NATIONAL INSURANCE COMPANY.

Tuapeka Times, Volume V, Issue 359, 27 May 1874, Page 6

NATIONAL INSURANCE COMPANY.

HALF-YEARLY MEETING.

The first half-yearly meeting of the National Fire and Marine Insurance Company was held yesterday afternoon in Parley's Hall. The attendance was large, the hall being completely filled. Mr. W. J. M. Larnach wns voted to the chair.

The CHAIRMAN introduced the business by stating that barely nine months had elapsed since they had first met together to consider the propriety of establishing a new insurance company. Whatever doubt might then have been entertained as to the necessity for such a coupany mnst now be dispelled. It had been an undoubted success from its first commencement, as would be sl-own by the statements laid before them. The first nesting to institute tho company was hold on the 22nd August last year, and the company was started forthwith. The nine provisional directors were appointed from the Provisional Committee on the 11th September. The' object of electing these directors without calling a general raoeting was to have a responsible body forued at once, in order that the company mujht commence operations at once, and by that means secure a considerable number of fire premiums expiring at the September quarter, a share of the marine business, and the wool risks, a most profitable part of the company's business, the season having then just beg-un w> open. The directors commenced to allot shares on the 15th September, and concluded the work, after many long sittings both by day and by night, on 24th October. In all, 370,939 shares were applied for, by 4,000 applicants. Of that number Otngo applied for 169,885 ; Canterbury applied for 64,058 ; Auckland. 82.491 • Wellington, 26,879 ; Nelson, 8,821; Napier, 8,770; West Coast, 7,345 ; Tnranaki, 1,825 ; Marlborough, 895. The applications were gone over three times, namely, by a first, second, and third allotment, which entailed very laborious duties on the directors. While these allotments were proceeding, and within 12 days of their appointment, the directors had lotters of instructions in tho hands of agents, and business commenced at the principal Northern agencies. The company was incorporated within one month from tho date of the first meeting, namely, on the 20th September. Accordingly, the operations of the company stood thus: Directors appointed, 11th ; company incorporated, 20th ; and bnsiness opened on the 25th September. The company started with 3.67U New Zealand shareholders. [The balance-sheet was then read and submitted. This report has already appeared in our mercantile columns and need not be repeated.] In continuation of his remarks tho Chairman -went on to suite that the company had had a very fair share of the fire business of the country, taking into account the very recent establishment of the several ngencips, the managers and agents having done their work well and improving every day. The company's London agency wns already in operation underwriting marine risks from tho United Kingdom to New Zealand ports. The company wns already underwriting risks, some of which had run pff. In manno risks from ports in New Zealand to the United Kingdom a large business had been transacted, full lines having been underwritten from Otago by 1G ships, from Canterbury by 11 ships, from Wellington by seven ships, from Auckland by five ships, from Nelsou by four ships, and from the Bluff by three ships. It would bo satisfactory to learn that, so far iis it was consistent with prudence, a necessary proportion of these risks were reinsured. The hull intercolonial and coastal business had also progressed satisfactorily. It would be seen that the company had a fixed deposit with their bankers on 81st March last, £30,000. Since that time advances had been made to the extent of £24,952, of which £10,000 was city bonds, the remainder bein<j on undoubtedly good freehold security. Bonds J had been granted, and were now waiting completion, to the extent of £9,000, which, inaauwbilo, would probably employ all the company's available funds; but it would be borne in mind thai, the company holds as a security £10,000 of good negotiable debentures, transferable, in case of need, at any time. He next referred to the transactions of the new or current half-year. Since 31st March, one and a half months, the.r transactions had been as follow : — Premiums, £6,102; less reinsurance and commission and charges, ii' 2,753; losses, £2,368: £!)81. In concluding, the chairman said that the success of the company was iv a great measure due to tiie gentleman who held the responsible position of he id of the company. (Applause.) The various agencies had also done their duty well, and nothing could have been more satisfactory. In Auckland and Christchurch the services of well-qualified men hod been secured, nnd in tlieir hands the company had nothing to fear in either of these directions. The directors as a whole had all ■.along worked as one man, and he could speak for the whole of them that as individuals they each and all f>ad the interests of the company at heart. (Applause.) A» oi.i' swong team they had pulled together iv the saTOo yoke, and ho believed it would be to the interests of \ho company that no radical change should be made in thu Boatil of Directors for the ensuing year. (Appin t.>ii\) Hi concluded by moving the adoption of the repoii. Mr. C^Mrrn si conded the motion. Mr. Htr&i,. ,'Ji'kt much interruption, moved for the adjournment of tho~ra^''ti ! K. He said that sufficient publication had not b<-en giver*-, .i'id that parties from a distance hod hail no opportunity of .> tending the meeting. The motion, not having been secondM, Itii I<> the ground. Mr. Reeves suggested that the dividend as proi*oswl by the directors should not bo declared at that meeting. Mr. E. B. Cargill spoke in favonr of the adoption of the report. Me felt sure that every shareholder present would be highly gratified with it. The report showed that the first six mouths of the company's operations has been highly satisfac ory. (Applause.) This state of things was the more satisfactory, when they bore in mind that the first six months of an insurance company was the most critical period of its existence. He trusted tho shareholders would not obstruct the motion for confirming the report. The matter of declaring the dividend could be dealt with, afterwards.

