UNION INSURANCE COMPANY.

Globe, Volume XXIII, Issue 2264, 5 July 1881, Page 3

UNION INSURANCE COMPANY.

The fourth annual general meeting of the shareholders of the Union lusurance Company took plaoe at noon to-day. The Chairman of the board of directors, the Hon. J. T. Peaoook, oeoupied the chair. The Manager, Mr W. D. Meares, read the advertisement and the minutes of the last annual meeting. The report of the direotors and balancesheet, duly audited, which hare already been published, were taken as read. The Chairman, in moving the adoption of tho report and balance-sheet, said:—Gentle, men, —In moving the adoption of the report and balance-sheet, there is very little to say, but I think the directors may fairly congratulate the shareholders on the satisfactory statement this day placed before them. I will, however, deal with a few items of general interest. First, then, premiums which stand at £104,588, show an increase of £13,400 over last year; such considerable increase in revenue must be extremely gratifying to you. We hope to Bhow similar progress from year to year, as we shall seize such favorable opportunities as may arise from time to time for the extension of our business. There is another item which, no doubt, has attracted attention, that being the cash balanco in hand. The fact is that for some time past we, like other monetary institutions, experienced difficulty in acquiring good securities, but I am glad to say that we have now arranged for the investment of the whole of our surplus funds. Tho explanation of tno small item standing to credit for shares forfeited is that the ownership got considerably involved, and as there was no probability of clearing it or getting the overdue oills paid we forfeited and sold them at a profit. You will notice that the direotors nave, as usual, made an appropriation for unadjuoted losses; the amount is ample, and includes provision for a loss by fire at Tauranga, which occurred on the last night of our year. We have also written off a very full amount of depreciation of office premises and furniture. I would draw your attention to the heavy charge we are subjected to for taxation. This, your directors think, is assessed upon a wrong basis, being on premiums received rather than upon profits made. You will remember that when I last addressed you, I said on the question of interim divi dends, that the directors did not then propose to ask for power to declare them, or at least until we had a larger reserve. Since then wo find we are enabled so materially this year to inoreaee tho reserve fund, which now amounts to one half of our paid-up capita), that we have come to the conclusion to ask you to give an expression of your views. With that object I will later on move n resolution giving power to deolare such dividends. When speaking to you on former occasions I have alluded to the ridioulous competition whioh existed in various places in the colony. I am sorry to say that it still continues to a greater or less extent. I have heard of such a thing as wooden dwelling housos being insured at a rate of 2s 6d per cent. I wonder if the agents accepting such rates ever pause to oonsider that their oompany must go on receiving that 2s 6d per cent, for 800 yoarß before they will be recouped for a total lobs of the building insured. This calculation excludes working expenses paid and interest received. The last item would, of course, reduce the term of years to some extent; perhaps some ingenious actuary will work it out and see to what extent. Wo hive Btood as much as possible out of the race for premiums at all hazards, and as a natural result our revenue has fallen off considerably at those places whore competition is reokless. We do not regret our course of action, feeling assured that it will stand the test of time and prove to be the right one. In conclusion I beg to say that I shall be happy to answer any questions which may be put to me, and now beg to move the adoption of the report and balance sheet. Mr Sutherland seconded the adoption of the report and balance-sheet. Mr Clarkson desired to ask the chairman how it was that the item " sundry creditors £6 00" appeared on one sido of the balancesheet, whilst on the other there were theße, " rash in Bank £20,682 13s 9d, and on hand £17,832 4j lid." If a man had plenty of money, he could not see how he could have creditors. Mr Meares, at the request of the chairman, explained that the amount of £6OOO referred to was re-insurance. Whenever a re-insuranco was effected, it was immediately passed to the debit. As regarded the amount on hand, that was from branohes and also accrued interest. Mr McDougal suggested that the best way would be to put the accrued interest in a separate item. Mr Louiason pointed out that it was scarcely right in balance-sheets like this to put debts due to the company and cash on hand. Ho referred to the item £17,&32 4s lid. The Chairman said it the shareholders desired the amounts separate it might bo done. Of course, in their books the accounts were separated. Mr Louisson said that the information given to the shareholders would be much fuller if the debts due and cash in hand were separated. The Chairman Baid that next year this could be done. The motion for the adoption of the report and balance-sheet was put and carried. Mr L. E. Nathan moved the re-election of Messrs Curruthcrs, Montgomery and Stud-

