South British Insurance Company.

Auckland Star, Volume XVII, Issue 241, 13 October 1886, Page 5

South British Insurance Company.

A Lively B-eeting. An* unusually largo mooting of Hie shareholders Of the above Company wart held this forenoon at the otlices of Hie Company. Captain W. C; Daldy occupied the choir. The report ami balanco eli'iot, an published by tin yesterdfij-, were submitted.

The Chairman, in moving the adoption of the roport, said thai nothing could havo boon raoio j i accordance with the wishes of tho directors than tho action taken by tho Southern shareholder, in aripoiutl-g Mr Harrip, 'a gentleman ot high po'-itiou in commercial circle*, and a Urgo shareholder ucounintcd with insurance bu*-,iaeßH," to vi.lt Auckland and make full inquiry Into all matters uflo ling tha b-.ino-B of the Company. The shar,: holders had doubtless road in the press tho satisfactory result of his investigations. Ho gave an emphatic ilonml to ono of tho statements that had been circulated to tho i fleet that tho directors had borrowed f-c fur.da of the Company. No director had roooivod mon uy on loan in any form whatever, .exaggerated statements hnd '060,1 inndo of ttin loss en tho London business The net loss thero to tho 30th of Juno. 188(1, hod been on marino, .-£1,902; on lire. £7,(ii7. Mo.t of thoso 105303 h-d boon made in 1881 and 1885, immo diately after -which the arrange-none had been mado w.th tho National and Adelaide for dividing tho business. From recont arrangemoats bettor results wore expected in this section. Tho full and satisfactory repot of the (Ji-noral Manager en tho Kastcrn b.Tmrhts showed that tho large outlay incurred in relibli*hing this br-.nch would yield lftvgcr pr.iiU. The bu mess in Culifornin had been bill, and operations wero being curl ailed ilicro. Tlio present position of the Company was this: In 188:1, the assets wore£2ll,2lo— thohlgheßt lOint; this voar. after deducting the £9,318 dibit to profit and loan, the aS'cts are £.15,-99, - reduction of .15,311 ; b it during that period tho shareholders hud received £ 0,053 During tho p ist two years, the iccomo hid bctm reduced .-Iii.OOO by cutting unprotUablo businc s. and carrying smaller lines. While making theso reductiors. losfcs on the piat premium account had bean mado out of a rediiccd Income; Tho not loss fb* tho past yeni* wai £9,315 Tho losses, totalled £191 000-namily, fire -86?8. ono ovor £1.00.'; marine, 039—eiuht ovor £1,000. and one over £2 COO; average. £115 Our expenses ara &\WO Icbs than last year, but, owing io curtailment of business ihey are one pr cent, moro on income. Owing to the depress'oa in business, the dlroctors hi_d only drawn half the honorarium, ond would continue to do so till dividends nre paid. Tae Company had spent a largo amount in building up a business, burl paid for their cxporionce. and ho trusted that the lime had arrived when thoy would rc.p tho benefit, lie saw no reason to be clishearton.d. A shareholder had marlo a suggestion which th-i directors thought it right to submit, namely, tliit the d bit balance bo written oU'tlinKesorvo Fund.

The Hon. Mr Chamberlain followed With a lengthy speech containing n. series of charges against Hie directors. He charged them wilh going into divers manifestly unsuccessful speculations, and alleged that In many Instances the private intci\sts of Iho directorate had been more considered than those of tho shareholders in the Company. Ho insimtp.'.'d Unit rates had been lowered to directors, atid contended that it wus the duty of the directors to have paid closer attention to live way in which the mohcy httd been oxpended. He said that the reason he had asked thorn lo use their own Votes was that lie wished tliclu to exorcise their own powers and not trust to moil who, lie thought, were acting in ti 'manlier calculated to ruin tlic company. Tlio directors were evidently determined to support their present auditors. At the meeting yesterday some strong language hud been used towards li'm by Mr Harstow and others. The shareholders must take care that their money was not. put' Into such investments lis the. Onelntnga IrOhsaltd Co., or the Oncluingit Wollen Co., or the Froczing Co., In which some of Ihc directors Were, greatly interested. The Shareholders should see that in future their auditors brought forward slalonients as to how'the funds wero luveslcd. It had been said that his aclion would tend lo ruin the Company, but he did not think that slieh Would be the ease. 110 did think, however. Unit if lite present management remained iv ollico. and were allowed lo do as UicV pleased, thai Hie shareholders would lind that Uicy_WOUld ••uiti the Co. by tho way that they carried on the bttiUOSS. He would now refer to anotlier matter ; that was I he Thamcs-Rol oruaßull wuv. They had all heard about Unit railway, but they had not all heard that some of their directors had tried to shove the Company Imo that speculation. Had they done so the shares would have gone down fully 30 per cent, at the present time. He had struggled against this project, though it was but just to slate that Mr Hobbs hud been wilh him and thai tbe Chairman bad not unduly pressed tho matter. Dtlt thero were others who were more interested. Ho could mention Mr Morrln, Mr Barstow and Mr Bticklatid.

