It is remarkable how little attention has been given to this subject. In the past thirty years, only two papers on expenses have been submitted to this Institute, one written by C. H. Maltby over twenty years ago (J.I.A. Vol. XLIX) and the other by J. Rietchel (J.I.A. Vol. XLIV) five years earlier.

We probably know less about expenses than about any other factor in our daily work. No doubt the chief reason for this apparent neglect is the fact that in the past we have had comfortable surplus margins in our premium rates. To-day we are calculating rates on much narrower margins as to interest and mortality, and a study of the expense problem, therefore, appears opportune.