Finance Stocks and Mining

Free Lance, Volume IV, Issue 172, 17 October 1903, Page 11

Finance Stocks and Mining

THE directors of the South British Insurance Company had an excellent statement to present to the shareholders at the annual meeting, held an Auckland, on Wednesday. Tne detailed figures of the statement of accounts show that the premium income was £251,732, while the fire and marine losses aggregated £160,637, or 63.81 per cent, of the premium income, in addition to the losses, £5000 was set aside to insure current risks. This was in excess of the amount so applied last year The expenses of management totalled £64,412, or 25.59 per cent., while the underwriting profit amounted to £26,683, equal to 10.60 per cent, of the premium income Of the eixpenises, £3734 was disbursed in contributions to Underwriters' Associations and Fire Brigades. The revenue account was augmented by £17,784 interest received and accrued. The' paid-up capital of the South British amounts to only £64,628, and to pay a 10 ncr cent, dividend on this requires only £6462 16s. « * * It must be remembered, however, that the shareholders in the past had the capital reduced by £1 per share. — the amount was written off to wipe out accumulated losses — so that when 20 per cent, is naid on the present capital, it js but equal to 10 per cent, on the amount originally paid-up. Then, with regard to the premium income of £251,732, a pronortion of this is derived from marine insurance', and of the balance a good deal comes- from outside of the colony, because the South British has branches and agencies throughout Australasia the East, and South Africa. * * * Fair allowance is not made for all this by those who choose to think that the insurance companies are making big profits out of the fire premiums obtained in this colony. The assets' of the company show landed property £116,569, mostly the freehold and leasehold premises of the company. Loans on mortgage amount to £93,719 , fixed deposits, £51,500, stocks and debentures, £7105, Municipal and Harbour Board debentures, £43,000, Government securities, £63,196; and cash in hand, £22,798. * * * The reserve fund now stands at £160,000, the reinsurance reserve at £95,000, and the reserve for outstanding losses at £69,066. By splendid management, and a series of fortunate years, the South British has attained an unasisailably strong nosition, and it is no wonder that the shares command such a high r>remium. * * ♦ Mr. Piernont Morgan and Mr. Schwab appear to have played ai pretty little game with the Steel Trust, netting a million sterling by their performance. The American Steel Trust and the International Shipping Combine have pretty well wrecked the great financiers of America, and this latest incident, with respect to the Bethlehem Ironworks, is a paper transaction, except so far as the shares were lesold to the public. The excitement in Wall-street, owing to the disclosure is certain to lead to another financial panic, and money will again harden this week. Mr. Morgan's life w r as threatened the other day by those who lost heavily over the Steel Trust stock, and it would come as no surprise to hear that some derelict had killed ham. The weakness of the New York Stock Exchange is the greatest danger to the money markets, and' the oollapse of the Steel Trust will lead to British markets being flooded with a vast quantity of structural steel and metal goods. * » From the country districts there comic glowing reports of the prospects. All up the West Coast of this Island the spring has opened well , grass is plentiful, and the outlook is as satisfactory as oould be wished . To all appearances the outlook for produce is about as good as it was last year, which means that, with an increased production, our farmers will have a larger income than ever before Under these conditions, it may be safely said that we are in for a continued spell of prosperity, with work and wages as good as they are now. Nor, does it seem likely that the stringency of the Home money market will seriously affect us. On the whole, there is tolerably good

reasons for taking an optimistic view of tho immediate future. * • • The shaiennarket is decidedly inactive, and is likely to be fitful until after the close of the yeai\ The pernod of holiday distraction is now coming on, and already we are in sight of race meetings and agricultural shows. Restneted business does not, however, bring about any reduction in vaLue® — it is only the brokers who suffer for lack of business. i -^ * Bank shares show no variations for the week. Nationals are quoted at £4 12a 6d, but there are no buyers. These sihares will come into prominence in a few weeks, as the half-yearly dividend becomes due. Bank of New Zealand shares are in demand at £3 19s, sellers asking 81s. Bank of New Zealand shares have been somewhat neglected, possiibly because of the uncertainty as to the proposed banking legislation. * * * Financial shares are slow. Metropolitan Building had quittance at £12. and there are further buyers at the price. Wellington Building shares are wanted at £9 12s 6d, and National Mortgage a,t 44s 9d. Wellington. Trust and Loan are offered at £7 12s * * * Insurance shares are very much neielected. Nationals are wanted at 20s 9d but there are no sellers. The bal-ance-sheets of the National Insurance Company and the New Zealand Insurance Company w ill be available in a few weeks, and it is expected that both will show good results. *-"■■>•• Gas shares are not quoted, simply because they are difficult to obtain. Buyers bid 20s for Feilding Gas, and £4 l,js for Palmerston North Gas. As a rule any gas shares offering at market prices can be leadily sold. * * ■ j - Miscellaneous shares are quiet. Meat shares are in very poor request, and show a weakening tendency. Manawatu Rails changed hands at 27s Gd, w hich appears to be the full market price, and Ward and Co. (brewery) sold at £4 15s. There is enquiry for Donaghy Rope and Twine shares at £13, New Zealand Candle shares at £D 2s 6d, New Zealand Drug at £2 Bs, and Wellington Opera House at £4 17s 6d. * * * All that can be said for mining scrip is that the record of sales on the Dunedm Stock Exchange shows some slight improvement, while in Auckland mining stocks Talismans have been freely sold to Wellington speculators.