NATIONAL FIRE AND MARINE INSURANCE COMPANY.

Otago Daily Times, Issue 7723, 18 November 1886, Page 3

NATIONAL FIRE AND MARINE INSURANCE COMPANY.

The thirteenth annual meeting of the share, holders of the National Fire and Marine Insurances Company of New Zealand was held in the ball of the Chamber of Commerce yesterday afternoon. There was a large attendance of shareholders, the hall bsing well filled, and the chair was taken by Mr J. M. Ritchie, the chairman of the board of directors. BEPORT. The report of the directors and balance shest, which were taken as read, were as follow:— The directors submit their report and balance sheet 'or the thirteenth.year ot the company's operations. ..■•■• The net premium income amounts to £175,078 17s 4d, being £19,939 0s Id less than the previous year a reduction chiefly due to a curtailment in foreign business. ■ ■ ■ After making the usual provision for unearned premiums theie H a surplus of ... ... ... £13,892 18 9 To wi.ich has to be added balance from 1885 ... ... ... 1,989 6 2 £15,882 4 11 Out of which the directors re& mmeud a dividend of 10 per cent..fur the year ... ... £9305 15 0 To provide for estimated loss on mortgages ... 1750 0 0 And to carry lor ward ... 4326 911 £15,882 411 The fullest provision has been made for all known and unadjusted losses in the item of &6.091; The di.ectors having re»olved to send out new scrip, comprising both issues of shares, all shareholjors aro requested to present old scrip iv exchange for new when applying for their dividend. It will be necessary to elect ihree directors. Messrs J. M. Jiitchie, Keith liamsay, and Edmund Sraitu retire by rotation and oiler themselves for re-elec-tion. The retiring auditors, Messrs Reeves and Fenwick, also offer themselves lor re election. By order of the board. J. M. Ritchie, Chairman.

BALANCE SHBKT, 30th September 1833. Dr. £ s. d. £ 5. d. Capital, 200,000 shares at 10a ... ' ... 100,000 0 0 Less 3885 shares unalloted ... ... 1,912 10 0 98,057 10 0 Heservafund ... ... ... 117,181>15 0 Iteserve required to reinsure current risks .:. ... ... 61,654 0 0 Sundry creditors" ... ... 678 2 8 Dividends unpaid. ... .".. 331 14 6 Guaranteed interest unpaid ... 85 4 5 Appropriation fur losses unpaid ... 26.0H1 0 0 Balance . ... ... ... 14.152 411 £318,164 1! 6 Cr. .. £~~~"s7d. Loans on Mortgage ... ... 134,030 9 6 Freehold properties in New Zealand... 27,291 12 10 United states registered bonds ... 12,1(55 8 5 Flx*d deposits, Hank of flew South Wales ... ... ~ 43,000 0 0 Fixed deposits elsewhere ... ... 20.500 0 0 Balance «t oaiikers ... ... 15,171 9 5 Accrued interest on nvrtgnges ... 4,244 16 8 Balances at branches and agencies ... 43,312 11 1 Sundry d bto.s ... • ... 1,4^8 710 Bills receivable... ...'.' * „, 4,203 5 g Offl efu niture and stationary ... 4,748 3 8 Petty cash in hand ... ... 8 4 7 £318,164 11 6 Eete-tub axd ExparorrUHß For Year ending 30th September 1886. Dr. . £ b. d. Te Fu\s losses ... • ... ... 91,339 0 1 „ Marine losses ... ~'.* 44,876 11 f> „ Commission to agents . ... 18,160 5 0 „ Bxpenees of management, including subscriptions to Firo and Marine Underwriters' Associations ... ... 29,950 19 11 „ Stationery... ■ ... ... 1,764 3 2 „ Government tnxes ... ... 1,061 7 3 „ Bad and doubtful debts" ... 238 12 ." „ Deprecation on office furniture... 416 0 0 ~ heierve required to reinsure current risks at September 1886 ... 6l, c 54 0 0 „ Balance ... ... ... 13,8,12 18 9 £iU3,353 17 9 Cr. £ s. (1. By Heservc required to reinsure current risks at depl ember 1885 ... 74,155 0 0 ~ Fire premiums — le ; s reinsurances mid returns... ... 116,360 12 0 „ Marine premiums—lees reinsurances and returns... ... 53,718 5 4 „ Intet stand rents ... ... 11,05^ 11 3 „ Trans'erfees ... ... 19 10 0 „ Unclaimed dividends written off 40 16 > £263,33 17 9 Profit and toss Account. Dr. £ 8. d To estimated loss on mortgagee ... l,T*>o 0 0 ~ Baieooa ... ... ... I<US2 i 11

