H.—3

8

1. Number of members at the date of valuation; 2. Present value of benefits ; 3. Present value of contributions ; 4. Value of accumulated benefit funds ; 5. Surplus or deficiency ; 6. Average surplus or deficiency per member; 7. Average age of members ; 8. Average annual contribution, per member, to benefit funds; 9. Average value, per member, of accumulated benefit funds; 10. Eate of interest per annum, credited to benefit funds (average for quinquennium) ; 11. Surplus or deficiency at previous valuation (average per member). Table B shows — 1. Eatio to liabilities of— (a) Present value of contributions to benefit funds; (6) Value of accumulated benefit funds ; (c) Total assets; (d) Surplus or deficiency. 2. Causes to which Valuer attributes surplus or deficiency. 42. In Table B no averages for the totals and sub-totals have been inserted, for the reason that, while averages of such matters as sickness and mortality experience are of the highest value, averages in respect of the total funds of an order or district are frequently quite misleading. The surplus belonging to a prosperous branch of a society cannot be regarded as a set-off against the deficiency shown in the case of another branch, for the mutual principle of an affiliated friendly society has, necessarily, only a limited action. 43. It will be observed that considerable delay has unfortunately taken place in some of the valuations completed last year. This matter was referred to in the Registrar's 1886 report, and it is needless to repeat what was there said on the subject. 44. It has not been thought necessary to include in the valuation summary a column showing the rate of interest assumed, because, with one exception, 4 per cent, has been uniformly adopted. * The exception is in the case of the Nelson District, M.U.1.0.0.F. The Valuer, having regard to the fact that the rules of this district provide for a levy, if required, to make up a sufficient amount in order to credit a minimum of 5 per cent, to the benefit fund, felt justified in varying the rate. 45. For convenience of publication the causes assigned by the Valuer for the surplus or deficiency disclosed by valuation are indicated in Table B by means of letters referring to a list prefixed to the table. In special cases the Valuer's report is quoted verbatim. 46. Of the 121 sick and funeral funds which show a greater deficiency than Is. in the pound, " inadequate rates of contribution," in most instances for all members, is entered against 107 as either wholly or ill part accounting for the result. Thus, in nearly 90 per cent, of the valuations, where more than a nominal deficiency occurs, the mischief arising from the adoption of scales of contribution and benefits at haphazard, and without any proper calculation of the ratio which ought to exist between them, is still actively working either fully or partially, notwithstanding that the unanimous testimony of authorities has pointed out the error, and urgently advised the application of an immediate remedy. Tkade Unions. Registration. 47. Two societies were registered under " The Trade Union Act, 1878," during the year 1886, viz.: (1.) The Wellington Operative Bootmakers' Society; (2.) the Auckland Operative Bootmakers' Society. Amendment of Rules. 48. A partial amendment of rules was registered on the application of the Federated Seamen's Union of New Zealand. Cancellation of Registry. 49. The registry of the New Zealand Federated Lumpers' Society was cancelled on the ground that the society had ceased to exist. 50. A list of registered Trade Unions as at the 31st December, 1886 is appended (Appendix X.). Edmund Mason, Eegistrar of Friendly Societies and Trade Unions. Friendly Societies Registry Office, Wellington, 31st March, 1887.

* In the case of Court Robin Hood, Nelson District, A.0.F., the Valuer, at the Court's request and expense, made a second valuation at 5 per cent., but the figures in the summary are from that at 4 per cent.