COMMERCIAL.

New Zealand Times, Volume XXXVII, Issue 6440, 3 December 1881, Page 2

COMMERCIAL.

New Zealand Timbs Office, Saturday, 3rd December, ISBI- - David T. Stuart, of the Wellington Sharebrokers’ Association, reports for week ; —Sales—Union Insurance, 255; NZ. Shipping, £5 18s ; Wellington Gas (Issue, £5 paidf, £6 10s ; Wellington Trust and Loan, £5 13s : Equitable Investment of N.Z. (Dunedin), £l4O paid, at £150: Koranui Coal Co., 5s 6d discount; N.Z. Accident (2s paid), 3s 6d. Seilers—Bank of N.Z., L 22 10s; National Insurance, 33«; N.Z., 82s 6d ; Standard, 16s 6d ; Loan and Mercantile, £0 6s : 'Wellington Gas (£6 Issue), £6 12s 6d ; (£lO Issue), £l3 ss. Buyers—Colonial Insurance, 13s 7d : National, 31s ; South British, 67s ; N.Z., 80s ; N.Z. Shipping, £5 17s 6d: Equitable ol Wellington, 10s premium. The week has been marked by some excitement in Terawbiti shares ; Albions having been sold up to 6s. THE NATION AT. MUTUAL LIFE ASSOCIATION. The twelfth annual general meeting of the policy-holders in the above Company was held at the Athenaeum Hall on Nov. 18. The Hon. E. Langton occupied the chair. The Chairman said that in the absence of the Chairman of Directors, who was enjoying a well-deserved holiday in England, but who they hoped to welcome back again in a few weeks, he (Mr Langton) had been requested by the Directors to take the chair on the present ocoaeion. The Secretary then read the Directors’ and Auditors’ reports ; and the balance-sheet, as published in “The Argue” of Nov. 17, was taken as read. The Chairman said it now became his duty to move the adoption of the report, and it was perhaps due to the members that he should refer to some of the topics mentioned in it. At the outset he could not refrain from congratulating the members on the progress that had been made. When he joined the Association eight years ago, the whole busineas was not so large as was now being transacted in one of the branches. If they would look at the figures they would get some idea of the extent of the business of last year. To put them clearly and to compare them with the figures of other offices, he thought he ought to select an office that had been about the same period in existence. There was one association s these colonies that had achieved a position second to none in the world. He could say that, because those connected with the National Association were not jealous of the wonderful success of the Australian Mutual Provident Society. In the 12th year of its existence it whilst in the 12th year of the National Association 3688 policies were issued, making the total amount now insured in their office, L 892,774. That amount and the general business of the Association, he thought, would compare favorably with the Australian Mutual Provident Society, as it was not until the 26th year of its existence that 3691 policies were issued by that Society, being three more in its 26th year than the National Society issued in its 12th year. (Applause). That slight comparison would enable them to see that the National Society had achieved a success far more complete and satisfactory than any one of them ever imagined. The success of the Society, it was only due to the members of the Society to say, had been observed in_ different parts of Great Britain and The “Post Magazine and Insurance Monitor,” published in London on September 3,1881, in an aricle devoted to the Society, says : “The Accumulated Fund, on September 30, stood at £129,698, and was equal to 70 per cent, of all the premiums received on existing contracts, which gives the Society the full sanction of the ‘ simple test ’ which we have at various times alluded to, e.g., in our notices of the National Life and the British Equitable. The figures above given show very remarkable and satisfactory results, and reflect the admitted energy and ability of the management.” That, he thought, was highly complimentary, coming, as it did, from an entirely disinterested source. Then, again, another London journal, the “ Commercial World,” after setting out the substance of the investigation, says : “These figures indicate what may be styled an Australian rate of progress.” He did not quite know what “ an Australian rate of progress ” was, but the remark was doubtless intended to convey a greater rata of progress than was ever made in the United Kingdom or America. (Applause.) By taking the figures of such offices as the Scottish Widows’ Fund, the Standard, the Scottish Provident, and others, he found that only one office had issued more policies than they did last year. (Applause.) There was another matter in the report he wished to refer to. Some unpleasantness had occurred in another colony, and actions had to be brought against canvassers of the Australian Mutual Provident Sooiity, and the Directors desired to express their regret that the Directors of that Society had expressed no disapproval of the conduct of their agents. He was quite at a loss to imagine what the National Mutual Society, through its representatives, could have done to provoke such statements, and he was at a loss to understand what had led to such tactics being resorted to as bad been the case. He looked upon the matter of life associations that they ehould work together, as it was quite impossible for any one Society to do all the business of these colonies. It had been reckoned up and found that only from 12 to 20 per cent, of the insurable lives in the colonies were insured at the present moment. Surely there was no necessity for jealousy to be displayed, as there was a large field for all to work in for the good of their Societies and the common good of the community. At the annual meeting of their Society last year the Chairman referred to the practice they adopted with regard to the surrender value of policies. So long as a policy had a surrender value it could not lapse. Who was the originator of this ? Their Actuary first brought it into notice in the Australian Colonies, although an attempt was being made to deprive him of the credit of it by a long advertisement in “ The Australasian Insurance and Banking Record,” which set forth that, as far back as 1861, Mr Black, who was then connected with the London and Yorkshire office, originated the idea. • He (the Chairman) contended that their actuary was entitled to the credit, and pointed but that the idea now carried out by Mr Black was that the policy would be kept alive so long as it had a cash or surrender value after it had been endorsed. Their Society had a case not long ago whereby a man’s policy was kept alive by the surrender value; the man died, and the widow was paid the money. The principle introduced by their Actuary and Secretary required no official,security. So long as the policy had any value at all, it was kept alive without the policy-holder having any necessity to endorse it, or refer to the office at all. (Applause.) They could see at once the difference between the two offices, and that, if a policy-holder had to go to the office to endorse the policy, the principle of surrender value was defeated. Whether or not this idea was first introduced by Mr Black at Home or not, one thing was certain, it had not been established in the Home Company, as the advertisement he had referred to concluded thus

