AUSTRALIAN MUTUAL PROVIDENT SOCIETY.

Press, Volume XLIII, Issue 6372, 20 February 1886, Page 2

AUSTRALIAN MUTUAL PROVIDENT SOCIETY.

The new iuilding of the Australian

Mutual Provident Society, & description of which has already appeared, was opened yesterday by a luncheon, which was laid in the splendid room to be occupied[by the Chamber of Commerce. The luncheon, which was providtd by Mr Freemar, was a very- excellent one, comprising everything that could he desired. About one hundred and fifty gentlemen responded to the invitation of the Society. The chair was occupied by Sir William Fitzherbert, having on his right Messrs L. Harper, M.H.K, Brandon, J. Lewie, H. E* Webb, P. Cunningham, and His Worship the Mayor, and on the left Messrs Lowe, (Resident Secretary), G. G. Stead, C. W. Turner, Muiray-Aynaley, and Hon. J. T. Peacock. LunchT>eing over, The Chaibman proposed "Her Majesty tae Queen," wbieh was drunk enthusiastically.' ;.. J ■' ,/ .-J .' :| - j Sir William Fitzhkbbket then gave •' His Excellency the Governor," remarking that it was a fortunate thing for any colony which possessed a Governor having a will of his own. 1 Mr Lkonaed Habtxb, M.H.E., proposed the next toast, which was " The Society ; its progress and prosperity." They were assembled there that day to inaugurate the new offices, and he felt sure that representative gathering would join, with him in wishing prosperity to the Society. The citizens of Christchurcb, too, must feel honored at their city having been selected for the erection of the magnificent pile of buildings in which they were that day met. [Applause.] It showed that the operations of the Society were successful in Canterbury. [Cheers.] Speaking for himself, he might say that he had been a member for twenty yeare, and the result of a policy which he had taken out some years ago was that it had increased 50 per cent, on the capital value, ard his bonuses 4 per cent. Hβ would not go into facts and figures, because he would be followed by their Chairman, who could give them these far better than he could. There was one point in the institution which was well worth notice, and that was the formation of Boards of Local Directors, which kept {the Society in a compact form. He felt certain that the meeting would egree with him that the Society should push its business by all legitimate means, and therefore be asked them to drink with 1 him to the progress and prosperity of the Society. [Cheers.] The toast was drunk amid cheers. Sir W. FiTZHKSBEBT said—Gentlemen, i I have been specially requested to preside ! on thie occasion, otherwise I should not I have presented myeelf before you; at the .eametimeitcannot.be regarded as other , than an honor to be requested to assist at ' a ceremony conducted under the auspices ; of a society bo distinguished as is the Australian Mutual Provident Society. I ! should have been very glad if I had been i able to have enlarged the phrase,, and addressed the present company as " Ladies : and Gentlemen." The time 'will come, and that before long, when women will {understand that they are the ones specially benefited , by life insurance; and then they will not be content i to become the indirect recipients of the 1 .benefits cf the eystem, but will assert their 1 right to become direct policy-holders. The beneficial alteration in the law in respect of women, happily, now enables them to I become direct policy-holders. And when that time arrives it will become the fashion for women to assist at such ceremonies as the present. You wonld not thank mc if I ' occupied your time by enlarging on the general subject of life insurance, and the great social and.moral benefits of the system ; they are, indeed, sufficiently ob- , vious. A passing reference, however, to the special opening offered in New Zealand for the further development of the system, maybepermitted. The total European population of the islands of New Zealand may be ' estimated (as nearly as may be, cay on this day) at 683,000 persons, of whom 274,430 may be estimated as the total male and female adult? population. After making reasonable deductions, I compute the total t insurable lives at 200,C00. Now the num'j ber of life po'ioies at present in force in New Zealand is only 40,204, so that the life insurance business in New Zealand ' has only yet reached one-fifth of its capacity, even if the population were, not a ' daily increasing quantity.. What a happy hunting ground then do the ielanda of New Z-aland afford to the ekilfnl canvasser, { who may beneficially occupy his time for years to come in making captives to his bow and spear} not content with offering the old-fashioned alternative of your money or jour life, hut boldly, demandingT>oth. It would be inexcusable if , on an occasion like the present, no reference were made to the first establishment of the Australian Mutual Provident Society and its founders, foremost among whom stand the names of Sir A. Michie and Mr Holt. Among the many instances of sagacity wliich mark the foundation-histories of these Australasian colonies, I know none more remarkable than that shown by Mr Holt on the occasion of the paying in to this Society of the first premium. I wa3 in Sydney about that time, and I recollect that his obEervation, as reported to mc, was to the tffect that " that payment, small as it was, " — I believe about £15—"would be the nest egg for vast future accumulations." The accuracy of this prophesy is verified by the fact that to-day, thirty-seven'ycara after its utterance, the accumulated fund of the Society exceeds je5,600,000, and its annual income may be stated as £1,250,000. Interesting, however, and becoming as it is to have in remembrance, and pay a tribute to the founders of this great inetitutioD, what we are more immediately concerned with to-day ia to note the position and progress of the Society in New Zealand. It has been the polio; of those able practical men of business whoJhave successfully guided the affairs of the Mutual Provident Society, presiding as Directors at theCentralßoardatSydney.Beeietedasthey have been by eminent experts, to delegate large powers of administration in each colony to local Boards, consisting of select men, possessed of local knowledge, and Sα sympathy with their fellow colonists. The Directors at the head office have thus maintained the Eupreme control in their own hands; and at the same time preserved the unity of the institution. The progress of the Society under this regime may be thus summarised, viz.:—Thr New Zealand Branch was established on the let July, 1871, with if* Head Office k Wellington. The annual premium revenue on that date was £17496, producedfrom 1045 polices, assuring £496 890. The branch had in fowe on 81st December, 1885, 22,207 poKdee aesurinz £4.049.437, and producing ananaoalpr* mium revenue of £130,749$ add to this interest on investments £47,920, making gross revenue of branch £178 669 TWa is the work of fourteen and »half years Thebranck has paid in death claims arid matnred policies during this period 676 fe* q fot^ ffM* «chdlng bonus additions, and these amounted to £22 914: in all £265,137. The t*anch has *£*- S /,58 ?L rea"f«* oni tßOTefang .mortgages Eβ £611s 9d per cent. The amount invested is £471,104. SL n , on **"» Chriefcflairch «*»steratlßt July, 1871,-was 350 policies And now the business in the Cntietclraroh provincial district is 2262 poKdes assuring *£*!?* P*** «* "J task to note this steady increase of business in the Christrw\ P r(mncial district, because the S" 1 - 5^ Fle were *«wa .the eaily e«£T P eil^ih e etesdy supporters of this fcowely; and because to.dJw. *,* *«

