A DANGEROUS PRACTICE.

Taranaki Herald, Volume LIV, Issue 13483, 24 July 1907, Page 5

A DANGEROUS PRACTICE.

"The practice of borrowing benefit funds for management expenses," says the report, "shows 'a tendency to increase and must be checked, as the use of funds for this purpose is depriving the benefit fund of the earning power necessary to maintain the profit rate which will ensure the solvency of th*» Societies' finances as based on contri- % butions. The funds of Societies can only be invested in those forms of Securities specified by the Act and the rules and it is the dut^ of the Registrar to closely scrutinise any investment outside those forms. The borrowing of funds by trustees no matter on what security cannot be too strongly con- v demned, and Societies should in every way discourage the practice." >