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The lodge with a surplus (Wanganui) owes its position principally to its good fortune with its property. Also th'i inequitable constitution of the District Funeral Fund, which is supported by the equallevy system, favours this lodge at the expense of the others, and I have recommended an alteration. Marlborough District M.U.1.0.0.F. : Valued as at 31st December, 1906. At the valuation-date this district consisted of 2 lodges, with 175 members. Taking the two lodges together, the sickness in the quinquennium was below the standard to the extent of £128, or 8 per cent. The mortality was low, there being 6 deaths, whilst 11 were expected. Taking the mortality over fifteen years, there were 22 deaths, as against 26 expected under the present standard table. Both lodges earned over 5 per cent, during the quinquennium. The contributions cease at age 65, and, giving due weight to this fact, it is found that each lodge has a surplus. The contributions are not adequate at 4 per cent., but beth lodges have more than made up for this by having had their funds invested at what might be called enormous rates of interest in the early years, and hence the present good results. It is too much to expect a continuance of such high interest-rates for a long period of years ahead, and hence the contributions now being charged to new entrants should be carefully reconsidered. Southland District M.U.1.0.0.F. : Valued as at 31st December, 1903. At the valuation-date this district consisted of 10 branches, with a membership of 1,181. The sickness experience of the district for the quinquennium (exclusive of the three new lodges) was in excess of the standard, the actual cost being greater than the expected by £593, or 11 per cent. This excess was principally due to one lodge (St. George) which was above the standard by £724, or 49 per cent. Another lodge (Winton) had a very bad experience, the excess being £186, or 47 per cent. The remaining lodges showed lesser variations. The mortality agreed closely with the new standard. This district works on a scale of contributions very similar to that of the Otago District, but a little lower at some points. With so low a scale, it is an imperative necessity that a rate of interest considerably higher than 4 per cent, should be earned. In the quinquennium only three of the lodges succeeded in attaining an interest-yield of more than 4 per cent. The lodges show deficiencies totalling £13,937, due principally to inadequate contributions, coupled in some cases with a low interest-yield or excessive sickness, or both. Nelson District M.U.1.0.0.F. : Valued as at 31st December, 1905. At the valuation-date the district consisted of 6 branches, with a membership of 825. The sickness experience of the quinquennium, taking the district as a whole, was practically identical with the standard in point of cost. The mortality was a little below the new standard, the deaths being 43, as against 49 expected. If we take the figures for fifteen years, we find 127 deaths, against 123 expected. The mortality may therefore be said to agree with the standard. The interest-earnings have been very good indeed, all the lodges, except Mataki (only recently opened) showing a return of over 4 per cent., and, in addition, the District Funeral Fund produced similarly good returns. The funeral liabilities of the individual lodges are reinsured in the District Funeral Fond, the lodges paying thereinto specific contributions corresponding to the age of each member. According to the new mortality standard, the lodges are paying into this fund a little more than is quite necessary, and partly from this cause, and also from the good interest-earnings, the fund has a surplus of £1,970. Looking now at the Sick Funds of the lodges, it is found that three of them have surpluses aggregating £2,330, and three of them deficiencies amounting in all to £1,047.- There may therefore be said to be a net surplus of £1,2.83 in the lodge Sick Funds ; and this is quite separate from and in addition to the above-mentioned surplus of £1,970 in the District Funeral Fund. The district as a whole is therefore £3,253 to the good. The position is very creditable indeed, particularly when it is remembered that new members have to contribute according to an excellent scale of contributions, and therefore do not introduce deficiencies. This district constitutes an example of the wisdom of adopting actuarial methods. Nelson District, A.0.F.: Valued as at 31st December, 1905. At the date of the valuation the district consisted of 10 branches, with a membership of 890. The sickness-cost of the quinquennium preceding the valuation was practically identical with the standard, the difference being only £12. The mortality experience of the quinquennium was considerably in excess of the standard, the deaths being 55, against 39 expected ; but when the figures for fifteen years past are taken out we find a closer agreement, there being 98 deaths, as against 95 expected. This district is somewhat noteworthy in two respects. In the first place, it has a loose form of government in the matter of benefits and contributions, the courts being allowed considerable freedom in deciding upon the benefits, the absurd position resulting that the same scale of contributions is made applicable by different courts to different rates of benefits, and some of the courts have from time to time altered the scale of benefits quite informally by mere resolution, leaving the legal position very doubtful. In the second place not a single court failed to earn more than 4 per cent., an admirable result. The valuation discloses deficiencies in all the courts, totalling £9,240. A couple of courts are practically solvent, the deficiency being only small. The weak position of most of the courts is due to the