Page 2 Advertisements Column 4

Evening Star, Issue 4884, 26 October 1878, Page 2 (Supplement)

ADVERTISEMENT. Members joining now will then participate pro rata. Of course the bonus for twe months will not be much, but it will be enough to assure them of what their future bonuses will amount to, and it is greatly in favor of new members joining before the end of this year that they will not break into the next five years, which commences with Ist January, 1879. Mr M'Doaogh tells ub that one of the directors expressed t>urprise at our success in New Zealand. This was quite true; but d'ota this show up the weakness of the Mutual? How many more express surprise that thousands do not immediately take the advantage offered by joining the Society, which is the admiration of the insurance world ?

The following statement, which appear* in my pamphlet, is challenged by Mr M*Dooogh:— ' " Its Origin. Thirty years ago two benevolent men named Thomas Holt, Esq. (who still lives), and Thomas Mort, Ksq. (recently deceased). Were conversing about sund<y needy families and the idea *as suggested by Mr Holt, and immediately taken up by Mr Mort, that a sooiety ought to be founded on the oo operative principle to make provision for old age and premature death; and with generous promptitude tney immediately set themselves to this laudable undertaking, and succeeded in securing the valuable assistance of a friend well up in figure* to act as secretary. These three gentlemen gave their time, stipulating for no special benefit* they were to receive; in faofe, no fee was paid to any person during that year. The office at first in use was secured at an annual rental of L2O, in consideration of the scheme being a purely philanthropic one," A public demonstration took place on the 93rd of January, 1877, to celebrate laying the founda-tion-stone of the new offices of the Society, when Professor Black, the president of the Society, said—" It is a noteworthy point that in settling the constitution of the Society the originator* stipulated for no special benefit to themselves. Of late we have been so accustomed to see the ' promoters' of public oorapaniea taking the lion's share of expected benefits, that it is quite refreshing to meet with a oase of an opposite oharacter. The founders ef our were actuated, I believe, by purely philanthropic motives. They were desirous of creating and fostering among their feilow-citizens habits of prudent economy and foresight. The only iuducement held out to the early members of our Society was that if any profits were made in the first five years two-third* should go to the first 100 policies. As a matter of fact, the profit of [ the first quinquennium was oaloulated at I about L 1.900, of which L 1.286 was allotted;" and when it is understood these first 100 members were entitled to no further special considerations, but in future took an equal share of profit* ACCORDING TO THS IHOKHABHD VALUH of their policies, the equitable ohwaoter of the proceedings of the Society ole*rly appears. It will be. noted in my pamphlet that, while Hnder the heading of " JSeuurity" I give an appropriate illustration of the point there by a reference to "the second policy issued by the Society," my example* under the heading of "bonuses," for the guidance of new insurers, are all instances of insurances effected under the present method of distributing profits.

