THE EQUITABLE INSURANCE ASSOCIATION

New Zealand Mail, Issue 995, 27 March 1891, Page 29

THE EQUITABLE INSURANCE ASSOCIATION

AN INDIGNATION MEETING. (per press association.) Hokitika, March 19. An influential meeting of shareholders of the Equitable Insurance Association, representing 12,000 shares, was held last night, Mr Bevan beiug in the chair. The Chairman expressed satisfaction at the presence of a large shareholder from Greymoutli, Mr Guinness, M.H.R, The business operations of the Association for the last four years were exhaustively dilated upon, and the enormous losses, amounting in the aggregate to L 42.693 18s during that period, were fully discussed. A general expression of opinion prevailed that a reckless, extravagant and vicious system had been disclosed by the balance-sheets hitherto issued by the Directors ; that the auditors and Directors had failed in their duty in not having previously reported on the value of the assets ; that withholding the balance-sheet for 1890 until after the general meeting had been held in Dunedin demanded the most searching inquiry in view of large amount of deficit, which the shareholders would eventually be called upon to pay in making up the affairs of the Company ; that the business might have been sold to greater advantage as a going concern had the Directors confided in the shareholders. Great stress was laid on the oft-repeated assurances of the Directors and Manager. during the past two years of the gradual increasing prosperity of the Association. The shareholders had been lulled into false security by these specious arguments and explanations; that the Directors must have known when issuing the balance-sheets the hopelessly involved condition into which the shareholders were being plunged in carrying an the business without capital ; and that they must be held responsible for their actions. The following resolutions were unanimously carried :—This meeting is of opinion that exhaustive investigation into the affairs of the Association is absolutely necessary in view of the enormous losses disclosed by the Directors ; that a Committee consistng of five shareholders, two representing the Otago and Canterbury, two Westland and Nelson, and one for the North Island, to be chosen from the resident shareholders, be appointed for the purpose ; that the Greymouth, Westport, and Nelson shareholders be earnestly requested to co-operate in order to secure a strong West Coast representation at all the meetings of the Association ; that in the interests of the shareholders it is desirable not to appoint a liquidator until the report as laid before the shareholders by such an investigation committee ; that the shareholders throughout the Colony be requested to co-operate in giving effect to these important resolutions, and for the protection cf their vital interests. A Standing Committee was appointed for the purpose of taking all necessary steps for protecting the interests of the shareholders of the Westland district.