STANDARD INSURANCE COMPANY.

Otago Witness, Issue 2661, 15 March 1905, Page 13

STANDARD INSURANCE COMPANY.

ANNUAL MEETING. The thirty-first annual meeting of the Standard Fire and Marine Insurance Company of New Zealand was held at the boardroom, Agricultural Hull Buildings, ou Monday afternoon. The chairman of directors (Mr John Reid) presided, and amongst others present were : The Hon. T. Fergus, Messrs John Mill, A. C. Begg, D. Haynes, W. F. Edmond, and M. Joel (directors), Mr T. R. Fisher (general manager), and about 20 other shareholders. ANNUAL BEPOKT AND BALANCE SHEET. j The annual report of the directors was j as follows: — I The directors have pleasure in submitting the report and balance sheet for the year . ending December 31, 1904. i The income for the year, including tns balance brought forward from last year, amounts to £108,518 9s sd, and the expenditure to £83,652 4s Id, leaving a balance of £20,166 4j* lQd. j Fiom this amount an interim | dividend was paid in June last \ amounting to £2,812 10 0 ( Your directors have adderd — r To Reserve Fund 5,000 0 0 And recommend that the balance be appropriated as follows : — ■ To pay a dividend for half-year ending 31st December, at the rate of 7J per cent, pei annum 2,812 10 0 To pay a bonus of 2§ per cent. 1,875 0 0 To, carry forward to next year 7,666 410 £20,186 4 10 Full provision has been made in the accounts for all ascertained losses to the close of the year. The dividend and bonus now recommended if approved by the shareholders, will be payable" at the company's office immediately after tie meeting, and at the branches on receipt of advice. Messrs Daniel Haynes and Maurice Joel retire from the directorate, as provided by tke articles of association. Both are eiigibl* and offer themselves for re-election. | Mr Patterson offers himself for re-election as auditor. John Reid, Chairman. Dunedin, February 10, 1905. Balance Sheet for Yeah Ending 31st December, 1904. liabilities.

ASSETS. 1

PBOFIT A1O) LOSS ACCOTTNT. j To Losses — •> j

To dividend and bonus, paid December, 1903 .. JE4,6|7 10 * Dividend paid (in-

I have examined the above balance sheet and profit amd loss statement, together with vouchers and accounts, as also the books of the company and securities, and hereby certify that the above agrees with the same, and is a correct statement of the affairs of the company. J. Q. Pattehsoh, F.N.Z.A.A., Dunedin, February 8, 1905. Auditor. The Chairman, in moving the adoption of the annual report and balance sheet, said : The report and balance sheet having been in your hands for several days, I will ask you, as usual, to accept them as read. You will, I am sure, agree with me that the result is very satisfactory, considering the exceptionally heavy losses that occurred in this colony during the year. The income, including the balance brought forward from last year, amounts to £108.818 9s sd. and the expenditure, including provi-. ,n fc unadjusted losses, to £88,652 4s 7d. leaving a balance of £20,166 4s lOd. From this the interim dividend was paid for the first half of the year, and your directors have placed £5000 of the amount to the credit of the reserve fund, which now stands at £40.000. | and recommend that the balance (£12,353 14s lOd) be appropriated to the payment of a dividend at the rate of 7^ per cent, for the half-year ended December 31, and a bonus of 2£ per cent., and that the sum of • £7666 4s lOd be carried forward to next j year. In this connection I wi=h to direct i your attention to the tact that the interest j derived from our investments is this year i rather more than sufficient to pay the divi«J«ad. The bonus of 2£ per csnt. you will ; *ocq£v© feoin the mofits oa -underwriting. '

