FORESTERS.

Otago Daily Times, Issue 16348, 3 April 1915, Page 7

FORESTERS.

REPORT OF DISTRICT EXECUTIVE. The annual meeting of the United Otago District, A.0.F., will be held in Dunedm to-day. The annual report of the District Executive states that a, certificate of secession was issued to Court Enterprise on December 12. The question of the court's dispensation was submitted for the decision of the annual meeting. At the last district meeting a resolution was carried that Court Pride of Dunedin's dispensation be held over till the present meeting. The court had evidently written to the High Court on, rhe sul-ject, and the result was that the 'executive received a letter from the Y.-^ 1 " -i-crt-tary requesting it to return the dispensation to Court Pride of Dunedin or send it to the High Court. The executive recognised that the retention of the dispensation was likely to engender further illfeeling, and, after due consideration, resolved to hand it over to the court, at the same time making it clear this was an act of grace, and questioning the right of the High Court to demand the return of the dispensation. The executive trusted that its action would meet Tvith the approval of. the meeting.

The quinquennium valuation report for district and the various courts for the period ended December 31, 1912, was to hand. Th? remarks of the actuary showed the progress made by each court during t u o five years under review. It' was most gratifying to nota -'.at all the courts, with two exceptions had made substantial progress. As regards sickness, all tho male courts, with the exception of Court Star of the South, had less than was expected, and that court paid £82 more than was expectcd. All the female courts paid more than was expected, ui some cases to a very serious extent. In 20,092 weeks' sickness wa6 recorded, or weeks less than was expected. The cost was £13,020, or £1896 less than was ??i >cc \ mont.is it was 1476 weeks less than the expected, while in the second period it wa6 151 weeks more and after 12 months it was 1316 weeks less thaji the expected. In the female courts it was 1445 weeks, and £577 more than was expected by the tables. I) or the whok> district the interest earned by courts during the five years showed an average of 4.94 per cent. At the previous quinquennium it was 4.88 per cent. Ten courts showed surpluses, amounting to £4737, s^° deficiencies, amounting to

Turning to the district funeral fund, the actuary reported the very substantial surplus ot ±,4555—this was quite apart from the previous surplus of £3507. It must Hot be overlooked, however, that £1800 of this surplus was accounted for by the secession of Court Pride of Dunc-din. desirous to place before members the effect that consolidation would have on the whole district, the actuary was good e ?° l i g m,° a consolidated balance sheet. The effect was rather startling, and tuily bore out the contention that consolidation would be of immense benefit to the district as a whole. The fact was, had the district been working under consolidation durmg the quinquennium from 1807 to 1912 it would have wiped out all deficiencies shown in the courts, and left it the happy possessor of a clcar surplus of £5010. Of course, this would ab-orb the £3507 which was set aside tor deficiency courts, and also the surpluses earned by the individual courts during the hve years under review. With reference to the surplus in the district f-nds, the executive was in the hone that some increase in the benefits could bp recommended, and with that object in view wrote to the Registrar. From one reply it appeared that to increase the funeral ben-fit as suggested to nresent membm only would cost £6275. To pay memb rs contributions over 65 years of a°*e (pr sent members only) would cost £12,C00 odd and to increase the sick nay from 5s ™ ICs | cr week would cost something like ±,25,0u0. Under the circumstances the executive could not recommend any incre.iso in the present benefits. This was verv much regretted, and had the district b;en consolidated would have completely altered l the position. The report of the executive also sot out the visits paid to different courts during, the yea.T. and showed that the membership for the district on 31st December, 1914, was 3159. During the year 242 members were initiated, 17 were lost by death, and 252 bv arrears and other causes—a total of 269, as against 282 in .the previous year. This was not very satisfactory, and some peoole were inclined to the belief that the National Provident Scheme which was subsidised by the Government was having a detrimental effect on Friendly Societies generally. The funeral claims for the year-amounted to £440, and represented 18 members and eight members' wives. Last year the amount of sick pay disbursed by courts was: Two thousand four hundred and twentv weeks four and a-half days, at 20s, £242*0 14s lOd; 899 weeks four days, at 10s, £449 16s 8d: 1766 weeks one day, at ss, £44-1 10s lOd; 358 weeks one day, at various amounts. £46 2s Id; —total, 5444 weeks four and a-half days, £3358 4s sd.

