CHAMBER OF COMMERCE.

New Zealand Herald, Volume XX, Issue 6787, 18 August 1883, Page 6

CHAMBER OF COMMERCE.

A SPECIAL meeting of the Chamber was held yesterday for the purpose of considering the report of the committee.upon the Fire and Marine Insurance Bill, now before the General Assembly. Mr. L. D, Nathan (President of the Chamber) in the chair. Present: F. Larkins (McArthur and Co.), A. Heather (Owen and Graham), J. Lamb (John Lamb and Son), H. B. Morton (Morton and Co.), Graves Aickin, A. H. Nathan, JR. H. Stevenson, VV. Tait, J. lieid, F. E. Compton, W. R. Waddel. The following is the report of the committee : —" A telegram having been received from tho Wellington Chamber of Commerce asking cooperation in resisting the passing of the Fire and Marine Insurance Act now before Parliament, your committee went through the various clauses of the Bill, and suggested certain amendments, which will be submiteed to your consideration."

The CHAIRMAN, in moving tha adoption of the report, said that the committee approved of the general principles upon which the Bill was framed, because they were for the protection of the public. Ho thought, however, that copies of so important a measure should have been forwarded to the various Chambers of Comruerco throughout the colony, in time to gather public opinion with respect to it. That legislation on the subject was required could hardly be denied. One case showed the necessity of some such legislation. • There was a company which began business in Auckland with a paid-up capital of £16,500. There was 2s paid-up on the shares, and they were quoted iu the market at from Is 9d to 2s 3d. Notwithstanding this, that company proposed to undertake a risk of no less than £70,000 at such reduced rates that none of the really sound and stable companies in the place could afford to compete with it. Suppose a failure in such a case what would be the position of the public? What measure of protection was there for insurers in Buch circumstances? It was to prevent the evils which such enterprises were calculated to bring about that some legislative protection was needed. It was said the Bill would drive the foreign companies out of the field. He had no such fears. It would be a serious loss to the community if any such result were to follow. The public might be trusted to discern those companies that were stablo and bssed on sound commercial principles. But the Bill provided for every kind of facility for insurance business. He moved, " That the Chamber approve of the general principles of the Bill." Mr. G. Aiokin seconded the resolution. He said that some objection was taken to the distinction of " foreign" and " coloniil," but this would not have any influence on the business of any thoroughly sound company. The third clause provided that every company should have a paid-up capital of £50,000. This was a fair criterion of ability on the part of such a company to perform its contracts. Mr. Fbedebick Labkin'S approved of the general principles of the Bill. : tie thought that it was a step towards securing the public against enterprises which were baseless and fraught with evil to those who put confidence in them.

Mr. R. H. Stevenson said the Bill would be an effectual check on bogus companies. There were six insurance companies who had their headquarters in New Zealand. These six companies exceeded by 30 per cent, the business done by the eighteen Australian companies. This showed the preference of the public for companies possessing large capital and accumulated reserve fund. He thought there should be a distinction made between companies of "unlimited" and "limited" liability. He presumed the Chamber of Commerce regarded the subject as a body having cast upon it more or leas the duty of protecting the general public in such matters. Mr. A. Heather said the effect of the Bill would bo to increase premiums 100 or 200 per ceut. by lessening competition. That was an important matter for consideration. One or two companies being withdrawn, the others would combine to raise the tariff. Ho thought the public were as well able to take care of themselves in this as in other matters. The motion was carried. On the motion of Mr. Lahhiins, seconded by Mr. Lamb, it was resolved, "That this Chamber recommend and urge upon the Government the importance of pressing on the measure during the present session." It was also resolved that a circular on the general subject should be sent to each of the representatives in the Assembly of the provincial district of Auckland.