holme. These gentlemen had served the oompany so well as to require no laudation from him. He, therefore, simply moved the re-election of these gentlemen. Mr Olarkson seconded the motion, whioh was carried. Messrs F. E. Wright and A. M. Ollivier were re-elected auditors, with an honorariam of seventy guineas. The Chairman then moved—" That the articles of association be amended by inserting the. following words after olause No. 76: ' The directors may, however, deolare and pay to the shareholders an interim half-yearly dividend without obtaining the sanction of the company in general meeting as aforesaid, provided that the amount so paid shall in no case exceed the rate of dividend last declared by the oompany in general meeting.' " He did not think the motion required any explanation, as it was the wish of the share holders that interim dividends should be paid. Mr J. J. Fletcher seconded the motion, which was carried unanimously. The Chairman said this special resolution would require confirmation at another meetnj!, o" which notice could be given. Mr Nathan Baid he was pleased to hear the chuirman express the determination of the directors to push the business of the company by all legitimate means. This afforded him an opportunity of speaking on a subject of great importance, viz., the establishment in tho old country of a branch of the fire insurance business of the company. He thought they ought to reverse the old style of business and take a pattern by the English o >mpanieo, who were draining the life blood of the colony and spending it in England. [Hear, hear.] The first company that occupied the field would reap a large harvest, and would receive large colonial support. For such a purpose they might amalgamate with other Now Zealand companies, so as to establish a purely colonial fire insurance business. In old established countries he believed that fire insurance business was a very remunerative one as a whole, the exceptions being where companies started with two small a capital, or expeoted to jump into a large business. If a colonial company were to steer clear of these shoals, having their colonial business to fall back upon, they would not require to take any business but what they thought profitable. He threw out this suggestion as he hoped the dircotors would consider the matter, so that the company might be early in the field. He thought also that in future balance-sheets the unearned interest should appear, as in banking balance-sheets. The Chairman said that the suggestion thrown out by Mr Nathan as to the extension of their business had not escaped the notice of the directors, who had had it under consideration. There were, however, some difficulties in the way, as it was not all smooth Bailing, as Mr Nathan seemed to think. The direotors, however, desired to thank Mr Nathan for his suggestion, and to assure him that it would not be lost sight of. As regarded the other suggestion of Mr Nathan, that also should receive due consideration. Mr Banks desired to propose a vote of thanks to tho chairman and direotors. The management of the company had been most oareful and zealous, and he desired to move a vote of thanks to them. Mr H. N. Nalder seconded the motion, and in doing so asked the direotors whether they intended to carry out the original intention, and call up the shares to £l. It was true that money was now very plentiful, but then the shareholders could better afford to pay the calls under these circumstances. The Chairman said that the directors dii not feel called upon to call up more money. They had quite as much money as they wanted, and as they were not an investment company, he did not see that they need call up more money. They started with the idea of having £IOO 000 as a guarantee to the publio, and they had done ao. He desired to point out to Mr Nalder that the large reserve fund they had far more than represented the 5s not yet called up. It looked well for the oompany also to have money uncalled, and it was no use to call up money when it was not required. [Cheers.] The motion was then put and carried. The Chairman returned thanks, and stated that the approval of the shareholders would give them still more incentive to enter upon their year's work with renewed vigor and zeal. Mr Stead, in a speech highly eulogistic of the services of Mr W. D. Meares as general manager of the company, proposed a vote of thanks to the general manager, agents, and staff. Mr Meares was a most energetic and zealous manager, and they owed a great deal of the sucopss of the past year to hie taot and zeal. Mr Clarkson seconded the motion. The Chairman desired to add his tribute of praise to the eulogium by Mr Stead of the general manager. The motion was then put and carried. Mr Meares responded on behalf of the agents, the staff, and himself, and mentioned, as an instance of the care exercised by their agents, that risks had been refused by them, resulting in the loss of £7OOO. This terminated the proceedings.