1936-05-23 — Page 11

SATURDAY, MAY 23, 1936.

HONG KONG DAILY PRESS,

CHINA FIRE

INSURANCE

DISAGREEMENT WITH POLICY

thoroughly sound polley and is the best interests of not on y the Society but all policy holders.

moro

especially 35 apparent.y there are no signs of the present cut throat competit.on decreasing.

HOPES FOR FUTURE The present dividend is approxt- mately the amount of Interest and dividends received from the So ciety's investments and as the pre- sent rate of Interest on first class Investments. Such *s those In which the Society's funds are in- Tested. is at the present time ex- tremely low one has every confi- dence that no further reduction need be anticipated and that with rise in yield rates a slight in- rrease may be anticipated in the future:

The Satiety ts. however, to ge congratulated on the fae; that all its inv: stments are of the highest class possible and I am sure that this policy will be continued by our Directors

One must not so I am told, mention the word "depression," ,but I think the Sorley is to be heartily congratulated on the re- sults obtained rom its maline and Are accounts, despite the "heavy calls on the former to which you. Sir. have drawn, attention in your speech, and the fact that the to- taj underwriting income for 1935 exceeded that for 1934 by the sum of £8,713, is a maiter ai con- gratulation for all concerned and shows the care which is given to shareholders interests by

your Board and Management.

It is to be regretted that the Ac- cident and General .Account has resulted in a loss, but with Motor Car accidents at their pre-" sent day level one can quite realise the extreme difficulty which is found in obtaining satisfactory re- sults from this class of insurance business. I am perfectly satisfied. however, that your Board and the General Manager wih leave no stone unturned to bring the Ae- cident Accoun into as satisfactory 2 position as that of the Society's Marine and Fire Accounts.

INTERIM DIVIDEND

1п

"Your suggestion. Sir, that the Board are contemplating the pay- ment of an interim dividend the future, will I am sure be wel- comed by all shareholders. I am sure that so long, as the interim dividend is paid on a conservative bass it is of the greatest ad- Lantage and help to shareholders thut this should be done, and add: to the standing and popularity without increasing any risk to shareholders or policy holders, of the Society's shares.

(Continned from Page 7)

refer to the dividend which the report has dlaciosed has been re- cuced to the extent of 25% on which I address you in an un- happy state of mind, not only on my own behalf, but in the in- terests of that body composed of numerous ex-residents of the East now living in retirement whose important source of income is their dividend from Unions. **

I will not ralse a contentious point, nor disture the harmony which has always characterised the annual meetings of the So- ciery, by proposing an amend-, ment, but will conten; myself by usking for a declaration of policy that, if the accounts for the pre- sent year show as good a recult as those now submitted, you will re- vert to the dividend of 40/- per share paid for many years past.", and which a large body of inves- tors have justifiably grown to rely upon. Or. in the alternative that the dividend be increased in easy stages.

REDUCED DIVIDEND

I donfess to a feeling of dismay some wecks ago on reading the announcement of a divident

only

30/- and the intervening period prior to the receipt of the accounts rather schooled me to anticipaté a balance shtet much below the enviable standard at- tuined by the Unlon. My aht.ctpa- tions were

the incorrect fur balance sheet now before you re- veals a position stronger than the Rock of Gibraltar-it is less vui

en-

nerable, at any rate rom the air. It is with diffidence, gentlemen, that I question your recommenda-

strength of the Society has tion to pay 30/- only, but the

couraged me to disagree with your views that a cut of 10/- per share is necessary or warranted by the working, results, or by the position or the Society as revealed by the balance sheet. With specific -Funds" for each class of business

ring into colossal figures. undertaken by the Society run-

mented by additional Reserves ab- sorbing further, colossal amounts. the magnitude of which was de

ALE-

business had to be searched for.

and acceptance forced at compe- Annual Meeting Of

tive rates. The increase in the volume of business which must have seen obtained to bring about a premia income larger than tha.. of the year before is an eloquent testimony of the prodigious energy of the staff,

Shareholders

|

The annual meeting of share- holders of the China Fira In- surance Co., Ltd., was held yesterday.

