HONGKONG DAILY PRESS
FINANCE
INSURANCE COMPANIES HOLD ANNUAL
MEETINGS IN H.K.
Influence Of Disturbing Factors On International Trading Conditions
Three annual meetings of Insurance companies were held in ̈ Union Building yesterday, being those of the Union Insurance Society of Canton, Ltd., the China Fire Insurance Co., Ltd., and the British Traders Insurance Co., Ltd. The Hon. Mr. Stanley, H. Dodwell presided at all three...
20
At the Union meeting reference was made to conditions throughout the world, particularly in Spain and China, where', "disturbing factors have necessarily had their "influence on in- ternational trade." Trade in the British Empire during the gear under review was referred to as being reasonably satisfactory.
LOW CARGO RATES Cargo results show an im- proving tendency although
'។
SECONDER'S. ADDRESS Seconding the proposal,
H. J. Armstrong said:
PAYNE & CO.
Reynolds & Gibson Rubber
Liverpool, April 4. A steady tone has continued
SATURDAY, APRIL 22, 1939.
U.S. SILVER PURCHASES
-PAGE IT
SHOLLY SEE
New Programme PUBLIC AUCTION.
Proposed
WASHINGTON, April 21 (Reuter)-Mr. Eccles made an attack on the silver pro- framme by opposing the con- tinuance of foreign silver pur chases by the Treasury when testifying on the Townsend Bill before the Senate Bank- ing Committee.
The additional, premium acquired] We are able to place before you under these Agreements will in to-day a satisfactory Statement of sme measure offset the increased our affairs is due to the energy and cost of repairs and the heavy enthusiasm with which each mem- casualties the Hull market has had ber has carried out his duties. trace during recent years
With these remarks I beg to pro. throughout the week with only pose the adoption of the Report, minor oscillations from the level Revenue Accounts and Balance ruling in our last circular. Con- Sheet as presented.
sidering the magnitude of events: in Europe, we think it speaks well rates are at a low level and the
for the fundamentals of this com- practice continues of including
Mr.modity that such steadiness hast extraneous risks in Policies
prevailed. Without "doubt the less without adequate compensa.
Mr. Chairman and Gentlemen.-violent fluctuations in the East tion. It is regrettable that the We have heard with interest the have contributed to the even tenor competitive factor makes it
Chairman's survey of world
of price and if further; political, .con-
The Bill proposes the repeal of "Impossible for any one Com-
ditions during the year, and hav-crises can be avoided, we do not the entire silver purchase pro- pasly to avoid following this
ing these in view, it is apparent look for any material decline from gramme and Mr. Ecclesis of the unprofitable practice. Way Risk
that the business of the Society as present values, as Home and Con- opinion that this would result in coverage presented many difi-
disclosed by the Report for laatinental demands make their ap- a very serious situation for the culties, and
pearance, on any slight setback silver market. while
year is eminently, satisfactory. premium
He, therefore, TC- with sellers showing some reserve. commended that only foreign pur- derived under this headine We appreciate that the fall in with the prospect of increased in-chases should be abandoned until served to swell income, the un-
the value of the Chinese dollar surances. Singapore cif. quota Congress certainty of the future rave
must have affected the value of tons continue on a high basis, only course to pursue in respect of the
has determined Underwriters cause for much the Society's investments in that anxiety.
cheap offers finding attraction) currency, and the Society's earn-with U.S. buyers.
domestic silyer industry, ing power in all cases where pre- mums are paid in Chinese Na- from the March issue of the Statis-an entirely new silver programme
In the Fire field it is anticipated that Underwriting during 1938 will have been satisfactory to the tonal currency. con-majority of Companies. Premium in Shareholders, will. I
The effect of the Sino-Japanese a settlement of this unfortunate hostilities on the Society's business happening is reached, the existing was "rather curious, for In some state of uncertainty must cases the fall in exchange of the tinue. Chinese National Currericy has the effect of providing higher. Insur- able values in National Dellars, with a consequent increase in dol- lar premium.
The decrease in volume, had however been unfortunate. The efect of the exchange drop had been felt by the Society more particularly in the sterling value of its bend and debenture invest-
རྞr
2m sure.
