Wairarapa Standard Published Tri-weekly. Price 1d. FRIDAY, JUNE 18, 1886. The Government Life Insurance Association.

Wairarapa Standard, Volume XIX, Issue 1846, 18 June 1886, Page 2

Wairarapa Standard Published Tri-weekly. Price Id. FRIDAY, JUNE 18, 1886. The Government Life Insurance Association.

In our last issue we referred briefly to the meeting held at Wellington of the policy holders in the Government Life Insurance Association. As that meeting stands adjourned till Monday, it will be well to consider some further points connected with the position and prospects of the Association. Sir Julius Vogel, in his speech to the policy holders, represented everything connected with the Association as being in the most satisfactory and flourishing condition. And certainly the speaker had the opportunity of making some good points. Ho said that during the past year 1371) policies had been completed, as against 3501) during the year 1881. The sum assured was L 859.769, as against £BOO,OOO during the previous year. The accumulative fund showed an increase of L 129.238. There had been an increase of working expenses during the year, but that was partly due to expenses incidental to the quinquennial investigation, and to the alteration iu the constitution from a Government Department to its present form. He thought it scaicely possible that the Association could be worked so cheaply as it was when solely in the hands of the Government. We can very well believe the admission that the working expenses of the Association had largely increased, because last year they amounted to L 28,000 as against L 20.000 for each of the two previous years. When the working expenses of a department suddenly increase by no less than LBOOO in a single year, there is certainly ample reason for making a rigid enquiry into the cause of this enormous addition. Sir Julius Vogel then tried to justify the appointment of Mr Driver at a salary and commission of LIOOO a year, but only made out a very poor case. It is a matter of notoriety that this appointment was a gross job, perpetrated by Sir Julius Vogel to reward a political supporter. With respect to the enormous sums laid out in tne purchase of new buildings and sites, the only justification urged by Sir Julius was to th« effect that grand and palatial buildings were necessary in order to secure a large business —an argument the soundness of which we altogether deny. Altogether, Sir Julius Vogel was unable to make a good defence of the flagrant jobbery and gross extravagance which have been committed in connection with the Association.

After this speech came “ the tug of war.’’ Mr George Fisher seized upon some of Bir Julius Vogel’s chief statements and tore them to tatters. With respect to the extravagant purchase of sites Mr Fisher said “ that granting the necessity for fine buildings, certainly they had spent enough money to buy them, but where were they ? In Dunedin they had spent L 35.500 for a site, which was paying 4J percent. Was that profitable? Then the property was not in such a position that it could be dealt with. It was encumbered by leases for five and seven years. Where was the fine building in Auckland ? Mr Bell said that last year he believed that the purchase was a good one and the price reasonable, and that they could get more than they paid for it. Well, there it was—it cost LID,OOO, and they had lost LIOOO on it in interest during the year. The Wellington purchase was an admirable one, for they could always get the - h »ok. But what about Christchurch ? monejr - —'■'nslble for that purchase, He was partly haii b he admitted; but the prope,,., leased back to the vendors, on terms that would yield for five years 4.3 per cent and for twenty years 5.1 per cent. What was tbe use of the outlay, then ?”

Certainly Mr Fisher has shown in the plainest possible way that in making those purchases of sites and buildings the Association has secured a number of bad bargains at frightfully extravagant prices. We wonder if any person or persons, connected with the Government Insurance Association managed to reap a substantial advantage through those purchases being made ? Of course, tbe sellers of tbe properties made an enormous haul, but we cannot help suspecting that some other shrewd folks found it to their advantage to have those purchases put through. In these “ political purchases ” one always suspects that a good deal of “ palm oil ” gets to be used for purposes of lubrication. Only the term “ palm oil ” in such eases are mid to mean bank notes and hard coin. Mr Fisher next dealt with tbe Driver appointment, and declared positively that since it had been made the business in that gentleman’s district had fillen off. This statement being questioned, Mr Fisher added :— *• Well, lie would give the figures. The new business done by Mr Clapeott in his first three months was L 33,012 ; and by Mr Driver m his first quarter, L 36 150. The lapses were Mr Clapcott’s quaiter, L32.H35 ; Mr Driver’s L 17.084. Following on the Driver appointment there was a net decrease in the first quarter’s Canterbury business of L 2850. Then he pointed out that they were retaining Mr Clapoott as well as Mr Driver, and an increase of Lll7oper annum was what it cost them to do L3OOO lees business in the first quarter.’’ Mr Fisher pressed this point of the case with mnoh vigor and in elaborate detail, and certainly carried the majority of bis audience with him.

Aft r Mr Fisher’s onslaught a number of other speakers had their innings and some interesting facts were brought out. Mr Travers deuounced one of “ the site purchases ” as " looking fishy,” which assertion was forcible, if not polite. In truth, Mi Travers was oandoir itself. He asserted positivity ‘I that the Government had used the Association lor political purposes"

—and then clit-ritnbly added--" Small blame to them—nil Givcrunvnts did the same—in di^tJibutint; political patronage an assertion which is alike sad and true. Major Atkinson followed in a sensible speech, and referring to the purchases of the sites, remarked :—“ The purchase of sites showed the direction in which the business was to be conducted—their business was to be conducted by flaring advertisements and fine buildings. He objected to the purchases, not necessarily because they were improper, or there was anything wrong, but because they were not needed.” They had a snug reserve fund, and at the back of that the Government guarantee. He moved an addition to the motion for the adoption of the report, as follows-“ That, in the opinion of this meeting, it is inadvisable to proceed with the erection of a new building at the present time at Wellington.” After some discussion the Chairman ruled that this motion could not be put without notice. Then Sir Julius Vogel made a wind op speech in reply to Mr Fisher’s statements, but almost entirely failed to upset them. The remaining business of the meeting was the question of the future constitution of the Board of Directors. The question was discussed for some time, but at length it was agreed to adjourn its further consideration to another meeting to be held on Monday night. The question has therefore still to be decided, whether the Association is to be placed once more entirely under the control of the Government; or under a Board which shall be really representative of the interests of the great body of the shareholders. On a future occasion we shall deal with this important feature of the subject.