FRIENDLY SOCIETIES (THIRD ANNUAL REPORT, BY THE REGISTRAR OF).

Appendix to the Journals of the House of Representatives, 1880 Session I, H-19

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ISBO. NEW ZEALAND.

FRIENDLY SOCIETIES (THIRD ANNUAL REPORT, BY THE REGISTRAR OF).

Presented to loth Souses of the General Assembly, pursuant to " The Friendly Societies Act, 1877," Section 9, Subsection 6.

EEPORT. As the two previous reports were for the periods respectively ending on the 30th June in each year, it was considered desirable, notwithstanding the earlier meeting of Parliament this year, to continue the report for the year ending on the same date, so as, if possible, to include in the report the latest particulars of the receipts and expenditure, funds and effects of societies, which they are required by the 13th section of " The Friendly Societies Act, 1877," to send to the Registrar on or before the Ist of April in each year ; but, on account of the delay in the transmission of these returns, and the time occupied by the examination of them when received, and by the correspondence necessary for the correction of palpable errors or the supply of deficient particulars, it has been found impossible to present with this report a full compilation of these returns for the year 1879. A brief abstract of the most salient features of the returns has been given in Schedule I. hereto. A full compilation of the results of the returns for the year 1878 has been made, and the tables are ready for printing; but the pressure of parliamentary work in the Government Printing Office renders it so improbable that the tables could be printed in time for presentation to the General Assembly during the current session that it has not been deemed expedient to hold this report over an} 7 longer in expectation of including them. These tables, with accompanying remarks, will be separately published, and circulated as soon as possible. The difficulty experienced in dealing with these tables, in consequence of the earlier period of the year at which the General Assembly has met, and will probably meet for the future, may render it desirable to make the next report for the six months terminating on the 31st December next, so that subsequent reports may embrace the calendar year, and time may be afforded for preparing the report before the meeting of Parliament. I.—BUSINESS OF THE REGISTRY OFFICE., 1. Depaetjientat. "VVoek during the Year ended 30th June, 1880. The work of framing regulations, and the publication and issue of model tables of contributions, referred to in the last report, has not recurred during the past year. Unless any changes in details are required, or additional tables of contributions for special purposes (e.g., for annuities, instead of sick payments, after certain ages), the work, from its very nature, once done, remains. The Transference on to Cards of Information given in tlie Returns of Sickness and Mortality. — This work is now kept up annually in respect of members who were sick, died, or seceded during the year. The original transcription of all the members' names, &c, on cards having been once effected, ithe annual labour is not extreme; and, by 4ealing with the particulars of sickness and mortality annually, the work that would otherwise be thrown upon the office at the end of the quinquennium is largely reduced. A large amount of time has, however, been occupied in the careful examination of the quinquennial returns. (See p. 7 below.) The Compilation of the Statistical Tables for 1878. —This work of considerable magnitude has been dealt with, but, for reasons already given as to difficulties in printing, the tables have not been appended hereto. The Statistical Tables for 1879. —An attempt has been made to compile the tables for 1879 ; although they are in a very forward state, still, on account of the neglect of some societies in the prompt transmission of their returns, the compilation made is as yet in an unsatisfactory condition. An abstract of some few leading features in respect of those societies from which returns have been received is, however, appended to this report. The general work of the office in the administration of the Friendly Societies Acts, 1877 and 1878 —the examination of returns and issue of queries on defects or errors therein, the correspondence relating to registration and what may be necessary to secure compliance with the Acts, the general procedure connected with registration or cancelment thereof, the recording changes of officers of societies, and other details —occupies a considerable amount of time, and is similar in character from year to year. 2. Societies Registered during the Year. The following societies have been registered during the year [the numbers given are the register numbers] : — No. 150. — The Hawke's Bay District of the Ancient Order of Foresters. —This district comprises five courts, all of which were registered as branches at the same time as the district itself. (See under.) No. 151.— The Wellington Working-men's Club and Literary Institute. —Eegistered under section 7 (4) of the Act. I—H. 19.

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No. 152. — Pioneer Lodge, No. 47, United Ancient Order of Druids. — This lodge, situated at Christchurch, is in reality a brancn of an order the head office of which is in Melbourne. On this ground it was compelled to register as a separate society. There are known to be seven lodges of this order in New Zealand; and a desire for registration is commendably conspicuous. No. 153.— Loyal United Friends Benefit Society.- —This body, situated at Auckland, is in reality a lodge of the Society the name of which it has assumed. The head office of the order being outside New Zealand, the lodge is placed in the position explained above under No. 152. No. 154.— The New Zealand Railways Employ is' Benefit Society, Invercargill Branch. No. 155.— Hope of St. Alban's Lodge, No. 95, United Ancient Order of Druids. —This lodge is situated at Christchurch. Its legal status is the same as that of No. 152. No. 156.— Ray of Hope Division, No. 17. —This body, situated at Greymouth, is a branch of the Order of Sons and Daughters of Temperance of Australasia, being a subordinate division of the Grand Division of New Zealand of that order. Though it could not have been registered as a branch of the order as a whole, for the reasons set forth under No. 152, it might have been as a branch of the Grand Division of New 7 Zealand, had the latter body taken the necessary steps to secure this result. No. 157. — Dawn of Light Division, No. 19.—This branch of the Sons of Temperance is situated at Rothesay, near Dunedin. The remarks given under No. 156 are equally applicable to it. Ten subordinate divisions of the order, with an aggregate membership of 398 males and 37 females, and with funds to the amount of £2,199 7s. 5d., were in affiliation to the Grand Division of New Zealand on 30th September, 1879. A list of unsuccessful applications for registry* up to 30th June, 1880, and a list of registered societies to date, are given in Schedules 11. and 111. appended hereto. 8. New Branches Registered during the Yeah. The following lodges and courts were registered as branches of registered societies: — Auckland District of the Independent Order of Odd Fellows, Manchester Unity. —I,* Loyal Howiek Lodge, No. 6,220,f situated at Howiek. North, Canterbury District, Manchester Unity Independent Order of Odd Fellows in New Zealand. — 1, Loyal Volunteer Lodge, No. 5,428, situated at Sydenham. North Westland District of the Independent Order of Odd Fellows, Manchester Unity. —1, Loyal Reefton Lodge, No. 5,931, situated at Eeefton. Otago District of the Manchester Unity Independent Order of Odd Fellows, Friendly Society. —5, Loyal Tapanui Lodge, No. 5,775, situated at Tapanui; 7, Loyal Prince Alfred Lodge, No. 5,467, situated at Waikouaiti; 10, Loyal Palmerston Lodge, No. 5,810, situated at Palmerston (S.) ; 20, Loyal Mosgiel Lodge, situated at Mosgiel. Independent Order of Odd Fellows of New Zealand, Friendly Society. —15, Loyal Pioneer of Southland Lodge, No. 27, situated at Invercargill. Hawke's Bay District of the Ancient Order of Foresters. —1, Court Sir Charles Napier, No. 5,502, situated at Napier; 2, Court Captain Cook, No. 5,840, situated at Napier; 3, Court Sir Henry Havelock, No. 5,841, situated at Havelock; 4, Court Robin Hood, No. 6,389, situated at Port Ahuriri; 5, Court Ruahine, No. 6,496, situated at Waipukurau. Wellington District, Ancient Order of Foresters. —12, Court Marquis of Normanby, No. 5,533, situated at Carterton. In addition to these branches, notice of the establishment for the purpose of registration has been made in respect of 26 other branches —set forth in Schedule 11. (d.). In the case of 3 of these branches objections to the rules were made by the Revising Barrister, and these objections have not yet been met by alterations of the rules. Twenty-two of the branches belonging to the New Zealand Central District of the Independent Order of Rechabites, Wellington, had not any rules at all distinct from the district rules. The Act requires that branches on registration shall furnish branch rules; and, as these 22 branches have not framed any rules specially applicable to themselves, it has been found impossible to register them. One of the objects of registration is to register the rules specially applicable to the body desiring registration, and, as the Act stands, if a branch does not fragfie some rules specially applicable to itself as a distinct branch, it cannot be placed on the register. The branches have been informed that, in order to enable them to effect registration, rules of the most simple character will bo accepted, such as rules for the constitution of the branch, for its name, for due subordination to tho district, and (if it is not desired to make laws in detail) adopting generally the district laws relating to branches as the special laws of that branch, provided that such district laws make provision for all the matters required by the Second Schedule to " The Friendly Societies Act, 1877." Although this would only involve the necessity of making two or three short rules, yet the 22 branches mentioned have not thought proper to adopt the suggestion. It is true that in the case of these branches a few additional rules would have been necessary to comply with the provisions of the Act of 1877, as the district rules had been registered under the former Friendly Societies Act. This suggestion has been found useful in other cases, and, by the adoption of that course, several brauches have been able to secure registration. It is to be regretted that so large a number of branches should, on account of a difficulty Which they could so easily get over, shut themselves out from the benefits of registration. As, however, there is apparently a strong objection on their part to make rules, it is worth consideration whether, by a slight modification of the Act, this objection could be met. As a general rule, the laws of a district are divided into two parts—(l) those general laws relating to the constitution of the district, and general matters to be dealt with by the central executive and by the representatives of the aggregate lodges ; (2) the special subordinate lodge laws regulating their internal economy to a certain extent, but giving them power to make by-laws supple-

* Some of the cases included under this head do not profess to be formal applications for registry, but merely intimations of a desire to register and requests for information as to the mode of procedure. t The number prefixed to the name of each branch is its number on tbo Register of tins office. The number quoted after the name, is the number assigned to it by tie central body of the order to which it belongs,

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mentary of these subordinate lodge laws. It may therefore be a matter for consideration whether the Act might not be modified by providing that, whenever a notice is given of the establishment of a branch for the purpose of such branch being registered, if such notice ,is not accompanied by any branch rules, it shall be lawful to register such branch provided —(1) that a declaration, duly made by the secretary of the society and by the secretary of the branch, to the effect that such branch has not made any by-laws, but is bound only by the subordinate lodge by-laws of the district annexed to the district rules forwarded for registration, and the district rnles so far as applicable, be forwarded to the Registrar with the notice of the establishment of the said branch ; and (2) that the said subordinate lodge by-laws make provision for tho matters required by the Act to bo contained in the rules ; and such subordinate by-laws, or any amendment thereof by the society, shall be deemed to be the registered rules of such branch ; but that the said branch shall have the power of subsequently registering by-laws made by itself as amendments of the said subordinate lodge laws, or in substitution thereof. A provision to this effect would probably remove tho objection felt by many branches either to remodel their by-laws or to make them where they do not at present exist, and would probably result in placing many branches on. the register. 4. 'Eegistered Societies converted into Registered Branches during the Year. (1.) The Loyal Charles Bruce Lodge, No. 5,373, 1.0.0. F., M.U,, Register No. 82, situated at Grahamstown, was converted into a registered branch of the Auckland District, 1.0.0. F., M.U., Register No. 13. (2.) Tho Loyal Westport Lodge, No. 5,562, 1.0.0. F., M.U, Register No. 89, situated at Westport, was converted into a registered branch of the North Westland District, 1.0.0. F., M.U., Register No. 92. (3.) The Loyal Perseverance Lodge, No. 5,955, 1.0.0. F., M.U, Register No. 132, situated at Woolston, was converted iuto a registered branch of the North Canterbury District, 1.0.0. F., M.U., Register No. 18. (4.) The following lodges were converted into registered branches of the Otago District, 1.0.0. F., M.U, Register No. 23 :—Albion, No. 5,283, Dunedin ; Alexandra, No. 5,732, Port Molyneux ; Prince of Wales, No. 5,254, Port Chalmers ; Roxburgh, No. 5,733, Roxburgh; Dunedin, No. 5,071, Dunedin ; Waipori, No. 5,558, Waipori; Dalton, No. 5,218, Balclutha ; Lake Wakatipu, No. 5,776, Queenstown; Cromwell, No. 5,850, Cromwell; Hand and Heart, No. 4,358, Dunedin; Oamaru, No. 5,284, Oamaru; Band of Friendship, No. 5,921, Kakanui; Tuapeka Pioneer, No. 5,378, Lawrence; Waitahuna, No. 5,443, Waitahuna; Blue Spur, No. 5,559, Blue Spur ; Mount Wendon, No. 5,922, Waikaia. Taken in conjunction with the four lodges newly registered (supra), and three lodges already registered, these constitute the entire Otago District, barring a single lodge. The officers of the District are deserving of high praise for the large measure of success w 7hich has thus attended their efforts to bring their lodges into compliance with the new Act. The new lodge rules are mostly models for imitation, excepting in the matter of rates of contribution, which, though a great improvement on the old uniform rate, are still too low. (5.) The Loyal Leith Lodge, No. 6, 1.0.0. F., Register No. 120, situated at Dunedin, has been converted into a registered branch of tho Independent Order of Odd Fellows of New Zealand, Register No. 146. (6.) Court Loyal Enterprise, No. 5,501, A.0.F., Register No. 127, situated at Masterton, was converted into a registered branch of the Wellington District, A.0.F., Register No. 144. 5. Partial Amendments oe Rules Registered during the Year. (1.) Court Lord Clyde, A.0.F., Wairoa, H.B. (2.) Court Blenheim, A.0.F., Blenheim, (3.) Now Zealand Railways Employes' Benefit Society, Christchurch Branch. (4.) Loyal Rangiora Lodge. 1.0.0. F., M.U, Raugiora. (5.) Loyal Waipori Lodge, 1.0.0. F., M.U., Waipori. (6.) Auckland Branch, H.A.C.8.5., Auckland. f 6. Complete Amendments oe'Rules Registered during the Year. (1.) North Westland District, 1.0.0. F., M.U., Reefton. Greatly-increased contributions Graduated scale substituted for uniform. (2.) Antidote Division, S. & D.T., Dunedin. Graduated scale of contributions substituted for a uniform scale. (3.) Lyttelton District, 1.0.0. F., M.U., Lyttelton. Increased contributions. (4.) City of Norwich Lodge, 1.0.0. F., M.U, Lyttelton. (5.) Invercargill District, 1.0.0. F., M.U., Invercargill. Greatly-increased contributions. Graduated scale for uniform. (6,) United Otago District, A.0.F., Dunedin. Sick and Funeral Fund relieved from liability on account of medical expenses. (7.) Court Loyal Feilding, A.0.F., Feilding. (8.) Hokitika District,* 1.0.0. F., M.U. Greatly-increased contributions. Graduated scale for uniform. (9.) Auckland District, A.0.F., Thames. Graduated scale of contributions substituted for a uniform scale. (10.) Nelson District, 1.0.0. F., M.U. After discussion original uniform scale was retained, the gradual increase of funds, in spite of the comparative age of the lodges, beiug taken as evidence of adequacy.

