GOVERNMENT INSURANCE ASSOCIATION.

Lyttelton Times, Volume LXIII, Issue 7561, 28 May 1885, Page 5

GOVERNMENT INSURANCE ASSOCIATION.

ANNUAL MEETING. [Pbb P.3ESS Association.] WELLINGTON, Mat 27. The first annual meeting of the Government Insurance Association Board was held in the Drillshed, this evening. Sir Julius Vogel was in the chair, and the other members of the Board on the platform were Messrs J. C. Gavin (Treasury), E. C. Hamerton (Public Trustee), N. Beed, J. H. Bethune, G. V. Shannon (Government nominees), and H. D. Bell, George Fisher, G. S. Graham (elected members). About 200 policy-holders were present. ' Sir J. Vogel proposed the adoption of the report, and after explaining the establishment of the Board, dealt at length with the figures in the report. After traversing the business for the year, he referred to the properties purchased by the Board, and thought no better investments could be made, as those investments would yield 6 per cent on capital, while they would have office room free. Then, also, the capital value of properties would increase from year to year. He denied that the purchases would reduce the amounts to be distributed as bonuses quinquennially, as such distributions were made on the value of the liabilities and assets. Referring to the staff, he said there was no intention to place an officer over the head of Mr Luckie; but the Board did not feel itself justified in entering into an agreement with that gentleman, as they were of opinion that at soihe future time it might be found expedient to obtain the services' of a gentleman who had had long experience in an institution of this kind. One step the Board intended to take was that of endeavouring to enlist the assistance of policyholders in obtaining new business, and it was proposed to offer a Bmall commission to those policy-holders who placed business in the hands of agents. The Board had come to the conclusion to invest the funds in mortgages of real property, and great caution would be exercised in such cases. At present the Board was limited to 50 per' cent of the value of the property, but they intend to ask Parliament to extend the limit to two-thirds. They had four classes of securities—lst, Loans on policies ; 2nd, Government securities; 3rd, loans to local Boards on Parliamentary securities; 4th, loans on freehold properties. The Board also intended to ask Parliament to allow them to sell .annuities out of the Colony. One of the members of the Board was going on a visit to England shortly, and he was empowered to select one or two young men" who might be willing to join the institution at a moderate salary. Gentlemen would be selected who had had many years' experience in insurance business. He next referred to local Boards, and said he was anxious to have the matter fully ventilated. explained at length the benefit to be .derived from having in each large cantre a Board composed of gentlemen who would "lake an interest in the affairs of the Association. It had been decided by the Board that any motion re appointment of local Boards or otherwise would be received to-night without the usual notice being given, and the feeling of the meeting would be tested, and then it was open to any two policy-holders to call for a poll on the question, which would be taken on a future day, when holders could exercise their right of vote by proxy; Mr H. D. Bell seconded the adoption of the report. Mr G: Fisher denied that the properties, at all events the Dunedin one, were yielding 6 per cent. He also said that the Auckland property was unfit for insurance business, and a large amount would* have to be expended on it. He had suggested delay in the purchase of this property until after the annual meeting of the Association, but by the casting vote of the , then Chairman (Hon J. A. Tole). the suggestion was not adopted. He read a statement of figures showing that the Association, by investing its money in Government Debentures, instead of going outside, would, in five years, lose upwards of .£50,000 in interest. He considered the Colonial Treasurer should not ! occupy, the Chairmanship of the Board, and, when the Amendment Bill was before Parliament, he hoped a change would be made in this direction. He objected altogether to local Boards. Mr H. D. Bell asked the policy-holders not to believe that the Board was squandering their money. There were, no doubt, large sums invested in Government securities, but they were gradually being withdrawn, and invested in other ways. Mr Graham thought at present local Boards were not required. 4 After two or three policy-holders had addressed the meeting, and Sir Julius had replied, the report and balance-sheet were adopted. Mr George Beetham, M.H.K. for Wairarapa North, moved a resolution to the effect that local Boards should not be appointed. A show of hands being taken, the Chairman declared the motion carried.

Sir Julius Vogel asked if any policyholders demanded a poll ? Mr Beetham said he did not wish the present meeting to decide the question, and, with a view to allowing policy-holders in distant parts to express their opinion, he demanded that a poll should be taken. It was decided that a poll should be taken at an adjourned meeting to be held this day month. The elected members of the Board voted in favour of the motion. The meeting ended at 11 p.m.