathers of the Church proclaimed the sin of usury to be the -original sin, Audley smiled at their assertions and went on his way -rejoicing. As his wealth increased he purchased an office in the Court -of Wards; and the entire fortunes of the wards of Chancery being under -his control and that of the other officers of the court, it may be -supposed that Audley’s annuity-jobbing increased. When he quarrelled -with one who disputed the payment of an annuity, and who, to prove his -resisting power, showed and shook his money-bags, Audley sarcastically -asked “whether they had any bottom?” The exulting possessor answered in -the affirmative. “In that case,” replied Audley, “I care not; for in -my office I have a constant spring.” Here he pounced on incumbrances -which lay on estates; he prowled about to discover the cravings of -their owners, which he did to such purpose that, when asked what was -the value of his office, he replied, “Some thousands of pounds to any -one who wishes to get to heaven immediately; twice as much to him who -does not mind being in purgatory; and nobody knows what to him who will -adventure to go to hell.” Charity forbids us to guess to which of these -places Audley went. He did not long survive the extinction of the Court -of Wards, and died “receiving the curses of the living for his rapine, -while the stranger who had grasped the million he had raked together -owed him no gratitude at his death.” - -It must have been the widow of some such shrewd assurer who dared -the dangers of Chancery in 1682, and endeavoured to file a bill, the -purport of which was to compel 500 individuals to declare the amounts -they owed her husband, who is designated as “a kind of insurer.” The -boldness of this woman in attacking 500 persons attracted attention; -and the alarm which must have possessed her creditors was no doubt -heightened by the fact that 60 skins of vellum and 3000 sheets of paper -composed the bill, and that each would be compelled to have a copy, -provided the plaintiff were successful. Not only, however, did Lord -Chancellor North, “amazed at the effrontery of the woman,” dismiss the -bill on the ground of the enormous expense which each defendant would -incur, but he directed the plaintiff’s counsel to refund his charges -and to “take his labour for his pains.” - -FOOTNOTES: - -[5] About as much silver as is now coined into 3_l._ 1_s._ 11_d._ - -[6] Equal in weight to about 2_l._ 1_s._ 3_d._ of our silver coinage. - -[7] Equal in weight to 10_s._ 4_d._ of our present silver coinage. - - - - -CHAP. III. - - JUDAH MANASSEH LOPEZ, THE JEW USURER--HIS TRICK ON THE DUKE - OF BUCKINGHAM--SUSPICIONS CONCERNING HIM.--THE INCREASE OF - LONDON.--POPULATION OF LONDON.--PROCLAMATIONS.--HALLEY’S MOVEMENT IN - LIFE ASSURANCE--HIS TABLES. - - -Among the frequenters of St. Paul’s, when the noble, the merchant, -and the citizen congregated in its walk, was an old man known to all -who met there in their daily avocations as Judah Manasseh Lopez. A -Lombard, a Jew, and a usurer, it was difficult to say whether the -outward respect he received from his customers was not counterbalanced -by the curses he received from the public. The bullying mien of the -self-dubbed captain sunk into a more subdued tone as he asked for loans -or deprecated payment. The spendthrift who was dicing away his paternal -inheritance, and who had security to offer for the money he wanted, -was more indifferent, while the goldsmith shrunk from his approach -with a contemptuous expression he did not always care to conceal. -This man employed his wealth in the purchase and sale of annuities. -He lent to merchants when their vessels failed to bring them returns -in time to meet their engagements. He advanced cash on the jewels of -those whom a disturbed period involved in conspiracies which required -the sinews of war. But annuities were his favourite investment; and to -him, therefore, resorted all that were in difficulties and were able -to deal with him. With the highest and the lowest he trafficked. He -was feared by most, and respected by none. One remarkable feature in -his business was, that no one found it easy to recover the property -he had pledged, provided it much exceeded the amount advanced. In -an extremity, Buckingham, the favourite of Charles, applied to and -received assistance from the Jew on the deposit of some deeds of value. -When the time approached which had been stipulated for repayment, -Lopez appeared before the Duke in an agony of grief, declaring his -strong-room had been broken into, his property pilfered, and the Duke’s -deeds carried away. But Buckingham had dealt too much with men of -this class to believe the story on the mere word of such a Jew. He, -therefore, kept the usurer while he ordered some retainers to proceed -to the city and to search out the truth, placing the Hebrew at the same -time under watch and ward, with an utter indifference to his comfort. -When the messengers returned, they avouched that all Lombard Street was -in an uproar at the violation of its stronghold. Still the Duke was -dissatisfied, and refused to part with his prey until he had received -full value for his deposit. In vain the Hebrew fell on his knees, in -vain did he call on Father Abraham to attest his innocence, for in the -midst of one of his most solemn asseverations Buckingham was informed -that a scrivener was urgent in soliciting an audience, and he saw at -the same time that a cloud came over the face of Lopez. The request of -the scrivener being granted, to the Duke’s astonishment he produced the -missing document, explaining to his Grace that Lopez, believing the -scrivener too much in his power to betray him, had placed it in his -charge until the storm should blow over, but that, fearing the Duke’s -power and trusting to his protection, he had brought it to York House. -On the instant Buckingham confronted the two. The Jew’s countenance -betrayed his crime, and, fawning on the very hem of the Duke’s garment, -he begged forgiveness, and crouched like a dog to procure it. From that -time it is probable that the Duke had his loans on more equitable terms -and on smaller security, as he dismissed the Jew with a consideration -the latter did not deserve. - -But darker and more dangerous things were hinted of this man. He was -well versed in medical lore. He was reputed to possess subtle drugs; -and it was often noticed that the healthiest of those to whom he was -bound to pay life annuities were sometimes cut off in a remarkable way, -and that, too, after they had been closeted with him. Whether Lopez -granted insurances on lives is unknown, but he lived himself to a bad -old age, hated as much as he was feared, and sought after as much as he -was despised. - -Such men made large profits. They knew nothing and they cared nothing -for the chances of life. Their charges covered all risks. And so little -was known of the number of the people, that a few desultory facts -concerning this and a previous period, being gathered from various -sources, may not be unacceptable or uninstructive. Up to this time, -and long after, the population of London and of England was a riddle. -The utmost exaggeration prevailed in all the accounts which we possess -concerning it. Fitzstephen writes of London being peopled with a -multitude of inhabitants; and adds, that, in the fatal wars under King -Stephen, 80,000 men were mustered. Allowing for the martial fury of the -time, this would give a population of 400,000 in the twelfth century -dwelling in London. Everything points to the fact that the metropolis -augmented more than the authorities thought good. - -The progressive increase of London was a continual source of alarm. In -1581 a proclamation was issued, forbidding any new buildings. Elizabeth -caused a statute to be passed to the same effect, because “such -multitudes could hardly be governed, by ordinary justice, to serve God -and obey her Majesty;” and because “such great multitudes of people in -small rooms, being heaped up together, and in a sort smothered, with -many families of children and servants, in one tenement, it must needs -follow, if any plague or any universal sickness come among them, it -would presently spread through the whole city.” These proclamations -were continued. James said, so many people “cumbering the city were -a general nuisance;” adding, that the single women who came from the -country marred their reputations, and that the married lost them. Still -the people flocked, in spite of proclamations, and in opposition to -statutes. Old country establishments crowded by the score to “upstart -London,” “pinching many a belly to paint a few backs, and burying all -the treasures of the kingdom in a few citizens’ coffers.” At last some -effect was produced, not however by the proclamation, but by fining -one Mr. Palmer a thousand pounds. Still, if we may judge by what Howel -writes, the city of London continued to increase “For the number of -human souls breathing in city and suburbs, London may compare with any -in Europe in point of populousness.” This he estimates, taking “within -that compass where the point of the Lord Mayor’s sword reacheth,” at a -million and a half of souls. Foreigners could scarcely understand the -huge concourse which thronged London, and which for a long time baffled -our earlier political economists, who wondered how it was that the -annual deaths outbalanced the annual births. Our satirists were very -hard on the new comers. Ben Jonson describes them as “country gulls,” -who come up every term to learn to take tobacco and see new notions. -They paid heavily for their lesson in London life; and many an annuity -was wrung out of the fat land of the country gentleman from his visit -to the metropolis. Sir Richard Fanshawe, in an elegant and elaborate -poem,--an evidence that the subject occupied public attention,--asks, - - “Who would pursue - The smoky glory of the town, - That may go till his native earth, - And by the shining fire sit down - On his own hearth, - - “Free from the griping scrivener’s hands - And the more biting mercer’s books, - Free from the bait of oiled hands - And painted looks?” - -It is clear, from these and other facts, and from the circumstance -that it would be very difficult to separate the casual visitors from -the fixed inhabitants of London, that up to the year 1700 there was -little information on which to found an argument. All that we possess -is vague and desultory. Lord Salisbury, in a letter written to Prince -Henry prior to 1612, says, “Be wary of Londoners, for there died here -123 last week.” On the 1st of May, 1619, we learn by another source -that the number of deaths in London was from 200 to 300 weekly. At -the accession of James I., London was said to contain little more -than 150,000 inhabitants; and at the restoration of Charles II., -120,000 families were said to be within the walls of London. “Before -the Restoration,” said Sir William Petty, “the people of Paris were -more than those of London and Dublin put together; whereas, in -1687, the people of London were more than those of Paris and Rome.” -Evelyn, again, says, in his Diary, in 1684, that he had seen London -almost as large again as it was at that time. Judging from various -independent sources, however, the population of England at the time of -the Revolution may be fairly estimated as ranging from 5,000,000 to -5,500,000. - -That the tables of Graunt and Petty had produced small practical -effect, and that little or nothing was known as to the chances of -life, may be gathered from a pamphlet printed in 1680, in which the -whole doctrine of the value of life as then understood and acted on -is affirmed: the utmost value allotted to the best life was 7 years, -at which the life of a “healthful man,” at any age between 20 and 40, -was estimated; while that of an aged or sickly person was from 5 to 6 -years, the various limits between these two extremes constituting the -whole range of difference in value. - -Such was the limited nature of the statistics of life when the -Astronomer Royal Halley compiled those calculations which make his name -honoured by directors and actuaries. To him we owe the germ of all -subsequent developments of this science, in that general formula for -calculating the value of annuities which is yet regarded with so much -respect. - -Up to the period in which he lived--the latter half of the seventeenth -century--the town of Breslau, in Silesia, was the only place which -recorded the ages of its dead; and from these Halley drew a table of -the probabilities of the duration of human life at every age. This -was in 1693, and was the first table of the sort ever published.[8] -In it he taught, with great clearness and exactness, the conditions -needful for the formation of rates of mortality; the manner of forming -them with complete geometrical precision; of deducing a corresponding -table of the present state and annual movement of the population; of -reading in them the probability of survivorship of any person taken at -random in a given society; of, in truth, concluding upon the probable -duration of the co-existence of several individuals from the sole -knowledge of their age. He also first developed the true method of -calculating life annuities, taking for his guide the rate of mortality -during five successive years in Breslau. - -That the tables of Dr. Halley were very much wanted may be assumed, -as in 1692 annuities were granted on single lives at 14 per cent., or -only 7 years’ purchase; and that the State took very little trouble to -apply these tables is as true, for we read that, soon after they were -published, annuities were estimated on 1 life at 9 years’ purchase, -on 2 lives at 11 years’, and on 3 lives at 12 years’ purchase. Some -allowance must, of course, be made for the difficulty of raising money -and the difference of interest; still the price paid was out of all -proper proportion. But the most singular circumstance connected with -government annuities at this period is, that, when life annuities were -changed into annuities for 99 years, the owner of a life annuity might -secure an annuity for 99 years, by paying only 4-1/2 years’ extra -purchase. Thus, by the payment of 15-1/2 years’ purchase, a certain -annuity of 99 years could be procured. - -FOOTNOTE: - -[8] The following figures will give some idea of the chances of life as -estimated by Dr. Halley:-- - - Out of 1000 born, 661 will be living at 10 years of age. - ” ” 628 ” 15 ” - ” ” 598 ” 20 ” - ” ” 567 ” 25 ” - ” ” 531 ” 30 ” - ” ” 490 ” 35 ” - ” ” 445 ” 40 ” - ” ” 397 ” 45 ” - ” ” 346 ” 50 ” - ” ” 292 ” 55 ” - ” ” 242 ” 60 ” - ” ” 192 ” 65 ” - ” ” 142 ” 70 ” - ” ” 88 ” 75 ” - ” ” 41 ” 80 ” - ” ” 19 ” 84 ” - - - - -CHAP. IV. - - FIRST TRIAL CONCERNING LIFE ASSURANCE.--THE MERCERS’--ITS - ESTABLISHMENT AND SYSTEM.--THE SUN--JOHN POVEY, ITS PROJECTOR--HIS - CHARACTER.--WAGERS ON THE LIFE OF KING WILLIAM.--NEW ASSURANCES.--THE - AMICABLE--THE MODE IN WHICH IT WAS ESTABLISHED.--NEW ANNUITY - SOCIETIES--ANECDOTES CONCERNING THEM--CLOSE OF THEIR CAREER. - - -It may be judged that life assurance was in operation by the latter -end of the seventeenth century, as a policy was made on the life of -Sir Robert Howard, for one year, from the 3rd of September, 1697. On -the same day in the following year Sir Robert died, and the merchant -refused to pay, on the ground that the policy had expired. Lord Holt, -however, ruled, that “‘from the day of the date’ excluded the day -itself, and that the underwriter was liable.” This appears the first -assurance on a life of which there is positive legal record. - -Reference is usually made to the Amicable Society as the earliest -institution for the assurance of lives; but the Mercers’ Company, in -1698, commenced a scheme for granting life annuities to the nominees -of the assurers, in place of paying down a fixed sum. This was -undertaken at the instigation of Dr. Asheton, and its failure is -a proof that the duration of human life was very little known, or -that sufficient care had not been taken by the Mercers’ Company to -enable them to be annuity-mongers with half the success of Audley the -usurer, or Lopez the Jew. They formed something like a scale, but it -was incomplete. Married men, under 30, were allowed to subscribe but -100_l._; under 40, they might not subscribe more than 500_l._; under -60, they were limited to 300_l._ When this was commenced, it was -considered a very notable plan. It was thought that it would prove a -good business speculation, and, on considerable sums being subscribed, -“the Corporation rejoiced greatly.” It was soon discovered, however, -that the undertaking was founded on a mistake; so the first breach of -faith was in lowering the annuity. This proved insufficient, and the -company became unable to meet their engagements. They had fixed the -payments to their annuitants at the rate of 30 per cent., and now they -saw their funds almost annihilated by the error. At last they stopped -payment altogether; but the distress was so acute, that, recollecting -one or two forced loans they had made to the monarchs of England in -the troublous times of old, they petitioned parliament, in 1747, -for assistance. Their tale was a pitiable one: “At Michaelmas, 1745, -they found themselves indebted to the said charities, and their other -creditors, 100,000_l._; they were liable for present annuities to the -extent of 7620_l._; for annuities in expectancy, 1000_l._ a year more: -the whole of their income being 4100_l._” - -The desired assistance was granted, and it need not be added that the -company is now one of the most flourishing in London. - -If the principles on which the Mercers’ Corporation founded its -operations were erroneous, it must be considered that Government acted -as strangely in its public proposals for life annuities. Nothing can -illustrate more strongly the crudities of the science at this period, -than the fact, that when loans were raised by William III., on life -annuities, no greater annual amount was given to the man of seventy, -whose chances of life were so small, than to the man of thirty, whose -chance was so large. Thus, the State offered 14 per cent., at any age, -and it is curious that these proposals were accepted by very few. It is -true that interest was much higher than at present, but this does not -palliate the fact, that there was no attempt to vary the rate according -to the age. - -Before approaching the next movement, it will not be out of place -to indicate the establishment of one or two offices which have since -added life assurance to that of fire. The Hand-in-Hand was established -in 1696, by about one hundred persons. In 1698 they framed a deed of -settlement, which was enrolled in Chancery. Ten years later, John -Povey, author of the “Unhappiness of England, as to Trade,” projected -the Sun. Finding his attempt very successful, Povey conveyed his rights -to certain purchasers, who, by a deed of settlement, of April, 1710, -erected themselves into the society now familiar as the Sun Fire and -Life Office. - -It is not generally known that this institution printed, at first -weekly and then quarterly, a work which has since proved a valuable -addition to our historic literature. It was, indeed, a general custom -with insurance companies to publish periodical papers in aid of their -business, and was only another mode of that advertising which is so -liberally practised by those of the present century. - -Mr. Povey, the founder of the above company, was a veritable promoter. -Not contented with establishing an office to insure against the chances -of fire, he invented also a scheme to extinguish it, and “Povey’s -fire-annihilator” was then a feature of the time. This gentleman, who -looked “a grave, honest-countenanced, elderly gentleman,” but is -described as “a meddling, restless, and turbulent spirit,” projected a -life assurance company for “4000 healthy persons, between the ages of 6 -and 55,” to be called the Proprietors of the Traders’ Exchange House. -This, like many of his proposals, died a natural death. With those of -his class he was often in hot water, and was accused of plagiarising -the ideas of others. In addition to the offices of which mention has -been made, he formed the Society for Assurance for Widows and Orphans, -the progress of which is lost sight of. At any rate, he comes down to -us as the founder of one of the most liberal fire-offices in existence, -of the capital of which it may be remarked, _en passant_, almost as -little is known as of its projector. - -The war which was undertaken by William, against France, produced a new -form of assurance: not only did wagers on his life become prevalent--a -betting which was but another form of insurance; policies were entered -into on the result of his campaigns. The conspiracies which were formed -against him increased the interest felt; and so uncertain were the -chances of his taking Namur, that 30_l._ were offered down, to receive -100_l._, provided the city and castle were captured before the last day -of September in 1694. At this period, also, a mutual assurance company -was formed to aid an adventurer with funds to raise a vessel which, -laden with the treasures of the East, had been lost on her passage -home; the peculiar feature of the transaction being, that, if any of -the association should die before the object was accomplished, their -share was to be transferred to the remaining adventurers. - -The assurance merchants found their profits endangered in 1706, when -the Bishop of Oxford and Sir Thomas Allen applied to Queen Anne for a -charter to incorporate them and their successors, “whereby they might -provide for their families in an easy and beneficial manner.” The -application was successful, and the AMICABLE, an improvement on the -Mercers’ Company, obtained its charter, the number of shares being -limited to 2000. But that which appears most extraordinary was, the -mode of arranging the payments. The age of the shareholder--from 12 to -45--made no difference in his premium; and whether he were well, or -whether he were dying, was no consideration. Each person paid 7_l._ -10_s._ entrance money, and 6_l._ 4_s._ per annum for life; but, as a -yearly return of 1_l._ 4_s._ was paid to each shareholder, the real -payment was 5_l._ The yearly number of deaths in London was about 1 in -20 at this period, and this fact probably originated the amount of -payment, though nothing could surpass the absurdity of a plan which -made no distinction between an old life and a young one,--between a -healthy and an unhealthy man. It is said that the Amicable had no -data; but Dr. Halley had already published his tables, and Vulture -Hopkins, or Mr. Snow the banker, or any money-monger, would have taught -the directors their error. It is true that success,--at any price, -almost,--was their object, and this was insured by the large payment. -It may be said, also, that it is wrong to judge of past actions by the -aid of present information; but common sense was as general then as -now, and any usurer’s books would have taught the Amicable its mistake. - -The annual income, after deducting expenses, was divided yearly among -the representatives of those who had died. Thus a healthy year, with -only a slight mortality, made the division good; but in an unhealthy -year it was proportionably less. An annual distribution of this kind -was manifestly unsound, if not unfair; and must have been sometimes -severely felt by the representatives of the deceased. The Amicable, -however, may be received as the nursing mother of life assurance at a -period when, little as arithmetical economy was understood, it was -still less acted on. - -Besides the attempt to engraft an annuity society on the Mercers’ -Company, various minor endeavours were made, from 1690 to 1712, to -establish institutions which should grant yearly payments and pay -specific sums to the representatives of the deceased. - -The principle of assurance, applied to other subjects than merchandise, -seemed a sudden light to those who had capital, and did not know how -to employ it; while it was a great boon to those who wanted money, -and did not know how to get it. The latter employed their wits in its -application to subjects which are not yet allowed to be legitimate; -and, while the former, with the praiseworthy caution of men who had -“put money in their purses,” went slowly but surely to work to found -institutions like the Amicable, the Royal Exchange, and the London, the -others did not hesitate to form societies, to frame rules, and to decoy -all they could meet, under titles as promising as their results were -ruinous. - -In 1708 began what were then known as “the little goes” of assurance. -One was held at the Cross Keys, in Wych Street. We gather that each -person subscribed 5_s._ fortnightly, inclusive of policy, stamp, and -entrance money, on condition of 200_l._ being paid to his heirs and -executors. Another was an evident bubble, 5_s._ a quarter entitling -the subscriber’s representatives to receive 120_l._ at his demise; -while a third, called the “Fortunate” Office, was to provide marriage -portions of 200_l._ for those who paid 2_s._ a quarter. If contemporary -accounts are to be trusted, the ravenous appetite for assurance was -something like that which at the present day possesses projectors, -as offices were opened in every part of the town. If one company was -commenced to insure marriage portions, a second was sure to follow to -insure the portions of their children. A mutual life assurance was -instantly followed by a mutual ship assurance. The following notice -from the “British Apollo” will be found to illustrate this speculative -fancy:--“A first and second claim is made at the Office of Assurance -on Marriage, in Roll Court, Fleet Street. The first will be paid on -Saturday next; wherefore, all persons concerned are desired to pay -2_s._ into the joint stock, pursuant to the articles, or they will be -excluded. _The two claimants married each other, and have paid but -2s. each._” They were, however, to receive but 37_l._ Here is another -specimen: “Any person by paying 2_s._ at their entrance for a policy -and stamps, and 2_s._ towards each marriage but their own, when the -number is full, will secure to themselves 200_l._; and in the mean -time, in proportion to the number of subscribers.” This undertaking was -found to answer so well, that many others opened in the same line--one -of them, appropriately enough, in Petticoat Lane. Soon after this, -appears an advertisement from a baptismal office of assurance, where -every subscriber paid 2_s._ 6_d._ towards each infant baptized, until -he had one of his own, when he was to receive 200_l._, “the interest of -which is sufficient to give a child a good education; and the principal -reserved until it comes to maturity.” Most of the projects were systems -of wholesale robbery. For a time, however, they were greedily run -after. “The success of these schemes,” says a chronicler of the time, -“sharpened the invention of the thrifty, and immediately almost every -street in London abounded with insurance offices, where policies for -infants three months old might be obtained for short periods. From -these, they diverged into other ages and various descriptions of -persons.” - -Emblems were placed in windows indicating the allurements of the -“Golden Globe.” Tempting advertisements were inserted in the journals -to show the especial advantages of a new Tontine. Infant or adult, -married or single, were addressed in, “The Lucky Seventy, or the -Longest Liver takes all;” while, paraded in promising forms, and -painted in bright colours, arose societies to keep the subscribers when -they married, and pay for their burials when they died. - -There is something very painful in the recollection that the sufferers -were those who could least afford it. It was not the grasping Hebrew -who invested from his full store. It was not the wealthy East Indian -director, the rich alderman, the over-fed citizen, or the “new-fangled -banker” who lost a small portion of his gold. It was the poor and -thrifty man, who, denying himself to secure his children a provision, -was involved in loss. - -Policies and premiums were in the mouths of all. It was the El-dorado -of the London craftsman, the alchymy of the needy tradesman. The -philosopher’s stone seemed placed before the class that least dreamed -of grasping it: but it was the realisation of the legend in which the -dreamer awakes and finds his golden pieces are turned to slate; it was -the arousing of Analschar from his gorgeous vision. - -The jobbers of Change Alley were not behind; the members of Lloyd’s -entered keenly into competition, usurers trembled with delight at -the prospect of increasing their store, and annuity-mongers threw -themselves with ravenous rapacity on the unwary. Under the name of -Africanus, Steele selects a well-known character of the day to satirise -the “bites and bubble-mongers” of 1710, in “one who has long been -conversant in bartering; who, knowing when Stocks are lowest it is the -time to buy, therefore, with much prudence and tranquillity, thinks it -the time to purchase an annuity for life.” “Sir Thomas told me it was -an entertainment more surprising and pleasant than can be imagined, to -see an inhabitant of neither world, without hand to lift, or leg to -move, scarce tongue to utter his meaning, so keen in biting the whole -world and making bubbles at his exit. Sir Thomas added, he would have -bought twelve shillings a year of him, but that he feared there was -some trick in it, and believed him already dead.” - -There is some confusion between annuities and assurances; it is an -evidence, however, that the public attention was pointed to the -tricks which were current. During this period, there is no trace of -any life-office; but it would appear that the Bills of Mortality were -regarded with interest, from a paper in the “Guardian” being founded on -them, and that they were so regarded is most probably to be traced to -their connection with assurance. The following is an extract from a -quizzical paper bearing on the mortuary registers. Died - - “Of a six-bar gate 4 - Of a quick-set hedge 2 - Broke his neck in robbing a hen-roost 1 - Surfeit of curds and cream 2 - Took cold sleeping at church 11 - Of October 1 - Of fright in an exercise of the train-bands 1.” - -Addison also composed the following bill of mortality in a paper “On -Dying for Love;” and it is a further proof of the attention paid to the -subject, that this great writer took it as a model:-- - -“T. S. wounded by Zelinda’s scarlet stocking, as she was stepping out -of a coach. - -“Tim Tattle killed by the tap of a fan on his left shoulder by -Coquetilla, as he talked carelessly with her at a bow-window. - -“Samuel Felt, haberdasher, wounded in his walks to Islington, by Mrs. -Susanna Cross Stitch, as she was clambering over a stile. - -“John Pleadwell, Esq., of the Middle Temple, assassinated in his -chambers, the 6th instant, by Kitty Sly, who pretended to come to him -for advice.” - -After 1712, these projects ceased to be placed before the town; and -the following odd “bite” had its share in dispersing the hungry crew -who proposed them. “There has been the oddest bite put upon the town -that ever was heard of. We having of late had several new subscriptions -set on foot for raising great sums of money for erecting offices -of insurance,” &c.; “and at length some gentlemen, to convince the -world how easy it was for projectors to impose upon mankind, set up -a pretended office in Exchange Alley, for receiving subscriptions -for raising 1,000,000 of money to establish an ‘effectual’ company -of insurers, as they called it: on which, the day being come to -subscribe, the people flocked in and paid down 5_s._ for every 1000_l._ -they subscribed, pursuant to the Company’s proposals; but after some -hundreds had so subscribed, that the thing might be fully known, the -gentlemen were at the expense to advertize, that the people might have -their money again without any deductions; and to let them know that -the persons who had paid in their money contented themselves with a -fictitious name set by an unknown hand to the receipts delivered out -for the money so paid in, that the said name was composed only of the -first letters of six persons’ names concerned in the said scheme.” - -For a period the people had rest from new propositions: as it was found -necessary to stop these offices for insurances on marriages, births, -christenings, and annuities, and to close the career of gentlemen -without a penny; this being done by the insertion of a clause in an -Act of the 10th of Queen Anne, enacting a penalty of 500_l._ on the -promoters of such societies. - -Unfortunate as these bubble assurance companies might be, unformed and -unintelligent as their conductors proved, and ruinous as they were -to the people who trusted them, they were a movement in the right -direction. The principle of life assurance is so eminently social, -and so important to those who wish to invest their savings for their -successors, that any effort or endeavour to move this science from -the hands of usurers and speculative merchants was to be rejoiced at. -Hitherto it had been entirely in the hands of the monied man. Many had -been honourable in their dealings, but they were ignorant of the trade -in which they invested their money, while a bad business year or the -destruction of a fleet,--a civil war or the arbitrary demands of a -monarch,--might ruin alike assurer and assured. - -Others who traded in it were harpies; who took advantage of the wants -of the applicants, who measured their terms by the requirements of -their customers, who demanded to the last penny, and claimed on the -earliest day. Such men did more harm to the feeling of security in -these transactions than can now be possibly imagined; but the above two -classes only could supply the requirements of the people in the early -annals of annuities and assurance. - - - - -CHAP. V. - - ROYAL EXCHANGE AND LONDON ASSURANCE--THEIR RISE AND PROGRESS.--BUBBLE - ERA.--EPIGRAMS.--OPPOSITION TO THE NEW COMPANIES.--ACCUSATIONS - AGAINST THE ATTORNEY-GENERAL.--LIST OF ASSURANCE - COMPANIES.--EXTRAORDINARY CHARACTER OF MANY.--REMARKABLE CAREER OF LE - BRUN.--DIRECTORS IN TROUBLE. - - -The rise of the Royal Exchange and London Corporations forms no -uninteresting picture of the time in which they were produced. The -bubbles of 1712 had not long passed away, when some of the first -merchants of London, willing to secure to themselves the advantages -which the Amicable as a life, and the Sun as a fire, office possessed, -met in Mercers’ Hall, to petition the crown for a charter to effect -marine and other assurances. The petition was well timed, as upwards -of 150 underwriters had recently failed; many merchants having fallen -to the ground with them, there was every reason in the public clamour -for a safer and more secure mode of investment. About the same time -also another body, of “knights, merchants, and citizens of London,” had -petitioned with the same object. A junction of the two was arranged, -and, under the title of the Royal Exchange Assurance, they endeavoured -to obtain a charter. This was at the commencement of that remarkable -period in commercial history known as the South Sea bubble. The above -proposition, however, was well grounded; and so many were prevented -from subscribing, that, under the title of the London Assurance, a -company of equal magnitude was commenced. - -Their petitions made slow progress; but the Royal Exchange, without -waiting the issue, commenced business, and, in nine months, had insured -property to the amount of 2,000,000_l._ sterling. While these companies -were in progress, the great bubble era came. With it, excepting as -regards assurance, this volume has nothing to do. But the public found -this pressed closely on its attention. When men were willing to receive -a company with fair promises in the place of fair prospects,--when -persons ran about the Alley exclaiming, “Give us something to subscribe -to; we care not what it is,”--a practice so sound as assurance was -certain to be applied in every form that the hurried ingenuity of -speculators could devise. Besides the proposed assurances on the lives -of men, cattle were brought into use, and 2,000,000_l._ were demanded -for assuring horses. Of this it was said:-- - - “You that keep horses to preserve your ease, - And pads to please your wives and mistresses, - Insure their lives, and if they die we’ll make - Full satisfaction, or be bound to break.” - -Of an office for marine assurance:-- - - “In vain are all insurances, for still - The raging wind must answer heaven or hell; - To what wise purpose must we then insure? - Since some must lose whate’er the seas devour.” - -The life and fire-companies were also epigrammatised with as much point -as the epigrammatist could confer. Thus, on the former he wrote:-- - - “Come all ye generous husbands with your wives, - Insure round sums on your precarious lives, - That, to your comfort, when you’re dead and rotten, - Your widows may be rich when you’re forgotten.” - -With regard to fire-companies:-- - - “Projecting sure must be a gainful trade, - Since all the elements are bubbles made; - They’re right that gull us with the dread of fire, - For fear makes greater fools than fond desire.” - -Another company, having at its head “three English peers, two bishops, -four Irish peers, with many eminent merchants and gentlemen,” -petitioned the king that it might be incorporated for purchasing and -improving forfeited and other estates in Great Britain, for granting -annuities, and for insuring lives; “seeing this will unite by interest -many of the king’s subjects against the Pretender and his adherents -for ever. In order to which, several of the petitioners have sent -persons into Scotland for purchasing the forfeited estates there, and -have since, by a voluntary subscription to the Governor and Company -of Undertakers for raising the Thames water in York Buildings, raised -a joint stock of 1,200,000_l._, on the credit of which estates they -propose to grant annuities for and to insure on lives; for the benefit -of such of his Majesty’s subjects as are straitened in their fortunes -by the reduction of interest.” - -When this petition was referred to the Crown lawyers the Amicable -employed counsel to oppose it, and a vigorous warfare was carried on. -Rejecting with scorn the idea of any rival being of use to the world, -and pointing to its own venerable standing of fourteen years, the -Amicable called the new company a “company of upstarts.” The latter -retorted that its opponents had grown old and supine, and that the -safety of the entire commercial world depended on their success; that, -having a large capital, there would be a greater security than in a -society like the Amicable; and they backed their argument with bribes -to all who could be supposed to have any interest. Their arguments and -their bribes, however, were futile, and they missed their object. - -Even the Royal Exchange and London Corporation did not escape the -charge of having attempted to forward their interests by fees -disproportioned to the services which were sought. The age at which we -have arrived was the age of corruption. Whispers passed through every -coffee-house in the city that the Right Honourable Nicholas Lechmere -was accused of betraying the trust reposed in him, and that some -persons concerned in various undertakings had endeavoured to obtain -charters by corruption and other undue practices. These reports were -attributed at the time to the private assurers, who were by no means -pleased at so formidable a rivalry. The proper degree of indignation -having been exhibited by the Right Honourable gentleman, the rumour was -found to have emanated from Sir William Thompson, who broadly asserted -that very unjustifiable methods had been taken by one Bradley and -Billinghurst in order to obtain a charter for Lord Onslow’s Assurance -Company; that large sums of money had been received by his Majesty’s -Attorney-General, contrary to his duty, to influence him in his -opinion; and that there were public biddings for these charters, as if -at an auction, in the chambers of the Attorney-General. Such assertions -being somewhat damaging to the character of an official gentleman, -the committee appointed to inquire into “petitions for companies for -insurance, annuities, &c. &c.,” instituted a minute inquiry. As all -the witnesses represented some proposed company, they were unanimous -in asserting its virtue. Not one of them ever dreamed of offering Mr. -Attorney more than his legal fee. Not one of them was not content to -rest the success of his case on its singular merits only. - -Their examination lets us into a picture of the customs of the time. -On a certain occasion as many as 150 met in the Attorney-General’s -chambers, where the question was debated with great warmth; one party -contending, with all the eloquence of self-interest, that a new company -for the purpose of assurance would be very beneficial to the nation; -the opposite party asserting that no such company was requisite, and -that the nation would suffer from it. The advocates representing the -underwriters proved that there were private adventurers ready to -undertake all the business that could be brought; and, in return, -the advocates for the companies produced a list of failures among -the private assurers, and a calculation of the loss the public had -sustained through them. The general tenor of the evidence went to clear -Mr. Attorney, but it tended to criminate the applicants for charters. -One company gave its agent authority to pursue “all proper methods;” -and, as the agent had interpreted these words “to bribe all he came -near,” they could only express their regret. Another company declared -its purity with much vehemence; but, on close examination, it was found -to arise from its poverty. Moral feeling was utterly extinct. The cry -with all was, “Give!” “Give!” said the Attorney-General’s clerk. “You -must give something; they have given something handsome on the other -side,” said the Attorney-General himself. One witness deposed: “He, -with some others, went to the chambers of the latter, and, having -procured access, informed him they were come to wait on him with his -fee; but Mr. Attorney said, ‘What do they come here for? Why do they -not leave it with my clerk?’ The reply was, ‘It was matter of weight, -and they desired to give it him themselves.’ Sir William Chapman then -gave the fee, recommending the assurance company to the Attorney’s -favour, saying, ‘The company would speak for itself, and hoped, if it -should be found to be of use to the nation, that he would favour it,’ -and some words of that kind, and then they withdrew.” The accusation -failed, the decision being, “That the Right Honourable Nicholas -Lechmere had discharged his trust, in the matters referred to him by -his Majesty in Council, with honour and integrity.” - -In the mean time the two new companies proceeded slowly. “Onslow’s -Insurance,” as the Royal Exchange was called, and “Chetwynd’s Bubble,” -the title given to the London, were hawked in Change Alley along -with companies for “importing jackasses” and for “fatting hogs.” The -House of Commons was privately importuned by lavish promises, and -publicly solicited in two letters printed and given to every member. -Even in that age of corruption their bribery proved vain; and had not -a fortunate chance turned up in their favour, their application for -charters might have been dismissed with contempt. By some inadvertence, -the grand Committee of Supply had been dismissed before provision -could be made for the arrears in the civil list. The ministers were in -despair; and the companies took advantage of the necessities of the -State to offer the large sum of 600,000_l._, on condition of receiving -his Majesty’s charter for their respective companies. The offer was -eagerly grasped by the ministry; and on evidence being given of the -respectability of the members,--of the cash lodged at the Bank to meet -losses,--of their funded property, and of the amount of the business -transacted,--Mr. Aislabie, Chancellor of the Exchequer, presented to -the House the following message:-- - -“His Majesty, having received several petitions from great numbers -of the most eminent merchants of the city of London, humbly praying -he would be graciously pleased to grant them his letters patent for -erecting corporations to assure ships and merchandise, and the said -merchants having offered to advance and pay a considerable sum of -money for his Majesty’s use in case they may obtain letters patent -accordingly; his Majesty, being of opinion that erecting two such -corporations, exclusive only of all other corporations and societies -for assuring of ships and merchandise, under proper restrictions and -regulations, may be of great advantage and security to the trade and -commerce of the kingdom, is willing and desirous to be strengthened -by the advice and assistance of this House in matters of this nature -and importance. He, therefore, hopes for their ready concurrence to -secure and confirm the privileges his Majesty shall grant to such -corporations, and to enable him to discharge the debts of his civil -government without burdening his people with any aid or supply.” - -A bill was then ordered to be brought in, and the “most dutiful -Commons” waited on his Majesty with an address of thanks “for -communicating the application for an insurance company,” it being “an -instance of so much condescension as deserved the highest return of -duty and thankfulness.” - -Each of the companies thus established had power to purchase lands -to the value of 1000_l._ yearly. No person could be a director of -the London Assurance and Royal Exchange at the same time. Each -corporation was to pay 300,000_l._ for its charter; but though this -was a chief condition, the difficulties into which they fell induced -the government, when life assurance was added to that of marine and -fire in 1721, to absolve the proprietors from paying such amount of the -300,000_l._ as remained unpaid. - -The following is the most correct list which can be obtained of the -assurance projects of the South Sea bubble era:-- - -1. The Royal Exchange. - -2. The London Assurance. - -3. For a general insurance on houses and merchandise, at the Three -Tuns, Swithin’s Alley, 2,000,000_l._ - -4. For granting annuities by way of survivorship, and providing for -widows, orphans, &c., at the Rainbow, Cornhill, 1,200,000_l._ - -5. For insuring houses and goods from fire, at Sadler’s Hall, -2,000,000_l._ - -6. For insuring houses and goods in Ireland, with an English earl at -the head of it. - -7. For securing goods and houses from fire, at the Swan and Rummer, -2,000,000_l._ - -8. Friendly society for insurances. - -9. For insuring ships and merchandise, at the Marine Coffee-house, -2,000,000_l._ - -10. British Insurance Company. - -11. For preventing and suppressing thieves and robbers, and for -insuring all persons’ goods from the same, at Cooper’s, 2,000,000_l._ - -12. Shales’s Insurance Company. - -13. For insuring seamen’s wages, Sam’s Coffee-house. - -14. Insurance Office for horses dying natural deaths, stolen, or -disabled, Crown Tavern, Smithfield. - -15. A company for the insurance of debts. - -16. A rival to the above for 2,000,000_l._, at Robin’s. - -17. Insurance Office for all masters and mistresses against losses they -shall sustain by servants, thefts, &c., 3000 shares of 1000_l._ each, -Devil Tavern. - -18. For a general insurance in any part of England. - -19. A copartnership for insuring and increasing children’s fortunes, -Fountain Tavern. - -20. For carrying on a general insurance from losses by fire within the -kingdom. - -21. Insurance from loss by Garraway’s Fishery, Crutchley’s, at -Jonathan’s Coffee-house. - -22. Mutual Insurance for Ships. - -23. Symon’s Assurance on Lives. - -24. Baker’s second edition of Insurance on Lives. - -25. William Helmes, Exchange Alley, Assurance of Female Chastity. - -26. Insurance from house-breakers. - -27. Insurance from highwaymen. - -28. Assurance from lying. - -29. Plummer and Petty’s Insurance from death by drinking Geneva. - -30. Rum Insurance. - -A mere glance at this list will show that the ideas conveyed by some of -the titles were sound and salutary, and that they are now being brought -into action. It is true that we cannot yet insure our homes against -house-breakers, or our persons from highwaymen; we cannot yet insure -our poor population from death if they drink too much rum or Geneva; -we certainly have yet no assurance against lying, however necessary -it may be in this age of projects; nor have we, like William Helmes, -of Exchange Alley, commenced a company to insure female chastity. -These were Utopian schemes into which we have not yet entered; but -with many of the more practical we are growing familiar. The present -“Agricultural Society” answers to that for insuring cattle. The -“Guarantee Company” has adopted that of “insuring to all masters and -mistresses the losses they may sustain by their servants.” The company -for the “insurance of debts” is at the present day fairly represented -by the “Commercial Credit Mutual Assurance Company;” nor is there much -doubt that the system will be spread to a still greater extent. The -society for insuring seamen’s wages was very desirable, as the sailor -never received his pay in cash, and parted with his tickets at a heavy -discount. To this some of our naval losses may be attributed, as our -best men went over to the enemy in consequence. A company, therefore, -which should cash the seamen’s tickets at a fair rate would have been a -national good. - -Of course, schemes were plentiful enough, and many plans were commenced -with no other view than that of receiving deposits and spending them. -One of the offices was started by an old man called Le Brun. In 1690, -he had promised to bring up pearls and gold from sunken ships. In 1710, -he had been conspicuous in offering strange benefits to all who joined -his Marriage and Widows’ Assurance Company; and in 1720, he was ready -with something new. His life had been one of adventurous daring. He -had owned a privateer when privateers were pirates. He had been, as -a boy, with Sir Henry Morgan in his bucaneering attack on Panama. He -had accompanied Paterson in his ill-fated Darien expedition. But in -all had he failed to procure the gold for which his soul thirsted, and -that which he did obtain was spent in riot. When the Mississippi scheme -was acting he was in Paris, and now he came over in time to propose -a wonderful project for the benefit of all who would risk 5_l._ By -this “Office of assurance and annuity for every body,” any person who -paid 5_l._ was to be assured of receiving 100_l._ per annum, “as soon -as a sufficient number had subscribed;” and it need hardly be added -that, as this “sufficient number” never did subscribe, the assurance -of M. le Brun was all that the unhappy subscribers beheld for their -money. To prevent the public from suffering by the arts of such men as -these, legal proceedings were resorted to; and when the proclamation -was issued, not only did it destroy the bubbles, but it produced a -serious effect on the two chartered companies. It is probable that they -had been “rigging the market,” as the directors were ordered to attend -the authorities, in order that they might receive a fitting rebuke; -and it must have been a very impressive, though not a very picturesque -sight, to see a body of respectable, square-toed, elderly gentlemen, -with brown coats and cocked hats, listening with subdued awe, as they -were sternly cautioned “to keep strictly to the limitation of their -respective charters, _or it would be the worse for them_.” - -That they took warning from this caution may be deduced from the -circumstance already stated, that when they petitioned to be released -from the payment of so much of the 300,000_l._ as was not paid[9], the -Chancellor of the Exchequer signified his consent, and a clause was -inserted to that effect in a bill then passing through the House. - -It must not be supposed that any more scientific system than that -adopted by the Amicable Society guided these companies. On the -contrary, whether an applicant were 12 or whether he were 45, one -premium was asked. The policy was granted for a single year, and -renewed without reference to age or to health. The earliest document -possessed by either of these companies is dated 25th November, 1721. It -was granted by the London Assurance to Mr. Thomas Baldwin, on the life -of Nicholas Bourne, for 100_l._, five guineas being the premium for -twelve months; and this was the annual per centage paid for many years. -With such a system, it is not to be wondered that the success of the -company was slow. - -FOOTNOTE: - -[9] The total amount paid by each company was 150,000_l._ - - - - -CHAP. VI. - - SKETCH OF DE MOIVRE.--HIS DOCTRINE OF CHANCES.--KERSSEBOOM.--DE - PARCIEUX.--HODGSON.--DODSON.--FIRST FRAUD IN LIFE ASSURANCE--ITS - ROMANTIC CHARACTER.--THOMAS SIMPSON.--CALCULATIONS OF DE BUFFON. - - -To the same year which witnessed the proposition for the new companies -we are indebted for the work entitled the “Doctrine of Chances,” -written by Abraham de Moivre, who, owing to the revocation of the Edict -of Nantes, was compelled to seek shelter in England, where he perfected -the studies he had commenced in his own country. In his boyhood he -had neglected classics for mathematics, to the great surprise of -his master, who often asked “what the little rogue meant to do with -those ciphers.” In 1718, he published the first edition of the above -book; and a few extracts from this, which led him afterwards to his -hypothetical application of those chances to the survivorship of life, -may not be unacceptable; as, though the author deemed it wise to -apologise in his dedication for publishing a work which “many people -in the world might think had a tendency to promote play,” yet his -volume will prove the best apology. The book is very entertaining in -its character, and is an evidence of an inquiring and mathematical mind -employing itself upon trifling questions rather than remain idle. Thus, -Case 1. is “To find the probability of throwing an ace in two throws of -one die.” And this kind of problem he varied to almost every possible -form. There is “the probability of throwing an ace in three throws,” of -“throwing an ace in four throws,” of “two aces in two throws,” of “two -aces in three throws,” worked out in a most exact and elaborate manner. -From dice he proceeded to lotteries, and showed how many tickets -ought to be taken to secure the probability of a prize. The volume, a -considerable quarto, was nothing more than an amusing book on gambling -and its various chances. But it produced a better effect. A few years -later, he published something more worthy of him, in his “Doctrine of -Chances, applied to the Valuation of Annuities on Lives,” in which he -says, with some appearance of surprise, “Two or three years after the -publication of the first edition of my ‘Doctrine of Chances,’ I took -the subject into consideration; and consulting Dr. Halley’s tables of -observation, I found that the decrements of life, for considerable -intervals of time, were in arithmetical progression; for instance, out -of 646 persons of 12 years of age, there remain 640 after 1 year; 634 -after 2 years; 628, 622, 616, 610, 604, 598, 592, and 586, after 3, -4, 5, 6, 7, 8, 9, and 10 years respectively, the common difference of -those numbers being 6. Examining afterwards other cases, I found that -the decrements of life for several years were still in arithmetical -progression, which may be observed from the age of 54 to the age of 71, -where the difference for 17 years is constantly 10.” - -The greatest difficulty which occurred to him was to invent practical -rules that might readily be applied to the valuation of several lives, -“which was, however, happily overcome, the rules being so easy that, by -the help of them, more can be performed in a quarter of an hour, than -by any method before extant in a quarter of a year.” - -It was first published in 1725; and finding thus from Halley that, for -several years together the decrement of life was uniform, it being only -in youth and old age any considerable deviation took place, he founded -an hypothesis that it was uniform from birth to extreme old age; in -other words, that out of a given number of persons living at any age, -“an equal number die every year until they are all extinct.” On this -he gave a general theorem, by which the values of annuities on single -lives might be easily determined. This was of great use at the time, no -table of the real value of annuities having then been published, except -a very contracted one founded on Halley’s paper; and if subsequent -investigations proved that De Moivre was utterly wrong, his conclusions -formed the basis of many a future calculation. - -Although the ability of De Moivre was recognised by the Royal Society -when it appointed him arbitrator in the contest betwixt Newton and -Leibnitz, and although Newton, when applied to for an explanation of -his own works, would often say “Go to De Moivre, he knows better than I -do,” yet it is to be feared that golden opinions were won by him more -freely than guineas. - -It is sufficiently known that the coffee-houses of the eighteenth -century were the resort of all who sought intelligence or loved the -company of the wits and fine men about town. To one of these, in St. -Martin’s Lane, De Moivre went, where it was customary to apply to him -for the solution of many questions connected with annuities, and for -answers to queries concerning games of hazard, which were propounded to -him by those who hoped to turn the chance of loss into a certainty of -gain. The payment of these questions was his chief mode of subsistence; -and there is something unpleasant in the memory of this man, compelled, -in his old age, to be at the bidding of gamesters, and to consort with -men who lived on the town by their wits. - -The opinion of posterity is divided upon his merits. “By the most -simple and elegant formulæ,” says Francis Baily, “he pointed out the -method of solving all the most common questions relative to the value -of annuities on single and joint lives, reversions, and survivorships.” -The subsequent editions of his works prove that he was aware of his -errors of detail, by correcting them. He enlarged the boundaries of the -science which he loved, and encouraged others to follow in the same -path. Although his hypothesis may not be applicable to all occasions -and circumstances, and though later discoveries proved that it could -not be always safely adopted, “nevertheless it is still of great use -in the investigation of many cases connected with this subject, and -will ever remain a proof of his superior genius and ability.” Such is -the opinion of Baily on the merits of De Moivre; but it has been added -by Morgan, that “on the whole the hypothesis of De Moivre has probably -done more harm than good, by turning the attention of mathematicians -from investigating the true laws of mortality.” - -In 1737, an attempt was made to calculate the number of the people, -which was estimated at 6,000,000, an amount probably not very far from -the mark; as in 1688 the population was reckoned at a little over -5,000,000. Some important assistance was rendered in 1738, by the -publication of Kersseboom’s tables, taken from the records of life -annuities in Holland[10]; and as the ages of the annuitants had been -there recorded for 125 years, they proved a considerable aid to those -interested. So small was the progress made in England by 1746, that -Dr. Halley’s Breslau Tables and those of M. Kersseboom were the only -ones which gave anything like a representation of the true laws of -mortality. In this year, however, the “Essai sur les Probabilités de -la Durée de la Vie Humaine” of M. De Parcieux, with several valuable -tables deduced from the mortuary registers of religious houses -in France, and from the nominees in the French tontines, were an -additional contribution to our information. - -The first effort to show the value of annuities on lives from the -London Bills of Mortality is attributable to James Hodgson. Nor was -this endeavour uncalled for or unnecessary. Many assurance offices -had arisen, undertaking to grant these annuities; and the tables -principally in use were founded on the decrease of life at Breslau. But -by the Breslau Tables, half the people lived till they were about 41 -years of age, while in London half did not reach the age of 10. This -was a vast difference in the estimate of mortality, and affected the -price of annuities in a proportionate degree. But if the Breslau Tables -calculated life at too high a rate, it was equally evident that the -London Tables made them too low; it is obvious, therefore, that the -value of a life annuity founded on any confined observations would be -unsuitable to the general annuitant; and it is evident that a scale of -prices should have been based on a more enlarged foundation. - -The work of Mr. Hodgson deserves very great attention, and the notice -of the reader is called to its investigation, as the conclusions were -arrived at after great labour, and are a specimen of the time and -trouble bestowed on the subject. “The easy way of raising money for -public uses,” says Mr. Hodgson, “by granting annuities upon lives, has -met with so great encouragement that there is no room to doubt it will -be carried down to future times.” The following statements of this -gentleman will be read with surprise by those who are acquainted with -the chances of life as calculated at the present day. He estimated that -“1000_l._ would purchase an annuity of 70_l._ per annum for a life of -29 years 10 months, when money is valued at 3 per cent. per annum; that -the same sum will purchase the same annuity for a life of 23 years, -when money is valued at 4 per cent. per annum; and that the same sum -will purchase the same annuity for a life of 23 years, when money is -valued at 5 per cent. per annum; and that it will purchase the same -annuity for a life of 16 years 2 months, when money is valued at 6 per -cent. - -“It appears that the highest value of a life is when the person is -about 6 years of age, and that from the birth to that time the value of -lives decrease, as they do from that time to the utmost extremity of -old age; that a life of 1 year old is nearly equal in value to a life -of 7 years old; that a life of 3 years old is nearly equal in value to -a life of 12 years old; that a life of 4 years old is nearly equal in -value to a life between 9 and 10 years; and that a life of 5 years is -nearly equal in value to a life of 7 years of age. And hence arose the -custom of putting the value of the lives of minors upon the same value -with those of a middling age, which at the best is but a bold guess, -and made use of for no better reason, than that they knew of no better -way to find the true value.” - -Such was a portion of Mr. Hodgson’s contribution in 1747 to vital -statistics. This work was followed in 1751 by the “Observations on the -past Growth and present State of the City of London” of Corbyn Morris, -containing tables of burials and christenings from 1601 to 1750. The -tables were important in themselves, and the book is noticeable as -containing a proposal to remodel the Bills of Mortality. - -The topic was particularly interesting to mathematical men. In 1753, -Mr. James Dodson pursued the subject, and solved in his “Repository” -an immense variety of questions. Hitherto a table deduced by Simpson -from the London Bills of Mortality, was the only one taken from real -observation. But it need not be said that London was a very limited -theatre on which to found the payment of premiums. The number of -persons who died there in a given time, doubled that of other and more -healthy cities. It was impossible to separate the casual visitors from -the natives, in the record of deaths. It was equally difficult to -divide those who had been born there, from those who were naturalised -by virtue of a long and continued residence. The city, which has ever -been the land of promise to the country, brought adventurers from the -rural districts in a continued stream. The difficulties which prevented -correct information from spreading may be judged by the statement that, -from 1759 to 1768 a third more deaths than births were registered, -the average annual burials being 22,956 to 15,910 of births. In the -previous 10 years, the excess had been 10,500, or near half the -burials. The baptismal registries were also very deficient in that -large class denominated sectarians; Jews, Quakers, Roman Catholics, -and all who refused to recognise the rites of the English Church being -excluded. It required, therefore, care and calculation of no ordinary -character to make any approximation to the truth; and Mr. Dodson -believed he would be nearer it, by adopting the opinions of De Moivre -as the ground work of his tables, rather than by entering on a sea of -uncertain and hypothetical calculations. - -In 1754, a further “valuation of annuities on lives,” deduced also from -the London Bills of Mortality was published. By this it appeared that -the work of Mr. Hodgson had not produced much effect in sending the -Breslau Tables out of general use; for, says the author, “I think it -very unreasonable that a poor citizen of London should be made to pay -for an annuity according to the probability of the duration of life at -Breslau, where, as appears from the bills of mortality, one-half of the -people that are born live till they are about 41 years of age, whereas -at London one-half die before they arrive at the age of 13.” - -The first known fraud in assurance is one of the most singular in -its annals. The reader must judge for himself of the circumstances -attending it; but there is no doubt that others far more fearful in -their results have since been practised. - -About 1730, two persons resided in the then obscure suburbs of St. -Giles’s, one of whom was a woman of about twenty, the other a man -whose age would have allowed him to be the woman’s father, and who was -generally understood to bear that relation. Their position hovered on -the debatable ground between poverty and competence, or might even be -characterised by the modern term of shabby genteel. They interfered -with no one, and they encouraged no one to interfere with them. No -specific personal description is recorded of them, beyond the fact that -the man was tall and middle aged, bearing a semi-military aspect, and -that the woman, though young and attractive in person, was apparently -haughty and frigid in her manner. On a sudden, at night time, the -latter was taken very ill. The man sought the wife of his nearest -neighbour for assistance, informing her that his daughter had been -seized with sudden and great pain at the heart. They returned together, -and found her in the utmost apparent agony, shrinking from the approach -of all, and dreading the slightest touch. The leech was sent for; but -before he could arrive she seemed insensible, and he only entered the -room in time to see her die. The father appeared in great distress, -the doctor felt her pulse, placed his hand on her heart, shook his -head as he intimated all was over, and went his way. The searchers -came, for those birds of ill-omen were then the ordinary haunters of -the death-bed, and the coffin with its contents was committed to the -ground. Almost immediately after this the bereaved father claimed from -the underwriters some money which was insured on his daughter’s life, -left the locality, and the story was forgotten. - -Not very long after, the neighbourhood of Queen Square, then a -fashionable place, shook its head at the somewhat unequivocal -connection which existed between one of the inmates of a house in -that locality, and a lady who resided with him. The gentleman wore -moustaches, and though not young, affected what was then known as the -macaroni style. The lady accompanied him everywhere. The captain, -for such was the almost indefinite title he assumed, was a visitor -at Ranelagh, was an _habitué_ of the Coffee-houses, and being an -apparently wealthy person, riding good horses and keeping an attractive -mistress, he attained a certain position among the _mauvais sujets_ of -the day. Like many others at that period, he was, or seemed to be, a -dabbler in the funds, was frequently seen at Lloyd’s and in the Alley; -lounged occasionally at Garraway’s; but appeared more particularly to -affect the company of those who dealt in life assurances. - -His house soon became a resort for the young and thoughtless, being -one of those pleasant places where the past and the future were alike -lost in the present; where cards were introduced with the wine, and -where, if the young bloods of the day lost their money, they were -repaid by a glance of more than ordinary warmth from the goddess of the -place; and to which, if they won, they returned with renewed zest. One -thing was noticed, they never won from the master of the house, and -there is no doubt, a large portion of the current expenses was met by -the money gambled away; but whether it were fairly or unfairly gained, -is scarcely a doubtful question. - -A stop was soon put to these amusements. The place was too remote -from the former locality, the appearance of both characters was too -much changed to be identified, or in these two might have been traced -the strangers of that obscure suburb where as daughter, the woman was -supposed to die, and as father, the man had wept and raved over her -remains. And a similar scene was once more to be acted. The lady was -taken as suddenly ill as before; the same spasms at the heart seemed to -convulse her frame, and again the man hung over her in apparent agony. -Physicians were sent for in haste; one only arrived in time to see her -once more imitate the appearance of death, while the others, satisfied -that life had fled, took their fees, “shook solemnly their powdered -wigs,” and departed. This mystery, for it is evident there was some -collusion or conspiracy, is partially solved when it is said, that many -thousands were claimed and received by the gallant captain from various -underwriters, merchants, and companies with whom he had assured the -life of the lady. - -But the hero of this tradition was a consummate actor; and though -his career is unknown for a long period after this, yet it is highly -probable that he carried out his nefarious projects in schemes which -are difficult to trace. There is little doubt, however, that the -_soi-disant_ captain of Queen Square was one and the same person who, -as a merchant, a few years later appeared daily on the commercial -walks of Liverpool; where, deep in the mysteries of corn and cotton, -a constant attender at church, a subscriber to local charities, and a -giver of good dinners, he soon became much respected by those who dealt -with him in business, or visited him in social life. The hospitalities -of his house were gracefully dispensed by a lady who passed as his -niece, and for a time nothing seemed to disturb the tenour of his -way. At length it became whispered in the world of commerce, that his -speculations were not so successful as usual; and a long series of -misfortunes, as asserted by him, gave a sanction to the whisper. It -soon became advisable for him to borrow money, and this he could only -do on the security of property belonging to his niece. To do so it -was necessary to insure their lives for about 2000_l._ This was easy -enough, as Liverpool, no less than London, was ready to assure anything -which promised profit, and as the affair was regular, no one hesitated. -A certain amount of secresy was requisite for the sake of his credit; -and availing himself of this, he assured on the life of the niece -2000_l._ with, at any rate, ten different merchants and underwriters in -London and elsewhere. The game was once more in his own hands, and the -same play was once more acted. The lady was taken ill, the doctor was -called in and found her suffering from convulsions. He administered a -specific and retired. In the night he was again hastily summoned, but -arrived too late. The patient was declared to be beyond his skill; and -the next morning it became known to all Liverpool that she had died -suddenly. A decorous grief was evinced by the chief mourner. There was -no haste made in forwarding the funeral; the lady lay almost in state, -so numerous were the friends who called to see the last of her they had -visited; the searchers did their hideous office gently, for they were, -probably, largely bribed; the physician certified she had died of a -complaint he could scarcely name, and the grave received the coffin. -The merchant retained his position in Liverpool, and bore himself with -a decent dignity; made no immediate application for the money, scarcely -even alluding to the assurances which were due, and when they were -named, exhibited an appearance of almost apathetic indifference. He -had, however, selected his victims with skill. They were safe men, and -from them he duly received the money which was assured on the life of -the niece. - -From this period he seemed to decline in health, expressed a loathing -for the place where he had once been so happy; change of air was -prescribed, and he left the men whom he had deceived, chuckling at the -success of his infamous scheme. - -It need not be repeated, that the poverty-stricken gentleman of the -suburbs, the gambling captain of Queen Square, and the merchant of -Liverpool, were identical. That so successful a series of frauds was -practised appears wonderful at the present day; but that the woman -either possessed that power of simulating death, of which we read -occasional cases in the remarkable records of various times, or that -the physicians were deceived or bribed, is certain. There is no other -way of accounting for the success of a scheme which dipped so largely -into the pockets of the underwriters. - -The next movement in the scientific annals of life assurance was made -by Thomas Simpson, a natural and self-taught mathematician, whose -life prior to throwing himself on the world of London for support had -been somewhat of a vagrant one. He had cast rustic nativities, told -fortunes, advanced courtships, and occasionally varied his vagabondism -by undertaking to raise the devil, an attempt in which he was so -successful, that he sent his pupil mad, and was obliged himself to -leave the village. In 1740, he produced a volume “On the Nature and -the Laws of Chance;” in 1742, this was followed by his “Doctrine of -Annuities and Reversions,” deduced from general and evident principles, -with tables showing the value of joint and single lives. In 1752, he -made an additional contribution to the statistics of annuities, as -he published in his “Select Exercises” a supplement, wherein he gave -new tables of the values of annuities on two joint lives, and on the -survivor of two lives, more copious than hitherto. He first attempted -to compute the value of joint lives; but as these were still taken from -the London Bills of Mortality, they were by no means fit for general -acceptance. He treated his subject, however, more broadly and clearly -than it had been previously treated, giving some of the best tables -of the values of life annuities, which were published for many years. -Though the manner in which they might be computed had been shown by -Dr. Halley, it is to the self-taught Simpson we are indebted for their -practical application. - -In 1760, M. Buffon published a further contribution to the statistics -of assurance, in a table of the probabilities of life, estimated -from the mortality bills of three parishes in Paris, and two country -parishes in its neighbourhood. - -The following are some of his calculations:--“By this table,” says the -author, “we may bet 1 to 1 that a new-born infant will live 8 years; -that a child of one year old will live 33 years more, that a child of -full two years old will live 33 years and 5 months more, that a man of -thirty will live 28 years more; that a man of forty will live 22 years -longer, and so through the other ages.” - -Buffon adds, “The age at which the longest life is to be expected is 7, -because we may lay an equal wager, or 1 to 1, that a child of that age -will live 42 years and 3 months longer. That at the age of twelve or -thirteen, we have lived a fourth part of our life, because we cannot -reasonably expect to live 38 or 39 years longer; that in like manner -at the age of 28 or 29, we have lived one-half of our life, because we -have but 28 years more to live; and lastly, that before fifty we have -lived three-fourths of our life, because we can hope but for 16 or 17 -years more.” - -Some profound moral reflections followed these estimates; and as a -critic of the day “thought all serious remarks out of place in an -arithmetical calculation, and that M. Buffon had better reserve them -for his book on beasts,” the reader will not be troubled with their -repetition. He will not, however, be displeased to read the remarks on -this table, by one of the annotators of the day. - -“For insuring for 1 year the life of a child of three years old we -ought to pay 10 per cent., for as it has by M. Buffon’s table an -equal chance of living 40 years, it is 40 to 1 that it does not die -in a year. In the same manner we ought to pay but 3 per cent. for -insuring for 1 year the life of a lad of nineteen or twenty; but 4 -per cent. for insuring for 1 year the life of a man of thirty-five; -and 5 per cent. per annum for insuring for 1 year the life of a man -of forty-three; after which the insurances ought to rise above 5 per -cent. in proportion to the advance of a person’s age above forty-three. -So that a man of seventy-seven ought to pay 25 per cent., and a man of -eighty-five 33-1/2 per cent. for insuring his life for 1 year.” - -FOOTNOTE: - -[10] By Kersseboom’s table, out of 817 persons of 20 years of age, all -living at the same time-- - - 711 will have lived to 30 years - 605 ” ” 40 ” - 507 ” ” 50 ” - 382 ” ” 60 ” - 245 ” ” 70 ” - 100 ” ” 80 ” - 10 ” ” 90 ” - -By De Parcieux’s, it appears that out of 814 persons of 20-- - - 734 will have lived to 30 years - 657 ” ” 40 ” - 581 ” ” 50 ” - 463 ” ” 60 ” - 310 ” ” 70 ” - 118 ” ” 80 ” - 11 ” ” 90 ” - 1 ” ” 94 ” - - - - -CHAP. VII. - - RISE AND PROGRESS OF THE EQUITABLE--ITS DANGERS AND ITS - DIFFICULTIES--COMPARATIVE PREMIUMS.--SKETCH OF MR. MORGAN--HIS - OPINIONS.--SINGULAR ATTEMPT TO DEFRAUD THE EQUITABLE--DEATH OF THE - OFFENDER.--ATTEMPT OF GOVERNMENT TO ROB THE OFFICES. - - -The first meeting of the Equitable Society for the assurance of life -and survivorship “was holden at the White Lion in Cornhill” in 1762, -when only four assurances were effected. In the next four months -their number did not exceed thirty; and so lightly were the prospects -of the institution held by those having authority, that when the -Attorney-General was applied to for an act of incorporation,--“I do not -think the terms are sufficiently high,” was his intelligent opinion, -“to justify me in advising the Crown to grant a charter.” - -Such was the commencement of this institution. For many years prior, -the Equitable had been struggling into being, aided by the lectures -of “the justly celebrated Mr. Thomas Simpson,” but yet more by the -strenuous exertion of Edward Rowe Mores, an accomplished antiquarian -and an enlightened gentleman. To his “great pain and travel,” says the -deed of settlement, “the society was indebted for its establishment,” -and in return its promoter was made a director for life with an -annuity of 100_l._[11] Though its board of management included some -of the first bankers and merchants of the day, yet then, as now, -it seemed necessary to catch a peer of the realm to act as decoy, -so Lord Willoughby de Parham, with no interest in its movements or -concern in its affairs, was paraded before the public as patron and -director, and at the end of two years was gravely thanked for the -use of his name in maintaining the reputation of the novel society. -It was probably, however, the working spirits, such as Sir Richard -Glyn[12] and Sir Robert Ladbroke who took charge of its movements, and -who were guilty of, or at any rate were responsible for, the double -dealing which followed; for it is quite in keeping with the commercial -integrity of the eighteenth century, that the directors, fearing its -slow growth would injure its character, gave it the appearance of a -more rapid advance, by adopting the unworthy expedient of calling the -25th policy the 275th, thus inducing the world to understand that the -society consisted of 250 more members than its actual number. Thus the -success of the Equitable institution may be dated from the mendacious -employment of names, and from an absolute deception in the number of -the policies. For many years, an utter indifference was exhibited by -the policy holders about the concerns of the society. It was useless to -advertise a general court, as a sufficient number to form a meeting did -not answer to the call. Nor could a full court be procured until the -cupidity of the members was appealed to, and five guineas were promised -to the first twenty-one who should arrive before twelve o’clock. Then, -and not till then, were the meetings properly attended; a fact which -speaks loudly for the shrewdness of those who devised the scheme, and -the avarice of those who formed the association. - -The usual quarrels which depress young institutions, pursued the -Equitable; and twenty-one persons who had contributed to pay the -original expenses made a sudden claim of 15_s._ for every 100_l._ -assured. This was resisted by the new members, and “kindled into a -flame that might have destroyed the society, had not the moderation and -good sense of Sir Charles Morgan and a few other sober-minded gentlemen -allayed the fervour of the contending parties, and prevailed on them -to enter into a compromise.” The natural result of this “flame” was to -decrease the number of policies from 564 in 1768, to 490 in 1770, and -it was some time before the assurances were again increased. - -There were many reasons for its comparative want of success. There was -an air of mystery about the Equitable which did not become a commercial -institution, and which is now difficult to understand. In December, -1762, a solemn oath was taken by directors and actuary, “never to -discover the names of persons making or applying for assurances,” as if -some unimaginable disgrace attached to it. The terms, notwithstanding -the learned opinion of Mr. Attorney-General, were enormous; for Mr. -Dodson, taking the London Bills of Mortality from 1728 to 1750 as his -foundations, produced premiums so high as to be almost prohibitive. -He had, “for greater security, assumed the probabilities of life in -London during a period of 20 years, which, including the year 1740, -when the mortality was almost equal to that of a plague, rendered such -premiums much higher than they ought to have been, even according to -the ordinary probabilities of life in London itself.” - -In addition, there were certain fantastic extreme premiums for fancied -risks: there was “youth hazard,” “female hazard,” and “occupation -hazard”! There was 11 per cent. placed on the premiums of “officers -on half-pay,” and on persons “licensed to retail beer.” There was no -capital on which to fall back, as with the Royal Exchange and London -Assurance; and in addition, the original subscribers claimed all the -entrance money for themselves, so that, altogether, it is no great -wonder there was a lassitude and lack of vigour in the first few years -of the institution. There was also probably more impediment in insuring -with a company than with a jobber, as the underwriters would not be -hedged with the forms and ceremonies which always surround a board of -directors. - -The following is a comparative statement of the premiums in 1771, with -those now charged; and though the former may excite a smile, we must -remember that up to this period there had been no attempt whatever to -vary the payments in proportion to age, but that 5 per cent. was still -the accustomed demand for youth and eld:-- - - Premiums in 1771. Present Premiums. - Age. Male. Female. - _£_ _s._ _d._ _£_ _s._ _d._ _£_ _s._ _d._ - 14 2 17 0 3 3 11 1 17 7 - 20 3 9 4 3 14 3 2 3 7 - 25 3 14 0 4 1 5 2 8 1 - 30 3 18 7 4 4 4 2 13 4 - 40 4 17 9 5 4 8 3 8 0 - 49 6 2 5 6 11 0 4 17 10 - -In 1769, the continuance of the Equitable must have been very doubtful; -and had it not been for Dr. Price’s treatise, which recommended it to -public notice, it is possible that this beneficial institution would -have been closed. Hitherto its actuaries had been men who knew nothing -about their business. The first, Mr. Mosdell, was a simple accountant; -its second, Mr. Dodson, son of the mathematician, possessed the name, -without the acquirements, of his father; the third, Mr. Edwards, was -sufficiently aware of his own incapacity never to trust to himself; the -fourth was a vice-president, who knew about as much of the art as his -predecessor; nor was it until 1775, when Mr. Morgan was appointed, -through the interest of his uncle, Dr. Price, that any real progress -was made. From this period a new era may be dated; and “the society, no -longer going on from year to year in ignorance and terror, incapable -of deducing any just conclusion as to its real state, became now, by -its more intimate connection with Dr. Price, possessed of ample means -for ascertaining that fact and forming its future measures on the solid -principles of mathematical science.” - -In 1776, as Dr. Price urged on the directors the necessity of -decreasing the tables of premiums, declaring them to be exorbitant -and absurd, the female and youth hazard were at once abolished; and -in consequence of an examination of the accounts, all the payments -were reduced one-tenth. In 1780, on the recommendation of the same -gentleman, the Chester and Northampton observations of mortality were -adopted as the basis of the premiums, with an addition of 15 per -cent., because certain directors thought the doctor was lowering the -character of the institution by lowering the charges. In 1786, however, -this 15 per cent. was discontinued, and various additions were made -to the policies, which, like the taste of human flesh to the tiger, -stimulated the proprietors to ask for more.[13] At the next meeting, -ignorance and avarice united to demand a repetition of the bonus; but -the majority decided on investigating the affairs of the society, and -so satisfactory was the result, that a further 2 per cent. was added. -In another two years an addition of 1 per cent. of all insurances of an -earlier date than 1795 was voted; but still the cry was “Give! give!!” -from a few absurd and insatiable proprietors. Success continued to mark -the progress of the society; and by 1815, alarm being manifested lest -it should become unmanageable from its magnitude, a resolution was -passed limiting the participators in the surplus to 5000. Decennial -investigations were agreed to, and the Equitable maintained its -brilliant career. Below is a tabular statement of its progress; but it -would be unjust to close this sketch without a more special allusion -to one whose name was connected with it for upwards of half a century. -Mr. Morgan, nephew to Dr. Price, was, as his name would imply, a native -of the principality. Although originally educated for the medical -profession, he showed so great a tabular aptitude, and evinced so much -facility in the acquirement of mathematical knowledge, that Dr. Price -induced him to relinquish the profession of surgeon for the situation -of actuary to the Equitable; his management of which, seeing it rise -from a capital of a few thousands to many millions, was sound and -judicious; and although the institution contained in itself the germ -of its success, yet Mr. Morgan’s arrangements tended to raise it to a -position of almost national importance. His mathematical attainments -were of the highest order; he contributed important papers to our -scientific publications; he wrote various valuable works on annuities; -and many a reader will call to mind his last few appearances at the -meetings of the Equitable, when, drawn from his retirement, he stood -bravely up to oppose, with the experience of a long life, the rash -innovations of greedy proprietors; when he alluded so modestly to his -past services, and touched so feelingly on that great misfortune, the -death of his “friend, associate, and son,” which had compelled him -to leave his retirement and to appear in defence of those rules and -regulations by which he had conducted the Equitable to a distinguished -success. - -At the present time the following warning of this “old man eloquent,” -uttered at one of these meetings, may have an effect in staying the -demand for decreased premiums, annual divisions, and half-yearly -bonuses:--“Can anything be more absurd, or betray greater ignorance, -than to propose an annual profit and loss account in a concern of -this kind, or to regulate the dividend or the call by the success -or failure of each year?... Exclusive of the immense labour of such -an investigation, the events of one year vary so much from those of -another that no general conclusion can be safely deduced from the -experience of so short a term.” - -A tradition is current that, very shortly after the establishment of -the office, a fraud was discovered in time to save the society from -loss and to hang the criminal for the attempt. A man named Innes -induced his step-daughter to insure her life with the Equitable for -1000_l._ Soon after this she died, and in proper time Innes produced -a will, duly signed and attested by her, making him executor and -legatee. There were facts connected with her death which seemed morally -to implicate him in a terrible tragedy, but there was nothing which -could be brought home as legal proof. The character of the man, his -eagerness to procure the money, the doubtful circumstances of the case -altogether, made the assurers hesitate, and they took the bold course -of refusing to pay, upon the ground that the will was not a genuine -document. But the man whose character was bad enough to justify such -suspicions, was not likely to lose his money for want of a few false -oaths, so he produced upon the trial one of the attesting witnesses, -who swore that the will was executed in Glasgow, and that he personally -knew the other witness. As Innes, however, undertook to procure further -evidence in his favour, the trial was postponed, and when it came on -a second time every thing went swimmingly on in his favour. His two -confederates, one of them was named Borthwick, were ready to swear -anything and everything. The time, the place, the room, were minutely -described; the scene was graphically painted; and they sat down -satisfied that they had played their parts to perfection. But Innes was -not contented: he wanted the thousand pounds; and resolved to “make -assurance doubly sure,” another person was called, who was to clench -the argument by proving that he saw the deceased person sign the will -in the presence of the two men who had attested the signature. This -witness appeared with fatal effect. Wan and ghastly he is said to have -arisen in the witness-box, and well might he be ghastly who was about -to peril a brother’s life! “My Lord,” he said, “my name is Borthwick. -I am brother to the witness of the same name who has been examined. -_The will was not made on the Bridge-gate at Glasgow, it was forged by -a schoolmaster in the Maze, in the Borough!_” The trial immediately -ceased: “a screw is loose,” said Innes, as in vain he endeavoured to -glide out of court. Of the confederates in this base deed one graced -the pillory, another was imprisoned, Innes himself paid the extreme -penalty of life, the office escaping the meditated fraud. - -It is said to be the boast of the Equitable that this was the only case -in which they found it necessary to appeal to law. - -Whatever defects may have characterised the constitution of this -Society, it was a great improvement on the arrangements of the Amicable -and the two proprietary companies. It did all that a legitimate life -office could be supposed to do. It assured lives for any number of -years, or for the whole continuance of life. It took the price of the -assurance in one present payment, or it accepted annual premiums. It -allowed annuities to the survivors if they preferred it; and though -the scale might be too high for what we now know, it at least was more -business-like than its contemporaries; for so slow were the latter to -profit by experience, that it was not until the commencement of the -nineteenth century that the Royal Exchange Corporation availed itself -of the Northampton Tables to compute its premiums. - -In 1779, Mr. Morgan produced his “Doctrine of Annuities and -Assurances.” This gentleman was the first to detect the inaccuracy -of the rules which Mr. Simpson with others had given to discover the -value of contingent annuities, and which he himself had adopted in the -above work. Notwithstanding the castigation he received from Mr. Baily, -for his “loose and obscure manner,”--for the “grossest errors,”--for -“distorting,”--for “enveloping in mystery,”--for “introducing a -depraved taste in mathematical reasoning,” there is no doubt that his -was the earliest attempt to give correct solutions on the various cases -of deferred annuities which had arisen out of his experience in the -Equitable. - -The following additions were made to the policies of the Equitable by -1800:-- - - _£_ _s._ _d._ - For every 100_l._ assured in 1762 258 0 0 - ” ” 1763 249 10 0 - ” ” 1764 241 0 0 - ” ” 1765 232 10 0 - ” ” 1766 224 0 0 - ” ” 1767 215 10 0 - ” ” 1768 207 0 0 - ” ” 1769 198 10 0 - ” ” 1770 190 0 0 - ” ” 1771 181 10 0 - ” ” 1772 173 0 0 - ” ” 1773 164 10 0 - ” ” 1774 156 0 0 - ” ” 1775 147 10 0 - ” ” 1776 139 0 0 - ” ” 1777 130 10 0 - ” ” 1778 122 0 0 - ” ” 1779 113 10 0 - ” ” 1780 105 0 0 - ” ” 1781 96 10 0 - ” ” 1782 88 0 0 - ” ” 1783 81 0 0 - ” ” 1784 74 0 0 - ” ” 1785 67 0 0 - ” ” 1786 60 0 0 - ” ” 1787 54 0 0 - ” ” 1788 48 0 0 - ” ” 1789 42 0 0 - ” ” 1790 36 0 0 - ” ” 1791 30 0 0 - ” ” 1792 24 0 0 - ” ” 1793 19 0 0 - ” ” 1794 16 0 0 - ” ” 1795 13 0 0 - ” ” 1796 10 0 0 - ” ” 1797 8 0 0 - ” ” 1798 6 0 0 - ” ” 1799 4 0 0 - ” ” 1800 2 0 0 - -That a desire for the benefit of insuring was spreading, and that the -commercial relations of the Continent were increasing, may be traced -in the fact that in 1765 his Prussian Majesty granted letters patent -for establishing a chamber of assurance in Berlin for thirty years, -during which period no other assurance office was to be allowed in any -part of Prussia; and during the same year, the free city of Hamburg -established a company for the sale, not only of immediate, but of -deferred annuities. - -In 1765, one of those insolent attempts occurred on the part of the -state, which reminds the reader of an absolute, rather than of a -representative, government. The peace concluded in 1763, followed a war -which cost upwards of a hundred millions, and the bribery which was -necessary to carry the treaty through the House, had contributed to -exhaust the treasury. Money was to be acquired, and the people grumbled -at the taxation necessary to raise it. In this dilemma it suddenly -occurred to the ministers that there might be unclaimed property in -the assurance offices, and by some confusion of right and wrong it -was thought just to claim this private property for the public good. -Nothing could more decidedly approach confiscation. But in dealing with -these offices the government was dealing with a large and influential -body of proprietors whose gains were aided by this “dead cash,” and -who were not men to see their purses invaded with impunity. The -Amicable, the Royal Exchange, the London and the Equitable Assurance -Companies numbered among their shareholders the greatest mercantile -names of the day; they were the same men, or of the same generation, -who as directors or as proprietors of the Bank of England resisted, -a few years later, the just demand of William Pitt for the unclaimed -dividends on the national debt; a demand so obviously sound that its -opponents had not an argument to support their refusal. If, then, -they were so vigorous when wrong, it may be imagined that they stood -boldly forward when they were right. Their courage was undaunted, -and they positively defied the claim. The Whigs declared that it was -as barefaced as shutting the Exchequer by the Second Charles; the -Jacobites said they might as well have a Stuart as a Guelph, that -the minister had mistaken his men, and that under no circumstances -would they voluntarily yield. Pamphlets were issued, which distinctly -asserted that no one would trust a government acting so infamously; -that confiscation of private property to pay a nation’s debts was only -one remove from bankruptcy; and that no citizen would lend money to a -government so unprincipled. The propriety and proper feeling of the -people aided the resistance of the offices, and the attempt was only -successful in proving to the state, that all arbitrary power had past -away, and that for the future an honest course would be their best -policy. - -FOOTNOTES: - -[11] In 1768, Mr. Mores quarrelled with and separated from the society. - -[12] Sir Richard was a notability of those days, and divided civic -popularity with Beckford, whose colleague he was in the representation -of London in 1761. He was made Doctor of Civil Laws by Oxford -University, a custom which would have been perhaps more honoured in the -breach than the observance; and we owe Blackfriars’ Bridge greatly to -the energy and exertions of Sir Richard Glyn, Knight, Baronet, and Lord -Mayor, and--more honourable title still,--director of our first purely -mutual life assurance office. We look in vain for such names as Glyn, -Gosling, Ladbroke, or Beckford, among the sheriffs and aldermen of the -present day. - -[13] That the safety of this Society was doubtful may be partly -judged from the fact, that half the policies issued within the first -twenty-five years had been abandoned, probably from doubt of their -ultimate payment. - - - - -CHAP. VIII. - - BUBBLE ANNUITY COMPANIES--THEIR PROMISES--EFFECT ON THE - PEOPLE.--DR. PRICE--HIS LIFE.--SIR JOHN ST. AUBYN.