Cr. By biilnnoo brought, froimlSSS ... £1,030 0 2 „ Profit fofyciVr 18815 ... ... 13.8U3 18_9 £15,882 4 II : Wo liavfl examined thn above balance, sheet mid profit ftuil loss memmt, t(«etli.-r with vouchers mid ncc.iimtß.iuu'sotlio bo..k» of Hio company ami so-oii'itii-8 'I'hß I.oiul -n'nnd Paeillo States iimmnts, us audltr-d by local cli.irte.rod accountants, avo eorrrut.lv transcribed into the company's buoka hero. We lieicbvco tifv that t lie above, is a correct statement of tlio affairs of I lie company. Dimedin, 3rd November lSoii; The Ciiaiuman (Mr J. M. Ritchie) spoke as folio*, :— before moving the adoption of the report mil balance sheut I shall as usual make some explanations iintl remarks. And first I run over the figures in the accounts. In the balance sheet there is nothing of moment to call your attention to. Thu figures of tho capital anil reserve fund remain as before, to which I would ask tho special attention of those who have doubts as to the mode of arriving at this year's profits. Tho reservo of unearned premiums is reduced by £12,501, which I shall refer to more particularly pivsently. There is the usual appropriation for unsettled losses, which includes everything wo know of; and on the sklo of assets there are tho usual items in their usual order—all good, as we belicvo, and not presenting any important change in amounts.. The money deposited in tho bank is larger than usual, your directors preferring this to other investments just at present, and more especially as rates for deposits are so high as G per cent. Tho current balances, which include those at all branches are lower than last year, and bo is the b:ilauce at branches and agencies. Passing to the revenue and expenditure for tho year, there aro some important changes to which I ask your c.ireful attention. In tho first place you will notice nlarge reduction from last year in the amount of piemiums—in lire amounting to £25,350; in marine, £14,589; altogether, £39.039. This is the result of selection and uzui'iion of ri-ks due to inspection in the colonial field, and to a rather tardy following of head office instructions in England and America. The effect has been in every way satisfactory,. and I am hopeful that we are only now on the threshold of the improvement which will go on increasing in years to com?. It is very difficult to impress upon managers and agents, indeed oven upon our own minds at hoadquartors, that volume of premiums really means nothing; it is the net balance that tolls, and that is entirely regulated by skilful selection. While therefore a large volume of first-class properlychosen business is always valuable, a large volume of senond-class quality is much less valuable than a smaller amount of first-class. And there is no doubt that in England especially we have during the past year or two accepted too many premiums. I hope the mistake will not bo made again, and I desire to sen our growth more gradual than it has been lately. With the rotnark that our interest and rents are all paid up, I pass to the other side of the account; and first would point out that our losses, though still too high, are, when thoroughly examined, better than last year or the year before. This does not appear at the first glance, for fire amounts to 7S| per cent, and marina to 70 per cent.; but for the purpose of comparison it is proper to deduct the £12,501 set free from unearned premiums from tho losses, which represents the proportion of those which do not strictly belong to thb current year's operations, and when this is done fire and marine losses amount to about 70 per cent, of the total premiums. Treated on similar principles for the past three years—that is, accurately adjusting tbeuaearui d premium",— tin underwriting los.-. has been for 1884, £26,012; ISSS, £9358; 1836, £IG7. I think, therefore, that I was justified in stating, as I did a little ago, that the eff<:ct of the policy of culling had beim satisfactory, because it cannot be said that there is any marked increase of rates atany point of our operations. Commission to agents has fallen from £27,752 last year to £18,160, in consequence of the full in income. But these are still too high, and there is more reform necessary in this than in the item expenses of management, because the maintenance of high commission is due to excessive competition—the sure cause of unremunerative business. There is but little reduction iii the item expenses of management from lait year—£29,9sl against £30,239. And if you will consider, I am. sure you will see that unless we close branches it is almost impossible to make sudden aud material reductions ; for in the first place it is our policy—a policy the wisdom of which is proved more and moro every day—to change as soon as possible from commission agencies to our own staff, in the second place we fiud more and more that the best skill in officers always pays best, and the best skill will always command more than tho minimum pay; and in the third place, although perhaps 1 say it who should not, your directors have always laid a heavy finger on their office ex p-us' s—too heavy, I sometimes think, after looking back upon the past years. It was therefore not a surprise to me when we found that after going over every salary on the staff there was hardly a man who had not given evidence of returning full value to the company for tho remuneration be received, which you will remember is seriously affected by reduced bonuses when profits are bad, and that the voluntary reductions submitted to at headquarters by tbe directors and two principal officers proved to be nearly nil that was possible in the way of retrenchment. We shall save considerably by some changes being made in London by Mr Jack. But after all lam quite satisfied that it is a false policy to concentrate attention too much on this item; for no man is more worthy of his hire —and that, too, strictly in the interests of shareholders—than the skslled insurance.expert. Our total expenses are a shade over 29 per cent. on. the net premiums, and are not as 1 believe excessive j though we have been reducing these so seriously for the present .year and so increasing the ratio. I find the average of about 50 fire companies in England for the last four years is 30J per cent.; but fire costs more than marine, andso perhaps this is not quite a fair comparison. I must say a word or twn more upon the reserve for unexpired risks, about which a wonderful display of confusion and ignorance has appeared in the newspapers during the past week, I have already pointed to the simplest explanation of the operation of this annual adjustment when I proposed to reduce the losses by the amount of unearned premiums set free, and this you will all see is the practical effect of this year's method of stating the accounts. It is proper that the adjustment should be made under the head of revenue and expenditure for the year, because it is strictly a

