The New Zealand Times (PUBLISHED DAILY.) MONDAY, SEPTEMBER 2, 1878.

New Zealand Times, Volume XXXIII, Issue 5439, 2 September 1878, Page 2

The New Zealand Times (PUBLISHED DAILY.) MONDAY, SEPTEMBER 2, 1878.

The first .annual report by the Registrar of Friendly Societies under the Act of 1877 has been laid before. Parliament and printed. As the Act did not come into operation until the first of January in this year the report could hardly be expected to be rich in the information which is desired by those who are directly interested in the subject as members of such societies, or by those who, not being so interested, regard them as institutions of great value from the social point of view. We were therefore not unprepared to find the report to be chiefly a description of the steps of the process by which the Act was to be brought into operation. In so far the document is satisfactory. It shows that the department has been thoroughly awakened to a sense of its duties to the societies and to the public, and that tho machinery required by the law has been carefully put together and set in motion. It must not be expected to work quite smoothly, or without some friction at first; but, in alittle time, by disseminating instruction and with steady and judicious persistence and carefulness on the part of tho Registrar, all may bo made to go well. As early as 1860 there was legislation in this colony on the subject of Friendly Societies, and in 18(37 the law was amended ; but, practically, it may bo said that up to the year 1874, in so far as the official administration was concerned, the law was in abeyance. Only a few of the societies even amongst those which were registered furnished any returns, and it was discovered that the causes of nnsoundness which threatened the stability of cognate institutions in England, namely, insufficient or unequal contributions, and the diversion of funds contributed for specified purposes to defraying charges which should be met by special levies—existed in this colony in an exaggerated form. Of course there was dissatisfaction when an attempt was made to enforce the provisions of the law, and the lost ground was not regained without a straggle, which, indeed, is not completely ended even yet. But tho Government found allies amongst the best men of the societies in their efforts at reform, and amongst those tho names of Professor Black and Mr. Leslie, of Dunedin, deserve to be honored by every member of every Friendly Society in New Zoa--1 land.

There are, it appears, 12G registered friendly societies in New Zealand, and of these 103 had, at the date of the report, August 15th ult., furnished the necessary returns; others wore, however, said to have their returns in course of preparation. We are glad to note the statement of the Registrar that there has been a marked improvement in the quality of the returns this year, a fact which is attributed to the careful examination of last year’s returns made bi 7 Mr. G-. Knight, the Government Actuary, and to the information and instruction furnished by him. It will be a matter of regrot if any avoidable delay should occur in the compilation and publication of the statistical results of these annual returns.

There are a creat many friendly societies which, from one cause or other, remain unregistered. No new registrations of societies have been effected in this year, and, in his report, the Registrar has prepared a list, which we reprint, of the Advantages accruing to a soci'ly by registration, no fee being payable on the registry of any Jricndly, benevolent, or cattle insurance society, or working vucris club

1. It can hold, purchase, or take on lease. In tho names Of the trustees for tho time being, any land, and can similarly hold other kinds of property, all such land and property vesting in any succeeding trustees immediately upon and as a consequence of their appointment. ...... 2. All legal proceedings can bo carried on in the names of the trustees. 3. A registered society has a remedy on summary conviction whenever any person—(l.) Obtdna possession of any of its property by false representation or Imposition: (2,1 Having possession of any of its property, withholds or misapplies it; (3. Wilfully applies any part of such property to purposes other than those expressed or directed by the rules, and authorised by the act: the penalty for either of these offences being a fine not exceeding £SO and costs, and In default er puyment imprisonment, with or without hard labor, for any term not exceeding six months. 4. The treasurer and other officers of tho society, or persons acting in such c paclty, arc constituted servants of tho trustees with'n the meaning of the l.urceny Act, 1807, and in cases of larceny and embezzlement can be proceeded against as in the case of larceny or embezzlement by a clerk or servant. ft. If any officer of the society dies, or becomes bankrupt or insolvent, or If an execution is issued against him whilst ho has money or property of tho eooicty in his possession by virtue of his office, tho trustees of the society are entitled to claim such money or property in preference to any other credifc°6. If tho society has funds, debentures, securities, or moneys i« tho names of trustees, and a trustee is absent from How Zealand., becomes bankrupt, compounds with his creditors, becomes a lunatic, dies, or has been removed from his office of trustee, or if It is unknown whether ho is alive or dead, a registered society. instead of having to apply i o the Supremo Court or to tako any other proceedings which it would have to take if unregistered, can have such funds, debentures. &c„ transferred by direction of tho Registrar, on payment of a fee of £l. ' 7 The documents of the society arc, f *r tho most part, free from stamp duty; and no customs duty is, chargeable on the regalia, etc., of a registered soC *s*The society can admit members under twentyone /but above sixteen), and take binding receipts from them which would otherwise bo of no effect, o registered frimdly society a certificate of ♦bn birth or death of a member, or of any other perL h S ect or to Insured with it, costs only Is. 10 If » registered vxicty invests money on mort- , ouch mortgager can l;o "isd,urged by a mere indorsed receipt without any Bscouveyancc. 11. A registered society ha* the advantage of depositing money to any amount , XostOffic* Savings Bank in the names of tty frufffccw

