AUSTRALIAN MUTUAL PROVIDENT SOCIETY.

Lyttelton Times, Volume CIII, Issue 12241, 29 June 1900, Page 3

AUSTRALIAN MUTUAL PROVIDENT SOCIETY.

A meeting of policy-holders in the Australian Mutual Provident Society was held at. the Chamber of Commerce yesterday afternoon to discuss the proposal c£ the directors to extend the Society's operations beyond the Australian colonies. There were between sixty and seventy persons present. Mr W. Acton-Adams, who was in the chair, said that he had received an apology for absence from Mr I. Gibbs, cue of the promoters of the meeting. Members of the Society were probably aware that at a meeting held, in Sydney the policy-holders bad unanimously decided to appose the proposal of the directors to extend the Society's business to England'. As far back as 1885 there, had 1 , been a similar proposal, but it had been defeated, and now it was being brought up again. The proposal had been opposed by such a paper as the Sydney " Morning Herald," and one of the chief speakers at the meeting held in .Sydney had been Mr Wan*, Q.C. Although many of the policy-hold-ers opposed the proposal of the directors, there was no feeling of 'antagonism, because they recognjsed that the Society had been splendidly managed in the past, and had: had a success that was almost.unique. At the same time they objected to the proposal to comimence business in-Engfead on three grounds—First, that it would increase the expense disproportionately to the profit; second, that it would, reduce the rate of interest ;' and thirdy that it would-introduce a.less healthy classi of policy-holders than those in the colonies. , Mr ActonrAdams said he need-hardly point out to them that to open a branch'in London would entail very heavy, expenditure, .if a splash were ■made. "w was generally the ance companies, in the/way of As to the second point, he said that the average rate of interest received,;, by the Australian Mutual Provident Society wasl per cent'' above that [received by the best English societies for their investment®, anA it was no "use earning more capital if they had' to-invest it it a lower rate of interest With regard tothe third point, Mr Richard Teece, &» actuary, had result of investigations over * 3**» period, that the average death-rate of the best. English companies was .more ttian double that of the Australian Mutual Provident Society.: . According to the figures quoted by a Sydney paper, while the population of the colonies was increasing 13 per cent, the Society's business was J»*»™S 17 per cent,- so that it was more *af lioldimf its own, .and there was no need to go to another place to start business that ra morJortefrisky. : As could the beat argument used by Sir Joseph Abbott in favour' of the proposal.was that a London office was necessary in able them to invest then money to the best advantage. Mr Adams said he did not Sk £ was the and * agreed with the arguments that had been advanced, he would ask them to support. tite MWb-Jftjj dent Society views with grave concern and Spproves of the revival of to amend the by-laws on such a way as to emjowe? the directors to extend STof the Society beyond *a AgOtt colonies; believing that would be fraught with miury to the interests of the members. Mr H. J. Beswick said that thei toes the Chairman .had: quoted with regard death-rate might be misleading.^?ate among the policy-holders of a_new SoSy mustbe lower than that of older,con> panies. ■ ', ' ',, | ■ Mr Joseph Gould .said that, he was not at all inclined to agree with the remarks made-by. Mr Aoton.Adams. I be Board of Directors of such a Society asthe Australian Mutual Provident must have some difficulty in bringing up such a proposal as the present one, because the Society had enjoyed such exceptional. advantages and prosperity, that people were inclined to desire to continue in the old way, and say, " Let well alone." The Society could prove no exception to the general rule; it could not standi still, hut must either go ahead, or fall back. He would join issue with the Chairman as to the return received for investments by the Australian Society, as compared with the English companies. He thought that they were not obtaining: anything above £ per cent over the rate received by the best English companies; and that amount was on such securities as wouio not be affected by their going to England. As to the death-rate, he thought it would be found that the English Societies were,ji anything, more favourably situated than the Australian Mutual Provident Society, which could haidly.be compared with other, older | societies, as it had not yet reached its maxi- ! mum death-rate. He thought that in such a matter they should, be guided-by the men 1 who had managed the Society SO exceMy in the past. They had thatvexpert knowledge which 'the-ordinary members could, not have, and the members also had the statement of the. Chairman of Dnectors, that almost all the chief officers werem -favour of the extension, and that the expense would be decreased rather than increased. The Hon J. T. Peacock said that.in setting up business in a place where there were so many .old-established companies, and where competition was so keen, they would have very heawy expense. He had made up his mind to oppose the proposal. Mr C. Hiorns said that he thought they would obtain quite as good lives in England as in the colonies Other Australian offices had branches in England, and were meeting with success, and he felt sure the Australian Mutual Provident Society would be successful. Australia and the other colonies, by reason of the, part they had taken in the present war, had been brought so , prominently before the people at Home that there oould'be". no more-fitting time to extend the Society's business to London. Mr C. M. Gray said he had no hesitation, I whatever in making up his mind to cordially '

phenomenally sucessfuL; and he had' im-j ;psicifc faith in the men who had ananag«d it: :'so -well ifli the past. "He: moved, as an'; amendment—" That this meeting cordialryj approves of the proposal of the Directors of! the Australian Mutual Provident Safety to! extend the business beyond the Arcsfcr.jßaffl' Colonies." • Mr G.-F. Martin said that he had once had ah opportunity of voting against • tte proposal, and he would do so again. To extend the business!to London must entail! heavy expense, and would invite" coairps'fition from other, companies. It was an experiment which, if carried out, woold be at': the expense of the older members, who had made the Society what' it was. He second-; ei the Ghairman's motion." : Mr C.W. Turner; said he sapported libe directors' proposal," and would second Mr! Gray's amendment. .'.-' '..v, , j Sfr J...M. Hey wood said, he had dceh a' policy-holder for some forty years, and he would support the directors. ; , The amendment'was then put, aid casriecJ by a large majority. ■ • .. The •meeting closed with a vote of thanks'' to the Chairman. '.''",'