" taking stock," so to speak, for each year by itself ; and to this extent a mistake was made in 1884 in bringing it under the head of profit and loss. Last year there was no adjustment, as, the unearned premiums were the same in amount as the year before. It is quite proper to take the unearned premiums set free iato profit and loss, or in other words, to use it to pay the losses which do not belong to this year, because that is the purpose for which this floating reserve exists. We have cut out during the year risks which are represented by £39,939 of the premium income. To run these off has cost us £12,501. There is surely no ground for paying this out of revenue when wo have set aside the money for this very purpose in years past. And it is as truly an underwriting receipt for the year as if it had been received in tho form of premiums; or to put it another way, it ought as properly to go to reduce losses as if it had been recovered under a reinsurance. I may say that the North British and Mercantile and the Northern Assurance Companies state their accounts exactly as we do. And I notice further, that this year, for the first time, the Liverpool and Lond on and Globe have divided their reserves as we di 1 in 1881, and set aside £550,000 as a special fire reinsurance

fund to be dealt with hereafter in the sama fashion. I have only one other item to refer to before passing from the accounts, and that is the provision for estimated loss on mortgages, £1750. We have been fortunate so far with our securities, which I believe are at present all good, and the interest on which is in no case in arrear. And this can fairly be called exceptional, inasmuch as we permitted ourselves to depart from our rule to have our own valuer. The loss has been made in Wellington, where we trusted to a local valuation. I hope I have made it clear that the balance ol £14,132 which we bring down as available for dealing with is duly earned without in any way diminishing the assets of the company, but it will give me pleasure to answer any questions or make any further explanations. I hope also that shareholders may approve of the proposed appropriation. And I would here venture to intrude upon you the lesson which has always appeared to me to arise naturally out of our late troubles and reduced profits. It is this, gentlemen, that our great mistake in the past has been the payment of too high dividends. I feel certain that it was a wise policy to build up a strong company and increase our assets ; but it should have been done out of profits rather than by the issue of

