FRIENDLY SOCIETIES AND THEIR MANAGEMENT.

New Zealand Herald, Volume XXVII, Issue 8386, 14 October 1890, Page 5

FRIENDLY SOCIETIES AND THEIR MANAGEMENT.

Yesterday evening Mr. Edmund Mason, Registrar of Friendly Societies, addressed a meeting of members of those bodies at the Academy of Music, Lorne-street. There was a large attendance, including representatives of .all the Friendly Societies in Auckland. Mr. H. Uarratb, Provincial Secretary of the Order of Foresters, presided.

Mr. Mason, who was received with hearty applause, said he had delivered addresses to members c * Friendly Societies at various places in the colony, and some of the societies, he was glad to say, had accepted, at least in part, the suggestions he had offered for the improvement of their financial position; whilst on the other hand, many had not done so, and, so far as he knew, had not even consulted as to the necessity of the changes he had advocated. Lest, however, it should be thought that the need for reform was not urgent, he must repeat views to which he had already given expression. In his opinion, no better system could be devised for the protection of those whose thrift was necessarily restricted to small amounts, than that of the friendly societies, when organised thoroughly and upon a sound basis of finance. Although imperfections might bo charged against the system, and although instances of default and neglect might be cited against particular branches, the mutual and self-governed system had so manyadvantagesoverany other, that he wondered why men who had the choice should exeroise it otherwise than by selecting a well conducted friendly society as the depository of their limited savings. When the promoters of a sooiety, not being able to foresee what would be the effect of their financial system, adopted scales of contribution and benefit which had since been shown to be out of proper proportion, could they attach blame to those men ? Or, when a member joined a society, and subsequently learned that a mistake had been made, could they attach any blame to him ? Certainly not; but when the fact that a fundamental error was made had been discovered, if no action was then taken, all the members must be charged with neglect of their own interests. Mr. Mason referred his hearers to the official reports annually published by the Registrar, and those of the public valuers, to show the reasons for the adoption of a fixed rate of interest and the basis of the sickness and mortality tables on which the present values were calculated. If a society were established with an inadequate scale of contributions to the benefit fund—the payments being, say, 2s a month when 2s 3d was the sum required, and so on in like proportion— immediate effect, according to the usual scale of benefits in New Zealand, would bean actuarial deficiency of more than £3 per member. Such a society would have for many years an annual excess of receipts over expenditure ; and he supposed that this wouid be put forward by some as an unanswerable argument that the rates of contribution were adequate. If a periodical increase could bo rightly regarded as satisfactory evidence of an adequate scale of contribution, why should nob the practice founded on such an argument be carried still further, and the contribution lowered. Ono society in Queensland, whose members manifested a very strong faith in this theory, had a funeral fund with an estimated liability of £4784, the assets being valued at £1202. Mr. Mason condemned the uniform contribution rate system as unjust in its operation, and said that on that ground as well as on tho score of Impracticability it had been abandoned by all the orders in England, where, in the leading Friendly Societies, members had had to curtail their benefits, or increase their contributions, and even to apply for assistance from thegeneral fund of theorder. He suggested that the usefulness of friendly societies could be enhanced —first, by the cessation of contributions to the sick and funeral fund at a fixed age—6o, if possible ; and, secondly, by the establishment of a superannuation fund. The older members might nob be able to take full advantage of such provisions, bub their adoption by the younger members, and those who would enter in the future, would, doubtless, have | a marked effect upon the percentage of lapses. Even the older members might have the option of converting the life premium into a terminable one by means of a corresponding diminution of benefits. Mr. H. J. Syms, P.P.O.M. of the Fountain of Friendship Lodge, moved a rote of thanks to Mr. Mason for his address. He said the lodge, of which ha was a member —one of the oldest lodges in the colony— had had an experience which bore out what Mr. Mason had said. During the last quarter the amount of pay given for sickness had exceeded the income of that fund by about £80. _ < Mr. Pioott seconded the motion, which was heartily passed. Mr. Mason, in acknowledging the motion, said he had been told that a man who had been for a long time a member of a Friendly Society, and who was out of work, was kindly assisted by the other members, and he hoped that spirit would long continue. (Applause). A vote of thanks was passed to tho Fountain of Friendship Lodge for the use of the hall free. Another vote of thanks, given to the chairman, closed the meeting. Mr. Mason afterwards held a conference with the officers of the various societies. He leaves for New Plymouth this morning. __