g6     The Mutual Life Ins. Co. of New York.

tained between all classes of policies, whether
differing in kind, age, amount, or premiums
paid. The receipts of policy-holders for divi¬
dends in 1880 were so far examined as to sat¬
isfactorily prove that the Company has proper
vouchers on file in all cases for the sums
which appear by its books and agency reports
to have been disbursed on this account.

SURRENDER VALUES.

In investigating the " Surrender Value" sys¬
tem of the Company, information was first se¬
cured as to the rule adopted during a series of
years past. The proper calculation of sur¬
render values cannot be determined on as sat¬
isfactory a mathematical basis as can the net
premiums or the distribution of surplus. The
very fact of a policy-holder voluntarily discon¬
tinuing his contract with the Company is an
abnormal factor not originally contemplated,
and tending to the injury of the remaining
policy-holders, for the option of discontinu¬
ance is with the insured alone, and not with
the Company, so that the latter cannot offset
the loss from the withdrawal of healthy policy¬
holders by cancelling policies on lives that
have become seriously impaired.    The only