THE New Zealand Herald. AND DAILY SOUTHERN CROSS. SATURDAY, JULY 5, 1890.

New Zealand Herald, Volume XXVII, Issue 8300, 5 July 1890, Page 4

THE New Zealand Herald. AND DAILY SOUTHERN CROSS. SATURDAY, JULY 5, 1890.

A measure is now before the V ictorian Assembly, entitled "A Bill to Amend the Law delating to Friendly Societies," which perhaps it would be well for the New Zealand Government to look at, and to consider -whether a, similar Bill ought not to be introduced here. It will be remembered that the .Registrar of Friendly Societies in New Zealand has in his annual report several times , called attention to the fact, that the rates of contribution to some of these Societies are not adequate to the bene fits promised, and has predicted that there is a risk of many of them collap- ■ sing. In the first place, he asserted i that the Rechabites and the Sons and Daughters of Temperance were wrong in supposing that in respect of health they possessed an advantage over the members of societies whose rules do not forbid a temperate use of alcoholic drinks. Besides this, the Valuers' reports cited by the Registrar showed ' that in many societies of different orders there was a serious deficiency. The Registrar himself stated " On those > societies whose financial position has „ been declared unyiund, and especially on those which for the second time have been weighed in the actuary , balance and been found wanting, the Registrar urges immediate reform both y on the ground of self-interest and also I on that of honesty. Worse than the 13 folly of a blind disregard of earnest ' warning is the action of those who admit a new member into their society which lias been shown to be actuarily 15 insolvent without informing him that, II if he shall live to be old, there is no 3 reasonable probability that ho will rei ceive the benefits which he is being led ,1 to expect." In the membership of these societies are included the very pick of the working classes, and upon them in many cases rests the entire burden of the provision which is made for the ' future of themselves and families. lie failure of two or three societies would cause wide-spread misery, and a i.tr.;e '■ number besides those immediately in- * teres ted would be brought inU> the

circle of suffering. We have not heard 1 i that any (Society lias token steps' to | ] rectify its scale of contributions, so i that actuarial requirements may bo i complied with. ] Apparently in Victoria the same difficulty has been found as here. One j illegal practice which has prevailed there lias been the application of ' moneys from the sick and funeral funds 1 to incidental purposes. In the case of ; one society, the report showed that the sick and funeral fund had been encroached upon to the extent of £516. Mr. Ilayter reports as follows :— Societies are expressly forbidden, under penalty by the Friendly Societies Act, to use any portion of their sick and funeral funds for any purposes except those which the medical and management or incidental funds were especially formed to meet. The sum by which the total amount expended on account of the incidental funds exceeded the receipts obtained, there is jjood ground for believing, by misappropriation from the sick _ and funeral funds, was .OX in 1887, .£'2070 in LSSS, an increase of nearly £71. The most conspicuous offenders in this respect, taking as a criterion the magnitude of misappropriation during INSS, were the Ballarat District, A.0.K., A.N.A., I'.A.F.S. ; Bendigo District, A.O.F. and M.U.1.0.0.1'. The Bill now before the Victorian Legislature goes somewhat in the same line as the Directors Liability Bill which has just passed the House of Commons. Any officers or members of a Friendly Society encroaching 011 the sick or funeral fund for purposes of management are rendered liable to a penalty. In regard to financial unsoundness, Mr. Gregory, the Kegistrar, last year reported that the Melbourne United District of the Ancient Order of Foresters, having at the end of 1886,,9000 members, showed by the last valuation a deficiency of 5s 7d in the pound ; while the Hibernian - Australasian Catholic Benefit Society, having at the same time 3497 members, showed by then]' last valuation a deficiency of (is 5d in the pound. But, taken as a whole, and judging from the reports of the Registrars, the Victorian societies are for the most part in a better position than those of New Zealand. However, in Victoria they are about to remedy the evil, although the means to be adopted are somewhat curious. The Government Statist will have to notify every society which by his calculations is not in a sound position, and on being so notified, it shall be the duty of the society or branch to make such changesin its contributions as may be necessary to put it in a position to disciiarge all its liabilities. If it fails, t. ien it shall bo the duty of the Government Statist to publish so many times, and in such manner as he may think fit, the name of such society or branch, and the nature and extent of this deficiency, with any comments he may think desirable. This is an attempt to cure the evil by publicity rather than by direct punishment. It is a kind of revival of the old penalty of placing in the stocks. A society which depends for its continuance in life on regular accessions of new members can hardly venture to go on in defiance of a notice in the official Gazette and in the newspapers, under the hand of the Government Statist, that they are financing on a vicious system. - -1 , ; "