fresh capital at a large premium, which had the effect of practically ranking Ihe par value of a

large part of the shares 25a instead of 10s. Such an operation had a tendency too to induce speculation in our share-, and we have_ suffered in many ways by this. Had we restricted our dividends and madu larger reserves when profits were good, shareholders would have reaped the full benefit all the fame, and without the inflation which misled both directors and shareholders, and which tells so uncomfortably when profits

disappear. We may find the experience useful, *nd I believe we shall certainly find tho discipline of bad years of great advantage in teaching us to apply better methods to tha selection of business and how to refuse premiums, which U a much higher knowledge thin is necessary to gather them in. Your directors have had many proofs of th 9 confidence which a great majority of their shareholders kindly place in them, and wi Lout which I believe not one of them would sesk to bold his eeat for a day; but they have a'so had evidences of considerable interest and alarm about the foreign operations of the company, which, as I said last year, trm* be 'educed to tho<p"arriednu at London and San Francisco. I will therefore say a few words abuut iiiese I r.iirhes. A< you are aware, Mr Jack went to L radon last May, and since his arrival lie his been engaged along with iha manager of the Ade.aide Company and a representative ■ f tbe South British Company in probing th: business controlled from them to the 'vary b ttom. It was extremely difficult to get froiw our managers that annlj'ticU information which alone enables us to judge what business pays a', d whit does not; but sinca Mr Jack arrived that has 10 a great ■xt™t been procuiel. end 11 a ;s being made of it without delay. Getiu- a' i structi us which were given Fome time ago 11 cut <ut certain bu-iness had been given efe-t to, w'th theresuits which appear in our in ea nt bal nee nheet; but it ifl clear that more ii re mired, and that, us I have already indicatid, pren.iums have teen gathered 100 freely. H nvever, as our accounts, have shown, and bar! eiough as general irwuße have been there has besrn nothing of tho

nature of a catastrophe; and, indeed, it is almost impossible to see how such could occur, so moderate uro our limits. "Mr Jack, however, will not ceaso to apply the pruning knife, and ulreudy our liabilities have been, very greatly reduced. These remarks apply cliieily to fire business—us tht! marine, under a new underwriter appointed two years ogo, has got into very smooth water, and gives us no concern. In San Francisco, I am sorry to bay, wo finished the past year with 'exceptional losses, occurring during tho last three months of about £8500. l'ruvious to that this same narrow margin of revenuo over expenditure continued which him characterised the past eight years at this branch, and which hail caused us to determine to send v representative to inspect as soon as wo could Though there is a travelling inspector in our agents' office, there had never been mi inspection from headquarters. The late losses, though not arising from very exceptional risks, so far as wo can judge, hastened our intentions, and Mr Williams proceeds by next mail, a fortnight hence, with full powers to examine thoroughly into everything. Tho only present comfort in this connection is that tho above losses are fully provided for in our present balance, sheet. I linvo frequently explained to you the considerations which moved your directors to extend your operations to America and London, and I need not go back upon them. Tho results have not hem what wo hoped for, though in one year at least you were indebted for your dividend to revenue from these fields, which your owu did not supply. What I want to assurs you now is that with Mr Jack in London and Mr Williams about to proceed to San Francisco, both branches will be fully grasped by the board, ami wo shall not hesitato to act with promptitude and decision as it may appear to be in your best interests. But I must point out that It is by no means so easy to withdraw from a lield of operations as many shareholders would fain think. Tho sacrifice inny be too great, and it may be as rash to do such a thing beforo.Wß properly test the possibility of working to profit, as it is thought rash by some of our friends to hayo entered upon the field at all. By personal inspection and examination of ri.-ks, which it took months to_ ovortake, we have at last effected a remarkable improvement upon our Australasian business in spite of persistence of low rates; and if it is possible to do the same inspection for the London and American business, ifc is difficult to believe that the sumo result cannot bo effected. But in any case tho board hnvo tho satisfaction and confidence— which they believe all shareholders may share— of feeling thai what danger there may be, and it cannot be groat, will be arrested and gradually made to disappear by the presence ot two of their best officers on the spot, and that they may fairly hope to learn very shortly through them what are the reasonable prospects for the future of the branches in question. The other foreign agencies are small, carrying trifling liabilities, and on tho whole have resulted satisfactorily. But it is feltthat with all of them personal acquaintance by inspection from time to time is absolutely necessary. In pursuance of this policy, Mr Carrick, from Christchurch, has just visited Fiji, and the result U the discovery of certain dangers and disadvantages which would not have been found out from the returns, and which exist alongside of a very good actual profit realised at the branch. We have confidence in the future of our operations at all points, and believe that we shall have this confidence fully justified by results at our next general meeting.

