5

H.—l

Investment of Funds. The net income from investments credited to the Sick and Funeral Funds lor 1914 amounted to £73,789, the average rate being 5-03 per cent, (say, £5 os. Bd.), as against £4 19s. in 1913. Table showing the Total Worth of the Siok and Funeral Funds of 717 Lodges as on the Ist January, 1914, and the 31st december, 1914, inclusive of the accumulations held by the central bodies ; also the Amount and Average Rate of Interest earned.

General. Members on Active Service. A preliminary count at the end of April showed that over two thousand members had joined the Expeditionary Forces. This number is quite incomplete, and is daily increasing. In almost all the societies these members are relieved from payment of contributions during their absence, the cost of which is borne either by their fellow-membors or out of the society's funds. This charge, and the consequent benefit payments on account, of these members, will probably strain the resources of some lodges, but it is certainly to the credit of the societies that they have shown themselves ready and willing to undertake what they regard as a national duty. I hope at a later date to be able to publish the number and particulars relating to each society. The legal position of these members in relation to their rights under the societies' rules has been the subject of inquiry. Section 101 of the Friendly Societies Act, 1909, is as follows : — " Notwithstanding anything in the rules of any friendly society or branch, registered or unregistered, no person, by reason of his enrolment or service in the Defence Forces, shall lose or forfeit any interest he possesses in any such society or branch at the time of his being so enrolled or serving, or be fined for absence from or non-attendance at any meeting of the society or branch, if his absence or non-attend-ance is occasioned by the discharge of his military or naval duty as certified by his commanding officer." The term " Defence Force " is in New Zealand held to include soldiers in the Expeditionary Forces engaged on foreign service, and the Act does not limit the privilege as is done by the English statute. In Great Britain the protection against deprivation of these rights only covers members engaged as Territorials, Militia, &c. — i.e., home defence —and not to those enlisted in the Regular Army and Navy. There is good reason for this, as the combatant on active service is nursed, cared for, and paid by the State, so that the immunity from payment of contributions, with cover for the death benefit, is probably a sufficient provision. If the New Zealand societies' funds are to boar the full sick-liabilities in terms of their present rules in the case of these members, it can readily be seen that the risk may turn out to be a most serious matter for some lodges. The New Zealand Act does not permit lodges to adopt rules dealing with this problem as freely as the English societies. Government Assistance in War Risk. By direction of the Hon. the Minister I sent the following circular to all friendly societies :—- --" 20th November, 1914. " I am directed by the Hon. the Minister in charge to inform you that the Government has made provision to assist the friendly societies to meet the extra risk entailed on their funds in respect of members in the Expeditionary Forces. " While the Forces are on active service the Government will contribute one-half of the premium cost of reinsuring the funeral benefits of those members who have joined the contingents. In respect of societies which propose to undertake the risk in their own funds, an amount equal to the abovementioned rate will be payable. " Claims for this subvention should be forwarded to this Department." All societies have not yet advised me whether they intend to take advantage of this offer from the Government, but the majority have furnished some of the information required for the purpose of computing the subsidy. War Legislation of 1914. In order to meet any contingency that may require societies to utilize their funds in a wider manner for the benefit of members who might be adversely affected by the war, a short Act was passed on the 2nd November, 1914, enabling relief rules to be registered. Section 30 of the Friendly Societies Act,

Total Worth of £ Fund Sick and Funeral as on Name of Society. January 1,1914. December 81,1914. Amount of Interest. Average Kate per Cent. M.U.I.O.O.F. I.O.O.F. N.I.O.O.F. .. B.U.O.O.F. .. A.O.F. A.O.S. U.A.O.D. .. I.O.R. S.D.T. H.A.C.B.S. .. P.A.F.S.A. .. E.T.B.F.S. .. £ 655,492 89,659 4,745 2,976 353,038 1,147 205,870 73,196 19,283 29,223 20,635 2,356 £ 687,836 98,237 4,975 3,154 373,030 1,151 226,248 77,480 20,316 31,967 21,565 2,458 £ 32,725 4,325 233 163 18,084 64 10,587 3,938 1,009 1,422 1,130 109 £ 4-99 4-71 4-91 5-46 5-11 5-73 5-02 5-37 5-23 4-76 5-50 4-63 Totals .. 1,457,626 1,548,417 73,789 5-03