Page 4 Advertisements Column 4

Waikato Times, Volume XIX, Issue 1574, 5 August 1882, Page 4

"PROSPECTUS, THE MUTUAL FIRE AND MARINE, INSURANCE CCMPANY OF NEW ZEALAND. Incorporated under " The Joint Stock Companies Act, 1860," and the several Amendments thereof.

CAPITAL £200,000 Divided into 200,000 Shares ov £1 Each, Payable as follows : One Shilling per share upon application, One bhilliug per Share upon allotment, and One Shilling per share on the eighth day of January, 1883 (if required). Directors : John Buchanan, of Auckland. Merchant William >Buchanan, of North Shore, Gentleman William David Dallen, of Auckland, Manufacturer Alexander Dewar, of Auckland, Mer-, chant James Dickey, of Auckland, Ironmonger Walter Dowden, of Auckland, Auctioneer Thomas Hancock, of Auckland, Brewer Donald Hugh McKenzie, of Auckland, Merchant James McGowan, of the Thames, Merchant Richard Monk, of Auckland, Gentleman William Henry Skinner, of Auckland, Builder Bankers : The National Bank of New Zealand, Limited. Solicitors : Messrs Hesketh and Richmond. Temporary Offices : Canada Buildings, Queen-street.

TJie objects for which the Company is established arc :—: — 1. To carry on the busine&s of Fire and Marine Insurance in all or fauch ot its blanches as the Company shall fioin time to time determine. 2. To purchase or otherwise acquit e and take over all or any pait of the business property or liabilities of any other Company carrying on Fire and Marine Insurance business. 3. To purchase, lease, or otherwise acquire any real or personal property which may be convenient or necessary for the purpose of the Company. 4. To sell, demise, mortgage, improve, manage, or otherwise deal with any property of the Company. 5. To invest the monies of the Company in such securities as may from time to time be deemed expedient and without limiting the gcneiality of this clause. To take or otherwise acquire and hold shaies or Stock in any Company, or in any partnership arrangement transaction Avhiuli may be deemed directly or indiiectly advantageous to the Company. 6. If deemed advisable, to borrow money, either with or without secmity on all or any of the property of the Company, or by issuing debentures charged on all or any of the Company's property (both present and futuie), including its uncalled capital, 7. To do all such other things as are incidental or conducive to the advancement of the above objects. This Company has now been fully established, and without any appeal to the public ovei Ten Thousand Shares have been already applied for. In many instances the applications were repeated and-the number of shares doubled. The Company has been established on principles different to thoseof the other Insurance Companies now existing in the colony. Of these principles the chief is that known as the Mutmal principle, by which the profits of the Company, after paying interest at the rate of 8 per cent, to the shareholders upon their paid up capital, aiul after such deductions for the formation and replenishment of the reserve fund and other contingencies, are to be divided into two equal parts, one part of which will be divided between the Insurers in proportion to the premiums paid by them respectively to the company during the last preceding year, and the other part will be divided amongst the shareholders in proportion to the paid up capital on their shares respectively. By these means shareholders derive the following benefits : — ]&t. They receive 8 per cent, per annum upon their paid-up capital. 2nd. They receive as a bonus or dividend one-half of the balance of piofits distributed in proportion to the amount of then- paidup capital, while Insurers receive as a bonus or dividend the other half of balance of profits, distributed in proportion to the premiums paid by them during the last preceding year. If a person occupies the double position of shareholder and insurer, then he partakes of both sets of benefits. Another feature in connection with the undertaking is that shareholders are only liable for losses. The advantages derivable from an undertaking, based on such principles., must at once appear clear to every intelligent mind ; for the shareholder and insurer are stimulated alike to advance the interest of the Company and prevent losses—First, by directing 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. In this way both Shareholders and Insurers work together for one and the same object, each being stimulated to make the business of the Company as large as possible, and so produce . a large bonus or dividend, in which they each equally participate. This same result or object also acts as a preventive to the occurrence of fires and losses. In this way each set o* beneficiaires has a special and particular interest in the welfare and prosperity of the undertaking, and it is this principle which forms the company's strongest safeguard and protection. The larger the number of Shareholders and Insurers, the/further this safeguard and protection is extended ;, for, as each feels the prosperity of the Company, so each feels its reverses,, though both are felt in different degrees. As to the' necessity for such an undertaking, it is quite clear that it ,is called for. The business of Fire and Marine Insurances has been,, arid .still is .iricreasing throughout the colony, and 'especially' is this ' ssto t in the Auckland Provincial District.* > \S^ X \ tj T,he vast returns' which haye^been' ob- t tamed by our^pcalconipanieV demonstrate .beypndydoub^t'h'at a busineXs'rot.vei-y 'great magnitude is" being jtransa^'d^year after tj^f^^^mi^^ amotmt of <^M-»P^PlM«s&±< ,V'fe ,-'>}