THE NATIONAL INSURANCE COMPANY.

Evening Star, Issue 6759, 26 November 1884, Page 2

THE NATIONAL INSURANCE COMPANY.

TO THS EDITOB. Sir,— Mr Ritchie, in his 7 remarks at the Rnm>al meeting, gave the "average rate of interest” on investments, including the money at the bankers, at "close on 6 pet cent.” Will Mr Ritchie please explain bow be made the-average rate of interest " close qn 6 per cent. s On September, 1883, the capital and reserves stood at L 260.900 17s fid, and on March last L 28.593 17s' 6d was added thereto. Allowing, therefore twelve months’: interest on the former amount and sir, months’ interest on the latter, the average rate pf:interest is. in reality only close on 5 per cent, ' • . ' - j What with bad business and low rates of interest the outlook for the shareholders if , the reverse of cheering, especially for; -holders of new shares, who only received for the last, twelve months 8& per cent bn the liOa capitalised, which is equivalent; to 3 2-sth per cent, on the 25s paid to the Company for these shares. ; As the total interest realised on investments is only L 13.520,. and a 15 per oent. dividend would absorb 144,708, I presume we cannot look for more than 15 per oent. in the fntare, which is equal to 7$ per cent, on’ . tho preshnt market price, and only eqqal to .fi per cent, tothe buyers from the Company ’Kt\ the new isßae^ ■ : j The general'lmpression is that there is a ‘2M Bar ” here that wants attention.—l ain, etc , , ! . Investor. “ ’ Dunedin, November 26, . .