--THE YORKSHIRE - SQUIRE--ASSURANCES ON HIS LIFE--HIS SUICIDE. - - -The bubbles which sprang up in the shape of annuity institutions were -numerous. They were becoming objects of serious concern. They attracted -the class which understood the least. They appealed to the finest -sympathies of nature, and traded in the feelings they sought to excite. -Projectors and promoters arose, and with them came societies which -could do nothing but empty the pocket of the subscriber to fill that -of the manager. There were annuity clubs for naval and for military -men, for clergymen and clerks, for schoolmasters and for tradesmen; -but as there was no special information by which to govern the rates, -or as those rates were more tempting than trustworthy, the subscribers -were fleeced, partly in proportion to their own ignorance, and partly -in proportion to the consciences of the directors. This was the era -of annuity societies, as the present is the era of life assurance. A -prodigious traffic was carried on in such schemes, and a perfect rage -for forming them spread through the kingdom. - -The most tempting names which could be chosen allured the world. -Prospectuses of a vaunting character were passed from hand to hand. The -promises of Mr. Montague Tidd, of the Anglo-Bengalee, were nothing to -these. Widows were to be provided with all they required, for a nominal -amount. Children were to be endowed with fortunes, for comparatively -nothing. The London Annuity and Laudable Society out-heroded Herod. -The coffee-houses were haunted by agents to spread the praises of a -royal Lancaster. Touters--this modern title is expressive--who brought -a certain number of subscribers, were allowed the privileges of most -of the societies for nothing. A commission of the first year’s premium -was no uncommon reward to those who attracted a new victim, and very -heartless and infamous was the result. In one case a son brought the -savings of a parent to a company which was sure to break. Friends -insidiously recommended societies, under the guise of kindness, to -their intimate acquaintance, and so long as they pocketed the heavy -reward, were regardless of consequences. These associations spread -from London to the Continent. Amsterdam, Bremen, Denmark, and Hanover -were filled with wretched bubbles of this character, which carried -misery to hundreds of homes. - -The people were utterly guiltless of all knowledge on the subject. -The information which had been brought forward from time to time, had -produced its effect on the scientific portion of the world, but those -who were practically interested, knew nothing. The young and unthinking -were so ignorant or so indifferent to results, that they were content -to pay only a fourth or fifth of the fair amount of premiums for their -deferred annuities. The elder and more cunning--and by these the -societies were principally supported--thought that the bubbles would -last their time, and with the selfishness of age, were content. But in -the midst of their contentment a shell exploded in their citadel. Dr. -Price, an unsuccessful Unitarian preacher, and the contributor of many -rare papers to the “Philosophical Transactions,” published the work -which has brought his name down to the nineteenth century as a deep -thinker. There had been hitherto little or no advance in the science -which regulated assurance or annuities on lives. The reputation of -the doctor drew attention to his work. It was there found that, not -content with the tables of mortality from Breslau, he had obtained -correct tables from Northampton, Norwich, Chester, and other places. -He entered minutely and by name into the prospects of the various -societies, he proved it to be utterly impossible for them to perform -their contracts, and averred that, if some fresh arrangements were -not entered into, to strengthen the existing companies, they must -inevitably fail, for they were founded on principles which could not -last; which must deceive the public; and which could only pay the -contrivers. - -It was seen that no ordinary care and research had been bestowed on -his calculations. Chester, Warrington, and Shrewsbury had contributed -the English portion of the statistics. From abroad, Sweden and Finland -had sent the mean numbers of the living with the annual deaths for -twenty-one successive years, together with a complete set of tables -of the values of the annuities on single lives, both with and without -the distinction of sexes, which completed the interest of a book that -is yet quoted with respect. If the book itself were thus important, -the character of the writer was sufficiently established to secure a -favourable reception to his doctrines. He had already written on the -subject, and nothing more completely evinces the general ignorance -than that his two previous papers should have been devoted to topics -which are now self-evident; one of them being to demonstrate that -marshy ground was insalubrious; and another, to prove that the value -of life in large close towns, was less than in the wide, invigorating -country. - -From Dr. Price the world first heard that half of the children who -were born in London, died under three years of age; that in Vienna -and Stockholm, half died under two; in Manchester, under five; and in -Northampton, under ten. “London,” said the worthy Unitarian, “is a -gulf which swallows up an increase equal to near three-fourths of that -of Sweden.” The results of the work were as good as the work itself. -The papers of the day quoted its opinions; the subscribers to the -annuity societies took the alarm, discontinued their subscriptions, or -demanded an inquiry. The rage for establishing new annuity companies -was as suddenly stopped by Dr. Price, as in 1720 the old companies were -stopped by the arm of the law. A partial reformation was attempted -in some, the managers of others suddenly disappeared, while a still -greater number finding it impossible to continue, dissolved their -society and left the unhappy annuitants to regret their carelessness -and digest their loss. Of course, the author did not escape abuse, and -many an anathema was launched at the head of the doctor, and many an -epigram pointed at him by those “who live by others’ losses.” - -In 1779, he made a further attempt to contribute to the information -of the public in an “Essay on the Population of England;” but the -data on which he founded his opinion, was scarcely certain enough -to render his conclusions of much value to the statistician. In the -fourth edition of his work on annuities, he gave several valuable -tables on single and joint lives, at various rates of interest, not -only from the probabilities of life at Northampton, but also from the -same probabilities at Sweden. His after career is well known. He was -employed to form a plan by which the poor might support themselves in -sickness and in old age; but which, when introduced to the senate, -was rejected. He lived to see the French Revolution, and to be a -prophet of good concerning it. Horace Walpole writes in 1790:--“Mr. -Burke’s pamphlet has quite turned Dr. Price’s head. He got on a table -at their club, and toasted to our parliament being made a national -convention.... Two more members got on the table--their pulpit,--and -it broke down with them.” In another letter he says:--“Dr. Price, who -had whetted his ancient talons last year to no purpose, has had them -all drawn by Burke; and the revolutionary club is as much exploded -as the Cock Lane Ghost.” In 1791, he died, and his name has survived -Horace Walpole’s sarcasms with his own revolutionary principles. The -information which he presented, was various and important. Gossip it -would be called by some; but it was that gossip to which the historian -appeals as a confirmation of his views. The poor’s rates were estimated -by him at 1,556,804_l._ in 1777. He calculated that 651,580 was rather -over than under the population of London in 1769. He explained that -the most obvious sense of the expectation of life, was that particular -number of years which a life of a given age had an equal chance -of enjoying; and he gave it as his opinion, founded on extensive -information, “that the custom of committing infants as soon as born to -the care of foster-mothers, destroys more lives than sword, famine, and -pestilence united.” - -By his calculations he showed, that-- - - In Stockholm on an average of 6 years 1 in 19 died. - London ” ” 1 in 20-3/4 ” - Rome ” ” 1 in 21-1/2 ” - Northampton ” ” 1 in 26-1/2 ” - Madeira ” ” 1 in 50 ” - Liverpool ” ” 1 in 27 ” - Berlin ” ” 1 in 26-1/2 ” - Sweden (Stockholm excepted) ” 1 in 35 ” - Vaud, Switzerland ” ” 1 in 45 ” - Ackworth, Yorkshire ” 1 in 47 ” - -The varied and valuable information of Dr. Price was of great use in -stimulating the minds of those having authority, an improved register -of mortality being established at Chester in 1772, and at Warrington in -1773. - -The earliest endeavour to encourage a spirit of saving among the poor -was made in 1773, a bill being introduced into the House of Commons, -the leading provision of which was that every parish where there were -four or more officers might grant life annuities, payable quarterly, to -those who were willing to purchase them, according to a table annexed. - -The bill was supported both by the social and political economists of -the House, who had met at Sir George Savile’s, in Leicester Square, for -this purpose. It had been contrived with much kindness, and framed with -considerable ingenuity. It passed the Lower House by a majority of two -to one; but in the Upper House was lost. The importance of measures of -this character cannot now be doubted. All that tends to produce habits -of thrift among our poor is exceedingly desirable. It is from them we -must always hope for a large portion of our taxes, and to give them an -interest in order, to place them in a fair social position, to engender -habits of self-respect and independence, are considerations of vital -importance; and it is, therefore, to be regretted that, at this early -period of our manufacturing career, some such impulse was not given to -the industrious working-man. - -In 1777, several of the brokers and underwriters of the City were -mulcted of their iniquitous profits. During the minority of Sir -John St. Aubyn, and at the early age of seventeen, this gentleman -found himself, like many more, in want of money. The scriveners of -the City were ready, the extravagances of the youth supplied, an -unlimited amount of cash was placed in his possession, and in return -he granted to the underwriters annuities guaranteed on the estates -to which he would succeed at twenty-one, assuring his life with them -in the mean time to guard against contingencies. Not content with -this, the underwriters made him procure the additional guarantee of -a schoolfellow, for which the young scapegrace pledged his honour to -his friend. When he came of age, he fortunately arrived also at years -of discretion, and instituted a suit in Chancery for the destruction -of the bonds which he had granted. Great was the wrath of the -money-changers; but their anger was vain, and they were obliged to -content themselves with the righteous decision, that on repayment of -the principal, with 4 per cent. interest, the annuity bonds should be -given up. - -Nor was this a solitary instance in which the assurance- and -annuity-mongers were overreached. The following will be found both -painful and impressive as a warning.-- - -Residing in one of the wildest districts of Yorkshire, was one of those -country squires of whom we read in the pages of our elder novelists. -He could write sufficiently to sign his name; he could ride so as -always to be in at the death; he could eat, when his day’s amusement -was over, sufficient to startle a modern epicure; and drink enough -to send himself to bed tipsy as regularly as the night came. He was -young, having come to his estate early, through the death of a father -who had broken his neck when his morning draught had been too much -for his seat, and he seemed at first exceedingly likely to follow his -father’s footsteps. In due time, however, being compelled to visit -London on some business, he found that there were other pleasures than -those of hunting foxes, drinking claret, following the hounds, and -swearing at the grooms; and that although on his own estate, and in -the neighbourhood of his own hall, he might be a great person, all -his greatness vanished in the metropolis. With the avidity of a young -man entirely uncurbed, enjoying also huge animal powers, he rushed -into the dissipation of London, where, as he possessed a considerable -portion of mental capacity, he contrived to polish his behaviour and to -appear in the character of a buck about town, with some success. His -estate and means soon became familiar to those who had none of their -own; and as he was free enough in spending his money, and was not very -particular in his company, he was quickly surrounded by all the younger -sons, roysterers, and men who lived by their wits, of the circle in -which he visited. With such as these his career was rapidly determined. -The gaming of the period was carried to such an extent that it might -truly be termed a national sin, and into this terrible vice he threw -himself with a recklessness which almost savoured of insanity. Mortgage -after mortgage was given on his estate; but as this was entailed, it -was necessary that he should also assure his life, which was done at -Lloyd’s, on the Royal Exchange, and with those usurers who added it to -their other branches of business. - -In the midst of his career there seemed a chance for his escape. It -may be supposed that many intriguing women fixed their eyes on so -desirable a match, and that many young ladies were willing to share the -fortunes, for better or for worse, of the possessor of a fine estate. -At last the hour and the woman came, and the Yorkshire squire fell -in love with a young lady of singular beauty, half friend and half -companion to a faded demirep of fashion, who, aiming at the gentleman -herself, had committed the incredible folly of placing her friend’s -charms in comparison with her own. To fall in love was to propose, to -propose was in this case to be accepted, and the marriage took place. -Immediately afterwards they left the metropolis--the squire’s income -being much reduced by his liabilities--for his Yorkshire home, dreaming -probably sweet dreams of the future, and building castles in the air, -of which moderation and amendment were the foundation. For a period he -kept them. A son, heir to the entail, was born to him, and soon after -this he again made his way to London, for some reason which does not -appear. Once more within this vortex of pleasure, his good resolutions -failed him, and he was led to the same pursuits, the same pleasures, -and the same vices. He forgot his wife in the charms of new beauties, -he forgot his child, he forgot his home. He gambled, he betted, he -hazarded his all, until one fine morning, after a deep debauch with -some of his companions, where dice and cards with closed doors marked -its character, he arose a ruined man. He had lost more than his whole -life would redeem, the only security of the winners being his annuity -bonds on the estate, and his various life assurances should he die. At -the same time, he was aroused to a sense of the wrongs he had suffered; -he saw that he had been the dupe of gentlemen sufficiently practised in -the art of play to be called sharpers, and saw also, what was doubtless -the fact, that he had been cheated to their hearts’ content. Almost -mad, burning with consuming fire, he determined to be revenged. Another -night he was resolved to try his luck, and by playing more desperately -than ever, win back, if possible, the money he had lost, and then -forswear the dangerous vice. With a desperate resolve to outwit them, -in life or in death, he met the gamesters. He had hitherto arranged -all the losses he had sustained, and his opponents were prepared to -humour him. The doors were once more closed, the shutters were down to -exclude light, refreshments were placed in an ante-chamber, and for -thirty-six hours the last game was played. The result may be guessed. -The squire had no chance with the men banded against him, and high as -his stakes were, and wildly as he played, they fooled him to the top of -his bent. Exhausted nature completed the scene, and the loser retired -to his hotel. He was ruined, wretched, and reckless. He knew that if -he lived it would be a miserable existence for himself and his wife, -and he knew also that if he died by his own hand, not only would his -family be placed in a better position than if he lived, but that the -men who had wronged him would be outwitted, as the policies on his life -would be forfeited, and his bonds become waste paper. His mind soon -became resolved. He evinced to the people of the hotel no symptoms of -derangement; but saying he should visit the theatre that night, and go -to bed early, as he had been rather dissipated lately, he paid the bill -he had incurred, giving at the same time gratuities to the waiters. He -then wrote a letter to one of the persons with whom his life had been -assured, stating, that as existence was now of no value to him, he -meant to destroy himself; that he was perfectly calm and sane; that he -did it for the express purpose of punishing the men who had contrived -to ruin him; and, as the policy would be void by this act, he charged -him to let his suicide be known to all with whom his life had been -assured. In the evening he walked to the Thames, where he took a wherry -with a waterman to row him, and when they were in the middle of the -current, plunged suddenly into the stream, to rise no more. - -The underwriter who had received the letter, communicated it to the -other insurers; and when a claim was made by the gamblers, they saw -that they had been duped by the Yorkshire squire, although at the -fearful price of self-murder. - - - - -CHAP. IX. - - GAMBLING IN ASSURANCES ON WALPOLE--GEORGE II.--THE JACOBITE - PRISONERS--THE GERMAN EMIGRANTS--ADMIRAL BYNG--JOHN WILKES--YOUNG - MR. PIGOT AND OLD MR. PIGOT--LAPLAND LADIES AND LAPLAND - REIN-DEER.--INSURANCE ON CITIES.--GAMBLING ON THE SEX OF - D’EON--PUBLIC MEETING--DISAPPOINTMENT OF THE CITIZENS.--TRIAL - CONCERNING D’EON--LORD MANSFIELD’S DECISION. - - -For many years prior to 1774, a spirit of gambling which took the -form of assurance was prevalent in the City, and so serious did it -become that the legislature were compelled to notice it. This mode of -speculation is one of the strangest by-ways in the annals of insurance. -From 1720 much of the legitimate business had been usurped by it, -policies being opened on the lives of public men, with a recklessness -at once disgraceful and injurious to the morals of the country. That of -Sir Robert Walpole was assured for many thousands; and at particular -portions of his career, when his person seemed endangered by popular -tumults, as at the Excise Bill; or by party hate, as at the time of -his threatened impeachment; the premium was proportionately enlarged. -When George II. fought at Dettingen, 25 per cent. was paid against -his return. The rebellion of 1745, as soon as the terror which it -excited had passed away, was productive of an infamous amount of -business. The members of Garraway’s, the assurers at Lloyd’s, and the -merchants of the Royal Exchange, being unable to raise or lower the -price of stocks any more by reports of the Pretender’s movements, made -sporting assurances on his adventures, and opened policies on his -life. Sometimes the news arrived that he was taken prisoner, and the -underwriters waxed grave. Sometimes it was rumoured he had escaped, and -they grew gay again. Thousands were ventured on his whereabouts, and -tens of thousands on his head. - -The rebel lords who were captured in that disastrous expedition, were -another source of profit to the speculators. The gray hairs of old Lord -Lovat did not prevent them from gambling on his life. The gallantry of -Balmerino and the devotion of Lady Nithsdale, raised no soft scruples -in the minds of the brokers; and when the husband of the latter escaped -from the Tower, the agitation of those who had perilled their money -on his life, and to whom his violent death would have been a profit, -is described as noisy and excessive. But no sooner was it known that -he had escaped, than fresh policies were opened on his recapture, and -great must have been the indignation of his high-minded wife when she -afterwards heard this trait of City character. Devotional as is the -mind of the great metropolis in the presence of mammon, there were -perhaps no blacker instances of that foul spirit which sought to make -money from the sufferings of gallant though mistaken gentlemen. - -The advent of the German emigrants was another opportunity. In 1765, -upwards of 800 men, women, and children, lay in Goodman’s Fields in -the open air, without food. They had been brought by a speculator from -the Palatinate, Franconia, and Suabia, and then deserted by him. In -a strange land, without friends, exposed by night and by day to the -influences of the atmosphere, death was the necessary result. On the -third day, when several expired from hunger or exposure, the assurance -speculators were ready, and wagers were made as to the number who would -die in the week. In the western part of the metropolis considerable -feeling was exhibited for these unhappy creatures; in the country -a charitable fervour was excited in their behalf; but indubitably -the greatest interest was felt by those operators in the Alley and -underwriters of Lloyd’s Coffee-house, who had made contracts on their -distresses, and speculated on their deaths. The benevolent spirit of -England, however, soon put this speculation to an end, by providing the -unfortunate Germans with food, shelter, and the means of emigration. - -The trial and execution of Byng were productive of a similar mania. -At each change in his prospects, slight as his chances ever were, -the underwriters raised or lowered their premiums, the assurers were -elevated or depressed. This victim of the most dastardly ministry -that ever misgoverned England, had but little sympathy from the -speculators on his life; and it is difficult to say whether their -power, importance, and position,--for jobbers and underwriters then -were merchants and men of family,--did not in some degree inflame the -feeling for blood which had seized the people. It is certain it did -not mitigate it. When Wilkes was committed to the Tower, policies were -granted at 10 per cent. if he remained there a specified time. King -George, when he was ill, and Lord North, when he was unpopular, were -both scheduled in the brokers’ books as good subjects. When Minorca -was lost, and the premier Duke of Newcastle “began to tremble for -his place, and for the only thing which was dearer to him than his -place, his neck,” there were plenty to open policies on his life, and -plenty to avail themselves of the chances which threatened him. As -soon as he resigned his premiership, assurances were entered into on -the continuance of the new Pitt ministry in power; and when the duke -reassumed office, fresh engagements were opened on the chance of his -remaining in place. Successes or disasters were all the same to the -assurers; the seals of a prime minister, or the life of a highwayman, -answered equally the purpose of the policy mongers; and India or -Minorca, Warren Hastings or Admiral Byng, were alike to them if they -could put money into their purses. They made wager policies on the -lives of the high-minded Jacobite, and they did the same on every -batch of felons left for execution. Assurances were entered into on -the life of the Regent Orleans of France; and when he was succeeded by -Louis Quinze, they insured, not the lives indeed, but the continuance -of his mistresses in the favour of the monarch. Day by day during -the trial of the Duchess of Kingston for bigamy, there were frequent -expresses from West to East with information of the proceedings, which, -according to its chances, varied the premiums and excited the cupidity -of the assurers. There was absolutely nothing on which a policy could -be opened, but what was employed as a mode of gambling. Scarcely a -nobleman of note went to his long account, without an assurance being -opened during his illness, by those who had no interest in his life. -These policies, especially those on political offenders whose existence -trembled in the balance, were most mischievous. A pecuniary interest -in the death of any one is fearful odds against benevolent feeling; -and it was hardly to be expected that men should throw what influence -they possessed into the scale of mercy. The power of opening merely -speculative policies on private persons was also demoralising, and -perhaps dangerous to life itself. It was not possible--it was not in -human nature--to have money depending on the existence of the inmate of -your home without watching him with feelings which the good man would -tremble to analyse, and even the bad man would fear to avow. People -then opened policies on the lives of all in whom they were socially -interested; and under the plea of provision, acquired an interest in -their relatives which was almost fearful and sometimes fatal, from its -intensity. There is no doubt that the system was false and hollow. The -son then insured the life of his father; the father opened policies on -the life of his son: and when thousands or perhaps tens of thousands of -pounds were dependent on it, who shall tell the feelings of the son, -or dare to judge the sensations of the father, if sickness or disease -opened a golden prospect? The mind shrinks from the horror of the idea, -and recoils indignantly at the thought that such sacred relations -of life should be thus sordidly regarded. But the argument might be -carried further; for to many a dark mystery might a clue be given, in -the remembrance that a pecuniary interest might have existed between -the murdered and the murderer! - -Nor was this all. One life was commonly pitted against another. Thus, -Lord March, afterwards notorious as the Duke of Queensberry, laid a -wager with “young Mr. Pigot,” that Sir William Codrington would die -before old Mr. Pigot. As the latter, however, happened to be dead when -the wager was laid, young Mr. Pigot refused to pay; so Lord March went -to law, and compelled him to do so. Another adventure excited still -more the cupidity of underwriters and assurers, and produced larger and -more varied policies than any, except on the sex of D’Eon, whose career -is sketched at the end of this chapter. It was spread in the papers -that a country baronet had laid a heavy wager that he would go to -Lapland, and in a given time, bring home two females of the country and -two rein-deer. This, which was originally only a bet between a couple -of foolish young men, created a mania at Lloyd’s: policies were first -opened that the baronet would not return within the time; then, that -he would not return at all; then, that he would die before he reached -Lapland. The next movement was to speculate on his returning with the -women; and this increased the premiums enormously, immense sums being -risked on the childish enterprise. Merchants and men of rank joined in -the assurances; and when the adventurer came back with his Lapland deer -and Lapland ladies, large sums were paid by those underwriters who had -speculated on his failure. - -The “London Chronicle” remarks, in 1768, “The introduction and amazing -progress of illicit gaming at Lloyd’s Coffee-house is, among others, -a powerful and very melancholy proof of the degeneracy of the time. -Though gaming in any degree is perverting the original and useful -design of that coffee-house, it may in some measure be excusable to -speculate on the following subjects:-- - -“Mr. Wilkes being elected Member for London; which was done from 5 to -50 guineas per cent. - -“Mr. Wilkes being elected Member for Middlesex; from 20 to 70 guineas -per cent. - -“Alderman Bond’s life for one year, now doing at 7 per cent. - -“On Sir J. H. being turned out in one year, now doing at 20 guineas per -cent. - -“On John Wilkes’s life for one year, now doing at 5 per cent.--N.B. -Warranted to remain in prison during that period. - -“On a declaration of war with France or Spain in one year, 8 guineas -per cent. - -“But,” continued the same journal, “when policies come to be opened on -two of the first peers in Britain losing their heads at 10_s._ 6_d._ -per cent., and on the dissolution of the present parliament within -one year at 5 guineas per cent., which are now actually doing, and -underwritten chiefly by Scotsmen, at the above coffee-house, it is -surely high time to interfere.” - -Such was the opinion of the journalist; and the following extract from -“Every Man his own Broker,” is a further proof that legislation of some -kind was absolutely necessary:-- - -“Another manner of spending the vacation formerly, was in insuring -the lives of such unfortunate gentlemen as might happen to stand -accountable to their country for misconduct. I am not willing to -disturb the ashes of the dead, or I could give an account of this -cruel pastime, the parallel of which is not to be met with in the -instance of any civilised nation; but I hope we shall hear no more of -such detestable gaming; therefore, as a scene of this kind fully laid -open might astonish, but could not convey instruction, humanity bids me -draw the veil, and not render any set of men unnecessarily odious. - -“A practice likewise prevailed of insuring the lives of well known -personages, as soon as a paragraph appeared in the newspapers -announcing them to be dangerously ill. The insurance rose in proportion -as intelligence could be procured from the servants or from any of -the faculty attending, that the patient was in great danger. This -inhuman sport affected the minds of men depressed by long sickness; -for when such persons, casting an eye over a newspaper for amusement, -saw their lives had been insured in the Alley at 90 per cent., they -despaired of all hopes, and thus their dissolution was hastened. -But to the honour of the principal merchants and underwriters, they -caused an advertisement, some years since, to be fixed up at Lloyd’s -Coffee-house, declaring that they would not transact business with any -brokers who should be engaged in such infamous transactions. - -“Insuring of property in any city or town that is besieged, is a -common branch of gambling insurance in time of war, but ingenious -gamesters, ever studious to invent new and variegate old games, have -out of this lawful game (for insurance in general is no more than a -game at chance) contrived a new amusement, which is, for one person to -give another 40_l._, and in case Gibraltar, for instance, is taken by -a particular time, the person to whom the 40_l._ are paid is to repay -100_l._; but if, on the contrary, the siege is raised before the time -mentioned, he keeps the 40_l._ - -“In proportion as the danger of being taken increases, the premium -of insurance advances; and when the place has been so situated, that -repeated intelligence could be received of the progress of the siege, -I have known the insurance rise to 90_l._ for the 100_l._ A fine field -this opens for spreading false reports, and making private letters from -the Continent. But how infinitely more harmless to trifle with property -than to affect the life of a fellow-subject, or to injure him with the -public, to serve a private end! - -“Of sham insurances, that is to say, insurances without property on -the spot, made on places besieged, in time of war, foreign ministers -residing with us have made considerable advantages. It was a well known -fact, that a certain ambassador insured 30,000_l._ on Minorca in the -war of 1755, with advices at the same time in his pocket that it was -taken.” - -At length the legislature interfered, and in order to hinder the growth -of gambling in life assurance, it was enacted, that “no insurance shall -be made on the life of any person, or on any event whatsoever, where -the person on whose account such policy shall be made _shall have -no interest_, or by way of gaming or wagering; and that every such -insurance shall be null and void. - -“It shall not be lawful to make any policy on the life of any person, -or on any other event, without inserting in the policy the name of the -person interested therein, or for what use, or on whose account such -policy is so made. - -“Where the insured has an interest in such life or event, no greater -sum shall be received from the insurer than the amount of the interest -of the insured in such life or event.”[14] - -This statute was some time before it came into effective operation. -It was after this that policies and wagers were carried on to such -an incredible degree in the trial of her Grace of Kingston. The -underwriters were fully aware that their movements were illegal; -but the spirit of gambling by means of assurance was too common to -be put down at once by an act of parliament, and in 1777, a singular -instance of the determination to grant wager policies came before -the public eye. Charles Genevieve Louise Auguste d’Eon de Beaumont, -popularly known as the Chevalier d’Eon, was the cause of a trial -before Lord Mansfield, as to the validity of a policy without an -insurable interest. The career of this man or woman, for the question -was long doubtful, was familiar to the public, and will illustrate -the excitement of the period. Equerry to Louis XV. doctor of law, -ambassador and royal censor, employed in a confidential mission to -the Russian court, and said to be a favourite of its empress, D’Eon -came to England with a reputation ready made. He soon quarrelled with -le Duc de Nivernois, ambassador from the most Christian King, and -as D’Eon proved unsuccessful in his attempt to injure his grace, he -was so incensed that he disclaimed all connection with the court and -ambassador, declared that the peace had been accomplished in England -by the agency of French gold; denouncing also, in no measured terms, -those who had been accomplices, and pointing almost by name to men -who, under the guise of patriotism, had betrayed their country. As a -patriot’s capital is his public character, the accused parties waxed -wroth, defied their calumniator, and talked of prosecuting him. The -people, unwilling to lose their faith in English probity, took the part -of their countrymen, and mobbed the knight wherever he appeared. - -In the mean time, doubts arising as to his sex, his calumnies were all -forgotten, and a new interest was attached to the chevalier, by the -assertion of some that he was male, and of others that he was female. -This was something fresh for assurance brokers, and the question was -mooted at Lloyd’s. At first wagers were made; but as there was no -present mode of deciding whether this extraordinary individual was man -or woman, they were quickly abandoned. - -It was decided, therefore, that policies should be opened on his sex, -by which it was undertaken that on payment of fifteen guineas, one -hundred should be returned whenever the chevalier was proved to be a -woman. At first he pretended to be indignant, and advertised that on -a certain day and hour he would satisfy all whom it concerned. The -place was a City coffee-house, the hour was that of ’Change, and the -curiosity of the citizens was greatly excited. The assurances on this -eccentric person’s sex were greatly and immediately increased, policies -to a very large amount were made out, wagers of thousands were -entered into, and to the rendezvous thronged bankers, underwriters, -and brokers. The hour approached, and with it came the chevalier, who, -dressed in the uniform of a French officer and decorated with the order -of St. Louis, rose to address the assembly. It is easy to imagine the -breathless attention of the listening throng (for a million was said to -depend on his words), the eager interest of some, the cool cupidity of -others, the ribaldry of more, and the astonishment of all, as with an -audacity only to be equalled by his charlatanry, he said “he came to -prove that he belonged to that sex whose dress he wore, and challenged -any one there to disprove his manhood with sword or with cudgel.” The -spirit of the citizens had long passed away, commerce had sheathed -the sword of chivalry, and none grasped the gauntlet for the honour -of London. Bankers, brokers, and underwriters gaped at one another -aghast; and though the boldness of the speech pleased many, it was far -from satisfactory to those who came with the hope of winning a wager, -or claiming their assurance money. The knight departed in triumph. -Large sums were said to be offered him to divulge his sex. “I know for -certain,” says a writer of the day, “that there were sums offered -to him, amounting to 30,000_l._” However this may be, it was thought -necessary to settle the question, if possible; and one of the first -actions tried after the act to prevent gaming in assurance, arose from -a policy on the sex of D’Eon, in which it appeared that Mr. Jaques, a -broker, had received several premiums of 35 guineas, for which he had -granted policies undertaking to return 100 whenever the chevalier was -proved to be a woman. The form of the contract was as follows:-- - -“In consideration of thirty-five guineas for one-hundred received -of Roebuck and Vaughan, we whose names are hereunto subscribed, do -severally promise to pay the sums of money which we have hereunto -subscribed, on the following condition; viz., in case the Chevalier -d’Eon should hereafter prove to be a female.” - -From this day the star of the chevalier waned in England. He turned -fencing-master, but with difficulty obtained a living. He assumed -female attire, but his hour was over. He had ceased to be a curiosity -to the many; the “death brokers,” as Horace Walpole calls them, could -make no more by him; and with the assurance on his sex ceases the -interest of Chevalier d’Eon, in the context of this volume. His name -is only interesting to the reader from the fact that Chief Justice -Mansfield adjudicated on his case, and that an important decision was -arrived at in the legal history of this science, when his Lordship -declared that a policy of assurance, although not even on life, when -entered into without an insurable interest, was against the purport of -the act recently passed, and contrary to English notions of morality. - -FOOTNOTE: - -[14] 14 Geo. 3. c. 48. - - - - -CHAP. X. - - FRAUDULENT ANNUITIES--ACT TO PREVENT THEM.--SALVADOR THE - JEW.--DAVID CUNNINGHAM THE SCOTCHMAN--HIS CAREER--HIS ANNUITY - COMPANY--ITS SUCCESS--HIS DOUBLE CHARACTER--HIS FATE.--MORTUARY - REGISTRATION.--JOHN PERROTT--HIS PASSION FOR CHINA--TRICK PLAYED - HIM.--CURIOUS FRAUD.--WESTMINSTER SOCIETY.--PELICAN. - - -When it was found that a fraudulent system of assurance would no longer -be permitted, a fraudulent system of annuities usurped its place, and -parliament was once more compelled to legislate. By an act passed in -1777, it was determined that, “owing to the pernicious practice of -raising money by the sale of life annuities having greatly increased, -and being much promoted by its secrecy, the particulars of all deeds, -bonds, &c., for granting these annuities shall, within twenty days of -the execution thereof, be enrolled in the Court of Chancery, otherwise -such bond shall be void. All future deeds also for granting annuities, -to contain the consideration and the names of the parties; and that -if any part of the consideration be returned, or is paid in bills not -honoured, or is paid in goods, or any part retained under pretence -of securing the future payments of the annuity, or under any other -pretence, the Court may order the deed to be cancelled. All contracts -with persons under twenty-one to be void; and no solicitor, scrivener, -or broker, to take more than 10_s._ per cent., under penalty of fine -and imprisonment.” - -A long course of evil doing had led to this enactment. From the -commencement of the eighteenth century, Jews, and Christians worse than -Jews; usurers, and bankers worse than usurers; had habitually sold -life annuities: before this, it was less common, being reserved almost -entirely for usurers and goldsmiths. It was a branch of business of -which, little as the seller might know, the annuitant knew nothing. -But if such men as Snow the banker, Samson Gideon the founder of the -house of Eardley[15], Fordyce the insolvent banker, and Colebrooke -the bankrupt East India director, undertook to grant payments, it may -easily be guessed, that they were either unmercifully fleeced, or got -nothing at all, when the great millionnaire was in the Gazette. Nor -was the practice confined to these men; Exchange Alley was pre-eminent -in buying or in selling annuities, in undertaking to pay, or in -willingness to receive any amount of money. They were as ready to -assure the life of, or to promise an annuity to a country clergyman, -as they were to trade in the fall of a prime minister, or to traffic -in the blood of an admiral. They took the hoard of the servant with as -much coolness as they coined false intelligence; and when a reverse of -fortune made them penniless, it involved hundreds of innocent persons -with them. - -The frauds which now attend the loans of money to the spendthrift, -are nothing compared to the gigantic scale with which, under the -name of annuities, they were then carried on. If a man granted one -on a fine estate for a consideration, that consideration was rarely -paid in money. The unhappy borrower was obliged to take whatever he -could get. Thus the stock-jobber made his prey receive consols at a -price much above that of the market. The merchant gave him a bill of -lading for some indifferent kind of merchandise. The banker handed him -long-dated bills, and sometimes was a bankrupt before they were due. -The large tradesmen--many of whom then, as now, surreptitiously carried -on the trade of money lending--got rid of goods which were otherwise -unsaleable. One piece of plate did yeoman’s service to its owner; into -whatever transaction of the kind he entered, it was always introduced. -It was valued at 600_l._ to the recipient, and it was always bought -back by the usurer for 70_l._ This man, a wealthy jeweller named -Salvador, was a specimen of another class, common enough in the middle -of the eighteenth century. His shop in Cornhill was the general resort -of those who wanted money and could give good security. He ran from -his house to ’Change Alley twenty times a day, to ascertain the price -of the funds, in which he dealt largely; and his agony was excessive -when it went against him. He would tear his hair and gnash his teeth; -he truly rent his heart, but not his garments, for the latter cost -money. During these paroxysms, the youngsters of the day were made to -suffer most exorbitantly, and one of them openly calling him Shylock -Salvador--the name he was usually known by--nearly paid the penalty of -his life; for the incensed Jew threw himself on the young profligate -and almost killed him. The idiosyncrasy of this man made him mad when -he lost his money, and as mad to regain it. Yet he evinced touches of -benevolence which redeemed his character, and traits of kindness which -made him much loved and respected by all his tribe. To Christians he -was as mischievous as a monkey, taking a delight in giving a crown -piece to a beggar, and then following him to demand it back, under -pretence that he had given it instead of a penny, with which, however, -he always failed to redeem it. - -It need not be added that he was loud in his reprobation of the act -against gambling in annuities, as it promised to strike a deep blow at -his profits. The bill met with much opposition, especially in the upper -house, but while the Earl of Abingdon deemed it his duty to denounce -its unconstitutional tendency, and to declare, “it was not calculated -for the genius of a free nation,” the Earl of Mansfield, a higher -authority, said, his experience had long since taught him that some -bill was wanting to put a stop to the usurious contracts and fraudulent -transactions which had been practised for many years, and which were -now carried to an height of enormity. - -At this period, various brokers and merchants devoted their capital -entirely to annuities, and many most honourable men experienced a -pleasure in aiding the endeavours of the poor, scorning at the same -time to take a mean advantage of the spendthrift; but there were others -who would have jobbed in the lives of their fathers, and sold their own -souls to perdition in their love of mammon. - -There were also the annuity companies which were unsafe, because they -were unsound in principles, and of which Dr. Price said that they cared -little about it; and that in addition to these there were likewise -fraudulent companies established by fraudulent men; let the following -sketch bear witness. - -Among those who misemployed their capacity in the formation of bubble -annuity societies, was one David Cunningham, whose career, so far as it -can be gathered, is a strange illustration of perverted powers. Born -in the shire of Inverness, of which his father was a native, bred a -presbyterian, with the confined if respectable notions of the class, -and meant “to wag his pow” in a pulpit, from whence in due time he is -even said to have held forth; Cunningham might have been respectable -and respected, had not his zeal for proselytism with a fair daughter -of his flock carried him beyond the borders of propriety. Like Adam -Blair he sinned, but unlike Adam Blair he repented not, and suddenly -disappearing from his native place, he left the victim of his passion -to repent her misdeed, and his parents to bear the agony of an only -son’s shame. As a boy he had been remarkable for acuteness and ability, -had at an early period devoted himself to arithmetical studies, and, -indebted to the pedlar--then the only communication between town -and country--for some odd books which treated of the science of -mathematics, had studied them to so much purpose that if the money had -been spent on his secular which was spent on his spiritual education, -he would probably have been a great mathematician and possibly a good -man. Possessed of a fine person and specious address, nothing is known -of him until twenty years afterwards, when he appeared in London with -a tolerable supply of money, and more than a proportionate supply of -audacity. Here he commenced the vocation of schoolmaster. At this time -the preaching of Whitfield and Wesley was a passion. Parties of titled -people were made up to hear them exhort and used up ladies of rank -experienced new sensations when Wesley expounded the religion they had -neglected, and Whitfield described the tortures they would endure. -Among the votaries of the new apostle, who, with the restlessness of -genius soon aspired to lead where hitherto he had followed, was David -Cunningham. - -He still kept on his school and made use of his gifts in prayer, which -were very remarkable, to procure introductions to the better class of -London society, among whom he moved with an air of pious humility, -alike distinguished for his toadying and his teaching. These he used -as levers for the artful design of forming an annuity company--next -to religion, annuity companies being the fashion--to be founded on a -new principle for indigent persons and widows. This principle was, -that it should be partly self-supporting and partly philanthropic, and -that annuities bought by the poor should be aided by the charitable -contributions of the rich. - -Cunningham was rather late in the market, for the volume of Dr. -Price, which dispersed the assurance bubbles, was on the point of -publication as he made his announcement; but the Scot was a crafty -man, and his prospectus breathed benevolence, not personal benefit; it -talked of charity and forgot allusion to per centages. Others might -weary themselves in striving to establish a purely self-supporting -institution, Cunningham struck into a new path. He showed that of the -existing companies some did not ask enough, and some demanded too -much. Other societies were often carried on in taverns; his fastidious -taste revolted from the idea. The whole mind of this scheming man was -bent upon betraying the public, and he determined to establish an -Imperial Annuity and Charitable Pension Society, the terms of which -should be lower than all others, while any awkward questions as to -its responsibilities should be checked by pointing to a long list of -patrons, against whose names should be placed large sums as donations -and subscriptions. Directors were not more difficult to procure then -than now, but Cunningham chose to be his own manager, and to represent -his own board. Persons of rank were as proud of seeing their names to a -charity as at the present day, and so plausible and persevering was the -Scotchman that he soon procured duchesses and peeresses to herald his -speculation. - -He was shrewd enough to vary his premiums to the position of the -applicant. He would take less than the established rates under cover -of a charitable institution; and the poor brought their money to him -because they could buy a larger annuity with less cash than anywhere -else. He tempted the general public with low rates of premium as he -pointed to the character of a board which never met. He would sell a -life annuity for whatever he could get, as he never refused an offer; -and, with a list of patrons like that which he paraded at the head of -his advertisements, it was almost impossible to doubt the solidity -of the company. His speculation answered. He had a large office; he -employed a considerable number of dependants; and the money which he -gained easily he spent freely. More customers came to his office than -to any other’s; for while the poor sought him with their savings, the -rich advised with him as to investment. He was consulted by widows, -and made the trustee of orphans. No one inveighed against mammon with -more solemn sanctity, and no one received money with a more demure -aspect. He gave great parties; he contrived to connect his name with a -certain class of the aristocracy; he dabbled in literature, and, like -an enthusiast of the present day, who is said to tell those who connect -themselves with his office that neither they nor their children, -nor their children’s children, can ever know want, he succeeded in -impressing on the public a conviction of his worth. - -The remarkable character of this man enabled him to play many parts. -In his office, and with the Hallifaxes, the Dents, the Glyns, and -the Ladbrokes of the time, he was the close, cool, methodical man of -business. Punctual to his time, his lightest word his bond, and ready -with his payments; he was respected in the City. Connected, as it has -been seen, with the sect of Whitfield, he seemed a reverent, devout -attender on the rites of religion. Though he gave up preaching when he -had attained his object, he yet retained a prominent position in the -chapel where he once held forth. But it was afterwards whispered by -those who knew him well, that he had another and less worthy character. -That some one marvellously like him was seen in places which sectarians -hold in horror; that when with persons he could trust, his orgies -were as wild as the worst of a wild time; and close observers might -have added that the sweet smile and the unctuous bearing were but the -cloak to cover his real designs, had not his purse and his reputation -disposed them to be short-sighted. - -The game he meant to play is uncertain, as his career was cut short by -the publication of the work of Dr. Price, on reversionary payments, -which had drawn notice to these societies generally. Some were -discovered to be false and hollow; others merely founded in ignorance. -Attention became naturally pointed to their framers. Questions were -asked as to the promoter of the last new company, which were more -easily asked than answered. Cunningham took the alarm, withdrew his -cash in gold from the bankers, told his subordinates to continue the -business until he returned, and left an address for his correspondence. - -From that time he was heard of no more, and the only conjecture that -could be made, was from the intelligence that a vessel trading to -Ireland had been wrecked, and that one of the bodies was that of a -gentleman supposed to be David Cunningham, the founder of the Imperial -Annuity and Charitable Pension Society. - -The misery caused to all whom this man had wronged was great; but it is -impossible to teach wisdom, and recent annals have shown us that the -world, in this respect, has not grown wiser as it has grown older. - -The act just given, entitled, “An Act to prevent Gambling in -Annuities,” struck a severe blow at annuity companies like these, as -well as at those which were for the sake of gambling merely, or for -which an unfair consideration had been given. It might be evaded by -some, or it might be defied by a few; but it at least had the effect -of sending the purchasers to those legitimate offices from which alone -they were certain of receiving their due. - -By this time the subject of mortuary registrations was mooted in -magazines and periodicals, and many ideas may be found scattered over -contemporaneous literature, which probably assisted to perfect the -necrological system which we now enjoy. It may seem trite to relate -that in 1773 it was recommended to keep a table of christenings, -marriages, and burials in every church, chapel, and place of -religious worship, to be published annually; but this was a grasp of -intelligence not previously attained; and when, too, it was advised -that the tables of christenings should specify the sexes, and the -tables of deaths divide the males into children, bachelors, married -men, and widowers, and the females into corresponding denominations, -it was really no trifling advance in the objects of life assurance, -although it was not thought so at the time. It was said, also, and -said justly, “The establishment of a judicious and accurate register -of the births and burials in every town and parish, would be attended -with the most important advantages,--medical, political, and moral. By -such an institution, the increase or decrease of certain diseases, the -comparative healthiness of different situations, climates, and seasons, -the influence of particular trades and manufactures on longevity, -with many other circumstances not more interesting to physicians than -beneficial to mankind, would be ascertained with tolerable precision. -In the Pays de Vaud and in a country parish in Brandenburgh, 1 in 45 -of the inhabitants die annually, and at Stoke Demerell, in Devonshire, -1 in 54. Whereas in Vienna and Edinburgh the yearly mortality appears -to be 1 in 20; in London, 1 in 21; in Amsterdam and Rome, 1 in 22; in -Northampton 1 in 26; and in the parish of Holy Cross, near Shrewsbury, -1 in 33. In the Pays de Vaud the proportion of inhabitants who attain -the age of 80 is 1 in 21-1/2; in Brandenburgh, 1 in 22-1/2; in Norwich, -1 in 27; in Manchester, 1 in 30; in London, 1 in 40; and in Edinburgh, -1 in 42.” - -This was in 1773, and the intelligent reader will necessarily be -reminded of the period when life annuities were paid for without regard -to youth or age, and when a life insurance office commenced business, -and received equal premiums from the young and from the old, from the -healthy and the sick. But people were beginning to think. In 1777 fault -was found with the charges of the Equitable, and the following scale -proposed:-- - - 3_l._ per cent. 4_l._ per cent. 5_l._ per cent. - 21 years of age 2 17 7 2 16 0 2 15 0 - 30 ” 3 13 4 3 12 8 3 12 5 - 40 ” 4 11 6 4 13 11 4 14 1 - 50 ” 5 15 5 5 18 0 5 17 4 - -In 1779 a proposal was made for an universal assurance of lives, by -means of a tax to be levied by Government. By this all want was to be -abolished, and various Utopian benefits to be received. As, however, -the scheme was never carried out, it is only worthy of notice as -indicative of a growing spirit of inquiry. - -In 1783 Mr. Baron Maseres endeavoured to familiarise the mind with -the doctrines of life annuities. It is to his discernment that we owe -the confirmation of Mr. de Moivre having recourse to an hypothesis -concerning the probabilities of the duration of human life, which he -yet knew to be untrue, in order to facilitate the computation. This -work of Francis Maseres is less referred to than it deserves; but there -is reason to believe that the value of his tables for all ages under 75 -or 80 were nearer the truth for the average of this country, than any -other then extant. - -During the mania for insuring anything and everything, there was a man -named John Perrott of considerable repute in the coffee-houses and on -the Exchange. He resided in a large mansion many miles out of town, -and rode to Lloyd’s in his coach and four, after the fashion of the -magnates of the day. He had come from the country a poor but clever -boy, and had worked his way until he could boast that he was worth -a plum. His avocations were various. He was a member of Lloyd’s; he -was a speculator on the money market; he was an insurer of lives, of -merchandise, and of anything that was offered, and so daring was his -character that he would take any risk however desperate, his motto -being, “Everything is insurable--at a premium.” He was liberal in his -dealings in business, and in his annuity transactions would often -grant more than he was asked if the applicant seemed to require and -deserve it. He affected an expensive style of living; his agents bought -rare pictures; but his chief delight was to collect fine china, a taste -in which he indulged to an extravagant extent. The uglier the monster -the dearer it was to John Perrott, and the more he was willing to pay -for it. His clerks were employed to board the vessels from the East -directly they reached the Thames, and he would at any time leave off -business to listen to information about pottery and porcelain. When -a man came to insure his life or his ship, to buy an annuity or to -sell one, he was sure of a favourable bargain if he could but produce -some vase or jar which had been seen by no one else. He had one fine -specimen in his collection, which however required a second and similar -one to complete its value in his eyes. This he once possessed, but -being lost or broken, it afforded him a constant topic of complaint, -and out of it arose a characteristic story of the man. - -One day he was applied to by a merchant to effect an assurance on -a ship which had been long absent, and of the safety of which many -doubts were entertained. Perrott demanded a very high premium, and -the applicant demurred. In the course of conversation, however, he -carelessly alluded to a fine porcelain jar of which a friend was -possessed, and which he thought he could procure. Perrott’s eyes opened -as the description proceeded. It was the apple of his eye, the very -specimen his soul desired, and his visitor, on witnessing the anxiety -he evinced, offered to go for it, good-naturedly declaring it was of -no value to him, and at the express solicitation of Perrott went off -immediately to fetch the valued prize. The merchant seemed a long time -gone, but Perrott attributed this to his own impatience, and felt fully -rewarded when he saw him return bearing the porcelain he coveted. With -eager hands he grasped it; the assurance on the missing ship was most -advantageously concluded for his client; and Perrott went home a happy -man. On entering the place where all his treasures were deposited, -lo! his own jar was missing, and he found on inquiry that he had been -outwitted by his City friend, who had tempted him to a low assurance -with information about his own property, and at his urgent wish had -procured it from his own home by a deception on his own housekeeper. - -Burning with rage, and vowing vengeance against the crafty merchant, -whom he determined to expose on ’Change, Perrott went to town the next -morning, where the first information which greeted him was the arrival -of the vessel he had just assured. Finding the tables turned in his -favour he wisely held his peace, merely making an especial visit to -the merchant to congratulate him on the arrival of his merchandise so -immediately after he had assured it. - -The following fraud, which was perpetrated in 1780, was perhaps the -first instance of a deception which has since been often repeated. -An application was made to the London to insure the life of a lady -for 2000_l._ The references were satisfactory. The lady’s health was -sound, her habits were good, her constitution was excellent. The -usual certificates were handed in and the assurance was concluded. -Within six months a claim was made for the money. The ordinary forms -were lodged and found to be regular, the disease was certified to be -that of the lungs, which of all others should have been discovered -in the earliest stages. The directors looked grave and questioned -the secretary, and the secretary questioned the doctor. There was no -accounting for it; it all seemed regular; no fraud could be alleged, -and the policy was discharged. Scarcely had it been paid when certain -information was given. Inquiries were again instituted, and it was -discovered that one sister being ill and utterly given over, the other -brought a certificate of the invalid’s birth, personated her at the -assurance office, deceived the medical man, sent in the certificate of -her sister’s death, and obtained the money. No sooner did the office -commence its inquiries than the lady was missing, and the company -compelled to abide by its first loss. - -An annuity and assurance office, stimulated by the success of the -Equitable, was commenced under the title of “the Universal,” but -history is silent as to its results. Many other attempts were made, -some of a purely local character, which were very successful; others, -more ambitious, failed in their endeavours. In 1792 the present -Westminster Society commenced business, and in 1797 was followed by the -Pelican, now in active existence. Some time prior to these, there was -an advertisement of a new assurance office on the lives of men, women -and children at the Bell and Dragon, otherwise called “Lincoln’s Inn -Eating-house in Portugal Street, Lincoln’s Inn, Back Gate.” It need not -be added that it was not by means of the “back gate to the Bell and -Dragon” that the Westminster and the Pelican obtained their deserved -success. - -FOOTNOTE: - -[15] “Never grant life annuities to old women,” Gideon would say; “they -wither, but they never die;” and if the proposed annuitant coughed on -approaching the room door, Gideon would call out, “Ay, ay, you may -cough, but it shan’t save you six months’ purchase.”--“Chronicles and -Characters of the Stock Exchange. By John Francis.” 2nd. Edition. - - - - -CHAP. XI. - - LEGAL DECISIONS.--WILLIAM PITT, AND GODSALL AND CO.--ROMANCE OF - LIFE ASSURANCE.--THE GLOBE.--NEW COMPANIES.--THE ALLIANCE--ITS - PROMOTERS.--IMPROVEMENT OF THE VALUE OF LIFE CONSEQUENT ON THE - IMPROVEMENT IN SOCIETY--ITS DESCRIPTION.--TRIAL CONCERNING THE DUKE - OF SAXE GOTHA.--IMPORTANT LEGAL DECISION. - - -It has been said that corporations have no souls to be saved or bodies -to be kicked; but it may be added that they have a wild kind of justice -meted to them when they appeal to a jury. So early as 1801, this was -proved in a case of life assurance. - -In 1799, a Mr. Robson, at the instance of a Mr. Kerslake, who was to -grant the former an annuity, proposed his life for insurance to the -Westminster Insurance Company. The usual forms were passed through, the -usual undertaking entered into that the assured was in good health, -his age being only twenty-three, and the policy was issued by the -office. In three months he died. The Westminster Society made inquiries -which perhaps they should have made before, and those inquiries -discovered that Mr. Robson had been labouring for some time under -what is popularly known as a tendency to consumption; that in 1797 he -had suffered from hæmorrhage in the lungs, but had recovered; that in -February, 1799, though he had another similar attack in a more violent -degree, he had said nothing about it, opening the policy on his life -in March. In the autumn he took cold, fell into a rapid decline and -died. There was clearly a predisposition to disease, and though it is a -very important consideration, whether a policy once open should not be -indisputable, yet until this is so, there is in a case like the present -but one view to be taken. The company rightly refused to pay, and an -action was brought to compel them. - - “Who shall decide when doctors disagree?” - -One party swore there were no symptoms which indicated consumption. -The other took their oaths that consumption was inevitable with such -symptoms. In vain Lord Kenyon charged the jury in favour of the -Westminster, the jury knew better than his lordship, and had no notion -of a policy being opened without being discharged, whatever the deceit -might be. They decided against the company. Another trial was sought -and granted, but in vain. The new jury maintained the principles of the -old, and the company lost its money and gained the vituperation of the -unthinking. - -The great minister of the past century died insolvent, and from this -arose one of those actions, which at once confirm a law and establish -a principle. In 1803 William Pitt was indebted to Godsoll and Co., -his coachmakers, upwards of 1000_l._ To secure some part of this in -the event of his demise, they assured his life for seven years with -the Pelican Company, for 500_l._ at the rate of 3_l._ 3_s._ per cent. -In 1806, three years after this, the premier died without sufficient -assets to meet his liabilities. The greatness of his services to -the country, the fact that he had died in debt being a proof of his -self-abnegation, demanded an acknowledgment, and the state very -properly determined to pay his creditors. This was not sufficient for -the coachmakers; an immediate claim was made by them for payment of the -500_l._ assured. As Godsoll and Co., however, had received the entire -amount of their bill when Mr. Pitt’s other debts were discharged, the -Pelican refused to pay, on the ground that their insurable interest -in the life of the deceased had been terminated by the payment of his -debts, and that as the insurance was to meet a special debt, since -discharged, they could not recover. - -On the one hand, Godsoll and Co., possessed an insurable interest at -and from the time of the opening the policy, to the death of Mr. Pitt. -On the other, the assurance being for a special purpose, to procure the -payment of a debt otherwise discharged, there could be no justice in -paying it twice. The company therefore offered to return the premiums, -but refused to pay the policy. There was an immense amount of special -pleading by the counsel of Godsoll and Co. to make the worse appear the -better cause. It was contended that, having had the necessary insurable -interest up to the death of Mr. Pitt, the after payment of his debts -did not vitiate their right; that, in other words, having paid the -premiums for a special purpose, which purpose was effected, they ought -to receive their 500_l._ instead of being satisfied with the return of -the mere premiums. It was now to be resolved whether, under any form or -by any subtlety of argument, the statute which said so distinctly an -insurable interest was necessary, could be broken through. - -Had Godsolls carried their point, every creditor might have insured the -life of his debtor and received a double payment of his debt. Every -tradesman in London might have speculated on his customers’ health, -and the act which was to destroy gambling policies, would have been -practically repealed. The judgment of Lord Ellenborough, when he gave -the decision in favour of the Pelican, is worth transcribing. - -“The interest which the plaintiffs had in the life of Mr. Pitt was -that of creditors, a description of interest which was held to be -an insurable one. That interest depended on the life of Mr. Pitt in -respect of the means and of the probability of payment which the -continuance of his life afforded to such creditors, and the probability -of loss which resulted from his death. The event against which the -indemnity was sought by this assurance, was the consequence of his -death as affecting the interest of these individuals assured in the -loss of their debt. This action is, in point of law, founded upon a -supposed damnification of the plaintiffs, occasioned by his death -existing at the time of the action, and being so founded, it follows -that if before the action was brought, the damage was obviated by the -payment of his debt to them, the foundation of any action on their -part on the ground of such assurance fails. And it is no objection to -this answer that the fund out of which their debt was paid did not -originally belong to the executors, as a part of the assets of the -deceased; for though it was devised to them _aliunde_, the debt of the -testator was equally satisfied by them thereout, and the damnification -of the creditors, in respect of which their action upon the insurance -contract is alone maintainable, was fully obviated before their action -was brought. Upon this ground, therefore, that the plaintiffs had in -this case no subsisting cause of action in point of law, in respect of -their contract, we are of opinion that a verdict must be entered for -the defendants.” - -In one of the eastern possessions of this country, there resided a lady -who, when gold was sought there by adventurous men, and when young -ladies were regularly educated for the Indian matrimonial market, had -left England on an expedition of this character. Her craft and cunning -would have insured success, had not her beauty, which is described as -exceedingly great, been a sufficient guarantee. She was consigned to -the care of a lady who had gone out on a similar adventure herself, and -who then held a somewhat high position in her own circle. The arrival -of the young adventuress as a new article was marked by a succession -of amusements: whispers of love and offers of settlement were not -wanting, though, being ineligible, they were disregarded, until she -became acquainted with a civilian reputed to be very wealthy, and known -to be rather old. This gentleman she married. Unhappily, the wealth -was only reputed; and the stormy indignation of the young beauty -when she discovered her error,--when she found her requests for new -carriages were disputed, and for new jewellery were refused,--somewhat -astounded the indolent Anglo-Indian, who had been the woo’d rather than -the wooer, and been married rather than he had married. So soon as she -discovered that she had wedded a poor instead of a wealthy man, and -that all her care and cunning had been in vain, she grew gloomy, dark, -and discontented; but at last, on representing to her husband that -she would be comparatively penniless if he were to die, accompanied -by blandishments which were the more welcome from their rarity, he -procured an insurance on his life, from the agent of a London company, -for some thousands. - -Among others attached to the household of this gentleman was a native -domestic, who at first had received the authority of his new mistress -with discontent, for until she came he had been paramount. But it was -not long before he succumbed, being suspected of a warmer attachment -than could be reconciled with the connection of servant and mistress. -There were many whispers circulated concerning them, in the dissipated -circle in which the lady moved; though so long as open decency was -preserved, the manners of the time allowed a considerable latitude; -and rather than disturb the _dolce far niente_ of their indolent and -luxuriant existence, they were content to give her the benefit of -the doubt. It was not long before symptoms of decaying health--“the -liver disease,” said the doctor, for every thing was then and there -so called--began to appear in the insured man. Whether he declined to -apply for leave of absence, or whether some backstairs influence was -used to prevent it, is uncertain; at any rate, he still kept at his -old quarters, dying gradually away, wasted by slow disease. During -this period, the behaviour of his wife was exemplary: his pillow was -smoothed, his medicine was administered, his cough was hung over by -her: and if she left him for a time, the Hindoo, gliding about like a -shadow, was ever by his master’s side, to complete what his mistress -began. It was noticed, however, that the patient seemed to suffer, -rather than desire so close a connection; and to shrink from, rather -than claim such attention. This, however, was thought little of, being -attributed to an irritability of temper arising from disease. - -In due time the unhappy man died; the insurance money was claimed by -the widow, and paid by the insurers. The household was broken up, and -the widow came to England. For a few years she lived in great luxury, -indulging expensive tastes on the money she had received, until only a -few hundred pounds were left in the hands of her bankers. Being a woman -of such remarkable beauty, it is somewhat surprising that she had not -married a second time in accordance with the extravagant and voluptuous -tastes, which her residence in the East had engendered. Instead of -this, she formed an acquaintance with a young man of inferior position; -a proposal of marriage followed, and she induced him to offer his life -for insurance, undertaking to pay the premiums out of her own funds. -The banker with whom her money was lodged was amazed when he heard what -she was about to do, and made some inquiries of an old East Indian, who -was then in England, concerning her former life. The replies of this -gentleman, although cautious, were sufficient to point the lady out as -a very doubtful character; and whether, on this, a hint was given to -the intended bridegroom is uncertain, but that gentleman declared off; -and the condition of the insurance not being complied with, the dark -purpose was foiled. A few months after other offices were applied to, -with proposals for an insurance on the life of a young relative of the -same lady, accompanied by a reference to the gentleman who acted as -her banker. Inquiries were necessarily instituted as to the reasons -for insuring, but no sufficient cause could be shown. It was found, -too, that she had no money to pay more than one insurance; and, coupled -with the reports which were afloat concerning her first husband’s -death, a very dark purpose was assigned to her present movement. -Awkward questions were raised--information was received, which pointed -to her as the poisoner of her husband, and to the Indian servant as -an agent in the infamous deed. A prompt negative was given to her -application for insurance; and whether conscience aroused her to a -sense of her frightful position, or whether she saw her way to success -on the continent or in India, is uncertain. She drew her money from -her agents, and disappeared for ever from the society in which she had -glided like an incarnation of evil. - -Up to 1800, six offices only were in existence. The Globe, however, -followed in 1803, being founded by Sir Richard Glyn; and though purely -proprietary, answered the requirements of the time. When it endeavoured -to obtain a charter, the vested interests rose against it, using the -same arguments to prevent its establishment, which the Globe itself has -since brought against the formation of the new companies in 1850. It -may be noticed that this insurance bill was introduced by Lord Henry -Petty[16], descended from that Sir William Petty whose services in the -cause of vital statistics have already been mentioned. Sir Charles -Price, Sir William Curtis, and Mr. Grenfell, opposed it in behalf of -the Royal Exchange and London Assurance Companies, on the ground that -it would be an infringement of their rights. On behalf of the Globe, -it was argued that competition was necessary--that the population and -trade of the country had vastly increased since 1720--that a large -amount of insurance was effected out of England, for want of chartered -companies--and, above all, that the Globe would give 100,000_l._ to the -public. The last consideration carried the point, and the Globe was -chartered. In 1805, a movement began in these institutions, occasioned -by a great excitement in the money market. In 1806, in 1807, and 1808, -eight new offices more were established; and from that year to 1821, -out of a great number which were proposed, commenced, and failed, eight -additional companies maintained their ground. In 1823, four; in 1824, -seven; in 1825, four; and in 1826, three more were added to the list, -making, by that year, a total of 41. - -There was room, in 1825, for an augmentation of companies. The -population of London in 1821 was 1,225,694; of these very few had -assured their lives; and if a city like London were behind in -this matter, it may be supposed that the inhabitants of the rural -districts were difficult to impress with its importance. Up to 1825, -assurance could not be said to have made much advance--certainly not -in proportion to the general advance of commerce. There had, indeed, -been much to alarm the public as to the safety of life institutions. -From 1806 to 1826 more companies had been broken up than had been -successful. In the first-named year only 9 were in existence; since -which, out of 30 which were commenced, 20 were compelled to abandon -their business.[17] Some went down in total insolvency; others lost -a large portion of their capital; another set of directors paid the -Provident Life 21,000_l._ to take their risks off their hands. Very -extravagant promises had been made by these companies. One gentleman -announced of the Union Life, “that every feature of its plan was marked -by superior liberality and with a decided contempt of all the petty -advantages which swell the profits of other offices.” A second society, -the Provincial Union, offered to take lives at 10 per cent. under -others; while another, with a spirit of “extra superior liberality,” -would do it at 20 per cent. less. Of course such as these were -never meant to last; but it was said, “they are persevered in until -everything is consumed, while the chief actors laugh in their sleeve -and enjoy their profits as long as the bubble lasts, and impunity when -it bursts.” - -Among the companies which were started in 1825, and which attracted -attention from the importance of its promoters, was the Alliance. In -its marine capacity it broke down the charters of the old corporations, -and was at once successful, not from any special merit, but because -it numbered among its members the representatives of the first city -firms. It may be added, that, among them, four men more alike in the -one desire of making money, but more dissimilar in tastes, pursuits, -and habits, were never before united. These were John Irving, Baron -Goldsmid, Moses Montefiore, and Samuel Gurney. The first of them, John -Irving, affected West End company and aristocratic tastes, by virtue -of the friendship of the House of Rutland. He was familiar with men in -Lothbury who were never able to meet his eye in Hyde Park. He knew many -a merchant on ’Change whom he could not recognise in St. James’s. “He -shakes me by the hand in the City,” growled Rothschild to a friend; -“but he can never see me in Piccadilly when he is walking with a -duke.” Moses Montefiore, the huge capitalist, and Isaac Goldsmid, the -hereditary financier, are familiar to the reader. The last on the list -is Samuel Gurney, whose simple garb of russet brown and unassuming -speech, contrast as much with his great wealth, as his massive, -masculine, and almost leonine face does with his single-minded and -benevolent character. These were the men who gave at once success and -security to the Alliance. - -The increased number of offices had the tendency to extend public -information, and to draw the attention of many who had hitherto thought -nothing on the subject. The original object of life assurance was -simply to enable a person to secure to his family the receipt of a -certain sum at his death. But by 1825 it was applied to a variety of -purposes; assurances were effected by creditors on the lives of their -debtors. If money were borrowed for a year the life of the borrower was -assured. In marriage settlements, where the capital would pass from the -husband at the death of the wife, an assurance was effected on the life -of the latter. “In every form,” says Mr. Gilbart, “the system seems to -produce unmingled good. It promotes habits of forethought and economy -on the part of the assured; it tends, by the accumulation of saving, to -increase the amount of the national capital.” - -The knowledge connected with the population was constantly increasing; -and, though it was imperfect enough, still it was in advance of our -previous information. In 1801 an approximation was made to that of -London, which was supposed to be 864,845; and when it is remembered -that Captain Graunt, so early as 1664, calculated it at 384,000, the -numbering of the people in 1801 was no small benefit. In 1811, when a -second census was taken, the population was stated to be 1,009,546; and -a further increase was declared in 1821, when the population showed -itself as 1,225,694. These calculations were not effected without -difficulty, and many objections were made by good but narrow-minded -men, who, from press and from pulpit, did not fail to remind our rulers -that David was rebuked by the prophet, and punished by God, for -attempting to do that which they had done. - -The health of London was also improved. It was estimated that the -introduction of vaccination had increased the mean duration of human -life about 3-1/2 years. There had been a great advance in medical -skill. Discoveries in chemistry had been brought to bear upon disease. -The arrangements of our hospitals had enabled students to graduate -under men of distinguished attainments; the discipline of the medical -school had been increased; and, though ignorance was often in the -ascendant, and quackery was encouraged as a revenue to the state, -men--somewhat different to those who were licensed to kill in the -days of Fielding and of Smollett--were employed in invigorating the -constitutions and prolonging the lives of their fellow-countrymen. We -must not also forget, that by 1825 a vast improvement had occurred -in the manners and habits of social life. Our fathers still remember -their visits when the bottle kept so constant a round that few remained -sober; when to be asked to a dinner-party was to be asked to get -intoxicated; when two and three-bottle men boasted their acquirements; -when the wild orgy disgraced humanity, and the wild debauch destroyed -life. We of the present day boast of this improvement to our children, -and whatever new vice may have usurped the place of the old, it is, -at least, less open in its defiance, and less baneful in its results. -When Petty first published, the streets were confined, cleanliness -was disregarded, refuse and offal accumulated in the highways, and -ventilation was laughed at. There may still be many receptacles of -filth in London, but they do not meet us in our daily avocations. The -kennels of Southwark do not run blood two days in every week, as they -did in the last century; nor are hogs “bred, kept, and fed,” in our -populous neighbourhoods. If, therefore, there were any thing in the -advance of chemistry, in draining, in ventilation, in more wholesome -living, in the absence of open debauchery, it followed that there -would be a considerable decrease in the rate of mortality. From 1700 -to 1780, the deaths averaged about one in thirty-eight of the existing -population. But in 1790 it became about one in forty-five, in 1800 -one in forty-eight, in 1810 one in fifty-four, and in the ten years -preceding 1820 one in sixty, in England and Wales. - -But though these important facts had gradually become known; although -it was also clear that people lived longer; that the wealthy classes -attained a greater age than the indigent; that the value of a lady’s -life, commercially, and not in the spirit of gallantry, was superior to -that of a gentleman; it could scarcely be said to be acted on. So late -as 1819, Dr. Rees suggested the importance of specifying the sexes, and -discriminating them in the burial registers, advising also that the -numbers of both sexes dying of every distemper in every manner and at -every age should be specified. “This would afford the necessary data -for ascertaining the difference between the duration of human life -among males and females, for such a difference there certainly is much -in favour of females.” - -The tables on which the rates of the companies had been founded, had -given the continuance of life at a far lower estimate than time had -proved it to possess. The enormous success of the original societies -had proved this; and, by 1821, it was generally understood that the -Northampton table was only an approximation to the truth. This table -was chiefly in use until the Carlisle table of Mr. Milne gradually made -its way, up to which period the following were the principal sources -whence information was derived:-- - -A Record of the Births and Burials in Breslau from 1687 to 1691. - -London Bills of Mortality from 1728 to 1737. - -Register of Assignable Annuities in Holland from 1623 to 1748. - -Lists of the Tontine Schemes and the Necrologies of Religious Houses in -France. - -Mortality of Northampton for forty-six years prior to 1780. - - ” of Norwich thirty years prior to 1769. - - ” of Holy Cross thirty years prior to 1780. - - ” Warrington for nine years. - - ” Chester for ten years. - - ” Vienna, Berlin, and Brandenburgh. - - ” Seven enumerations of the entire population of - Sweden. - - ” of similar materials from the Canton de Vaud. - -Notwithstanding these varied materials, and although they were quoted -as authorities for maintaining a high rate of premium, the societies in -existence were well aware that their rates were fixed on too ascending -a scale. They had found unexpected sources of profits in lapsed -policies; they had estimated an employment of their money at 3 per -cent., and, at the very lowest calculation, their receipts had averaged -4 per cent. Nor was this likely to diminish, for there can be no doubt -that laws as unerring as those which govern health govern the annual -value of money. In 1810, Mr. George Barrett had presented to the Royal -Society a new mode of calculating life annuities. This the Society -declined to publish, but that which was refused by a public body was -adopted by a private individual, and Mr. Bailey gave it to the world -in the appendix to his valuable work on “Annuities.” The method of -Mr. Barrett was extended and improved by Mr. Davies, in 1825, in his -tables of life contingencies; a proof that the Royal Society had made a -mistake in refusing to publish the contribution of Mr. Barrett. - -In 1830 it was decided that a policy was vitiated because the person -insured had only answered the questions demanded, and had not stated -all the features of his case. The following is a digest of the -circumstances:-- - -The life of the Duke of Saxe Gotha, after the fashion of the Germans -half a century since, was said to have been a dissolute one, and by -1825 had debilitated his constitution. He had lost the use of his -speech, and whatever mental faculties he had originally possessed, -became materially decreased. Private reports to the directors hinted -at these material circumstances, “little as they were believed to -have an influence on his natural life.” No hint of the kind, however, -escaped the friends of the assured, and the directors, trusting to -the honour of the duke more than as traders they ought to have done, -granted a policy. One year after, Death, respecting not the person of -his highness, seized him for his prey, and it was discovered that a -tumour, of some years’ standing, had pressed upon his brain and caused -his decease. - -With only one year’s premium received, the office found this claim -very unpleasant, and refused to pay. They said the mental state of the -duke had not been mentioned, that they were ignorant of his loss of -speech, and they fought very vigorously against discharging the policy. -The question which rose was, whether it was necessary to give special -information which was not asked; whether, in fact, a truthful answer -to all queries was not enough. When the trial came on, the verdict was -given for the office, because, according to Mr. Justice Littledale, -it was the duty of the assured in every case to disclose all material -facts within their knowledge: “In cases of life assurance, certain -specific questions are proposed as to points affecting all mankind. But -there may also be circumstances affecting particular individuals which -are not likely to be known to the insurers, and which, had they been -known, would have been made the subject of specific inquiries.” However -legal this might be, it was scarcely equitable. The directors had -insured the life of this gentleman, knowing, from private information, -that his career had been gay, and his constitution debilitated, and -they ought, on every principle of justice, to have been compelled to -pay their obligation. - -In the same year another very important decision was arrived at. A -gentleman assured the life of his son in the Asylum for 5000_l._ After -the payment of two years’ premium the son died, and the office refused -to honour the policy, because the father had no insurable interest in -the life of his son. When the case was tried, the grounds on which -the counsel endeavoured to prove an insurable interest were, that the -father had expended a large sum in maintaining and in educating the -deceased; that if a man had an insurable interest in his own life, -he certainly had in that of his son; that a father might have many -valuable rights and expectations depending on it which he could only -protect by an insurance; that, by the statute of Elizabeth, if a father -became poor in his old age, and his son was capable of maintaining him, -he was bound to do so, and therefore the chance of the father being -maintained in his old age was decreased by the death of his son. - -The special pleading evident in this line of argument was not -calculated to be successful. But though a strict interpretation of the -act might justify the refusal to pay, it does not appear that such a -decision is strictly equitable. - -The reason which induced the office to refuse payment may possibly be -found in the fact that only two years’ premium was received, and that, -as a young office, they were galled at having made an unfortunate -bargain. But there does not seem justice in the interpretation of a law -which decides that a father has no interest in the life of his son, -although there are many reasons to justify it as expedient. Yet so it -was ruled; and this decision affected property to the amount of half a -million. Mr. Justice Bayley, in giving judgment, said: “If a father, -wishing to give his son some property to dispose of, made an insurance -on his son’s life, not for the father’s own benefit, but for the -benefit of his son, there was no law to prevent his doing so; but that -was a transaction quite different from the present; and if the notion -prevailed that such an insurance as the one in question was valid, the -sooner it was corrected the better.” - -FOOTNOTES: - -[16] The present Marquis of Lansdowne. - -[17] - - Birmingham. - Commercial. - Egis. - Hercules. - Kent. - London Commercial. - Marine. - Minerva. - National. - Philanthropic. - Protector. - Rainbow. - Royal Institution. - St. James’s. - St. Patrick. - Shamrock. - South Devon. - Southwark and Surrey. - Star. - Sussex. - - - - -CHAP. XII. - - GOVERNMENT ANNUITIES--OPINIONS CONCERNING THEM--GREAT LOSS TO THE - STATE.--MR. MOSES WING’S LETTER.--MR. FINLAISON.--NEW ANNUITY - ACT--ITS ADVANTAGES TO JOBBERS.--ENDEAVOURS TO PROCURE OLD - LIVES.--ANECDOTES CONCERNING THEM.--PHILIP COURTENAY. - - -Up to the year 1808 there was no mode of investing money in life -annuities at once safe and profitable. Although the assurance were also -annuity offices, yet, at this period, only three of any standing were -in existence, and the public had seen and suffered so much from the -failure of various joint stock companies, that they regarded all new -societies with a proper degree of jealousy. At the time above named -there had been a speculative excitement in the money market, followed -by a disastrous panic. Many companies had been compelled to wind up -their business, and others, having no business to wind up, had been -left to their fate. And of annuities granted by private persons, the -public had a well-founded horror; for the persons who had chiefly -granted them were bankers, stock-jobbers, and mock millionnaires, who -had often been swept away by panics on the Stock Exchange. In 1809 -complaints were instituted that persons wishing to make provision -for themselves or their families had no certain fund on which such -annuities could be secured, and the ministers were made aware of many -infamous practices which often plunged whole families into ruin. The -Government, therefore, determined to become dealers in life annuities, -and in the very outset made a considerable and almost fatal mistake. -The tables of mortality known as the Northampton were the chief basis -on which the various life assurance companies founded their premiums; -and, by a singular error, the state adopted the same basis on which to -grant annuities for life; but as the most intelligent men of the day -were employed in calculating and constructing tables, the Government -was scarcely to blame, particularly as they sought no profit, entering -into the undertaking solely from a consideration of its advantages to -the community. - -From 1809 to 1819 this system continued. The speculators soon found -out that the Government charge for a life annuity afforded a very -remunerative investment, and the insurance offices made considerable -profit by purchasing and reselling them. The Commissioners of Greenwich -Hospital also selected many of the most healthy of their pensioners, -and bought large annuities on them,--a proceeding productive of as -much profit to the commissioners as of loss to the state. The mistake -made by Government in its calculations was no secret. Actuaries and -accountants were well aware of it; and Mr. Moses Wing wrote to the -chancellor, informing him that the tables on which they were granted -were productive of great loss to the revenue. The ordinary lassitude -of Government was displayed in the chancellor’s reply, that it was not -expedient to make any alteration, as “the compilation of new tables -would be attended with much difficulty.” Mr. Wing then wrote again, -showing that there was a loss of 15 per cent. on some, and on others -of 20 and 24 per cent.; and that on a transfer of 12,000,000_l._ stock -there was a loss of not less than 2,691,200_l._, and from this, the -chancellor took refuge in a dignified silence. - -In 1819 the attention of the authorities was again drawn to the same -fact. But vainly for many years had they been informed that the -public money was wasted; that no capitalist in London would grant -annuities on the same terms; and that a serious loss was incurred. -Government servants, like kings, can do no wrong, and the information -was officially pooh-poohed! Letters might be written, and the receipt -acknowledged; but the letters were shelved with due determination not -to recur to them in a hurry. Among the assailants, however, was one -who was important as well as vigorous, and very annoying questions -were put in the House of Commons. It was the day when large majorities -answered every unpleasant topic, and for a time the querists were -silenced. At last it was stated that Mr. Finlaison had informed the -Chancellor of the Exchequer that Government was losing 8000_l._ per -month by its supineness, and “the patriots,”--so miscalled because -they were in opposition,--seized on this important point to harass -their opponents. It was triumphantly replied that the bill had been -in operation since 1808, and was founded on the Northampton bills of -mortality. As Dr. Price passed for an authority, and as a name goes a -great way, the patriots were dumb, until one of more mark than the rest -hinted that the value of life, as estimated by a life assurance company -for its own benefit, and on which enormous profits had been made by -them, would be just as unfavourable to the granters of life annuities; -that the proportion of gain to the office would be the proportion of -loss to the Government. The ministers shook their heads at this, and -required time to consider. The economical members pressed their point, -and urged an investigation. Night after night they pursued their foes -with clamour, and day by day they reiterated their assertions in the -clubs. The reports and rumours which were spreading in the financial -world, and the assertions which were everywhere made, were, indeed, -somewhat alarming. It was said that, according to Mr. Finlaison’s -report, 400,000_l._ a-year was being lost; many, determined not to be -outdone, asserted 100,000_l._ a-week was the lowest estimate; others, -that an insurance office had realised 60 per cent. by dealing in them. -Statements like these were so injurious to the financial character -of the Government, that it was found necessary to stop them; and the -chancellor said that, as only 640,000_l._ had been granted in the shape -of life annuities, it was not very likely we were losing 100,000_l._ -weekly; that Mr. Finlaison was employed in constructing tables; and -that, though this gentleman had certainly stated the terms were too -favourable, yet the true amount of loss would be difficult to attain, -Mr. Finlaison’s estimate being an abstruse calculation as to the amount -of the National Debt which would be redeemed in sixty years, compared -with the amount which would have been redeemed had no annuities been -granted. This he estimated at 3,200,000_l._ less than would have -been attained by the Sinking Fund. At last, in 1829, Mr. Finlaison -reported to the House, and the tables in connexion were certainly the -most valuable of the kind then published. Access had been given to -every document bearing on the subject. The registries of the tontines, -the ages attained by the lives on which annuities had been granted a -century previous--the experience of the offices--procured a mass of -information which was turned to great advantage. The tables fill fifty -folio pages, and show the rates of mortality, the value of annuities on -single lives at all ages, among many classes of annuitants, separate -and combined; the sexes being distinguished, both in exhibiting the law -of mortality and the value of annuities. - -These tables were satisfactory in the evidence they gave of a material -improvement in the average duration of life. In forty years so great -a change had taken place in the condition of the people, that the -decrease of mortality was from 1 in 40 to 1 in 56. They proved, also, -to demonstration, the extraordinary difference between the longevity of -men and women, a circumstance not hitherto known to a certainty, but -one which was most important to the granters of annuities. The result -of all these calculations was comprised in the fact mentioned,--that -the public, at the end of thirty-five years, will be burthened with -a perpetual annuity of 96,000_l._, owing to the error so tardily -rectified. We shall now see the mode in which these errors were amended. - -There is something very provocative of mirth in the economical -movements of Government. They had just been obliged to annul tables -which had been in operation for twenty years; they had been compelled -to acknowledge to the House that they had been wasting the public -money; they had employed an actuary for ten years in procuring -information on which new tables could be constructed, and scarcely -had these been brought into operation than they found they were again -in error. While the new act was preparing which was to enable the -Government to sell life annuities and annuities for certain terms of -years, the tables were shown to a gentleman in the Bank of England, who -at once declared that those which were framed for lives above a certain -age were too low in price. It was replied that they were taken from -the experience of the assurance offices, and that they represented the -average value of life at that period. “Yes!” was the reply, “but if -select lives are brought, what becomes of your average?” - -The act was passed; and by the tables which it authorized a man of -ninety by paying 100_l._ would receive for life an annuity of 62_l._ -The first payment commenced three months after the purchase, and if the -nominee lived one year and a quarter, the nominator received back all -the purchase money, so that every half year the annuitant lived after -this was pure gain.[18] - -The shrewd gentlemen of the Stock Exchange immediately saw and -seized the advantage. Agents were employed to seek out in Scotland -and elsewhere robust men of ninety years of age, to select none but -those who were free from the hard labour which tells on advanced -life, and to forward a list of their names. The Marquis of Hertford, -of unenviable notoriety, added to his vast wealth by choosing as -nominees those who were remarkable for high health; on two only, -taking annuities of 2,600_l._ Wherever a person was found at the age -of ninety, touched gently by the hand of time, he was sure to be -discovered by the agents of the money market, the members of which -speculated with, but scarcely perilled their wealth on the lives of -these men, on such terms. - -The inhabitants of the rural districts of Scotland, of Westmoreland, -and of Cumberland, were surprised by the sudden and extraordinary -attention paid to many of their aged members. If they were sick, the -surgeon attended them at the cost of some good genius; and if they -were poor, the comforts of life were granted them. In one village -the clergyman was empowered to supply the wants of three old, hale -fishermen during the winter season, to the envy of his sick and ailing -parishioners. In another, all the cottagers were rendered jealous by -the incessant watchful attention paid to a nonogenarian by the magnate -of the place. It was whispered by the less favoured that he had been -given a home near the great house; that the cook had orders to supply -him with whatever was nice and nourishing; that the laird had been -heard to say he took a great interest in his life, and that he even -allowed the doctor twenty-five golden guineas a year, so long as he -kept his ancient patient alive. - -One man was chosen of above ninety who would walk eight miles any day -for 6_d._ The hills and dales of the north of England, with the wild -moors and heaths of Scotland, peopled by those who never breathed -the air of cities, furnished nominees; and, lest there should be -any lurking disease, they were examined by a medical man to confirm -the appearance they bore. There were several curious anecdotes in -connection with these shrewd speculations. There were two baronets -offered, illustrative of an old story. Both were nonogenarians, both -were sound, wind and limb; the one was remarkable for his extreme -temperance, the other for drinking two bottles of wine daily, but both -first-rate lives. - -The offices were besieged with contracts on such men as these. -Notwithstanding the heavy losses which Government had sustained by -the previous tables, they lost much more by the present oversight, -for against lives chosen with so much care and nursed with so much -attention, there was not a chance. - -One legend is extant to show the trouble which the nominators would -take, in order to procure a person on which they could safely invest -their money. - -An eccentric, simple old man, an amateur angler in the streams which -adorn the dales of Cumberland and Westmoreland, gave rise to the -following attempt to procure him:--This man, named John Wilson, had -not been born in the dales, but had come at an early age to take his -lot among the single-minded people who dwell there. He had bought a -small farm, on the produce of which, tilled by his sons and grandsons, -he lived. He was soon found out by the agents of the speculators; but -for some reason, known only to himself, refused to be speculated on, -and as the secret of his birthplace was confined to his own breast, no -register of his age could be procured without his consent. At ninety -he would have passed for seventy. He would wander for whole days with -only his fishing-rod and basket among the lakes and rivers of his -adopted home. For a week together he would be away from his dwelling, -lodging, when the night came, wherever he could procure a bed. In vain -was he tempted with presents of fishing-rods; in vain the choicest -London-made fly was offered; he turned away with an air of indifference -and defied the temptation. - -There came to reside in the village, apparently on account of his -health, a young gentleman who took John’s fancy, for he was fond of -fishing and had never asked the old man where he was born. To him he -showed his choicest retreats for casting the fly, told him stories of -wonderful throws he had made, and wonderful fish he had caught, and -pleasant were the long summer days passed by these two in the deep -recesses of the hills, following the course of rivers, and tracing -streams to their rise. It never entered into the old man’s thoughts, -that one of those who were interested in knowing his birthplace was -becoming a bosom friend. But so it was. The invalid had only sought -the neighbourhood for that purpose, and when he had thoroughly gained -his confidence, he turned the conversation very cautiously to the old -man’s early history. The latter showed no symptoms of anxiety, and the -Londoner went yet further: still there was no alarm apparent. But the -next question, which, if answered, would have settled the point, was -too abruptly put. The ancient angler wheeled round, faced his companion -sorrowfully, and merely saying--“Eh! man, the ways of the world, the -ways of the world!” shouldered his rod, and disappeared down a ravine -close by, leaving his companion to find his way home as best he could, -and far too much annoyed to remain any longer in the neighbourhood -where he had been so unsuccessful. - -When schemes like these were resorted to, and this is only one of -many[19], it is obvious that the expected gain must have been great. -One house alone entered into contracts on the lives of men similar -to those described, for thousands, and the first to open a contract -was the Marquis of Hertford, whose attention was probably drawn to -the speculation by Mr. Croker. Philip Courtenay, Queen’s Counsel and -Member for Bridgewater, was another. He availed himself of his tour on -the Northern Circuit to seek out old and healthy lives. Just at this -time the House of Lords refused so resolutely to pass the Reform Bill, -that the monarch was expected to force them into compliance. The mind -of the people was greatly excited; and, unable to account for Mr. -Courtenay’s avidity, a Yorkshire paper gravely asserted that Earl Grey, -being determined to carry the Reform Bill, had employed the Member for -Bridgewater to choose a sufficient number of aged persons to receive -the honour of peerage, the prime minister being determined to swamp the -Upper House with nonogenarians rather than fail in his purpose. - -One firm alone, that of Benjamin and Mark Boyd of the Stock Exchange, -took three-fourths of the entire contracts for their friends; and -as the lives chosen by them were good, it is probable that their -constituents averaged a profit of 100 per cent. The desire to speculate -on nonogenarian lives soon became a mania. Barristers with a few -thousands,--ladies with a small capital,--noblemen with cash at their -bankers, availed themselves of the mistake. It is difficult to say -to what extent it would have proceeded, had not Mr. Goulburn availed -himself of a clause in the act, to cease granting annuities which might -prove unfavourable to government. - -FOOTNOTE: - -[18] The following table will show the precise action of an investment -of 100_l._ on a nominee aged 90:-- - - £ _s._ - 100_l._ paid on Jan. 4. 1830, would produce - ” ” on 6th April 1830 31 0 - ” ” on 10th Oct. 1830 31 0 - ” ” on April 5th 1831 31 0 - ------ - 93 0 - If the nominee lived only one day longer, say to - April 6th, 1831, there would be due an additional 15 10 - ------ - £108 10 - ------ - -Thus the capital and interest at 8-1/2 per cent. were returned in one -year, three months, and two days. - -[19] One gentleman thinking that the Greenwich pensioners would afford -good subjects, went to the hospital with that purpose. But they all -gave their ages at 90 and above, and when the parish registers were -searched for the dates of their birth, it was discovered that they had -exaggerated, in some cases ten and in others twenty years. Every one -claimed the distinction of being nonogenarian, and the consequence was -that the stock-broker was completely baffled in his attempt. - - - - -CHAP. XIII. - - FRAUD IN LIFE ASSURANCE COMPANIES--ITS EXTENT--ITS REMARKABLE AND - ROMANTIC CHARACTER.--JANUS WEATHERCOCK.--HELEN ABERCROMBIE--HER - DEATH.--FORGERY OF WAINWRIGHT--HIS ABSENCE FROM ENGLAND--HIS RETURN, - CAPTURE, AND DEATH.