*The contributions and benefits of the Hokitika, Otago, and Invereargill Districts, 1.0.0. F., M.U., are now identical. The contributions are 6d. pe;1 month lower than the Actuary's scale, at all ages. Interest at the rate of about 6 per cent, would be required to liueb the benefits, on the assumption of Manchester Unity experience, and disregarding profit from secession.

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7. Dissolutions. (1.) Primitive Methodist Mutual Aid Society, Dunedin. (2.) New Plymouth Friendly Society, New Plymouth, with a view to reconstruction on a new basis. No. of members. Funds. Primitive Methodist Mutual Aid Society ... 12 £14 8 6 New Plymouth Friendly Society ..." ... 125 3,056 17 1 The New Plymouth Friendly Society is interesting* as having beon the first society in the colony to register, and also as being, so far as is known, the oldest society in New Zealand. It has for some time past been in an approximately stationary state as regards number of members —the numbers of admissions and departures having been very small, and about evenly balanced. Its future progress, when reconstituted, deserves to be watched with very great interest. It has hitherto charged a uniform contribution of 2s. 6d. per month, together with a small extra annual contribution for members entering at the higher ages, for a scale of benefits slightly higher than that guaranteed by most colonial branches of the two great English orders, though with a saving clause as regards payments in protracted sickness ; but, as far back as its operations have been watched by tho Ecgistry Office, it has realized a very high rate of interest on its funds. Tho average age of its members at the time of dissolution was about 42. 8. Notice op Cancellation. The Loyal Goldsborough Lodge, pronounced insolvent by its valuer (Mr. Leslie), desiring to amalgamate with the Loyal Waimea Lodge, of the same district, a mutual agreement was arrived at, and ade facto amalgamation took place. On the Registrar being informed of this, he intimated to the Goldsborough Lodge that, until the provisions of section 22 of the Act were complied with, the amalgamation would be illegal, and the trustees of the Goldsborough Lodge could not be relieved of their responsibility for the funds transferred. It was found impracticable, under the peculiar circumstances of the case, to comply with these provisions, and the difficulty was obviated hy a transfer (by the method known as "clearance ") of all members of the Goldsborough Lodge to the Waimea Lodge. The former had thus ceased to exist through lack of members, aud section 11 (1, b) of the Act became applicable. Notice of cancellation of registry was immediately given to the lodge; and effect will be given to this on the 23rd August next in the event of there being no valid objection previously urged. 9. Special Authority under Sec. 7 (5) o_? TnE Act. The Governor has authorized the following as a purpose to which the facilities of the Friendly Societies Act ought to be extended: — " The promotion of total abstinence from all intoxicating drinks." This special authority was given in response to a request preferred by the Independent Order of Good Templars. Not being a benefit society, this order could not register under section 7 (1) of the Act; neither did it seem possible to bring it within the scope of subsections (3) or (4). But, although this authority was given on the Sth December, 1879, and the fact intimated .to the Secretary of the Grand Lodge, 1.0. G.T., on tho 9th, the Registrar has received no further communication from this society. IL—WORItING OF THE AMENDMENT ACT OF 1878. The Registrar has to report that, except in regard to two of its provisions, the Amendment Act has so far worked very smoothly and well. The information required under section 4 has been in general furnished —sometimes with evidence of cheerfulness, and certainly not with greater reluctance than the information required under section 13 of the principal Act. In two particulars only has special reluctance been shown in a few instances —the furnishing of the names of members, and the furnishing of information respecting the wives of members. It is the 7th section of the Act which appears to have given greatest trouble. It has done so in two ways, and in each case the trouble has proceeded solely from the Provincial District of Otago. The Odd Fellows and the Foresters of that district are both affected by this section, though in different ways. The former had since 1874 adopted the practice of crediting all interest beyond 4 per cent, to the Management Funds of their lodges ; the latter have been in the habit of paying their court surgeon and other medical expenses out of the Sick and Funeral Funds of the courts. Both these practices became illegal by the Amendment Act of 1878. Yet the returns for 1879 show that in five out of the six registered courts of the United Otago District of Foresters from which returns have been received, the malpractice was continued during that year; while in the case of the Manchester Unity of Odd Fellows, although the law appears to have been obeyed by nearly all the lodges, and the district rules have been remodelled so as to comply with the Act, a petition has been presented to Parliament praying that this special prohibition should be rescinded. The Foresters' courts were communicated with on the subject of their breach of the law ; but, as the District had recently registered rules which would have the effect of preventing a repetition of the malpractice, no prosecution was instituted. In the case of the Odd Fellows a letter was sent to the District Secretary (Sth August, 1879) which, on account of its containing information useful to all societies, it may be desirable to quote in extensor — "Sir, —It having come under my notice that a petition is being circulated amongst the various lodgesf of the Manchester Unity of Odd Fellows, with the object of obtaining an alteration of the law in respect to the appropriation of interest earned by the benefit funds of friendly societies, I deem it my duty to address to you a short explanation of the grounds on which this portion of the law is

* It is also interesting as being Uic only true example in New Zealand of the isolated local friendly society, which is so common in England, but which, unlike the system of the affiliated orders, does not appear to have been transplanted to any great extent to the Australasian Colonies. Somo statistics respecting it are given in Schedule IV". to this Report. t That is, amongst the lodges of the Otago District of Odd Fellows only. The other districts are perfectly sound in their practice on this head.

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based, and to request you kindly to circulate this explanation amongst the members of the various lodges. " The rate of interest earned by an investment consists always of three parts, one part representing the remuneration paid by the borrower for the use of capital, the second an insurance premium to cover the risk of depreciation or loss, and the third a compensation for other disadvantages or inconveniences attending the investment. The first of these is a nearly constaut quantity in a given country at a given time, and is the rate for the time being at which money could be borrowed on absolute security, and with perfect facilities for realization by the lender. In most English-speaking communities it is but slightly below the rate at which the Government can borrow. The excess of the actual interest over this minimum rate is therefore always on the average proportionate to the counterbalancing disadvantages attending the investment. Whore and in as far as these disadvantages consist in imperfect security, the portion of the interest which represents insurance against risk must in all cases be reserved to meet the future liabilities of the fund, as the contributions are calculated not only on the assumption that a certain rate of interest shall annually accrue, but also on the assumption that there is absolute security for the principal. No provision whatever is made in the tables for the possibility that losses may be sustained. Now, although the portion of the rate of interest which represents insurance against risk is in all cases in excess of the mathematical premium which would be required to neutralize losses on an average of transactions, and is in fact determined by what is called the moral, as contrasted with the mathematical, weight of the risk to the average lender; although therefore the investors at the high rates of interest will on an average certainly obtain a larger profit in the long run than the investors on Government security; yet it is with the moral rather than with the mathematical weight of the risk* that benefit clubs, and especially small ones, are concerned, and it therefore behoves them to reserve at least a large portion of the interest earned, even where it is at a rate greatly in excess of that assumed in the calculation of the tables. " It is obvious from these considerations that where a high rate of interest is obtained, the portion which may be regarded as pure profit requires great nicety for its determination, and cannot be ascertained by any hard-and-fast rule, such as would be established by appropriating to management expenses the whole excess over a fixed minimum rate. " To appropriate an excess of interest at the rate of, say, 6 per cent., arising from the rent of offices, would be a transaction standing on a very different footing, as regards safety, from an appropriation of the extra $ per cent, on Post Office Savings' Bank deposits. The point is one, therefore, which can only be satisfactorily dealt with at a valuation. "There is, however, in the present case another reason why the rate of interest assumed in a valuation or in the construction of tables should be somew 7hat lower than the rate which w7e may expect will be actually realized. This reason is contained in the fact that the tables do not include any provision for the possibility of adverse fluctuations in the society's experience of sickness or mortality —fluctuations which are likely to be very considerable in the case of small lodges, especially in regard to the amount of protracted sickness. Hence, if a society were to enter on a given period of, say, five years with exactly enough funds in hand to meet its liabilities according to the tables, and were throughout the five years to appropriate all interest beyond 4 per cent, to the Management Fund, it follows that, apart from the profits accruing from secessions, there would be an equal likelihood of a surplus or a deficiency at their close. Now, the existence of a surplus is not a matter to bo deprecated ; but a deficiency is a serious disaster. To permit the two results to be equally probable is quite an inadmissible course. Life insurance offices regard it as an axiom that there ought never to be a deficiency at a valuation. One counteracting element bas already been alluded to —namely, the profit arising from secession; but, as a further and more perfect safeguard, it is desirable that the interest actually earned should exceed the interest assumed, so that the excess may compensate for an unfavourable sickness experience, should such be the society's lot. It is not an infrequent thing for life insurance offices to realize a rate of interest exceeding by 2 per cent, or 3 per cent, the rate assumed in valuations and in the computation of the premiums. Thus the Australian Widows' Fund was recently valued at 4s_ per cent, at a time when tho annual interest was about 8| per cent, on the aggregate funds. " Such are the general principles which forbid the application to management expenses of interest earned by a benefit fund. But in the case (^ the Otago District of the Manchester Unity of Odd Fellow7s, there are circumstances which would make such an appropriation, were it to be continued, especially disastrous. The rate of contribution which has hitherto obtained is one which all actuaries are agreed in regarding as totally inadequate to provide the benefits promised. This rate, it is understood, will continue to be charged to all members initiated prior to the Ist July, 1879. Even as regards new members, the contributions to be charged are considerably lower than the minimum scale which it is considered prudent for societies to adopt. A rate of interest much higher than 4 per cent, would be needed to make these contributions adequate ; hence it would be a most pernicious thing to make 4 per cent, the maximum rate obtainable for the sick and funeral fund. Lastly, although no lodges of the district have as yet been valued, a comparison of the funds in hand with the duration of the lodges, the number of members, aud the nature of the benefits, will in many cases afford prima facie evidence against solvency." Since the presentation of the petition, the Registrar has had the great advantage of a conversation on this subject with Mr. J. M. Templeton, F.1.A., Actuary to the National Mutual Life Association of Australasia, and Certifying Actuary for Friendly Societies to the Government of Victoria. Mr. Templeton fully concurs with the Registrar in condemning the practice under consideration. III.—DEFERRED ANNUITIES. Since the publication of his last report, the Registrar has been communicated with by two districts of the affiliated orders on the subject of deferred annuities, namely, the Nelson District of the Man-

* That ia to say, tho possibility of a given loss is a disadvantage which far more than counterbalances the equal possibility of an equal amount of gain.

