ACCIDENT INSURANCE ASSOCIATION.

Evening Star, Issue 7174, 30 March 1887, Page 3

ACCIDENT INSURANCE ASSOCIATION.

Tho annual general meeting of shareholders in the Accident Insurance Association of New Zealand was held at tho Company’s office this afternoon. There were about thirty shareholders present, and Mr F, E. Eley (chairman of the board of directors) occupied the chair. Tho annual report was submitted as follows : —“The total income is L 4,097 13s 2d, and the total expenditure (including L3OO written off stationery and office furniture) is L 5,740 12s Bd, showing a debit balance on the year’s transactions of L 1,642 19s 6d. _ Your directors regret that the premium income for the past year shows such a serious falling off, which is mainly attributable to the excessive competition and cutting of rates, and to tho circumscribed area of the Company a operations. Messrs Job Wain, jun., and William Isaac (directors) retire by rotation, but are eligible ami offer themselves for re-election Messrs R. H. Leary and A. G. Fenwick (auditors) retire in accordance with the articles of association, a d Mr Leary offers himself for re-election.” The Chairman, in moving the adoption of the tiport, said that it would show that the result of the Company’s operations had not been up to what was hoped for at the date of the last meeting. There had been a heavy reduction in income, and the directors found it impossible to bring the expenditure within the margin of tho income. Tie reasons for the falling off were given in the report. Last year they retired from busi hdga in Australia and Tasmania on acceun of the large expenditure incurred and the unprofitable nature of the business done_there, and the same had to be done in some districts and towns in New Zealand, as the busincsi done there returned a regular crop of losses. A t first it was thought that this was duo to tho indiscriminate taking of risks by the Company’s agents; but on inquiry they found that such was not the case, and that simply the returns from the business were not such as had been looked for. Under the circumstances, the directors determined to retire from a great portion of the business, which had of late hern confined to the East Coast towns and the < is tricts surrounding them. This course had necessarily resulted in a great reduction of their income, and this drawback had been intensified By the competition of other offices, which took risks at far lower rate*. Their business had also been affected by the general depression throughout the Colony, which had caused them to lose the greater portion of their renewals; find these, he need hardly say, formed the backbone of an insurance business. The railway accident branch of tho business also resulted in most meagre returns —in fact it did not pay expenses. Again, the commission paid to agents was very large. The fact seemed to Ba that there was not room in New Zealand for a number of companies of this description, and, after giving the matter grave consideration, the directors had come to the opinion that the business had had a fair trial, and that its further prosecution could not result in a profit to shareholders. They therefore recommended shareholders to realise the Company to the best advantage in order to avoid further liabilities. Their outstanding liabilities were not stated in tho report, but they consisted almost entirely of three law cases which had yet to com* on; One Mtas a cla'm for LI,OOO, and that they were pretty sure to gain; tho others were claims amounting together to about L3OO. Dr Maonshxl seconded tho adoption of the report. Mr \V; Stuart said ho would like to ask some questions as to the expense of management. The CHAIRMAN said that ho would adopt the unusual couiso of declining to answer any questions put by Mr Ktuart, on the grounds that he was not acting in tho interests of the Company, that he was employed by an opposition Coim pany, ft lid that his share in the present Company was only an Infinitesimal one. Mr Stuabt said that he held proxies representing 22,000 shares as well as hie own. No doubt the chairman would ■ find his questions inconvenient ones. After some discussion the Chairman agreed to answer Mr Stuart’s questions, and did so to tho following effect The sum of L 341 Is 6d was paid last year to directors as fees; including LSO for tho chairman ; L4O was paid to directors as travelling expenses; the manager’s salary a 1 first stood at L2OO per annum, was then raised to L4OO, and then reduced to L3OO with a commission of 2J per cent, on the premiums received. Mr G. Esther thought the suggestion to wind up tho Company was a very sensible one, as it seemed that the salaries and commissions ran up to what it cost to work the Company. Mr Edward Smith, ef Christchurch, moved, and Mr W. Stuart seconded—“ That Mr F. Smith and Mr J. Wain be elected directors, and Mr R H. Leary reappointed auditor; also that a meeting be called for April 14 to consider the advisability of winding up the Company.” _ ■ The Chairman remarked that Messrs Smith and Stuart held the voting power in their bands, as they had proxies for 52,000 out of the 80,000 in the Company. There was, there fore, no occasion to put the motion, which stood as carried. This concluded the business.