NATIONAL INSURANCE COMPANY

Otago Daily Times, Issue 22424, 20 November 1934, Page 6

NATIONAL INSURANCE COMPANY

ANNUAL MEETING The sixty-first annual meeting of shareholders of the National Insurance Company of New Zealand was held in the board room of the company yesterday afternoon. The chairman of directors (Mr John Moloney) presided, and there was a fair attendance of shareholders. CHAIRMAN’S ADDRESS. Moving the adoption of the annual report and balance sheet, the chairman said: “In submitting the accounts for the year ended September 30 last, there is little in the figures calling for special comment. A recession of net premium income for the years 1931, 1932 and 1933 has been followed by an increase of £IO7O in the past year’s income of £210,336. Whilst the Dominion returns have been good, the company’s operations in other countries have largely helped to produce a net return of £28,098, being 13.36 per cent, on the underwriting, business. Whether this spurt in insurance profit is likely to continue no man can tell, but one thing is almost certain—-that is, while the world moves, so will insurance of all kinds be carried on, whether with equal to past returns to shareholders or not only the future can show. The control and management of insurance companies are steadily advancing into the scientific ago. “ At the opening in June last of the headquarters of the Chartered Insurance Institute,, London, by the King, the president of the institute said: ‘lnsurance—by means of which the burdens of the few are shared by the many—is an integral part of the commercial and social life of all nations. In this essential service British insurance organisations, with funds aggregating upwards of £1,500,000,000, are pre-eminent. British insurance representatives are to be found in every quarter of the globe, helping to forge those bonds of friendship so desirable in the interests of international peace and goodwill. Science and invention are. constantly at work changing the texture of our industrial, commercial and social systems. These changes are reflected in the business of insurance, which tends to become even more complex and to make increasing demands upon the skill and knowledge of those engaged therein. The promotion of the efficiency, progress and general development of those employed in insurance is the primary purpose of the Chartered Insurance Institute.’

“In replying to the (address, his Majesty said; ‘ Insurance is a social, economic and commercial service of world-wide importance, which is now, as you say, indispensable to the welfare of all civilised countries, for it affords protection against those contingencies which even the most reckless cannot ignore, and the most far-seeing are often powerless .to avert. Insurance may well be described as one of the leading industries in the Home market, while, at the same time, it makes an appreciable contribution to our invisible exports. This country has taken a leading part in its development throughout the world in the past two centuries, and I see on the walls of this fine Conference Hall the emblems of companies whose names are well known and respected in every quarter of the globe. The growing complexify of insurance, to which you have referred, calls for ever greater precision of method and to apply it with success a high order of business and intellectual qualifications is required. The outstanding position of Great Britain in this field to-day has been attained by the efforts of men of character and foresight, and it is in order to train such men that the institute exists.’ “Let these words bo remembered,” said Mr Moloney, “ when one’s disposition inclines towards criticism of insurance company management, “ Losses at £96,826 are less by £9334 than ’last year, but charges are slightly higher. The difficulty of finding investments for funds is a common one to-day. Debentures and shares, Dominion and Commonwealth Government securities, mortgages, money on compulsory deposit with Australian States, are all at reduced rates; and also banking deposits, amounting in all to £731,560. A wule margin exists in favour of the company between book values and Stock Exchange quotations for debentures, shares and Government securities.