Mr Keith Ram-ay seconded the adoption of the report and balance sheet. Mr J. Cameron said he believed tho chairman had always~stated that whilo they might not wish to give any or all information at a public meeting, yet any shareholder wishing to do so might get tho information at the office of the company. Was that correct ? The Chairman could not say whether he had made the statement or not, but it was correct that shareholders could obtain information at the office of the company, provided it was in the interests of the company to give the information.

Sir Cameron said ha bad applied on Saturday last for certain information, anil because he would not give an undertaking that tho information should not be used at the present meeting the information had been refused. Ho now wished ;to ask if it was a fact that the San Francisco agent had been paid by commission, which commission amounted to no less a sum than £3000 per year, and that no matter what kind of risks were taken he was paid that sum of money. The Chairman replied that the agent in San Francisco ever since the company had commenced to do business there had been paid in tho [ same way as most of the agents there were paid. He did not fuel called upon atpresent to defend that system of payment, bttfc might state that it had buun found impossible to make other arrangements. The commission was 25 per cent, upon the premiums, and the agent paid sub-agunts, provided office?, and paid all expenses with the exceptiou of the cost of inspection. There was ■al.-o a commission of 5 percent, upon1 the profitß made. These were the terms upon which the San Francisco agency had been worked. The board would have been glad if it had been possible to make other arrangements, and had offered to make the agent, who was an energetic an able man, anofficerof the company,atafixed salary, but he had refused the offer. Mr Cameron complained that a part of the question had been shirked. He wished to know if the agent was paid £3000 per year, and if he was also agent for the South British and the City of London Insurance Companies*; because if he were paid at the same rate by all the companies he must be in receipt of something like £8000 or £9000 a year. The Chairman could not say how much was paid to the agent, because the books were not at the meeting. Mr CameeoN remarked that that was the information which he had been refused when, he applied for it at the office. The Chairman said it had been the interests of the company to refuse it. It seemed necessary sometimes for the board to protect shareholders against their own actions in harming the prospects and reputation of the company. If shareholders were not anxious to protect their own interests still, the ooard intended to protect their interests for them. A Shareuoldek desired to know if he was to understand that the shareholders had no.right to ask questions. He had a notion that the company wa3 the property of the shareholders, and if they could not get their questions answered at a public meeting of the company he held that the information shoulc not be refused when it was asked for at tho office of the company.

