Friendly Societies.

Oamaru Mail, Volume XXXIV, Issue 9590, 24 July 1907, Page 1

Friendly Societies.

Ej j By Telegraph. |j (From Our Own Correspondent.) I j ■ _ ■ ■ Wellington; July 23. |' Interesting information" with regard to | the Friendly Societies of the colony iscortI tained in the annual report of the Regis- | tear presented to Parliament yesterday. £ The total number of registrations during k the y-a,r was 36—M.U.1.0.0.F.", 7; B 1.0.0. F., 2; A.0.F., 3; U.A.0.D., 14; Hl-0.R., 2; H.A.C.E.S., 4; P.A.F.S.A., 2; svl-F.S., 2. The 500 lodges which furnished :| returns' for 19&> are shown to have a » membership of 53,759, and the total funds || amounted to £1,057,281, or an average a. capital per member of £l9 13e 6d. "Tables | a.re alio given showing thai friendly socie- }? ties' membership has, during the last 20 a years, increased at a considerably greater 1 ratio than the population, and' it is in- | teres* rag to note that the amount insured y in life companies, the friendly societies " £i membership, an:l the friendly societies' have all increased' at almost

exactly the same ratio, 'the report adds that the greater rate of increase in life iiE'iiran-ce premiums, as compared with friendly societies' contribution!*, is proS bably due to the employment of paid can- -* vasseTs. The tables further show'that, aly though there is now'a much larceT popu- ( lation than in 15.97. each member .of the population now carries (1) a greater insurance ; (2) pays more in premium©; (3) more in friendly societies' contiibutions; _ and (4)_ every 100 of the present larger papulation contributes more friendly societies' members than was the case in 1887. The results, as; a whole, says uie report, disclose a remarkable mcre'-ise in thrift durin.3 the period: under review, of which, friendly societies' business has had its due share". The amount of sickness benefit paid was £52.903 in 1906, equal to £5 14s 4d per member sick, or 14s 2d per week. The funeral benefit paid ;- amounted to £3496, or 3s Sd per member. "The practice of "borrowing benefit fundis for management expenses," "says the report, "shows a tendency to increase, arid muct be checlced, as ■Uie use of fuaid6 for the miii-pose is'depriving the benefit fund? . of the earning power necessary to mainr tain the profit rate which wilfcnsuTo the solvency of the societies' finances as based en contributions. 'Die funds of societies can only be invested in these forms of nece.riticci specified by the Act, and the. actuaries, and it is the duty of the Registrar to closely scrutinise any investment outside there forms. The borrowing of funds by trustees, no matteT or on wb.it security, cannot be too strongly condemned, and societies should in every way d'iscour- ,. age the practice." An examination: made e by the actuary shows .that the mortality of New Zealand friendly societies' members is somewhat lower than that of the senera! population', a result that might have been expected, feeing that, to mention: only one reason, friendly society mem- ■ bens are in a sense selected lives who " have to pass a«medical test befr.re admittance; further, friendly society lives show a lower rate of mortality than the population of New Zealand, but a higher Tate than that of New Zealand rssiired: lives. Referring to cases of embezzlement of societies' fundls recently before the Courts," the report says : "It is to be hoped that these cases wi'l have the effect of bringing home to those responsible for the wifecruarding of benefit fundls the desirability of providing foT a thorou-rhly efheient .Yivdit." Regarding unclassified societies, the number i' . eiveu as 404—sports; 176 ; musical, -71; social, £8: various. 89. "There i« every indication," fays the report, "that the number of unclassified societies will further increase, and as some of there organisations have considerable funds and property, the question of impos in—, in the intercut of the public, some stricter supervision over their business will very shortly require consideration." Section 16 of the Act of 1895 authorises the 1 cancellation, of the certificate of incorpira- ' tion sbowld it be found' tltat the -society is other than an unclassified society, bsrt the Act provides no means of ascertaining whether or not a society is conducting' its operations- in conformity with its registered objects. . .