HomeMy WebLinkAboutExeter Advocate, 1906-12-27, Page 2(Oftleial Statement)
SN LIFE ASSURANCE CO OF CANADA
g1igS...0f: INVESTIGATION
The Severe Probing bat Revealed Greater Strength—
$3,000,000 Better Off Than it Claimed to Be—
Investments ,Absolately Secure and Iiiglay
Profitable -- Mr, Kent's Remarks.
Now that the chaff of trifling details the eueces$ or the line was aseured from
has blown away, the management cf. the start, The bonds were, however,
the Sun Life As,surance Co. of Canada. also guaranteed by the Illinois 'fraction
desire to draw attention to the Mite Co., which then had a surplus of
„important facts which the investiga-
tion by the Royal Commissiou has
isrouget
LARGE PROFITS ON INVESTMENTS,
The mese striking feature of the eve
elenee was unquestionably the Me
nnensely profitable character of the
investments. During the Past tew
>retire the Company ha.s realized a net
prolli after deducting all losses, net
only of principal, but of interest, aid
after liberally writing down tiny se-
curities at all doubtful, of over $1,000,-
000 ia hard cash. In addition, the pres-
, ent market value of the securities still
• owned, is about $1,050,000 in excess of
their jedge value. Sta.:further, the
Compaityhas a contingent fund, con-
sisting chiefly of stocks obtained in years
one by as bonuses in connection essith
bean purchase.s, whict, though.held in
: the Compahy's books at et nominal value
, of $t for each block, have an approxi-
' male value of $3,050,000, and that value
1,; increasing steadily, The Companys
-policy, is to hold these securities as a
contingent fund, and to only include
them in the published list as each block
becomes interest bearing, or Is sold, In
the meantime policyholders, have the
e adveetage of the immense additional
security thus provided, and may also
t reasonably expect to have their profits
mucle increased from this source in years
• to come.
iSAFETY THE FIRST CONSIDERATION.
Although the Company has thus made-
' enoierione profits, these profits have not
been erlade from speculative securities.
The 'Company carefully •avoidssuch.
The profits are the result ot a policy
of not waiting for Investments to come
to the Company, but of deliberately look-
ing around and selecting those that are
safest and best, and then making use
of the company's ability to purchase
large, blocks (us es.58ts are now $24,000,-
000)1.6'obtain inside terms, thus cutting
out tbe middle men. Absolvee safety is
always the first consideration, •and pro -
:fit isessentially seeondary. Aetual
elustrations are, however, more corteinc-
!
Ing than, general statements, and es
e some attention was given to our Invest-
-Meats in the /Innate Trlaction Company,
these may be taken as examples.
ILLINOIS TRACTION COMPANY.
e The first investment of the Company
in Illinois Tractiozi securities •was the
purchase of two-thirds of the bonds of
:the Danville, Urbana & Champaign
efiallway. These wore Secured by first
mortgage on a new Interurban. line
connecting Danville with the twin cities
of Ureana and Olen:Taiga, and by a
-further lien on the public utilities of the
:three cities, comprising the street rail-
' ways, electric light and gas plants of
each. Were these bonds absolutely safe?
The audited net earnings for the prevl-
..ous year of the properties by which they
were secured, after deducting every
',charge of every kind that would rank
ahead of the interest on the new bonds,
was e136,700. The "total interest charge
nt the new bonds, including amount re-
quired to complete the interurban, was
$54,000. The existing net carnin,gs were
therefore already more than two and a,
half times the interest charge upon the
new bonds. This was without any ad-
dition from natural increase, or from
the new line. The replacement value
of the property was moreover estimat-
en at $1,500,000 in excess of all bonds.
Was there any risk in making mien a
purchase? Although no increase in earn-
ings was needed to make the bonds
Abundantly safe, the new interurban
line has in reality proved highly pro-
fitable, and the earning of the city
• propertie,s have' also steadily increased,
se that the surphis,, which was two and
a half times the interest charge when
the bonds -were purchased, is now about
.$370,000, or seven times the interest
charge. The bonds were shortly after -
mends sold at an advance in price,
without any etock bonus, to an Ameri-
can banking firm, who in turn retailed
them ata still higher price to the pub-
lic, emong the purchasers being two nf
the largest and best American Insurance
Companies, which each took a block of
$100,001). The. security for these bonds is
Baseline. Better cannot- be obtained.
