FARMERS' CO-OPERATIVE INSURANCE.

Press, Volume LI, Issue 8725, 22 February 1894, Page 3

FARMERS' CO-OPERATIVE INSURANCE.

ANNUAL MEETING.

The annual meeting of the shareholders of the above was held at tho Farmers' Cooperative Association yesterday afternoon. : Mr J. Gbigo, Chairman of Directors, occupied-the chair, and there was a good attendance of shareholders.

The report, which was taken as read, was as follows :—

"In submitting the annual report and balance-sheetfor the year ending 31st December, 1893, the Directors regret results have hot been so satisfactory as those for tbe preceding years. The revenue, including .balance carried forward from 1892, is £9284 15s 6d and the expenditure £7000 lis 9d, leaving a balance of £2284 3s Bd. Provision hu been made in the accounts for all ascertained losses at the end of the year. After appropriating a sum of £617 required to re-insure current risks, together with £150 for Directors' and Auditors' fees, there will be a balance of £1517 3s 8d available for distribution, out of which the Directors recommend a dividend on paid-up capital of 4 per cent. Should the foregoing appropriations and recommendation be approved of, there will be a balance of about £210 to carry forward to next rear. The retiring Directors are Messrs C. Ensor, W. Henderson, A. B. Inwood, R. H- Rhodes, F. D. (3. Neave, J. Rennie, and J. Talbot, all of whom are eligible for re-election without notice, and have signified their intention of standing. It will be necessary to elect two Auditors for the ensuing year.' During the year an extraordinary general meeting of shareholders was held for the purpose of consideriug a recommendation from the Directors to increase the paid-up capital to £50,000, and so place the Company on a broader basis and enable it do an open business. At that meeting the shareholders unanimously agreed to tbe proposed recommendation, and in response to the invitation of the Directors, additional share capital ~ was applied for, bringing the paid-up capital of the Association to £36,370. Since the date of balance-sheet this amount has been increased to £42,500 by further subscriptions. After allowing for reserve funds, a further sum of £6500 is still required, and this, the Directors trust, wDI be shortly subscribed."

Tbe Chairman said that in moving the adoption of the report and balance-sheet they would see that it was not so satisfactory as the previous ones which they had the pleasure of. putting before the shareholders. Unfortunately they had had to meet the heavy loss of a vessel laden with oats. At the same time they showed over three years that their business was most satisfactory. As regarded the percentage of loss, he had in his hand tables showing the losses of five offices which came to 69, 69, 64, 60, and 55 per cent, respectively. Now their percentage waa only 32.94 per cent., showing that their business was very satisfactory. They had written off all preliminary expenses, and they had also paid bonuses from the beginning. There had also been a gradual increase in their business, and had also placed £1000 to reserve fund. They had now 664 shareholders, which was a very satisfactory increase, and their business was equal, if not. superior, to that of any office in New Zealand. They had, therefore, every prospect of a satisfactory state of things in the future. That brought him to the importance of their Association widening its basis and becoming a public Company, The Directors had asked for further shares, and since that time shares to the amount of £10,500 had been applied for, and £10,000 paid in cash. All that was .now wanted waa a further sum of £6500 to enable them to make it an open Com' pany. So soon as that. was done they would doable their business. They would

for instance, get the Co-operative Associations in the Worth Island to act as their agents, and this would bring in a large amount of new business, so that there wag every chance of prosperity in the future. The conduct of their business was of the most careful character. They had an Executive Committee meeting once a month, and there was an Inspection Committee, whose duty it was to inspect the securities. All their funds were invested satisfactorily except some £7000 or £8000, for which at present they could hot find available securities. He had very little doubt that iv the future, when they paid good dividends, the shares of the Association would be a favourite investment, as there was no liability upon them. When, as he hoped would soon be the case, they paid a dividend of 7 per cent, or 8 per cent., the shares would be a very excellent property. He now moved the adoption of tho report and balance-sheet.

