BANKS AID COMPANIES.

Auckland Star, Volume XXVII, Issue 19, 23 January 1896, Page 5

BANKS AID COMPANIES.

NEW ZEALAND INSURANCE CO. The annual meeting of the New Zealand naunance Company was held on Jan. Bbh ,b the Company's office, Queen-street. The annual report and st/atement of ac :ounts were presented as follows — The Annual Report. The directors bave pleasure in presenting io the shareholders hhe accounba of the Company as ab bhe 30tfii Novembe-r, 1895. & s. d. Hie pro fit on tho year's transactions, after malting lull provision for all asce irtaina A losses to date of balance, aaiounta to 32,953 13 s fhe balance brought forward from 1834, after payment of dividend in January, 18S5, waa 18,608 13 2 £51.562 13 11 3educt interim dividend paid in July last. 12,503 0 0 Vnd there ia an available balance at Profit arid Loss Account on. 30th Noveml>er, 1895. of.. .. £39,062 13 11 From which your directors recommend the oilowiug appraipriation :— Payment of a D\ vidend at tha rate of 12^ per CGB'.fc, por annum .. £12,500 0 0 ?aymftntofßon.ua to bharehaldera of bd per share 2.500 0 0 investment Fluctuation Account 6,500 0 0 Jontribution toi Auckland City Leasehold Sinltins Fund.. .. 5.C00 0 0 3aiance carried iorward to ,New Accouut ... 12.562 13 11 £39,062 13 11 Although tike amounb standing to bho :redib of fche Auckland Ciby Leasehold linking Fund ia now very considerable, four direcbors have thought it prudent to tdd a furiber sum of £5,000. They have iho appropriated £6,500 to the Investment [fluctuation AcconnO. Id ia with deep regret your directors havo ;o record tho dearth, on December lab, on joard bhe P. aud O. s^e. Rom«, of Mr Warwick Wesbon, who, during the long period of his connection with the Company, aobh as inspector and general manager, contributed in a marked degree to its success. Messrs J, Logan Campbell, J. L. Wilson, . jnd A. H. Nathan retire from tbo Board, is provided for by tho Articles of Aasociaion, a r»d are eligible for re-election. Messrs A. Boardmau and H. Gilfillan, junior, again offor their services as auditors. For the Board of Directors. J. Logan Campbell, Chairman. Statement of Accounts for the Yjear Kndkd 30th November, 1895. Profit and Loss. Dr. £ b d £ s d ro Dividend for tho v half-year ended 30th. November. 189* .. 12.500 0 0 3onus for the year ended 30th November. 1894 .. .. 2,500 0 0 Dividend for the lialf-y ear ended 313t May. 1895 .. .. J2.500 0 0 , 27.500 0 0 Hcmmissiona. salaries, and other expenses 72.964 3 3 3overnißent tales and payments to Fire aud Marine Associations .. 6,239 1 4 79.203 9 7 Fire and marine losses and appropriation for unpaid losses .. 172,137 0 8 Investment Fluctuation A c • count 6.500 0 0 Auckland City Leasehold Sinking Fund 5,000 0 0 Balance ~ ~ ~ •• •• 27.562 13 11 £317,903 4 2 Cr. £ S. i % By balance at ZOth November, 1891 ~....■ .. 33.608 15 2 Fire and marine premiums, less .--'.-=*-•.. returns and re-insurances ... 267,916 16 9 Interest and rents .. .. a. 16,377 12 3 £317.903 4 2 Balance-sheet. Dr £ a d £ a d To capital 200,000 0 0 Koaorvofund 125.000 0 0 Ee-icßuraneo fund 110.000 0 0 235,000 0 0 Investment Fluctuation Account —viz: Amount last year .. 1,011 16 3 Transfer from profltaadlo33 account .. 6.500 0 0 £10,511 16 3 Leas written off sundry invastments for depreciation .. .. 8.523 19 3 ' 1,987 16 7 Appropriation for unpaid losses — 32,5i.8 0 0 Sundry creditors - 13,7*2 5 9 Balance .. - 27,562 13 11 £010,810 16 3 Cr. By investments— Mortgages and shares 71.185 1 3 Company's freehold of lie; prcmißes and Otliur properties .. 245,824 0 5 United Slates Bonds 11,480 0 0 Cape of Good Hope Government securities 10,047 10 6 Argentine Government securities .. 2.647 7 5 Debentures .. .. 7,847 17 9 Loans at call, fchort periods and fixed bank doposiis .. 59,778 17 3 408,810 n 7 Auckland city leasehold .. ... 56,777 17 7 Less finking fund already accrued (iacludiutf present appropriation of £5.000) .. .. 24.983 2 1 31,794 15 6 £44\605 10 1 Accrued Inlorest nnd rents.. .. 3,0x9 19 8 Brunch and Agency balances .. 54,103 6 0 Cash in bank* nnd in hand at head office and tranches .. 13.112 0 6 £510.840 16 3 Wo havo examined the books and accounts ol tho Company for the year ended 30' li November, 1893, and have to reporb thab tho balancts-sheeb now presented to tho shareholders ia a full and tair balance-sheet, and exhibits a true and correct, view oi the state of the Company's affairs. A Boa rdman I Auditors. K. Gilfillan, Jun., | Auckland, 28oh December, 1895.The Chairman (Dr. J. Li Campbell) said : Before offering any remarks upon the atabemenb of accounts now presented, ib becomes my painful duby to refer to the death of Mr Warwick Weston, whose connection wibh bhis Company exbended over a long period of years—firsb as inspector, and subsequently upon the death of Mr C-. IJ.1 J. Pierce as general manager. Ab the time of his death ho was proceeding to India and London upon the busineaa of tho Company, and although he had not bsen in good health for some time, the suddanness of his death, which took place on board bliG steamer Rome on the let of December, came as a greab shock bo the directors. They wish to bear testimony to hia thoroughness in everything he undertook, and to his fidelity to the interests of bho Company at sll times. His* knowledge of tho Company's affairs and advice upon the policy laid down by your directors haa always been highly appreciated by them. I now proceed to lay before you the result of the operabiona ot bho Company for the year ended 30th November, which I do with much pleasure, and before concluding with bhe uaual motion, deairo in draw your abtention to some of tho figures in the balance-sheet. There is? a moderate increase in the premium income, which i.« satisfactory when it i« lomonibeied thab the colonies aro only now recovering from the deep depression of the last few yeara. On the other band there i.-t an increase in losaoe, bub bhis item musb always be looked upon as somewhab of a varying quantity. Included in these losses ia the

