me that we are sitting on a barrel of
gunpowder."

"My dear Mr. Beasley," said Lord Churchmouse,
"you must really excuse me if I say
that you have had very little experience of
these matters. There is no danger, I assure
you, in sitting on a barrel of gunpowder, if
there is no fire in the vicinity. I assure you,
sir, I have sat upon many barrels of
gunpowder, and not one of them has ever
exploded yet."

"But suppose one or two deaths were to
occur among our policy-holders," said Mr.
Beasley.

"A most unlikely thing," said Lord Churchmouse.
"Our lives are all first-class, and we
have been in operation a very short time ;
nobody has had time to die, my dear sir. I am
sure our actuary will bear me out in what I
say, that there is an ascertained rule in these
matters."

The actuary bore his lordship out in what he
said—there was an ascertained rule in these
matters, and it would be contrary to that rule
for any of our policy-holders to die for some
considerable time. And his lordship, to
reassure Mr. Beasley, told several pleasant stories
of insurance companies that had tided over
difficulties in a most remarkable manner. One in
particular, of which he had some knowledge,
though he had never been personally connected
with it, had lived for the first year of its
existence by ordering suites of furniture for the
office and selling them as soon as they came in.
His lordship had no hesitation in saying that
that was a swindle; but the office floated at last,
and was now one of the most solid and respectable
companies in London. Mr. Beasley was
silenced, but not satisfied. He expressed to me
in private, great uneasiness at the position of the
company, and the heavy responsibility which
rested on us. We both talked of resigning; but,
on due consideration, it appeared to us to
be our duty to stick to the ship, and do our
best to prevent her from sinking. Mr. Bosher
became more assuring every week, and one
board-day he met us in high exultation, and
with a smile of triumph on his face. "Mr.
Chairman and gentlemen," he said, " I have to
congratulate you; one of our policy-holders is
dead." Mr. Beasley turned quite pale.

"Mr. Bosher," he said, "this is not a subject
for joking."

"My dear sir," said Mr. Bosher, "I had not
the slightest intention to joke: but really this
is the best thing that could have happened to us
at the present moment. The deceased Mr. Wilkins's
policy is only for a hundred pounds; we
shall pay at once, and that will encourage the
others. You will see, we shall have a rush of
business from Mr. Wilkins's neighbourhood
immediately. Our greatest drawback hitherto, has
been, that we have had no deaths among our
policy-holders." Lord Churchmouse endorsed
all Mr. Bosher said, in the most cheerful manner,
and the cheque for the family of the deceased
Mr. Wilkins was despatched at the earliest mo-
ment. What might have been the effect of that
prompt payment upon Mr. Wilkins's neighbourhood
we were not permitted to know. At the
very next board-meeting Mr. Bosher had to
announce the death of Mr. Jopling, who was
insured with us for one thousand pounds. Mr.
Bosher was not exultant now. The deposits on
the capital had not yet been paid, the accounts
in the hands of the agents still remained out,
and we had little more than a thousand pounds
in the bank. Lord Churchmouse proposed that
we should at once make a call upon the
shareholders; but this was opposed by Mr. Bosher,
on the ground that it would tend to shake the
confidence of the market, and interfere with the
progress of business. Mr. Beasley then
proposed that each of the directors should put down
two hundred pounds to meet the emergency,
and that steps should be immediately taken to
transfer the business. Lord Churchmouse
objected. He did not see why the directors
should bear all the burden. We had the power
to make a call, and would be perfectly justified
in exercising it. Mr. Harrison, who had been
sent for post-haste, arrived in the midst of our
discussion, and calmed us with the assurance
that there was no occasion for alarm.

"Mr. Chairman and gentlemen," he said,
"from information which I have just received,
I find that this is a matter you may safely leave
in the hands of your solicitor." On being asked
for an explanation, Mr. Harrison informed us
that he had learned on good authority that
Jopling had made false representations, and
that, at the time he signed the declaration as to
his health, he was suffering from delirium
tremens.

" Gentlemen," said Mr. Harrison, "my advice
to you is, dispute the claim."

We were all averse to this at first; but on
receiving satisfactory prima facie evidence that
Jopling had really deceived us, we placed the
matter in the hands of Mr. Harrison. Mr.
Harrison disputed the claim, and the executors
of Mr. Jopling immediately commenced an
action against us. There were a great many
preliminary legal skirmishes, offering, at times,
some hope of a compromise; but it came to a
grand pitched battle at last, and The Adamant
Assurance Association got the worst of it. It
was not simply that the verdict was against us
with heavy costs, but the counsel for the executors,
in a telling speech, covered us with ridicule
and scorn, and even went the length of
stigmatising our company as a swindle. Mr.
Beasley returned from the trial crying like a
child, declaring that he was a ruined man, and
cursing the day on which he had been induced
to become a director of an insurance company.
The evil tidings spread fast. The very next
morning the amalgamators were swarming about
the doors of The 'Adamant, like sharks round a
sinking ship. Bills fairly rained upon us, most
of them with threats of process if the amounts
were not discharged forthwith. The Adamant
was panic-stricken. The secretary was taken
in satisfaction of a debt to his tailor, the directors