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FRIENDLY SOCIETIES.

(Melbourne Argus.) The position of the various friendly societies in this Colony is a matter of very grave importance to those who depend upon them for assistance in time of sickness, and for other benefits of which either they or their families are under certain circumstances entitled. Some time since attention was called in tnc columns of this journal to the fact, that one society in this Colony had actually absorbed in the expenses of management almost the whole of the hospital and sick fund. In consequence of this misappropriation, one of the lodges left the parent soc ety, and a very general feeling of dissatisfaction naturally prevailed amongst all its members. At the time the facts alluded to were made public, it was generally believed that the case was a very exc ptional one, because the Friendly Societies Act expressly provides that to appropriate fund* paid in for one particular purpose to any other purpose shall be a misdemeanor, and such misdemeanor is subject to very heavy penalties. This provision of the Act appears, however, to be entirely disregarded. A return has recently been supplied to an order of the Legislative Council, showing the names of the various friendly societies in the Colony, which, at the end of 1872, had drawn sums from the benefit fund to meet the expenses of general management. The return is, to some extent, incomplete, a large number of lodges and courts having— perhaps wisely—omitted to send in any returns. From those that have been supplied, however, we learn that up to the end of 1872 benefit funds to the amount of L 5,090 had thus been misapplied. Had all the returns been given in, it is quite probable that this amount would have been doubled. From papers received by the last mail, we gather the astounding information that the assets of the Manchester Unity of rddfellows are more than ane million sterling short of its liabilities. The directors’ report of the last Annual Movable Committee states that the preseut value of the assets is L 9,424.392 16s ; but the liabilities are I 10.707,839 12s sd, leaving a deficiency of L 1,343,440 IGs sd, This calculation was based on three per cent, interest being obtained ; but as the capital of the society is invested at a higher rate, the deficiency in round numbers may be estimated at a million sterling. The principal causes which have led to this result are said to be that in the early history of the society contributions were fixed at haphazard, and much too low for the benefits promised; that members were admitted at all ages up te forty-five years, at uniform contributions; and that disproportionate funeral benefits were insisted on, arising from an old custom of making a collection on the death of a member, instead of having a proper contribution to meet the sum insured. It is also urged that the payment of medical attendance and management expenses out of the general funds “prejudice against reforms, and delay in carrying them out; the want of reliable tables, based on experience ; and, lastly, the professed but imaginary dread of competing societies, which admit members at low contributions, and promise benefits they cannot guarantee, and fail to give when most required,” have all contributed to this deplorable result. One singular thing pointed out by the directors is that in some districts and by some lodges the very highest rates of funeral benefits have been adhered to, whilst the sick relief has been nearly extinguished. “Practically,” they say, “the sick man was starved during life that some one at his death might be benefited by a large funeral donation.” A proceeding more reprehensible can scarcely be imagined. There appears to be no doubt but that for years past this society hac been transacting its business upon an unsound basis. The advantages offered have been in excess of the fees demanded, and the directors appear to be now painfully aware of this circumstance. It is proposed to meet the difficulty by the reduction of funeral benefits in paor districts to the smallest sura that will suffice for decent interment, the increase of sick benefits to at least a useful amount, and of contributions to such an extent as members can fairly pay. No doubt these recommendations are judicious, and unless they are carried out the society cannot be restored to a healthy financial position.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/ESD18731113.2.17

Bibliographic details
Ngā taipitopito pukapuka

Evening Star, Issue 3349, 13 November 1873, Page 3

Word count
Tapeke kupu
735

FRIENDLY SOCIETIES. Evening Star, Issue 3349, 13 November 1873, Page 3

FRIENDLY SOCIETIES. Evening Star, Issue 3349, 13 November 1873, Page 3

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