Turning to the profit and loss statement, you will note that oui premium income shows an increa~e on the preceding year ol £3331 10s 2d. Competition is very keen, and we cannot expect any ->cry large advance without increasing the area of cut operations or doing a iess safe business Our nee losses aggregate £34,929 5-- 9ct, oi 53.06 per cent, of the net premium income and for licenses r.nd taxes we have paid £1391 14s 4d, or 2.31 per cent, on the net ' income. There arc, I think, no other items in the balance sheet calling for rernaik. As you are aware, we have now to face competition with the State Fire Insurance Department. This has involved a \ery con- ; siderable reduction in rates — probably they ' are now below a paying point. However, as the State can no more afford to do business at a loss than the companies, an end ; must come to this sooner or later. Mean- | time, the company will strenuously protect its valuable business connection, which has taken many years to build up, and no doubt wo shall be able to hold our own. Our business is not confined to this colony, | nor is it confined to fire business. I would I remind shareholders who look to the coraj pany for dividends of their obligations to co-operate with the directors in securing i the largest measure of support that their influence can command for the company. You will note that your directors have filled the vacancy on the board occasioned by the death of their esteemed colleague, Mr Alexander Thomson, by appointing Mr William F. Edmond, whose influence will, I believe, be of considerable advantage to the company. I feel sure that his appointment will be cc-dially endorsed by shareholders. In concluding my remarks, I wish to express our appreciation of the care exercised by our managers, agents, and staff, to which must be attributed in a large measure the success we have had in th-a past. With these remarks, gentlemen, I beg to move the adoption oE the report. Mr J. M. E. Garrow seconded th« motion, and in doing so said the result of the year's operations had been a most satisfactory one, and the shareholders only hoped to see as satisfactory a position next year. . The motion was then carried unanimously. ELECTION OF DIHECTOBS. On the motion of Mr E. R. Smith, seconded by Mr Knight, Messrs D. Haynes and M. Joel, the retiring directors, were unanimously re-elected. Mr Joel, in returning thanks, said it was now some 21 years since he joined the board, and he was very pleased to say the company had been carried on successfully during that period. It was very strange, indeed, that the Government should interfere with tLe business matters of the pop«lace, and it eeeined to him that in doing so it was killing the goose that laid the golden egg. It was- a pity that where a business was jirosperous the Government should not allow that prosperity to continue. He did not think that the Goverpna&ni should intftrfere with priyat* enterprise. Mr Haynes briefly r*turned thanks. Mr J. G. Patterson was reappointed auditor. | VOTES OF THANKS. I On the motion of Mr Logan a hearty rote of thanks to the directors and officials of , the company was carried. In returning thanks on behalf of the direei tors, th© Hon. T. Fergus said the board, as ' constituted, had always had but one aim. as far as th© company was conoerned, and i that was to make it a thorough success. ' The Standard Insurance Company's income : was not dc-rived solely from New Zealand. Neither was it confined exrclusiTely to fire | insurance, and it hoped to add another department to the business. The Government's proposals struck more at the success and the well-being of companies having their home in New Zealand, the jlac© of their | birth, than at ether companies trading out1 side. If the Government succeeded, it was the shareholders who would suffer first, for , th© income would be withdrawn. There is no doubt -whatever if the Standard Company were compelled to close its doors tomorrow" the shareholders would get far more out of the investments than what was indicated by the price the shares were quoted at on the market. But the income would cease so far as the dividends of the company were concerned. That would be a bad thing for the company. The aim of a certain section of our legislators seemed to be this : whenever they found an individual colonist doing any good for himself, and consequently for the colony, it was about time that that individual should be knocked on the head. The Government aid not warn to eep enterprise flourish. He did not fear but that the shareholders cf the Standard Company would continue to receive favourable dividends. This fr-ove on the part of the Government was only a passing spasm, that would blow over, and it would be found that the company could not be put down under the heel of a crude socialism. As in the past, the directors would endeavour in the future to do their best in the interests of the company. Mr Fkher briefly returned thanks on behalf of the staff. ACCIDEXT INSURANCE. An extraordinary general meeting was then held for the consideration of the following motion: — That the provisions of the memorandum of association of the company with respect to the company's objects be altered by adding to clause 3 of such memorandum of association the words following — viz. : " To carry on the business of accident insurance in all its branches, including indemnity against charges ta-king precedence of enciimbrances, mortgages, or charges lawfully existing, and generally to enter into any contracts usually undertaken by insurers against accident and indemnity, including the reinsurance of such risks."