Did the fact that the Sim Company
made a bargain by which it obtained.
Soma bonus stock, whtch would ordin-
arily have gone to other parties, in any
way lessen that security?
DECATUR RAILWAY & LIGHT COM-
PANY.
The second purchase of Illinois Trac-
tion socialites coesisted of the bonds of
the Decatur liailsvay & Light, Company,
which carried a mortgage ,upon the
etreet railway, electric, light and gas
properties of the city of Decatur. The
audited available net earnings of these
properties, svilbout any addition for
,normel increase or earningon new
.property, were over $02,000, to cover
-au interest chimp of $30,000 on the new
bonds, or more than $12 for each $1 te-
quired. In addition'. there was the, guar-
antee of the Illinois Traction Co., whose
stirplite earnings from other properlree
already anvemted to $130,000,0 or a fur -
They peewee° vete] to ,the entire in-
terest charge, making. with the Deentur
earningssix times the entire interest
tharge on the 'new bonds. Where can
erten or better bonds be Obtained? Wes
there anything speCulative about. them?
These, too, have since all been sold et
nn advehee in prite, the Sun Canparly
attaining (ho stoek bonus.
ILLeNOIS CENTBAL TRACTION CONI-
PANY,
This was the third purehese, These
bonds were secured by first mortgag,e
upon 0 hew interurban line between
Decatur and Springfield; the vegetal of
the stein. COnneeting two steel cite,, , tor Such aweetinents, abeolteleig With
MO, available from Its other properties
tor the payment of this interest'. As
the entire interest oharge uport the new
road when finished would be only $65,-
0e0, the interest was , already assured
two and a half times over, even if the
new lino earned nothing. It did, how-
ever, earn its own entire interest charges
lit the first eight months of its first year
of complete operation, so that instead
of having to call upon the guarantee of.
the parent company, tt earned a surplus
ot fifty per cent. These bonds, too,
were all purchased shortly afterwards
by a firm of bankers at an advance in
prioe, without any stock bonus.
Further. Illustrations could be, giyen,
but these cases, which were specially
investigated, are enough to show the
very high quality of the bonds in which'
the Sun. Life has investee. e
The value of the guarantee of the
Illinois Traction Co. to any bond may
be judged from the fact -that its an-
nual gross revenue now exceeds $3,000,-
000, and that it has a surplus of $700,-
000 above the total interest charges up-
on. all the bonds of the system. After
paying six per cent. dividends upon es
preferred stock, it is earning about nine
per cent. upon its common stock, that
nine per cent., however, not being paid
in cash, but. being used for extensions
and ,olher capital expenditure, whieh
increase the value of the property. There
are over seven hundred shareholders,
and the market value ot the preferred
and common stocks is about $7,000,000.
While the first Issue of this preferred
stock had some water in it, large
amounts have since been issued at 874
and 95 for cash, so that alsout $1,000,-
000 of actual hard cash has been paid
in upon the preferred stock, and about
$1,200,000 more of value has been put
into it In the form of surplus earnings
used for extensions. The stock, there-
fore, has aevery-solid cash basis. :The.
franchises are long and favorable, and
are perpetual for more, than two-thirds
of the mileage.
The question was asked how long a
would take to dispose 'of the Illinois.
Traction esecurniee. The company's en-
tire holding could easily be disposed. of
at a handsome profit within two days.'
Any person, however, who observes the
phenomenal growth of the earnings
must realize that the oommon stock at
least will net titian). Ite full value ger
years, and ti sell nowtivould merely lee
to divert into the pockets of brokers im-
mense amounts which would otherwise
go to the policyholders. -
BENEFIT TO POLICYHOLDERS.
The large profits have enabled the
Company to forestall the requirements
ef the law and at once place the re-
serves upon all its policies upon a 5ee
per cent. basis, a step calling for about
$1,200,000. Even by this severe stand-
ard it had at 31st December last a sur-
plus over all liabilities and capital stock
cf $1,735,698.59. This sum has since
been largely Increased: This does not
include the contingent fund of over
000,000. The Company has also been
enabled to increase tho rate of profit
paid to policyholders year after year,
and it expects to still further increase
It.
