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COMPANY MEETINGS.
THE UNION INSURANCE SOCIETY OF CANTON LD.
The thirty-sixth ordinary meeting of share. holders in the Union Insurance Society of Canton, Ld., was held at the offices of the Society, No. 2, Queen's Buildings, on the 21st instant. Mr. E. Ormiston presided, and there
also present Messrs. were
W. Helms, E. G. Barrett. J. W. C. Bonnar, A. Forbes, (Directors), C. Montague Ede. (Secretary), C. H. Rose. J. A. Jupp, A. B. Rouse, F. Maitland, D. B. Murray, C. E. H. Beavis, F. B. Deacon, W. L. Pattenden, C. G. S. Mackie W. Hutton Potts, H. F. Carmichael, D. D. Gasdar, R. H. Crofton. J. Barton, W. H. Wickham, Ho Fook, F. Smyth, L. Robert, E. Georg. S. G. Newall. F. P. Hett and L. Berindoague.
The SECRETARY read the notice calling the meeting.
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THE HONGKONG WEEKLY PRESS AND
an improvement has taken place and we hope that such improvement will become general. The incidence of total losses of first class liners has been one of the features of 1908 and our Reinsurance Fund which was established to provide for just such an eventuality has automa- tically come into play. The fund has grown steadily during normal years and may be ex- pected to increase again as years go on. To-day it equals our capital. The report before you gentlemen is in itself a good one and you are to be congratulated on the outturn of a year which to many others has not been so profitable. You will be glad to hear that We have not forgotten our staff and have voted a bonus of 15 per cent of a year's salary to the Provident Fund of each member who is in our service at the end of this month. 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 moved the adoption of the report and accounts
as presented.
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Mr. C. H. Ross in secondling said:-Gentle-|| men, I feel sure all of you have listened with the greatest interest to the Chairman's speech. which to my mind is a clear and comprehensive statement of the working of the Society during the periods concerned.After two years, such as 1907 and 1908,-yeark I may mention fraught with exceptional difficulties to Underwriters-it, must, I think, be particularly gratifying to Share the business of year 1907 permits of the payment. holders, to find that the Society's experience of
while its forecast of the ultimate result of opera- of an increased final dividen for that year. tions for 1908 warrant the recommendation by|| the Board of the usual Interim Dividend and a Bonus of 20 per cent. to Contributors. I am glad of the Chairman's assurance that although no addition has been made to the Reserve Fund, further claims have been amply provided for by the sum which as he ex- plained--is to be kept in a more liquid form In view of the period of idepressed trade through which the world generally has been passing, and in spite of the counteracting influence of the fall in silver, we might reason, ably have anticipated a very largely reduced premium income, it seems clear however that, its maintenance has not been at the cost of quality of the business done, as is evidenced by, the fact to which attention has just been drawn, that the
Ratio of the first year's
The CHAIRMAN said-Gentlemen. I propose with your permission to follow the usual pro- cedure and take the report as read. It has been in your hands for some weeks and has no doubt been carefully studied by you. In order to make a true comparison between the 1907 figures now before you and those of 19 6 presented last year, you must bear in mind the fact that exchange has fallen a further penny which accounts for the whole increase in our Premium Income of $191,000; it is therefore more ap parent than real. Although trade was greatly depressed, the year was as profitable as conld he expected; in fact if you compare our figures with those published by companies of the same magnitute as ourselves you will I feel sure come to the conclusion that your interests have been very well cared for.
We have a divisible! balance of $680,000, and this your Directors propose to deal with as follows:-To pay a final dividend of $17 per share on account of 1907, making the full dividend for that year 47 and to carry forward the large balance of $469.000 to Underwriting Suspense Account, which figure I can assure you is more than ample to provide for any possible losses. It has been our practice in past years, as far as was humanly possible not to underestimate losses and this plan has been adhered to as regards the year now being dealt with, but as our new system of working has only been in force since the begin- ning of 1906 it is difficult to foretell with accuracy what the third and fourth years settlements will amount to; we have therefore deemed it wiser to provide an additional margin of safety over estimates by carrying forward, in a liquid forin, a larger amount than at present seems necessary, instead of placing it to Reserre Fund, and I feel sure that this policy which is dictated by prudence will meet with your cordial approval. The figures for 1908 as shown in the Report are satisfactory as far as they go. The first year's loss settle. ment shows a decrease of one per cent. as compared with the previous year and we feel that we can quite safely recommend the declaration of an interim dividend of 830 per share on account of 1908 and the payment of a bonus of 20 per cent. to contributors. The falling off in takings. need give you no anxiety for if you study the publish results of the underwriting of many of our Home competitors you will find that those with a reduced premium income have made the best profits, for in a dreadful year such as had just passed when as the direct result of bad trade competition ran riot and rates in many directions were cut down below a paying level. careful management dictated that the worst paying accounts should be aban- doned; this points to safety and the maintenance of results such as shareholders in this Society have learned to look for. We have old and tried officers in charge of our chief Branches and it must be gratifying to you to note that they have not been tempted to depart from the wise policy of the Company and
The CHAIRMAN said Gentlemen The engage in a blind scramble for business at any advertised time of the Extraordinary Meeting price such as, I am afraid, has been charac-being already passed I will now call upon the teristic of the year now over There are signs that, owing to the disastrous experience of the underwriting world generally the tendency of rates is upwards; already in certain directions
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[April 26, 1909.