“ We have, however, to admit that, popular as the principle is in the Australian colonies, it has as yet, so far as we are aware, no place in the prospectuses or deeds of our Home companies, which, we cannot help thinking, is much to be regretted.” He thought they could afford to be content with the principle they had introduced, and could give credit to their Actuary for having devised and carried it out, (Cheers.) He had mentioned before that, in order to understand the business being done by different societies, it was necessary to compare like with like. He was not alone tn that way of thinking, as Mr Black, in his work on “ The Progressive Policy of the Australian Mutual Provident Society, says:— “To genera’iso on the subject of expenses from the case of a particular office without taking into account special circumstances affecting the ratio ot expenditure is misleading. This has not been sufficiently noted by some who have recently written on the subject, and it is seldom or never borne in mind when the question is discussed in its bearing on the affairs of a particular society. Before instituting a comparison between two life assurance companies, with a view to determine which is the more economically conducted, it would be necessary for the offices to be of the same age—at least, until an amount of business had been secured by both sufficient to form an average—and that they should have continuously transacted the same amount and class of business for the comparison to be strictly correct. But no two companies are ever so similarly circumstanced, and therefore within certain limits comparative tests of economy are only approximately true. Life assurance business is now conducted on much more liberal terms towards the assured than formerly, but the cost of f I,• ■ boat, fnpramia/1 Jti coma-

