company, To the Bditor of the Norru-Cuiva Darcy Nzws, Dear Sm,—"T.'s" letter of 22nd instant calls for a reply, as he challenges stntements made in my letter of 18th instant, and asks certain questions which I propose to xnawer.
Deed of Settlement. $/30U Te is quite true that, under the original
profits of the Company wer distribution, as bonus, amonget all contributoré ut business, whether Shareholders or not; but 1." quite forgets to atate that the remaining 7/10ths were appropriated for the sole benefit of the Shareholders, ous in the Deed can improved the position, regards "T's" remark that "the payment of a dividend firat, did, in one year, absorb all the profit." I find thet, in December 1872, the usual dividend (6 % for the half-year) was was not 'April in th ear that the Directors disco' was" Joss on the underwrite account for 1872 of Tls. 38,580.75! This apparent overpayment to Shareholders was equalized in the two follow during which time received d of 24 per cent., on their capital.
[fail to see how the position of Shareholders car. be atill further improved" by the proposed encroachment on the Reserve Fund to provide for dividends is not such a proceeding very much lik taking money out of one pocket, and it into the other? directors have, for changed th expediency of "equalizing" di withdrawals from Keserve. Compare their present proposal with the following ments made by two members of the Board at the Extraordinary General Meeting held on the 10th December, 1873
"Mr. CAL. Doxw said it must weaken the Company to pay dividends out of reserve in bad years. It was better to leave it to the Shareholders to decide whether they would pay a dividend or not.
Mr. Drvspauz eaid, in the present position of Tusurauce Companies, people looked at the Reserve Fand asa maia support. If they weakened the Fund they would' damage
Text read from the printed page and cleaned; old type leaves the occasional error.