REPORT OF THE REGISTAR OF FRIENDLY SOCIETIES.

Nelson Evening Mail, Volume XV, Issue 215, 10 September 1880, Page 4

REPORT OF THE REGISTAR OF FRIENDLY SOCIETIES.

In his third annual report the Reeisjtrar of iFriendly Societies; in' New Zeajlaod points'. out ; that Jn many oases ..jegisttation has been rendered impossif ble th'fough the' failure on the part of the isocietiea io Trame^'the beceesar^ s rules? f This specially, applies to 22 tiraiiohes of the Rechabite Order, Wei r lineftoo, and the Registrar ; remarks :— «' lt is to be regretted that so large a ; number of ! br&riches should, on account of a difficulty whioh ■ they could sp eaeilyj, get? over, .shut themselves! out from the benefits of registration. Asj however, there is apparently a strong objection on their part to make rules,; L ,it is I worth; consideration whether, by a| v slight modification of the Act, this objeotion" could be met." The Registrar reports that, " except in' regard to twq of itn provisions, the Amendment Act •of 1878 has so far worked very smoothly •»nd well. The information required, has been in general furnished. : Io two particulars only has special reluctance been shown in a few instances— the 1 furnishing of the names- of members, and the furnishing of information reev pecting the wives of memberß." There is an inproyement generally in the system on which the affairs of Friendly Societies are conducted, especially in the direction of their solvency, as effected by the rates of the contributions required from members, but these last Bre pronounced sto be still too low for safety, and to need further modification to avert danger of possible deficiency. v This 4s Especially the case in' respect to the sick allowance and the: -deferred' annuities granted to aged members, in the, practice of payiog 'medical expenses, out of Sickness and; Funeral Funds, and in crediting too large a portion of the interest earned to the Management Fund. It is pointed out that this last renders the chances equal of-a surplus or a deficiency, but that while the former would be satisfactbrily, the latter would be,- so Serious a disaster that it is quite inadmissable to leave the tw.o results equally "^rbbtiblei The Registrar Bays "the rate of contribution, which has hitherto obtained is one which all aotuaries are %greed in ' regarding; as, totally inadequate to provide the benefits ■promised,". He further adds, in refer; ence to sick allowance and deferred annuities, that (1) there is reason to believe the mortality experienced ■in ibis colony is lighter than in England, This will pro tanto, increase the , liability .of the annuity fund as a larger number of members will Burvive to claim tbe benefit, and they will claim it for a longer time. (2) If an annuity is established, sick pay should, cease from the time of its commencement. (3) It is very desirable that the superannuatipn risk should be spread over the whole 1 district, as the funeral liability already: is; the liability for .payments' in all cases of protracted Bicktfesg : (Bay after the first six mpntbs of si(|kn^Bs) should be spread over tbe entire districts of the Ancient Order of Foresters in England.' A few cases of chronic sickness,. even^ Where the contributions would have been sufficient for an average experience, will soon exhaust Ihe funds of a small lodge. The liability for payment in acute sickness can be borne with 1 less danger by i a small society, as it. isnot necessary to have co largea number of members to insure a fair overage. ' x , (4) Members may be'stkrtled at the magnitude of the contributions they will be required to

7 pay; " but it Is imperative that anjp 'fontiiiy ftfhd stariecl , must? be ri'sb" ,-jare ifchaV 'failure Jo fulHUa^; objections would be an* absolute, or, at leas;, a mbral impossibility.*' It is recoir - rmendedj therefore; ir that presenti mßm|- -. hers -should for the future pay the' rate ' of contribution which they ,' ! ought '"to : have paid during ' tl^e whole tertn of their membership. 2nd. That memberp see the funds of the lodge are reguiarHr invested at the highest possible rate of interest consistent with perfeiJtsofetyj. 3rd. That the amount standing? to the credit of the Management Fund be placed to the credit of the Sick and Funeral Fund. 4th. That the amount owing by members to the lodge be kept down to the' lowest possible point, thai strictest economy be practised -in ihe management, and that caution should be exercised in the admission; of mcmi bers. He also recommends that newf members should contribute 1 according* to the scale calculated by a competent actuary, and issued officially.^ If -these recommendations are carried) out there is yet hope that all- the members wil receive the full amount of benefiu promised on, initiation, These important suggestions doubtless will receive due attention, for as the Registrar, remarks: — "Considering the magnitude of the operations of the friendly societes in this colony, receiving con-j tribuiions from over 20,000 members,! , it is a matter of the greatest importance! to the Slate that the contributions byj members of these sboielies should be: adequate, to meet the promised benefits;! as a failure to do so would involve' much misery, especially, among the aged members who are depending on their sick-pay in case of infirmity and inability to work, and would impose upon the State or upon society the ad-! ditional duty of supporting thesa aged; -people." ' "" ' ' " j ' ' * ' it " .' , v ' " "' • i