AUSTRALIAN MUTUAL PROVIDENT SOCIETY.

New Zealand Herald, Volume XXIV, Issue 7885, 2 March 1887, Page 6

AUSTRALIAN MUTUAL PROVIDENT SOCIETY.

A SPECIAL meeting of the members of the Australian Mutual Provident Sooiety, convened by a requisition signed by 38 was held last Thursday aftornoon, in the Protestant Hall, Sydney, for the purpose of considering the pension proposed to be granted to the late secretary, Mr. Alex. J. Ralston, and the subject of pensions and gratuities to retiring officers generally. The chair was occupied by Mr. J. H. Goodlet, chairman of the board of directors, and there were also on the platform a number of the directors and the actuary and secretary of the society. The body of the hall was well filled, and the proceedings, especially towards the end of the meeting, were somewhat noisy. Mr. Charles G. Heydonspoke at great length, going into the question very fully, and proposing a resolution to the effect that the granting of pensions and gratuities to retiring officers was inconsistent with the principles and objects of the sooiety, and should in no case be allowed without the consent of a special meeting. The resolution was seconded by Mr. John Arthur, and was carried almost unanimously, only two or three hands being held up in dissent. The meeting terminated somewhat abruptly, an endeavour being made, as the audience was leaving the hall, to pass a motion calling on the directors to resign. We make the following extracts from the report of the proceedings which appears in the Sydney Morning Herald : —Mr. C. G. Heydon said : The proposed pension to Mr. Ralston was £1200, and that gentleman was in a far better position than the great majority of the shareholders themselves to make provision for his family. (Loud applause.) This officer took up his position 21 years ago at a salary of £500, which had been rapidly increased to £2000 a year, and—although the directors had not told them about it—during that time it appeared that Mr. Ralston had received bonuses to the amount of £1250, besides his handsome salary, out of which ho might have made provision for the future if he had chosen. This pension to Mr. Ralston, beginning at the age of 57, represented, aooorciing to the society's tables, a sum of £13,600 cash. That was what any of them would have to pay down to obtain an annuity under the same conditions; and at 05 years, when the secretary would have had to retire, unless the direotors allowed him to remain on his pension, would represent a cash payment of £10,500. That amount of money would be taken from the funds intended to be devoted to their wives and children ; and not only this, but to provide for an improvident man; at least, judging by the action of the directors, it was to be presumed that the late secretary was in an impecunious position. (A member: "I am told that he is very well off.") Then so much less the necessity for this pension. Still less were the members to be taxed the sum of £13,600 to provide for a man who had not provided for himself. This was the kind of thing the directors proposed to do, and it was an illustration of what their position would be if they sanctioned these pensions to retiring officers. Mr. McElhone then referred to certain questions he had sent in to the directors, and asked the chairman whether he would answer them.

Tho Chairman intimated that he was prepared to answer all Mr. MoElhone's questions. Mr. McElhone : What amount of money has been paid to Mr. Ralston as bonuses or gratuities during the time ho was secretary of the Australian Mutual Provident Sooiety, and the number and value of each bonus paid to him ? The Chairman : In Deoember, 1874, £250; October, 1879, £500; September, 1884, £500; total, £1250. Mr. McElhone : The same as to Mr. Black, aotaary to the society ? The Chairman : In December, 1871, £250 ; December, 1874, £500 ; Ootober, 1879, £1000 —(ob, oh) —September, 1884, £1000—(oh, oh) —total, £2750. These amounts were all reported to the annual meetings. They were given at the end of quinquennial periods, in consideration of extra work— ob," and hisses)—and approved of at annual meetings. (Hisses.) Mr. McElhone: The same as to Mr. Teece.

The Chairman : In Deoember, 1874, £175; Ootober, 1879, £200; September, 1884, £500: total, £875.

