THE NATIONAL INSURANCE COMPANY.

Evening Star, Issue 3506, 19 May 1874, Page 2

THE NATIONAL INSURANCE COMPANY.

The above Company held its half-yearly meeting at Farley’s Hall yesterday. There were about 150 shareholders present, and Mr W. J. M. Larnach was elected chairman. The Chairman said that about nine months ago a meeting was held to consider the propriety of establishing a new insurance company, as there was no doubt of the necessity for such, the success which has attended the company then formed—the present one—from its first Proved chat it was a necessity. Mr Robt. Wilson was one of the foremost in establishing the company, and to him to a great extent was due its success. He (the chairman) felt much less responsibility in addressing them on the present occasion than he had when presiding at the preliminary meeting, as on the latter occasion he had only had to speak of probabilities and possibilities, while to-day he could speak of favorable results. After giving a brief history of the company, he read the report, which has already been published, and stated that with regard to the proposed dividend of 5 percent, for the half year, it was merely a recommendation from the directors, and the meeting could decide as to the advisability of declaring it. The various agents were doing their work in a most creditable and satisfactory way. Daring the six weeks since March 31 jiremiums to the amount of L 6,102 had been received, which promised equal success for the ensuing half-year to that of the last. He must congratulate them on their, having secured the services of their present manager, Mr A. H. Jack, as the success of the company was largely owing to that gentleman’s experience and thorough earnestness, and he deserved their best thanks. Mr Jack had only one fault—he was over-cautious ; but that was a good fault for a manager of an insurance company. At Auckland and Christchurch they had two very good men in charge and as to the 'directors, they had on the whole worked as one man and with unanimity —each showing that he had the interests of the company at heart. He would move the adoption of the report. Mr Hunt moved the adjournment of the meeting, as sufficient publicity had not been given to it by advertising. Mr C. S. Reeves asked if the adoption of the report would entail the declaring of the proposed dividend ? If so, he would first move that no dividend be declared. Mr 0. R. Chapman [seconded I'this 7amendment. . Mr C. Smith thought it was possible, and also the better way, to move the adoption of the balance sheet by itself, and consider the question of divi'lend afterwards. Mr E. Ik Cargill said it was quite competent for a motion to that effect to be passed, and in the course of a long speech explained that the directors had merely recommended the dividend, and that it was for the meeting to decide whether it should be declared, or the amount carried to the reserve fund. He thought the show the company had made during the first six months of its existence—the most critical period of a company of any descriptionproved that it had gained the confidence of the public. ■Mr H. J, W alter said it was gratifying to read the report and balance-sheet; but he was not disposed to lavish too much praise upon the directors until a certain matter had been cleared up. Rumors had been circulated at the time of the company’s being started that the provisional directors had allotted to themselves an extra number of shares, and in answer to these reports a letter appeared in the ‘ Otago Daily Times,’ signed by Mr Leary (then interim secretary to the company), stating that the directors had not thus taken advantage of their position, but had placed themselves on an equal footing with the ordinary shareholders. It was currently reported that 350 shares was fixed as the for a director, and that when there was seen to be such a demand for them the directors allotted themselves 500 each. He wouldask—was that done, and, if so, why? . -ihe Chairman said that the ‘Promoters simply got their shares by paying for them—like the other shareholders, Mr Walter: Then your answer is contradictory to the letter ? Mr Marshall said he would come forward and explain the matter. He was one of the original promoters, who had all put down their names for 500 shares. There was a number of gentlemen who were not anxious to do so unless they were sure the company would be a success. When the success was proved these gentlemen came forward more rapidly, and it was agreed that to have a small qualification would be injurious to the interests of the company. The question then came up as to whether those who had their names published in the papers as provisional directors—thus showing the bona Jides of the company—were entitled to any remuneration for so doing, and for attending the preliminary meetings; and it was decided that 150 shares beyond the qualification number (350) should be allotted to them. In that he thought, there was nothing unfair or’dishonorable, or to justify any aspersion of such a character. Well, then, there were thirty provisional directors, out of whom a board of nine was to be chosen. He (Mr Marshall) said to them. Well, we can’t all be elected: to render the choice easier, I will retire.” Not one of those gentlemen took the hint, but all went in for office ; and what was the consequence . After nine directors were elected, some of those who went in for office sold all tueir shares out that very morning, made LSOO, and repudiated the company from that time lortn as an infernal swindle. I he adoption of the balance sheet was then put and carried unanimously. Mr E. Prosser, to test the feeling of the meetmg, would move that the proposed divi-

dend of five per cent, for the past six months be declared. He could not see why they should not have a dividend, though lie was indifferent as to then or at the end of the first twelve mouths. Mr J. Copeland seconded the motion, as it W< Ti'r factory to the small shareholders. Mr Reeves said that, although he was as anxious as anyone to leceivc a dividend, still that proposed would be so diminutive that they could do as well without it; being only sixpence per share, it would not be worth lifting. He would move as an amendment that the amount of nett profits (LI 7,236 Is 8d) be carried to a reserve fund. Mr C. R. Chapman would second the amendment—[here there wai an outburst of ironical applause, which lasted several minutes]—that the profits should bo carried to—(applause) the revenue fund. In a new country like this —(applause).—which had beeu such a short time in existence; in fact, only iu its infancy —(laughter.) He looked upon the dividend as being iu the shape of a dodge to keep up the shares in the market.—(Loud applause.) Mr R. B. Martin thought the last speaker should be called upon to exphiu what he meant by the term “dodge.” He himself respected the directors too much to think they would be guilty of discreditable conduct. Mr Webb, on behalf of the smaller shareholders, would support the declaring of a dividend. Ihe motion was then put, aud carried on a show of hands. Mr Marshall proposed, and Mr Walcott seconded the re-eiectiou of the board of director. which was carried. The auditors, Messrs A. C. Begg and A. W. Morris, were also reelected, and the meeting terminated.