PROPOSED INSURANCE AMALGAMATION.

Press, Volume LXIII, Issue 12933, 12 October 1907, Page 10

PROPOSED INSURANCE AMALGAMATION.

TO THK EDITOR OV ''THE I'HESS." Sir,—ln this morning's paper I notice a letter about our Association, To be just, 1 am sure you will jfa < , publish the attached vk«»e in oiaj" favour, for they are <&bx> from potto*, holders, aud absolutely unsolicited.— ' Yours, etc., , , ' i 3. H. MORRISON, 1 „ Diet. Secretary,, Chrietchuroh, October 11th. Our correspondent encloeef & cuttiß* • from the "Sydney Morning HortJdT* from which we take the foilorrmc «„ ■» tracte:- * Mr W. S. Shand write* that, tiougfc '-" at first against the amalgamation.'fee * is now convinced that "it is tho bit '« thing ithat could lia-pppji for" &» • \ .Mutual Life Association policy-bojd. * ©re." Mr Shand adds:—'The raent which has been entered into, at' A " far as I can see, fully protect*. tfcfc -i" , ' poliey-holdere,. and the reduction af > expenses is aleo guaranteed. -UtW Remington has been at the helm of tat V Mutual Life Association of Austratoj4 v for quite a. number of yea re, and W<4 and the actuary eboald know vhetMT V , ' the con torn pJated onove ia or i» uot<k good one-, and 1 have no doubt tU| at the meeting ho will givo lie his nY •> eon* for tho joining of torooe. t & will also bo in the amalgamated ©•■•'■& p*ny, not only 4ia trustee but »IwAk|'' a director, end as euch sble to use influence and keep a watchful «ye all Mutual Life Association's .Mr Miller, an actuary, ? will aWo U^ l therOj and wil] «cc from an point of Viow that we are'well looMi after. Aβ regards the question, I think it is a good < tfataf'yf + to havo the industrial busmow joiM| on, and I am certain there are maty & ' other ineurence oilioe* which will to«t'tlv havo to follow our lead, so ac to tain the maximum of bueinws wiljl^ , ! the minimum of txpetwtiij t -t atn <M* S' )of tlioee who belicre.. ijj' jwMtait n l\o Jjare ,tlM> rienoo of lifo gtucktef, us in ail matters rekting theraloj JK* , vided they are. men whom we, c*Vsjpt trust; and in tliie matter we' iwwMi really good and well-tried m«a at *a*®l tielm—men- who are largely W*s»ffm tereeted in the • eucc«at A trfMM the scheme, and who ( given the matter every oon*id«rttwi» n MI Mr Mullens writes:—"Aβ » ■ -|wtfej;fc holder of .the. Mutual Life i have given the-proposed eobenrt-fw?!: rul consideration, arid am tuitMtAjM'ffi it is iuo»t ndvaiiiiagooiis to altrapp ! policy-Ijolders."' . Ho, o'dds'i—" Dni|ra»'>{'j ing to the pttntcd accounli of eociation to see how' the expense rate will be likolv to wi(»lwr|3' future profits. I find that; tho, iHvhiidMK tvvenue for 1900 wan about oWtf)m& of which about 25 per cent. wie'ljiwM; in expenses. It followe, that, if the rate of expend be co 15 por cent, for the firtt saving of, say, £24,000 will bo fit&m «d. Of course the. promium from tilie M.L.A. policies year by year Vrill 'be a }M amount, owing to deaths, et«.'» the othor hand the ' liability likewise reduced ac policies droji do that while the premiu* income'WiOpM wliicli the saving is-to,he will be stcndily getting iinatltfM there - will be fewer P°h*fc|l holders to share tl«j; eavine, ' **fp therefore I think future envintfieslM bo estimated. by Resuming a> amount ac premium revenue.- Oil *MJ[M assumption, the earing >in tha i vjmmi years after the firet would be £9bfrpM per annum, increased to £86,000 annum, thereafter. The Niran fore, should be. £24.000 for imiMffiM icar, and £120,000 for the' years, or, cay, £144,000 for *(h*'gJyS» v five years. According to tho last report, tho profit* for years 1899-1904 were about , so that, the benefit to us appa»(«M|M^K' very substantia!. I hare,heard J»|f|^e ( , gested that the am»l|pmatiojl.|tHJ X, mean the virtnal winding up , 3B* M.L.A. Him no doubt would case if the M.L.A. funds were iV-Jmß,. kept separate, and be allowed to *&mjM' out, no benefit being dorirM 'eW*! future new business. On fully into thie point, I, am that there is to be no winding 'fpM m j the M.L.A. in any eonee of the *M|: » ' and that all the new bu«n«tt,irf.,' ( *Sllft nmalgejnated company wiU be, half of and for the benefit of tire company, of which the !M*' l *JjK> M.L.A. members will form a 1