celebrate the opening' of. ojw nqjgbeUimfa. a building which ie aft ©raamejit! tf>«ne cihj-, .which has alway*' aimed -at 'fame higher *, style in - its , architecture. I hate' of fore mc engrsviogs of the Sotfetj'a , cffice, buildings in three out of the four chief cities of New Zealand, and ifc will, X think, be admitted Oat the etyle of the building in which we axe now assembled will favorably compare with that of either of the others. While on the subject of the new buildings already and about to be erected by the Society in New Zealand, I would observe that the policy of the Society is not to erect palatial buildings for the mere speculative purpose of advertisement, by way of a display of imposing structure or ornamentation, but rather the two-fold praotical object of securing suitable accommodation for increasing business and letting off portions of the building at such a rental as may enable the Society to sit rent free. In addition to the amount ot £471,104 loaned by the Society in New Zealand oa mortgage, advances have be°n made on policies to the extent of .£162,688 up to 31st December last. It may be stated that loans on policies are always granted on application, to policy-holders whose policies have run two years, to the extent of 90 per cent, of the surrender value. And it is interesting to trace the growth of these advances, which, have increased from £3792 in 1871 up to £162,688 on 31st December last. It is satisfactory to be able to state that not one penny of the accumulated funds of the New Zealand branch is thrown away ; and that the whole of the accumulated funds, which represent the savirgs of New Zealand colonis's, are invested in New Zealand securities. The record of the progress made by the New Zealard branch of the Australian Mutual Provident Society with which I have been able to present you, would be a fair subject for congratulation under any circumstances, but it is especially so when you take into consideration the competition with which the Society has had to contend. Besides the Australian Mutual Provident Society, there are six other societies, or associations, doing bußinees in New Zealand, viz.:—The Equitable Insurance Company of New York, Mutual Life Association of Australasia, the National Mutual Life Association of Victoria, the Mutual Life Assurance Society of Victoria, the Colonial Mutual of Victoria, the Government Life Association. The New Zealand branch of the Australian Mutual Provident Society fully recognises the fair spirit of competition which has characterised the conduct of their respective businesses by the other life offices. But, with regard to the Gove-nment Life Insurance Association, the opposition has frequently been cf a character which has compelled remonstrance to be made. This is not the time or place to enter into a criticiam of the administration of the New Zealand Government Life Insurance Association, or into a discuseion as to the wisdom of the State undertaking the general business of life insurance, whether directly through a Government department or indirectly with the assistance of associates in the business. It becomes, however, an obvious duty to enter a protest againet the attempt made by the New Zealand Government Life Association to cast a slur on the sufficiency of the security offered by other competing life offlcee. I hold in my hand what may be called, I suppose, a poster, issued ostensibly by the Government Insurance Association. The words of the publication are, "The Goveramant Insurance Association is the only office which furnishes absolute security to policy-holders." The deolaratdon thus made is to the effect that circumstances may arise under which other offices may fail to meet their engagements; that the security which, the Government Insurance Association offers is absolute, and subject to no contingency whatever. The consequential invitation to insurers ie to give up their policies in other offices and insure with the Government—the only really safe friend! It behoves us to endeavor to ascertain how far bo grave a charge, made under such authority, can be sustained. If the declaration of the Government Insurance office be correct, then it follows that "absolute security" must mean "increased taxation ;" not only so, but taxation of the most vexations character—taxation levied on the many for the benefit of the few. I stated in the early, part of my address that the numerical potentiality of incurable lives in New Zealand naight be placed at 200,000 pt-isons. Now, the present number of policy-holders in the Government Life Itsurance Association ie about 20,000. Iα case, then, of need (say, failure of feminities or any other emergency), io crder to ecable the Government Insurance .Associat'on to meet ite engagements with its policy - holders, 180,000 persons of the tame class (■»' c., incurable. lives) w< uW have "to be taxed to enable 'the Qavcrcuitni Association to fulfil its engagements with 20,000 specially protected persons who had been taken under the patronage of the State— i c., a general tax would have to be levied for the special benefit of lc bj than one-tenth of the whole number of insurable persons. Can any one believe that Parliament wouH vote funds for such a purpose in any event f Undoubtedly Parliament would require, in tie first instance, to be satisfied that the utmost prudence in management had been exercised. In other words, the term "absolute security" is absolutely incorrect and misleading, and, I make no doubt, will te withdrawn from any future publication. And it is to be hoped that many other objectionable modes of competition will be discontinued for the future. I think, gentlemen, it may. fairly be claimed that the business of the New Zealand branch of the Australian Mutual Provident Society has been hitherto conducted successfully; and this in the face cf active and- influential opposition. And I therefore thank you, gentlemen, for tre enthusiasm with which the toast of " The Australian Mutual Provident Society" has been received. [Loud cheers.]