\ eam q[ £5,092?. reDresentimr «,* -amounb paid on sovereigns per steamer" 'Cafcberbhun. Otbw companies are infcSed !j for a like amount, and ib ia probabl™ thS sum may nob prove te be a total loss. Deep-sea diving g Qar h as been senb for to 7u° n v V fcha ÜBB of which ib is ho Ped thab the sovereigns will be recovered. One pleasing point is the gratifying redue. 'Pi^n" exp<3nseß» amounting to £1,838 Ihe Company's investments are now yielding an in creased return, and the current year is expected to show a still better result. Ihe v fetoria Arcade is in a much better positioni An increased income is now hev AS derived from ib, and thero is every reason to believe bhab bhe revenue for 1896 '/rom this source will shew a still further improvement.. In bhis connecbion ib will bo observed thab the directors have added £5,000 to the sinking fund. This has been done as a simple acb of prudence, for the sum now ab the credib of bhe Arcade sinking fund, including the present appropriation, amounting in ail to £25,000, will yield on the low basis of 3 per cenb. no less a sum than £76,869 by the time the lease expires, while the amounb standing bo the debit) of the leasehold is now only £31,795. This fund, with its accumulations, is specially invesbed in separate securities. I wish to make some reference to the fire tariff which came into operation in October last. In some quarbera ib has given dissabisfacbion. The experience of companies all over the world has shown the necessiby for tariffs, and bhat without them competition of the mosb insane character takes place wfeich if general would mean ruin bo shareholders and bad security to policy holders, so that ib ia to th* interest of bhe labber as much aa to the former, thab a jusb and reasonable sbandard of rabes should be maintained. To show bhe necessity of tariffs (and they bave nob been confined to New Zealand by any meana), I have before me a reporb taken from the Insurance and Banking Record, showing thab 54 Bribish companies in 1892-93, wibh au income in round figures of £19,000,000 sterling, barely made an underwriting or trade profib of 1 per cenb., whjlo iv 1893 -94 they made an actual loss of 1*37 por ceur.7 Dealing more par-' ticularly with the Now Zealand tariff, I may tell you thab rates bad become so unprofibable bhab all the companies doing business in th 9 colony felb that, in tbo inberests of shareholders aa well as of bbo public, a fair return for the risk run should be obtained. Moreover, in bhe widespread operations of the New Zealand Inauranca Company, reciprociby with other companies has bo be maintained, hence your direcbors joined in bhe present movement If the welfare of the Company had depended upon tho results of the business in New Zealand, the balancesheet prosenbed to-day would have been a disappointing one to the shareholders. Experience, has, howover, shown bhafc modifications are necessary, and at a Council meeting of underwribers to be held in Wellington early bhia year, endeavours will ba made bo afford relief in all cases where it is shewn thab the presenb tariff presses unduly. I have pleasure in moving the adoption of the report and balance sheet. Mr A. H. Nathan seconded the adoption of bhe report and balance-sheet. This was agreed to unanimously. '" Dr. J. L. Campbell and Messrs J. L. Wilson and A. H. Nabhan were re-eleefced directors of the Company. Messrs A. Boardman and H. Gilfillan were re-elected auditors.

