A WARNING TO FRIENDLY SOCIETIES.

Te Aroha News, Volume VII, Issue 406, 28 September 1889, Page 4

A WARNING TO FRIENDLY SOCIETIES.

The Registrar of Friendly Societies, in his report laid before Parliament this year, repeats his warnings to friendly societies with regard to the unsound financial condition of many of the lodges. His' summary of the year's valuation shows that *' Of the 13 central bodies, 8 hold accumulated benefit funde, and of these 8, 1 shows a surplus and 6 a deficiency of more than • ■ a shilling in the pound. Of these 6, in regard to 3 'inadequate contributions ' is assigned as the sole cause, and in regard to 3 as one of the causes of such deficiency. Of the 161 branches of the 13 central bodies, 39 show a surplus and 102 a deficiency. Of these 102, in regard to 18 ' inadequate contributions ' is assigned .is the sole cause, and in regard to 76 as one of the, causes, of such deficiency. In 7of the 39 which show a surplus in respect of the branch benefit fund, such surplus is more than swallowed up by the deficiency in the central body funeral fund. Of the 11 separately-registered lodges, 1 shows a surplus and 10 a deficiency, and of these 10, in regard to 7 ' inadequate contributions ' is assigned as the cole cause, and in regard to 8 as one of the causes of such deficiency." With regard to the disposition displayed in the lodges to rectify this condition of affairs, the report states: — " A few societies were established here on a sound financial basis. A considerable number have recognised the necessity of raising their rates of contribution, although they have hesitated to make the remedy applicable, or fully applicable, to existing members. For these there is a possibility of eventual success if good management and a favourable sickness experience are combined whereby they may tide over the critical period of their existence. But tor the otherg whose members ignoie past experience there can only be one result — absolute loss and disappointment. The bankruptcy of a friendly society is so long deferred that warning of the impending disaster is unheeded by those whose ignorance of their own ignorance on the subject disposes them to indifference and sometimes even to an assertive denial of the correctness of the data and deductions on which such warning: is based." It is interesting to note that a similar state of affairs has prevailed in Victoria, but some of the societies, acting upon the advice of the Government Actuary, have adopted measures which are fast restoring their finances to a condition of stability. In his last report Mr Evan F. Owen, the Government Actuary, announces that in the M.U.L0.0.F. the deficiency of 3a 3ld in the pound at the first valuation has been reduced to a deficiency of 2s lid at the second; in the U.A.O.D. the deficiency has been reduced from 5s 9d to 2s 3d in the pound ; in the 1.0. R. and 1.0.0. F. the deficiency of 2s 8d at the first investigation has been changed to a surplus at the second of 2d in the pound, and the deficiency of 2s 4d in the St. Patrick's Society changed to a surplus of Is lOd in the pound. The St. Patrick's Society haB thus improved to the extent of 4s 2d in the pound; the U.O.A.D. to the extent of 3s 6d ; the 1.0. R. and 1.0.0. F. of 2s lOd, and the M.U.1.0.0.F. of Is in the pound. The Victorian Actuary, like our own, again urges upon those societies whoso finances are still unsound the importance of seriously considering their position. Mr Hayter, the Victorian Statist, is of opinion that in the case of societies which continue to neglect to take the necessary action, means should be taken to compel them to readjust their contributions and benefits on a sound and equitable basis ; and it is pointed out that a test case which was brought into the Victorian Courtß fully established the right o£ friendly societies to readjust the scale of payments even in the case of old members. This case, Falconer v. Weedow, arose out of a determination by the M.U.1.0.0.F. to raise their scale of contributions. It was heard before a Full Court, and the effect of the judgment is to establish the principle that societies are within their legal rights in increasing, when necessary, members' contributions, and that rules for that purpose can be enforced on all the branches. We hope that those ot the New Zealand Friendly Societies whose contributions have been shown to be inadequate will not delay longer in carrying out the recommendations of the Registrar. There is one paragraph in the report recently laid before Parliament which will come as something of a surprise to our temperance friends. It runs as follows :—: — " Included among the valuations of the year are those of the two districts of the Independent Order of Rechabites as well as the Grand Division of New Zealand of the Sons »nd Daughters of Temperance. Members of a total abstinence society seem to imagine that in respect of health they possess, on an average, an advantage over the members of societies whose rules do not forbid a temperate usa of alcoholic drinks. No satisfactory evidence from colonial experience has, however, been adduced in support of this view. On the contrary, the history of the 1.0. R. in Victoria for the years 1877-86 shows its sickness was more than 6 per cent, higher than the expectation as based upon the M.U 1.0.0.F 186670 experience. It is true that in the said' society the mortality during the same period and judged by the same standard was comparatively light, but the combined result, when estimated by its money value, can scarcely be said to prove the existence of any advantage in favour of this special class of society. As a low rate of mortality is necessarily followed in future years by an increased percentage of members at risk, it is not unlikely that the gain resulting from the deferred payment of the funeral benefit will be outweighed by the additional liability on account of sick pay. If all the members of a total abstinence society had been brought up in the observance of the vow, possibly among such a low average sickness for each year of life might be found to exist ; but, even so, the extra number of years during which the members, under the assumption of a high average longevity, would be at risk, for the sick benefit would j most probably raise the value of the average sickness, when summed up for the whole of life, to the disadvantage of the society's position regarded from a pecuniary point of view." (The valuation report of the New Zealand District 1.0. R., shows that the funeral fund of the I O.R. is solvent^ but there are deficiencies varying from 2a 6d to 5s 2d in the pound in the sick funds of the several tents.) "The Grand Worthy Patriarch of the Sons and Daughters of Temperance of New Zealand, in his address at the annual meeting of the society last year, urges the members of the order to Stry to convince abstainers that the Sons and Daughters of Temperance, as a benefit society, stands pre-eminently above societies whose members are not abstainers.' And the Grand Scribe, in his report, speaks, of the 'stable character of our position/ In justice to other societies, and in the interests of those who may be invited to join the S.D.T., the above statements cannot be allowed to pass unchallenged. A reference to the valuation report dissipates, alas, the claim to pre-emin-ence and stability." — " Auckland Star."j