INSURANCE PLUNDER

Maoriland Worker, Volume 12, Issue 303, 20 December 1922, Page 1

INSURANCE PLUNDER

Mflf SllFlff • The exposures rT ti.r insurance profiteers by Worker and the Labour Party ha~\e of course- provoked shriek* of prota-t. Jt is easy, however, to siienee these, for out of the insurance publications themselves' they are condemned. Take..the "prospectus of The 'Mercantile and Geneiak'ifssuraiiee -Compare, with-copies of which The Worker lias lately been deluged. . ,' '.....'. v Mr. F.< Hurley is the promoter. He gets. £100 a month ' fo*. promoting, another £700 when the Company's 200.000 shares acefc issued, and then 1,500 fully paid-up shares "in p&i'i esnsifii l fi£& tion" for his services. For promoting the minimum wage is/higfjui Then there is what-is called tlxe "Syndicate." This groug has agreed to advance £6,200 to finance the sale of the shared For this service they get 12,400 full paid tip shares from "the company FOR NOTHING. The company is under obligation also to repay the £6,2Q0, or any part of it fcdvaneud. The syndicate thus gets its money back plus £12,400 worth oJ! shares. i The company may go to allotment at 50,000 shares. On thd payment of all "obligations on these shares £50,000 cash will be ". paid jp. The positior.-will fken-kc Oa>.h-/pai'-l fully; .paid up shares to promoters, £13,900; share capital paid up,' £63,900. But out of the £50,000, the syndicate's £G,200 mubt be paid. This leaves £43,800. ■ ■ With this £43,800 the company will start business, and earn profits to pay dividends on the share capital of £63,900. And thedividends will be there ail right, if the experience of the other insurance concerns is anything to go.by. Such is high finance!" The public pays through excessive .premium charges. Mr, Hurley will get a reduction in his incometax. The " syndicate ,, ' will be in clover,, Editing is a sweated trade beside promoting. - ; . ;