OTAGO FARMERS’ UNION

Nelson Evening Mail, Volume LXVI, 22 June 1932, Page 7

OTAGO FARMERS’ UNION

MUTUAL FIRE INSURANCE ASSOCIATION

THE 27TH ANNUAL MEETING

The twenty-seventh annual meeting of (lie Otago Fanners’ Union Mutual Fire Insurance Association was hold in Dunedin. Air John Clarke, Chairman of Directors, presided over a. good attendance of members.

In moving the adoption of the statement of accounts and balance sheet Mr Clarke said :

“You will, I feel sure, be l very gratified to note that after making further provision for all possible contingencies including bad debts, the Association has shown a net- profit on the roar's working of £2.200 2s 8d and that, the general assets have increased to £1'27,325 7s lOd. This represents an increase during the year of £8,797 9s Bd.

“It is particularly pleasing to me to have to report that during the past year our income from fire premiums shows a substantial advance and this despite the fact that the Association’s three inspectors have spent the greater portion of ‘heir time re-inspecting risks and writing down our covers in conformity with the general reduction in values. “You will remember that I mentioned last year that the. policy of the Directors was to sec that every risk was reinspected, and where necessary written down in the light of present day values. This has. of course, considerably reduced our fire income, but the increase in new business has been such that wo have more than made up for such loss.

“One matter which has been a cause of great regret to the Directors and to our managers lias been to see staunch clients of the Association, many of them members of long standing, being forced by some of the stock agents to transfer their insurances to the particular company for which they hold the agency. I realise that if the stock agent has to debit the current account with the premium and take the risk of being reimbursed, then he has a very good argument from his point of view, but it does seem to me to be rather like rubbing it into a man who is down, for a stock agent to debit the farmer’s current account with a premium approximately -40 per cent, higher than our own in order to ensure receiving a commission on that same premium. Fortunately, most of our members arc made of staunch material, and few are taking •this lying down. I am pleased to state that all stock agents arc not taking up this unfair attitude.

“Despite all these factors and despito ihe economic position generally our fire premium income has shown a steady increase. “One very pleasing feature is the growth of the Association’s business in the Nelson Province. One of our inspectors, Mr W. H. Lyons, has been working in that territory and assisting the local agents, and the response has been most encouraging. In one month alone he l wrote up over £40.000 worth of new business. Our General Manager, Mr A. 0. Cameron, recently visited the Association’s agents there and in Westland, and is convinced that from these two tcnitoi ies alone we can look for a very great increase in sound business. In these Provinces, as in Canterbury and Southland, we have had the staunch support of the Farmers' Union Provincial Executives. “As is only to bo expected, our Accident income shows a falling off, and it is surprising that the drop is not greater than £573 considering the total inability of many farmers' to employ labour. “One of the greatest evils of the slump is the certainty that many tracts of land will go back through the inability of the farmer to employ the necessary staff (o do essential work, On all sides, one sees fences going, noxious weeds .increasing. land going out of cultivation through lack of attention to drainage, etc., rabbits increasing rapidly, pasture being ruined through inability to carry the necessary stock, and so on. True, many farmers are getting a great deal of assistance through the various uncinployment schemes, but this type of labour cannot and never will replace that of the sturdy independent employee who has an interest in bis work, and (lie prospect of one day owning a small bolding of his own. “I am glad to report that our fire l and accident losses have just about, been norma]--our tot ft 1 losses for the year being £5305 19s 4d. Our policy of rcinspcclion lias undoubtedly had the effect of reducing our fire losses. “Many of our accident claims have been of an extremely trivial nature and we would again appeal .to our members to co-operate with us in combating anything in the nature of lead swinging or nnjustifiable claims. “During the past twenty-seven years, we have mentioned at more than one annual meeting that the directors hoped at some time to commence a staff superannuation scheme. We believe the time has now arrived when the scheme can be successfully launched and the directors have set aside, as from Ist April, the sum of £SOO as the nucleus of sucli a scheme. The scheme decided upon is not an elaborate one but we hope that it will at least provide a moderate retiring allowance to the members of the staff who loyally remain in our service until they reach old age. This you wil. •igree is sound business. • ■ • “I cannot conclude without paying a very warm tribute to the work of our general manager, Mr A. C. Cameron, and his staff. . . . Might I say that 1 think we are exceedingly fortunate in our general manager and his staff, and T take this opportunity of expressing the warm .appreciation of the directois for the splendid work they have done and are doing. I have pleasure in moving the adoption of the statement of accounts and balance sheet.” Mr A. C. Leary, vicc-Chairman, seconded the motion and referred to the sound position of the Association. He emphasised the fact that it was a mutual office, and that farmers should give them warm support. He stated that the directors and management were not hide-bound with red tape, and he quoti'd several instances of substantial ex gratia payments which had been made during the year because the directors took a wider view of their obligations to the farmer than the purely legal view, lie also referred to some of the risks being run by the averago farmer. Reocntly a Judge had ruled that a farmer was liable if one of his men, whilst in the ordinary course of bis duties, ran into a live electric wire and ,vns electrocuted. He quoted another case where a lorry containing relief workers bad over-turned and the fanner found that be was liable for comuensation (o anjured workers. It was therefore a necessity

for farmers to carry adequate cover Mr Leary also gave particulars of a farm accounting scheme which the directors had decided to launch. Mr C. R, Slieat, Provincial President of the N Z Farmers’ Union congratulated the directors on the way they had conducted the affairs of 1 lie Association and expressed gratitude for the help the Association had given to the Farmers’ Union in Otago. : \Vc realise.” said Mr Slieat, “that as far as the Farmers’ Union is concerned, we are getting a far greater service from Mr A. C. Cameron and his staff than wc arc Mile to pay for, and I take this opportunity of c.\iircssing our appreciation.” Mr J D. Hall (Canterbury Director) expressed the opinion that, as regards its economic plight, the Dominion had reached the bottom, or bedrock, and that the present stale of affairs was a process ot “bumping along the rocky bottom” not that of sinking still lower. He l referred to the very sound position of the Association’s affairs and said that lie was particularly pleased to see the steady increase in the Canterbury and Nelson Provinces.

M r Hall stated that the farm accounting scheme would be of immense benefit to the farmer." The report and balance-sheet were adopted 'Plie following directors were re elected unooposed : —Messrs J. D. Hall (Cantoriuii'v), Peter Arnott (Southland) and J. Christie (Otago). In returning thanks for his re-election, Mr Peter Arnott referred to the sound position of the Association’s business in Southland and paid a tribute lo the work of Mr D. M. Malloeh, the Invercargill manager. He was proud to be associated with such a sound and progressive farmers’ organisation^ Messrs Christie and Hall also returned thanks. Mr J. A. Robinson was re-elected auditor.

The remuneration of the directors was fixed at £2OO tho same as previously. Mr Wm. Lee moved a hearty vote l of thanks to the directors and staff ancl ventured the opinion that it would be very hard to get together a.better team .han the staff of tho Dunedin office. Mr Malloeh was the only member of tile staff of the branches known to him. and all lie could say was that if that was the calibre of man who was being selected then the Association’s future was assured

Mr J. D Re vie seconded the motion, which was carried unanimously. Mr John Clarke responded on behalf of the directors, and Mr A. C. Cameron on behalf of the staff.