Mr C. W. Tttbnxb gave the next toast, that of "The New Zealand Directorate." He said he did not know whether they had fully comprehended the importance of the facts and figures put before them by their Chairman. If they had done s), there was but small need for words from him in proposing the toast. The selection made by the Central Board of Local Directors had, as they must see, been a wise one, and despite the undue opposition to it, under their wise guidance, the Society held that day the premier position in New Zealand. [Cheers.] Hβ was the oldest member of the Society in New Zealand, and he could aesure them that the gentlemen at the head cf affaire were men who scanned minutely every life which came before them. There was no mating a profit out, of lapsed lives, such as was thecase in others. He had had a sketch of a life placed in his hands to-day, and he found that this life was insured in 1860, and on 31st December, 1884, the total bonus additions had been £1068, and the yearly bonus now paid was some 470 or £80 per annum, and the value to-day of the policy was now equal to the premium demanded twenty-five years ego. He thought that the Directors of the Society might make an offer to the Government to take over the business of the Government ' Insurance Department. [Cheers.] The day had gone by for the Government Insurance Department; and as the Bociety had over a million of money invested in New Zealand securities, their resources were I undoubted. [Cheere.j He should like to see this earned out,,because tbie would not involve any taxation. [Cheers.] In view of the great prosperity of the New Zealand branch, he felt cure they would drink tbe tosst with enthusiasm. [CheereJ Sir Wμ. Fitzhxbbxbt said that after fourteen years and a half hard work, be felt that the New Zealand Directorate had merited the confidence not only of the Central Board, but of all tbe insuringpublic in the colonies. [Cheers.]' Au they asked was to be judged by their work, and he abked them to look at the building they had that day inaugurated and say whether this was not a fair specimen of the progress of the Society. It was true they, aa Directors, personally, had not known much of tbe actual of that building, but they had entrusted the oversight afed cohf ml & a Board of gentlemen who possessed local lmnwl<w?«re anrl inflnrmwi !?■„_ it. - a_.j. •

