STIRRING
TRIBUTE
HONG KONG DAILY PRESS, SATURDAY, MAY 26, 1934.
TO
“AT ANNUAL MEETING OF UNION INSURANCE
SOCIETY
MR. PAUL
Hon. Mr. Gordon Mackie's Exhaustive
Of Past Year's Work
Review Of Past
The annual general meeting of the Union Insurance Society of Canton Limited, was held yesterday at the registered offices of the Company, when the Chairman of the Board of Directors, the Hon. Mr. C. G. S. Mackie, in his speech made references to the difficult times the Society passed through owing to exchange fluctuations and abnormal conditions in World affairs, both economically and politically.
The following Directors were present, Hon. Mr. J. Owen Hughes, Mr. G. Miskin, Mr. K. S. Merrison, and Mr. D. O. Russell and Mr. A. W. Hughes, (General Manager).
Shareholders present were:Messrs, J; W. Alabaster; G. S. Archbutt, J. D. Butcher, N. V... A. Croucher, B. M. C. da Cunha, J, D. Danby, R. A. Dastur, H. B. L Dowbiggin, O.BE., John Fleming. H. C. Gray, J. HI, B. Hance, J. Scott Harstan, Ho Kom Tong. OBE, C. C. Kalght, J. H. Little. Lo Cheung Shiu, J. L. McPherson, G. C. Moxon, J. Ormiston, V. R. V. Ribeiro, R. Sander, W. F. Simmons, M. A. R. Souza, F. W. Stapleton, A. Stefenson, R. L. Stewart. H. Sum- mets, M. H, Turner, H. C. B. Way,
Mr. Scott Harston's Speech
The Hon. Mr. C. G. Mackie, in his speech said.-Gentlemen, It is a matter of great regret that one of your Directors Mr. J. P. War- ren' is not with us to-day. Quite recently Mr. Warren was stricken with a serious illness and it was necessary for him to proceed Home for medical care. "
I am sure you will join me in an expression of sympathy with Mr. Warren and in the hope that we shall hear soon of his per- manent recovery.
I will now place before you a shart review of the "progress made by your Society during 1933, and of certain important conditions re- lative thereto.
Fi
In the latter part of the year your Directors were advised of the desire of the General Manager, Mr. Paul Lauder, to be relieved from his duties early in 1934.
Mr. Lauder brought to the at- tention of the Board the fact that he came to the East in 1900 and that the intervening years had taken their toll upon his health. Having in mind the great strain Mr. Lauder had been under in the difficult years of his general mana- gership of the Society, the Direc- tors, with great reluctance, agreed to accept Mr. Lauder's resignation as from the 24th February 1934.
These are the bare facts of the position, but it would not be right -ot me to allow such an occasion to pass without conveying briefly to you an impression of the value of Mr. Lauder's work to the Bo- ciety during his 34 years' service.
state that steps taken to im- prove the position have brought a change for the better in each Instance..
The Fire Insurance Fund at the end of the year including addi- tional Reserve amounts to $7.52% of our Premium Income as com- pared with 57.01% in the previous
year...
V.
LAUDER
a continuance of satisfactory An- pual Statements.
With these remarks I beg to pro- pose the adoption of the Report, Revenue Accounts "and" Balance Sheet as presanted.
SECONDER'S SPEECH
Accident and General business Mr. J. Scott Haraton, in second- again shows a satisfactory result. tng the adoption of the Report and The Premium Income declined by | Accounts said:-
.
some £12,000, but this class of bust- Mr. Chairman and Gentlemen," ness is subject not only to intense, it is with great pleasure that I competitive conditions but also to rise to second the proposal made fluctuations caused by variations by the Chairman that the Report. in the "demand for cover for ex- Revenue Account and Balance traneous perils such as War Risk Sheet of the Society as presented Earthquake Shock etc.
to this Meeting be adopted. ... Claims paid and outstanding We are all aware of the econo- were 43.51% of the premium as rele dimculties which business against 45.34% the previous year
concerns of every type have had with the result that the profit on to face during the past few years. the account, carried to Profit and and consequently fully appreciate Loss, after providing for all known that the effect of such dimculties outstanding losses and setting up must necessarily be reflected in the necessary reserves, was £33,577.14.0. | results shown by the operations of as against £23,178.18.11. the prey-such a business as that of an In- ious year.
surance Company, particularly so
in the case of one which includes In its undertaking, as does this So-
The Accident and General Fund including additional Reserve the end of the year was 62,75%ciety, that of Marine Insurance. If of the Premium Income as against 61.49% the previous year.