--INDEPENDENT AND WEST MIDDLESEX--ITS RISE, - PROGRESS, AND RUIN OF ALL CONCERNED. - - -In 1830, two ladies, both young and both attractive, were in the habit -of visiting various offices, with proposals to insure the life of the -younger and unmarried one. The visits of these persons became at last a -somewhat pleasing feature in the monotony of business, and were often -made a topic of conversation. No sooner was a policy effected with -one company than a visit was paid to another, with the same purpose. -From the Hope to the Provident, from the Alliance to the Pelican, -and from the Eagle to the Imperial, did these strange visitors pass -almost daily. Surprise was naturally excited at two of the gentler sex -appearing so often alone in places of business resort, and it was a -nine days’ wonder. - -Behind the curtain, and rarely appearing as an actor, was one who, to -the literary reader versed in the periodical productions of thirty -years ago, will be familiar under the name of Janus Weathercock; -while to the student of our criminal annals, a name will be recalled -which is only to be remembered as an omen of evil. The former will be -reminded of the “London Magazine,” when Elia and Barry Cornwall were -conspicuous in its pages, and where Hazlitt, with Allan Cunningham, -added to its attractions. But with these names it will recall to them -also the face and form of one with the craft and beauty of the serpent; -of one too who, if he broke not into “the bloody house of life,” -has been singularly wronged. The writings of this man in the above -periodical were very characteristic of his nature; and under the _nom -de guerre_ of Janus Weathercock, Thomas Griffith Wainwright wrote with -a fluent pleasant egotistical coxcombry, which was then new to English -literature, a series of papers on art and artists. An _habitué_ of the -opera and a fastidious critic of the _ballet_, a mover among the most -fashionable crowds into which he could make his way, a lounger in the -parks and the foremost among the visitors at our pictorial exhibitions, -the fine person and superfine manners of Wainwright were ever -prominent. The articles which he penned for the “London,” were lovingly -illustrative of self and its enjoyments. He adorned his writings with -descriptions of his appearance, and--an artist of no mean ability -himself--sketched boldly and graphically “drawings of female beauty, in -which the voluptuous trembled on the borders of the indelicate;” and -while he idolised his own, he depreciated the productions of others. -This self-styled fashionist appears to have created a sensation in the -circle where he adventured. His good-natured, though “pretentious” -manner; his handsome, though sinister countenance; even his braided -surtout, his gay attire, and semi-military aspect, made him a -favourite. “Kind, light-hearted Janus Weathercock,” wrote Charles Lamb. -No one knew anything of his previous life. He was said to have been in -the army--it was whispered that he had spent more than one fortune; -and an air of mystery, which he well knew how to assume, magnified him -into a hero. About 1825, he ceased to contribute to the magazine; and -from this period, the man whose writings were replete with an intense -luxurious enjoyment--whose organisation was so exquisite, that his love -of the beautiful became a passion, and whose mind was a significant -union of the ideal with the voluptuous--was dogged in his footsteps -by death. It was death to stand in his path--it was death to be his -friend--it was death to occupy the very house with him. Well might -his associates join in that portion of our litany which prays to be -delivered “from battle, from murder, and from _sudden death_,” for -sudden death was ever by his side. - -In 1829, Wainwright went with his wife to visit his uncle, by whose -bounty he had been educated, and from whom he had expectancies. -His uncle died after a brief illness, and Wainwright inherited his -property. Nor was he long in expending it. A further supply was -needed; and Helen Frances Phœbe Abercrombie, with her sister Madeline, -step-sisters to his wife, came to reside with Wainwright; it being soon -after this that those extraordinary visits were made at the various -life offices, to which allusion has been made. - -On 28th March, 1830, Mrs. Wainwright, with her step-sister, made their -first appearance at an insurance office, the Palladium; and by the -20th April a policy was opened on the life of Helen Frances Phœbe -Abercrombie, a “buxom handsome girl of one-and-twenty,” for 3000_l._, -for three years only. About the same time a further premium was paid -for an insurance with another office, also for 3000_l._, but for only -two years. The Provident, the Pelican, the Hope, the Imperial, were -soon similarly favoured; and in six months from granting the first -policy, 12,000_l._ more had been insured on the life of the same -person, and still for only two years.[20] But 18,000_l._ was not enough -for “kind light-hearted Janus Weathercock;” 2000_l._ more was proposed -to the Eagle, 5000_l._ to the Globe, and 5000_l._ to the Alliance; all -of whom, however, had learned wisdom. At the Globe Miss Abercrombie -professed scarcely to know why she insured; telling a palpable and -foolish falsehood, by saying that she had applied to no other office. -At the Alliance, the secretary took her to a private room, asking -such pertinent and close questions, that she grew irritated, and said -she supposed her health, and not her reasons for insuring, was most -important. Mr. Hamilton then gave her the outline of a case in which a -young lady had met with a violent death for the sake of the insurance -money. “There is no one,” she said in reply, “likely to murder me for -the sake of my money.” No more insurances, however, being accepted, -the visits which had so often relieved the tedium of official routine -ceased to be paid. These applications being unsuccessful, there -remained 18,000_l._ dependent on the life of Helen Abercrombie. - -In the mean time Wainwright’s affairs waxed desperate, and the man -grew familiar with crime. Some stock had been vested in the names -of trustees in the books of the Bank of England, the interest only -of which was receivable by himself and his wife; and determined to -possess part of the principal, he imitated the names of the trustees -to a power of attorney. This was too successful not to be improved on, -and five successive similar deeds, forged by Wainwright, proved his -utter disregard to moral restraint. But this money was soon spent, till -everything which he possessed, to the very furniture of his house, -became pledged; and he took furnished apartments in Conduit Street for -himself, his wife, and his sisters-in-law. Immediately after this, -Miss Abercrombie, on pretence or plea that she was going abroad, made -her will in favour of her sister Madeline, appointing Wainwright sole -executor, by which, in the event of her death, he would have the entire -control of all she might leave. - -She then procured a form of assignment from the Palladium, and made -over the policy in that office to her brother-in-law. Whether she -really meant to travel or not is uncertain; it is possible, however, -that this might have been part of the plan, and that Wainwright hoped, -with forged papers and documents, to prove her demise while she was -still living, for it is difficult to comprehend why she should have -voluntarily stated she was going abroad, unless she really meant to do -so. In this there is a gleam of light on Wainwright’s character, who, -when he first insured the life of Miss Abercrombie, might have meant -to treat the offices with a “fraudulent,” and not a positive death. -Whatever her _rôle_ in this tragic drama, however, it was soon played. -On the night which followed the assignment of her policy, she went with -her brother and sister-in-law to the theatre. The evening proved wet; -but they walked home together, and partook of lobsters or oysters and -porter for supper. That night she was taken ill. In a day or two Dr. -Locock attended her. He attributed the indisposition to a mere stomach -derangement, and gave some simple remedies, no serious apprehension -being entertained by him. - -On the 14th December, she had completed her will, and assigned her -property. On the 21st she died. On that day she had partaken of a -powder, which Dr. Locock did not remember prescribing; and when Mr. and -Mrs. Wainwright--who had left her with the intention of taking a long -walk--returned, they found that she was dead. The body was examined; -but there was no reason to attribute the death to any other cause than -pressure on the brain, which obviously produced it. - -Mr. Wainwright was now in a position to demand 18,000_l._ from the -various offices, but the claim was resisted; and being called on to -prove an insurable interest, he left England. In 1835, he commenced -an action against the Imperial. The reason for resisting payment was -the alleged ground of deception; but the counsel went further; and -so fearful were the allegations on which he rested his defence, that -the jury were almost petrified, and the judge shrunk aghast from the -implicated crime. The former separated unable to agree; while the -latter said, a criminal, and not a civil court should have been the -theatre of such a charge. In the following December, the company -gained a verdict; and as the forgery on the Bank of England had been -discovered, Wainwright, afraid of apprehension, remained in France. -Here his adventures are unknown. At Boulogne, he lived with an English -officer; and while he resided there, his host’s life was insured by -him in the Pelican for 5000_l._ One premium only was paid, the officer -dying in a few months after the insurance was effected. Wainwright -then left Boulogne, passed through France under a feigned name, was -apprehended by the French police; and that fearful poison known as -strychnine being found in his possession, he was confined at Paris for -six months. - -After his release he ventured to London, intending to remain only -forty-eight hours. In an hotel near Covent Garden he drew down the -blind and fancied himself safe. But for one fatal moment he forgot -his habitual craft. A noise in the streets startled him: incautiously -he went to the window and drew back the blind. At the very moment “a -person passing by” caught a glimpse of his countenance, and exclaimed, -“That’s Wainwright, the Bank forger.” Immediate information was given -to Forrester; he was soon apprehended, and his position became fearful -enough. - -The difficulty which then arose was, whether the insurance offices -should prosecute him for attempted fraud, whether the yet more terrible -charge in connection with Helen Abercrombie should be opened, or -whether advantage should be taken of his forgery on the Bank, to -procure his expatriation for life. A consultation was held by those -interested, the Home Secretary was apprised of the question, the -opinions of the law officers of the crown were taken, and the result -was that, under the circumstances, it would be advisable to try him for -the forgery only. This plan was carried out, the capital punishment was -foregone, and when found guilty he was condemned to transportation for -life. - -His vanity never forsook him. Even in Newgate he maintained his -exquisite assumption, triumphing over his companions by virtue of his -crime. “They think I am here for 10,000_l._, and they respect me,” he -wrote to one of his friends, who would not desert him. He pointed the -attention of another to the fact, that while the remaining convicts -were compelled to sweep the yard, he was exempted from the degrading -task. Even here his superfine dandyism stuck to him. Drawing down his -dirty wristbands with an ineffable air of coxcombry, he exclaimed, -“They are convicts like me, but no one dare offer me the broom.” - -But bad as this might be for such a man, he brought yet harsher -treatment on his head. As, previously to Helen Abercrombie’s death, she -had made her will in favour of her sister, the claim of the latter was -placed before the various offices in which the life had been insured. -While this was pending, Wainwright, thinking that if he could save the -directors from paying such large sums, they would gratefully interfere -for the alleviation of his misery, wrote a letter giving them certain -information, coupled with a request or condition that they should -procure a mitigation of punishment. What this revelation was may be -judged from the united facts, that it saved the offices from paying the -policies, and that when they communicated it to the Secretary of State, -an order was immediately sent to place him in irons, and to forward -him instantly to the convict ship. If his position were bad before, it -was worse now; and he whose luxury a rose leaf would have ruffled, and -whose nerves were so delicately attuned that a harsh note would jar -them, must have been fearfully situated. He had played his last card, -and he had lost. When he wrote from Newgate he had claimed for himself -“a soul whose nutriment was love, and its offspring art, music, divine -song, and still holier philosophy.” In the convict ship he shrunk from -the companionship of the men with whom he was associated, and his pride -revolted from being placed in irons without distinction, like them. -“They think me a desperado! Me! the companion of poets, philosophers, -artists, and musicians, a desperado! You will smile at this--no, I -think you will feel for the man, educated and reared as a gentleman, -now the mate of vulgar ruffians and country bumpkins.” - -It is evident there was no change in him. He was just as much a -selfish, coxcombical charlatan as when, fifteen years before, he wrote -in one of his art papers of “exchanging our smart, tight-waisted, -stiff-collared coat for an easy chintz gown with pink ribbons;” when -he touched so lightly but luxuriantly on “our muse or maid-servant, -a good-natured Venetian-shaped girl,” and of “our complacent -consideration of our rather elegant figure, as seen in a large glass -placed opposite our chimney mirror.” Others might be ashamed of -self-idolatry; he gloried in it. Such was his description of himself; -and who that has read it will ever forget that other description of -him as exemplified by Gabriel Varney? “Pale, abject, cowering, all the -bravery rent from his garb, all the gay insolence vanished from his -brow, can that hollow-eyed, haggard wretch, be the same man whose -senses opened on every joy, whose nerves mocked at every peril?”[21] - -The career of Wainwright is instructive. From the time that he quitted -the simple rule of right, he wandered over the world under influences -too fearful to detail, and he died in a hospital at Sydney under -circumstances too painful to be recapitulated. - -From 1825 to 1835, there was a huge outcry against all the new offices, -principally, however, raised by the old companies, who seemed to claim -a patent right of preservation. They forgot that competition is the -very soul of business, and mourned greatly as every new office made -its appearance, although by 1835 only fourteen more were established. -The following fraud was held in the light of a providence, and has -long been quoted by them, though few are aware of the many remarkable -circumstances in connection with the infamous “Independent and West -Middlesex:”-- - -An old man, between sixty and seventy, ignorant, uneducated, and in -want; who had been at one time a smuggler, and at another a journeyman -shoemaker, thought, in the year 1836, that the best mode of supplying -his necessities would be to open an office for the receipt of moneys -in exchange for the sale of annuities. The plan was notable, but -required assistance, and a coadjutor worthy his friendship was soon -found in one William Hole, a tallow-chandler, a smuggler, a footman, -and a bankrupt. These friends at once confederated together, and -found no great difficulty in their way. The chief capital demanded -by such an undertaking on the part of the proprietor, was unbounded -impudence; and on that of the public, unbounded credulity. Having -joined their purses to produce a prospectus, and having taken an office -in what Theodore Hooke called “the respectable neighbourhood” of Baker -Street, Portman Square, their next plan was to concoct a directory -of gentlemen who, while they attracted public attention and seemed -a pledge for the respectability of the company, should yet mislead -those who were not familiar with the financial world. This was an -easy task, and in due time the most honourable names in London were -openly published as managers of the “INDEPENDENT AND WEST MIDDLESEX -FIRE AND LIFE INSURANCE COMPANY.” Trusting to the faith of people in -great mercantile firms, there was scarcely a banker, a brewer, or -a merchant whose patronymic, with different initials, was not used -by these ex-smugglers to forward their views. Drummonds, Perkins, -Smith, Price, and Lloyd were all produced as fancy directors, to adorn -one of the most impudent prospectuses which was ever composed. They -then turned their attention to the working men of the establishment, -and Mr. Hole having a brother-in-law named Taylor[22], sufficiently -respectable to be a journeyman bell-hanger, sought him out, saying -“he was going to make a gentleman of him,” undertaking to pay him 100 -guineas yearly, provided he attended the board when it was required, -and did not “get drunk or behave disorderly.” Finding some difficulty -in procuring a sufficient number, and being applied to by a William -Wilson for a menial situation, they at once advanced him to the post -of director, paying the liberal sum of five shillings weekly. A boy of -sixteen, who went on errands, who signed annuity deeds for thousands, -or who swept the floors, was also appointed to a similar post; while -the gentleman who undertook the onerous position of auditor, was also -porter in general to this respectable establishment. On board days -they were told to dress in their “Sunday’s best,” to place brooches in -their dirty shirts, and rings on their clumsy fingers; the huge fine -of half-a-crown being inflicted, should they appear in the native -simplicity of their work-a-day attire; and it is no unremarkable -feature of this establishment, that Taylor duly, on board days, left -his master the bell-hanger to go to his master the director, to sign -the deeds which duped the public. Their next requirement was a banker; -and none other was good enough save the Bank of England, which was -added to the list of attractions of this commercial bill of the play. - -Everything thus prepared, they turned their attention to statistics; -and here again there was no great obstacle. In order to procure -business, it was necessary to offer tempting terms, so they liberally -proposed to serve the public 30 per cent. lower than any other office, -although with all the existing competition the greatest difference -hitherto had been but from 1 to 1-1/2 per cent.; and in addition to -this, these bad men committed the glaring impudence of granting life -assurances for much smaller premiums, and selling annuities on much -lower terms than any one else; terms so palpably wrong that a man of 30 -by paying 1000_l._ could obtain a life annuity of 80_l._, and by paying -17_l._ 10_s._ of this to insure his life, could receive 6-1/4 per cent. -for his money and secure his capital to his successors.[23] - -Having thus arranged preliminaries, they opened their office and -commenced business. They had the precaution to select respectable -agents, and by giving 25 per cent. where other companies only gave 5 -per cent., stimulated them to say all they could in their favour. The -terms were very attractive; there is always a large ignorant class -ready and willing to be duped; and the business went on swimmingly. If -a man wanted to insure his life, there was no great difficulty about -his health. If another wished to purchase an annuity, they were quite -willing to dispense with baptismal certificates in London, Dublin, -Edinburgh, and Glasgow; large and handsome offices were opened, and -the public induced to play its part in this most serious drama of -real life. The poor and less intelligent portion of the community, -lured by terms which had never before tempted them, took their spare -cash and invested it in the West Middlesex. Rich men were not less -dazzled by the golden promises; and one, disposed to sink a large sum -in so profitable a concern, desired his solicitor to inquire about its -solidity. The solicitor went to the manager, and questioned him as -to the directors and the capital. Knowles at once said the directors -were not the men whose names they took, nor was the capital so much -as a million. But the former, he vowed, were respectable men, and the -latter was quite enough for their purpose. As, however, he declined -to give the residences of the directors, or to say where the capital -was invested, the solicitor also declined to risk the money of his -client. The success, however, which they experienced in other cases, -justified their daring. One person who had toiled, and worked, and -grown prematurely old in the service of Mammon, invested his all in the -purchase of an annuity, and in order to secure the capital, insured his -life. In two years he was a beggar. A family which with great industry, -and by doing without a servant for forty years, had saved enough to -retire from business, placed the principal portion with the West -Middlesex, in time to be informed that the directors had absconded. A -governess who had been left a small property, and bought a deferred -annuity with the proceeds, died of a low fever soon after the bubble -burst. Half-pay captains, clergymen, servants, tradesmen, all came with -their spare cash to get 6-1/4 per cent. and secure their capital. - -From remote districts where their prospectuses had been circulated, -money came pouring in. Any one who chooses to refer to the current -literature of that time, will perceive that these fellows availed -themselves of every vehicle to make their claims public. The daily and -weekly papers, the monthly and quarterly journals, all bear testimony -to their zeal in the shape of shameless advertisements, and the walls -of provincial towns absolutely blazed with their attractive terms. - -The money thus obtained was liberally spent. The promoters kept -carriage-horses and saddle-horses; servants in gorgeous liveries -waited on them; they fared, like Dives, sumptuously every day. One -of the directors lived in the house in Baker Street, and being of a -convivial character, astonished that quiet street with gay parties, -lighted rooms, musical _soirées_, and expensive dinners. His wine was -rare and _recherché_, his cook was sufficiently good for his guests, -and he found himself surrounded by the first people of this lively -locality. But there were very dark rumours afloat, which should have -made men hesitate before they gave this fellow their countenance. By -1839, there was a general feeling that there was something wrong; Mr. -Barber Beaumont wrote a letter to the “Times” about it; and had it not -been for the wonderful boldness of the adventurers, they must have -broken up long before. It was known that they had thrown a difficulty -in the way of paying some annuities in the country; and that, without -any justice, they had refused to discharge a fire insurance which had -become due. Still what is every one’s business is nobody’s business, -and they had hedged themselves with such a conventional respectability, -they looked so grave, they talked so properly, and they gave such good -dinners, that it was long before they were compelled to yield. So great -was their _prestige_, that though one of their victims came fierce -and furious, and bearded them in their own house, and before the very -faces of their friends--though he told the party assembled that he was -swindled, and their hosts were the swindlers,--it produced no effect, -and he was absolutely obliged to leave the place for fear of personal -violence. In addition to the dinners which they gave their friends, -they had small pleasant parties of their own, with toasts sardonically -applicable to themselves, the first standing sentiment being in -mocking, reckless contempt,-- - - “An honest man’s the noblest work of God!” - -The unpleasant rumours continuing to spread very rapidly, it became -desirable to procure a director with something like respectability -attached to his name; so Mr. Knowles wrote to Sir John Rae Reid, -Governor of the Bank of England, stating, that as he was a native of -Dover he could assist Sir John with his constituents, provided that -gentleman would give his name as director to the falling establishment. -The only reply was a contemptuous refusal, and an unceremonious request -that Mr. Knowles would withdraw the accounts of the West Middlesex from -the custody of the Bank. - -In the mean time the established institutions looked on in wonder, -asking themselves when this bold violation of probity would cease. It -was certain that, so long as the new office could procure money from -the public, they would continue to do so. There was no law, indeed, -which could touch them; and when some of their victims hesitated at -continuing their payments, the following specious letter was written by -the agent whom the gang at Baker Street had found means to blind:-- - -“I have been to London purposely to examine the affairs of this -society, and I can assure you the reports issued against them are -wholly without foundation; the principal part of them are gentlemen -living on their own property. The following is the result of my -investigation, which must surely satisfy the mind of any person as -to their respectability:--63,000_l._ in the Bank of England to meet -emergencies; 160,000_l._ on mortgage property in London, at 7 per cent. -and 8 per cent.; 40,000_l._ on reversionary property; 120,000_l._ -on different funded securities; 3000_l._ in the Bank of Scotland; -30,000_l._ on mortgage security in that country; 3000_l._ in the Bank -of Ireland; 10,000_l._ on landed security in that country; and their -paid-up capital is 375,000_l._” - -But even this brilliant array of securities failed at last in its -effect, and it was left to the shrewdness and daring of a Scottish -gentleman to encounter single-handed, this most unprincipled -combination. Among those who had entered into transactions with the -Glasgow branch was Mr. Peter Mackenzie, editor of the “Scottish -Reformers’ Gazette,” whose attention became naturally drawn to a -question which involved the happiness or misery of a great number of -his countrymen; and as the opinion of Sir John Reid had been very -mendaciously quoted in favour of the West Middlesex, Mr. Mackenzie -addressed him to ascertain the truth of this assertion; in reply to -which the Governor of the Bank stated, “I know nothing of the parties -in question, and I consider it highly improper that any reference -should be made to me on the subject.” This was decided enough; and as -Mr. Mackenzie was doubtful whether the Independent and West Middlesex -had not grown out of a similar company under another name, which had -advertised the duke of Wellington as a patron, he wrote to his grace, -receiving the straightforward reply, “that the duke did not doubt a -gang of swindlers had advertised his name as patron, that the same or -another gang had played a similar trick in Southwark, and that Mr. -Mackenzie was authorised to state to the public that the duke had not -sanctioned the publication of his name in that or any other similar -association.” - -Although the company had so long a list of directors, Mr. Mackenzie -observed that the policies were always signed by the same three -individuals, that no designations or addresses were annexed to -the names, and that there was an accumulation of functions in the -respective office-bearers, quite unusual. He then determined, believing -that the company was radically wrong, to discharge his duties at all -risks. And most manfully did he perform that determination. In March, -1839, under the head of “EXPOSURE,”[24] he inserted an article in his -“Reformers’ Gazette;” and it is hardly possible to exaggerate the -sensation which the exposure produced in Glasgow. Men of all parties -congratulated him on his fearless attack; the people who were assured -in the West Middlesex ran wildly to the office, where they were -told, “that the reasonableness and moderation with which they had -done business had been the cause of great jealousy and offence, and -had brought down on them a variety of assertions of the most false, -calumnious, and slanderous character.” - -They threatened Mr. Mackenzie with the terror of the law; but on the -9th March that gentleman again attacked them, asking, “Will the mere -statement of a parcel of swindlers in their own favour secure for them -public confidence, when it has been directly and specially assailed?” - -The more they were attacked, however, the more they advertised. All -the London and provincial papers were employed to spread their terms, -and 2000_l._ were placed in the hands of their law agent to ruin, if -possible, Mr. Peter Mackenzie. Undauntedly, however, did he continue -week after week to attack them; and it is impossible not to admire -the mingled gallantry and audacity with which they defended outpost -and citadel. Though they lost one action they had brought against Mr. -Mackenzie, they commenced another, declaring that their terms were fair -and liberal, that the public could insure with them at favourable rates -to themselves and reasonable profit to the company, “and, above all, -that Mr. Mackenzie was false, calumnious, and slanderous.” - -The position in which they were placed was curious enough. It was -plain that a most disgraceful fraud was in existence; but while no act -of insolvency was committed, the law could not interfere. There was, -indeed, no way of stopping them; and it was evident that they would -only cease business when the public ceased to pay its money. While -they discharged the annuities as they became due, and paid the life or -fire policies which fell in, they were utterly uncontrollable, save by -the moral power of the press. This power, so far as Mr. Mackenzie was -concerned, was most unsparingly used; but he availed himself of another -weapon. The name of Peter Mackenzie is rarely mentioned in England in -connection with this company, that of Sir Peter Laurie and the West -Middlesex being always associated; and this is owing to the fact that, -not content with the powerful articles in his paper, he sent a letter, -with the report of the trial, to Sir Peter, to inform him that “the -company called the West Middlesex was a company of swindlers,” begging -him to use his influence as chief magistrate of the city of London, to -stop this crying iniquity. Sir Peter went to the Bank of England, and -inquired if they knew anything of the company. “Yes,” was the reply, -“they are the greatest swindlers that ever existed in London.” “On -this hint he spake;” and from his seat at the Mansion House the “first -Scotch Lord Mayor” let all England know that the Independent and West -Middlesex Insurance Company was a sham, and that Sir Peter was going to -put it down. The declarations he openly made, and the information he -procured, produced an enormous number of letters from the victims. The -company became a theme of public conversation--the assurance offices -rejoiced at the discovery of their rival’s infamy--and those who were -insured were rudely startled from their dream of security. - -In the mean time, Mr. Mackenzie pressed them closely in Glasgow. He -defied them and the damages they sought to obtain. There was no word -too bad to give them--no assertion which had its foundation in truth, -which he was not bold enough to publish. Actions involving damages -to the extent of 20,000_l._ were brought against him in vain--he was -indomitable in determination and invincible in spirit. Week after week -he poured forth the vials of his wrath; and it is scarcely possible -to say how much longer he must have continued his attacks, had not -intestine strife assisted his endeavours. The worthy Mr. Knowles and -the excellent Mr. Hole quarrelled, and the latter wrote the following -elegant epistle to his coadjutor:-- - - “KNOWLES,-- - - “Thou art a scoundrel, and thy son no better. I shall print and - publish all the by-laws and proceedings which relate to any - transactions which I had with the company, and expose your villainy - to Mackenzie and others; and I give you and your lying rascal of a - ---- notice, that if you or he should dare to publish any slander - relative to my character, I shall instruct my solicitor to prosecute - you, you d--d perjured scoundrel!--you base wretch! Swear against - your own hand-writing! What! swear you never borrowed any money of - me for the office! O wicked wretch! I have your signature, and my - solicitor has seen it. Base! base! base! Hang thyself, with thy - friend Williams. - - “Truth, - - “WILLIAM HOLE.” - -Another letter of this gentleman concluded in the following -manner:--“Whoever said I had more than this is a liar; and like unto -Peter, who denied his Master, and afterwards went and wept; or, like -unto Judas, who betrayed his Master, and went afterwards and hanged -himself. All that I have said or written I can prove.” - -By this time it became pretty clear that the career of the Independent -and West Middlesex was run; the valuables were removed from Baker -Street; two waggons were necessary to remove the wine only; and -the bubble burst. The loss sustained by the public is difficult -to estimate. The confederates boasted of taking 40,000_l._ in one -year; and it is probable that from 200,000_l._ to 250,000_l._ is -no exaggeration. But whatever the pecuniary loss, the moral effect -was much worse. It would be impossible to enumerate the examples of -sorrow and suffering which ensued; yet it is equally painful to think -that the cause of insurance was considerably injured. Some degree -of blame rests with the other offices. They knew--they could even -have demonstrated--that an institution charging such low premiums on -assurances, and allowing such large sums as annuities, must fail; that -it was a mathematical impossibility that it would answer; and when they -found, in addition, that Hole offered their agents half the year’s -premiums as commission, it was a “confirmation strong as proof of Holy -Writ.” Had they applied, like Mr. Mackenzie, to the Lord Mayor, it -would have been stopped in its outset, and many excellent people saved -from ruin. Had he not opened the eyes of the public, there is no saying -to what extent they might have carried their transactions; for though -Sir Peter Laurie indisputably aided him, it is equally true that Mr. -Mackenzie lost 1300_l._ by his exposure of the “Independent and West -Middlesex Life and Fire Insurance Company.” - -The death of Mr. Beaumont, in 1841, recalls the name of one who, for -nearly half a century, was a very noticeable man. But though for the -last thirty years of his life he controlled the movements of a large -fire and life assurance office, he was not rendered narrow-minded by -his devotion to business; nor will a brief review of his career be -unacceptable to those who remember his name as one of the earliest -apostles of life assurance. - -John Thomas Barber Beaumont, more familiarly known as Barber Beaumont, -was born in 1773. As a youth he was devoted to historic painting, the -talent which he evinced being recognised both by the Royal Academy -and by the Society of Arts, from each of which he won the medals -awarded to excellence in their several departments. He soon, however, -abandoned historical for miniature painting, where again his ability -was acknowledged by his appointment to the post of portrait painter -to the dukes of York and Kent. His connection with royalty probably -stimulated him to raise a rifle corps in defence of England, when the -first Bonaparte threatened invasion. Like all which he undertook, he -gave his heart and soul to it. He published a couple of pamphlets, the -first “by Captain Barber,” and the second anonymously. He recommended -that the people should be armed as sharpshooters and pikemen, and -pointed out the special advantage of the invaded over the invaders; -and so devoted was he to the cause, that he established a paper--the -“Weekly Register”--to stimulate the exertions of others by recording -his own. The corps of which he was captain became an evidence of his -personal zeal. In a trial of skill between the various regiments he -won the first prize; and so satisfied was he of the efficiency of his -men that, on one occasion, in Hyde Park, he held the target while the -entire corps, one after the other, discharged their rifles into the -bull’s eye at the distance of 150 yards. In his hatred of the French -emperor, in his love of boxing, and his belief in Queen Caroline, he -was a “distinguished Englishman.” These were three articles of faith of -that day, and he believed in all. - -In 1806, Mr. Beaumont found his true vocation; and the active spirit -which had distinguished itself in painting and in defending his -country, in abusing Bonaparte and lauding our “injured Queen,” turned -its attention to the poor. In conjunction with the County Fire and -Provident Life Offices, he attempted to establish an association for -the working man. Though this did not succeed, it was not for want of -devotion. In every part of the country, agents explained its benefits. -Many thousand pamphlets were distributed, but the artisan and labourer -could not be induced to join it. - -The mind of this class was less cultivated and less cared for then than -now, and wherever they got high wages, they spent them recklessly. -They regarded the workhouse as their natural refuge, and claimed its -privileges as their inalienable birthright. We owe the presentation -of many facts concerning them to Mr. Beaumont, who after ten years’ -trial, finding that his association failed in its purpose, interested -the inhabitants of Covent Garden and the neighbourhood, in the -establishment of a savings bank. To compass this he presided at various -public meetings, where he spoke with much energy, addressing the -poorer class in an easy familiar tone, and speaking to them as only -one who understood their wants could have spoken. He necessarily won -their confidence by his zeal, and all which he wrote on the subject -evinces a spirit of benevolence, being evidently the production of an -acute and energetic mind. He was the first to point out the various -objections to benefit societies, and his exertions in the cause of -savings banks, though now almost forgotten, were productive of good; -nor is it too much to add, that habits of industry and frugality were -excited, or that the happiness of the working class was increased by -his exertions. That which has hitherto been related of Mr. Beaumont was -but the result of his leisure hours; for he was the originator of an -office, to the service of which he gave the principal part of his time, -and in which he found his reward. There was, indeed, something very -significant in his resolute, earnest spirit, and there must, too, have -been something very honest in the man; for in the outset of his own pet -office, when the members were excited by success, he told them that -the early accounts were not to be relied on, that they were flattering -from the nature of the business, and that they showed more success at -the beginning than the future would confirm. He was an open foe to -all fraudulent offices, and did all he could to stay the progress of -the concocters of the West Middlesex. He called attention to their -proceedings in the “Times;” he proved that the enormous commission -they offered, argued a foregone conclusion of swindling; he attacked -them in a Scotch paper, and drew their wrath upon him, in the shape -of an action for damages, which cost him 100_l._, and for which an -additional claim of 600_l._ was made on his executor. - -Unlike many business men, he had both taste and talent for literature. -He wrote a tour in South Wales, and he has given us a very instructive -work on Buenos Ayres, in the colonisation of which he was interested. -The pamphlets he published are principally on social subjects, and -time has confirmed the opinions he expressed. The people and their -requirements seemed his special care, and he appears to have borne in -mind the Divine commission “the poor always ye have with you.” Besides -a close attention to their physical wants, he originated a literary -institution; for he had received too much solace from art, science, -and literature himself, not to spread its moral and mental advantages -among those in whose cause he laboured. Nothing could exceed the ardour -he evinced, or the fatigue he underwent, in carrying out his plan. “He -was on the spot at all times, and in all weathers. His attention was -indefatigable and his vigilance excessive. He paid little regard to -meat, or drink, or sleep; and the consciousness that he was about to -effect a great and lasting good inspired him with augmented energy in -the midst of waning health and a decaying frame.” - -At length the sword wore out the scabbard. For thirty years he had been -subject to an incurable asthmatic malady, and for the last ten years -of his life he had never been free from daily and nightly paroxysms -of pain. A long time prior to his death he, in a somewhat eccentric -spirit, ordered a coffin of beautiful oak to be made, and to undergo -the process which would save it from dry rot; this was kept at the -undertaker’s, where he often philosophically went to contemplate the -future depository of his remains. Not satisfied with the good he had -effected in his life, he left at his death 13,000_l._ to maintain the -institution which he had founded. He was buried in his own cemetery; -and there are many wealthy men who may take a lesson from Barber -Beaumont in the employment of their riches, and many poor men who may -copy his unceasing industry, prudence, and perseverance. - -Some allusion to the baneful career of the cholera, fortunately more -rare in its visits than the old plague, will not be out of place in a -volume, the basis of which is the mortality of the people. Although -from 1832, when it made its second appearance in England[25], various -rumours had been spread of its approach, it was not until 1849 that it -came again to this country in all its terrible reality. The appalling -disease of that year will not be readily forgotten; for it spared -neither the rich in his mansion, nor the poor in his hovel. It smote -the physician who attempted its cure, and it struck down the priest who -supplicated its departure. It was not, however, indiscriminate in its -attacks; for wherever a squalid population hedged in the lofty terrace -or the aristocratic square, it spread from the meagre workman to his -healthy fellow-citizen. The business of most life-assurance offices -increased with rapidity. Some of them were besieged with applicants. -Men saw their neighbours’ houses closed, and feared that a similar -symbol might soon mark their own. They ran, therefore, while there -was yet time, to do that which they should have done before; and so -great was the influx, that it is doubtful had this new form of plague -lasted in all its intensity, whether some of the companies would not -have shared the panic and shut their doors. It was scarcely possible -to see house after house bearing the signs of mourning, without an -indefinite future pressing its claims; and when it was found that, -in several cases, insurance was followed by rapid death, they who -knew little or nothing of the doctrine of chances, suggested that for -a period the offices should be closed; and as life after life was -insured and fell, and as day by day the gloom of the City increased, -it was even agitated by those who should have been better informed. -But the companies maintained their calling; though then, if ever, they -should have mooted, whether those who insured their lives, and went -to reside among ill-constructed sewers, foul gully holes, and teeming -cesspools, should not have paid a higher premium than those who went -to ventilated houses, breezy suburbs, and well built districts. This -point seems completely lost sight of. Every inquiry is made concerning -gout, asthma, and consumption; but no question is put concerning the -health of a locality. A man determined to commit suicide, and not -void his policy, may as surely effect his purpose as if he visibly -destroyed himself; for wherever scarlet or typhus fever rages, there -may he reside without question. “Whoever has insured his life,” -remarks Mr. Dickens, “may live over a cesspool. He who has taken out a -policy, is not called to give notice of his intention, though he may -purpose removing to some quarter of the town, in which his house may -be ill-ventilated, his neighbourhood confined, his drainage in a state -of horrible neglect. There was a case in point, that attracted public -notice some little time ago. A gentleman, aged thirty-one, in excellent -health, assured his life for a 1000_l._ Having paid only three annual -premiums, he removed to a sickly spot in the Bethnal Green Road, and -died of typhus fever after a few days’ illness.” - -These ideas are gaining ground. Mr. Austin first started them, and Mr. -Dickens has reproduced them. They arose during the fatal sickness just -alluded to, and are certainly not unworthy the consideration of all who -are interested on the subject. - -A new plan, now known as the half-credit system, was first introduced -in 1834, by the United Kingdom Life Assurance Company; and although -strongly opposed at its commencement, has since been very generally -adopted. By this system a person aged 30, whose annual premium for -insuring 1000_l._ would be 21_l._ 18_s._ 4_d._, may insure 2000_l._ by -paying the same premium annually for five years, after which 43_l._ -16_s._ 8_d._ would be required. This would leave 109_l._ 11_s._ 8_d._, -including interest, to be paid off at his convenience, or to be -deducted at his death; but should he die within the first five years, -his family would receive 2000_l._ instead of the 1000_l._ they would -have received under the old system. - -FOOTNOTES: - -[20] It is difficult to avoid blaming the offices. These large and -varied insurances were, probably, known to every company in existence. -The reasons assigned should have been tested, and very little trouble -would have shut the door of every office in London on Wainwright and -his companions. For so much money to be risked on the life of a girl -of twenty-one, described as “remarkably healthy, whose life was one -of a thousand,” and that too for only two years, merely because a -nominal plea of insurable interest was given, was neglectful and almost -culpable; although there is some extenuation in the fact that this lady -assisted to deceive by uttering, or at least coinciding in a false -statement to Mr. Ingall, at the Imperial, is certain. The slightest -inquiry would have discovered that Wainwright was a beggar, that this -young lady had no direct or indirect interest in any property whatever, -and that the premiums must have been paid with some sinister purpose by -a man steeped in difficulties and overwhelmed with debt, on the life of -a healthy but most unhappy girl, entirely under his control. - -[21] “Lucretia.”--By Sir E. B. Lytton. - -[22] This man appears to have been an innocent tool in the hands of his -acute brother-in-law. - -[23] This was first pointed out by the Quarterly Review. - -[24] The following form extracts from the above articles of Mr. -Mackenzie:--“Some time ago there was sent to this office a series -of advertisements in favour of the Independent and West Middlesex -Insurance Company, which were entered and paid for in the regular -course of business. We are cautious about quack medical advertisements, -none of them that we are aware has ever been admitted into our columns; -but it never entered into our heads for one moment, that an insurance -company professing to be incorporated by special acts of parliament, -was in truth a quack company, got up for the premeditated purpose -of imposing on the public in matters of fire and life. Hence the -advertisements of this company glided through our columns from time -to time to time.... But we were astonished lately to learn that this -was a spurious insurance company hatched in London two years ago.” -“Under these circumstances, our duty, we humbly conceive, is at once -plain and decisive, and therefore we proceed to discharge it for the -sake of the public, whose faithful and unflinching servants we at all -times profess to be. In a word, we raise our voice and warn the public -against this Independent West Middlesex Insurance Company. It is a -false and fictitious company.” “In their polices of insurance they take -care to provide that ‘the capital stock and funds of the said company -shall alone be answerable to the demands thereupon under this policy.’ -Why, what is the value of their capital stock and funds, if as we say -the parties themselves forming the said company are utterly worthless, -being in fact no better than a parcel of tricksters in London, -disowned, or repudiated, or condemned by every respectable person to -whom reference is made? There can scarcely, we think, be anything so -base or so nefarious as taking premiums from unsuspecting people, and -making them believe they are secured against the contingencies of life, -or the risk of fire, and yet mocking them in their calamities when the -bubble bursts.” - -[25] The cholera first visited England about the beginning of August -1348. From the seaport towns on the coasts of Dorsetshire, Devonshire, -and Somersetshire, it ran to Bristol, and the men of Gloucester -established a quarantine between the two places. But this “familiar -fury” mocked then as now at the quarantine, and walking in darkness -appeared in Gloucestershire to the horror of its inhabitants. From -thence it passed by way of Oxford to London, finally spreading all over -England, “scattering everywhere such ruin and desolation that of all -sorts hardly the tenth person was left alive.” - -In the church and churchyard of Yarmouth, 7052 were buried in one year. -Within six months, in the city of Norwich more than 57,000 died. In -London, death was so outrageously cruel that every day saw twenty, -sometimes forty, and sometimes sixty or more dead bodies flung into -one pit. The churchyards became crowded. Fields and additional places -of burial were set apart, and these soon failed to suffice; the number -of the dead increasing so rapidly that “they were fain to make deep -ditches and pits very broad, wherein they laid a range of carcasses and -a range of earth upon them, and then another range of dead bodies,” and -in this manner the people, except those of the better sort, were placed -in their long home. The cattle died in hedges and ditches by thousands -for want of men to attend them. All suits and pleadings in the King’s -Bench and other places ceased. The sessions of parliament were stopped. -England and France forgot for a time that they were “natural enemies.” -County, city, and town witnessed solemn prayers and public processions -for days together, and God was implored in highway and in byway to -“sheath his angry sword and preserve the residue from the devouring -pestilence.” When this pestilence which yet yearly threatens our coast -had passed away, it was found that its prey had been chiefly old men, -women, and children of the “common sort of people,” and that but few -of the nobility of the land had been seized by it. Property was for -a long period depreciated: that which was previously sold for forty -shillings, only fetched a mark; and the Scots in scorn invented a new -oath, swearing in contempt “by the foul deaths of the English.” - - - - -CHAP. XIV. - - SELECT COMMITTEE OF 1841.--INSTANCES OF DECEPTION.--PUBLICATION - OF ACCOUNTS.--NEW COMPANIES--ASSERTIONS ABOUT THEM--THEIR - IMPORTANCE--SUGGESTIONS CONCERNING THEM. - - -A select committee was appointed in 1841 to consider the laws relating -to joint stock companies. It concluded its labours in 1843. There was -an evident want of amendment in these laws. For about fifteen years -prior to 1840, the world had been at the mercy of any one who chose to -publish an advertisement, call himself a company, and receive money -for assurances and annuities. Vast sums had been obtained, therefore, -by daring adventurers of the Montagu Tigg school, who launched with -avidity into this branch of business. Besides the loss by the West -Middlesex, nearly half a million sterling had passed from the pockets -of the public to those of projectors; and the following instances will -prove that government were not called upon to interfere without a sad -necessity:-- - -A family of swindlers founded an office. One of them changed his name, -called himself trustee, and acted as chief manager. Who would believe -that this man, without character and without money, induced several -members of parliament to become directors? because “they thought they -were doing a kindness to the promoter;” allowing their names to be used -as lures to a concern whose shareholders, when it broke up, were found -to be “minors, married women, labourers, and small tradesmen.” - -In a second office, an uncertificated bankrupt, its promoter, appointed -himself resident manager. Insurances and annuities to a considerable -extent were effected, and then the company, consisting of eleven -shareholders and directors united, vanished, and, “like the baseless -fabric of a vision, left not a wreck behind.” - -In another which had been established many years, great names were -at its head, and great business was done. But whether the terms were -not high enough, or the management was bad, it proved a failure. An -extraordinary career was that of the chief manager. Thinking, probably, -to recover himself, he had speculated in newspapers; he had established -a society in connection with natural history; he called the queen -dowager his patron, and had been honoured by a visit from majesty. -As some of these could scarcely be called sound investments for an -annuity society, he was unfortunately compelled to leave off paying the -unhappy annuitants. - -These special cases arose from want of sufficient control. On inquiry -it was discovered that the names of persons who had no existence had -been used in some cases, and the names of persons of substance, without -their permission, in others. That false statements of authority--that -fraudulent prospectuses--that tempting rates of commission--banking -accounts with the Bank of England--and, above all, advertisements -appealing to the cupidity of the public,--had always proved successful. - -Owing to the information elicited by the committee, it was deemed -necessary to recommend that any future company should be provisionally -registered, stating every particular of its purpose, its promoters, its -directors, its subscribers; and that a complete registration should be -accompanied by a copy of its prospectus, its deed of settlement, its -amount of capital, its number of shares, the names and residences of -the shareholders, the officers of the company, and a written acceptance -of office. These recommendations were carried out by 7 & 8 Vict. c. -110.; but time has proved that the act has scarcely been successful, -even in mitigating the evils it was meant to prevent. “Arguing from the -experience of the present law,” says the “Morning Chronicle,” “during -the past eight years, it does not appear that its effect has been in -any way to restrain the formation of unsound insurance companies;” and -in one respect it assisted them, as it gave the promoters the power -of quoting a special act of parliament in their favour, thus adding a -spurious stability to their character. In seven years from the working -of the new act the number of projected companies averaged three and -a half per month; the number actually opened, two every month, while -about fourteen yearly were compelled to close their operations. It may -be supposed that the old offices were somewhat surprised as project -after project, each proclaiming its principle to be the very essence -of life assurance, was registered. They made, however, a great show of -business. Their annual reports were startling to the ears of staid, -methodical gentlemen of the old school, who, seeing that their own -policies had not increased with the population, thought, when new -companies declared huge profits and boasted augmented policies, that -the world was coming to an end. The assumptions of some of these new -offices were audacious enough; one actuary asserting that a company -might spend all their premiums and great part of their capital, and -be perfectly solvent. The first year’s business of a society which -started at this period produced 3300_l._; a large sum undoubtedly, -but the first year’s expenses were 3000_l._ out of it. The business -of the second year produced 2000_l._; but all the money paid by the -policy holders was spent, with 15 per cent. of the capital in addition. -Rumours like these--exaggerated perhaps by the terrors of those of the -_ancien régime_--soon spread about, and there was a growing disposition -in the public to regard new offices with suspicion. Of about forty -which had been annually projected from 1844 to 1851, many had given up -the ghost; and though the policies in some cases were transferred to -other offices, yet in those which were not so fortunate there must have -been great evil. For some years a cloud had been gathering; but when -Mr. Labouchere moved that the accounts of the various offices should be -printed, and when, in their naked attire and without the opportunity of -re-arranging them, they were presented to the House, they seemed so at -variance with the boasted success of many, that the public, aided by -the old offices, grew frightened at the picture which Mr. Labouchere -had conjured. - -This, however, produced no very apparent results in checking the -formation of others; but the letter of Mr. Christie[26] to the -President of the Board of Trade, together with various leading articles -in the morning papers, in which the Chronicle took the lead, aroused -a spirit of mischief in those who thought themselves aggrieved. “The -object I have in view,” says Mr. Christie, “is a thorough scrutiny -and investigation into the affairs and responsibility of every life -and annuity institution in the United Kingdom, with a view to such -enactments as shall protect extensive public interests from the -alarming prospective evils of fraud and of ignorance.” - -There does not appear in this profession sufficient reason for the -torrent of pamphlets which appeared, because all offices engaged in -similar business to that of Mr. Christie should possess a similar -desire. Such, however, was the fact, and when the morning papers -unmasked their battery, the fun grew “fast and furious.” Nothing can -be more desirable than that the balance-sheets of these companies -should be clear and uniform; and it seems reasonable that all offices -should so express their returns. But it should not be forgotten that -these accounts were furnished without any idea of publication. Each -institution sent its statement according to the notion of its actuary; -and as actuaries, like doctors, disagree, not only was there no attempt -to make one balance-sheet resemble another, but the very principle -differed on which they founded their valuations. It was, therefore, -not the fault of the actuary, but of the act itself, in not demanding -uniformity, that they appeared in so many and such varied forms--that -they at once produced suspicion, and that they have made the word -“insolvent” commonly used with regard to these new institutions. But -insolvency is a very awkward term, particularly when applied to a life -assurance office. There is scarcely a banker in existence to whom the -same term might not be applied on almost the same principle, for there -is not one ready to pay all his balances on instant demand. But the -banker knows his contingencies as life assurance offices know theirs; -and to that extent only are both prepared to pay. Both are liable to -runs on them; the latter during an epoch in the public health, the -former during an era in the money market. Being, therefore, a question -of contingency with the new mutual office, we must remember, in -fairness, that it was the same with the old; and that, had they been -compelled to publish their balance-sheets when they commenced, very -unpleasant remarks might have been made as to contingencies.[27] - -While this subject was being agitated, some awkward cases arose to -startle the mercantile world and depress the feeling of security -so necessary to the perfect fruition of assurance. Several -companies--founded by authority of the Joint-stock Registration -Act--had arisen and fallen to the ground. One deed of settlement after -another had been proved to be as worthless in effect as that of the -West Middlesex. One series of promoters after another had published -elaborate prospectuses, and failed to meet their liabilities. The -directors of these had been from that class which supplied Quirk, -Gammon, and Snap with their business, and the managers had arisen among -those whose names had graced the bankrupt list, or been arraigned at -the Old Bailey. The following will prove that the law, since 1845, any -more than prior to it, has not been effective, and that it is as easy -to establish fraudulent companies now as it was before the passing of -the act. One director had been keeper of a gaming-house. Another, -calling himself a knight, acted as travelling commission agent. A list -of shareholders, which was published for the benefit of the public, -proved that, though one was a holder of no less than 20,000 shares, the -locality assigned to him was ignorant of his whereabouts. Two others -had been bankrupt, another had been insolvent, others were clerks to -the company, one declared his name had been forged, while another had -been dead for many years. The institution had been enormously puffed, -and the result was that many insurances were effected. But when it -became known[28] that a proprietor of 2000 shares in the company was -also a petitioner in the Insolvent Debtors’ Court, and that at the -very time he was advertised as a proprietor of these shares he had -hardly a coat to his back, the premiums became less. In this awkward -position the claims for losses were met by credit notes at fifty-three -days’ date, which of course were duly dishonoured, and, as a natural -consequence, the company was heard of no more. The following will tend -to satisfy the reader that no exaggeration has been used. “I have,” -says Mr. Hartnoll, “from among the worst cases of assurance companies -brought into existence under the facilities for forming such companies -by the Registration Act, exhibited to you the history of one whose -robberies amounted to 60,000_l._ I have dissected another of these -companies, composed of a low set of vagabonds, whose signatures as -shareholders were procured at a pot-house for pints of beer. I have -given you the name of a third, whose secretary was brought, most -wrongfully according to the verdict, to the bar of the Old Bailey, on -a charge of conspiring to obtain money under false pretences; and of a -fourth whose manager is a mendicant, and whose secretary is a fellow -who ought to become one, in order to prevent his becoming something -worse, I have from the middle class of these companies referred to -one, winding up in Chancery, having ‘fictitious names of subscribers -to the deed,’ and from the purer class of new companies, from no -invidious selection, but almost by compulsion, under public challenge -from parties officially connected with two offices. I have analysed the -accounts of one, which, at the end of three years, had only 14,512_l._ -left in every shape and form out of 45,081_l._ received in solid -cash; and of another which, although with every shilling of its funds -gone, and 1754_l._ 10_s._ 3_d._ in debt, continues to publish to its -policy-holders and the world at large the very great fib that it has -made a profit of 6015_l._ 9_s._ 2_d._”[29] - -Of course the frauds alluded to above strengthened the hands of the old -companies, and though really worth nothing as illustrations against -the existing offices, were quoted with much delight. The chief thing -they did prove was, that while the Registration Act did not prevent -the formation of bubble societies, it aided such men as Mr. Hartnoll -in discovering them before much mischief could be effected. All these -circumstances, however, drew attention to the new companies, eliciting -a variety of opinion on the subject. - -The amount assured in all the life offices in the kingdom is variously -calculated. But probably the information collected by Mr. Brown, who -estimated it at 150,000,000_l._, is nearest the mark. On this sum, -5,000,000_l._,--being about one twelfth of the annual revenue of the -country,--are payable yearly as premium. The vastness of this interest, -its domestic character, its mercantile and its social bearings, are -all important; and as life assurance is making rapid strides in public -esteem, it is probable that where one man now insures for the sake of -his family, two will do it in twenty years’ time; always provided no -check be given to the principle, by the failures of offices, through -extravagant expenses, or through want of business. - -There is a general objection on the part of commercial men to see the -Government interfere in mercantile affairs. But this is a question of -degree: the principle is sound to a certain extent, though no farther. -It is sound that the State should not interfere with the detail of -management, but it is not therefore unsound that it should propose some -general law by which publicity may be given to certain accounts--by -which the public may be made aware of their liabilities, and a moral -check established which must be beneficial to all. - -The wise provisions of the Banking Act of Sir Robert Peel in 1844 are -a proof that our Legislature does interfere in financial affairs, and -life assurance is only an extended form of banking; the joint-stock -banking company receiving deposits and paying them back, with interest, -on demand; the joint-stock assurance company receiving deposits and -paying them back, with interest, at death. If it were thought desirable -for the Bank of England to publish a weekly statement of its financial -position, it is equally desirable, in many respects, for a life -assurance company,--the argument being, in both cases, the general -good. - -An examination of the accounts returned by the various offices gives us -some startling facts. Twenty-five of these, the average term of whose -operations has been three years and three-fifths, have expended in that -time 375,328_l._ out of 462,032_l._, great part of which they have -received for policies granted and annuities promised. Nine of them have -spent all their premiums and 30 per cent. of their capital besides. -Mr. Labouchere distinctly stated his opinion that many were insolvent; -and “My impression,” says Mr. Christie, “nay, my entire conviction, as -to others, notwithstanding the flaming accounts of their prosperity -contained in reports and speeches at annual meetings, is, that they are -rotten, and are in effect, though not in design, fraudulent.” - -Such statements as these being publicly made, there appears some ground -for examining the question, and for quieting the minds of those who may -have entered into engagements with the junior offices, so far as a fair -and rational consideration will do so. It may be assumed that none of -the offices now in existence have been opened with a fraudulent intent; -but the necessity which exists of spending their money liberally, and -almost lavishly, to procure business, is almost as pernicious. It is -but just to say that an examination of the tables of the new offices -does not show a low rate of premium; not lower, perhaps, than the -increased value of life will allow, and certainly not lower than the -old offices could well afford to charge. - -One unfortunate tendency of the new companies is to give life assurance -a speculative character, when nothing is less speculative in reality. -Yet the extraneous temptations and collateral advantages promised by -most are very mischievous. Men now sometimes insure their lives with -a vague belief that in a few years they will have no more premium to -pay; they quarrel with the fair divisions of old offices, and taunt -their managers with the advantages to be derived from the new. As an -example of the language that is sometimes indulged in, one modern -office promises to set apart a portion of its future profits, whether -such should amount to thousands or to tens of thousands, to hundreds of -thousands or to millions, for the support and future provision of any -person in decay who shall have once, for however brief a space of time, -held a single share in such company. “To become a shareholder,” says -the prospectus, “is as it were to effect at once and for ever a policy -of assurance against want.” The reader is left to judge for himself of -this singular specimen of assurance. - -But, independently of the expenses which eat up the premiums, it may -be feared that in an anxious search after business, the examining -physician may not be so rigid in his report as those of the older -established companies; the lives admitted by the directors, therefore, -not being so good as they should be for the ultimate safety of the -office. It has been added, in support of this, that in some of these -companies the mortality has been 40 per cent. more than it should have -been, had proper care been taken. But are we not very ignorant of the -laws which govern disease? It is well known by physicians that the -chances of life in individuals are constantly changing. Mr. Gompertz, -the father of our actuaries, has expressed a belief that it would -be difficult to pick out 10 per cent. of really uninsurable lives -from the entire population. Those which are now doubtful, or even -diseased, to-morrow become sound and insurable; while those accepted -with gladness at the ordinary rates of to-day, become in almost the -same proportion ailing and uninsurable afterwards. The chances of -individual health, be it sound or unsound, are as uncertain as those of -individual life, and no effort having hitherto been made, excepting by -Mr. Neison, to discover the law which governs disease in its relation -to life, it follows that any argument against the new companies based -on the low character of the lives which they assure, may prove, however -specious in theory, very unsound in practice. And the mode adopted -by the old offices of conducting their business has certainly, up to -the present time, been too much in their own favour. By well-grounded -tables they establish the fact that out of 1000 lives, taken at random -among the diseased as well as the healthy, a certain number will die -each year, until all are extinct. But though on this they found their -rates, they are much too shrewd to take their lives at random. They -pick the strongest and healthiest, rejecting all else, and make them -pay premiums founded on the contingency tables of mixed lives. This, -therefore, is also somewhat in favour of the calculations of the new -companies. But there is another important item to be regarded;--the -value of money. The funds of all the offices from 1760 to 1815 were -bought when Consols were low, and the price of the Three per Cents. -ranged from 47-1/4 to 97. During the war there was an eager demand for -money. Exchequer bills, mortgages on large landed estates, allotments -of new loans, were all favourable modes of investment. Even since -money has been plentiful, the large capital of the old offices has -enabled them to gain a higher interest, because money lent in large -sums for a lengthened period will always command a higher rate of -interest than small sums for a short period. Thus one old office -announces, in its balance-sheet, that it is receiving 4-1/2 per cent. -on its investments; and probably other offices, with similar funds, are -similarly fortunate. - -The new offices may find a difficulty in this which they have not -estimated, and which may materially interfere with their profits; -although it is more than probable that even this objection is -over-rated, because there are principles which govern the interest -of money, quite as certain as those which govern life, and because -the rate of discount of the Bank of England is no safe criterion -to those who are out of the money market. Their anxiety to forward -their interests will also induce them to exert themselves, and -the activity which pervades business when discounts are low, may -more than compensate for a diminished interest. There is, however, -another feature which must always act somewhat in favour of the -old offices, and that is, their liberality in peculiar cases. Rich -and well-established companies do not always confine themselves to -arithmetical calculations, and they often employ the rule of right -in paying demands which no court of law could compel; partially, it -may be, from proper feeling, but principally from an “enlightened -selfishness.” - -If it be thought that life assurance offices should, for the sake of -the public and of themselves, be interfered with by Government, the -next step is to discover the simplest and the least vexatious mode of -dealing with them. And here at once arises the question whether some -difference should not be made between the mutual and the proprietary -company. Assuming that the mutual system possesses every essential -element of safety, it is equally true that there are hazards in the -path of any company depending merely on its premiums, which do not -attend a company with a respectable proprietary. Hundreds were once -ruined by a mutual fire-company; and had the cholera, in 1849, fallen -on the class which does insure as much as on that which does not -insure, none can say to what extent the new and untried companies would -have suffered, or whether they could have paid the policies which -became due. And there is another point which materially affects an -office with a small business. In the first few years of its existence -the estimated mortality will probably ensue. But let us imagine, -for a moment, this mortality seizing those who are insured for large -amounts, instead of those who are insured for small sums; might not the -demands be too great for its capital, even with no excess of mortality, -especially when it is remembered that the expenses of establishing -the society would necessarily have decreased its resources? A company -with a subscribed and paid-up capital may fairly pay largely for -advertisements; but a mutual company, without any independent funds, -has scarcely the right to use their premiums for any other purpose -than to decrease the annual payments or add to the policies. As mutual -offices, therefore, have no other security than their premiums, these -would require to be looked after more circumspectly and closely than -where a capital and a proprietary are answerable to the insured. The -mode in which the funds are invested by mutual offices might be a fair -subject for publication; nor would this be an invidious distinction, -as an irresponsible office has less claim to an equal latitude of -investment, and less right to keep their secrets than a responsible -company. - -One element in the success which the old mutual offices have -experienced is attributable to the high rates they charge. Thus, the -premium of an old mutual company at the age of thirty is 2_l._ 13_s._ -6_d._; while that of an old proprietary company is 2_l._ 2_s._ There -may be an ultimate equivalent to the mutual insurer, if he live, in -either a reduced premium or an increased policy; but as the former -is too frequently accepted instead of the latter, the family of the -insured do not receive the same benefit at his death which they would -have done, had he paid the same sum to a proprietary office, and kept -up the premiums as he would have been compelled to do. - -A life assurance office with a respectable proprietary and a paid-up -capital, is by virtue of the English law of unlimited partnership as -safe as any company can be, so far as the assured is concerned; and as -the chief end and aim of government interference would be the safety -of the policy-holder, it follows that new legislation on this subject -should in fairness only affect new proprietary companies, to prove the -reality of their capital, and so protect the public from such men as -those who have lately been unkennelled. But though a marked difference -may be claimed by the respectable proprietary companies, and though -a distinction might perhaps in strict justice be drawn betwixt those -with a subscribed capital and those which have only their first years’ -premiums, less their expenses, to pay the claims against them, it would -perhaps be politic on the part of government to include all; and it -would be still more politic on the part of the old proprietary offices -to state their readiness to concur in any plan which might be for the -benefit of the body corporate, because any legislative measure, to be -effective as well as protective, must be general. While it must be -such as will be readily acquiesced in by the older offices, it must -not be made unpleasant to the new: it must be at once general in its -application and strict in its inquiries. If it appear inquisitive, it -must not be inquisitorial; and, if possible, the common consent of all -should be obtained. The actuaries, who are intelligent and accomplished -gentlemen, must be propitiated, for they are in possession of a -somewhat occult science, having justly the ear, the confidence, and the -respect of their directors. And when it is borne in mind that these -directors embrace, as a body, the first men in the city of London, -that they possess a commercial, social, and, not seldom, a political -consideration, it follows, that to conciliate them is as necessary -to the well-being of any measure, as to conciliate the actuary is -necessary to the co-operation of the directors. There is no profession -in which subordinates are so respectfully regarded, for the actuary is -master of a science in which the director is generally deficient; and -knowledge, in this case, as in others, is essentially power. - -If then it would be wise and prudent for government to interfere with -all, and at the instance of all, the next consideration is how to -produce the greatest amount of good with the least amount of evil: and -one of the essential conditions is, the clearest information published -in the briefest form to give a correct estimate of the position of an -office. Tabular statements may prove whatever the actuary pleases, and -may be made to mean anything and mystify anybody. One concise form, -therefore, so clear that he who runs may read, a form which can deceive -no one and which all can understand, will be necessary. - -Many methods by which the safety of the public may be attained have -been proposed; but the first to be dealt with are the publication of -the accounts, the form in which they should appear, and the mode of -determining their correctness. - -1st. The publication of the accounts, to be effectual, should be -general. Without this the cry of partiality would be raised, and must -be fatal to the attempt. As well as general, they should also be -uniform, so far as this is possible. They should consist of leading -features stated in the simplest and least complex form, admitting, -as far as practicable, of only one interpretation. They should be -certified by the actuary, examined by the directors, and signed by -the chairman, all of whom should be held responsible, under a heavy -penalty, for their accuracy. - -2d. These returns must give the exact money position of the office, the -leading principle being an endeavour to show the funds in proportion -to the risks; and as there is a difference in the mode of estimating -future chances, the form adopted by each should be one and the same. -As each office, also, has business special to itself, with its own -peculiarities, its own interests, and its own mode of investment, -any detailed statement might be dangerous, and form the groundwork -for rivals to copy or to criticise. The points of chief note are the -capital, the amount of liabilities, and the annual returns; and if -the endeavour were made to show the funds in proportion to the risks, -instead of endeavouring to procure a large show of business at any -price, the object of ambition would be the accumulation of capital. - -3d. The best way of procuring correct information is the next -condition. Falsified returns are not impossible. If any office -should be failing in its endeavours to keep its business together, -having men at its head whose names are unknown save in a petty and -obscure locality, a strong check is necessary; and it seems scarcely -practicable to avoid the appointment of a competent person as an -arbiter of their correctness. Unpopular as this might be at first, -were the appointment placed in proper hands and judiciously carried -out, it would be of immense benefit. It would indeed be scarcely -necessary for the inspector to be a government officer. The established -companies might fairly say, that they have done no wrong, and that a -close espial by a government agent would be derogatory. But were an -inspector of this kind chosen unitedly by the offices, and paid by the -State, the companies having no voice in his dismissal, excepting under -circumstances which ought to command it, there would be less objection. -The necessity for such an officer would arise from the brevity of the -accounts to be published. It would be his duty to see that the data -from which they were formed was true; that the premiums received were -as large as was stated; and that while the investments were as great, -the liabilities were not greater than the report asserted. The power -to examine and compare these returns with the books of the various -companies is a delicate consideration; but as the offices might appoint -the inspector themselves, it would, after all, be only an additional -check by their own officer on their own affairs. The mode of investing -need not be published, as the power of the inspector to demand an -examination would be a sufficient check on immorally-disposed offices. -Nor is such a case unprecedented, as by a clause in the Bank Charter -Act of 1844, commissioners are empowered to search into and examine the -books of those bankers who issue notes.[30] - -If it be desirable, as it undoubtedly is, that assurance offices should -be perfected for the sake of the public, it is doubly so that some -check should be placed on annuity companies. It is from them that most -mischief has ensued. In a life office the promoters may have to pay -claims before they have received sufficient assets to meet them. But -an annuity office, where capital is at once placed down for a future, -but postponed benefit, may do irreparable mischief in less than a year. -In this way the public, and that portion of the public, too, which is -the most deserving of care, have suffered, and are likely to suffer. -All the new offices grant annuities, and though it is difficult to -say the exact amount, (their returns being so cleverly or so clumsily -arrayed), yet it is probable that within the last five years more -than 100,000_l._ has been received on the faith of annuities to be -paid by them; and it will be no consolation to the annuitant to be -told that though his annuity must cease, it is caused by unfortunate -calculations and not by fraudulent design. The granting annuities does -not necessarily, although it may naturally, enter into the business -of a life office. For the first century assurance, and annuities were -distinct, and it is somewhat doubtful whether it is quite wise to -allow, at any rate it is dangerous to the public to deal in annuities -granted by new offices which issue policies of assurance as well as -bonds of annuities. The large sums paid down make a show in the assets -of a new company, and the fact that hundreds of people for many years -rest their entire support on the promises to pay of offices which -have been declared by many to be bankrupt, and whose balance-sheets -certainly evince an irregularity out of keeping with all propriety, is -singularly important. It is a cruel government that will not interfere -in an iniquitous system, and the accounts of the annuities, viz. the -yearly amounts to be paid, the estimated number of years over which -they will extend, and the special capital in hand to meet the demands, -should be published separate and distinct from the assurance accounts, -as the banking and issue departments of the Bank of England. - -Another proposition has been made, to the effect that no company should -be allowed without a large paid-up capital. “The public safety,” says -the ‘Morning Chronicle,’ “requires that a sufficient capital should -be provided;” and this the same article suggests should be 50,000_l._ -“There are special reasons,” adds the writer, “particularly at this -time, why new insurance offices should be required to provide a -sufficient capital. Causes are in operation which may interfere largely -with the rate of interest procurable on first class investments, and it -is not to be overlooked that the increasing facilities of communication -with distant regions, Australia for example, combined with the wide -discretionary powers which it is the fashion for deeds of settlement to -confer, may lead to remote and hazardous investments, full of promise -when entertained, but liable to great and sudden accidents,--accidents -such as insurance offices without any independent resources could never -recover.” - -In another portion of the very elaborate articles alluded to[31], -it is added:--“The only real remedy is to take care that the parties -who enter into the several speculations have something considerable -to lose, self-interest will then render them infinitely more prudent -and vigilant than all the inspections and certifications in the world. -With the general requirement, however, of the payment of 50,000_l._ as -capital, might very properly be combined certain improvements on the -present law of a minor character.” “It would be proper also to enact -that after a specified date all persons whose names are with their -consent advertised as patrons, vice-patrons, trustees, or honorary -directors, of any insurance company, shall be deemed to be shareholders -therein.” - -How far the suggestion of no office being allowed without a large -capital, should be carried out, is a very serious consideration. A -large paid-up capital does not appear an absolute necessity, although -the faith engendered by it would probably repay the assured, because -the larger the capital, the greater the confidence, and the greater the -power of the subscribers to extend the business, as it does not follow -that all the profits should go to the proprietors. The money invested -would not be idle; it would be the business of the directors to place -it in security at a good interest, and the interest would probably be -greater than the subscribers could obtain elsewhere for their money. - -All the old companies, which were once purely proprietary, divide -a portion of their profits among the insured, and nothing can be -fairer or better founded than an office which offers the advantage of -a large paid-up capital, and divides four-fifths or nine-tenths of -the profits among the insured. Still as the entire tendency of the -public has been in favour of the mutual system for the last quarter -of a century, as all authorities have proclaimed it to be the purest -principle of Life Assurance, as innumerable instances of great success -are to be found in its ranks, it follows that an attempt to revert to -the pure, proprietary system would be worse than useless. But with -all the advantages of the mutual system, it is probable that a small -paid-up capital, with responsibility to the extent of the proprietor’s -fortune, would be sufficient for safety: for there is one more point to -be considered relating to the management of a mutual office, which is -too often forgotten. In this the policy-holders have a vote; they know -not when their lives may fall; they are eager to add to the value of -their policies; and the directors feel a pressure from without which -sometimes compels them to give a greater bonus than they ought. This -is the prevailing tendency of the mutual principle, and argues somewhat -against it. In a mixed company, on the contrary, it is the aim of the -directors to maintain their investments intact; they know that what -will destroy the company will destroy them as partners, and there is -a moral power in operation in their case, as there is something very -unlike a moral power in operation in the other. - -That there are enough and to spare of companies, none can doubt. That -some are in a position from which their customers would justly shrink -is probable; and that others would be found insolvent if strictly -examined, is to be feared. But, with all this, they are indisputably -beneficial to the cause they represent, as they are spreading its -knowledge, and pressing its necessity, with the earnest spirit of men -whose existence depends on the number of their proselytes. - -FOOTNOTES: - -[26] Letter to the Right Hon. Joseph W. Henley, M.P.--By Robert -Christie. - -[27] The Equitable even was regarded with a very suspicious eye by the -Court of Chancery soon after its commencement, and the names of bankers -and merchants as directors, great in their day and generation, did not -prevent the proprietors of the Royal Exchange, the Amicable, and the -London Assurance corporations from predicting its failure. - -[28] The public is greatly indebted to Mr. Hartnoll, the avowed editor, -and Mr. Pateman, the publisher of the Post Magazine, for their great -exertions in the cause of Life Assurance. - -[29] “Assurance Companies’ Accounts,” p. 43. - -[30] “That the said Commissioners shall have full power to examine all -books, at all seasonable times, of such bankers as issue notes, and -to take copies or extracts from any such books or accounts.”--History -of the Bank of England, its Times and Traditions.--By John Francis: 2 -vols. 3rd edition. Longman, Brown, and Co. - -[31] The Morning Chronicle. - - - - -CHAP. XV. - - EXTENSION OF ASSURANCE.--SOCIETY FOR ASSURANCE AGAINST - PURGATORY.--COMMERCIAL CREDIT COMPANY.--GUARANTEE SOCIETY.--MEDICAL, - INVALID, AND GENERAL.--AGRICULTURAL COMPANY.--RENT - GUARANTEE.--RAILWAY PASSENGERS.--LAW PROPERTY, AND INDISPUTABLE - SOCIETIES.--DISPUTED POLICY. - - -It has been found that there are unchanging principles which regulate -commercial losses; that the lives which are sacrificed by railway -accident have similar conditions; that the storm which levels the -wheat has its defined courses; that the murrain which devastates the -cattle is as fixed in its movements as the disease which destroys -humanity. To meet these casualties, societies have been started, -founded on laws originating in the doctrine of probabilities, and -regulated by tables to show the chance of their occurrence. Nor is -there any reason against--nay, there is every reason to believe -in--their success, provided only their promoters apply themselves with -diligence to collect sufficient data whereby to rule their operations. -Of one society only may a doubt be evinced and a smile raised at its -presumption, and this is the - - -SOCIETY FOR ASSURANCE AGAINST PURGATORY! - -for supposing the threepence per week paid by the credulous peasant -be sufficient to satisfy the priest, yet there is every reason to -doubt that the prayers and masses of such mercenary pastors will -be sufficient to satisfy God. There is something half-grand and -half-grotesque in this impudent provision against an indefinite future. - - -THE COMMERCIAL CREDIT MUTUAL ASSURANCE SOCIETY - -is characteristic enough of a mercantile people. Prior to the -foundation of such an institution, it is obvious that there must have -been some important statistical information connected with commercial -losses. - -This was submitted to Mr. Finlaison; and his opinion being that the -plan contained the strongest element of success, the society commenced -business; and now any person supplying a number of traders with goods -may secure himself from loss, 90 per cent. of which is paid to the -assured party, the remaining 10 per cent. being placed as a reserve -fund. There is also an annual charge for management, out of which the -interest on the shareholders’ capital of 50,000_l._ is paid. There -are many collateral advantages in connexion with the company, not -the least of which is information concerning the trading community, -so that a subscriber may ascertain the character and credit in the -money-market of a new customer. All legal expenses are borne by the -management commission fund; and there is something very amusing in the -indifference with which any person insured in this society must attend -a meeting of creditors; for while others look with bent brows and -anxious faces, he may remain utterly careless about its proceedings. It -is easy to suppose that this feeling may raise a spirit of recklessness -in some; but the promoters have wisely interested this class, if such -there be, by the deduction of the 10 per cent. on all losses, and by -other wise arrangements which stimulate the careful and deter the -careless. One half the surplus of the year’s premium will be applied -to the reduction of the next payment of those whose losses have not -equalled their annual premium; and as a similar society has been in -operation in France for the last five years, which has met with signal -success, there appears every reason to believe that this society will -prosper. Within the first nine months, insurances have been effected -of more than 3,000,000_l._ The theory of chances is as applicable to -commercial transactions as it is to life. The close observer will not -have failed to notice that the periodical epidemic--whatever form it -may have assumed--has its representative in the commercial crisis. -Every six or seven years, mercantile epidemics--analogous to the -cholera, the influenza, or the typhus of an unhealthy season--which -seem to defy all calculation and to level the lofty as well as the low, -revolutionise our money system. So fixed have they become in their -appearance and re-appearance, that they have ceased to be exceptional; -and there is now plenty of information on which to base some estimate -of the annual losses of special classes from bad debts. - - -GUARANTEE SOCIETY. - -When this company was first started, in 1840, for the insurance of loss -against the dishonesty of clerks, there was a great objection raised. -It was thought one of those vague and speculative undertakings of which -England has seen so many, and one which would necessarily fail, because -the master would hesitate to take an assistant who could only give the -security of a commercial company. “The moral security is wanting!” was -the exclamation of all. It was vain to answer, that this objection -pointed both ways, as the relative would often give the desired bond, -which a mercantile institution would refuse. Still the parrot reply -was heard, and the solemn shake of the head was followed by “The moral -security--where’s the moral security?” and was deemed sufficient to -crush all argument derived from mere statistics. - -Time passed, and it was discovered that because a banker’s clerk gave -the security of a company, he did not become a rogue, but he did -become independent. It was found, too, that the master could make his -claim good on the company with far more promptitude than he could on a -relative. It was nothing to say to a board of directors, “I will have -justice and my bond;” but it was something to say to a broken-hearted -parent, “Your son has ruined you as well as himself--discharge your -obligation!” It is well known that bankers and merchants have often -foregone their due rather than thus reimburse their losses: and it has -been found that, notwithstanding the fact of the “moral security” being -wanting, the societies which guarantee the master from loss by the -servant have been very successful, are very serviceable, and are on the -increase. - - -THE MEDICAL, INVALID, AND GENERAL. - -Almost the only objection which could be brought with justice against -the offices prior to 1841, was the habitual practice of refusing -delicate and doubtful lives. Having, in the early part of their career, -taken all who came without inquiry, they rushed into the opposite -extreme, and refused all who were not undeniably strong. There were -indeed a few offices which professed to insure invalids; but they had -no statistical information; and they rarely, if ever, accepted a life -unless it was obviously a good one. In 1833, Mr. Gilbart wrote, “We may -hereafter have tables that shall show the expectation of life, not only -in regard to people in health, but also to those afflicted with every -kind of disease;” and in 1841 Mr. Neison established the above office, -the success of which has confirmed the opinion entertained of his great -ability. - - -AGRICULTURAL INSURANCE COMPANY. - -In the year of the South Sea bubble, a wit of the day epigrammatised -the proposal to insure horses and cattle, little thinking it would ever -be carried out. Yet that some such institution was necessary may be -gathered from the number of local clubs of this character established -all over the country. These will probably merge in some agricultural -insurance company like the above; and did this institution not take -human life into its business, it might be more successful. The laws -relating to life and to farming stock are very different, and a -company devoted to the latter would be wiser than one which blends the -assurance of agricultural property against disease, accident, fire, -lightning, and the hailstorm, with ordinary life assurance. - - -THE RENT GUARANTEE SOCIETY. - -This is another instance of the extension of insurance to a purpose -which at one time would have been pronounced Utopian; and which, -addressing itself exclusively to landed proprietors, promises to -collect their income without trouble and without loss. When a tenant -knows that his rent will be rigorously demanded, he feels that he -must provide the money or pay the penalty. There are no qualms of -conscience in companies; and though a man might try to play upon the -easy good nature of his landlord, such tricks would be vain against -them. Determined habits of thrift are thus engendered, property -becomes more valuable, the landlord receives his rents regularly, and -business proceeds like a machine. It may be said that the kindly -feeling between landlord and tenant disappears beneath the iron sway -of a public company; but however this may be regretted, it is only an -inevitable consequence of the changes of capital and the consequent -transfer of estates. - - -RAILWAY PASSENGERS ASSURANCE COMPANY. - -We owe to Mr. Glyn, when chairman of the London and Birmingham Railway, -the first light on the subject of railway accidents. He proved that -they were far less by the iron road than by the coaching system, and -that the loss of life, in proportion to the number which travelled, -was incomparably less. When the yearly railway reports were published, -it was at once seen that a society like the above would have a fair -chance of success. Some of the railway companies have refused their -aid, thinking it would cause a decrease in railway travelling. Others, -again, have assisted, on the broader principle that such an institution -was sound. This company has been severely tried; but it has been -productive of an incalculable amount of good, and the character of the -directors gives a perfect solidity to the concern. In many cases it has -been very effective in mitigating the distress which sudden death so -often entails on survivors. - - -ACCIDENTAL DEATH INSURANCE COMPANY. - -There are hundreds of thousands who cannot afford to be run over; -to whom a lingering illness would be misery; and whose death would -scatter or starve their families. A serious or severe accident would -probably deprive a clerk of his situation, and a small tradesman of his -business, leaving them with no home but the hospital, and no hope but -the grave. The statistics of general accidents are difficult to arrive -at, but a small annual premium would be an ample safeguard against -such a casualty. There is one point in which both this and the Railway -Assurance Company are wanting, and yet it would be scarcely possible -to amend the error. There is in neither of them any inquiry as to the -health of the party assuring. Now it is obvious that the very life of -a confirmed invalid would be shaken out of him where a strong and hale -man would receive no injury. - - -LAW PROPERTY ASSURANCE AND TRUST SOCIETY. - -Of a somewhat similar character to the Rent Guarantee is the above; -and this is another admirable idea if it can be carried out. Defective -titles, being assured, are rendered absolute and perfect by it. The -actual repayment of loans and mortgages is guaranteed, while copyholds, -lifeholds, and leaseholds are made equal to freeholds for all purposes -of sale or mortgage. - - -THE INDISPUTABLE LIFE COMPANY. - -There is a principle involved in the title of this Society which -is much too important to be briefly dismissed. The eagerness with -which all companies claim indisputability for their policies, is -a significant sign of public feeling on the subject. But the term -indisputable at present means nothing. To be effectual, it should be -absolute; and it is doubtful whether it would not benefit the whole -of the offices to adopt indisputability as their motto. There is -great evil, and there is often great wrong, in a disputed claim; but -it seems sometimes a necessity. Where there is conspiracy, fraud, or -concealment, it is manifestly unjust to pay a policy; but it costs -far more to resist it: and it is a point worthy mature consideration -whether an insurance so effected should not be treated as a fraud, -and punished criminally. It might be taken as a rule, that where the -policy is in the possession of any one who has assisted in the fraud, -it should not be paid; but when it has fairly passed into the hands of -a third party, such a course might be honourably avoided. It has been -said by its opponents, that at present there is no company which issues -policies really indisputable; that which is so called, being only -indisputable according as the conditions on the face of the policy are -maintained, and that their title is open to dispute. - -There is, however, one merit due to this company. It has opened -a most important question, and one that will eventually lead to -indisputability in its most extended form. It will also render other -offices more cautious in entering a court of justice, and it can never -hope to enter itself with success. - -That the power of a company is often vexatiously and unjustly stretched -to its utmost limit, in order to escape the payment of a policy, -the following will prove. It is in itself a strong argument for -indisputability. - -When railway travelling was in its infancy, one John Scott, of -Birmingham, being compelled to journey by what was thought a dangerous -conveyance, was urged to insure his life as a provision for his family. -He offered himself to the Norwich Union, answered all their questions, -was examined by their medical man, and reported as perfectly sound. -So good a life was he, that the agent of the Imperial urged him to -abandon his proposition with the Norwich, offering him such inducements -that he consented, though it cost him six pounds to void his nearly -concluded bargain. He then went through all the forms necessary with -the Imperial, was reported again as a perfectly sound life, and gladly -accepted in May, 1840; the policy being for 2000_l._ From 1840 to 1842, -he worked with an untiring energy and an incessant labour utterly -incompatible with failing strength, and in that year he became a -bankrupt. So excellent was his health, that his assignees would not pay -any more premiums until they had ascertained that its market value was -equivalent to the payment, and they then sold it by public auction to -Mr. Beale for 135_l._, the Imperial itself bidding up to 100_l._ The -next premium was paid by Mr. Beale in May, 1843; and in the following -December, Mr. Scott died. - -The discharge of this policy was contested with a determination sadly -at variance with unsophisticated justice; but because the Imperial had -a witness to prove that Mr. Scott had suffered from an ulcerated sore -throat in 1836, they refused to pay. And when on the first trial the -jury returned a verdict against the company, they obtained a second -trial on technical grounds, which again they lost, and yet another, -which was once more decided against them; though so great were the -expenses to the claimant that he gained nothing by his public purchase -of the policy granted on the faith of a respectable company. - -With a case like this, and there are many like it, is not an -indisputable company desirable? - - - - -CHAP. XVI. - -A TRADITIONARY CHAPTER. - - THE BANKER’S MISTRESS.