BUREAUCRACY AT WORK.

Dominion, Volume 3, Issue 772, 22 March 1910, Page 8

BUREAUCRACY AT WORK.

METHODS OF STATE INSURANCE ; DEPARTMENT. FARMERS PROTEST. Some extraordinary practices on the part of some of the Government Departments were rovealcd in a remarkable discussion at a meeting of the Taranakl Executive of the New Zealand Farmers' Union last Thursday. The report of the proceedings given below.is from theHawera "Star." Mr. Maxwell said he had a matter to bring forward which he. wanted the .members to take: very seriously. It was. a question which he' viewed very gravely himself, and he thought the executive should do likewise.' To come to the point at once he would move— "That all provincial executives be written to, asking their co-operation ' m protesting against-the extraordinary methods of the State Fire Insurance Department, and to resent the Department's underhand endeavours, by the improper use ot confidential ; .information, and by misleading suggestion, to steal the'business of the Farmers' Mutual Insurance Association. •■ A copy-of -this resolution to be.'sent, to lie Minister', to' all other executives, and 'to' the local members of Parliament, asking their cooperation and assistance in the ' House." , : ; < <■■ . ;Mr. Maxwell:.! know this motion is worded very strongly,' and that

'some members. may possibly object to it- on that ground: 'but it is our busijness.to see. that the 'farmers, at least, .are not fleeced, without-a"- strong.pro.test, ■ and also,: as .'taxpayers in. this .country, to , protest , against the sys- , tern; that is now'being adopted by, the ■Government, not only in reference .to : insurance, but i also throughout ■'. other Government Departments. . Some ■ little itiineago a gentleman gave ine a let'ter addressed from :the. State Fire In'surance. Offices to one of the insurers ;.with the ,Farmers ,: Mutual .Insurance .Association:, That letter disclosed-an ..extraordinary state of affairs. I, howover, waited my opportunity to bring the _ matter. forward until -.1' : received. a similar communication affecting my own position. I have now in my, hand a letter addressed ..to me by the State Firo Insurance Offices, : Taranaki branch, New Plymouth, dated March 1, 1910, and reading as follows (it is signed by the branch manager):— "I have been advised" that'the in- , surance on your- buildings mortgaged to the Goyernment Advances to Settlers Office falls due on March 31, and. I desire to -approach' you with a view to . securing the insurance fol '.the Stato'Office. ■■ As it is the wish of the Superintendent' ttiat all insurances on. property .mortgaged ■■ to the Department be.effected with the State-Office, I shall-be- glad if: you will kindly, favour, me ,by completing ■the- enclosed proposal and -returninn- , same, to me not later than MarcS ■ 28, .as it is,.; imperative, .that the ■cover reaches the . Superintendent well prior ;to,the due date.. It is I

ttimk, reasonable to -ask' those settlers who are,, enjoying :the- benefits or the cheap money scheme conferred by the. State to.' place .their insurances with the' Government Fire In- .. surance. Department. .Thanking ydu ; ■■•'in. anticipation of aa, early, and fa--'-'•"vonrable reply." .•; Tfl e form .^enclosed. states distinctly that the proposal , is' "in lieu of the farmers' Mutual policy.", ■ : ' .Mr. Maxwell, .proceeded': to recall-the circumstances under.'which a circular had been issued by,the f Government to all trovernment Departments (as a consequence of certain information' having leaked out, about .the- treatment of a railway servant), forbidding the disclosure of any departmental ; information whatever under, very considerable penal-

'Mr. Maxwell, "that- some time a* grave irregularities .'were, reported 'to have -occurred/in, connection with income tax, and that a secret-Court was set up, composed'of Judges of the SuCourt, to inquire; into'the matter —a thing practically unknown in any Bnt, s h The report df. those Judges was kept a secret, and when questions,were asked in ;the House/ the xcuse of ,the Government-for not di S ! closing the facts was that it would be an immoral and an improper thing to iiscloso the .private business i of those lomg business with a Government DeZTrt' fti f r ° f ttafaction ot -lie part of the Government you have iere in the letter. I have just read! ?roof positive that, information .has >een disclosed and made' : practically »Wio property," whioh could not posiibly, have, been., obtained, excepting trough ihe ■ Advances! to ' Settlers De)artment If you were doing business

