INSURANCE FAILURE.

Poverty Bay Herald, Volume XLVIII, Issue 15742, 6 February 1922, Page 3

INSURANCE FAILURE.

HIGH DIVIDENDS AND THEN A

CRASH

'Elec. Tel. Copyright-United Press Assn (Australian and N Z Cable Association LONDON, Feb. 4.

A provisional liquidator of the CSty and Equitable Insurance Co. has been appointed at the company’s own instigation in order to protect its interests against the creditors of the company. ]Jo announces that efforts are being made to evolve a scheme to save the whole position. Though no explanation is given for the suspension of the compnny, it is believed that tho insurance business is not responsible but a financial policy on lines not customary among insurance companies. It is reported that assets were locked up in a manner rendering quick realisation impossible. Some funds are locked up in hotel properties, including Claridge’s hotel in Paris, pin chased when francs were 26 to the pound, so realisation would mean a 50 per cent. loss. There are many well-known shareholders, including the Earl of March, the Earl of Jlchester, Lord Eibblesdale, Viscountess Haig, and Lady Rhondda. The capital consists of £l* shares on which 4s have been paid. They were quoted until the middle ot January at 50s. Last year’s dividend was 60 per cent.