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Chester Unity of Odd Follows, and the New Zealand Central District of the Independent Order of Bechabites. The former has simply announced, through its secretary, the determination to introduce a superannuation benefit, to commence at age 60, and has requested advice respecting the formation of a fund for the guaranteeing of this benefit. My reply to the district was as follows : —■ "As regards tlie question of superannuation funds, I congratulate the district on the l'esolvo to establish such a fund, and I forward herewith a copy of the ' Forster Prize Essays,' belonging to the Actuary of this office, which will give you much information on the subject. I would ask you kindly to return it after perusal. I. will here confine myself to the following remarks : — "1. There is reasou to believe that the mortality experienced in this colony is lighter than that experienced in England. This will, p?'o tanto, increase the liability of the annuity fund, as a larger number of members will survive to claim the benefit, and they will claim it for a longer time. "2. If an annuity is established, sick-pay should cease from the time of its commencement. "3. It is very desirable that the superannuation risk should bo spread over the whole District, as the funeral liability already is. I would also strongly urge that the liability for payments in all cases of protracted sickness (say after the first six months of sickness) should be spread over the entire District, as is the case in several districts of the Ancient Order of Foresters in England. A few cases of chronic sickness, even where the contributions would have been sufficient for an average experience, will soon exhaust the funds of a small lodge. The liability for payments in acute sickness can be borne with less danger by a small society, as it is not necessary to have so large a number of members to insure a fair average. " 4. As stated on page 39 of the accompanying pamphlet, members may be startled at the magnitude of the contributions they will be required to pay ; ' but it is imperative that any annuity fund started must he so safe that failure to fulfil its obligations would be an absolute, or, at least, a -moral impossibility.' " 5. No rule for providing annuities can be registered unless the tables of contributions to meet them are certified by an actuary approved by the G-overnor. Section 10 (5) of Friendly Societies Act." In the case of the Independent Order of Eechabites, two tables of contributions for an annuity of £10, commencing at age 60 (the contributions being in the one case returnable in the event of earlier death, in the other ease non-returnable) were formally submitted to the Actuary for his certificate, under section 10 (5) of the Act. This certificate he was unable to give, as the proposed contributions were found to be inadequate. The scales had in fact been copied from scales certified in South Australia, only that 60 had been substituted for 65 as the age for the commencement of the annuity. The increase of liability produced by this alteration is greater than the non-professional mind might imagine: for a smaller number of premiums will be paid, they will have a shorter time to accumulate at compound interest, a larger number of members will survive to claim the benefit, and they will claim it for a longer time. There are thus four distinct causes conspiring to produce an increase of liability. The Actuary reported to the district officers on the proposed scales, and strongly advised that the superannuation should begin at 65 instead of at 60. This course, it is believed, will be adopted. In view of the fact that a movement is thus in progress towards the establishment of superannuation funds, as well as on other grounds, it is very greatly to be desired that an investigation should be made into the mortality experience of -New Zealand as exhibited in the records of the Registrar-General's office. In fact, an investigation should be undertaken parallel to that which the late Professor Pell conducted for the Colony of New South Wales.* Mr. James Meikle, F.1.A., the actuary to the Scottish Provident Institution, has determined the rates of mortality at the various ages in New Zealand, by comparing the deaths for the year 1873 with the numbers living according to the census of March, 1874. "The result," he says, "compares favourably with any other table. It is very much lighter than either the Hiif or the Carlisle. J . . . The results show an exceedingly light rate of mortality. When measured by the annual premium for a life assurance, I should imagine that the Now Zealand rate would require about 7% or 10 per cent, less premium than the Hn rate. Before, however, placing much confidence in the results, they would require to be verified at the next census." Under these circumstances the Actuary feels that he cannot certify scales of contributions for annuities unless they are based on a table showing a low mortality, especially where it is made optional with members whether they will insure for the superannuation benefits. Ponding the construction of a New Zealand life table, he thinks that the premiums should not be lower than net 4 per cent, premiums based on " Neison's Friendly Societies' Experience, 1836-40, City, Town, and Kural Districts combined." This table, as is well known, shows a much lower mortality than the Manchester Unity Experience. Moreover, there is a table for female lives, showing a still lower mortality. The comparative results are shown in the subjoined schedule: —

* " On the Rates of Mortality iv New South Wales, and on tlie construction of Mortality Tables from Census Returns ; with a note on the formation of Commutation Tables."—"Journal of the Institute of Actuaries," Vol. xxi., p. 257. f The table of mortality designated as the "Healthy Males" Table, deduced from the experience of twenty life assurance companies, and published by authority of the Council of the Institute of Actuaries. It is generally recognized as the best exponent of the mortality which obtains among assured lives. J A well-known table, widely adopted in actuarial calculations as a fairly good exponent of average mortality.

Expectation of Life in Years aud Decimals of a Yet up at various Ages according to— Age. English Life Table (No. 3). j I Government Annuitants' Experience. Neison's Experience. Manchester Unity Experience, 1S66-70. Males. Females. Male3. Females. Males. Females. Slates. 20 30 40 50 39-48 32-76 26-06 19-54 40-29 33-81 27-34 20-75 j I I 38-74 33-39 27-12 20-53 43-27 36-65 29-91 22-99 43-77 36-60 29'33 22-19 45'26 38-18 30-78 23'82 I | 41'35 33*93 26-75 19-87

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It may be interesting to show what are the annual premiums for males entering at ages 20, 30, and 40, to secure an annuity of £10 at ages 65 and 70 respectively, assuming Neison's mortality, and 4 per cent, interest. They are as follow: — Age at Entry. Annuity at 65. Annuity at 70. £ a. d. £ s. d. 20 ... 0 9 2 ... 0 4 11 80 ... 0 16 2 ... 0 8 7 40 ... 1 11 2 ... 0 16 0 The premiums are here supposed to be non-returnable in the event of previous death. The effect of the mortality experience is well shown by comparing the former of these columns with the following table of premiums for the same benefit according to the Manchester Unity data, assuming the same rate of interest, while the effect of the interest is seen by adding a column to show the premiums according to Manchester Unity data, assuming 3 per cent, interest: — Manchester Unity Data. Age at Entry. Four per Cent. Basis. Three per Cent. Basis. £ s. d. £ s. d. 20 ... 0 7 2 ... 0 10 5 30 ... 0 12 10 ... 0 17 3 40 ... 15 0 ... 1 11 5 From these tables it will be seen how very much depends on the mortality experience. "It is under such circumstances as these," Mr. Neison says, " where the improvement of money at interest magnifies results, that serious blunders in the adoption of an erroneous mortality table will be apt to prove hurtful to the interests of a society. . . . This is only one of the many evils connected with the present condition of friendly societies; and, although its visitation be more remote, the awful consequences of such a calamity, like every other evil of procrastination, will be irreparable." We see, hence, how needful it is to beware of assuming too high a mortality in constructing premiums for annuities.* It should never be forgotten that the adoption of the erroneous Northampton table, so fortunale in the interests of insurance, caused a loss of about three millions of pounds to the British Government in the transaction of its annuity business. IV.—THE RETURNS OF SICKNESS AND MORTALITY FOR THE QUINQUENNIUM 1873-77. When the last report was presented, the whole of the data contained in these returns had been transferred to cards, a specimen of which was shown on page 6of that report. Since then the data have been subjected to a careful examination, with the view partly of rectifying errors as far as possible, but chiefly of excluding from the experience table which it is proposed to construct all data of a demonstrably erroneous or even of a suspicious nature. This work, which was entrusted to Mr. Frankland, the Actuary, is nearly completed. The result has been the exclusion from the proposed experience of the returns furnished by a considerable number of lodges and courts. The number of lives which the residue of data will embrace may be stated approximately at from seven to eight thousand. This will doubtless be equivalent to between twenty and thirty thousand years of life- —an experience about equal in extent to that on which Mr. Ansell's Friendly Societies Table was based. As soon as the weeding process is completed, everything will be ready for the tabulation of results. It is proposed to exhibit the rate of sickness and mortality at each age of life, and, if time permits, the influence of duration of membership on both, so as to illustrate the effect of the selection which members exercise against the societies through discontinuances. The data are of course far too scanty to bring out a reliable law of deterioration of average health, but, if positive results are shown, it will go far to rebut the argument against the use of English data in the construction of premiums, derived from the low rate of sickness which obtains in New Zealand societies. Apart from the altogether vulgar error of those who rely on a low rate of sickness without taking into consideration the ages of the members, there is the subtler fallacy which leaves out of account the effect of recency of admission. From conversation with Mr. Templeton, F.1.A., on the subject of his Victorian experience on this head, Mr. Frankland anticipates that this influence of selection or recency of admission, taken in conjunction with the secession of the healthier members, will be found to be considerable. There is of course another feature which tends to bring out a fictitious appearance of salubrity in the experience of New Zealand societies, namely, the feature noticed in a foot-note to page 10 of the last report, the occasional forbearance of members in good circumstances to claim the allowances to which they are entitled under the rules. From replies to circulars issued by the Registrar, it appears that tho saving thus effected has been in many lodges considerable; and it can hardly be doubted, when the economic progress of the colony is taken into account, that this cause of apparently low sickness rates will not operate as strongly in the future as it has done in the past. It would be difficult, however, if not impossible, to eliminate the influence of this factor from the data. As a first instalment, the Registrar presents the following results deduced from the quinquennial returns of the four oldest lodges which will be included in the experience table —namely, the Nelson, Travellers' Rest, Antipodean, and Rose of the Valley Lodges. These were all established prior to 1850. All are branches of the Manchester Unity of Odd Fellows. The results are given in the subjoined schedule: —

* The same caution applies in a lower degree to the ease of premiums for " whole life sickness."

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* Death took place in November, 1877 ; therefore number of years of life under observation was nearer 25 than 24. t Death took place in Novomher, 1877 ; therefore number of years of life was nearer 40 than 39. j Death took place three months after initiation, at the age of 20. Cause not stated. § Death from phthisis within six months from initiation, at the age of 19. || " Manchester Unity Experience, 1866-70 ; Rural, Town, and City Districts combined ;" tabulated by Mr. Rateliffe. IT The highest ages tabulated by Mr. Rateliffe do not show so high a sickness rate. According to Mr. Neison's data, this rate would be reached at about age 90. ** These are below the lowest rates tabulated by Mr. Rateliffe.

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Date of Birth. No. of Lives under Observation. No. of Years of Life under Observation. No. of Deaths. No. of Weeks' Sickness Experienced. Mortality per cent, per annum. Average No. of Weeks' Sickness per annum. Age at which an equal amount of Sickness would be experienced according to English data||. Nelson. Travellers' Rest. Antipodean.! Rose of the Valley. Total. Nelson. Travellers' Rest. Antipodean. Roso of the Valley. Total. Nelson. Travellers' Rest. Antipodean. Rose of the Valley. Total. Travellers' Nelson. Kest. Antipodean. Rose of tho Valley. Total. I 1 I I _— ' ! Wks. Dys. Wks. Dys. Wks. Dys. Wks. Dys. Wks. Dys. 1806-1810... j 1 i 3 4 5 13 18 1 1 j 260 6 340 2 601 1 5-56 33-397 90T 1811-1815 ... 4 1 2 7 18 5 10 ... 33 1 ... 1 187 2 7 0 6 4 I 200 6 i 3-66 4-256 61 1816-1820 ... : 4 4 3 11 35 5 9 49 2 2 18 3 5 0 124 5 148 1 1821-1825... 9 | 3 7 6 25 41 15 j 31 27 114 1 1 305 2 ! 26 0 23 1 11 0 365 3 I -60 46 1826-1830... 24 5 I 8 8 45 120 25 40 37 222 i* 1 67 2 ; 41 6 24 3 17 0 150 4 1-536 | 1831-1835 ... 29 7 15 17 68 137 33 67 77 314 2 1 1 4 181 3 25 2 337 0 53 1 596 6 I 1-33 1-425 44 1836-1840 ... 32 8 32 34 106 129 40 129 141 439 3 it 1 1 6 158 4 82 4 39 5 195 1 476 0 1841-1845 ... 44 11 28 52 135 153 40 101 195 489 j 27 1 i 23 6 67 2 81 2 199 4 I -39 •508 ## 1846-1850... 40 23 j 38 51 152 133 85 lit 198 527 ... i 2 I 1 4 142 1 j 60 6 41 6 71 6 316 5 1851-1855 ... 50 15 49 47 161 149 39 111 153 452 ! 2 1 3 78 3 ( 31 6 . 153 5 95 1 359 1 I -88 •702 20 1856-1880 ... 27 20 j 16 17 80 53 28 18 18 117 ■Mm 2 19 2 I 20 5 0 3 40 3 Unspecified 19 19 42 42 | 10 4 i ... 10 4 •00 •252 *# I i I I i i I I I 41 All dates ... 286 94 | 201 232 813 1,015 315 610 846 2,816 9 4 8 4 25 1,456 5 | 325 0 1,159 1 524 4 3,465 3 ' ■89 1-231 I I