Favourable Exchange "
we were not so aware, the various matters mentioned in your Speech Mr. Chairman-upon which I den
At our
reference, lost through perils of the sea. In last meeting
In my analysis of each Accountsire to take this opportunity of addition there were a number of
congratulating you-should be I have made no mention of expen- was made to the pending retire-
smaller steamers lost, including
ses. This omission is made with sufficient to bring those difficulties ment of Mr. C. M. G., Burnie.
the "Saxliby", abandoned in the Atlantic. "Marsland" and "Fern-intent, as the incident of Exchange home to our minds.",
In the circumstances which you moor" wrecked at Newfoundland, in this connection was unusually and the "Haleric" wrecked at Pa-favourable to the Society during Sir, have so clearly stated it must be very gratifying to the Bo- 1933. Our total expenses were £395,897.1.8
compared with clety's Shareholders as it certain- as
Mr. Burnie has since retired, and has been succeeded by Mr. G. G Franklin, who has had 'many years experience as Branch Manager at Singapore and elsewhere.
Mr. E. H. Hutchison the Branch Manager of our allared company, the Yangtsze Insurance Associa- lon, at Seattle, also retired during the year, Mr. Hutchison was with the "Yangtsze" for over 30 years, and his services during that period are very much appreciated.
Z
ternoster Point.
£428 033.1.1. in
1932, While
the
I have set out this, rather tox- midable list as I feel that the re- cognized short memory of the put- steps we have taken to economize have shown very helpful results, llc, added to lack of prominence
It will be obvious to you that our given to such matters inclines a number of people to the, thought annual expense could not show a that present day inventive genius reduction of approximately £32- has practically eliminated serious000 when expressed in sterling. losses at sea; and that Marine In- had not Exchange an important surance must be an extremely pro- bearing on the result. The figure table venture for those engaged will, however, give you some indi- cation of the effect that Exchange has on a world wide business" dur- ing abnormal financial times.
In the Profit and Loss Account the decrease in you will notice "Interest and Dividends earned" when compared with last year. The decrease is due to the greatly re- duced earning power of money in high class securities plus the effect
Commodity Value Low. reviewing events pertinent to the business of Insurance during the past year I am confronted within it. many factors.
their own
1!
H
Ly Is to myself to find that our
Society has stood the strain so well, not only in its Underwriting. but also in the matter of its in-
vestments.
This sad but very impressive list
of ocean casualties which you have
not ill dealt with in your Speech server as a reminder, perhaps timed, that to obtain profits from Marine Insurance to-day is a far from easy task, and" I am sure that all shareholders will join me
in expressing not only gratifica tion at. but also appreciation of the skill in that relation display- ed by our General Manager, our London underwriter, and your var
If you will endeavour to vis World affairs, economically anasalize the vast sum of money that politically, were in an abnormal Underwriters have had to contri- condition. and the difficulties of bute in paying for the above losses, controlling an international busi- and, add to that, contributions for largely by the many accidents that do not ness, influenced very
lous Branch Managers. such conditions, in no way dimin- involve total loss, I think you will
That the Society has been en- shed when compared with pre- realize that Underwriting to be ceding years. Exchange fluctua-carried to a profitable conclusion
wide, and insurable to-day requires a very high de- of Exchange in expressing foreignabled, by means of that skil to tions were values were seriously affected gree of skill. Even under favour- Curreneles la Sterling. These are carry again a substantial amount which practically to its Profit and Loss. Account is thereby. Furthermore, commodity able circumstances the margin of conditions to values remained at a low level in profit is so small that one can only every investuter portfolio, that in- indeed satisfactory. The improve- currencies view with alarm the present includes foreign holdings, is-subject ment in this year's Fire Account terms of which further affected adversely sistent demands for wider policy to to-day. You, are aware that it is also a matter for congratula- the amount of insurance business protection and reduction in rates. has been the Society's practice to tion and the assurance we have In the Fire and Accident fields pay the major proportion of its received regarding the successful "available.
