ANNUAL MEETING OF TH GOVERNMENT INSURANCE BOARD

Ashburton Guardian, Volume V, Issue 1541, 28 May 1885, Page 2

ANNUAL MEETING OF TH GOVERNMENT INSURANCE BOARD

The first annual meeting of the Government Insurance Association Board was held in the Drill Shed, Wellington, last evening. Sir Julias Vogel was in the chair, and the other members of the Board on the platform were Messrs J. 0. Gavin (of the Treasury). R. 0. Hamerton (Public Trustee), N. Roedl J. W. Beetham, G. V. Shannon (Government nominees), and H. D. Bell, Geo. Fisher, and G. S Graham (elected members). About 200 policy-holders were present. Sir Julius Vogel proposed the adoption of the report, and after explaining the establishment of the Board, dealt at length with the figures in the report. After traversing the business for tha year, ho referred to the properties purchased by the Board, and thought no better investment could be made, as these investments would yield 6 per cent on the capital, while they would have office room free. The capital value of these properties would, he added, increase from year to year. He denied that tha purchases would reduce the amounts to be distributed as bonuses at tha quinquennium, as such distributions were made on the value of liabilities and assets. Referring to the staff, he said there was no intention to place an officer over the head of Mr Luokie, but the Board did not feel itself justified in entering into an agreement w.th that gentleman, as they were of opinion that at some future time it Hughs be found expedient to obtain the services of a gentleman who had longer experience in an institution of this kind. One step the Board intended to take was that of endeavoring to enlist the assistance of policy holders in obtaining new business, and it was proposed to offer small commissions to those policy-holders who placed business in tha hands of agents Tue Board had come to the conclusion to invest the funds in mortgages of real property, and great caution would be exorcised in such cases. At present the Board was limited to 50 per cent, of tha value of the property, but they intended to ask Parliament to extend the limit to two-thirds, They had four classes of securities —Ist, lo *na on policies ; 2nd, Government securities ; 3rd, loans _to local boards on Parliamentary securities, and 4th, loans on freehold properties. The Board also intended to asx Parliament to allow them to sell annuities out of the colony One of the members of the Board was going on a visit to England shortly, and he was empowered to select one or two young men who might be willing to join the institution at a moderate salary. He next referred to local Boards, and said he was anxious to have this matter fully ventilated. Ha explained at length tha benefits to be derived from having in each large centre a Board composed of gentlemen who would take an interest in the affairs of the Association. It had been decided by the Board that any motion re the appointment of local Boards or otherwise would be received

that nigh* without the usual notice being given, and the feeling of the meeting would be thus tested After that it was open to any two policy-holders to call for a poll on the question, which would be taken on a futuie day, when the holders could exercise their right of vote by proxy Mr EL D. Bell seconded the motion for the adoption of the report. Mr Fisher denied that the properties, at all events the Dunedin ones, were yielding 6 per cent. Ho also said that the Auckland property was unfit for insurance business, and a largo amount would have to be expended on it. He had suggested delay in the purchase of this property until after the annual meeting of tho Association, but by the casting vote of the then Chairman (Mr Tole) the suggestion was not adopted. He read a statement of figures showing that the Association, by investing its money in Government debentures instead of going outside, would in five years lose upwards of 1.500,000 in interest. He considered the C denial Treasurer should not occupy the Oh drmanahip of tho Board, and when the Amendment Bill was before Parliament he hoped a change would be made in this direction. Ho objected altogether to local Boards

Mr H. D. Bell asked the policy-holders not to believe that the Board was squandering their money. There was no doubt large sums were invested in Government securities, but they were gradually being withdmwn and invested in other ways. Mr Graham thought, at present, local Boards were not required. After two or three policy-holders had addressed the meeting and Sir Julius Vogel had rep'ied, the report and balancesheet were adopted. Mr Geo Beeiham, M.H.R. for Wairarapa North, then moved a resolution to the effect that local Boards should not be appointed. On a show of hands being taken, the Chairman announced it in favor of the motion, winch was therefore declared carried. Sir Julius Vogel asked if any policyholders demanded a poll. Mr Beetham said ho did not wish the present meeting to decide the question, and with a view of allowing the policyholders in distant parts to express (heir opinion, ho demanded that a poll should bu taken. ll wan accordingly decided (hat a poll should he taken ai nn adjourned meeting to he held I hat day month, The elected memluon of (he Hoard voted in favor of the motion.

The meeting terminated at 11 o'clock.