31, 1918. This certificate reported $424,810.07.

Outstanding

checks amounting to $1,990.29 were proved, making $422,819.78 as shown by the ledger. Three hundred and thirty-four thousand four dollars and fifty-three cents was reported in the statement. The difference was found to be cash belonging to various funds controlled by the Church Pension Fund.

Pledges:

A test was made of the individual pledges with the card and book records in the office. A very extended check was not possible in the time allotted for this work. It was found that payments have been received presumably on pledges in excess of the amount thereof. These payments are retained pending more definite information as to the reason therefor. The total amount of the controlling account of pledges unpaid is reduced by these overpayments.

These pledges were acquired during the campaign for raising the funds to provide for the reserves necessary to start the plan of pensions as outlined at the time.

They are in the nature of promissory notes payable in installments covering a period of from one to five years without interest.

According to the records $4,400 out of a total of about $39,100 in pledges given for expenses remain unpaid. The collection of this account is doubtful. These were taken over from the joint commission on support of the clergy in May, 1914.

Interest due and accrued on mortgages:

The amount of this interest was increased by the interest accrued on the participation of a fund held in trust by the Church Pension Fund.

Other items of assets need no discussion.

Liabilities net reserve:

A record known as the "Pension Ledger" is kept of all pensioners, showing full particulars regarding the date of authorization, the amount and kind of pension or allowance, and dates. payments are made.

An individual card is prepared for each pension or allowance granted, showing sufficient data for the actuary to make the annual

valuation; these cards are sent to the actuary after the close of the calendar year's business and are the basis for the reserve liability.

A check was made of the pensioners in the Church Pension Fund, between the ledger and the valuation cards; errors were noted in the preparation of the valuation cards which decrease the reserve liability approximately $21,000.

In one subdivision of the fund there is a small difference in the amount of pensions, between the ledger and the valuation cards. These cards will be checked and correction made where necessary before the next valuation is made.

The valuation of the liabilities of the fund, as computed by the consulting actuary as of December 31, 1918, is exhibited in the following tables:

Church Pension Fund

For eligible clergy in service prior to March 1,

1917

For eligible clergy in service only after March 1,

1917

Pensioners

Old age
Disability

Widows

Orphans

Total reserve under Church Pension Fund..

Complete reserve, including Church Pension Fund, General

Clergy Relief and Diocesan funds.......

$7,777, 769 00

The tables used as a basis to compute the reserve were as follows:

Mortality of clergy in active service prior to March 1, 1917, Hewats' Scottish Ministers' Table.

Mortality of clergy in active service, new entrants after March 1, 1917, Hewats' Scottish Ministers' Table.

Mortality after retirement of clergy for old age or disability, Canadian Civil Service Pensioners' Mortality.

Mortality of wives or widows of clergy, Danish Survivorship Mortality Table.

Mortality of orphans, combination of Hewats' Scottish Ministers' Table and Henderson's North Eastern States Mortality Table.

Rate of disability, Hunter's Disability Tables.

Interest:

For clergymen ordained after March 1, 1917, the reserves were computed on the basis of 31⁄2 per cent interest, whereas the reserves for those clergymen ordained prior to March 1, 1917, were based on 4 per cent interest.

A comparison of the pensions in force December 31, 1918, anl September 30, 1919, follows:

In the examination of the files of correspondence concerning applications and claims for benefits, there seems to be no way of finding readily the applications for benefits not allowed without going through the entire files or minutes of the executive committee. It would be desirable to have (1) applications for benefits

numbered consecutively as they are received at the office and entered in a register which would show the disposition-whether approved or not allowed; (2) a separate file kept of disallowed

cases.

No physical evidence is in the hands of the different members of the clergy showing that they are entitled to participation in the benefits of the pension fund, and as a result many inquiries are made by the clergy regarding their status. It would seem that some official evidence of such interest in the fund should be in the hands of each clergyman which would also show the rules and regulations of the fund and the conditions under which benefits would be paid. It has been thought advisable that periodical notices be furnished to the clergy showing that assessments have been paid in their behalf covering such period. This will be put in effect January 1, 1920.

By furnishing such a certificate or evidence mentioned above, it would bring together the provisions of the "plan" and the "rules" and tend to remove causes for misunderstanding of the working of the fund.

From the wording of the rules, particularly as to disability, it would seem advisable to have a change made in this rule so that the meaning of, and what is intended to constitute, disability is clearly shown, especially as to its temporary or permanent nature.

The annual statement of the fund to the Insurance Department will hereafter be patterned after that prepared by the examiners as to the total assets owned by and under the control of the pension fund, and will show the different funds held in trust.

In general, however, it is the opinion of the examiners that it is the desire of the officers of the fund to comply strictly to their interpretation of the rules formulated for their guidance and to use every effort to the end that all obligations be impartially met and the assets properly conserved.

THE SPRINKLER LEAKAGE CONFERENCE

NEW YORK, N. Y.

Examined as to methods and manner of operation covering period from January 15, 1914 to February 1, 1920.

Report dated February 1, 1920.
Examiner: Hurlbut de W. Bodmer.

HISTORY

The practice of sprinkler leakage insurance in this country covers a period of about thirty years. The installation of sprinkler systems in buildings, stores, etc., with the consequent liability to damage from water released therefrom, through accident, gave rise to the necessity for coverage by insurance against loss from this accidental leakage, or the collapse of tanks erected to supply water for these equipments.

About the year 1890, the first sprinkler leakage policy was issued by the American Casualty Insurance and Surety Company, of Baltimore, Maryland. This was followed about 1891 by the Guarantor's Company of Philadelphia, operating on lines similar to Lloyds. In 1893 the American Lloyds entered the field, and in 1898 the Springfield Fire and Marine Insurance Company issued the first stock fire insurance company sprinkler leakage policy in England, and was followed shortly by other companies. The factory mutuals entered the field in November, 1901, their coverage being included in their fire policies. Other companies followed at intervals. The competition became stronger, and rates were materially decreased.

In November, 1911, the Etna Accident and Liability Company, in view of the demoralized condition affecting the business in Greater New York, addressed a letter to the companies writing this form of insurance.

This letter called the attention of the companies to the following: "that the present situation is sufficiently serious to demand early consideration on the part of the companies, with a view to adopting some plan of co-operation that will produce more adequate rates and place the business on a plane that will, at least, insure a small margin of profit."