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October 21, 1905.]
COMPANIES.
THE UNION INSURANCE SOCIETY
OF CANTON, LD.
The thirty-second ordinary aunual meeting of shareholders was held at the Society's offices, Queen's Buildings, on 19th October. There were present Messrs. H. W. S'ade (chairman), A. G. Wood, N. A. Siebs, A. Forbes, G. H' Medhurst (directors), W. J. Saunders (secre- tary), Hon. Mr. Gershom Stewart and Messrs. A. V. Apear, Ho Fook, H. M. Nemazee, H. F. Carmichael, A. G. Morris, W. H. Gaskell, F. D. Goddard, Y. V. Vernon, C. H. Rogge, G. H. Potts, J. A. Jupp, C. W. Richards. W. Melchers, A. B. Rouse, C. M. G. Burnie, H. J. M. Carvalho and J. A. Carvalho.
CHINA OVERLAND TRADE REPORT.
balance in hand at the present date is about the same as it was last year on 1904 account. I would now like to mention the scheme for | China Traders' Insurance Company and issuing purchasing the majority of the shares of the in exchange new shares in our Society. As you will have learned from our circular letter of 11th October an extraordinary general meet- ing will be held very soon, at which the whole scheme can be discussed, and all I wish to say now, while on the subject of accounts, is that we are confident that the proposed increase of capital will not in any way interfere with our being able to keep up the standard of our divi- dends in the futare. Before proposing the adoption of the report and accounts I shall be glad to know if any shareholder wishes to ask any questions.
No questions were asked and the CHAIRMAN proposed the adoption of the report and
accounts.
The Hon. Mr. STEWART in seconding the
motion, said :—
our
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NORTH CHINA INSURANCE CO., LTD.
ordinary general meeting of shareholders, to be The report for presentation to the second held at the offices of the company at Shanghai - on Tuesday next reads as follows:-
The directors beg to submit, for the informa- tion of shareholders, the annexed duly audited statement of the company's accounts to the 30th June, 1903.
1904. The balance at credit of this account is Tls. 344,232.79, and after deducting an interim 29,032.26, paid on the lat. May last, there dividend of 7 per cent., aggregating Tls.
remains a sum of Tls. 315,200.53, which the directors recommend should be appropriated in the following manner :-
A final dividend of 7 per cent. on the paid- - up capital.
A bonus of 15 per cent. upon contributory premiums.
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Tis. 100,000, to the credit of a silver reserve food.
(4
and investment fluctuation account."
Tls. 50,000 to the credit of an exchange
And the balance to be transferred to under.
writing reserve account, closing the account
for 1904.
1905.-The Balance at credit of working account to the 30th June, amounts to Tls.
Reserve Fand.-Acting under the powers the directors decided to convert the Tls. conferred on them by the articles of association, 800,000, referred to in the last report, into a permanent sterling reserve fund, and it now appears in the balance sheet as £100 000.
Directors.-Iu accordance with the provisions of the articles of association the directors all
retire, but being eligible, offer themselves --with the exception of Mr. Matthews, who is leaving for home-for re-election. Notices in writing of candidature for the seat tacated by Mr. Matthews will be received at the head office, up to 16th October.
Auditors. The accounts have been audited by Messrs. Wingrove and Hayter, and they again tender their services to the Shareholders. By order of the court of directors
WM. GEO BAYNE,
Secretary.
Shanghai, 9th October 1905.
TANJONG PAGAR REPORT.
The SECRETARY having read the notice convening the meeting, the CHAIRMAN said :-
GENTLEMEN-The report has been in your
Mr. CHAIRMAN,-Gentlemen,-I rise with hands for some time and I will with your per- much pleasure to second the adoption of the mission take it as read. I think I may fairly report and accounts, and in doing so feel say that the figures presented in this report relieved that no words of mine are necessary to are satisfactory in every particular. The recommend to yon the acceptance of figures which premium income is larger than it has ever b en speak so eloquently for themselves. I am glad before and the interest receipts also show & to notice the word of warning in the Chairman's considerable increase on previous figures. At speech as to our counting as an annul certainty the same time the charges show a decrease on the exceptional good fortune which it has while the losses and claims are about the same. been the lot of this company to have had for I will not take up
302, 53.37. your time in going the last few years. Those who are interested through the figures item by item, as I have in Marine Insurance need no reminder as to no doubt you have all studied them carefully, how quickly a very good looking ace unt might but I may mention that sterling exchange at the last moment be torn to pieces by a taken at 1/10 this year, as against 1/10 last devastating typhoon or by a big gale in the year, and that the doll'ır equivalent of all stor- channel, but shareholders who merely ling items would naturally owing to this cause collect their dividends are apt sometimes show a decrease of about 2 per cent. I will to forget the risks which are run to obtain now come to the division of profits of the year those dividends, and I think it is well to remind 1904. As you may have heard, a considerable them that there is a debit as well as a credit portion of these profits has been derived from side to an underwriting account. I feel sure the war risk business. Some of you may
that all shareholders will approve of the careful think that it would be better to avoid this class manner in which our large earnings have been of business as being of too speculative a nature; proportioned. The building up of a strong but it is not possible to do this altogether, as reserve is a policy which is sound and reason. underwriters have to oblige regular customers able. With regard to the pending amalgama- by taking these risks sometimes. Also, when tion of our company with the China Traders a war is going on, there is less ordinary business Company, as that matter is still sub judice than at other times and consequently more com-