--THE ELDER NAPOLEON.--THE DECEIVED - DIRECTOR.--THE MURDERED MERCHANT.--THE CORN-LAW LEAGUE AND THE - CUTLER.--THE UNBURIED BURIED.--THE DISAPPOINTED SUICIDE.--A NIGHT - ADVENTURE. - - -The stories which are contained in the following pages may in most -cases be relied on as essentially true. But they have been placed -together in one Chapter, because some are merely traditionary, because -the authority was not absolutely reliable in all particulars, or -because they might have been irrelevant in the body of the work. - - * * * * * - -A lady possessed of great personal attractions, and calling herself by -the convenient name of Smith, applied to an office to insure the life -of a woman residing at the west end of the town. When asked the reason, -she replied, that she had advanced various sums to place this person -in business as a milliner, and that to effect an insurance on her life -was the only way of securing the money in case her _protégée_ should -die. The life was a good one, the references were satisfactory, and the -policy was made out. In a few months a fine carriage, with coachman -and footman in splendid livery, drove up to the door of the insurance -office, and Mrs. Smith made her appearance to announce the death of the -person insured. Whether the lady overacted her part, or whether the -carriage excited suspicion, when it was meant to inspire confidence, is -uncertain; but the officers of the society deemed it wise to inquire -into the circumstances of the death. The house where the milliner had -resided was mean; the immediate neighbourhood was poor; there was no -indication of business to justify the assurance of her life for a -large sum. The actuary who made these investigations went farther. -He instituted an inquiry at the other existing offices. At the very -first he went to, the same lady had effected an insurance on another -person’s life. At the next, and the next, and the next, she was known; -at each she had procured policies on various lives for large sums, and -wherever this woman had effected an insurance, within three months the -person insured had died. There was scarcely an office in town where she -had not appeared, and scarcely an institution which had not paid her -various sums of money on lives which had suddenly fallen. Her father, -her mother, her sister, had been insured and had died, like all the -rest, of cholera, and this too at a time when the cholera was not in -active existence. Farther inquiries elicited the information that she -was the mistress of a banker, whose carriage she employed to create an -effect, and whose life it is very fortunate she did not insure. - -After mature deliberation, it was resolved to dispute the payment; but -as it was not thought advisable to give the real reasons, a technical -plea was adopted. All the circumstances were, however, stated in the -brief; and as Sir James Scarlett read them, when he saw how one life -after another had fallen directly it was assured, that acute and -able man at once exclaimed, “Good God! she must have murdered them -all.” But whether he were correct or not in this, it was determined -to adopt another reason, and the trial came on. Although Sir James -had instructions not to exceed his brief, he could not resist the -temptation, and he hinted pretty broadly that foul play must have -been used under such extraordinary circumstances. The advocate on the -other side enlisted the sympathies of the jury in his “beautiful, -delicate, and susceptible client;” he wondered at the baseness of the -thought which charged such a crime on such a creature, and invoked the -vengeance of heaven on those who could entertain so unworthy an idea. - -One surgeon had been referred to in all the cases, and one surgeon had -testified to the death of all. The effect upon the court was appalling, -as document after document was handed him; and as with each certificate -the question was put, “Did you examine this life?” and the answer came -“I did;” and “Did you certify to this death?” and still the same reply -was given: it seemed as if this series of sudden and insidious deaths -would never end. Both advocates did their duty in this difficult case -according to the most approved rules of art; but that of the lady was -triumphant, and gained the verdict. Still the office was determined -not to pay, for the directors felt certain they were right. The more -inquiries they made, the more extraordinary the circumstances which -were elicited, and they resolved to show cause for a new trial. To do -this effectually, they found it advisable to abandon all technical -objections, to state broadly and boldly the moral grounds on which -they acted, and to insert all the causes which made them thus declare -war to the “knife.” Never was a more serious list of charges brought -against one person; and no sooner did the lady find that so grave an -investigation was in progress, than she left this kingdom for that of -France, in the capital of which she commenced a boarding-school, and -obtained the attendance of some respectable girls, but to what account -she turned them, and of the scenes which were enacted, the less that is -now said the better. - - * * * * * - -Many years had passed since the above facts occurred, when the -secretary of an insurance office at the west end of the town, asked -the actuary who had elicited the above facts, whether his office -was disposed to take a fourth part of 10,000_l._ on the life of a -gentleman just proposed by a lady in connection with some marriage -settlements. An affirmative answer was given, an appointment was made, -and on the following day the lady and her lover met the officials at -the office. The former was a person of great personal attraction, -elegantly dressed, and elaborately ornamented; the latter had nothing -against him as a life, excepting perhaps that he appeared a most -inordinate fool. But the face of the lady, though changed by the lapse -of time, was strangely like that of her who years before had quitted -England so abruptly; and the resemblance, at first deemed ideal, grew -so positive that suspicion ripened almost into certainty. Nothing -occurred, however, on the part of the actuary to indicate it, and when -the cause of the insurance was demanded, a marriage settlement was -mentioned by the lady, who, with a smile and a simper, pointed to the -gentleman by her side as the happy man. To the health of the applicant -there was no objection; and as he was by no means overburdened with -brains, a private interview was sought with him, that he might, to -use an expressive phrase, be well pumped. This was easily done. When -he was asked whether he had any property of his own, he said No; and -it soon appeared that he had acted as agent or traveller for some -wholesale house in the City, and that his knowledge of the lady had -arisen from the introduction of a military gentleman, who thought it -would be a good match for him; and that on this they had proceeded to -some Zadkiel of the day, who had predicted their union. All this gave -no clue to an insurable interest, and when he was asked what reason -there was to believe in her great possessions, he pointed to her gay -dress, and expatiated on her rich jewellery. Such a fool was scarcely -worth a thought, so the place where the lady lodged was applied to; -but no information could be procured, excepting that she was supposed -to be “very respectable,” as she had an abigail and footman. It is -strange that, notwithstanding the difficulties of the case, the woman -succeeded in obtaining the insurance. Before the policies were duly -made out, she wedded the gentleman who wished to better his condition, -and “all went merry as a marriage bell!” One fine morning, however, -the woman where they and their servants lodged, came down in a hurry -to the office to say that on the previous night they had all got tipsy -together; that there had been a violent quarrel among them; and that -the servant had been overheard to accuse her mistress of prompting her -to marry a man to whom she was engaged, to induce him then to insure -his life, and afterwards to go to France, where they could easily make -away with him, and receive the insurance money. In the blindness of -passion, occasioned by the quarrel, they went before a magistrate and -made statements of each other so startling and so fearful, that the -magistrate dismissed the case, believing them all unworthy of credit; -and it may be presumed they did not tempt Providence in a police office -again. - -When this news reached the offices, they grew alarmed, and taking -advantage of the false position in which she had placed herself, -insisted on returning the money she had paid them, demanding at the -same time the receipts she had taken. At first she indignantly -refused; but the offices not being very delicate in the threats they -held, this adventuress, as extraordinary a person as ever figured -in romance, yielded the point, and released the companies from the -liabilities they had incurred. - -Her future life is quite uncertain, as she went abroad with her -husband, who after some time returned with a constitution as shattered -as if some subtle and poisonous drug had been instilled into his -system. The lady went her way, was seen no more in England, or at least -speculated no more in insurances on lives. - - * * * * * - -A. B. was the proprietor of an entailed estate, and much involved in -his affairs. His life was insured for the benefit of his creditors for -14,000_l._ In 1819 he intimated by letters his intention of putting an -end to his existence in order to free himself from his embarrassments, -and soon after his clothes were found on the banks of a deep river, -from which it was inferred that he had carried his intention into -effect. - -Circumstances, however, created a suspicion that he was still alive, -and the creditors kept the insurances in force by continuing to pay -the premium for some years; but his existence, though believed, could -not be proved, and was not known for certain until his death actually -occurred in America upwards of five years afterwards, previous to which -the payments had all ceased. - - * * * * * - -The reader need hardly be told that the life of the elder Napoleon -was trafficked with by underwriters during the whole of his wonderful -career. The various combinations in the funds, dependent on his life, -entered into by jobbers, made it very desirable to insure it; and -this was legitimate enough, as the jobber had a tangible interest. In -this way very large speculations were hedged; and as every campaign -and every battle altered the aspect of affairs, the premiums varied. -Sometimes private persons acted as insurers. Thus, in 1809, as Sir Mark -Sykes entertained a dinner party, the conversation turned--as almost -all thoughts then turned--to Buonaparte, and from him to the danger -to which his life was daily exposed. The Baronet, excited partly by -wine and partly by loyalty, offered, on the receipt of 100 guineas, to -pay any one a guinea a day so long as the French Emperor should live. -One of the guests, a clergyman, closed with the offer; but finding -the company object, said that if Sir Mark would ask it as a favour, -he would allow him to be off his bargain. To a high-spirited man this -was by no means pleasant, and the Baronet refused. The clergyman sent -the 100 guineas next day; and for three years Sir Mark Sykes paid 365 -guineas; when thinking he had suffered sufficiently for an idle joke, -he refused to pay any longer. The recipient, not disposed to lose his -annuity, brought an action, which was eventually carried to the highest -legal authorities, and there finally decided in favour of Sir Mark -Sykes; the law lords not being disposed to give the plaintiff a life -interest in Buonaparte to the extent of 365 guineas a year. - - * * * * * - -A history of life assurance in Ireland is to be found in its agencies; -but there are many anecdotes extant, of which the following are a -specimen. The statements from the sister country are always looked at -with suspicion, for they are too often at variance with truth. - -Twenty years ago an insurance was effected on the life of a gentleman, -and in two months he died, when a claim was made by a physician who -had opened the policy. The circumstances were investigated, and it -was ascertained that the party insured was at the time the insurance -was effected, and for months previously, under the medical treatment -of the physician for a very serious illness: on a _post-mortem_ -examination it was found that both heart and lungs were diseased. The -case was more disgraceful, because the physician who had claimed the -money was medical adviser to the company with which the insurance had -been effected, and had availed himself of his position to pass the -invalid. - - * * * * * - -The managing director of one of our best offices was offered, while -travelling in Ireland, an insurance of 2000_l._ on the life of a -gentleman; and an appointment was made to meet next morning at -breakfast. The applicant looked strong, and seemed healthy; he was -gay, lively, and ready-witted; nothing appeared amiss with him then; -and when the necessary certificates of health and sobriety were given, -his life was willingly accepted. In a year or two he died. In the -meantime information was received that his habits were intemperate, -that he was rarely sober, and therefore that a deception had been -passed on the company. It was discovered that he had been made up for -the occasion, that he had dressed himself smartly, assuming a lively -air and aspect, and that he had thus misled the gentleman by whom he -had been somewhat incautiously accepted. Such a case it was determined -to resist on every ground of public propriety and private right. All -necessary legal steps were taken; “the lawyers prepared--a terrible -show;” and as it was of somewhat doubtful issue, it was deemed wise -to take the most eminent advice which could be procured. That advice -changed the determination of the company; for it was said, that though -in England the deceased would have been pronounced a most intolerable -drunkard, yet no jury in all Ireland would be found to pronounce a man -intemperate who only took a dozen glasses of whisky toddy nightly; -that intemperance in England was temperance in Ireland; and that they -had better pay their money than risk a verdict. This they did; and -doubtless were very cautious in all Irish cases for the future. - - * * * * * - -Great power must always lie with friends in recommending assurance -to those whose circumstances demand it. An instance of this may be -found in the case of a well-known City merchant. The estate of this -gentleman was entailed on the male line; but notwithstanding this, it -was his chief fancy to improve the property, to the detriment of the -female branches, the only mode of obviating this being to insure his -life to the extent of the sum spent in improvements. Those to whom -he was near and dear felt the delicacy of the case, and hesitated -to broach the subject. His land agent was appealed to, a shrewd and -sensible Scotchman, and he took the first opportunity of talking to -Mr. ---- on the subject, who immediately acknowledged its importance, -promising to take the necessary steps on his first visit to town. This -he did; proposals were made to the extent of 15,000_l._; but some -technicalities interfering which prevented so large an amount being -effected in one day, only 10,000_l._ was insured; and the remainder -postponed “until a more convenient season.” That season never arrived. -In less than nine months the beautiful village where he resided, rung -with the news that he and his wife were murdered; and though money -could not soften or subdue the grief of such a tragedy, it tended at -least to alleviate it. - - * * * * * - -When the Corn Law league established its bazaar at Covent Garden, among -others who contributed to the exhibition was a cutler from Sheffield, -who visited London to see this great political feature of the day. -Before he left the city, he applied to an office to insure his life. -He was examined by the medical adviser; and though he seemed somewhat -excited, this was attributed to a prize which had been awarded him, -and he was accepted, subject to the ordinary conditions of payment, -with certificates of sobriety and good habits. The same afternoon he -left town, arrived at Sheffield very late, and probably very hungry, as -he ate heartily of a somewhat indigestible supper. By the morning he -was dead. He had fulfilled no conditions, he had paid no premium, he -had sent no certificate,--but he had been accepted; and as his surgeon -declared him to be in sound health up to his visit to London, and as -his friends vouched for his sobriety, the money was unhesitatingly paid -to his widow, whose chief support it was for herself and five children. - - * * * * * - -C. D., in possession of a good entailed estate, but largely in debt, -had his life insured for the benefit of his creditors for sums -amounting to 10,000_l._ - -In the autumn of 1834 his death was represented as having occurred -under peculiar circumstances at an English watering-place, and after -a very full investigation, with the depositions of ten witnesses, -who swore to their belief of his having been drowned, and of four -additional, who proved his identity, the insurance offices agreed to -pay the sum in the policies, under the stipulation that the money was -to be repaid if it should be discovered that he was alive. - -Two years after his death was alleged to have happened, it was rumoured -that he had been seen, and it soon became a matter of notoriety that -he had visited his native place and had made himself known to one -or two of his personal friends. The facts were not denied, and the -various sums were repaid to the offices under the obligations granted -by the parties who had received the money; but the offices allowed the -surrender values of the policies as at the time of their being brought -to an end. - - * * * * * - -At Berlin, on 24th November, 1848, the funeral ceremonial of the -Catholic Church, amid a numerous circle of weeping friends and -relatives, was performed over the remains of one Franz Thomatscheck, -who, however, had taken care to insure his life, both in London and -in Copenhagen; and who, strange as it may seem, was, in disguise, and -impelled by a strange curiosity, watching the progress of his own -funeral. On 29th September following, the public prosecutor, the police -authorities, and the priest of the Catholic congregation, might be seen -standing over the grave to superintend the disinterment of the coffin, -the contents of which, when opened, proved to be heavy stones, rotten -straw, and an old board. - -A surgeon had been bribed to attest the death; his brother had aided -him in effecting his escape; his disconsolate widow had followed the -departed; but the Austrian police, assisted by the telegraph, had -thwarted all these movements by consigning the perpetrators of the -fraud to the tender mercies of the justice they had violated. - - * * * * * - -In the eighteenth century a company was established, the chief feature -in which was the omission of the clause which renders the policy void -in the event of suicide. A man went and insured his life, securing the -privilege of a free-dying Englishman, and then took the insurers to -dine at a tavern to meet several other persons. After dinner he said to -the underwriters, “Gentlemen, it is fit you should be acquainted with -the company. These honest men are tradesmen, to whom I was in debt, -without any means of paying but by your assistance, and now I am your -humble servant.” He pulled out a pistol and shot himself. - - * * * * * - -That the clause which makes the policies of suicides void is not -unnecessary, the following is an additional testimony:-- - -Among the passengers who filled one of our river steamers on a fine -summer’s evening, the movements of one in particular were calculated -to draw attention. There was something so haggard in his face, there -was so continual an air of restlessness in his person, that it was -evident his mind was ill at ease. He had chosen a position where -scarcely any barricade existed between him and the stream, and casting -his eyes rapidly round to see if he were observed, he, almost at the -same time that he placed a small phial to his mouth, plunged into the -water. An alarm was instantly given, the vessel was stopped, and the -passengers saw him, true to the instincts of humanity, struggling and -buffetting with the water for life. Assistance being soon rendered, -the man was saved; and it was afterwards discovered that, having lost -all his property, and not knowing how to maintain an insurance into -which he had entered in more prosperous days, he had determined on -sacrificing himself for the welfare of those who were dear to him. -Believing that his death would be attributed to accident, he had taken -some prussic acid at the moment he jumped in, unconscious that the -effect of this poison is neutralised by the sudden immersion of the -body in water.[32] It is well to be a chemist when one wishes to be a -fraudulent suicide. - - * * * * * - -As the evening of an autumnal day began to close, four men might -have been seen hiring a boat at one of the numerous stairs below -Blackfriars bridge. Their appearance was that of the middle order, but -the reckless daring which characterised their air and manner, marked -them of the class which lives by others’ losses. By the time they had -rowed some distance up the river, the only light that guided them was -the reflection of the lamps which fringed it; and no sooner were they -shrouded by the darkness of night, than, without any apparent cause, -the boat was upset, and the four were precipitated into the Thames. -They were close to land, and while they buffetted the tide and made -their way, they hallooed lustily for help, which, as the shore was -now ringing with the noise of boats and boatmen putting off to their -assistance, was soon rendered. Of the four who had started, only three -landed together, and great was their outcry for their lost companion. -The alarm was immediately given; all that skill could do to recover -their friend was tried, but the night was too dark to render human aid -of much avail. It was pitiable to the bystanders to witness the grief -of those who were saved, who, finding nothing more could be done, were -obliged to content themselves with offering a reward for the body, -coupled with a promise to return early in the morning. They then went -away, and the scene resumed its ordinary quiet. A few hours after this, -at the dead of night, a second boat, with the same men, pursued its -silent and almost solitary course up the river towards the scene of the -previous misfortune. With them was a large suspicious-looking bundle, -which, when they had arrived at a spot suitable to their purpose, they -lifted in their arms, placing their horrible burden,--for it was the -body of a dead man,--where from their judgment and their knowledge -of the tide, the corpse of their friend would be sought. Favoured by -darkness and by night, they accomplished their object, again rowing -rapidly down the stream to an obscure abode in the neighbourhood of -Greenwich. When morning began to break, they returned once more to the -place which had witnessed their mysterious midnight visit, where, with -much apparent anxiety, they asked for tidings of their companion. The -reply was what they expected. A body had been found,--it was that which -they had placed on the strand,--and this they at once identified as -that of the friend who had been with them in the boat, and for whom -they had offered a reward. A coroner’s jury sate upon the remains, -a verdict of accidental death was recorded, and the object of the -conspirators fairly achieved. That object was to defraud an assurance -office to a very large amount: for the missing man had not been -drowned; the grief expressed was only simulated: and the body which had -been placed on the banks of the Thames had been procured to consummate -the deception. - -Against a fraud planned with so much art and carried out with such -skill, no official regulation could guard; and when the papers -containing the report of the inquest and the identity of the body, -were forwarded to the office as the groundwork of a claim for the -representative of the deceased, not a doubt could be entertained of -its justice. It was true that the claimant under his will was his -mistress; that his executors were the persons who perpetrated the -fraud, and were with him at the time of the accident; but there were -the broad and indisputable facts to be disposed of, that the insured -man had met with a sudden and accidental death, and this was attested -by the verdict of a jury. The money was paid, and with that portion of -it which came to the deceased, he went to Paris. In that gay capital, -with a mistress as expensive in her habits as himself, the cash was -soon spent; and so successful had been the first attempt in this line, -that it seemed a pity for gentlemen thus accomplished to abandon a -mine so rich. Very shortly, therefore, after the previous fraud, an -application was made from Liverpool to an office in London, to insure -the life of a gentleman for 2000_l._ The applicant was represented -as a commercial traveller, and permission was sought to extend the -privilege of travelling to America. This insurance was effected, and -when only a few months had elapsed, information was received by the -company that the insured gentleman, while bathing in one of the large -American lakes, had been drowned; that his clothes had been left on the -banks of the water where his body had been found; and in verification -of this, all the necessary documents were lodged in due time. As the -death and identity of the traveller seemed clearly established, the -office intimated its readiness to pay the policy at the end of the -accustomed three months. But three months seemed a very long period -to those who felt the uncertain tenure by which their claim was held, -so, to induce the office to pay ready money, they offered a large and -unbusinesslike discount. This, together, perhaps, with some suspicions -created by the manner of the applicant, placed the office on its -guard. Inquiries were soon instituted, and discoveries made which -induced them to proceed still farther; but no sooner was it found that -a close inquisition was being entered on, than the claim was abandoned, -and the claimant seen no more at the office. - -FOOTNOTE: - -[32] “I tell the tale as ’twas told to me.” It has, however, been -suggested that he failed to take the dose in his extreme agitation. - - - - -CHAP. XVII. - - SCOTCH LIFE ASSURANCE.--SCOTTISH WIDOWS’ FUND--ITS DIRECTORS.--NORTH - BRITISH.--THE FARMER’S FATE.--EDINBURGH LIFE.--LIST OF SCOTTISH - COMPANIES. - - -For more than one century the life assurance companies of England were -sufficient for the requirements of Scotland; and, whatever opinion may -now be formed of institutions founded on the proprietary principle, yet -life assurance would have been still in its infancy without it. And the -reason is obvious. It was the great object of these societies to pay -the best dividend they could. To do this it was necessary to spread -their advantages far and wide, to appoint agents in the remotest parts -of the country, to familiarise the public mind with its principles, and -to advertise its benefits wherever a village or district was ignorant -of them. By 1812, however, a proposal was printed “for establishing -in Scotland a general fund for securing provision to widows, sisters, -&c., and for insuring capital sums on lives, to be called the ‘Scottish -Widows’ Fund and Equitable Assurance Company.’” The northern reader -may not be averse to review the early career of his favourite -institution. - -Its prospectus rivals the mining advertisements of the present day. -The society was to be supported by 2 Dukes, 1 Marquis, 6 Earls, 2 -Viscounts, 2 Lords, 2 Honourable Gentlemen, and 3 Baronets, as patrons -only. It boasted a Viscount as President. There were 4 Vice-presidents, -27 Honorary Directors, 15 Ordinary Directors, and 20 Extraordinary -Directors. Its tables were founded on the Northampton observations -of Dr. Price, and the presumption of improving money was at 4 per -cent. per annum. But though it was ushered in with so brilliant an -array of names, it would seem as though they of Scotland were not to -be thus tempted. It requires hard work to place a new company on a -proper footing, and as dukes, marquises, or peers are not usually hard -workers, it took three years before this company could commence its -operations; and while the little insignificant-looking prospectus which -announced its advent is dated 1812, the society itself, ultimately -attended with such brilliant results, was not able to commence its -operations till 1815. Its first constitutional meeting was marked by a -feature perfectly in keeping with the devotional character of Scottish -life; yet it is strange and almost startling to commercial England -to read that “the venerable and reverend Dr. Johnston, who presided -in a manner beautifully consistent with the exalted piety of his own -character and _the benevolent design of the institution_, opened and -consecrated the business by the utterance of solemn prayer.” - -The difficulties incidental to mutual assurance beset the new -society. For a time its sole capital was 34_l._ 12_s._ 6_d._ The most -imminent danger must have been apprehended by its friends; and until -a sufficient fund was accumulated, an accidental death might have -precipitated its ruin. Its early records prove that great anxiety -existed, that various precautions were proposed, and that a natural -alarm overshadowed its progress. This fact is an exposition of the -chances which assurance companies on the mutual principle must run, -and of the dangers to which they are liable during any abnormal or -remarkable period, when with no capital subscribed to back them, a -plague in the shape of the cholera, or an epidemic like the small-pox, -may prove that figures are not facts, and upset the most elaborate -calculations or the most undeniable tables. - -The difficulties of the first year were surmounted, and insurers -came to its support. Year after year it gathered strength, and the -following table, giving some idea of its progress for ten years, may -not be uninteresting to new companies:-- - - 1818. 1821. 1824. 1827. 1829. - £ £ £ £ £ - Annual prems. 2,500 5,100 13,000 22,000 27,000 - Capital 3,500 15,000 50,000 95,000 130,000 - Policies issued 68,219 140,000 380,000 620,000 770,000 - -A comparison was made between the English Equitable and the Scottish -Widows’ Fund during the first eleven years of each. In the English -Equitable the assurances were only 230,000_l._; in the Scottish they -amounted to 493,000_l._ The annual income of the former was but -9500_l._, of the latter 17,500_l._ The English Society, at the end of -eleven years, possessed an accumulated capital of only 29,000_l._, -while the Scottish boasted one of 72,000_l._ Such was the success -of an institution which could not even commence business for three -years after its advent, which began with a capital of 34_l._ 12_s._ -6_d._, and which, by the evidence of its own manager, was doubtful -of its continuance for the first year or two of its existence. That -the Scottish Widows’ Fund has been serviceable to thousands, and that -it has stimulated other companies, is undeniable; but it is equally -undeniable that it is a mere trading institution founded on mercantile -principles; and though its managers may boast that “it is benevolent in -its objects, that it originated in no selfish views, and that it has -been the happy medium of diffusing comfort and security,” it must still -be borne in mind that such benevolence is scarcely compatible with its -interests; and when it is remembered that its meetings were solemnised -by prayer, the thought naturally occurs whether revenue or religion -prompted the exercises, and whether the quackery of trade was not mixed -with the fervour of worship. It is a financial company, governed by its -tables, guided by its physician, and ruled by regulations which are and -ought to be severely enforced. Such was the first mutual institution of -Scotland. - -The first proprietary was in 1823, when the North British Fire Company -added life assurance to its ordinary business. A company with a capital -is often of much service to the cause of life assurance in any place -where it is newly introduced. Where a mutual society fears to expend -its money, a proprietary company will send its proposals to every -journal in the place; and by spreading its doctrines among a remote -but intelligent agricultural population--by giving an absolute safety -to the insured, by virtue of its capital,--it is often productive of -inestimable good. And at this period the notion of insurance was vague -and indefinite. In agricultural districts especially, even among the -most thoughtful, it was rarely heard of. One story will illustrate -this more than a hundred assertions. The agent of the Rock Proprietary -Company met in the north of Scotland with an intelligent man who farmed -some thousand acres. This estate he delighted to cultivate; and though -the period was long before that when science was employed by the -agriculturist, he invested all his profits in the estate he rented. -With great and proper pride he took the life assurance agent over his -land, pointed to his improvements, and boasted his gains. - -When they returned to the farm-house, the agent, who saw that if his -host died, all that he had done would be for his landlord’s benefit, -only said to him, “You must have spent a large sum on this estate.” - -“Many thousands,” was his curt reply. - -“And if you die,” was the shrewd retort, “your landlord will receive -the benefit, and your wife and daughter be left penniless. Why not -insure your life?” - -The man rose, strode across the room, and drawing himself up as if -to exhibit his huge strength, said, almost in the words of one of -Sir Bulwer Lytton’s heroes[33], “Do I look like a man to die of -consumption?” - -The agent was not daunted--he persevered, explained his meaning, -enlisted the kindly feelings of his host, persisted in asking him how -much he would leave his family, and at last induced him to listen. They -examined his accounts, and found that he could spare about 120_l._ a -year. The village apothecary was almost immediately sent for, the life -was accepted, and policies were granted for 3000_l._ - -In less than nine months this man, so full of vigorous health, took -cold, neglected the symptoms, and died, leaving only the amount for -which he had assured his life to keep his family from want. - -There is much in favour of life assurance in this little anecdote, and -there is much too in favour of the proprietary system, for a man like -this would not have risked his savings with a mutual insurance society. - -The Edinburgh Life Assurance followed in 1823, having been originated -by the legal bodies in Edinburgh at the same time, and very much upon -the same principles, with the Law Life in London. The Scottish Union -ensued in 1824, the Aberdeen in 1825, and the Scottish Amicable in -1826. - -It is one advantage of all new life companies that they assist in -forwarding a principle; and there is another feature in them. In most -other speculative societies, their failure produces very painful -results. A railway sees its capital spent, and is obliged to make -farther calls upon its proprietors. An unsuccessful canal company has -only the certainty of having fed and demoralised some thousands of -stalwart navigators in exchange for the ruin of its shareholders, while -the failure of a mine is the melancholy close of many a bright hope. -But it is not so bad with a life assurance company. The insured--except -in offices originated with a fraudulent design, such as the West -Middlesex--has never yet been deceived by the failure of a policy. To -take Scotland as an instance, many of the companies have not been able -to maintain their ground; but in no one case has the policy-holder -risked his premium or lost his assurance. Thus the Scottish Life, when -unable to maintain itself, handed its business to the Mercantile, -which then became responsible. When the Mercantile ceased to be -an independent company, it transferred its policies to the “Life -Association.” The “Scottish Masonic” and the “Bon Accord” business was -taken up by the Northern. In no instance, therefore, has any legitimate -company failed in its engagements. The public has never been -scandalised with tales and traditions of wrong and ruin. Nor has the -improvident man been strengthened in his improvidence, by being able to -plead losses which others have sustained. The progress of the science -in Scotland has been calm and equable. Throughout all her districts, -its agents are spreading a knowledge of its benefits. There are enough -and to spare of companies; and while giving the following list, it may -be remarked, that all the offices which are noticed below as having -transferred their business, were fairly and soundly originated. It is -highly creditable to Scotland, that directly they found they were not -successful, their business was at once handed over to other companies:-- - - Scottish Widows’ Fund (mutual). This was the - first life office in Scotland 1815 - - North British (mixed). Commenced fire in 1809 - - ” ” ” life in 1823 - - Edinburgh (mixed). Nine-tenths of the profits - allotted to the policies 1823 - - Scottish Union (mixed), divides two-thirds of - the nett profits every five years 1824 - - Standard Life (mixed). Commenced under the - title of the Life Insurance Company of - Scotland, and took its present name in 1832 1825 - - Scottish Provincial (mixed). Commenced under - the title of the Aberdeen Fire and Life - Insurance Office, and took its present - name in 1852. In - 1840, policies with a right to share in the - profits were first issued 1825 - - Scottish Amicable (mutual) 1826 - - Scottish Equitable (mutual) 1831 - - Caledonian (mixed). Originally fire 1805 - - ” ” Extended to life 1833 - - Five-sixths of the profits allotted to the policies. - - Northern (mixed). Commenced under the title of - the North of Scotland, and took its present name - in 1848. Divides 90 per cent. of its profits - among the policy-holders 1836 - - Scottish Provident (mutual) 1837 - - City of Glasgow (mixed). Annual investigations - and yearly bonuses. At the end of five years - a policy-holder may live out of the limits - of Europe without extra premium 1838 - - Life Association of Scotland (mixed). Commenced - as the Edinburgh and Glasgow, and took its - present name about 1841 1839 - - English and Scottish Law Life (mixed) 1839 - - National (mixed). Commenced fire 1841 - - ” ” ” life 1843 - - Four-fifths of the profits allotted to the policies. - - - _Offices that have transferred their Business._ - - Bon Accord, Life 1845 - - Transferred to _the Northern_ in 1849. - - Commercial, Life (Head Office in Glasgow) 1840 - Transferred to _the Standard_ in 1846. - - East of Scotland, Life (Head Office in Dundee) 1844 - Transferred to _the Colonial_ in 1852. - - Experience, Life 1843 - Transferred to _the Standard_ in 1850. - - Friendly, Fire 1720 - Transferred to _the Sun_ in 1847. - - Hercules, Fire and Life, Fire 1809 - - ” ” Life 1832 - - Transferred to _the Scot. Union_, life - in 1835, and fire in 1849. - - Mercantile, Life 1844 - - Transferred to _the Life Association_ - in 1850. - - Scottish Life and Guarantee, Life 1844 - Transferred to _the Mercantile_ in 1848. - - Scot. Masonic (originally Freemason’s, Life) 1844 - Transferred to _the Northern_ in 1848. - -Thus, in Scotland one office was established in 1815; five from 1816 to -1825; three from 1826 to 1838; six from 1836 to 1845. - -The united incomes of these are not far short of 1,400,000_l._; and the -assurances now in force amount to about 33,000,000_l._ - -THE END. - -FOOTNOTE: - -[33] Night and Morning. - - * * * * * - - LONDON: - SPOTTISWOODES and SHAW, - New-street-Square. - - * * * * * - -Transcriber’s Notes: - -The original of this book contained a catalog, dated March 31, 1853, of -new works in general and miscellaneous literature published by Messrs. -Longman, Brown, Green, and Longmans, Paternoster Row, London, that is -available as the separate Project Gutenberg EBook #49620. - -Footnotes have been moved to the end of each chapter and relabeled -consecutively through the document. - -Punctuation has been made consistent. - -Variations in spelling and hyphenation were retained as they appear in -the original publication, except that obvious typos have been corrected. - -Additional comments: - -p. 15: Based on the preceding table, the 60 in the second table should -be 66 and the 80 should be 86. - -p. 169: Demerell may be a misspelling of Damerel (at Stoke Demerell, in -Devonshire) - - - - - -End of Project Gutenberg's Annals, Anecdotes and Legends, by John Francis - -*** END OF THIS PROJECT GUTENBERG EBOOK ANNALS, ANECDOTES AND LEGENDS *** - -***** This file should be named 50380-0.txt or 50380-0.zip ***** -This and all associated files of various formats will be found in: - http://www.gutenberg.org/5/0/3/8/50380/ - -Produced by deaurider, Craig Kirkwood, and the Online -Distributed Proofreading Team at http://www.pgdp.net (This -file was produced from images generously made available -by The Internet Archive.) - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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- page-break-after: always; - margin: 0; - padding-top: 6em; - } -} -/*End half-title page CSS*/ - -/*CSS markup for handhelds -- put at end of CSS*/ -@media handheld -{ - h2.no-break - { - page-break-before: avoid; - padding-top: 0; - } - - .poetry - { - display: block; - margin-left: 1.5em; - } -} -/*End CSS for handhelds*/ - - </style> - </head> -<body> - - -<pre> - -The Project Gutenberg EBook of Annals, Anecdotes and Legends, by John Francis - -This eBook is for the use of anyone anywhere in the United States and most -other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms of -the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll have -to check the laws of the country where you are located before using this ebook. - -Title: Annals, Anecdotes and Legends - A Chronicle of Life Assurance - -Author: John Francis - -Release Date: November 4, 2015 [EBook #50380] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK ANNALS, ANECDOTES AND LEGENDS *** - - - - -Produced by deaurider, Craig Kirkwood, and the Online -Distributed Proofreading Team at http://www.pgdp.net (This -file was produced from images generously made available -by The Internet Archive.) - - - - - - -</pre> - - -<p><span class="pagenum"><a id="Page_i">[i]</a></span></p> - -<p id="half-title">ANNALS, ANECDOTES, AND LEGENDS<br /> -<span class="smallfont">OF</span><br /> -LIFE ASSURANCE.</p> - -<div class="chapter"></div><!--Page break for ePub--> - -<hr class="tb" /> - -<p><span class="pagenum"><a id="Page_ii">[ii]</a></span></p> - -<p class="center"> -<span class="smcap">London</span>:<br /> -<span class="smcap">Spottiswoodes and Shaw</span>,<br /> -New-street-Square.<br /> -</p> - -<hr class="tb" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_iii">[iii]</a></span></p> - - - - -<h1>ANNALS,<br /> -ANECDOTES AND LEGENDS:<br /><br /> -<span class="xlargefont">A Chronicle</span><br /> -<span class="mediumfont">OF</span><br /> -<span class="xlargefont">LIFE ASSURANCE.</span></h1> - - -<p class="center" style="margin-top:3em">BY<br /> -<span class="xlargefont">JOHN FRANCIS,</span></p> - -<p class="center"><span class="smallfont">AUTHOR OF</span><br /> -“THE HISTORY OF THE BANK OF ENGLAND,” ETC.</p> - -<div class="boxcenter"> -<p style="margin-top:3.5em">“Tragedy never quits the world—it surrounds us everywhere. We -have but to look, wakeful and vigilant, abroad; and, from the age of -Pelops to that of Borgia, the same crimes, though under different garbs, -will stalk in our paths.”—<span class="smcap">Sir E. Bulwer Lytton.</span></p> - -<p style="margin-top:1.5em">“Murder?”<br /> -“Murder most foul, as in the best it is;<br /> -But this most foul, strange, and unnatural.”—<span class="smcap">Shakspeare.</span></p> -</div> - -<p class="center largefont" style="margin-top:2.5em"> -LONDON:<br /> -LONGMAN, BROWN, GREEN, AND LONGMANS.<br /> -1853.<br /> -</p> - -<hr class="tb" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_v">[v]</a></span></p> - -<div class="boxcenter1"> - -<p class="center xlargefont">Dedicated, by Permission,</p> - -<p class="center">TO</p> - -<p class="center">THE MOST NOBLE</p> - -<p class="center xlargefont">THE MARQUESS OF LANSDOWNE.</p> - -<p class="center" style="margin-top:2em; line-height:2em"><span class="largefont">THIS NARRATIVE,</span><br /> -RECORDING THE PROGRESS OF LIFE ASSURANCE,<br /> -AND<br /> -<span class="largefont">RELATING THE SERVICES OF SIR WILLIAM PETTY,</span><br /> -THE FATHER OF POLITICAL ECONOMY,<br /> -IN THE CAUSE OF VITAL STATISTICS,<br /> -IS, BY PERMISSION,<br /> -RESPECTFULLY DEDICATED TO HIS DESCENDANT,<br /> -THE MOST NOBLE<br /> -<span class="largefont">HENRY PETTY, THIRD MARQUESS OF LANSDOWNE,</span><br /> -BY HIS LORDSHIP’S<br /> -MOST OBEDIENT AND VERY DEVOTED SERVANT,<br /> -<span class="largefont">JOHN FRANCIS.</span></p> - -<p><em>Shooter’s Hill, May 23. 1853.</em></p> -</div> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_vii">[vii]</a></span></p> - - - - -<h2>PREFACE</h2> - - -<p>The subject of Life Assurance is so important, that -any endeavour to trace its history, however imperfect, -may not be unacceptable. Men toil, work, slave, -nay, almost sin for their families; they do everything -but insure: and should this volume induce any one -to avail himself of the benefits of Life Assurance who -has not hitherto done so, or should it attract the attention -of others who are ignorant of the system, the -writer will not deem his labour entirely in vain.</p> - -<p>The many legends and traditions of the subject, -form a page from the romance of Mammon, which, -remarkable as some of the stories may appear, and -fearful as many of them are, form but a small portion -of the sad and stern realities attached to the annals of -Life Assurance.</p> - -<p>The simple fact, that the payment of a small yearly<span class="pagenum"><a id="Page_viii">[viii]</a></span> -sum will at once secure the family of the insured -from want, even should he die the day after the first -premium is paid, is sufficiently singular to the uninitiated; -but it is more so, that very few avail -themselves of an opportunity within the reach -of all.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_ix">[ix]</a></span></p> - - - - -<h2>CONTENTS.</h2> - - -<div class="center"> -<table class="toc" border="0" cellpadding="1" cellspacing="0" summary="CONTENTS"> -<tr><td class="tocchapter" colspan="2">CHAPTER I.</td></tr> -<tr><td class="toctitle">Origin of the Doctrine of Probabilities. Essay -of John de Witt. The Plague. First Bills of Mortality. Captain John -Graunt—his Opinions, Life, and Estimates. Curious Terms in the old -Registers—their Explanation. Life of Sir William Petty. His Career -and Character</td><td class="tocpage">Page <a href="#Page_1">1</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. II.</td></tr> -<tr><td class="toctitle">Practice of Assurance by the Romans. Saxon -Approximation to Friendly Societies. Marine Assurance. Danger of Navigation, -and its Effect on Life Assurance. Assurance for Palmers and Pilgrims to the -Holy Land. Bulmer’s Office of Assurance. Assurance of Navigators, Merchants, -and Corporations. Uncertainty of Life. Annuities. Audley the Usurer. His History. -Anecdotes concerning him. The Usurer’s Widow</td><td class="tocpage"><a href="#Page_25">25</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. III.</td></tr> -<tr><td class="toctitle"><span class="pagenum"><a id="Page_x">[x]</a></span>Judah -Manasseh Lopez, the Jew Usurer. His Trick on the Duke of Buckingham. Suspicions -concerning him. The Increase of London. Population of London. Proclamations. Halley’s -Movement in Life Assurance. His Tables</td><td class="tocpage"><a href="#Page_46">46</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. IV.</td></tr> -<tr><td class="toctitle">First Trial concerning Life Assurance. The Mercers’—its -Establishment and System. The Sun—John Povey, its Projector—his Character. -Wagers on the Life of King William. New Assurances. The Amicable—the Mode in which -it was established. New Annuity Societies—Anecdotes concerning them—Close of -their Career</td><td class="tocpage"><a href="#Page_56">56</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. V.</td></tr> -<tr><td class="toctitle">Royal Exchange and London Assurance—their Rise -and Progress. Bubble Era. Epigrams. Opposition to the New Companies. Accusations -against the Attorney-General. List of Assurance Companies. Extraordinary -Character of many. Remarkable Career of Le Brun. Directors in -Trouble</td><td class="tocpage"><a href="#Page_72">72</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. VI.</td></tr> -<tr><td class="toctitle">Sketch of De Moivre—his Doctrine of Chances. -Kersseboom. De Parcieux. Hodgson. Dodson. First Fraud in Life Assurance—its -romantic Character. Thomas Simpson. Calculations of De Buffon</td><td class="tocpage"><a href="#Page_87">87</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. VII.</td></tr> -<tr><td class="toctitle">Rise and Progress of the Equitable—its -Dangers and its Difficulties. Comparative Premiums. Sketch of Mr. -Morgan—his Opinions. Singular Attempt to defraud the Equitable—Death -of the Offender. Attempt of Government to rob the Offices</td><td class="tocpage"><a href="#Page_108">108</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. VIII.</td></tr> -<tr><td class="toctitle"><span class="pagenum"><a id="Page_xi">[xi]</a></span>Bubble -Annuity Companies—their Promises. Effect on the People. Dr. Price—his -Life. Sir John St. Aubyn. The Yorkshire Squire—Assurances on his Life—his -Suicide.</td><td class="tocpage"><a href="#Page_125">125</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. IX.</td></tr> -<tr><td class="toctitle">Gambling in Assurances on Walpole. George II. -The Jacobite Prisoners. The German Emigrants. Admiral Byng. John Wilkes. -Young Mr. Pigot and old Mr. Pigot. Lapland Ladies and Lapland Rein-deer. -Insurance on Cities. Gambling on the Sex of D’Eon. Public Meeting. -Disappointment of the Citizens. Trial concerning D’Eon. Lord Mansfield’s -Decision</td><td class="tocpage"><a href="#Page_140">140</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. X.</td></tr> -<tr><td class="toctitle">Fraudulent Annuities—Act to prevent -them. Salvador the Jew. David Cunningham, the Scotchman—his -Career—his Annuity Company—its Success—his double -Character—his Fate. Mortuary Registration. John Perrott—his -Passion for China—Trick played him. Curious Fraud. Westminster Society. -Pelican</td><td class="tocpage"><a href="#Page_157">157</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. XI.</td></tr> -<tr><td class="toctitle">Legal Decisions. William Pitt, and Godsall -and Co. Romance of Life Assurance. The Globe. New Companies. The -Alliance—its Promoters. Improvement of the Value of Life -consequent on the Improvement in Society—its Description. -Trial concerning the Duke of Saxe Gotha. Important Legal -Decision</td><td class="tocpage"><a href="#Page_176">176</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. XII.</td></tr> -<tr><td class="toctitle">Government Annuities—Opinions -concerning them—Great Loss to the State. Mr. Moses Wing’s -Letter. Mr. Finlaison. New Annuity Act—its Advantages to Jobbers. -Endeavours to procure old Lives. Anecdotes concerning them. Philip -Courtenay</td><td class="tocpage"><a href="#Page_199">199</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. XIII.</td></tr> -<tr><td class="toctitle"><span class="pagenum"><a id="Page_xii">[xii]</a></span>Fraud -in Life Assurance Companies—its Extent—its remarkable -and romantic Character. Janus Weathercock. Helen Abercrombie—her -Death. Forgery of Wainwright—his Absence from England—his -Return, Capture, and Death. Independent and West Middlesex—its Rise, -Progress, and Ruin of all concerned</td><td class="tocpage"><a href="#Page_213">213</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. XIV.</td></tr> -<tr><td class="toctitle">Select Committee of 1841. Instances of -Deception. Publication of Accounts. New Companies—Assertions -about them—their Importance—Suggestions concerning -them</td><td class="tocpage"><a href="#Page_252">252</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. XV.</td></tr> -<tr><td class="toctitle">Extension of Assurance. Society for -Assurance against Purgatory. Commercial Credit Company. Guarantee -Society. Medical, Invalid, and General. Agricultural Company. -Rent Guarantee. Railway Passengers. Law, Property, and Indisputable -Societies. Disputed Policy</td><td class="tocpage"><a href="#Page_282">282</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. XVI.</td></tr> -<tr><td class="toctitle">The Banker’s Mistress. The elder Napoleon. -The deceived Director. The murdered Merchant. The Corn Law League -and the Cutler. The Unburied buried. The disappointed Suicide. A -Night Adventure</td><td class="tocpage"><a href="#Page_295">295</a></td></tr> -<tr><td class="tocchapter" colspan="2">CHAP. XVII.</td></tr> -<tr><td class="toctitle">Scotch Life Assurance. Scottish Widows’ -Fund—its Directors. North British. The Farmer’s Fate. -Edinburgh Life. List of Scotch Companies</td><td class="tocpage"><a href="#Page_317">317</a></td></tr> -</table></div> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_1">[1]</a></span></p> - -<p class="center xxlargefont boldfont" style="margin-bottom:1em">ANNALS, ANECDOTES, AND LEGENDS<br /> -<span class="mediumfont">OF</span><br /> -LIFE ASSURANCE.</p> - - -<h2 class="no-break">CHAPTER I.</h2> - -<p class="chapter-subheading">ORIGIN OF THE DOCTRINE OF PROBABILITIES.—ESSAY OF JOHN -DE WITT.—THE PLAGUE.—FIRST BILLS OF MORTALITY.—CAPTAIN -JOHN GRAUNT—HIS OPINIONS, LIFE, AND ESTIMATES.—CURIOUS -TERMS IN THE OLD REGISTERS—THEIR EXPLANATIONS.—LIFE -OF SIR WILLIAM PETTY—HIS CAREER AND CHARACTER.</p> - - -<p>In the early annals of this country, there was no -foundation whatever on which to form a theory of -the value of life. The wars of succession, intestine -strife, and civil discord, killed their thousands. Disease, -arising from exposure to the air, from foul -dwelling-places, and from an absence of the comforts -of advanced civilisation, slew its tens of thousands. -They who were spared by the sword and escaped the -pestilence, perished too often by the fire of persecution. -Death came in forms which were governed by<span class="pagenum"><a id="Page_2">[2]</a></span> -no known laws; and, notwithstanding the insecurity -of life, there was no possibility of making a provision -for survivors. To this we owe that kind consideration -for the widows and orphans of their members, -which is observable in many of the city corporate -bodies.</p> - -<p>Commerce was yet in its infancy, and all the -capital which could be collected, was necessary to its -development. It was, indeed, on this that the wisdom -of the executive was concentrated. Every half -century brought rumours of some new land which -was to enrich the adventurers who combined to explore -it. The most gallant spirits of England sailed, -and not always in the stoutest vessels, to explore a -new passage, or to trade on the shores of some new -country, alike indifferent where they went or how -long they remained, provided they could bring home -some attractive article of merchandise. Every energy -was, therefore, devoted to the extension of our mercantile -interests; and although Lombards, goldsmiths, -Jews, and usurers, frequently granted annuities, there -appears to have been no united attempt to grant -assurances on lives.</p> - -<p>This universal spirit of commerce produced, however, -marine assurance very early, while the gradual -progressive movements made in science and philosophy,<span class="pagenum"><a id="Page_3">[3]</a></span> -prepared the way for assurance on life. The -rude notions of an uncultivated age were succeeded -by broader and more statesmanlike views; the Roman -Church, with its narrow notions and its denunciations -of progress, ceased to exist; men feared no -longer to give a free exposition of their principles; -and the Provincial Letters of Pascal prove that a new -era had arrived. The doctrine of probabilities,—originated -at a gaming-table,—so curious, so interesting, -and at the same time so necessary to the present -subject, was first popularised by this great genius; -but we are indebted to Holland for its earliest application -to annuities; as when the States-General resolved -to negotiate some life payments, the pensionary, -John de Witt, added one more obligation to -the many received from this distinguished man, by -employing the theory which Pascal suggested, for the -requirements of his government. His report and treatise -on the terms of life annuities is the first document -of the kind, and a most important paper it is. -Step by step it explains the grounds on which the -proposition of its author was based, and by which he -arrived at the conclusion that the value of a life -annuity, in proportion to one for a term of twenty-five -years, was really “not below, but certainly above, -sixteen years’ purchase.” It is probable that from<span class="pagenum"><a id="Page_4">[4]</a></span> -political motives this paper was suppressed; but -John de Witt was certainly the first who thought of -applying mathematical calculations to political questions, -and the first who attempted to fix the rate of -annuities according to the probabilities of life. The -essay of the pensionary was, however, but little -known to the public, and had no sensible influence on -the subsequent progress of the science.</p> - -<p>Leibnitz, whose hobby was to investigate the -theory of chances<a id="FNanchor_1_1" href="#Footnote_1_1" class="fnanchor">[1]</a>, first drew attention to this production; -but though often alluded to, its very title -was not correctly given, and we are indebted to the -researches of Mr. Hendriks for its rescue from an -unmerited oblivion, and for the able translation of -an essay which, had it been published at the time it -was written, would have exercised an important -influence on its subject.<a id="FNanchor_2_2" href="#Footnote_2_2" class="fnanchor">[2]</a> Up to the end of the 17th -century, therefore, as there were no laws to calculate -the chances of mortality, life annuities were granted -according to the caprice of the usurer, or the ignorance -of the annuitant; and there is no occasion to<span class="pagenum"><a id="Page_5">[5]</a></span> -remind the reader that the barbaric splendour of the -Tudors witnessed customs which, rendering the conditions -of life terribly uncertain, had a depressive -effect on the science of assurance. The smallpox, -a frequent and fearful visitor, was only met by an -attempt to stare it out of countenance; for to effect -a cure the patient was clothed in scarlet, the bed -was covered with scarlet, and the walls were hung -with scarlet; so simple and so ignorant were the -leeches of the early ages. Dysentery, then known by -its Saxon synonyms of the “flux,” “scouring,” and -“griping,” daily carried off the unwashed artificers of -old London. Nor were dirty habits confined to the -mere populace; the banquetting-halls of the palace -were rarely or ever cleansed; the accumulations of -months were left on the floors, which, to hide the -dirt and preserve an appearance of decency, were -periodically covered with rushes.<a id="FNanchor_3_3" href="#Footnote_3_3" class="fnanchor">[3]</a> In such places<span class="pagenum"><a id="Page_6">[6]</a></span> -disease was ever ready to spring into vigorous life. -Every few years, fevers which had been lurking in -alleys and ravaging obscure places, devastated the -city under various names. At last, that awful sickness -which, even at the present day, chills the blood -but to think of it, seemed to be naturalised in this -country, under the name of the plague; but to it we -owe that the initiative step was taken in England, in -founding the first principles which govern life assurance, -for to it we owe our earliest Bills of Mortality.</p> - -<p>Within a period of seventy years, London had -been visited by it five separate times; 145,000 having -died from its collective attacks. As the visitation -had been governed by no known system, as it came -without any apparent cause and disappeared quite as -capriciously, the Londoners never felt safe from its<span class="pagenum"><a id="Page_7">[7]</a></span> -re-appearance. It seemed always hovering over them; -and as the intervals between its departure and return -were sometimes only eleven years, and had never exceeded -twenty-nine, its harassing impressions were -constantly on the minds of the citizens. Its visits did -not allow time even to soften or subdue the painful -remembrances connected with it; and were it necessary, -a reference to the letters, diaries, and chronicles -of the day, would show that the name of the plague -turned men pale, and predisposed their constitutions -for its reception; that the very thought made the -merchant regardless of ’Change and of counting-house; -and that the tradesman shuddered at the -memory of a disease which slew his children, depopulated -London, and destroyed his business.</p> - -<p>The reports of the approach of the plague were, -then, a positive and practical evil; and in 1592, when -30,561 died of the disease, the rumours of its horrors, -appalling as these were in reality, were enormously -exaggerated. An attempt to quiet public feeling by -correctly indicating its progress was, therefore, made -in the Bills of Mortality; and though they were not -at first maintained consecutively, they were afterwards -found so useful as to be continued from 29th -December, 1603, to the present time.<a id="FNanchor_4_4" href="#Footnote_4_4" class="fnanchor">[4]</a> The mode of<span class="pagenum"><a id="Page_8">[8]</a></span> -their production was simple. When any one died -it was indicated either by tolling or ringing a bell, -or by bespeaking a grave of the sexton. The sexton -informed the searchers, who hereupon “repair to the -place where the dead corpse is, and by view of the -same and by other inquiries they examine by what -disease or casualty the corpse died. Hereupon they -make their report to the parish-clerk; and he, every -Tuesday night, carries in an account of all the burials -and christenings happening that week, to the parish-clerks’ -hall. On Wednesday, the general account is -made up and printed; and on Thursday, published and -disposed of to the several families who will pay 4<em>s.</em> -per annum for them.” In 1629, two editions of the -weekly bills were printed, one with the casualties and -diseases, and the other without. For a long time -these papers were made but little use of by the -public. A writer of the day says they were examined -at the foot, to see whether the burials increased -or decreased; they were glanced at for the<span class="pagenum"><a id="Page_9">[9]</a></span> -casualties, as a matter of gossiping interest; and in -the plague time, the progress of the pest was closely -watched by the courtiers and the nobles, that they -might escape its ravages; and by the citizens, with -that morbid feeling which is as much attached to -extraordinary calamities as to great crimes. But -though this might be the case ordinarily, such was -not the view with which a citizen of London, by -name John Graunt, thought they should be regarded. -This man was the author of the first English work -on the subject, entitled “Natural and Political Observations -on the Bills of Mortality.” Little is -known of his antecedents, save that he was the son of -one Henry Graunt of Lancaster, that he was born -in “Birching Lane,” and that he had the ordinary -education granted to the sons of tradesmen. He -came early into business, passed through the chief -offices of his ward with reputation, and became -captain and major of the train-bands, when such an -office involved danger as well as honour.</p> - -<p>All that has hitherto been said of Graunt might be -said of many. But Graunt’s genius was far from -being confined within these limits. It shone through -all the disadvantages of mean birth and doubtful -breeding. It broke down the barriers of rank and -the limits of position, and gave him the first thought<span class="pagenum"><a id="Page_10">[10]</a></span> -of a design, which was the earliest movement in economical -arithmetic, and the closest approximation to -the data on which life assurance is founded.</p> - -<p>The exact time is not known when he began to -collect and to consider the Bills of Mortality; but he -says his thoughts had been turned that way for -several years, before he had any design of recording -certain notions he had formed. Until he published -his volume, a more than Egyptian darkness was on -the eyes of the people, and he had to combat some -very singular notions. Among others, that London -was to be reckoned by millions, that the proportion -of women to men was three to one, and that in -twenty-six years the population had increased two -millions. “Men of great experience in this city -talk seldom under millions of people to be in London.” -To grapple with these and similar errors was Graunt’s -object; and it is easy to comprehend, that his readers -rebelled against assertions which lowered the pretensions -of their favourite city. It is probable that he -made some enemies by his book; as when the fire of -London occurred, he was accused of having gone to -the reservoir of the New River Company, and of -cutting off the supply of water. As, however, he had -changed, or was on the point of changing his creed -from puritanism to papistry, and the papists had the<span class="pagenum"><a id="Page_11">[11]</a></span> -credit of originating the fire; the accusation was -possibly a party one, and is of little importance now. -It is with his work on the population we have to -deal, and this, which contained “a new and accurate -thesis of policy, built on a more certain reasoning than -had yet been adopted,” was first published in 1664; -meeting with such an extraordinary reception that -another edition was called for in the following year, -the book being spoken of wherever books then made -their way. It formed a taste for these studies among -thinking men; and the fact is greatly to the author’s -credit, that he made a bold, if fruitless, attempt to -deduce the law of life from bills of mortality which -did not record the ages as well as the deaths of the -people. In addition to the London bills, he gave -one for a country parish in Hampshire; and in the -later editions he added one for Tiverton, and another -for Cranbrook. Charles II. recommended the Royal -Society to elect him one of their members, charging -the Fellows “that if they found any more such -tradesmen, they should admit them all;” and immediately -after the appearance of the work, Louis -XIV. ordered the most exact register of births and -deaths to be kept in France, that was then known in -Europe. A few extracts from this rare and curious -work will at once indicate its character, and show<span class="pagenum"><a id="Page_12">[12]</a></span> -the simplicity of the existing information; but in -their perusal the reader will do well to consider, that -Graunt was the first who wrote on the subject; that -he had but slight foundations for his calculations; and -that with all these difficulties, he was very successful -in his conclusions. He says:—</p> - -<p>“There seems to be good reason why the magistrate -should himself take notice of the number of -burials and christenings: viz., to see whether the -city increase or decrease in people, whether it increase -proportionably with the rest of the nation, -whether it be grown big enough. But,” he adds, -“why the same should be known to the people, -otherwise than to please them as with a curiosity, I -see not.</p> - -<p>“Nor could I ever yet learn from the many I -have asked, and those not of the least sagacity, to -what purpose the distinction between males and -females is inserted, or at all taken notice of; or why -that of marriages was not equally given in. Nor -is it obvious to every body why the account of -casualties is made. The reason which seems most -obvious for this latter is, that the state of health in -the city may at all times appear.” In another -page he writes that “7 out of every 100 live in -England to the age of 70.” “It follows from hence<span class="pagenum"><a id="Page_13">[13]</a></span> -that, if in any other country more than 7 of the -100 live beyond 70, such country is to be esteemed -more healthy than this of our city.” It must be -remembered, however, that this was very conjectural. -“We shall,” he says, when leading to this -conclusion, “come to the more absolute standard -and correction of both, which is the proportion of -the aged; viz. 15,757 to the total 229,250, that is, -of about 1 to 15, or 7 per cent.; only the question -is, what number of years the searchers call aged, -which I conceive must be the same that David calls -so, viz. 70. For no man can be said to die properly -of age, who is much less.”</p> - -<p>Out of the above 229,250 he estimates that 86 -were murdered; and, alluding to a peculiar disease -which had arisen, intimates that the proportion of -males was greater than that of females, in the words, -“for since the world believes that marriage cures it, -it may seem indeed a shame that any maid should -die unmarried, when there are more males than -females; that is, an overplus of husbands to all that -can be wives.” “In regular times when accounts -were well kept, we find not above 3 in 200 died in -childbed; from whence we may probably collect -that not 1 woman of 100, I may say of 200, dies in -her labour, forasmuch as there may be other causes<span class="pagenum"><a id="Page_14">[14]</a></span> -of a woman’s dying within the month.” He then -attempted to show the population of London, from -which he had been a long time prevented by his -religious scruples; but his arithmetical mind was provoked -by a “person of high reputation” saying there -were “two millions less one year than another.” -To ascertain the number he made many very interesting -calculations, and came to this conclusion:—“We -have, though perhaps too much at random, -determined the number of the inhabitants of London -to be about 384,000.” He then gave the following -table, which is perhaps one of the most remarkable -we have, the period and the material being taken -into consideration:—</p> - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="mortality table"> -<tr><td align="left">Of 100, there die within the first six years</td><td align="right" style="padding-left:1.5em">36</td></tr> -<tr><td align="left">The next ten years, or decad</td><td align="right">24</td></tr> -<tr><td align="left">The second decad</td><td align="right">15</td></tr> -<tr><td align="left">The third <span style="padding-left:1.8em">”</span></td><td align="right">9</td></tr> -<tr><td align="left">The fourth <span style="padding-left:1.25em">”</span></td><td align="right">6</td></tr> -<tr><td align="left">The fifth <span style="padding-left:1.95em">”</span></td><td align="right">4</td></tr> -<tr><td align="left">The sixth <span style="padding-left:1.75em">”</span></td><td align="right">3</td></tr> -<tr><td align="left">The seventh <span style="padding-left:0.7em">”</span></td><td align="right">2</td></tr> -<tr><td align="left">The eighth <span style="padding-left:1.75em">”</span></td><td align="right">1</td></tr> -</table></div> - -<p>From whence it follows that, of the said 100 there -remain alive—</p> - -<p><span class="pagenum"><a id="Page_15">[15]</a></span></p> - -<div class="center"> -<table id="Ref_15" border="0" cellpadding="1" cellspacing="0" summary="cumulative mortality table"> -<tr><td align="left">At the end of</td><td align="right">6</td><td align="left" style="padding-left:0.5em">years</td><td align="right" style="padding-left:1.5em">64</td></tr> -<tr><td align="center">”</td><td align="right">16</td><td align="center">”</td><td align="right">40</td></tr> -<tr><td align="center">”</td><td align="right">26</td><td align="center">”</td><td align="right">25</td></tr> -<tr><td align="center">”</td><td align="right">36</td><td align="center">”</td><td align="right">16</td></tr> -<tr><td align="center">”</td><td align="right">46</td><td align="center">”</td><td align="right">10</td></tr> -<tr><td align="center">”</td><td align="right">56</td><td align="center">”</td><td align="right">6</td></tr> -<tr><td align="center">”</td><td align="right">60</td><td align="center">”</td><td align="right">3</td></tr> -<tr><td align="center">”</td><td align="right">76</td><td align="center">”</td><td align="right">1</td></tr> -<tr><td align="center">”</td><td align="right">80</td><td align="center">”</td><td align="right">0</td></tr> -</table></div> - -<p>He says gravely of another of his calculations, -“According to this proportion Adam and Eve, -doubling themselves every 64 years of the 5610 -years, which is the age of the world according to -the Scriptures, shall produce far more people than -are now in it. Wherefore, the world is not above -100,000 years old, as some vainly imagine, nor -above what the Scripture makes it.”</p> - -<p>That Captain Graunt was a man of no ordinary -perceptive power let his volume bear witness. In -it he touches on almost every intricate question -which, despised when he wrote, has since been investigated -by Adam Smith, by M’Culloch, by Porter, -by Tooke, and by all to whom political economy is -dear. The following will give some idea of the -character of these studies:—</p> - -<p>“It were good to know how much hay an acre -of every sort of meadow will bear; how many cattle -the same weight of each sort of hay will feed and -fatten; what quantity of grain and other commodities -the same acre will bear in 3 or 7 years; unto<span class="pagenum"><a id="Page_16">[16]</a></span> -what use each sort is most proper; all which particulars -I call the intrinsic value, for there is another -value merely accidental or extrinsic, consisting of -the causes why a parcel of land lying near a good -market may be worth double another parcel, though -but of the same intrinsic goodness; which answers -the question why lands in the north of England are -worth but 16 years purchase and those of the west -above 28.” “Moreover, if all these things were -clearly and truly known, it would appear how small -a part of the people work upon necessary labours -and callings; how many women and children do -just nothing, only learning to spend what others -get; how many are mere voluptuaries, and as it -were, mere gamesters by trade; how many live by -puzzling poor people with unintelligible notions in -divinity and philosophy; how many, by persuading -credulous, delicate, and religious persons that their -bodies or estates are out of tune and in danger; -how many, by fighting as soldiers; how many, by -ministries of vice and sin; how many, by trades of -mere pleasure or ornament; and how many, in a -way of lazy attendance on others; and, on the other -side, how few are employed in raising necessary food -and covering; and of the speculative men how few -do study nature, the more ingenious not advancing<span class="pagenum"><a id="Page_17">[17]</a></span> -much further than to write and speak wittily about -these matters.”</p> - -<p>From this enumeration of his objects it may be -seen that life assurance was not contemplated -by the author when his important book was written; -but as the earliest attempt to number the people, to -classify their callings, and to ascertain the mortality -among them, he assuredly laid the foundations of -this science. His book gave new ideas. It first -propounded the fact, that “the more sickly the years -are, the less fruitful of children they be;” and though -this was wonderfully ridiculed, time has proved that -it was not less strange than true. It formed a taste -for similar inquiries among thinking men. It was -published at a period when, the city being less -populous, there was additional facility in arriving -at certain facts. From that time the subject was -cultivated more and more. Increased attention was -paid to the parish registers. The different diseases -and casualties were gradually inserted; but it was -not till 1728 that the ages of the dead were introduced. -Graunt had forced people to think; and -whatever merit may be ascribed to Sir William -Petty, Daniel King, Dr. Davenant, and others, it -may all be traced to the first observations of Graunt -on the Bills of Mortality. To him we owe the care<span class="pagenum"><a id="Page_18">[18]</a></span> -with which parish registers have since been kept, -and the valuable material they have afforded to the -science of political economy.</p> - -<p>There is something in the old registers which -places us in an almost antediluvian world, and seems -to treat of diseases belonging to another sphere. In -1657, among the deaths are recorded 1162 “chrisomes -and infants;” and few reading in 1853 would -know that infants, until christened, wore a “chrisom” -or cloth anointed with holy unguent, from which -they were denominated chrisomes. “Blasted and -planet” would puzzle the medical student of to-day; -but the latter was simply an abbreviation of “planet -struck,” both words indicating some wasting disease -which the faculty failed to fathom. “Head-mould-shot” -and “horseshoe-head” were meant for water -on the brain, and were very expressive of the shape -of the head in those who suffered from it. Another -complaint was “calenture,” a disease said to be -similar to the <i lang="fr" xml:lang="fr">maladie du pays</i>, for it seized seamen -with an irresistible desire to immerse themselves, the -sea assuming in their eyes the appearance of green -fields. “Tissick” expressed phthisis or consumption. -In 1634, the “rickets” is recorded; and the “rising -of the lights” has been a great puzzle to our medical -historians. A little later than this period is mentioned,<span class="pagenum"><a id="Page_19">[19]</a></span> -“one died from want in Newgate,” “one murdered -in the pillory,” and “one killed in the pillory.” -In the course of twenty years fifty-one are put down -as starved. “But few are murdered, not above -eighty-six of the deaths in twenty years; whereas, -in Paris, few nights escape without their tragedy.” -It must be remembered, in explanation, that medicine -had not assumed the dignity of a science before -the time of Harvey in the middle of the seventeenth -century, but was exercised by “a great multitude -of ignorant persons.” Common artificers, smiths, -weavers, and women took upon them cures, “to the -high displeasure of God, and destruction of many of -the King’s liege people.” Nor was the patient much -better off when the clergy, priests, and poor scholars -left the cure of the mind for the cure of the body. -Such, however, was the position of leech-craft when -Graunt inoculated the people with the love of vital -statistics.</p> - -<p>Contemporary with Graunt, and contributor to his -attempts, was one of those strange, restless, speculative -men whose love of money teaches them how to -procure it, and whose desire to preserve it, by purchasing -land, and leaving their heirs in possession, -makes them the founders of noble English houses. -This was Sir William Petty, who, in his “Essay on<span class="pagenum"><a id="Page_20">[20]</a></span> -Political Arithmetick concerning the Growth of the -City of London, with the Measures, Periods, Causes, -and Consequences thereof,” made a further onward -movement. The earlier portion of his life was passed -in battling with the world. He was as much a -votary of mathematics as of money, and was eminently -successful in both. Although only the son of -a Romney clothier, he was the founder of a house -which has exercised an important influence on English -political life—the House of Lansdowne. He -began his career with nothing, and he closed it possessed -of 15,000<em>l.</em> per annum. He lived at a time -when social economy was but little regarded; and he -published a volume which, however uncertain both -in its data and its conclusions, was an attempt to -apply arithmetic to the economics of life. It is both -unphilosophical and unjust to say, “Petty was nothing -of a politician or statesman, or even of a political -economist. He was merely a political arithmetician; -that is to say, he occupied himself with a -consideration of the circumstances of society and of -the forces and activity that pervaded it, only in so -far as they could be stated and estimated numerically. -His social science was little more than an -affair of ciphering, a business of addition and subtraction.” -It is from the figures of such men that<span class="pagenum"><a id="Page_21">[21]</a></span> -our politicians form deductions, estimate consequences, -frame laws, and create trade. It may be -true that he was no seer, and that he was wrong in -his prophetic capacity; but this is only another -proof that statisticians rarely possess a large development -of the imaginative faculty. That his work -is worth perusal to all who are interested in his subject, -although based on information which was rude -and imperfect, we hope to show. In it he calculates -that—</p> - - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="London historical mortality table"> -<tr><td align="left">Between</td><td align="left">1604 and 1605,</td><td align="left">there died in London</td><td align="right">5,135</td><td></td></tr> -<tr><td align="center">”</td><td align="left">1621 and 1622,</td><td align="center">”</td><td align="right">8,527</td><td></td></tr> -<tr><td align="center">”</td><td align="left">1641 and 1642,</td><td align="center">”</td><td align="right">11,883</td><td></td></tr> -<tr><td align="center">”</td><td align="left">1661 and 1662,</td><td align="center">”</td><td align="right">15,148</td><td></td></tr> -<tr><td align="center">”</td><td align="left">1681 and 1682,</td><td align="center">”</td><td align="right">22,331</td><td>.</td></tr> -</table></div> - -<p>In about forty years he estimated that London had -doubled itself (the number being, when he wrote, -670,000), and that the assessment of London was -about one-eleventh of the whole territory: “Therefore, -the people of the whole may be about 7,369,000; -with which account that of the poll-money, hearth-money, -and the bishops’ late numbering of the communicants, -do pretty well agree.” This founder of -the House of Lansdowne was a good deal puzzled -by the growth of the metropolis. He thus accounts -for it:—“The causes of its growth from 1642 to -1682 may be said to have been as follows: From<span class="pagenum"><a id="Page_22">[22]</a></span> -1642 to 1650, men came out of the country to London -to shelter themselves from the outrages of the civil -wars during that time. From 1650 to 1660, the -royal party came to London for their more private -and inexpensive living. From 1660 to 1670, the -King’s friends and party came to receive his favours -after his happy restoration. From 1670 to 1680, -the frequency of plots and parliaments might bring -extraordinary numbers to the city. But what reasons -to assign for the like increase from 1604 to -1642, I know not, unless I should pick out some remarkable -accident happening in each part of the said -period, and make that to be the cause of this increase -(as vulgar people make the cause of every man’s -sickness to be what he did last eat); wherefore, -rather than so say, I would rather quit what I have -above said to be the cause of London’s increase from -1642 to 1682, and put the whole upon some natural -and spontaneous benefits and advantages that men -find by living in great more than in small societies: -I shall, therefore, seek for the antecedent causes of -this growth in the consequences of the like, considered -in greater characters and proportions.”</p> - -<p>That the people are the life-blood of the kingdom, -was Sir William’s fixed belief; and he said, that if -the whole highlands of Scotland and the whole kingdom<span class="pagenum"><a id="Page_23">[23]</a></span> -of Ireland were sunk in the ocean, so that the -people were all saved and brought to the lowlands of -Great Britain, the Sovereign and the subject in -general would be enriched. The reader will smile -when he hears that a great deal of useful information -was embodied in Sir William Petty’s attempts to -prove the following extraordinary points:—</p> - -<p>1st. That London doubles in 40 years, and all -England in 360 years.</p> - -<p>2nd. That there be in 1682 about 670,000 souls -in London, and 7,400,000 in England and Wales; -and about 20,000,000 of acres in land.</p> - -<p>3rd. That the growth of London must stop of -itself before the year 1800.</p> - -<p>4th. That the world would be fully peopled within -the next 2000 years.</p> - -<p>Burnet says, that Petty wrote the book published -in Graunt’s name; but the bishop was too much of a -gossip to be trusted, and the works which Sir William -claimed are sufficient for his fame. In the midst of -a life devoted to the world, he turned his attention to -abstruse and recondite subjects. That money makes -the man, was his fundamental article of faith. “Instead -of saying with Bacon,” remarks a biographer, -“that knowledge was power, he would have said -that knowledge was <em>l.</em> <em>s.</em> <em>d.</em>... He was all for the<span class="pagenum"><a id="Page_24">[24]</a></span> -practical, and in general for the pecuniary, as the -most comprehensive form of the practical.”</p> - -<p>He was, probably, not a brave man; for he left -England at the most stirring period of its history, -and, when at a later period he was challenged by one -of Cromwell’s knights to fight a duel, he claimed the -privilege of choosing time, place, and weapons, to -throw an air of ridicule over the proceeding. The -place he named was a dark cellar, and the weapon he -chose was a carpenter’s axe. Near-sightedness was -his excuse for both.</p> - -<p>He wrote “An Essay concerning the Growth of the -City of London,” “Observations on the Dublin Bills -of Mortality,” “Two Essays concerning the People of -London and Paris,” “Two Essays on Political Arithmetick;” -and the name of Sir William Petty has -come down to us more as the author of these works, -than as the successful speculator, as the founder of -the Marquisate of Lansdowne, or as one who began -life penniless, and left a princely inheritance. To those -who wish to trace the career of the man who drew -so great a portion of public attention to the foundations -of life assurance, the epitome of his life as -given in his will may prove interesting.</p> - -<p>Having thus endeavoured to trace the early dawn of -the theory, it is now time to chronicle the progress of -life assurance as a social and mercantile requirement.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_25">[25]</a></span></p> - - - - -<h2>CHAP. II.</h2> - -<p class="chapter-subheading">PRACTICE OF ASSURANCE BY THE ROMANS.—SAXON APPROXIMATION -TO FRIENDLY SOCIETIES.—MARINE ASSURANCE.—DANGER -OF NAVIGATION, AND ITS EFFECT ON LIFE ASSURANCE.—ASSURANCE -FOR PALMERS AND PILGRIMS TO THE HOLY LAND.—BULMER’S -OFFICE OF ASSURANCE.—ASSURANCE OF NAVIGATORS, -MERCHANTS, AND CORPORATIONS.—ASSURERS.—UNCERTAINTY -OF LIFE.—ANNUITIES.—AUDLEY THE USURER—HIS HISTORY—ANECDOTES -CONCERNING HIM.—THE USURER’S WIDOW.</p> - - -<p>It has been the endeavour of most writers to trace -the practice, if not the principle, of assurance as far -back as possible; but in doing this, trifles have been -exaggerated into matters of importance. Some -authors contend, on the authority of Livy, that it was -in use during the Second Punic War: others, arguing -from a passage in Suetonius, refer to the Emperor -Claudius, as the first insurer; because, in order to -encourage the importation of corn, he took all the -loss or damage it might sustain upon himself.</p> - -<p>These cases are, however, entirely exceptional, -and certainly indicate no settled plan, as the very -fact that the Emperor guaranteed the contractor -against damage, is a proof that there was no other<span class="pagenum"><a id="Page_26">[26]</a></span> -mode of doing so. Cicero is also quoted, because, in -one of his epistles, he expresses a hope of finding at -Laodicea, security by which he could remit the -money of the republic without being exposed to danger -in its passage.</p> - -<p>If, however, the assertion that marine assurance -was known to the ancients is not demonstrable, there -is no doubt that life assurance was unknown and -unpractised, although the Romans had some wise -regulations in connection with the economy of the -people. From Servius Tullius downwards, they took -a census every fifth year, and the right of citizenship -was involved in any one failing to comply with the -requirements of his age, name, residence, the age of -his wife, the number of his children, slaves, and cattle, -together with the value of his property. They do -not seem to have kept any exact mortuary register, -as the chief object of their census was to levy men -and money for the purpose of conquest. One of the -commentators on the Justinian Code also gave a calculation -of the worth of annuities, which, if it may -be accepted as an expectation of life, gives far more -correct views of its comparative value at various -ages, than was known in Europe until the time of -De Witt.</p> - -<p>Turning from these vague theories of an antique<span class="pagenum"><a id="Page_27">[27]</a></span> -age to our own country, we find that associations -founded on social principles, in which union for good -or for ill, and in which provision was made for contingencies, -were the prominent features, are to be -found in our Saxon annals. The axiom, that “Union -is Strength,” the necessity of providing for casualties -by mutual assistance, in other words, assurance on its -broadest and most rational basis, was practised in the -Saxon guild, the origin of which was very simple: -Every freeman of fourteen being bound to find -sureties to keep the peace, certain neighbours, composed -of ten families, became bound for one another, -either to produce any one of the number who should -offend against the Norman law, or to make pecuniary -satisfaction for the offence. To do this, they raised -a fund by mutual payments, which they placed in -one common stock. This was pure mutual assurance. -From this arose other fraternities. The uncertain -state of society, the fines which were arbitrarily -levied, the liability to loss of life and property in a -country divided against itself, rendered association -a necessity. And if it was necessary before the -Conquest, it became doubly so after it. The mailed -hand of the Norman knight was ever ready to grasp -the goods of the Saxon serf; and the Norman noble -trod the ground he had aided to subdue, with the pride<span class="pagenum"><a id="Page_28">[28]</a></span> -of a conqueror, at the same time that he exercised the -rapacity of an Eastern vizier. To meet the pecuniary -exigencies which were perpetually arising from -fines and forfeitures, and to aid one another in burials, -legal exactions, penal mulcts, payments, and compensation,—ancient -friendly societies, somewhat similar -to those of the present day, were established; and the -rules of one which existed at Cambridge prove its -approximation to the modern mutual friendly association. -The following extracts will satisfy the -reader of the truth of this assertion:—</p> - -<p>“1. It is ordained, that all the members shall swear -by the holy reliques that they will be faithful to each -of their fellow-members, as well as in religious as in -worldly matters; and that, in all disputes, they will -always take part with him that has justice on his -side.</p> - -<p>“2. When any member shall die, he shall be carried -by the whole Society to whatever place of interment -he shall have chosen; and whoever shall not -come to assist in bearing him shall forfeit a sextarium -of honey: the Society making up the rest of -the expense, and furnishing each his quota towards -the funeral entertainment; and also, secondly, for -charitable purposes, out of which as much as is meet -and convenient is to be bestowed upon the church of -St. Etheldred.</p> - -<p><span class="pagenum"><a id="Page_29">[29]</a></span></p> - -<p>“3. When any member shall stand in need of -assistance from his fellow-members, notice thereof -shall be given to the Reeve or Warden who dwells -nearest that member, unless that member be his -immediate neighbour; and the Warden, if he neglect -giving him relief, shall forfeit one pound.<a id="FNanchor_5_5" href="#Footnote_5_5" class="fnanchor">[5]</a> In like -manner, if the President of the Society shall neglect -coming to his assistance, he shall forfeit one pound, -unless he be detained by the business of his lord or -by sickness.</p> - -<p>“4. If any one shall take away the life of a member, -his reparatory fine shall not exceed eight pounds; -but if he obstinately refuse to make reparation, then -shall he be prosecuted by and at the expense of the -whole Society: and if any individual undertake the -prosecution, then each of the rest shall bear an equal -share of the expenses. If, however, a member who -is poor kill any one, and compensation must be made, -then, if the deceased was worth 1200 shillings, each -member shall contribute half a mark<a id="FNanchor_6_6" href="#Footnote_6_6" class="fnanchor">[6]</a>; but if the -deceased was a hind, each member shall contribute -two oræ<a id="FNanchor_7_7" href="#Footnote_7_7" class="fnanchor">[7]</a>; if a Welchman, only one.</p> - -<p>“5. If any member shall take away the life of<span class="pagenum"><a id="Page_30">[30]</a></span> -another member, he shall make reparation to the -relations of the deceased, and besides make atonement -for his fellow-member by a fine of eight pounds, -or lose his right of fellowship to the society. And if -any member, except only in the presence of the king, -or bishop, or an alderman, shall eat or drink with -him who has taken away the life of a fellow-member, -he shall forfeit one pound, unless he can prove, by -the evidence of two witnesses on oath, that he did -not know the person.</p> - -<p>“6. If any member shall treat another member in -an abusive manner, or call him names, he shall forfeit -a quart of honey; and if he be abusive to any other -person, who is not a member, he shall likewise forfeit -a quart of honey.</p> - -<p>“7. If any member, being at a distance from home, -shall die or fall sick, his fellow-members shall send -to fetch him, either alive or dead, to whatever place -he may have wished, or be liable to the stated -penalty; but if a member shall die at home, every -member who shall not go to fetch his corpse, and -every member who shall absent himself from his -obsequies, shall forfeit a sextarium of honey.”</p> - -<p>These rules might have been certified by a Pratt, -so simple and so excellent is their arrangement. But -they must not be regarded as exceptional. The following<span class="pagenum"><a id="Page_31">[31]</a></span> -form a portion of the regulations of another -similar society at Exeter:—</p> - -<p>“1. At each meeting every member shall contribute -two sextaria of barley meal, and every knight -one, together with his quota of honey.</p> - -<p>“2. When any member is about to go abroad, each -of his fellow-members shall contribute five pence; and -if any member’s house is burnt, one penny.</p> - -<p>“3. If any one should by chance neglect the stated -time of meeting, his regular contribution to be -doubled.”</p> - -<p>Well may Mr. Ansell say, “The guilds or social -corporations of the Anglo-Saxons seem, on the whole, -to have been friendly associations, made for mutual -aid and contribution, to meet the pecuniary exigencies -which were perpetually arising.” Nor can the -reader fail to be struck with the resemblance these -rules bear to those of many of the modern societies; -and, as they were framed 800 years ago, the similitude -is somewhat remarkable. After the Conquest -guilds were established for the express promotion of -religion, charity, or trade, and from these fraternities -the various companies and city corporations have -arisen. The following, forming a portion of the rules -of St. Catherine’s Guild, seem like those of some -modern fraternity:—</p> - -<p><span class="pagenum"><a id="Page_32">[32]</a></span></p> - -<p>“If a member suffer from fire, water, robbery, or -other calamity, the guild is to lend him a sum of -money without interest.</p> - -<p>“If sick or infirm, through old age, he is to be -supported by his guild according to his condition.</p> - -<p>“If a member falls into bad courses, he is first to -be admonished, and if found to be incorrigible he is -to be expelled.</p> - -<p>“Those who die poor, and cannot afford themselves -burial, are to be buried at the charge of the -guild.”</p> - -<p>Societies like these, established at a period when</p> - -<div class="poetry-container"> -<div class="poetry"> -<div class="stanza"> -<div class="indentquotebase">“The good old rule, the simple plan,</div> -<div class="indentbase">That they should take who have the power,</div> -<div class="indentbase">And they should keep who can,”</div> -</div></div></div> - -<p>was almost the law of the land, cannot fail to surprise -those who believe that the past was an age of barbarism, -and the present the culminating point of -civilisation. It is certainly a curious truth, that that -combination which has been esteemed a peculiar -feature of modern times, had its antetype in societies -framed when commerce and law were yet in their -infancy.</p> - -<p>Of the rise of assurance generally in Europe the -information is limited enough. Malynes and Anderson -say it was known about the year 1200, and refer<span class="pagenum"><a id="Page_33">[33]</a></span> -to the marine laws of the isle of Oleron; but a -perusal of these has satisfied later writers that the -theory was too hastily adopted, and that the earliest -ordinance on the subject with which we are acquainted -is that of the magistrates of Barcelona, in -1523, to which city must be attributed the honour, -until some authentic evidence to the contrary has -been produced; and we must not omit to notice, -also, that a writer on the “Us et Coutumes de la -Mer” says assurance was long detested by the -Christians, “being classed by them with the unpardonable -sin of taking interest.”</p> - -<p>The first English statute relating to marine assurance -was passed in 1601. The earliest mention -of it occurs in 1548, in a letter written by the Protector -Somerset to his brother the Lord Admiral, -and that it was commonly known in 1558 may be -gathered from a speech of the Lord Keeper Bacon. -In the act alluded to above, “An Act concerning -Matters of Assurances among Merchants,” it is stated, -that “it hath been time out of mind an usage among -merchants, both of this realm and of foreign nations, -when they make any great adventure, specially into -remote parts, to give some consideration of money to -other persons, to have from them assurance made of -their goods, merchandises, ships, and things adventured,<span class="pagenum"><a id="Page_34">[34]</a></span> -or some parts thereof, at such rates and in -such sort as the parties assurers and the parties assured -can agree; which course of dealing is commonly -called a policy of assurance, by means of which -policies of assurance it cometh to pass, upon the loss -or perishing of any ship, there followeth not the -loss or undoing of any man, but the loss lighteth -rather easily upon many than heavily upon few, and -rather upon them that adventure not than on those -that do adventure.”</p> - -<p>If mercantile or marine assurance were so common, -it is difficult to imagine that some approximation -to life assurance, however imperfect or normal -it might be, was entirely unpractised. It must -necessarily have occurred to the captain of a trading -vessel, that the storm or the whirlwind, which might -send his merchandise to the bottom of the sea, might -also send himself with it; and the thought that, if -his goods were worth insuring for the benefit of the -owners, his own life was worth insuring for the -benefit of his family, arose naturally from the risks -he ran. And in those days there was not merely a -risk of storm or whirlwind. Man was more cruel -than the tempest; and the galleys of the Turks were -then as much feared, by the masters of trading vessels, -as the corsairs of the Algerine were dreaded at a later<span class="pagenum"><a id="Page_35">[35]</a></span> -period. They roved the seas as if they were its -masters; they took the vessels, disposed of the cargo -in the nearest market, and sold the navigators like -cattle. The only way of mitigating this terrible -calamity was by some mode of insurance, to procure -their rescue if taken; and we find that to attain so -desirable a result they paid a certain premium to -their merchant freighters, who, in return, bound -themselves to pay a sufficient sum to secure the -navigators’ freedom within fifteen days after the -certificate of their captivity, the ordinary days of -grace being lessened on such policies.</p> - -<p>In those days, also, when crusades were common, -and men undertook pilgrimages from impulse as -much as from religion, it was desirable that the -palmer should perform his vow with safety, if not -with comfort. The chief danger of his journey was -captivity. The ballads of the fifteenth century are -full of stories which tell of pilgrims taken prisoners, -and of emirs’ daughters releasing them; but as the -release by Saracen ladies was more in romance than -in reality, and could not be calculated on with precision, -a personal insurance was entered into, by -which, in consideration of a certain payment, the -assurer agreed to ransom the traveller, and thus the -palmer performed his pilgrimage as secure from a<span class="pagenum"><a id="Page_36">[36]</a></span> -long captivity as money could make him. It is true, -that this care for his personal safety may detract -somewhat from a high religious feeling; but truth is -sadly at variance with sentiment, and the pilgrims of -the crusading period were but too glad to lessen the -chances against them.</p> - -<p>Another mode of assurance was commonly practised, -by which any traveller departing on a long or -dangerous voyage deposited a specific amount in the -hands of a money broker, on condition that if he -returned he should receive double or treble the -amount he had paid; but, in the event of his not -returning, the money broker was to keep the deposit, -which was in truth a premium under another name.