A CURIOUS TRANSACTION

Dominion, Volume 10, Issue 3087, 18 May 1917, Page 6

A CURIOUS TRANSACTION

HOSPITAL BOARD AND A LIFE INSURANCE POLICY. The Finance Committee of the Wellington Hospital and Charitable Aid Committee recommndcd to the board yesterday:—"That as this committee cannot see its way to acquire the life insurance policy originally issued to a patient now in the hospital other'than, by paying all the charges due thereon (about .£350), the board be asked to authorise the payment of same." The chairman (Mr. H. Baldwin) said that this clause needed somo explanation. It referred, he said, to the wish of one of the inmates of the Clifton Terrace Hospital (for chronic invalids), who wished to compensate the board for the kind treatment he had always received at their hands, and to pay for the charges against his maintenance. This man had an insurance policy of JJ7SO, which with bonuses was now worth .£950. He had mado the policy over to another man, from whom he had also borrowed ,£l7O. That policy could now be secured to the board by the payment of J2350. The Minister had been consulted about the matter, without any result, but the committee were prepared to draw a cheque for the ,£350, and stand the consequences of their action. Mr. G. Nash wanted to know what guarantee the committee had that the policy would be made over to the board. The chairman: Can't you trust your Committee that much? Mr. Nash: No! I think'you ought to havo the opinion of the board's solicitor. The chairman: Here it is—the solicitor recomemnds you to do it. The Rev. Dr. Elliott said that he had sufficient confidence in the Finance Committee to move that the course proposed bo pursued. Mr. J. W. M'Ewan was also satisfied they were doing the right thing. If the Minister could not fee the equity of the transaction, then he was sorry for the Minister. The chairman explained .that the procedure would be that the policy would revert to the original. owner, and he would mortgage it to the board: That was the method recommended by the board's solicitor, and was in accord with the views of the donor, who would pass from this world with the full knowledge that he had paid his just debts to all mankind.' It was suggested that the auditor might hold the payment up. Mr. John Smith held that the members of the board should know that there was a prospect of thein being surcharged individually to make up the amount of .£350, so taken from the general account. At the same time he saw that it was fair on the part of the man to endeavour to recoup the l board for the services that had been rendered him. Personally, he was not willing to become a party to be so surcharged, and it was a pity some arrangement could not bo made to make the course of action proposed unnecessary. Mr. F. Castle (treasurer) pointod out that illegal expenditure was involved in the matter. , The Rev. H. Van Staveren said that if the auditor did stick'it up. it would simply mean a tag on the balance-sheet. The recommendation was agreed to.