NEW ZEALAND GOVERNMENT INSURANCE ASSOCIATION.

Evening Post, Volume XXXII, Issue 24, 15 June 1886, Page 2

NEW ZEALAND GOVERNMENT INSURANCE ASSOCIATION.

+ MEETING OP POLICYHOLDERS. The annual meeting of tho policyholders in the New Zealand Government Life Insurance Association was held at the Athcmunni Hall last evening 1 . Sir Julius Yogel, Chairman of the Board of Directors, presided, and. with him on tho platform were the members of the Board, together with" Mr.* Stafford, the Association* legal adviser, and Mr. Luckie, the General Manager of tho Association. "Tho minutes of the last annual meeting and the supplementary meeting wore read and confirmed. The Chairman annonnced ihat Mr. Nicholas Reid, one of the nominated directors, went out of oflice in accordance with the rules of tho Association, but would continue to apt „on tho Board until his 'suoc^sfcor was appointed. Sir Julius also announced the rebult of thp election of a member for the seat occupied by, Mr. G. S. Graham, whpjo term of offioo had expired. . He reported flat 2571 votes had been recorded in favour pf Mr. Shannon and 1-128 in favour of Mr. Graham, the only othor candidate Thore were 628 informal votes, 375 being, for Mr. Shannon, 208 for Mr. Graham, and, 45 . for neither. , •...[.,' The umendmont was received with' applause. , ,j The Chairman, in moving the adpption of the annual report and balance-sheet, which were taken as read, said that during 1885 4379 policies worO' completed, ns against 3509 in 1884. In'lBSs the amount assured was £859,769, as against .£BOO,OOO in tho previous year, showing a considerable increase both in the number of policies and in the amount assured. The accumulated funds had increased from .£972,776 to 41,102,034. He did not think there was another insurance institution which at §uch an early stago of its experienco could , show euch 1 satisfactory results. The expenditure, however, showed a considerable* increase, which was partly duo to the quinquennial examination and partly to tho transfer of tho department from the Government to its presontform. He was doubtful if it was possible, under tho present management, to carry on tho business as cheaply tie the Government, with the aid of tho Post Oifice, wero able to do. The expenditure last year was 428,000, as against 420,000 for tho two previous years, whilo the estiuiated expenditure for the present year was ,434,000. Tho Board were, lending con■siderable sums of 'money on mortgage on freohold securities. They got a high rate of interest, but " it must bo borne in mind that these loans wore for short periods. His opinion was that a good Government socurity at 5 per cent., for 20 years, and upwards,-* was more" likely in the long run to bring in'ii bettor rate tfian loans for short periods. If ho road the signs of the times aright tho rates of interest on mortgages would fall very much during tho next few years. Tho Industrial Branch of the Association had been discontinued so far as the (taking of now business was concernod, but .do ono hadj jfoen forcod to close his or her policy. As tho constitution of the' Board of. Directors would bo discussed at a later stage of tho proproceedings ho would not now Bpoak on that subjoojb atlongth.but would merely say that ho utterly disclaimed tbo statements that tho Association had beon used for political purposes. Tho majority of tho Board of Directors would bear him out, in this. It had beon tho endeavour of tho Board.'ld push tho business, but throughout their term of office they had tried to do a safe and jsound business, and notwithstanding considerable opposition they had so far done a very satisfactory businoss. Ho now camo to- the quostjon of the appointment of Mr. as agent for Otago and SouthlahS}- ,and ho thought it was desirablo to explain how that appointment was made. The Board had evidence that tho business in those parts of the colony was not of a satisfactory character, and it was thought that if a change was domed some radical change in the management in Otago and Southland must be mode. 'Ho (Sir Julius Vogel)and Mr. Nicholas Eoid wero appointed to enquire into the matter. He raet with an acoidont in Christchuroh and could not go to Dnnedin. Mr. Reid went down and carefully enquired into the matter, and on Ids return ho and the speaker had a consultation on the subject, the conclusion they came-to being that if an increase was desired in tho business in Otago and Southland somo gentleman should be appointed who would be able to put tho agencies on a bottor footing than they thon stood, and so enable tho Association to compete on equal terms with othor institutions. They considered that if Mr. Driver could be induced to accept tho position the appointment would bo a most dosirablo one. Mr. Driver consented to become agent for Otago and Southland at a salary of 4800 por annum, and commission, which at the end of tho first year would bring him in 4200 ; and ho considered that the improvement that had taken place in the business since that gentleman assumed office proved that the appointment was an excellent one. There was noither friendship nor political leaning in tho share he (Sir Julius Vogel) had taken in the matter. He considered that it would bs desirable to seoure Mr. Driver's services, and that was the sole reason why ho wished him appointed. With regard to the purchase of buildingß, about whiah a groat deal had boon said, that