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It will be seen that the lives are not here classified in the way best calculated to bring out and show the effect of age on sickness and mortality. A rougher method of grouping has been resorted to for the sake of expedition. The results bring out clearly enough the increase in the liability to sickness which accompanies increasing age after the age of 30 has been passed, and they even show in a general way the increase in the rate of mortality. The more accurate method of grouping will of course be adopted in tho construction of the experience table above referred to. V.—VALUATIONS. Next to the marked improvement in rates of contribution, already referred to on page 3, and to be further treated of below, the most important events of the year in their bearing on friendly societies are the valuations made by Mr. George Leslie, one of the public valuers. The following societies have been valued by him. All are lodges of the Manchester Unity of Odd Fellows : — Situated at Loyal Charles Bruce Lodge, No. 5373 ... ... ... Grahamstown. „ Albert „ No. 5855 ... ... ... Kumara. „ Goldsborough ~ No. 5851 ... ... ... Goldsborough. „ Greymouth ~ No. 5560 ... ... ... Greymouth. „ Hokitika „ No. 5429 ... ... ... Hokitika. „ Ross „ No. 5477 ... ... ... Ross. ~ Waimea ~ No. 5515 ... ... ... Stafford. The first of these is a branch of the Auckland District, while the remainder constitute the Hokitika District, and are therefore interdependent in respect of their funeral liabilities. The result of the valuations was to show a surplus in the case of the first-named lodge, and a deficiency in the case of each of the others. The method of valuation by which the deficiencies were brought out is, in the opinion of the Actuary attached to this office, in no respect too severe; while the surplus disclosed in the case of the Loyal Charles Bruce Lodge is, in his opinion, a real one, though, for the reasons pointed out by Mr. Leslie, not properly divisible. An abstract of the valuations is presented in Schedule V. to this report. The rate of interest used was in each case 4 per cent., and the tables of expected sickness and mortality w 7ere those known as the " Manchester Unity Experience, 1866-70 ; Eural, Town, and City Districts combined." It will be noticed that in three out of the seven societies valued, the rate of interest actually realized during the preceding quinquennium was, on an average, less than 4 per cent, per annum; but still, as in all these cases, except perhaps that of the Loyal Goldsborough Lodge, a rate considerably in excess of 4 per cent, could, with prudent management, be looked for in the future, a 4-per-cent. valuation would give a truer view of the actual liability than a valuation based on a lower rate of interest. In the case of the Loyal Greymouth Lodge alone does the rate of interest rise greatly above 4 per cent. The assets of that lodge at the date of valuation may be classified as follows: — £ s. d. Borough Council debentures ... 668 10 0 bearing interest at the rate of 7 per cent. Fixed deposits in banks ...1,043 18 1 „ ~ ~ ~ 6-j ~ Deposits in Post Office Savings Bank 204 11 8 ~ ~ ~ „ 4| ~ Assets not bearing interest ... 156 8 9 Total ... ...2,073 8 6 At first sight, therefore, it might be supposed that this lodge ought to have been valued at a higher rate of interest than 4 per cent. ; but, seeing that no less than 73 of its members, out of a total of 114, are below the age of forty, it is evident that a very large proportion.of its heaviest liabilities (the payments to members permanently incapacitated for work) must be deferred a great number of years, and that therefore a rate of interest must be chosen which may be counted on confidently, not only during the immediate future, but for a period of at least half a century. Moreover, in a society consisting of so small a number of members as 114, the probability of large fluctuations in the experience of sickness and mortality renders it imperative that there shpuld be, in some shape or other, a heavy loading on the mathematical or pure premiums computed on ffhe assumption of an average experience. This loading or margin is partly provided by the profit arising from the withdrawal of members, as these latter are not, as in life offices, allowed any compensation for the loss which they sustain ; but a more certain and satisfactory margin is provided by the realization of a higher rate of interest than that assumed in the computation of the premiums and in the valuation of its assets and liabilities. As regards the tables of sickness and mortality, it is believed by tho Actuary attached to this office that they over-estimate both the rate of sickness and the rate of mortality likely to be experienced by the majority of New Zealand friendly societies at each age of life, except perhaps at the very advanced ages, at which such weight as the celebrated data of Mr. F. G. P. Neison can be considered to possess on this subject must be held rather to indicate that, unless a rigorous interpretation be placed on the rules relating to relief in chronic infirmity, the payments to very old members are likely to be heavier than the scanty though mutually corroborative data of the Manchester Unity have shown. The possibility that the claims for payment in old age may be at a higher rate than that indicated by the Manchester Unity Experience, when combined with the probability (founded on the investigation's of Mr. Meikle, F.1.A., already referred to on page 6 of this report) that the mortality experienced by New Zealand societies will be lower than that experienced by the Manehesty Unity iv England, and that therefore a larger proportion of members will survive to claim what is virtually a superannuation, goes far to show that it would be imprudent, in tlie majority of cases, to estimate the sickness liabilities of a society at a lower amount than that given by the Manchester Unity Experience. Even in regard to the funeral liabilities the presumption in favour of a low mortality is not sufficiently strong to justify a departure in the direction of leniency from the Odd Fellows' data. 2—H. 19.

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It may be interesting to give the average amount of sickness per member experienced by each of these seven lodges during the two years immediately preceding the valuation.

In view of the fact that in the case of the Charles Bruce Lodge a surplus has been declared, although not divided, it becomes important to inquire into the occupations of the members, as occupation has been found to exercise a very great influence indeed on both the sickness and the mortality experienced by societies. Out of 129 members on the books of this lodge during the five years ended 31st December, 1877, there were 89 miners, 6 storekeepers, 5 publicans, 3 shoemakers, 2 carpenters, 2 carters, 2 clerks, 2 contractors, 2 engineers, 2 sawyers, 1 accountant, 1 blacksmith, 1 boatman, 1 broker, 1 coach-builder, 1 druggist, 1 hairdresser, 1 pattern-maker, 1 photographer, 1 plumber, 1 saddler, 1 sailor, 1 surveyor, 1 watchmaker. The large proportion of miners perhaps throws light on the small average duration of sickness experienced by the members of this lodge ; for among members following this occupation it is found that there is frequent experience of slight accidents incapacitating for work for a few days only. This is strikingly illustrated by the experience of another society, situated at the Thames, also composed chiefly of miners—namely, the Star of Hauraki Tent of the Independent Order of Eechabites. Other points of great importance are the recency of admission, or otherwise, of the members, and the proportion of persons on the books who are either suffering from sickness likely to be permanent or who have in the past experienced very heavy sickness, and whose expectation of life is therefore lower than the normal expectation for their several ages, while the amount of sickness per annum to be expected by them during the remainder of life is higher than the normal amount. These considerations have, in the opinion of Mr. Frankland, not yet met with the degree of attention they merit at the hands of actuaries. The influence of past sickness on the expectation of future sickness and mortality is, in his opinion, a field for research as vast and important as the influence of medical selection on mortality has proved to be. It is manifest that a life office, if it could at the time of a valuation ascertain the state of health of its policy-holders, would be able to form a more accurate estimate of its liabilities than it can do when it knows only their ages and the duration of their policies. This advantage, necessarily denied to a life office, is open to a friendly society, because it has official cognizance of the sickness experienced by its members in the past; and hence Mr. Frankland anticipates that in the future it will be possible to do much towards individualizing the liabilities of these societies, and that even now a beginning in this direction should be made. For example, if an undue proportion of members are found to be suffering from sickness likely to be permanent, he holds it to be imperative, especially in the case of a small society, to make an extra reserve in respect of such members— i.e., a reserve beyond that which the mere ages of the members would indicate. Mr. Leslie attributes the surplus in the case of the Loyal Charles Bruce Lodge " mainly to the fact that the sickness experienced (or, rather, paid for) has been very much less than was to be expected."* He also says that "as the number of secessions seems to have been considerable, a portion of the surplus maybe regarded as having arisen from this source." He does not recommend its appropriation in any way. In his lucid and able report he deals with this question in the following terms : "That the valuation shows a surplus is certainly matter for congratulation; but there are several circumstances which require to be brought under your notice before I make any proposal to deal with it. The principal are the following :1. As the number of members in the lodge is small, and as nearly all are below the age when heavy sufkness first appears, there is every probability that the experience will be subject to great fluctuations. 2. Seeing that sick benefits are assured for the whole of life, it is necessary to mention that even yet the data as to sickness at all ages over seventy are considered defective, and that had full sick-pay been reckoned in the valuation as payable throughout life, instead of a surplus a deficiency of £94 would have been shown. 3. While the truth of the principle of graduated rates of contributions and increasing rates of entrance-fees, according to age, has long been recognized and acted upon in the Auckland District, yet an examination of your present rates indicates that provision has not been made to meet the actual amount of difference in liability, and that the rates throughout, but especially at the older ages, are too low. 4. I find from your new district rules, registered in February of the present year, that for the future it has been decided to only charge an annual contribution of 6s. per member to the District Funeral Fund, also that the amount to be paid on the death of a member has been increased from £20 to £25. This increase in the liability will ultimately have to be borne by the lodges in the district should the Funeral Fund fall short; and, as this alteration has been made without (so far as lam aware) any actuarial investigation being made into the sufficiency or otherwise of the present assets, these facts cannot with safety be ignored, the value of the increase being £136. Keeping all these circumstances in view, and having regard to the sources from whence the present surplus has arisen, I am strongly of opinion that the whole of the surplus shown by the valuation should be reserved to meet the fluctuations necessarily

* He slates that the aggregate sickness paid for during the quinquennium was less than one-half the expectation, according to the tables. This is, of course, a circumstance of much better augury than a corresponding result in the case of a life insurance office, for there is no "suspended sickness" (barring certain zymotic diseases) to parallel "suspended mortality."

Per Mi imber. Per Sick _ ember. Name of Lodge. 1877. 1878. 1877. 1878. Iharlea Bruce Lodge dbert „ loldsborough „ rreymouth ,, lokitika „ loss „ Waimea „ Weeks. •40 •39 1-41 1-22 1-11 1-28 ■46 Weeks. •58 •21 3-02 1-38 1-20 1-46 1-56 Weeks. 361 2-50 4-05 11-36 7-81 5-90 1-87 Weeks. 4-43 6-14 7-45 10-50 7-97 536 3-65