as such—a privilege denies ,to unregistered societies, I as deposits by tlVeir trustees can only be received m ' tlie deposits of the individuals, and .ire subject to tlio ordinary limitation as to amounts at interest, the society not being recognised by the authorities. 12. Its ofUcers are legally bound to render account, and give up all money or property in limit possession on demand or notice, and may be compelled by order of a Resident Magistrate’s Court to do so. 13. Disputes may bo legally settled according to the societies’ owi rules, or. if no decision is mado within forty days after a decision is applied for, by a Resident Magistrate’s Court; or, if both parlies desire it, and the rules do not forbid, by the Registrar of Friendly Societies. 14. Members of registered friendly societies have the privilege of legally insuring money on the deaths of their wives and children, for their funeral expenses, without having an insurable interest in their lives (such insurances are void by Act of the Imperial Parliament, if effected with an unregistered society). 15. Members of registeved societies may (unless in benevolent societies or working men’s clubs) dispose at death of sums payable by the society not exceeding £SO, by written nomination, without a will; and this nomination may be mado by youths of sixteen, who cannot make a will until they are twenty-one. 16. Where there is no will and no nomination the trustees may distribute sums under £SO without letters of administration being taken out (a person who should do so in any other case would make himself liable for the debts of the deceased). 17. The society is entitled, without being in any way compelled to do so, to call in the service of public auditors for the auditing of it s accounts, and of public valuers for the valuation of i'a assets aud liabilities, at fixed rat s of fees. 18. The rules and other important documents relating to it are placed on record In a public office, from whence authentic copies can bo obtained, which are evidence in a court of justice.

Although the Friendly Societies’ Act, 1877, has been in operation only eight months, the Registrar appears, to have considered that it may be amended in certain particulars, and, accordingly, a Bill for that purpose has been introduced by the Government in tho Legislative Council, and passed there without amendment. [A reprint of the Bill will be found in another column.] As a rule, the official mind is prone to tho tinkering process in legislation, and when a technical difficulty—in itself of lio great consequence—presents itself, which might be got over by a little effort, or be very safely disregarded altogether, the normal resource is a “ little Bill,” and tho parliamentary draftsman gets an order to prepare one. The cloud of Amending Acts which every year is thus blown, has frequently its source rather in the idleness of the authors and constructors, than in any real necessity for such legislation. The Friendly Societies’ Act Amendment Act, 1878, appears to belong properly to this category. It seems to us that with the power already conferred by the law upon the Governor-in-Ooi noil and upon the Registrar of Friendly Societies, every one of the technical and formal results at which the Bill aims can be easily attained, and that, in regard to clause 5 of the Bill, the substantial alteration affecting the quinquennial valuation proposed to, be effected by it is altogether undesirable. On the subject of this valuation the Registrar says

The actuarial soundness of the rates of contribution is one of the fundamental conditions of the stability of a frion :ly society. It is, however, a condition the disregard of wich may not brim? about its inevitable punishment until after the lapse of a very considerable period of time. A society may stwrt with a rate of contribution quite inadequate to secure the benefits promised, and maygo on accumulating funds! for a greater number of ye-rs, and exhibit every outward appearance of prosperity, the dcceptivoness of the result being often, in the case of >evv Zealand societies, aggravated by the special circumstances of the rapidlyincreasing value of freehold property, ami the high rate of int rest obtainable; circumstances which, however, should bo considered as abnormal, and which should not influence a society to adopt ■* scale of contributions which would n..t under rdinary circumstances enable it to meet all the demands which will ultimately be made on the funds. As a consequence of this, there is the m »at wide-spread misconceptionpimong the members of friendly socie'ies as to what constitutes an adequate rate of contributions, and very generally also, a complete want of appreciation of the importance of the subject.

The value of actuarial investigation and report rests upon its being made quite independently of the society, and it is in the struggle to attain this that the greatest effort has boon made in England and here, and the greatest difficulty encountered. It has not boon accomplished wholly by the existing law, but a great advance towards it has been made; and it appears that by the so-called amendment thepositionnowgainodwouldbe practically abandoned. One of the provisions of clause 13 of the existing Act is, that every registered society shall, “ Once at least “ in five years next after the commenoe- “ ment of this Act, or the registry of the “ society, and so again within six months “ after the expiration of ovary five years succeeding the date of the 'first 'valua- “ tiou under this Act, oauss’ its- assets “ and liabilities to bo valued by a valuer “ to be appointed by the society and ap- “ proved of by the Governor, and siich “ valuer shall send to the Registrar a “ report on the condition of the society.” On reference to clause 5 of tiie Amendment Act it will be seen that by the alteration proposed, the valuer may be appointed by and make his report to the Society and not to (ho Registrar directly. It may seem but a small matter, but it really is of very grave importance, for it would take away all the character of independence of the society which such valuation ought to possess, and upon which its worth may in certain cases at any rate be altogether dependent. This question is one, wo think, very worthy of consideration by the members of societies, and it is in that view that wo desire to draw attention to it.