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Gisborne Times, Volume XXII, Issue 1756, 23 May 1906, Page 4

Oontorenco lo apply to tho wLolo colony. Mr Lyeuar said ibat it was only in this district, and onn or two othora. euoh ob Taranaki and Wanganui, tbnV there waa unoccupied native land. Mr Watson : Well, aek tho Nutivo Miniator to specially übo bin powors throughout this dialr’ot. Tbo motion as abovo waa tbon put and oarriod.

MUTUAL FIRE INSURANCE. On bohalf of tho Now Zealand Farmers' Union Mr A. J. MoOurdy wrote- in roply to tho Povorty Bay Exooutivo’s lottor regarding mutual inauranoo, stating that with rognrd to tho businoas in Now Zooland there was no monns of gotting an actuarial opinion, as tho nmonnt of farmors’ risk" availablo (Farmers' Union members) wo" not nsoortainablo, and on tho othor hand tho amount of Farmer*' Union members' firo loesos was similarly unobtainable. Experionoo olono could give a guido ns to tho safety or otherwise of Union propositions in tho ma'ter of mutual firo insurance. So far, up to latest figures to hand tho amount at risk in tho four mutual was £213,872, and on tbis amouuk of polioios only-£8 (in o solitary) had boon paid in claims. Tho amouut of risk did not indicate the total amount of insurance applied for, ns Mr McCurdy was told by tho Colonial Prosidont that in his Mutual Association (Wellington district) they had over £IOO,OOO which would bo handed ii as soon as oxisting policies ran out. Mr Boddie, Prosidont of Toranaki, gavo him similar information rolativo to tho Tarn noki Mutual—over £75 000 of risk war awaiting existing policies to rxpiro before being taken up by his Mutual. Otago and Hawke’s Bay figures wore not available, but they could not bo loss than Wellington and Taranaki. Tbis meant that there would bo n further nmount of £350,000 of risk to issuo policies for, nnd on which there had been no loss during tbo past year. Praotioally there was £578,000 of cover and odlv one olaim of £8 sicoo the Mutuals started, Mr MoCurdy oxpeoted an opinion from Dr Howard Huntor, the Canadian Inepeotor-Qeneral of Insurance, to whom he had forwarded copies of tbo N.Z. Mutual’s balanoa sheet for an expression of opinion. With regard to the Canadian system, and comparison with New Zealand, full details would be found in tbo Farmers' Advooate (oepios onoiosed), which, -were compiled by Mr MoOurdy from Canadian document'. Mr Watson said they bad been talkiog about mutual fire insurance for a good many years. They bad written to tho PalmerstQn people originally, asking to be allowed to join with them. After diBOUBBton tho proposal wos found hardly feasible, and the feet of this reply being so long deloyed enabled them to judge how difficult it was to got the information to go upon. In February lesS at the request of the president, he had gone down to Napier, and attended a meeting when the Hawke's Bay Mutual was just about to start business ; there were a few details to arrange. The Executive had decided to employ an aoluary, but it was found practically impossible to get opinions on the subject It was not like ordinary insurance where they could take the averages to guide them. They had to take in the personal element, whioh did not occur in tho law of averages. He thought it should be an iostruotion to tho incoming Exeoutivo tn oany to a head the sobeme wbioh they had had so loDg before them by arranging with the Hawke’s Bay Executive to appoint, an official agent here through whom business oould be transacted, and anyone having insurance oou'd transact it through the Hawke’s Bay Mutual Association. There was no reason why an agent should Dot be appointed in Gisborne. Provided there was suflioieDt business forthcoming, Hawke’s Boy was prepared to give Poverty Bay a representative on tbo Board of Directors. He did not think it any use, in referenoe to Mr McCurdy’s letter, expeoting on actuarial opinion, because none would bo forthcoming. They would have to take the Canadian experience, which pointed to the thing being sbsolutcly sound, 11 and the only way we oan prove it,” added Mr WatsoD, "is to put our hands in our pockets and run the risk.” It seems to me qu'to sound. Tbero was nearly a quarter of a mil ion irsuranco at present with a loss of £B, and surely that was sound enough busimss for anybody. He moved that it be an instruction to the inoomiDg Executive to arrange at onoe with tho Hawke’s Bay Mutual for business to be extended hero. Mr Clayton seoonded the motion. He believed they were all unanimously in favor of the proposal for mutual fire insurance. Mr Watson had gone fully into the matter, almost making a . hobby of it. He thought they had all read the information in the Farmers’ Union Advoeate. The Taranaki Mutual had been unexpectedly successful, aDd to join in with Hawke’s Bay was a safe thing to do. They should give definite instructions to the Executive. Mr Waison : Of course, it simply rests with the individual whethep he likes to insure with his fellow farfnerp or oontinue with the companies. Mr Lysnar said he would not support tho resolution. If they were gomg in for this they wanted a scheme on businoas linep, and lire proposal did not show tboy could make any saving. Unless an actuarial opinion could be got to show that after the first three years they oould get a substantial reduction in premiums, there was no use goiDg on with it. He was as anxious as anyone to see a reduction in insurance. It was no good Mr MoOurdy telling them ao aotuarial opinion could nos be got ; the Executive oould get one for a £lO 10s fee, Tig Piesident: They say there is no data in New Zealand to get it from. Mr Lysnar : Of course there is. The President : Where would you get

Mr Lysnar : They would get it ; where did they obtain the data for the annuity to harbor employees scheme ? The President : They have life tables to woiif on, but there is no suph information regarding farm property. Mr Lysnsr repeated that the necfosary information eou’d f be obtained. They could not claim, the Hawke’s Bay figures to be a Buffioient test. Mr Clayton said they would be joining in a i£350,000 scheme. They were willing; to join and the others to aocept them, and it was cnly westing time debating the question. He was oppoeed to giving away a fee of ten guineas for a report that would put them no further ahead. They had get the espeiieoqe of other e ntree ; they yy'ero'noticing to save- much at presept but hoped to eavle more later on,! ’ The President:- This movement has already brought down insurance rates. Mr Lysnar ; I understood tho Executive had undertaken to get that opinion. Mr Clayton said they had decided so at first, but tho Colonial Executive oou'd get no information. That letter had only arrived a short time baok, and had been held over for the Conference. Mr Hegar.ty : Did Hawke’s Bay have pn actuary's opini n ? Mr Clayton : Wo. Mr Elliott; It is a great success in Canada. Mr WetsoD emphasised tho satisfactory experience of Canada. The local sobome worked out to 7s 9d percent per anpum for three years, and if no losses were sustained the premiums could be out dswnby a tremendous extent and still be safe. By belpiDg tbe Mnlual forward they were brooming tbeir own insurers. In Canada they could do iosuranoe at somethieg like 4i per oeDt, whioh included the risk of lightning, end tbere was no reason why we should not be able to do it for 5s and have a handsome reserve. It seemed to him that after the Canadian and New Zealand experience a big reduotion of premiums must follow. There was no object in building np uoncoeesarily large reserves ; a’l surplus premiums by law had to go to a reserve fund, therefore premiums must in the natural course oome down. Every policyholder would be a safeguard against taking unfair ritk*, as each would be sure to look after the Mutual interest. In Hawke’s Bay the inspection of risks was in tbe hands of policyholders, Mr Lysnar moved as an amendment that the question be left to the Exeoutive. Mr Holden t I will aeppnd that; let ns got through the business, Mr Elliott: That doe 3 not prevent us insuring where we like ? Mr Clayton: No. Ooly the mover and seconder voted for the amendment, and ■ the motion was carried. The meeting concluded with a vote cf fibßrks to tho President,