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incident to small numbers, and the prospective increase of contributions to the District Funeral Fund." Mr. Leslie also recommends an increase in the rates of contribution, and a more profitable investment of the funds. The deficiency shown by the lodges of the Hokitika District is attributed by the valuer to the insufficiency of the contributions. These were 6d. per week for entrants at all ages. It is satisfactory to be able to report that this uniform contribution has since been superseded by a graduated scale, which, although not sufficiently high to meet the requirements of safety, is still a great improvement. In the case of two of the lodges (the Albert and the Waimea) tho valuer calls attention to the fact that there has been a misappropriation of benefit funds to management expenses, and describes this as an auxiliary source of the deficiency. In the case of the Goldsborough and Waimea Lodges he mentions that the membership (33 and 45 respectively) is altogether too small to afford a fair basis for the operation of average, and that iv the former lodge excessive rates of sickness have been experienced. It may be not unworthy of mention that the majority of the members of the former lodge, which has been by far the most unfortunate in the whole district, appear to be of Italian or Sclavonic birth. In the case of the Albert Lodgo, certain losses by fire, amounting to £90 Os. 4d., are mentioned as an additional source of the deficiency; and it is pointed out that the funds have not been advantageously invested. Mr. Leslie's recommendations to five of the lodges are identical. They are as follow : " Ist. That the present members should for the future pay the rate of contribution which they ought to have paid . . . during the whole term of their membership. 2nd. That the members see to it that the funds of the lodge are regularly invested at the highest possible rate of interest consistent with perfect safety. 3rd. That the amount standing to the credit of the Management Fund be placed to the credit of the Sick and Funeral Fund. 4th. That the amount owing by members to the lodge be kept doww to the lowest possible point, that the strictest economy be practised in the management, and that caution should be exercised in the admission of members." He also recommends that new members should contribute according to the scale calculated by himself and Mr. Peter Black, and issued officially on the Actuary's recommendation. "If these recommendations are carried out," Mr. Leslie says, "there is yet hope that all the members will receive the full amount of benefits promised on initiation." With the sixth lodge, the Loyal Goldsborough, the deficiency of which was more than twenty times its accumulated fund, Mr. Leslie deals specially. His remarks should be carefully pondered by all societies and branches having a small membership. " The experience of this lodge," he says, "illustrates very forcibly the necessity of the number of members in a lodge being sufficiently large to afford a fair basis for the operation of average before there can be any safety. " In the lottery of chances with small numbers some lodges in the district have been fortunate ; but this lodge has been very unfortunate, and the result is the large deficiency shown by this valuation. The sickness experienced has been very much in excess of the expectation, and the mortality has also , beeii above the average. " If this lodge is to carry on, the scale of contributions should be thoroughly revised, and every effort made to increase the membership. If, however, there is but little hope of a large increase in the number of members very soon, it would be better for the lodge to amalgamate with some lodge in the vicinity, or else the present members should fall back upon the district and become district members. " Whichever course be adopted, the scale of contributions paid by the present members should be revised and adjusted." It was mentioned in au earlier part of this report (see page 4 supra) that the members of the Loyal Goldsborough Lodge have since been transferred by clearauce to the Loyal Waimea Lodge, and that the former has consequently become extinct. Its fate should be a lesson to those members of friendly societies who still maintain the adequacy of the uniform contribution of 6d. per week. The Registrar believes that w 7hile this report is going to press, the public valuers are engaged in the valuation of the lodges of the Otago District of the Manchester Unity of Odd Fellows. The result will be of great interest, as the district has, until quite recently, been working on a uniform contribution of 6d. per week for the same scale of benefits as that guaranteed by the Hokitika District. The Registrar is informed that trial valuations have indicated that a large proportion of the lodges will show a deficiency. In the case of some, indeed, where it is known that there has not been a large recent influx of members, this conclusion is forced on the mind by a simple comparison of the funds in hand per member with the duration of the lodge's existence and the nature of the benefits guaranteed. It has been the duty of the Registrar during the past year to decline to recommend the Government to approve the appointment of a gentleman as valuer to one of the Otago societies, as it appeared, from the nature of the qualifications which were represented as fitting him to perform the duties, that he had entirely misapprehended the true nature of a valuer's functions, and had confused them with those of an accountant. As an illustration of the kind of knowledge which gentlemen must possess in order to be qualified for the position of valuers, it may be well to quote the queries which were proposed to this gentleman as a test of fitness. They were the following:—■ " 1. What particulars would you think it necessary, generally, to ask for from a lodge or court as premisses of your valuation ? "2. By what principles would you be guided in the selection of a table or tables of sickness and mortality, and of a rate or rates of interest ? " 3. What view do you take of tho mortality to be expected by New Zealand societies as compared with- similar societies in England ? How would this view affect your estimate of the sickness liabilities? "4. What do you consider to be the present state of our knowledge of the liability to sickness after the age of seventy ? " 5. Whether do you regard occupation or locality as having the more important bearing on the liabilities of a society ? State in what way you conceive that the influence of each should be allowed for,

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"6. Besides acute sickness, involving temporary incapacity for work, members contract for allowances in chronic sickness. What view do you take of this latter risk, considered in its bearing on the funds of a society P 7. On what principles would you deal with a surplus disclosed by the valuation ?" The Eegistrar has to acknowledge with thanks the receipt of a donation from Mr. William Nosworthy, the secretary of Court Blenheim of the Ancient Order of Foresters, of a set of exceedingly valuable tables, computed by himself on the basis of the Manchester Unity Experience of 1866-70 and of a rate of interest of 4j per cent. It may be considered desirable to publish them for general information in a future report. VI —ON THE MEASURE OF IMPROVEMENT IN THE PREMIUMS CHARGED BY FRIENDLY SOCIETIES SINCE THE ORGANIZATION OF THE REGISTRY OFFICE. Considering the magnitude of the operations of the friendly societies in this colony, receiving contributions from over 20,000 members, it is a matter of the greatest import to the State that the contributions by members of these societies should be adequate to meet tho promised benefits; as a failure to do so would involve much misery, especially among the aged members who are depending on their sick-pay in case of infirmity and inability to work, and would impose upon the State or upon society the additional duty of supporting these aged people. It will therefore be interesting to note the measure of improvement that has taken place in the premiums charged by these societies since the organization of this office. When " The Friendly Societies Act, 1877," was passed there were, so far as known, only three or four branches of societies in the colony (the Pers.everance Division of the Sons and Daughters of Temperance, Christchurch, and two or three lodges of the Manchester Unity, in the Provincial District of Canterbury) which charged premiums adequate to the benefits guaranteed. There were then about 250 branches of societies, with an aggregate membership of about 20,000 persons. Since that time the number of branches in existence has increased to 314, although only about one-half of them are registered, besides, possibly, others the existence of which is not known in this office. Of these, the following have adopted rates which are equal to or slightly in excess of the rates recommended by the Actuary of the department: — Manchester Unity of Odd Fellows. Hawdie's Bay District ... ... ... ... ... 8 lodges. Wellington District* ... ... ... ... ... 12 „ North Westland District ... ... ... ... ... 3 ~ Volunteer Lodge, L0.0.F., M.U, Sydenham ... ... ... 1 „ Independent Order of Odd Fellows (American) ... ... a, ... 21 „ Ancient Order of Foresters. Auckland District ... ... ... ... ... ... 7 courts. Total ... ... ... ... ... ... 52 branches. Besides this, there has been a considerable improvement in the rates of contribution of other branches, even although the standard recommended by the Actuary may not have been attained. This improvement has usually taken the form of the substitution of a graduated scale of contributions for a contribution uniform for entrants at all ages. In other cases the improvement has arisen by ceasing to charge the Sick and Funeral Fund with medical expenses as a liability. A list of those branches known to have effected either of these improvements is appended. Manchester Unity of Odd Fellows. Hokitika District ... ... ... ... ... ... 6 lodges. Lyttelton District ... ... ... ... ... ... 9 „ Otago District ... ... ' ... ... ... ... 24 „ Invercargill District ... ... ... ... ... ... 4 „ Ancient Order of Foresters. Court Queen of the Isles ... ... ... ... ... 1 court. Otago District ... ... ... ... ... ... 20 courts. Ancient Order of Shepherds. Sanctuary Sir George Grey ... ... ... ... ... 1 sanctuary. Independent Order of Rechabites. New Zealand Central Districtf ... ... ... ... 31 tents. Sons and Daughters of Temperance. Antidote Division ... ... ... ... ... ... 1 division. Total ... ... ... ... ... ... 97 branches.

* Optional with old lodges, but compulsory with newly-established lodges. t In the case of this district the change lias not actually been effected, but the motion for adopting the new scale has been passed at the district meeting. This district would probably have adopted the Actuary's scale pure and Bimplo had it not been for the competition of the Sons of Temperance. At the district meeting of 1879, at which tho Actuary in person advocated his scale, its adoption was voted rtem. con.; but, through a technical flaw, the question had to be postponed twelve months, and in the interim the competition of the Sons of Temperance led to the decision in favour of a scale lower than the Actuary's, though in some respects more satisfactory than the one previously in operation.

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In most cases the lowest payment in the graduated scale is equal to the old uniform payment. In these cases, therefore, the improvement is very considerable. In Schedule VI. to this report are shown, so far as could be ascertained from a perusal of the rules, which are in some cases not very clear, the most recent scales of contributions and benefits adopted by the various societies and branches, registered and unregistered, in existence in the colony. Only the most salient features have been given. The initiation fees and other features of secondary, though very material, importance have been omitted for the sake of brevity. VII.—TRADE UNIONS. No application has been made during the twelve months under review for the registration of any trade union, nor have there been any duties performed under the provisions of " The Trade Union Act, 1878," to report upon. Wm. E. E. Brown, Eegistrar of Friendly Societies.

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SCHEDULES.

SCHEDULE I. Preliminary Abstract of Annual Returns for 1879.

* On 31st December, 1879.

14

Nc Deal 1. of .hs— Name of Society and Branch. Where Situated. S 7. o d I < o 25 J O J_ d I. XT B O -a 'irlr.'r- _■ ._. OS? o Sick Pay. Amount of Sick and Funeral Fund.* Interest Credited to Sick and Funeral Fund, Manchester Unity Independent Order op Odd Fellows. Auckland District —■ Alexandra Lodge Charles Bruce ,, Good Intent „ Parnell „ Waikato ,, Alexandra ... Thames Auckland Parnell Thames 4 75 247 i°3 179 4 43 3° 5 3 8 ■■7 2 34 1 5 2 £ s. d. 1 5 8 61 3 4 192 18 8 37 3 4 192 16 8 £ a. d. 48 13 3 1,258 4 1 1,650 18 2 928 19 1 1.984 7 5 £ s. d. 6i"_6 6 89 2 10 25 16 2 94 'I' 2 Total of District ... 608 82 64 6 i I 4 485 7 8 5.871 2 o 270 17 5 Nero Plymouth District —■ Egmont Lodge New Plymouth 146 9 8 1 I j ... M3 5 1 994 2 2-i 77 o o Wanganui District — Wanganui Lodge 1 I Wanganui ... 70 11 ! 5 2 2 20 2 6 773 12 aj Wellington District — Antipodean Lodge Britannia „ Wellington ... 2'5 284 24 55 3" 155 13 4 411 8 4 567 1 8 2,462 1 1 2,421 2 o 60 5 o 81 16 6 ,, ... 2 2 Total of Distriot ... 499 79 31 2 2 4.883 3 1 142 1 6 Marlborough District— Marlborough Lodge Blenheim 132 14 10 125 17 7 2,094 15 2 144 13 4 Nelson Distriot — Howard Lodge Nelson ,, Travellers' Best „ Nelson 185 226 77 21 14 4 24 4 1 1 233 14 2 353 6 8 78 o 10 665 1 8 3.234 17 11 2,591 12 1 701 7 4 6,527 l1 4 168 4 o 141 12 o 36 4 1 346 o 1 ,, ... Richmond ,., Total of District ... 488 39 28 2 North Westland District — Charleston Lodge Westport ,, Charleston ... Westport 70 68 "6 13 15 28 1 2 42 o 8 37 ° 0 1,362 o 4 1,050 6 1 81 17 o 58 7 9 Total of District ... '38 6 1 2 79 o 8 2,412 6 5 140 4 9 Hokitika District — Albert Lodge Goldsborough „ Greymouth ,, Hokitika ,, Boss „ Waimea „ Kumara Goldsborough Greymouth ... Hokitika Ross Stafford 83 23 102 163 53 45 25 4 12 15 9 16 12 13 4 1 1 3 1 1 27 7 o 24 4 8 120 n 8 '74 5 o 91 7 2 38 3 4 404 19 7 39 '6 2 1,970 o o 2,738 12 10 1,466 5 8 1,121 5 9 20 2 8 114 10 6 147 9 o 70 o o 60 o o 2 1 4 Total of District ... 469, 7 46 69 6 3 475 l8 IO 7,741 o o 412 2 2 North Canterbury District — ■ Benevolent Lodge Kaiapoi „ Nil Desperandum ,, Perseverance „ Rangiora „ Christchurch Kaiapoi Oxford Woolston Rangiora 84 7' 5° 107 131 10 4 3 18 18 19 15 5 9 n 2 1 59 1° 4 90 14 2 72 18 4 74 6 8 62 13 4 360 2 10 555 '3 3 1,385 8 8 603 3 3 721 7 54 1,635 o 8 4.9°° '3 3i 86 5 6 no 9 o 45 7 7 1800 62 11 o 1 Total of District ... 443 53 59 3 1 322 13 1 Lyttelton District — Arowhenua Lodge City of Norwich „ Good Intent „ Temuka Lyttleton Akaroa 14 183 90 1 33 21 21 6 200 148 10 o 20 6 5 54 is 7 2,439 7 2 1,402 12 1 167 "8 6 25 9 6 14 Total of District ,., 287 55 35 6 170 16 5 3,896 14 10 192 18 o Otago District — Albion Lodge ... Alexandra ,, Arrow „ Band of Friendship „ Blue Spur ,, Cromwell ,, Dalton ,, Dunedin ,, Hand and Heart „ Lake Wakatipu „ Dunedin Port Molyneux Arrowtown ... Kakanui Blue Spur ... Cromwell Balclutha Dunedin 111 27 13 13 69 56 5° 194 298 40 871 12 2 12 8 8 18 2 17 1 3 7 6 '7 18 1 1 88 8 4 20 10 o 700 6317 o 13 15 ° I 14 2 201 I 10 194 19 8 37 7 8 628 13 8 844 14 9 346 3 7i 267 13 11 281 10 o| 483 4 5 533 3 9 620 15 ; 3,316 12 8 6,466 12 8 248 10 7 55 7 4 24 o o 1200 40 II o 24 10 o '5 *_ ° 251 17 7 __ -76 ia 6 34 3 10 Queenstown... 3° 32 10 3 1 2 9 Carried forward ,., 98 I i 6 114 2 13,409 2 o 934 15 3

15

ii.—i§.