matter was discussed at tho last annual meeting, and he had nothing much to add on tho present occasion. If tho business was to bo carried on in its present corporate character, it was necessary that they should have large buildings in central positions in tho chief centres. It had beon proved that such expenditure paid in tho long run. The Chairman announced that Mr. John Duthie would bo recommended as the successor to Mr. Shannon, who had resigned his position aa a nominated member, and that a Bill would shortly be introduced into the House enabling tho Board of Directors to distribute tho quinquennial profits as soon as the report of the actuaries was received from Great Britain. Mr. H. D. Bell soconded the resolution. Mr. G. Fisher, M.H.R., spoke at some length as to the purchase of buildings and tho appointment of Mr. Driver, commencing his remarks by combatting tho idea held by many that it was wrong for a member of the Board of Directors to discuss in public the details of thoir transactions. He explained that the business of the Australian Mutual Improvement Society was recently discussed at a large meeting hold in Sydney, and said ho could not see that any harm whatever could result from speaking in public of tho business of tho New Zealand Government Associotion. His opinion, in fact, was that good would resnlt. Regarding tho purchases of buildings, granting that sufficient money had been spent to bny fine buildings, where woro they, he asked. In Dunedin the Board had spent 435,000 on property which only brought in about 4fc por cent. [Mr. Bell— 6 per cent.]. He denied that tho interost was at tho rate of 6 por cent. From April to April tho rato of interest, was about 4i per cent.', which ho considered showed that tho investment had not been a profitable one. The Auckland purchase had cost about 419,000, and since the Association hadmado it thoy-hadlost' about 41000 as interost on it. Tho "Wellington purchase was an admirable ono. Regarding the Christchnrch property, he was partly responsible for its purchase. It was not bringing in a fair rate of interest, and for many years it would not do otherwise His opinion was that if tho purchases yfere not for political purposes, tho men who made thorn were 1 exceedingly bad business men. As to the appointment of Mr. Driver, he would point- out that since that was made there had been a disastrous falling off in tho business at the Dunedin office. In the first quarter of 1885 the new business under Mr. Clapoott was 439,012, while in tho first three months of the present year, Mr. Driver being in charge, it only amounted to 436,150. Tho lapses during the same period last year amounted to 432,805, while those during the first three months of the present year amounted to 417,844. These latter figures were to the, credit of Mr. Clap-, cott, because they ehowed that when he" took office the state of the business in Dunedin was bad,' and that whon ho loft it was so satisfactory that the losses during the first quarter of the present year were much smaller than in the corresponding quarter of last year. Whilo the business in Dunedin had decreased tho office expenses had 1 increased < from 4570 .a year to 41740. Mr. Fisher then Bummorised a controversy which recently took place between himself and Mr. Bell in, the columns of Southern journals. The proposals received by Mr. Clapcott very much exceeded thoso received by Mr. Driver in a corresponding period. In the first quarter of 1885, the former gentleman received proposals to tho amount of 483,941, while thoso of Mr. Driver for the past quarter of this yoar only gave a total of 481,882. For the months of February, March, and April, Mr. Clapcott received proposals amounting to 492,270, as against 483,040 received by Mr, Driver. He claimed that Mr. Clapcott " wiped out" his successor all round.. Yet a gentleman ■ who had these figures at his disposal had stated to-night that the business of the Otago district was in a lamentable state, and therefore it had become necessary to appoint a successor to Mr. Clapcott. . The thing was ludicrous to the last degree. (A voice— Then why make the appointment?) The Chairman had' said thit it was not made for political reasons,', ' He could only' reply that if it was done from business ■considerations, it meant extremely bad business. He (Mr. Fisher) had taken great pains to explain to the policyholders throughout the colony what the operations of the Board had been. In response to an inflnontially signed requisition he had gone to Dunedin, and addressed an influential meeting, which he waa glad to say, took a sensible view of the position. Though he fonnd fault with the management of the existing Board, it did not follow that because its management had been defective and unsatisfactory, a Board properly constructed was likely to conduct its affairs in the same way, and he hoped that when reconstructed a very different result from the present would be shown, Mr. Bell said ho did not propose to follow his colleague (Mr. Fisher)'into the discussion of the questions which he had opened, nor, did he concur with that gentleman in the' opinion' that it was right on a public platform to enter into the details of matters that had come before the Board. All he now desired .to do was to place the correct figures before tho policyholders, and allow them to judge whether thoso^'given by Mr.' Fisher were accurate. He had not been a party to tho purchases of sites, nor to Mr. Driver's appointment, but he accepted the fullest responsibilities for these acts as a member of the 'Board, and becnuse'he approved of what had been done. Both the Wellington and Dunodin sites were purchased by the Government before the Board came, into offico«aud what was now the use of crying stinldngjiah. With regard to the Dunedin. property, if, wag let at .good rental to tenants .who; would 'not surrender their leases. Sir. Fisher's statement as to the Christchuroh". property was inaccurate, for the Association had bought two sections, one of whiah cost 410,250 and the other; 41500.'