(PER UNITED PRESS ASSCCIATION.)

Otago Daily Times, Issue 7263, 28 May 1885, Page 2

(PER UNITED PRESS ASSCCIATION.)

Wellington, May 27. The first annual meeting of the Government Insurance Association Board was held in the Drillshed this evening. Sir Julius Vogel was in the chair, and the other members of tbe Board on the platform were Messrs J. C. Gavin (Treasury), R. C. Hamerton (public trustee)/N. Reid, J. H. Bethune, G. V. Shannon (Government nominees), and H. D. Bell, George Fisher, G. S. Graham (elected members). About 200 policyholders were present.

Hir Julius Vogel proposed tbe adoption of the report, and after explaining the establishment of tbe Board he dwelt at length with the figures in the report. After traversing the business for the year, he referred to the properties purchased by the Board, and thought no bet er in vestments could be made, as theße investments would yield 6 per cent, on the capital, while they would have office room free. Then, also, the capital value of the properties would.increase from year to year. He denied that purchases would reduce the amounts to be distributed as bonuses at the quinquennium, aB such distributions were made on the value of the: liabilities and assets. Referring to the staff, he said there was uo intention to place an officer over the head of Mr Luckie, but the Board did not feel justified^in entering into an agroement witb that gentleman, as they were, of opinion that at soma future time it might be found expedient to obtain the services of a gentleman who had long experience in an institution of this kind. One step the Board: intended to take was that of endeavouring to enlist the assistance of policy-holders in obtaining new business, and it was proposed to offer a small commission to thoso policy-holders who had placed business in the hands of agents. The Board had come to the conclusion to invest the fund in mortgages of real property, and great caution would be exercised in such cases. At present the Board was limited to 50 per cent, of the value of tbe property, but they intended to ask Parliament to extend the limit to twothirds. They bad four classes of securities:, Ist, loans on policies; 2nd, Government securities; 3rd, loans to local boards on Parliamentary securities; 4th, loans on freehold properties. The Board also intended to ask Parliament to allow them to sell annuities out of tbe Colony. One of tbo membera of the Board was going on a visit to England ' shortly, and he was empowered to select one or two young men who might be willing to join the institution at a moderate salary. He next referred to tbe question of local boards, and said he was anxious to havo tbe matter fully ventilated. _ He explained' at length; tbe benefit to be derived from having in each large centre a board composed of gentlemen, who would take an interest in the affairs of the Association. It had been decided by the Board that any motion re the appointment of local boards or otherwise would ba received to-night without the usual notice baing given, and tbe feeling of the meeting would be tested, and then it was open to any two policy holders to call for a poll on tbe question, whioh would be taken on a future day, when holders could exercise the right of vote by proxy. Mr H. D. Bell seconded the adoption of the report, Mr G. Fisher denied that the properties, at all events the Dunedin ono, were yielding 6 per cent. He also said that the Auckland property was unfit for insurance business, and a largo amount would have to be expended on it, He had suggested a delay in the purchase of thia property until after the annual meeting of the Association, but by the casting vote of tbe then chairman (Mr Tole) tbe suggestion was not adopted, He read a statement of figures showing that the Association by invest- , ing its money in Government debentures iußtead of going outside would in five yeara lose upwards of £50,000 in interest. He considered tho Colonial Treaauser ahould not occupy tbo chairmanship of tbe Board, and when the amendment bill waa before Parliament he hoped a change would be made in this ' direction. He objected altogether to local boards.

Mr H. D. Bell askod polioy-holders not to believe that tbe Board was squandering tbeir money. There was no doubt largo sums invested in Government securities, but it was gradually being withdrawn and invested in other ways. Mr G. S. Graham thought at present local boards were not required. After two or three policy-holders had addressed the mcc ing, and Sir Julius had replied, tbe report and balance sheet were adopted. Mr George Beetham, M.H.R. for Wairarapa North, moved » resolution to the •Scot tut lowlbodieMbQoJ4.notl*»pp9toi«ti.

A show of Banda being taken, the chairman announced that those in favour of tbe motion carried It.

Sir. Julius Vogel aßked if any policy-holders demanded a poll, _ Mr Beetham said he did not wish the present meeting to decide tho question, and with a view of allowing policy-holders in distant parts to express thoir opinions, he demanded that a poll should bo taken. It was decided that a poll should be taken at an adjourned meeting, to be held this day month. The elected members of the Board voted in favour of the motion.

The meeting ended at 11 p.m,