GOVERNMENT INSURANCE ASSOCIATION.

Temuka Leader, Issue 1474, 2 March 1886, Page 3

GOVERNMENT INSURANCE ASSOCIATION.

Sir Julius Vogel was waited upon by a deputation of policy-holders at Auckland on Saturday, who put a number of questions relating to the management of the Association. He was of opinion that tliern should be local Committees in each centre, but ho confessed he was not a believer in unpaid work. It might be desirable to adopt some such course, but ho thought it would not be satisfactory. In his opinion the intention of the Act was to minimise parliamentary control, simply to tho extent of protecting Government, and to give control to the policyholders themselves. That was tho direction in which he was favorable to move. Another question asked was that no more properties should be bought without consulting the local boards. It would bo a matter of course that they should he consulted. Ho was also asked ; Did the Dunedin property purchased by the Association cost £35,000, and are tho buildings to be pulled down because they cannot be made to yield 2 per cent, on the investment? They bought in Dunedin the finest block that was to be obtained in town. The rentals received at die time of the purchase amounted to 6 per cent. They considered that by pulling down the present buildings, which were very old and not very suitable, and by putting up better buildings, they would get much larger rentals. He might say that when he visited Dunedin a few weeks after the purchase he was told that they could have £SOOO advance upon the purchase money paid. Mr Pym, who negotiated the sale, and who was married to his (Sir Julius Vogel’s) wife’s sister, had, he believed, received £3OO or £4OO from the vendors of the property and £6O or £9O from the Association—not £750 cr £IOOO. Sir Julias referred at lengdi to the purchase of offices at Christchurch, Dunedin, and Auckland. He justified the appointment of Mr Driver as agent of the Association at Dunedin, and strongly condemned tho present system of canvassing. He thought the policy of the Association should be to gradually do a great deal of business through tha country. This depended much upon canvassing, but what he wished was that the people would come to the country and insure their lives. He thought they wanted a man in Dunedin able to cope with the slanders against the Association, so persistently raised by the canvassers of other institutions. They were statements such as these which had dictated the questions before him that day, and which had been put into currency by rival canvassers. These men had been working upon the fears of their policy-holders in Dunedin, and in many cases had induced them to surrender their policies. Of the companies doing business in the Colony one of the largest divided its profits every year, and others every three or four years. As business men, let those present look at what that meant. In the event of an epidemic in the market, there being no capital to call up, such a company must be wound up. The Government Association could not go and reinsure with offices like those, nor could they admit such offices on a par with themselves. As to the constitution of the Association he would now speak, and that would be about the end of his remarks. As he had said before, the Association was incorporated as an institution. In his opinion what was wanted was to extend the control of the policy-holders. It was very clear that a nominated board did not command confidence. He saw no reason why there should not be a larger representative number on tha Board. As far as the nominated members were concerned Government officers bad been subjected to reflections to which they would not make any answer, their official position preventing it. as regards his position as Colonial Treasurer he denied the statement that he had used hia position on the Board for political purposes. He was quite sura that it would not answer for the Colonial Treasurer to remain Chairman of the Board. Ho had not time to attend to it. Something must i be done to give the Government a certain amount of control—such an amount as might protect it in respect to its guarantee. The control which the Government , required was that the funds should only be invested in certain security. He thought Government should require that two-fifths of the whole assets of the Association should he in Government debentures, and that it 1 should see that the rates were not too ' low. What he would propose was this, when he returned to Wellington he : would invite the policy-holders to form a Committee, making a provision that separate districts should elect a certain number of the Committee, and that the Committee should confer with the Board and examine the business of the institution. If the actions of |he Board were thoroughly considered by a Committee of policy-holders, he was perfectly sure they would agree with what the Board had done. The Committee might very usefully suggest what amendments should be made in the constitution of the Association, and he thought that was what should be done.