. , The Auckland ."buildingwas in one ofjth'e best position* in the city, and for the reason why, it iad not been bn}.lt upon he must "refer his hearers to Mr. Geo. Fisher, Chairman of the Building Committee, la spealdn.tr of the Driver appointment be

pointed out that the CninterbhrV business had fallen off by some J629,000, and |as the Otago business did *i\ot dfeprociato to suqb ua extent, ' tho balnhjSß* was in Mr. Driver's favour. v Tho distriiß manager was not appointed to canvass for new business, but to save lapses, sco that premiums wero collected and surrendersavoided, and on account of his business' qualifications. He would venture to say that the policyhohlers would yet have causeto congratulate themselves- upon tho appointment, emd'tb thank the members of the Board for their action in the matter: Mr. Nicholas Reid said that Mr. Clapcott had 'besought him, with tears in his eyes, that ho might bo relieved of his offico, as ha was physically and mentally unfit for the position, and'he then tendered his resignation. Mr. Eeid expressed approval of -Mr, Drivor's appointment, and oon.s"enined!she Auckland and Christ^hurch purchases, though as a diroctor ho took his sharo of tho responsibility for them. l Mr. G. V. Shannon thanked the policyholders for the i>roud position in \vhicn they had placed him, and explained the oireuinBtances connected with tho appointment of Mr. Driver and Mb salary. Ho hud resisted to the utmost tho propo&al-to guarantee that gentloman .£2OO per annum. In 'reply to Mr, J. M. Dargavillo, M.H.E., the Chairman stated that the total amount of assurances — for which QovonVment wag responsible— was Replying to Mr. HursthoubO, the Chairman said "that Mr. Driver was now devoting the whole of hit) timo to the Associajapn^but it had taken Lluv three mouths, to dissolvo his own business. , Mr. W. T. L. Travors thought that tho state of affairs on tho platform indicated tho evils resulting from mixed management. For his port he bojioyed that, thoro was sufficient business ability* amongst tho policy holders to manage their own tufoirs. Ho dopreeated discussion of tho wisdom or t othertrise of Mr. Driver's appointmeut nßon only threo months' trial. . Ho could not see ' tho nocessity of spending largo sums in magnificent buildings, and ho knew something of tho secret hibtpry of one of tho land purchases, whiohj "if 'investigated,' ' would' ho found, rathor "fishy." Tho Govern-, nieut guarantee was not worth a, farthing as 'compared with the guarahtde of h substantial accumulated fund,' suchas 1 word' possessed by tho insurance companies which ho named. Tho 'Association ih : the past had been "used by successive Governments for political purposes, for which they woro almost obliged to, exercise' the patronage placod in their po.wor. Tho funds should be proporly invested — ho did not say the Government funds woro not good investments— and tho .policyholdejs would then bo content with thc^acoumTQa'hon as security. It would bo hotter Hb.'hSvoentire control in their own hands than to have for years the exhibition of a divided board coming before tho polioyholdere vilifying and calumniating each other and quoting contradictory figures, to tho detriment, of tho business of tjlio institution, , Replying to quostions, Sir Julius Vogel said that a largo building would bo orocted on the Wellington- property, and arrangements in that direction wero now boing mado. The Board was not, however, committed to this course. , ,< Major Atkinson intimated that ho intondod moving at tho proper timo that tho present building bo not removed,' iw»d tho Chairman said ho could only accept such a motion as.bohig tacked on to tho report. Major Atkinson then moved an amondinent of that nature, nnd spoko at somo longth iv its support. Ho favoured tho constitution of a' Board comprising -threo elcctod and threo nominated mombors, nono of tho hitter to be mombers of Parliament, and tho election of tho chairman by the Board. He objected 1 to tho land purchases, not booauso thero was anything impr'o'por about them but booauso they woro unnecessary. Comparisons with other Associations which had beon in existence about tho sauio time as tho Now Zealand Association woro mado in favour of tho latter. Tho Mutual Lifo Association' of Australia, which had beon in existenco 16 years, had an,ocauinulatod fund of £405,000 : .National' Mutual Association, 16 years,' ; -Mutual Association of Victoria, 15 years', .£257,000; Colonial Mutual, 11 years, .£470,000: and the . Now Zealand Government Association. . .£1,102.000. (Ohoers.V Thug they had a nioo snug roservo fund, and at tho back of it tho Government guarontoo, Major Atkinson concluded by moving as an addition to tho motion for the adoption of (Continued on fourth page).