The Wellington Gas Company has declared an interim dividend of 5 per cent., making 10 per cenb. for the year. Tho sum of £2,500 has been writben off the planb for depreciation, and £1,940 carried forward.

The provisional liquidators of the Colonial Bank have obtained leave from Mr Justice Williams to district be £100,000 of the money now to tbeir credit with the Bank of New Zealand, by way of a fires dividend of 10a por share.

The reporb of the direcbors of the Dunedin City and Suburban Tramway Company gives bhe total receipts at £18,112 and expenses at £15,907, leaving a balance of £2,234. Aa the year's interest was £2,240 there has been a losu of £5 15a on the year. The number of passengers carried was 2,751,432 againsb 2,904,480 in the previous year.

The first meeting of shareholders of tbe newly formed Devonport Steam Ferry Company was held on January 20bh, Mr E. W. Alison (Chairman of Directors) presided. In opening the proceedings he said:—Genblemen, —The Companiea Acb providos bhab a new company shall hold its first general meeting wibhin four monbhs of bhe dabe of its incorporation—thab ia bhe reason why you are called together today. The report and balance-sheet submibberl to you cover a period of bwo months, from November lsb to 31st December, 1895. During bhab time bhe Company's busineaa has been quibe successful, and its proapecbi conbinue favourable. Ib haa been usual bo end the financial year of the Company on December 31st, but aa thia ia the Company's bupiesti time groat inconvenience ia thereby caused. Tbe directors are of opinion thab ib would be advisable bhab the financial year, for many reasons, should close on tho 30bh April of each year, and they therefore suggest,, and I shall aubaequenbly* propose, that the next annual meeting be held on tho 14th June, 1897. As tho Articles of Association empower bhe directors to pay interim dividends, they intend, if all goes well, to declare a dividend tor the half-year ending 30th April, 1896. The company haa commenced its business under moat favourable auspices, and tbe report and balancesheet presented muab be entirely satisfactory to you. I have, therefore, much pleasure in moving their adoption. The iirat report and balance aheeb, for period ending December 31sb, 1895, abated bhat the Company commenced operations on November Ist, J 895, taking over steamers, plant and business, in accordance with an agreemenb enbered into between the old company and its liquidator of the one parb, and bhe new Company of the obher " part. The profib and \qb£ accounb shows two months' buainess, tbe receipts being £3,171 2s 7d, and the expenditure £2,274 9a 9d, leaving a profit of £896 12a lOd bo be carried forward. The retiring director, Mr E. M. Coleman, was re-elected, and Mr W. H. Churbon was appointed auditor aba fee of eigbb guineas. Ib waa resolved thab the date of the next annual general meeting of bhe shareholders be fixed for Monday, June 14bh, 1897. The rough minutes wero bhen read and the Chairman authorised bo sign bhem. A vote of bhanks to th 6 Chairman concluded the business.