“Bank deposits are subject to periodical reductions, and rents from freehold properties are suffering from effects of the prevalent economic epidemic. Yet with ail the existing setbacks, interest and rents, £27,622 net, show an increase of £947—after deducting £2989 for taxation on this source of income. Balance due on sale of freehold property, £19,000, has been paid since the closing of accounts for the year. “ With the balance from last year, £81,308 is available for distribution. After deducting £IO,OOO for reserve fund, £1167 13s 6d for contingency account, and writing off £5732 from the company’s premises, the directors now recommend the payment of a further dividend of fivepence per share, making the total distribution for the year ninepence per share, £37,500, and to carry forward £36,909.” — (Applause.) Mr W. Downie Stewart seconded the motion. He said he thought it would be agreed that the results for the year must be regarded as satisfactory to shareholders of the company. One particularly satisfactory feature which had been pointed out by their chairman had been the increase in the premium income. was particularly noteworthy, because it had not been the universal experience of insurance companies operating in New Zealn *d. He hoped that they would be able to maintain the increase in premium income in the future , 7 ears. One factor affecting the operations of the company which must be obvious to all shareholders was the fall in interest rates, and this was still continuing. Th' j y had had low rates of interest before in New Zealand—that was in the nineties —but perhaps they were not as low os were operating now. The speaker said that they had to remember, however, that there was a difference in the two positions, as whereas in the nineties the interest rates were comparatively low the taxation was not so high as now.— (“Hear, hear.”) Mr Stewart referred to the importance of maintaining and increa-.ing, if possible, their underwriting business to meet the fall in interest rates, and said that he thought the company was extremely fortunate in its officers and-• staff, both in New Zealand and Australia. All the reports the directors got showed that the members of the staff were very keenly interested in the welfare of the company and its operations—(Applause.) The motion was carried. OFFICERS.

Messrs F. W. Mitchell and J. Sutherland Ross, who retired by rotation from the directorate, were re-elected without opposition. Messrs E. R. Smith and W. T. .Monkman were elected auditors.

Mr Mitchell briefly returned thanks on behalf of himself and Mr Ross. CONGRATULATORY.

Mr E. J. Smith said he would like, on behalf of the shareholders, to move a vote of thanks to the board of directors and the staff. He would like to refer particularly to the staff. He could say without hesitation that they could not have a more courteous or obliging staff. (Applause.) Mr Moloney returned thanks on behalf of the directors.

Mr A. Mmnford, general manager, said that the vote of thanks would bo much appreciated by the stuff. Their work during the past year had been just as strenuous as in the previous year.