with a lawyer and borrowing mone-j from him, and he acted in' a similar would- certainly have nothlng iji. do Y him in the future: h€ would be absolutely disgraced and discredited as a. business man./ (Hear, hear.) No decent individual would have anything to dp with him. When business is :;in, : its nature confidential there is .no.excuse ; for. its-being'dis-closed to anybody else. We have always assumed that:-we' would'. get at least the same protection from Government Departments that.we get.from private professional, or-business people. But here we have complete proof that they are not. guided , by. business integrity, decency,.or morality. .It is absolutely disgraceful to my mind that such conndential information' should be di■F\ E It - 1 ren,ember that exception was taken that a Minister should know the details of departmental business; yet here is complete evidence that this Department has deliberately given this private information, not to the head of anothor Department, but to an outside omce,- and every canvasser practically is made acquainted. with, your private affairs. Tho ramifications of these Gov-ernment-Departments are absolutely astounding. The Government pretend that they are entirely, free from State interference, and run solely for the advantage of the taxpayers. That is sheer humbug. What confidence can any man have in the Public Trust Dolartment, for instance, or in any other Department, in the light of what is now. disclosed? . . .Personally, tho matter does not matter one fig to me; but I am only too glad that this letter reached me, and that. I have the opportunity as a member and director of the Mutual Insurance Association to-brin" forward what I deem to bo the worst of all the Government's games—to steal the business of the Fanners' Mutual Association. I do. not ;think any steps too extreme to combat this i sort of thing. Of course, the reply might be that- if you don't like it why do you borrow? But there are lots of other departments in which wo' cannot help ourselves—there is the property tax, and many other things as well. I say that this thing is a gross injustice to ,the Farmers' Mutual Association and the farmers should resent it. No ordinary business ■ man—if he were ■ a clean man—would dream of resorting to such a practice. I object strongly to any suggestion that I must re-insuro with the State Office.- This'is not the first instance of such practices; tho tiling has boDU growing for years in this colony. This is merely tho thin' end of the wedso for. the Government to annex the whole business. It is a deliberate attempt to rob' us of our business, to steal from us what our hard-earned money has paid for. In a grossly improper manner they are

obtaining this information and defrauding the whoio of the other companies. None of the other companies can get it, nor would they attempt to obtain it. Tho Socialistic practices of the present Government are simply making slaves of us, and if they are allowed to grow we shall soon be unable to call our names our own, or anything else. The Advances to V Settlers Department was ostensibly.set up to improve tho condition of the settler, to take him out of the hands of tho "sharks"; but while tho Government is pretending to do that they are, instead, simply putting us all in the position of slaves. This letter is sent out in the hope that the greater ■number of its recipients may bo taken in by it. What right has the State Firo Office to tell us what the Superintendent of the Advances to Settlers Office wishes? What connection, is there? What connection ougM, there to bo? None. The letter is written to give the impression not only ■that it is the wish that you should transfer your insurance, but that you are under' obligation to do so or you will suffer as a result, and I am in a position to know that many settlers have regarded it in that light. What have the wishes of the Superintendent •got to do with us? I'repeat that the whole procedure is disgraceful. Mr. Allhusen seconded Mr. Maxwell's motion. Some months ago, he said, he got exactly the same notice from the government Insurance agent in Eltham, tou !t a very peculiar thing. Wnen he got his advance, he took the precaution to get permission to insure m the Fanners' Mutual. He was glad Mr. Maxwell had brought the question ilorward, and he was satisfied that nino out of ten farmers • who received the' letter felt,that they were compelled to insure in the State Department. He regarded it as a gross breach of confadence. Why should the Government Department do what no decent lawyer would attempt? He had heard of several cases where people were going to insure m the Mutual, and had withdrawn and :g_ono to the State when they got the circular.

Mr. Bndgfl corroborated. Some six months ago he borrowed some money iron,i the Public Trust Department, and : shortly before the policy became due he got a similar letter. He was. however informed that they could not compel him to insure with the State Office, but •wanted-all insurance to go there. ♦i ill. AilIlUE ??' : T]l ey left me to infer that they could compel me if they liked. The Secretary (Mr. Sim): I could mention numbers of.similar cases ; Mr. Maxwell: - All the ordinary companies trade on proper, business lines'. ■Hβ have got to pay our. way in the Mutual; but the State Jiro Department ■has'the taxpayer to ■ support it: it is ftT? SUpposed tllat i* is working 'Mr. Marfell.' thought the words -.steal" and "underhand" too strong. ,1 was doubtful he.thought, whethfr anything could be gained by using language like that. .The man'who™! his ideas-very strongly did not usually get th 6 best of the argument. He strongly objected to the word "steal" doing? AUhusen: What else are they T , M F-, M ?rfell: They are doing it: but I thank it IS not well to tell tlfem that (Laughter.) The speaker thought, although, he did not. believe so him'sel, that many.people would say that the Ctovernment, having the information had a' perfect right to use it. ■ Mr. Maxwell said he. did not like the w °™\ 'steal" and "underhand" himself; but he was , quite sure they were necessary in this .instance.- A mild resowould go into the waste-paper basket. ...■■■■ ~... ■ Mr. Forsyth thought "underhand" an ugly word, and that it should be struck' Mr. Maxell's,.resolution .was ultimately carried unanimously.