Mr. M. T. Johnson, who presided,

Whatever the views of share- holders might be as to my sug-sald:- gestion for a higher dividend, I feel sure I will not be disowned by them in extending to the manage- ment of the Society our apprecia- tion of their successful work, and In this respect I support very fully the able remarks made by Mr Tinson in seconding the adoption" of the report and accounts.

CHAIRMAN'S REPLY

The variations in the figures are to a large extent brought about by fluctuations in exchange. The rate of exchange of the Hong Kong dollar on sterling on December 31, 1935, was taken at 1/3.5/8 as com- pared with 1/8 the previous year. This factor was chiefly responsible for the increase in underwriting figures and interest earnings,

Turning to the Revenue Accounts you will see that the 1934 Marine Account has been closed and a The Chairman, replying, said:--Profit of $64.590.14 carried to Pro- Mr. da Roza-I thank you for fit and Loss Account. The Marine your femarks. Your criticismi is Fund at the end of the year in- not unwelcome to your Directors cluding the additional Reserve for you have expressed what are

amounted to $928,928.38. probably the feelings of a number'i The Fire Account, has been closed of shareholders. I think you will by setting up the customary Re- admit, however, that "you are serve of 40 per cent. for unexpired viewing but one side of the plc-ibility and "reserving in full for Lure. You spoke of colossal all known outstanding losses. The funds but I would remind you that we are in a business, the main feature of which is the ac- ceptance of "colossal" liability. Furthermore.

must realise you that we are in competition in al-

Your Directors most every corner of the globe with the largest financial institu- Dividend of $12 per share and a bonus dividend of $8 per share, be- tions in existence. To be successing the same as for last year. The ful we must have financial

balance at the credit of the Profit strength. Not only niust there be and Loss Account is $1,118,306.05. the financial strength, but it must with these remarks I beg to pro- be managed according to accepted pose the adoption, of the report. standards. Your Directors are of revenue accounts and balance sheet the opinion that this requirement as presented. would not be fulfilled were they to

REPORT ADOPTED recommend a depletion of reserves for the maintenance of a 5% divi-seconded by Mr. Leigh Garnier and The adoption of the report was dend even the lesser dividend you carried unanimously. ask for would necessitate croaching upon Reserves.

Your suggestion that our De- partmenta; Reserves are beyond requirements is entirely erroneous. These Reserves cannot even be

en

MEMORIAL TO GEORGE V.

WORK BEGUN IN

"GUARD'S CHAPEL

ᅮ

London, May. 8.

"Work has begun on the mosaic altarstep in the Guards Chapel,. Wellington Barracks, as 4. me- nuorial to King George V, from the Brigade of Guards.

It is learned that, If sub-

scriptions permit, the scheme will be extended to include a new altar inlaid with mosalo to replace the present one.

Str Nevile Wilkinson. Ulster King-of-arms, who is churchward- en and seceretary of the Guards' Chapel, las designed the mosaic,

"Only one panel is being carried out for the time being." he said yesterday. "When it is finished it will be submitted to the Duke of Connaught, as senior Colonel, for his approval.”

THE KING'S APPROVAL

"If the Duke agrees to the design it will be shown to the King, as Colonel-in-consent "

A number of mosaics by Sir Nevile are already in the Chapel. and the memorial to King George

'the same decorative

Profit of $55.422.85 has been car-continues ried to Proft and Loss Account. scheme.

The Accident and General Ac- count has been similarly dealt with and the Loss of $17,601.41 carried to Profit and Loss Account.

recommend

&

The new step will be within the sanctuary and will be inlaid with glass mosaic. In this respect it will resemble the one below, at the com- union rall, which was designed by Sir Nevile as a memorial to Field-Marshal Lord Methuen,

The lowest step is still being in- laid. It is known as the Brigade Step, and will contain the badges of all the regiments of foot guards.

ST. JOHN'S. CATHEDRAL ORGAN FUND

Messrs. S. H. Dodwell and T., A. Mitchell were re-elected directors on the proposition of Mr. J. W. OS Alabaster, seconded by Mr. F. H. ISS F'arnes.

G. K. Oliver Mr. and Mrs. T.

...

