The sixteenth ordinary general. meeting of the above company was held at the Head Ofice, Shanghai, on Monday at 2.30
There were present:—Measrs, E. H, Lavers (Chairman), W. Brand, H. Henrn, Cecil Holliday, W. D. Little, McLeod (Directors), Alex. Ross (Secretary), Young, H. J. Dyer, R. Francis, H. Sylva, E. Bois, ©. J. Dudgeon, 4. Fleet, W. W. Clifford, F. Anderson, Campbell, Nils' Moller, C. Cromie, J. Beattie, G. A. Matthews, C. M. Dyce, E. Jouner'Hogg, KO. Davis. 'C. A. L. Dunn, H. M. Schultz, W. H. Anderson, R. H. Beauchamp, H. Adams, J. A. Hawes, H.
Price, M. Rohde, W. Lamond,' jr., Roustan, and B. Sonne, representing in ell 1,811 shares, The notice convening the meeting having been read by the Secretary, The Chairman said—Jentlemen,—With your permission we will dispense with the formality of reading the minutes of last meeting, and the Report and accounts, The latter have been before you for some time, and have doubtless received due consideration.
The year 1890 underwriters 4 Company. The losses have not been co1 fined tony one branch of business, with much reget that your Directors have found it necessary to entrench upon the Reserve Fund to the extent of Tls. 120,000. For 1891 the net premium shows. reduction of Tis, 314,000, xs compared with 1890, a large portion of this is due to the restrictions in the London business requested by the Directors, while the course Of trade hits also in some tneasre accounted for the lesser volume of premia at other agencies. After reckoning paid and outstanding losses, it will be seen that there is Atill a balance of 'Tls. 809,000 odd, at the credit of the 1801 account, but' our outstanding liabilities for unexpired risks are so heavy, that we do not feel in a position to recommend more than the appropriation of profits necessary to pay the dividend of 57%, suggested in the report. You have long been aware that permission had been granted the London Agency to extend their business in the direction of block risks. We have before now stated that these did not show the good results that had been anticipated, and bearing in mind this fact, and the indisposition to towards business of this kind that shareholders have from time to time evinced, we directed their discontinuance. I may say that in this the views of the Committee and ourselves have been so divergent that they have resigned, and that we have with regret felt bound to accept their resignation. The phoes of the retiring gentlemen have been filled by Messrs. David McLean and David Brand, in whom I feel sure the shareholders will have every confidence. Since our last meeting, the question of reducing the Company's capital has engaged our earnest attention. We wave taken legal advice, and are advised that the best aid most expeditious mode of effecting this, would be by winding up the Company, and forming a new Company in much the same way as when the present Company was formed in 1883. "Our idea is to reduce the paid-up capital considerably, and if we find the shareholders generally will. support us in this scheme, it may be possible to commence the year1893 under anew constitution, which we hope will place the Company in a more favourable position. As this subject can only be dealt with at an extraordinary meeting, we can tirely allude to it informally at. the moment. Should, however, it, meet your. views, we shall be glad when the business of this meeting is disposed of to get an expression, of opinion from you as to the advisability vf proceeding with the matter with. as little delay as possible, and. when all preliminaries are arranged to call a, special nieeting to carry out the object before us. Meantime, if there is any further information I can give you with reference to the accounts, which form the subject of the first resolution T shall be happy to do so.
Me. Hogg, after asking for the principal details of the London expenses, such as the salary of the agent, deputy underwriter, and committee, and the Manchester agent (which were supplied by the Chairman) said that at the last meeting " good many remarks were made about what were Known as the Baltic and Tyne risks, and bull rst He wished to know if the Board could give information. xs to the losses which had arisen from this class ut risks.
The Chairman replied that he had net the separate figures for Baltic or Tyne risks, but the loss on block and time risks: for the four years 1887-90 was about £20,000. This included the Baltic risks, Mr. Ross thought the question at the last meeting was with regard to insurances on halls.
Mr. Hogg said these insurance were said to have been effected at very low rates, and it was also stated that re-insurances had been taken out at a loss, The Chaivman then said that if the matter was left the hands of the Board, the shareholders would be perfectly gutistied. Six months hay now elapsed, it was fair to call for some particulars in accordance with the assurance which the shareholders then received. The question hid been severely debated and roughly handled since, and it was not at all sure where these heavy losses had been made; and if the shareholders asked for such information he thought they were entitled to have it, Mr. Ross said it was not his intention to withhold any information, but the point at the last meeting was that risks were being taken upon the blocks. The different risks of this kind were not kept separate, those on steamers going to the Baltic, Mediterranean, Black Sea, etc., being all kept together; but the general result since they began the business in 1887 had been, us the Chairman had 1" loss of £20,000, Mr, Hogg said there was no doubt they d tilemselves face tu face with u very dificult! position. The business was certainly unsatisfactory, and the reason must be sought somewhere." ''here were certain evident causes such as were pointed out a year ago by Mr. Davia, including too large capital and insufticient'reserve fund. These points were evidently being attended to by the Board, who had promised scheme for the reduction of capital, That was highly satisfactory, but, there was an impression amongst. the shareholders that there was something else wanted that there was a reform of managenient required somewhere; and the shareholders, or a good many of them, believed that the blot was in London, This was no new idea. It had been pointed out very for-elbly, though possibly indiscreetly, at the last meeting, and attention to this point was promised. It seemed that the Committee in London had disagreed with the Board here, and bad retired. The share: holders mast all regret that such men as were on the London Committee had retired, but at the same time it seemed an extraordinary thing that the Board here should be dominated by the Committesin London. Whether it was the Committee in London who ruled the Company or not, he was not prepared te say; but whether it was the Committee, or the Agent, who. ruled the Committee, the shareholders. wished ta protest against what yas believed to by sonic injury to the Company. The
Text read from the printed page and cleaned; old type leaves the occasional error.