In the Marine Deld Hull values. the decrease in insurable values Annual "Dividend from Interest outcome of the adjustments made I think, decrease to a prevalled also, and this decrease Earnings. This year such earnings in the Fire Underwriting after the did not, large extent as compared with the spurred Insurance Companies the fall short of the required amount 1932 experience would seem to his- previous year in terms of their world over to greater competitive by almost 267,000. Your Directify the hope that future Under- market price, but the necessity for activity: with resultant increase in tors realize the importance of this writing will continue to produce economy that all owners were expense of operation and decease disparity but consider that it is good results.
To anyone conversant with cur- them to find the in income.
in the interests of the Shareholders Mr. Lauder first came to the Far ünder, forced
Fire losses in the United King- at this time to maintain the rent financial affairs it should not East for the "China Traders", and most economical means of obtain-
year were somewhat dividend. You will appreciate how be surprising that the Bociety's served with that Company until ing insurance protection. In many dom last 1906, when the Company became cases, I fear, the amount of such greater than in the previous year.ever, that, falling an improvement Board of Directors have deemed it affiliated with the Society. There protection was not all that prudent In the United States and Canada in Interest Earnings.. a continu-prudent to intimate that the fu- under normal circum- losses have shown a welcome de-ance of this policy must depend ture maintenance of the present after he passed through the vari- owners
eline, and, although there was a largely upon satisfactory Under-rate of the Society's dividends must ous ranks of the Service, until instances would desire. 1919 he was appointed to the head It is pleasing however, to be able fall in the amount of Premium writing results. office staff. The very able manner to report some Improvement in the witten, the decrease in losses was
towards comparatively greater.. in which he carried out the duties volume of hull business
were re the end of the year as after a there assigned to him cognized by the Board, and upon lengthy period of idleness, a num the retirement of the General ber of vessels were again put into Manager in 1924, Mr. Lauder was commission. appointed to fill the position.
to some extent
ts more
J
Prospects Bright
be dependent upon improved In- terest Earnings and a. continua- tion of profitable Underwriting. that the en-
You will readily appreciate that Throughout these remarks II trust, however, in the face of falling income and have been under the necessity of couraging reports received from a the necessity for meeting competi- referring constantly to such de-number of the Society's Branches tive rates, a continuation of pressing subjects as reductions in (referred to by the Chairman) re- Early in the year the London favourable results
than values, income and rates, to say garding future economic conditions their respective areas may The political and economic dif- Hull underwriting, market was dis ever dependent on a satisfactory nothing of adverse Exchange con- in
ditions and so forth. There is prove to be well founded, and that ficulties that have prevailed since organized by the abandonment of loss experience.
In your consideration of our however, another side to the pic the termination of the Society's that year are very well known to the stabilizing "respect the lead"
current financial year will show you, and you are aware also that Agreement, and a serious reduction Accounts I am sure you will have ture. insurance companies in common in insured values and rates re- found much that gives cause for
It is pleasing to be able to in- an Improvement over 1933, parti- with commercial institutions of all sulted The Agreement difficulties satisfaction.
form you that Reports received cularly in regard to Interest Earn- The total net Underwriting In- from a number of our Branches ings. classes experienced, during that were overcome
Mr. Tant Lauder time, possibly the most dimcult later in the year, and a modified come from all Departments was during the last month or six weeks, period of operation in their his form of agreement reached; the £1,611,398, 17&. 10d. which although refer in encouraging terms to the "I now wish to make zeference a whole then settled 81% less than fast year is as sa-economic outlook for the frame to the retirement from the So- tory. Meeting and overcoming the market as dimculties that arose called for ex- down to conditions alightly more tisfactory as present day condi-diate future in the respective Ter-ciety's service of its late General
tions permit. ceptional qualities of professional stable.
