LOCAL INSURANCE BOARDS.

Wanganui Herald, Volume XX, Issue 5631, 29 May 1885, Page 2

LOCAL INSURANCE BOARDS.

This question was fully dealt with by the Colonial Treasurer in Wellington at the annual meeting of the Government Life Insurance Association. Prefacing his remarks by an allusion to a meeting held in Invercargill, the speaker said it was absurd to suppose that the Board had any personal feeling on this matter. It had been insinuated that he wished to get these Boards appointed, but the idea that he wished to use political patronage to get gentlemen appointed at a salary of £100 a year was contemptible. There was no greater nuisance to be met with than the distribution of politicaf patronage; for in using it for every person you pleased you displeased ten or twelve. These appointments rested with the Board — not with him, and be hoped those gentlemen would be too conscientious to make such appointments other than in the interests of the Association. Really, he ought to apologise to the meeting for referring to the subject of these rumours ana statements. A rumour spread through the colony that there was a political issue in question in connection with this matter. There had been, it was true, a difference of opinion on the Board is respect to it, but the subject had been argued out harmoniously, and on its merits. They had not been able to agree, and he thought he might say on behalf of a majority of the Board, that it would be satisfactory to have the opinion of the policy-holders upon it. (Hear, hear.) He thoughVthlit opinion ought to be taken. He had proposed local boards because he considered that they would extend the powers of policy holders, and that was the object he bad in viewallalongin the incorporation of the Association. If the Boards were appointed many thousands of policy holders would have local Directors, and they would have a large discretion in the selection of their Directors. As regarded the cost, that would be mere trifle to an institution with Buch an income as theirs. For £100 each, a clerk'B Balary, they wruld have Directors, gentlemen of position and influence, who would be invaluable in representing the institution and getting business for it. At present they had agents all over the country, but they had no influential gentlemen in the centres who would help the agents and help to disabuse the stories industriously circulated to the discredit of the Association. These Boards would be of great assistance in enabling the Association to invest money. He did not say that they should give to those Boards the power of investing money, but when they had applications for investment it would bvery satisfactory to be able to refer to disinterested persons whom they knew, and whose opinions were reliable. He had heard it stated that local boards could not be trusted ; that if they were allowed to invest money, or recommend investments, they would misuse the money. He must say he thought that was a libel upon the gentlemen of other citieß. Surely it would be possible to obtain gentlemen in other parts of New Zealand than Wellington who were worthy to be entrusted with responsibility. If the argument he alluded to held good, then the elective principle was a mistake altogether. For himself, he was anxious for the time to arrive when the elective principle would be more fully carried out ; and he looked forward to the time when the Government would give entire control to the shareholders.. (Hear. hear). Members of these local Boards, as busiaess increased, would become members of the Central Board, so that in time the elective element in the Central Board would be largely increased. In his opinion, if the policy-holders were unwilling to have these local Boards, they ought immediately to increase the elective interest in the Central Board to give policyholders a larger share in the management. He wanted to increase the power of the policy-holders as far as it was possible to do so. There were one or two things, however, which the Government, he thought, oould not part with, even if they gave up control to the policy-holders. The Government must determine what should be the nature of the investments of the Association ; the approval or disapproval of the basis upon which the business was carried on ; and the approval, more or less, of the officers appointed to fill the higher offices. These points, it seemed to him, the Government must retain, aud that was the ultimate result to be looked to. In his opinion that result would be brought about by local boards. The Government was giving a guarantee, and while they gave that guarantee they expected to get a certain amount of control in return. He desired to see this matter of local Boards fully ventilated, and therefore it had been decided to allow any policyholder to move a motion without notice ; and upon such a notice a poll could be demanded by two policy holders. In the poll proxies would be allowed. In conclusion, Sir Julius cautioned the policyholders that many reports were spread about in reference to the conduct of the Association. Policyholders should remember that they were shareholders, and if it was found necessary for them to make complaint or inquiry, he was quite sure that the members of the Board, so far as lay in their power, would give any information.