FRIENDLY SOCIETIES.

Bush Advocate, Volume XIX, Issue 777, 26 July 1907, Page 2

FRIENDLY SOCIETIES.

♦ HEGISTRAR'S ttWOKT. WIf.LUNC ; O v. ,j u h ;^. Interesting ini'i.i !\i::ti:i:i w\\\\ ;■■.•- gard to the friendly «-,<:i«'tiV-. -f <h'<. colony is container! ;:; tin- «s m;i ii.il rejmrt of the Regisiia.-. p;<'sentcd to Parliament yesterday. TJie total niunbov of registrations (.luring tlu> year was 36— M.U.. 1.0.0. F. 7. J.0.0.F. 2, A.O.F. 3, U. A.0.1). 14. 1.0. R. 2, H.A.C.B.S. 4, P.A.F.S.A. 2. I.P.S. 2 The 500 lodges which furnished returns for 1906 are shown to have a membership of 03,709, and the total funds amounted to £1,057,281, or itn average capital per member of 1-19 13s (id Tables are also given showing that ihe friendly societies' membership has. during the past twenty years, increased at a considerably greater vatio than the population, and it is interesting to note that the amount insured in life companies, the fi iendly societies' membership and the friendly societies' contributions have all increased at almost exactly the same artio. Th,e report adds tluu the greater rate of increase in lite insurance premiums as compared with friendly societies' contrij biitiojjs is probably due to the employment of paid canvassers. The tables further show that although there is now a much larger population than in 1897. each member of the population now carries ']) a greater insurance; (2) pays more iii premiums: (:}) more in friendly societies' contributions, and (4) every 100 of the present larger population contributes more friendly society members th;m was the case in 1887. the results as a whole (says the report) disclosing a remarkable increase in thrift during the period under review, of which friendly society business has had its due share. The amount of sickness benefit paid was £52,903 in 1906. equal to £'5 14s 4d per member each or 14s 2d per week. The funeral benefit paid amounted to £9496, or 3s 8d per member. The practice of borrowing benefit funds for management expenses (says the report) shows a tendency to increase, and must be checked, as the use of funds for the purpose is depriving the benefit funds of the earning power necessary to maintain the profit rate, which will ensure the solvency of the society's finances as based on contributions. The funds of societies can only be invested in those forms of securities specified by the Act and the rules, and it is the duty of the Registrar to closely scrutinise any investment outside those forms. The "borrowing of funds by trustees, no matter on what securities, cannot be too strongly condemned, and societies should in every way discourage the practice. An examhiatioii made by the Actuary shows that the mortality of New Zealand friendly society members is somewhat lower than that of the general population, a result that might have been expected seeing that, to mention only one reason, friendly society members are in a sense selected lives, who have to pass :\ medical test before admittance. Further, friendly society lives show a lower rate of mortality than the population of New Zealand but a higher rate than that of New Zealand assured lives. Referring to cases of embezzlement of society funds recently before the Courts, the report says: "It is to be hoped that those cases will have the effect of bringing home to those responsible for the safeguarding of benefit funds the desirability of providing for a thoroughly efficient audit." Regarding unclassified societies the number is given as 404 — Sports 176. musical 71, social 68, various 89. "There is every indication," says the report, "that the number of unclassiiied societies will further increase, and as some of these organisations have considerable funds and property the question of imposing, in the interests of the public, some stricter supervision over their business will very shortly require consideration. Section 16 of the Act of 1895 authorises the cancellation of the certificate of a corporation should it be found that the society is other than an unclassified society, but the Act provides no means of ascertaining whether or not a society is conducting rts operations in conformity with its registered objects."