WRITING DOWN SECURITIES.
The Company has been criticized for
writing down its securities before losses
actually happened, simply because it
feared that loss might perhaps 'arise.
The management claim, however, thee
this is the only proper bourse, and that
any other would be highly objection-
able. If the manager of a' bank or loan
compel-ter:were to refrain from writing
nown securities, merely becatise losses
had not yet ectually materialized, he
VGould be condemned as issuing mislead-.
ing statements. The management con-
sider that they deserve credit instead of
censure for the course they took. As
regards the so-called writing up, the
facts are merely that when sonic large
blocks of Illinois Traction preferred and,
other securities were sufficiently ripe
to be transferred from the contingent ac-
oounl. to the active list, the management
hal to face the question whether the en-
tire value of these stocks should be ad-
ded to the surplus, or whether they
should be used in part to write down
other securities not quite so sMod. It
was decided to substitute these new se-
curities in part fer some others, that
while not bed, were not entirely satis-
factory. Had this not been done, the
nominal surplus of the Company would
have been increased by about $300,000.
In the opinion of the managment this
course was conservative and proper.
Incidentally, most of the secnrities
then, written down have since so im-
proved that comparatively little loss is
now expected. The actuel losses incur-
red by the Company halm in fact been
very trifling when compared with the
profits, thus affording a further testi-
mony ,to the high quality of the secure
nmEcToEms IneVE NOT PROFITED.
No director has ever cibtanted tiny
[Mandel profit or advantag Of any
kind Out of the Company, by means e
sales, loans, or any such, arrangement
of any kind whatever,directly' or indi-
rectly. The charter prohibits directors
and officors from borrowing from the
Company, and this has been literally
lived lip to. Directors have been per -
netted te purchaec seenrities for them-.
solves on precisely the steno terms es
they were purchasing them for the
Colnpany, but. that del not injure the
policyftelders, and, it is oven desirable
thaf, cineetors should show their bin
in the invesimenis into tstbleh they put
the CoMprueses money by taking seme
or the sense feintheinA(e Vee. When this
ens been nenee leiteever, they bave
NO (:OLORIGISI MATTER
NO ADULTERATION
ABSOLUTELY PURE
OR, A SAO 'LIFE STORY
-4-o-e-o-4-o-eo-+-o-404-o-neo+o-4-0-+-0:es+o-e-o+o+o+o-
CHAPTER XIV.-(ContiUed). to find out if you wish to know,” he
answers gravely; "for I think he must
He silently holds out tho water to be as much an aequaintence of yours as
Elizabeth, mut site, without attempting •
to take the tumbler into her own trem-
bling hand, drinks. He looks with Im-
potent -pity from the bent blonde bead
to the prematurely snow -while ono.
Hew ma he weed his reassurance to
them without appearing to thrust him-
self with officious insolence into their
conedence? It seems to himself that he
solves the problem very clumsily,
"I am afraid you must have thought
me but slow,' he says, feeling thin he is
&egging in the piece of information he
is anxious to .give theme with an awk-
CEfl,ON GREEN TEA.
Has the same character as Japanbut is
infinitely more deiicious.
Lead packets only. 400, 500 and 00o per lb. At at/ gmers.
0....mloOlommiNsmo
Florentine gossips, and who; sincele had
y seen Min in conversation with the object
that I ever met him." of hie inquiries, would probably be able
He had thought that Mrs. Le Mar- to natisfy thens; but his acquaintance
chant Was already as colorless as a wo- ,wilb , the goodsnatilrect newsmonger is
man could be; • but as he speaks, he not sufficiently intimate for him to be
sees her face take on a new degree of able 10 pay him a • moideng visit with
pallor. She struggles unsteadily to .her any air of probability, of having been
impelled thereto by a desire for his corn -
Is getting late !" she says in pan, and, moreover, lie shrinks with a
dtstinctly ; 'we -ought -to be -going morbid fear from 'any actioe whieh may
home!" lead, however obliquely, to his being
Even.as. she speaks she makes an un- himself apprised. of the terrible secret
certain. step forwerd, but it is so uneers which -it is no longer mere matter of
conjecture--elieg" crouched somewhere in
those ewe poor oreatures' past.
