The Mutual Fire and Marine Company.

Thames Star, Volume XIII, Issue 4233, 1 August 1882, Page 2

The Mutual Fire and Marine Company.

The prospectus of the Mutual Fire and Marine Company appears in our advertisement columns.' Although this system has worked admirably in Australia, it has never been tried here, and this company is started in Auckland with a view to introducing what the promoters deem the best basis for insurance into this colony. One Mutual Fire Society in Australia has been in existence nine years up to May, 1881, and for the last eight years it has paid 20 per cent, bonus dividend equally between shareholders and insurers, besides 8 per pent, interest to shareholders upon their paid-up capital, and in Mayj 1882 (the end ot its tenth year); it had in invested funds the handsome amount of £45,000. What is more remarkable still

is that these results bavo all been from a call d-up capital of only Six thousand two hundred and fifty pounds. The , capital is £200,000 in £1 shares ; payable Is on application, Is on allotment, and Is on the Bth January. The system of business must commend itself to all, and it has been an unqualified success m the life assurance department. Shareholders derive J.he folllowing benefits :—lst. They receive 8 per cent, per annum upon their paid up capital; 2nd. They receive as a bonus or dividend onehalf of the balance of profits distributed in proportion to the amount of their paid up capital, while insurers receive as a bonus or dividend the one half of balance of profits, distributed in pro; portion to the premiums paid by them' during the past preceding year. Shareholder and insurer are stimulated alike to advance the interest of the Com-.-pany and prevent losses-^First, by .direct/ ing business to the company. Second, by: exercising caution in' the: selection of risks which they ..bring; .and, Third, by using extra precautions to prevent fires, by which their bonus or dividend would be absorbed. A large number of shares have been applied for, and the Company is growing in favor with the public.