CORRESPONDENCE.

Timaru Herald, Volume XLIII, Issue 3753, 12 October 1886, Page 3

CORRESPONDENCE.

LIKE INSURANCE. TO THE EBITOK OF THE TIMAKU UERALD. Sir, — Tho actuary of tho Australian Mutual Provider! Socu-iy njiponrs, as usual, to have been strielly accumte m his flatement "that tho Equitable of the Dnited States is a joint stock company, and none but shareholders ere eligible for tho office of directors." Mr Godfrey Knight, tho actuary of the American company, tries to dispose of the first part of this statement by his reply " that the laws of New York compel overy company to subscribe a capital of £20,000 before it can commence business, nnd that by tho Equitable Society'g charter the interest is limited to 3i per cent half-yearly upon their capital." Mr Knight apparently considers ifc beneath his notico to answer the charge that " none but the shareholders aro eligible for the office of directors, " and ho preserves a diaGreet silence upon that most important point. But when Mr Knight makes bold to «ay that the security of the £2*1,000 subscibod by the shareholders has cost tho policyholders "nothing," I cannot help asking for a few crumbs of information as to the remuneration paid m the form of salary to tho 49 directors elected from the £20,000 worth of shareholders. Is it a fact, I wonder, that m the case of Bewley v. tho Equitable, these directors swore that all the funds (stated to be some £13,000,000 sterling) belonged to the £20,000 worth of shareholders, and that " the policyholders had nothing to say as to their disposal?" It is no longer a matter for wonder that m the recent legislative investigation of this company held m New York " the committee, wore unablo to obtain a list of the names of the officers, and the amount or sum of money paid to each and on what account, to the end that it might be known how the item of 245,659 dols set down m the annual report of said company as salaries and ether compensation of officers and other office employees was disbursed." It has been said, sir, that a coach and Tour can be driven through an Act of Parliament, I and that would not appear an impossible | feat with regard to tho charter of the Equitable Company. True, Mr Knight, the interest of your shareholders is limited to seven per cent per annum, but is it not a trifle suspicious that there are 49 directors, presumably nt a high rate of salary, plus tho paltry interest, whereas the Bank of England, a much larger institution, is administered by a board of 2-i gentlemen only ? I am, &c, Muebay Aston, District Agent for the Mutual Life Association of Australasia. Timaru, Oct. 11th, 1886. [Adv.]

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