SAVING IN INSURANCE.

Manawatu Standard, Volume XLIV, Issue 1188, 10 December 1924, Page 3

SAVING IN INSURANCE.

BENEFITS TO THE PRODUCERS. THE NEW ARRANGEMENT. AUCKLAND, Dec. 8. “Yes, it does represent a further saving to the producers of New Zealand,” said Mr \V. Goodfellow, managing director of the New Zealand Co operative Dairy Co., Ltd., when asked the exact beuring the comprehensive insurance arrangements at new rates had upon the shipment of dairy produce. “The new rate obtained by the Control Board is 7s per cent, for butter and 8s 6d per cent, for cheese, as against 19s 7d per cent. for . both butter and cheese in 1921. Since that time, , however, the tariff rates of . .the associated insurance companies have shown a steady improvement annually. An effective comparison is as follows, the rates quoted being ut and from factory via main porta to London and including 30 days cover at destination : . ■ ■ :

“For the drop year by year as conditions warranted the associated companies deserve thanks,” said Mr Gbodfellow, “but it is pluiu that the establishment of the Control Board and the centralising of the producers’ power of negotiations have permitted the companies to make internal savings and drastically reduce their rates. In the past companies, seeking business individually from approximately 600 separate dairy concerns have necessarily incurred comparatively heuvy office and travelling expenses, and, in addition, have been paying agency . commissions, so that probably at least . half of the premiums received by them from dairy companies have been heavily cut into. The collective arrangement now Vnade eliminates the expense of securing ' business, 1 eliminates agency costs ' and permits the insurance companies to • work on a bedrock basis, possibly without affecting their net return of profit. ,i “Another benefit of the present arrangement is that it greatly simplifies the method of working. In the past there was frequent concern. us to whether produce was over or under insured, because of fluctuations between departure and arrival. The new arrangement is' based on the market price of the product at the date of arrival, plus 5' per cent, on consignment and 10 per cent, on c.i.f. and f.o.b. interests. Ibis means in practice that assessment is first made in New Zealund, but the actuul premium payable is settled on arrival in London by the value of the produce at that date. If loss at sea is incurred, a settlement is made on the basis of the valuo of goods ns ut the date when they should have reached London. This arrangement, makes marine insurance quite automatic and avoids a great deal of worry and detuil work on the part of individual dairy companies.” Asked whether any definite figure could be given as to the benefit bestowed upon the producers by the reduced rale, Air Goodfellow said that an assessment only could be made, because of the fact- that certain companies had’ themselves in the past held policies on London at rates lower than the prevailing New Zealand rate; also some companies had held insurance agencies upon which they collected commissions. If, however, the associated tariff of 12s Id hud applied throughout the whole of this season on all butter' to be exported (valued at approximately £12,000,000), the sum of £74,000 would nave been paid in premiums, whereas under the new rate only £43,050 will be paid. In the case of cheese, under the old rates £46,312 would have been paid on an estimated value of £6,500,000 worth of cheese, but the new rates make only £27,625 payable. The figures show a combined saving of £49,949 as between the old and the new rates, but for the reason that a good deal of the country’s produce had already enjoyed rates lower than the associated tariff the actual saving to the dairy industry will probably be only £25,000 to £35,0C0. I his benefit "will mostly fall upon . the smaller companies, which hitherto have not been able to enjoy as good rates art larger companies.

THE NEXT ROYAL SHOW. SUGGESTIONS FOR IMPROVEMENT REQUESTED. Per Press Association. CHRISTCHURCH, Dec. 9. At to-day’s meeting of the board of the New Zealand -Trotting Association the secretary of the Royal Agricultural Society wrote stating that' although the consensus of opinion among breeder's and the general public was that the Royal Show was a distinct success, yet somo of the Dipininion’s newspapers had adversely criticised its management. Therefore, •it behoved the council of the society to make good any shortcomings. The association was asked to forward any suggestions for the betterment of tho organisation und the carrying out of the next Royal Show at Christchurch. The chairman (Mr P. Selig) said thut, from what he could gather, it was not a very wonderful show as far as trotting was concerned, but he ; thought that tho next show, which would be held in Christchurch, the centre of a district famous for trotting, would be a great deal better. He thought the board might, appoint a committee with a view to offering suggestions. The matter was left to tho executive.

r Butter. Cheese. ■ s. cl. s. d. 1921 ......... ........ 19 7 19 7 1922 17 3 17 3 1923 13 11 16 4 1924 12 1 14 3 Control. 7 o 8 6