Finance, Stocks, and Mining.

Free Lance, Volume II, Issue 81, 18 January 1902, Page 5

Finance, Stocks, and Mining.

THE balance-sheet ot the New Ze.iland Insurance Company is now to hand, and an anal} sis of the figures discloses the -fact that the pat year was not quite as satisfactory as the previous year. The losses for the yeai totaJled £234,040, as against £195,801 in the previous year, the ratio of losses to premium being b3.00 pei cent against 57.24 per cent. The premium income was large, but the fire and ma; me losses have been relative^ heavier. and the year, m consequence. i<- not so favourable. * •» • The management expenses amounttd to £101,886, as against £95,651 show ing the substantial increase of hbZ6 > The ratio of expense® to premium income works out at 27.45 per cent , a* against. 28.00 per cent. The net undr _-- writing profit for the year totaJled £35,560, as against £68,944 in the pre vious year, and £34,232 in. 1899. The underwriting profit for the year is equal to 9.57 per cent, of the premium income, while in the previous year it amounted to 20.15 per cent • • • The company derived an income of £19,559 from rents and interest, and this, added to the underwriting profit *,t £35,560, makes the net profit for the year £55,119. The income from investments is nearly equal to 10 per cent. «n the total capital, while the underwriting: profit as sufficient to pay a dividend of 17-*- per cent. The losses of most insurance companies last year in New Zealand was exceptionally heavy, and, according to statistics compiled by a contemporary, the loss sustained by tr^ New Zealand Insurance Company was approximately £41,103, but this doe<= not take into account reinsurances. • • • It is singular that there should be a greater number of fires m the North Island than in the South. This peculiarity is not confined to last year, but has been noticed, for many years past. Underwriters are unable to account for ibis, but some hold the view that it is owing to the large amount of pioneer settlement that is still taking place m this Island. ♦ • • The underwriting losses in the Wellington district totalled just about £80,000, which is rather high. In view of the heavy losses incurred durins; the past, two years, it is not unlikely that the underwriters will be forced to increase rates in certain localities. The annual conference of the Underwriters Association wdl be held shortly, when, no doubt, the whole question of rates will again be reviewed, more especially as several localities are clamouring for reductions. % • • It is a well-grounded belief on the part of underwriters that a large proportion of the fires reported are not caused accidentally, but there are great difficulties in the way of proving otherwise. Occasionally inquiries are held into the causes of fires, and now and again the Supreme Court, is called upon to deal with cases of arson and incendiarism, but no systematic effort is made to hunt the fire-fiend. • • • What is required is that there should be an official inquiry with respect to every fire that occurs. Marine underwriters are to a certain extent protected by the nautical inquiries which are always held in connection with marine accidents, and the same principle ought to be applied to fires. • • • Instead of crying out for State fire insurance, members of Parliament would do well to urge investigation as suggested above. If the fraudulent side of fire insurance could be eliminated, then the rates would be greatly reduced, for it is the moral hazard that helps to maintain high rates. • • • The loss of life last year in connection with fires was somewhat heavy. No fewer than fifteen lives have been lost and this affords sufficient excuse for urging the necessity of materially increasing the facilities' for escape, particularly in public buildings such as hotels, boarding-houses, theatres, etc Private houses, also, should be made to have proper fire escapes, especially houses of more than one story whether in town or country. • • • It is scarcely realised to what extent the dairy industry has benefited tr>< colony. The value of the butter an cheese exported last year according -fr the monthly returns published by th* Department of Agriculture, was £1 125,335, of which £893,674 was derived from butter, and £231,661 from cheese.

Tin- progress made by the dairy trac^ ma\ he been by comparing the exports o< four years a& under —

Kadi \ eai has witnessed substantial progress, and there is every reason, for bellowing that the industry will continue to show satisfactory expansion m the years to come • • • The exports of frozen meat last year put up a record in value, the amount exceeding two millions sterling for the first time in thei history of the trade. The quantity exported shows little \anation during the past three years, and this seems to indicate that, for the present at am rate, we have reached the limit. • * *

The value of the mutton exported shows an increase of over £127,000, and lamb over £140.000, but beef declined nearly £90,000. In November and December last the beef shipments were exceedingly small, and the tendency is for a further decline , this is probably due to the expansion of the dairy trade. • • • The total value of tihe shipments of dairy produce and frozen meat last year was £3,214,863, as against £2,865,272 in 1900. Wool, gold, frozen meat, anld dairy produce are now the chief exports of the colony, and in the aggregate account for about five-sixths of the total . • * • The Equitable Building and Investment Company, whose balance-sheet has just been issued, has experienced a very satisfactory year. The profit for the year, including the balance brought forward, amounts to £6621, as against £6366 in the previous year. • • • Besides paying the usual dividend of 10s per share, £1500 is added to the re>serve fund, which now amounts to about three-fifths of the paid-up capital of the company. The shares of the company are held in high repute by shrewd investors, and fche market price of the day showß a substantial premium. » • • Dredging ie looking up. Of that there is no doubt. A great deal more confidence is being shown ,and it is not quite as easy to "pick up" shares. Prices show a decided upward tendency, but "wild-cats" are rightly neglected. All the well-known bullion producers are firming, and more attention is being paid to West' Coast ventures, where the returns are beginning to show expansion. • • • The pontoons of the Golden Standard Company are reported to have sunk at their moorings. They are to be raised again as soon as possible. • ■ « The Feddersen Company (West Coast) have let machinery contracts to Messrs. A. and T. Burt. The dredge is expected to be at work by July next. • * * The shareholders of the Waiora Gold Dredging Company are to meet on the 21st instant, to consider the question of voluntary liquidation. • • • The work of erecting the machinery for the Shellback Company has commenced, and the dredge is to be ready for commissioning early in March. • • • The Koh-i-noor Company's dredge is just about ready for the trial run. This dredge is expected to do very well. • • • The shareholders of the Roes United Gold Dredging Company have decided upon voluntary liquidation, and Mr. W. Duncan has been appointed liquidator. • « The Notown Creek dredge is working steadily but it will be three weeks or a month before the deadwork of opening up will have been completed. • • • The Roxburgh Jubilee Dredging Company is being reconstructed on the basis of 2500 contributing shares and 5000 paid-up shares. • • • The Greenstone Creek Company's dredge re-started dredging on Monday last. Better returns are expected from this dredge. Steams' Hf\dache Cure is an excellent and safe biaeer used the morning following a night of " good cheer." It lemoves that listless all-gone feeling.

fear Cwt. .898 .890 900 .901 1,37.-J,510 1,691,013 1,624,326 1,699,490 1,535,050 1,921 687 1,907,353 2,089,528

The exports of frozen meat for the past four years compare as under —

feai Cwt. H9K 89H 900 901 1154,440 201 5(58 274,514 .^05,406 536,143 701,(552 957,919 1,125,335