1930-05-31 — Page 6

Don't dive into your Dress Shirt-

put it on!

The old fashioned "dive" into a dress shirt was bad for the shirt and worse for the temper.

The Summit Dress Shirts are cut like a coat, to put, on like a coat so much cooler and easier these hot evenings too-

Summit Dress Shirts

holes.

Stiff Fronts plain, one or two stud French pleated Semi-Stiff fronts, Stiff Cuffs. Soft Pique Fronts, Soft Cuffs to match. Soft pleated Fronts with Soft Double Cuffs. Prices range from $8.50 each. Less 10% discount for Cash,

Mackintosh's

P. & O. S. N. Co.

PASSAGES TO TSINGTAU AND WEI HAI WEI

S.S."

“ MOREA ”

Will leave HONG KONG on or about

FRIDAY, JUNE 20.

and Proceed via SHANGHAI to the above Porta.

FARES

1ST SALOON $10.

£11. 10s. Od.

2ND SALOON Tsingtau

£7.

Wei-hai-wei

£8.

Children under 12 years Halt Fare. Infants under 3 years Free,

Early application is requested.

DAMP

Time juggles Damp Houser

with?

Trade Mark

PUDLOTM

BRAND

CEMENT WATERPROOFER

TEMPORARY REMEDIES for dampness are never cheap. In a few years, they cost more than a really permanent and entirely satisfactory treatment with Portland Cement and

PUDLO Brand Waterproofer.

A booklet, in English or Chinese, describing the uses of 'PUDLO' will be gladly sent on request, by the

nd SOUTH CHINA.

THE HONG KONG DAILY PRESS. SATURDAY, MAY 31, 1930.

DODWELL & CO., LTD.

CANTON.

HONG KONG.

FOOCHOW.

INSURANCE BUSINESS AFFECTED BY securities, railroad bonds, a limited thereby. It is, however, rather to

GENERAL TRADE SLUMP.

COMPREHENSIVE REVIEW OF LOCAL AND WORLD-WIDE CONDITIONS

BY CHAIRMAN OF UNION INSURANCE,

PROFITS BADLY HIT BY EXCHANGE; COMPETITION AND PREMIA-CUTTING.

A comprehensive review of local and world-wide conditions in the insurance business was embodied in the speech of the Hon. Mr. J. Owen Hughes, who presided at the annual meeting of the Union Insurance Society of Canton, held yesterday.

The Company, it was indicated, was involved over the loss of the Hamburg-America steamer Hochst which was wrecked off the Island of Minniecoy in the Indian Ocean. The fire which occurred last year on the great German liper Europa also involved the Company,

41

The heavy drop in exchange, accompanied by its attendant loss, was also, commented on from the chair.

Mr. A. H. Ferguson, who seconded the report and accounts, deplored the surfeit of ill- considered competition 'in some branches of insurance, which had reduced premia to a point hardly commensurate with the risks involved.

FULL REPORT OF YESTERDAY'S ANNUAL MEETING.

Supporting the Hon. Mr. J. the Chairman's speech last year, Owen Hughes (Chairman), were the Insurance being an essential elu- following:-Mr. J. K. Bousfeld, ment in almost every mercantile the Hon. Mr. C. G. S. Mackie, Mr.transaction, it is therefore a mat J. A. Plummer, Mr. D. O. Russell, ter of public interest that a besis Mr. J. P. Warren (Directors), Mr. of rates should be arrived at which Paul Lander (General Manager), will enable insurance business to be and the following shareholders:- cönducted on lines satisfactory to Messrs. J. W. Alabaster, A. E. S. all concerned." Although regular Alves, G. S. Archbutt, J. D. But-liners and the very large steamers eler, B. M. C. da Cunha, N. V. A.

ran free during the year from total Croucher, H. B. L. Dowbiggin, L. loss there was the usual crop of G. S. Dodwell, R. A. Dastur, F. serious accidents. An unfortunate M. Ellis, John Fleming, A. H. casualty in which the Society" was Ferguson, H. C. Grey, W. F. involved was the loss of the Ham- Gardner, A. D. Humphreys, Hoburg American steamer Hoebet. Kom Tong, O.B.E., J. H. Little, wrecked off the Island of Minnecoy M. Manuk, James Park, P. H. in the Indian Ocean. Anothe: un: Rolfe, V. R. V. Ribeiro, O. F. fortunate accident was the serious Ribeiro, L. E, N, Ryan, "C. Savard fire which occurred on the great Remedio, F. W. Stapleton, E. H. German liner Europe whilst build S. Summers, V. F. Soares, the Hon. ing. As usual, losses by fire in Mr. W, E. L. Shenton, Messrs. T. cargoes have from time to time H. R. Shaw, M. A. R. Souza, Sum occurred and underwriters have had Pak Ming, Allan Stevenson, and K. to meet heavy losses from this peril.

