NEW ZEALAND LIFE ASSOCIATION

Bruce Herald, Volume XVII, Issue 1760, 22 June 1886, Page 3

NEW ZEALAND LIFE ASSOCIATION

The tirst attempt to hold a Monday sitting of Parliament this session was riot a success. The House met at 7.30 p.m., but before anything was done, Major Atkinson moved the adjournment, as the majority of members were anxious to attend the annual meeting of the above institution. The motion was carried, and a regular stampede was made for the Athen»um. There was a large attendance of policy-holders, upwards of 300 being present. The Chairman, Sir Julius Yogel, intimated that the election to fill the vacancy on the Board, created by the retirement of Mr Graham, resulted in the return of Mr Bhannon by a majority of 2143 votes over his opponent. In moving the adoption of the report, Sir Julius said that during the year 4379 new policies had been completed, and that the accumulated fund showed an increase of £129,258. He thought that no similar institution at such a stags of its existence could show such results. The expenses of management had increased to £28,000 as against .£20,000 for the two previous years, and that this was due to the expense incidental to the quinquennial investigation, and to tLe alteration in the constitution from a Government department to its present form. Mr Fisher characterised the purchase of the Dunedin, Christcuurch, Wellington, and Auckland sites, as well as the appointment of Mr H. Driver, as either political undertakings k or bad business transactions, and proceeded to show by a mass of figures that the business had fallen off since Mr Driver's appointment. This brought Mr Bell to his feet. He pointed out the utter fallacy of Mr Fisher's figures and statements from his point of view. Other members of the Board chipped in, a few of whoji aided with Mr Fisher, but the majority agreed with Mr Bell. It was patent to the audience that the Board was anything but a happy family. Mr Travers rose from the body of the hall and said that the state of things they had seen that night showed the evils of the present management, and the necessity there waa for a change either by reverting to the Government or of the policy-holders taking it into their own hands. He was opposed to the expenditure of large sums of money oa magnificent offices when a few rooms would do, and was in favor of the policyholders having the management. Major Atkinson asked if the Board was committed to the erection of the Wellington building, and on being told that the tenders had not yet been called, said that the present building would suit them for the next 20 years. If they put up their beautiful buildings now, they would find that they had made nice calculations on paper, but that the calculations did not come out. He considered the unqualified success of the institution was due to the fact of having the Government guarantee at its back. If they gave up that guarantee, they would be selling their birthright for a mess of pottage. If the management had been with the Government, the Dunedin and Chrietchurch pixrchases would not have been made without the sanction of Parliament. The "riot" and "wrangle " that had been going on in the Board had led to a great many surrenders in his district. He pointed out that no other association had a better record than this one, The Mutual Life Association of Australia, for 16 years, had an accumulated fund of £405,000; National Mutual Association, for 16 years, £388,000; the Mutual Victorian Association, 15 years, £257,000 ; the Colonial Mutual, 11 years, £470,000; and the New Zealand Government Association, £1,102,000. He concluded by moving, " That in the opinion of this meeting it iB inadvisable to proceed with the erection of new buildings in Wellington or elsewhere." A long discussion took place as to whether it was constitutional to bring forward such a resolution without notice. Sir Julius

ruled that it could not be put, and the Major said he would take the necessary steps to have the matter brought up. CONSTITUTION OP THE BOABD. Mr Bell moved, " That it is desirable the business should be returned to the charge of the Government." Mr Bell went thoroughly into the question, and in a very temper* ate and convincing speech showed how impossible it was for a Board to conduct the affairs of the institution on the same satisfactory and economical basis as the Government had done. He said the annual expenditure was increasing to an alarming extent. During the first year of the Board'a operations the cost had increased by £8000, while the estimated increased expenditure for the present year was £12,000. The meeting was adjourned till Monday, the 21st instant. MR FISHER'S RESOLUTIONS. The following resolutions will be moved by Mr Fisher at the next meeting:— "l. That the central Board be reconstituted, and that it consist of seven members, four to b« elected by the policy-holders, and three to be nominated by the Government — the three nominated members not to be officers of the Government. 2. That the Board so reconstituted shall elect its own chairman. 3. That the honoraria be fixed at £100 for each member of the Board, except the Chairman of Directors, who shall receive £300 per annum." I am inclined to think that these resolutions will be carried, as Messrs Fisher and Shannon hold upwards of 250 proxies between them. A poll will be demanded, and the decision as to the future conduct of the business will be left to the policy-holders themselves. I belive it would be wise to hand back the management to the Government, and for these reasons : The business can be conducted at much less expense, as telegraph and post offices can be used, besides salaries cannot be increased without the consent of the House. If the business is managed by a Board, the Government guarantee will be withdrawn, and that will mean bursting up the concern, as it is on the faith of this guarantee that so many insurances are effected. Again, under the Board system, ten per cent, of the profits are deducted to act as a guarantee to the Government up to a million. Going back to the Government would mean that the policyholders would have that ten per cent.