ANNUAL MEETING OF THE GOVERNMENT INSURANCE BOARD.

Temuka Leader, Issue 1347, 30 May 1885, Page 1

ANNUAL MEETING OF THE GOVERNMENT INSURANCE BOARD.

The first annual meeting of the Government Insurance Association Board was held in the Drill Shed, Wellington, on Wednesday evening. Sir Julius Vogel was in the chair, and the other members of the Board on platform were Messrs J. C. Gavin (of the Treasury), R. C. Hamerton (Public Trustee), N. Reed, J. W. Beethara, G. V. Shannon, (Government nominees), and H. D. Bell, Geo. Fisher, and G. S. Graham (elected members). About 2(JO policy-holders were piesent. Sir Julius Vogel proposed the adoption of the report, and after explaining the establishment of the Board, dealt at length with the figures in the report. After traversing the business for the year, he referred to the properties purchased by the Board, and thought no better investment could be made, as these investments would yield 6 per cent on the capital on the capital, while they would have office room free. The capital value of these properties would, he added, increase from year to year. He denied that . the purchases would reduce the amounts to be distributed as bonuses at the quinquennium, as such distributions were made on the value of liabilities and assets. Referring to the staff, he slid there was no intention to place an officer over the head of Mr Luckie, but the Board did not feel itself justified in entering into an agreement with that gentleman, as they were of opinion that at some future time it might be found expedient to obtain the services of a gentleman who had longer experience in an institution of this kind. The Board had determined to invest as much of their capital as possible in mortgages of real property but would use .great caution. At present the Board was limited to 50 per cent, of the value of the property, but they intended to ask Parliament to extend the limit to two-thirds. They had four classes of securities policies ; 2nd, Government securities; 3rd, loans 10 local boards on Parliamentary securities, and 4tb, loans on freehold properties. Tbe Board also intended to ask Parliament to allow them to sell annuities out of the colony. Referring to local Boards he said he was anxious to have the matter fully ventilated.—Mr Fisher denied that the properties, at all events the Dunedin ones, were yielding 6 per cent. He also said that the Auckland property was unfit for insurance business, and a large amount would have to be expended on it. He had suggested delay io the purchase cf this property until after the annual meeting of the Association, but by the casting vote of the then Chairman (Mr Tolc) the suggestion not adopted. He read a statement of figures showing that the Association, by investing its money in Government debentures instead of going outside, would in five years lose upwards of £500,000 in interest. He considered (be Colonial Treasurer should not occupy the Chairmanship of the Board, and when the Amendment Bill was before Parliament lie hoped a change would be made in this direction. He objected altogether to local Boards, Mr H. D, Bell replied that funds were not being squandered, and after a discussion the report and balancesheeet were adopted, and ajmotion carried to the effect that a poll on the local Board question should be takeu on that day month, the 27th of June.