Stuart-Smith.

|

One of the Worst Years.

As regards fire business, the year 139 was one of the worst that companies have "experienced for

many years.

Hon. Mr. J. Owen Hughes, ad.. dressing the meeting, said:-Gentle men,-The report and accounts were issued on May and you will, therefore, have had the necessary time to examine the figures which increase in fire losses, particularly There was a serious appear in the balance sheet. I pro noticeable in the home field but by pase, therefore, to follow the usual no means confined to that field. In practice and takes there, as well as Canada, for example, when the re- the auditors' report, as read. .. sults of the business for 1929 of The working accounts for the year companies operating there are avail 1928, after paying a bonus to con-able, there is no doubt that the loss tributors of £13,334.10.10 and an experienced will compare unfavour- interim dividend of 24/- per shareably with the previous four or five amounting to £162,000, shows a years. There were some heavy fires in halance of £120.826.15.9 available Australia and the position there is recommend that this balance be Continent of Europe also produced for distribution, and your Directors still far from satisfactory. The Bome high loss ratios, notably in Holland."

dealt with ns follows:-

די

A final dividend of 16/- per share on 135,000 shares. to be paid to

In some cases climatie conditions, shareholders absorbing £105,000 and the long cold winter and dry sum that the balance remaining bệ cao-

mer, contributed to the increase in ried forward to underwriting zus-severity of loss ratios. There is pense account to close the account for the year 1928.

no doubt, however, that depressed The balance of the working ac

trading conditions have also had their effect. count for the year 1929 is £440,700.1,4 General business, under which and the Board recommends an in-hending I include motor car, ac- terim dividend of 24/- per share cident and sickness, employers' be paid to shareholders, absorbing liability and the like, continues to £162,000, and that a bonus of 20 per grow in importance and it would cent, be paid to

ecem probable that the year 1929 business on bonus terms, absorbing about £20,000, and that the remain was not altogether an unprofitable one so far as these classes of busi- der be carried forward.

contributors "of

Haphazard Underwriting.

number of debentures in high class be deplored in the period under ve public utility companies and in a view that a great deal of ill-consi few industrial undertakings. Tad | dered competition has, in -somm excellence of our securities in that branches of insurango at‹ least, re- country is borne out by the fact duced premia to a point hardly that the debacle which occurred last commensurate with the risks in year on the New York Stock Ex-volved. Nevertheless we are pleased change did not effect our position, to be given your assurance that ten- our stocks showing at end of the dencies are apparent that under- year an appreciation on their pur! | writers generally are more prone chase price and further we have not to watch the statistics of their busi a single security, in that country ness, which we trust will tend to which is not paying its interest in stop what you have termed bup- · full. The Society's investments are hazard underwriting, and enable very carefully looked after by your insurance companies to obtain, a United States Managers, Messrs. more reasonable return for their Marsh & McLennan, Inc.

.services.

It will further interest you to know that, with the exception of some email holdinga in certain securities purchased prior to the Brent War and which are valued in our books at £4,123 0.4, we have not a security on the books of the Society and/or its affiliated com panies which is not paying its in- terest in full.

-

You are all aware, gentlemen, of the many difficulties with which the business of insurance has had to be faced during the last few years, these difficulties being accentuated ly, depressed conditions of trade, I think you will agree that, in all the circumstances, the position the Society finds itself in reflects credit upon the General Manager, agöpts and staff,

Since we last met, Mr. E. W. G. de Gyulay has retired from his position of General Manager for Australia and his resignation was accepted by your Board with regret, Mr. Gyulay was first engaged by the Society in 1907 and has given de voted and efficient service. I am sure you will all join with me in wishing him a very happy retire

When we turn to the large gold investments the Society possesses, the shareholders must wish to con- vey their high appreciation and. thanks to the General Manager and those working with him, for the sound manner in which the in- vestments of the Society and its affiliated companies have been selected. (Applause.) The depre- ciation in the value of London holdings at the end of 1929 is con- siderable, but large portion of this amount will have already been recouped in the quotations ruling to-day. It is most gratifying to learn, air, that with regard to quit. investments in the United States. amounting to over one million

of pounds Sterling, the value these stocks, in spite of the de bacle in the New York Stock Ex- change last October, did not affect our position. Also that we do not own a single security in the States; that is not paying its interest in full.

