CO129-346 - Governor Sir Lugard - 1908 [1-3] — Page 197

134

5. de

WAS LE

Bur ne bore the

*

favoren

atra

8

10

Beaufort oals

Coleg

F

{

testh ban

07

A

mt moi nqmo0

#-

&

suil noU9E

.botha

Kino"

Te $6

bs eminfo" vs.!

Atka darb nood Jun urse Holm. auf onely mudad avut of mon

wanna und timidne tefielu s doh diakibar cult #I

५

ut egond bus,avew inene tip ul troll wil Jasnt astindeo3

ww criners vode of Bårvag

RUNESY

*

Company, and the amount divided amongst the policy holders. This

clause is copied verbatim from the British Act, but here it

has not been found to work well, and the Board of Trade has

been accustomed to insist on the balance brought forward from

the last preceding valuation period being shown separately frem

the profits or the quinquennium. But the amount of profit that

gees to the shareholders is not asked for and here that is

admitted to be a great defect in aur Act. It is often impossible

to say how much the shareholders take out of the life fund, and

that very important information should be obtainable. This

leads me to point out that a very much more complete separation

of the interests of the policy holders and the shareholders

is urgently required, and I would call attention to the suggest-

-ed forms of account on pages 25 to 27 of my Institute paper.

These I think provide for everything, and are calculated to

draw out all the information that it is important for the

public to possess. Of course the forms would have to be re-

considered in detail in the light of experience of the past

few years, but substantially they are what I still advocate.

In this country there is a difference of opinion regarding

them, because some of the great Companies think that they would

give too much trouble, but they really rive scarcely more trouble

than the Returns at present asked for, and from the point of

view of the public, I think they should be insisted upon. Then

as to the Balance Sheet, I would call your attention to what I say on page 28 of my Institute paper. Here it is very desirable that there should be more separation of the interests of share-

-holders and policy-holders, and this fact has been very streng- -ly emphasized recently in the case of mixed Companies by the

great San Francisce disaster.

S

Continuing the criticism of qucstien 9 of

the Fifth Schedule, in these days of endowment assurances they should be provided for, but apparently the clause as it stands refers only to whole life policies. Then our Act of 1870 was passod

es ? noitasun