FRIENDLY SOCIETIES' REPORT.

New Zealand Tablet, Volume XII, Issue 5, 23 May 1884, Page 23

FRIENDLY SOCIETIES' REPORT.

At a conference of the delegates of Friendly Societies hold lately in Auckland—as reported by the local Star— the following report was adopted :— Auckland, 2nd May, 1884.— Report of sub committee appointed by the delegates -of Friendly Societies to obtain statistics for the purpose of showing that the basis of valuations, by the valuers under the Friendly Societies Act, is not a fair one.— Gentlemen : Your committee have to report that with reference to the Friendly Societies Act, it would be inadvisable to attempt any further alteration beyond what was done at the fiist meeting; for on comparing it with tha English Act we find that with the exception of the clatue objected to, it contains nothing more than what is laid down in the one in force in Great Britain. Your committee having heard that Mr. F. W. Frankland, actuary for the New Zealand Government, was about to visit Auckland, prepared a series of questions to be submitted to him, and on Thursday, 17ch April, your committee met Mr. Frankland and submitted the questions prepared. Now, in order that you may more easily understand what was done, we give you each question submitted and his reply thereto -.—First question : That it is advisable to strike out the latter portion of clanse 12 subsection D, page 9, because it is not found in the English Act, and because it confers no benefit upon societies, but entails needless expense and labour. Answer : The returns, as required by the Act, are of great importance not only to the Government, but are also of great importance to Friendly Societies, so as to ascertain more correctly a tnge record of the experience of sickness and mortality in New Zea\md, and in order also to obtain a correct basis upon r which to value societies. He could not recommend the Government Tto strike out the clause, but would recommend that secre:aries should be paid for furnishing the returns, at the rate of 7s 6d for a society of 50 members, and 5s extra for every 50 or portion of 50, for a society having more than 50 members. Second question : That, in our opinion, 4 P.O. is too low to value societies ; we, therefore, recommend that societies be valued at 5 P.O. Answer : That he did not object to societies being valued at 5 P. 0., but he was of opinion that 4 P.O. was the only safe basis for societies to be valued at. He also thought that, from recent statistics obtained, that account ought to be taken of secessions, fand that two valuations might be made ; one to be a rigid valuation of 4' P. 0., and the other a valuation allowing for secessions, and at 5 or 5^ P.C., provided that societies could show that they bad been obtaining that amount of interest upon their invested funds. Third question : We also think that the average expectation of existence of members in societies is too great, which is supported by table No. 1. We also think that the experience of sickness in Auckland is not so great as jn England, as shown by table No. 2. Answer : That so far as he had compared the mortality tables of New Zealand with. those obtained in England, he was of opinion that the rate is, and will be, under tbat experienced iv England, but taking secessions into oonsideratioti, he thought that members would not remain in societies lhe time that is laid down in RatclifEe's M.U. Tables. He also thought that the experience of sickness in New Zealand would not come up to that experienced in England,' but would be able to speak more confidently after an examination of the returns for the last year bad been completed. Fourth question :— We submit thac a new basis or method of valuations should be introduced, so as to show how much each member ought to have to his credit each quin iuennium, as per table 3 and 4. Answer : He thought that the proposed basis, or method of valuation would be better understood, and would work very well, provided that all societies adopted a scale of contiibutions sufficient to meet all future liabilities of the society, but it would entail a large amount of work upon valuers to preparu such tables. Mr. Frankland then asked if we could suggest any alteration in the form of returns, when, after considerable discussion it was decided " That the list of ages of members on the last page of the sickness and mortality return could be dispensed with." That in the annual statement of receipts and expenditure, that portion headed assets and liabilities could be simplified. We therefore now recommend that no objection be raised to clause 1 2, sub-section D, provided that secretaries be paid for furnishing the returns. We also think that there is every reason to expect a larger amount of secessions here than what is experienced in rilugland, and that by adopting the new system of -valuation it will entirely do away with probabilities or speculation, and that it would be safe and reliable ; aud further, it would be more easily nuderstood, and more likely to induce a society, if found insolvent, to take steps to place it in a solvent position. — We remain, etc., Seeking- H. Matthews (Chairman 1.0.0. F., M.U., A.D.), Chas. Saml. Weight (1.0.0. F., M.U.), J. F. Lovbll (A.0.F.), T. H. Whitk (H.A.C.8.5.), JAMES W. Cars (1.0. R.;, WM. Jknsingb (Druids).