NOTES OF TO-DAY

Press, Volume LXXI, Issue 21580, 17 September 1935, Page 13

NOTES OF TO-DAY

DAIRYING SEASON OPENS WELL , ; HO INCREASE IN LOCAL PRICE I ~ EXPECTED An earlier spring, and the appreciation by farmers of the advantages of getting as much butter-fat on to the market as early as possible have stimulated a good opening for the season locally. The butter arriving up till about the end of November is assured already of ;a profitable market, more profitable than it has been, for some years. A North Island company has alr , ead 7„ a " n i )Un ? e d an advance pay. out of lid for September, and other factories will not be far behind. There is a shortage of stocks and of supplies in sight in Great Britain at present, and till the end of November the forward market is assured. After that, though the market is' quoted as firm, there is little inclination among , importers to trade. They are content to wait to see what effect on the consumptive demand the recent rises in the English retail price will have. As a rule, above a certain point, margarine replaces butter. The tendency in recent years has been for the consumption of butter to increase steadily, mainly owing to lower prices, and it is likely that even with higher prices . some of this added consumption will be retained. It is considered by those in the trade that there is little likelihood of a rise In the retail price locally. The local retail price was raised three months ago to a point ebout equal to present export parity because most of it had to bear storage charges. The butter going into consumption now will have only small storage charges to bear, and unless there is a further sharp rise on the London market, it .is thought unlikely that there will be an advance.

MOTOR INSURANCE

SOUTH ISLAND UNIONS* >, ASSOCIATION "* PREMIUM INCOME INCREASES An increased premium income, despite reduced premium rates, is revealed . in the accounts ol_the South :$ , Island Motor Union Mutual Insurance V * Association for the year ending June t ij ' 30. 1935. The directors propose that in future to place net earnings from underwriting to the credit of a special reserve from which bonus discounts will be paid on premiums. The directors' jreport states:— "The premium income, less returns,

refunds, and reinsurances, amounted » s jto £34,688 7s sd, as against £ 32,5071.65' 7d last year. The increase shown is considered' satisfactory, especially in view of reduced premium rates, compared with those of last year. Net losses after reinsurance recoveries . amounted to £19,091 0s lOd, compared ! with £14,079 10s lOd last year, and £10,977 7s lid the previous year. Our loss ratio this year is 55.03 per cent., compared with 43.03 per cent., last year, 36.1 per cent, the previous year, 37.07 per cent in 1932, and 44.1 per cent in 1931. Our expense ratio this year is 24.6 per cent, compared with 22.4 per cent, last year. This slight increase is due mainly to the reduction in premium rates. Our expense ratio is, however, greatly below the average expense ratio of all the companies in New Zealand doing a similar class of business. "The net result of the year's operations, after making adequate provision lor a reserve for unexpired risks, reserve for investment fluctuation, for bonus to policyholders, and all other liabilities, shows a surplus of £5377 ls'4d, which has been-added to general reserve. "The total funds of the association ' HQW . amount to £103,940 2s 2d, of - ' which amount £19,490 5s lid has been placed to reserve for unexpired risks, £6299 2s Id has been set aside as a ■ reserve for fluctuation of investments - and contingencies, £3700 for bonuses to policyholders, and after allowing' for all other liabilities in connexion wittt unpaid claims, commissions, income tax, reinsurance, etc,, there remains a balance of £63,079 13s 9d> which Has been placed to general reserve. '" L . "The affairs of the association are in i a very sound financial position, and * the,board is of opinion that the time ■' has arrived when it is, perhaps, un- ■■."■ necessary to add further considerable sums to general reserve, and it is proposed, s in future, to add to this fund , only the earnings each year from investments, and to place the net earnings from underwriting to the credit of a special reserve, to be called the bonus reserve, for the purpose of distributing such earnings to policyhold•r" -ere-each year by way of bonus dis- '; • tounts based on the amount of pre- £ miums paid by them. This, in effect, s<■ will mean that members will, in future, '" be provided with insurance of their motor vehicles at cost." Messrs W. R. Carey and H. C. HarJey retire from the board of directors - this year, and, <*eing eligible, have been duly nominated for re-election. Mr B. T. TosswiU offers himself for Reappointment as auditor.

t BARNET GLASS RUBBER, §£. LIMITED

IThe directors of the Barnet Glass Rubber Company, Ltd., Melbourne, rePort net profit for the year ended June 3 °. 1935, at £45,704 14s 6d. This, added to the amount brought forward, £17,681t 10s 7d, makes a total of £63,394 14s Id available, from which interim preference dividend in March absorbed £BOOO. The directors recommended a &videod for the half-year on 200,000 cumulative preference shares at 6 per •rent, making 10 per cent, for the year; *na a dividend of 4 per cent, for the |far on 550,000 ordinary shares, leaving £21,394 14s Id to be carried forward. The directors also recommend Jjpyuig from the reserve fund a divi*&nd of 4 per cent, on 550,000 ordinary fjjares as at June 30; and a special J»nus dividend on 550,000 ordinary wares at the rate of 17.818 per cent *8 at June 30. -. The Dunlop Perdriau Rubber Company owns nearly all the ordinary ™ares, having acquired them in 1929 »r £BBO,OOO. The present announcement means that the Dunlop Perdriau wompany receives £120,000 from Bar;~**i»lass Rubber Company's undivided