H.—2.

St. George Lodge. —The valuer's advice offered at the time of the previous valuation having been disregarded, it cannot be a matter for surprise that a deficiency again results; and, if the old members are to receive the stipulated benefits, the funds contributed by the young men will have to be taken to pay them. Unity Lodge. —As usual, the hall has proved a ruinous investment. Had the funds been prudently placed at interest it is probable that, owing to a very favourable sickness experience, the financial position of the lodge would have been good. Combination Lodge. —The money sunk in the hall has been borrowed from the benefit fund. This is illegal, and, whatever be the present value of the property, the amount must be credited to the benefit fund. Heart of Oak and Masterton Lodges. —A tery serious deficiency is shown resulting from " inadequate contributions." Oreytown Lodge. —There is still a deficiency, although a considerable improvement has taken place during the quinquennium. This lodge is burdened with a hall, but, fortunately, the amount spent upon it is not very large. Petone Lodge. —This lodge was established in 1882, and it might have been hoped that after the losses experienced by other societies its members would not have sunk their savings in a hall. The portion of the contributions credited to the benefit fund is stated by the valuer to be inadequate, and, moreover, as not being in accordance with the rules. Valuation op the Motueka District, M.U.1.0.0.F., as at the 31st December, 1887. (Mr. Wiggins.) 45. The following remarks are extracted from the valuer's report to the district officers : — " I regret to have to lay before you'a statement showing a serious deficiency. Nevertheless it " will readily be admitted that it is better to be made aware of the true position of affairs, though " unfavourable, than to go on in ignorance of it until, perhaps, the application of a remedy becomes " all but impossible. The cause of the deficiency disclosed by the valuation is not far to seek. It is " to be found in the fact that your contributions are insufficient to provide the benefits promised. " Other minor causes have been at work, but the one which I have mentioned is the main and all- " sufficient one. The contribution is insufficient at the younger ages, and, being ungraduated, of " course this discrepancy largely increases in the case of members admitted at the higher ages. " . . . . Your district was formed when the parent orders in England had not yet been aroused "to the necessity of setting their houses in order. You have only lately been registered, have not " been valued before, and have therefore missed the useful counsel and guidance which other " societies have had, and, in many instances, have availed themselves of." The valuer concludes his report by recommending— "1. The formation of a central funeral fund to which contributions shall be payable " according to existing members' present age ; " 2. An addition to the rates of contribution of existing members, regard being had to the " ages of the members at entry and the position of the lodge as now disclosed ; " 3. For future members the imposition of a scale of contributions adequate to the benefits " assured, and equitably graduated according to age at entry." Widow and Orphan Fund. —Owing to the inadequacy of the contribution which is ungraduated there is a considerable deficiency. As the valuer points out, a uniform rate of payment by members at all ages is more than unusually unfair to the young men, by reason of the very great variation in the respective liabilities. Valuation of the North Westland District, M.U.1.0.0.F., as at the 31st December, 1887. (Mr. Black.) 46. The lodges in this district, with one exception, show a surplus. The deficiency in the Waimangaroa Lodge results, as the valuer points out, from the adoption of the "equal levy" system. Since the date of valuation, however, a more equitable basis of contribution to the district funeral fund has been brought into operation. The surplus in each case results in great measure from the excellent investment of the funds, for which the lodge officers justly receive from the valuer due praise. Valuation of the Ashley District, M.U.1.0.0.F., as at the 31st December, 1887. (Mr. Wiggins.) 47. The scale of contributions in this district is most satisfactory. As a set-off against this, nearly all the lodges have suffered more or less from the "building mania." If the accumulated funds had been wisely invested, a substantial sum would have been available as a nucleus for a superannuation fund, and the district might have had the credit of being among the first in New Zealand to initiate this essential addition to the completeness of friendly-society finance. The present mode of providing for the funeral claims should give place to some sound and equitable system. Valuation of the Geand Lodge of New Zealand, 1.0.0. F., as at the 31st December, 1887. (Mr. Wiggins.) 48. A notable illustrations of the fact that solvency does not depend solely on an adequate scale of contributions, which has been approved by an actuary, is afforded by the results of this valuation. In some lodges in which the management has been good, a surplus appears; in others, not less favourably circumstanced, a serious deficiency is shown. The following is an extract from the valuer's report:—

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