SCHEDULE I.—continued. Preliminary Abstract of Annual Returns — continued.

* Ob 31st December, 1879.

Name of Society and Branch. Where Situated. j * V _Q S V "o 6 z v a <: d Y. u o ,=3 O No Deal a o 1. of ths— I-a .2 'fl fcfl u U s> o Sick Pay. Amount of Sick and Funeral Fund.* Interest Credited to Sick and Funeral Fund. Brought forward ... M.U. INDEPENDENT OEDEB OP Odd Fellows— continued. Otago District —continued. Mosgiel Lodge ... Mount Wendon ,, Naseby „ Oamaru ,, Outram „ Palmerston ,, Prince Alfred ,, Prince of Wales „ Roxburgh ,, Tapanui „ Tuapeka Pioneer ,, Waipori ,, Waitahuna ,, 871 114 98 £ s. d. 628 13 8 £ s. d. 13,409 2 o £ s. d. 934 15 3 Mosgiel Waikaia Naseby Oamaru Outram Palmerston ... Hawkesbury... Port Chalmers Roxburgh ... Tapanui Lawrence Waipori Waitahuna ... 23 69 90 71 88 !9 5° 64 53 49 80 34 65 1,626 23 4 6 11 11 5 10 '"6 8 3 14 8 28 1 3 8 1 1 1 1 15 '3 4 1926 41 6 o 52 16 8 13 '4 4 54 17 o 66 18 8 17 o o 106 16 o 31 4 8 49 "3 4 1,097 J6 2 740 1 6 1,603 17 8 1,096 o 10 408 11 5 228 12 1 774 10 5 956 5 2 43i 13 9 311 6 2 764 11 9 465 '3 9 895 1 7i 30 4 6 125 1 6 65 4 ui 6 13 6 740 11 4 8 1 1 2 77 2 7 38 o o 12 13 o 59 7 6 23 13 10 57 IO '° 10 3 1 Total of District ... 217 182 H 3 22,085 8 __■ J.437 10 li Invercargill District — Sons of Perseverance Lodge... St. George „ Riverton Invercargill ... 39 189 228 1 _5 8 1 14 3 o 85 6 7 577 7 8 1,704 15 7 I 2,282 3 3 35 6 o 75 o 7 9 Total of District ... 34 645 17 536 1 99 9 7 no 6 7 Total of Order ... 5»'34 44 17 4,290 o 8 64,462 17 I of! 3.596 7 6 Independent Oedee oe Odd Fellows. Alfred Lodge ... . Avon ,, Green Island „ Leith ,, Pioneer ,, Bavensbourne „ Star of Canterbury „ Unity „ Oamaru Christchurch Green Island Dunedin Dunedin Bavensbourne Timaru South Dunedin 43 76 12 69 9' 24 35 -36 12 3° 1 9 3° "8 22 5 " 5 35 ° o 900 /8 13 4 197 17 8 79 11 o 57 9 2 852 13 6 573 17 1 28 o 4 398 5 IO 7 16 15 8 8 10 2 1 48 7 4 62 12 4 34 o o 20 7 1 Total of Order 386 97 106 3 1 239 4 5 2,187 J4 7 34 o ° Ancient Oedee op Foeestebs. Auckland District — Court Pride of Parnell Thames 192 35 107 16 8 1,996 2 3 99 " 1 Hawke's Bay District — Court Captain Cook ,, Bobin Hood „ Buahine „ Sir Charles Napier „ Sir Henry Havelock ... Napier Port Ahuriri... Waipukurau Napier Havelock 81 21 17 103 62 II 9 1 23 11 10 2100 213 9 4 3' 5 5 18 18 4 539 4 10 181 10 1 o 10 o 17 19 7 "38 6 1 41 6 6 23 0 o 90 8 4 °39 30 o o 5 10 o Total of District ... 284 54 54 1 984 8 o 36 3 9 Wellington District — Court Blenheim ,, Clarendon ,, Little John „ Lord Clyde ,, Loyal Enterprise ,, Loyal Feilding „ Manawatu ,, Bobin Hood ,, Roderick Dhu „ Sir George Bowen „ Sir George Grey „ Wairarapa „ William Gladstone Blenheim Picton Marton Wairoa, H.B. Masterton ... Feilding Palmerston N. Wellington ... Wanganui Wellington ... 85 57 78 3° 87 42 72 220 48 221 230 104 55 6 13 19 4 »5 '4 ii 27 11 25 32 10 7 8 3 11 2 16 16 8 34 1 I 31 6 8 11 15 o 26 12 10 11 00 3° 3 IO 28 13 4 214 1 8 1 3 4 76 8 3 191 15 o 7100 65 '7 8 964 4 9 223 19 3 653 2 2 122 o 10J 443 ' 2*1 159 1 6 191 4 10 1,332 9 5 121 13 9 938 19 10 4,520 11 6 643 13 9 138 19 9 89 2 9 8 5 o 56 10 8 5 10 o 4 18 2 460 1 1 2 53 13 2 Greytown Gisborne 3 28 1 2 1 I I 63 o 8 151 6 6 1 10 o 13 Total of District ... 1.329 194 142 7 5 759 '7 7 > Q.453 2 7 438 2 11 Nelson District — Court Concord „ Pride of the Forest ... ,, Sherwood Forest ,.. „ Unity „ Waireka Greymouth ... Wakapuaka ... Stoke Havelock New Plymouth 86 36 27 79 101 5 3 1 i5 6 3 o 53 19 8 10 16 8 37 o 8 71 00 3°4 2 3 367 14 4 142 11 o 252 O IO 670 5 7 21 10 o 5 3 6 10 8 4 25 « 1 2 10 "7 20 1 3 26 Iota! of Distriot ,,, 329 34 1 1 |6 1 62

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SCHEDULE I.— continued. Preliminary Abstract of Annual Returns— continued.

Average No. Average Amount of Members per of Sick and Funeral Lodge.* Fund per Member.* £ s. d. Manchester Unity of Odd Fellows ... ... 9S'°7 ,3 " l Independent Order of Odd Fellows ... ... 48' 2S 51 3 4 Ancient Order of Foresters ... ... ... ioo'i2 7 12 1 Hibernian Catholic Benefit Society ... ... 6i'so 511 Average for all the Societies ... 8872 £1023

* On 31st December, 1879.

16

No, Deal . of ths— Name of Society and Branch. Where Situated. in a .a B o o Z 1 -a < d is O "I O E o T3 V V , .88 S O Sick Pay. Amount of Sick and Funeral Fund.* Interest Credited to Sick and Funeral Fund, Ancient Oedee of Foeestees — continued. United Westland District — Court Waimea £ s. d. £ s. d. £ s. d. 1234 151 7 0-2 6 12 o Stafford '9 2 2 Canterbury United District — Court Star of Canterbury ... Cliristchurch 429 52 3° 1 184 18 4 2,411 13 11 147 17 o Otago District — Court Enterprise ,, Havelock „ Pride of Dunedin ,, Pride of Oamaru „ Pride of the Leith „ Royal Oak of Kawarau Dunedin Waitahuna ... Dunedin Oamaru Dunedin Bannockburn '45 39 218 36 123 45 606 21 ; ! '19 4 26 2 n i .: 10 8 8 I 3 1 2 67 3 4 41 9 8 217 8 4 1.033 5 6i: 94 '9 9i 2,624 " 2 j 67 10 3* 37' '7 4a! 138 12 9i| 4,330 16 nil 93 10 ° 726 j 237 7 3 1 1 82 i 8 21 17 o 36 5 4 710 1. J_, . 381 6 1 Total of District ... 72 50 5 4 430 o o 1 , Courts not in Districts — Court Coromandel „ Southern Cross Coromandel... Timaru 4' '75 3 30 446 '3 3° 382 3 3" "3 4 95 4 8 466 17 2 3.355 '° ° 25,886 11 113! '9 5 0 25 10 o ! 1,216 10 9 Total of Order 3.404 '9 11 2,041 2 3 Ancient Obdeb of Shepheeds. Sanctuary Sir George Grey Wellington ... 40 1 9 1 22 1 8 162 10 6 7 1 7 United Ancient Oedeb of Deuids. Pioneer Lodge Christchurch 88 ! 54 26 25 11 4! 217 12 ni o 10 10 Independent Obdee of Rechabites. Star of Hope Tent Hokitika 36 5 4 42 14 o 99 1 3 4 4 9 I Sons and Daughtees of Tempeeanoe. Perseverance Division Progress „ Christchurch Kaiapoi 61 4' 1 '4 16 10 0 36 1 4 I 396 11 6 ■77 '4 8 574 6 2 26 2 4 4 26 2 4 Total of Order 102 '5 ] 1 j 4 a 2 'I 4 Hibeenian Catholic Benefit Society. Auckland Branch Charleston „ Grahamstown ,, Greenstone „ Hokitika „ Waimea „ Auckland Charleston ... Grahamstown Kumara Hokitika Stafford 201 25 95 '5 16 '7 369 36 1 4 4 40 3 13 2 ... I 2 | I •■• 140 3 4 28 16 8 : 58 10 o 17 19 o : 33 "3 4 7 16 8 j 286 19 o 59' ' " 15s 12 2 576 11 o 17 13 9i 135 '8 2 388 16 7 1,865 13 74 i53 3 6 25 6 o 7 3 o 17 14 9 I 4 2 t 7 4o 8 16 o Total of Order 45 64 J_\ 66 3 9 6 14 2 Kaeo and Wangaroa Friendly Society Loyal United Friends Benefit Society New Plymouth Friendly Society Kaeo 34 5 2 11 10 o Newton 4' 4' 9 3 6 New Plymouth 125 1 ... I ! * i '75 7 6 7,187 2 2! 3>°54 4 9a 98,673 o 8|213 o 6 5,170 16 z\ I i Total of all the Societies 9.759 '.355 1.'33 7° 33

17

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SCHEDULE II. (a.) Applications for Registry of Societies.

(b.) Applications for Registry of Partial Amendments of Rules.

(c.) Applications for Registry of Complete Amendments of Rules.

* For explanation of abbreviations see page 24, 3—H. 19.