Through some of its affiliated companies being capitalised in Hong Kong dollars, the Society perforce shows large silver invest ments in its balance sheet, but these.

You will observe that our interest in the 1928 working account stands at £235,469.14.8, and as our divid- end costs us £270,000, it would ap. pear from the balance sheet that our interest is £34,530, 5,4 less than the dividend payable. These figures are affected by exchange and "doment... not show the position fully... As Mr. E. Trover. Gould, the "Assist-same, companies have their funds you are aware, the Society owns ant General Manager for Austra-largely invested in gold, and this the majority of the shares in five lasia, has been appointed to the minimises the position of the low subsidiary companies, viz., the

past vacated by Mr. Gyulay sad silver values. British Traders Insurance Com-

Mr. R. C. Langker has recently pany, Limited, the China Fire In- been appointed Assistant General North China Insurance Company, surance Company, Limited, the Manager in the place of Mr. Gould. Limited, the Yangtze Insurance in their new appointments...

We all wish these gentlemen success Association, Limited, and the Farthe report and accounts, and when Eastern Insurance Company, Limit- this has been seconded, I shall be I now propose the adoption of

at the

these Comparies glad to answer to the best of my ing away more than their inability any questions you may care

to ask. (Applause.) terest in dividend (except the "British Traders," which on the

cd. None of

present time

are pay-

Seconder's Speech,

We note the resignation of Mr. E. W. G. de Cyulay, the General Manager for Australasia, who has given the Society 23 years efficient service. I feel sure all join our retirement and at the same time wo hope for Mr. Trevor-Gould the same. Chairman in wishing for his happy

success his predecessor had in that ► Seld of our operations.

In conclusion, Mr. Chairman, im 1998 account pays a small amount

formally seconding the report, and accounts, I feel sure the share- M. A. H. Ferguson: Mr. Chair-holders will concur that we are ot £376. 0.10 in excess) and in cer- man,-It gives me greit pleasure to under an obligation to our General rather less. If the full interest have been given ample time to ex- tain cases they are paying away second the report and accounts We Manager, ably supported, as he has were paid away by those Com-amine the figures and it is" most.

been, by his staff here and in all panies, the interest of the Society gratifying to learn, the satisfactory results achieved, and I have much parts of the world, for the good

mately £20,000 and I, therefore, Society itself. but of its affiliated Society continued prosperity. would be increased by approxi- financial position, not only of the pleasure in heartily wishing the estimate that at December 31, 1929, companies. We have listened with have much pleasure in seconding the the interest covered the Society's great interest to the very able report and accounts. (Applause) dividend by all but about £15,000. speech from the chair. It cannot The report and accounts were care,

In view of the uncertainty of exchange, it has been decided not to increase the dividends of the subsidiary companies,

You will realise that a large per centage of the silver, investments

holdings in our subsidiary com shown in the balance sheet at £1,524,418, 2.3 are represented by panies, "The China Fire" and "The Tangtaze" and although these com- panies' capitals are in silver, you will realise that they have consi- derable holdings in gold securities.

Commenting now upon the busi ness transacted by the Society, the result of the marine underwriting during the years 1928 and 1929, considering the times, has not been unsatisfactory although, after payment of our final dividend "for 1928, owing to the drop in exchange the amount carried to underwrit ing suspense account is less than in the preceding year. Our under- writing suspense account, however. is in a strong position to meet third year's claims as these occur."

A pleasing feature of our report is that we have been able to main-, tain our profit on the 1999 account as at December 31, 1029, as compar ed with the 1928 account at the end of the first year, the balance being £440,790:1:4, this being an increase over the previous year notwith- standing the decrease in the Sterling value of the dollar and the conse quent decrease in the Sterling equi- valent of our interest.

A Fair Profit.

and general business for the year The combined result of our fre 1999 was not unfavourable and left recessary reserves. a fair profit after setting up all the

The business of marine insurance ness are concerned.. for the year 1823 appears to have

Vagaries of Exchange. been transacted on very much the same lines as for the past few years.

