H.—2.

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number of contingencies involved, and the almost total want of data. In your case we have to consider the children who may be left fatherless or orphans out of the following classes : — (1.) The 976 children whose parents were alive at the date of valuation; (2.) The children who may yet be born to the present married members ; (3.) The children who may yet be born to members at present single. In regard to the first class, our chief difficulty was the want of suitable tables, and, after a direful examination of all tables of mortality of infantile life within reach, we decided upon adopting the New South Wales (Females) Table for the value of life under 10 years of age, and the Hm Table for the value of life over that age. Having calculated the necessary series of monetary values of single and joint lives according to the above data, the valuation was proceeded with by finding the value of the benefit to each child in the event of the father dying before it reached 12 years of age. The total of the values so found amounts to £445. In regard to the children of the second class, the valuation is beset with difficulties for want of data. On referring to Table 1., and considering the number of married members at each group of ages, and the number of such members having children under 12 years of age at the date of valuation, we are of opinion that a considerable number of children will yet be born to them. Now, in estimating the value of the benefit to these children, it has to be remembered that the value of the benefit to each child at birth increases as the father increases in age. Taking all the circumstances into account we estimate the liability to the children of this class at £400. Coming now to the last class —the children who may be left fatherless or orphans from the marriages of members at present single. In this case, as in the last, there is no method that, can be devised of forming an estimate of the value of the benefits to the children of this class which c;m be regarded as satisfactory. We can only give a rough approximation, based upon our estimate of the number who will marry out of the 241 single members at the date of valuation. This number we have estimated at 187. Now, if we suppose that 170 of these marriages will prove fruitful, it seems to us that £500 would be a very moderate estimate of the present value of the future liabilities to the children of this class. Having now indicated the methods pursued by us, we will now append the valuation balancesheet. Valuation Balance-sheet, as at 31st December, 1880. Db. £ s. d. | Ck. £ s. d. To Estimated value of temporary annuities to j By Total assets, as per secretary's return ... 1,177 16 10 13 widows ... ... ... 275 12 0 I Estimated value of future contributions 2,668 5 8 Estimated value of temporary annuities Deficiency ... ... ... ... 3,124 14 3 to future widows ... ... ... 5,177 9 0 Estimated value of temporary annuities to 26 children ... ... ... 172 15 9 Estimated value of survivorship annuities to 976 children ... ... ... 445 0 0 Reserve for future children of present married members ... ... ... 400 0 0 Reserve for future children of members at present single ... ... ... 500 0 0 £6,970 16 9 £6,970 16 9 Having regard to the carefulness which has characterized the management of this fund, tho large deficiency brought out by this valuation is a result we greatly deplore. But as we have not been able to see a way, consistent with our responsibilities, to. reduce the deficiency in any way, we are therefore of opinion that the contributions and benefits of this fund should be immediately revised. Seeing, however, that so much doubt exists regarding the future liabilities under some of the benefits, and recognizing fully the power of efficient management in overcoming difficulties when seen to exist, we do not feel inclined to recommend for your adoption such measures of reform as would at once remove this deficiency. As there can be no doubt about the contribution being insufficient and grossly inequitable, a graduated scale should be at once adopted, and made applicable to all in accordance with the age at entry. As a tentative scale, we would recommend the following for adoption, viz. : —• Age 18 to 20 ... 6d. per lunar month. Age 30 to 35 ... IOJd. per lunar month. „ 20 „25 ... 7_d. „ „ 35 „40 ... Is. „ 25 „30 ... 9d. It will be seen by reference to the valuation balance-sheet that the heaviest liability is in respect of the payments to widows, and it is on this benefit we think a little reduction should be made. We would recommend that the benefits to widows should be reduced to 10s. per calendar month, and that the benefit should absolutely cease at the end of six years after the death of the members. In any case of great necessity for further assistance a special levy might be made, either by a single lodge or by the district as a whole. In conclusion, we may say that the objects aimed at by you in the maintenance of a Widows' and Orphans' Fund in connection with your district are most admirable, and in strict accordance with the phiianthrophic principles of the order. Such being the case, it is all the more necessary that the institution should be placed on a sound financial basis. We have endeavoured in this report to point out what, in our opinion, would be most conducive to that end ; and we hope, as a result, that you may be induced to adopt such measures of reform as will insure receipt of the benefits of the fund by all who may become entitled thereto. We have, &c, Geo. Leslie, Beter Black, Bublic Valuers under " The Friendly Societies Act, 1877." Dunediu, 21st October, 1881.