H.—3

1887. NEW ZEALAND.

FRIENDLY SOCIETIES (TENTH ANNUAL REPORT BY THE REGISTRAR OF).

Presented to both Houses of the General Assembly pursuant to " The Friendly Societies Act, 1882," Section 5, Subsection (8).

The Registrar, in presenting to Parliament his report for the year 1886, desires to direct special attention to the number and importance of the valuation reports which were completed during the year and, in consideration of the very great interest attaching thereto, has selected many passages and reproduced (Appendix I.) the Valuers' ipsissima verba, chiefly those passages which have more than a local significance, as bearing upon questions affecting the welfare and progress of all friendly societies. To have published all the valuation reports in full, or even to have quoted extensively from each, would have filled a large volume. There is also of necessity much similarity between many of them. Reference, therefore, to several which contain the same arguments and advice as those from which extracts had already been selected has, for this reason, been omitted. 2. During the session of 1886 an amending Act was passed enabling friendly societies, under certain conditions, to transfer to the management or other fund the excess of interest above 5 per cent, earned by the benefit fund. As some misapprehension as to the meaning of clause 2 has already arisen, it may be well here to point out that a society or branch cannot take advantage of the provisions of this amendment except under the following conditions : — (1.) That more than 5 per cent, per annum has been earned on the total benefit fund. (2.) That at the last quinquennial valuation the valuer reported a surplus. (3.) That an actuary's certificate as to the sufficiency of the rates of contribution for new members has been obtained. (4.) That in a society having branches the transfer desired by the central body or the branch, as the case may be, is approved by the branches or the central body respectively. Application, therefore, for permission to make such transfer from the benefit fund must be accompanied by proof that all the above-mentioned conditions exist or have been complied with. The Amendment Act is appended (Appendix III). 3. The judgment delivered by his Honour Mr. Justice Richmond in the case " Locke and others (Trustees of Court Perseverance, A.0.1* 1., at Motueka) v. the Public Trustee as administrator of the estate of "F. E. Bisley, deceased, is quoted verbatim (Appendix IV.). The plaintiffs' case was that they had a preferential claim against the estate of the deceased for a total of £587 16s. 7d., being moneys with which Bisley, as court secretary, had been from time to time intrusted in order that he might pay the same into the Colonial Bank at Motueka to the credit of the trustees of the court, which instruction he had not obeyed, but had paid in the said moneys to his private account. One portion of the total amount, £385 16s. 9d., transferred from the Bank of New South Wales, had entirely disappeared, but the remainder was in the bank on deposit account in Bisley's name at the time of his death. The implicit confidence reposed in Bisley was such that at his request the trustees signed their names to a blank form which he converted into an order on the Colonial Bank at Motueka to pay him the £385 16s. 9d., and that neither as trustees nor as auditors did they require any proof that either this or any other moneys intrusted to him that he might lodge them with the bank had been placed therein to the credit of the court. The Valuer in his report necessarily refers to this loss, and his remarks thereon may be fitly introduced here : "Beside the cause of deficiency common to the district—insufficiency of contributions

LIST OF ABBREVIATIONS MADE USE OP IN THIS EEPOET. A.0.F., Ancient Order of Foresters. A.0.5., Ancient Order of Shepherds. 8.U.0.0.P., British United Order of Odd Fellows. H.A.C.8.5., Hibernian Australasian Catholic Benefit Society. 1.0. G.T., Independent Order of Good Templars. 1.0.0. F., Independent Order of Odd Fellows (American Order). 1.0. R., Independent Order of liechabites. L.U.F.8.5., Loyal United Friends' Benefit Society. M.U.1.0.0.F., Manchester Unity Independent Order of Odd Fellows. N.1.0.0.F., National Independent Order of Odd Fellows. P.A.F.S.A., Protestant Alliance Friendly Society of Australasia. R.E.8.5., Railway Employes' Benefit Societies. S.D.T., Sons and Daughters of Temperance. U.A.0.D., United Ancient Order of Druids. W.M.C., Working-Men's Clubs, 1-H. 3.