Would you have expected Dr. Macleod to tell you anything if you had gone down to see him? Would you in the year 1898 have expected Dr, Macleod to tell you anything ubout Mr. Joly if you had gone down and asked him 2—Y¢ Hud you ever heard of Dr. Bezley Thorve in 1898%?—No.
Would it have conveyed anything to your mind?—Nothing whatever.
At the. time you issued this interim receipt there were certain omissions in the appliention; there was something wrong in 14a?—It was filled up, but I wanted further information. I wanted to know the name of the office which had declined him, I should expect a person answering that question to give the details of-all the companies that had refused him. When I wrote to him for the additional informa-intended to pass it on to the head office: Idid not know what they would do with it. Of course I expected them to consider it.
Had you heard of the " Rejection Exchange" in the yest 18987—I had. Ido not know where the office is. Tt has a record of people who have been declined by other offices. Ido not know whether riy company subscribed to it, but I knew they got information from so: mewhere.. I suppose it. was the 'Rejection Exchange The first' letter to Mr. Joly I see is written by Dr. Horsey. He is, so to speak, your superior "officer when here? Yes. He is not in Shanghai. - He has eft Shanghai two or three times since this case was put down for trial. He Inst left ahout.ten days ago. I discussed his going away and we mentioned this suit.
Did he say he would rather not be here Did he display any eagerness to be here? No. He is away on the business of the company., He is.on, his way to India. He. did not tell me anything of conyersations he had had with Mr. Joly. There is a Mr. Lepan connected with our office, and he is in court now. He and a Mr. Craig are mentioned in our books in connection with commission for securing this insurance. Mr. Craig left Shanghai Inst night for Tientsin. "I have not heard of him having had conversations with Mr. Joly, hut he has put in a claim for commission. He and Mr. Lepan introduced the business to Dr. Horsey.
What commission does Dr. Horsey get on the first year's premium? -I have no knowledge of that.
Is it more than 50 per cent?—It may be.
Is it 60 or 70 per cent?—I really do not know. I have heard what his commission Have I exceeded the figure you have heard?You have. I believe he gets 60 per cent. Dr. Horsey and libert & Cv. can issue interim receipts, The seal and the signature R. Macaulay ara put on in Montreal. I suppose it was an oversight that the present ned where it says, Not valid unless by Mr.
Agent." [have no written authority to cancel an interim receipt, but if I wanted to do so I would do it and explain to head office afterwards.
Do you attach much importance to meical reports that accompany an application?—Certainly. I read the application and medical reports very carefully in my office, and it is not n fact that within half-an-hour of getting them I dispatched the letter in repr:
Is it not a fact that the application came in on the day of the mail leaving for Coren, and you simply shoved it in an envelope and wrote txt letter 1—No, You would not positively swear that you kept that application in consideration for at least a day'—I ennnot aweer. Ido not remember, but I think I kept it at least a day.
Bo you swear that you had rend anything about a stethoscopic examination in 18987
Do you understand what a stethoscopic examination means?—I do.
Had you gone in for studying medi—No, but I have been examined assurance before.
What is understood by chest cavity?"—L have not the remotest idea.
What organs are inside the chest cavity—I do not know.
Then a doctor's opinion on the subject of the shape of the chest would not be of much use to you?—If there had been any peculiarity it would have been stated.
There is an answer of the pulse were 80 per minut understand what that means "should the pulse exceed 85, re-exa-'That shows that for anything below 85 the company does not require an explanation.
the heart in the chest cavity or in the abdomen and among the viscera?—I do not know.
His Lordship—Really, Mr. Wilkinson, do you expect that Mr. Kerr should pass a medical examination as to where the organs are, and as to the points of anatomy? Ir is qui ut from what Mr. Kerr doing that he follows very carefully his directions, and he does not care about anything else. Half the time Iam trying to Bat ask your question, T shall ud Iam quite sure the other Cross-examination continued.—How ninny interim receipts did you issue in 1897?—I cannot say; not very many. probably. 1 cannot tell how many applications for insurance we received, nor the. proportion of lien policies issued compared to interim receipts. Libert & Ca. have'nerer had a lien policy sent out'to them on an application in respect of which they have issued an interim receipt. Ido not include Dr. Horsey in Libert & Ca, Perhaps 3 or 4 per cent of-lien policies come out from home in respect of the total number of ap plications.
Witness, at the request of Mr. Wil-Kinson took the policy and underlined what he regarded as the conditions of the insurance. In reply to further questions he said he personally made up his mind concerning Mr Joly's fitness for an interim receipt, and made a report. In it he said he had known Mr. Joly for about two years, considered him apparently in good health, of temperate habits, and a good average life. He gave an unqualified ra-commendation. It was very likely that after the issue of the interim receipt a person would not apply to another office, but the issue of a receipt was as much to the applicant's advantage as the company's.
Do you know Mr. R. M. Campbell, of Shanghai?—I do, He had some trouble with your office I believe he had.
Was that ubout an interim receipt Mr. Campbell was canvassed by an agent of the Sun Life Assurance Ca. of Canada.
It was before Dr. Horsey's time.
Did he agree to take a policy for £3,000, and was he quoted a rate of premium ne-cording to the fixed scale?
Lordship asked whether it was proposed to call Mr, Campbell. It was not very nice revealing a person's business in his absence Mr. W inson said Mr. Campbell had not the slightest objection and was prepare! to give his evidence. (To witness) As the result of this did you pay back the fall amount which he had paid you on. the terim receipt the first year's premium, im the best exchange of the day—Yes. We do not charge people anything for the time they are insured when we return the' money. Answering further questions, witness said that a person refused to take up a policy which had been issued in the terms applied. for the agent had to bear the expenses incurred. He had sent notices of declinature upon interim receipts. They were mostly Chinese cases.
At this stage. the Court adjourned for tifin.
The cross-examination of Mr. Leonard Kerr was continued by Mr. H. P. Wilkinson after tiffin, Mr. Wilkinson—When you got that letter from the defendants at Montreal you rend it carefully?—Yes.
You understood from it that the statements in the application were not in the opinion of the defendants, correct?—No, I did not understand it in that way exactly.
Do.you remember the questions about application to other. offices, and consulta tions with medical examiners?—Yes, the answers to those questions were not correct.
Then when you yot the letter from you understood that there was incorrect about the answers given to certain questions?—Yes.
So that the only part of the total literature connected with the application which was correct was your own report and the opinion of the medical examiners in Cores,—Yes.
Had you any reason at that moment to doubt the report of the medical examiners,—I thought that if Mr. Joly had -mentioned to them that he had been declined for systolic murniur of the heart it might have put them more on their guard in their examination.
Will. you point out to me anything in the medical report which-hxs to do with refusal by another office?—I do not know that it has anything particular to do with Am I right in saying that on the day you received that letter from Montreal and knew of certain incorrect statements that you still thought the risk was gued enough for six months?—I had not to wait for six" months because my letter would reach him in two weeks from that date.
Text read from the printed page and cleaned; old type leaves the occasional error.