And meanwhile he 'knocks at. Mas.
Byng's door, and is quieltly ,bleiden enter,
bys oheerfule English V0100, the wel-
selli°a(lkuine7eof°Irie'raoswilss itng. But hoes too unfortunately honest
his own want of pleasure in the meets
client sits down again. Elizabeth has - and
a Jay he does not experience,
risen to her feet, and now 'stands beside 'an ortly says, ,with stight,aceent. of
he
eer canmothersee
lieSrilteeieTibslisnagidf ir.oiontih bi.ot
had heartily, held out :
teproach as he'lakee her eeady'
heel. He hears her voice now addeess-
ing him, but in so subdued a key that upon as."
"You should not spring these surprises
her words are almost lost In the low
Sho laughs a little guiltily,..
blowing of the faint south wind that is
"11-11 was a sudden thought; you see
grass.
fondling the blades of the unshorn. I -I had never seen Perugia." -
He laughs too. "Poor Perugia! I
"Did you say that he Was gone? Are think it would have blushed unseen for
you sure of it?" good many m.ore years if you had not
"Yes, yes, quite sure! I saw him go e' a -
begun to doubt the efficiency of my
"Did, you -did you happen to hear chaperonage. Confesel .You have come
where he was 'slaying?" to look after the precious baby -boy, have
"No, but" -with the greatest eager- not you?". •
riess-"I can easily find out • nothing
His Mee is, as he himself feels', not
(mite a pleasant one;. but the mother is'
' "Elizabeth is standing quite close to
scarcely more prone to take offense than
him, so cloao that. ho can see her poor the sell; and she tinsivers wee an' amia-
littlehdiart leapMg urider the thin white bly hasty disclaimer': ,
gewne whose simpler finery had piqued
..... 0 has app., eIt 'nets' not that I felt the least want of
him 'earlier in the day. e en confidence en you -you must • not think,
ently; in her new terror; ',forgotten. that that; ;but -but I had one of my presenti-
there is any cause for concealing from 'rrients 1 you know that I am 'always a,
him the occasion of It She turns in- little superstitious.; -and.,theee. nights run-
stinctively to hind, as a hurt child teethe new an owl came and hooted quite close
neare:se bysta-nder. It seems, to him the under my 'window,"
most natural thing :In the world that. "As long as thave known your wood,
she ehould. They are both recalled M -
it ha S had owls; end. as long as I have
themselves by her incither's voice.- • known. them, they have hooted." .
"You 'must think- that we have lost ouf •
"In -the wood, yes, of course, Mee I
wits," she say's with a sickle smile, eehet .
like to hear them; but this one Was close
even if we have, I do not know what
under my window."
right we have to impose upon a -re corn-
Jines only anewer is to lift his hands
•arative stranger like you, the task of and shoulders in, protest against 'his
Ming us to 'gratify our -our idle cute-
ly." friend's weak -mindedness.
something had happened," continues
stranger!" cries Jim vehemently; by this
she, not much abashed by his scorn;
tirne-he does not know how -he Is -'and it was the. greatest relief when I
holding a -hand of each of the trembling
first caught sight, of him at the station
womee in his. "I am not. a stranger at
yesterday, looking just as usual, a litele
all! I am a friend ! Why will not you
thinner, perhaps -does not he sift() you
treat me as one? Why Will not you let
me help you?" as a. little thin? Has .he been weighed
lately? He gives me the idea of having
Ile glances with pitying, affectionate
tWO since
eagerness from one Lo lbe other of the I last saw
lost a pound. ‘or
him. Is there a weighing machine in
woe -begone faoes on either side of him.
first I couldn't find our monk, and when
I did, he was engaged -ha was talking utelongloh
fain that he catches her by the arm.
with kind imperativeness; "rest five'min-
You are not fie to move yet," he says
ward head-and-shoulder-ness ; but at e
to a: Visitor -a. clergyman, er; it is not late, really -the sun
e liigh
Ho pauses, conscious that at the last
word a tremulous shiver has ' passed •
Convinced, either be the young man's corning alacrity of whose tones shames
.01-L' tile kneeling figure. .
