H.—l9.

incident to small numbers, and the prospective increase of contributions to the District Funeral Fund." Mr. Leslie also recommends an increase in the rates of contribution, and a more profitable investment of the funds. The deficiency shown by the lodges of the Hokitika District is attributed by the valuer to the insufficiency of the contributions. These were 6d. per week for entrants at all ages. It is satisfactory to be able to report that this uniform contribution has since been superseded by a graduated scale, which, although not sufficiently high to meet the requirements of safety, is still a great improvement. In the case of two of the lodges (the Albert and the Waimea) tho valuer calls attention to the fact that there has been a misappropriation of benefit funds to management expenses, and describes this as an auxiliary source of the deficiency. In the case of the Goldsborough and Waimea Lodges he mentions that the membership (33 and 45 respectively) is altogether too small to afford a fair basis for the operation of average, and that iv the former lodge excessive rates of sickness have been experienced. It may be not unworthy of mention that the majority of the members of the former lodge, which has been by far the most unfortunate in the whole district, appear to be of Italian or Sclavonic birth. In the case of the Albert Lodgo, certain losses by fire, amounting to £90 Os. 4d., are mentioned as an additional source of the deficiency; and it is pointed out that the funds have not been advantageously invested. Mr. Leslie's recommendations to five of the lodges are identical. They are as follow : " Ist. That the present members should for the future pay the rate of contribution which they ought to have paid . . . during the whole term of their membership. 2nd. That the members see to it that the funds of the lodge are regularly invested at the highest possible rate of interest consistent with perfect safety. 3rd. That the amount standing to the credit of the Management Fund be placed to the credit of the Sick and Funeral Fund. 4th. That the amount owing by members to the lodge be kept doww to the lowest possible point, that the strictest economy be practised in the management, and that caution should be exercised in the admission of members." He also recommends that new members should contribute according to the scale calculated by himself and Mr. Peter Black, and issued officially on the Actuary's recommendation. "If these recommendations are carried out," Mr. Leslie says, "there is yet hope that all the members will receive the full amount of benefits promised on initiation." With the sixth lodge, the Loyal Goldsborough, the deficiency of which was more than twenty times its accumulated fund, Mr. Leslie deals specially. His remarks should be carefully pondered by all societies and branches having a small membership. " The experience of this lodge," he says, "illustrates very forcibly the necessity of the number of members in a lodge being sufficiently large to afford a fair basis for the operation of average before there can be any safety. " In the lottery of chances with small numbers some lodges in the district have been fortunate ; but this lodge has been very unfortunate, and the result is the large deficiency shown by this valuation. The sickness experienced has been very much in excess of the expectation, and the mortality has also , beeii above the average. " If this lodge is to carry on, the scale of contributions should be thoroughly revised, and every effort made to increase the membership. If, however, there is but little hope of a large increase in the number of members very soon, it would be better for the lodge to amalgamate with some lodge in the vicinity, or else the present members should fall back upon the district and become district members. " Whichever course be adopted, the scale of contributions paid by the present members should be revised and adjusted." It was mentioned in au earlier part of this report (see page 4 supra) that the members of the Loyal Goldsborough Lodge have since been transferred by clearauce to the Loyal Waimea Lodge, and that the former has consequently become extinct. Its fate should be a lesson to those members of friendly societies who still maintain the adequacy of the uniform contribution of 6d. per week. The Registrar believes that w 7hile this report is going to press, the public valuers are engaged in the valuation of the lodges of the Otago District of the Manchester Unity of Odd Fellows. The result will be of great interest, as the district has, until quite recently, been working on a uniform contribution of 6d. per week for the same scale of benefits as that guaranteed by the Hokitika District. The Registrar is informed that trial valuations have indicated that a large proportion of the lodges will show a deficiency. In the case of some, indeed, where it is known that there has not been a large recent influx of members, this conclusion is forced on the mind by a simple comparison of the funds in hand per member with the duration of the lodge's existence and the nature of the benefits guaranteed. It has been the duty of the Registrar during the past year to decline to recommend the Government to approve the appointment of a gentleman as valuer to one of the Otago societies, as it appeared, from the nature of the qualifications which were represented as fitting him to perform the duties, that he had entirely misapprehended the true nature of a valuer's functions, and had confused them with those of an accountant. As an illustration of the kind of knowledge which gentlemen must possess in order to be qualified for the position of valuers, it may be well to quote the queries which were proposed to this gentleman as a test of fitness. They were the following:—■ " 1. What particulars would you think it necessary, generally, to ask for from a lodge or court as premisses of your valuation ? "2. By what principles would you be guided in the selection of a table or tables of sickness and mortality, and of a rate or rates of interest ? " 3. What view do you take of tho mortality to be expected by New Zealand societies as compared with- similar societies in England ? How would this view affect your estimate of the sickness liabilities? "4. What do you consider to be the present state of our knowledge of the liability to sickness after the age of seventy ? " 5. Whether do you regard occupation or locality as having the more important bearing on the liabilities of a society ? State in what way you conceive that the influence of each should be allowed for,

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