The following figures are taken
tical Bulletin of the IR.R.C.:—
what
Mr. Eccles subsequently proposed
which would reduce Government | purchases to about ten per cent 1939: of the present and past purchases, Imports would be embargoed and the Treasury would take, at about 60 cents an ounce, only that part
the United Kingdom and Australia approve the action of the Board World Shipments:-Feb. was maintained, while the Loss ex-in acquiring the share capital 36,875 tons; Jan. 1939: 87,114 tons) perience was, if anything, somewhat of the “British Oak" and the "Bex-(adjusted): Feb, 1938; 81,049 tɔns lighter than in 1937. In America | Ver" Insurance Companies. Al- (adjusted).
cessful conclusion could
have
mercial use.
47
gradual reduction of stocks in this country.
We continue to hold a favour-
- Its' effect upon the Society's® business has been rather curious, for in some cases the fall in Exchange of the Chi- the advance in income in recent though we regret that dividend World Absorption:-Feb." 1939: of the domestic production which nese National Currency has [years slowed down somewhat, and declarations by these Companies 84:345 tons; Jan. 1939: 88,921 tons does not enter for domestic or com- had the effect of providing. in Canada there was some decrease are being postponed, we have no (adjusted); Feb... 1938: 63,152 tons higher insurable values in Na- on last year's "figure.
doubt that it is a proper course (adjusted). tional Dollars, with a conse- I am pleased to say our own a-to increase the financial strength quent increase in Dollar Pre-
World Stocks and åfloats:-Feb. come in all sections shows an in-of the Companies. We look for-1939: 443,377 tons; Jan. 1939: 458,- .mium.
crease over the preceding year and ward to satisfactory results in 001 Cons. (adjusted); Feb. 1938: The decrease in volume has how-the results to date have been future years. ments and earnings, although, in ever been unfortunate. The effect (encouraging: profit being indicated write off at once the goodwill of
The decision to 522,437 tons (adjusted): Chinese currency, there has been of the Exchange drop has been felt from practically all fields..
Ocean shipments from... „Singa- a substantial increase in the mar by the Society more particularly in
the "British Oak" indicates apore. Penang, Malacca and Fort Our "Accident and General bust-conservative policy that I feel sure Swettenham were cabled yesterday able view of this commodity given ket value of the Investments. the Sterling value of its Bond andness has been well maintained and receive
Those present were: Hon. Mr. Debenture investments and earn-the sections that have called for of Shareholders.
the commendation at 43,259 toris, which is consider a removal of political obstacles, S. H. Dodwell (Chairman); Messrs. ings, although, in Chinese Curso much attention in recent years
ably higher than the estimate of and favour purchases in qulet C. Blaker, J. Owen Hughes, K. S. rency, there has been a substantial now show a distinct improvement.
I is to be regretted that a suc-40,000 tons given a week ago which, markets. Morrison. H. V. Wilkinson, D.8.0. Increase in the market value of
not be in turn had been revised upward As regards the Revenue Accounts, reached in the negotiations to from the previous week, when a and Liverpool for week ending Movements of Rubber in London (Directors); A. W. Hughes Gene- the investments.
you will see in the Marine section adjust the Guarantee losses, but figure of 38.000 tons was named. ral Manager); and Messrs.' J. W.
that the balance of the 1037 Ac-we trust that the final outcome
·April 1, 1939:-- Alabaster. H. J. Armstrong. T. H.
IMPORTANT EVENTS
Count оп December 31 1938, will be favourable to the Society.
Consumption in the U.S.A. still Landen-Landed: 813 toris: De- G. Brayfield, C. B. Brown, J. D. Before turning to our Underwrit
namely, £39.930.10 8. has
reads encouragingly latest Danby, R. A. Dastur, Gibson Fah- ing. I wish to refer to some 1m-transferred to the credit of the tion that the Acciderit and Gene-45,000 to
been 'It is a matter or congratula.
esti-livered: 1.259 tons; Stock: 46,770 mates for March varying from tons: "Same time last year: 50.389 nestock. A. R. Fullerton, Leigh |portant events that occurred in Underwriting Suspetise
49,000 tons, for April tons. Garner, H. S. Lee, W. R. Mansfield, our affairs during the year. The This amount will not be sufficient place of the Tosses which
Account ral Business shows a profit in 43/44,000 tons with May forecasted K. C. Mark, L. A. Osmund, J. Petrie, Arst is the purchase by the Society to satisfy third and subsequent been incurred on this account for building up reserves in that coun- tons; Same time last year: 26.199 Liverback:-Landed: 38 tons: De- at 48,000 cons. The question · öf
livered: 722 tons; Stock: 25,039 L. P. Ralph, V. R. V. Ribeiro. M. A. of the Share Capital of The British years claims, but the Underwriting some years.
