A GREAT ACTUARY ON A GREAT INDUSTRIAL OFFICE.

New Zealand Herald, Volume XXXIX, Issue 11986, 7 June 1902, Page 3

A GREAT ACTUARY ON A GREAT INDUSTRIAL OFFICE.

__—. '] ] FINANCIALLY SOUND AND ENTITLED , TO THE FULLEST PUBLIC v £ CONFIDENCE. f i "A TIRADE OF MALEVOLENT [ S NONSENSE." i f i A LARGE SURPLUS ! i . 1 .'-.-. | i (Extract from Australian Financial Gazette , and Insurance Chronicle. April 17. 1902.) Ik consideration of the high eminence oecu- j , pied in the actuarial world by Mr. Ralph ; Hardy, we give below some, extracts from ! I his speech at the 15th annual general meet- j ' ing of the Citizens' Life Assurance Company. j Mr. Hardy, in the course of his speech, J i said: I have to assure all present that cer- ! tain sinister influences set afloat in England and just rewhispered here, deliberately framed either to prejudice or deter me in carrying out my duty, have -not had the slightest effect upon my mind. (Hear, hear.) It was not because I did not listen to them — that I was compelled to dobut for the- far better reason that when I arrived here and inquired into everything I found that those allegations were .not only untrue in fact, j but without the shadow of foundation. I will briefly allude only to one as a sample of the rest. Now, I ask you, do you think it possible that two Ministers of the Crown, sitting in this very room, could have entered into a' conspiracy with a perfect stranger in London to purchase a favourable report on the business of this company? Even had there been a possibility of that, do you think that that London stranger would have dared to stand before yon to-day and challenge your criticism? All that tirade of malevolent nonsense levelled against this company and its management is of a like foolish character, and is unworthy of further consideration. (Hear, hear.) Mr. See: You might say whether you were ever approached by anybody in. connection with this company, cither directly or indirectly, except to obtain your valuable services in giving a report. Mr. Hardy: In no way whatever. I think, gentlemen, you would hardly expect of me to give a formal denial to anything like this. (Hear, hear.) I would like to get the name of the man who dared to make such a charge against me. Now, lam going to say, with every sense of responsibility, that in consequence of an actual and diligent personal inquiry into the affairs of this company, both 'on the spot and outside, and after having had before me all the books and accounts which I could possibly desire, I formally state, and will repeat it on* any platform in Australia, that THLS COMPANY IS FINANCIALLY SOUND AND ENTITLED TO THE FULLEST PUBLIC CONFIDENCE. (Applause.) I will not waste any further timo in reply to charges of such spite and folly. Now, from a study of these papers, it recalls to one's mind that not long ago this was a very small company indeed. You may, indeed, congratulate yourselves upon the results you have obtained by means of this very active machinery of yours, all bearing the distinct colonial impress, by means of which you have brought within the protection of your several schemes of insurance 224-,000 persons now on the books. (Hear, hear.) Let it not be forgotten that there are-many others whose claiui3 you have paid, and who have reaped the advantage of insuring with this company. Those 224,000 persons stand, insured to-day for an aggregate amount of eight millions of money. That £8,000,000 will go for the benefit of, and alleviation of, then families. They are actually paying, and it is mostly out of hardly earned and with difficulty put by savings, £330,000 a year. (Hear, hear.) That is one of the results, of the vast abstinence on the part of these people who are insured, and thero is, further, about £800,000 accumulated as a great provident fund for their future. Yon must bear in mind that all this business conies from persons of distinctly moderate means, not from those who are commonly /called "the rich." Pause for one moment and consider what an immense amount of work this has involved, what a fund of tact, patience, and skill was necessary to be exercised upon too often very unwilling hearers, and HOW GREAT AND HOW LASTING ARE THE BENEFITS, both to the parties themselves and to society generally, which have been brought about by these efforts of yours. As regards the financial position, it is set forth at some length in my report. You know that whatever surplus there is on the industrial account, in pursuance of the settled policy of the company, it is to be devoted towards strengthening the general reserve. But in the ordinary branch 1 find that, after a strict valuation, there is a surplus of £28,000. In my belief and judgment that surplus is as real as anything can be. It is not so much as on the last occasion, but still it is a very satisfactory result for the year's working. The diminution is chiefly due to the somewhat strict measurement which I have thought it desirable to employ. How to dispose of the surplus has very much exercised me. 1 cannot tell you how prolonged and how full consideration I have given to the subject. I have felt it incumbent upon myself to regard myself as the trustee for the whole of the policy-holders. (Hear, hear.) Well, I took that duty upon myself. Some of you are competent to judge of the difficulty of this matter, and I can assure you that I felt the position very keenly. But I have come to the conclusion set forth, and I feel that it will ultimately operate for the benefit of the company. _ ' Let me strongly impress you with the desirability of keeping a full margin upon the expected interest yield. This policy of reducing the interest expectation to a 3 per cent, basis is one so largely calculated in the interests of the policy-holder:: that I appeal to you all to support the policy of tho Board in this respect. You must not suppose that lam unconscious of the opportunity this may supply to some people to make misrepresentations. But, nevertheless, I -urge you to stand firm and to point out that this proposed measure is SOLELY IN THE INTERESTS OF THE POLICY-HOLDERS, and that they will ultimately enjoy the full benefit of this course. Most of the British offices are upon a 3 per cent, basis, and as there is now so little difference between the interest yielded upon select securities in the two countries it cannot be long before the great Australian offices will find it desirable to adopt the. lowest standard as the basis. Before I sit down let me again say that it is unnecessary to add anything further to assure you of the strength and.stability of the company. But on no grounds allow the slightest aspersion to be cast upon it. _ Support the management in their far-sighted and honourable policy of holding the interest of the assured as paramount. If you accept this proposal you will be the first throughout the Commonwealth of Australia to adopt this snlendid standard of valuation. (Hear, hear.) Be certain that as sure at the sun will rise to-morrow by so doing the BUSINESS DONE BY THE CITIZENS' LIFE COMPANY IN THE FUTURE WILL BE INFINITELY LARGER than in the past, and that great as have been the advantages conferred upon the citizens of the Commonwealth these will be largely increased in the future. (Applause.)