STATE INSURANCE METHODS

Taranaki Daily News, Volume LII, Issue 344, 21 March 1910, Page 2

STATE INSURANCE METHODS

SEVERELY CRITICISED BY FARMERS' UNION.

At Thursday's meeting of tee Tarana&i Provincial Executive of the New Zealand Farmers' Union, Mr. Maxwell said he had a matter to bring forward iwhich he wanted the membeis to take .very seriously. It was a question which he viewed very gravely himself, and he thought the executive should do likewise. To come to the point at once he would move—

"That all provincial executives be written to, asking their co-operation in protesting against the cxtraordin--1 ary methods of the State Fire Insurance Department, and to resent the Department's underhand endeavors, by tie improper use of confidential information, and by misleading suggestion, to steal the business of the Farmers' Mutual Insurance Association. A copy of this resolution to be sent to the Minister, to all other executives, and to the local members of Parliament, asking their co-opera-tion and assistance in the House."

Mr. Maxwell: I know that this mo■tion is worded very strongly, and that some members may possibly object to it on that ground; but it is our business to see that the farmers, at least, are not fleeced without a strong protest, ajid also, as taxpayers in this country, to protest against the system that is now being adopted by the Government, not only in reference to insurance, but also"* throughout otJier Government departments. Some little time ago a gentleman gave me a letter addressed from the State Fire Insurance Offices to one of the insurers with the Farmers' Mutual Insurance Association. That letter disclosed an extraordinary state .of affairs. I, however, waited iny opportunity to bring the matter forward until I received a similar communication •affecting my o\wi position. I have now in my hand a letter addressed to me by •the State Insurance Office, Taranaki .branch, New Plymouth, dated March 1, 1910, and reading as follows (it is signed by the branch manager).—

"I have 'been advised that the insurance on your buildings mortgaged to the Government Advances to Settlers Office falls due on the 31st inst., and I desire to approach you with a ■view to securing 'the insurance for the State Office. As it is the wish of the superintendent that all insurances on property mortgaged to the Department be effected with the State Office, I shall be glad if you will kindly favor me by completing the enclosed proposal and returning same to me not later than the '2Bth inst., as it is imperative that the cover reaches the superintendent well prior to the due date. It is, I think, reasonable to ask those settlers who a.re enjoying the (benefits of the cheap money scheme conferred by the State to place their

insurances with the Government Fire I Insurance Department. Thanking you ' in anticipation of an early and favor-

able reply." The form enclosed "states distinctly that the .proposal is "in lieu of the Farmers' Mutual policy." Mr. Maxwell proceeded to recall the circumstances tinder which a circular had been issued by the Government to all departments (as a consequence of certain information having leaked out about the treatment of a railway servant) forbidding the disclosure of ariy departmental information whatever under very considerable penalties. '"You will also remem. ber," said Mr. Maxwell, "that some time also grave irregularities were reported to have occurred in connection with the income tax, and that a secret Court was set up, composed of Judges of the Supreme Court, to enquire into the matter —a thing practically unknown in any British possession. The report of the ■Judges was kept secret, and when questions were asked in the House, the excuse of the Government for not disclosing the facts was that it won la w. an immoral and an improper thing to disclose the private business of those doing business with a Government Department. . . . The Advances to Settlers Department was ostensibly set up to improve the condition of the settler, to take him out of the hands of the 'sharks'; but while the Government ; s pretending to do that they are, instead, simply putting us all in the position of slaves. This letter is sent out in tiie hope that the greater number of its recipients may be taken in by it. What right has the State Fire Office to tell us what the superintendent of the Advances to Settlers Department wishes? What connection is there? What connection ought there to be? None. The letter is written to give the impression not only that it is the wish that you should transfer your insurance, but that you are under obligation to do so or you will suffer as a result, and I am in a position to know that many settlers have regarded it in that light. What .have the wishes of the Superintendent got to do with us? I repeat that the whole procedure is disgraceful."

Mr. Allhusen seconded Mr. Maxwell's motion. Some months ago, h° said, he got exactly the same notice from the Government Insurance agent in Eltliam, and thought it a very peculiar thing. When he got his advance, he took the precaution to get permission to insure in the Farmers' Mutual. He was glad Mr. Maxwell had brought the question forward, and he was satisfied that nine out of ten'farmers who received the letter i'elt that they were compelled to insure in the State Department. He regarded it as a gross breach of confidence. Why should the Government Department do what no decent lawyer would attempt? He had heard of several cases where people were going to insure in the Mutual and had withdrawn and gone to the State when they got the circular.

Mr. Bridge corroborated. Some six months ago he 'borrowed some money from the Public Trust Department, and shortly before the poli-cy 'became due he got a similar letter. He was, however, informed that they could not compel him to insure with the State Office, but wanted all insurance to go there. Mr. Allhusen: They left me to infer that they could compel me if they liked. The secretary (Mr. Sim): I could mention numbers of similar cases.

Mr. Maxwell: All the ordinary companies trade on proper business lines. We have got to pay our way in the Mutual; but the State Fire Department has the taxpayer to support it; it is generally supposed that it is working at a loss.

Mr. Marxell thought the wo'"ds "steal" and "underhand" too strong. It was doubtful, he thought, whether anything could be gained by using language like that. The man who put his ideas very strongly did not usually get the best of the argument. He strongly objected to the word "steal." Mr. Allhusen: What else are they doing?

Mr. Mariell: They are doing it; but I think it is not well to tell iheni that. (Laughter). The speaker thought, although he did not believe so himself, that many people wouid say that the Government, having the inrormauon, had a perfect right to use it. •Mr. Maxwell said he did not like the words "steal" and "underhand" himself, but he was quite sure that they were necessary in this instance. A mild reso. lution would go into the waste-paper basket. Mr. Forsyth thought "underhand" an ugly word and that it should be struck out. Mr. Maxwell's resolution was ultimately carried unanimously.—Abridged .from Star.