Name of Society. Date of Application. How finally dealt with. 1. Grand Lodge, I.O.G.T.,* Dunedin Nov. 17,1879 Special authority under section 7 granted, but no further action taken by society. Much correspondence necessitated in explaining requirements of Act. Rules now before Eevising Barrister. Lodge informed that application must come through the District, and that status of Lodge would be that of a branch. Mode of procedure pointed out. Application withdrawn with aviewto eventual registration as a branch of the Canterbury United District, A.O.F. Mode of procedure pointed out. 2. Auckland District, N.I.O.O.F., Auckland Nov. 20,1879 3. Abbotsford Lodge, I.O.O.F., M.U., WaiDec. 8,1879 pawa 4, Otago Eailways Employes' Benefit Society 5. Court Thistle of the Forest, A.O.F., Sydenham Jan. 14, 1880 Jan. 21, 1880 6. Otago - Canterbury District, H.A.C.B.S., Dunedin 7. Oak of Sydenham Lodge, U.A.O.D., Sydenham 8. Eesolution Division, S. & D.O.T., Eangiora 9. Court Pride of Courtney, A.O.F., Courtney Feb. 23, 1880 April, 1880 Eegistration postponed till names of trustees be furnished. Mode of procedure pointed out. Application withdrawn with aviewto eventual registration as a branch of Canterbury United District. Application stands over till it is seen whether this division cannot be registered as a branch of the Grand Division of New Zealand. ") Lodges informed that they will V have to register as branches of ) Auckland District. Club requested to make application in the manner prescribed by Act and Eegulations. Mode of procedure pointed out. May 14, 1880 May, 1880 10. Phcenix Division, S. & D.O.T., Oamaru ... May 20, 1880 11. Auckland Pioneer Lodge, N.I.O.O.F., Auckland 12. United Brothers Lodge, ditto 13. Greytown Working-men's Club, Greytown May, 1880 May, 1880 May 31, 1880 14. Martin Luther Lodge, P.A.F.SA., Wellington June, 1880

Name of Society or Branch. Date of Application. How finally dealt with. 1. Court City of Auckland, A.O.F., Auckland July 22, 1879 Society advised to withdraw appli cation on actuarial grounds. Since registered —8th July, 1880. 2. Prince of Wales Lodge, I.O.O.F., M.U., Port Chalmers June 17, 1880

Name of Society or Branch. Date of Application. How finally dealt with. 1. Wellington District, I.O.O.F, M.U. July 18, 1879 Copy of Eevising Barrister's objections forwarded. Society requested to make application in terms of the Act. Lodge informed that the desired end can only be attained by applying for conversion into a registered branch of Invercargill District. 2. Nelson District, A.O.F. April 7,1880 3. St. George Lodge, I.O.O.F., M.U., Invercargill May 26, 1880

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(d.) Notice of Establishment of Branches under Section 30, Subsection (3), of Act of 1877.

SCHEDULE 111. List of Registered Societies, with their Eegistered Branches, as on 30th June, 1880. I.—Manchester Unity oi? Odd Fexlows.

Reg. No. Situate at 13. Auckland District ... ... Auckland, (1) Howiek Lodge, Howiek. (2) Charles Bruce Lodge, Thames. 14. Good Intent Lodge ... ... Auckland. I 19. Fountain of Friendship Lodge ... Auckland. 60. Waikato Lodge ... ... Thames. 79. Alexandra Lodge ... ... Alexandra. 81. Duke of Cambridge Lodge ... Cambridge. 107. Parnell Lodge... ... ... Parnell. 93. Neiy Plymouth District... ... New Plymouth. 125. Egmont Lodge ~. ... New Plymouth. 138. Wanganui Lodge ... ... Wanganui. 7. Wellington District ... ... Wellington. 22. Antipodean Lodge ... ... Wellington. 63. Rose of tho Valley Lodge ~. Lower Hutt. 126. Britannia Lodge ... ... Wellington. 77. Marlborough District ... ... Blenheim. (1) Marlborough Lodge, Blenheim. 108. Renwick Lodge ... ... Renwick. 25. Nelson District ... . ... Nelson. 30. Howard Lodge ... ... Nelson. 41. Nelson Lodge ... ... ... Nelson. 109. Travellers' Rest Lodge ~, ~, Richmond.

Reg. No. Situate at 92. North Westland District ... Reefton. (1) Reefton Lodge, Reefton. (2) Westport Lodge, Westport. 58. Charleston Lodge ... ... Charleston. 40. Hokitika District ... ... Hokitika. 27. Greymouth Lodge ... ... Greymouth. 45. Ross Lodge ... ... ... Ross. 46. Waimea Lodge ... ... Stafford. 59. Hokitika Lodge ... ... Hokitika. 95. Goldsborough Lodge ... ... Goldsborough. 96. Albert Lodge ... ... ... Kumara. 18. North Canterbury District ... Christchurch. (1) Volunteer Lodge, Sydenham. (2) Perseverance Lodge, Woolston. 12. Benevolent Lodge ... ... Christchurch. 16. City of Christchurch Lodge ... Christchurch. 20. Rangiora Lodge ... ... Rangiora. 43. Nil Desperandum Lodge ... Oxford. 52. Kaiapoi Lodge... ... ... Kaiapoi. 5. Lyttelton District ... ... Lyttelton. 6. City of Norwich Lodge ... ... Lyttelton. 31. Arowhenua Lodge ... ... Temuka. 128. Good Intent Lodge ~. ... Akaroa.

18

Name of Branch and Society. Date of Notice How finally dealt with. 1. Hope of Wellington Tent, Welling-"" ton... 2. Hope of Napier Tent, Napier ... _g 3. Bon Accord Tent, Blenheim ... *q 4. Unity Tent, Crofton ... ... 5. Perseverance Tent, Wellington ... g 0. Excelsior Tent, Waipukurau ... 7. Sir Wilfrid Lawson Tent, Sandon ... §. g 8. Eose of Sharon Tent, Waipawa ... ,_§ -g, 9. Bud of Promise Tent, Nelson ... .3 .0. Excelsior Tent, Wellington ... .1. Hope of Dunedin Tent, Dunedin ... -S fe. .2. Good Samaritan Tent, Timaru ... J-to .3. Kawarau Tent, Bannockburn ... Q JSj .4. Pride of Christchurch Tent, Christ- r-i -g church ... ... ... -S -g .5. Murihuku Tent, Invercargill ... o>,2 _6. Skandia's Hope Tent, Norsewood ... z„ .7. Faithful Friend Tent, Waimate ... | ° .8. Hope of Ormondsville Tent, Ormondsville, H.B. ... ... kS .9. Hope of Woodville Tent, Woodville '.0. Bay of Hope Tent, Kaikoura ... » 11. Haste to the Eescue Tent, Wellington 12. Helpmeet Tent, Dunedin ..._. !3. Court Thistle of the Forest, Sydenham: \ Canterbury United District, A.O.F., / Christchurch f !4. Court Pride of Courtney, Courtney: ditto J !5. Star of Auckland Lodge, I.O.O.F., Auckland 16. Court Star of Ashburton, Ashburton: Canterbury United District, A.O.F., Christchurch !7. Dawn of Hope Lodge, Little Eiver: Lyttelton District, I.O.O.F., M.U., Lyttelton Dec. 2, 1879 Eegistration refused owing to absence of branch rules. Notices returned for completion. Objections of Eevising Barrister forwarded. Feb. 28, 1880 Mar. 13, 1880 Objections of Eevising Barrister forwarded. Objections of Eevising Barrister forwarded. April 7, 1880 May 29, 1880 Since registered—-.^ July, 1880.

19

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Reg. No. Situate at 23. Otago District ... ... Dunedin. (1) Outram Lodge, Outram. (2) Albion Lodge, Dunedin. (3) Alexandra Lodge, Port Molyneux. (4) Prince of Wales Lodge, Port Chalmers. (5) Tapanui Lodge, Tapanui. (6) Roxburgh Lodge, Roxburgh. (7) Prince Alfred Lodge, Hawkesbury. (8) Dunedin Lodge, Dunedin. (9) Waipori Lodge, Waipori. (10) Palmerston Lodge, Palmerston. (11) Dalton Lodge, Balclutha. (12) Lake Wakatipu Lodge, Queenstown. (13) Cromwell Lodge, Cromwell. (14) Hand and Heart Lodge, Dunedin.

146. Independent Order of Odd Fellows of Neio Zealand ... Dunedin. (1) Pioneer Lodge, Dunedin. (2) Star of Canterbury Lodge, Timaru. (3) Mount Ida Lodge, Naseby. (4) Alexandrovna Lodge, Tern uka. (5) Unity Lodge, South Dunedin. (6) Point Lodge, Pleasant Point. (7) Avon Lodge, Christchurch. (8) Southern Cross Lodge, Wellington.

17. Auckland District ... ... Auckland. 8. Court City of Auckland.,. ... Auckland. 85. „ Pride of Parnell ... ... Thames. 150. Hawke's Bay District ... ... Napier. (1) Court Sir Charles Napier, Napier. (2) „ Captain Cook, Napier. (3) ~ Sir Henry Havelock, Havelock. (4) „ Robin Hood, Port Ahuriri. (5) „ Ruahine, Waipukurau. 144. Wellington District ... ... Wellington. (1) Court Robin Hood, Wellington. (2) „ Sir George Bowen, Wellington. (3) „ Lord Clyde, Wairoa, H.B. (4) „ Clarendon, Picton. (5) „ Manawatu, Palmerston (N.). (6) „ Loyal Feilding, Feilding. (7) „ William Gladstone, Gisborne. (8) „ Pioneer, Tinui, Whareama. (9) „ Roderick Dhu, Wanganui. (10) „ Blenheim, Blenheim. (11) „ Loyal Enterprise, Masterton. (12) „ Marquis of Normanby, Carterton. 29. Court Little John ... ~, Marton. IV.—Ancient Oedeb op Shepherds. 11. Sanctuary Sir George Grey ~, Wellington.

113. Star of Hauraki Tent ~. ~. Thames.

List of Eegistebed Societies, &c. — continued. I. —Manchester Unity op Odd Fellows — continued.

Reg. No. Situate at 23. Otago District —continued. (15) Oamaru Lodge, Oamaru. (16) Band of Friendship Lodge, Kakanui. (17) Tuapeka Pioneer Lodge, Lawrence. (18) Waitahuna Lodge, Waitahuna. (19) Blue Spur Lodge, Blue Spur. (20) Mosgiel Lodge, Mosgiel. (21) Mount Wendon Lodge, Waikaia. 61. Naseby Lodge ... ... ... Naseby. 119. Arrow Lodge ... ... ... Arrow. 64. Invercargill District ... ... Invercargill. 64a. Shamrock, Rose, and Thistle Lodge Invercargill. 74. Sons of Perseverance Lodge ... Riverton. 75. St. George Lodge ... ... Invercargill.

ll.—lndependent Oedee op Odd Fellows (Ameeican).

(9) Bangitikei Lodge, Rangitikei. (10) Winchester Lodge, Winchester. (11) Wanganui Lodge, Wanganui. (12) Alfred Lodge, Oamaru. (13) Green Island Lodge, Green Island, Dunedin. (14) Ravens bourne Lodge, Ravensbourne. (15) Pioneer of Southland Lodge, Invercargill. (16) Leith Lodge, Dunedin.

lll.—Ancient Oedee op Foeestees.

34. Court Sir George Grey ... ... Wellington. 72. „ Wairarapa ... ... Greytown. 65. Wellington District Widow and Orphan Fund ... .., Wellington, 4. Nelson District ... ... Nelson. 3. Court Robin Hood ... ... Nelson. 32. „ Concord... ... ... Greymouth. 54. „ Patea ... ... ... Patea. 55. „ Waireka ... ... New Plymouth. 78. „ Pride of the Forest ... Wakapuaka. 91. „ Unity ... ... ... Havelock. 129. ~ Perseverance ... ... Motueka. 131. „ Sherwood Forest ~. ... Stoke. 67. Court Waimea ... ... Stafford. 28. Canterbury United District ... Christchurch. 2. Court Star of Canterbury ... Christchurch. 143. „ Queen of the Isles ... Lyttelton. 139. Canterbury United District Widow and Orphan Fund ... ~, Christohurch. 10. United Otago District ... ... Dunedin. 15. Court Pride of Dunedin ... Dunedin. 37- ~ Enterprise ... ... Dunedin. 50. „ Robin Hood ... ... Port Chalmers. 70. „ Star of the Dunstan ... Clyde. 114. „ Star of Tuapeka ... ... Lawrence. 121. „ Havelock ... ... Waitahuna. 122. „ Royal Oak of Kawarau ... Bannockburn. 124. „ Pride of Oamaru... ... Oamaru. 130. „ Pride of the Leith ... Dunedin. 88. Court Coromandel ... ... Coromandel. 35. Court Southern Cross ... ... Timaru. V. —United Ancient Oedeb of Detjids. 152. Pioneer Lodge ... ... Christchurch. 155. Hope of St. Alban's Lodge ... Christchurch.

Vl.—lndependent Oeder or Rechabites, Salpoed Unit v.

1110. New Zealand Central District ... Wellington. 98. Star of Hope Tent ... ... Hokitika,

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20

List op Eegistered Societies, &c.— continued. Vll.—Sons and Dauohtees or Tempebance oe Australasia.

Rsg. No. Situate at 112. Perseverance Division ... ... Christchurch. 118. Antidote Division ... ... Dunedin. 133. Hand-in-hand Division ... ... Waimate.

Reg. No. Situate at 147. Progress ... ... Kaiapoi. 156. Ray of Hope Division ... ... Greymouth. 157. Dawn of Light Division... ... Rothesay, Otago.

