MEETINGS.

New Zealand Herald, Volume XXXIII, Issue 10036, 24 January 1896, Page 1 (Supplement)

MEETINGS.

THE NEW ZEALAND INSURANCE

COMPANY. The annual meeting of shareholders iu the New Zealaud Insurance Company was held JanuaJy S. at the head offices of the company. Dr. J. Logan Campbell presided. The directors present were: Messrs. T. Buddie, A. G. Horton, A. H. Nathan, Jos. Russell, R. Rose, and J. L. Wilson, and there was a large attendance of shareholders.

REPORT AND BALANCE-SHEET. The report and balance-sheet were laid before tho meeting as follows :— The Directors have pleasure in presenting to the Share holders the Accounts of the Company as at the 30th November, 1895. & 8.(1. The profit on the year's transactions, after making full provision for nil ascertained losses to date of bal-

ance, amounts to 32,053 18 D Tho balance brought forward from 1894, after payment of dividend in January, 1595, was „ „ .. 18,008 15 2 £51,602 13 11 Deduct interim dividond paid in July last 12,500 0 0 And there is an available balance at Profit and Loss Account on 30th November, 1895, of £39,002 13 11 From ,which your directors recommend the following appropriations :— Payment of a Dividend at the rate of 12} per cent, per annum .. .. £12,500 0 0 Payment of Bonus to Shareholders of (id pur share 2,500 0 0 Investment Fluctuation Account .. 0,500 0 0 Contribution to Auckland City Leasehold Sinking Fund .. .. 5,000 0 0 Balance carried forward to New Account „ ~ 12,66213 11 £39,062 13 11 Although the amount standing to tho credit of the Auckland city Leasehold Sinking Fund is now very considerable, your directors have thought it prudent to add a further sum of £5000. They have also appropriated £0500 to the Investment Fluctuation Account.

It is with deep regret your directors have to record the death, on December Ist, on board the P. and O. s.s. Homo, of Mr. Warwick Weston, who. during the long period of his connection with the Company, both as inspector ami general manager, contributed in a marked decree to its success.

Messrs. J. Logan Campbell, J. 1.. Wilson, and A. 11. Nathan retire from the Board, as provided for by the Articles of Association, anil are eligible for re-election. Messrs. A, Boardman and H. Oiltllhn, jun., again offer their services as auditors. For the Board of Directors, J. Logan Campbell, Chairman,

1 £510,840 IB 3 We have examined tho books and accounts of the Company for tho year ended 30tli November, 1305, -, and havo to report that , the , balancesheet now presented to the shareholders Is a full and fair balance-sheet, and exhibits a trim and correct view of the state of the Company's affairs, , - A. B0All))5UN, : 1 Auditor^' H. GILVIU.AN. Juth/W* 13 ' I Austonai2Bth.D«fWll«r,lfJf)», - - ' ,>

' THE CHAIRMAN'S ADDRESS. The Chairman in moving the adoption of the foregoing said r—Bef offering any remarks upon the statement of accounts now presented it becomes my painful duty to refer to the death of Mr. Warwick Weston, whose connection with this company extended over a long period of years— as Inspector, and subsequently upon the death of Mr. G. P. Pierce, as General Manager. At the time of his death he was proceeding to India and London upon the business of the company, and although he had not been in good health for somo time, the suddenness of his death, which took place onboard the steamer Rome on the Ist December, came as a great shock to the directors. They wish to bear testimony to his thoroughness in everything he undertook, and to his fidelity to the interests of the company at all times. His knowledge of the company's affairs and advice upon the policy laid down by your directors have always been highly appreciated by them. I now proceed to lay before you the result of the operations of the Company for the year ended 30th November, which I do with much pleasure, and before concluding with the usual motion, desire to draw your attention to some of the figures in the balance-sheet. There is a moderate increase in the premium income, which is satisfactory when it is remembered that the colonies are only now recovering from the deep depression of the lost few years. On the other hand there is an increase in losses, but this item must always bo looked upon as somewhat of a varying quantity. Included in these losses is the sum of £5092, representing the amount paid on sovereigns per steamer Catterthun." Other companies are interested for a like amount, and it is probable this sum may notprove to be a total loss. Deep sea diving gear has been sent for to London, by the use of which it is hoped that the sovereigns will be recovered. One pleasing point is the gratifying reduction in expenses, amounting to £1838. _ The company's investments are now yielding an increased return, and the current year is expected to show a still better result. The Victoria Arcade is in a much better position. An increased income is now being derived from it, and there is every reason to believe that the revenue for 1896 from this source will show a still further improvement. Iu this connection it will be observed that the directors have added £5000 to the sinking fund. This has been done as a simple act of prudence, for the sum now at the credit of the Arcade Sinking Fund, including the present appropriation, amounting in all to £25,000, will yield on the low basis of 3 per cent, no less a sum than £76,869 by the time the lease expires—while the amount standing to the debit of the leasehold is now only £31,795. This fund, with its accumulations, is specially invested in separate securities. I wish to make some reference to the fire tariff, which came into operation in October last. In some quarters it bus given dissatisfaction. The experience of companies all over the world has shown the necessity for tariffs, aud that without them competition of the most insane character takes place, which, if general, would mean ruin to shareholders, and bad security to policy-holders, so that it is to the interest of the latter as much as to the former, that a just and reasonable standard of rates should be maintained. To show the necessity of tariffs (and they have not been confined to New Zealand by any means), I have before me a report taken from the Insurance and Banking Record, showing that 54 British companies in 189293, with an income in round figures of £19,000,000 sterling, barely made an underwriting or trade profit of 1 per cent, while in 1893-94 they made an actual loss of 1.374 per cent. Dealing more particularly with tho New Zealand tariff I may tell you that rates had become so unprofitable that all the companies doing business in the colony felt that, in the interests of shareholders as well as of the public, a fair return for the risk run should be obtained. Moreover, in the widespread operations of tho New Zealand Insurance Company reciprocity with other companies has to be maintained, hence your directors joined in the' present movement. If tho welfare of the company had depended upon the results of the business in New Zealand the balancesheet presented to-day would have been a disappointing one to tho shareholders. Experience has, however, shown that modifications are necessary, and at a Council meeting of underwriters, to be held in Wellington early this year, endeavours will be made to afford relief in all cases where it is shown that the present tariff presses unduly. I have pleasure in moving the adoption of the' report and balance-sheet. Mr. A. H. Nathan seconded the motion.

