5

H.—l

and £1,383,954, at the beginning and end of 1912. The balance of gain for the year was £84,385, or £1 2s. lid. per member in 1913, as compared with £85,517, or £1 3s. Bd., in 1912.

The averages for the live leading orders and for all societies are given in the following table for the year 1913 : —

Investment of Funds. The net income from investments credited to the Sick and Funeral Funds for 1913 amounted lo £68,723, the average rate being -1-D5 per cent. (say. CI Ills..), as against £4 Mis. 2d. in 1912.

Table showing the Total Worth of the Sick and Funeral Funds of 681 Lodges as on the 1st January, 1913, and the 31st december, 1913, inclusive of the Accumulations held by the central Bodies; also the Amount and Average Rate of Interest earned.

Administration of Consolidated Societies. The process ni' consolidating the branch benefit funds of societies into one central fund is still occupying the close attention of many societies throughout the Dominion. Some of the legal difficulties consequent upon these consolidations are now beginning to show, more particularly lhe question of eoiit rolling the investment of those funds held in various parts of the Dominion and which constitute the assets of the central fund of tlie main body. The Friendly Societies Act vests the funds of a society in its trustees, and no separate persons outside those trustees can be legally held responsible for the investment and control of those funds. Any extension of these powers of' Controlling the funds implies a corresponding extension of the penalizing sections of the Act in respect of officers responsible for the safe custody of moneys, securities, &C, and societies that are effecting these changes would do well to bear in mind this important point when adopting new rules. Relations between Central and Branch Funds. A judgment of considerable importance to societies was delivered at the Supreme Court, Wellington. The first part of the judgment deals with the powers of a society to take moneys from branch benefit funds collected for a said purpose, and transfer them to a central fund established for the same purpose. The second part of the judgment dealt with a contingency that could seldom happen in a friendly society, and is consequently of less interest to members. The following is the text of the Chief Justice's judgment :— "This is an action brought by plaintiffs as trustees of a branch of a friendly society called the 'Court Sir Charles Napier,' the branch being a branch of the friendly society called the 'Ancient Order of Foresters,' against the defendants, who are the trustees of the friendly society. The plaintiffs ask the Court to declare that certain rules passed and registered by the friendly society are ultra circs and void, and ask for the issue of an injunction to restrain the society from enforcing compliance with these rules. The new rules with respect to which complaint is made are two. viz.,— " Rule 22. new clause (/i : ' That those Courts who at the end of 1910 have drawn out more than they have paid in should refund the amount.'

Order. Income per J [ember from Outgo per Member for Sick-benefit Average Sickper Member pay per sick. Week. Gain per Member. Contributions. Interest. Sickness. Funerals. M.U.I.O.O.F. I.O.O.F. .. A.O.F. U.A.O.D. .. I.O.R. £ b. d. 1 13 1 1 10 2 18 7 1 10 5 1 4 2 £ s. d. 15 5 0 13 5 111 0 10 6 0 18 0 £ b. d. 14 1 0 14 11 10 6 0 17 2 0 17 7 £ B. d. 0 4 11 0 2 8 0 5 1 0 2 11 0 3 6 £ s. d. 7 7 7 5 8 8 6 5 4 5 5 9 5 16 6 £ s. d. 0 13 10 0 15 7 0 12 5 0 15 7 0 14 1 £ s. d. 16 7 14 6 14 7 0 18 5 1 0 3 All societies 1 10 3 0 18 8 10 4 0 4 2 6 6 4 0 13 10 1 2 11

Name of Society. Total Worth of Sick and Funeral Fund as on January 1,1913. December 31,1913. Amount of Interest. Average Rate per Cent. M.U.I.O.O.F. I.O.O.F. .. N.I.O.O.F. .. B.U.O.O.F. .. A.O.F. A.O.S. U.A.O.D. .. I.O.R. S.D.T. H.A.C.B.S. .. P.A.F.S.A. .. E.T.B.F.8. .. £ 623,625 81,967 4,758 2,813 344,452 1,258 189,276 69,311 15,524 26,144 19,377 2,245 £ 655,519 89,605 4,745 2,976 364,770 1,253 205,613 73,267 16,399 28,021 20,635 2,356 £ 30,469 4,178 257 146 17,446 69 9,308 3,520 853 1,266 1,112 99 £ 4-88 4-99 5-56 5-17 5-04 5-65 4-83 5-06 5-49 4-79 5-72 4-40 Totals .. 1,380,750 1,465,159 68,723 4-95