</p> - -<p>In 1643 Captain John Bulmer published, “Propositions -in the Office of Assurance, London, for the -blowing up of a boat and a man over London Bridge.” -Nor was this an unusual mode of conducting an enterprise -which was at once ingenious and costly, and -which required an union of capital to support it. In -the address above alluded to, Bulmer, an unsuccessful -engineer, pledged himself to perform his promise -within a month after intimating from the office that -he was ready; “viz. so soon as the undertakers -wagering against him, six for one, should have -deposited enough to pay the expenses of boat and<span class="pagenum"><a id="Page_37">[37]</a></span> -engine,” he also subscribing his own proportion. The -money was not to be paid until the Captain had performed -his contract, when he was to receive it all. -If, however, he should fail, it was to be repaid to the -subscribers. “And all those that will bring their -money into the office shall there be assured of their -loss or gain, according to the conditions above -named.”</p> - -<p>These facts are an evidence that the principle of -assurance was making way, and that men endeavoured -to provide against the chances or mischances -of life, to the best of their ability. Thus, any seafaring -person proceeding on a voyage, could insure -his life for the benefit of his heirs; and if the information -which has come down to us limits the -practice to this particular class, it was because -seamen were the chief visitors to foreign countries, -and for them some such plan was essentially a necessity.</p> - -<p>But there was a further and more remarkable fact -in operation; as an annuitant enjoying a life-rent or -pension could make an insurance on his life, by way -of provision for his family. These, however, were -only exceptional cases, for which the premiums were -probably distressingly heavy; if we may judge from -the fact, that a century later the life of a healthy man,<span class="pagenum"><a id="Page_38">[38]</a></span> -of any age, was estimated at only seven years’ purchase. -The great merchants of that day were chiefly -responsible for such assurances, and many of the corporations -engaged in these and similar adventures. -The following will show that by 1569 the provident -societies of the present day were anticipated. The -writer is illustrating his opinion on usury.</p> - -<p>“A merchant lendeth to a corporation or company -100<em>l.</em>, which corporation hath by statute a grant, -‘that whosoever lendeth such a sum of money, and -hath a child of one year, shall have for his child, if -the same child do live till he be full 15 years of age, -500<em>l.</em> of money; but if the child die before that time, -the father to lose his principal for ever.’ Whether -is this merchant an usurer or not? The law says, if -I lend purposely for gain, notwithstanding the peril -or hazard, I am an usurer.”</p> - -<p>Again: “A corporation taketh 100<em>l.</em> of a man, to -give him 8<em>l.</em> in the 100<em>l.</em> during his life without restitution -of the principal. It is no usury, for that here -is no lending, but a sale for ever of so much rent for -so much money. Likewise, if a private man have -1000<em>l.</em> lying by him, and demandeth for his life and -his wife’s life 100<em>l.</em> by the year, and never to demand -the principal, it is a bargain of sale and no usury.”</p> - -<p>But though these things are evidences of something<span class="pagenum"><a id="Page_39">[39]</a></span> -closely akin to the principles of life assurance, it is -certain that no system existed by which so happy a result -could be habitually attained. The state of society -was opposed to it. Life was then scarce “worth a -pin’s fee.” The noble was at the mercy of his own -fierce passions, and, if not engaged in some intestine -warfare, was crossing and recrossing seas, was making -or unmaking kings. The knight sought dangerous -adventures with an avidity which would place his -life on the trebly hazardous list of assurance-offices, -and pale the roses on the cheeks of directors. The -citizen, again, was constantly embroiled in quarrels -with which he had no business, and merchants would -have looked doubtfully on any proposal to accept a -life which was likely enough to end the day after its -assurance.</p> - -<p>In addition to these chances, there was the liability -to “plague, pestilence, and famine.” The black -pest, the sweating sickness, the small-pox, are names -to conjure up frightful images. Nothing is now certainly -known of the numbers which these diseases -swept away in our early history, but the rapidity -with which whole families disappeared tended to -exaggerate the feeling of insecurity. It seems, therefore, -almost impossible to suppose that any plan of -life assurance could have existed during these ages,<span class="pagenum"><a id="Page_40">[40]</a></span> -when there were no documents to give the number -of deaths, and no laws to determine the value of life. -But if assurances were rare, we have constant evidence -that annuities were familiar enough. The -State employed them for its wants; scriveners employed -them for the necessities of their clients; Pole -and Whittington, Canning and Gresham, invested -their mercantile gains in them; the usurer made his -money breed by granting them in many forms and -on various securities; and although to arrive at a -just system of annuities was as difficult as a just -system of assurance, yet the usurer took as much -care in the one case to secure his own interest, as he -would in the other had it been an operation into -which he chose to enter.</p> - -<p>The sixteenth century gave birth to one of these -men, who, before life assurance was understood, exercised -great genius in granting and receiving annuities. -The name of Audley is one of the earliest we -possess in this line: he was originally a lawyer’s -clerk, with a salary of 6<em>s.</em> a week; but his talent for -saving was so well supported by his self-privation, -that he lived upon half, keeping the other half as the -superstructure of his future fortune. He was so -great an adept in the tricks of law, that he was soon -enabled to purchase his apprenticeship; and, with the<span class="pagenum"><a id="Page_41">[41]</a></span> -first 600<em>l.</em> he had saved, bought of a nobleman an -annuity of 96<em>l.</em> for nineteen years. The nobleman -died; his heir neglected to pay the annuity, and -Audley made him suffer for his neglect to the tune -of 5000<em>l.</em> in fines and forfeitures.</p> - -<p>The usurer soon found money trading better than -law writing. He became a procurer of bail; he -compounded debts; he enticed easy landowners into -granting well-secured annuities; he encouraged their -extravagance, and, under pretence of ministering to -their wants, became possessed of many a fine estate. -The following story will illustrate his craft:—In -the early part of his career, a draper of mean repute -was arrested by his merchant for 200<em>l.</em> Audley -bought the debt of the latter for 40<em>l.</em>, and was immediately -offered an advance on his bargain by the fraudulent -tradesman. Audley refused the terms; and -when the draper pressed, as if struck by a sudden -whim, he consented to discharge the debt, if his -creditor would sign a formal contract to pay within -twenty years from that time one penny, to be progressively -doubled on the first day of twenty consecutive -months, under a penalty of 500<em>l.</em> The -terms seemed easy, and the draper consented. The -knave was one of those who “grow rich by breaking.” -But here Audley had him in his net. Year<span class="pagenum"><a id="Page_42">[42]</a></span> -after year he watched his prey; he saw him increase -in wealth, and then made his first demand for one -penny. As month succeeded month he continued -his claim, progressively doubling the amount, until -the draper took the alarm, used his pen, found that to -carry out his agreement would cost him more than -4000<em>l.</em>, and, to avoid it, paid the penalty of 500<em>l.</em>; -his only revenge being to abuse Audley as a usurer, -probably anticipating the wish of Jaffier, that he -could “kill with cursing.”</p> - -<p>Audley, like many of our own day, was equally -ready to lend money to the gay gallants of the town -on annuities, as he was to receive it from the thrifty -poor who took, on “the security of the great Audley,” -the savings of their youth to secure an annuity -for their age. But needy as the youngsters of that -day might be, the usurer was as willing as they were -needy. He lent them, however, with grave remonstrances -on their extravagance, and took the cash -they paid him, with an air of paternal regret.</p> - -<p>His money bred. He formed temporary partnerships -with the stewards of country gentlemen, -and, having by the aid of the former gulled the latter, -finished by cheating the associates who had assisted -him to his prey. The annuity-monger was also a -philosopher. He never pressed for his debts when<span class="pagenum"><a id="Page_43">[43]</a></span> -he knew they were safe. When one of his victims -asked where his conscience was, he replied, “We -monied people must balance accounts. If you don’t -pay me my annuity, you cheat me; if you do, I -cheat you.” He said his deeds were his children, -which nourished best by sleeping.</p> - -<p>His word was his bond; his hour was punctual; -his opinions were compressed and sound. In his -time he was called the great Audley; and though -the Fathers of the Church proclaimed the sin of -usury to be the original sin, Audley smiled at their -assertions and went on his way rejoicing. As his -wealth increased he purchased an office in the Court -of Wards; and the entire fortunes of the wards of -Chancery being under his control and that of the -other officers of the court, it may be supposed that -Audley’s annuity-jobbing increased. When he quarrelled -with one who disputed the payment of an -annuity, and who, to prove his resisting power, -showed and shook his money-bags, Audley sarcastically -asked “whether they had any bottom?” The -exulting possessor answered in the affirmative. “In -that case,” replied Audley, “I care not; for in my -office I have a constant spring.” Here he pounced -on incumbrances which lay on estates; he prowled -about to discover the cravings of their owners,<span class="pagenum"><a id="Page_44">[44]</a></span> -which he did to such purpose that, when asked what -was the value of his office, he replied, “Some thousands -of pounds to any one who wishes to get to -heaven immediately; twice as much to him who does -not mind being in purgatory; and nobody knows -what to him who will adventure to go to hell.” -Charity forbids us to guess to which of these places -Audley went. He did not long survive the extinction -of the Court of Wards, and died “receiving -the curses of the living for his rapine, while the -stranger who had grasped the million he had raked -together owed him no gratitude at his death.”</p> - -<p>It must have been the widow of some such shrewd -assurer who dared the dangers of Chancery in 1682, -and endeavoured to file a bill, the purport of which -was to compel 500 individuals to declare the amounts -they owed her husband, who is designated as “a -kind of insurer.” The boldness of this woman in -attacking 500 persons attracted attention; and the -alarm which must have possessed her creditors was -no doubt heightened by the fact that 60 skins of -vellum and 3000 sheets of paper composed the bill, -and that each would be compelled to have a copy, -provided the plaintiff were successful. Not only, -however, did Lord Chancellor North, “amazed at<span class="pagenum"><a id="Page_45">[45]</a></span> -the effrontery of the woman,” dismiss the bill on the -ground of the enormous expense which each defendant -would incur, but he directed the plaintiff’s -counsel to refund his charges and to “take his labour -for his pains.”</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_46">[46]</a></span></p> - - - - -<h2>CHAP. III.</h2> - -<p class="chapter-subheading">JUDAH MANASSEH LOPEZ, THE JEW USURER—HIS TRICK ON THE -DUKE OF BUCKINGHAM—SUSPICIONS CONCERNING HIM.—THE -INCREASE OF LONDON.—POPULATION OF LONDON.—PROCLAMATIONS.—HALLEY’S -MOVEMENT IN LIFE ASSURANCE—HIS -TABLES.</p> - - -<p>Among the frequenters of St. Paul’s, when the -noble, the merchant, and the citizen congregated in -its walk, was an old man known to all who met -there in their daily avocations as Judah Manasseh -Lopez. A Lombard, a Jew, and a usurer, it was -difficult to say whether the outward respect he received -from his customers was not counterbalanced -by the curses he received from the public. The -bullying mien of the self-dubbed captain sunk into -a more subdued tone as he asked for loans or deprecated -payment. The spendthrift who was dicing -away his paternal inheritance, and who had security -to offer for the money he wanted, was more indifferent, -while the goldsmith shrunk from his approach -with a contemptuous expression he did not always -care to conceal. This man employed his wealth in<span class="pagenum"><a id="Page_47">[47]</a></span> -the purchase and sale of annuities. He lent to merchants -when their vessels failed to bring them -returns in time to meet their engagements. He -advanced cash on the jewels of those whom a disturbed -period involved in conspiracies which required -the sinews of war. But annuities were his -favourite investment; and to him, therefore, resorted -all that were in difficulties and were able to deal -with him. With the highest and the lowest he -trafficked. He was feared by most, and respected by -none. One remarkable feature in his business was, -that no one found it easy to recover the property he -had pledged, provided it much exceeded the amount -advanced. In an extremity, Buckingham, the favourite -of Charles, applied to and received assistance -from the Jew on the deposit of some deeds of value. -When the time approached which had been stipulated -for repayment, Lopez appeared before the -Duke in an agony of grief, declaring his strong-room -had been broken into, his property pilfered, -and the Duke’s deeds carried away. But Buckingham -had dealt too much with men of this class to -believe the story on the mere word of such a Jew. -He, therefore, kept the usurer while he ordered some -retainers to proceed to the city and to search out -the truth, placing the Hebrew at the same time<span class="pagenum"><a id="Page_48">[48]</a></span> -under watch and ward, with an utter indifference to -his comfort. When the messengers returned, they -avouched that all Lombard Street was in an uproar -at the violation of its stronghold. Still the Duke -was dissatisfied, and refused to part with his prey -until he had received full value for his deposit. In -vain the Hebrew fell on his knees, in vain did he -call on Father Abraham to attest his innocence, for -in the midst of one of his most solemn asseverations -Buckingham was informed that a scrivener was -urgent in soliciting an audience, and he saw at the -same time that a cloud came over the face of Lopez. -The request of the scrivener being granted, to the -Duke’s astonishment he produced the missing document, -explaining to his Grace that Lopez, believing -the scrivener too much in his power to betray him, -had placed it in his charge until the storm should -blow over, but that, fearing the Duke’s power and -trusting to his protection, he had brought it to York -House. On the instant Buckingham confronted the -two. The Jew’s countenance betrayed his crime, -and, fawning on the very hem of the Duke’s garment, -he begged forgiveness, and crouched like a dog -to procure it. From that time it is probable that -the Duke had his loans on more equitable terms and<span class="pagenum"><a id="Page_49">[49]</a></span> -on smaller security, as he dismissed the Jew with a -consideration the latter did not deserve.</p> - -<p>But darker and more dangerous things were hinted -of this man. He was well versed in medical lore. -He was reputed to possess subtle drugs; and it was -often noticed that the healthiest of those to whom he -was bound to pay life annuities were sometimes cut -off in a remarkable way, and that, too, after they -had been closeted with him. Whether Lopez granted -insurances on lives is unknown, but he lived himself -to a bad old age, hated as much as he was feared, -and sought after as much as he was despised.</p> - -<p>Such men made large profits. They knew nothing -and they cared nothing for the chances of life. Their -charges covered all risks. And so little was known -of the number of the people, that a few desultory -facts concerning this and a previous period, being -gathered from various sources, may not be unacceptable -or uninstructive. Up to this time, and long -after, the population of London and of England was -a riddle. The utmost exaggeration prevailed in all -the accounts which we possess concerning it. Fitzstephen -writes of London being peopled with a multitude -of inhabitants; and adds, that, in the fatal -wars under King Stephen, 80,000 men were mustered. -Allowing for the martial fury of the time,<span class="pagenum"><a id="Page_50">[50]</a></span> -this would give a population of 400,000 in the twelfth -century dwelling in London. Everything points to -the fact that the metropolis augmented more than -the authorities thought good.</p> - -<p>The progressive increase of London was a continual -source of alarm. In 1581 a proclamation was -issued, forbidding any new buildings. Elizabeth -caused a statute to be passed to the same effect, -because “such multitudes could hardly be governed, -by ordinary justice, to serve God and obey her -Majesty;” and because “such great multitudes of -people in small rooms, being heaped up together, and -in a sort smothered, with many families of children -and servants, in one tenement, it must needs follow, -if any plague or any universal sickness come among -them, it would presently spread through the whole -city.” These proclamations were continued. James -said, so many people “cumbering the city were a -general nuisance;” adding, that the single women -who came from the country marred their reputations, -and that the married lost them. Still the people -flocked, in spite of proclamations, and in opposition -to statutes. Old country establishments crowded by -the score to “upstart London,” “pinching many a -belly to paint a few backs, and burying all the treasures -of the kingdom in a few citizens’ coffers.” At<span class="pagenum"><a id="Page_51">[51]</a></span> -last some effect was produced, not however by the -proclamation, but by fining one Mr. Palmer a thousand -pounds. Still, if we may judge by what Howel -writes, the city of London continued to increase -“For the number of human souls breathing in city -and suburbs, London may compare with any in Europe -in point of populousness.” This he estimates, -taking “within that compass where the point of the -Lord Mayor’s sword reacheth,” at a million and a -half of souls. Foreigners could scarcely understand -the huge concourse which thronged London, and -which for a long time baffled our earlier political -economists, who wondered how it was that the annual -deaths outbalanced the annual births. Our satirists -were very hard on the new comers. Ben Jonson -describes them as “country gulls,” who come up -every term to learn to take tobacco and see new -notions. They paid heavily for their lesson in -London life; and many an annuity was wrung out -of the fat land of the country gentleman from his -visit to the metropolis. Sir Richard Fanshawe, in -an elegant and elaborate poem,—an evidence that -the subject occupied public attention,—asks,</p> - -<p><span class="pagenum"><a id="Page_52">[52]</a></span></p> - -<div class="poetry-container"> -<div class="poetry"> -<div class="stanza"> -<div class="indentquotetwo">“Who would pursue</div> -<div class="indentbase">The smoky glory of the town,</div> -<div class="indentbase">That may go till his native earth,</div> -<div class="indentbase">And by the shining fire sit down</div> -<div class="indenttwo">On his own hearth,</div> -</div><div class="stanza"> -<div class="indentquotebase">“Free from the griping scrivener’s hands</div> -<div class="indentbase">And the more biting mercer’s books,</div> -<div class="indentbase">Free from the bait of oiled hands</div> -<div class="indenttwo">And painted looks?”</div> -</div></div></div> - -<p>It is clear, from these and other facts, and from the -circumstance that it would be very difficult to separate -the casual visitors from the fixed inhabitants of -London, that up to the year 1700 there was little -information on which to found an argument. All -that we possess is vague and desultory. Lord Salisbury, -in a letter written to Prince Henry prior to -1612, says, “Be wary of Londoners, for there died -here 123 last week.” On the 1st of May, 1619, we -learn by another source that the number of deaths in -London was from 200 to 300 weekly. At the -accession of James I., London was said to contain -little more than 150,000 inhabitants; and at the -restoration of Charles II., 120,000 families were said -to be within the walls of London. “Before the -Restoration,” said Sir William Petty, “the people -of Paris were more than those of London and Dublin -put together; whereas, in 1687, the people of London -were more than those of Paris and Rome.” Evelyn, -again, says, in his Diary, in 1684, that he had seen<span class="pagenum"><a id="Page_53">[53]</a></span> -London almost as large again as it was at that time. -Judging from various independent sources, however, -the population of England at the time of the Revolution -may be fairly estimated as ranging from -5,000,000 to 5,500,000.</p> - -<p>That the tables of Graunt and Petty had produced -small practical effect, and that little or nothing was -known as to the chances of life, may be gathered -from a pamphlet printed in 1680, in which the whole -doctrine of the value of life as then understood and -acted on is affirmed: the utmost value allotted to the -best life was 7 years, at which the life of a “healthful -man,” at any age between 20 and 40, was estimated; -while that of an aged or sickly person was from 5 to -6 years, the various limits between these two extremes -constituting the whole range of difference in -value.</p> - -<p>Such was the limited nature of the statistics of -life when the Astronomer Royal Halley compiled -those calculations which make his name honoured by -directors and actuaries. To him we owe the germ of -all subsequent developments of this science, in that -general formula for calculating the value of annuities -which is yet regarded with so much respect.</p> - -<p>Up to the period in which he lived—the latter half -of the seventeenth century—the town of Breslau, in<span class="pagenum"><a id="Page_54">[54]</a></span> -Silesia, was the only place which recorded the ages -of its dead; and from these Halley drew a table of -the probabilities of the duration of human life at -every age. This was in 1693, and was the first table -of the sort ever published.<a id="FNanchor_8_8" href="#Footnote_8_8" class="fnanchor">[8]</a> In it he taught, with -great clearness and exactness, the conditions needful -for the formation of rates of mortality; the manner -of forming them with complete geometrical precision; -of deducing a corresponding table of the -present state and annual movement of the population; -of reading in them the probability of survivorship -of any person taken at random in a given society;<span class="pagenum"><a id="Page_55">[55]</a></span> -of, in truth, concluding upon the probable duration -of the co-existence of several individuals from the -sole knowledge of their age. He also first developed -the true method of calculating life annuities, taking -for his guide the rate of mortality during five successive -years in Breslau.</p> - -<p>That the tables of Dr. Halley were very much -wanted may be assumed, as in 1692 annuities were -granted on single lives at 14 per cent., or only 7 -years’ purchase; and that the State took very little -trouble to apply these tables is as true, for we read -that, soon after they were published, annuities were -estimated on 1 life at 9 years’ purchase, on 2 lives -at 11 years’, and on 3 lives at 12 years’ purchase. -Some allowance must, of course, be made for the -difficulty of raising money and the difference of interest; -still the price paid was out of all proper proportion. -But the most singular circumstance connected -with government annuities at this period is, -that, when life annuities were changed into annuities -for 99 years, the owner of a life annuity might secure -an annuity for 99 years, by paying only <span class="nowrap">4 <span class="fnum">1</span>/<span class="fden">2</span></span> years’ -extra purchase. Thus, by the payment of <span class="nowrap">15 <span class="fnum">1</span>/<span class="fden">2</span></span> years’ -purchase, a certain annuity of 99 years could be -procured.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_56">[56]</a></span></p> - - - - -<h2>CHAP. IV.</h2> - -<p class="chapter-subheading">FIRST TRIAL CONCERNING LIFE ASSURANCE.—THE MERCERS’—ITS -ESTABLISHMENT AND SYSTEM.—THE SUN—JOHN POVEY, -ITS PROJECTOR—HIS CHARACTER.—WAGERS ON THE LIFE OF -KING WILLIAM.—NEW ASSURANCES.—THE AMICABLE—THE -MODE IN WHICH IT WAS ESTABLISHED.—NEW ANNUITY SOCIETIES—ANECDOTES -CONCERNING THEM—CLOSE OF THEIR -CAREER.</p> - - -<p>It may be judged that life assurance was in operation -by the latter end of the seventeenth century, as a -policy was made on the life of Sir Robert Howard, -for one year, from the 3rd of September, 1697. On -the same day in the following year Sir Robert died, -and the merchant refused to pay, on the ground that -the policy had expired. Lord Holt, however, ruled, -that “‘from the day of the date’ excluded the day -itself, and that the underwriter was liable.” This -appears the first assurance on a life of which there is -positive legal record.</p> - -<p>Reference is usually made to the Amicable Society -as the earliest institution for the assurance of lives; -but the Mercers’ Company, in 1698, commenced a -scheme for granting life annuities to the nominees of<span class="pagenum"><a id="Page_57">[57]</a></span> -the assurers, in place of paying down a fixed sum. -This was undertaken at the instigation of Dr. -Asheton, and its failure is a proof that the duration -of human life was very little known, or that sufficient -care had not been taken by the Mercers’ Company -to enable them to be annuity-mongers with half the -success of Audley the usurer, or Lopez the Jew. -They formed something like a scale, but it was incomplete. -Married men, under 30, were allowed to -subscribe but 100<em>l.</em>; under 40, they might not subscribe -more than 500<em>l.</em>; under 60, they were limited -to 300<em>l.</em> When this was commenced, it was considered -a very notable plan. It was thought that it -would prove a good business speculation, and, on -considerable sums being subscribed, “the Corporation -rejoiced greatly.” It was soon discovered, however, -that the undertaking was founded on a mistake; so -the first breach of faith was in lowering the annuity. -This proved insufficient, and the company became -unable to meet their engagements. They had fixed -the payments to their annuitants at the rate of 30 per -cent., and now they saw their funds almost annihilated -by the error. At last they stopped payment altogether; -but the distress was so acute, that, recollecting -one or two forced loans they had made to the monarchs -of England in the troublous times of old, they petitioned<span class="pagenum"><a id="Page_58">[58]</a></span> -parliament, in 1747, for assistance. Their -tale was a pitiable one: “At Michaelmas, 1745, they -found themselves indebted to the said charities, and -their other creditors, 100,000<em>l.</em>; they were liable for -present annuities to the extent of 7620<em>l.</em>; for annuities -in expectancy, 1000<em>l.</em> a year more: the whole -of their income being 4100<em>l.</em>”</p> - -<p>The desired assistance was granted, and it need not -be added that the company is now one of the most -flourishing in London.</p> - -<p>If the principles on which the Mercers’ Corporation -founded its operations were erroneous, it must -be considered that Government acted as strangely in -its public proposals for life annuities. Nothing can -illustrate more strongly the crudities of the science -at this period, than the fact, that when loans were -raised by William III., on life annuities, no greater -annual amount was given to the man of seventy, whose -chances of life were so small, than to the man of -thirty, whose chance was so large. Thus, the State -offered 14 per cent., at any age, and it is curious that -these proposals were accepted by very few. It is -true that interest was much higher than at present, -but this does not palliate the fact, that there was no -attempt to vary the rate according to the age.</p> - -<p>Before approaching the next movement, it will not<span class="pagenum"><a id="Page_59">[59]</a></span> -be out of place to indicate the establishment of one -or two offices which have since added life assurance -to that of fire. The Hand-in-Hand was established -in 1696, by about one hundred persons. In 1698 -they framed a deed of settlement, which was enrolled -in Chancery. Ten years later, John Povey, author -of the “Unhappiness of England, as to Trade,” projected -the Sun. Finding his attempt very successful, -Povey conveyed his rights to certain purchasers, who, -by a deed of settlement, of April, 1710, erected -themselves into the society now familiar as the Sun -Fire and Life Office.</p> - -<p>It is not generally known that this institution -printed, at first weekly and then quarterly, a work -which has since proved a valuable addition to our -historic literature. It was, indeed, a general custom -with insurance companies to publish periodical papers -in aid of their business, and was only another mode -of that advertising which is so liberally practised by -those of the present century.</p> - -<p>Mr. Povey, the founder of the above company, -was a veritable promoter. Not contented with establishing -an office to insure against the chances of -fire, he invented also a scheme to extinguish it, and -“Povey’s fire-annihilator” was then a feature of the -time. This gentleman, who looked “a grave, honest-countenanced,<span class="pagenum"><a id="Page_60">[60]</a></span> -elderly gentleman,” but is described -as “a meddling, restless, and turbulent spirit,” projected -a life assurance company for “4000 healthy -persons, between the ages of 6 and 55,” to be called -the Proprietors of the Traders’ Exchange House. -This, like many of his proposals, died a natural death. -With those of his class he was often in hot water, -and was accused of plagiarising the ideas of others. -In addition to the offices of which mention has been -made, he formed the Society for Assurance for -Widows and Orphans, the progress of which is lost -sight of. At any rate, he comes down to us as the -founder of one of the most liberal fire-offices in -existence, of the capital of which it may be remarked, -<em>en passant</em>, almost as little is known as of its projector.</p> - -<p>The war which was undertaken by William, -against France, produced a new form of assurance: -not only did wagers on his life become prevalent—a -betting which was but another form of insurance; -policies were entered into on the result of his campaigns. -The conspiracies which were formed against -him increased the interest felt; and so uncertain were -the chances of his taking Namur, that 30<em>l.</em> were -offered down, to receive 100<em>l.</em>, provided the city and -castle were captured before the last day of September<span class="pagenum"><a id="Page_61">[61]</a></span> -in 1694. At this period, also, a mutual assurance -company was formed to aid an adventurer with funds -to raise a vessel which, laden with the treasures of -the East, had been lost on her passage home; the -peculiar feature of the transaction being, that, if any -of the association should die before the object was -accomplished, their share was to be transferred to -the remaining adventurers.</p> - -<p>The assurance merchants found their profits endangered -in 1706, when the Bishop of Oxford and -Sir Thomas Allen applied to Queen Anne for a -charter to incorporate them and their successors, -“whereby they might provide for their families in an -easy and beneficial manner.” The application was -successful, and the <span class="smcap">Amicable</span>, an improvement on -the Mercers’ Company, obtained its charter, the -number of shares being limited to 2000. But that -which appears most extraordinary was, the mode of -arranging the payments. The age of the shareholder—from -12 to 45—made no difference in his premium; -and whether he were well, or whether he -were dying, was no consideration. Each person -paid 7<em>l.</em> 10<em>s.</em> entrance money, and 6<em>l.</em> 4<em>s.</em> per annum -for life; but, as a yearly return of 1<em>l.</em> 4<em>s.</em> was paid to -each shareholder, the real payment was 5<em>l.</em> The -yearly number of deaths in London was about 1 in 20<span class="pagenum"><a id="Page_62">[62]</a></span> -at this period, and this fact probably originated the -amount of payment, though nothing could surpass -the absurdity of a plan which made no distinction -between an old life and a young one,—between a -healthy and an unhealthy man. It is said that the -Amicable had no data; but Dr. Halley had already -published his tables, and Vulture Hopkins, or Mr. -Snow the banker, or any money-monger, would have -taught the directors their error. It is true that -success,—at any price, almost,—was their object, -and this was insured by the large payment. It may -be said, also, that it is wrong to judge of past actions -by the aid of present information; but common -sense was as general then as now, and any usurer’s -books would have taught the Amicable its mistake.</p> - -<p>The annual income, after deducting expenses, was -divided yearly among the representatives of those -who had died. Thus a healthy year, with only a -slight mortality, made the division good; but in an -unhealthy year it was proportionably less. An -annual distribution of this kind was manifestly unsound, -if not unfair; and must have been sometimes -severely felt by the representatives of the deceased. -The Amicable, however, may be received as the -nursing mother of life assurance at a period when,<span class="pagenum"><a id="Page_63">[63]</a></span> -little as arithmetical economy was understood, it was -still less acted on.</p> - -<p>Besides the attempt to engraft an annuity society -on the Mercers’ Company, various minor endeavours -were made, from 1690 to 1712, to establish institutions -which should grant yearly payments and pay -specific sums to the representatives of the deceased.</p> - -<p>The principle of assurance, applied to other subjects -than merchandise, seemed a sudden light to -those who had capital, and did not know how to -employ it; while it was a great boon to those who -wanted money, and did not know how to get it. -The latter employed their wits in its application to -subjects which are not yet allowed to be legitimate; -and, while the former, with the praiseworthy caution -of men who had “put money in their purses,” went -slowly but surely to work to found institutions like -the Amicable, the Royal Exchange, and the London, -the others did not hesitate to form societies, to -frame rules, and to decoy all they could meet, under -titles as promising as their results were ruinous.</p> - -<p>In 1708 began what were then known as “the -little goes” of assurance. One was held at the Cross -Keys, in Wych Street. We gather that each person -subscribed 5<em>s.</em> fortnightly, inclusive of policy, stamp, -and entrance money, on condition of 200<em>l.</em> being<span class="pagenum"><a id="Page_64">[64]</a></span> -paid to his heirs and executors. Another was an -evident bubble, 5<em>s.</em> a quarter entitling the subscriber’s -representatives to receive 120<em>l.</em> at his demise; -while a third, called the “Fortunate” Office, was to -provide marriage portions of 200<em>l.</em> for those who -paid 2<em>s.</em> a quarter. If contemporary accounts are to -be trusted, the ravenous appetite for assurance was -something like that which at the present day possesses -projectors, as offices were opened in every part -of the town. If one company was commenced to -insure marriage portions, a second was sure to follow -to insure the portions of their children. A -mutual life assurance was instantly followed by a -mutual ship assurance. The following notice from -the “British Apollo” will be found to illustrate this -speculative fancy:—“A first and second claim is -made at the Office of Assurance on Marriage, in Roll -Court, Fleet Street. The first will be paid on -Saturday next; wherefore, all persons concerned are -desired to pay 2<em>s.</em> into the joint stock, pursuant to -the articles, or they will be excluded. <em>The two -claimants married each other, and have paid but 2s. -each.</em>” They were, however, to receive but 37<em>l.</em> -Here is another specimen: “Any person by paying -2<em>s.</em> at their entrance for a policy and stamps, and 2<em>s.</em> -towards each marriage but their own, when the<span class="pagenum"><a id="Page_65">[65]</a></span> -number is full, will secure to themselves 200<em>l.</em>; and -in the mean time, in proportion to the number of -subscribers.” This undertaking was found to answer -so well, that many others opened in the same line—one -of them, appropriately enough, in Petticoat Lane. -Soon after this, appears an advertisement from a -baptismal office of assurance, where every subscriber -paid 2<em>s.</em> 6<em>d.</em> towards each infant baptized, until he -had one of his own, when he was to receive 200<em>l.</em>, -“the interest of which is sufficient to give a child -a good education; and the principal reserved until -it comes to maturity.” Most of the projects were -systems of wholesale robbery. For a time, however, -they were greedily run after. “The success of these -schemes,” says a chronicler of the time, “sharpened -the invention of the thrifty, and immediately almost -every street in London abounded with insurance -offices, where policies for infants three months old -might be obtained for short periods. From these, -they diverged into other ages and various descriptions -of persons.”</p> - -<p>Emblems were placed in windows indicating the -allurements of the “Golden Globe.” Tempting advertisements -were inserted in the journals to show -the especial advantages of a new Tontine. Infant or -adult, married or single, were addressed in, “The<span class="pagenum"><a id="Page_66">[66]</a></span> -Lucky Seventy, or the Longest Liver takes all;” -while, paraded in promising forms, and painted in -bright colours, arose societies to keep the subscribers -when they married, and pay for their burials when -they died.</p> - -<p>There is something very painful in the recollection -that the sufferers were those who could least afford -it. It was not the grasping Hebrew who invested -from his full store. It was not the wealthy East -Indian director, the rich alderman, the over-fed -citizen, or the “new-fangled banker” who lost a -small portion of his gold. It was the poor and -thrifty man, who, denying himself to secure his children -a provision, was involved in loss.</p> - -<p>Policies and premiums were in the mouths of all. -It was the El-dorado of the London craftsman, the -alchymy of the needy tradesman. The philosopher’s -stone seemed placed before the class that least dreamed -of grasping it: but it was the realisation of the legend -in which the dreamer awakes and finds his golden -pieces are turned to slate; it was the arousing of -Analschar from his gorgeous vision.</p> - -<p>The jobbers of Change Alley were not behind; -the members of Lloyd’s entered keenly into competition, -usurers trembled with delight at the prospect -of increasing their store, and annuity-mongers threw<span class="pagenum"><a id="Page_67">[67]</a></span> -themselves with ravenous rapacity on the unwary. -Under the name of Africanus, Steele selects a well-known -character of the day to satirise the “bites and -bubble-mongers” of 1710, in “one who has long been -conversant in bartering; who, knowing when Stocks -are lowest it is the time to buy, therefore, with -much prudence and tranquillity, thinks it the time -to purchase an annuity for life.” “Sir Thomas told -me it was an entertainment more surprising and -pleasant than can be imagined, to see an inhabitant -of neither world, without hand to lift, or leg to move, -scarce tongue to utter his meaning, so keen in biting -the whole world and making bubbles at his exit. Sir -Thomas added, he would have bought twelve shillings -a year of him, but that he feared there was some -trick in it, and believed him already dead.”</p> - -<p>There is some confusion between annuities and -assurances; it is an evidence, however, that the public -attention was pointed to the tricks which were current. -During this period, there is no trace of any -life-office; but it would appear that the Bills of -Mortality were regarded with interest, from a paper -in the “Guardian” being founded on them, and that -they were so regarded is most probably to be traced -to their connection with assurance. The following is<span class="pagenum"><a id="Page_68">[68]</a></span> -an extract from a quizzical paper bearing on -the mortuary registers. Died</p> - - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="mortuary register"> -<tr><td align="left">“</td><td align="left">Of a six-bar gate</td><td align="right">4</td></tr> -<tr><td align="left"></td><td align="left">Of a quick-set hedge</td><td align="right">2</td></tr> -<tr><td align="left"></td><td align="left">Broke his neck in robbing a hen-roost</td><td align="right">1</td></tr> -<tr><td align="left"></td><td align="left">Surfeit of curds and cream</td><td align="right">2</td></tr> -<tr><td align="left"></td><td align="left">Took cold sleeping at church</td><td align="right">11</td></tr> -<tr><td align="left"></td><td align="left">Of October</td><td align="right">1</td></tr> -<tr><td align="left"></td><td align="left">Of fright in an exercise of the train-bands</td><td align="right">1</td><td align="left">.”</td></tr> -</table></div> - -<p>Addison also composed the following bill of mortality -in a paper “On Dying for Love;” and it is a -further proof of the attention paid to the subject, -that this great writer took it as a model:—</p> - -<p>“T. S. wounded by Zelinda’s scarlet stocking, as -she was stepping out of a coach.</p> - -<p>“Tim Tattle killed by the tap of a fan on his left -shoulder by Coquetilla, as he talked carelessly with -her at a bow-window.</p> - -<p>“Samuel Felt, haberdasher, wounded in his walks -to Islington, by Mrs. Susanna Cross Stitch, as she -was clambering over a stile.</p> - -<p>“John Pleadwell, Esq., of the Middle Temple, -assassinated in his chambers, the 6th instant, by Kitty -Sly, who pretended to come to him for advice.”</p> - -<p>After 1712, these projects ceased to be placed -before the town; and the following odd “bite” had -its share in dispersing the hungry crew who proposed<span class="pagenum"><a id="Page_69">[69]</a></span> -them. “There has been the oddest bite put upon -the town that ever was heard of. We having of late -had several new subscriptions set on foot for raising -great sums of money for erecting offices of insurance,” -&c.; “and at length some gentlemen, to convince -the world how easy it was for projectors to impose -upon mankind, set up a pretended office in Exchange -Alley, for receiving subscriptions for raising 1,000,000 -of money to establish an ‘effectual’ company of insurers, -as they called it: on which, the day being come -to subscribe, the people flocked in and paid down 5<em>s.</em> -for every 1000<em>l.</em> they subscribed, pursuant to the -Company’s proposals; but after some hundreds had -so subscribed, that the thing might be fully known, the -gentlemen were at the expense to advertize, that the -people might have their money again without any -deductions; and to let them know that the persons -who had paid in their money contented themselves -with a fictitious name set by an unknown hand to -the receipts delivered out for the money so paid in, -that the said name was composed only of the first -letters of six persons’ names concerned in the said -scheme.”</p> - -<p>For a period the people had rest from new propositions: -as it was found necessary to stop these -offices for insurances on marriages, births, christenings,<span class="pagenum"><a id="Page_70">[70]</a></span> -and annuities, and to close the career of gentlemen -without a penny; this being done by the insertion -of a clause in an Act of the 10th of Queen Anne, -enacting a penalty of 500<em>l.</em> on the promoters of such -societies.</p> - -<p>Unfortunate as these bubble assurance companies -might be, unformed and unintelligent as their conductors -proved, and ruinous as they were to the -people who trusted them, they were a movement in -the right direction. The principle of life assurance -is so eminently social, and so important to those who -wish to invest their savings for their successors, that -any effort or endeavour to move this science from -the hands of usurers and speculative merchants was -to be rejoiced at. Hitherto it had been entirely in -the hands of the monied man. Many had been -honourable in their dealings, but they were ignorant -of the trade in which they invested their money, -while a bad business year or the destruction of a -fleet,—a civil war or the arbitrary demands of a -monarch,—might ruin alike assurer and assured.</p> - -<p>Others who traded in it were harpies; who took -advantage of the wants of the applicants, who measured -their terms by the requirements of their customers, -who demanded to the last penny, and -claimed on the earliest day. Such men did more<span class="pagenum"><a id="Page_71">[71]</a></span> -harm to the feeling of security in these transactions -than can now be possibly imagined; but the above -two classes only could supply the requirements of -the people in the early annals of annuities and -assurance.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_72">[72]</a></span></p> - - - - -<h2>CHAP. V.</h2> - -<p class="chapter-subheading">ROYAL EXCHANGE AND LONDON ASSURANCE—THEIR RISE AND -PROGRESS.—BUBBLE ERA.—EPIGRAMS.—OPPOSITION TO THE -NEW COMPANIES.—ACCUSATIONS AGAINST THE ATTORNEY-GENERAL.—LIST -OF ASSURANCE COMPANIES.—EXTRAORDINARY CHARACTER -OF MANY.—REMARKABLE CAREER OF LE BRUN.—DIRECTORS -IN TROUBLE.</p> - - -<p>The rise of the Royal Exchange and London Corporations -forms no uninteresting picture of the time -in which they were produced. The bubbles of 1712 -had not long passed away, when some of the first -merchants of London, willing to secure to themselves -the advantages which the Amicable as a life, -and the Sun as a fire, office possessed, met in Mercers’ -Hall, to petition the crown for a charter to -effect marine and other assurances. The petition -was well timed, as upwards of 150 underwriters had -recently failed; many merchants having fallen to the -ground with them, there was every reason in the -public clamour for a safer and more secure mode -of investment. About the same time also another -body, of “knights, merchants, and citizens of London,” -had petitioned with the same object. A junction<span class="pagenum"><a id="Page_73">[73]</a></span> -of the two was arranged, and, under the title of -the Royal Exchange Assurance, they endeavoured -to obtain a charter. This was at the commencement -of that remarkable period in commercial history -known as the South Sea bubble. The above proposition, -however, was well grounded; and so many -were prevented from subscribing, that, under the -title of the London Assurance, a company of equal -magnitude was commenced.</p> - -<p>Their petitions made slow progress; but the -Royal Exchange, without waiting the issue, commenced -business, and, in nine months, had insured -property to the amount of 2,000,000<em>l.</em> sterling. -While these companies were in progress, the great -bubble era came. With it, excepting as regards -assurance, this volume has nothing to do. But the -public found this pressed closely on its attention. -When men were willing to receive a company with -fair promises in the place of fair prospects,—when -persons ran about the Alley exclaiming, “Give us -something to subscribe to; we care not what it is,”—a -practice so sound as assurance was certain to be -applied in every form that the hurried ingenuity of -speculators could devise. Besides the proposed -assurances on the lives of men, cattle were brought<span class="pagenum"><a id="Page_74">[74]</a></span> -into use, and 2,000,000<em>l.</em> were demanded for assuring -horses. Of this it was said:—</p> - -<div class="poetry-container"> -<div class="poetry"> -<div class="stanza"> -<div class="indentquotebase">“You that keep horses to preserve your ease,</div> -<div class="indentbase">And pads to please your wives and mistresses,</div> -<div class="indentbase">Insure their lives, and if they die we’ll make</div> -<div class="indentbase">Full satisfaction, or be bound to break.”</div> -</div></div></div> - -<p>Of an office for marine assurance:—</p> - -<div class="poetry-container"> -<div class="poetry"> -<div class="stanza"> -<div class="indentquotebase">“In vain are all insurances, for still</div> -<div class="indentbase">The raging wind must answer heaven or hell;</div> -<div class="indentbase">To what wise purpose must we then insure?</div> -<div class="indentbase">Since some must lose whate’er the seas devour.”</div> -</div></div></div> - -<p>The life and fire-companies were also epigrammatised -with as much point as the epigrammatist could -confer. Thus, on the former he wrote:—</p> - -<div class="poetry-container"> -<div class="poetry"> -<div class="stanza"> -<div class="indentquotebase">“Come all ye generous husbands with your wives,</div> -<div class="indentbase">Insure round sums on your precarious lives,</div> -<div class="indentbase">That, to your comfort, when you’re dead and rotten,</div> -<div class="indentbase">Your widows may be rich when you’re forgotten.”</div> -</div></div></div> - -<p>With regard to fire-companies:—</p> - -<div class="poetry-container"> -<div class="poetry"> -<div class="stanza"> -<div class="indentquotebase">“Projecting sure must be a gainful trade,</div> -<div class="indentbase">Since all the elements are bubbles made;</div> -<div class="indentbase">They’re right that gull us with the dread of fire,</div> -<div class="indentbase">For fear makes greater fools than fond desire.”</div> -</div></div></div> - -<p>Another company, having at its head “three -English peers, two bishops, four Irish peers, with -many eminent merchants and gentlemen,” petitioned -the king that it might be incorporated for purchasing<span class="pagenum"><a id="Page_75">[75]</a></span> -and improving forfeited and other estates in Great -Britain, for granting annuities, and for insuring -lives; “seeing this will unite by interest many of -the king’s subjects against the Pretender and his -adherents for ever. In order to which, several of -the petitioners have sent persons into Scotland for -purchasing the forfeited estates there, and have -since, by a voluntary subscription to the Governor -and Company of Undertakers for raising the Thames -water in York Buildings, raised a joint stock of -1,200,000<em>l.</em>, on the credit of which estates they propose -to grant annuities for and to insure on lives; -for the benefit of such of his Majesty’s subjects as -are straitened in their fortunes by the reduction of -interest.”</p> - -<p>When this petition was referred to the Crown -lawyers the Amicable employed counsel to oppose it, -and a vigorous warfare was carried on. Rejecting -with scorn the idea of any rival being of use to the -world, and pointing to its own venerable standing of -fourteen years, the Amicable called the new company -a “company of upstarts.” The latter retorted that -its opponents had grown old and supine, and that the -safety of the entire commercial world depended on -their success; that, having a large capital, there -would be a greater security than in a society like<span class="pagenum"><a id="Page_76">[76]</a></span> -the Amicable; and they backed their argument with -bribes to all who could be supposed to have any -interest. Their arguments and their bribes, however, -were futile, and they missed their object.</p> - -<p>Even the Royal Exchange and London Corporation -did not escape the charge of having attempted -to forward their interests by fees disproportioned to -the services which were sought. The age at which -we have arrived was the age of corruption. Whispers -passed through every coffee-house in the city -that the Right Honourable Nicholas Lechmere was -accused of betraying the trust reposed in him, and -that some persons concerned in various undertakings -had endeavoured to obtain charters by corruption -and other undue practices. These reports were -attributed at the time to the private assurers, who -were by no means pleased at so formidable a rivalry. -The proper degree of indignation having been exhibited -by the Right Honourable gentleman, the rumour -was found to have emanated from Sir William -Thompson, who broadly asserted that very unjustifiable -methods had been taken by one Bradley and -Billinghurst in order to obtain a charter for Lord -Onslow’s Assurance Company; that large sums of -money had been received by his Majesty’s Attorney-General, -contrary to his duty, to influence him in his<span class="pagenum"><a id="Page_77">[77]</a></span> -opinion; and that there were public biddings for -these charters, as if at an auction, in the chambers -of the Attorney-General. Such assertions being -somewhat damaging to the character of an official -gentleman, the committee appointed to inquire into -“petitions for companies for insurance, annuities, -&c. &c.,” instituted a minute inquiry. As all the -witnesses represented some proposed company, they -were unanimous in asserting its virtue. Not one of -them ever dreamed of offering Mr. Attorney more -than his legal fee. Not one of them was not content -to rest the success of his case on its singular -merits only.</p> - -<p>Their examination lets us into a picture of the -customs of the time. On a certain occasion as many -as 150 met in the Attorney-General’s chambers, -where the question was debated with great warmth; -one party contending, with all the eloquence of self-interest, -that a new company for the purpose of -assurance would be very beneficial to the nation; -the opposite party asserting that no such company -was requisite, and that the nation would suffer from -it. The advocates representing the underwriters -proved that there were private adventurers ready to -undertake all the business that could be brought; -and, in return, the advocates for the companies produced<span class="pagenum"><a id="Page_78">[78]</a></span> -a list of failures among the private assurers, -and a calculation of the loss the public had sustained -through them. The general tenor of the evidence -went to clear Mr. Attorney, but it tended to criminate -the applicants for charters. One company gave -its agent authority to pursue “all proper methods;” -and, as the agent had interpreted these words “to -bribe all he came near,” they could only express their -regret. Another company declared its purity with -much vehemence; but, on close examination, it was -found to arise from its poverty. Moral feeling was -utterly extinct. The cry with all was, “Give!” -“Give!” said the Attorney-General’s clerk. “You -must give something; they have given something -handsome on the other side,” said the Attorney-General -himself. One witness deposed: “He, with -some others, went to the chambers of the latter, and, -having procured access, informed him they were -come to wait on him with his fee; but Mr. Attorney -said, ‘What do they come here for? Why do they -not leave it with my clerk?’ The reply was, ‘It -was matter of weight, and they desired to give it -him themselves.’ Sir William Chapman then gave -the fee, recommending the assurance company to the -Attorney’s favour, saying, ‘The company would -speak for itself, and hoped, if it should be found to<span class="pagenum"><a id="Page_79">[79]</a></span> -be of use to the nation, that he would favour it,’ and -some words of that kind, and then they withdrew.” -The accusation failed, the decision being, “That the -Right Honourable Nicholas Lechmere had discharged -his trust, in the matters referred to him by -his Majesty in Council, with honour and integrity.”</p> - -<p>In the mean time the two new companies proceeded -slowly. “Onslow’s Insurance,” as the Royal -Exchange was called, and “Chetwynd’s Bubble,” -the title given to the London, were hawked in -Change Alley along with companies for “importing -jackasses” and for “fatting hogs.” The House of -Commons was privately importuned by lavish promises, -and publicly solicited in two letters printed -and given to every member. Even in that age of -corruption their bribery proved vain; and had not a -fortunate chance turned up in their favour, their -application for charters might have been dismissed -with contempt. By some inadvertence, the grand -Committee of Supply had been dismissed before provision -could be made for the arrears in the civil list. -The ministers were in despair; and the companies -took advantage of the necessities of the State to -offer the large sum of 600,000<em>l.</em>, on condition of receiving -his Majesty’s charter for their respective -companies. The offer was eagerly grasped by the<span class="pagenum"><a id="Page_80">[80]</a></span> -ministry; and on evidence being given of the respectability -of the members,—of the cash lodged at the -Bank to meet losses,—of their funded property, and -of the amount of the business transacted,—Mr. -Aislabie, Chancellor of the Exchequer, presented to -the House the following message:—</p> - -<p>“His Majesty, having received several petitions -from great numbers of the most eminent merchants -of the city of London, humbly praying he would be -graciously pleased to grant them his letters patent -for erecting corporations to assure ships and merchandise, -and the said merchants having offered to -advance and pay a considerable sum of money for -his Majesty’s use in case they may obtain letters -patent accordingly; his Majesty, being of opinion -that erecting two such corporations, exclusive only -of all other corporations and societies for assuring of -ships and merchandise, under proper restrictions and -regulations, may be of great advantage and security -to the trade and commerce of the kingdom, is willing -and desirous to be strengthened by the advice and -assistance of this House in matters of this nature -and importance. He, therefore, hopes for their ready -concurrence to secure and confirm the privileges his -Majesty shall grant to such corporations, and to -enable him to discharge the debts of his civil government<span class="pagenum"><a id="Page_81">[81]</a></span> -without burdening his people with any aid or -supply.”</p> - -<p>A bill was then ordered to be brought in, and the -“most dutiful Commons” waited on his Majesty -with an address of thanks “for communicating the -application for an insurance company,” it being “an -instance of so much condescension as deserved the -highest return of duty and thankfulness.”</p> - -<p>Each of the companies thus established had power -to purchase lands to the value of 1000<em>l.</em> yearly. No -person could be a director of the London Assurance -and Royal Exchange at the same time. Each corporation -was to pay 300,000<em>l.</em> for its charter; but -though this was a chief condition, the difficulties into -which they fell induced the government, when -life assurance was added to that of marine and fire -in 1721, to absolve the proprietors from paying -such amount of the 300,000<em>l.</em> as remained unpaid.</p> - -<p>The following is the most correct list which can -be obtained of the assurance projects of the South -Sea bubble era:—</p> - -<p>1. The Royal Exchange.</p> - -<p>2. The London Assurance.</p> - -<p>3. For a general insurance on houses and merchandise, at -the Three Tuns, Swithin’s Alley, 2,000,000<em>l.</em></p> - -<p>4. For granting annuities by way of survivorship, and providing -for widows, orphans, &c., at the Rainbow, Cornhill, -1,200,000<em>l.</em></p> - -<p><span class="pagenum"><a id="Page_82">[82]</a></span></p> - -<p>5. For insuring houses and goods from fire, at Sadler’s Hall, -2,000,000<em>l.</em></p> - -<p>6. For insuring houses and goods in Ireland, with an English -earl at the head of it.</p> - -<p>7. For securing goods and houses from fire, at the Swan -and Rummer, 2,000,000<em>l.</em></p> - -<p>8. Friendly society for insurances.</p> - -<p>9. For insuring ships and merchandise, at the Marine Coffee-house, -2,000,000<em>l.</em></p> - -<p>10. British Insurance Company.</p> - -<p>11. For preventing and suppressing thieves and robbers, -and for insuring all persons’ goods from the same, at Cooper’s, -2,000,000<em>l.</em></p> - -<p>12. Shales’s Insurance Company.</p> - -<p>13. For insuring seamen’s wages, Sam’s Coffee-house.</p> - -<p>14. Insurance Office for horses dying natural deaths, stolen, -or disabled, Crown Tavern, Smithfield.</p> - -<p>15. A company for the insurance of debts.</p> - -<p>16. A rival to the above for 2,000,000<em>l.</em>, at Robin’s.</p> - -<p>17. Insurance Office for all masters and mistresses against -losses they shall sustain by servants, thefts, &c., 3000 shares -of 1000<em>l.</em> each, Devil Tavern.</p> - -<p>18. For a general insurance in any part of England.</p> - -<p>19. A copartnership for insuring and increasing children’s -fortunes, Fountain Tavern.</p> - -<p>20. For carrying on a general insurance from losses by fire -within the kingdom.</p> - -<p>21. Insurance from loss by Garraway’s Fishery, Crutchley’s, -at Jonathan’s Coffee-house.</p> - -<p>22. Mutual Insurance for Ships.</p> - -<p>23. Symon’s Assurance on Lives.</p> - -<p>24. Baker’s second edition of Insurance on Lives.</p> - -<p>25. William Helmes, Exchange Alley, Assurance of Female -Chastity.</p> - -<p>26. Insurance from house-breakers.</p> - -<p>27. Insurance from highwaymen.</p> - -<p>28. Assurance from lying.</p> - -<p><span class="pagenum"><a id="Page_83">[83]</a></span></p> - -<p>29. Plummer and Petty’s Insurance from death by drinking -Geneva.</p> - -<p>30. Rum Insurance.</p> - -<p>A mere glance at this list will show that the ideas -conveyed by some of the titles were sound and -salutary, and that they are now being brought into -action. It is true that we cannot yet insure our -homes against house-breakers, or our persons from -highwaymen; we cannot yet insure our poor population -from death if they drink too much rum or -Geneva; we certainly have yet no assurance against -lying, however necessary it may be in this age of -projects; nor have we, like William Helmes, of -Exchange Alley, commenced a company to insure -female chastity. These were Utopian schemes into -which we have not yet entered; but with many of -the more practical we are growing familiar. The -present “Agricultural Society” answers to that for -insuring cattle. The “Guarantee Company” has -adopted that of “insuring to all masters and mistresses -the losses they may sustain by their servants.” -The company for the “insurance of debts” is at the -present day fairly represented by the “Commercial -Credit Mutual Assurance Company;” nor is there -much doubt that the system will be spread to a still -greater extent. The society for insuring seamen’s<span class="pagenum"><a id="Page_84">[84]</a></span> -wages was very desirable, as the sailor never received -his pay in cash, and parted with his tickets -at a heavy discount. To this some of our naval -losses may be attributed, as our best men went -over to the enemy in consequence. A company, -therefore, which should cash the seamen’s tickets at -a fair rate would have been a national good.</p> - -<p>Of course, schemes were plentiful enough, and -many plans were commenced with no other view -than that of receiving deposits and spending them. -One of the offices was started by an old man called -Le Brun. In 1690, he had promised to bring up -pearls and gold from sunken ships. In 1710, he had -been conspicuous in offering strange benefits to all -who joined his Marriage and Widows’ Assurance -Company; and in 1720, he was ready with something -new. His life had been one of adventurous -daring. He had owned a privateer when privateers -were pirates. He had been, as a boy, with Sir -Henry Morgan in his bucaneering attack on -Panama. He had accompanied Paterson in his ill-fated -Darien expedition. But in all had he failed -to procure the gold for which his soul thirsted, -and that which he did obtain was spent in riot. -When the Mississippi scheme was acting he was in -Paris, and now he came over in time to propose a<span class="pagenum"><a id="Page_85">[85]</a></span> -wonderful project for the benefit of all who would -risk 5<em>l.</em> By this “Office of assurance and annuity -for every body,” any person who paid 5<em>l.</em> was to be -assured of receiving 100<em>l.</em> per annum, “as soon as a -sufficient number had subscribed;” and it need hardly -be added that, as this “sufficient number” never did -subscribe, the assurance of M. le Brun was all that -the unhappy subscribers beheld for their money. To -prevent the public from suffering by the arts of such -men as these, legal proceedings were resorted to; -and when the proclamation was issued, not only did -it destroy the bubbles, but it produced a serious -effect on the two chartered companies. It is probable -that they had been “rigging the market,” as -the directors were ordered to attend the authorities, -in order that they might receive a fitting rebuke; -and it must have been a very impressive, though not -a very picturesque sight, to see a body of respectable, -square-toed, elderly gentlemen, with brown coats -and cocked hats, listening with subdued awe, as -they were sternly cautioned “to keep strictly to the -limitation of their respective charters, <em>or it would be -the worse for them</em>.”</p> - -<p>That they took warning from this caution may be -deduced from the circumstance already stated, that -when they petitioned to be released from the payment<span class="pagenum"><a id="Page_86">[86]</a></span> -of so much of the 300,000<em>l.</em> as was not paid<a id="FNanchor_9_9" href="#Footnote_9_9" class="fnanchor">[9]</a>, -the Chancellor of the Exchequer signified his consent, -and a clause was inserted to that effect in a bill -then passing through the House.</p> - -<p>It must not be supposed that any more scientific -system than that adopted by the Amicable Society -guided these companies. On the contrary, whether -an applicant were 12 or whether he were 45, one -premium was asked. The policy was granted for a -single year, and renewed without reference to age or -to health. The earliest document possessed by either -of these companies is dated 25th November, 1721. -It was granted by the London Assurance to Mr. -Thomas Baldwin, on the life of Nicholas Bourne, -for 100<em>l.</em>, five guineas being the premium for twelve -months; and this was the annual per centage paid -for many years. With such a system, it is not to be -wondered that the success of the company was slow.</p> -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_87">[87]</a></span></p> - - - -<h2>CHAP. VI.</h2> - -<p class="chapter-subheading">SKETCH OF DE MOIVRE.—HIS DOCTRINE OF CHANCES.—KERSSEBOOM.—DE -PARCIEUX.—HODGSON.—DODSON.—FIRST FRAUD IN -LIFE ASSURANCE—ITS ROMANTIC CHARACTER.—THOMAS SIMPSON.—CALCULATIONS -OF DE BUFFON.</p> - - -<p>To the same year which witnessed the proposition -for the new companies we are indebted for the work -entitled the “Doctrine of Chances,” written by -Abraham de Moivre, who, owing to the revocation -of the Edict of Nantes, was compelled to seek -shelter in England, where he perfected the studies -he had commenced in his own country. In his -boyhood he had neglected classics for mathematics, -to the great surprise of his master, who often asked -“what the little rogue meant to do with those -ciphers.” In 1718, he published the first edition -of the above book; and a few extracts from this, -which led him afterwards to his hypothetical application -of those chances to the survivorship of life, -may not be unacceptable; as, though the author -deemed it wise to apologise in his dedication for publishing -a work which “many people in the world<span class="pagenum"><a id="Page_88">[88]</a></span> -might think had a tendency to promote play,” yet -his volume will prove the best apology. The book -is very entertaining in its character, and is an evidence -of an inquiring and mathematical mind employing -itself upon trifling questions rather than -remain idle. Thus, Case 1. is “To find the probability -of throwing an ace in two throws of one die.” -And this kind of problem he varied to almost every -possible form. There is “the probability of throwing -an ace in three throws,” of “throwing an ace in -four throws,” of “two aces in two throws,” of -“two aces in three throws,” worked out in a most -exact and elaborate manner. From dice he proceeded -to lotteries, and showed how many tickets -ought to be taken to secure the probability of a prize. -The volume, a considerable quarto, was nothing more -than an amusing book on gambling and its various -chances. But it produced a better effect. A few -years later, he published something more worthy -of him, in his “Doctrine of Chances, applied to the -Valuation of Annuities on Lives,” in which he says, -with some appearance of surprise, “Two or three -years after the publication of the first edition of my -‘Doctrine of Chances,’ I took the subject into consideration; -and consulting Dr. Halley’s tables of -observation, I found that the decrements of life, for<span class="pagenum"><a id="Page_89">[89]</a></span> -considerable intervals of time, were in arithmetical -progression; for instance, out of 646 persons of 12 -years of age, there remain 640 after 1 year; 634 -after 2 years; 628, 622, 616, 610, 604, 598, 592, -and 586, after 3, 4, 5, 6, 7, 8, 9, and 10 years respectively, -the common difference of those numbers -being 6. Examining afterwards other cases, I found -that the decrements of life for several years were -still in arithmetical progression, which may be observed -from the age of 54 to the age of 71, where the -difference for 17 years is constantly 10.”</p> - -<p>The greatest difficulty which occurred to him was -to invent practical rules that might readily be applied -to the valuation of several lives, “which was, however, -happily overcome, the rules being so easy that, -by the help of them, more can be performed in a -quarter of an hour, than by any method before extant -in a quarter of a year.”</p> - -<p>It was first published in 1725; and finding thus from -Halley that, for several years together the decrement -of life was uniform, it being only in youth and old -age any considerable deviation took place, he founded -an hypothesis that it was uniform from birth to extreme -old age; in other words, that out of a given -number of persons living at any age, “an equal -number die every year until they are all extinct.”<span class="pagenum"><a id="Page_90">[90]</a></span> -On this he gave a general theorem, by which the -values of annuities on single lives might be easily -determined. This was of great use at the time, no -table of the real value of annuities having then been -published, except a very contracted one founded on -Halley’s paper; and if subsequent investigations -proved that De Moivre was utterly wrong, his conclusions -formed the basis of many a future calculation.</p> - -<p>Although the ability of De Moivre was recognised -by the Royal Society when it appointed him arbitrator -in the contest betwixt Newton and Leibnitz, -and although Newton, when applied to for an explanation -of his own works, would often say “Go to -De Moivre, he knows better than I do,” yet it is to -be feared that golden opinions were won by him more -freely than guineas.</p> - -<p>It is sufficiently known that the coffee-houses of -the eighteenth century were the resort of all who -sought intelligence or loved the company of the wits -and fine men about town. To one of these, in St. -Martin’s Lane, De Moivre went, where it was customary -to apply to him for the solution of many -questions connected with annuities, and for answers -to queries concerning games of hazard, which were -propounded to him by those who hoped to turn the<span class="pagenum"><a id="Page_91">[91]</a></span> -chance of loss into a certainty of gain. The payment -of these questions was his chief mode of subsistence; -and there is something unpleasant in the memory of -this man, compelled, in his old age, to be at the bidding -of gamesters, and to consort with men who -lived on the town by their wits.</p> - -<p>The opinion of posterity is divided upon his merits. -“By the most simple and elegant formulæ,” says -Francis Baily, “he pointed out the method of solving -all the most common questions relative to the value -of annuities on single and joint lives, reversions, and -survivorships.” The subsequent editions of his works -prove that he was aware of his errors of detail, by -correcting them. He enlarged the boundaries of the -science which he loved, and encouraged others to -follow in the same path. Although his hypothesis -may not be applicable to all occasions and circumstances, -and though later discoveries proved that it -could not be always safely adopted, “nevertheless it -is still of great use in the investigation of many cases -connected with this subject, and will ever remain a -proof of his superior genius and ability.” Such is -the opinion of Baily on the merits of De Moivre; -but it has been added by Morgan, that “on the -whole the hypothesis of De Moivre has probably -done more harm than good, by turning the attention<span class="pagenum"><a id="Page_92">[92]</a></span> -of mathematicians from investigating the true laws of -mortality.”</p> - -<p>In 1737, an attempt was made to calculate the -number of the people, which was estimated at -6,000,000, an amount probably not very far from -the mark; as in 1688 the population was reckoned -at a little over 5,000,000. Some important assistance -was rendered in 1738, by the publication of -Kersseboom’s tables, taken from the records of life -annuities in Holland<a id="FNanchor_10_10" href="#Footnote_10_10" class="fnanchor">[10]</a>; and as the ages of the annuitants -had been there recorded for 125 years, they -proved a considerable aid to those interested. So<span class="pagenum"><a id="Page_93">[93]</a></span> -small was the progress made in England by 1746, -that Dr. Halley’s Breslau Tables and those of M. -Kersseboom were the only ones which gave anything -like a representation of the true laws of mortality. -In this year, however, the “Essai sur les -Probabilités de la Durée de la Vie Humaine” of M. -De Parcieux, with several valuable tables deduced -from the mortuary registers of religious houses in -France, and from the nominees in the French tontines, -were an additional contribution to our information.</p> - -<p>The first effort to show the value of annuities on -lives from the London Bills of Mortality is attributable -to James Hodgson. Nor was this endeavour -uncalled for or unnecessary. Many assurance offices -had arisen, undertaking to grant these annuities; -and the tables principally in use were founded on the -decrease of life at Breslau. But by the Breslau -Tables, half the people lived till they were about 41 -years of age, while in London half did not reach the -age of 10. This was a vast difference in the estimate -of mortality, and affected the price of annuities in a -proportionate degree. But if the Breslau Tables calculated -life at too high a rate, it was equally evident -that the London Tables made them too low; it is -obvious, therefore, that the value of a life annuity<span class="pagenum"><a id="Page_94">[94]</a></span> -founded on any confined observations would be unsuitable -to the general annuitant; and it is evident -that a scale of prices should have been based on a -more enlarged foundation.</p> - -<p>The work of Mr. Hodgson deserves very great -attention, and the notice of the reader is called to its -investigation, as the conclusions were arrived at after -great labour, and are a specimen of the time and -trouble bestowed on the subject. “The easy way of -raising money for public uses,” says Mr. Hodgson, -“by granting annuities upon lives, has met with so -great encouragement that there is no room to doubt -it will be carried down to future times.” The following -statements of this gentleman will be read with -surprise by those who are acquainted with the chances -of life as calculated at the present day. He estimated -that “1000<em>l.</em> would purchase an annuity of 70<em>l.</em> per -annum for a life of 29 years 10 months, when money -is valued at 3 per cent. per annum; that the same -sum will purchase the same annuity for a life of -23 years, when money is valued at 4 per cent. per -annum; and that the same sum will purchase the -same annuity for a life of 23 years, when money is -valued at 5 per cent. per annum; and that it will -purchase the same annuity for a life of 16 years -2 months, when money is valued at 6 per cent.</p> - -<p><span class="pagenum"><a id="Page_95">[95]</a></span></p> - -<p>“It appears that the highest value of a life is -when the person is about 6 years of age, and that -from the birth to that time the value of lives decrease, -as they do from that time to the utmost -extremity of old age; that a life of 1 year old is -nearly equal in value to a life of 7 years old; that a -life of 3 years old is nearly equal in value to a life of -12 years old; that a life of 4 years old is nearly -equal in value to a life between 9 and 10 years; and -that a life of 5 years is nearly equal in value to a life -of 7 years of age. And hence arose the custom of -putting the value of the lives of minors upon the -same value with those of a middling age, which at -the best is but a bold guess, and made use of for no -better reason, than that they knew of no better way -to find the true value.”</p> - -<p>Such was a portion of Mr. Hodgson’s contribution -in 1747 to vital statistics. This work was followed -in 1751 by the “Observations on the past Growth and -present State of the City of London” of Corbyn -Morris, containing tables of burials and christenings -from 1601 to 1750. The tables were important in -themselves, and the book is noticeable as containing -a proposal to remodel the Bills of Mortality.</p> - -<p>The topic was particularly interesting to mathematical -men. In 1753, Mr. James Dodson pursued<span class="pagenum"><a id="Page_96">[96]</a></span> -the subject, and solved in his “Repository” an immense -variety of questions. Hitherto a table deduced -by Simpson from the London Bills of Mortality, was -the only one taken from real observation. But it need -not be said that London was a very limited theatre -on which to found the payment of premiums. The -number of persons who died there in a given time, -doubled that of other and more healthy cities. It -was impossible to separate the casual visitors from -the natives, in the record of deaths. It was equally -difficult to divide those who had been born there, -from those who were naturalised by virtue of a long -and continued residence. The city, which has ever -been the land of promise to the country, brought -adventurers from the rural districts in a continued -stream. The difficulties which prevented correct information -from spreading may be judged by the -statement that, from 1759 to 1768 a third more -deaths than births were registered, the average -annual burials being 22,956 to 15,910 of births. In -the previous 10 years, the excess had been 10,500, or -near half the burials. The baptismal registries were -also very deficient in that large class denominated -sectarians; Jews, Quakers, Roman Catholics, and all -who refused to recognise the rites of the English -Church being excluded. It required, therefore, care<span class="pagenum"><a id="Page_97">[97]</a></span> -and calculation of no ordinary character to make any -approximation to the truth; and Mr. Dodson believed -he would be nearer it, by adopting the opinions of -De Moivre as the ground work of his tables, rather -than by entering on a sea of uncertain and hypothetical -calculations.</p> - -<p>In 1754, a further “valuation of annuities on lives,” -deduced also from the London Bills of Mortality was -published. By this it appeared that the work of Mr. -Hodgson had not produced much effect in sending -the Breslau Tables out of general use; for, says the -author, “I think it very unreasonable that a poor -citizen of London should be made to pay for an -annuity according to the probability of the duration -of life at Breslau, where, as appears from the bills of -mortality, one-half of the people that are born live -till they are about 41 years of age, whereas at -London one-half die before they arrive at the age -of 13.”</p> - -<p>The first known fraud in assurance is one of the -most singular in its annals. The reader must judge -for himself of the circumstances attending it; but -there is no doubt that others far more fearful in their -results have since been practised.</p> - -<p>About 1730, two persons resided in the then -obscure suburbs of St. Giles’s, one of whom was<span class="pagenum"><a id="Page_98">[98]</a></span> -a woman of about twenty, the other a man whose age -would have allowed him to be the woman’s father, -and who was generally understood to bear that relation. -Their position hovered on the debatable -ground between poverty and competence, or might -even be characterised by the modern term of shabby -genteel. They interfered with no one, and they encouraged -no one to interfere with them. No specific -personal description is recorded of them, beyond -the fact that the man was tall and middle aged, -bearing a semi-military aspect, and that the woman, -though young and attractive in person, was apparently -haughty and frigid in her manner. On a sudden, at -night time, the latter was taken very ill. The man -sought the wife of his nearest neighbour for assistance, -informing her that his daughter had been -seized with sudden and great pain at the heart. -They returned together, and found her in the utmost -apparent agony, shrinking from the approach of all, -and dreading the slightest touch. The leech was -sent for; but before he could arrive she seemed insensible, -and he only entered the room in time to see -her die. The father appeared in great distress, the -doctor felt her pulse, placed his hand on her heart, -shook his head as he intimated all was over, and -went his way. The searchers came, for those birds<span class="pagenum"><a id="Page_99">[99]</a></span> -of ill-omen were then the ordinary haunters of the -death-bed, and the coffin with its contents was committed -to the ground. Almost immediately after this -the bereaved father claimed from the underwriters -some money which was insured on his daughter’s life, -left the locality, and the story was forgotten.</p> - -<p>Not very long after, the neighbourhood of Queen -Square, then a fashionable place, shook its head -at the somewhat unequivocal connection which existed -between one of the inmates of a house in that -locality, and a lady who resided with him. The -gentleman wore moustaches, and though not young, -affected what was then known as the macaroni -style. The lady accompanied him everywhere. The -captain, for such was the almost indefinite title -he assumed, was a visitor at Ranelagh, was an -<i lang="fr" xml:lang="fr">habitué</i> of the Coffee-houses, and being an apparently -wealthy person, riding good horses and keeping an -attractive mistress, he attained a certain position -among the <i lang="fr" xml:lang="fr">mauvais sujets</i> of the day. Like many -others at that period, he was, or seemed to be, a -dabbler in the funds, was frequently seen at Lloyd’s -and in the Alley; lounged occasionally at Garraway’s; -but appeared more particularly to affect the company -of those who dealt in life assurances.</p> - -<p>His house soon became a resort for the young and<span class="pagenum"><a id="Page_100">[100]</a></span> -thoughtless, being one of those pleasant places where -the past and the future were alike lost in the present; -where cards were introduced with the wine, and where, -if the young bloods of the day lost their money, they -were repaid by a glance of more than ordinary -warmth from the goddess of the place; and to which, -if they won, they returned with renewed zest. One -thing was noticed, they never won from the master -of the house, and there is no doubt, a large portion -of the current expenses was met by the money -gambled away; but whether it were fairly or unfairly -gained, is scarcely a doubtful question.</p> - -<p>A stop was soon put to these amusements. The -place was too remote from the former locality, the -appearance of both characters was too much changed -to be identified, or in these two might have been -traced the strangers of that obscure suburb where as -daughter, the woman was supposed to die, and as -father, the man had wept and raved over her remains. -And a similar scene was once more to be acted. The -lady was taken as suddenly ill as before; the same -spasms at the heart seemed to convulse her frame, -and again the man hung over her in apparent agony. -Physicians were sent for in haste; one only arrived -in time to see her once more imitate the appearance -of death, while the others, satisfied that life had fled,<span class="pagenum"><a id="Page_101">[101]</a></span> -took their fees, “shook solemnly their powdered -wigs,” and departed. This mystery, for it is evident -there was some collusion or conspiracy, is partially -solved when it is said, that many thousands were -claimed and received by the gallant captain from -various underwriters, merchants, and companies with -whom he had assured the life of the lady.</p> - -<p>But the hero of this tradition was a consummate -actor; and though his career is unknown for a long -period after this, yet it is highly probable that he -carried out his nefarious projects in schemes which -are difficult to trace. There is little doubt, however, -that the <i lang="fr" xml:lang="fr">soi-disant</i> captain of Queen Square was -one and the same person who, as a merchant, a few -years later appeared daily on the commercial walks -of Liverpool; where, deep in the mysteries of corn -and cotton, a constant attender at church, a subscriber -to local charities, and a giver of good dinners, he soon -became much respected by those who dealt with him -in business, or visited him in social life. The hospitalities -of his house were gracefully dispensed by a -lady who passed as his niece, and for a time nothing -seemed to disturb the tenour of his way. At length -it became whispered in the world of commerce, that -his speculations were not so successful as usual; and -a long series of misfortunes, as asserted by him, gave<span class="pagenum"><a id="Page_102">[102]</a></span> -a sanction to the whisper. It soon became advisable -for him to borrow money, and this he could only -do on the security of property belonging to his niece. -To do so it was necessary to insure their lives for -about 2000<em>l.</em> This was easy enough, as Liverpool, -no less than London, was ready to assure anything -which promised profit, and as the affair was regular, -no one hesitated. A certain amount of secresy was -requisite for the sake of his credit; and availing -himself of this, he assured on the life of the niece -2000<em>l.</em> with, at any rate, ten different merchants -and underwriters in London and elsewhere. The -game was once more in his own hands, and the same -play was once more acted. The lady was taken ill, -the doctor was called in and found her suffering -from convulsions. He administered a specific and -retired. In the night he was again hastily summoned, -but arrived too late. The patient was declared to be -beyond his skill; and the next morning it became -known to all Liverpool that she had died suddenly. -A decorous grief was evinced by the chief mourner. -There was no haste made in forwarding the funeral; -the lady lay almost in state, so numerous were the -friends who called to see the last of her they had -visited; the searchers did their hideous office gently, -for they were, probably, largely bribed; the physician<span class="pagenum"><a id="Page_103">[103]</a></span> -certified she had died of a complaint he could -scarcely name, and the grave received the coffin. -The merchant retained his position in Liverpool, and -bore himself with a decent dignity; made no immediate -application for the money, scarcely even alluding -to the assurances which were due, and when they -were named, exhibited an appearance of almost apathetic -indifference. He had, however, selected his -victims with skill. They were safe men, and from -them he duly received the money which was assured -on the life of the niece.</p> - -<p>From this period he seemed to decline in health, -expressed a loathing for the place where he had once -been so happy; change of air was prescribed, and he -left the men whom he had deceived, chuckling at the -success of his infamous scheme.</p> - -<p>It need not be repeated, that the poverty-stricken -gentleman of the suburbs, the gambling captain of -Queen Square, and the merchant of Liverpool, were -identical. That so successful a series of frauds was -practised appears wonderful at the present day; but -that the woman either possessed that power of simulating -death, of which we read occasional cases in the -remarkable records of various times, or that the physicians -were deceived or bribed, is certain. There is -no other way of accounting for the success of a scheme<span class="pagenum"><a id="Page_104">[104]</a></span> -which dipped so largely into the pockets of the underwriters.</p> - -<p>The next movement in the scientific annals of life -assurance was made by Thomas Simpson, a natural -and self-taught mathematician, whose life prior to -throwing himself on the world of London for support -had been somewhat of a vagrant one. He had cast -rustic nativities, told fortunes, advanced courtships, -and occasionally varied his vagabondism by undertaking -to raise the devil, an attempt in which he was -so successful, that he sent his pupil mad, and was -obliged himself to leave the village. In 1740, he -produced a volume “On the Nature and the Laws of -Chance;” in 1742, this was followed by his “Doctrine -of Annuities and Reversions,” deduced from general -and evident principles, with tables showing the value -of joint and single lives. In 1752, he made an -additional contribution to the statistics of annuities, as -he published in his “Select Exercises” a supplement, -wherein he gave new tables of the values of annuities -on two joint lives, and on the survivor of two lives, -more copious than hitherto. He first attempted to -compute the value of joint lives; but as these were -still taken from the London Bills of Mortality, they -were by no means fit for general acceptance. He<span class="pagenum"><a id="Page_105">[105]</a></span> -treated his subject, however, more broadly and clearly -than it had been previously treated, giving some of -the best tables of the values of life annuities, which -were published for many years. Though the manner -in which they might be computed had been shown -by Dr. Halley, it is to the self-taught Simpson we -are indebted for their practical application.</p> - -<p>In 1760, M. Buffon published a further contribution -to the statistics of assurance, in a table of -the probabilities of life, estimated from the mortality -bills of three parishes in Paris, and two country -parishes in its neighbourhood.</p> - -<p>The following are some of his calculations:—“By -this table,” says the author, “we may bet 1 to 1 -that a new-born infant will live 8 years; that a child -of one year old will live 33 years more, that a child -of full two years old will live 33 years and 5 months -more, that a man of thirty will live 28 years more; -that a man of forty will live 22 years longer, and so -through the other ages.”</p> - -<p>Buffon adds, “The age at which the longest life is -to be expected is 7, because we may lay an equal -wager, or 1 to 1, that a child of that age will live -42 years and 3 months longer. That at the age of -twelve or thirteen, we have lived a fourth part of our<span class="pagenum"><a id="Page_106">[106]</a></span> -life, because we cannot reasonably expect to live -38 or 39 years longer; that in like manner at the -age of 28 or 29, we have lived one-half of our life, -because we have but 28 years more to live; and -lastly, that before fifty we have lived three-fourths of -our life, because we can hope but for 16 or 17 years -more.”</p> - -<p>Some profound moral reflections followed these -estimates; and as a critic of the day “thought all -serious remarks out of place in an arithmetical -calculation, and that M. Buffon had better reserve -them for his book on beasts,” the reader will not be -troubled with their repetition. He will not, however, -be displeased to read the remarks on this table, by -one of the annotators of the day.</p> - -<p>“For insuring for 1 year the life of a child of -three years old we ought to pay 10 per cent., for as it -has by M. Buffon’s table an equal chance of living -40 years, it is 40 to 1 that it does not die in a year. -In the same manner we ought to pay but 3 per cent. -for insuring for 1 year the life of a lad of nineteen -or twenty; but 4 per cent. for insuring for 1 year -the life of a man of thirty-five; and 5 per cent. per -annum for insuring for 1 year the life of a man of -forty-three; after which the insurances ought to<span class="pagenum"><a id="Page_107">[107]</a></span> -rise above 5 per cent. in proportion to the advance -of a person’s age above forty-three. So that a man -of seventy-seven ought to pay 25 per cent., and a -man of eighty-five <span class="nowrap">33 <span class="fnum">1</span>/<span class="fden">2</span></span> per cent. for insuring his life -for 1 year.”</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_108">[108]</a></span></p> - - - - -<h2>CHAP. VII.</h2> - -<p class="chapter-subheading">RISE AND PROGRESS OF THE EQUITABLE—ITS DANGERS AND ITS -DIFFICULTIES—COMPARATIVE PREMIUMS.—SKETCH OF MR. -MORGAN—HIS OPINIONS.—SINGULAR ATTEMPT TO DEFRAUD THE -EQUITABLE—DEATH OF THE OFFENDER.—ATTEMPT OF GOVERNMENT -TO ROB THE OFFICES.</p> - - -<p>The first meeting of the Equitable Society for -the assurance of life and survivorship “was holden at -the White Lion in Cornhill” in 1762, when only -four assurances were effected. In the next four -months their number did not exceed thirty; and so -lightly were the prospects of the institution held by -those having authority, that when the Attorney-General -was applied to for an act of incorporation,—“I -do not think the terms are sufficiently high,” was -his intelligent opinion, “to justify me in advising the -Crown to grant a charter.”</p> - -<p>Such was the commencement of this institution. -For many years prior, the Equitable had been -struggling into being, aided by the lectures of “the -justly celebrated Mr. Thomas Simpson,” but yet<span class="pagenum"><a id="Page_109">[109]</a></span> -more by the strenuous exertion of Edward Rowe -Mores, an accomplished antiquarian and an enlightened -gentleman. To his “great pain and travel,” -says the deed of settlement, “the society was indebted -for its establishment,” and in return its promoter was -made a director for life with an annuity of 100<em>l.</em><a id="FNanchor_11_11" href="#Footnote_11_11" class="fnanchor">[11]</a> -Though its board of management included some of -the first bankers and merchants of the day, yet then, -as now, it seemed necessary to catch a peer of the -realm to act as decoy, so Lord Willoughby de -Parham, with no interest in its movements or concern -in its affairs, was paraded before the public as patron -and director, and at the end of two years was gravely -thanked for the use of his name in maintaining the -reputation of the novel society. It was probably, -however, the working spirits, such as Sir Richard -Glyn<a id="FNanchor_12_12" href="#Footnote_12_12" class="fnanchor">[12]</a> and Sir Robert Ladbroke who took charge<span class="pagenum"><a id="Page_110">[110]</a></span> -of its movements, and who were guilty of, or at any -rate were responsible for, the double dealing which -followed; for it is quite in keeping with the commercial -integrity of the eighteenth century, that the -directors, fearing its slow growth would injure its -character, gave it the appearance of a more rapid -advance, by adopting the unworthy expedient of -calling the 25th policy the 275th, thus inducing the -world to understand that the society consisted of 250 -more members than its actual number. Thus the -success of the Equitable institution may be dated -from the mendacious employment of names, and from -an absolute deception in the number of the policies. -For many years, an utter indifference was exhibited -by the policy holders about the concerns of the -society. It was useless to advertise a general court, -as a sufficient number to form a meeting did -not answer to the call. Nor could a full court -be procured until the cupidity of the members was -appealed to, and five guineas were promised to the -first twenty-one who should arrive before twelve -o’clock. Then, and not till then, were the meetings -properly attended; a fact which speaks loudly for the<span class="pagenum"><a id="Page_111">[111]</a></span> -shrewdness of those who devised the scheme, and the -avarice of those who formed the association.</p> - -<p>The usual quarrels which depress young institutions, -pursued the Equitable; and twenty-one -persons who had contributed to pay the original -expenses made a sudden claim of 15<em>s.</em> for every -100<em>l.</em> assured. This was resisted by the new members, -and “kindled into a flame that might have -destroyed the society, had not the moderation and -good sense of Sir Charles Morgan and a few other -sober-minded gentlemen allayed the fervour of the -contending parties, and prevailed on them to enter -into a compromise.” The natural result of this -“flame” was to decrease the number of policies from -564 in 1768, to 490 in 1770, and it was some time -before the assurances were again increased.</p> - -<p>There were many reasons for its comparative want -of success. There was an air of mystery about the -Equitable which did not become a commercial institution, -and which is now difficult to understand. In -December, 1762, a solemn oath was taken by -directors and actuary, “never to discover the names -of persons making or applying for assurances,” as if -some unimaginable disgrace attached to it. The -terms, notwithstanding the learned opinion of Mr. -Attorney-General, were enormous; for Mr. Dodson,<span class="pagenum"><a id="Page_112">[112]</a></span> -taking the London Bills of Mortality from 1728 to -1750 as his foundations, produced premiums so high -as to be almost prohibitive. He had, “for greater -security, assumed the probabilities of life in London -during a period of 20 years, which, including the -year 1740, when the mortality was almost equal to -that of a plague, rendered such premiums much higher -than they ought to have been, even according to the -ordinary probabilities of life in London itself.”</p> - -<p>In addition, there were certain fantastic extreme -premiums for fancied risks: there was “youth hazard,” -“female hazard,” and “occupation hazard”! There -was 11 per cent. placed on the premiums of “officers -on half-pay,” and on persons “licensed to retail -beer.” There was no capital on which to fall back, -as with the Royal Exchange and London Assurance; -and in addition, the original subscribers claimed all -the entrance money for themselves, so that, altogether, -it is no great wonder there was a lassitude and lack -of vigour in the first few years of the institution. -There was also probably more impediment in insuring -with a company than with a jobber, as the -underwriters would not be hedged with the forms -and ceremonies which always surround a board of -directors.</p> - -<p>The following is a comparative statement of the<span class="pagenum"><a id="Page_113">[113]</a></span> -premiums in 1771, with those now charged; and -though the former may excite a smile, we must remember -that up to this period there had been no -attempt whatever to vary the payments in proportion -to age, but that 5 per cent. was still the accustomed -demand for youth and eld:—</p> - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="historical premiums"> -<tr><td align="left"></td><td></td><td colspan="7" align="center">Premiums in 1771.</td><td></td><td colspan="3" align="center">Present</td></tr> -<tr><td align="right">Age.</td><td><span class="cellpadding1"> </span></td><td colspan="3" align="center"><span class="cellpadding2">Male.</span></td><td><span class="cellpadding1"> </span></td><td colspan="3" align="center">Female.</td><td></td><td colspan="3" align="center">Premiums.</td></tr> -<tr><td align="center"></td><td></td><td align="right"><em>£</em></td><td align="right"><em>s.</em></td><td align="right"><em>d.</em></td><td></td><td align="right"><em>£</em></td><td align="right"><em>s.</em></td><td align="right"><em>d.</em></td><td><span class="cellpadding1"> </span></td><td align="right"><em>£</em></td><td align="right"><em>s.</em></td><td align="right"><em>d.</em></td></tr> -<tr><td align="center">14</td><td></td><td align="right">2</td><td align="right">17</td><td align="right">0</td><td></td><td align="right">3</td><td align="right">3</td><td align="right">11</td><td></td><td align="right">1</td><td align="right">17</td><td align="right">7</td></tr> -<tr><td align="center">20</td><td></td><td align="right">3</td><td align="right">9</td><td align="right">4</td><td></td><td align="right">3</td><td align="right">14</td><td align="right">3</td><td></td><td align="right">2</td><td align="right">3</td><td align="right">7</td></tr> -<tr><td align="center">25</td><td></td><td align="right">3</td><td align="right">14</td><td align="right">0</td><td></td><td align="right">4</td><td align="right">1</td><td align="right">5</td><td></td><td align="right">2</td><td align="right">8</td><td align="right">1</td></tr> -<tr><td align="center">30</td><td></td><td align="right">3</td><td align="right">18</td><td align="right">7</td><td></td><td align="right">4</td><td align="right">4</td><td align="right">4</td><td></td><td align="right">2</td><td align="right">13</td><td align="right">4</td></tr> -<tr><td align="center">40</td><td></td><td align="right">4</td><td align="right">17</td><td align="right">9</td><td></td><td align="right">5</td><td align="right">4</td><td align="right">8</td><td></td><td align="right">3</td><td align="right">8</td><td align="right">0</td></tr> -<tr><td align="center">49</td><td></td><td align="right">6</td><td align="right">2</td><td align="right">5</td><td></td><td align="right">6</td><td align="right">11</td><td align="right">0</td><td></td><td align="right">4</td><td align="right">17</td><td align="right">10</td></tr> -</table></div> - -<p>In 1769, the continuance of the Equitable must -have been very doubtful; and had it not been for -Dr. Price’s treatise, which recommended it to public -notice, it is possible that this beneficial institution -would have been closed. Hitherto its actuaries had -been men who knew nothing about their business. -The first, Mr. Mosdell, was a simple accountant; its -second, Mr. Dodson, son of the mathematician, possessed -the name, without the acquirements, of his -father; the third, Mr. Edwards, was sufficiently -aware of his own incapacity never to trust to himself; -the fourth was a vice-president, who knew about as -much of the art as his predecessor; nor was it until<span class="pagenum"><a id="Page_114">[114]</a></span> -1775, when Mr. Morgan was appointed, through the -interest of his uncle, Dr. Price, that any real progress -was made. From this period a new era may -be dated; and “the society, no longer going on from -year to year in ignorance and terror, incapable of deducing -any just conclusion as to its real state, became -now, by its more intimate connection with Dr. Price, -possessed of ample means for ascertaining that fact -and forming its future measures on the solid principles -of mathematical science.”