On £159 members this gave an average of one week four dnys and eight hours per member, the average cost beinj £1 *ls 3d per member—a considerable increase on 1913. For 1913 the average was one week three days and two hours per member, and the average cost 17s 3d per member. The eight district members had drawn £19, and represented 93 weeks sick pay—an average of 13 weeks one day, and £7 per member. In the male- courts. St. Andrews had the highest average, two weeks five and a-half days, tlie average cost being £1 12s lOd per member. Star of the Soi:th came next with an average of two weeks four days, and £1 13s 5d per member. In the female courts Victoria had the highest average, three weeks and three days, and £1 Os lid per member. Woodland's Pride ' had the 10-.vest, the average being' one week three days, and 12s 5d per member. The funds under the control of the d"strict amounted to £32,625 12s (less £9241 6s lid, Central Investment Fund), and the vabie of the court funds was £44,008 14s Oia. making the total value of the district £67,392 19s l|d. The interest credited to the various district funds amounted to £1054 13s 6d, and to the courts £1984 Is lOd; total for tho whole district, £3038 15s 4d.

The Registrar, in forwarding the valuation reiport, congratulated the district on the excellent report, showing general improvement and progress. The cause of the surplus in the district funeral fund was of considerable interest, and the result went to show that the' d'strict had come through its srcess'on difficulties with success. The membership included in the valuation was 3467. as against 3214 in the previous valuation. The society presented evidence of very careful and capable management. The improvement since last valuation was very marked indeed, and it seemed quite clear that n continuation on existing lines would insure further satisfctory progression.

COURT PRIDE OF DTJNHDIN. ANNUAL REPORT. The annual report una niianuial statement for tno year ended December 31, 1914, has been issued to members. It shows tiiat aur.ng the year the amount disbursed m sick allowances reached tho sum of £621 9s 2d, and hi lunera claims £ils, making a total ot £166 9s 2d—an increase of £44 compared with ISI3. Notwithstanding the increased payments from the sick and funeral fund, tnero is st.ll a gain of £134 Is 8d for the year, while it must be taken into consideration that £85 17s 3d was paid out for surrender values, so that, had these payments, which are non-recurring, not been made, the gain would have .been £219 13s lid. The management fund shows a decrease of £21 ■2s 6d, due to valuation fees, etc., incurred through the secession and re-registration of the. court. The benevolent fund amounts to £383 lis Id. showing a slight increase of 4s 3d on last year s balance. The balances of the surplus funds have remained almost stationary during tho year, owing to the number of members who are availing themselves of_ the opportunity of having their contributions paid from "these funds. The total amount invested on mortgage at December 31, 1914, was £11,923. covered bv insurances to the amount of £12.835. Th : j interest for the year amounted to £607 9s lOd.

The valuation report prepared by the Government actuary shows that, in the ou-'r.-quennium period ended December 31. 1912. the number of members increased from 293 to 345, and the average age from 39.38 year* to 41.85 years. The sioknoss ohims in the quinquennium amounted to £2626. n.s against an expectation of £2556, a loss of £70 bein"therefore shown. In the quinquennium rnrl-fi 1903 the s>okr.es>s was unfavourable to Hie extent of £<13. There wore 19 death* agnnst 23 expcotoH. while in the previous To, H'7" 0 " WCTC 28 > against an expectation of 21. The rate of interest earned on the funds was 5.43 per cent., as compared with 5.19 per cent, for the nrevious five years. For the purpose of the valuation the future interest earning power of the funds had been taken as 4 per cent. net. The result was a deficiency of £41, as against a surplus of £2154 at 1908. The marked d'fference in the position was due princip.illv to the secession from the district, which caused a loss of about £1800 (it has since he°n ascertained that the exact amount is £17d7i to the court, and to the apparently insufficient consideration accepted by the

court for the transfer of members of th( Union Steam Ship Company Mutual Benefit Society. It was true that the previous turplus _ was considerably diminished by appropriation of a. large sum,'but this would in all probability nave been mora than made good in the "ordinary course had it not been for the above factors.

The_ actuary added that, in. making the valuations, he had not fully taken account of the new rule limiting the invalidity benefit to seven years. Probably that would make a difference of £500 or so (at 4 rough guess). The rule would probably be found to be difficult to work, and no doubt the lodge would be glad to revise it so soon as circumstances permit. It would be wise therefore to ignore it in the valuation for. the present. A table is appended to show that in 25 vears members had paid in to the sick and funeral fund £7505 and drawn out £12,364. Members had, therefore, drawn out in benefits £5359 more than they had oaid in. In addition to this over £3000 haa been transferred out of the sick fund fof the benefit of members, bringing- the benefits in 25 years to £8359 more than the contributions. There was. nothing, surprising in this, because it was the business -of a friendly society to accumulate the members'_ money -when .they were young and pay it out when they were old.