COLONIAL MUTUAL.

Stratford Evening Post, Volume XXXVII, Issue 26, 1 October 1913, Page 5

COLONIAL MUTUAL.

LIFE ASSURANCE SOCIETY.

A SATISFACTORY REPORI.

[By Electric Telegraph—Copyright] [United Press association.T (Received 8.35 a.m.) Melbourne, October 1.

The final report of the inspectors appointed to investigate the affairs ol the Colonial Mutual Life Assurance Society has been tabled in the Assembly. It states: “At the date of our investigation, the Society was solvent, and able to meet all its liabilities immediate and prospective. The charges of fraud, dishonesty, mismanagement, and incapacity, made against the directors and managers in the petition presented to Parliament in September of last year are wholly unjustifiable. The actuarial valuation. made at December 21, 1910, is • substantially correct. The cost at which new business was obtained was greater in 1912 than in 1911, but this was entirely due to adverse effect produced by the presentation of the petition to Parliament in 1912. The assets, as shown on the hooks and the balance-sheet, have been verified as assets of good value for the amounts shown on the balance-sheet. The industrial department made satisfactory progress. The accident department is in a sound position. The allegations in the petition not already referred to have been inquired into, and we are of the opinion that the more serious of are not justified, and the remainder have no material hearing on the position of the Society.”

INSPECTORS’ CONCLUSIONS.

(Received 9.30 a.in.) Melbourne, October 1

The inspectors attach to the repoit a summary of the allegations and thou conclusions in respect to them. They find that the allegations in' regard to opening the ballot-box was utteily without foundation; that the amount paid to the chairman as travelling expenses was not excessive ; that though the book values of a number of assois were placed high, they cannot be fairly characterised as ridiculous; that the charge that the chairman’s son as a member of the Stock Exchange transacted the Society’s business to the exclusion of brokers formerly engaged is heW to he incorrect; while the allegation that the Society was in grave financial difficulties (if not hopelessly insolvent) is dealt with in the follow - . ing terms; “W.cj urp that lat the date, to which the allegation refers, and at .which 1 our ‘investigations were, made, the Society was solvent and fully able to meet all liabilities both .immediate and prospective. The directors of the Society regard the report of the reflection cast upon the management as unjustifiable.

“BUSINESS BEING CONDUCTED ON SOUND PRINCIPLES.”

[Per Press Association.] , Wellington, October 1. Mr Leslie, resident secretary of the Colonial Mutual Life Assurance Co., has received the following cable; from the chairman of directors at Melbourne -“The Government inspectors’ report on the affairs of the Society was laid before Parliament to-day. The Board regard it as highly satisfactory. The following are extracts: —‘We have examined the mortality experience oi the Society for the years 1905 to 1911 and find it has been favorable. The amounts paid in claims were materially less than those for which provision ( was made in the valuation. ' We arc of opinion that business is being conducted on sound principles; that the policy which is being pursued slumh. have the effect of further reducing business costs, and the results in fa ture should he materially hotter thar they have been in past years. In our opinion, the investments of the Society are now, anil for some-years past have been, made on sound principles. Wo are also of opinion that the industrial department will not only he successful in itself, but that it will prove to be a valuable adjunct to the ordinary department.’ ”