I will not say more than that 1-and I petition for it, whereas the market is restricted believe the whole of us here-feel such for war risk business and rates of premium can confidence in those who administer be maintained at a high level. Although this interests that we are prepared to support business calls for special judgment an 1 constant them in any policy, which, after due considera. watchfulness on the part of those in charge of tion they deem advisable for the furtherance of the underwriting, it can be conducted, and our general business (hear, hear). The sub- in our case we think has been conducted.stantial rise of about 50 per cent, in the value on safe and remunerative lines (applause) of China Traders stock seems to me to show However this may be, the Society's War that a close association with the Union Insur- risk business accounts for some £37,000 of the profits of the year 1904, which must be considered as a "windfall" and not as part of the Society's regular earnings. I men. tion this figure in sterling, not because the pro- fit all accrued in sterling, but because it is con venient to take out all such statistics in sterling to avoid the exchange difficulty. It is not considered proper for an insurance company to pay a larger dividend one year than it can keep up in subsequent years nor to apply under writing profits to dividend to more than a small extent. Absolute stability is the first point to be looked to and a fluctuating dividend does not convey the impression of stability. In re. commending a dividend of $40 per share, which is $5 per share more than last yaer, we think we are increasing the dividend quite as much as is desirable. After paying $10 per share as dividend, we have left enough to enable us to add $150,000 to the silver reserve fund and £20,000 to the sterling reserve fund, and to carry forward $722,588 to underwriting suspense account against outstanding liabilities on 1904 a/c. Among thess liabilities is included a sum of some $50,000 which your Board has decided to employ in the payment to the staff of a bonus of 20 per cent on their salaries. The results which have been put before you show ample testimony to the good work done by the whole staff, and I feel sure that all shareholders will approve of the Board's proposal to show their recognition of tuis work in the manner suggested (applause). The figures for the year 1905 as shown in the report are very satisfac- tory. There have been a number of losses since, but after making a full estimate for these the
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auce Society is not without attraction to a good many shareholders in the sister company. I listened with pleasure to the chairman's an- nouncement of a bonus to the staff. They have for many years, in times of peace, reaped for us a most satisfactory harvest. It is still more satisfactory for us to know that they have reaped a more satisfactory one in the troublous times of war which we have just passed through. It is not usual that people can adapt themselves quickly to now environment, but I think the figures clearly show that our staff have been able to meet the new problems which they have had to face with promptitude, ability and success. am very glad to notice that the Board has shown its appreciation of this valuable quality in the way they have done. I feel certain that the bonus you have asked for will be voted by the whole of the shareholders with extreme cordiality (hear, hear). With those few remarks I beg to second the adoption of the report and accounts (applause).
The motion was carried.
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The SECRETARY on behalf of the staff re- turned thanks for the hearty vote of thanks accorded them:
Mr. VERNON proposed the re-election of Messrs. N. A Siebs and A. G. Wood as directors.
Mr. MORRIS seconded the motion, which was agreed to.
The Tanjong Pagar Dock Company issued its last directors' report, over the signature of the Hon. W. P. Waddell, chairman, on the 5th.
In view of the coming arbitration, and the state of the market as regards the company's shares, its every item is of interest to readers It ruas as follows :-
Your directors beg to submit a statement of accounts, duly audited, for the half-year ending 30th June, 1905.
As notified to members on the 25th May last the Government gave notice to the company that it was their intention to take over the undertaking of the company from the 30th of June, 1905, and the undertaking of the com- pany became vested in the Government on that date and_bas since been managed by the Tanjong Pagar Dook Board.
The net amount of profit, which would, under ordinary circumstances be available for distribu- tion, including the sum of $206.645.52 brought forward from last account, is £891,675.02.
The directors recommend that the Government should be requested to pay over this sum to the company in accordance with the provisions of section 6 of the Tanjong Pagar Dock Ordinance 1905, and that out of this sum, when received, a dividend at the rate of 824 per share should be paid for the half-year on the subscribed capital of the company.
The company will, under the provisions of section 22 of the Tanjong Pagar Dock It was proposed by Mr. RICHARDS, seconded Ordinance 1905, be entitled to be paid from the by Mr. Jurr and agreed, that Messrs. W. H.30 h of June, 1905, until the amount awarded by Potts aud A. R. Lowe be re-appointed auditors. the Court of Arbitration to the company shall The CHAIRMAN-That is all the business, be paid or sati fled, interest at the rate of 12 per gentlemen. Thank you for your attendance. cent. per annum on the issued ordinary share Dividend warrants will be sent out to-morrow. capital of the company.