Their position under the amalgamation will be very much stronger than it was before for the following reasons. In the first place the concern with which they are being amalgamated does the biggest ordinary life business of any insurance \company in the British. Empire. Moreover under Canadian Law the Swy Company's reserves against life policies have to be worked out on a basis that makes them greater than the reserves on the basis on which the China Mutual and the Shanghai Life calculate theirs. For every £100 reserve kept by the China Mutual and the Shanghai Life, the Sun Life will have legally to keep £110 reserve. In point of fact it will do more, for in respect of all policies issued since December 31, 1902, valuations have been made at} the low rate of 3 per cent. interest. When the amalgamation has been completed the reserves of the two Shanghai companies will come under Canadian law and will be; built up on the same basis as the Sun Life's reserves. Thus the policy holders in the China Mutual and Shanghai Life will be in a very mach more secure position than they were before, safe as that position, defended by splendid investments, was., The technical process by which this building up will be accomplish-
Text read from the printed page and cleaned; old type leaves the occasional error.