The Daily Telegraph. FRIDAY, MAY 1, 1885.

Daily Telegraph (Napier), Issue 4293, 1 May 1885, Page 2

The Daily Telegraph. FRIDAY, MAY 1, 1885.

Almost simultaneously with tho announcement that the New Zealand Government Insurance Association intends to establish Boards of Advice at the principal centres in the colony, comes the report to be presented to the thirty-sixth annual meeting , of tho Australian Mutual Provident Society. Tho report of tho one, and the intention of the other to cumber itself with unnecessary administrative machinery suggest a comparison of the two associations. The thirty-sixth annual report of the Mutual Provident murks a new era in the history of the Society as it is tho first issued since the inauguration of tho sj'stcm of an annual division of the profits. This new system would seem to be highly appreciated by the insuring public judging from the largo increase of business done during the vnr. During the twelve months ended Deou..: ..-l - 31st, 18S1, there were received 12,548 proposals for sums amounting to £'1,057,590, of which 3553 were declined, withdrawn, or not completed, leaving 5695 proposals accepted and completed, assuring £2,007,1-1-0. If wo add to these the completions in respect of proposals receiver] prior to January 1, 1884, 171 proposals, we find the total of the new business for tho year 8,860 policies for £2,902,-102. This splendid result of twelve months' working may well be matter fer congratulation both to tho directors and to tho policy holders. The number of policies issued since the establishment of the Society to December 31, 1884, has been 88,430, assuring £31,757,836, of which27,l32 assuring £9,095,387 have been discontinued, leaving 61,298 existing policies assuring £22,102,-141). Tho annual income from premiums amounts to £738,900, and from interest to £335,952.. omitting shillings and pence. The total funds invested amounts to ±5,371,460, tho liabilities, that is to say if every one of the policy-holders were to die, to £4,959,619, leaving a surplus of £111,847. Of this surplus it is intended to give a cash bonus to the members of £262,434. The enormous business that is represented by these figures is managed by a Board of six directors at Sydney, and branch Boards in the capital cities of each of the Australasian colonies. Let us now turn to tho comparatively small business of tho New Zealand Government Insurance Association. This concern is managed primarily by a Board of ten directors, and those gentlemen are to be further assisted by localjßoards of Advice at Auckland, Christchurch, and Diuiedin. We have already expressed our opinion upon the utility of these so-called Boards of Advice, and we do not feel called upon to say more than that they will be of no use whatever. It is no use disguisfng the fact that a large number of policy-holders regai d unfavorably the changes brought about in the management of the New Zealand Insurance Association. It has even been hinted that those changes wore more of a political than a business character; nevertheless, tho establishment of a central directory met with little or no opposition. The constitution of that directory, however, was a different matter. When it was seen that the Board of Directors was to consist of a Minister of the Crown, the Solicitor-Gen-eral, the Secretary to tho Treasury, and the Public Trustee—a Minister, and four public servants under the thumb of that Minister— and three Government nominees, with threo others elected by tho policy-holders, it was at once seen that the whole thing was a sham. Constituted as above there need bo no other on the Board beside the Minister and his immediate subordinates. The whole arrangement could have no other object than to give the policy-holders a semblance of the shadow of management without the slightest particle of the substance. And this hollow gift was not sought for, it was a gratuitous donation at the expense of the policy-holders, without any corresponding benefit. To add to tho expense this excrescence, entails tho policy-holders are now informed that steps are being taken to establish an equally hollowsham inDunedin, Christchurch, and Auckland. And for what purpose f The whole business of tho Association is a mere flea-bite compared with the Mutual Provident Society, and, considering everything, no be lost for practising the most rigid economy. But instead of economy there is every appearance of extravagance, and of increasing extravagance. Instead of the business being conducted as far as possible by the Postmasters in each district, who have already proved their ability to perform it, at a slight increase of salary, or on commission, an entirely separate department has been created in contravention of the understanding entered into with the original policyholders. Not the least inducement held out to intending insurers was that in addition to the State guarantee, the administrative machinery was already in existence. Gradually a department was created with all the paraphernalia and expense so dearly loved by a department. We have now agents and inspectors, and what is far worse wo hear of tho purchase of costly building sites for the erection of palatial offices to vie with those which have no State guarauteo and no special advantages for the economical administration of their business. We are not going to say that these purchases are not good investments, but we do say this, that the money to buy them came out of profits which it was understood were to be divided amongst the policy-holders. Altogether, we ' think the policy-holders have grave reasons to be dissatisfied with the turn that has been taken in tho management of the "business, more especially on account of the evidence they now have that the Board of Directors at Wellington are unable to resist Government pressure.