Oak Insurance Company Limited. Suspense Account has a balance pleased to learn that premium In- by the chairman of one
Furthermore, we are try was again brought to the fore The primary object of this pur-sufficient to meet additional claims come in all sections of the So-leading tyre companies who point- of the chase was to further extend, the which may arise,
New York:-This market has business of our Group in the Home While it is difficult to forecast an increase over the
clety's business during 1938 showed out that although stocks and been very much under the in- and Dominion fields. This
proceeding afloats represented about 5 months' fluence of Wall Street, which seems particularly desirable as we have count, the position
was the result of the 1938 Marine Ac-year that the results to date are supply, this would prove inadequate more disposed to reflect European The Chairman said:"Gentle in the past been handicapped tober 31 was a balance in hand of at Decem-
encouraging.
in the event of hostilities breaking events than the stock markets men.--At cur last Meeting you some extent by the misapprehen £482.791.14.0. representing 48.85%
I should like to endorse most out and shipments being interfer-nearer to the seat of events. informed that Mr. M.T.sion that the Society, having the of the relative premium, and this to the work done by the Society's
heartily the Chairman's referenceed with from time to time. --
On the whole, however, the un- Johnson had resigned his seat on word "Canton" incorporated in its can be regarded as satisfactory.
A decrease of 1,130 tons, as dertone has been quite steady your Board and was proceeding on Title is adversely affected by the It should be mentioned here that Stan and Agents throughout the shown below, in the UK. stocks for with the market devoid of any Home leave. Later in the year, political happenings in the Far the provision for
world and to extend our Contributory Information was received that Mr. East.
Bonus which has heretofore ap-
to the General Manager, Branch a decrease of 179 'toris in the pre-easing in quotations we advocate Johnson would remain at Home. That apprehension on this ac-peared in the Profit and Loss Ac-
(Continued on Back Page), vious week is evidence of the conservative purchases. Mr. Johnson has been one of count is entirely unwarranted has count has on this occasion been your Directors for the past three been established by the State-dealt with in. the Marine Revenue was Chairman of the ments made from time to time Account" by deducting the estimated Board in 1935 and 1938. His ad-from this Chair to the effect that cost from the net premium. I might vice and guidance have been of the Society's business is world add that the cost is estimated at the greatest benefit to the Society wide and the major portion of its somewhat less than last year, and I would like to record the re-Investments and Income are un- gret the Directors feel that they affected by Far Eastern dificulties. will no longer have the beneft of his collaboration.
R. Souza, F. W. Stapleton and D.
V. Steavenson.
UNION INSURANCE
weré
years and
SOCIETY
Before referring to
גום
FURTHER EXPANSION
FIRE REVENUE ACCOUNT.
In the Fire Revenue Account, you will note the transfer of £70,097.- 5.7. to the Profit and Loss Account and a similar transfer is made in the sum of £11,273.16.4. from the Accident Account, The last men- timed is particularly satisfactory in that for each of the past three
While the above assurance was effective to a large degree, the ac ownquisition of a Home Company will affairs, I think it desirable to undoubtedly be very helpful in make a brief reference to world further emphasising the British conditions during the year and the character of the Society, effect they have had on our activi- ties. Nervous tension during 1937. due to the ever present fear of war, reached dangerous heights in the early part of 1938, and culminated chase the outstanding shares in In the Front and Loss Account, in September in a crisis that the Beaver Insurance Co. Ltd., the fall in interest as compared brought Europe to the brink of This Company is incorporated in with last year is due in part to the „War. Thereafter political and Canada and the Society has owned decision that the newly acquired economical insecurity increased an interest in it since 1920. It is British Oak Insurance Co. Ltd., and capital that should have been a small but successful Company should declare ng dividend this used productively was turned over and, with the larger measure of year. The 'British Oak" earned in- to the sterile business of produc-control it will now receive. from terest as in previous years but it ing weapons of destruction
our Canadian organization and is considered advisable to conserve the support that we can render it its funds for the time being. For a In other fields, there is every justi- laimilar
reason the Beaver In-
A further step in the Society's years this Account has suffered a expansion was the decision to pur-loss.
