AUSTRALIAN MUTUAL PROVIDENT SOCIETY.

Nelson Evening Mail, Volume IX, Issue 119, 20 May 1874, Page 2

AUSTRALIAN MUTUAL PROVIDENT SOCIETY.

We must congratulate tha members of this Society, of whom we understand there are a considerable number in this province, upon its continued wonderful prosperity as exhibited by the laat statement of accounts for tbe ten months from Ist March to 3 1st December, 1873, a copy of which haa been sent to us, and which is prepared in the forms prescribed by the English " Life Assurance Company's Act, 1870," and adopted by the General Assembly in its last session. It appears that although the Directors exercised their usual care in the selection of the lives, and there were 1076 proposals for £542,300 either declined or not completed during the ten months, yet 2435 new policies were issued for £873,475, the annual premiums payable on which were £31,205, and tbe single payments £6579, in all £37,784; tho proportions for ten months of the previous jear being, now policies £836,029, annual premiums £30,389, Bingle premiums £4838, total premiums £35,227; so that there is a comparative increase of £37,446 in new policies (or at the rate of £44,935 per annum), and of £2557 in the new premium income, or equal to £3068 per annum. This is highly satisfactory as to the new business. The interest earned on the Society's funds during tbe ten months has been £57,902, whilst the proportion of the previous year was only £48,351. being an increase nt the rate of £11,461 per annum. Tbe claims by death, endowment policies matured, and annuities paid during the period under review amounted to only £56,661, which presents us with the unwonted fact that an office which has now completed its twenty-fifth year has paid all its claims, &c, from its interest alone, and yet has £1241 to spare. On comparing this with lho twenty-fifih annual report of the " Gresbam " of London, we find the latter with 25,495 policies paid £192,045 for claims, &c, while the interest earned was only £79,073; so that £112,972, or close on 150 per cent, of the interest, had to bo taken from its premium income to satisfy the claims — in other words, had the "Australian Mutual " lost iv the same ratio it would have had to pay on its 17,511 policies during the ten months£lo9,7s3 instead of £56,661, or about 49 per cent. more. The expenses for the ten months, including commissions, aud £3460, medical fees, together with some very heavy charges for printing, Ac , connected with the recent alterations of the bye-laws, were £33,441, or ouly £12 13s 6d per cent, of the income. After writing off the whole of the cost of tbe furniture at tbe head office and branches, together with some part of the cost of the principal office premises (in all £3639), and £2881 for " losses on investments, &c," tbe amount added to the reserves during the ten months was £160,356, or at tho rate of £192,427 per annum, against £168,181 in the previous yoar. It must be borne in miod that the small sum written off for " losses on investments " has been covered six times over by profits realised from the same source during the quinquennium, viz., £15,861 in 1871, and £1525 in 1872. Tbe accumulated funds now •amount to the large sum of £1,293,362, whilst the annual income has increased from £282,672 in 1873 to £316,667. To us New Zealanders, the fact that the Society has increased its investments in New Zealand Government Debentures during tbe ten months from £65,230 to £173,705 is very satisfactory, besides which, it makes the Society, in more senses than one, a "New Zealand institution." We notice that the quinquennial investigation is now being made, and is expected to be completed in August, and the certificates of bonus in about six weeks ufterwards. We bear the result of this is expected to Bhow a very large amount of profit for division amongst the members, protably over £200,000, although the new stringent table of the Society of Actuaries is to be used in the valuation of the policies. That such results should be shown by an institution commenced without a farthing of capital and in a very small way only a quarter of a century ago, is highly creditable to all concerned «n its management, and must be very satisfactory to its numerous members, amongst whom alone this large amount of profit haß to be divided.

The following from tho San Francisco Market Review will enable persons to realise the extent of tbo operations of some of the Californiau , wheat growers: — "H. J. Glen, an enterprising . farmer of Colusa County^ will put in on his ' little' farm ,n£ar Jacinto,; this year, 40,000 acres of wheat, from .which we m^ke the following estimate : — At 25 bushels per acre-— which is not a high estimate for the prospect of the present season — the yield will be 1,000,000 bushels or 60,000,0001b5. At 1371bs to the sack it will require 430,000 sacks. At 300 tons per barge load on tbe Sacremento river, it will take one steamer two years to deliver the wheat in San Francisco, allowing one trip per week ; and it will take 20 ships of 1800 tons each to deliver it in England. But the most important calculation yet remains to be made, especially to Mr Glen, and that is the net profit from the 1,000,000 dollars that the wheat will hriqg him on tbe ranch at one dollar per bushel."