WHAT THE GOVERNMENT HAS DONE.

Horowhenua Chronicle, 19 July 1910, Page 4

WHAT THE GOVERNMENT HAS DONE.

INTERKSTING REPORT REVIEWED. A mass of interesting facts and figures denting with the Friendly Societies of Njwv Zealand is presented by Mr 11. E. Hayes, the Registrar of Friendly Societies, in h : s annual report to the Miniis-tor of Finance. He deals, at length with the passing of the amending Friendly Societies Act tliat came into operation in January tt-lils year, and explains in an interesting manner the most important sections of the Act. After dealing with that section which was designed as a first step towards an improved system of audit, the Registrar points out that an important check against ill-eon-siderocl amendments of rules is im posed by section 30. It has come under notice that, serious final , .. -•■\\ difficulties have been created through the alteration of rules to reduce members' contributions or inerea ■■■■.' their benefits , without any provisioi being made to meet the extra demands ou the funds, and in some cases the alteration has been I mit by delegates in utter iguorancv ot the effects of itheir action. This ne.v section is the more important a.s it will insure the societies :.ore f.e(|Uently obtaining the advice of the Actuary in carrying «uvt their financial reforms. Under tne Amending Act there is a new v.i.l oqmvsS power given to societies •)•• •"smclie?to remove a 'trustee ly vsol 'tion ; and trustees are prohibiLcl from holding the additional ofTu-e of v+vretary, treasurer, or .uJitor Tl:«> question of the better investment of funds, whereby monies ad'/.-n>.e'd in on mortgage shall not ex"vd a fixed proportion of the* value (f the securities is an EXTREMELY LMPOU i 1 vXT matter, and it is amply dealt with under the Act. Section 49 treats with it'lle same subject, and the section further enacts that any benefit funds invested in the purchase o? hind, buildings, or halls must receive at least 4 per cent, interest in return ; and if this rate is not payable out of the investment itself the. Management Fund must make good the shortage. No branch can invest its funds in this mode without the consent of the central body. It is unnecessary/ perhaps, to repeat the warnings against hall-investments, but the operation of this section of the Act should have the effect of bringing before lodges more sharply the responsibilities they incur by placing benefit funds in this form of investment. The law relating to payments on death is slightly amended in regard to the proof .required in certain cases. ■• "Where the usual certificate is not available the Registrar of Friendly Societies is empowered, on being satisfied of the fact of death, to grant an exemption from the production of the usual certificate. With regard to the registration of societies and branches, it may be stated that there wow registered during the year 32 now branches inC'lutliliK seven lodges of the Manchester Unity of Independent OcklfolImvs; 12 locWs of tlie Independent Order of Oddfellows: 5 Courts of the Aliment Order of Foresters, and 5 lodges of the United Ancient ORDER OF DR.TJTDS. The Registrar's remarks on valuation will be read with interest by members of Friendly Societies in Levin and district, because thero is every reason to believe that his criticism of those branches which delay in forwarding data does not apply to them, aiuHhorefore redounds to the cmdit of rtho local lodges, tie sa,ys on this question:—"! hope that secretaries will in future send their statistics in as soon as they roociiva the forms, in ordor to insure compliance with rthe new Act, which legalises only the actuarial valuation carried out in this office. The desirability of more wicloly circulating valuation reports and statistics among .the members of societies generally has come under my notice on several occasions. It frequently happens that the valuer's report, after its receipt by the secretary, gets no f.wither than that officer "or his immediate confreres, and, as there was only the one copy supplied, no other result was to be expected, heveral societies, of course, print tlie reports and supply a copy to all members; but these, as a rule, are favourable reports. The valuation reports, and thein neeompanvinn statements and returns, take a very great deal of preparation, and much expert knowledge is expended on their compilation, All members should have the opportunity of seeing the report of their

SOCIETY AND LODGE, as by this means alone can they learn- something of the principles governing the financial security of their organisations, and so bo enabled to intelligently apply that knowledge to, the task of carrying out the reforms neeceeary for the improvement and progress of their orders. On tho completion of a valuation the practice is now adopted oi preparing a sufficient number or copies of tho report, *nd forwarding them to the society for distribution among a wider circle ot .members than- hitherto — a change should prove of great boJient to societies." . Th? Registrar points out that in Ins report for the year 1908 he tlrmv attention to the possibilities awaiting Iriendly Societies in the direction of attracting members bv means ot increased funeral beiraMs and he expresses great satisfaction at finding that ithe lead given them has been followed by so many more societies, who have during the past twelve months adopted .increased funeral -benefits on terms tluut "should bring thtam an increasing membership. It is the more grat'ifyung to record that theab l soßiehes tare estaiblfehinsr their benefits on a sound and safe basis, with due provision for an actuanal reserve." Some figures dealing with the number of members of the various lodges ahbw the steady growth of tTi© Friendly Societies in the dominion. In 1900 the mimberof lodges tabulated was 443. In 1909 the number had risen to oG7. f During itihat periwl the membership increased from 40.257to 64,428, while the ftmds rose from £766.480 to £1,266,297 £ 1909 \m 10,381, equal to 17.14 per

