THE FARMERS' CO-OPERATIVE INSURANCE ASSOCIATION.

Star (Christchurch), Issue 5805, 24 February 1897, Page 3

THE FARMERS' CO-OPERATIVE INSURANCE ASSOCIATION.

♦ THIS DAY. The sixth annual meeting of shareholders in the Farmers' Co-operative Fire and Marine Insurance Association of Canterbury, Limited, was held in the directors' room at 2 p.m. to-day. Mr C. Ensor occupied the chair, and the directors present were— J. Gough, F. D. S. Neave, W. Henderson, M. S. Campbell, W. Boag, D. M'Millan, J. Holmes, J. Eennie, G-. D. Greenwood. Mr Thomas Maude, solicitor to the Association, was in attendance, and there was a small meeting of shareholders. An apology for absence was received from the Chairman, Mr John Grigg, on account of ill-health. directors' report. The Chairman read the following report of the Directors on the year's business : — " The Directors have pleasure in presenting the annual report and balance-sheet for the year ending Dec. 31;;.~i896. The revenue, including balance carried forward from last year, is <£11,09S 16s 6d and the expenditure .£6522 Is lOd, leaving a balance of .£4578 14s 8d to be dealt with. Provision has been made in the accounts for all ascertained losses. After providing a sum of ,£S2O to reinsure current rists, and appropriating .£l5O for directors' and auditors' fees, there will be a balance of <£3606 14s 8d available for distribution, oitt of which the directors recommend a dividend of , 5 per cent, on paid-up capital, a bonus of 10 per cent to shareholders on business, leaving a balance of about .£450 to be carried forward to next year. The retiring directors are Messrs C. Ensor, W. Henderson, K. H. Enodes, P. D. S. Neave, J. Jlennie, and J. Talbot, all of whom are eligible, for re-election without notice. It will be" necessary to elect two aiiditors for the ensuing year. Since the last annual meeting the directors have to express their deep regret at the great loss the Association has sustained by the death of the late Mr. James Ganiniack, who always took a keen interest in the welfare and success of the Association. Mr John Holmes was unanimously elected to fill the vacancy on the Board caused by Mr Gammack's decease. An opportunity having occurred to purchase the section adjoining the New Zealand Farmers' Co-operative Association's stores on the west side, the directors took advantage of the offer, and decided to erect offices for the Association on the site, which will be open for business about the end of February." The balance-sheet showed the capital subscribed to be 14,518 shares at £o each, representing. ,£72,590. Of this amount ,£45,539 10s was paid up, and there was .£3OOO to the credit of the reserve fund. The sum of .£45,235 had been lent on mortgages, and the deposits bearing interest amounted to .£6351, and the balances at call were .£2413 7s. The credit balance on the year's working was .£3606 14s Sd. The Chairman, in moving the adoption of the report and balance-sheet, regretted that the results were not as satisfactory as could be wished. The principal losses had been in connection with frozen meat. The Insurance Companies and Meat Companies had joined together to endeavour to reduce these losses in Canterbury by having a proper inspection of the meat before it was put on board, * but unfortunately the same steps were not being taken in the North Island. He considered that the insurance companies had given too liberal terms in the past, and there was great risk in accepting a cover for sixty days after the meat arrived in London. Their London agents Avrote to the effect that a good deal of the meat was damaged whilst being transfered to barges in London. However, the dock companies were moving in the direction of erecting cool stores close alongside the steamers, and he believed the New Zealand Government was also prepared to assist in this matter, and it was to be hoped that before long some steps wo\ild be taken to prevent the meat being landed in London in bad condition, which was almost a national question. The securities had all beeninspectedby an independent committee, and were found to be sound. Mr Jameson, the London agent, had been replaced by Mr S. Mackenzie. The business had increased during the year in a satisfactory manner. It was quite possible that it would be to the advantage of the company to do a certain amount of town business with country clients who might wish to insure town property with them. The average of the percentage of losses this year was 52-44, and the previous year it was 22-39 per cent. For the six years the losses had average 32 per cent on premiums paid. This, he thought, was satisfactory, and, with a further increase in the business the concern was bound to be a prosperous one. Mr W. Henderson seconded the motion. Mr John Holmes said that last year they had 6 per cent on their capital, and a 10 per cent bonus, whilst this year they got 5 per cent on capital and only the same bonus. This year they had only .£450 to the good, as against some .£llOO last year. Some shareholders had been induced last year to pay up their shares on the understanding that the profits were to be largely increased by doing an open business, instead of confining it to shareholders. He considered that this had operated badly, and a large loss had been made on outside business. If there had been a loss on frozen meat then they must increase the premiums. [The Chairman : They have been raised by 20 per cent since the beginning of the year.] If this was a trading institution it should not carry on any branch at a loss. If they only insured to arrival in London docks, who was to take the risk between the ship to store ? There must be an insurance, winch would cover the meat at ships' side at Lyttelton until it gets into a safe place in a London store. He pointed to a case which had come under his notice when meat was damaged on board one of the steamers, because there was not sufficient power to both drive the ship and the freezing machinery. .