STATE FIRE INSURANCE.

Auckland Star, Volume L, Issue 190, 12 August 1919, Page 7

STATE FIRE INSURANCE.

XEW IH'ILDINi; STARTED. (By TeloKi-apli.—rrcss Association.) WELUN'OTOX, Monday. This morning the Hon. \V. 1). S. .MacDonald laid the foundation stone of the now State Kire Insurance oflices at the corner of Lambton Quay and Waring Taylor Street. The Minister said the cost of erecting the building would not be a charge on the .Consolidated Fund or tin- Public Works Fund, but would be defrayed out of profits made by the Depnrtracnt since its inception, fourteen years ago. The total accumulated funds "at the end of lfllS amounted to £214.000. The funds consisted entirely of those earned in ordinary •business operations and the rate was very much below those existing before the entry of the State Olliee into the business.

The Minister paid it was not the intention to run thp office for the purpose of making largo profits, and further reductions in rates might be looked for in the future, but when an office, such as the •State office undertook large liabilities without any subscribed capital, the reserves must be built up against those liabilities before further concessions could be grunted. llnving built up those necessary reserves, the question of ■what further concessions could be given would receive earnest consideration.