_ 1 =»■ - ggleciton of the site to the completed* :edlS£e:a great deal of zeal and attention had been required, and the remit was an ornament to their city. [Cheers j Be would desire to call their attention Vt_ the fact that the central Directors of that

great Society had solved the great problem of central government with local government and control. [Cheers] Thelabon of tfair local Board had been aaaiduow,, self •denying', and ssalous, scrutinising every proposal which came beforethem. [Cheers.] They desired, i» the most public manner, to recognise that the great success they had achieved was due to the staff of officers they had under them. To Mr Lowe, the Keti.

dent Secretary, and the devotion of those wbo served under him, they owed a great deal of the success upon which they had to congratulate themselves that day. Good masters made good servants, and there wag. a reciprocity reacting on the masters ,by good servants. He now thanked them for the kindly way in which they had appreciated the efforts they had made in their service. [Cheers.] Mr Brandon proposed tbe next toast, "Prosperity to kindred eocieties," point* ing out tbat so long as there was no attempt at detraction they might gtt at harmoniously together. The toast was drunk enthusiastically. Mr H. E. Wxbb, for the Mutual Life Association of Australasia, apologised for the absence of the Hon. W. Beeves, who had been called into the country. The relations between the Mutual Provident and the Association he had the honor to represent had been meet amicable. Iα comparing the assurance. statistics of various countries, he found that the insurance ia America was only some £G per head, whilst in New Zealand it was £20. [Cheers.] He deprecated the canvassers in their desire to do businese, depreciating the other Companies. This, he felt sure, was not encouraged by tbe Directors, and if this were nut an end to, all might be able to do well. [Cheers.] The Chaibmun then proposed "Bμ Architect and Contractor." They had been very successful in both, and the result wae that they had a palatial building, which for ir any years would he a «redit £> those havirg anythirg to do with it [Cheers.] The toast was drank amid cheers. .• -

Mr PiTEB, tho architeot, returnej thanks, and said that he desired to My a high compliment to tbe liberality of Vnt Directors. Ti ere was no doubt that Chriatchurch had, during the past few years, made great strides in architecture. Cathedral tqtia-e, in particular, bade fair to be one of the finest in the colony, [Cheers ] Still, there were gaps which required to be filled up, and whenthis wae done then Christchurch would be able to hold its own, architecturally, with any city in New Zealand. - :

Mr Jahxs Small, the contraoUr, also spoke, thanking the Company for honor done him.

Hie Worship tbb Matok proposed th» Chairman. The great thing in life insurance was to inspire confidence, and he thought it argned well for the Society to have at its head gentlemen of ability trad position, euch as they had listened to that day. Their Chairman might aleo be called s foundation stone in the colony of New Zealand, and to have such a man at the headjof affai'B could not but inspire confidence in. the Society. [Cbeera.l The toast was drank amid cheers. , Sir Wh. Fitzhhbbkbt, in responding, said he had spent the greatest part of hw life in trying to build up what would noi only be a great colony, but a great nation. - [Cheers.] Poity-flve yeaia ago he had landed on the shores of New Zealand, - and he could say, with many who had joined the great majority, thai they did, not found this great nation for mere money-making alone. QCheeraJ They, as the, pioneers cf civilisation there, -, had made tens of thousands—nay, million* ; —for those who bad come after then.- ; They did not grudge it, but when ft man holding a Ligh. official position, such as the Mayor of , one of thd* great cities, unsolicited, paid euch a compliment as he had done to the he (Sir William) had made, these. **"§? ,' he felt that they had at. leaat nvP*jfi|prt of their guerdon, [Cheers.] been eseoaiated with the men who htA founded their beautiful city, portionlaxly with him to whom honor had been done by erecting a atatue in their Park. Many of them who bad labored is the building up of this great nation had passed away, but some etiU remained, and. ' all they asked, all they looked forward to* as their reward for the part they had te&sn in the great work of founding a nation wa» that their names might be remembered amongst them. [Loud and continued cheers.} This concluded the proceedings.