FRIENDLY SOCIETIES.

Poverty Bay Herald, Volume XXXIV, Issue 11123, 24 July 1907, Page 1

FRIENDLY SOCIETIES.

REPORT TO PARLIAMENT. * - v (From our Parliamentary Reporter.) WELLINGTON, this day. Interesting information with regard to the Friendly Societies of the colony is contained in the annual report of the registrar presented to Parliament yesterday. The total number of registrations during the year was 36r-M.U. Oddfellows 7, Independent Order of Oddfellows . 2, Foresters 3, Druids 14, Rechabites 2, Hibernian 4, P.A.F.S.A- 2, I.F.S. 2. The 500 lodges which furnished returns for 1906 are shown to have a membership of 53,751, and the total funds, amounted to £1,057,281, or an average capital per member of £19 13s 6d. Tables are also given showing that the Friendly Societies' membership has during the last 20 years. increased at a considerably greater ratio than the population, and I it is interesting to note that the amount insured in life companies, the Friendly I' Societies' membership, ana the Friendly Societies' -contributions have all increased * at almost exactly the same ratio. The report adds that the greater rate of increase in life insurance premiums as compared with Friendly Societies' contributions is probably due to the employI ; ment of paid canvassers. The tab'es ' further show that although there is now a much larger population than in 1897 each member of the population, now carries (1) a greater insurance, (2) pays more in premiums, (3) more in Friendly Societies' contributions, and (4) every 100 of the present larger population contributes more Friendly Societies' members than was the* case in 1887. "The results as a whole^" states the report, * disclose a remarkable increase in thrift during the period under review, of which Friendly Societies' business has had its d*ue share." The amount of sickness benefit paid was £52,903 in 1906, equal to £5 14s 4d per member each, or £14 2s per week. The funeral benefit fund amounted to £9496, or 3s 8d per member. VThe practice of borrowing benefit funds for management expenses," says the report, "shows a tendency to increase, and must be checked, as the using of the funds for the purpose is depriving the benefit fund's of the earning power necessary to maintain the profit rate which will ensure the solvency of the societies' finances as based on contributions. The funds of societies can only j be invested in those forms of securities specified by the Act and the rules, and it is the duty of the registrar to closely scrutinise any investment outside the forms. The borrowing of 'funds by trustees, no matter on what securities, cannot be too strongly condemned, and societies should' in every way discourage the practice. An examination- made by the actuary shows that the mortality of New Zealand Friendly Society members is somewhat lower .than that of the general population, a result that might nave been expected ; to mention only one reason, Friendly Societies' members are in a sense selected lives who have to pass , a medical test before admittance; furI ther, Friendly Society lives show a lower I rate of mortality than the population of _ New Zealand, but a higher rate than that of New Zealand assured lives." Referring to cases of embezzlement of societies' funds recently before the Courts, the report says it is to be hoped that these cases will have the effect of bringing home to those responsible for the safeguarding of benefit funds the desirability of providing for a thoroughly efficient audit. Regarding unclassified societies the number is given as 404— Sports 176, musical 71, social 68, various 89. There is every indication (says the report) that the number of unclassified societies will further increase, and as some of these organisations have considerable funds and property the question of imposing in the interest of the public some stricter supervision over their business will very shortly require consideration. Section 16 of the Act of 1895 authorises the cancellation of the certificate of any corporation should it be found that the society is other than an unclassified society, but the Act provides no means of ascertaining whether or not a society is conducting its operations in conformity with its registered objects. ____________