LOSTIDO 'T A

20

50

$1,101

termined possibly more by a desire described as unduly conservative-c. da Cunha, seconded by Mr. A. Cathedral Ornaments Fund.... 175

On the proposition of Mr. B. M. to conserve funds than required they are merely normal.

As to A. Alves, Messrs. Lowe Bingham Cathedral Servant by the necessitles of each depart-the, "carry-over", to which you re-

and Matthews and Messrs, Linstead ment, and a premium income as fer, it is hoped to use a consider and Davis were re-appointed good as that of the previous able percentage of this in connec-auditors.. period. in a year which was ad- tion with a reduction of the un- mlitedly bad for trade. I think the

Those present were:-Messrs. M. paid share läbility. I hope you T. Johnson (chairman), C. Blaker, Directors might have been content will agree that this will be bene-S. H. Dodwell, T. A. Mitchell and

ficla; to shareholders,

"carry forward a relatively smaller sum than that revealed by the accounts of £685.824 which in efect represents an available und for dividends for over three years at the present rate of distribuition.

BIG FIGURES

With regard to the proposal tu do away gradually with the pre- sent uncalled shure lablity, this must. I think. meet with approval. The fact that shares have a large uncalled liabilty always detracts to a certain extent from their popularity as an investment. and 1 congratulate the Board on their decision fh this respect, though I be pardoned by describing the hope the change will be a gradual

extra cost as a more bagatelle. one so as not to embarrass those shareholders who may be living on their investments.

at-

Before formally seconding the adoption of the Report "and Ac- counts I should like to express to the Directors. Mr. Hughes our General Manager, and to all the sta of this Society. our very hearty thanks for the very ab.e manner in which they have tended to our interests throughout the year which must have been us difficult a year as any year in tht Society's history. and I can only express the hope that the inter- Aational situation will improve during the current year and the the various difficulties with which you all have been faced for the last few years will decrease in the future.

With these remarks. gentlemen. I beg to second the adoption of report and accounts now before this meeting.

MR. C. A. DA ROZA

$

DIVIDEND FUND

One other point to which you draw attention is the Equalization of Dividend Fund, that you con- sider might have been called upon

០៨

K. 8. Morrison (directors), A, W Hughes (general manager), and J. W. Alabaster, J. Bentley, Leigh Garner, W. R. Mansfield, B. M, C. da Cunha. F. H. Farnes and A. A. Alves shareholders).

BRITISH TRADERS

The annual

meeting of "the British Traders Insurance Co., Ltd. was also held. Mr. Johnson said: The 1934 Marine Account bas

augment this year's dividend. I realise that a dip into the With greater justification I sug- "carry forward to maintain the gest that this Fund could have nld rate of 40/- would have cost been drawn upon during any of the an extra £67.500; 35 would de- bast three years when augmenta- nlete the "carry forward" by £33.- tion of Interest earning was neces- 750. These are admittedly big sary to meet dividend require- £gures but., gentlemen, in the at-menia. It is the opinion of your mosphere of millions. perhaps I Direcicrs however. that the pur- been closed and the Profit of pose of the Fund is to meet un-£8,4103.4 carried to Profit and anticipated emergencies, and not Loss Account, The Marine Fund to be used to postpone a dividend

at the end of the year including reduction for a year or two.

the additional Reserve amounted to Although you congratulate

£120,954.4.5, upon maintaining our substantial

The Fire Account Fas been closed income, you will have

by setting up a Reserve of 40 per noticed from my

cent. for unexpired liability and previous remarks that

reserving in full for all known out- this income probably carries a greater liability than at any pre-of £8.518.11.11 which has been standing losses, and leaves a Pront vlous time. also that profits from carried to Profit and Loss Account. Insurance business to-day are considerably less than in former count has also been dealt with in The Accident and General Ac-

al one and the present is not a years. This experience is a genera similar manner to the Fire AC- count and resulted in a loss of time 10 weaken drawing upon our resources. I am ried to Profit and Loss Account.

our siructure by £2,291,16.10 which has been car-

carly return to the old dividend dividend of seven shillings per Borry I cannot promise you an

*Your Directors recommend basis, but I can give you and all share. With these remarks I beg ahareholders ал assurance that to propose the adoption of the re- just so soon as your Directors see port, revenue accounts and balance any justification for dividend ir sheet as presented. crease, even though in a smaller amount than 5/- per share they will be very happy to recommend animously. that it be paid,