</p> - -<p>In 1776, as Dr. Price urged on the directors the -necessity of decreasing the tables of premiums, declaring -them to be exorbitant and absurd, the female -and youth hazard were at once abolished; and in -consequence of an examination of the accounts, all -the payments were reduced one-tenth. In 1780, on -the recommendation of the same gentleman, the -Chester and Northampton observations of mortality -were adopted as the basis of the premiums, with an -addition of 15 per cent., because certain directors -thought the doctor was lowering the character of -the institution by lowering the charges. In 1786, -however, this 15 per cent. was discontinued, and -various additions were made to the policies, which, -like the taste of human flesh to the tiger, stimulated<span class="pagenum"><a id="Page_115">[115]</a></span> -the proprietors to ask for more.<a id="FNanchor_13_13" href="#Footnote_13_13" class="fnanchor">[13]</a> At the next meeting, -ignorance and avarice united to demand a repetition -of the bonus; but the majority decided on investigating -the affairs of the society, and so satisfactory -was the result, that a further 2 per cent. was added. -In another two years an addition of 1 per cent. of all -insurances of an earlier date than 1795 was voted; -but still the cry was “Give! give!!” from a few absurd -and insatiable proprietors. Success continued -to mark the progress of the society; and by 1815, -alarm being manifested lest it should become unmanageable -from its magnitude, a resolution was -passed limiting the participators in the surplus to -5000. Decennial investigations were agreed to, and -the Equitable maintained its brilliant career. Below -is a tabular statement of its progress; but it would -be unjust to close this sketch without a more special -allusion to one whose name was connected with it for -upwards of half a century. Mr. Morgan, nephew to -Dr. Price, was, as his name would imply, a native of -the principality. Although originally educated for -the medical profession, he showed so great a tabular<span class="pagenum"><a id="Page_116">[116]</a></span> -aptitude, and evinced so much facility in the acquirement -of mathematical knowledge, that Dr. Price -induced him to relinquish the profession of surgeon -for the situation of actuary to the Equitable; his -management of which, seeing it rise from a capital of -a few thousands to many millions, was sound and judicious; -and although the institution contained in itself -the germ of its success, yet Mr. Morgan’s arrangements -tended to raise it to a position of almost -national importance. His mathematical attainments -were of the highest order; he contributed important -papers to our scientific publications; he wrote various -valuable works on annuities; and many a reader will -call to mind his last few appearances at the meetings -of the Equitable, when, drawn from his retirement, -he stood bravely up to oppose, with the experience of -a long life, the rash innovations of greedy proprietors; -when he alluded so modestly to his past services, and -touched so feelingly on that great misfortune, the -death of his “friend, associate, and son,” which had -compelled him to leave his retirement and to appear -in defence of those rules and regulations by which he -had conducted the Equitable to a distinguished success.</p> - -<p>At the present time the following warning of this -“old man eloquent,” uttered at one of these meetings, -may have an effect in staying the demand for<span class="pagenum"><a id="Page_117">[117]</a></span> -decreased premiums, annual divisions, and half-yearly -bonuses:—“Can anything be more absurd, or betray -greater ignorance, than to propose an annual profit -and loss account in a concern of this kind, or to -regulate the dividend or the call by the success or -failure of each year?... Exclusive of the immense -labour of such an investigation, the events of one -year vary so much from those of another that no -general conclusion can be safely deduced from the -experience of so short a term.”</p> - -<p>A tradition is current that, very shortly after the -establishment of the office, a fraud was discovered -in time to save the society from loss and to hang -the criminal for the attempt. A man named Innes -induced his step-daughter to insure her life with the -Equitable for 1000<em>l.</em> Soon after this she died, and in -proper time Innes produced a will, duly signed and -attested by her, making him executor and legatee. -There were facts connected with her death which -seemed morally to implicate him in a terrible tragedy, -but there was nothing which could be brought -home as legal proof. The character of the man, his -eagerness to procure the money, the doubtful circumstances -of the case altogether, made the assurers -hesitate, and they took the bold course of refusing to -pay, upon the ground that the will was not a genuine<span class="pagenum"><a id="Page_118">[118]</a></span> -document. But the man whose character was bad -enough to justify such suspicions, was not likely to -lose his money for want of a few false oaths, so he -produced upon the trial one of the attesting witnesses, -who swore that the will was executed in -Glasgow, and that he personally knew the other -witness. As Innes, however, undertook to procure -further evidence in his favour, the trial was postponed, -and when it came on a second time every -thing went swimmingly on in his favour. His two -confederates, one of them was named Borthwick, were -ready to swear anything and everything. The time, -the place, the room, were minutely described; the -scene was graphically painted; and they sat down -satisfied that they had played their parts to perfection. -But Innes was not contented: he wanted the -thousand pounds; and resolved to “make assurance -doubly sure,” another person was called, who was to -clench the argument by proving that he saw the -deceased person sign the will in the presence of the -two men who had attested the signature. This witness -appeared with fatal effect. Wan and ghastly -he is said to have arisen in the witness-box, and well -might he be ghastly who was about to peril a -brother’s life! “My Lord,” he said, “my name is -Borthwick. I am brother to the witness of the<span class="pagenum"><a id="Page_119">[119]</a></span> -same name who has been examined. <em>The will was -not made on the Bridge-gate at Glasgow, it was forged -by a schoolmaster in the Maze, in the Borough!</em>” -The trial immediately ceased: “a screw is loose,” -said Innes, as in vain he endeavoured to glide out -of court. Of the confederates in this base deed one -graced the pillory, another was imprisoned, Innes -himself paid the extreme penalty of life, the office -escaping the meditated fraud.</p> - -<p>It is said to be the boast of the Equitable that -this was the only case in which they found it necessary -to appeal to law.</p> - -<p>Whatever defects may have characterised the constitution -of this Society, it was a great improvement -on the arrangements of the Amicable and the two -proprietary companies. It did all that a legitimate -life office could be supposed to do. It assured lives -for any number of years, or for the whole continuance -of life. It took the price of the assurance in one -present payment, or it accepted annual premiums. -It allowed annuities to the survivors if they preferred -it; and though the scale might be too high for what -we now know, it at least was more business-like than -its contemporaries; for so slow were the latter to -profit by experience, that it was not until the commencement -of the nineteenth century that the Royal<span class="pagenum"><a id="Page_120">[120]</a></span> -Exchange Corporation availed itself of the Northampton -Tables to compute its premiums.</p> - -<p>In 1779, Mr. Morgan produced his “Doctrine of -Annuities and Assurances.” This gentleman was the -first to detect the inaccuracy of the rules which -Mr. Simpson with others had given to discover the -value of contingent annuities, and which he himself -had adopted in the above work. Notwithstanding -the castigation he received from Mr. Baily, for his -“loose and obscure manner,”—for the “grossest -errors,”—for “distorting,”—for “enveloping in mystery,”—for -“introducing a depraved taste in mathematical -reasoning,” there is no doubt that his was -the earliest attempt to give correct solutions on -the various cases of deferred annuities which had -arisen out of his experience in the Equitable.</p> - -<p>The following additions were made to the policies -of the Equitable by 1800:—</p> - -<p><span class="pagenum"><a id="Page_121">[121]</a></span></p> - - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="Equitable additions to policies"> -<tr><td align="right"></td><td align="right"><span style="padding-right:0.5em"><em>£</em></span></td><td align="right"><em>s.</em></td><td align="right"><em>d.</em></td></tr> -<tr><td align="right">For every 100<em>l.</em> assured in 1762</td><td align="right"><span style="padding-left:1.25em">258</span></td><td align="right">0</td><td align="right"><span style="padding-left:0.5em">0</span></td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1763</td><td align="right">249</td><td align="right"><span style="padding-left:0.25em">10</span></td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1764</td><td align="right">241</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1765</td><td align="right">232</td><td align="right">10</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1766</td><td align="right">224</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1767</td><td align="right">215</td><td align="right">10</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1768</td><td align="right">207</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1769</td><td align="right">198</td><td align="right">10</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1770</td><td align="right">190</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1771</td><td align="right">181</td><td align="right">10</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1772</td><td align="right">173</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1773</td><td align="right">164</td><td align="right">10</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1774</td><td align="right">156</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1775</td><td align="right">147</td><td align="right">10</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1776</td><td align="right">139</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1777</td><td align="right">130</td><td align="right">10</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1778</td><td align="right">122</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1779</td><td align="right">113</td><td align="right">10</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1780</td><td align="right">105</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1781</td><td align="right">96</td><td align="right">10</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1782</td><td align="right">88</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1783</td><td align="right">81</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1784</td><td align="right">74</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1785</td><td align="right">67</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1786</td><td align="right">60</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1787</td><td align="right">54</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1788</td><td align="right">48</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1789</td><td align="right">42</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1790</td><td align="right">36</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1791</td><td align="right">30</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1792</td><td align="right">24</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1793</td><td align="right">19</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1794</td><td align="right">16</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1795</td><td align="right">13</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1796</td><td align="right">10</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1797</td><td align="right">8</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1798</td><td align="right">6</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1799</td><td align="right">4</td><td align="right">0</td><td align="right">0</td></tr> -<tr><td align="right"><span class="quotepadding4">”</span><span class="quotepadding4">”</span>1800</td><td align="right">2</td><td align="right">0</td><td align="right">0</td></tr> -</table></div> -<p>That a desire for the benefit of insuring was -spreading, and that the commercial relations of the -Continent were increasing, may be traced in the fact -that in 1765 his Prussian Majesty granted letters<span class="pagenum"><a id="Page_122">[122]</a></span> -patent for establishing a chamber of assurance in -Berlin for thirty years, during which period no other -assurance office was to be allowed in any part of -Prussia; and during the same year, the free city of -Hamburg established a company for the sale, not -only of immediate, but of deferred annuities.</p> - -<p>In 1765, one of those insolent attempts occurred -on the part of the state, which reminds the reader -of an absolute, rather than of a representative, -government. The peace concluded in 1763, followed -a war which cost upwards of a hundred millions, and -the bribery which was necessary to carry the treaty -through the House, had contributed to exhaust the -treasury. Money was to be acquired, and the people -grumbled at the taxation necessary to raise it. In -this dilemma it suddenly occurred to the ministers -that there might be unclaimed property in the -assurance offices, and by some confusion of right and -wrong it was thought just to claim this private property -for the public good. Nothing could more -decidedly approach confiscation. But in dealing -with these offices the government was dealing with -a large and influential body of proprietors whose -gains were aided by this “dead cash,” and who were -not men to see their purses invaded with impunity. -The Amicable, the Royal Exchange, the London<span class="pagenum"><a id="Page_123">[123]</a></span> -and the Equitable Assurance Companies numbered -among their shareholders the greatest mercantile -names of the day; they were the same men, or of -the same generation, who as directors or as proprietors -of the Bank of England resisted, a few years -later, the just demand of William Pitt for the -unclaimed dividends on the national debt; a demand -so obviously sound that its opponents had not an -argument to support their refusal. If, then, they -were so vigorous when wrong, it may be imagined -that they stood boldly forward when they were -right. Their courage was undaunted, and they positively -defied the claim. The Whigs declared that it -was as barefaced as shutting the Exchequer by the -Second Charles; the Jacobites said they might as -well have a Stuart as a Guelph, that the minister -had mistaken his men, and that under no circumstances -would they voluntarily yield. Pamphlets -were issued, which distinctly asserted that no one -would trust a government acting so infamously; that -confiscation of private property to pay a nation’s -debts was only one remove from bankruptcy; and -that no citizen would lend money to a government -so unprincipled. The propriety and proper feeling -of the people aided the resistance of the offices, and<span class="pagenum"><a id="Page_124">[124]</a></span> -the attempt was only successful in proving to the -state, that all arbitrary power had past away, and -that for the future an honest course would be their -best policy.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_125">[125]</a></span></p> - - - - -<h2>CHAP. VIII.</h2> - -<p class="chapter-subheading">BUBBLE ANNUITY COMPANIES—THEIR PROMISES—EFFECT ON THE -PEOPLE.—DR. PRICE—HIS LIFE.—SIR JOHN ST. AUBYN.—THE -YORKSHIRE SQUIRE—ASSURANCES ON HIS LIFE—HIS SUICIDE.</p> - - -<p>The bubbles which sprang up in the shape of -annuity institutions were numerous. They were -becoming objects of serious concern. They attracted -the class which understood the least. They appealed -to the finest sympathies of nature, and traded in the -feelings they sought to excite. Projectors and promoters -arose, and with them came societies which -could do nothing but empty the pocket of the subscriber -to fill that of the manager. There were -annuity clubs for naval and for military men, for -clergymen and clerks, for schoolmasters and for -tradesmen; but as there was no special information -by which to govern the rates, or as those rates were -more tempting than trustworthy, the subscribers -were fleeced, partly in proportion to their own ignorance, -and partly in proportion to the consciences of -the directors. This was the era of annuity societies,<span class="pagenum"><a id="Page_126">[126]</a></span> -as the present is the era of life assurance. A prodigious -traffic was carried on in such schemes, and a -perfect rage for forming them spread through the -kingdom.</p> - -<p>The most tempting names which could be chosen -allured the world. Prospectuses of a vaunting character -were passed from hand to hand. The promises -of Mr. Montague Tidd, of the Anglo-Bengalee, -were nothing to these. Widows were to be provided -with all they required, for a nominal amount. -Children were to be endowed with fortunes, for comparatively -nothing. The London Annuity and -Laudable Society out-heroded Herod. The coffee-houses -were haunted by agents to spread the praises -of a royal Lancaster. Touters—this modern title is -expressive—who brought a certain number of subscribers, -were allowed the privileges of most of the -societies for nothing. A commission of the first year’s -premium was no uncommon reward to those who -attracted a new victim, and very heartless and infamous -was the result. In one case a son brought the -savings of a parent to a company which was sure to -break. Friends insidiously recommended societies, -under the guise of kindness, to their intimate acquaintance, -and so long as they pocketed the heavy -reward, were regardless of consequences. These<span class="pagenum"><a id="Page_127">[127]</a></span> -associations spread from London to the Continent. -Amsterdam, Bremen, Denmark, and Hanover were -filled with wretched bubbles of this character, which -carried misery to hundreds of homes.</p> - -<p>The people were utterly guiltless of all knowledge -on the subject. The information which had been -brought forward from time to time, had produced its -effect on the scientific portion of the world, but those -who were practically interested, knew nothing. The -young and unthinking were so ignorant or so -indifferent to results, that they were content to pay -only a fourth or fifth of the fair amount of premiums -for their deferred annuities. The elder and more -cunning—and by these the societies were principally -supported—thought that the bubbles would last -their time, and with the selfishness of age, were -content. But in the midst of their contentment a -shell exploded in their citadel. Dr. Price, an unsuccessful -Unitarian preacher, and the contributor of -many rare papers to the “Philosophical Transactions,” -published the work which has brought his -name down to the nineteenth century as a deep -thinker. There had been hitherto little or no -advance in the science which regulated assurance or -annuities on lives. The reputation of the doctor -drew attention to his work. It was there found<span class="pagenum"><a id="Page_128">[128]</a></span> -that, not content with the tables of mortality from -Breslau, he had obtained correct tables from Northampton, -Norwich, Chester, and other places. He -entered minutely and by name into the prospects of -the various societies, he proved it to be utterly -impossible for them to perform their contracts, and -averred that, if some fresh arrangements were not -entered into, to strengthen the existing companies, -they must inevitably fail, for they were founded on -principles which could not last; which must deceive -the public; and which could only pay the contrivers.</p> - -<p>It was seen that no ordinary care and research -had been bestowed on his calculations. Chester, -Warrington, and Shrewsbury had contributed the -English portion of the statistics. From abroad, -Sweden and Finland had sent the mean numbers of -the living with the annual deaths for twenty-one successive -years, together with a complete set of tables -of the values of the annuities on single lives, both -with and without the distinction of sexes, which -completed the interest of a book that is yet quoted -with respect. If the book itself were thus important, -the character of the writer was sufficiently established -to secure a favourable reception to his doctrines. -He had already written on the subject, and nothing -more completely evinces the general ignorance than<span class="pagenum"><a id="Page_129">[129]</a></span> -that his two previous papers should have been devoted -to topics which are now self-evident; one of -them being to demonstrate that marshy ground -was insalubrious; and another, to prove that the -value of life in large close towns, was less than in the -wide, invigorating country.</p> - -<p>From Dr. Price the world first heard that half of the -children who were born in London, died under three -years of age; that in Vienna and Stockholm, half -died under two; in Manchester, under five; and in -Northampton, under ten. “London,” said the worthy -Unitarian, “is a gulf which swallows up an -increase equal to near three-fourths of that of -Sweden.” The results of the work were as good as -the work itself. The papers of the day quoted its -opinions; the subscribers to the annuity societies -took the alarm, discontinued their subscriptions, or -demanded an inquiry. The rage for establishing -new annuity companies was as suddenly stopped by -Dr. Price, as in 1720 the old companies were stopped -by the arm of the law. A partial reformation was -attempted in some, the managers of others suddenly -disappeared, while a still greater number finding it -impossible to continue, dissolved their society and -left the unhappy annuitants to regret their carelessness -and digest their loss. Of course, the author did<span class="pagenum"><a id="Page_130">[130]</a></span> -not escape abuse, and many an anathema was launched -at the head of the doctor, and many an epigram -pointed at him by those “who live by others’ losses.”</p> - -<p>In 1779, he made a further attempt to contribute -to the information of the public in an “Essay on the -Population of England;” but the data on which he -founded his opinion, was scarcely certain enough to -render his conclusions of much value to the statistician. -In the fourth edition of his work on annuities, -he gave several valuable tables on single and -joint lives, at various rates of interest, not only -from the probabilities of life at Northampton, but -also from the same probabilities at Sweden. His -after career is well known. He was employed to -form a plan by which the poor might support -themselves in sickness and in old age; but which, -when introduced to the senate, was rejected. He -lived to see the French Revolution, and to be a -prophet of good concerning it. Horace Walpole -writes in 1790:—“Mr. Burke’s pamphlet has quite -turned Dr. Price’s head. He got on a table at their -club, and toasted to our parliament being made a -national convention.... Two more members got -on the table—their pulpit,—and it broke down with -them.” In another letter he says:—“Dr. Price, who -had whetted his ancient talons last year to no purpose,<span class="pagenum"><a id="Page_131">[131]</a></span> -has had them all drawn by Burke; and the -revolutionary club is as much exploded as the Cock -Lane Ghost.” In 1791, he died, and his name has -survived Horace Walpole’s sarcasms with his own -revolutionary principles. The information which he -presented, was various and important. Gossip it -would be called by some; but it was that gossip to -which the historian appeals as a confirmation of his -views. The poor’s rates were estimated by him at -1,556,804<em>l.</em> in 1777. He calculated that 651,580 -was rather over than under the population of London -in 1769. He explained that the most obvious sense of -the expectation of life, was that particular number of -years which a life of a given age had an equal chance -of enjoying; and he gave it as his opinion, founded -on extensive information, “that the custom of committing -infants as soon as born to the care of foster-mothers, -destroys more lives than sword, famine, and -pestilence united.”</p> - -<p>By his calculations he showed, that—</p> - -<p><span class="pagenum"><a id="Page_132">[132]</a></span></p> - - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="mortality tables with foster mothers"> -<tr><td align="left">In</td><td colspan="3" align="left">Stockholm on an average of 6 years</td><td align="left">1 in 19</td><td align="center">died.</td></tr> -<tr><td align="left"></td><td align="left">London</td><td align="right"><span class="quotepadding5">”</span></td><td align="right"><span class="quotepadding6">”</span></td><td align="left">1 in <span class="nowrap">20 <span class="fnum">3</span>/<span class="fden">4</span></span></td><td align="center">”</td></tr> -<tr><td align="left"></td><td align="left">Rome</td><td align="right"><span class="quotepadding5">”</span></td><td align="right"><span class="quotepadding6">”</span></td><td align="left">1 in <span class="nowrap">21 <span class="fnum">1</span>/<span class="fden">2</span></span></td><td align="center">”</td></tr> -<tr><td align="left"></td><td align="left">Northampton</td><td align="right"><span class="quotepadding5">”</span></td><td align="right"><span class="quotepadding6">”</span></td><td align="left">1 in <span class="nowrap">26 <span class="fnum">1</span>/<span class="fden">2</span></span></td><td align="center">”</td></tr> -<tr><td align="left"></td><td align="left">Madeira</td><td align="right"><span class="quotepadding5">”</span></td><td align="right"><span class="quotepadding6">”</span></td><td align="left">1 in 50</td><td align="center">”</td></tr> -<tr><td align="left"></td><td align="left">Liverpool</td><td align="right"><span class="quotepadding5">”</span></td><td align="right"><span class="quotepadding6">”</span></td><td align="left">1 in 27</td><td align="center">”</td></tr> -<tr><td align="left"></td><td align="left">Berlin</td><td align="right"><span class="quotepadding5">”</span></td><td align="right"><span class="quotepadding6">”</span></td><td align="left">1 in <span class="nowrap">26 <span class="fnum">1</span>/<span class="fden">2</span></span></td><td align="center">”</td></tr> -<tr><td align="left"></td><td colspan="2" align="left">Sweden (Stockholm excepted)</td><td align="right"><span class="quotepadding6">”</span></td><td align="left">1 in 35</td><td align="center">”</td></tr> -<tr><td align="left"></td><td align="left">Vaud, Switzerland</td><td align="right"><span class="quotepadding5">”</span></td><td align="right"><span class="quotepadding6">”</span></td><td align="left">1 in 45</td><td align="center">”</td></tr> -<tr><td align="left"></td><td colspan="2" align="left">Ackworth, Yorkshire</td><td align="right"><span class="quotepadding6">”</span></td><td align="left">1 in 47</td><td align="center">”</td></tr> -</table></div> - -<p>The varied and valuable information of Dr. Price -was of great use in stimulating the minds of those -having authority, an improved register of mortality -being established at Chester in 1772, and at Warrington -in 1773.</p> - -<p>The earliest endeavour to encourage a spirit of -saving among the poor was made in 1773, a bill -being introduced into the House of Commons, the -leading provision of which was that every parish -where there were four or more officers might grant -life annuities, payable quarterly, to those who were -willing to purchase them, according to a table -annexed.</p> - -<p>The bill was supported both by the social and -political economists of the House, who had met at -Sir George Savile’s, in Leicester Square, for this -purpose. It had been contrived with much kindness, -and framed with considerable ingenuity. It -passed the Lower House by a majority of two to -one; but in the Upper House was lost. The importance -of measures of this character cannot now -be doubted. All that tends to produce habits of -thrift among our poor is exceedingly desirable. It<span class="pagenum"><a id="Page_133">[133]</a></span> -is from them we must always hope for a large -portion of our taxes, and to give them an interest -in order, to place them in a fair social position, to -engender habits of self-respect and independence, are -considerations of vital importance; and it is, therefore, -to be regretted that, at this early period of our -manufacturing career, some such impulse was not -given to the industrious working-man.</p> - -<p>In 1777, several of the brokers and underwriters -of the City were mulcted of their iniquitous profits. -During the minority of Sir John St. Aubyn, and at -the early age of seventeen, this gentleman found -himself, like many more, in want of money. The -scriveners of the City were ready, the extravagances -of the youth supplied, an unlimited amount of cash -was placed in his possession, and in return he granted -to the underwriters annuities guaranteed on the -estates to which he would succeed at twenty-one, -assuring his life with them in the mean time to guard -against contingencies. Not content with this, the -underwriters made him procure the additional guarantee -of a schoolfellow, for which the young scapegrace -pledged his honour to his friend. When he -came of age, he fortunately arrived also at years of -discretion, and instituted a suit in Chancery for the -destruction of the bonds which he had granted.<span class="pagenum"><a id="Page_134">[134]</a></span> -Great was the wrath of the money-changers; but -their anger was vain, and they were obliged to -content themselves with the righteous decision, that -on repayment of the principal, with 4 per cent. -interest, the annuity bonds should be given up.</p> - -<p>Nor was this a solitary instance in which the -assurance- and annuity-mongers were overreached. -The following will be found both painful and impressive -as a warning.—</p> - -<p>Residing in one of the wildest districts of Yorkshire, -was one of those country squires of whom we -read in the pages of our elder novelists. He could -write sufficiently to sign his name; he could ride so -as always to be in at the death; he could eat, when -his day’s amusement was over, sufficient to startle a -modern epicure; and drink enough to send himself -to bed tipsy as regularly as the night came. He -was young, having come to his estate early, through -the death of a father who had broken his neck -when his morning draught had been too much for -his seat, and he seemed at first exceedingly likely -to follow his father’s footsteps. In due time, -however, being compelled to visit London on some -business, he found that there were other pleasures -than those of hunting foxes, drinking claret, -following the hounds, and swearing at the grooms;<span class="pagenum"><a id="Page_135">[135]</a></span> -and that although on his own estate, and in the -neighbourhood of his own hall, he might be a great -person, all his greatness vanished in the metropolis. -With the avidity of a young man entirely uncurbed, -enjoying also huge animal powers, he rushed into -the dissipation of London, where, as he possessed a -considerable portion of mental capacity, he contrived -to polish his behaviour and to appear in the -character of a buck about town, with some success. -His estate and means soon became familiar to those -who had none of their own; and as he was free -enough in spending his money, and was not very -particular in his company, he was quickly surrounded -by all the younger sons, roysterers, and -men who lived by their wits, of the circle in which -he visited. With such as these his career was -rapidly determined. The gaming of the period was -carried to such an extent that it might truly be -termed a national sin, and into this terrible vice he -threw himself with a recklessness which almost -savoured of insanity. Mortgage after mortgage was -given on his estate; but as this was entailed, it was -necessary that he should also assure his life, which -was done at Lloyd’s, on the Royal Exchange, and -with those usurers who added it to their other -branches of business.</p> - -<p><span class="pagenum"><a id="Page_136">[136]</a></span></p> - -<p>In the midst of his career there seemed a chance -for his escape. It may be supposed that many -intriguing women fixed their eyes on so desirable a -match, and that many young ladies were willing to -share the fortunes, for better or for worse, of the -possessor of a fine estate. At last the hour and the -woman came, and the Yorkshire squire fell in love -with a young lady of singular beauty, half friend -and half companion to a faded demirep of fashion, -who, aiming at the gentleman herself, had committed -the incredible folly of placing her friend’s charms in -comparison with her own. To fall in love was to propose, -to propose was in this case to be accepted, and -the marriage took place. Immediately afterwards they -left the metropolis—the squire’s income being much -reduced by his liabilities—for his Yorkshire home, -dreaming probably sweet dreams of the future, and -building castles in the air, of which moderation and -amendment were the foundation. For a period he -kept them. A son, heir to the entail, was born to -him, and soon after this he again made his way to -London, for some reason which does not appear. -Once more within this vortex of pleasure, his good -resolutions failed him, and he was led to the same -pursuits, the same pleasures, and the same vices. -He forgot his wife in the charms of new beauties, he<span class="pagenum"><a id="Page_137">[137]</a></span> -forgot his child, he forgot his home. He gambled, -he betted, he hazarded his all, until one fine morning, -after a deep debauch with some of his companions, -where dice and cards with closed doors -marked its character, he arose a ruined man. He -had lost more than his whole life would redeem, the -only security of the winners being his annuity bonds -on the estate, and his various life assurances should -he die. At the same time, he was aroused to a sense -of the wrongs he had suffered; he saw that he had -been the dupe of gentlemen sufficiently practised in -the art of play to be called sharpers, and saw also, -what was doubtless the fact, that he had been -cheated to their hearts’ content. Almost mad, -burning with consuming fire, he determined to be -revenged. Another night he was resolved to try his -luck, and by playing more desperately than ever, -win back, if possible, the money he had lost, and -then forswear the dangerous vice. With a desperate -resolve to outwit them, in life or in death, he -met the gamesters. He had hitherto arranged all -the losses he had sustained, and his opponents were -prepared to humour him. The doors were once -more closed, the shutters were down to exclude -light, refreshments were placed in an ante-chamber, -and for thirty-six hours the last game was played.<span class="pagenum"><a id="Page_138">[138]</a></span> -The result may be guessed. The squire had no -chance with the men banded against him, and high -as his stakes were, and wildly as he played, they -fooled him to the top of his bent. Exhausted nature -completed the scene, and the loser retired to his -hotel. He was ruined, wretched, and reckless. He -knew that if he lived it would be a miserable existence -for himself and his wife, and he knew also that -if he died by his own hand, not only would his -family be placed in a better position than if he lived, -but that the men who had wronged him would be -outwitted, as the policies on his life would be forfeited, -and his bonds become waste paper. His mind -soon became resolved. He evinced to the people of -the hotel no symptoms of derangement; but saying -he should visit the theatre that night, and go to bed -early, as he had been rather dissipated lately, he -paid the bill he had incurred, giving at the same -time gratuities to the waiters. He then wrote a -letter to one of the persons with whom his life had -been assured, stating, that as existence was now of -no value to him, he meant to destroy himself; that -he was perfectly calm and sane; that he did it for -the express purpose of punishing the men who had -contrived to ruin him; and, as the policy would -be void by this act, he charged him to let his suicide<span class="pagenum"><a id="Page_139">[139]</a></span> -be known to all with whom his life had been -assured. In the evening he walked to the Thames, -where he took a wherry with a waterman to row -him, and when they were in the middle of the current, -plunged suddenly into the stream, to rise no -more.</p> - -<p>The underwriter who had received the letter, -communicated it to the other insurers; and when a -claim was made by the gamblers, they saw that they -had been duped by the Yorkshire squire, although -at the fearful price of self-murder.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_140">[140]</a></span></p> - - - - -<h2>CHAP. IX.</h2> - -<p class="chapter-subheading">GAMBLING IN ASSURANCES ON WALPOLE—GEORGE II.—THE -JACOBITE PRISONERS—THE GERMAN EMIGRANTS—ADMIRAL -BYNG—JOHN WILKES—YOUNG MR. PIGOT AND OLD MR. PIGOT—LAPLAND -LADIES AND LAPLAND REIN-DEER.—INSURANCE ON -CITIES.—GAMBLING ON THE SEX OF D’EON—PUBLIC MEETING—DISAPPOINTMENT -OF THE CITIZENS.—TRIAL CONCERNING -D’EON—LORD MANSFIELD’S DECISION.</p> - - -<p>For many years prior to 1774, a spirit of gambling -which took the form of assurance was prevalent in -the City, and so serious did it become that the legislature -were compelled to notice it. This mode of -speculation is one of the strangest by-ways in the -annals of insurance. From 1720 much of the legitimate -business had been usurped by it, policies being -opened on the lives of public men, with a recklessness -at once disgraceful and injurious to the morals of -the country. That of Sir Robert Walpole was -assured for many thousands; and at particular portions -of his career, when his person seemed endangered -by popular tumults, as at the Excise Bill; -or by party hate, as at the time of his threatened<span class="pagenum"><a id="Page_141">[141]</a></span> -impeachment; the premium was proportionately -enlarged. When George II. fought at Dettingen, -25 per cent. was paid against his return. The rebellion -of 1745, as soon as the terror which it -excited had passed away, was productive of an -infamous amount of business. The members of Garraway’s, -the assurers at Lloyd’s, and the merchants -of the Royal Exchange, being unable to raise or -lower the price of stocks any more by reports of the -Pretender’s movements, made sporting assurances on -his adventures, and opened policies on his life. -Sometimes the news arrived that he was taken -prisoner, and the underwriters waxed grave. Sometimes -it was rumoured he had escaped, and they -grew gay again. Thousands were ventured on his -whereabouts, and tens of thousands on his head.</p> - -<p>The rebel lords who were captured in that -disastrous expedition, were another source of profit -to the speculators. The gray hairs of old Lord -Lovat did not prevent them from gambling on his -life. The gallantry of Balmerino and the devotion -of Lady Nithsdale, raised no soft scruples in the -minds of the brokers; and when the husband of the -latter escaped from the Tower, the agitation of those -who had perilled their money on his life, and to -whom his violent death would have been a profit, is<span class="pagenum"><a id="Page_142">[142]</a></span> -described as noisy and excessive. But no sooner -was it known that he had escaped, than fresh policies -were opened on his recapture, and great must have -been the indignation of his high-minded wife when -she afterwards heard this trait of City character. -Devotional as is the mind of the great metropolis in -the presence of mammon, there were perhaps no -blacker instances of that foul spirit which sought to -make money from the sufferings of gallant though -mistaken gentlemen.</p> - -<p>The advent of the German emigrants was another -opportunity. In 1765, upwards of 800 men, women, -and children, lay in Goodman’s Fields in the open -air, without food. They had been brought by a -speculator from the Palatinate, Franconia, and Suabia, -and then deserted by him. In a strange land, -without friends, exposed by night and by day to the -influences of the atmosphere, death was the necessary -result. On the third day, when several expired from -hunger or exposure, the assurance speculators were -ready, and wagers were made as to the number who -would die in the week. In the western part of the -metropolis considerable feeling was exhibited for -these unhappy creatures; in the country a charitable -fervour was excited in their behalf; but indubitably -the greatest interest was felt by those operators in<span class="pagenum"><a id="Page_143">[143]</a></span> -the Alley and underwriters of Lloyd’s Coffee-house, -who had made contracts on their distresses, and -speculated on their deaths. The benevolent spirit of -England, however, soon put this speculation to an -end, by providing the unfortunate Germans with -food, shelter, and the means of emigration.</p> - -<p>The trial and execution of Byng were productive -of a similar mania. At each change in his prospects, -slight as his chances ever were, the underwriters -raised or lowered their premiums, the assurers were -elevated or depressed. This victim of the most -dastardly ministry that ever misgoverned England, -had but little sympathy from the speculators on his -life; and it is difficult to say whether their power, -importance, and position,—for jobbers and underwriters -then were merchants and men of family,—did -not in some degree inflame the feeling for blood -which had seized the people. It is certain it did not -mitigate it. When Wilkes was committed to the -Tower, policies were granted at 10 per cent. if he -remained there a specified time. King George, when -he was ill, and Lord North, when he was unpopular, -were both scheduled in the brokers’ books as good -subjects. When Minorca was lost, and the premier -Duke of Newcastle “began to tremble for his place, -and for the only thing which was dearer to him than<span class="pagenum"><a id="Page_144">[144]</a></span> -his place, his neck,” there were plenty to open policies -on his life, and plenty to avail themselves of the -chances which threatened him. As soon as he resigned -his premiership, assurances were entered into -on the continuance of the new Pitt ministry in -power; and when the duke reassumed office, fresh engagements -were opened on the chance of his remaining -in place. Successes or disasters were all the same -to the assurers; the seals of a prime minister, or the -life of a highwayman, answered equally the purpose -of the policy mongers; and India or Minorca, Warren -Hastings or Admiral Byng, were alike to them if -they could put money into their purses. They made -wager policies on the lives of the high-minded Jacobite, -and they did the same on every batch of felons -left for execution. Assurances were entered into -on the life of the Regent Orleans of France; and -when he was succeeded by Louis Quinze, they -insured, not the lives indeed, but the continuance of -his mistresses in the favour of the monarch. Day by -day during the trial of the Duchess of Kingston for -bigamy, there were frequent expresses from West to -East with information of the proceedings, which, -according to its chances, varied the premiums and -excited the cupidity of the assurers. There was -absolutely nothing on which a policy could be opened,<span class="pagenum"><a id="Page_145">[145]</a></span> -but what was employed as a mode of gambling. -Scarcely a nobleman of note went to his long account, -without an assurance being opened during his illness, -by those who had no interest in his life. These -policies, especially those on political offenders whose -existence trembled in the balance, were most mischievous. -A pecuniary interest in the death of any -one is fearful odds against benevolent feeling; and it -was hardly to be expected that men should throw -what influence they possessed into the scale of mercy. -The power of opening merely speculative policies on -private persons was also demoralising, and perhaps -dangerous to life itself. It was not possible—it -was not in human nature—to have money depending -on the existence of the inmate of your home -without watching him with feelings which the good -man would tremble to analyse, and even the bad man -would fear to avow. People then opened policies on -the lives of all in whom they were socially interested; -and under the plea of provision, acquired an interest -in their relatives which was almost fearful and sometimes -fatal, from its intensity. There is no doubt -that the system was false and hollow. The son then -insured the life of his father; the father opened -policies on the life of his son: and when thousands -or perhaps tens of thousands of pounds were dependent<span class="pagenum"><a id="Page_146">[146]</a></span> -on it, who shall tell the feelings of the son, -or dare to judge the sensations of the father, if sickness -or disease opened a golden prospect? The mind -shrinks from the horror of the idea, and recoils indignantly -at the thought that such sacred relations of -life should be thus sordidly regarded. But the argument -might be carried further; for to many a dark -mystery might a clue be given, in the remembrance -that a pecuniary interest might have existed between -the murdered and the murderer!</p> - -<p>Nor was this all. One life was commonly pitted -against another. Thus, Lord March, afterwards -notorious as the Duke of Queensberry, laid a wager -with “young Mr. Pigot,” that Sir William Codrington -would die before old Mr. Pigot. As the latter, -however, happened to be dead when the wager was -laid, young Mr. Pigot refused to pay; so Lord -March went to law, and compelled him to do so. -Another adventure excited still more the cupidity of -underwriters and assurers, and produced larger and -more varied policies than any, except on the sex of -D’Eon, whose career is sketched at the end of this -chapter. It was spread in the papers that a country -baronet had laid a heavy wager that he would go to -Lapland, and in a given time, bring home two -females of the country and two rein-deer. This,<span class="pagenum"><a id="Page_147">[147]</a></span> -which was originally only a bet between a couple of -foolish young men, created a mania at Lloyd’s: policies -were first opened that the baronet would not -return within the time; then, that he would not -return at all; then, that he would die before he -reached Lapland. The next movement was to speculate -on his returning with the women; and this increased -the premiums enormously, immense sums -being risked on the childish enterprise. Merchants -and men of rank joined in the assurances; and when -the adventurer came back with his Lapland deer and -Lapland ladies, large sums were paid by those underwriters -who had speculated on his failure.</p> - -<p>The “London Chronicle” remarks, in 1768, “The -introduction and amazing progress of illicit gaming -at Lloyd’s Coffee-house is, among others, a powerful -and very melancholy proof of the degeneracy of the -time. Though gaming in any degree is perverting -the original and useful design of that coffee-house, it -may in some measure be excusable to speculate on -the following subjects:—</p> - -<p>“Mr. Wilkes being elected Member for London; -which was done from 5 to 50 guineas per cent.</p> - -<p>“Mr. Wilkes being elected Member for Middlesex; -from 20 to 70 guineas per cent.</p> - -<p><span class="pagenum"><a id="Page_148">[148]</a></span></p> - -<p>“Alderman Bond’s life for one year, now doing at -7 per cent.</p> - -<p>“On Sir J. H. being turned out in one year, now -doing at 20 guineas per cent.</p> - -<p>“On John Wilkes’s life for one year, now doing at -5 per cent.—N.B. Warranted to remain in prison -during that period.</p> - -<p>“On a declaration of war with France or Spain -in one year, 8 guineas per cent.</p> - -<p>“But,” continued the same journal, “when policies -come to be opened on two of the first peers in -Britain losing their heads at 10<em>s.</em> 6<em>d.</em> per cent., and -on the dissolution of the present parliament within -one year at 5 guineas per cent., which are now -actually doing, and underwritten chiefly by Scotsmen, -at the above coffee-house, it is surely high time to -interfere.”</p> - -<p>Such was the opinion of the journalist; and the -following extract from “Every Man his own Broker,” -is a further proof that legislation of some kind was -absolutely necessary:—</p> - -<p>“Another manner of spending the vacation formerly, -was in insuring the lives of such unfortunate gentlemen -as might happen to stand accountable to their -country for misconduct. I am not willing to disturb -the ashes of the dead, or I could give an account of<span class="pagenum"><a id="Page_149">[149]</a></span> -this cruel pastime, the parallel of which is not to be -met with in the instance of any civilised nation; but -I hope we shall hear no more of such detestable -gaming; therefore, as a scene of this kind fully laid -open might astonish, but could not convey instruction, -humanity bids me draw the veil, and not render -any set of men unnecessarily odious.</p> - -<p>“A practice likewise prevailed of insuring the -lives of well known personages, as soon as a paragraph -appeared in the newspapers announcing them -to be dangerously ill. The insurance rose in proportion -as intelligence could be procured from the servants -or from any of the faculty attending, that the -patient was in great danger. This inhuman sport -affected the minds of men depressed by long sickness; -for when such persons, casting an eye over a newspaper -for amusement, saw their lives had been insured -in the Alley at 90 per cent., they despaired of -all hopes, and thus their dissolution was hastened. -But to the honour of the principal merchants and -underwriters, they caused an advertisement, some -years since, to be fixed up at Lloyd’s Coffee-house, -declaring that they would not transact business with -any brokers who should be engaged in such infamous -transactions.</p> - -<p>“Insuring of property in any city or town that is<span class="pagenum"><a id="Page_150">[150]</a></span> -besieged, is a common branch of gambling insurance -in time of war, but ingenious gamesters, ever studious -to invent new and variegate old games, have out of -this lawful game (for insurance in general is no more -than a game at chance) contrived a new amusement, -which is, for one person to give another 40<em>l.</em>, and in -case Gibraltar, for instance, is taken by a particular -time, the person to whom the 40<em>l.</em> are paid is to -repay 100<em>l.</em>; but if, on the contrary, the siege is -raised before the time mentioned, he keeps the 40<em>l.</em></p> - -<p>“In proportion as the danger of being taken -increases, the premium of insurance advances; and -when the place has been so situated, that repeated -intelligence could be received of the progress of the -siege, I have known the insurance rise to 90<em>l.</em> for -the 100<em>l.</em> A fine field this opens for spreading false -reports, and making private letters from the Continent. -But how infinitely more harmless to trifle -with property than to affect the life of a fellow-subject, -or to injure him with the public, to serve a -private end!</p> - -<p>“Of sham insurances, that is to say, insurances -without property on the spot, made on places besieged, -in time of war, foreign ministers residing -with us have made considerable advantages. It was -a well known fact, that a certain ambassador insured<span class="pagenum"><a id="Page_151">[151]</a></span> -30,000<em>l.</em> on Minorca in the war of 1755, with advices -at the same time in his pocket that it was taken.”</p> - -<p>At length the legislature interfered, and in order -to hinder the growth of gambling in life assurance, it -was enacted, that “no insurance shall be made on the -life of any person, or on any event whatsoever, where -the person on whose account such policy shall be -made <em>shall have no interest</em>, or by way of gaming or -wagering; and that every such insurance shall be -null and void.</p> - -<p>“It shall not be lawful to make any policy on the -life of any person, or on any other event, without inserting -in the policy the name of the person interested -therein, or for what use, or on whose account such -policy is so made.</p> - -<p>“Where the insured has an interest in such life or -event, no greater sum shall be received from the -insurer than the amount of the interest of the -insured in such life or event.”<a id="FNanchor_14_14" href="#Footnote_14_14" class="fnanchor">[14]</a></p> - -<p>This statute was some time before it came into -effective operation. It was after this that policies -and wagers were carried on to such an incredible -degree in the trial of her Grace of Kingston. The -underwriters were fully aware that their movements<span class="pagenum"><a id="Page_152">[152]</a></span> -were illegal; but the spirit of gambling by means of -assurance was too common to be put down at once -by an act of parliament, and in 1777, a singular -instance of the determination to grant wager policies -came before the public eye. Charles Genevieve -Louise Auguste d’Eon de Beaumont, popularly -known as the Chevalier d’Eon, was the cause of a -trial before Lord Mansfield, as to the validity of a -policy without an insurable interest. The career of -this man or woman, for the question was long doubtful, -was familiar to the public, and will illustrate the -excitement of the period. Equerry to Louis XV. -doctor of law, ambassador and royal censor, employed -in a confidential mission to the Russian court, and -said to be a favourite of its empress, D’Eon came to -England with a reputation ready made. He soon -quarrelled with le Duc de Nivernois, ambassador -from the most Christian King, and as D’Eon proved -unsuccessful in his attempt to injure his grace, he -was so incensed that he disclaimed all connection -with the court and ambassador, declared that the -peace had been accomplished in England by the -agency of French gold; denouncing also, in no -measured terms, those who had been accomplices, -and pointing almost by name to men who, under the -guise of patriotism, had betrayed their country. As<span class="pagenum"><a id="Page_153">[153]</a></span> -a patriot’s capital is his public character, the accused -parties waxed wroth, defied their calumniator, and -talked of prosecuting him. The people, unwilling -to lose their faith in English probity, took the part -of their countrymen, and mobbed the knight wherever -he appeared.</p> - -<p>In the mean time, doubts arising as to his sex, his -calumnies were all forgotten, and a new interest was -attached to the chevalier, by the assertion of some -that he was male, and of others that he was female. -This was something fresh for assurance brokers, and -the question was mooted at Lloyd’s. At first wagers -were made; but as there was no present mode of -deciding whether this extraordinary individual was -man or woman, they were quickly abandoned.</p> - -<p>It was decided, therefore, that policies should be -opened on his sex, by which it was undertaken that -on payment of fifteen guineas, one hundred should -be returned whenever the chevalier was proved to -be a woman. At first he pretended to be indignant, -and advertised that on a certain day and hour he -would satisfy all whom it concerned. The place was -a City coffee-house, the hour was that of ’Change, and -the curiosity of the citizens was greatly excited. -The assurances on this eccentric person’s sex were -greatly and immediately increased, policies to a very<span class="pagenum"><a id="Page_154">[154]</a></span> -large amount were made out, wagers of thousands -were entered into, and to the rendezvous thronged -bankers, underwriters, and brokers. The hour -approached, and with it came the chevalier, who, -dressed in the uniform of a French officer and -decorated with the order of St. Louis, rose to address -the assembly. It is easy to imagine the breathless -attention of the listening throng (for a million was -said to depend on his words), the eager interest of -some, the cool cupidity of others, the ribaldry of -more, and the astonishment of all, as with an -audacity only to be equalled by his charlatanry, he -said “he came to prove that he belonged to that sex -whose dress he wore, and challenged any one there -to disprove his manhood with sword or with cudgel.” -The spirit of the citizens had long passed away, -commerce had sheathed the sword of chivalry, and -none grasped the gauntlet for the honour of London. -Bankers, brokers, and underwriters gaped at one -another aghast; and though the boldness of the -speech pleased many, it was far from satisfactory to -those who came with the hope of winning a wager, -or claiming their assurance money. The knight -departed in triumph. Large sums were said to be -offered him to divulge his sex. “I know for -certain,” says a writer of the day, “that there were<span class="pagenum"><a id="Page_155">[155]</a></span> -sums offered to him, amounting to 30,000<em>l.</em>” However -this may be, it was thought necessary to settle -the question, if possible; and one of the first actions -tried after the act to prevent gaming in assurance, -arose from a policy on the sex of D’Eon, in which -it appeared that Mr. Jaques, a broker, had received -several premiums of 35 guineas, for which he -had granted policies undertaking to return 100 -whenever the chevalier was proved to be a woman. -The form of the contract was as follows:—</p> - -<p>“In consideration of thirty-five guineas for one-hundred -received of Roebuck and Vaughan, we -whose names are hereunto subscribed, do severally -promise to pay the sums of money which we have -hereunto subscribed, on the following condition; viz., -in case the Chevalier d’Eon should hereafter prove -to be a female.”</p> - -<p>From this day the star of the chevalier waned in -England. He turned fencing-master, but with difficulty -obtained a living. He assumed female attire, -but his hour was over. He had ceased to be a -curiosity to the many; the “death brokers,” as -Horace Walpole calls them, could make no more by -him; and with the assurance on his sex ceases the interest -of Chevalier d’Eon, in the context of this -volume. His name is only interesting to the reader<span class="pagenum"><a id="Page_156">[156]</a></span> -from the fact that Chief Justice Mansfield adjudicated -on his case, and that an important decision was -arrived at in the legal history of this science, when -his Lordship declared that a policy of assurance, -although not even on life, when entered into without -an insurable interest, was against the purport of the -act recently passed, and contrary to English notions -of morality.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_157">[157]</a></span></p> - - - - -<h2>CHAP. X.</h2> - -<p class="chapter-subheading">FRAUDULENT ANNUITIES—ACT TO PREVENT THEM.—SALVADOR -THE JEW.—DAVID CUNNINGHAM THE SCOTCHMAN—HIS CAREER—HIS -ANNUITY COMPANY—ITS SUCCESS—HIS DOUBLE CHARACTER—HIS -FATE.—MORTUARY REGISTRATION.—JOHN PERROTT—HIS -PASSION FOR CHINA—TRICK PLAYED HIM.—CURIOUS -FRAUD.—WESTMINSTER SOCIETY.—PELICAN.</p> - - -<p>When it was found that a fraudulent system of assurance -would no longer be permitted, a fraudulent -system of annuities usurped its place, and parliament -was once more compelled to legislate. By an act -passed in 1777, it was determined that, “owing to -the pernicious practice of raising money by the sale -of life annuities having greatly increased, and being -much promoted by its secrecy, the particulars of all -deeds, bonds, &c., for granting these annuities shall, -within twenty days of the execution thereof, be enrolled -in the Court of Chancery, otherwise such bond -shall be void. All future deeds also for granting -annuities, to contain the consideration and the names -of the parties; and that if any part of the consideration -be returned, or is paid in bills not honoured, or -is paid in goods, or any part retained under pretence<span class="pagenum"><a id="Page_158">[158]</a></span> -of securing the future payments of the annuity, or -under any other pretence, the Court may order the -deed to be cancelled. All contracts with persons -under twenty-one to be void; and no solicitor, scrivener, -or broker, to take more than 10<em>s.</em> per cent., -under penalty of fine and imprisonment.”</p> - -<p>A long course of evil doing had led to this enactment. -From the commencement of the eighteenth -century, Jews, and Christians worse than Jews; -usurers, and bankers worse than usurers; had habitually -sold life annuities: before this, it was less -common, being reserved almost entirely for usurers -and goldsmiths. It was a branch of business of -which, little as the seller might know, the annuitant -knew nothing. But if such men as Snow the -banker, Samson Gideon the founder of the house of -Eardley<a id="FNanchor_15_15" href="#Footnote_15_15" class="fnanchor">[15]</a>, Fordyce the insolvent banker, and Colebrooke -the bankrupt East India director, undertook -to grant payments, it may easily be guessed, that -they were either unmercifully fleeced, or got nothing -at all, when the great millionnaire was in the Gazette.<span class="pagenum"><a id="Page_159">[159]</a></span> -Nor was the practice confined to these men; Exchange -Alley was pre-eminent in buying or in selling -annuities, in undertaking to pay, or in willingness to -receive any amount of money. They were as ready -to assure the life of, or to promise an annuity to a -country clergyman, as they were to trade in the fall -of a prime minister, or to traffic in the blood of an -admiral. They took the hoard of the servant with -as much coolness as they coined false intelligence; -and when a reverse of fortune made them penniless, -it involved hundreds of innocent persons with them.</p> - -<p>The frauds which now attend the loans of money -to the spendthrift, are nothing compared to the gigantic -scale with which, under the name of annuities, they -were then carried on. If a man granted one on a -fine estate for a consideration, that consideration was -rarely paid in money. The unhappy borrower was -obliged to take whatever he could get. Thus the -stock-jobber made his prey receive consols at a price -much above that of the market. The merchant gave -him a bill of lading for some indifferent kind of -merchandise. The banker handed him long-dated -bills, and sometimes was a bankrupt before they were -due. The large tradesmen—many of whom then, -as now, surreptitiously carried on the trade of money -lending—got rid of goods which were otherwise unsaleable.<span class="pagenum"><a id="Page_160">[160]</a></span> -One piece of plate did yeoman’s service to -its owner; into whatever transaction of the kind he -entered, it was always introduced. It was valued at -600<em>l.</em> to the recipient, and it was always bought back -by the usurer for 70<em>l.</em> This man, a wealthy jeweller -named Salvador, was a specimen of another class, -common enough in the middle of the eighteenth century. -His shop in Cornhill was the general resort -of those who wanted money and could give good -security. He ran from his house to ’Change Alley -twenty times a day, to ascertain the price of the -funds, in which he dealt largely; and his agony was -excessive when it went against him. He would tear -his hair and gnash his teeth; he truly rent his heart, -but not his garments, for the latter cost money. -During these paroxysms, the youngsters of the day -were made to suffer most exorbitantly, and one of -them openly calling him Shylock Salvador—the name -he was usually known by—nearly paid the penalty -of his life; for the incensed Jew threw himself on the -young profligate and almost killed him. The idiosyncrasy -of this man made him mad when he lost -his money, and as mad to regain it. Yet he evinced -touches of benevolence which redeemed his character, -and traits of kindness which made him much loved -and respected by all his tribe. To Christians he was<span class="pagenum"><a id="Page_161">[161]</a></span> -as mischievous as a monkey, taking a delight in -giving a crown piece to a beggar, and then following -him to demand it back, under pretence that he had -given it instead of a penny, with which, however, he -always failed to redeem it.</p> - -<p>It need not be added that he was loud in his reprobation -of the act against gambling in annuities, as -it promised to strike a deep blow at his profits. The -bill met with much opposition, especially in the -upper house, but while the Earl of Abingdon deemed -it his duty to denounce its unconstitutional tendency, -and to declare, “it was not calculated for the genius -of a free nation,” the Earl of Mansfield, a higher -authority, said, his experience had long since taught -him that some bill was wanting to put a stop to the -usurious contracts and fraudulent transactions which -had been practised for many years, and which were -now carried to an height of enormity.</p> - -<p>At this period, various brokers and merchants -devoted their capital entirely to annuities, and many -most honourable men experienced a pleasure in aiding -the endeavours of the poor, scorning at the same -time to take a mean advantage of the spendthrift; but -there were others who would have jobbed in the lives -of their fathers, and sold their own souls to perdition -in their love of mammon.</p> - -<p><span class="pagenum"><a id="Page_162">[162]</a></span></p> - -<p>There were also the annuity companies which -were unsafe, because they were unsound in principles, -and of which Dr. Price said that they cared little -about it; and that in addition to these there were -likewise fraudulent companies established by fraudulent -men; let the following sketch bear witness.</p> - -<p>Among those who misemployed their capacity in -the formation of bubble annuity societies, was one -David Cunningham, whose career, so far as it can -be gathered, is a strange illustration of perverted -powers. Born in the shire of Inverness, of which -his father was a native, bred a presbyterian, with -the confined if respectable notions of the class, and -meant “to wag his pow” in a pulpit, from whence -in due time he is even said to have held forth; -Cunningham might have been respectable and respected, -had not his zeal for proselytism with a fair -daughter of his flock carried him beyond the borders -of propriety. Like Adam Blair he sinned, but -unlike Adam Blair he repented not, and suddenly -disappearing from his native place, he left the victim -of his passion to repent her misdeed, and his parents -to bear the agony of an only son’s shame. As a boy -he had been remarkable for acuteness and ability, -had at an early period devoted himself to arithmetical -studies, and, indebted to the pedlar—then the only<span class="pagenum"><a id="Page_163">[163]</a></span> -communication between town and country—for -some odd books which treated of the science of mathematics, -had studied them to so much purpose that -if the money had been spent on his secular which -was spent on his spiritual education, he would probably -have been a great mathematician and possibly -a good man. Possessed of a fine person and specious -address, nothing is known of him until twenty years -afterwards, when he appeared in London with a -tolerable supply of money, and more than a proportionate -supply of audacity. Here he commenced the -vocation of schoolmaster. At this time the preaching -of Whitfield and Wesley was a passion. Parties -of titled people were made up to hear them exhort -and used up ladies of rank experienced new sensations -when Wesley expounded the religion they had -neglected, and Whitfield described the tortures they -would endure. Among the votaries of the new -apostle, who, with the restlessness of genius soon -aspired to lead where hitherto he had followed, was -David Cunningham.</p> - -<p>He still kept on his school and made use of his gifts -in prayer, which were very remarkable, to procure -introductions to the better class of London society, -among whom he moved with an air of pious humility, -alike distinguished for his toadying and his teaching.<span class="pagenum"><a id="Page_164">[164]</a></span> -These he used as levers for the artful design of forming -an annuity company—next to religion, annuity -companies being the fashion—to be founded on a -new principle for indigent persons and widows. -This principle was, that it should be partly self-supporting -and partly philanthropic, and that annuities -bought by the poor should be aided by the charitable -contributions of the rich.</p> - -<p>Cunningham was rather late in the market, for -the volume of Dr. Price, which dispersed the assurance -bubbles, was on the point of publication as he -made his announcement; but the Scot was a crafty -man, and his prospectus breathed benevolence, not -personal benefit; it talked of charity and forgot allusion -to per centages. Others might weary themselves -in striving to establish a purely self-supporting -institution, Cunningham struck into a new path. -He showed that of the existing companies some did -not ask enough, and some demanded too much. -Other societies were often carried on in taverns; his -fastidious taste revolted from the idea. The whole -mind of this scheming man was bent upon betraying -the public, and he determined to establish an -Imperial Annuity and Charitable Pension Society, -the terms of which should be lower than all others, -while any awkward questions as to its responsibilities<span class="pagenum"><a id="Page_165">[165]</a></span> -should be checked by pointing to a long list of -patrons, against whose names should be placed large -sums as donations and subscriptions. Directors -were not more difficult to procure then than now, -but Cunningham chose to be his own manager, and -to represent his own board. Persons of rank were as -proud of seeing their names to a charity as at the -present day, and so plausible and persevering was -the Scotchman that he soon procured duchesses and -peeresses to herald his speculation.</p> - -<p>He was shrewd enough to vary his premiums to -the position of the applicant. He would take less -than the established rates under cover of a charitable -institution; and the poor brought their money to -him because they could buy a larger annuity with -less cash than anywhere else. He tempted the -general public with low rates of premium as he -pointed to the character of a board which never met. -He would sell a life annuity for whatever he could -get, as he never refused an offer; and, with a list of -patrons like that which he paraded at the head of his -advertisements, it was almost impossible to doubt the -solidity of the company. His speculation answered. -He had a large office; he employed a considerable -number of dependants; and the money which he -gained easily he spent freely. More customers came<span class="pagenum"><a id="Page_166">[166]</a></span> -to his office than to any other’s; for while the poor -sought him with their savings, the rich advised with -him as to investment. He was consulted by widows, -and made the trustee of orphans. No one inveighed -against mammon with more solemn sanctity, and no -one received money with a more demure aspect. He -gave great parties; he contrived to connect his name -with a certain class of the aristocracy; he dabbled in -literature, and, like an enthusiast of the present day, -who is said to tell those who connect themselves -with his office that neither they nor their children, -nor their children’s children, can ever know want, he -succeeded in impressing on the public a conviction of -his worth.</p> - -<p>The remarkable character of this man enabled him -to play many parts. In his office, and with the Hallifaxes, -the Dents, the Glyns, and the Ladbrokes of -the time, he was the close, cool, methodical man of -business. Punctual to his time, his lightest word his -bond, and ready with his payments; he was respected -in the City. Connected, as it has been seen, with -the sect of Whitfield, he seemed a reverent, devout -attender on the rites of religion. Though he gave -up preaching when he had attained his object, he yet -retained a prominent position in the chapel where he -once held forth. But it was afterwards whispered<span class="pagenum"><a id="Page_167">[167]</a></span> -by those who knew him well, that he had another -and less worthy character. That some one marvellously -like him was seen in places which sectarians -hold in horror; that when with persons he could -trust, his orgies were as wild as the worst of a wild -time; and close observers might have added that the -sweet smile and the unctuous bearing were but the -cloak to cover his real designs, had not his purse and -his reputation disposed them to be short-sighted.</p> - -<p>The game he meant to play is uncertain, as his -career was cut short by the publication of the work -of Dr. Price, on reversionary payments, which had -drawn notice to these societies generally. Some -were discovered to be false and hollow; others merely -founded in ignorance. Attention became naturally -pointed to their framers. Questions were asked as -to the promoter of the last new company, which were -more easily asked than answered. Cunningham -took the alarm, withdrew his cash in gold from the -bankers, told his subordinates to continue the business -until he returned, and left an address for his -correspondence.</p> - -<p>From that time he was heard of no more, and the -only conjecture that could be made, was from the -intelligence that a vessel trading to Ireland had been -wrecked, and that one of the bodies was that of a<span class="pagenum"><a id="Page_168">[168]</a></span> -gentleman supposed to be David Cunningham, the -founder of the Imperial Annuity and Charitable -Pension Society.</p> - -<p>The misery caused to all whom this man had -wronged was great; but it is impossible to teach -wisdom, and recent annals have shown us that the -world, in this respect, has not grown wiser as it has -grown older.</p> - -<p>The act just given, entitled, “An Act to prevent -Gambling in Annuities,” struck a severe blow at -annuity companies like these, as well as at those -which were for the sake of gambling merely, or for -which an unfair consideration had been given. It -might be evaded by some, or it might be defied by a -few; but it at least had the effect of sending the -purchasers to those legitimate offices from which -alone they were certain of receiving their due.</p> - -<p>By this time the subject of mortuary registrations -was mooted in magazines and periodicals, and many -ideas may be found scattered over contemporaneous -literature, which probably assisted to perfect the -necrological system which we now enjoy. It may -seem trite to relate that in 1773 it was recommended -to keep a table of christenings, marriages, and burials -in every church, chapel, and place of religious worship, -to be published annually; but this was a grasp<span class="pagenum"><a id="Page_169">[169]</a></span> -of intelligence not previously attained; and when, -too, it was advised that the tables of christenings -should specify the sexes, and the tables of deaths -divide the males into children, bachelors, married -men, and widowers, and the females into corresponding -denominations, it was really no trifling advance -in the objects of life assurance, although it was not -thought so at the time. It was said, also, and said -justly, “The establishment of a judicious and accurate -register of the births and burials in every town -and parish, would be attended with the most important -advantages,—medical, political, and moral. By -such an institution, the increase or decrease of certain -diseases, the comparative healthiness of different -situations, climates, and seasons, the influence of particular -trades and manufactures on longevity, with -many other circumstances not more interesting to -physicians than beneficial to mankind, would be -ascertained with tolerable precision. In the Pays de -Vaud and in a country parish in Brandenburgh, -1 in 45 of the inhabitants die annually, and at <span id="Ref_169">Stoke Demerell</span>, -in Devonshire, 1 in 54. Whereas in -Vienna and Edinburgh the yearly mortality appears -to be 1 in 20; in London, 1 in 21; in Amsterdam -and Rome, 1 in 22; in Northampton 1 in 26; and -in the parish of Holy Cross, near Shrewsbury, 1 in<span class="pagenum"><a id="Page_170">[170]</a></span> -33. In the Pays de Vaud the proportion of inhabitants -who attain the age of 80 is 1 in <span class="nowrap">21 <span class="fnum">1</span>/<span class="fden">2</span></span>; in Brandenburgh, -1 in <span class="nowrap">22 <span class="fnum">1</span>/<span class="fden">2</span></span>; in Norwich, 1 in 27; in Manchester, -1 in 30; in London, 1 in 40; and in Edinburgh, -1 in 42.”</p> - -<p>This was in 1773, and the intelligent reader will -necessarily be reminded of the period when life -annuities were paid for without regard to youth or -age, and when a life insurance office commenced -business, and received equal premiums from the -young and from the old, from the healthy and the -sick. But people were beginning to think. In 1777 -fault was found with the charges of the Equitable, -and the following scale proposed:—</p> - - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="life annuity tables, by age"> -<tr><td align="left"></td><td align="left"></td><td colspan="3" align="left" class="cellpadding3">3<em>l.</em> per cent.</td><td colspan="3" align="left" class="cellpadding3">4<em>l.</em> per cent.</td><td colspan="3" align="left" class="cellpadding3">5<em>l.</em> per cent.</td></tr> -<tr><td align="left">21</td><td align="left">years of age</td><td align="left" class="cellpadding3">2</td><td align="left">17</td><td align="left">7</td><td align="left" class="cellpadding3">2</td><td align="left">16</td><td align="right">0</td><td align="left" class="cellpadding3">2</td><td align="left">15</td><td align="left">0</td></tr> -<tr><td align="left">30</td><td align="center">”</td><td align="left" class="cellpadding3">3</td><td align="left">13</td><td align="left">4</td><td align="left" class="cellpadding3">3</td><td align="left">12</td><td align="right">8</td><td align="left" class="cellpadding3">3</td><td align="left">12</td><td align="left">5</td></tr> -<tr><td align="left">40</td><td align="center">”</td><td align="left" class="cellpadding3">4</td><td align="left">11</td><td align="left">6</td><td align="left" class="cellpadding3">4</td><td align="left">13</td><td align="right">11</td><td align="left" class="cellpadding3">4</td><td align="left">14</td><td align="left">1</td></tr> -<tr><td align="left">50</td><td align="center">”</td><td align="left" class="cellpadding3">5</td><td align="left">15</td><td align="left">5</td><td align="left" class="cellpadding3">5</td><td align="left">18</td><td align="right">0</td><td align="left" class="cellpadding3">5</td><td align="left">17</td><td align="left">4</td></tr> -</table></div> - -<p>In 1779 a proposal was made for an universal -assurance of lives, by means of a tax to be levied by -Government. By this all want was to be abolished, -and various Utopian benefits to be received. As, -however, the scheme was never carried out, it is only -worthy of notice as indicative of a growing spirit of -inquiry.</p> - -<p>In 1783 Mr. Baron Maseres endeavoured to familiarise<span class="pagenum"><a id="Page_171">[171]</a></span> -the mind with the doctrines of life annuities. -It is to his discernment that we owe the confirmation -of Mr. de Moivre having recourse to an hypothesis -concerning the probabilities of the duration of human -life, which he yet knew to be untrue, in order to -facilitate the computation. This work of Francis -Maseres is less referred to than it deserves; but there -is reason to believe that the value of his tables for -all ages under 75 or 80 were nearer the truth for the -average of this country, than any other then extant.</p> - -<p>During the mania for insuring anything and everything, -there was a man named John Perrott of considerable -repute in the coffee-houses and on the -Exchange. He resided in a large mansion many -miles out of town, and rode to Lloyd’s in his coach -and four, after the fashion of the magnates of the -day. He had come from the country a poor but -clever boy, and had worked his way until he could -boast that he was worth a plum. His avocations -were various. He was a member of Lloyd’s; he -was a speculator on the money market; he was an -insurer of lives, of merchandise, and of anything that -was offered, and so daring was his character that he -would take any risk however desperate, his motto -being, “Everything is insurable—at a premium.” -He was liberal in his dealings in business, and in his<span class="pagenum"><a id="Page_172">[172]</a></span> -annuity transactions would often grant more than he -was asked if the applicant seemed to require and -deserve it. He affected an expensive style of living; -his agents bought rare pictures; but his chief delight -was to collect fine china, a taste in which he indulged -to an extravagant extent. The uglier the monster -the dearer it was to John Perrott, and the more he -was willing to pay for it. His clerks were employed -to board the vessels from the East directly they -reached the Thames, and he would at any time leave -off business to listen to information about pottery -and porcelain. When a man came to insure his life -or his ship, to buy an annuity or to sell one, he was -sure of a favourable bargain if he could but produce -some vase or jar which had been seen by no one else. -He had one fine specimen in his collection, which -however required a second and similar one to complete -its value in his eyes. This he once possessed, -but being lost or broken, it afforded him a constant -topic of complaint, and out of it arose a characteristic -story of the man.</p> - -<p>One day he was applied to by a merchant to effect -an assurance on a ship which had been long absent, -and of the safety of which many doubts were entertained. -Perrott demanded a very high premium, and -the applicant demurred. In the course of conversation,<span class="pagenum"><a id="Page_173">[173]</a></span> -however, he carelessly alluded to a fine -porcelain jar of which a friend was possessed, and -which he thought he could procure. Perrott’s eyes -opened as the description proceeded. It was the -apple of his eye, the very specimen his soul desired, -and his visitor, on witnessing the anxiety he evinced, -offered to go for it, good-naturedly declaring it was -of no value to him, and at the express solicitation of -Perrott went off immediately to fetch the valued -prize. The merchant seemed a long time gone, but -Perrott attributed this to his own impatience, and -felt fully rewarded when he saw him return bearing -the porcelain he coveted. With eager hands he -grasped it; the assurance on the missing ship was -most advantageously concluded for his client; and -Perrott went home a happy man. On entering the -place where all his treasures were deposited, lo! his -own jar was missing, and he found on inquiry that -he had been outwitted by his City friend, who had -tempted him to a low assurance with information -about his own property, and at his urgent wish had -procured it from his own home by a deception on his -own housekeeper.</p> - -<p>Burning with rage, and vowing vengeance against -the crafty merchant, whom he determined to expose -on ’Change, Perrott went to town the next morning,<span class="pagenum"><a id="Page_174">[174]</a></span> -where the first information which greeted him was -the arrival of the vessel he had just assured. Finding -the tables turned in his favour he wisely held his -peace, merely making an especial visit to the merchant -to congratulate him on the arrival of his merchandise -so immediately after he had assured it.</p> - -<p>The following fraud, which was perpetrated in -1780, was perhaps the first instance of a deception -which has since been often repeated. An application -was made to the London to insure the life of a lady for -2000<em>l.</em> The references were satisfactory. The lady’s -health was sound, her habits were good, her constitution -was excellent. The usual certificates were -handed in and the assurance was concluded. Within -six months a claim was made for the money. The -ordinary forms were lodged and found to be regular, -the disease was certified to be that of the lungs, -which of all others should have been discovered in -the earliest stages. The directors looked grave and -questioned the secretary, and the secretary questioned -the doctor. There was no accounting for it; it all -seemed regular; no fraud could be alleged, and the -policy was discharged. Scarcely had it been paid -when certain information was given. Inquiries -were again instituted, and it was discovered that one -sister being ill and utterly given over, the other<span class="pagenum"><a id="Page_175">[175]</a></span> -brought a certificate of the invalid’s birth, personated -her at the assurance office, deceived the medical man, -sent in the certificate of her sister’s death, and -obtained the money. No sooner did the office commence -its inquiries than the lady was missing, and -the company compelled to abide by its first loss.</p> - -<p>An annuity and assurance office, stimulated by the -success of the Equitable, was commenced under the -title of “the Universal,” but history is silent as to -its results. Many other attempts were made, some -of a purely local character, which were very successful; -others, more ambitious, failed in their endeavours. -In 1792 the present Westminster Society commenced -business, and in 1797 was followed by the Pelican, -now in active existence. Some time prior to these, -there was an advertisement of a new assurance office -on the lives of men, women and children at the -Bell and Dragon, otherwise called “Lincoln’s Inn -Eating-house in Portugal Street, Lincoln’s Inn, -Back Gate.” It need not be added that it was not -by means of the “back gate to the Bell and Dragon” -that the Westminster and the Pelican obtained their -deserved success.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_176">[176]</a></span></p> - - - - -<h2>CHAP. XI.</h2> - -<p class="chapter-subheading">LEGAL DECISIONS.—WILLIAM PITT, AND GODSALL AND CO.—ROMANCE -OF LIFE ASSURANCE.—THE GLOBE.—NEW COMPANIES.—THE -ALLIANCE—ITS PROMOTERS.—IMPROVEMENT OF THE -VALUE OF LIFE CONSEQUENT ON THE IMPROVEMENT IN SOCIETY—ITS -DESCRIPTION.—TRIAL CONCERNING THE DUKE OF SAXE -GOTHA.—IMPORTANT LEGAL DECISION.</p> - - -<p>It has been said that corporations have no souls to -be saved or bodies to be kicked; but it may be added -that they have a wild kind of justice meted to them -when they appeal to a jury. So early as 1801, this -was proved in a case of life assurance.</p> - -<p>In 1799, a Mr. Robson, at the instance of a Mr. -Kerslake, who was to grant the former an annuity, -proposed his life for insurance to the Westminster -Insurance Company. The usual forms were passed -through, the usual undertaking entered into that the -assured was in good health, his age being only -twenty-three, and the policy was issued by the office. -In three months he died. The Westminster Society -made inquiries which perhaps they should have made -before, and those inquiries discovered that Mr. -Robson had been labouring for some time under<span class="pagenum"><a id="Page_177">[177]</a></span> -what is popularly known as a tendency to consumption; -that in 1797 he had suffered from hæmorrhage -in the lungs, but had recovered; that in -February, 1799, though he had another similar -attack in a more violent degree, he had said nothing -about it, opening the policy on his life in March. -In the autumn he took cold, fell into a rapid decline -and died. There was clearly a predisposition to -disease, and though it is a very important consideration, -whether a policy once open should not be indisputable, -yet until this is so, there is in a case like -the present but one view to be taken. The company -rightly refused to pay, and an action was brought to -compel them.</p> - -<div class="poetry-container"> -<div class="poetry"> -<div class="stanza"> -<div class="indentquotebase">“Who shall decide when doctors disagree?”</div> -</div></div></div> - -<p>One party swore there were no symptoms which -indicated consumption. The other took their oaths -that consumption was inevitable with such symptoms. -In vain Lord Kenyon charged the jury in favour of -the Westminster, the jury knew better than his -lordship, and had no notion of a policy being -opened without being discharged, whatever the -deceit might be. They decided against the company. -Another trial was sought and granted, but in vain. -The new jury maintained the principles of the old,<span class="pagenum"><a id="Page_178">[178]</a></span> -and the company lost its money and gained the -vituperation of the unthinking.</p> - -<p>The great minister of the past century died insolvent, -and from this arose one of those actions, -which at once confirm a law and establish a principle. -In 1803 William Pitt was indebted to Godsoll and -Co., his coachmakers, upwards of 1000<em>l.</em> To secure -some part of this in the event of his demise, they -assured his life for seven years with the Pelican -Company, for 500<em>l.</em> at the rate of 3<em>l.</em> 3<em>s.</em> per cent. -In 1806, three years after this, the premier died -without sufficient assets to meet his liabilities. The -greatness of his services to the country, the fact that he -had died in debt being a proof of his self-abnegation, -demanded an acknowledgment, and the state very -properly determined to pay his creditors. This was -not sufficient for the coachmakers; an immediate -claim was made by them for payment of the 500<em>l.</em> -assured. As Godsoll and Co., however, had received -the entire amount of their bill when Mr. Pitt’s other -debts were discharged, the Pelican refused to pay, on -the ground that their insurable interest in the life of -the deceased had been terminated by the payment of -his debts, and that as the insurance was to meet a -special debt, since discharged, they could not recover.</p> - -<p>On the one hand, Godsoll and Co., possessed an insurable<span class="pagenum"><a id="Page_179">[179]</a></span> -interest at and from the time of the opening -the policy, to the death of Mr. Pitt. On the other, -the assurance being for a special purpose, to procure -the payment of a debt otherwise discharged, there -could be no justice in paying it twice. The company -therefore offered to return the premiums, but refused -to pay the policy. There was an immense amount -of special pleading by the counsel of Godsoll and Co. -to make the worse appear the better cause. It was -contended that, having had the necessary insurable -interest up to the death of Mr. Pitt, the after payment -of his debts did not vitiate their right; that, in -other words, having paid the premiums for a special -purpose, which purpose was effected, they ought to -receive their 500<em>l.</em> instead of being satisfied with the -return of the mere premiums. It was now to be -resolved whether, under any form or by any subtlety -of argument, the statute which said so distinctly an -insurable interest was necessary, could be broken -through.</p> - -<p>Had Godsolls carried their point, every creditor -might have insured the life of his debtor and received -a double payment of his debt. Every tradesman in -London might have speculated on his customers’ -health, and the act which was to destroy gambling -policies, would have been practically repealed. The<span class="pagenum"><a id="Page_180">[180]</a></span> -judgment of Lord Ellenborough, when he gave the decision -in favour of the Pelican, is worth transcribing.</p> - -<p>“The interest which the plaintiffs had in the life -of Mr. Pitt was that of creditors, a description of -interest which was held to be an insurable one. -That interest depended on the life of Mr. Pitt in -respect of the means and of the probability of payment -which the continuance of his life afforded to -such creditors, and the probability of loss which resulted -from his death. The event against which the -indemnity was sought by this assurance, was the consequence -of his death as affecting the interest of -these individuals assured in the loss of their debt. -This action is, in point of law, founded upon a supposed -damnification of the plaintiffs, occasioned by -his death existing at the time of the action, and -being so founded, it follows that if before the action -was brought, the damage was obviated by the payment -of his debt to them, the foundation of any -action on their part on the ground of such assurance -fails. And it is no objection to this answer that the -fund out of which their debt was paid did not -originally belong to the executors, as a part of the -assets of the deceased; for though it was devised to -them <i lang="la" xml:lang="la">aliunde</i>, the debt of the testator was equally -satisfied by them thereout, and the damnification of<span class="pagenum"><a id="Page_181">[181]</a></span> -the creditors, in respect of which their action upon -the insurance contract is alone maintainable, was -fully obviated before their action was brought. -Upon this ground, therefore, that the plaintiffs had -in this case no subsisting cause of action in point of -law, in respect of their contract, we are of opinion -that a verdict must be entered for the defendants.”</p> - -<p>In one of the eastern possessions of this country, -there resided a lady who, when gold was sought there -by adventurous men, and when young ladies were -regularly educated for the Indian matrimonial market, -had left England on an expedition of this character. -Her craft and cunning would have insured success, -had not her beauty, which is described as exceedingly -great, been a sufficient guarantee. She was consigned -to the care of a lady who had gone out on a -similar adventure herself, and who then held a somewhat -high position in her own circle. The arrival of -the young adventuress as a new article was marked -by a succession of amusements: whispers of love -and offers of settlement were not wanting, though, -being ineligible, they were disregarded, until she -became acquainted with a civilian reputed to be very -wealthy, and known to be rather old. This gentleman -she married. Unhappily, the wealth was only -reputed; and the stormy indignation of the young<span class="pagenum"><a id="Page_182">[182]</a></span> -beauty when she discovered her error,—when she -found her requests for new carriages were disputed, -and for new jewellery were refused,—somewhat -astounded the indolent Anglo-Indian, who had been -the woo’d rather than the wooer, and been married -rather than he had married. So soon as she discovered -that she had wedded a poor instead of a -wealthy man, and that all her care and cunning had -been in vain, she grew gloomy, dark, and discontented; -but at last, on representing to her husband -that she would be comparatively penniless if he were -to die, accompanied by blandishments which were -the more welcome from their rarity, he procured -an insurance on his life, from the agent of a London -company, for some thousands.</p> - -<p>Among others attached to the household of this -gentleman was a native domestic, who at first had -received the authority of his new mistress with discontent, -for until she came he had been paramount. -But it was not long before he succumbed, being -suspected of a warmer attachment than could be reconciled -with the connection of servant and mistress. -There were many whispers circulated concerning -them, in the dissipated circle in which the lady -moved; though so long as open decency was preserved, -the manners of the time allowed a considerable<span class="pagenum"><a id="Page_183">[183]</a></span> -latitude; and rather than disturb the <i lang="it" xml:lang="it">dolce far niente</i> -of their indolent and luxuriant existence, they were -content to give her the benefit of the doubt. It was -not long before symptoms of decaying health—“the -liver disease,” said the doctor, for every thing was -then and there so called—began to appear in the -insured man. Whether he declined to apply for -leave of absence, or whether some backstairs influence -was used to prevent it, is uncertain; at any -rate, he still kept at his old quarters, dying gradually -away, wasted by slow disease. During this period, -the behaviour of his wife was exemplary: his pillow -was smoothed, his medicine was administered, his -cough was hung over by her: and if she left him for -a time, the Hindoo, gliding about like a shadow, was -ever by his master’s side, to complete what his mistress -began. It was noticed, however, that the -patient seemed to suffer, rather than desire so close a -connection; and to shrink from, rather than claim -such attention. This, however, was thought little of, -being attributed to an irritability of temper arising -from disease.</p> - -<p>In due time the unhappy man died; the insurance -money was claimed by the widow, and paid by the -insurers. The household was broken up, and the -widow came to England. For a few years she lived<span class="pagenum"><a id="Page_184">[184]</a></span> -in great luxury, indulging expensive tastes on the -money she had received, until only a few hundred -pounds were left in the hands of her bankers. Being -a woman of such remarkable beauty, it is somewhat -surprising that she had not married a second time in -accordance with the extravagant and voluptuous -tastes, which her residence in the East had engendered. -Instead of this, she formed an acquaintance -with a young man of inferior position; a proposal of -marriage followed, and she induced him to offer his -life for insurance, undertaking to pay the premiums -out of her own funds. The banker with whom -her money was lodged was amazed when he heard -what she was about to do, and made some inquiries -of an old East Indian, who was then in England, -concerning her former life. The replies of this gentleman, -although cautious, were sufficient to point -the lady out as a very doubtful character; and -whether, on this, a hint was given to the intended -bridegroom is uncertain, but that gentleman declared -off; and the condition of the insurance not being -complied with, the dark purpose was foiled. A few -months after other offices were applied to, with proposals -for an insurance on the life of a young relative -of the same lady, accompanied by a reference to -the gentleman who acted as her banker. Inquiries<span class="pagenum"><a id="Page_185">[185]</a></span> -were necessarily instituted as to the reasons for insuring, -but no sufficient cause could be shown. It -was found, too, that she had no money to pay more -than one insurance; and, coupled with the reports -which were afloat concerning her first husband’s -death, a very dark purpose was assigned to her present -movement. Awkward questions were raised—information -was received, which pointed to her as the -poisoner of her husband, and to the Indian servant -as an agent in the infamous deed. A prompt negative -was given to her application for insurance; and -whether conscience aroused her to a sense of her -frightful position, or whether she saw her way to -success on the continent or in India, is uncertain. -She drew her money from her agents, and disappeared -for ever from the society in which she had -glided like an incarnation of evil.</p> - -<p>Up to 1800, six offices only were in existence. -The Globe, however, followed in 1803, being -founded by Sir Richard Glyn; and though purely -proprietary, answered the requirements of the time. -When it endeavoured to obtain a charter, the vested -interests rose against it, using the same arguments to -prevent its establishment, which the Globe itself has -since brought against the formation of the new companies -in 1850. It may be noticed that this insurance<span class="pagenum"><a id="Page_186">[186]</a></span> -bill was introduced by Lord Henry Petty<a id="FNanchor_16_16" href="#Footnote_16_16" class="fnanchor">[16]</a>, -descended from that Sir William Petty whose services -in the cause of vital statistics have already been -mentioned. Sir Charles Price, Sir William Curtis, -and Mr. Grenfell, opposed it in behalf of the Royal -Exchange and London Assurance Companies, on the -ground that it would be an infringement of their -rights. On behalf of the Globe, it was argued that -competition was necessary—that the population and -trade of the country had vastly increased since 1720—that -a large amount of insurance was effected out -of England, for want of chartered companies—and, -above all, that the Globe would give 100,000<em>l.</em> to the -public. The last consideration carried the point, -and the Globe was chartered. In 1805, a movement -began in these institutions, occasioned by a great excitement -in the money market. In 1806, in 1807, and -1808, eight new offices more were established; and -from that year to 1821, out of a great number which -were proposed, commenced, and failed, eight additional -companies maintained their ground. In 1823, four; -in 1824, seven; in 1825, four; and in 1826, three -more were added to the list, making, by that year, a -total of 41.</p> -<p><span class="pagenum"><a id="Page_187">[187]</a></span></p> -<p>There was room, in 1825, for an augmentation of -companies. The population of London in 1821 was -1,225,694; of these very few had assured their lives; -and if a city like London were behind in this matter, -it may be supposed that the inhabitants of the rural -districts were difficult to impress with its importance. -Up to 1825, assurance could not be said to have -made much advance—certainly not in proportion to -the general advance of commerce. There had, indeed, -been much to alarm the public as to the safety -of life institutions. From 1806 to 1826 more companies -had been broken up than had been successful. -In the first-named year only 9 were in existence; -since which, out of 30 which were commenced, 20 -were compelled to abandon their business.<a id="FNanchor_17_17" href="#Footnote_17_17" class="fnanchor">[17]</a> Some -went down in total insolvency; others lost a large -portion of their capital; another set of directors paid -the Provident Life 21,000<em>l.</em> to take their risks off<span class="pagenum"><a id="Page_188">[188]</a></span> -their hands. Very extravagant promises had been -made by these companies. One gentleman announced -of the Union Life, “that every feature of -its plan was marked by superior liberality and with -a decided contempt of all the petty advantages which -swell the profits of other offices.” A second society, -the Provincial Union, offered to take lives at 10 per -cent. under others; while another, with a spirit of -“extra superior liberality,” would do it at 20 per -cent. less. Of course such as these were never -meant to last; but it was said, “they are persevered -in until everything is consumed, while the -chief actors laugh in their sleeve and enjoy their -profits as long as the bubble lasts, and impunity -when it bursts.”