Mr. Walter referred to a letter written by the Provisional Secretary of the company, and which appeared in the Daily Times of 22nd August. The letter stated that the Provisional Directors had not taken adva itage of their position in the allotment of shares, but that they had been placed on an equal footing with the other shareholders. What he wanted to know was, Had that been done ?

Tiie Chairman replied that, at the time the company was first projected in Dunedin, the intention was to make the capital half a million sterling, and that the promoter* si ould have 350 shares, with right to take up that number on paying for them. It was afterwards considered desirable that the capital should be increased to double that srm. viz., one million sterling. Indeed it had been proposed to make the capital two millions, and had that been done there would have been no occasion for the question. However, as it was the promote -s tnought that they were justified in in" creasing the uumber of shares to 500.

Mr. Waltek: Your statement, then, contradicts the statement made by the writer of this letter.

Me. MARSHALL said that at the first meeting he had pnt down his name for 500 shares. A number of gentlemen who were present at that meeting showed no particular de>ire to put their names down, as they seemed rot to be very sure whether tho project would be a successful one or *'ot. A discussion took place amongst the provisional directory, when it was decided what should be the mliimum quantity to qualify a member to become a director. After that motion had bren carried, the question was put to him, Were the directors to be remunerated for the services rendered in floating the company ? Some of the thought that SO bhares should be allotted to tbem at par. He stated at that meeting that he considered 60 shares nothing, and eventually a motion was carried that 150 snares should be so allotted. That number, added to the 830 originally agreed upon, made up the 500. They had to pay for the shares so allotted to them the same as any other shareholder.

Mr. Reevks moved that the available revenue, as shown in the balance-sheet, be carried to the reserve fund, and that no dividend be declared at that meeting.

Mr. C. R. Chapman seconded the amendment, and, in doing so, stated that this attempt at declaring a dividend appeared like a dodge on the part of the directors to buoy up the share-market. (Cries of " Oh," and uptoar.)

Mr. Leahy pointed out that the investment of the amount proposed to bo allocated as dividend for a period of six months would yield but little to the company, and that it -would be far better for the shareholders to get the amount divided amongst themselves.

On a show of hands being taken, the Chairman declared the original intention to have the amount paid over to the shareholders as dividend carried.

It was than moved by J£r. Copelaxd, and seconded by Mr. Walcott, "That the retiring Board of Directors be re-elected for the ensuing ypar." Mr. D. M. SPKDDING moved, as an amendment, that they be not elected. In doing so,' he stated that he " was aware of the existence of considerable dissatisfaction with the fact of the directors having been appointed by the provincial directors instead of being elected by the shareholders.

The amendment was uot seconded, and eventually the motion was carried.

Before separating, the meeting awarded a vote of thanks to the Chairman.