The Chairman intimated that it was open to shareholders to speak to the proposition. No shareholder availing himself of the opportunity, The proposition that the report and balance-sheet be adopted was pub to the meeting and carried unanimously. RE-ELECTIONS. There being no further nominations, the retiring directors, Messrs. J. Logan Campbell, J. L. Wilson, and A. H. Nathau, were declared re-elected.

Mr. I). Ross moved, and Mr. Ledinquam seconded, the proposal to re-appoint Messrs. A. Boardman and H. Gilfillau, juu., as auditors.

Mr. S. T. George said he had nothing in the world against either of the gentlemen named; he had no doubt they had always done their duty in a faithful manner. But he had maintained for some time, that, in a company of the extent of the New Zealand Insurance, it would be more advantageous for evorybody, and give greater confidence, if there were some system by which the same auditor should not be re-elected year after year. At previous meetings ho had asked the directors to take the matter into consideration, with a view to altering the articles of association, making it compulsory _ for one auditor to retire annually. He believed the directors had looked into the matter, but all knew the great amount of trouble involved in altering the articles of association. At the last annual meeting, he had been told that the best plan to get an alteration in the existing state of things would be to propose some other gentleman. He had looked around to see who ho thought would bo tho best fitted for the position, and had askeda gentleman to allow himself to be put in nomination. This gentleman hesitated. He (Mr. George) could sea what the trouble was.forthoauditorsofacompanyliketlieNew Zealand Insurance looked upon the auditing as really a vested interest. And there was a certain amount of feeling on tho part of tho gentleman referred to, that he did not like to oppose present holders of the appointment. But on his (Mr. George's) representations that he was actuated by no personal feeling, but that he simply disagreed with the principle, tho gentleman had consented to staod. He therefore proposed that Mr. W. B. Austin Morrison be elected one of the auditors.

Captain Colbeok said he entirely sympathised with Mr. George's motives, and seconded the proposition. Tho Chairman said thab at tho last meeting Mr. George, in speaking of the same matter, had said " he knew the shareholders had tho matter in their own hands, and that he could nominate somebody olsa if he choso; bub they all knew what that meant." Ho (the chairman) wished to inform the meeting that the directors held no proxies in the matter and would exercise none; neither would they take any part iu the voting as individual shareholders. The names of tho three gentlemen nominated as auditors were then put to the meeting ; and on a show of hands tho voting was, Gilfillan 18, Boardman 17, Morrison 8. The Chairman said it was within tho power of Mr. George to demand a poll. Five shareholders having signified their desire for a poll, Messrs. Bull aud Upton wore appointed scrutineers; it was explained that according to the articles of association each share carried a vote.

The poll resulted as follows: Gilfillau 6315, Boardmau 4732, Morrison 2915. The two first-named wpre therefore declared duly elected. VOTES OF THANKS. Mr. BUM. proposed a vote of thanks to the directors and officers of the company. In these days when there were so many calls, in many companies, in the place of dividends such a vote, he was sure all would agree, was certainly deserved, and was duo to those who had earned the money. He must refer to the late Mr. Weston, whom he had known since 1857, and by whose death the compauy hail sustained a very serious loss. (Hear, hear.) Mr. Calljjan seconded the vote. Shareholders had every reason to be pleased at the financial state of the company. Tho vote having been carried, The Ghaiuman.ou behalf of the directorate, returned sincere thanks for tho acknowledgment of their services. Mr. Edgar W. Walkbr, acting general manager, on behalf of the officer and agents of the company, also replied. Shareholders who had been so long connected with the Wow Zealand Insurance Company would understand that tho happy position of paying' regular dividends could only be obtained by constant watchfulness, anxiety, and good judgment on the part of all concerned in the management. Ho could speak from personal knowledge of the whole of the New Zealand staff, the Australasian staff, and some of the foreign staff, that all were earnestly engaged in furthering tho interests of the company. ' The endeavour of the tosctgis J%ij)wfW |rcstt w.tjy.an.d; cjipse