Mr M'Donogh speaks of the number of policies in «ur Society which have fallen through during the pa»t year as evidence of dissatisfaotion on the part of insurers. The simple answer to this is that, while in all in»uranoe societies (Government inoluded) a large number allow their policies to lapse, the larger surrender value the Mutual Provident Society offert to Buoh enables thorn to do so with, leg* personal loss than in the Government or any other Society. in premiums into the Mutual, and the surrender value of mypolioies(if I wished to relinquish them i»-day) is 1,1,350. "When a polioy has existed five years, the surrender value is about TO per •ent. of the premiums paid. There is no ether Society doing business in the Colonies in which the surrender value is so large. The number of policies referred to as lapsing during the post year could be largely aoeouated for by sueh.misrepresentations of our Society aa that wifeh which I am now contending. Mr M'Donogh says ?—" Referring to the Society's funds, Mr Short states that the accumulated savings in his Society at the elose of 1877 amounted to nearly 15,300,000, every penny of which, he adds, belonged to the insurers themselves, and he further terms this 'astonishing prosperity.* And no doubt it would be if it were savings, but I should like to ask Mr Short—Were not the outstanding policies, amounting to nearly 112,000,000, to be paid out of this sum of L 2,300,000?" One would suppose from reading Mr M'Donogh's letter, that no profits could be calculated by the Mutual till the whole L 12,000,000 insured'had accumulated. Ths absurdity of such a supposition is apparent on the face of it. A man thirty years of age, without profits, pays the Mutual Llßl7s 6d annual premium to insure LI,OOO. This member, if a first-class life, will live thirty-five years; he may die tomorrow, but the law of average secures the Society. Mr Black, the Society's Aotuaiy, says:—"The Assurance lAmd considerably exceeds 90 per cent, of the whole of the premiums received under policies now in force. That is a proportion which has rarely if ever been attained by the most successful Assurance Offices at the end of their 25th year ; it satisfies not only all the conditions of safety, but proves also the existence of a large reserve fur bonuses to the participating members of the Society." Mr M'Donogh's concluding remarks leave the impression that the total new business completed by the Australian Mutual was L390.0U0, whereas this amount was completed in New Zealand alone. The total new business effeoted during the year amounted to L 1,880,000. The annual report of the Society certaiidy gives no information as to the percentage of expenses in New Zealand separately from the rest of the business, as any inquirer may discover, although Mr M'Donogh states he gained his information that 50 per cent, was the cost of obtaining new business from the Society's annual report, the fact being that 15f per cent, covered the whole of our expenses, including commission for new business, in New Z«alaiid last year. About 11 per cent covered the total business expenses of the Society hvtt year. I prefer making no comments of a personal character, or even returning the compliment by showing up the weakness of any other scheme. My own Society is quite good enough without my decendinar to such a course. I also believe there is quite room enough in New Zealand for the Government scheme and the Mutual Provident Society; and I am quibe willing the Government should Reeure a share of business, seither do I thi k the Governme»t will countenance these unprovoked attacks upon our Society. No reference whatever has been made in my pamphlet to any other society; and I may state that the pamphlet was first supervised and sanctioned by our Secretary an>» Board of Directors, which comprises the fallowing geatlegentlemen :—The Hon. C. J. Pharazyn, Sir William Fitzherbert (the Speaker of the £Tou.«e), A. De Brandon, M.H.R.; George Hunter, M.H.R.; and the Hon. M. S. Grace, M.D., M.L.O.

So far as Mr MDonogh quotes mr own words in his letter I still endorse them, but without committing myseif to his interpretation of theta, and thank him for the compliment expressed in the terms—" The »bove is a truthful statement of facts, and is to be valued as coming from Mr Short." It is, perhaps, an evidence of his judgment of the truthfulness of my statements on the advantages secured by becoming a member of the Australian Mutual Provident Society that Mr M'Donogh has himself recently effected a policy in our Sooiety for L 506. And as ho most necessarily know so much on Insurance business, and actions generally speak louder than words, I have no doubt many will be strengthened in their decision to lose no time in following his wise example and become members of a Society to which it may well be considered a privilege to belong. Facts. Rvery death claim has been *»aid out of Premiums alone. Only about 70 persons have died out of eaoh 100 expected and provided for. The Assurance Fund exoeeds 90 per cent, of the whole of the premiums received on existing policies. PBBSENT MODE OP DISTRIBUTING PBOFITB. Examples.—A member, aged thirty-five, insured for LI.OOO in 1869. In 1873 bis bonus addition was L 139, wh.reas he had aoaieely paid as much, his annual premium being L 27 16s 84; or he could receive a cash bonus of L4S. Another member, aged twenty five, insured at the same tme for L 1.090, and paid L2l6s 8d per annum, and in fiveyearshis total premium* paid amounted to LIOB 13s 4d, and his bonus for the same period was L 15 1; or he could receive a cash bonus of L 36. These bonuses are not likely to be less in future, but larger still. Policies effected now will share pro rata in bonuses divided next year.

Address: BENJAMIN SHORT, Car© of Edmund Smith, Local Agents Savings' Bank, Dunedin. DVERTISEMBNTS received at the Stab Office, Bond street, not later than 3.30. Waaij.uu' xuivwa —xxun oui-neaas, kjboulars, Cards, Programmes, and GenoAl Printing of every description, from entixdy ne* type, are executed at the Bvhntno Stab Office, at moderate prices. D VKBTISHRS in the Btbniho Stab wish- _ fag their notices to appear en tin Moond page *ffl oblige by delivering them atthe office not later than 8 o'clock. IBTHS, Marriages, Deaths, and Funeral Notion are reoetvecl by fta Bvmasa SJXAB l2.BQp.m»daflv v