DISTURBING FACTORS
•
Wars in Spain, and Ching con-acation for the hope that insurance Co. Ltd, will declare no tinued throughout the year with course of time it will develop into dividend for this year. The normal out cessation," and although the a very valuable adjunct to our interest will undoubtedly be earned, frat mentioned has now terminat business. ed, the latter, continues with in-
so the non-receipt of a dividend by An adjustment on the other side the Society in each case, is purely creasing destruction. These dis- of the ledger is the decision to put an Accounting matter. The Society's turbing factors have necessarily The Far Eastern Insurance Co. interest was also adversely affected had their influence on International Ltd., into Voluntary Liquidation. by the depreciation in the Sterling trade and it is rather remarkable This Company, a subsidiary of The value of the currency of China. that the detrimental effects have Yangtaze Insurance Association. not been greater than le apparent has never been really active, and derwriting Buspense Account is
In the Balance Sheet, the Un at the moment.
its continuation was the 'cause of Cown by £238,365.13.0. This is "Trade in the British Empire unnecessary Jabour and expense. Largely due to payments in respect during the year was reasonably In my remarks last year I re- of the Guarantee business to which satisfactory. In the early months ferred to Claims paid in connec, I have already made reference. there was a falling off that caused tion with our Guarantee business, While the Society has been making considerable anxiety, but a steadier and stated that negotiations for a gross payments in respect of this condition developed and prevailed readjustment of the matter were business, certain reinsurance and until the year closed. In America in progress. Unfortunately, it has other recoveries have yet to be there were welcome signs of re-j not beer possible to reach an effected. covery towards the end of the year agreement and the points at issue and it is sincerely to be hoped that will have to be referred to the these will develop sufficiently to Courts for a decision.
There is an increase in the Re re-establish the confidence of the I now turn to the Underwriting, insurance Fund, but the Exchange investing public, for until this be- The normal difficulties, of this and Investment Fluctuation. Ab- curs it is difficult to feel assured business were accentuated during count is reduced due to the writing that the Trade revival has a really 1938 by the need for increased care down of Subsidiary Companies, In-1 solid foundation. The working of in selection due to the hards In- cluding the writing off of the sum the Anglo-American and other separable from an involved m-paid for the Goodwill of the "Bri- trade Agreements should provide [ternational politica; altuation.. tish Oak Depreciation of invest a freer interchange of goods with In the Marine market the London (ments, and the drop in the value benefit to many parts of the world. Hull Agreement of 1937 which pro- of the Chinese Dollar have also
Ivced for an increase in rates was adversely affected the Account/" THE FAB EAST
[supplemented in 1938 by a further I cannot close without reference In the Far East, commercial ac- Agreement under which risks that to the valuable service the Society. tivity has been handicapped by the had brought bad results in the has received from Its Staff and Sino-Japanese hostilities and, until past would pay a further increase. Agents throughout the world. That
REINSURANCE FUND
tons.
THE Undersigned have received
Instructions.
to sell by
PUBLIC AUCTION
WEDNESDAY, the 26th APRIL, 1939
Commencing at 10.30 a.m.
At No. 2, Havelock Terrace, Kowloon Dock.
A QUANTITY OF VALUABLE HOUSEHOLD FURNITURE
also
One Cottage Plano by “Moutrie”.
and
44
One Electric Refrigerator
"Frigidaire""
On VIEW from TUESDAY, ...
the 25th APRIL, 1939
Terms: Cash on Delivery.
LAMMERT BROS..
AUCTIONEERS.
People Who Matter"
PEOPLE WHO
MATTER
to
the advertiser are
the people who
can afford to buy
his goods. MostTM
of these people
buy and read the
thanks the week just concluded, following special features. On any slightest Hongkong Daily Press.
.'
THORNYCROFT
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