NEW ZEALAND INSURANCE CO.

Auckland Star, Volume XXXVI, Issue 34, 9 February 1905, Page 6

NEW ZEALAND INSURANCE CO.

t THE ANNUAL MEETING. : At the annual meeting of shareholders in tJie New Zealand Insurance Co. yesterday afternoon reference was made to toe Slate fire Insurance and other matters of interest. Tlie chairman (the Hon. Seymour ThorneGeorge) moved the adoption of .the report and balance-sheet, as reported in last evening's issue. . Mr J. Callnan, in seconding the motion for the adoption of the report, siiid he considered shareholders should be exceedingly gratified with the result of the past, year's operations. One element that had contributed to their sucepss was the extension of business to other countries, during the last few years. That policy was especially wise now that the State had entered into competition with the legitimate business of private companies. He feared that self-reliance was passing away, as the ppople were being educated to look U. live Government for everything instead of bfiqg self-reliant. Tlie Government was already receiving ") per cent, upon tlie earnings of insurance companies, which should have been sufficient. The only thing left now was vigorous action by all those interested in insurance business in the colony. He considered the rapid building up of the reserve fund of their company was a testimony to the care-, fill management of the directors, and the efficiency of the staff. Their reserve placed the company in an exceedingly strong poskiou. Their investments had also proved very satisfactory. If the increased revenue from investments continued, it would soon pay the dividend on the whole capital without calling upon the profits from underwriting. The general position of the company showed that those in control were fully alive to their responsibilities and anxious ever to do their best in the interests of shareholders. (Applause.) Mr' J. McLaehbm said he had hoped for the usual 4/ dividend on this occasion. The Cahirman pointed out that the directors, in paying an interim dividend of 3/, instead of 2/ as formerly, equalised the dividends, and really pave the shilling in advance instead of waiting until the annual meeting. Mr J. M. Mennie referred to the rise in rates for money, and suggested high-1 er charges upon any money lent oui..: He feared the Government, if it pressed its iire insurance branch, might hamper the operations of private insurance companies, and it would be well if possible to pay the dividends out of investments, irrespective of fire premiums, which might become a vanishing quantity. Mr"McLaehlan advocated selling the. Consols and investing the proceeds so to raise more revenue from the £53,000 now so invested at 2i per cent. He saw that Auckland Harbour Board C per cent, debentures could he bought in London at a price that would return about 5 per cent. The Chairman.-said they required to. be very careful as to what they <H in respect to the State fire insurance. The directors were watching matters most carefully. He need hardly say that he did not bolieve in State fire insurance. He bad made a very vigorous fight against passing Ihe Act, but found he was Qghtin.ff pretty well single-handed. . The fart was, people thought it would mean a reduction of premiums, forgetting entirely they were running the risk of very heavy losses, to pay which ihe people would have to put 'their hands in their pockets. The directors did not intend to allow their colonial business, which had taken nearly half a century to build up. to be taken from them, and would, if necessary, make a big light to retain it. With regard to Mr Mx-Laeh-lan's remarks about the money left in Consols at a low rat, 1 of intereßtlis might say that they could not get high rates of interest if they wished to have money invested in a liquid form. Tlie directors felt they must hold Consols, as they weve almost equal to ready cash. Mr McLachlun: "You could have New Zealand Consols? ,, The Chairman said that was quite true, :ind they were very good stock, but not equal to British Consols in tlie event of rapid realisation being desired. British Consols \fere almost, the same as handling £5 notes. The directors would not. therefore, care to change, that amount of their investments. The report and balance-sheet were then adopted. Mr G. A. Buddie moved that Mr T. Buttle and Mr A. M. be re-elect-ed directors. He said both had worked well in the interests of sharehclderc. and were entitled to be reelected. The Chairman declared these two re-elected unopposed. Mr Buttle briefly returned thanks, as did also Mr Myers. The latter said many intricate problems were placed before the directors requiring great care and attention. They were, however, ably assisted by a worthy and capable general manager tr.d most efficient staff. On the motion of Mr E. C. Carr, seconded by Mr J. Raynes, the retiring auditors, Messrs H. Gilfillan and R. E. Isaacs were re-elected unopposed. A vote of thanks was accorded the directors, officers and agents of the company on the motion of a country shareholder, who said the only fear was putting rates. He hoped for the sake of the country and also for the company the rate war would soon cease. There was no doubt insurance was a payable business, but it was also risky. What struck him was that the Government by re-insurance outside the colony would really send nine-tenths of the profits away if any were made. Mr Mennie, in seconding the motion, said it seemed rather hard for their company to be fought with its own funds. They lent £75,000 to the Government on debentures, besides paying about £ 10.000 in taxes. That seemed a one-sided arrangement. The motion was agreed to. The Chairman, replying on behalf of the directors, said he could assure them it required a great amount of time to look after such a business. The directors would try to do all they could to

keep tbe company a sound dividendpaying concern. Mr James Buttle, general manager, responded on behalf of the staff. He said all seemed endowed with an earnest desire to serve the best interests of th company. The meeting then dosed, th€ chairman intimating that the dividend was payahle at once.