'Yes, a clergyman," he goes on with
'nereCeps .haste, hurryihg to put them
Out, of their . pain; "an elderly; grey -
'haired, .English clergymen, who was
just in the act of going away; indeed,
before I left, he had gone. I saw him
drive off !"
Ere he had finished his sentence, be is
seized by the apprehension that there
must appear to his listeners something
suspicious in the labored details into
which he is entering; presupposing, as
they do, that he is aware of there being
for them an interest attaching to the fact
of the stranger's departure. And in-
deed, as he, speaks, he is conscious that
Mrs. La 'Merchant's frightened eyes.
which have been taking 'surreptitioue 01111 be81011)101
trips round the peaceful garden, now
'cense home with a no less alarmed look
to his face.
"Was he -was he- an acquabitance of
yours?" she asks, with an attempt at a.
laugh -"this clergyman, I.„ think you
said he was -that. you noticed him so
particularly?" .
eeeng. 'acquaintance - repeats Jim;
doubtfully; "west is an .acquaintance?
a man whom one knew aevery little,
and disfficed a good .deal, ten years* ago;
and who pas.ses one by without a.glearn
of recognition.roW-is that an acquain-
tariae?" • • • •
."Elizabeth's hat. has fallen on the
ground, and hitherto she has seemed
unconscious of the evening sunbeams
smiting her 'uncovered head; new she
stoops ad picks it up.
4
"And you did not make yourself
known to him then?" continues Mrs. Le
Merchant, still with thatepainful effort
at lightness of tone. "You let him drive
oft without telling him who you were?
or asking tens where he was staying?
or how long his visit to Florence is to
last? or -anything?"
Jim's eyes are fixed on her as she
speaks with a compassionate steadiness,
under which hers quail waveringly. Is
it possible that she can imagine that she
is deceiving him by this miserable pre-
tence of indifference?"
"I have no doubt .that I shall be able
their own money, and the company has
not assisted them in financing in any
way.
ESTIMATES AND RESULTS:
Over 700 deferred proflt policies have
matured, and in thirty-four per cent. if
the cases the amount originally esti-
mated as likely to be received at the end
of the term, has been realized or ex-
ceeded. On all the cases combined the
average amount paid has been about
ninety-seven per cents of the estimate.
The management may be pardoned for
being proud 'of their record. ,The esti-
mates now in use are fewer than the
fernier ones, and prerniums,are higher
so that present, estimates should certain -
le be realized. Statements were filed
showing that $108 is on hand for every
$100 required to pay the amounts called
for by the present estimates for every
deferred profit policy on the books.
STOCKHOLDERS.
The directors have roduceet the pro-
portion of profits Deeming to share-
holders, from e0 per cent. which was
the original ratio, and is still usual with
British Companies, to only 5 per cent.
When the capital was increased in 1897,
the nesv stock wasI issued at 300 per
cent, of the paid-up value, and the dive
deade of 15 per cent., which have since
been paid, therefore yield the stock-
holders only 5 per cent. upon the aniount
paid late the Company. As the money
mimed more than 5 per cent. this new
capital has cost the policyholders no-
thing.
COMMISSIONER KENT'S APPRECIA-
TION.
The management gratefully acknow-
le.dges Mr. Kent's appreciative remarks
at the closing session, in which he stat-
ed in connection with his suggestion
that voting power might be given to
policyholders that Jet seems to mo that
in the conduct of the Sun Life business
there is nothing to pe desired as far as
the present generatton is concerned, lf
you were innaortal I would not say any-
thing further about it. lf, by eound
judgment, hard work and just discrim-
ination you have put the Sun Life en
the pienriele of a successtul CoMpany,
another- management with other attri-
butes Might jug as easily squander it.
The directors have done their
duty nobly; there fe no complaint to be
made ageinst them, or tiny ono of them.
Who cen say whether the future man-
agement. will continue the present high
Standard of your company?"
