N.Z. Farmers' Co-operative Fire Insurance, Association.

Star (Christchurch), Issue 4576, 22 February 1893, Page 3

N.Z. Farmers' Co-operative Fire Insurance, Association.

ANNUAL MEETING. The second annual meeting and a special general meeting of the shareholders in the New Zealand Farmers' Co-operative Fire and Marine Insurance Association was held in the Association's premises, Cashel street, at two o'clock this afternoon. There were thirty-three shareholders present, and the chair was occupied by Mr John Grigg, Chairman of the Board of Directors. Mr T. W. Maude, solicitor to the Association, was present. SPECIAL MEETING. Previous to the annual meeting, a Bpecial meeting was held for the purpose of amending the Articles of Association providing for the payment of a bonuß not , exceeding the rate of 3 per cent per annum on the called-up capital, and for the payment of such bonus on premiums paid by each shareholder as may be directed by the shareholders in general meeting. The Chairman, in moving the adoption iof this alteration, explained that the j Directors were hampered as regards the working of tho articles, through no provii Bion haying been made to limit the bonus. j The Directors desired that the accruing revenue should be employed for the reduction of premiums rather than for swelling the dividends or bonus; hence, with the adoption of this alteration, the dividends would be limited to 7 per cent and the bonuses to 3 per cent. Mr J. Gough seconded the motion, contending that a reduction of the premiums was more desirable than an increase in the dividende. The meeting to confirm this resolution was fixed for Saturday, March 81, at 1.30 p.m. ANNUAL MEETING. The report and balance-sheet were taken as read. . . [". ' The Directors, in submitting the annual report and balance-sheet for the year ending Dec. 31, 1892, congratulated shareholders on the successful results lor that period. The income for the year, including a balance of £599 19a lOd carried forward from last year, amounted to .£9652 3s 7d, and the expenditure to £4686 12s Bd, as follows :— Marine losses £132 5s 4d, fire losses nil, reinsurances and returns £3564 17s 7d and working expenses £989 9s 9d. Provision had been made for any marine losses not aeeertained. After making an appropriation of £620 required to reinsure current risks, together with a sum of £150 for Directors' and Auditors' feeß, the writing off £134 lls Id, equal to one- third preliminary expenses, and £10 depreciation on office' furniture, the balance available for distribution will be £4050 19a lOd. The Directors reoommended adividend on called up capital of 7 per cent., a bonus on premiums of 10 per cent, and the transfer of a sum of £1000 to a reserve fund. Should the foregoing appropriations and recommendations be approved of there would be a balance of about £304 to carry forward to nextjyear. The Directors recommended that sub-section 3 of Article of Association No. 100 should be altered. The retiring Directors were Messrs S. Bailey, M, S. Campbell, J. Gatnmack, E. B. Holdsworth, W. B. Howell, J. Page, and H. W. Peryman, who were eligible for re-election without notice, and had signified their intention of standing. It was also necessary to elect two auditors for the ensuing year. - The Chairman briefly moved the adoption of the report and balance-sheet. Mr J. D. Dickenson seconded the motion. Mr H. F. Gray said he thought it was a - matter for great congratulation that the Association had done so well during the year. But he thought they were going too fast, and they should provide more for the reserve fond. Ha would move as aa amendment — r"That; the bouuaea ba not paid, but that the amount so caved be placed to the reserve fund." They had been exceptionally favoured in the past year by an almoat total freedom from loss, therefore now was the opportunity to build up a good reserve for future contingencies. They could expect to win custom and the confidence of their insurers only by putting aside 'a reserve fund. If he were not personally interested in the concern he should avoid insuring with them, because of their weakness in this respect. They were pretending to teach other and older Companies their business, and bringing themselves into ridicule. He believed that the lapsing of the bonus and the increase of the reserve would do more to ensure confidence in the Association than the payment of large bonuses and dividends. If disaster were to overtake such a young Company, they would have to cease payment of the bonuses, and he should prefer that they did not begin them. Mr Shirley seconded the amendment. The Chairman said there was so much truth in what Mr Gray had said that it necessitated a reply. But Mr Gray had not looked at the proper position of affairs when he spoke. They were a young Company, it was true, but they stood in a unique position. Their capital was three , times as large as their premiums. They had carried £1000 to reserve after paying everything, and were doing a safe and sound business. They wanted to develop that business, and to do so musb offer their shareholders 'some encouragement. They had built up their capital iv proportion to their business, and the Directors did not think they were at all too liberal in giving such a bonus as they proposed. All the Mutual Companies gave bonuses, and the Directors considered their capital ample for their business. Mr J. D. Dickenson said there was another way to look at it. Their business was a safe one, because they took no town risks. The Chairman said that was one of the reasons why the other Companies looked upon them with a jealous eye. The fact was that they took the cream of the business, and left the other Companies the risky portions. Mr Gray, in reply, said he had no. objection to the bonus system, but he strongly advocated the reserve being made stronger than it was at present. In another year they could not expect to pay a bonus, as they could not look forward to a year so free from losses as the last. If they made a I loss iv one of their wool ships they would I be unable to pay a bonus, and what he objected to wax the probability of having to take a backward step. He should not like to begin by paying bonuses and then have to discontinue them. The amendment was put, but was supported by only the mover and seconder and the Hon E. Gray. The adoption of the report was then put and carried. ELECTIONS. Messrs S. Bailey, M. S. Campbell, J. Gamtnack, B. B. Holdsworth, W. B. Howell, J. Page and H. TV. Peryman, being the only gentlemen nominated for the office of Directors, were declared re-elected. Messrs A. A. M'Kellar and W. Jameson were re-elected auditors. THANKS. A hearty vote of thanks was accorded to the Directors, and, a similar compliment having been paid to the staff, the proceedings cloaed.