ally framed over 25 years ago when the prevailing custom was to make the Mem- oranda of Association as short as possible. The terms of the objects" clause, usually being confined to a very limited statement of the purpose for which a Company was incor- porated and no attempt made to take the many other incidental powers, the occasion for the exercise of which, has since frequently arisen. Modern methods are the exact antitheses of the old practice and provide not only such powers as for the time being appear necessary but also such as may possibily be desirable in the future and this seems the preferable course in view of the trouble and expense involved in effecting alterations in Memoranda of Association which unlike those in the Articles require the sanction of the Court even after adoption by shareholders. The revised Memorandum which is now sub- mitted to you for adoption embodies not only such incidental powers as present occasion sug gests but also such others as the future may call for. As regards the Articles of Association these have been generally modernised and brought into line with the existing practice of the Society in several respects, certain desirable additions made, and other provisions which were unworkable omitted. Your Directors believe that in their amended form the Memorandum and Articles will meet all practical require- ments and call for no further alterations for many years to come. Shareholders in all parts of the world outside Hongkong have been given and Articles in their present form and have the opportunity of perusing the Memorandum
unanimously approved of them. I will now pat
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the Resolution .-
That the Memorandum and Articles of Association of the Society be respectively ex- tended, altered and amended so as to read as shown in the print signed for the purpose of identification by the Chairman of this Meeting and that such extended, altered and amended Memorandum and Articles of Association be henceforth adopted as the Memorandum and Articles of Association of the Society to the exclusion of those heretofore prevailing."
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M. MACKIE seconded, and the motion was carried.
"The CHAIRMAN-That completes to-day's business, Gentlemen. I'am obliged to you for your attendance. There will be a 'confirmatory meeting on May 7th at 12.30 p.m.
CQ. LD.
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loss settlements of this particulariy bad THE CHINA TRADERS INSURANCE year, is lower than than of the year before. Gentlemen. this angurs well for the future. and I think our best thanks are due to those, gentlemen who have so ably superintended the
The forty-third ordinary meeting of Share- Society's business during these deplorably. holders of the China Traders' Insurance Co. Ld. trying times. The bonus of 15 per cent of a
was held at the offices of the Company No. 2 year's salary to the Provident Fund of each queen's Buildings on the 21st instant member of the staff will, I feel sure, meet with
Mr. E.. Ormiston presided and there were your hearty approval. Turning to the front also present Alessrs.E. G. Barrett, J. W. C. page of the report. I think you will all notice Bonuar, J. W. Bandow, C. S. Gubbay, W. with much pleasure that the name of Mr. W. J. Helias, A. Forbes, H. A. Siebs, (Directors). Saunders is now included in those forming the. Montague Ede (Secretary), A. . Rouse London committee. The Society owes much H. Hunter, H. J. J. Carvalho, B. M. C. Cunha to this gentleman, and I feel sure his able V. L. Remedios, A. E. S. Alves, J. A. Carvalho, counsel will be of much value to the London J. F., Barros and J. Gardner. Board. Gentlemen, I have much pleasure in seconding the adoption of the report and accounts as presented to you this day.
The SECRETARY read the notice calling the meeting.
The CHAIRMAN said:-Gentlemen, I will Mr. BEAVIS proposed the re-election of with your permission take the report as Messrs C. R. Lenzmann W Helms as Directorshows an increase in net premium of the latter read. A comparison of the years 1906 and 1907 Mr TRATMAN seconded and the motion was agreed to.
MAITLAND, Messrs. W. Hutton Potts and On the motion of Mr. Jupp, seconded by Mr. A. R. Lowe were re-appointed auditors.
The CHAIRMAN-Gentleman, that is all the business. Dividend warrants will be sent out
to-morrow.
EXTRAORDINARY GENERAL MEETING.
immediately after the annual meeting, the same An extraordinary general meeting was held shareholders being present with the exception of Messrs. J. A. Jupp and W. H. Wickham.
The SECRETARY read the notice convening the meeting.
Secretary to read the notice convening it. For some time past your Directors have had under consideration the existing form of the Society's Memorandum and Articles; these were origin-
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which is almost entirely due to the fall in $20,000 which is satisfactory. Turning to the, exchange. Interest in 1907 shows an increase
other side of the account you will see that there is little or no variation in commissions, increase of $150,000, the increase in the dollar charges etc. while losses paid shows
figure as in the case of takings being largely due to exchange, the balance carried forward is $53,000 less and amounts to $359,000 which we propose to deal with as follows:-
to pay a final dividend of $1.50 per share, to add £8,000 to Reinsurance Fund and to carry forward the balance of $231.000 to Underwriting Suspense
account.
- regards 1908 account there is a falling off in premium of $68,000 and in interest $15,000 while on the other side of the account losses and claims paid are smaller by 44,000, while the balance carried forward is only $8,000 less than the previous year. On the whole we consider the figures very satisfactory
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