Mr H. F. Gray said he had been asked to second the adoption of the report, but before doing so no wished to obtain the opinion of the Chairman as to the remission" of premiums to large insurers, which ha considered was a mistake.

The Chairman said that if they did not give their clients some advantage as other offices did their business would decrease. As a matter of fact, during tho past year, they had given large insurers only half the percentage of allowance which other offices were giving. He would point out that the Association were not the introducers of thia practice. It was a very common one in connection with companies who always gave an advantage to the person who brought large business. The only Association who did not do this was the Belfast Freezing Company.

In answer to a question The Chairman said they gave no advantage over £500 per annum premium. Mr H. F. Gray went on to urge that the principle was not a right one. He thought it was an injustice to shareholders as shareholders, and also as policy holders. To hia mind it was like the Co-operative Public Works system. At whoso expense he would ask were those men paid exorbitant wages 1 At the expense of the workers as a general body. Iv fact the general body of workers were sweated for the benefit of the few. The policy of the Association in this respect was the same. The small shareholders wore being sweated for the large insurers. He trusted the Directors would abandon the practice and would later on bring forward a resolution on the subject. He now seconded the adoption of the report. The Chairman said that he would be quite willing to adopt the course suggested by Mr Gray, if the other Companies would do the same. In fact if what was now " the custom of the trade" was abandoned, the Association would only be too glad to do so.

The adoption of the report and balance* sheet was then put and agreed to. Mr H. F. Gray then moved—" That tho practice ol allowing discounts on premiums be discontinued." He complained that the amount returned to the larger shareholders did not appear in the balance-sheet, and hence their shares were not as much as they ought to be. Mr John Holmes said that if there was any discriminatory power given to remit discount, it was a mistake. If a disoount were to be given, it should be given to all and not to a larger shareholder.. He was one of the large insurers iv the Company, and be did not ask for any return any more than the smallest insurer. There should, he contended, be no distinction at all. He therefore seconded the motion.

Mr Pervman asked Mr Holmes whether if other Associations gave discount and this one did not would he uot leave that Association and insure with another.

Mr Howies said that the Farmers* Cooperative Insurance Association was a brotherhood, though in < ths late eledtions the cockatoos did not snow much brotherhood. He, under these circumstances, did not have much sympathy with the cocks too*, as he believed they would get their reward when their time cj*rjie..

Mr Eksos said that as the Chairman of the Farmers' Co-operative Association ho would not be justified in putting their business, through the Insurance Association unless they got the same concessions as the other Companies. They simply gave 5 per cent, concession to anyone giving them over £500 premium iv the year, aud this, they would admit, was very small indeed. The Farmers' Co-operative Association was the largeat insurer, 'but, aa he had said,, he would have to take the business away if they did not give them the same concessions that other Companies did. Mr Gray having replied, Mr Holmes said that he was in favor ol giving discounts to all alike. The Chairman said that as Mr Holmes had ajmken diametrically, opposed to the resolution, did Mr Holmes now still hold to hia seconding the motion ? Mr Holmis said he would not.

The Chairman then said he would rule that the motion had nob been seconded. He might say that he as a very large insurer had stood out for a whole year against the giving of discounts on premiums except to all, and had put bis business through another office. But finding that it was the universal practice of the offices he had l ultimately given way. The next business was the election of '■ Directors .-—Messrs 0. Ensor, W. Henderson, A. Inwood, R, H. Rhodes, P. D. S. Neave, J, Rennie uud J. Talbot were proposed. In reply to a shareholder, the Chairman said that it was in the hands of the shareholders to reduce the Directorate to twelve. Bub he would point cut that the expense was small. Only 10s per sitting was paid, except to those coming from Timaru, and the sittings were only throe times a year. The gentlemen named before were then re-elected.

. The election of auditors resulted in the return of Messrs A. A. McKellar and W. Jameson.

In reply to a question, the Chairman said that there was no charge for inspection of buildings offered foe insurance.; ; , Votes of thanks to the Directors aud to the staff concluded the meeting.