STANDARD FIRE AND MARINE INSURANCE COMPANY.

Otago Daily Times, Issue 3919, 8 September 1874, Page 3

STANDARD FIRE AND MARINE INSURANCE COMPANY.

The half yearly meeting of the Standard Fire and Marine Insurance Company was held yesterday afternoon at the Athenaeum, Mr Q. F. Reid in the chair. The attendance of shareholders was small.

The half-yearly report for the half-year ending June 30th was brought up. It was as follows :

Tn presenting- the first half-yearly balance-sheet, the directors desire, to congratulate the shareholders on the prosperity and future prospects of the company. The receipts for half-year amouni t.> £7103 15.s 3d. After deducting- the whole of the preliminary expenses, losses, aud cost of management, there remains the sum of £395114s lid to credit of the profit and loss account. The sum of £17,750 has been invested on first-class securities, at interest ranging from G to 8 per cent.

In the acceptance of risks the utmost care, consistent with the nature of the Imsine s, has been exercised in every department.

The Company not being formed in sufficient time to secure a share of the last season's wool export trade, and the Home Agents' returns of business not being to hand, the half-year's transactions have been confined to fire and coastal ma me insurance.

Agencies Have been c tablished in Great Britain and in the Australian Colonies, and the Directors confidently anticipate ii larjje increase of business duringthe ensuing half-year.

The following is the statement of accounts for the half-year : —

Liabilities.—To capital, calls on 47,000 shares at 10s, £23,500: to balance of profit and loss account, .-£3591 14s lid ; total, £27,001 14s lid. Assets.—By unpaid calls on shares, £9SI '8s (id ; investments, £17,750 ; in Bank, branches, and hands of agents, £8359 16s 5d ; total. £27,09 i 14s lid Profit and Loss Account.—To fire premiums, £5228 ISs Gd: marine premiums, £ISI2 li)s lid : interest, transfer fees, &c, £121 lUs lOd : total, £7103 15s 3d. By fire losses, less salvages, £9C9 0s Sd ; marine do, do, £111; salaries and fees, £527 12s 2d; preliminary expenses, £G94 12s 5d ; license and registration fees, £400 ss; printing-, stationery, advertising, &c, £207 9s Od : agents' commission, £413 17s 2d ; rent, stamps, postages, telegrams, &c., £107 14s 2d ; balance, £3591 14s lid ; total £7103 15s 3d.

The Chairman could have desired the balance-sheet to be of more roseate hue—it appeared humble when contrasted with the balances of other companies—but taking into consideration all the circumstances under which.tbe Company was started, it did not present bo bad an appearance, and th< re was nothing in it to be ashamed of. It sin uld be borne in mind that the Company was floated under rather unfavourable / circumstances, and the difficulties with which it hadto contend were very considerable. The Company was started too late to secure a share of the last season's wool export business ;. it was also started just after the commencement of business by two powerful local companies, who pushed on operations most vigorously, and without the advantage of a large and influential proprietary. It was quite impossible for the Company to commence with a large business. Business only came in gradually, and they were now finding that the Company was beginning to satisfy their expectations, though that could not be seen from the balance-sheet befure the meeting, which did not show what had been done since the 30th June. Besides the difficulties indicated, they had had, and still had, some difficulty in getting mt-n of mark and influence to take a leading part in the affairs of the Company, inasmuch as the gentlemen who were desirable as members of the directory were already concerned in other companies, either as shareholders or were on the Boards of other companies, so that in Dunedin it was quite impossible to get on the directory the gentlemen they wanted. Tcey bad been very unfortunate in regard to their London agency. They sent home a power of attorney to a firm which they had every reason to believe would accept the agency, and when they expected to receive advices of having got full lines, it was dispiriting to receive information that the firm would not accept the agency, as, doing business for another office, they could not accept it. However, they took the earliest opportunity of appointing a London agency, and had been fortunate in getting tl c London branch of a leading Dunedin firm to accept the agency. They yet required confirmation of the acceptance, but on the arrival of the next Victorian mail they expected to receive telegraphic advices that the agency had been accepted. The loss of time had been vexatious, but it was unavoidable. Their Sydney and Melbourne agencies were in full working order. To get them into working ovder involved another loss of time. Their country agencies in all parts of New Zealand were now in working order, and showed a considerable accession of business. Notwithstanding all the disadvantages under which the Company had laboured, they had made a very respectable appearance in fire business, and it was hoped that during the ensuing wool season they might be able to get some of the insurances on wool exported—at least, they were determined to try. With regard to their fire business, he might say that since the 30th June they had, from Otago alone, taken nearly £2000 in fire premiums, which would be allowed to be a very favourable result, and business was constantly increasing from all quarters. This sum of neai-ly £2000 did not include returns from branch agencies not yet to hand. As to premises, the Company, in connection with the Standard Building Seciety, had secured the lease for fourteen years of the present offices — a most desirable site —at a. small cost. The building was to suit the business of both companies, the cost to be borne proportionately, and there would be secured for each a first-class business site on very easy terms. And here he might remark upon the matter of expenditure—they bad always had in view the keeDing down of expenses, and he did not know of any compaDy equal to this in the Colony that had been started with so little expense. In conclusion he would, on behalf of the directors, impress upon shareholders to exert themselves for the advancement and increase of business of the Company. The prosperity of the Company might be greatly advanced byeach shareholder exerting himself to influence business, and thereby second the exertions of the directors to that end. It was only by having numerous and widespread risks that an insurance company could be safely prosperous, and he hoped members would feel it to bo their duty, and work, to strengthen the hands of. the directors, before moving the adoption of the re; ort, lie ! would take the opportunity of referring to

the energy .of their most excellent manager, Mr C. Reid'. He could only say he had never seen so energetic a worker in any business in which he had beeu concerned, and the great success which the Company, under the difficulties he had mentioned, had achieved was largely owing to that gentleman's persevering exertions. He had much pleasure in maying the adoption of tlij repurt. ( Mr Bakkr seconded the adoption of the report. He thought the directors were entitled to the thanks or the shareholders. From the circumstances under which the Company was formed, he thought the shareholders had every reason to be pleased at the amount of success achieved, and he hoped that the next report would show a brighter state of things.

The report was adopted. Mr Glendtninu asked what had been the amount of loss since the balance ?

The Chaiuman mentioned that the loss was £1500, and the Manager mentioned an additional loss not included in the £1500, and which would not exceed £GO.

In answer to Mr Scanlan, The Chairman stated that the rates of insurance charged by the Company were according to a uniform rate agreed upon by the various Companies, and he was quite sure it was low enough. Mr Scanlan explained that his reason for asking the question was, that another Office had accepted a policy of insurance from a friend of his at a less rate than the Standard, which had had the offer, would.

The Ciiathma-t was sorry to say there were instances of bad faith on the part of those who had arranged to keep to a uniform rate. The directors were anxious to do all the business they could without running stupid risks, and also desired to keep faith with the other Companies. Mr Scanlan mentioned that the' gentleman he had alluded to had several policies at the same rate as the one referred to. It appeared very strange to him that five or six Office-.should charge the same rate, and that the Standard shcuid have a charge higher than ifc.

The Chairman said that he could not go into particulars at a public meeting, and remarked that the case Mr Scanlan mentioned could be enquired into.

A vote of thanks to the Chairman concluded the proceedings.