Thus it would be seen that to compare a Society twelve years old with a Society forty years old would be fallacious and misleading. But only lately there had been distributed m Melbourne by the writer of the article he had just quoted from tbe figures of his (Mr Black s) Society, which were takenat the 30th year, and those of the National at the 10th year. That was one of the devices now resorted to for life insurance business in this city. He looked upon life insurance as above a matter of mere money-making business, and considered that gentlemen elected as Directors of such an association as the National Mutual were raised to a high and honorable position. In conclusion, he desired merely to mention that, owing to the increase of business, and the fact that the lease of the premises they now occupied would expire in a few years, the Directors had purchased a valuable site at the corner of Uoilina and Quem-streets, where they intended erecting suitable premises. This would to keep them before the world of Victoria, as no one would be able to come into Melbourne without being aware of tbe existence of the National Mutual Life Association. He begged to move that the report and balance-sheet be ad ßlr S. - D. Glyde, one of the Directors for South Australia, said it afforded him great pleasure to be present and second tbe motion. He referred to the business being done in Adelaide, and that three years ago the Company was only known in Mount Gambler, and, outside that, had only thirty policies in South Australia. Business had greatly increased, and for the year ending September, 1880, they had 960 policies in existence, with an income of L 6457, whilst in Sep ember, 1881, they had 1,030 policies, and an annual income of L 7269. He briefly referred to the recent law proceedings, and stated that it was necessary to take action, because it was reported that the Society was insolvent and the Secretaiy “ the two ends of a rogue.” He expressed his surprise at the Adelaide Directors of the Mutual Provident Society not taking notice of the conduct of their agents, as they (the Directors) were known to him as honorable men. The Secretary in Adelaide had had a very hard time of it during the last eight months, and he (Mr Glyde) had been directed to ask from the Melbourne Board for some recognition of the Secretary’s services. .... Mr Hebbard said before the motion was put he desired to know how it was that the amount added to his policy at the last investigation was not equal to what he received at the previous investigation. The Secretary explained that at the investigation three years ago there was a sum of L3OOO, carried forward from the previous investigation, which was divided amongst the policy-holders. Mr Hebbard asked how it was Mr Lang was a candidate for re-election as a Director, when he was away from the colony. The Chairman said Mr Lang was away, and enjoying a well-deserved holiday; but they hoped to welcome him back again in a very few weeks. Mr J, Chapman was very glad reference had been made to the conduct of the agents of the Mutual Provident Society, as he had come into collision with them. He was glad to find their Society was prospering, and ho hoped they would be more prosperous in the future than they had been in the past. The report and balance-sheet were then adopted unanimously. Mr McClure said he rose with a great deal of pleasure to make a proposal with regard to the Directors’ fees. They had seven Directors, who for years had received L7OO a-year between them. He thought that sum inadequate for the services rendered, and he would move that the amount should be increased to LIOSO per annum. On looking at the figures on the back of the report, and the position of the Society, he thought they had good reason to congratulate themselves on the success of the Society. Mr Inglis, in seconding the motion, referred to the fact that the Directors had to give three valuable hours to business men, namely, from 11 until 2, on two days of the week, and therefore the remuneration at Ll5O a-year was little enough. Mr Hebbard desired to have the record of the attendance of every Director read. The Chairman said such a return was not prepared, but from his ewn personal knowledge he could say the Directors were very regular in their attendance.

Mr Brunton said ha was very sorry to have to submit an amendment. The business of the Society had gone on very satisfactorily, and the work of the Directors was now reduced to a mere nothing. He thought it would be as well to leave the question of the increase of fees over until after the next investigation, and he moved, “That the matter be allowed to stand over for two years.” A policy-holder seconded the amendment. Mr McClure regretted Mr Brunton had not a better knowledge of the work to be done by the Directors. He (Mr MClure) had had a seat on the Board for nine years, and knew what it was. The consideration of the new proposals alone entailed an enormous amount of work, besides which each Director did a lot of work outside, which could only be given effect to at the Board meetings. Mr Diokins supported the motion, which, after a few further remarks, was carried with only two dissentients. The retiring Directors, Messrs Lang, Langton, Moubray, and Fergusson, were unanimously re-elected. Messrs Dickina and Thompson were also unanimously re-elected as Auditors. At the request of one of the policy-holders, Mr Templeton, the Actuary and Secretary, gave a biief resume of the work done by him on his recent visit to Queensland and Tasmania, The meeting then terminated. 8007