Finance, Stocks, and Mining.

Free Lance, Volume II, Issue 84, 8 February 1902, Page 5

Finance, Stocks, and Mining.

THK business of accident insurance has grow n verj considerably since the Workers' Compensation Act came into force. A few years ago the business offering in the colony was scarcely sufficient to keep two companies going. Now there are four companies opeiating, and the premium rates are exceptionally low as compared with what they used to be. * * * The New Zealand Accident Insurance Company is one ot the few colonial accident companies that have lived It is twenty-two years old, and was never more vigorous and healthy than now. The balance-sheet, for the year ended 31st December last shows marvellous growth and prosperity. The piemium income for the past iour years is a.s under —

The compensation claims upon the New Zealand Accident Company last year amounted to £25,766, as against £19,520 in 1900, and £20,342 in 1899. There was. thus, a very substantial increase last year, but this must be expected, with the large volume of business now beine transacted. * ♦ * The investments of the company now stand at £100,109, as • compared with £85,598 at the close of 1900, and £73,061 at the end of 1899. In the past year the amount invested has been moreased by £34,511. The magnitude of the investments affords a strong guarantee to the insured. * * * The reserve fund now stands at £28,000, which is practically the same as in the previous year, with this difference that, whereas last year £23,000 stood to the credit of the reserve fund, and £5000 to the credit of the contingent habilitv reserve, this latter item disappears from the books and the two accounts are amalgamated. * ♦ * The shareholders of the New Zealand Accident Company receive the usual dividend of 10 per cent., but they are in luck's way besides that. The directors propose issuing 30,000 of the 80.000 unallotted shares to the shareholders, paid up to 10s each, and make them equal in all respects with the previous issue. Each holder of one old share is entitled to 1 \ shares of the new issue and these shares carry an immediate dividend of 6d per share. But this is a minor benefit. It is in the market value of the shares that the shareholders will ring in their profits. The old shares were quoted a.t 60s last week, and were in very strong demand. Even if they drop to 50& because of the fresh issue, it means a gain of 75s on every old share held. The management of the New Zealand Accident Insurance Company has always been good, prudence playing a very large part in the business The Customs revenue received last year totalled £2,191,798. as against £2,170,354 in 1900. There is an increase for the calendar year of £21,444, which, though moderate is satisfactory. ♦ * * The North Island contributes the whole of the increase in the Customs revenue, the South Island showine a decrease of over £14,000 Comparing the figures for the two years- the position is as under — ]<)01 1900 £ £ Noith Island .. 1,215,(523 .. 1.185,550 South Island . . 9-53,770 . . <)68,162 Parcels Post . . 22,405 . . 16,642 £2,191,798 £2 170,354 The North Island has, in recent years. shown greater development than the South, consequently the imports have beem on a large scale. The Treasury accounts, as published in the "Gazette" of last week have given rise to considerable comment It must be confessed that the position is not nearly as good as it was tw elve months ago. Still, the Colonial Treasurer will be able to show a surplus. The revenue exhibits a marvellous expansion, the increase for the nine months being £180,986. Since 1899. the growth of the revenue has been particularly noticeable, but, unfortunately the expenditure grows at a greater rate. For the nine months the expenditure shows an increase of £380,760, or about £200,000 more than the increase in the revenue.

It is not the Consolidated Fund that is causing trouble, although theie is an abnormal increase in the expenditure, but the Public Works Fund. This fund is in a parlous state and unless w ays and means are provided the pubhe w oiks expenditure must be Aery considerably reduced. At the most, tlieie is not more than a, million sterling available for expendituie to the 30th June, oi until Parliament votes further supplies. The expendituie last (juartei was at the rate ot ovei -£200 'XJO per month, but since then the Go\ ernment ha\e shortened sail on all their public works, and the late this quarter will therefore he \ erv coir-idcr-ablv reduced. The shareholders of the Auckland Ga& Compam aie again in luck Pionts for the year total £29.455. By the wav what about the electric- light" Sureh it is time that it had a say. * * * The Westia,han loan of £1 500.000 at 3| per cent., which was issued in London last week at a minimum of £102 10s per cent., has not been a successful flotation as the public applied for onh £375 000. The London C ounty Council's three million loan is <-aid to have adversely affected the< Westralian issue, but whatever the cause, the undeiwntprs of the loan will not be pleased. • • • It is evident, from the non-success of the Westralian issue, that the British capitalists are finding home investments more to their taste. The London County Council loan would- not carry more than 3 per cent., if as much, as against 3£ per cent., or at least 3 and 3-Bth per cent offered by West Australia, and vet the former issue was subscribed nine times over. • • • The underwriters were left to carry the baby" with the New Zealand loan issued last November, and now they are left, with the bulk of the Westralian issue. This experience is not very pleasant, and will tend to make them particularh careful with respect to future Australasian loans. ♦ * * The National Mortgage and Agency Company has had a satisfactory veai , and the shareholders will appreciate the bonus, w Inch brings the year's dividend up to 1\ per cent. The National Mortgage Company, like most other companies, felt the pinch of the crisis m 1893 - 1894, but managed to pull through splendidly The dividends following upon those black years were small, but the business was good and this has been carefully fostered ever since. The company is. in a strong position now , and is likely to continue so. ♦ * ♦ The trans- Atlantic steamship owners have arranged a working basis, with the result that freights have gone up with a bound. Mr. Pierpont Morgan, who recently bought up a steamer line, arranged this pool, and scores once again. His financial feats quite overshadow those of Hooley Hoiatio Bottomley. and lesser lights. The dredging market for West Coast shares i& growing excited over the splendid returns that are now being obtained. The Not own Creek dredge has done excellent work, and the return of 51oz for last week is an eye-opener. The shares went up with a bound, and the shares of the companies in the neighbourhood will be worth watching. ■» » * Mr. John MacGiegor, of Dunedin, is not in love with our mining laws. Speaking at a valedictory gathering the other day. he stated that the law had contributed largely to the present unfortunate position of a considerable portion of the dredging field. Onei of the worst causes of the failure of many ot our dredging ventures was, he thought, due to the labour conditions, and the conditions requiring dredges to be put on the claims within a certain number of months. This was causing incalculable loss to the colony and to the dredging industry. Otago (hedging doe^ not show much life but a>- the f.nouiabk' time foi dredging is aprjroaclu we ma\ expect to see a little moie \ lgoui in speculation ♦ * * The Eclipse dredge is about to make a start and the Arrow Junction dredge will soon bo at rcgulai woik ♦ # * The Molyneux Koh-i-nooa diedge, which is being moved up to her claim is making considerable headway and should be soon working her own ground The Sullivan's Lead Dredging Company has accepted tenders for the construction of the pontoons w hich are to be completed within four months Tie machinery is expected to be completed in the course of a few weeks.

The debenture issue of the Grey River Consolidated Company is not proving successful. If the directors cannot finance the company in this way it is \ erv probable that a reconstruction scheme will be proposed to save the property.

900 899 898 £27,767 £29,855 £30,303