100 minubors at risk. Tlie sickness experienced during 1909 was 8(5,558 weeks 3 days, equal to 8 weeks 2 days per sick member, and 1 week 3 days for each .member at risk. The actuary also presents a repork on the general subject, and on tho question- of the financial position of the societies •points out that during the present year "there has in most (vises been an improvement since the previous valuation, due largely to increased intero.st-yit'ld.s. hi this and certain other directions societies can do .a great deal to improve the r positions. Tn otfier eases 1 ;t tr> say T find that UNSOUND SCHEMES have boon entered into without propec ("unsideli'at'ion. The by one society of the notorious equal levy or assessment scheme oi life insurance in a militant forn, which at one time threatened to set up a competition amongst tlu .sc>;;i!et/iL\s in unsound .s<<liHimis, 'li'is no doubt been largely responsible for the financial set-back shown by another large society,' whidh was in duced to considerably increase its I funeral benelilt on an inade.;iiiiti addition to menubers' contibitions. .Fortunately the spread ef this downward competition ai>pe*vt to have been checked." The Registrar includes in an appendix a very, valuable rppo *t on itke Workers' Compulsory fnsiir anco Acts of Germany. He <"ivides and sub-divides the various parts of the. system, and funiuh ?s each sectiion .with luminous i;oK« and explanatory At the preseiiit time the Brituii Governmenit is considering the \\pole (|UtHtioii of !|ta:te inisuran' , e. fl.'u 1 as their proposals appear to be modelled on the German systfin, wliich is reganded genera'ly as the most equitable one preva "uig, some facts in connection with it deserve a platre in this artic'i , . The German system is. div'defi into three great parts, und ;r the following hoading:—First, fie Sickness Assurance Act, 1883, which provides an allowance for all Mikness in blie. first stages, on;, wbatever cause, and ijilso- praviilAi for medical attendance, medi :■: n>. and surgical appliances. Second,, the Accident Insurance Act, ISBS, ]nvivides for allowances after t!ie fist stage for sickness caused Uu'dii/h trade injury, and for compeii.suion in case of itotal or partial <!•.•.'tl lenient or death from the same ca-.iM , . It is practically the Workers' Compensation Act with some <li!i»> ent features to be afterwards rtff>i''<d to, and no doubb this Act w. ■ (■<•;.'- sidered when .tho Home niiT..i»>v:ti»»s wese framing the lCnglish '■■ct of 1897, of which our Xew Zeaiaiv! Act is a copy. Third, the lnv-!il-ity of Infirmity Assurance and OLD-AGE PENSIONS A(it, 1889, provides an allowaii'. , '. , for peiunaiient incapacity for wo i\ from any cause (except si' 1 ' .s

caused by trade accident), an:l .v.o for an allowance at age 70 '• the recipient be able to earn a living or not. In general, the thre ■ .-I't.s operate as follows: If a workman ■falls si;-k, whether from acci l ,v nt or otherwise, be ipso facto beco kvs entitled to the minimum benefits of the Sickness Assurance Act — that is, immediate medical attendance, and « varying period >*r • ,icallowance. If his incapacity !;tf't longer than tlurteen wee V;-:, lie \mivs iMidor the Accident ;..ss ir.a.nce benefits, provided his "». j'lry wa« the result of a trade acc : l>nt. If ho becomes a permanent •rv.i'u 1 . from any cause not trade aec-'.'iit, he conu's iindep the Infirmity .•*.«-■ sii-rance and Old-age Pensions A. ,, ; - and iji any ca.se is oii.titled in a nension in his old age. The whole rejwrt. will bo rei:l with interest bv everv nieni'ber ol Friendly Societies andJiy mill thaw w.lio nre ooii-oriied with the gone , •! well beiiifj; nf the country." The f.-W.s and figures are nvivsliailed with liK-idiity. and every effort li-i.* he-e iiniade to avoid tp:'.lmicalitie« where possible, mid to ensure cirarnecs and unainbigiiity.