Page 3 Advertisements Column 1

Clutha Leader, Volume I, Issue 14, 8 October 1874, Page 3

Now Zealand Insurance Company, . — ; • ■ — - ' ■ , The shareholders -of the New Zea-i land Insurance Company have decided ;to increase the number of the shares to. one hundred thousand of LlO each, Jnakihg the capital one million sterling. paid-up capital is to he L 200,000, with a reinsurance or reserve fund of L 40,000; and making the; total funds in hand L 240,000. "The Mil details as to the mode in which the Shareholders have decided to places thevniutter before i the public will be found in the prospectus, and we do not/intend to dwell on those . proposals ; business tnen have plenty of material put before the m. to enable them fully and careffilly to. examine them for themselves iand judge of their value. But while] refraining from referring at length to the details disclosed in the prbspectus^ we have considerable pleasure in pointing to rer suits of the past, the basis, and assurance qf continued success in the future. And we would first , call attention to one of the great guiding • principles which, as disclosed by the present position of the company, iias ever animated the management, viz., to constantly increase their reserves and paid -up capital as their business has increased. Tbis very prudent policy, following the cx r ample of the very highest class insurance companies at home, marks a desire to make the security offered by the company to the public the most reliable possible, and to be prepared with funds; to meet any possible emergency. The disastrous fires»at Chicago and Boston brought into conspicuous notice this great principle of first-class English offices. >A delusive security, a doubt as to whether a company can pay the utmost demand that any gresgt losses may make upon it, takes away all motive for insurance, and is ruinous,to the insured The proposal to make the paiH up capital and reserve L 240,000, shews that the directors are determined to follow in the future the wise and prudent policy bf the past. The tabulated statement given in the prospectus of the company is very interesting. : .It shews how premiums have increased since 1859, from L3729t0 L 107,643, 'in 1874. In 1861, the premiums were Ls39o;in 1803, L 12,595 { , or double those of. the previous year, . while in 1803 they increased ,250 per cent, over those of the preceeding year, beihg* L 32,528. That date marked an erain the progress of the-, company. ,' : : Its premiums have each year since amounted to a very respectable 'amount. : ;'T,he losses of the company,' for... the first period were small, L 515, but they have naturally increased with ., the business, •and for the past financial year amounted to L 61,842 105 i*..,. The total premiums received amounted to L7.55,330,,,and the losses paid to L490,037./i- : Attention is called in . the. prospectus to the fact that the. present, investments of-; the company, amounting to L214,f OQ', yield a rate of interest which w^mldl admit, df a dividend equal to 7$ per, cent,. upon the new subscribed capital of L200,00f1, whereas the. total.'amoiint of- invested funds, when- the. new arrangement is earned out, will bje, , L2 ( 40,600,, so that without, an y.-premiums- .whatever., shareholders will be cer-itain of getting, B per cent... upon- the . capital; , paidy for- in no year during, the; company's .existence has it been :> . necessary to haverecourseto capital; tovmeet .engagements.. ■:<.. '.' , The amount paid, in dividends by the New Zealand . Insurance^: Company, is put down at L72ji7l, and/this, sum, .in -addition to the accumulated profits, has been retaineel in the ; colony, instead,. .of being take'h to other countries, and so •has been available for carrj'ing. on en- . terprisses which:giyfe,employment>tQ the people, and thus has contributed to the general, prosperity. , . And . surely • this fact should, have great influence .with the colonist^;, shouhl make tbem.jnore and more determined to-, support, local endeavors . >tb r supply • lociil,, : wants. ; ; , to prevent; the drain , of. mdney from our midst which -iaiight be retained amongst us. • It»is said that interest paid. tQ a fnreigh codntfy for- loans obtained froni it must be considered as tribute paid by the. one to the other< and., certainly money paid'^o' a foreign country, for transaction of businessj wh'ph can.be rlpne.- among ourselves opithe,same ; 4erms^ if-there t .])e a<^ profit^ on the busi* '-h ess, is a. tribute which .n^-ed not be paid, .and to pay whichis. injurious to the prosperity, of . the country.^ The greater. • profit K- made on, any colonial business—the greater,, the ; amount- of, spending money which "is in. the hand^ of the people— the larger is the business of the merchant and. .trader."^ ....._ , .! , : The causes -of the success of the New Zealand, Company are not* very difficult .to perceive., ♦. The local Board of Direc-; .torsbaving a large interpst in the concerp^and being, doubtless' anxious that the affaiKs they had .essayed '.to. conduct jahouid -be',;carri.ed" on in a, successful manner,- gave it -a large, amount of. cafe and v.Aattention. ', \ • Tbey: probably. . felt .pride in thi-ir in.sf itutjon. » ; , .Their -.b'usii i-ess has been progressive, spread over