NOTES AND COMMENTS.

Auckland Star, Volume XVII, Issue 242, 14 October 1886, Page 1

NOTES AND COMMENTS.

The roar at the South British meeting yesterday was in the nature of that operation known as " washing dirty linen in public." The process, hewevor, is not always co foolish as the popular manner of quoting the axiom implies. When abuses exist, they are the better of being aired; there is no other effectual process of purification. With regard to ihe South British Insurance Company, rumours of a damaging kind have been fr. Ely circulated, and the only way of meeting them was by " having it out.'" Mr Chamberlain gave his brother director? an opportunity of masing explanations, and aa these, on the whole, appear to have been of a satisfactory character, he may be regarded as huvine rendpred them a service. The honorable ger tl man, however, is not always very ji cji nous in his methods. The peronal at'acki on his rotors yesterday ought to have been better supported by facts before they were made.

There is no doubt, however, that th« policy of tho Board of Directors has landed the Company in heavy losses. They confessed to the double blunder of launching out into heavy expenses in extending their bubinr rs, andthen in contracting iv )oo rapidiy. Aa tlie Chairman expressed it, they have paid for their experience, and it is to be hoped that tho investment will not be lost. The fact that the Company is in a thoroughly Bound financial condition has been brought very clearly out during tho turmoil. Mr Chamberiin did not gainsay that, and Mr Harris who came up fr«m the South pra' judiced against the Company, after personally examining every security representing tte £215,000 asests, went away thoroughly satiefieJ. The shareholders _ are thus assured that there is >ealieabl« property to th« vqlue of 47s per share to represent the 40a which they have paid up. The ground of their complaint, and a just one, is, that out of go good a property they do not receive 1 hat reasonable interest which, with proper manaeement, they ought to get. To persons who are living upon their invested capital, this stoppage of dividend ig a very serious mat.ter indeed, and although in oil commercial ventures people are liable to reverses, there dees not seem to bo any sufficient reason why in an insurance business properly conducted a suspended reserveshould not be kept to equalise tho losses "over a series of years, so that the stock should neither be inflated by enormous profits one year, nor unduly depressed by the stoppage of dividendsduring a leee favourable period.