It was a great satisfaction to the staff to be able to show the results presented that day. Through the period of depression the various staffs had had to contend with many difficulties, but they had lost none of their enthusiasm, initiative and optimism,— (Applause.) MINING NEWS OPERATIONS AT CROMWELL <From ouh Own Correspondent.) CROMWELL, November 19. In consequence of recent amendments to the Mining Act some 70 applications at the last sitting of the Warden’s Court were adjourned. A suit, Bell and Kilgour v. Hooper Bros., was concluded and the warden reserved his decision. This was a claim for £2OO, value of gold alleged to have been taken by defendants from plaintiffs’ area at Kawarau Gorge before the advent of company control. Work on the Bendigo Goldlight dredge is progressing satisfactorily, much of the heavy gear being now in position. Last week a Keystone drill was landed near the junction of Bendigo Gully and the Clutha River, where boring will be carried out over a wide area. It is also fairly definite that several drills will be operating on the Clutha, above Lowburn, in the near future. At Waenga the miners are steadily at work. Some of the men are stripping a paddock further back in the terrace beyond where the first good ground was worked, and will be • treating the wash this week. Others of the party are engaged in tunnelling into the flat. _ This was started well above water line, in th 6 rock, with a grade that will tap the channel at a convenient point. A soft fault in the rock was selected for this and excellent progress is being made. Another party on the adjoining area to the Waenga miners is assembling plant for elevating, for which water will be brought in from a creek nearby. On the reefing areas at Bendigo, beyond the Rise and Shine Company, there is little activity, although there is some prospect of work being resumed in the new Bendigo Company’s low-level tunnel at an early date. OKARITO RETURN Messrs W. A. Mitson and Co., secretaries of the Okarito Five Mile Beach Gold Dredging Company, Ltd., report that the wash-up for the week ended Saturday last was 420 z 16dwt for 128 hours’ dredgm%he following report relates to the four weeks from October 7 to November 3;—-Total gold won, 1640 z 4dwt; total time worked, 497 hours; total non-work-ing time, 79 hours; total yardage treated, 31,820 —an average of 64 cubic yards per hour; average value of ground (on basis of gold worth £4 per ounce), 4.9 pence per cubic yard. WAITAHU WASH-UP The secretaries of the Waitahu Gold Mining Company, Ltd., report that advice has been received from the manager that as a result of 7J days’ elevating 38oz 3dwt have been washed-up. GILLESPIE’S BEACH REPORT The secretary of the Gillespie’s Beach Gold Dredging Company, Ltd. (Mr F. R. Thompson), advises that the wasn-np for the week ended Saturday, last amounted to 290 z XOdwt for 124 hours. Advice has been received from the dredgemaster that the dredge was held up for 12 hours during alterations in the power house. There is plenty of water available, and the dredge is running well. GOLDEN ARROW SLUICING COMPANY It is reported that the last wash-up of the Golden Arrow Sluicing Company yielded a return of 112 oz of gold. MAHAKIPAWA GOLDFIELDS Owing to a breakdown in one of the pumps on the 12th inst. work was not resumed underground at the Mahakipawa claim until Thursday afternoon. There was no wash-up at the mine tor last week. THE MATAKI RETURN - (Per United Press Association) AUCKLAND, November 19. The Mataki return for the week ended November 18 was 220 z for 132 hours work. GORE HORSE SALE Messrs Wright, Stephenson, and Co., Ltd., report having held their final horse sale at Gore for the season on Saturday. The offering was comprised of good farm sorts, and although late in the season, the demand was still good, practically the total yarding being disposed of at prices satisfactory to the vendors. The top price of £47 was obtained for a six-year gelding, while a rising three-year was sold at £46. The following is a list of sales: —Three-year gelding £4l, sevenyear half-draught gelding £ls, aged gelding £l6 10s, six-year gelding £35, rising sixyear gelding £47, rising four-year gelding £46 10s, three-year gelding £46, sevenyear gelding £39, six-year gelding £33 10s, four-year gelding £2O, four-year gelding £35 10s, 10-year gelding £33 10s, nine-year mare £37 10s, eight-year mare £3O, aged mare £l4, aged mare £l2 10s, aged gelding £8 10s, aged gelding £7, aged gelding £7 10s, 10-year hack gelding ,£4 10s, hack gelding £5 15s, five-year pony gelding £6. Scott Bros., produce merchants and commission agents, agents for the Dunedin Egg Suppliers’ Association, report:— Eggs: Poultry farmers, lid; others, lOd. Butter; Dairy pate, 0d per lb. Honey: Bulk, 3id to 4d per lb. Poultry: Hens, 2g to’ 2s 6d each; heavy, 2s 6d to 3s; roosters, Is 6d to 2s. Ducks, Is 9d to 2s 6d each. Geese, 2 S 6d to 3e each. Turkeys: Hens. 8d per lb. Gobblers, fid per lb. Pigs: Wanted prime baconers to 6d per lb; porkers, 6d to 6Ad per lb. Potatoes. £2 15s to £3 per ton. New Aucklands, Ifd per lb; Oamaru, 3d per lbChaff: Prime oaten sheaf, £4 to £4 5s per ton, bags extra, ex store. Canadian, 18s 6d per bag. Partridge peas, 5s 3d per bushel, sacks extra. Feed barley, 2s lOd to 3s 3d per bushel, sacks extra. Whole fowl wheat, 4s to 4s 3d per bushel, sacks extra. Whole maize, 5s per bushel, sacks* extra. Oats: Gartons, 2s 4d to 2s 7d; Sparrowbills, 2s 9d per bushel, sacks extra. Crushed barley, 10s per 1501 b. Oat pollard, 7s 6d per 1201 b. Palmers chickfoods, lucerne meal, oyster gnt. We hold stocks of poultry requisites. Free use of fowl crates on application. November 19. 1934