Mr Bucklaml: "loin not a shareholder in the Thames and Rotorua Railway." (Laughter.) Mr Chamberlain : " I beg your pardon. I meant. Mr Joseph Howard.".

Mr. Barslow : "And although I am a shareholder I can state that I never took tiny part in that debate."

Mr Howard: I never voted upon that ques tion."

Mr Chamberlain : I still say that they had no I'ighl to vole upon that question. They tried to slop my action in the matter. Mr Howard : Excuse me, there's not a word of truth in all this. Mr Chamberlain : Well, I wish I may fall down dead if I am not speaking the truth. (Laughter, and cries of "Co on Mr Chamberlain."

Mr Chamberlain continued :—Well he took a legal opinion upon the matter and it was tho legal opinion of perhaps one of their highest authorities Sir F. Whit taker, and it was to the effect that they had no right to vote upon the matter. However he had to thank their chairman in that he did not oppose thorn. Tbe result was that tbey saved he did not know bow many thousands of pounds. No. the little game was to turn him out. He had been requested to retire. but the truth was that he had too great an interest in the company to do so. He knew now that the shareholders had tlio matter fully laid before them, and he would not, detain them longer, but leavejthe matter in 'their hands, thanking them for their attendance and the patient hearing they had accorded him. Tho Chairman asked if it was the wish of the meeting that he should reply to Mr Chamberlain's charges.

This was decided upon. Capt. Daldy then denied that flic shareholders bad borrowed money from the Government, Mr Chamberlain : I can prove it from the documents.

Captain Daldy: Mr Chamberlain, I have listened to you and endeavoured to keep order, and I now claim the right of reply to you, being requested by the meeting to do so. Mr Chamberlain : All right, very well, I'll apologise, but l can prove it. (Laughter.) Captain Daldy said that one of the first charges relitc Ito a transaction with Mr Earl. That gentleman having ~1,0 0 to invest, bought two mortgages, amounting to £1,500, from the company, piying CI,COO at tho timo and fivo hundred pounds later. This was a very common business transaction, and one that they ns business men no doubt often Imitated. Mr Earl at that, time was not a Director of tbo Company. With' regard to the loan to tho Auckland Timber Company, which it bad been stated had been lent.but without security, he might state that £3000 had been lent but, the Auckland TimbcrCompany had deposited deeds worth £5000 together with a guarantee to mortgage the same if necessary. He might further state that the directors of the Timber Company had authorised him to tender a cheque for the loan, and he had done so yesterday, so that matter was settled. With regard to the £80(1 borrowed by Mr Morrin, he explained that In 1879 Messrs Morrin and Jackson were joint trustees in Maddon's property. This was granted. Perhaps Mr Jackson might like to say something about that business. Mr Jackson said that the same proporty had since been mortgaged for £1200. so that the Company did not take tin oxlraordinary risk. Mr Morrin: " For my part, I never touched a penny of that money." Captain Daldy continued. He said that Mr Chamberlain hnd either gone too far or not far enough. He had insinuated all these things, yet be had not supported one charge. Mr Chamberlain had been upon that Board all those years, and yet lie had not brought the matter forward until tho present time. Ho did not believe in this mole-like work. The whole affair should have been brought, forward, or not at all. In conclusion, he denied that lie had ever refused to enter anything upon the minute book, and what was more there were others present who'could support him iv that statement. Mr Boardman said that he had been for eight years a member of the Board of Directors and during that time he could state that not one of the directors had ever attempted to serve his own interests at the expense of the company. He further was positive that no director had ever paid less rates for insurance than the ordinary premiums. In justice, he could say that Mr Morrin had always given more business to that company than any other director, and he had never asked for one penny rebate. Mr Barstow said that he had been charged with forccing the taking up of business in London, but ho might state that he wus not a director at the time that business was lirst convened by (he Company in that city. He had voted for Mr Karl as a director, but be subsequently removed from Auckland. Ho had certainly used str.ng language to M.rChambor'iin yesterday, and he was not sorry in fact after that gentleman's action, ho almost wished that he had used even stronger language. Mr Hobbs said that he wished to express that ho felt that the Directors had been humiliated by tbo action of Mr Chamberlin. He felt as much disappointed as any at there being no dividend but still he was prepared to take his share of the blame as a director. Mr. Hobbs continued at some length defending the action of the Directors and replying to tbe charges made.