While the directors and nemagement
tic,,eply regret that they do not see time
qU,stion of voting bY policyholders In
"But I am nota comparative
"I had quite male Me my mind that
the hotel?"
The tears have come in sudden flood to
"It will be very easy to ascertain."
the elder woman, and are pouring over
her white cheelcs, stopping the passage "And how is Amelia.?" -her cheerful eY0s resting in
friendly and half -in -
of her voice; but Elizabettes fair eyes are
drearily dry, and speech conies clear quisitive interest on Ins sombre faco.
and hopeless Crone her. "Amelia. is very well, thank you." '
"You are very good to us !" else says/
"Amelia Wilson still?"
ctxr v/
giving the hand that holds hers a little lea.
pressure, which he feels to be as cold as "For how long?" - laughing-"ano-
tber ten years, I suppose?'
it is grateful; "at 'least I soe that you
want to be very good to us if we would "For three months, I believe; we are
to be, married as soon as they return to
let you; but as to helping ui"-with a
England." ,.
slight despairing shrug -"no one can do
that no ono but God, and sometimes"-- "You do not say so ?"-with an accent
drawing a long, halesobbing breath -"I 01 lm el and delighted incredulity -
think it would pass even Ws power." "hurrah I Poor Amelia! 'Tout vient a -
point a' qui salt -attendree and she leis
CHAPTER XV. su attendre with a vengeance, has not
she?"
There are few things Mere difficult "She 10 not going to attendre any
than when one's mind is full of the in- more," replies Jim, drily.
terests, eares, mut sorrows of one set of "Then I shall have to gee; you a pre
friends, to have to empty it suddenly "of
sent, ,1 .suppose 1" cries Mrs. Byng, still
them, and refell it as stiddenly, with the
with that •delighted ascent. "Something
entirely different, and perbaps discre-
useful, I have no doubt. I feel sure that
pant interests, cares, and sorrows of an emelia. would like something useful,
altogether alien set. ' should not we choose it ,to -,day?
Seldom in the course of their old and
Florence is an ideal place for buying
tried friendshipPresents ; has Jim Burgoyne felt do you think that Amelia
less clisspare
zoscd for the company and con -
would you to ine for a whole
versa.tion'of his valued ally, Mrs. Byng, morning?"
than when he knocks at the front door :fins hesitates. It is not that he has
of her sitting-reom on the morning fol- '
any doubt as to Amelites cheerful re
-
lowing tin excursion to Certosa. Ile nunciatioe of any portion of his time
ettenot talk to her about the La Mar -
that he may see fit to alesteact from her;
chants, seeing that she has never even
but the occupation suggested -that of
heard of their exist:glee; and if out of the squiring . elm. Byng-is not that to,
abundance of the heart the mouth which he has purposed devoting his
spealceth, his tale upon any other topic
must be scant and jejune indeed. The
only cheerful side his prospective
visit turnS to him is, that if he were not
with Mrs o elyhg, he would be with
Amelia; and that, the friendly Indifferent
eyes of the former will, at all eventS,
be less likely than the hungrily loving
ones of the latter to •detect that be has
not slept a wink, and that he has not
Rio remotest idea of, what he is talking
about. 11 he wore to follow his inclina-
tion, he would be bestowing his com-
paey this mocning upon neither friend
nor sweetheart, but Would be ransack-
ing Florence for the Plea ot information
he had yesterday protnised those Iwo
woc-beg,one women to procure for them,
Even into the very meld of his heartfelt
sore compassion: for them, there pierces
a shamed unwilling flash of dation at
the thouseat et stride of intimacy
his being entrusted with, this eoramis-
sem implies, of what an opening to in -
d e finitely 1111 ViSitS it affords.