As in the case of other Institu- tlons. a variety of causes have contributed to a shrinkage in the income earned, on the Society's funds but I think, gentlemen, you would not have been accused of azadigality had you continued the slight deviation from your trad tional policy of Anding the So- clety's dividend entirely out of in- come from Investments, at least to the extent of 5/- per share. I compliment you on your ultra cau- tion, and with all respect to the gentleman who was your Chair- man at the centenary meeting oʻ the Society, I would suggest that the cloth is of sufficient dimer- stons to perimit of a better fitting coat than what we are asked to accept. At the Chamber of Com- merce meeting, we were told there was no depression; at any rate if was not conducive to a happy mind to mention that state of affairs: I did not quite agree with the speaker on that occasions nar. unhappily, with you now. gentie- mén, in measuring it at 10/- perj share.

And, finally, gentlemen, we have a Fund of £69.500 for the equall- sation of dividends which might have been put to the use it was created for.

APPRECIATION

OTHER BUSINESS

Mr. W. E, Mansfield seconded the report which was adopted un-

Mr. J. W. Alabaster proposed and The report and accounts were Mr. V. R. V. Ribeiro seconded that unanimously, adopted...

Messrs. S. H. Dodwell and TA. Mitchell be re-elected to the Board Mr. H. J. Armstrong proposed of Directors. This was agreed to. and Mr. J. D. Danby seconded that On the proposition of Mr. J. Messrs. 8. H. Dodwell and T. A. Bentley, seconded by Mr. B. M. C, Mitchell be reappothted directors. da Cunha, Messrs. Lowe, Bingham The proposal was agreed to unani- and Matthews and Messrs. Linstead mously.

and Davis were re-appointed

On the proposal of Mr. A auditors. Stevenson, seconded by Mr. L. G. Those present were:-Messrs. M. 8, Dowdell, Messrs. Lowe, Bingham T. Johnson (chairman). C. Blaker. and Matthews and Mesars. Lin. H. Dodwell, T. A. Mitchell and stead and Davis were re-appointed. B. Morrison (directors), A. W. Hughes (general manager) and 3. W. Alabaster. J. Bentley, B. M. C Messra. M. T. Johnson (Chatrda Cunha, Leigh Garner, W. R. man), C. Blaker, S. H. Dodwell Mansfield and V. R. V. Ribeiro T. A. Mitchell and K. B. Morrison (shareholders). (Directors), A. W. Hughes (Gener-

Mr. C. A. da Roza sa'd:-Mr Chairman. I am exercising the privilege of addressing you given. to us once annually, but I would like to say at the outset that I have no question, to ask on the statements circulated which from their clarity should satisfy the So much gentlemen, for this dis- most exigent shareholder seeking cordant note in this meeting, but information on his investment, or I would not like to leave my con- the critical polley holder in gaug- tribution to these proceedings auditors" ing the credit responsibility of the without" expressing my apprecia 'institution with which he deals. tion of the efficient management My remarks touch on a question of of the "Union" by the Directors, polley on which, after an examina- General Manager and staff in a tion of the accounts, I disagree year full of difficulty. I feel cer- with you, I do not expect you tain, reference to the efficient al Manager), JW. Alabaster, BJ. Mansfield, E. Mason, L. P. Ralph, Mr. Chairman and gentlemen of management of the Union all over Armstrong. C. C. Black, W. E. V. R. V. Ribeiro, C. A. da Roza, the Board, to change your cous- the world could not be made more Choy, B. M. C. da Cunha. J. D. F. Schreiber, M. A. A. Stapleton, dered view, but the wealth of the convincingly than quoting the Danby, R. A. Dastur. L. G. A. Dod- Allan Stevenson. Sum Pak Ming. Company gives ample room for a figure of premia income of well. John Fleming, Leigh Garner, R. Bummers, George G. N. Tinson, bona fide difference of opinion. I £1,100,000 in a year in which J. H. A. Hance, H. 8. Lee, W. R. J. F. Wright, Jr. (Shareholders).

Those present were:-

1

BLACK&WHITE

MATURITY WITH PURITY

717

11

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