men of judgment. This was not a matter of very light import. Frequently a very onerous duty and responsibility was thrown upon the directors in filling up vacancies. Shareholders would hardly credit the amount of care and attention required in getting suitable men at times. The directors, however, had been, he thought, eminently successful, for speaking of the staff as a whole he did not think a better set of men could be found in any service. Passing on, Mr. Walker said he would like to say a few words as to the late general manager. He had long personal knowledge of Mr. Weston, and with truth he could say that a more conscientious^ painstaking officer never found service in any company. In conclusion, he said it ought to be superfluous to remark that a duty was cast upon the shareholders to endeavour to promote the interests of the company by influencing all the business they could. Mr. Boardman thanked the shareholders for re-electing him one of the auditors, and be also thanked Mr. S. Thome George for the kindly expressions he had used towards himself and his colleague, and for saying that he considered them quite competent and that it was not on the ground of incompetence that he had objection to their continuing in the post. He (the speaker) had been connected with companies for more than 40 years, both in the old country and New Zealand, and had been manager of a company that had not been very unsuccessful. And he could say without, fear of contradiction, and any accountant would bear him out, that there could be no books more carefully, more aearchingly, and better audited than were the books of tho New. Zealand Insurance Company. The directors had taken no part in the voting, and the auditors were quite independent or the Board. In no way were they controlled by the directors iu any possible direction, A few years ago, when the auditors had made some suggestions as to one or two little improvements, the directors made not a single objection, and the suggestions were carried out in a gentlemanly and straightforward manner. Any information asked for from the directors or accountant was always most freely given. Very often companies had foundered through bad auditing. Those who read the financial reports in England knew that. Shareholders had a right to know whether their auditors were competent, straightforward, and honest in their work, without fear or favour, and ho could repeat no books could be better audited than those of die New Zealand Insurance Company. As for himself, he had special knowledge of Insurance business, and that knowledge was brought to bear in the investigation of the> accounts of the company.

A vote of thanks to the chairman closed the proceedings.

Statement op accounts for THE Year ENDED 30th November, 1895. Profit and loss. Dr. £ 8. (1. £ ft d. To Dividend for tUo half-year ended 30th November, 1894 .. 12,500 0 0 Bonus for the year ended ::oth November, 1894 .. .. 2,600 0 0 Dividend for the halfyear ended 31st May, , 1895 12,600 0 0 27,600 0 0 Dr. (continued) <£ 8. d. £ a. d. Carried forward 27,500 0 0 Commissions, salaries, 6 and other o.vpenses 721001 8 3 Government taxes ami payments to Fire and Marine Associations _ .. .. 0,239 1 4 79,203 9 7 Fire and marine losses and appropriation for unpaid losses.. .. 172,137 0 8 Investment Fluctuation Account .. 0,600 0 0 Auckland City leasehold Sinking Fund „ M 6,000 0 0 Balance „«.«.« 27,602 13 11 £317,003 i 2 By balance at 30th November, 1804 .. 33,608 2 Fire and marine premiums, less returns and re-insurances „ _ 287,916 16 0 Interest and routs *.«... 10,377 12 3 £317,903 4 2 Balance-sheet. Dr £ s. (1. £ 8. d. To capital .. » 200,000 0 0 Reserve fund .. „ 126,000 0 0 lie-insurance fund .. HO.OOd 0 0 , 235,000 0 0 Investment Fluctua- ' tion Account—viz.: Amount last year 4,011 10 3 Transfer from profit and loss account .. M 0,600 0 0 filial M 3 Less written off sundry investments for depreciation ... 8,62319 8 1,987 16 7 Appropriation for unpaid losses - 32,528 0 0 Sundry creditors „ .. .. 13,762 5 9 Balance ..«.„«,.. 27,5621311 . £510,81010 3 CR. ■ By investmentsMortgages and shares 71,185 1 3 Company's freehold office premises and other properties .. 245,824 0 ( United States Bonds . 11,480 0 Cape of Good Hopo ulovernment securi- 7 >f tics 10,047 10 6. Argentine Governmerit securities .. 2,047 7 6 Debentures ,. .. 7,84717 V 0 Loans at call, short periods, and fixed bank deposits „ 69,778 17 3 403,81014 1 Auckland city leasehold 60,77717 ? Less sinking fund already accrued (including present appropriation of £5090) 24,933 2 1 31,79116 0 £440,605 10 1 Accrued interest and rents .. .. 3,019 8 Branch and Agency balances .. 64,103 C 0 Cash in banks and in band, at head office and branches., .. 13,112 i) 0