Mr Klkin said that lie thought that there were some cobwebs that required to be brushed away. They would see that their total loss for the three years was at the rate of £15.000. Mr Dayid Goldie said that Mr Elkin had not touched upon the reason of the loss. Tho fact was that tlic English Companies had been doing a good business while their own had been losing iii the London branch. Mr Goldie quoted figures to prove this statement. - The cause was that, a new company entering a fresh field had to combat wilh strong companies, and thus take up trade that other companies bad allowed to pass by. The accounts showed that year by rear their reserve fund had been going steadily backw-ards. llicii interest fund had also decreased. He could not help feeling that in entering into, these outside fields they had called away their best officers to settle losses abroad to the neglect ot the local trade. They had decided to reduce (heir risk, and at times the people were alarmed This was not the action of true business men. He considered that the business had been managed in a very ridiculous manner. Mr (Hughes proposed that they should now proceed to the next business as he thought they had already washed thoir dirty linen enough in Mr Boardman urged the sale of business in those places where they were not proving PMr J V. Clarke said he had gone through the securities very carefully, and when he came to the security of the Auckland limber Co. he saw that thero was no mortgage. It was, nowever, represented that they had the right to mortgage, and hold the deeds. Ho.howo-.er still considered there should be a mortgage. Ho had resided amongst thorn for upwardsi of twenty years, and. in addition, ho had pel formed his duties conscientiously. Thiswastot roughest handling he ever got m bis life, and was calculated to do him a great deal otlaiti. a shareholder asserted that in EdenToirace it was the custom to insure buildings, toagieat deal more than their actual co_t. lie let-iuii to ail instance where a house which cost £l.i w_Tb__4ed down, and, according to tho papers the insurance paid on it was £300. The Chlfrnutii feared that tbey were pruning down too fast, and there lay the dangoi. Re-

spccting the English business, he quoted figures to show that in Australia and New Zealand their losses hnd been 70 per cent. In Great -Uniarn they were geitlng Via for risks for which h'-iy were dhly paid 8s herd. Tltcy liftd Used their host endeavours to promote legislation relative to limited U.-.blUtyi . iho ii.otio-i for tv.o nckmtirin til the iepori arid balance-sheet was ttiiniiiniotisly 'lgi'c.d Id. Mr ,T. M. Clark regretted that Mr Hughe's lirid not followed up the resolution which lie said ho irotild propose; He would move that this jil'Vlliiir r'i fa >re;.t tllrtt Mr Chombcrlin should Have made sueli serious cluirges against the Director:-, which charges, in the opinion of thi3 meeting, Mr Chambcrlin failed completely to establish.

M.r Kalph Kecking seconded. 2-Ir Bertram did not think it. was competent for this meeting to .'it in judgment on the director., lllid Ihdtigh: tlic limli.r W;l- b> vt loftiildne. lie thought Mr f'luMnberlln might have exilggcratcd the miittcr In lilsown mind, but he was not prepared to say yes or no td tho question, lie thought it would be unwise to use the proxies.

Mr Ooldip was of the same opinion. '-."': .Mr l.cc.ing took it that What. Was required was tin expression or' opinion fro'tn thoso present;

; the Chairman said lie. would be sorry to put, the resolution unless lie felt it was for llie interests of iho Company. The directors did hot cure anything for it. Mr iiutton moved that there be no expression of opinion, but the Chairman deolined to accopt this as an amendment.

This resolution was put and carried with only one dissentient voice. \ -

•.I-oxoii'iitiuM.—Mi* Klkln moved that the remuneration of tho Directors bo reduced from mm lb £700, lie regretted tho necessity for such a resolution, but in the face of these losses the Directors could hardly expect, tho lm'go honorarium of £1100-. Mr Unviil Uoldle seeoiliteil tile i'csolutlon.

The Ciiilirinun said tho Directors had already accepted one half tlie usual dividend, nnd would continue Io do so till dividends were paid to tho shareholders: The lTsblulieii «ns agreed to, oiily two voices Uciilg hused against it. , , , Dim-XTOita. — Mr Comptoh moved that Uib retiring directors, Messrs Uuckland and llbbbs, lie ro-el.cieil:. xMr Diivid Goldic proposed Mr iClkin. Ho said ho did not know if bo had much cluinco of Winning the election, because tlic directors had used their paid agenis to soeitro proxies op their bcluilf. However, they would coni iimo the light until now blood wus introduced. MrElkin proposed _lr Goldie.

A show of hands was taken with the following result: Buckland, 30; Goldie, 2'J; IClkin, 26; Hobbs, 2S. A poll wasdeinandod,