Vlll.—Hibernian Australasian Catholic Benefit Society.

83. Grabamstown Branch ... ... Thames. 84. Hokitika Branch ... ... Hokitika. 99. Waimea Branch ... ... Stafford. 100. Charleston Branch ... ... Charleston.

117. St. Joseph's Branch ... ... Dunedin. 123. Greenstone Branch ... ... Kumara, 145. Auckland Branch ... ... Auckland.

IX.—New Zealand Railways Employes' Benefit Society.

148. Christchurch Branch ... ... Christchurch.

| 154. Invercargill Branch ... ... Invercargill.

X.—Miscellaneous Societies.

66. Central Volunteer Fire Brigade ... Wellington. 101. Kaeo and Whangaroa Friendly Society ... ... ... Kaeo. 149. New Zealand Prudential Assurance Society ~, ~, ~, Auckland.

151. Wellington Working-men's Club and Literary Institute ... Wellington. 153. Loyal United Friends Benefit Society ;,, ... ... Auckland.

SCHEDULE IV. Membership of the New Plymouth Friendly Society on 31st December, 1879.

Out of 118 members of this society whose stations in life were specified, it appears that there were 60 farmers, 24 labourers, 15 skilled artisans, 8 engaged in or connected with trade, 2 gardeners, 2 members of the Armed Constabulary, 1 clerk, 1 messenger, 1 boatman, while _ were returned as being in independent circumstances.

* The society was established in 1841.

Ago. Total. Duration of Membership (in Years). Under 5. 5 to 10. 10 to 15. 15 to 20. 20 to 25. 25 to 30. 30 to 35. 35 to40.* 601' Duration of Membership (in Years). 20-25 25-30 30-35 35-40 40-15 45-50 50-55 55-60 60-65 65-70 70-75 75-80 Unspecified 7 20 13 14 14 10 6 9 21 4 4 2 1 3 _ 1 2 11 5 2 1 1 2 5 4 6 2 1 2 3 2 5 2 1 3 4 2 2 1 5 6 1 4 3 2 7 1 1 1 6 1 3 2 "i 2 1 i Total ... 125 22 22 10 17 18 13 13

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SCHEDULE V. Abstract of Valuation Returns received during the Year ended 30th June, 1880.

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_> o Ages of Members (next Birthday). Present Value of I - ba «"3 8*i <J ° **0 Xaane of Lodge, i _> o_ Sis O tH _ _ ■P MM "44 ! I CO -*fl eo eo 18 27 Nature of Benefits. teg o ,*-.__> ffi Q> __ a 5. Benefit Funds. Contributions. Surplus. ins. Deficiency. _ I 9 O ■a _a o o ■*_> Benefits. i : i I — £ s. d. ! £ s. d. | £ a. d. £ a. d. £ s. a. £ s. d. £ a. d. Charles Bruco ... 1871 SO 55 I 1 | 9 I i 15 31 per week during the first 12 months of an attack of sickness; 13s. 4d. during sickness protracted beyond 12 months. Funeral benefits insured by a fixed annual payment per member to the Funeral Fund of the Auckland District. 137 17 4 3,0S8 18 5 2,238 13 0 1,161 11 5 i 311 6 0 4 6 5 I I I . . . i i Albert £1 per week during the first 6 months of an attack of sickness ; 13s. per week for 6 months during sickness protracted beyond 6 months; 10s. per week during sickness protracted beyond 12 months. 1,612 3 0 * * 320 16 2 j 1870 74 23 ! 4 i 17 8 16 23 6 96 4 0 2,965 8 8 1,032 9 6 1 12 1 Goldsborough ... 1870 33 14 J 67 ! ... 7 4 6 16 4 3 42 18 0 1,495 6 11 669 16 7 38 11 10 i 786 18 6 3 13 10 Greymouth 1867 114 12 14 40 28 12 1 148 4 0 5,362 10 8 2,286 13 0 j 11,920 14 10 1,155 2 10 . 5 9 11 Hokitika 1866 164 118 ... | 8 6 16 63 36 27 7 1 213 4 0 7,848 9 2 3,208 11 6 | j 2,649 15 4 1,990 2 4 4 6 9 Boss ... 1866 65 48 ! ... 4 3 9 22 16 10 1 84 10 0 3,120 12 8 1,290 18 0 1,468 17 11 360 16 9 4 3 2 Waimea 1867 45 25 ... 2 350 5 47 1 5 19 16 2 £20 at death of a member. £10 at death of a member's wife. 58 10 0 2,121 16 11 898 10 7 1,057 1 5 166 4 11 5,180 8 10 3 10 4 Totals 575 I 47 — 49 "I 84 — 1 210 114 ~ 56 — 9 781 7 4 26,003 3 5 12,205 5 8 8,617 8 11 l

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SCHEDULE VI. Scales of Contributions and Benefits at present in force for New Members.*

Benefits. Contributions to Sick and Funeral Fund. Sick Pay. Sums at Death — Name of Society and Branch. First 6 Months. Second 6 Months. Third 6 Months. After 18 Months. Of Member. Of Member's Wife. Manchester Unity of Odd Fellows. s. d. 20 0 per week 17 6 15 0 12 6 20 0 21 0 s. d. 20 0 per week 17 6 15 0 12 6 10 0 15 9 ». d. 20 0 per week 17 6 15 0 12 6 5 0 10 6 s. d. 20 0 per week 17 6 15 0 12 6 „ 5 0 10 6 £ £ s. d. Auckland District ... Hawke's Bay „ ... ... ... New Plymouth „ Wanganui „ Wellington „ Marlborough „ *«J ("2s. 7id. to 4s. 2d. per lunar month \ 2s. 5d. to 3s. 7d. „ 1 2s. 2d. to 3s. 3d. „ (.Is. 9d. to 2s. lid. 2s. 6d. to 4s. 6d. 7d. per week; extra annual contribution of 2s. to £1 2s. 17s. 4d. to 37s. 4d. per annum ... 2s. 7d. to 5s. Id. per lunar month !2s. per lunar month Is. 6d. to 4s. per lunar month ... 6d. per week ... ( 2s. per lunar month \ Is. 6d. per lunar month 2s. 5d. to 5s. per lunar month ... 2s. to 4s. „ Is. 3d. to 2s. 6d. per fortnight ... 2s. 4d. to 5s. 4d. per lunar month 2s. to 4s. „ 2s. to 4s. „ 15 0 20 0 20 0 „ 15 0 „ 15 0 „ 10 0 20 0 15 0 10 0 7 6 15 0 12 0 10 0 „ 7 6 (15 0 for 6 mo's i.7 6 after (12 0 per week I 1 6 after 7 6 per week 7 6 7 6 7 6 10 0 5 0 5 0 10 0 10 0 „ ( 25 20 15 15 20 4 12 0 0 10 0 O 10 0 0 10 0 0 10 0 0 12 0 0 Nelson „ Motueka „ North Westland „ Hokitika „ North Canterbury ,, Lyttelton „ Otago „ Invercargill „ 20 0 20 0 15 0 20 0 „ 20 0 „ 20 0 „ 20 0 „ 20 0 „ 20 0 „ 20 0 15 0 11 0 15 0 13 0 10 0 10 0 13 0 „ 13 0 10 0 7 6 7 6 7 6 10 0 5 0 5 0 10 0 10 0 „ 15 18 12 18 20 20 20 20 20 12 0 0 12 0 0 12 0 0 12 0 0 10 0 0 10 0 0 10 0 0 10 0 0 10 0 0 National Independent Order of Odd Fellows. Is. 2d. per fortnight ... 20 0 „ (15 0 for 3 mo's (10 0 ] 5 0 5 0 „ 20 12 0 0 Auckland District Independent Order of Odd Fellows. Grand Lodge of New Zealand ... Ancient Order of Foresters. Auckland District Hawke's Bay „ Wellington „ Nelson ,, United Westland „ Canterbury United „ United Otago „ Court Coromandel „ Southern Cross „ Forester's Pride 7s. 7d. to 15s. 9d. per quarter 2s. 3d. to 4s. 8d. per lunar month 2s. to 3s. „ 2s. to 4s. „ 2s. 6d. per week „ 7s. to lis. 6d. per quarter ... ... 6d. to Is. per week 7d. per week ... lOd. per fortnight 10d. „ 20 0 20 0 „ 20 0 20 0 „ 20 0 20 0 „ 20 0 „ 20 0 „ 20 0 20 0 20 0 „ 10 0 per week 10 0 10 0 10 0 20 0 „ 13 0 „ 10 0 10 0 10 0 10 0 „ 10 0 „ 5 0 by vote 5 0 5 0 10 0 10 0 5 0 5 0 5 0 by vote 5 0 „ by vote 5 0 „ 5 0 „ by vote 10 0 5 0 „ 5 0 „ by vote 20 20 20 20 15 20 20 20 20 20 20 10 0 0 10 0 0 10 0 0 10 0 0 10 0 0 10 0 0 10 0 0 10 0 0 10 0 0 12 0 0 12 0 0 - I I

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t On ffi,(ffi hustanT ™ 3Mne """^ W °rklDg Undei SCaleS differeEt & °m th °S6 Spedfled *» the district rnles' but for ,he sake "f levity these deviations have not been exhibited in the schedule.

Ancient Order of Shepherds. Sanctuary Sir George Grey Is. 6d. to 3s. per calendar month s. d. 10 0 per week s. d. 5 0 per week s. d. by vote 8. d. by vote £ 10 £ s. d. 5 0 0 United Ancient Order of Druids ... 6d. per week ,.. 20 0 10 0 5 0 per week 5 0 per week 20 10 0 0 Independent Order of Rechabites. New Zealand District New Zealand Central „ 8s. 2d. per quarter 8s. 2d. ( Is. 6d. per fortnight ... UOd. „ ' 20 0 20 0 20 0 „ 10 0 20 0 20 0 20 0 „ 10 0 „ 10 0 per week 10 0 5 0 20 20 10 0 0 15 0 0 Albert „ 5 0 per week 10 0 „ 5 0 ) 35 12 0 0 Sons and Daughters of Temperance. 20 0 10 0 13 0 „ 6 6 10 0 „ 5 0 „ 10 0 „ 5 0 „ Grand Division of New Zealand ... f Males, 5s. to 13s. 8d. per quarter J. Females, 2s. 6d. to 6s. lOd. per quarter ... 20 5 10 0 I flO 0 I Hibernian Australasian Catholic Benefit Society 6d. per week 20 0 (15 0 for 3 mo's 110 0 „ ] 5 0 „ 5 0 20 10 0 I Protestant Alliance Friendly Society of Australasia. Grand Council of Victoria „ New South Wales 7s. per quarter Is. per week for all purposes, including medical attendance and management 20 0 „ 21 0 10 0 per week 15 0 5 0 „ 5 0 5 0 5 0 for 6 mo's 20 25 10 0 ( 15 0 ( *«* New Zealand Railways Employes Benefit Society. Christchurch Branch ... Invercargill „ Is. 4d. per calendar month Not fixed 20 0 „ 20 0 10 0 „ 10 0 „ 10 0 10 0 „ 10 0 per week 10 0 „ 20 20 10 0 ( 10 0 ( Loyal United Friends Benefit Society 3d. per week per share (10 0 for 3 mo's (_ per share \ 5 0 „ J per share 5 per share 2 10 ( per share

EXPLANATION OF ABBREVIATIONS USED. 1.0.0. F., M.U., means the " Manchester TJuity Independent Order of Odd Fellows." 1.0.0. F. means the " Independent Order of Odd Fellows." This is the well-known American order. The branch of it established in New Zealand, not being able to register as such, has registered as a separate society under the title of the " Independent Order of Odd Fellows of New Zealand Friendly Society." N.1.0.0.F. means the "National Independent Order of Odd Fellows.' A.O.F. means the " Ancient Order of Foresters." A.O.S. means the " Ancient Order of Shepherds." This is in reality a second grade of Forestry, so that every member of this order is also a member of the Ancient Order of Foresters. U.A.O.D. means the " United Ancient Order of Druids." 1.0. R. means the "Independent Order of Rechabites." S. & D.O.T. means the " Sons and Daughters of Temperance." H.A.C.B.S. means the "Hibernian Australasian Catholic Benefit Society." P.A.F.S.A. means tho " Protestant Alliance Friendly Society of Australasia." 1.0. G.T. means the " Independent Order of Good Templars."

By Authority : Geoege Didsbuey, GoTcrnment Printer, Wellington.—lBBo. Price Is.]