Page 293 Advertisements Column 3

Observer, Volume 4, Issue 97, 22 July 1882, Page 293

"p R O SPEC T U S THE MUTUAL FIRF AND MARINE INSURANCE COMPANY OF NEW ZEALAND. i - - Incorporated under "The Joint Stock Companies Act, 1560," and the several Amendments thereof. CAPITAL ... ... £200,000 Divided into 200,000 Shares of £1 Each, - Payable as follows : One Shilling per share upon application, One Shilling per share npon allotment,, and One Shilling per share on the eighth day of January, - 1833 (if required). ' . - Directors : \ John Buchanan, of Auckland, Merchant William Buchanan, of North Shore, Gentleman Wilhain Da.vid Dallen, of Auckland, Manufacturer Alexander Dewar, of Auckland, Merchant James Dickey, of Auckland, Ironmonger Walter Dowden, of Auckland, Auctioneer Thomas Handcock, of Auckland, Brewer Donald Hugh McKenzie, of Auckland, Merchant James McGowan, of the Thames, Merchant Richard Monk, of Auckland, Gentleman William Henry SJrinner, of Auckland, Builder BANlfojpS: The National Bank of New Zealand, Limited. , iSOLICITOES: Messrs Hesketh and Richmond. Temporary Offices : Canada Buildings, Queen-street. The objects for which the Company is established are : — 1. To carry on the' business of Fire and Marine Insurance in all or such of its branches as the Company shall from time to time determine. * 2. To purchase or otherwise acquire and take over all or any part of the business property ,nr liabilities of any other Company carrying on Fixe and Marine Insurance business. 3. To purchase, lease, or otherwise acquire any real or personal property which may be convenient ( or necessary for the purpose of the Company. 4. To sell, demise, mortgage, improve, manage, or % otherwise deal with any property of the Company. t 5. To invest the monies of the Company in such securities as may from time to time be deemed expedient and without limiting the generality of this clause. To ta,ke or otherwise acquire and hold shares or Stock in any Company, or in any partnership arrangement transaction which may be deemed directly or indirectly advantageous to the Company! 6. If deemed advisable, to borrow money, either with or without security on all or any of tho property of the Company, or my issuing debentures charged on all or any of the Company's property (both present and future), including its uncalled capital. 7. To do all such other things as are incidental or conducive to the advancement of the above objects. This Company has now been fully established, and without any appeal to the public over Ten Thousand Shares have been already applied for, in many instances the applications were repeated and the number of shares doubled. The Company has been established on principles different to those of the other Insurance Companies now existing in the colony. Of these principles the chief is that known as tho Mutual principle, by which the profits of the Company, after paying interest at the rate of 8 per cent., to the shareholders upon theh- paid-up canital, and after such deductions for the formation and replenishment of the reserve fund and other contingencies, are to be divided into two equal parts, one part of which will be divided between the Insurers in proportion to the preiums paid by them respectively to the company during the l^st preceding year, and the other part will be divided' amongst the shareholders in proportion to !. he paididp capital on their shares respectively. By these Jneaus Shareholders derive the following benefits ': — lst. They receive 8 per cent., per annum upon their j.. paid-up capital. 2nd. They receive as a bonus a dividend one-half of the balance of profits distributed in proportion" to the amount of their paid-up cax>itai, while Insur. rs receive as a bonus or divideud the other half of balance of x'rofits, distributed in proportion to the preiums paid by them during the last preceding yeai-. If a person occupies the double position of Shareholder and Insurer, then he partakes of both sets of benefits. Another f eature in connection with the undertaking is that Shareholders only are liable for loses. The advantages derivable from an undertaking, based on such principles, must at once appear clear to every intelligent mind ; for the Shareholder and Insurer are stimulated alike to advance the interest of the Company and prevent losses — First, by directing business to the company. Second, b» exercising caution in the selection of risks which they bring ,- and, Third, by using extra precautions to prevent fires, by which their bonus or dividond would be absorbed. In this way both Shareholder and Insurer work together for one and the same object, each being stimulated to make the business of the Conii.any as large as possible, and so produce a large bonus or dividend, iv whicli they each equally participate. This same result or object also acts as a preventive to the occurence of fires and losses. In this way each of the beneficiaries has a special and particular Jinterest in the welfare aud prosperity of the undertaking, and it is this principle which forms the company's strongest safeguard and i.rotection. The larger the number of Shareholders and Insurers, the further this safeguard and protection is extended ; for, as each feels the xirosxierity of the Company, so each feels its reverses, though both are felt iv different degrees. As to the necessity for such an undertaking, it is quite clear that it is called for. The business of Fire and Marine Insurance has been, and still is increasing throughout the Colony, aud especially is this so in the Aucklaud Provincial District. The vast returns which have been obtained by our local companies demonstrate beyond a doubt that a business of very great magnitude is being transacted year after year, and that these enormous results are produ'eed upon a very small amount of called-up capital. None of ahese extraordinary results, however, are produced by Comxianies formed upon the mutual principle, by which- every additional Insurer, by insuring, lessens the cost of insurance, and creates a powerful protection against that carelessness from which fires are chiefly due— a iirinciple which induces greater caro and caution in all households and iilaces of business. Building and population, too, are both on the increase, and theh is every prosxiect of this continuing. All tho Fire and Marine Insurance Companies in New Zealand are based upon the ordinary principles, .by which profits are divided amongst Shareholders oxly aud such regard for Insurers as is now proposed finds no xilace in their constitution. It is reasonably concluded, therefore, that a wide field lies open to the Company now introduced to the public, and a xirosxject of success certainly as great, if not greater, than that hitherto aecomiilished by similar institutions is now presented for acceptance. As to the Company's projects — The success which has followed the different Australain Mutual Life Associations must be well-known, and the increasing numbers of such institutions augers well that the principle of mutuality is the key to this vast measure of success. If success follows that principle when applied to risks of such an uncertain nature as life risks, it is imxiossible to advance any sound argument against the like results being obtained in applying tho like principle .to the less hazardous undertaking of Fire and Marine Insurance. One Mutual Fire Society in Australia has been in existence nine years up to May, 1881, and for the last eight years it has paid 20 per cent., bonus dividend equally between Shareholders and Insurers, besids 8 per cent., interest to Sharholders upon their paid-up capital, and in May 1882 (the end of its tonth year), it had in invested funds the handsome amount of ;£i5,000. What *is more remarkable still is that these results have all been produced from a called-uj> capital of only Sin thousand two UiiAidred and fifty pounds. . .- - . Applications for Shares should be made upon the accompanying form, and forwarded to the Bankers of the Company, together with the amount payable on application on or before the 10th <jlay of.August next. " , ■ , If no allotment is made, the deposit will be returned withoat' deduction, and when the number of Shares allotted is less than the number applied for the eurplhs