</p> - -<p>Among the companies which were started in 1825, -and which attracted attention from the importance -of its promoters, was the Alliance. In its marine -capacity it broke down the charters of the old corporations, -and was at once successful, not from any -special merit, but because it numbered among its -members the representatives of the first city firms. -It may be added, that, among them, four men more -alike in the one desire of making money, but more -dissimilar in tastes, pursuits, and habits, were never before -united. These were John Irving, Baron Goldsmid,<span class="pagenum"><a id="Page_189">[189]</a></span> -Moses Montefiore, and Samuel Gurney. The first of -them, John Irving, affected West End company and -aristocratic tastes, by virtue of the friendship of the -House of Rutland. He was familiar with men in Lothbury -who were never able to meet his eye in Hyde -Park. He knew many a merchant on ’Change whom -he could not recognise in St. James’s. “He shakes me -by the hand in the City,” growled Rothschild to a -friend; “but he can never see me in Piccadilly when he -is walking with a duke.” Moses Montefiore, the huge -capitalist, and Isaac Goldsmid, the hereditary financier, -are familiar to the reader. The last on the list -is Samuel Gurney, whose simple garb of russet brown -and unassuming speech, contrast as much with his -great wealth, as his massive, masculine, and almost -leonine face does with his single-minded and benevolent -character. These were the men who gave at -once success and security to the Alliance.</p> - -<p>The increased number of offices had the tendency -to extend public information, and to draw the attention -of many who had hitherto thought nothing on -the subject. The original object of life assurance -was simply to enable a person to secure to his family -the receipt of a certain sum at his death. But by -1825 it was applied to a variety of purposes; assurances -were effected by creditors on the lives of<span class="pagenum"><a id="Page_190">[190]</a></span> -their debtors. If money were borrowed for a year -the life of the borrower was assured. In marriage -settlements, where the capital would pass from the -husband at the death of the wife, an assurance was -effected on the life of the latter. “In every form,” -says Mr. Gilbart, “the system seems to produce -unmingled good. It promotes habits of forethought -and economy on the part of the assured; it tends, by -the accumulation of saving, to increase the amount -of the national capital.”</p> - -<p>The knowledge connected with the population -was constantly increasing; and, though it was imperfect -enough, still it was in advance of our previous -information. In 1801 an approximation was -made to that of London, which was supposed to be -864,845; and when it is remembered that Captain -Graunt, so early as 1664, calculated it at 384,000, -the numbering of the people in 1801 was no small -benefit. In 1811, when a second census was taken, -the population was stated to be 1,009,546; and a -further increase was declared in 1821, when the -population showed itself as 1,225,694. These calculations -were not effected without difficulty, and -many objections were made by good but narrow-minded -men, who, from press and from pulpit, did -not fail to remind our rulers that David was rebuked<span class="pagenum"><a id="Page_191">[191]</a></span> -by the prophet, and punished by God, for attempting -to do that which they had done.</p> - -<p>The health of London was also improved. It -was estimated that the introduction of vaccination -had increased the mean duration of human life -about <span class="nowrap">3 <span class="fnum">1</span>/<span class="fden">2</span></span> years. There had been a great advance in -medical skill. Discoveries in chemistry had been -brought to bear upon disease. The arrangements of -our hospitals had enabled students to graduate under -men of distinguished attainments; the discipline of -the medical school had been increased; and, though -ignorance was often in the ascendant, and quackery -was encouraged as a revenue to the state, men—somewhat -different to those who were licensed to -kill in the days of Fielding and of Smollett—were -employed in invigorating the constitutions and prolonging -the lives of their fellow-countrymen. We -must not also forget, that by 1825 a vast improvement -had occurred in the manners and habits of -social life. Our fathers still remember their visits -when the bottle kept so constant a round that few -remained sober; when to be asked to a dinner-party -was to be asked to get intoxicated; when two and -three-bottle men boasted their acquirements; when -the wild orgy disgraced humanity, and the wild -debauch destroyed life. We of the present day<span class="pagenum"><a id="Page_192">[192]</a></span> -boast of this improvement to our children, and whatever -new vice may have usurped the place of the -old, it is, at least, less open in its defiance, and less -baneful in its results. When Petty first published, -the streets were confined, cleanliness was disregarded, -refuse and offal accumulated in the highways, -and ventilation was laughed at. There may -still be many receptacles of filth in London, but -they do not meet us in our daily avocations. The -kennels of Southwark do not run blood two days in -every week, as they did in the last century; nor are -hogs “bred, kept, and fed,” in our populous neighbourhoods. -If, therefore, there were any thing in -the advance of chemistry, in draining, in ventilation, -in more wholesome living, in the absence of open -debauchery, it followed that there would be a considerable -decrease in the rate of mortality. From -1700 to 1780, the deaths averaged about one in -thirty-eight of the existing population. But in 1790 -it became about one in forty-five, in 1800 one in -forty-eight, in 1810 one in fifty-four, and in the ten -years preceding 1820 one in sixty, in England and -Wales.</p> - -<p>But though these important facts had gradually -become known; although it was also clear that -people lived longer; that the wealthy classes attained<span class="pagenum"><a id="Page_193">[193]</a></span> -a greater age than the indigent; that the value of a -lady’s life, commercially, and not in the spirit of gallantry, -was superior to that of a gentleman; it could -scarcely be said to be acted on. So late as 1819, -Dr. Rees suggested the importance of specifying the -sexes, and discriminating them in the burial registers, -advising also that the numbers of both sexes dying -of every distemper in every manner and at every age -should be specified. “This would afford the necessary -data for ascertaining the difference between -the duration of human life among males and females, -for such a difference there certainly is much in -favour of females.”</p> - -<p>The tables on which the rates of the companies -had been founded, had given the continuance of life -at a far lower estimate than time had proved it -to possess. The enormous success of the original -societies had proved this; and, by 1821, it was generally -understood that the Northampton table was -only an approximation to the truth. This table was -chiefly in use until the Carlisle table of Mr. Milne -gradually made its way, up to which period the following -were the principal sources whence information -was derived:—</p> - -<p>A Record of the Births and Burials in Breslau from 1687 to -1691.</p> - -<p><span class="pagenum"><a id="Page_194">[194]</a></span></p> - -<p>London Bills of Mortality from 1728 to 1737.</p> - -<p>Register of Assignable Annuities in Holland from 1623 to -1748.</p> - -<p>Lists of the Tontine Schemes and the Necrologies of Religious -Houses in France.</p> - -<p>Mortality of Northampton for forty-six years prior to 1780.</p> - -<p><span class="quotepadding7">”</span> of Norwich thirty years prior to 1769.</p> - -<p><span class="quotepadding7">”</span> of Holy Cross thirty years prior to 1780.</p> - -<p><span class="quotepadding7">”</span> Warrington for nine years.</p> - -<p><span class="quotepadding7">”</span> Chester for ten years.</p> - -<p><span class="quotepadding7">”</span> Vienna, Berlin, and Brandenburgh.</p> - -<p><span class="quotepadding7">”</span> Seven enumerations of the entire population of Sweden.</p> - -<p><span class="quotepadding7">”</span> of similar materials from the Canton de Vaud.</p> - -<p>Notwithstanding these varied materials, and although -they were quoted as authorities for maintaining a -high rate of premium, the societies in existence were -well aware that their rates were fixed on too ascending -a scale. They had found unexpected sources of -profits in lapsed policies; they had estimated an -employment of their money at 3 per cent., and, at -the very lowest calculation, their receipts had averaged -4 per cent. Nor was this likely to diminish, -for there can be no doubt that laws as unerring as -those which govern health govern the annual value -of money. In 1810, Mr. George Barrett had presented -to the Royal Society a new mode of calculating -life annuities. This the Society declined to publish, -but that which was refused by a public body was<span class="pagenum"><a id="Page_195">[195]</a></span> -adopted by a private individual, and Mr. Bailey gave -it to the world in the appendix to his valuable work -on “Annuities.” The method of Mr. Barrett was -extended and improved by Mr. Davies, in 1825, in -his tables of life contingencies; a proof that the -Royal Society had made a mistake in refusing to -publish the contribution of Mr. Barrett.</p> - -<p>In 1830 it was decided that a policy was vitiated -because the person insured had only answered the -questions demanded, and had not stated all the -features of his case. The following is a digest of -the circumstances:—</p> - -<p>The life of the Duke of Saxe Gotha, after the -fashion of the Germans half a century since, was said -to have been a dissolute one, and by 1825 had -debilitated his constitution. He had lost the use of -his speech, and whatever mental faculties he had -originally possessed, became materially decreased. -Private reports to the directors hinted at these -material circumstances, “little as they were believed -to have an influence on his natural life.” No hint -of the kind, however, escaped the friends of the -assured, and the directors, trusting to the honour of -the duke more than as traders they ought to have -done, granted a policy. One year after, Death, -respecting not the person of his highness, seized him<span class="pagenum"><a id="Page_196">[196]</a></span> -for his prey, and it was discovered that a tumour, of -some years’ standing, had pressed upon his brain and -caused his decease.</p> - -<p>With only one year’s premium received, the office -found this claim very unpleasant, and refused to pay. -They said the mental state of the duke had not -been mentioned, that they were ignorant of his loss -of speech, and they fought very vigorously against -discharging the policy. The question which rose -was, whether it was necessary to give special information -which was not asked; whether, in fact, a -truthful answer to all queries was not enough. -When the trial came on, the verdict was given for -the office, because, according to Mr. Justice Littledale, -it was the duty of the assured in every case to -disclose all material facts within their knowledge: -“In cases of life assurance, certain specific questions -are proposed as to points affecting all mankind. -But there may also be circumstances affecting particular -individuals which are not likely to be known -to the insurers, and which, had they been known, -would have been made the subject of specific inquiries.” -However legal this might be, it was -scarcely equitable. The directors had insured the -life of this gentleman, knowing, from private information, -that his career had been gay, and his constitution<span class="pagenum"><a id="Page_197">[197]</a></span> -debilitated, and they ought, on every principle -of justice, to have been compelled to pay their -obligation.</p> - -<p>In the same year another very important decision -was arrived at. A gentleman assured the life of his -son in the Asylum for 5000<em>l.</em> After the payment of -two years’ premium the son died, and the office -refused to honour the policy, because the father -had no insurable interest in the life of his son. -When the case was tried, the grounds on which the -counsel endeavoured to prove an insurable interest -were, that the father had expended a large sum in -maintaining and in educating the deceased; that if a -man had an insurable interest in his own life, he certainly -had in that of his son; that a father might -have many valuable rights and expectations depending -on it which he could only protect by an insurance; -that, by the statute of Elizabeth, if a father -became poor in his old age, and his son was capable -of maintaining him, he was bound to do so, -and therefore the chance of the father being maintained -in his old age was decreased by the death of -his son.</p> - -<p>The special pleading evident in this line of argument -was not calculated to be successful. But -though a strict interpretation of the act might justify<span class="pagenum"><a id="Page_198">[198]</a></span> -the refusal to pay, it does not appear that such a -decision is strictly equitable.</p> - -<p>The reason which induced the office to refuse payment -may possibly be found in the fact that only -two years’ premium was received, and that, as a -young office, they were galled at having made an -unfortunate bargain. But there does not seem justice -in the interpretation of a law which decides that -a father has no interest in the life of his son, although -there are many reasons to justify it as expedient. -Yet so it was ruled; and this decision affected property -to the amount of half a million. Mr. Justice -Bayley, in giving judgment, said: “If a father, -wishing to give his son some property to dispose of, -made an insurance on his son’s life, not for the -father’s own benefit, but for the benefit of his son, -there was no law to prevent his doing so; but that -was a transaction quite different from the present; -and if the notion prevailed that such an insurance as -the one in question was valid, the sooner it was corrected -the better.”</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_199">[199]</a></span></p> - - - - -<h2>CHAP. XII.</h2> - -<p class="chapter-subheading">GOVERNMENT ANNUITIES—OPINIONS CONCERNING THEM—GREAT -LOSS TO THE STATE.—MR. MOSES WING’S LETTER.—MR. FINLAISON.—NEW -ANNUITY ACT—ITS ADVANTAGES TO JOBBERS.—ENDEAVOURS -TO PROCURE OLD LIVES.—ANECDOTES CONCERNING -THEM.—PHILIP COURTENAY.</p> - - -<p>Up to the year 1808 there was no mode of investing -money in life annuities at once safe and profitable. -Although the assurance were also annuity offices, -yet, at this period, only three of any standing were -in existence, and the public had seen and suffered so -much from the failure of various joint stock companies, -that they regarded all new societies with a proper -degree of jealousy. At the time above named -there had been a speculative excitement in the money -market, followed by a disastrous panic. Many companies -had been compelled to wind up their business, -and others, having no business to wind up, had been -left to their fate. And of annuities granted by private -persons, the public had a well-founded horror; -for the persons who had chiefly granted them were -bankers, stock-jobbers, and mock millionnaires, who<span class="pagenum"><a id="Page_200">[200]</a></span> -had often been swept away by panics on the Stock -Exchange. In 1809 complaints were instituted that -persons wishing to make provision for themselves or -their families had no certain fund on which such -annuities could be secured, and the ministers were -made aware of many infamous practices which often -plunged whole families into ruin. The Government, -therefore, determined to become dealers in life annuities, -and in the very outset made a considerable and -almost fatal mistake. The tables of mortality known -as the Northampton were the chief basis on which -the various life assurance companies founded their -premiums; and, by a singular error, the state -adopted the same basis on which to grant annuities -for life; but as the most intelligent men of the day -were employed in calculating and constructing -tables, the Government was scarcely to blame, particularly -as they sought no profit, entering into the -undertaking solely from a consideration of its advantages -to the community.</p> - -<p>From 1809 to 1819 this system continued. The -speculators soon found out that the Government -charge for a life annuity afforded a very remunerative -investment, and the insurance offices made considerable -profit by purchasing and reselling them. -The Commissioners of Greenwich Hospital also<span class="pagenum"><a id="Page_201">[201]</a></span> -selected many of the most healthy of their pensioners, -and bought large annuities on them,—a -proceeding productive of as much profit to the commissioners -as of loss to the state. The mistake -made by Government in its calculations was no -secret. Actuaries and accountants were well aware -of it; and Mr. Moses Wing wrote to the chancellor, -informing him that the tables on which they were -granted were productive of great loss to the revenue. -The ordinary lassitude of Government was displayed -in the chancellor’s reply, that it was not expedient -to make any alteration, as “the compilation of new -tables would be attended with much difficulty.” Mr. -Wing then wrote again, showing that there was a -loss of 15 per cent. on some, and on others of 20 and -24 per cent.; and that on a transfer of 12,000,000<em>l.</em> -stock there was a loss of not less than 2,691,200<em>l.</em>, -and from this, the chancellor took refuge in a dignified -silence.</p> - -<p>In 1819 the attention of the authorities was again -drawn to the same fact. But vainly for many years -had they been informed that the public money was -wasted; that no capitalist in London would grant -annuities on the same terms; and that a serious loss -was incurred. Government servants, like kings, -can do no wrong, and the information was officially<span class="pagenum"><a id="Page_202">[202]</a></span> -pooh-poohed! Letters might be written, and the -receipt acknowledged; but the letters were shelved -with due determination not to recur to them in a -hurry. Among the assailants, however, was one -who was important as well as vigorous, and very -annoying questions were put in the House of Commons. -It was the day when large majorities answered -every unpleasant topic, and for a time the -querists were silenced. At last it was stated that -Mr. Finlaison had informed the Chancellor of the -Exchequer that Government was losing 8000<em>l.</em> per -month by its supineness, and “the patriots,”—so -miscalled because they were in opposition,—seized -on this important point to harass their opponents. -It was triumphantly replied that the bill had been -in operation since 1808, and was founded on the -Northampton bills of mortality. As Dr. Price passed -for an authority, and as a name goes a great way, -the patriots were dumb, until one of more mark -than the rest hinted that the value of life, as estimated -by a life assurance company for its own benefit, -and on which enormous profits had been made by -them, would be just as unfavourable to the granters -of life annuities; that the proportion of gain to the -office would be the proportion of loss to the Government. -The ministers shook their heads at this, and<span class="pagenum"><a id="Page_203">[203]</a></span> -required time to consider. The economical members -pressed their point, and urged an investigation. -Night after night they pursued their foes with clamour, -and day by day they reiterated their assertions -in the clubs. The reports and rumours which -were spreading in the financial world, and the assertions -which were everywhere made, were, indeed, -somewhat alarming. It was said that, according to -Mr. Finlaison’s report, 400,000<em>l.</em> a-year was being -lost; many, determined not to be outdone, asserted -100,000<em>l.</em> a-week was the lowest estimate; others, -that an insurance office had realised 60 per cent. by -dealing in them. Statements like these were so injurious -to the financial character of the Government, -that it was found necessary to stop them; and the -chancellor said that, as only 640,000<em>l.</em> had been -granted in the shape of life annuities, it was not very -likely we were losing 100,000<em>l.</em> weekly; that Mr. -Finlaison was employed in constructing tables; and -that, though this gentleman had certainly stated the -terms were too favourable, yet the true amount of -loss would be difficult to attain, Mr. Finlaison’s -estimate being an abstruse calculation as to the -amount of the National Debt which would be redeemed -in sixty years, compared with the amount -which would have been redeemed had no annuities<span class="pagenum"><a id="Page_204">[204]</a></span> -been granted. This he estimated at 3,200,000<em>l.</em> less -than would have been attained by the Sinking Fund. -At last, in 1829, Mr. Finlaison reported to the -House, and the tables in connexion were certainly -the most valuable of the kind then published. Access -had been given to every document bearing on -the subject. The registries of the tontines, the ages -attained by the lives on which annuities had been -granted a century previous—the experience of the -offices—procured a mass of information which was -turned to great advantage. The tables fill fifty folio -pages, and show the rates of mortality, the value of -annuities on single lives at all ages, among many -classes of annuitants, separate and combined; the -sexes being distinguished, both in exhibiting the law -of mortality and the value of annuities.</p> - -<p>These tables were satisfactory in the evidence they -gave of a material improvement in the average duration -of life. In forty years so great a change had -taken place in the condition of the people, that the -decrease of mortality was from 1 in 40 to 1 in 56. -They proved, also, to demonstration, the extraordinary -difference between the longevity of men and women, -a circumstance not hitherto known to a certainty, -but one which was most important to the granters of -annuities. The result of all these calculations was<span class="pagenum"><a id="Page_205">[205]</a></span> -comprised in the fact mentioned,—that the public, -at the end of thirty-five years, will be burthened -with a perpetual annuity of 96,000<em>l.</em>, owing to the -error so tardily rectified. We shall now see the -mode in which these errors were amended.</p> - -<p>There is something very provocative of mirth in -the economical movements of Government. They -had just been obliged to annul tables which had been -in operation for twenty years; they had been compelled -to acknowledge to the House that they had -been wasting the public money; they had employed -an actuary for ten years in procuring information on -which new tables could be constructed, and scarcely -had these been brought into operation than they found -they were again in error. While the new act was -preparing which was to enable the Government to -sell life annuities and annuities for certain terms of -years, the tables were shown to a gentleman in the -Bank of England, who at once declared that those -which were framed for lives above a certain age -were too low in price. It was replied that they -were taken from the experience of the assurance -offices, and that they represented the average value -of life at that period. “Yes!” was the reply, “but -if select lives are brought, what becomes of your -average?”</p> - -<p><span class="pagenum"><a id="Page_206">[206]</a></span></p> - -<p>The act was passed; and by the tables which it -authorized a man of ninety by paying 100<em>l.</em> would -receive for life an annuity of 62<em>l.</em> The first payment -commenced three months after the purchase, and if -the nominee lived one year and a quarter, the nominator -received back all the purchase money, so that -every half year the annuitant lived after this was -pure gain.<a id="FNanchor_18_18" href="#Footnote_18_18" class="fnanchor">[18]</a></p> - -<p>The shrewd gentlemen of the Stock Exchange -immediately saw and seized the advantage. Agents -were employed to seek out in Scotland and elsewhere -robust men of ninety years of age, to select -none but those who were free from the hard labour<span class="pagenum"><a id="Page_207">[207]</a></span> -which tells on advanced life, and to forward a list of -their names. The Marquis of Hertford, of unenviable -notoriety, added to his vast wealth by -choosing as nominees those who were remarkable for -high health; on two only, taking annuities of 2,600<em>l.</em> -Wherever a person was found at the age of ninety, -touched gently by the hand of time, he was sure to -be discovered by the agents of the money market, -the members of which speculated with, but scarcely -perilled their wealth on the lives of these men, on -such terms.</p> - -<p>The inhabitants of the rural districts of Scotland, -of Westmoreland, and of Cumberland, were surprised -by the sudden and extraordinary attention paid to -many of their aged members. If they were sick, -the surgeon attended them at the cost of some good -genius; and if they were poor, the comforts of life -were granted them. In one village the clergyman -was empowered to supply the wants of three old, -hale fishermen during the winter season, to the envy -of his sick and ailing parishioners. In another, -all the cottagers were rendered jealous by the incessant -watchful attention paid to a nonogenarian -by the magnate of the place. It was whispered -by the less favoured that he had been given -a home near the great house; that the cook had<span class="pagenum"><a id="Page_208">[208]</a></span> -orders to supply him with whatever was nice and -nourishing; that the laird had been heard to say -he took a great interest in his life, and that he -even allowed the doctor twenty-five golden guineas -a year, so long as he kept his ancient patient -alive.</p> - -<p>One man was chosen of above ninety who would -walk eight miles any day for 6<em>d.</em> The hills and -dales of the north of England, with the wild moors -and heaths of Scotland, peopled by those who never -breathed the air of cities, furnished nominees; and, -lest there should be any lurking disease, they were -examined by a medical man to confirm the appearance -they bore. There were several curious anecdotes -in connection with these shrewd speculations. -There were two baronets offered, illustrative of an -old story. Both were nonogenarians, both were -sound, wind and limb; the one was remarkable -for his extreme temperance, the other for drinking -two bottles of wine daily, but both first-rate -lives.</p> - -<p>The offices were besieged with contracts on such -men as these. Notwithstanding the heavy losses -which Government had sustained by the previous -tables, they lost much more by the present oversight, -for against lives chosen with so much care and<span class="pagenum"><a id="Page_209">[209]</a></span> -nursed with so much attention, there was not a -chance.</p> - -<p>One legend is extant to show the trouble which -the nominators would take, in order to procure a -person on which they could safely invest their -money.</p> - -<p>An eccentric, simple old man, an amateur angler -in the streams which adorn the dales of Cumberland -and Westmoreland, gave rise to the following attempt -to procure him:—This man, named John Wilson, -had not been born in the dales, but had come at an -early age to take his lot among the single-minded -people who dwell there. He had bought a small -farm, on the produce of which, tilled by his sons and -grandsons, he lived. He was soon found out by the -agents of the speculators; but for some reason, known -only to himself, refused to be speculated on, and as -the secret of his birthplace was confined to his own -breast, no register of his age could be procured -without his consent. At ninety he would have -passed for seventy. He would wander for whole -days with only his fishing-rod and basket among the -lakes and rivers of his adopted home. For a week -together he would be away from his dwelling, -lodging, when the night came, wherever he could -procure a bed. In vain was he tempted with presents<span class="pagenum"><a id="Page_210">[210]</a></span> -of fishing-rods; in vain the choicest London-made -fly was offered; he turned away with an air of -indifference and defied the temptation.</p> - -<p>There came to reside in the village, apparently on -account of his health, a young gentleman who took -John’s fancy, for he was fond of fishing and had never -asked the old man where he was born. To him he -showed his choicest retreats for casting the fly, told -him stories of wonderful throws he had made, and -wonderful fish he had caught, and pleasant were the -long summer days passed by these two in the deep -recesses of the hills, following the course of rivers, -and tracing streams to their rise. It never entered -into the old man’s thoughts, that one of those who -were interested in knowing his birthplace was becoming -a bosom friend. But so it was. The -invalid had only sought the neighbourhood for that -purpose, and when he had thoroughly gained his confidence, -he turned the conversation very cautiously -to the old man’s early history. The latter showed -no symptoms of anxiety, and the Londoner went yet -further: still there was no alarm apparent. But the -next question, which, if answered, would have settled -the point, was too abruptly put. The ancient angler -wheeled round, faced his companion sorrowfully, and -merely saying—“Eh! man, the ways of the world,<span class="pagenum"><a id="Page_211">[211]</a></span> -the ways of the world!” shouldered his rod, and disappeared -down a ravine close by, leaving his companion -to find his way home as best he could, and -far too much annoyed to remain any longer in the -neighbourhood where he had been so unsuccessful.</p> - -<p>When schemes like these were resorted to, and -this is only one of many<a id="FNanchor_19_19" href="#Footnote_19_19" class="fnanchor">[19]</a>, it is obvious that the expected -gain must have been great. One house alone -entered into contracts on the lives of men similar to -those described, for thousands, and the first to open a -contract was the Marquis of Hertford, whose attention -was probably drawn to the speculation by Mr. -Croker. Philip Courtenay, Queen’s Counsel and -Member for Bridgewater, was another. He availed -himself of his tour on the Northern Circuit to seek out -old and healthy lives. Just at this time the House of -Lords refused so resolutely to pass the Reform Bill, -that the monarch was expected to force them into -compliance. The mind of the people was greatly<span class="pagenum"><a id="Page_212">[212]</a></span> -excited; and, unable to account for Mr. Courtenay’s -avidity, a Yorkshire paper gravely asserted that -Earl Grey, being determined to carry the Reform -Bill, had employed the Member for Bridgewater to -choose a sufficient number of aged persons to receive -the honour of peerage, the prime minister being determined -to swamp the Upper House with nonogenarians -rather than fail in his purpose.</p> - -<p>One firm alone, that of Benjamin and Mark Boyd -of the Stock Exchange, took three-fourths of the -entire contracts for their friends; and as the lives -chosen by them were good, it is probable that their -constituents averaged a profit of 100 per cent. The -desire to speculate on nonogenarian lives soon became -a mania. Barristers with a few thousands,—ladies -with a small capital,—noblemen with cash at -their bankers, availed themselves of the mistake. It -is difficult to say to what extent it would have proceeded, -had not Mr. Goulburn availed himself of a -clause in the act, to cease granting annuities which -might prove unfavourable to government.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_213">[213]</a></span></p> - - - - -<h2>CHAP. XIII.</h2> - -<p class="chapter-subheading">FRAUD IN LIFE ASSURANCE COMPANIES—ITS EXTENT—ITS REMARKABLE -AND ROMANTIC CHARACTER.—JANUS WEATHERCOCK.—HELEN -ABERCROMBIE—HER DEATH.—FORGERY OF WAINWRIGHT—HIS -ABSENCE FROM ENGLAND—HIS RETURN, CAPTURE, -AND DEATH.—INDEPENDENT AND WEST MIDDLESEX—ITS RISE, -PROGRESS, AND RUIN OF ALL CONCERNED.</p> - - -<p>In 1830, two ladies, both young and both attractive, -were in the habit of visiting various offices, with -proposals to insure the life of the younger and unmarried -one. The visits of these persons became at -last a somewhat pleasing feature in the monotony of -business, and were often made a topic of conversation. -No sooner was a policy effected with one company -than a visit was paid to another, with the same purpose. -From the Hope to the Provident, from the -Alliance to the Pelican, and from the Eagle to the -Imperial, did these strange visitors pass almost daily. -Surprise was naturally excited at two of the gentler -sex appearing so often alone in places of business -resort, and it was a nine days’ wonder.</p> - -<p>Behind the curtain, and rarely appearing as an -actor, was one who, to the literary reader versed in<span class="pagenum"><a id="Page_214">[214]</a></span> -the periodical productions of thirty years ago, will -be familiar under the name of Janus Weathercock; -while to the student of our criminal annals, a name -will be recalled which is only to be remembered as -an omen of evil. The former will be reminded of -the “London Magazine,” when Elia and Barry -Cornwall were conspicuous in its pages, and where -Hazlitt, with Allan Cunningham, added to its attractions. -But with these names it will recall to them -also the face and form of one with the craft and -beauty of the serpent; of one too who, if he broke -not into “the bloody house of life,” has been singularly -wronged. The writings of this man in the -above periodical were very characteristic of his -nature; and under the <i lang="fr" xml:lang="fr">nom de guerre</i> of Janus Weathercock, -Thomas Griffith Wainwright wrote with -a fluent pleasant egotistical coxcombry, which was -then new to English literature, a series of papers on -art and artists. An <i lang="fr" xml:lang="fr">habitué</i> of the opera and a fastidious -critic of the <i lang="fr" xml:lang="fr">ballet</i>, a mover among the most -fashionable crowds into which he could make his -way, a lounger in the parks and the foremost among -the visitors at our pictorial exhibitions, the fine -person and superfine manners of Wainwright were -ever prominent. The articles which he penned for -the “London,” were lovingly illustrative of self and<span class="pagenum"><a id="Page_215">[215]</a></span> -its enjoyments. He adorned his writings with descriptions -of his appearance, and—an artist of no -mean ability himself—sketched boldly and graphically -“drawings of female beauty, in which the -voluptuous trembled on the borders of the indelicate;” -and while he idolised his own, he depreciated -the productions of others. This self-styled fashionist -appears to have created a sensation in the circle -where he adventured. His good-natured, though -“pretentious” manner; his handsome, though sinister -countenance; even his braided surtout, his gay attire, -and semi-military aspect, made him a favourite. -“Kind, light-hearted Janus Weathercock,” wrote -Charles Lamb. No one knew anything of his -previous life. He was said to have been in the army—it -was whispered that he had spent more than one -fortune; and an air of mystery, which he well knew -how to assume, magnified him into a hero. About -1825, he ceased to contribute to the magazine; and -from this period, the man whose writings were replete -with an intense luxurious enjoyment—whose -organisation was so exquisite, that his love of the -beautiful became a passion, and whose mind was a -significant union of the ideal with the voluptuous—was -dogged in his footsteps by death. It was death -to stand in his path—it was death to be his friend<span class="pagenum"><a id="Page_216">[216]</a></span>—it -was death to occupy the very house with him. -Well might his associates join in that portion of our -litany which prays to be delivered “from battle, from -murder, and from <em>sudden death</em>,” for sudden death -was ever by his side.</p> - -<p>In 1829, Wainwright went with his wife to visit -his uncle, by whose bounty he had been educated, -and from whom he had expectancies. His uncle died -after a brief illness, and Wainwright inherited his -property. Nor was he long in expending it. A -further supply was needed; and Helen Frances -Phœbe Abercrombie, with her sister Madeline, step-sisters -to his wife, came to reside with Wainwright; -it being soon after this that those extraordinary -visits were made at the various life offices, to which -allusion has been made.</p> - -<p>On 28th March, 1830, Mrs. Wainwright, with -her step-sister, made their first appearance at an -insurance office, the Palladium; and by the 20th -April a policy was opened on the life of Helen -Frances Phœbe Abercrombie, a “buxom handsome -girl of one-and-twenty,” for 3000<em>l.</em>, for three years -only. About the same time a further premium was -paid for an insurance with another office, also for -3000<em>l.</em>, but for only two years. The Provident, the -Pelican, the Hope, the Imperial, were soon similarly<span class="pagenum"><a id="Page_217">[217]</a></span> -favoured; and in six months from granting the first -policy, 12,000<em>l.</em> more had been insured on the life of -the same person, and still for only two years.<a id="FNanchor_20_20" href="#Footnote_20_20" class="fnanchor">[20]</a> But -18,000<em>l.</em> was not enough for “kind light-hearted -Janus Weathercock;” 2000<em>l.</em> more was proposed to -the Eagle, 5000<em>l.</em> to the Globe, and 5000<em>l.</em> to the -Alliance; all of whom, however, had learned wisdom. -At the Globe Miss Abercrombie professed scarcely -to know why she insured; telling a palpable and -foolish falsehood, by saying that she had applied to -no other office. At the Alliance, the secretary took -her to a private room, asking such pertinent and close -questions, that she grew irritated, and said she supposed<span class="pagenum"><a id="Page_218">[218]</a></span> -her health, and not her reasons for insuring, -was most important. Mr. Hamilton then gave her -the outline of a case in which a young lady had met -with a violent death for the sake of the insurance -money. “There is no one,” she said in reply, -“likely to murder me for the sake of my money.” -No more insurances, however, being accepted, the -visits which had so often relieved the tedium of official -routine ceased to be paid. These applications -being unsuccessful, there remained 18,000<em>l.</em> dependent -on the life of Helen Abercrombie.</p> - -<p>In the mean time Wainwright’s affairs waxed -desperate, and the man grew familiar with crime. -Some stock had been vested in the names of trustees -in the books of the Bank of England, the interest only -of which was receivable by himself and his wife; and -determined to possess part of the principal, he imitated -the names of the trustees to a power of attorney. -This was too successful not to be improved on, and -five successive similar deeds, forged by Wainwright, -proved his utter disregard to moral restraint. But -this money was soon spent, till everything which he -possessed, to the very furniture of his house, became -pledged; and he took furnished apartments in Conduit -Street for himself, his wife, and his sisters-in-law. -Immediately after this, Miss Abercrombie, on<span class="pagenum"><a id="Page_219">[219]</a></span> -pretence or plea that she was going abroad, made her -will in favour of her sister Madeline, appointing -Wainwright sole executor, by which, in the event of -her death, he would have the entire control of all she -might leave.</p> - -<p>She then procured a form of assignment from the -Palladium, and made over the policy in that office to -her brother-in-law. Whether she really meant to -travel or not is uncertain; it is possible, however, -that this might have been part of the plan, and that -Wainwright hoped, with forged papers and documents, -to prove her demise while she was still living, -for it is difficult to comprehend why she should have -voluntarily stated she was going abroad, unless she -really meant to do so. In this there is a gleam of -light on Wainwright’s character, who, when he first -insured the life of Miss Abercrombie, might have -meant to treat the offices with a “fraudulent,” and -not a positive death. Whatever her <i lang="fr" xml:lang="fr">rôle</i> in this tragic -drama, however, it was soon played. On the night -which followed the assignment of her policy, she went -with her brother and sister-in-law to the theatre. -The evening proved wet; but they walked home -together, and partook of lobsters or oysters and -porter for supper. That night she was taken ill. -In a day or two Dr. Locock attended her. He<span class="pagenum"><a id="Page_220">[220]</a></span> -attributed the indisposition to a mere stomach derangement, -and gave some simple remedies, no -serious apprehension being entertained by him.</p> - -<p>On the 14th December, she had completed her -will, and assigned her property. On the 21st she -died. On that day she had partaken of a powder, -which Dr. Locock did not remember prescribing; -and when Mr. and Mrs. Wainwright—who had -left her with the intention of taking a long walk—returned, -they found that she was dead. The body -was examined; but there was no reason to attribute -the death to any other cause than pressure on the -brain, which obviously produced it.</p> - -<p>Mr. Wainwright was now in a position to demand -18,000<em>l.</em> from the various offices, but the claim -was resisted; and being called on to prove an insurable -interest, he left England. In 1835, he commenced -an action against the Imperial. The reason -for resisting payment was the alleged ground of deception; -but the counsel went further; and so fearful -were the allegations on which he rested his defence, -that the jury were almost petrified, and the judge -shrunk aghast from the implicated crime. The former -separated unable to agree; while the latter said, a -criminal, and not a civil court should have been the -theatre of such a charge. In the following December,<span class="pagenum"><a id="Page_221">[221]</a></span> -the company gained a verdict; and as the forgery on -the Bank of England had been discovered, Wainwright, -afraid of apprehension, remained in France. -Here his adventures are unknown. At Boulogne, -he lived with an English officer; and while he resided -there, his host’s life was insured by him in the Pelican -for 5000<em>l.</em> One premium only was paid, the -officer dying in a few months after the insurance was -effected. Wainwright then left Boulogne, passed -through France under a feigned name, was apprehended -by the French police; and that fearful poison -known as strychnine being found in his possession, -he was confined at Paris for six months.</p> - -<p>After his release he ventured to London, intending -to remain only forty-eight hours. In an hotel -near Covent Garden he drew down the blind and -fancied himself safe. But for one fatal moment he -forgot his habitual craft. A noise in the streets -startled him: incautiously he went to the window -and drew back the blind. At the very moment “a -person passing by” caught a glimpse of his countenance, -and exclaimed, “That’s Wainwright, the -Bank forger.” Immediate information was given to -Forrester; he was soon apprehended, and his position -became fearful enough.</p> - -<p>The difficulty which then arose was, whether the<span class="pagenum"><a id="Page_222">[222]</a></span> -insurance offices should prosecute him for attempted -fraud, whether the yet more terrible charge in connection -with Helen Abercrombie should be opened, -or whether advantage should be taken of his forgery -on the Bank, to procure his expatriation for life. -A consultation was held by those interested, the -Home Secretary was apprised of the question, the -opinions of the law officers of the crown were taken, -and the result was that, under the circumstances, -it would be advisable to try him for the forgery -only. This plan was carried out, the capital punishment -was foregone, and when found guilty he was -condemned to transportation for life.</p> - -<p>His vanity never forsook him. Even in Newgate -he maintained his exquisite assumption, triumphing -over his companions by virtue of his crime. “They -think I am here for 10,000<em>l.</em>, and they respect me,” -he wrote to one of his friends, who would not desert -him. He pointed the attention of another to the -fact, that while the remaining convicts were compelled -to sweep the yard, he was exempted from the -degrading task. Even here his superfine dandyism -stuck to him. Drawing down his dirty wristbands -with an ineffable air of coxcombry, he exclaimed, -“They are convicts like me, but no one dare offer -me the broom.”</p> - -<p><span class="pagenum"><a id="Page_223">[223]</a></span></p> - -<p>But bad as this might be for such a man, he -brought yet harsher treatment on his head. As, previously -to Helen Abercrombie’s death, she had made -her will in favour of her sister, the claim of the -latter was placed before the various offices in which -the life had been insured. While this was pending, -Wainwright, thinking that if he could save -the directors from paying such large sums, they -would gratefully interfere for the alleviation of his -misery, wrote a letter giving them certain information, -coupled with a request or condition that they -should procure a mitigation of punishment. What -this revelation was may be judged from the united -facts, that it saved the offices from paying the -policies, and that when they communicated it to the -Secretary of State, an order was immediately sent -to place him in irons, and to forward him instantly -to the convict ship. If his position were bad before, -it was worse now; and he whose luxury a rose leaf -would have ruffled, and whose nerves were so delicately -attuned that a harsh note would jar them, -must have been fearfully situated. He had played -his last card, and he had lost. When he wrote -from Newgate he had claimed for himself “a soul -whose nutriment was love, and its offspring art, -music, divine song, and still holier philosophy.” In<span class="pagenum"><a id="Page_224">[224]</a></span> -the convict ship he shrunk from the companionship -of the men with whom he was associated, and his -pride revolted from being placed in irons without distinction, -like them. “They think me a desperado! -Me! the companion of poets, philosophers, artists, -and musicians, a desperado! You will smile at this—no, -I think you will feel for the man, educated -and reared as a gentleman, now the mate of vulgar -ruffians and country bumpkins.”</p> - -<p>It is evident there was no change in him. He -was just as much a selfish, coxcombical charlatan as -when, fifteen years before, he wrote in one of his -art papers of “exchanging our smart, tight-waisted, -stiff-collared coat for an easy chintz gown with pink -ribbons;” when he touched so lightly but luxuriantly -on “our muse or maid-servant, a good-natured -Venetian-shaped girl,” and of “our complacent consideration -of our rather elegant figure, as seen in a -large glass placed opposite our chimney mirror.” -Others might be ashamed of self-idolatry; he gloried -in it. Such was his description of himself; and who -that has read it will ever forget that other description -of him as exemplified by Gabriel Varney? -“Pale, abject, cowering, all the bravery rent from -his garb, all the gay insolence vanished from his -brow, can that hollow-eyed, haggard wretch, be the<span class="pagenum"><a id="Page_225">[225]</a></span> -same man whose senses opened on every joy, whose -nerves mocked at every peril?”<a id="FNanchor_21_21" href="#Footnote_21_21" class="fnanchor">[21]</a></p> - -<p>The career of Wainwright is instructive. From -the time that he quitted the simple rule of right, he -wandered over the world under influences too fearful -to detail, and he died in a hospital at Sydney -under circumstances too painful to be recapitulated.</p> - -<p>From 1825 to 1835, there was a huge outcry -against all the new offices, principally, however, -raised by the old companies, who seemed to claim -a patent right of preservation. They forgot that -competition is the very soul of business, and mourned -greatly as every new office made its appearance, -although by 1835 only fourteen more were established. -The following fraud was held in the light -of a providence, and has long been quoted by them, -though few are aware of the many remarkable circumstances -in connection with the infamous “Independent -and West Middlesex:”—</p> - -<p>An old man, between sixty and seventy, ignorant, -uneducated, and in want; who had been at one time -a smuggler, and at another a journeyman shoemaker, -thought, in the year 1836, that the best mode of -supplying his necessities would be to open an office<span class="pagenum"><a id="Page_226">[226]</a></span> -for the receipt of moneys in exchange for the sale of -annuities. The plan was notable, but required assistance, -and a coadjutor worthy his friendship was -soon found in one William Hole, a tallow-chandler, -a smuggler, a footman, and a bankrupt. These -friends at once confederated together, and found no -great difficulty in their way. The chief capital -demanded by such an undertaking on the part of -the proprietor, was unbounded impudence; and on -that of the public, unbounded credulity. Having -joined their purses to produce a prospectus, and -having taken an office in what Theodore Hooke -called “the respectable neighbourhood” of Baker -Street, Portman Square, their next plan was to -concoct a directory of gentlemen who, while they -attracted public attention and seemed a pledge for -the respectability of the company, should yet mislead -those who were not familiar with the financial world. -This was an easy task, and in due time the most -honourable names in London were openly published -as managers of the “<span class="smcap">Independent and West -Middlesex Fire and Life Insurance Company</span>.” -Trusting to the faith of people in great -mercantile firms, there was scarcely a banker, a -brewer, or a merchant whose patronymic, with different -initials, was not used by these ex-smugglers -to forward their views. Drummonds, Perkins,<span class="pagenum"><a id="Page_227">[227]</a></span> -Smith, Price, and Lloyd were all produced as fancy -directors, to adorn one of the most impudent prospectuses -which was ever composed. They then -turned their attention to the working men of the -establishment, and Mr. Hole having a brother-in-law -named Taylor<a id="FNanchor_22_22" href="#Footnote_22_22" class="fnanchor">[22]</a>, sufficiently respectable to be a journeyman -bell-hanger, sought him out, saying “he -was going to make a gentleman of him,” undertaking -to pay him 100 guineas yearly, provided he attended -the board when it was required, and did not “get -drunk or behave disorderly.” Finding some difficulty -in procuring a sufficient number, and being -applied to by a William Wilson for a menial situation, -they at once advanced him to the post of -director, paying the liberal sum of five shillings -weekly. A boy of sixteen, who went on errands, -who signed annuity deeds for thousands, or who -swept the floors, was also appointed to a similar post; -while the gentleman who undertook the onerous -position of auditor, was also porter in general to this -respectable establishment. On board days they were -told to dress in their “Sunday’s best,” to place -brooches in their dirty shirts, and rings on their -clumsy fingers; the huge fine of half-a-crown being<span class="pagenum"><a id="Page_228">[228]</a></span> -inflicted, should they appear in the native simplicity -of their work-a-day attire; and it is no unremarkable -feature of this establishment, that Taylor duly, on -board days, left his master the bell-hanger to go to -his master the director, to sign the deeds which -duped the public. Their next requirement was a -banker; and none other was good enough save the -Bank of England, which was added to the list of -attractions of this commercial bill of the play.</p> - -<p>Everything thus prepared, they turned their attention -to statistics; and here again there was no great -obstacle. In order to procure business, it was necessary -to offer tempting terms, so they liberally proposed -to serve the public 30 per cent. lower than -any other office, although with all the existing competition -the greatest difference hitherto had been -but from 1 to <span class="nowrap">1 <span class="fnum">1</span>/<span class="fden">2</span></span> per cent.; and in addition to this, -these bad men committed the glaring impudence of -granting life assurances for much smaller premiums, -and selling annuities on much lower terms than any -one else; terms so palpably wrong that a man of -30 by paying 1000<em>l.</em> could obtain a life annuity of -80<em>l.</em>, and by paying 17<em>l.</em> 10<em>s.</em> of this to insure his -life, could receive <span class="nowrap">6 <span class="fnum">1</span>/<span class="fden">4</span></span> per cent. for his money and -secure his capital to his successors.<a id="FNanchor_23_23" href="#Footnote_23_23" class="fnanchor">[23]</a></p> -<p><span class="pagenum"><a id="Page_229">[229]</a></span></p> -<p>Having thus arranged preliminaries, they opened -their office and commenced business. They had the -precaution to select respectable agents, and by giving -25 per cent. where other companies only gave 5 per -cent., stimulated them to say all they could in their -favour. The terms were very attractive; there is -always a large ignorant class ready and willing to be -duped; and the business went on swimmingly. If a -man wanted to insure his life, there was no great -difficulty about his health. If another wished to -purchase an annuity, they were quite willing to dispense -with baptismal certificates in London, Dublin, -Edinburgh, and Glasgow; large and handsome -offices were opened, and the public induced to play -its part in this most serious drama of real life. The -poor and less intelligent portion of the community, -lured by terms which had never before tempted -them, took their spare cash and invested it in the -West Middlesex. Rich men were not less dazzled -by the golden promises; and one, disposed to sink a -large sum in so profitable a concern, desired his -solicitor to inquire about its solidity. The solicitor -went to the manager, and questioned him as to -the directors and the capital. Knowles at once said -the directors were not the men whose names they<span class="pagenum"><a id="Page_230">[230]</a></span> -took, nor was the capital so much as a million. -But the former, he vowed, were respectable men, and -the latter was quite enough for their purpose. As, -however, he declined to give the residences of the -directors, or to say where the capital was invested, -the solicitor also declined to risk the money of his -client. The success, however, which they experienced -in other cases, justified their daring. One -person who had toiled, and worked, and grown prematurely -old in the service of Mammon, invested his -all in the purchase of an annuity, and in order to -secure the capital, insured his life. In two years he -was a beggar. A family which with great industry, -and by doing without a servant for forty years, had -saved enough to retire from business, placed the -principal portion with the West Middlesex, in time -to be informed that the directors had absconded. -A governess who had been left a small property, -and bought a deferred annuity with the proceeds, -died of a low fever soon after the bubble burst. -Half-pay captains, clergymen, servants, tradesmen, -all came with their spare cash to get <span class="nowrap">6 <span class="fnum">1</span>/<span class="fden">4</span></span> per cent. -and secure their capital.</p> - -<p>From remote districts where their prospectuses -had been circulated, money came pouring in. Any -one who chooses to refer to the current literature of<span class="pagenum"><a id="Page_231">[231]</a></span> -that time, will perceive that these fellows availed -themselves of every vehicle to make their claims -public. The daily and weekly papers, the monthly -and quarterly journals, all bear testimony to their -zeal in the shape of shameless advertisements, and -the walls of provincial towns absolutely blazed with -their attractive terms.</p> - -<p>The money thus obtained was liberally spent. -The promoters kept carriage-horses and saddle-horses; -servants in gorgeous liveries waited on -them; they fared, like Dives, sumptuously every -day. One of the directors lived in the house in -Baker Street, and being of a convivial character, -astonished that quiet street with gay parties, lighted -rooms, musical <i lang="fr" xml:lang="fr">soirées</i>, and expensive dinners. His -wine was rare and <i lang="fr" xml:lang="fr">recherché</i>, his cook was sufficiently -good for his guests, and he found himself surrounded -by the first people of this lively locality. -But there were very dark rumours afloat, which -should have made men hesitate before they gave -this fellow their countenance. By 1839, there was a -general feeling that there was something wrong; -Mr. Barber Beaumont wrote a letter to the “Times” -about it; and had it not been for the wonderful -boldness of the adventurers, they must have broken<span class="pagenum"><a id="Page_232">[232]</a></span> -up long before. It was known that they had -thrown a difficulty in the way of paying some annuities -in the country; and that, without any justice, -they had refused to discharge a fire insurance which -had become due. Still what is every one’s business -is nobody’s business, and they had hedged themselves -with such a conventional respectability, they looked -so grave, they talked so properly, and they gave -such good dinners, that it was long before they were -compelled to yield. So great was their <i lang="fr" xml:lang="fr">prestige</i>, that -though one of their victims came fierce and furious, -and bearded them in their own house, and before the -very faces of their friends—though he told the party -assembled that he was swindled, and their hosts were -the swindlers,—it produced no effect, and he was -absolutely obliged to leave the place for fear of personal -violence. In addition to the dinners which -they gave their friends, they had small pleasant -parties of their own, with toasts sardonically applicable -to themselves, the first standing sentiment -being in mocking, reckless contempt,—</p> - -<div class="poetry-container"> -<div class="poetry"> -<div class="stanza"> -<div class="indentquotebase">“An honest man’s the noblest work of God!”</div> -</div></div></div> - -<p>The unpleasant rumours continuing to spread very -rapidly, it became desirable to procure a director -with something like respectability attached to his<span class="pagenum"><a id="Page_233">[233]</a></span> -name; so Mr. Knowles wrote to Sir John Rae Reid, -Governor of the Bank of England, stating, that as -he was a native of Dover he could assist Sir John -with his constituents, provided that gentleman would -give his name as director to the falling establishment. -The only reply was a contemptuous refusal, -and an unceremonious request that Mr. Knowles -would withdraw the accounts of the West Middlesex -from the custody of the Bank.</p> - -<p>In the mean time the established institutions -looked on in wonder, asking themselves when this -bold violation of probity would cease. It was certain -that, so long as the new office could procure -money from the public, they would continue to do -so. There was no law, indeed, which could touch -them; and when some of their victims hesitated at -continuing their payments, the following specious -letter was written by the agent whom the gang at -Baker Street had found means to blind:—</p> - -<p>“I have been to London purposely to examine -the affairs of this society, and I can assure you the -reports issued against them are wholly without -foundation; the principal part of them are gentlemen -living on their own property. The following is -the result of my investigation, which must surely -satisfy the mind of any person as to their respectability:—63,000<em>l.</em><span class="pagenum"><a id="Page_234">[234]</a></span> -in the Bank of England to meet -emergencies; 160,000<em>l.</em> on mortgage property in -London, at 7 per cent. and 8 per cent.; 40,000<em>l.</em> on -reversionary property; 120,000<em>l.</em> on different funded -securities; 3000<em>l.</em> in the Bank of Scotland; 30,000<em>l.</em> -on mortgage security in that country; 3000<em>l.</em> in the -Bank of Ireland; 10,000<em>l.</em> on landed security in that -country; and their paid-up capital is 375,000<em>l.</em>”</p> - -<p>But even this brilliant array of securities failed at -last in its effect, and it was left to the shrewdness -and daring of a Scottish gentleman to encounter -single-handed, this most unprincipled combination. -Among those who had entered into transactions with -the Glasgow branch was Mr. Peter Mackenzie, -editor of the “Scottish Reformers’ Gazette,” whose -attention became naturally drawn to a question -which involved the happiness or misery of a great -number of his countrymen; and as the opinion of Sir -John Reid had been very mendaciously quoted in -favour of the West Middlesex, Mr. Mackenzie -addressed him to ascertain the truth of this assertion; -in reply to which the Governor of the Bank stated, -“I know nothing of the parties in question, and I -consider it highly improper that any reference should -be made to me on the subject.” This was decided -enough; and as Mr. Mackenzie was doubtful whether<span class="pagenum"><a id="Page_235">[235]</a></span> -the Independent and West Middlesex had not grown -out of a similar company under another name, which -had advertised the duke of Wellington as a patron, -he wrote to his grace, receiving the straightforward -reply, “that the duke did not doubt a gang of -swindlers had advertised his name as patron, that -the same or another gang had played a similar trick -in Southwark, and that Mr. Mackenzie was authorised -to state to the public that the duke had not -sanctioned the publication of his name in that or any -other similar association.”</p> - -<p>Although the company had so long a list of -directors, Mr. Mackenzie observed that the policies -were always signed by the same three individuals, -that no designations or addresses were annexed to -the names, and that there was an accumulation of -functions in the respective office-bearers, quite unusual. -He then determined, believing that the company -was radically wrong, to discharge his duties at -all risks. And most manfully did he perform that -determination. In March, 1839, under the head of -“<span class="smcap">Exposure</span>,”<a id="FNanchor_24_24" href="#Footnote_24_24" class="fnanchor">[24]</a> he inserted an article in his “Re<span class="pagenum"><a id="Page_236">[236]</a></span>formers’ -Gazette;” and it is hardly possible to exaggerate -the sensation which the exposure produced in -Glasgow. Men of all parties congratulated him on -his fearless attack; the people who were assured in the -West Middlesex ran wildly to the office, where they<span class="pagenum"><a id="Page_237">[237]</a></span> -were told, “that the reasonableness and moderation -with which they had done business had been the -cause of great jealousy and offence, and had brought -down on them a variety of assertions of the most -false, calumnious, and slanderous character.”</p> - -<p>They threatened Mr. Mackenzie with the terror -of the law; but on the 9th March that gentleman -again attacked them, asking, “Will the mere statement -of a parcel of swindlers in their own favour -secure for them public confidence, when it has been -directly and specially assailed?”</p> - -<p>The more they were attacked, however, the more -they advertised. All the London and provincial -papers were employed to spread their terms, and -2000<em>l.</em> were placed in the hands of their law agent to -ruin, if possible, Mr. Peter Mackenzie. Undauntedly, -however, did he continue week after week to -attack them; and it is impossible not to admire the -mingled gallantry and audacity with which they defended -outpost and citadel. Though they lost one -action they had brought against Mr. Mackenzie, they -commenced another, declaring that their terms were -fair and liberal, that the public could insure with -them at favourable rates to themselves and reasonable -profit to the company, “and, above all, that Mr. -Mackenzie was false, calumnious, and slanderous.”</p> - -<p><span class="pagenum"><a id="Page_238">[238]</a></span></p> - -<p>The position in which they were placed was curious -enough. It was plain that a most disgraceful -fraud was in existence; but while no act of insolvency -was committed, the law could not interfere. -There was, indeed, no way of stopping them; and it -was evident that they would only cease business -when the public ceased to pay its money. While -they discharged the annuities as they became due, -and paid the life or fire policies which fell in, they -were utterly uncontrollable, save by the moral power -of the press. This power, so far as Mr. Mackenzie -was concerned, was most unsparingly used; but he -availed himself of another weapon. The name of -Peter Mackenzie is rarely mentioned in England in -connection with this company, that of Sir Peter -Laurie and the West Middlesex being always associated; -and this is owing to the fact that, not content -with the powerful articles in his paper, he sent -a letter, with the report of the trial, to Sir Peter, to -inform him that “the company called the West Middlesex -was a company of swindlers,” begging him to -use his influence as chief magistrate of the city of -London, to stop this crying iniquity. Sir Peter -went to the Bank of England, and inquired if they -knew anything of the company. “Yes,” was the -reply, “they are the greatest swindlers that ever<span class="pagenum"><a id="Page_239">[239]</a></span> -existed in London.” “On this hint he spake;” and -from his seat at the Mansion House the “first Scotch -Lord Mayor” let all England know that the Independent -and West Middlesex Insurance Company -was a sham, and that Sir Peter was going to put it -down. The declarations he openly made, and the -information he procured, produced an enormous -number of letters from the victims. The company -became a theme of public conversation—the assurance -offices rejoiced at the discovery of their rival’s -infamy—and those who were insured were rudely -startled from their dream of security.</p> - -<p>In the mean time, Mr. Mackenzie pressed them -closely in Glasgow. He defied them and the damages -they sought to obtain. There was no word -too bad to give them—no assertion which had its -foundation in truth, which he was not bold enough to -publish. Actions involving damages to the extent of -20,000<em>l.</em> were brought against him in vain—he was -indomitable in determination and invincible in spirit. -Week after week he poured forth the vials of his -wrath; and it is scarcely possible to say how much -longer he must have continued his attacks, had not -intestine strife assisted his endeavours. The worthy -Mr. Knowles and the excellent Mr. Hole quarrelled,<span class="pagenum"><a id="Page_240">[240]</a></span> -and the latter wrote the following elegant epistle to -his coadjutor:—</p> - -<blockquote> - -<p> -“<span class="smcap">Knowles</span>,—<br /> -</p> - -<p>“Thou art a scoundrel, and thy son no better. I -shall print and publish all the by-laws and proceedings -which relate to any transactions which I had -with the company, and expose your villainy to Mackenzie -and others; and I give you and your lying -rascal of a —— notice, that if you or he should dare -to publish any slander relative to my character, I -shall instruct my solicitor to prosecute you, you d—d -perjured scoundrel!—you base wretch! Swear -against your own hand-writing! What! swear you -never borrowed any money of me for the office! -O wicked wretch! I have your signature, and -my solicitor has seen it. Base! base! base! Hang -thyself, with thy friend Williams.</p> - -<p class="marginrightindent2"> -“Truth,</p> - -<p class="marginrightindent">“<span class="smcap">William Hole</span>.” -</p></blockquote> - -<p>Another letter of this gentleman concluded in the -following manner:—“Whoever said I had more -than this is a liar; and like unto Peter, who denied -his Master, and afterwards went and wept; or, like -unto Judas, who betrayed his Master, and went<span class="pagenum"><a id="Page_241">[241]</a></span> -afterwards and hanged himself. All that I have -said or written I can prove.”</p> - -<p>By this time it became pretty clear that the career -of the Independent and West Middlesex was run; -the valuables were removed from Baker Street; two -waggons were necessary to remove the wine only; -and the bubble burst. The loss sustained by the -public is difficult to estimate. The confederates -boasted of taking 40,000<em>l.</em> in one year; and it is -probable that from 200,000<em>l.</em> to 250,000<em>l.</em> is no exaggeration. -But whatever the pecuniary loss, the -moral effect was much worse. It would be impossible -to enumerate the examples of sorrow and suffering -which ensued; yet it is equally painful to think -that the cause of insurance was considerably injured. -Some degree of blame rests with the other offices. -They knew—they could even have demonstrated—that -an institution charging such low premiums on -assurances, and allowing such large sums as annuities, -must fail; that it was a mathematical impossibility -that it would answer; and when they found, in -addition, that Hole offered their agents half the -year’s premiums as commission, it was a “confirmation -strong as proof of Holy Writ.” Had they applied, -like Mr. Mackenzie, to the Lord Mayor, it would -have been stopped in its outset, and many excellent<span class="pagenum"><a id="Page_242">[242]</a></span> -people saved from ruin. Had he not opened the -eyes of the public, there is no saying to what extent -they might have carried their transactions; for -though Sir Peter Laurie indisputably aided him, it -is equally true that Mr. Mackenzie lost 1300<em>l.</em> by his -exposure of the “Independent and West Middlesex -Life and Fire Insurance Company.”</p> - -<p>The death of Mr. Beaumont, in 1841, recalls the -name of one who, for nearly half a century, was a -very noticeable man. But though for the last thirty -years of his life he controlled the movements of a -large fire and life assurance office, he was not rendered -narrow-minded by his devotion to business; -nor will a brief review of his career be unacceptable -to those who remember his name as one of the -earliest apostles of life assurance.</p> - -<p>John Thomas Barber Beaumont, more familiarly -known as Barber Beaumont, was born in 1773. As -a youth he was devoted to historic painting, the -talent which he evinced being recognised both by -the Royal Academy and by the Society of Arts, -from each of which he won the medals awarded to -excellence in their several departments. He soon, -however, abandoned historical for miniature painting, -where again his ability was acknowledged by his -appointment to the post of portrait painter to the<span class="pagenum"><a id="Page_243">[243]</a></span> -dukes of York and Kent. His connection with -royalty probably stimulated him to raise a rifle corps -in defence of England, when the first Bonaparte -threatened invasion. Like all which he undertook, -he gave his heart and soul to it. He published a -couple of pamphlets, the first “by Captain Barber,” -and the second anonymously. He recommended -that the people should be armed as sharpshooters -and pikemen, and pointed out the special advantage -of the invaded over the invaders; and so devoted -was he to the cause, that he established a paper—the -“Weekly Register”—to stimulate the exertions -of others by recording his own. The corps of which -he was captain became an evidence of his personal -zeal. In a trial of skill between the various regiments -he won the first prize; and so satisfied was -he of the efficiency of his men that, on one occasion, -in Hyde Park, he held the target while the entire -corps, one after the other, discharged their rifles into -the bull’s eye at the distance of 150 yards. In his -hatred of the French emperor, in his love of boxing, -and his belief in Queen Caroline, he was a “distinguished -Englishman.” These were three articles of -faith of that day, and he believed in all.</p> - -<p>In 1806, Mr. Beaumont found his true vocation; -and the active spirit which had distinguished itself<span class="pagenum"><a id="Page_244">[244]</a></span> -in painting and in defending his country, in abusing -Bonaparte and lauding our “injured Queen,” turned -its attention to the poor. In conjunction with the -County Fire and Provident Life Offices, he attempted -to establish an association for the working man. -Though this did not succeed, it was not for want of -devotion. In every part of the country, agents explained -its benefits. Many thousand pamphlets were -distributed, but the artisan and labourer could not be -induced to join it.</p> - -<p>The mind of this class was less cultivated and less -cared for then than now, and wherever they got high -wages, they spent them recklessly. They regarded -the workhouse as their natural refuge, and claimed -its privileges as their inalienable birthright. We -owe the presentation of many facts concerning -them to Mr. Beaumont, who after ten years’ trial, -finding that his association failed in its purpose, interested -the inhabitants of Covent Garden and the -neighbourhood, in the establishment of a savings -bank. To compass this he presided at various public -meetings, where he spoke with much energy, addressing -the poorer class in an easy familiar tone, and -speaking to them as only one who understood their -wants could have spoken. He necessarily won their -confidence by his zeal, and all which he wrote on the<span class="pagenum"><a id="Page_245">[245]</a></span> -subject evinces a spirit of benevolence, being evidently -the production of an acute and energetic -mind. He was the first to point out the various objections -to benefit societies, and his exertions in the -cause of savings banks, though now almost forgotten, -were productive of good; nor is it too much to add, -that habits of industry and frugality were excited, -or that the happiness of the working class was increased -by his exertions. That which has hitherto -been related of Mr. Beaumont was but the result of -his leisure hours; for he was the originator of an -office, to the service of which he gave the principal -part of his time, and in which he found his reward. -There was, indeed, something very significant in his -resolute, earnest spirit, and there must, too, have -been something very honest in the man; for in the -outset of his own pet office, when the members -were excited by success, he told them that the early -accounts were not to be relied on, that they were -flattering from the nature of the business, and that -they showed more success at the beginning than the -future would confirm. He was an open foe to all -fraudulent offices, and did all he could to stay the -progress of the concocters of the West Middlesex. -He called attention to their proceedings in the -“Times;” he proved that the enormous commission<span class="pagenum"><a id="Page_246">[246]</a></span> -they offered, argued a foregone conclusion of swindling; -he attacked them in a Scotch paper, and drew -their wrath upon him, in the shape of an action for -damages, which cost him 100<em>l.</em>, and for which an -additional claim of 600<em>l.</em> was made on his executor.</p> - -<p>Unlike many business men, he had both taste and -talent for literature. He wrote a tour in South -Wales, and he has given us a very instructive work -on Buenos Ayres, in the colonisation of which he was -interested. The pamphlets he published are principally -on social subjects, and time has confirmed the -opinions he expressed. The people and their requirements -seemed his special care, and he appears to -have borne in mind the Divine commission “the poor -always ye have with you.” Besides a close attention -to their physical wants, he originated a literary -institution; for he had received too much solace from -art, science, and literature himself, not to spread its -moral and mental advantages among those in whose -cause he laboured. Nothing could exceed the ardour -he evinced, or the fatigue he underwent, in carrying -out his plan. “He was on the spot at all times, and -in all weathers. His attention was indefatigable and -his vigilance excessive. He paid little regard to -meat, or drink, or sleep; and the consciousness that -he was about to effect a great and lasting good inspired<span class="pagenum"><a id="Page_247">[247]</a></span> -him with augmented energy in the midst of -waning health and a decaying frame.”</p> - -<p>At length the sword wore out the scabbard. For -thirty years he had been subject to an incurable -asthmatic malady, and for the last ten years of -his life he had never been free from daily and nightly -paroxysms of pain. A long time prior to his death -he, in a somewhat eccentric spirit, ordered a coffin of -beautiful oak to be made, and to undergo the process -which would save it from dry rot; this was kept -at the undertaker’s, where he often philosophically -went to contemplate the future depository of his -remains. Not satisfied with the good he had -effected in his life, he left at his death 13,000<em>l.</em> to -maintain the institution which he had founded. He -was buried in his own cemetery; and there are -many wealthy men who may take a lesson from -Barber Beaumont in the employment of their riches, -and many poor men who may copy his unceasing -industry, prudence, and perseverance.</p> - -<p>Some allusion to the baneful career of the cholera, -fortunately more rare in its visits than the old plague, -will not be out of place in a volume, the basis of which -is the mortality of the people. Although from 1832, -when it made its second appearance in England<a id="FNanchor_25_25" href="#Footnote_25_25" class="fnanchor">[25]</a>,<span class="pagenum"><a id="Page_248">[248]</a></span> -various rumours had been spread of its approach, it -was not until 1849 that it came again to this country<span class="pagenum"><a id="Page_249">[249]</a></span> -in all its terrible reality. The appalling disease of that -year will not be readily forgotten; for it spared neither -the rich in his mansion, nor the poor in his hovel. It -smote the physician who attempted its cure, and it -struck down the priest who supplicated its departure. -It was not, however, indiscriminate in its attacks; -for wherever a squalid population hedged in the lofty -terrace or the aristocratic square, it spread from the -meagre workman to his healthy fellow-citizen. The -business of most life-assurance offices increased with -rapidity. Some of them were besieged with applicants. -Men saw their neighbours’ houses closed, and -feared that a similar symbol might soon mark their -own. They ran, therefore, while there was yet time, -to do that which they should have done before; and -so great was the influx, that it is doubtful had this -new form of plague lasted in all its intensity, whether -some of the companies would not have shared the -panic and shut their doors. It was scarcely possible -to see house after house bearing the signs of mourning, -without an indefinite future pressing its claims; -and when it was found that, in several cases, insurance -was followed by rapid death, they who<span class="pagenum"><a id="Page_250">[250]</a></span> -knew little or nothing of the doctrine of chances, -suggested that for a period the offices should be -closed; and as life after life was insured and fell, and -as day by day the gloom of the City increased, it was -even agitated by those who should have been better -informed. But the companies maintained their -calling; though then, if ever, they should have -mooted, whether those who insured their lives, and -went to reside among ill-constructed sewers, foul -gully holes, and teeming cesspools, should not have -paid a higher premium than those who went to -ventilated houses, breezy suburbs, and well built -districts. This point seems completely lost sight of. -Every inquiry is made concerning gout, asthma, and -consumption; but no question is put concerning the -health of a locality. A man determined to commit -suicide, and not void his policy, may as surely effect -his purpose as if he visibly destroyed himself; for wherever -scarlet or typhus fever rages, there may he reside -without question. “Whoever has insured his life,” -remarks Mr. Dickens, “may live over a cesspool. -He who has taken out a policy, is not called to give -notice of his intention, though he may purpose removing -to some quarter of the town, in which his -house may be ill-ventilated, his neighbourhood confined, -his drainage in a state of horrible neglect.<span class="pagenum"><a id="Page_251">[251]</a></span> -There was a case in point, that attracted public -notice some little time ago. A gentleman, aged -thirty-one, in excellent health, assured his life for a -1000<em>l.</em> Having paid only three annual premiums, -he removed to a sickly spot in the Bethnal Green -Road, and died of typhus fever after a few days’ -illness.”</p> - -<p>These ideas are gaining ground. Mr. Austin -first started them, and Mr. Dickens has reproduced -them. They arose during the fatal sickness just -alluded to, and are certainly not unworthy the consideration -of all who are interested on the subject.</p> - -<p>A new plan, now known as the half-credit system, -was first introduced in 1834, by the United Kingdom -Life Assurance Company; and although -strongly opposed at its commencement, has since -been very generally adopted. By this system a person -aged 30, whose annual premium for insuring -1000<em>l.</em> would be 21<em>l.</em> 18<em>s.</em> 4<em>d.</em>, may insure 2000<em>l.</em> by -paying the same premium annually for five years, -after which 43<em>l.</em> 16<em>s.</em> 8<em>d.</em> would be required. This -would leave 109<em>l.</em> 11<em>s.</em> 8<em>d.</em>, including interest, to be -paid off at his convenience, or to be deducted at his -death; but should he die within the first five years, -his family would receive 2000<em>l.</em> instead of the 1000<em>l.</em> -they would have received under the old system.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_252">[252]</a></span></p> - - - - -<h2>CHAP. XIV.</h2> - -<p class="chapter-subheading">SELECT COMMITTEE OF 1841.—INSTANCES OF DECEPTION.—PUBLICATION -OF ACCOUNTS.—NEW COMPANIES—ASSERTIONS ABOUT -THEM—THEIR IMPORTANCE—SUGGESTIONS CONCERNING THEM.</p> - - -<p>A select committee was appointed in 1841 to -consider the laws relating to joint stock companies. -It concluded its labours in 1843. There -was an evident want of amendment in these laws. -For about fifteen years prior to 1840, the world had -been at the mercy of any one who chose to publish -an advertisement, call himself a company, and receive -money for assurances and annuities. Vast -sums had been obtained, therefore, by daring adventurers -of the Montagu Tigg school, who launched -with avidity into this branch of business. Besides -the loss by the West Middlesex, nearly half a million -sterling had passed from the pockets of the public to -those of projectors; and the following instances will -prove that government were not called upon to -interfere without a sad necessity:—</p> - -<p>A family of swindlers founded an office. One of -them changed his name, called himself trustee, and<span class="pagenum"><a id="Page_253">[253]</a></span> -acted as chief manager. Who would believe that -this man, without character and without money, -induced several members of parliament to become -directors? because “they thought they were doing -a kindness to the promoter;” allowing their names -to be used as lures to a concern whose shareholders, -when it broke up, were found to be “minors, married -women, labourers, and small tradesmen.”</p> - -<p>In a second office, an uncertificated bankrupt, its -promoter, appointed himself resident manager. Insurances -and annuities to a considerable extent were -effected, and then the company, consisting of eleven -shareholders and directors united, vanished, and, -“like the baseless fabric of a vision, left not a -wreck behind.”</p> - -<p>In another which had been established many -years, great names were at its head, and great business -was done. But whether the terms were not -high enough, or the management was bad, it proved -a failure. An extraordinary career was that of the -chief manager. Thinking, probably, to recover himself, -he had speculated in newspapers; he had established -a society in connection with natural history; -he called the queen dowager his patron, and had -been honoured by a visit from majesty. As some -of these could scarcely be called sound investments<span class="pagenum"><a id="Page_254">[254]</a></span> -for an annuity society, he was unfortunately compelled -to leave off paying the unhappy annuitants.</p> - -<p>These special cases arose from want of sufficient -control. On inquiry it was discovered that the -names of persons who had no existence had been -used in some cases, and the names of persons of -substance, without their permission, in others. That -false statements of authority—that fraudulent prospectuses—that -tempting rates of commission—banking -accounts with the Bank of England—and, -above all, advertisements appealing to the cupidity -of the public,—had always proved successful.</p> - -<p>Owing to the information elicited by the committee, -it was deemed necessary to recommend that -any future company should be provisionally registered, -stating every particular of its purpose, its -promoters, its directors, its subscribers; and that a -complete registration should be accompanied by a -copy of its prospectus, its deed of settlement, its -amount of capital, its number of shares, the names -and residences of the shareholders, the officers of -the company, and a written acceptance of office. -These recommendations were carried out by 7 & 8 -Vict. c. 110.; but time has proved that the act has -scarcely been successful, even in mitigating the evils -it was meant to prevent. “Arguing from the experience<span class="pagenum"><a id="Page_255">[255]</a></span> -of the present law,” says the “Morning -Chronicle,” “during the past eight years, it does not -appear that its effect has been in any way to restrain -the formation of unsound insurance companies;” and -in one respect it assisted them, as it gave the promoters -the power of quoting a special act of parliament -in their favour, thus adding a spurious stability -to their character. In seven years from the working -of the new act the number of projected companies -averaged three and a half per month; the -number actually opened, two every month, while -about fourteen yearly were compelled to close their -operations. It may be supposed that the old offices -were somewhat surprised as project after project, -each proclaiming its principle to be the very essence -of life assurance, was registered. They made, however, -a great show of business. Their annual reports -were startling to the ears of staid, methodical -gentlemen of the old school, who, seeing that their -own policies had not increased with the population, -thought, when new companies declared huge profits -and boasted augmented policies, that the world was -coming to an end. The assumptions of some of -these new offices were audacious enough; one actuary -asserting that a company might spend all their -premiums and great part of their capital, and be perfectly<span class="pagenum"><a id="Page_256">[256]</a></span> -solvent. The first year’s business of a society -which started at this period produced 3300<em>l.</em>; a -large sum undoubtedly, but the first year’s expenses -were 3000<em>l.</em> out of it. The business of the second -year produced 2000<em>l.</em>; but all the money paid by -the policy holders was spent, with 15 per cent. of -the capital in addition. Rumours like these—exaggerated -perhaps by the terrors of those of the <i lang="fr" xml:lang="fr">ancien -régime</i>—soon spread about, and there was a growing -disposition in the public to regard new offices with -suspicion. Of about forty which had been annually -projected from 1844 to 1851, many had given up -the ghost; and though the policies in some cases -were transferred to other offices, yet in those which -were not so fortunate there must have been great -evil. For some years a cloud had been gathering; -but when Mr. Labouchere moved that the accounts -of the various offices should be printed, and when, -in their naked attire and without the opportunity of -re-arranging them, they were presented to the House, -they seemed so at variance with the boasted success -of many, that the public, aided by the old offices, -grew frightened at the picture which Mr. Labouchere -had conjured.</p> - -<p>This, however, produced no very apparent results -in checking the formation of others; but the letter<span class="pagenum"><a id="Page_257">[257]</a></span> -of Mr. Christie<a id="FNanchor_26_26" href="#Footnote_26_26" class="fnanchor">[26]</a> to the President of the Board of -Trade, together with various leading articles in the -morning papers, in which the Chronicle took the -lead, aroused a spirit of mischief in those who -thought themselves aggrieved. “The object I have -in view,” says Mr. Christie, “is a thorough scrutiny -and investigation into the affairs and responsibility -of every life and annuity institution in the United -Kingdom, with a view to such enactments as shall -protect extensive public interests from the alarming -prospective evils of fraud and of ignorance.”</p> - -<p>There does not appear in this profession sufficient -reason for the torrent of pamphlets which appeared, -because all offices engaged in similar business to -that of Mr. Christie should possess a similar desire. -Such, however, was the fact, and when the morning -papers unmasked their battery, the fun grew “fast -and furious.” Nothing can be more desirable than -that the balance-sheets of these companies should -be clear and uniform; and it seems reasonable that -all offices should so express their returns. But it -should not be forgotten that these accounts were -furnished without any idea of publication. Each<span class="pagenum"><a id="Page_258">[258]</a></span> -institution sent its statement according to the notion -of its actuary; and as actuaries, like doctors, disagree, -not only was there no attempt to make one -balance-sheet resemble another, but the very principle -differed on which they founded their valuations. -It was, therefore, not the fault of the actuary, but -of the act itself, in not demanding uniformity, that -they appeared in so many and such varied forms—that -they at once produced suspicion, and that they -have made the word “insolvent” commonly used with -regard to these new institutions. But insolvency is -a very awkward term, particularly when applied to a -life assurance office. There is scarcely a banker in -existence to whom the same term might not be applied -on almost the same principle, for there is not -one ready to pay all his balances on instant demand. -But the banker knows his contingencies as life -assurance offices know theirs; and to that extent -only are both prepared to pay. Both are liable to -runs on them; the latter during an epoch in the -public health, the former during an era in the money -market. Being, therefore, a question of contingency -with the new mutual office, we must remember, in -fairness, that it was the same with the old; and -that, had they been compelled to publish their balance-sheets<span class="pagenum"><a id="Page_259">[259]</a></span> -when they commenced, very unpleasant remarks -might have been made as to contingencies.<a id="FNanchor_27_27" href="#Footnote_27_27" class="fnanchor">[27]</a></p> - -<p>While this subject was being agitated, some awkward -cases arose to startle the mercantile world and -depress the feeling of security so necessary to the -perfect fruition of assurance. Several companies—founded -by authority of the Joint-stock Registration -Act—had arisen and fallen to the ground. One -deed of settlement after another had been proved to -be as worthless in effect as that of the West Middlesex. -One series of promoters after another had -published elaborate prospectuses, and failed to meet -their liabilities. The directors of these had been -from that class which supplied Quirk, Gammon, and -Snap with their business, and the managers had -arisen among those whose names had graced the -bankrupt list, or been arraigned at the Old Bailey. -The following will prove that the law, since 1845, -any more than prior to it, has not been effective, and -that it is as easy to establish fraudulent companies -now as it was before the passing of the act. One<span class="pagenum"><a id="Page_260">[260]</a></span> -director had been keeper of a gaming-house. -Another, calling himself a knight, acted as travelling -commission agent. A list of shareholders, which -was published for the benefit of the public, proved -that, though one was a holder of no less than 20,000 -shares, the locality assigned to him was ignorant of -his whereabouts. Two others had been bankrupt, -another had been insolvent, others were clerks to -the company, one declared his name had been forged, -while another had been dead for many years. The -institution had been enormously puffed, and the -result was that many insurances were effected. But -when it became known<a id="FNanchor_28_28" href="#Footnote_28_28" class="fnanchor">[28]</a> that a proprietor of 2000 -shares in the company was also a petitioner in the -Insolvent Debtors’ Court, and that at the very time -he was advertised as a proprietor of these shares he -had hardly a coat to his back, the premiums became -less. In this awkward position the claims for losses -were met by credit notes at fifty-three days’ date, -which of course were duly dishonoured, and, as a -natural consequence, the company was heard of no -more. The following will tend to satisfy the reader -that no exaggeration has been used. “I have,”<span class="pagenum"><a id="Page_261">[261]</a></span> -says Mr. Hartnoll, “from among the worst cases of -assurance companies brought into existence under -the facilities for forming such companies by the -Registration Act, exhibited to you the history of -one whose robberies amounted to 60,000<em>l.</em> I have -dissected another of these companies, composed of a -low set of vagabonds, whose signatures as shareholders -were procured at a pot-house for pints of -beer. I have given you the name of a third, whose -secretary was brought, most wrongfully according -to the verdict, to the bar of the Old Bailey, on a -charge of conspiring to obtain money under false -pretences; and of a fourth whose manager is a mendicant, -and whose secretary is a fellow who ought -to become one, in order to prevent his becoming -something worse, I have from the middle class of -these companies referred to one, winding up in -Chancery, having ‘fictitious names of subscribers to -the deed,’ and from the purer class of new companies, -from no invidious selection, but almost by -compulsion, under public challenge from parties -officially connected with two offices. I have analysed -the accounts of one, which, at the end of three -years, had only 14,512<em>l.</em> left in every shape and form -out of 45,081<em>l.</em> received in solid cash; and of another -which, although with every shilling of its funds gone,<span class="pagenum"><a id="Page_262">[262]</a></span> -and 1754<em>l.</em> 10<em>s.</em> 3<em>d.</em> in debt, continues to publish to -its policy-holders and the world at large the very -great fib that it has made a profit of 6015<em>l.</em> 9<em>s.</em> 2<em>d.</em>”<a id="FNanchor_29_29" href="#Footnote_29_29" class="fnanchor">[29]</a></p> - -<p>Of course the frauds alluded to above strengthened -the hands of the old companies, and though -really worth nothing as illustrations against the existing -offices, were quoted with much delight. The -chief thing they did prove was, that while the Registration -Act did not prevent the formation of bubble -societies, it aided such men as Mr. Hartnoll in discovering -them before much mischief could be effected. -All these circumstances, however, drew attention to -the new companies, eliciting a variety of opinion on -the subject.</p> - -<p>The amount assured in all the life offices in the -kingdom is variously calculated. But probably the -information collected by Mr. Brown, who estimated -it at 150,000,000<em>l.</em>, is nearest the mark. On this -sum, 5,000,000<em>l.</em>,—being about one twelfth of the -annual revenue of the country,—are payable yearly -as premium. The vastness of this interest, its -domestic character, its mercantile and its social -bearings, are all important; and as life assurance is -making rapid strides in public esteem, it is probable -that where one man now insures for the sake of his<span class="pagenum"><a id="Page_263">[263]</a></span> -family, two will do it in twenty years’ time; always -provided no check be given to the principle, by -the failures of offices, through extravagant expenses, -or through want of business.</p> - -<p>There is a general objection on the part of commercial -men to see the Government interfere in mercantile -affairs. But this is a question of degree: -the principle is sound to a certain extent, though no -farther. It is sound that the State should not interfere -with the detail of management, but it is not -therefore unsound that it should propose some general -law by which publicity may be given to certain -accounts—by which the public may be made aware -of their liabilities, and a moral check established -which must be beneficial to all.</p> - -<p>The wise provisions of the Banking Act of Sir -Robert Peel in 1844 are a proof that our Legislature -does interfere in financial affairs, and life -assurance is only an extended form of banking; the -joint-stock banking company receiving deposits and -paying them back, with interest, on demand; the -joint-stock assurance company receiving deposits and -paying them back, with interest, at death. If it were -thought desirable for the Bank of England to publish -a weekly statement of its financial position, it is -equally desirable, in many respects, for a life assurance<span class="pagenum"><a id="Page_264">[264]</a></span> -company,—the argument being, in both cases, -the general good.</p> - -<p>An examination of the accounts returned by the -various offices gives us some startling facts. Twenty-five -of these, the average term of whose operations -has been three years and three-fifths, have expended -in that time 375,328<em>l.</em> out of 462,032<em>l.</em>, great part of -which they have received for policies granted and -annuities promised. Nine of them have spent all -their premiums and 30 per cent. of their capital -besides. Mr. Labouchere distinctly stated his -opinion that many were insolvent; and “My impression,” -says Mr. Christie, “nay, my entire conviction, -as to others, notwithstanding the flaming -accounts of their prosperity contained in reports and -speeches at annual meetings, is, that they are rotten, -and are in effect, though not in design, fraudulent.”</p> - -<p>Such statements as these being publicly made, -there appears some ground for examining the question, -and for quieting the minds of those who may -have entered into engagements with the junior -offices, so far as a fair and rational consideration will -do so. It may be assumed that none of the offices -now in existence have been opened with a fraudulent -intent; but the necessity which exists of spending -their money liberally, and almost lavishly, to procure<span class="pagenum"><a id="Page_265">[265]</a></span> -business, is almost as pernicious. It is but just to -say that an examination of the tables of the new -offices does not show a low rate of premium; not -lower, perhaps, than the increased value of life will -allow, and certainly not lower than the old offices -could well afford to charge.</p> - -<p>One unfortunate tendency of the new companies -is to give life assurance a speculative character, when -nothing is less speculative in reality. Yet the extraneous -temptations and collateral advantages promised -by most are very mischievous. Men now sometimes -insure their lives with a vague belief that in a few -years they will have no more premium to pay; they -quarrel with the fair divisions of old offices, and -taunt their managers with the advantages to be derived -from the new. As an example of the language -that is sometimes indulged in, one modern office -promises to set apart a portion of its future profits, -whether such should amount to thousands or to -tens of thousands, to hundreds of thousands or to -millions, for the support and future provision of any -person in decay who shall have once, for however -brief a space of time, held a single share in such -company. “To become a shareholder,” says the -prospectus, “is as it were to effect at once and for -ever a policy of assurance against want.” The<span class="pagenum"><a id="Page_266">[266]</a></span> -reader is left to judge for himself of this singular -specimen of assurance.</p> - -<p>But, independently of the expenses which eat up -the premiums, it may be feared that in an anxious -search after business, the examining physician may -not be so rigid in his report as those of the older -established companies; the lives admitted by the -directors, therefore, not being so good as they should -be for the ultimate safety of the office. It has been -added, in support of this, that in some of these companies -the mortality has been 40 per cent. more than -it should have been, had proper care been taken. -But are we not very ignorant of the laws which -govern disease? It is well known by physicians -that the chances of life in individuals are constantly -changing. Mr. Gompertz, the father of our actuaries, -has expressed a belief that it would be difficult to -pick out 10 per cent. of really uninsurable lives from -the entire population. Those which are now doubtful, -or even diseased, to-morrow become sound and -insurable; while those accepted with gladness at the -ordinary rates of to-day, become in almost the same -proportion ailing and uninsurable afterwards. The -chances of individual health, be it sound or unsound, -are as uncertain as those of individual life, and no -effort having hitherto been made, excepting by Mr.<span class="pagenum"><a id="Page_267">[267]</a></span> -Neison, to discover the law which governs disease in -its relation to life, it follows that any argument -against the new companies based on the low character -of the lives which they assure, may prove, however -specious in theory, very unsound in practice. -And the mode adopted by the old offices of conducting -their business has certainly, up to the present -time, been too much in their own favour. By well-grounded -tables they establish the fact that out of -1000 lives, taken at random among the diseased as -well as the healthy, a certain number will die each -year, until all are extinct. But though on this they -found their rates, they are much too shrewd to take -their lives at random. They pick the strongest and -healthiest, rejecting all else, and make them pay -premiums founded on the contingency tables of -mixed lives. This, therefore, is also somewhat in -favour of the calculations of the new companies. -But there is another important item to be regarded;—the -value of money. The funds of all the offices -from 1760 to 1815 were bought when Consols were -low, and the price of the Three per Cents. ranged -from <span class="nowrap">47 <span class="fnum">1</span>/<span class="fden">4</span></span> to 97. During the war there was an eager -demand for money. Exchequer bills, mortgages on -large landed estates, allotments of new loans, were -all favourable modes of investment. Even since<span class="pagenum"><a id="Page_268">[268]</a></span> -money has been plentiful, the large capital of the old -offices has enabled them to gain a higher interest, -because money lent in large sums for a lengthened -period will always command a higher rate of interest -than small sums for a short period. Thus one old -office announces, in its balance-sheet, that it is receiving -<span class="nowrap">4 <span class="fnum">1</span>/<span class="fden">2</span></span> per cent. on its investments; and probably -other offices, with similar funds, are similarly fortunate.