In moving this motion the Chairman said : You have hoard the resolution read. Your directors consider it desirable, in order to conserve the best interests of the company. that this proposed amendment should be made in the memorandum of association. We are at present authorised to do fire, marine, and guarantee business, and the alteration now proposed will permit of our doing accident insurance, as this branch of business, in the opinion of the directors, can be conveniently and advantageously combined with the other business of the oompany. In undertaking accident business I need scarcely say that your directors will proceed on sound linos; they believe it will prove to be a valuable addition to the company's business. You are- no doubt aware accident business is frequently associated with fire- business by European companies. Mr A. Sligo seconded the- motion. Pie said ho be-lievecl that, authority being given to conduct the oxtra branch of insurance, the policy -which had served so well in th© past would be pursued, w'th Ihe same care and intelligence in the future. Personally he had every couGdenoG in the oare and

discretion o fthr- rlirecto'ate and lnanajrmtiit. Ho wi'Ui oi> to refer to an article in the January Windsor iia^azmc on idte-an<l U:.ts <\b «ho\\ iig that, though oily allowing 3s 2J.-1 per £100 lor dopver i.ition, the lrmriu:pal'tio-. of (ijrar Britain, instead of makii.g a pioiit of 5323,000 pi r annum on \ f.iious public cimcc-, \v<u<^ really show.!)- an absolute 10. = of 51 millions on the capita! invented. Ylc bol'pved it would be similarly so with State business. Nobody would wcr sec <i complete statement of the working of State insurance, but it would mean that one man would pay *or what another got.— ('•Hear, hear.") The poorov amongst the community, who injured nothing at all, would, if the Government ohose to run the insurance companies, liave to pay very largely for what the rich man got. Th© motion vr&a then carried unanimously, and it will be confirmed at a special meeting on March 27. . A vote of thanks to the chair concluded the meeting.

terim, 30th Jui 1904 - . Reserve Fund ne, 2,812 10 5,000 0 9 0 Balance . . . • j £12,500 0 0 12,353 14 10 £24,853 14 10 !y balance on 31st December, -1903 £12,138 18 Balance brought down .. .. 12,714 16 6 4 £24,853 14 10

ty fire, marine, and guarantee premiums £90,G69 7 Interest on investments . . . . 5,673 16 Transfer fees' 23 17 5 i 6j £101,367 0 11

(.Including appropriations for I unpaid and unadjusted) .. £34.929 5 9 Reinsurances, discounts, and > return premiums 35.515 18 1 ' Stationery 1,000 0 0 Government licenses and taxes 1,391 14 & Underwriters' Association and j Fire Brigades 1,042 1 0 Bad and doubtful debts . . . . 105 17 7 " Commissions, expenses of | management, and charges . . 14,667 710 Balance ' .. 12, 714 16 4 . £101,367 0 11 !

►y Investments • Deposits bearing interest . . Office furniture and stationery Cash in bank, at head office and branches Accrued interest Otrtstaading at head office and branches 39,046 6 10 I 1,187 18 6 31,330 8 1 1,351 8 0 I 9,887 9 11 ' £162,080 15 1 — i

'o capital subscribed — 100,000 shares at £10 . . . . £1.000,000 Less uncalled 925,000 0 0 0 0 Seserve Fund teinsurance reserve iundry creditors. -as per ledger .. Lppropriation for ftnpaid and unadjusted losses Jalance of Profit and Loss Account - £75,000 0 0 40,000 0 0 25,000 0 0 2,269 15 3 L ! 7,457 5 0 12,353 14 10 , £162,050 15 1