CONSOLIDATION

Evening Star, Issue 15139, 22 March 1913, Page 2

CONSOLIDATION

IN FRIENDLY SOCIETY WORK. Consolidation of the sick and funeral funds belonging to the various branches of a friendly society in any district is a ma.tter much discussed 1 nowadays in friendly society circles. The principle involved is really one of extended application of that unity which underlies the ordinary friendly society operations. Therefore information on the- subject of consolidation is of interest to members of friendly societies. Consolidation of the sick and funeral funds of all the Courts of Forestry in Otago and Southland was one of the principal matters before the Foresters' Annual District Meeting, which opened at Oamaru this morning. Consolidation had been previously decided on, a.nd it only needed the confirmation at this meeting of the previously arrived at decision, and of the now rules in connection therewith, in order that the requisite steps might be taken to pub consolidation into operation. As some exception was taken to consolidation, even at this late hour, the District Executive submitted to the meeting a letter from the Sydney (Now South Wales) District of Forestry, which body have, had consolidation in operation for the past two years. This letter was additionally interesting from tho fact that tho writer stated that he strongly opposed consolidation when it was proposed. He had, however, changed his opinions in respect to consolidation since it had been in operation. As he had been a court secretary, and was now District Secretary, ho was in. a position to compute the value of consolidation from its inside as well as its outside working. The writer stated at the beginning of his letter that he wished to say that whilst the system of consolidation might not be all they expected, nevertheless, tho Sydney District had so far found it of great value in tho way of putting the district upon a sound financial basis, as well as being a great assistance to their members who wanted to take a clearance from ono court to another court nearer to where they resided. Consolidation had placed the whole of their sick funds under tho direct control.of their District Trustees and Management Committee, who had experienced no trouble in getting it all invested at 5 per cent, upon what was considered to he gilt-edge security, seeing the district only lent 65 per cent, of their own valuation. Formerly, somo courts lent money on much less iavorable terms—-even as low as 2£ per cent, interest. Another very important improvement that consolidation had effected was that there was no longer wealthy courts or poor courts. Full sick pay allowances were now guaranteed to members of all tho courts in the district. Tho improvement in the matter of clearances was evident from the fact that members, even if they were 80 years of age, or over, coiilcl place his clearance in any court in tho district without paying higher contributions for age reasons. The writer not only withdrew his personal objection to consolidation when the registrar explained tho advantages of adopting it, but lie advised others to do likewise, and he was pleased to say that their two years experience of consolidation was that while some hundreds of members had been benefited by tho cJiangeto consolidation, not Oiic member could honestly sny that he had lost a farthing by it. A groat deal was made ot the idea that if consolidation Were put into operation, and the funds taken away from the individual courts, it would cause members to lose all interest in the work of the Order, and that sick pay would bo paid away to anyone who cared to apply for. Hu said 1 that the Sydney District had not found such to be the case. In fact the opposite seemed to Iks the case, for their increase both in membership and in funds had been greater during tile past two years that consolidation had been m operation than it ever was at any previous period in the history of the district. Briefly stated, the benefits conferred by consolidation wero (t) a guarantee that every member would receive his full benefits; (2) a free clearance system throughout the district; (3) a better investment of funds on business lines; (4) a higher rate of interest-earning, which meant higher benefits or a lower rate, of contributions ; (5) less responsibility for subordinate court securities.