The Chairman was ready to answer any questions that might be asked which seemed to be in the interests of the company, and Mr Cameron would have received a reply to his question if he had given an assurance that he did not intend to make use of it for purposes, which it seemed clear to the directors were against the interests of the general of shareholders. A Shareholder thought the shareholders were fully competent to look after their own interests, and that when they elected directors they did not forfeit their right to any interest in their shares.Mr Cameiion asked if he could receive the information he had.asked for by applying at the office on the following day. The Chairman said they would give au answer to that wheu they saw him at the office.— (Laughter.) Mr Mendkrshausen said it was not a difficult matter to read between the lines and to see that Mr Cameron wanted to know whether the business in America had been paying or not. As he believed in calling a spade a spade; he would ask whether the chairman would give information to the shareholders as to how much or what profit, if any, had been made by the. company. in America during the time it had been carrying on business there ? From the remarks of the chairman last year he understood that the directors intended to withdraw from the American business. If tha v business was not paying there must bo some extraordinary charm about it to induce the directors to hold so tenaciously, to a losing concern. Would they retire from the business, or would the chairman state—for the. shareholders had full confidence in his integrity and in that of tho directors generally—that the company bad not made a loss on the business it had done in America during the last seven or eight years ?

The Chaiejian replied that in his remarks last year he had said that the company in San Francisco had only been keeping just about level, and what he wanted to convey was that the directors were dissatisfied with the business there because they had not made adequate profits. That was a literally true statement. Up to the month of June or May last, some years they had on the San Francisco business a> few thousands to the good, and some years the business showed a little to the bad ; but on the whole it was to the good, though not sufficiently so. During the last three months they had mnde at that branch exceptional loss, as might be gathered from the fact that the losses, part at San Francisco and part at Honolulu, amounted to £8500. The risks on which these losses had occurred had been carefully scrutinised at the head office in Duuedin, and nothing was seen, to lead them to suppose that there was anything exceptional about them. Speaking from memory, not having the figures before him, he might say he believed the company was just about square iv the San Fraucisco business; but for eight years' work, and considering they had taken a large amount of premiums, the directors considered that very bal, though there was nothing disastrous in it. Upon the whole he did not believe the Sau Francisco business had influenced the companv'a dividends one penny, at any rate the iuflueiice was very trifling; and he might say that there were several branches aud agencies he could name in Australia, and some in New Zealand—in big towns, too—that wf re in exactly the same position. He was justified in what he had previously maintained, that they had seen nothing in America to lead them to take fright. The only thing they had seen was that their perseverence and care had not resulted in making the money

they ought to have made, and when they had made up their minds that they could not remedy that state of things they would not hi sitate for a moment in clearing out. At the same time it should be borne in mind that they had to consider the surroundings, and that it would not be fair to commit themselves to a policy in reply to a question by a shareholder. Mr Esther asked what amount of money was sunk in Am riiu. The Chairman had simply to refer Mr Esther to the Imlauce sheet, where it was stated by itself—United States registered bonds, £12,165 8s s<l. Mr Esther : Then we have had £12,000 sunk for eight years. Has any allowance been made f■. r interest ? The Chaiejiax : No. Mr Esther : Wo have had no benefit from it? ....-• The OauBMASf: Foar pfer timi.

