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M.U.1.0. ODDFELLOWS’

To the Editor. _ Sir, —Daring the last Parliamentary session tbe subject of the position of friendly societies was debated, with the result that inquiry be instituted during tbe recess, the result of the report of the Royal Commisssion on friendly societies in Great Britain b nng the principil motive for instituting inquiry into kindred so ieties here. The above society is undoubtedly the standard of friendly socu-tivs j it numbers about 481,C00 members and possesses a capi til of about L 3,000,000. As the valuilion of the assets and liabilities of the Home lodges, which has recently been completed, brings cut a considerable deficiency, some information as to the mann&r in which this de- . ficiency is arrived at may be interesting to Odfellows in Otago, and dispel the doubts that some are prone to entertain of our ability, under existing arrangements, to meet our prospective engagements. Only the assets and liabilities of those lodges in Great Britain, Ireland, and the Channel Islands have bsen ascertained. The lodges valued number 3,536, andgthe liabilities of 410,403 and the assets of 376,580 members are given * this leaves 33.823 members whose assets are not given. These lodges possess a capital of L2,5p8,735. The average rate of interest obtained for the ug ? qf this capital ig 34 per cent.; but the basis fixed for ascertaining { heir position is 3 per cent., and this latter rate bring out a deficiency of .L 1,343,446 • but if the capital be operated on at 3i per cent., it sweeps away L 426.456 of the dtflcicncy, and reduces the annual deficiency of the Unity from L 40.520 to L 27.509. T he valuation has been arrived at upon strict acturial principles, no element entering into the calculation that is not provided for by lodge rules ; and in theory this may be correct, but experience shows that other elements do exist which, had they entered into the calculation, must have considerably affected the liabilities, to the Society’s apparept advantage. That these elements were not lost gight of, the following extracts from an O. F. quarterly report \yill show Chairman of the Royal Commission to Mr Samuel Daynes: “When you say that a lodge has a deficiency, do you mean that, leaving out of account the introduction of new members, and the withdrawals and sec -ssions, you consider that it would not be able to meet its engagements ’—Assuming that we had no S’cesslonSj sifpply valuing the assets and liabilities of the Society, one would not balance the otbey. But, making allowance for secessions, would that alter tup case ? It would materially.” Jvl r Daynes might well make such an emphatic reply, knowing as he did that the rate of secessions is about three per cent. The following will illustrate the importance of this element“ The present value of a sick benefit for age twenty, without secessions considered, is L 32 2s 10.1, but with the element of secessions considered, it is only LIS I7s 6d, being a difference of LI6 5s 4d. As the member advances in years, the secessions aud after-life become less, which considerably affects the value; when at age fifty, the diffeience is only L2 11s.” Again ; “ Can you state, in general terms, what has been the result of the valuation with regard to most ot those lodges’—With regard to the old lodges established in Lancashire and Derbyshire it would be disastrous.” VN hen you say the result would be disastrous with regard to the old Lodges, do you mean that the Lodges are in danger practically of failing to meet their engagements, or that looking at the matter from a strict acturial point of view, you would say that supposing no new membsrs were admitted’ and no changes were made, they would not be able to meet their engagements? The latter is the case. Speaking of one district within my own experience, there would be a surplus at the valuation of L 19.000, and that district contains 9,000 members.” The County of Lancashire contains 60,4‘29 memf a “ d th f, de ? cieuc T those members is . J4, so that Lancashire,comprisingabout , ' . members valued, represents about 2o per cent, of the deficiency: and it cannot even be said of these that they arc ‘ m danger practically of failing to meet their engagements.” The district of which !r Daynes speaks as giving such a magnificent surplus at the valuation must be the Norwich District, which contains 8,636 members, with a prospective surplus of L 18,792. The capital of this district is L94,191 f being about LlO 18s per member ;

and it must be borne in mind that this capital is supposed to be improved at the small rate of 3 per cent. In comparing capital with members, the Norwich District is the only district that can bo conveniently compared with the District of Otago. The last returns of the Otago District given 1,339 members, and a capital of L 12,718, being about L 9 Is per member, and I think I am correct in saying that there is none e£ this money invested at a less rato than G per cent. I believe it is all placed at from Gto 9per cent. There is also a greater percentage of secessions in the Colony, and these secessions are certainly more profitable, from the fact that members at Home pay a graduated scale of contributions according to age, while members here pay a uniform rate after entry ; the initiation fee here being graduated according to age, instead of the contribution ; so that a member seceding here profits considerably more to the benefit of the Society than a member would at Horae. However wrong this may be in principle, it is certainly more profitable in practice. It is very evident, from a comparison of this District nvith the wealthiest districts at Home, that there is not the leasts necessity for rushing into expense in order to ascertain our financial position. From the valuable tables thatjhave been prepared by Mr Ratcliffe for tbe benefit of the Unity, the operation of valuing would be simple, but the labor and expense great. The position of Oddfellowship in Otago (and the comparison will apply to the whole of New Zealand), when compared with Oddfellowship at Home, may be briefly stated thus:—We have a capital, members and capital compared, nearly equal to the wealthiest districts at Home ; we have ready facilities for investing that capital at double their rate of interest; we have a greater percentage of secessions, and those secessions much more profitable ; and we have a membership whose average age is, in all probability, much less. The benefit and protection the Society are likely to derive from the Government inquiry that is to be iustituted during the recess may be gathered from the following :—Some time ago a member of one of the Lodges in this District died intestate, leaving no legal representative ; after his funeral and other incidental expenses were met, there remained a small unexpended balance—about 30s; and for this balance the Curator of Intestate Estates made application ; no doubt with a view of assisting the Lodge in fulfilling its charitable functions The members of this District will, instead of spending their means in ascertaining their individual position, better consult their interest by fixing the remuneration of their worthy 0.8. at such a figure as would encourage him to continue and extend the valuable tabulated returns he has initiated during his term of office. Should it at some future date be deemed necessary to ascertain our financial position, these tabulated returns may be consulted with great advantage in forming a basis of calculation which may prove to be better adapted to our requirements than the Home base —I am, &c., _ n Oddjffllow. Dunedm, September 22.

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https://paperspast.natlib.govt.nz/newspapers/ESD18740922.2.12.4

Bibliographic details
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Evening Star, Issue 3614, 22 September 1874, Page 2

Word count
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1,293

M.U.I.O. ODDFELLOWS’ Evening Star, Issue 3614, 22 September 1874, Page 2

M.U.I.O. ODDFELLOWS’ Evening Star, Issue 3614, 22 September 1874, Page 2

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