Finance Stocks And Mining

Free Lance, Volume V, Issue 213, 30 July 1904, Page 5

Finance Stocks And Mining

THE balance-sheet of the Wellington Building and Investment Company for the year ended 30th June is as satisfactoiy as that presented last year. The net profits for fie past three years show as undei — 1902 £3," 84 7 11 1903 40bl 2 9 1904 4116 1 7 » * This shows steady impiovement, and is due to the increased funds available for investment. The deposits and aeciued interest, which in 1902 totalled £109,690, increased in the following year to £118,688, and in the latest bal-ance-sheet stands at £123,233. According to the statement undei review, the amount available foi distnbution is £4437 Is 3d. Out of this, the dividend, at the rate of 10 per cent, per annum, absorbs £2750, and a sum of £1500 is added to the reseive. leaving £187 Is 3d to be earned forward. •*■ * * The re-erve fund has beein stremethened dvi ing the past two years by £2750, and now stands at £18,750, or just £8750 less than the paid-up capital The detailed figures of the balance-sheet show that the amount invested in mortgage is £156,435, which is iust about £500 less than the amount shown in the previous 'balance-sheet. The other investments of the company have, risen from £9038 to £23,622. The lattet: is fieehold and leasehold property, wtiich, however, appears to be encumbered with mortgages to the amount of £11,819. The amount received from interest for the past yean- was £9424, against £8875, and rents produced £823 as against £715. The Wellington Building Society shows a very good balance-sheet, and the shares will, no doubt, maintain their fiimness in the market. * * * The mam featuies- of the balancesheet of the Union Bank of Australia for the half-year ended 29th February a.re Net profit, £115,000, an increase of nearly £2000 as compared with the corresponding period of last year ; dividend of 10 per cent., absorbine £75 000. as against 8 per cent, absorbing £60 000. There has been added to leserve fund £25,000, to officers' guarantee fund £4000, and. £10,000 has" been written off bank premises The Sun Insurance office in 1903 ieoeived £1,222,666 net fire premiums, and paid' or provided for £622,026, the expenses having been £423,208 Investments yielded £85,983, and theie was a credit balance of £257,812 for the year. The total available balance, including the amount brought forward, was £349,859. Dividends amounting to £114,000 were paid, leaving £235,859 to be carried forward. * » • The report of the Norwich Union Fire Insurance Society foi 1903, submitted to the shareholders on 7th June last, stated that the net premium income for the year amounted to £1,140,351. The per oentage of losses on premiums was 51.41, as against 51.55 in 1902. After setting aside one-third of tihe premiums as a leserve against liabilities on policies not run off, the balance at credit of profit and loss account, including the unappropriated balance of £189,921 brought forward from the previous year, was £341,981, out of which an interim dividend of £2 per share had been paid * * * A further dividend of £2 per shaie, with the addition of a bonus of £1 per share, making £5 for the year, was declared. The undivided balance amounted to £286,981, inclusive of £125,000 required to provide for losses arising out of the conflagration at Baltimore in February last, was carried forward * * * The report of the Northern Assurance Company for 1903, submitted to shareholders on 10th June, stated that in the fire department the net premiums amounted l to £1,019,209, an increase of £58,843. Net losses were £492,152, and the total expenses of management (including commission), £342,049. * • * The directors, having decided to increase the provision for liability under current policies from 40 to 45 per cent., the sum, of £50,960 was deducted from the profit of £161,470, which would otherwise have been shown as the result of the year's working, leaving £110,510 to be' carried forward. The

total accumulated funds of the company on the 31st December, 1903, amounted to £6,523,504. * * • The Baltimore conflagiation, which ocouned on the 7th, Bth, and 9th Febiuary, hit all the' leading British fiie offices veiy severely, but it is to their oredit that one and all met .the claims promptly. The Royal Insurance Company paid £300,000 at sight, without dxstuibing its Bntish investments. The conflagration was a lesson, a very useful lesson, both foi undei writers and insurers. The fire swept foity city squares, and reduced to ashes over 2000 o<f the principal business buildings, the loss being estimated at £20,000,000. *- * * The fire raged foi about forty hours, and five thousand firemen and about (00 volunteer^ fought the flames. The chief lesson to underwrite! s is that the conflagration hazaid must alwa.vs be leckoned with, and in this colony with its numeious wooden buildings, the risk is even gi enter To the msuied it teaches the lesson that cheap insuiance is no good unless the losses are paid promptly amd in full. One specially strong; featuie of the Baltimore fiie was the fact, noted in the "Coast Review," that among a section of the dry goods merchants a system of mutual insurance to the extent of five million dollars existed. The mutually guaranteed eaah other, and had to face a total loss. It was called mutual insurance, but when they came to figure un, after the conflagration, they found there was no insurance in it at all. for what was received with one hand had to be paid 1 back with the other, and the loss was not covered. * * * The shaiemaiket shows normal business, without any variation wi value*. In bank shares, business was done in Nationals at £4 16s 6d ex dividend, which is rather a good puce. Bank of New Zealand shares are in demand at £4 18s, but sellers are scarce. Bank of New South Wales shaies aie offered at £42 los. * • # Financial shares are exceptionally quiet, probably because investors think the prices aie beyond the true value. National Mortgage shares aie offered at 4fis 6d. and Hutt and Petone Building shares at £5 ss. * + * G-asi shai es- are quiet, and it may be that the recent agitation for municipal gasworks has detailed investors. Wellington Gas shares, £5 paid, changed hands at £9 2s 6d. Feilding Gas shares are in demand at 21s. All other gas shares are, for the tame being, neglected. The inquiry for insurance shares' is restricted to Nationals at 21s 6d and Standards at 18s. Although the other insurance shaies are not quoted, it is only because there aie no selleis. Meat shares are again neglected, and the sheep returns, disclosing a further shrinkage of the flocks, will, perhaps, tend to discourage investors. Many of the companies must do a large turnover to earn profits, but if the fat stock is not available this cannot be done. Wellington Meat Export shares, £4 paid, sold at £5 10s cum dividend. ■* * * Manawatu Rails are in steady demand at 29s 6d, but since sales have been made at 30s it is not likely that a lower figure will be accepted. Wellington Woollens changed hands at £5 3s Mauiiceville Lime shares sold at 27s ; New Zealand Drugs at 45s ; and Riveihead Paper Mills at 31s 3d. The mining market has relapsed into quietness The dredging returns have been disappointing all through the season, and speculators have had nothing to rouse them into activity.