Finance Stocks and Mining

Free Lance, Volume III, Issue 134, 24 January 1903, Page 24

Finance Stocks and Mining

THE balance-sheet of the New ZeaZealaud Fire and Marine Insurance Company, for the year ended 30th November last, is an mteiesting study, as showm°- the extiemelv speculative cliaracter of fire and raanno underwiiting. The nremium income for the year under review totalled £386,9(>0, the largest income recenved during the past six years. The losses totalled £249,1/38, or 64.39 per cent, of the premium income. The expenses amounted to £104,370, the hierhest for six years, and equal to 26.97 percent, of the premium income. Deducting the losses and \\ orking expenses from the pre^ mium income, the net underwriting profit amounts to £33,432, or aibout 8 64 per cent, of the premium income. The variation in tto underwriting profit illustrates the uncertain nature of the business, and tihe need for extreme' caution, at all times. Taking t'he> past five yeans, the underwriting and the ratio to premium income show as under

# ♦ * There was, it will be noted a yen heavy loss in, 1898, while 1 in the following years substantial profits were earned. In 1900, the underw nting profit was exceptionally good The> New Zealand Insurance Company carries on business over a wide extent of country being represented throughout Australia, the East, South Africa, and in parts of the United States, and w ere it not foi this fact the profits w ould have been very much smaller, foi it is well-known tha* there is scarceh a single msuiancc compa.in doing well in this colony

Besides the undeiw ntmg pioht of £33,432, investments bi ought in £21,9b3, making 'the total net piofit for the year £55,395, in addition to which £19,909 was brought foi-ward fiom the previous yeair, thus making £7-5, 305 available for distribution Of this amount, £30,000 ha& been distributed in dividends, £15,000 has been added to the reserve fund, which now stands at £140,000, £10,000 has been added to the re-insurance fund, bringing it un to £lbo,ooo, and £20,305 has been earned forward. The company's investments, whiich are well spread, total £542 733, while the cash balances total over £92,000. • * • The balance-sheet of the Equitable Building and Investment Company of Wellington, for the^ past year, shows a net profit of £6979, to which lias to be added £153 brought loiward from the previous year. The 1 dividend of 10s per share absorbs £5000, and the sum of £2000 is to be added to the reserve fund, leaving £132 to bo canied forward. The coimoiany's investments om mortgage total £331,589, and la,«t year the interest derived from this investment amounted to £17,482. The reiservei fund of the oomoa.nv now stands at £31,500. The shares nf the Equitable Building Company are viewed with extreme favour bv the investing miblic, and hio-h prices are readily naid for any parcels placed on the market for s.ale The balance-sheet of the Wellington Tiust Loan, and Investment Company, for 1902, is also a very satisfactory document. The net profit for the yeair amounted to' £12,371, and there was brought forw ard from the- previous year £1920, thus making £14,291 available fox distribution. Of this, £5000 has been appropriated for strengthening the leserve fund, and £8100 goes in a dividend of 8 per cent , a,nd after these deductions are made a balance' of £1191 remains to be earned forward The amount- invested m mortgages and other (securities amounts to £364 987. The sum received in interest., lents, and fees last year was £20,0(il, and the 1 company made a profit of £3381 bv the sale of part of its property * * * The Union Bank of Austi aha lias experienced a. very profitable half^eai, as the balance-sheet lust issued in London show s that, m, addition to paving a dividend ait the 1 rate of 8 nei cent per annum, £50 000 has been added to the reserve fund, and £20,000 earned for-

wand. The. deposits total £15,261,000, cash investments, £5,738,000,' and bills and other securities, £12,494,000. The Union Bank is represented throughout Australasia* and the handsome profits earned reflect the excellent economic conditions prevailing m the colonies. Of all the States of the Commonweialth. Queensland suffered the most fiom the drought. The northern colony hasi had to import a considerable quantity of meat., and New Zealand t!he other day sent over a,bout 250 tons. British Columbia is being drawn upon for frozen pork, about 2000 carcases having been landed early this month ex s.s. Aoir anga. Dear meat to the consumers, a,ppe.airs to have been, highly profitable to the middlemen, for the Queensland Meat Company is reported to have made a pio.fit of upwards of £600,000 during last. year. Queensland will have to irn^ port supplies for a little longer, and if further rains do not fall the importing business may be inevitable for a long time>. • • • The drought in Victoria and Ne>w South. Wales appears to have broken up completely — -at all events, prices, of produce are steadily falling. For instance, when Sydney was importing fat stock from New Zealand, the price of beef at thei Homebush Yards was equal to 55s>per 1001b., now it is. about 30sr>er 1001b., a decline of 46 per cent in about eight or nine w eeks. Beef in New Zealand is quoted at 27s to 28s per lOOlbs. Victoria is not only able to supply her own w ants but is also furnishing her neighbours* with beef and mutton, and exporting considerable auantities to South Africa and the East. » • • The meat, outlook is not very promising. Heavy supplies are coming forvard, while the demand is slackening. No fresh orders are being received from South Africa, from which it may be concluded that ether sources of supply are being drawn ujdoii. The lateness of our season caused an undue scarcity during the past five or six weeks, but now supplies are coming in freely, and heavy shipments are being sent to London. With the increase in supplies, prices are falline, so that we are gradually getting baok to normal conditions. • * • The gold yield of Australia, in 1902 was expressed in sovereigns equal to £17,122,000. as against £15,943,000 in 1901, and £15,141,000 in 1900. The

value of the output of last year shows a very substantial expansion, and is due to the increased production in all the colonies, but particularly in Westi Australia. As a- matter of faot, the gold output of Australasia mi 1902 is by far the largest on record, being approximately 4,379,000 crude ounces.

Piofit rei ceni .898 .894 .900 901 .902 32,782* 34,232 f8,944 35,5fi0 33,432 10 56 * 10 8(5 20 15 9 57 8 04 * T:naa