</p> - -<p>The new offices may find a difficulty in this which -they have not estimated, and which may materially -interfere with their profits; although it is more than -probable that even this objection is over-rated, because -there are principles which govern the interest -of money, quite as certain as those which govern life, -and because the rate of discount of the Bank of -England is no safe criterion to those who are out of -the money market. Their anxiety to forward their -interests will also induce them to exert themselves, -and the activity which pervades business when discounts -are low, may more than compensate for a -diminished interest. There is, however, another -feature which must always act somewhat in favour -of the old offices, and that is, their liberality in -peculiar cases. Rich and well-established companies -do not always confine themselves to arithmetical<span class="pagenum"><a id="Page_269">[269]</a></span> -calculations, and they often employ the rule of right -in paying demands which no court of law could -compel; partially, it may be, from proper feeling, -but principally from an “enlightened selfishness.”</p> - -<p>If it be thought that life assurance offices should, -for the sake of the public and of themselves, be -interfered with by Government, the next step is to -discover the simplest and the least vexatious mode -of dealing with them. And here at once arises the -question whether some difference should not be -made between the mutual and the proprietary company. -Assuming that the mutual system possesses -every essential element of safety, it is equally true -that there are hazards in the path of any company -depending merely on its premiums, which do not -attend a company with a respectable proprietary. -Hundreds were once ruined by a mutual fire-company; -and had the cholera, in 1849, fallen on the -class which does insure as much as on that which -does not insure, none can say to what extent the -new and untried companies would have suffered, or -whether they could have paid the policies which -became due. And there is another point which -materially affects an office with a small business. -In the first few years of its existence the estimated -mortality will probably ensue. But let us imagine,<span class="pagenum"><a id="Page_270">[270]</a></span> -for a moment, this mortality seizing those who are -insured for large amounts, instead of those who are -insured for small sums; might not the demands be -too great for its capital, even with no excess of mortality, -especially when it is remembered that the -expenses of establishing the society would necessarily -have decreased its resources? A company with a -subscribed and paid-up capital may fairly pay largely -for advertisements; but a mutual company, without -any independent funds, has scarcely the right to use -their premiums for any other purpose than to decrease -the annual payments or add to the policies. -As mutual offices, therefore, have no other security -than their premiums, these would require to be -looked after more circumspectly and closely than -where a capital and a proprietary are answerable to -the insured. The mode in which the funds are invested -by mutual offices might be a fair subject for -publication; nor would this be an invidious distinction, -as an irresponsible office has less claim to an -equal latitude of investment, and less right to keep -their secrets than a responsible company.</p> - -<p>One element in the success which the old mutual -offices have experienced is attributable to the high -rates they charge. Thus, the premium of an old -mutual company at the age of thirty is 2<em>l.</em> 13<em>s.</em> 6<em>d.</em>;<span class="pagenum"><a id="Page_271">[271]</a></span> -while that of an old proprietary company is 2<em>l.</em> 2<em>s.</em> -There may be an ultimate equivalent to the mutual -insurer, if he live, in either a reduced premium or an -increased policy; but as the former is too frequently -accepted instead of the latter, the family of the -insured do not receive the same benefit at his death -which they would have done, had he paid the same -sum to a proprietary office, and kept up the premiums -as he would have been compelled to do.</p> - -<p>A life assurance office with a respectable proprietary -and a paid-up capital, is by virtue of the English -law of unlimited partnership as safe as any company -can be, so far as the assured is concerned; and -as the chief end and aim of government interference -would be the safety of the policy-holder, it follows -that new legislation on this subject should in fairness -only affect new proprietary companies, to prove the -reality of their capital, and so protect the public -from such men as those who have lately been unkennelled. -But though a marked difference may be -claimed by the respectable proprietary companies, -and though a distinction might perhaps in strict -justice be drawn betwixt those with a subscribed -capital and those which have only their first years’ -premiums, less their expenses, to pay the claims -against them, it would perhaps be politic on the part<span class="pagenum"><a id="Page_272">[272]</a></span> -of government to include all; and it would be still -more politic on the part of the old proprietary offices -to state their readiness to concur in any plan which -might be for the benefit of the body corporate, because -any legislative measure, to be effective as well -as protective, must be general. While it must be -such as will be readily acquiesced in by the older -offices, it must not be made unpleasant to the new: -it must be at once general in its application and -strict in its inquiries. If it appear inquisitive, it -must not be inquisitorial; and, if possible, the common -consent of all should be obtained. The actuaries, -who are intelligent and accomplished gentlemen, -must be propitiated, for they are in possession of a -somewhat occult science, having justly the ear, the -confidence, and the respect of their directors. And -when it is borne in mind that these directors embrace, -as a body, the first men in the city of London, that -they possess a commercial, social, and, not seldom, a -political consideration, it follows, that to conciliate -them is as necessary to the well-being of any measure, -as to conciliate the actuary is necessary to the co-operation -of the directors. There is no profession in -which subordinates are so respectfully regarded, for -the actuary is master of a science in which the director<span class="pagenum"><a id="Page_273">[273]</a></span> -is generally deficient; and knowledge, in this -case, as in others, is essentially power.</p> - -<p>If then it would be wise and prudent for government -to interfere with all, and at the instance of all, -the next consideration is how to produce the greatest -amount of good with the least amount of evil: and -one of the essential conditions is, the clearest information -published in the briefest form to give a correct -estimate of the position of an office. Tabular statements -may prove whatever the actuary pleases, and -may be made to mean anything and mystify anybody. -One concise form, therefore, so clear that he -who runs may read, a form which can deceive no one -and which all can understand, will be necessary.</p> - -<p>Many methods by which the safety of the public -may be attained have been proposed; but the first to -be dealt with are the publication of the accounts, the -form in which they should appear, and the mode of -determining their correctness.</p> - -<p>1st. The publication of the accounts, to be effectual, -should be general. Without this the cry of partiality -would be raised, and must be fatal to the attempt. -As well as general, they should also be uniform, so -far as this is possible. They should consist of -leading features stated in the simplest and least complex -form, admitting, as far as practicable, of only<span class="pagenum"><a id="Page_274">[274]</a></span> -one interpretation. They should be certified by the -actuary, examined by the directors, and signed by -the chairman, all of whom should be held responsible, -under a heavy penalty, for their accuracy.</p> - -<p>2d. These returns must give the exact money -position of the office, the leading principle being an -endeavour to show the funds in proportion to the -risks; and as there is a difference in the mode of -estimating future chances, the form adopted by each -should be one and the same. As each office, also, -has business special to itself, with its own peculiarities, -its own interests, and its own mode of investment, -any detailed statement might be dangerous, -and form the groundwork for rivals to copy or to -criticise. The points of chief note are the capital, -the amount of liabilities, and the annual returns; -and if the endeavour were made to show the funds in -proportion to the risks, instead of endeavouring to -procure a large show of business at any price, the -object of ambition would be the accumulation of -capital.</p> - -<p>3d. The best way of procuring correct information -is the next condition. Falsified returns are not -impossible. If any office should be failing in its -endeavours to keep its business together, having men -at its head whose names are unknown save in a petty<span class="pagenum"><a id="Page_275">[275]</a></span> -and obscure locality, a strong check is necessary; -and it seems scarcely practicable to avoid the appointment -of a competent person as an arbiter of their -correctness. Unpopular as this might be at first, -were the appointment placed in proper hands and -judiciously carried out, it would be of immense -benefit. It would indeed be scarcely necessary for -the inspector to be a government officer. The -established companies might fairly say, that they -have done no wrong, and that a close espial by a -government agent would be derogatory. But were -an inspector of this kind chosen unitedly by the -offices, and paid by the State, the companies having -no voice in his dismissal, excepting under circumstances -which ought to command it, there would -be less objection. The necessity for such an officer -would arise from the brevity of the accounts to be -published. It would be his duty to see that the -data from which they were formed was true; that -the premiums received were as large as was stated; -and that while the investments were as great, the -liabilities were not greater than the report asserted. -The power to examine and compare these returns -with the books of the various companies is a delicate -consideration; but as the offices might appoint the -inspector themselves, it would, after all, be only an<span class="pagenum"><a id="Page_276">[276]</a></span> -additional check by their own officer on their own -affairs. The mode of investing need not be published, -as the power of the inspector to demand an examination -would be a sufficient check on immorally-disposed -offices. Nor is such a case unprecedented, -as by a clause in the Bank Charter Act of 1844, -commissioners are empowered to search into and -examine the books of those bankers who issue -notes.<a id="FNanchor_30_30" href="#Footnote_30_30" class="fnanchor">[30]</a></p> - -<p>If it be desirable, as it undoubtedly is, that -assurance offices should be perfected for the sake of -the public, it is doubly so that some check should -be placed on annuity companies. It is from them -that most mischief has ensued. In a life office the -promoters may have to pay claims before they have -received sufficient assets to meet them. But an -annuity office, where capital is at once placed down -for a future, but postponed benefit, may do irreparable -mischief in less than a year. In this way -the public, and that portion of the public, too, which -is the most deserving of care, have suffered, and are<span class="pagenum"><a id="Page_277">[277]</a></span> -likely to suffer. All the new offices grant annuities, -and though it is difficult to say the exact amount, -(their returns being so cleverly or so clumsily -arrayed), yet it is probable that within the last five -years more than 100,000<em>l.</em> has been received on the -faith of annuities to be paid by them; and it will be -no consolation to the annuitant to be told that though -his annuity must cease, it is caused by unfortunate -calculations and not by fraudulent design. The -granting annuities does not necessarily, although it -may naturally, enter into the business of a life office. -For the first century assurance, and annuities were -distinct, and it is somewhat doubtful whether it is -quite wise to allow, at any rate it is dangerous to the -public to deal in annuities granted by new offices -which issue policies of assurance as well as bonds of -annuities. The large sums paid down make a show -in the assets of a new company, and the fact that -hundreds of people for many years rest their entire -support on the promises to pay of offices which have -been declared by many to be bankrupt, and whose -balance-sheets certainly evince an irregularity out of -keeping with all propriety, is singularly important. -It is a cruel government that will not interfere in an -iniquitous system, and the accounts of the annuities, -viz. the yearly amounts to be paid, the estimated<span class="pagenum"><a id="Page_278">[278]</a></span> -number of years over which they will extend, and -the special capital in hand to meet the demands, -should be published separate and distinct from the -assurance accounts, as the banking and issue departments -of the Bank of England.</p> - -<p>Another proposition has been made, to the effect -that no company should be allowed without a large -paid-up capital. “The public safety,” says the -‘Morning Chronicle,’ “requires that a sufficient -capital should be provided;” and this the same -article suggests should be 50,000<em>l.</em> “There are -special reasons,” adds the writer, “particularly at -this time, why new insurance offices should be required -to provide a sufficient capital. Causes are in -operation which may interfere largely with the rate -of interest procurable on first class investments, and -it is not to be overlooked that the increasing facilities -of communication with distant regions, Australia for -example, combined with the wide discretionary -powers which it is the fashion for deeds of settlement -to confer, may lead to remote and hazardous investments, -full of promise when entertained, but liable -to great and sudden accidents,—accidents such as -insurance offices without any independent resources -could never recover.”</p> - -<p>In another portion of the very elaborate articles<span class="pagenum"><a id="Page_279">[279]</a></span> -alluded to<a id="FNanchor_31_31" href="#Footnote_31_31" class="fnanchor">[31]</a>, it is added:—“The only real remedy is -to take care that the parties who enter into the -several speculations have something considerable to -lose, self-interest will then render them infinitely -more prudent and vigilant than all the inspections -and certifications in the world. With the general -requirement, however, of the payment of 50,000<em>l.</em> -as capital, might very properly be combined certain -improvements on the present law of a minor character.” -“It would be proper also to enact that -after a specified date all persons whose names are -with their consent advertised as patrons, vice-patrons, -trustees, or honorary directors, of any insurance -company, shall be deemed to be shareholders therein.”</p> - -<p>How far the suggestion of no office being allowed -without a large capital, should be carried out, is a very -serious consideration. A large paid-up capital does -not appear an absolute necessity, although the faith -engendered by it would probably repay the assured, -because the larger the capital, the greater the confidence, -and the greater the power of the subscribers -to extend the business, as it does not follow that all -the profits should go to the proprietors. The money -invested would not be idle; it would be the business -of the directors to place it in security at a good interest,<span class="pagenum"><a id="Page_280">[280]</a></span> -and the interest would probably be greater -than the subscribers could obtain elsewhere for their -money.</p> - -<p>All the old companies, which were once purely -proprietary, divide a portion of their profits among -the insured, and nothing can be fairer or better -founded than an office which offers the advantage of -a large paid-up capital, and divides four-fifths or -nine-tenths of the profits among the insured. Still -as the entire tendency of the public has been in -favour of the mutual system for the last quarter of a -century, as all authorities have proclaimed it to -be the purest principle of Life Assurance, as innumerable -instances of great success are to be found -in its ranks, it follows that an attempt to revert -to the pure, proprietary system would be worse than -useless. But with all the advantages of the mutual -system, it is probable that a small paid-up capital, -with responsibility to the extent of the proprietor’s -fortune, would be sufficient for safety: for there is -one more point to be considered relating to the -management of a mutual office, which is too often -forgotten. In this the policy-holders have a vote; -they know not when their lives may fall; they are -eager to add to the value of their policies; and the -directors feel a pressure from without which sometimes<span class="pagenum"><a id="Page_281">[281]</a></span> -compels them to give a greater bonus than -they ought. This is the prevailing tendency of the -mutual principle, and argues somewhat against it. -In a mixed company, on the contrary, it is the aim of -the directors to maintain their investments intact; -they know that what will destroy the company will -destroy them as partners, and there is a moral power -in operation in their case, as there is something very -unlike a moral power in operation in the other.</p> - -<p>That there are enough and to spare of companies, -none can doubt. That some are in a position from -which their customers would justly shrink is probable; -and that others would be found insolvent if -strictly examined, is to be feared. But, with all this, -they are indisputably beneficial to the cause they -represent, as they are spreading its knowledge, and -pressing its necessity, with the earnest spirit of men -whose existence depends on the number of their -proselytes.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_282">[282]</a></span></p> - - - - -<h2>CHAP. XV.</h2> - -<p class="chapter-subheading">EXTENSION OF ASSURANCE.—SOCIETY FOR ASSURANCE AGAINST -PURGATORY.—COMMERCIAL CREDIT COMPANY.—GUARANTEE -SOCIETY.—MEDICAL, INVALID, AND GENERAL.—AGRICULTURAL -COMPANY.—RENT GUARANTEE.—RAILWAY PASSENGERS.—LAW -PROPERTY, AND INDISPUTABLE SOCIETIES.—DISPUTED POLICY.</p> - - -<p>It has been found that there are unchanging principles -which regulate commercial losses; that the -lives which are sacrificed by railway accident have -similar conditions; that the storm which levels the -wheat has its defined courses; that the murrain -which devastates the cattle is as fixed in its movements -as the disease which destroys humanity. To -meet these casualties, societies have been started, -founded on laws originating in the doctrine of probabilities, -and regulated by tables to show the -chance of their occurrence. Nor is there any reason -against—nay, there is every reason to believe in—their -success, provided only their promoters apply -themselves with diligence to collect sufficient data -whereby to rule their operations. Of one society only<span class="pagenum"><a id="Page_283">[283]</a></span> -may a doubt be evinced and a smile raised at its -presumption, and this is the</p> - - -<h3>SOCIETY FOR ASSURANCE AGAINST PURGATORY!</h3> - -<p>for supposing the threepence per week paid by the -credulous peasant be sufficient to satisfy the priest, -yet there is every reason to doubt that the prayers -and masses of such mercenary pastors will be sufficient -to satisfy God. There is something half-grand -and half-grotesque in this impudent provision against -an indefinite future.</p> - - -<h3>THE COMMERCIAL CREDIT MUTUAL ASSURANCE -SOCIETY</h3> - -<p>is characteristic enough of a mercantile people. -Prior to the foundation of such an institution, it is -obvious that there must have been some important -statistical information connected with commercial -losses.</p> - -<p>This was submitted to Mr. Finlaison; and his -opinion being that the plan contained the strongest -element of success, the society commenced business; -and now any person supplying a number of traders -with goods may secure himself from loss, 90 per cent. -of which is paid to the assured party, the remaining<span class="pagenum"><a id="Page_284">[284]</a></span> -10 per cent. being placed as a reserve fund. There -is also an annual charge for management, out of -which the interest on the shareholders’ capital of -50,000<em>l.</em> is paid. There are many collateral advantages -in connexion with the company, not the least -of which is information concerning the trading community, -so that a subscriber may ascertain the character -and credit in the money-market of a new -customer. All legal expenses are borne by the management -commission fund; and there is something -very amusing in the indifference with which any person -insured in this society must attend a meeting of -creditors; for while others look with bent brows and -anxious faces, he may remain utterly careless about -its proceedings. It is easy to suppose that this feeling -may raise a spirit of recklessness in some; but -the promoters have wisely interested this class, if -such there be, by the deduction of the 10 per cent. on -all losses, and by other wise arrangements which -stimulate the careful and deter the careless. One -half the surplus of the year’s premium will be applied -to the reduction of the next payment of those whose -losses have not equalled their annual premium; and -as a similar society has been in operation in France -for the last five years, which has met with signal -success, there appears every reason to believe that<span class="pagenum"><a id="Page_285">[285]</a></span> -this society will prosper. Within the first nine -months, insurances have been effected of more than -3,000,000<em>l.</em> The theory of chances is as applicable -to commercial transactions as it is to life. The -close observer will not have failed to notice that -the periodical epidemic—whatever form it may -have assumed—has its representative in the commercial -crisis. Every six or seven years, mercantile -epidemics—analogous to the cholera, the influenza, -or the typhus of an unhealthy season—which -seem to defy all calculation and to level the lofty as -well as the low, revolutionise our money system. -So fixed have they become in their appearance and -re-appearance, that they have ceased to be exceptional; -and there is now plenty of information on -which to base some estimate of the annual losses of -special classes from bad debts.</p> - - -<h3>GUARANTEE SOCIETY.</h3> - -<p>When this company was first started, in 1840, for -the insurance of loss against the dishonesty of clerks, -there was a great objection raised. It was thought -one of those vague and speculative undertakings of -which England has seen so many, and one which -would necessarily fail, because the master would -hesitate to take an assistant who could only give the<span class="pagenum"><a id="Page_286">[286]</a></span> -security of a commercial company. “The moral -security is wanting!” was the exclamation of all. It -was vain to answer, that this objection pointed both -ways, as the relative would often give the desired -bond, which a mercantile institution would refuse. -Still the parrot reply was heard, and the solemn shake -of the head was followed by “The moral security—where’s -the moral security?” and was deemed sufficient -to crush all argument derived from mere statistics.</p> - -<p>Time passed, and it was discovered that because a -banker’s clerk gave the security of a company, he -did not become a rogue, but he did become independent. -It was found, too, that the master could -make his claim good on the company with far more -promptitude than he could on a relative. It was -nothing to say to a board of directors, “I will have -justice and my bond;” but it was something to say -to a broken-hearted parent, “Your son has ruined -you as well as himself—discharge your obligation!” -It is well known that bankers and merchants -have often foregone their due rather than thus reimburse -their losses: and it has been found that, -notwithstanding the fact of the “moral security” -being wanting, the societies which guarantee the -master from loss by the servant have been very successful, -are very serviceable, and are on the increase.</p> - -<p><span class="pagenum"><a id="Page_287">[287]</a></span></p> - - -<h3>THE MEDICAL, INVALID, AND GENERAL.</h3> - -<p>Almost the only objection which could be brought -with justice against the offices prior to 1841, was the -habitual practice of refusing delicate and doubtful -lives. Having, in the early part of their career, -taken all who came without inquiry, they rushed into -the opposite extreme, and refused all who were not -undeniably strong. There were indeed a few offices -which professed to insure invalids; but they had no -statistical information; and they rarely, if ever, accepted -a life unless it was obviously a good one. In -1833, Mr. Gilbart wrote, “We may hereafter have -tables that shall show the expectation of life, not -only in regard to people in health, but also to those -afflicted with every kind of disease;” and in 1841 -Mr. Neison established the above office, the success -of which has confirmed the opinion entertained of his -great ability.</p> - - -<h3>AGRICULTURAL INSURANCE COMPANY.</h3> - -<p>In the year of the South Sea bubble, a wit of the -day epigrammatised the proposal to insure horses and -cattle, little thinking it would ever be carried out. -Yet that some such institution was necessary may be -gathered from the number of local clubs of this character<span class="pagenum"><a id="Page_288">[288]</a></span> -established all over the country. These will -probably merge in some agricultural insurance company -like the above; and did this institution not -take human life into its business, it might be more -successful. The laws relating to life and to farming -stock are very different, and a company devoted to -the latter would be wiser than one which blends the -assurance of agricultural property against disease, -accident, fire, lightning, and the hailstorm, with -ordinary life assurance.</p> - - -<h3>THE RENT GUARANTEE SOCIETY.</h3> - -<p>This is another instance of the extension of insurance -to a purpose which at one time would have been -pronounced Utopian; and which, addressing itself -exclusively to landed proprietors, promises to collect -their income without trouble and without loss. -When a tenant knows that his rent will be rigorously -demanded, he feels that he must provide the money -or pay the penalty. There are no qualms of conscience -in companies; and though a man might try -to play upon the easy good nature of his landlord, -such tricks would be vain against them. Determined -habits of thrift are thus engendered, property becomes -more valuable, the landlord receives his rents -regularly, and business proceeds like a machine. It<span class="pagenum"><a id="Page_289">[289]</a></span> -may be said that the kindly feeling between landlord -and tenant disappears beneath the iron sway of a -public company; but however this may be regretted, -it is only an inevitable consequence of the changes -of capital and the consequent transfer of estates.</p> - - -<h3>RAILWAY PASSENGERS ASSURANCE COMPANY.</h3> - -<p>We owe to Mr. Glyn, when chairman of the London -and Birmingham Railway, the first light on the -subject of railway accidents. He proved that they -were far less by the iron road than by the coaching -system, and that the loss of life, in proportion to -the number which travelled, was incomparably less. -When the yearly railway reports were published, it -was at once seen that a society like the above would -have a fair chance of success. Some of the railway -companies have refused their aid, thinking it would -cause a decrease in railway travelling. Others, -again, have assisted, on the broader principle that -such an institution was sound. This company has -been severely tried; but it has been productive of an -incalculable amount of good, and the character of -the directors gives a perfect solidity to the concern. -In many cases it has been very effective in mitigating -the distress which sudden death so often entails -on survivors.</p> - -<p><span class="pagenum"><a id="Page_290">[290]</a></span></p> - - -<h3>ACCIDENTAL DEATH INSURANCE COMPANY.</h3> - -<p>There are hundreds of thousands who cannot -afford to be run over; to whom a lingering illness -would be misery; and whose death would scatter or -starve their families. A serious or severe accident -would probably deprive a clerk of his situation, and -a small tradesman of his business, leaving them with -no home but the hospital, and no hope but the -grave. The statistics of general accidents are difficult -to arrive at, but a small annual premium -would be an ample safeguard against such a casualty. -There is one point in which both this and the Railway -Assurance Company are wanting, and yet it -would be scarcely possible to amend the error. -There is in neither of them any inquiry as to the -health of the party assuring. Now it is obvious that -the very life of a confirmed invalid would be shaken -out of him where a strong and hale man would -receive no injury.</p> - - -<h3>LAW PROPERTY ASSURANCE AND TRUST -SOCIETY.</h3> - -<p>Of a somewhat similar character to the Rent Guarantee -is the above; and this is another admirable -idea if it can be carried out. Defective titles, being<span class="pagenum"><a id="Page_291">[291]</a></span> -assured, are rendered absolute and perfect by it. -The actual repayment of loans and mortgages is -guaranteed, while copyholds, lifeholds, and leaseholds -are made equal to freeholds for all purposes of sale or -mortgage.</p> - - -<h3>THE INDISPUTABLE LIFE COMPANY.</h3> - -<p>There is a principle involved in the title of this -Society which is much too important to be briefly dismissed. -The eagerness with which all companies -claim indisputability for their policies, is a significant -sign of public feeling on the subject. But the term -indisputable at present means nothing. To be effectual, -it should be absolute; and it is doubtful whether -it would not benefit the whole of the offices to adopt -indisputability as their motto. There is great evil, -and there is often great wrong, in a disputed claim; -but it seems sometimes a necessity. Where there is -conspiracy, fraud, or concealment, it is manifestly -unjust to pay a policy; but it costs far more to -resist it: and it is a point worthy mature consideration -whether an insurance so effected should not be -treated as a fraud, and punished criminally. It might -be taken as a rule, that where the policy is in the -possession of any one who has assisted in the fraud, -it should not be paid; but when it has fairly passed<span class="pagenum"><a id="Page_292">[292]</a></span> -into the hands of a third party, such a course might -be honourably avoided. It has been said by its opponents, -that at present there is no company which -issues policies really indisputable; that which is so -called, being only indisputable according as the conditions -on the face of the policy are maintained, and -that their title is open to dispute.</p> - -<p>There is, however, one merit due to this company. -It has opened a most important question, and one -that will eventually lead to indisputability in its -most extended form. It will also render other offices -more cautious in entering a court of justice, and it -can never hope to enter itself with success.</p> - -<p>That the power of a company is often vexatiously -and unjustly stretched to its utmost limit, in order to -escape the payment of a policy, the following will -prove. It is in itself a strong argument for indisputability.</p> - -<p>When railway travelling was in its infancy, one -John Scott, of Birmingham, being compelled to -journey by what was thought a dangerous conveyance, -was urged to insure his life as a provision for -his family. He offered himself to the Norwich -Union, answered all their questions, was examined by -their medical man, and reported as perfectly sound. -So good a life was he, that the agent of the Imperial<span class="pagenum"><a id="Page_293">[293]</a></span> -urged him to abandon his proposition with the Norwich, -offering him such inducements that he consented, -though it cost him six pounds to void his nearly concluded -bargain. He then went through all the forms -necessary with the Imperial, was reported again as a -perfectly sound life, and gladly accepted in May, 1840; -the policy being for 2000<em>l.</em> From 1840 to 1842, he -worked with an untiring energy and an incessant -labour utterly incompatible with failing strength, and -in that year he became a bankrupt. So excellent was -his health, that his assignees would not pay any more -premiums until they had ascertained that its market -value was equivalent to the payment, and they then -sold it by public auction to Mr. Beale for 135<em>l.</em>, the -Imperial itself bidding up to 100<em>l.</em> The next premium -was paid by Mr. Beale in May, 1843; and in the -following December, Mr. Scott died.</p> - -<p>The discharge of this policy was contested with a -determination sadly at variance with unsophisticated -justice; but because the Imperial had a witness to -prove that Mr. Scott had suffered from an ulcerated -sore throat in 1836, they refused to pay. And when -on the first trial the jury returned a verdict against -the company, they obtained a second trial on technical -grounds, which again they lost, and yet another, -which was once more decided against them; though<span class="pagenum"><a id="Page_294">[294]</a></span> -so great were the expenses to the claimant that he -gained nothing by his public purchase of the policy -granted on the faith of a respectable company.</p> - -<p>With a case like this, and there are many like it, -is not an indisputable company desirable?</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_295">[295]</a></span></p> - - - - -<h2>CHAP. XVI.<br /> - -<span class="mediumfont">A TRADITIONARY CHAPTER.</span></h2> - -<p class="chapter-subheading">THE BANKER’S MISTRESS.—THE ELDER NAPOLEON.—THE DECEIVED -DIRECTOR.—THE MURDERED MERCHANT.—THE CORN-LAW -LEAGUE AND THE CUTLER.—THE UNBURIED BURIED.—THE -DISAPPOINTED SUICIDE.—A NIGHT ADVENTURE.</p> - - -<p>The stories which are contained in the following -pages may in most cases be relied on as essentially -true. But they have been placed together in one -Chapter, because some are merely traditionary, because -the authority was not absolutely reliable in all -particulars, or because they might have been irrelevant -in the body of the work.</p> - -<hr class="tb" /> - -<p>A lady possessed of great personal attractions, and -calling herself by the convenient name of Smith, -applied to an office to insure the life of a woman -residing at the west end of the town. When asked -the reason, she replied, that she had advanced various -sums to place this person in business as a milliner, -and that to effect an insurance on her life was the -only way of securing the money in case her <i lang="fr" xml:lang="fr">protégée</i><span class="pagenum"><a id="Page_296">[296]</a></span> -should die. The life was a good one, the references -were satisfactory, and the policy was made out. In -a few months a fine carriage, with coachman and -footman in splendid livery, drove up to the door of -the insurance office, and Mrs. Smith made her -appearance to announce the death of the person -insured. Whether the lady overacted her part, or -whether the carriage excited suspicion, when it was -meant to inspire confidence, is uncertain; but the -officers of the society deemed it wise to inquire into -the circumstances of the death. The house where -the milliner had resided was mean; the immediate -neighbourhood was poor; there was no indication of -business to justify the assurance of her life for a -large sum. The actuary who made these investigations -went farther. He instituted an inquiry at the -other existing offices. At the very first he went to, -the same lady had effected an insurance on another -person’s life. At the next, and the next, and the -next, she was known; at each she had procured -policies on various lives for large sums, and wherever -this woman had effected an insurance, within three -months the person insured had died. There was -scarcely an office in town where she had not appeared, -and scarcely an institution which had not -paid her various sums of money on lives which had<span class="pagenum"><a id="Page_297">[297]</a></span> -suddenly fallen. Her father, her mother, her sister, -had been insured and had died, like all the rest, of -cholera, and this too at a time when the cholera was -not in active existence. Farther inquiries elicited -the information that she was the mistress of a -banker, whose carriage she employed to create an -effect, and whose life it is very fortunate she did not -insure.</p> - -<p>After mature deliberation, it was resolved to dispute -the payment; but as it was not thought advisable -to give the real reasons, a technical plea was -adopted. All the circumstances were, however, stated -in the brief; and as Sir James Scarlett read them, -when he saw how one life after another had fallen -directly it was assured, that acute and able man at -once exclaimed, “Good God! she must have murdered -them all.” But whether he were correct or -not in this, it was determined to adopt another -reason, and the trial came on. Although Sir James -had instructions not to exceed his brief, he could not -resist the temptation, and he hinted pretty broadly -that foul play must have been used under such extraordinary -circumstances. The advocate on the -other side enlisted the sympathies of the jury in his -“beautiful, delicate, and susceptible client;” he -wondered at the baseness of the thought which<span class="pagenum"><a id="Page_298">[298]</a></span> -charged such a crime on such a creature, and invoked -the vengeance of heaven on those who could entertain -so unworthy an idea.</p> - -<p>One surgeon had been referred to in all the cases, -and one surgeon had testified to the death of all. -The effect upon the court was appalling, as document -after document was handed him; and as with -each certificate the question was put, “Did you examine -this life?” and the answer came “I did;” and -“Did you certify to this death?” and still the same -reply was given: it seemed as if this series of sudden -and insidious deaths would never end. Both advocates -did their duty in this difficult case according to -the most approved rules of art; but that of the lady -was triumphant, and gained the verdict. Still the -office was determined not to pay, for the directors -felt certain they were right. The more inquiries -they made, the more extraordinary the circumstances -which were elicited, and they resolved to show -cause for a new trial. To do this effectually, they -found it advisable to abandon all technical objections, -to state broadly and boldly the moral grounds -on which they acted, and to insert all the causes -which made them thus declare war to the “knife.” -Never was a more serious list of charges brought -against one person; and no sooner did the lady find<span class="pagenum"><a id="Page_299">[299]</a></span> -that so grave an investigation was in progress, than -she left this kingdom for that of France, in the -capital of which she commenced a boarding-school, -and obtained the attendance of some respectable -girls, but to what account she turned them, and of -the scenes which were enacted, the less that is now -said the better.</p> - -<hr class="tb" /> - -<p>Many years had passed since the above facts occurred, -when the secretary of an insurance office at the -west end of the town, asked the actuary who had -elicited the above facts, whether his office was disposed -to take a fourth part of 10,000<em>l.</em> on the life of -a gentleman just proposed by a lady in connection -with some marriage settlements. An affirmative -answer was given, an appointment was made, and on -the following day the lady and her lover met the -officials at the office. The former was a person of -great personal attraction, elegantly dressed, and -elaborately ornamented; the latter had nothing -against him as a life, excepting perhaps that he -appeared a most inordinate fool. But the face of -the lady, though changed by the lapse of time, was -strangely like that of her who years before had -quitted England so abruptly; and the resemblance, -at first deemed ideal, grew so positive that suspicion<span class="pagenum"><a id="Page_300">[300]</a></span> -ripened almost into certainty. Nothing occurred, -however, on the part of the actuary to indicate it, -and when the cause of the insurance was demanded, a -marriage settlement was mentioned by the lady, who, -with a smile and a simper, pointed to the gentleman -by her side as the happy man. To the health of -the applicant there was no objection; and as he was -by no means overburdened with brains, a private -interview was sought with him, that he might, to use -an expressive phrase, be well pumped. This was -easily done. When he was asked whether he had -any property of his own, he said No; and it soon -appeared that he had acted as agent or traveller for -some wholesale house in the City, and that his -knowledge of the lady had arisen from the introduction -of a military gentleman, who thought it -would be a good match for him; and that on this -they had proceeded to some Zadkiel of the day, who -had predicted their union. All this gave no clue to -an insurable interest, and when he was asked what -reason there was to believe in her great possessions, -he pointed to her gay dress, and expatiated on her rich -jewellery. Such a fool was scarcely worth a thought, -so the place where the lady lodged was applied to; -but no information could be procured, excepting -that she was supposed to be “very respectable,” as<span class="pagenum"><a id="Page_301">[301]</a></span> -she had an abigail and footman. It is strange that, -notwithstanding the difficulties of the case, the woman -succeeded in obtaining the insurance. Before the -policies were duly made out, she wedded the gentleman -who wished to better his condition, and “all -went merry as a marriage bell!” One fine morning, -however, the woman where they and their servants -lodged, came down in a hurry to the office to say -that on the previous night they had all got tipsy together; -that there had been a violent quarrel among -them; and that the servant had been overheard to -accuse her mistress of prompting her to marry a man -to whom she was engaged, to induce him then to -insure his life, and afterwards to go to France, -where they could easily make away with him, and -receive the insurance money. In the blindness of -passion, occasioned by the quarrel, they went before -a magistrate and made statements of each other so -startling and so fearful, that the magistrate dismissed -the case, believing them all unworthy of credit; and -it may be presumed they did not tempt Providence -in a police office again.</p> - -<p>When this news reached the offices, they grew -alarmed, and taking advantage of the false position -in which she had placed herself, insisted on returning -the money she had paid them, demanding at the same<span class="pagenum"><a id="Page_302">[302]</a></span> -time the receipts she had taken. At first she indignantly -refused; but the offices not being very -delicate in the threats they held, this adventuress, as -extraordinary a person as ever figured in romance, -yielded the point, and released the companies from -the liabilities they had incurred.</p> - -<p>Her future life is quite uncertain, as she went -abroad with her husband, who after some time -returned with a constitution as shattered as if some -subtle and poisonous drug had been instilled into his -system. The lady went her way, was seen no more -in England, or at least speculated no more in insurances -on lives.</p> - -<hr class="tb" /> - -<p>A. B. was the proprietor of an entailed estate, and -much involved in his affairs. His life was insured -for the benefit of his creditors for 14,000<em>l.</em> In 1819 -he intimated by letters his intention of putting an -end to his existence in order to free himself from his -embarrassments, and soon after his clothes were -found on the banks of a deep river, from which it -was inferred that he had carried his intention into -effect.</p> - -<p>Circumstances, however, created a suspicion that -he was still alive, and the creditors kept the insurances -in force by continuing to pay the premium<span class="pagenum"><a id="Page_303">[303]</a></span> -for some years; but his existence, though believed, -could not be proved, and was not known for certain -until his death actually occurred in America upwards -of five years afterwards, previous to which the payments -had all ceased.</p> - -<hr class="tb" /> - -<p>The reader need hardly be told that the life of the -elder Napoleon was trafficked with by underwriters -during the whole of his wonderful career. The -various combinations in the funds, dependent on his -life, entered into by jobbers, made it very desirable to -insure it; and this was legitimate enough, as the -jobber had a tangible interest. In this way very -large speculations were hedged; and as every campaign -and every battle altered the aspect of affairs, -the premiums varied. Sometimes private persons -acted as insurers. Thus, in 1809, as Sir Mark -Sykes entertained a dinner party, the conversation -turned—as almost all thoughts then turned—to -Buonaparte, and from him to the danger to which -his life was daily exposed. The Baronet, excited -partly by wine and partly by loyalty, offered, on the -receipt of 100 guineas, to pay any one a guinea a -day so long as the French Emperor should live. -One of the guests, a clergyman, closed with the -offer; but finding the company object, said that if<span class="pagenum"><a id="Page_304">[304]</a></span> -Sir Mark would ask it as a favour, he would allow -him to be off his bargain. To a high-spirited man -this was by no means pleasant, and the Baronet refused. -The clergyman sent the 100 guineas next -day; and for three years Sir Mark Sykes paid 365 -guineas; when thinking he had suffered sufficiently -for an idle joke, he refused to pay any longer. The -recipient, not disposed to lose his annuity, brought an -action, which was eventually carried to the highest -legal authorities, and there finally decided in favour -of Sir Mark Sykes; the law lords not being disposed -to give the plaintiff a life interest in Buonaparte to -the extent of 365 guineas a year.</p> - -<hr class="tb" /> - -<p>A history of life assurance in Ireland is to be -found in its agencies; but there are many anecdotes -extant, of which the following are a specimen. The -statements from the sister country are always looked -at with suspicion, for they are too often at variance -with truth.</p> - -<p>Twenty years ago an insurance was effected on -the life of a gentleman, and in two months he died, -when a claim was made by a physician who had -opened the policy. The circumstances were investigated, -and it was ascertained that the party insured -was at the time the insurance was effected, and for<span class="pagenum"><a id="Page_305">[305]</a></span> -months previously, under the medical treatment of -the physician for a very serious illness: on a -<i lang="la" xml:lang="la">post-mortem</i> examination it was found that both -heart and lungs were diseased. The case was more -disgraceful, because the physician who had claimed -the money was medical adviser to the company with -which the insurance had been effected, and had -availed himself of his position to pass the invalid.</p> - -<hr class="tb" /> - -<p>The managing director of one of our best offices -was offered, while travelling in Ireland, an insurance -of 2000<em>l.</em> on the life of a gentleman; and an appointment -was made to meet next morning at breakfast. -The applicant looked strong, and seemed healthy; he -was gay, lively, and ready-witted; nothing appeared -amiss with him then; and when the necessary certificates -of health and sobriety were given, his life was -willingly accepted. In a year or two he died. In -the meantime information was received that his -habits were intemperate, that he was rarely sober, -and therefore that a deception had been passed on -the company. It was discovered that he had been -made up for the occasion, that he had dressed himself -smartly, assuming a lively air and aspect, and that he -had thus misled the gentleman by whom he had been -somewhat incautiously accepted. Such a case it was<span class="pagenum"><a id="Page_306">[306]</a></span> -determined to resist on every ground of public propriety -and private right. All necessary legal steps -were taken; “the lawyers prepared—a terrible show;” -and as it was of somewhat doubtful issue, it was deemed -wise to take the most eminent advice which could be -procured. That advice changed the determination -of the company; for it was said, that though in England -the deceased would have been pronounced a -most intolerable drunkard, yet no jury in all Ireland -would be found to pronounce a man intemperate who -only took a dozen glasses of whisky toddy nightly; -that intemperance in England was temperance in Ireland; -and that they had better pay their money than -risk a verdict. This they did; and doubtless were -very cautious in all Irish cases for the future.</p> - -<hr class="tb" /> - -<p>Great power must always lie with friends in recommending -assurance to those whose circumstances -demand it. An instance of this may be found in the -case of a well-known City merchant. The estate of -this gentleman was entailed on the male line; but -notwithstanding this, it was his chief fancy to improve -the property, to the detriment of the female -branches, the only mode of obviating this being to -insure his life to the extent of the sum spent in improvements. -Those to whom he was near and dear<span class="pagenum"><a id="Page_307">[307]</a></span> -felt the delicacy of the case, and hesitated to broach -the subject. His land agent was appealed to, a -shrewd and sensible Scotchman, and he took the first -opportunity of talking to Mr. —— on the subject, -who immediately acknowledged its importance, promising -to take the necessary steps on his first visit to -town. This he did; proposals were made to the extent -of 15,000<em>l.</em>; but some technicalities interfering -which prevented so large an amount being effected -in one day, only 10,000<em>l.</em> was insured; and the remainder -postponed “until a more convenient season.” -That season never arrived. In less than nine months -the beautiful village where he resided, rung with the -news that he and his wife were murdered; and -though money could not soften or subdue the grief -of such a tragedy, it tended at least to alleviate it.</p> - -<hr class="tb" /> - -<p>When the Corn Law league established its bazaar -at Covent Garden, among others who contributed to -the exhibition was a cutler from Sheffield, who visited -London to see this great political feature of the day. -Before he left the city, he applied to an office to -insure his life. He was examined by the medical -adviser; and though he seemed somewhat excited, -this was attributed to a prize which had been awarded -him, and he was accepted, subject to the ordinary<span class="pagenum"><a id="Page_308">[308]</a></span> -conditions of payment, with certificates of sobriety -and good habits. The same afternoon he left town, -arrived at Sheffield very late, and probably very -hungry, as he ate heartily of a somewhat indigestible -supper. By the morning he was dead. He had -fulfilled no conditions, he had paid no premium, he -had sent no certificate,—but he had been accepted; -and as his surgeon declared him to be in sound health -up to his visit to London, and as his friends vouched -for his sobriety, the money was unhesitatingly paid to -his widow, whose chief support it was for herself and -five children.</p> - -<hr class="tb" /> - -<p>C. D., in possession of a good entailed estate, but -largely in debt, had his life insured for the benefit of -his creditors for sums amounting to 10,000<em>l.</em></p> - -<p>In the autumn of 1834 his death was represented -as having occurred under peculiar circumstances at -an English watering-place, and after a very full investigation, -with the depositions of ten witnesses, -who swore to their belief of his having been drowned, -and of four additional, who proved his identity, the -insurance offices agreed to pay the sum in the -policies, under the stipulation that the money was -to be repaid if it should be discovered that he was -alive.</p> - -<p><span class="pagenum"><a id="Page_309">[309]</a></span></p> - -<p>Two years after his death was alleged to have -happened, it was rumoured that he had been seen, -and it soon became a matter of notoriety that he had -visited his native place and had made himself known -to one or two of his personal friends. The facts were -not denied, and the various sums were repaid to the -offices under the obligations granted by the parties -who had received the money; but the offices allowed -the surrender values of the policies as at the time of -their being brought to an end.</p> - -<hr class="tb" /> - -<p>At Berlin, on 24th November, 1848, the funeral -ceremonial of the Catholic Church, amid a numerous -circle of weeping friends and relatives, was performed -over the remains of one Franz Thomatscheck, who, -however, had taken care to insure his life, both in -London and in Copenhagen; and who, strange as it -may seem, was, in disguise, and impelled by a strange -curiosity, watching the progress of his own funeral. -On 29th September following, the public prosecutor, -the police authorities, and the priest of the Catholic -congregation, might be seen standing over the grave -to superintend the disinterment of the coffin, the -contents of which, when opened, proved to be heavy -stones, rotten straw, and an old board.</p> - -<p>A surgeon had been bribed to attest the death;<span class="pagenum"><a id="Page_310">[310]</a></span> -his brother had aided him in effecting his escape; -his disconsolate widow had followed the departed; -but the Austrian police, assisted by the telegraph, -had thwarted all these movements by consigning the -perpetrators of the fraud to the tender mercies of -the justice they had violated.</p> - -<hr class="tb" /> - -<p>In the eighteenth century a company was established, -the chief feature in which was the omission -of the clause which renders the policy void in the -event of suicide. A man went and insured his life, -securing the privilege of a free-dying Englishman, -and then took the insurers to dine at a tavern to -meet several other persons. After dinner he said to -the underwriters, “Gentlemen, it is fit you should -be acquainted with the company. These honest men -are tradesmen, to whom I was in debt, without any -means of paying but by your assistance, and now -I am your humble servant.” He pulled out a pistol -and shot himself.</p> - -<hr class="tb" /> - -<p>That the clause which makes the policies of -suicides void is not unnecessary, the following is an -additional testimony:—</p> - -<p>Among the passengers who filled one of our river -steamers on a fine summer’s evening, the movements<span class="pagenum"><a id="Page_311">[311]</a></span> -of one in particular were calculated to draw attention. -There was something so haggard in his face, -there was so continual an air of restlessness in his -person, that it was evident his mind was ill at ease. -He had chosen a position where scarcely any barricade -existed between him and the stream, and casting -his eyes rapidly round to see if he were observed, -he, almost at the same time that he placed a small -phial to his mouth, plunged into the water. An -alarm was instantly given, the vessel was stopped, -and the passengers saw him, true to the instincts of -humanity, struggling and buffetting with the water -for life. Assistance being soon rendered, the man -was saved; and it was afterwards discovered that, -having lost all his property, and not knowing how -to maintain an insurance into which he had entered -in more prosperous days, he had determined on -sacrificing himself for the welfare of those who were -dear to him. Believing that his death would be -attributed to accident, he had taken some prussic -acid at the moment he jumped in, unconscious that -the effect of this poison is neutralised by the sudden -immersion of the body in water.<a id="FNanchor_32_32" href="#Footnote_32_32" class="fnanchor">[32]</a> It is well to be<span class="pagenum"><a id="Page_312">[312]</a></span> -a chemist when one wishes to be a fraudulent -suicide.</p> - -<hr class="tb" /> - -<p>As the evening of an autumnal day began to close, -four men might have been seen hiring a boat at one -of the numerous stairs below Blackfriars bridge. -Their appearance was that of the middle order, but -the reckless daring which characterised their air and -manner, marked them of the class which lives by -others’ losses. By the time they had rowed some -distance up the river, the only light that guided -them was the reflection of the lamps which fringed -it; and no sooner were they shrouded by the darkness -of night, than, without any apparent cause, -the boat was upset, and the four were precipitated -into the Thames. They were close to land, and while -they buffetted the tide and made their way, they -hallooed lustily for help, which, as the shore was -now ringing with the noise of boats and boatmen -putting off to their assistance, was soon rendered. -Of the four who had started, only three landed together, -and great was their outcry for their lost -companion. The alarm was immediately given; all -that skill could do to recover their friend was tried, -but the night was too dark to render human aid of -much avail. It was pitiable to the bystanders to<span class="pagenum"><a id="Page_313">[313]</a></span> -witness the grief of those who were saved, who, -finding nothing more could be done, were obliged to -content themselves with offering a reward for the -body, coupled with a promise to return early in the -morning. They then went away, and the scene -resumed its ordinary quiet. A few hours after -this, at the dead of night, a second boat, with the -same men, pursued its silent and almost solitary -course up the river towards the scene of the previous -misfortune. With them was a large suspicious-looking -bundle, which, when they had arrived at a spot -suitable to their purpose, they lifted in their arms, -placing their horrible burden,—for it was the body of -a dead man,—where from their judgment and their -knowledge of the tide, the corpse of their friend -would be sought. Favoured by darkness and by -night, they accomplished their object, again rowing -rapidly down the stream to an obscure abode -in the neighbourhood of Greenwich. When morning -began to break, they returned once more to -the place which had witnessed their mysterious -midnight visit, where, with much apparent anxiety, -they asked for tidings of their companion. The -reply was what they expected. A body had been -found,—it was that which they had placed on the -strand,—and this they at once identified as that of<span class="pagenum"><a id="Page_314">[314]</a></span> -the friend who had been with them in the boat, and -for whom they had offered a reward. A coroner’s -jury sate upon the remains, a verdict of accidental -death was recorded, and the object of the conspirators -fairly achieved. That object was to defraud an -assurance office to a very large amount: for the -missing man had not been drowned; the grief expressed -was only simulated: and the body which had -been placed on the banks of the Thames had been -procured to consummate the deception.</p> - -<p>Against a fraud planned with so much art and -carried out with such skill, no official regulation -could guard; and when the papers containing the -report of the inquest and the identity of the body, -were forwarded to the office as the groundwork of a -claim for the representative of the deceased, not a -doubt could be entertained of its justice. It was -true that the claimant under his will was his mistress; -that his executors were the persons who perpetrated -the fraud, and were with him at the time -of the accident; but there were the broad and indisputable -facts to be disposed of, that the insured man -had met with a sudden and accidental death, and this -was attested by the verdict of a jury. The money -was paid, and with that portion of it which came -to the deceased, he went to Paris. In that gay<span class="pagenum"><a id="Page_315">[315]</a></span> -capital, with a mistress as expensive in her habits as -himself, the cash was soon spent; and so successful -had been the first attempt in this line, that it seemed -a pity for gentlemen thus accomplished to abandon -a mine so rich. Very shortly, therefore, after the -previous fraud, an application was made from Liverpool -to an office in London, to insure the life of a -gentleman for 2000<em>l.</em> The applicant was represented -as a commercial traveller, and permission was sought -to extend the privilege of travelling to America. -This insurance was effected, and when only a few -months had elapsed, information was received by the -company that the insured gentleman, while bathing -in one of the large American lakes, had been drowned; -that his clothes had been left on the banks of the -water where his body had been found; and in verification -of this, all the necessary documents were lodged -in due time. As the death and identity of the traveller -seemed clearly established, the office intimated -its readiness to pay the policy at the end of the accustomed -three months. But three months seemed a very -long period to those who felt the uncertain tenure by -which their claim was held, so, to induce the office to -pay ready money, they offered a large and unbusinesslike -discount. This, together, perhaps, with -some suspicions created by the manner of the applicant,<span class="pagenum"><a id="Page_316">[316]</a></span> -placed the office on its guard. Inquiries were -soon instituted, and discoveries made which induced -them to proceed still farther; but no sooner was it -found that a close inquisition was being entered on, -than the claim was abandoned, and the claimant seen -no more at the office.</p> - -<hr class="chap" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<p><span class="pagenum"><a id="Page_317">[317]</a></span></p> - - - - -<h2>CHAP. XVII.</h2> - -<p class="chapter-subheading">SCOTCH LIFE ASSURANCE.—SCOTTISH WIDOWS’ FUND—ITS DIRECTORS.—NORTH -BRITISH.—THE FARMER’S FATE.—EDINBURGH -LIFE.—LIST OF SCOTTISH COMPANIES.</p> - - -<p>For more than one century the life assurance companies -of England were sufficient for the requirements -of Scotland; and, whatever opinion may now -be formed of institutions founded on the proprietary -principle, yet life assurance would have been still -in its infancy without it. And the reason is obvious. -It was the great object of these societies to pay the -best dividend they could. To do this it was necessary -to spread their advantages far and wide, to -appoint agents in the remotest parts of the country, -to familiarise the public mind with its principles, and -to advertise its benefits wherever a village or district -was ignorant of them. By 1812, however, a proposal -was printed “for establishing in Scotland a -general fund for securing provision to widows, -sisters, &c., and for insuring capital sums on lives, -to be called the ‘Scottish Widows’ Fund and Equitable<span class="pagenum"><a id="Page_318">[318]</a></span> -Assurance Company.’” The northern reader -may not be averse to review the early career of his -favourite institution.</p> - -<p>Its prospectus rivals the mining advertisements of -the present day. The society was to be supported -by 2 Dukes, 1 Marquis, 6 Earls, 2 Viscounts, 2 -Lords, 2 Honourable Gentlemen, and 3 Baronets, as -patrons only. It boasted a Viscount as President. -There were 4 Vice-presidents, 27 Honorary Directors, -15 Ordinary Directors, and 20 Extraordinary -Directors. Its tables were founded on the Northampton -observations of Dr. Price, and the presumption -of improving money was at 4 per cent. per -annum. But though it was ushered in with so -brilliant an array of names, it would seem as though -they of Scotland were not to be thus tempted. It -requires hard work to place a new company on a -proper footing, and as dukes, marquises, or peers are -not usually hard workers, it took three years before -this company could commence its operations; and -while the little insignificant-looking prospectus which -announced its advent is dated 1812, the society itself, -ultimately attended with such brilliant results, was -not able to commence its operations till 1815. Its -first constitutional meeting was marked by a feature -perfectly in keeping with the devotional character of<span class="pagenum"><a id="Page_319">[319]</a></span> -Scottish life; yet it is strange and almost startling -to commercial England to read that “the venerable -and reverend Dr. Johnston, who presided in a manner -beautifully consistent with the exalted piety of his -own character and <em>the benevolent design of the institution</em>, -opened and consecrated the business by the -utterance of solemn prayer.”</p> - -<p>The difficulties incidental to mutual assurance -beset the new society. For a time its sole capital -was 34<em>l.</em> 12<em>s.</em> 6<em>d.</em> The most imminent danger must -have been apprehended by its friends; and until a -sufficient fund was accumulated, an accidental death -might have precipitated its ruin. Its early records -prove that great anxiety existed, that various precautions -were proposed, and that a natural alarm overshadowed -its progress. This fact is an exposition of -the chances which assurance companies on the mutual -principle must run, and of the dangers to which they -are liable during any abnormal or remarkable period, -when with no capital subscribed to back them, a -plague in the shape of the cholera, or an epidemic -like the small-pox, may prove that figures are not -facts, and upset the most elaborate calculations or -the most undeniable tables.</p> - -<p>The difficulties of the first year were surmounted, -and insurers came to its support. Year after year it<span class="pagenum"><a id="Page_320">[320]</a></span> -gathered strength, and the following table, giving -some idea of its progress for ten years, may not be -uninteresting to new companies:—</p> - - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="Scottish Widows’ Fund and Equitable[318] Assurance Company financials"> -<tr><td align="left"></td><td class="cellpadding5" align="center">1818.</td><td class="cellpadding5" align="center">1821.</td><td class="cellpadding5" align="center">1824.</td><td class="cellpadding5" align="center">1827.</td><td class="cellpadding5" align="center">1829.</td></tr> -<tr><td align="left"></td><td class="cellpadding5" align="center">£</td><td class="cellpadding5" align="center">£</td><td class="cellpadding5" align="center">£</td><td class="cellpadding5" align="center">£</td><td class="cellpadding5" align="center">£</td></tr> -<tr><td align="left">Annual prems.</td><td align="right">2,500</td><td align="right">5,100</td><td align="right">13,000</td><td align="right">22,000</td><td align="right">27,000</td></tr> -<tr><td align="left">Capital</td><td align="right">3,500</td><td align="right">15,000</td><td align="right">50,000</td><td align="right">95,000</td><td align="right">130,000</td></tr> -<tr><td align="left">Policies issued</td><td class="cellpadding4" align="right">68,219</td><td class="cellpadding4" align="right">140,000</td><td class="cellpadding4" align="right">380,000</td><td class="cellpadding4" align="right">620,000</td><td class="cellpadding4" align="right">770,000</td></tr> -</table></div> - -<p>A comparison was made between the English -Equitable and the Scottish Widows’ Fund during the -first eleven years of each. In the English Equitable -the assurances were only 230,000<em>l.</em>; in the Scottish -they amounted to 493,000<em>l.</em> The annual income of -the former was but 9500<em>l.</em>, of the latter 17,500<em>l.</em> -The English Society, at the end of eleven years, possessed -an accumulated capital of only 29,000<em>l.</em>, while -the Scottish boasted one of 72,000<em>l.</em> Such was the -success of an institution which could not even commence -business for three years after its advent, which -began with a capital of 34<em>l.</em> 12<em>s.</em> 6<em>d.</em>, and which, by -the evidence of its own manager, was doubtful of its -continuance for the first year or two of its existence. -That the Scottish Widows’ Fund has been serviceable -to thousands, and that it has stimulated other -companies, is undeniable; but it is equally undeniable -that it is a mere trading institution founded on mercantile<span class="pagenum"><a id="Page_321">[321]</a></span> -principles; and though its managers may -boast that “it is benevolent in its objects, that it -originated in no selfish views, and that it has been -the happy medium of diffusing comfort and security,” -it must still be borne in mind that such benevolence is -scarcely compatible with its interests; and when it is -remembered that its meetings were solemnised by -prayer, the thought naturally occurs whether revenue -or religion prompted the exercises, and whether the -quackery of trade was not mixed with the fervour -of worship. It is a financial company, governed -by its tables, guided by its physician, and ruled by -regulations which are and ought to be severely -enforced. Such was the first mutual institution of -Scotland.</p> - -<p>The first proprietary was in 1823, when the North -British Fire Company added life assurance to its -ordinary business. A company with a capital is often -of much service to the cause of life assurance in any -place where it is newly introduced. Where a mutual -society fears to expend its money, a proprietary company -will send its proposals to every journal in the -place; and by spreading its doctrines among a remote -but intelligent agricultural population—by -giving an absolute safety to the insured, by virtue of -its capital,—it is often productive of inestimable<span class="pagenum"><a id="Page_322">[322]</a></span> -good. And at this period the notion of insurance -was vague and indefinite. In agricultural districts -especially, even among the most thoughtful, it was -rarely heard of. One story will illustrate this more -than a hundred assertions. The agent of the Rock -Proprietary Company met in the north of Scotland -with an intelligent man who farmed some thousand -acres. This estate he delighted to cultivate; and -though the period was long before that when science -was employed by the agriculturist, he invested all -his profits in the estate he rented. With great and -proper pride he took the life assurance agent over -his land, pointed to his improvements, and boasted -his gains.</p> - -<p>When they returned to the farm-house, the agent, -who saw that if his host died, all that he had done -would be for his landlord’s benefit, only said to him, -“You must have spent a large sum on this estate.”</p> - -<p>“Many thousands,” was his curt reply.</p> - -<p>“And if you die,” was the shrewd retort, “your -landlord will receive the benefit, and your wife and -daughter be left penniless. Why not insure your -life?”</p> - -<p>The man rose, strode across the room, and drawing -himself up as if to exhibit his huge strength, said, -almost in the words of one of Sir Bulwer Lytton’s<span class="pagenum"><a id="Page_323">[323]</a></span> -heroes<a id="FNanchor_33_33" href="#Footnote_33_33" class="fnanchor">[33]</a>, “Do I look like a man to die of consumption?”</p> - -<p>The agent was not daunted—he persevered, explained -his meaning, enlisted the kindly feelings of -his host, persisted in asking him how much he would -leave his family, and at last induced him to listen. -They examined his accounts, and found that he could -spare about 120<em>l.</em> a year. The village apothecary -was almost immediately sent for, the life was accepted, -and policies were granted for 3000<em>l.</em></p> - -<p>In less than nine months this man, so full of -vigorous health, took cold, neglected the symptoms, -and died, leaving only the amount for which he had -assured his life to keep his family from want.</p> - -<p>There is much in favour of life assurance in this -little anecdote, and there is much too in favour of -the proprietary system, for a man like this would not -have risked his savings with a mutual insurance -society.</p> - -<p>The Edinburgh Life Assurance followed in 1823, -having been originated by the legal bodies in Edinburgh -at the same time, and very much upon the -same principles, with the Law Life in London. The -Scottish Union ensued in 1824, the Aberdeen in -1825, and the Scottish Amicable in 1826.</p> -<p><span class="pagenum"><a id="Page_324">[324]</a></span></p> -<p>It is one advantage of all new life companies that -they assist in forwarding a principle; and there is -another feature in them. In most other speculative -societies, their failure produces very painful results. -A railway sees its capital spent, and is obliged to -make farther calls upon its proprietors. An unsuccessful -canal company has only the certainty of -having fed and demoralised some thousands of stalwart -navigators in exchange for the ruin of its shareholders, -while the failure of a mine is the melancholy -close of many a bright hope. But it is not so bad -with a life assurance company. The insured—except -in offices originated with a fraudulent design, -such as the West Middlesex—has never yet been -deceived by the failure of a policy. To take Scotland -as an instance, many of the companies have not -been able to maintain their ground; but in no one -case has the policy-holder risked his premium or lost -his assurance. Thus the Scottish Life, when unable -to maintain itself, handed its business to the Mercantile, -which then became responsible. When the -Mercantile ceased to be an independent company, it -transferred its policies to the “Life Association.” -The “Scottish Masonic” and the “Bon Accord” -business was taken up by the Northern. In no instance, -therefore, has any legitimate company failed<span class="pagenum"><a id="Page_325">[325]</a></span> -in its engagements. The public has never been -scandalised with tales and traditions of wrong and -ruin. Nor has the improvident man been strengthened -in his improvidence, by being able to plead -losses which others have sustained. The progress of -the science in Scotland has been calm and equable. -Throughout all her districts, its agents are spreading -a knowledge of its benefits. There are enough and -to spare of companies; and while giving the following -list, it may be remarked, that all the offices which -are noticed below as having transferred their business, -were fairly and soundly originated. It is highly -creditable to Scotland, that directly they found they -were not successful, their business was at once handed -over to other companies:—</p> - -<p><span class="pagenum"><a id="Page_326">[326]</a></span></p> - - -<div class="center"> -<table class="toc" border="0" cellpadding="4" cellspacing="0" summary="history of Scottish life companies"> -<tr><td class="toctitle">Scottish Widows’ Fund (mutual). This was the first life office in Scotland</td> -<td class="tocpage">1815</td></tr> -<tr><td class="toctitle">North British (mixed). Commenced fire in</td><td class="tocpage">1809</td></tr> -<tr><td class="toctitle"><span class="quotepadding8">”</span> <span class="quotepadding8">”</span> <span class="quotepadding8">”</span> life in</td><td class="tocpage">1823</td></tr> -<tr><td class="toctitle">Edinburgh (mixed). Nine-tenths of the profits allotted to the policies</td><td class="tocpage">1823</td></tr> -<tr><td class="toctitle">Scottish Union (mixed), divides two-thirds of the nett profits every five years</td><td class="tocpage">1824</td></tr> -<tr><td class="toctitle">Standard Life (mixed). Commenced under the title of the Life Insurance Company of Scotland, and took its present name in 1832</td><td class="tocpage">1825</td></tr> -<tr><td class="toctitle">Scottish Provincial (mixed). Commenced under the title of the Aberdeen Fire and Life Insurance Office, and took its present name in 1852. In 1840, policies with a right to share in the profits were first issued</td><td class="tocpage">1825</td></tr> -<tr><td class="toctitle">Scottish Amicable (mutual)</td><td class="tocpage">1826</td></tr> -<tr><td class="toctitle">Scottish Equitable (mutual)</td><td class="tocpage">1831</td></tr> -<tr><td class="toctitle">Caledonian (mixed). Originally fire</td><td class="tocpage">1805</td></tr> -<tr><td class="toctitle"><span class="quotepadding9">”</span> <span class="quotepadding9">”</span> Extended to life</td><td class="tocpage">1833</td></tr> -<tr><td class="toctitle">Five-sixths of the profits allotted to the policies.</td></tr> -<tr><td class="toctitle">Northern (mixed). Commenced under the title of the North of Scotland, and took its present name in 1848. Divides 90 per cent. of its profits among the policy-holders</td><td class="tocpage">1836</td></tr> -<tr><td class="toctitle">Scottish Provident (mutual)</td><td class="tocpage">1837</td></tr> -<tr><td class="toctitle">City of Glasgow (mixed). Annual investigations and yearly bonuses. At the end of five years a policy-holder may live out of the limits of Europe without extra premium</td><td class="tocpage">1838</td></tr> -<tr><td class="toctitle">Life Association of Scotland (mixed). Commenced as the Edinburgh and Glasgow, and took its present name about 1841</td><td class="tocpage">1839</td></tr> -<tr><td class="toctitle">English and Scottish Law Life (mixed)</td><td class="tocpage">1839</td></tr> -<tr><td class="toctitle">National (mixed). Commenced fire</td><td class="tocpage">1841</td></tr> -<tr><td class="toctitle"><span class="quotepadding10">”</span> <span class="quotepadding10">”</span> <span class="quotepadding10">”</span> life</td><td class="tocpage">1843</td></tr> -<tr><td class="toctitle">Four-fifths of the profits allotted to the policies.</td></tr> -</table></div> - -<p><span class="pagenum"><a id="Page_327">[327]</a></span></p> - -<p class="boxcenter"><em>Offices that have transferred their Business.</em></p> - -<div class="center"> -<table class="toc" border="0" cellpadding="1" cellspacing="0" summary="Scottish life company transfers"> -<tr><td class="toctitle">Bon Accord, Life</td><td class="tocpage">1845</td></tr> -<tr><td class="toctitle1">Transferred to <em>the Northern</em> in 1849.</td></tr> -<tr><td class="toctitle">Commercial, Life (Head Office in Glasgow)</td><td class="tocpage">1840</td></tr> -<tr><td class="toctitle1">Transferred to <em>the Standard</em> in 1846.</td></tr> -<tr><td class="toctitle">East of Scotland, Life (Head Office in Dundee) 1844</td></tr> -<tr><td class="toctitle1">Transferred to <em>the Colonial</em> in 1852.</td></tr> -<tr><td class="toctitle">Experience, Life</td><td class="tocpage">1843</td></tr> -<tr><td class="toctitle1">Transferred to <em>the Standard</em> in 1850.</td></tr> -<tr><td class="toctitle">Friendly, Fire</td><td class="tocpage">1720</td></tr> -<tr><td class="toctitle1">Transferred to <em>the Sun</em> in 1847.</td></tr> -<tr><td class="toctitle">Hercules, Fire and Life, Fire</td><td class="tocpage">1809</td></tr> -<tr><td class="toctitle"><span class="quotepadding10">”</span> <span class="quotepadding10">”</span>Life</td><td class="tocpage">1832</td></tr> -<tr><td class="toctitle1">Transferred to <em>the Scot. Union</em>, life in 1835, and fire in 1849.</td></tr> -<tr><td class="toctitle">Mercantile, Life</td><td class="tocpage">1844</td></tr> -<tr><td class="toctitle1">Transferred to <em>the Life Association</em> in 1850.</td></tr> -<tr><td class="toctitle">Scottish Life and Guarantee, Life</td><td class="tocpage">1844</td></tr> -<tr><td class="toctitle1">Transferred to <em>the Mercantile</em> in 1848.</td></tr> -<tr><td class="toctitle">Scot. Masonic (originally Freemason’s, Life)</td><td class="tocpage">1844</td></tr> -<tr><td class="toctitle1">Transferred to <em>the Northern</em> in 1848.</td></tr> -</table></div> - -<p>Thus, in Scotland one office was established in -1815; five from 1816 to 1825; three from 1826 to -1838; six from 1836 to 1845.</p> - -<p>The united incomes of these are not far short of -1,400,000<em>l.</em>; and the assurances now in force amount -to about 33,000,000<em>l.</em></p> - -<p class="center" style="margin-top:1em">THE END.</p> - -<div class="chapter"></div><!--Page break for ePub--> - -<hr class="tb" /> - -<p class="center"> -<span class="smcap">London</span>:<br /> -<span class="smcap">Spottiswoodes</span> and <span class="smcap">Shaw</span>,<br /> -New-street-Square.<br /> -</p> - -<hr class="tb" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<div class="footnotes"><h3>FOOTNOTES:</h3> - -<div class="footnote"> - -<p><a id="Footnote_1_1" href="#FNanchor_1_1"><span class="label">[1]</span></a> When asked what benefit it would produce, he replied, -“C’est pour perfectionner l’art des arts, l’art de penser!” This, -at first regarded as a <i lang="fr" xml:lang="fr">mot</i>, became a proverb.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_2_2" href="#FNanchor_2_2"><span class="label">[2]</span></a> The title of this essay is “Waardye van Lyf-Renten naer -proportie van Losrenten;” or, the “Value of Life Annuities in -Proportion to Redeemable Annuities.”</p></div> - -<div class="footnote"> - -<p><a id="Footnote_3_3" href="#FNanchor_3_3"><span class="label">[3]</span></a> There was no just cause for surprise in these periodical -visitations. The thinkers of the day understood the connection -between cleanliness and health; and the following will show -that such as these hit on the right source of pestilence:— -</p> -<p> -“I often wonder,” says Erasmus in a letter to Dr. Francis, -“and not without concern, whence it comes to pass, that England -for so many years hath been continually afflicted with pestilence, -and above all, with the sweating sickness, which seems -in a manner peculiar to that country.... They glaze a -great part of the sides with small panes, designed to admit the -light and exclude the wind; but these windows are full of -chinks, through which enters a percolated air, which stagnating -in the room, is more noxious than the wind. -</p> -<p> -“As to the floors, they are usually made of clay, covered -with rushes that grew in fens, which are so slightly removed -now and then, that the lower part remains sometimes -for twenty years together, and in it a collection of spittle, -vomit, urine of dogs and men, beer, scraps of fish, and other -filthiness not to be named. Hence, upon change of weather, a -vapour is exhaled very pernicious, in my opinion, to the human -body.”</p></div> - -<div class="footnote"> - -<p><a id="Footnote_4_4" href="#FNanchor_4_4"><span class="label">[4]</span></a> The first parish registers were kept in England in 1538, -in consequence of an injunction from Thomas Cromwell. They -had been kept for a long time previous in Augsburg and Breslau, -though it was not till the beginning of the 17th century -that they were general in Europe. It is worth mentioning, -that long ere this, the paternal government of Peru kept a -register of all the births and deaths throughout the country; -exact returns of the population being made every year by -officers appointed by the state.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_5_5" href="#FNanchor_5_5"><span class="label">[5]</span></a> About as much silver as is now coined into 3<em>l.</em> 1<em>s.</em> 11<em>d.</em></p></div> - -<div class="footnote"> - -<p><a id="Footnote_6_6" href="#FNanchor_6_6"><span class="label">[6]</span></a> Equal in weight to about 2<em>l.</em> 1<em>s.</em> 3<em>d.</em> of our silver coinage.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_7_7" href="#FNanchor_7_7"><span class="label">[7]</span></a> Equal in weight to 10<em>s.</em> 4<em>d.</em> of our present silver coinage.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_8_8" href="#FNanchor_8_8"><span class="label">[8]</span></a> The following figures will give some idea of the chances of -life as estimated by Dr. Halley:— -</p> - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="Halley mortality table"> -<tr><td align="center">Out of 1000 born,</td><td align="right">661</td><td align="center">will be living at</td><td align="left">10</td><td align="left">years of age.</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">628</td><td align="center">”</td><td align="left">15</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">598</td><td align="center">”</td><td align="left">20</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">567</td><td align="center">”</td><td align="left">25</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">531</td><td align="center">”</td><td align="left">30</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">490</td><td align="center">”</td><td align="left">35</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">445</td><td align="center">”</td><td align="left">40</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">397</td><td align="center">”</td><td align="left">45</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">346</td><td align="center">”</td><td align="left">50</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">292</td><td align="center">”</td><td align="left">55</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">242</td><td align="center">”</td><td align="left">60</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">192</td><td align="center">”</td><td align="left">65</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">142</td><td align="center">”</td><td align="left">70</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">88</td><td align="center">”</td><td align="left">75</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">41</td><td align="center">”</td><td align="left">80</td><td align="center">”</td></tr> -<tr><td align="center">”<span class="quotepadding1">”</span></td><td align="right">19</td><td align="center">”</td><td align="left">84</td><td align="center">”</td></tr> -</table></div> -</div> - -<div class="footnote"> - -<p><a id="Footnote_9_9" href="#FNanchor_9_9"><span class="label">[9]</span></a> The total amount paid by each company was 150,000<em>l.</em></p></div> - -<div class="footnote"> - -<p><a id="Footnote_10_10" href="#FNanchor_10_10"><span class="label">[10]</span></a> By Kersseboom’s table, out of 817 persons of 20 years of -age, all living at the same time— -</p> - - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="Kersseboom mortality table"> -<tr><td align="right">711</td><td align="center">will have lived to</td><td align="left">30</td><td align="center">years</td></tr> -<tr><td align="right">605</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">40</td><td align="center">”</td></tr> -<tr><td align="right">507</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">50</td><td align="center">”</td></tr> -<tr><td align="right">382</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">60</td><td align="center">”</td></tr> -<tr><td align="right">245</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">70</td><td align="center">”</td></tr> -<tr><td align="right">100</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">80</td><td align="center">”</td></tr> -<tr><td align="right">10</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">90</td><td align="center">”</td></tr> -</table></div> - -<p> -By De Parcieux’s, it appears that out of 814 persons of 20— -</p> - - -<div class="center"> -<table border="0" cellpadding="1" cellspacing="0" summary="De Parcieu mortality table"> -<tr><td align="right">734</td><td align="center">will have lived to</td><td align="left">30</td><td align="center">years</td></tr> -<tr><td align="right">657</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">40</td><td align="center">”</td></tr> -<tr><td align="right">581</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">50</td><td align="center">”</td></tr> -<tr><td align="right">463</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">60</td><td align="center">”</td></tr> -<tr><td align="right">310</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">70</td><td align="center">”</td></tr> -<tr><td align="right">118</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">80</td><td align="center">”</td></tr> -<tr><td align="right">11</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">90</td><td align="center">”</td></tr> -<tr><td align="right">1</td><td align="center">”<span class="quotepadding2">”</span></td><td align="left">94</td><td align="center">”</td></tr> -</table></div> -</div> - -<div class="footnote"> - -<p><a id="Footnote_11_11" href="#FNanchor_11_11"><span class="label">[11]</span></a> In 1768, Mr. Mores quarrelled with and separated from the -society.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_12_12" href="#FNanchor_12_12"><span class="label">[12]</span></a> Sir Richard was a notability of those days, and divided -civic popularity with Beckford, whose colleague he was in the -representation of London in 1761. He was made Doctor of -Civil Laws by Oxford University, a custom which would have -been perhaps more honoured in the breach than the observance; -and we owe Blackfriars’ Bridge greatly to the energy -and exertions of Sir Richard Glyn, Knight, Baronet, and Lord -Mayor, and—more honourable title still,—director of our first -purely mutual life assurance office. We look in vain for such -names as Glyn, Gosling, Ladbroke, or Beckford, among the -sheriffs and aldermen of the present day.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_13_13" href="#FNanchor_13_13"><span class="label">[13]</span></a> That the safety of this Society was doubtful may be -partly judged from the fact, that half the policies issued within -the first twenty-five years had been abandoned, probably from -doubt of their ultimate payment.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_14_14" href="#FNanchor_14_14"><span class="label">[14]</span></a> 14 Geo. 3. c. 48.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_15_15" href="#FNanchor_15_15"><span class="label">[15]</span></a> “Never grant life annuities to old women,” Gideon would -say; “they wither, but they never die;” and if the proposed annuitant -coughed on approaching the room door, Gideon would -call out, “Ay, ay, you may cough, but it shan’t save you six -months’ purchase.”—“Chronicles and Characters of the Stock -Exchange. By John Francis.” 2nd. Edition.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_16_16" href="#FNanchor_16_16"><span class="label">[16]</span></a> The present Marquis of Lansdowne.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_17_17" href="#FNanchor_17_17"><span class="label">[17]</span></a> -</p> - -<p> -Birmingham.<br /> -Commercial.<br /> -Egis.<br /> -Hercules.<br /> -Kent.<br /> -London Commercial.<br /> -Marine.<br /> -Minerva.<br /> -National.<br /> -Philanthropic.<br /> -Protector.<br /> -Rainbow.<br /> -Royal Institution.<br /> -St. James’s.<br /> -St. Patrick.<br /> -Shamrock.<br /> -South Devon.<br /> -Southwark and Surrey.<br /> -Star.<br /> -Sussex.<br /> -</p> - -</div> - -<div class="footnote"> - -<p><a id="Footnote_18_18" href="#FNanchor_18_18"><span class="label">[18]</span></a> The following table will show the precise action of an investment -of 100<em>l.</em> on a nominee aged 90:— -</p> - - -<div class="center"> -<table style="max-width:30em" border="0" cellpadding="1" cellspacing="0" summary="investment returns"> -<tr><td align="left"></td><td align="right">£</td><td align="right"><em>s.</em></td></tr> -<tr><td align="left">100<em>l.</em> paid on Jan. 4. 1830, would produce</td></tr> -<tr><td align="left"><span class="quotepadding3">"</span><span class="quotepadding3">"</span>on 6th April 1830</td><td align="right">31</td><td align="right">0</td></tr> -<tr><td align="left"><span class="quotepadding3">"</span><span class="quotepadding3">"</span>on 10th Oct. 1830</td><td align="right">31</td><td align="right">0</td></tr> -<tr><td align="left"><span class="quotepadding3">"</span><span class="quotepadding3">"</span>on April 5th 1831</td><td align="right">31</td><td align="right">0</td></tr> -<tr><td align="left"></td><td colspan="2" align="right">———</td></tr> -<tr><td align="left"></td><td align="right">93</td><td align="right">0</td></tr> -<tr><td align="left">If the nominee lived only one day longer, say to April 6th, 1831, there would be due an additional</td><td align="right">15</td><td align="right">10</td></tr> -<tr><td align="left"></td><td colspan="2" align="right">———</td></tr> -<tr><td align="left"></td><td align="right">£108</td><td align="right" style="padding-left:0.5em">10</td></tr> -<tr><td align="left"></td><td colspan="2" align="right">———</td></tr> -</table></div> - -<p> -Thus the capital and interest at <span class="nowrap">8 <span class="fnum">1</span>/<span class="fden">2</span></span> per cent. were returned -in one year, three months, and two days.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_19_19" href="#FNanchor_19_19"><span class="label">[19]</span></a> One gentleman thinking that the Greenwich pensioners -would afford good subjects, went to the hospital with that purpose. -But they all gave their ages at 90 and above, and -when the parish registers were searched for the dates of their -birth, it was discovered that they had exaggerated, in some -cases ten and in others twenty years. Every one claimed the -distinction of being nonogenarian, and the consequence was -that the stock-broker was completely baffled in his attempt.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_20_20" href="#FNanchor_20_20"><span class="label">[20]</span></a> It is difficult to avoid blaming the offices. These large -and varied insurances were, probably, known to every company -in existence. The reasons assigned should have been tested, and -very little trouble would have shut the door of every office in -London on Wainwright and his companions. For so much -money to be risked on the life of a girl of twenty-one, described -as “remarkably healthy, whose life was one of a thousand,” and -that too for only two years, merely because a nominal plea of -insurable interest was given, was neglectful and almost culpable; -although there is some extenuation in the fact that this -lady assisted to deceive by uttering, or at least coinciding in a -false statement to Mr. Ingall, at the Imperial, is certain. The -slightest inquiry would have discovered that Wainwright was -a beggar, that this young lady had no direct or indirect interest in -any property whatever, and that the premiums must have been -paid with some sinister purpose by a man steeped in difficulties -and overwhelmed with debt, on the life of a healthy but most -unhappy girl, entirely under his control.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_21_21" href="#FNanchor_21_21"><span class="label">[21]</span></a> “Lucretia.”—By Sir E. B. Lytton.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_22_22" href="#FNanchor_22_22"><span class="label">[22]</span></a> This man appears to have been an innocent tool in the -hands of his acute brother-in-law.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_23_23" href="#FNanchor_23_23"><span class="label">[23]</span></a> This was first pointed out by the Quarterly Review.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_24_24" href="#FNanchor_24_24"><span class="label">[24]</span></a> The following form extracts from the above articles of Mr. -Mackenzie:—“Some time ago there was sent to this office a -series of advertisements in favour of the Independent and -West Middlesex Insurance Company, which were entered -and paid for in the regular course of business. We are -cautious about quack medical advertisements, none of them -that we are aware has ever been admitted into our columns; -but it never entered into our heads for one moment, that an -insurance company professing to be incorporated by special -acts of parliament, was in truth a quack company, got up for -the premeditated purpose of imposing on the public in matters -of fire and life. Hence the advertisements of this company -glided through our columns from time to time to time.... -But we were astonished lately to learn that this was a spurious -insurance company hatched in London two years ago.” “Under -these circumstances, our duty, we humbly conceive, is at once -plain and decisive, and therefore we proceed to discharge it for -the sake of the public, whose faithful and unflinching servants -we at all times profess to be. In a word, we raise our voice -and warn the public against this Independent West Middlesex -Insurance Company. It is a false and fictitious company.” -“In their polices of insurance they take care to provide that -‘the capital stock and funds of the said company shall alone be -answerable to the demands thereupon under this policy.’ Why, -what is the value of their capital stock and funds, if as we say -the parties themselves forming the said company are utterly -worthless, being in fact no better than a parcel of tricksters in -London, disowned, or repudiated, or condemned by every -respectable person to whom reference is made? There can -scarcely, we think, be anything so base or so nefarious as taking -premiums from unsuspecting people, and making them believe -they are secured against the contingencies of life, or the risk of -fire, and yet mocking them in their calamities when the bubble -bursts.”</p></div> - -<div class="footnote"> - -<p><a id="Footnote_25_25" href="#FNanchor_25_25"><span class="label">[25]</span></a> The cholera first visited England about the beginning of -August 1348. From the seaport towns on the coasts of Dorsetshire, -Devonshire, and Somersetshire, it ran to Bristol, and -the men of Gloucester established a quarantine between the -two places. But this “familiar fury” mocked then as now at -the quarantine, and walking in darkness appeared in Gloucestershire -to the horror of its inhabitants. From thence it passed -by way of Oxford to London, finally spreading all over England, -“scattering everywhere such ruin and desolation that of -all sorts hardly the tenth person was left alive.” -</p> -<p> -In the church and churchyard of Yarmouth, 7052 were -buried in one year. Within six months, in the city of Norwich -more than 57,000 died. In London, death was so outrageously -cruel that every day saw twenty, sometimes forty, and sometimes -sixty or more dead bodies flung into one pit. The -churchyards became crowded. Fields and additional places of -burial were set apart, and these soon failed to suffice; the -number of the dead increasing so rapidly that “they were fain to -make deep ditches and pits very broad, wherein they laid a -range of carcasses and a range of earth upon them, and then -another range of dead bodies,” and in this manner the people, -except those of the better sort, were placed in their long -home. The cattle died in hedges and ditches by thousands -for want of men to attend them. All suits and pleadings in -the King’s Bench and other places ceased. The sessions of -parliament were stopped. England and France forgot for a time -that they were “natural enemies.” County, city, and town witnessed -solemn prayers and public processions for days together, -and God was implored in highway and in byway to “sheath -his angry sword and preserve the residue from the devouring -pestilence.” When this pestilence which yet yearly threatens -our coast had passed away, it was found that its prey had been -chiefly old men, women, and children of the “common sort of -people,” and that but few of the nobility of the land had been -seized by it. Property was for a long period depreciated: that -which was previously sold for forty shillings, only fetched a -mark; and the Scots in scorn invented a new oath, swearing in -contempt “by the foul deaths of the English.”</p></div> - -<div class="footnote"> - -<p><a id="Footnote_26_26" href="#FNanchor_26_26"><span class="label">[26]</span></a> Letter to the Right Hon. Joseph W. Henley, M.P.—By -Robert Christie.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_27_27" href="#FNanchor_27_27"><span class="label">[27]</span></a> The Equitable even was regarded with a very suspicious -eye by the Court of Chancery soon after its commencement, -and the names of bankers and merchants as directors, great in -their day and generation, did not prevent the proprietors of the -Royal Exchange, the Amicable, and the London Assurance -corporations from predicting its failure.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_28_28" href="#FNanchor_28_28"><span class="label">[28]</span></a> The public is greatly indebted to Mr. Hartnoll, the avowed -editor, and Mr. Pateman, the publisher of the Post Magazine, -for their great exertions in the cause of Life Assurance.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_29_29" href="#FNanchor_29_29"><span class="label">[29]</span></a> “Assurance Companies’ Accounts,” p. 43.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_30_30" href="#FNanchor_30_30"><span class="label">[30]</span></a> “That the said Commissioners shall have full power to examine -all books, at all seasonable times, of such bankers as -issue notes, and to take copies or extracts from any such books -or accounts.”—History of the Bank of England, its Times and -Traditions.—By John Francis: 2 vols. 3rd edition. Longman, -Brown, and Co.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_31_31" href="#FNanchor_31_31"><span class="label">[31]</span></a> The Morning Chronicle.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_32_32" href="#FNanchor_32_32"><span class="label">[32]</span></a> “I tell the tale as ’twas told to me.” It has, however, been -suggested that he failed to take the dose in his extreme agitation.</p></div> - -<div class="footnote"> - -<p><a id="Footnote_33_33" href="#FNanchor_33_33"><span class="label">[33]</span></a> Night and Morning.</p></div></div> - -<hr class="tb" /> - -<div class="chapter"></div><!--Page break for ePub--> - -<div class="transnote"> -<h2 id="TN_end" style="margin-top: 0em">Transcriber’s Notes:</h2> - -<p>The original of this book contained a catalog, dated March 31, 1853, -of new works in general and miscellaneous literature published by -Messrs. Longman, Brown, Green, and Longmans, Paternoster Row, London, -that is available as the separate Project Gutenberg EBook #49620.</p> - -<p>Footnotes have been moved to the end of the text and relabeled -consecutively through the document.</p> - -<p>Punctuation has been made consistent.</p> - -<p>Variations in spelling and hyphenation were retained as they appear in -the original publication, except that obvious typos have been -corrected.</p> - -<p>Additional comments:</p> - -<p><a href="#Ref_15">p. 15</a>: Based on the preceding table, the 60 in the second table should -be 66 and the 80 should be 86.</p> - -<p><a href="#Ref_169">p. 169</a>: Demerell may be a misspelling of Damerel (at Stoke Demerell, in -Devonshire)</p> - -</div> - - - - - - - - -<pre> - - - - - -End of Project Gutenberg's Annals, Anecdotes and Legends, by John Francis - -*** END OF THIS PROJECT GUTENBERG EBOOK ANNALS, ANECDOTES AND LEGENDS *** - -***** This file should be named 50380-h.htm or 50380-h.zip ***** -This and all associated files of various formats will be found in: - http://www.gutenberg.org/5/0/3/8/50380/ - -Produced by deaurider, Craig Kirkwood, and the Online -Distributed Proofreading Team at http://www.pgdp.net (This -file was produced from images generously made available -by The Internet Archive.) - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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