Before commenting upon our own Cargo rates have, in some instances, underwriting results I would like declined, although I believe for the to make a few remarks upon the most part they have remained very position of exchange and how it much upon the same level as the affects the society and its affiliated preceding year. The hull market companies. You will realise that has been placed on a somewhat the drop in the price of silver and Sounder basis and we read that in the consequent depreciation in the éreases have beenz secured on fleets Sterling value of the dollar and where the record has not been satis-the tacl must have an effect upon factory.

the Society's figures. For example, premium received in silver cur- rency and interest on investments I think we can safely say that in silver securities translated into underwriters generally are more Sterling will produce less pounds prone to watch carefully the statis-This is reflected in the Sterling ties of their business, and this is value of the Society's silver reserve all to the good. I think there le fund of 83,000,000 which at 1s. 7 little doubt that during the last equals £243,750 as against £303,195 for years there has been a good last year when the rate of exchange world-wide and the Society is in o Our business is well spread and deal of what might be termed hap was 25. 04. The amount standing good position to reap the benefit hazard underwriting. I under- to the credit of exchange and in of any improvement in general con stand that underwriters to-day are vestment fluctuation account is ditions. I am confident that our inclined to be more careful and ask affected also, this amounting in organisation throughout the world for results before accepting "new

the

present balance sheet to is well set up and controlled and I business. "A close and acurate aye" £568,389.4.1 tem to enable the watching of ac-1.9 shown in the balance sheet for perity of the Society will respond as against. £612,819.have every confidence that the pros counts as to profit and loss is an the period ended December 31, to improved trading conditions. essential part of a good under 1929. As I have already indicated,, writing organisation and the pre the closing demand rate on London it will be of interest to share Turning now to our investments, sent slender profits make it essen- tial to give careful consideration to of the HK. & Shanghai Banking holders to know that the market these details. I can assure you that Corporation on December 31, 1928, value of the investments held by this feature of our business is well was 2s; of whilst on December 31, the Society and its affiliated cared for by head office and ita 1928, it was la. The difference companies on December 31 last between these two rates shows issued in Great Britain and com- A great deal of all-considered depreciation in the Sterling value prising British Government and competition still exists in the of 18.585 per cent. The 1928 work- other first class Sterling" securi marine market, and cargo rates ing account has been adjusted to ties amounted approximately to. durng recent years have been the exchange ruling on December £940,000. This figure shows a de- brought to a very low level. If 31, 1920, and in consequence the preciation of about £43,000 as con there wore an all-round increase in balance of the 1928 working acpared with the prices ruling on rates, do not believe there would count at the end of the second December -31, 1929. As you are be any legitimate cause for com-year after payment of an interim aware, prices of first class securities. plaint I would again repeat the dividend and bonus amounting to in the London market for various often expressed hope that the lead-175,334.10.10 is £18,190. 6.8 less reasons were low at the close of the

ད་ག་པའི་་ས་མ་ཚན་པ་ཤེས་པས་ཡུ་ག་ལ་འཛད་stngoalusha=༠aphxtua haucue hatut;", underwriters will eventually come the same period. This difference, good recovery since that date. together and arrange an agreement I-may say, is more than accounted The Society and its affiliated com- to write the business at rates which for by exchange, and had exchange panies have investments in the will at least leave a fair margin remained at not less than 2s 04 United States of America totalling of profit. As the Hon. Mr. W. E, the balance would have shown some L. Shenton, remarked in seconding appreciation.

branches.

a little over one million Sterling, these being made up of Government

I

be expected, with a trade depres-ried unanimously, sion existing all over the world, Mesars. J. A. Plummer and Mr. that insurance business should be J. P. Warren were re-elected to the immune or, be totally unaffected Board of Directors.

REPULSE BAY BUS SERVICE BATHING AT REPULSE BAY. Starting on Sunday, 1st June, 1930.

SPECIAL BUSES WILL RUN TO THE BEACH

ROAD DURING THE BATHING SEASON.

IMRAVE

LEAVE REPULSË Bay

HONGKONG HOTEL

2

BEACH BOAD

P.M.

P.M..

2.30

6.00

3.00

5.30

3.30

6.00

4.15

6.30

5.00

7.00

5,30

7.30

6.00

8,30

FARE...40 CTS. RETURN TICKET. ..75 CTS. CHILDREN...20 CTS. CHILDREN'S RETURN....35 CTS.

OTHER BUSES WILL CALL AT THE BEACH ROAD AS REQUIRED. EXTRA BUSES WILL BE RUN IF OCCASIONS REQUIRE.

HONGKONG HOTEL GARAGE (THE HONGKONG & SHANGHAI HOTELS, LTD.)

DAIRY FARM NEWS

SPECIAL WEEK-END DISPLAY

HOME GROWN

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20

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