226 ON MUTUAL ASSURANCE, 



being the same. But it falls far short of settling the question of 

 the apportionment of expenses so fully, as the strict mathematical 

 equity which the system proposes to carry out seems to require. 

 It would probably be found, upon a careful examination, that the 

 actual expense to the society occasioned by any policy has little, 

 if any, dependence upon the amount assured ; but that the ex- 

 pense is pretty nearly the same upon one policy as upon another. 

 Excepting, perhaps, in very large societies, where the expenses 

 are relatively light, it would in many cases be found that if the 

 policies for small amounts were charged with the expenses which 

 they had really occasioned, there would be nothing of profit left 

 to them, although a considerable general surplus migiit exist. It 

 might and probably would appear in some cases, that such 

 policies had been an actual loss to the society. In seeking to 

 determine the real contributions to surplus by the several 

 members, there is no reason why these considerations should be 

 neglected, and their omission seems to render the results obtained 

 of no practical value. 



To carry out the method explained by Mr. Homans, it would 

 be necessary at an investigation to form a new table of mortality, 

 upon the actual experience of the Society since the former 

 investigation. It is difficult to see how, in so short a time and 

 with so limited a number of lives, any table could be framed of 

 any value whatever ; but without such a table it would be 

 impossible to apportion the actual losses or cost of insurance 

 during the interval, in accordance with the assumed principle. 

 The losses might be apportioned in the same proportion as if the 

 assumed rates of mortality had been actually experienced ; and 

 this would seem the only practicable method in any case where 

 the number of members is too small to form the basis of a new 

 mortality table ; but it is to some extent arbitrary, and very 

 imperfectly in accordance with the principle upon which the 

 system rests. 



There is another consideration which cannot be consistently 

 neglected, if a really accurate estimate is to be formed of the 

 contributions of the several members of a society to the surplus 

 fund. It is well known that it is much easier to find safe and 

 good investments for smaller sums than for larger ones, and that 