Iiie determination to conduct. the search
L. at present, a good deal more clearly
defined thais the method in whiCh that
cearch is to be effected. He Can consult
Galignani as to the names and wherea-
bouts ot new arrivale; bet they could do
that moll. for themselves. lie could ex-
amine the visilers' books of the different
the ,eamo lesillt tie els, leent, neverthe. liotde; but Vlorenee, thongh. a little Ode,
less such remarks+ coming' froinet Le 'Heft in 'welchers, Mid this course
the Commiesirmerst arcs inteneely ap- would lake . cohld efiriStlit Kii
predated. Greened:, the head and IoUnt of all
6.111•11M.
forenoon. She sees his unreadiness to.
tuissver,„ and, attributes it to a veroag
cause,
• "Amelia will not?" dies she in a torte
of surprise and disappointment. "Well,
; poled not have believed it °eller! Not
even if you told her that it is cue pur-
pose to buy' her a present ?"
Jim breaks into an unavoidable smile)
"How frightfully quick your mine'
moves t 11 loops' like' a kangarool Ii
never saki that stio would. not resign tiled
.porecu:z,ous boon of my society; op. (he cone
what will Willy say to my monopolizing:
yteary, am sure that nothing would;
give her greater' pleasure bub -but -I
. At the excessive disingenuousness ot!
this speech his conscience gives tern at
severe prick, recalling to his mind tio,
altitude prostrate' a illic t ion -stretched!
face downwards an his bad -in which
his youtig friend had received the news,
of Ids parent's .prospective.approach A.
light cloud •passes over that parent's .
sunny face.
"Willy has an engagement this morn -
lag," • she answers more *slowly, and.
with less radiance than has hitherto, -
marked her ueeratees• "nothing could;
be sweeter aed dearer ean he was, and,
he is golog to take me somewhere this;
afternoon -to Fiesolo or leetraia, or,
somewhere else delightful; ebut this!
morning he has an engagemeat. He didt
not tell me what it was, and I did 'not'
like to tease him with questions. "You -ii
with -a 'rather westful glance of inteeroi
gation" at her companion -"do not
pen to know What it is?"
Jen 'shakes Ids head, while a ratter,
deepereshade than habitually lies uj on!
it settles on Ms careworn forehead. It
is perfectly true thet he knows nothing;
o& -young engagement,..blit
ho has a ihrawd suspicion to Whit'
quarter -ot 'the town that engagpment
will lead -him t. •
• "So' that I tattier counted upon you,"
cottianes %Mrs. leyng, turning •with a,
somewhat crestfallen air to the- window.
"And you did not count in vain," re-
plies Burgoyne, , with a , sort ot forced ,
gallantry. It has, (lashed epon him that .
he will have to consent under:penalty of.
giving a detailed acocunt of the reasons:
for his inability, and that therefore he
had better make a virtue Of necessity,
and do it with a good grace. After all,
tbe deferring for a. couple of hours of
his researches cannot be of any. great
consequence to the persons in whoso
belialt those researches are set on Mot. •
To a suspicious ear there might bo
something dubious in the sudden and
gelvanized alacrity of his assent; but
not A. shadow of doubt crosses Mrs.
Byngs mind as to her old tend tried ally
tiding as.pleased to avail himself 01 011
opportunity for eajoying her society as
ho hes always showed himself during
the twenty years and more of their ac-
quaintance.
Protected by this happy misconcep-
tem, she sets off, all ensiles, though at
the outset of the expedition she finds
that She has to modity her project; ane
that Burgoyne shows himself restive as
to bric-a-brac shops, and declines per-
emptorey to be any 'party to buying,
himself a wedding -present. Tie puts his
objectiors upon the semi -jocose ground
that he shell be 'unable to avoid over-
hearing the price of her intended gift,
and thee bis modesty could not st Mid
the strain of helping her to haggle over
it. Perhaps, however, • deep in his
heart is an unconscious feelingethat to
receiVe nuptial offerings gives an al-
most gree ter • bode and cert a lel y to his :
on -striding fate than even the tweing of
dinner -services and saucepens. • So they
go: to the Academia dells Belli 'Alit
in-
stend it having occurred to Jim that in
a picture gallery there will be less op-
-porlunity for conversation, less opening
for interested inquiries onhis compan-
ion's part as to Amelia and the minutiae '
of hie future life with her, then there
would be 10 the green walks of the Gas -
due, or on the slopes of 'Meseta
(To be continucche
"I wish.to give a present to a young
lady. Can you suggest something that's
cheap, but doesn't exactly appear se ?"-
"Take a look at this mirror, sir 1"
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