ritories. The reference in each Manager Mr. Paul Lauder. The comparatively sparse move" In the Marine Account. skill and courage, and I have no
the case is, of course, to local condi You, Mr. Chairman, have already hesitation in saying that the sound ment of cargo and its low vaine amount carried to Profit and Loss tions but, as the number of cen- referred in enlogistic-but, in my condition of the Society to-day is were responsible for. Increased on the 1932 Account is 256.684 tres from which these cheeringview, by no means too eulogistic— an outstanding testimony to the competition in the matter of its 14s. 4d. or 6.27% of the premium Reports arise is quite high. It is terme, to the value of Mr. Laud- even against £71,474, 88. 2d. or 7.79% not outside the bounds of reason er's services during the lengthy manner in which Mr. Lauder met Insurance, and rates lower these requirements. I am sure you than those current in 1932 had to last year,
to hope that the localized condi-period of his association with the will join with your Directors in anbe met. The loss experience of the Claims paid on account of 1933 tion to which each refers will grow Society, and I would fain add my expression of deep appreciation for market during 1833 does not give were £216,7063.0, or 27.41% of the to the point where it over own tribute to that which you the valuable service rendered by great encouragement to the hope year's premium against £289,815, nows and becomes International bare so deftly paid to the Mr. Lauder to the Society, and in for ultimate profit, but present 176. or 32.09% for 1932 This is
Ten years ago almost to the very. in scope. wishing him many years of happy Indications are that the experience satisfactory for frat year settle- I may say this is the first time day-to be precise on the 18th May retirement. #2
of the Society should not provements.
for a number of years that we have 1924-I had the pleasure" (in sec After careful deliberation your unfavourable when the ficial The Fire Department profit car-noted in even a small percentage onding the resolution for the adop- Bcard appointed Mr. A. W. Hughes figures are "available.
ried to Profit and Loss Account of Reports encouragement such as tion of the Society's Report and to succeed Mr. Lauder.
That accidents at sea still oc- after providing for all known out-is indicated this year.
Account as then presented) of ad- cur is evidenced by the total losses standing losses and setting up In concluding these remarks I dressing Bhareholders upon the that took place during the past necessary reserves, amounts to desire to refer as in previous years subject of the retirement of Mr. year. Among these were the £51,430.1.1. or 8.45% as compared to the benent that accrues to the C. Montague Ede who had alled 42,512.tons, with £5,181.1.1, or 83% the prey Society through the endeavours of the position of General Manager
9,343 tons: lous year.
Its Staff being supported by Share- for 2 périod of approximately 8,517 tons. Claims paid and outstanding holders.
seventeen years, and in doing so, 8,000 tons. show a considerable decrease be- I would specially appeal to all † added a few words of welcome 6.732-tonx ing 47.03% of
the "premium" as shareholders of the Society not only to Mr. Lauder as his successor. In 6,210 tone, against 55,32% in 1932, conséquent in support the Society with their own that connection I stated that al- 5,110 tona y the account closes with a much business but also to endeavour to though I had not known Mr. 4,574 tona improved result.
Influence business in its direction Lauder so long or so intimately as - 4,273 tons. Reference was made from this 1 canno
lently emphasize Mr. Ede. I had been brought into 2,629 tons. chair last year to certain classes that Ins
sufficient contact with him to be Hogvy Losses At Sea * of our Fire, business, which had ever small it
made aware that he was a gentle
Mr. Hughes has been in the so- ciety's service for the past 14 years, prior to which he had spent 18 years in insurance Bince joining the Society Mr. Hughes ha oc- cupied the position of Branch Manager at some of our most in- portant branches, and last year made an extended inspection of the Bociety's interests in London. the United States, and Africa. It Is the opinion of your Directors that Mr. Hughes is qualified in every respect to carry out success- fully the exacting duties of Gen- eral Manager of your Society.
L'Atlantique Cities Service Petrol. Nicolas Parquet, Guildford Castle. Taronga
Bhidzłoka Mar Coldwater. Santiago. Mina: E Tricoglu. Exeter City.
All of the above and the valuable not given satisfactory resulta. Iyidual Shareholders, aids in bulld cargoes they carried were totally am pleased now to be able to ing our business and in permit.
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