Mr Esther : Then, as amnctor of fact, wo have laatlo 4 jiev cent, per nnnum ou that £12,000 ? Tho Chawman : Yes. Mr Esther agreed with tho chairman that thu directors in calling up tho premium mid issuing fifth shares had mado a inisUko. Tho mistake, he submitted, was a serious one, mid lie inquired if then; was anything to prevent tho premium being returned. The Cuaiuman Mticl they had all to live and leiirn, and ho was willing to admit when his judgment had tan at fault ami a mistake made, but at the same time lit) did not think it necessarily followed because eight men mado a mistake iv recommending a certain issue of chares that they alone should bo blamed when tlie public rushed for the shares as though they could not do without them and could not poasibly get enough of them. He thought it was fair that tho shareholders should take their share of the blame, and also acknowledge their mistake and bear tho consequences of it._ As to returning tho premium, that rested entirely with the shareholders. As to questions, ho hoped tho shareholders would not .suppose ho hud any desire to withhold information. There had been more fresh directors elected for this company than for any other, and the directors would publish the whole of tho accounts of the company if they mado up their minds that it was in the interests of the shareholders to do so. Tho directors had no object to servo excepting to promote tho interests of tho shareholders. Mr MENDEH3HAUSEN wag glad to hear_ the chairman was so willing to answer questions. He wished to know whether it was tho intention of the directors to withdraw from tho business iv America, and if they had had that matter under consideration. Tho Chairman replied that the matter had been under consideration for four 3 ears and that the directors had made up their minds that it was not iv the interests of shareholders to tell them whether or not it hail been decided. Mr Mendeksiiausen said he was perfectly satisfied. . . Mr Bhindi.ey was of opinion that as they had a capable body of directors, who had tho iuterests of the company .it heart, and were striving to put it on a sound footing in all respecta, the best thing the shareholders could do was to leave the management of the company to them. For his part he was sure everything would come out right. .The directors had a big interest in the company, and their interest was identical with that of'tho shareholders, and to be' secured only by the success of the company. With regard to the questions put by Mr Cameron, he was confident the interests of tho company were being well served, and he would remark that what might be good for tho company in_ Mr Cameron's opinion, might net be good for it iv the opinion of other people. The motion to adopt the report and balance eheet was put and was carried unanimously.

ELECTION OF OFFICERS. Mr H. J. Walter, as one of the original shareholders of this company who had always taken a lively interest iv it, desired to fay that his efforts to Barry au amendment at thela>t meeting were not directed against the personnel of the directors. At that time, at previous times, and at tho present time he olaced full confidence iv the directors, and thought that the shareholders had no reason to bu dissatisfied with them. Many of them knew that the lot of directors of Cuancial and insurance companies, like that of tho policeman' iv the Pirates, " was not a happy one." He intended to move that the retiring directors, Messrs J. M. Ritchie, K. Ramsay, aid Edmund Smith, be re-elected, but wuuld parenthetically remark that he differed from the opinion of the chairman that .a mistake had been made in paying high dividends. At tho time the 15 per cent, dividend was paid a very large sum had accumulated to tho reserve fund, and he considered that the mistake that had beeu made was in increasing the capital of the company; but that mistake had been marlo with the test intentions. Ho had great pleasure in proposing the re-elec-' tioii of the retiring directors. Mr G. Kliott seconded the motion, and in doing so ; expressed full confidence in the integrity and ability of the gentlemen to whom the control of the business of the company had been entrusted. He had no doubt tho directors would not refuso information, unless by giving it they were likely to prejudice the interests of of the company. The proposal to re-elect as directors' Messrs Ritchie, Karasay, and [Smith was also carried uuanimous'y. The Chairman said ho had only to thank them on behalf of himself and co-directors for their kindness iv ro-elccting them. He need not add what ho had said before,- that he believed there was not a board that had the interests of the shareholders more entirely at heart than the board of directors of the National Insurance Company. He honed tho day would come when that would be freely acknowledged by the very few dissentients there were now, because be w.is bound to say there were very few. Ho constantly received voluntary communications from other parts of the colony, along with proxies, expressing high approval of the course the directors had takeu. All the communications he had received from shareholders' expressed approbation with one exception, and that one contained a strong expression of opinion that, if it were possible, in the interests of the company they should retire from foreign business. With that exception, in all the communications he had received the policy of the directors waß approved, so that the directors were bound to believe that a very large majority of the shareholders were with them, and it was highly satisfactory to know that that was so. The following gentlemen were nominated for the position of auditors: —Mr Geo. Joachio, proposed by Messrs Quick and Williamson ;: Mr A. G. Veuwick, proposed by Messrs Nixson and Brent; Mr A. Herdman, proposed by Messrs W. D. Stewart and J. Hercus; Mr T. X Harty, proposed by Messrs Murray and Wright; and Mr C. 8. Reeves, proposed by Messrs Arkworth and Murray. > On a ballot being taken Messrs Geo. Joachim and A. G. Fenwick were elected auditors. This concluded the business.