THE MYSTERIES OF THE GOVERNMENT LIFE INSURANCE DEPARTMENT.

Observer, Volume 2, Issue 33, 30 April 1881, Page 349

THE MYSTERIES OF THE GOVERNMENT LIFE INSURANCE DEPARTMENT.

No. l— Charles Godfrey Knight, Actuary We have been asked to criticise in detail the Government Life Insurance Department and the leading officials connected with that fearful and wonderful conception of the great Sir Julius. We have consented to do this, partly because the public will receive an instructive and amusing lesson from learning what a fiasco cA r entuates when an ordinary commercial business, such as life insurance, is conducted under the rules of Government redtape and circumlocution, and partly because we arc desirous of analysing the statement publicly made by Mr. Kennedy Brown, the Government lecturer, when he said that such a thing as Government j>atronage was unknown in the department. We owe an apology, perhaps, to Mr. Luckie, the Government Insurance Commissioner, for not commencing this series of papers with himself, but the fact is that, in glancing towards the department, our eyes become so dazzled with the brilliant appearance of its Actuary that we feel in a manner compelled to dispose of him first. The subject of this sketch, Mr. Godfrey Knight, may be said to be the virtual head of the department. We say virtual because the ostensible head is the Commissioner, Mr. D. M. Luckie, but this latter is almost a nonentity so far as insurance business is concerned. By the way there is another head, viz., the Colonial Treasurer, for the time being. He, in all probability, knows no more about ife insurance than Mr. Luckie, but such s the wonderful nature of the business that both Mr. Luckie and the Minister have to be consulted on all matters connected Avith the department. So we see this Government Insurance has three heads, two of whom are almost nonentities, consequently the department is pretty well at the mercy of the third — Mr. Godfrey Knight. This gentleman in commencing life was singularly fortunate in his choice of a father. The sagacity he displayed in this particular was only equalled by the wisdom he showed in later years in his choice of a father-in-law. The former was the celebrated ex-Audi tor- General, Dr. Knight, a gentleman, who entered the Civil Service of the Colony in its very early days, and who, on his retirement, had reached pretty well the top of the tree, by which time he was associated, and on intimate terms, with all those people who were worth knowing in the Colony — that is of course with everyone who lias ever had a hand in distributing the loaves and fishes. Young Godfrey, it is said, never showed any great aptitude for figures or for learning of any kind when at school. His case is indeed almost analagous to that of the Ist Lord in " Pinafore," and — If yon never learn figures you yet may be, A wonderful Government Actuaree. Mr. Knight's first appearance in any public capacity was on a survey in the Province of Auckland. Nature, however, had clearly never intended him for a surveyor, and he soon became satisfied that he must give up all hopes of ever being Sur-veyor-General. Just at this time the great Yogel conceived and carried into execution his immortal scheme of Government Life Insurance, and also, just at this time, it was discovered that Godfrey Knight had developed wonderful calculating powers, for which, up to that time, no one had ever given him the least credit. He suddenly burst on the world as an "actuary." This marvellous inspiration or downpour of genius, or whatever it might be called, happened most opportunely. The moment the glorious scheme of Government Life Insurance was conceived, that same moment a full-blown heavenborn actuary sprang into existence. Whether it was that doubts arose as to the value of this sudden inspiration, or whether it was judged advisable that the young man should see something of the world before settling down in the actuarial chair, deponent sayeth not; but whatever may have been the reasons, Mr. Godfrey started on a trip to Europe, a paternal government kindly giving him an extended leave of absence on foil pay, with per-

mission to draw his salary in advance. There is considerable mystery attached to this visit to the old country, and to the value obtained from it by the Colony. There is a sort of shadowy idea that Mr. Knight completed in London what inspiration had partly failed to accomplish in New Zealand, and that by doing something when there, he became entitled to place the magic word actuary after his name. One of Mr. Knight's first acts on returning to New Zealand and to his duties was to put in force a scheme emanating from his own actuarial brain. This project was the now celebrated Government Industrial Insurance Scheme. The affair proved a dead failure, and resulted in a considerable deficiency instead of profit to the department. The cause of the failure is difficult to discover, but it is supposed that the grafting the actuarial knowledge gained in London on to the inspirational knowledge spontaneously developed in New Zealand has, to a considerable extent, prevented and injured Mr. Knight's powers of nice calculation ! He receives a salary of £600 a-year, which he draws regularly. Last session a sum of £2000 was placed on the estimates and voted towards defraying the expenses of getting the quinquenial report on the Government Insurance business worked out by English actuaries. As the working out of this report is clearly one of Mr. Knight's actuarial duties, the £2000 may be looked upon as a bonus paid by the Colony to keep Mr. Knight in his position. Those who are not generally interested in Mr. Knight look upon that gentleman as one of the Colony's dear bargains. "His sisters and his cousins and his aunts," as may be supposed, take a totally different view of the matter, and, moreover, "his sisters and his cousins and his aunts" have sufficient interest with the "great powers" to enable them to keep him at his present post. And yet Mr. Kennedy Brown says political influence is not a factor in the control of the department !