Mr. McElhone : What amount of money has been paid to all the other officers of the sooiety as bonuses or gratuities, and the total value of such bonuses or gratuities so paid each year ? The Chairman : In December, 1874, £650; October. 1879, £2476 12« ; September, 1884, £4232 2s: total, £7358 lis. ("Shame, shame," and hisses.)

Mr. McElhone : In what year did Mr. Ralston become an officer of the society, and is it a fact that the directors have agreed to pay him a yearly pension of £1200 or any other amount; if so, what amount ?

The Chairman : Mr. Ralston joined the society in May, 1865. The Board has agreed to allow him a pension of £1200 per annum.

Mr. MoElhone : Is it also the intention to pay Mr. Black a pension; if so, when, and what amount, and what salary is he paid ?

The Chairman : The Board has not had occasion to consider the question of granting a pension to Mr. Black. His salary is £2000 per annum. Mr. McElhone: The same as to Mr. Teeoe ? The same as to all the other officers ?

The Chairman : The reply to these questions will be found in the explanatiou of the scheme adopted by the Board, copies of whioh have been printed for the information of members. (Oisseß.) Mr. MoElhone : What will bo the yearly cost to the society if all tho officers are paid pensions as proposed by tho directors ? The Chairman: We cannot tell that. Oh, oh ! ") Mr. M'Elhone continuing, said that they would remember that he was the first to call attention to the wrong about to be dono, and the present meeting had been called to discuss the matter. He considered this meeting would be a more humiliating defeat for the direotors—(applause)—than they had over the branch office in London. If they had a spark of manly feeling in them when thiß JtSSSSS ffiif WlßMr^gTr M irlESy were men they would resign after hearing him on the question, because a special general meeting called by those gentlemen called upon them to resign. (Applause.) No body of men in the British Dominions occupying a position of trust and trusted by the widows aud orphans and poor men, who denied themselves to procure the money neoessary to pay the premium, had a right to give pensions out of the sooiety's funds. Mr. Black had talked about the Government pensions, but he had not told them that the Government took 4 per cent, off the salaries, and the same with the banks. Although Mr. Ralston had not paid in anything to a superannuation fund, he would be entitled to £1200 per year. In making these statements and preferring these charges against the directors, he only wished to refer to those gentlemen who had been the tools of Mr. Black. (Ap» plause.) He would let the matter go to the vote, and if the directors could not see what arrant fools they had been in trying to force this thing on, against the unanimous wish of the shareholders of the sooiety, they ought to see it. (Applause). The present was the time when they wanted capital to conduct the operations of the sooiety, and if they persisted in this foolish policy, it might end in the overthrow of the society altogether. The Hon. S. A. Joseph said it was unfortunate for the society, for Mr. Ralston, and for them all, that the matter had been dealt with without first obtaining advice from members of the society. (Applause.) The directors were responsible for their actions, and should be allowed .to explain matters. (Cries of "Vote, vote," and "Time." - The scheme proposed by the directors was similar to that which had been carried by the whole of the assurance companies of the United Kingdom. ("No, no," and interruption,) At any rate, it had been carried by the Scotoh mutual offices. (Interruption, and cries of Time.") He wished to have two questions answered by the ohairman : — Ist, How far had the arrangement with Mr. Ralston progressed, and whether an actual agreement had been entered into between the sooiety and Mr. Ralston ? 2nd. What was the present position of the officers of the sooiety ? He wanted to know, as a matter of fact, whether the sooiety's officers at the present moment were under any absolute and definite agreement by whioh they came under the regulations of that soheme or not. In other words, oould they undo what had been done —(ories of No, no " and " Yes ") —without performing any injustice or illegality '! The Chairman replied that Mr. Ralston lad retired under an agreement that ho was

to receive a pension of £1200 a year ; so that that was a thing settled. (''Oh, oh," and disapproval.) As to the other question, the clerks at present in the employ of the society were engaged under the provisions of the scheme. It was reported to the annual meeting, and explained by him, and approved of by that mooting. ("No, no.') The board had not done anything underhand ; on the contrary, it was amongst the members that any such action had taken plaoe. •