The ninth ordinary meeting of the Straits Insurance Company, Limited, was held at Singapore on the 1éth ult. Mr. R. Glass, Chairman of the Board of Directors presided.
The Cuarmay said—Gentlemen, the re-pont and accounts having been in your hands the customary time, with your permission we will take them as read, but before asking you to pass them I should like to make a few remarks. We must all regret the unfortunate outturn of the 1886 accounts. When the Directors last met you, they had hopes of a Bonus on the year's business, but that is now impossible the amount of $120,526.29 set aside has been more than absorbed. It is a great matter of regret to the Directors that our contributors should have this disappointment. I am glad, however, to say that our contributing shareholders, as well as others, continue loyally to support the Company. The business now under notice is much more cheering. We have had to face a continuance of the cutting of rates referred to at the last meeting, and the Directors regret that there seems to be no immediate prospect of the war of rates ceasing. We: continue to work cordially with the large China offices. Our takings in the shape of premiums show a falling off, but this can be accounted for by the lower rates obtained, and by the fact that many of our contributors now take a net rate, that is to say, we give them a bonus right away. This arrangement was recognised in China at a meeting of the offices held in March, the object being to give insurers the option of participating or not in the bonus, and it is done by the other local Companies. I must further say on this subject that taking the low rates of prema into consider. ation, your directors have revised all the lines vim by the company, and have generally reduced limits here and atoll agencies. The greatest care is being taken and a very strict scrutiny is made of all business. The shareholders may think that I should say something about the dividend paid for the last six months. When we came to consider this, it seemed to the directors that it would be more prudent to my an ad interim dividend of 5 per cent. We did not touch the reserve fund, being, so to speak, only the half-yearly accounts, we thought and think it best to leave the consideration of that important matter till we see how the year's work turns out, and the interests of all contributors will then have our best consideration. I am glad to say that up to now things are working satisfactorily. At the last meeting the Chairman referred to the trouble with the company's cashier. Tam now in a position to state that, actin; under the advice of the company's legal adviser, this matter has been so far settled, that instead of a loss of nearly $28,000 we do not anticipate the company will lose more than $10,000 and that amount has been written off from the accounts now before you. One word more and I am done; the directors, after due_consideration, appointed Mr.' Crawford D. Kers to the Managership of the Company. We have every reason to think that this appointment will be a good one for the company. I shall be glad to answer any question any shareholder may wish to ask.
Mr. W. B. Surrit asked if the directors thought they were justified in holding out the hope that " dividend of 7 per cent. would be paid.
The CHamMay said that looking at the resent state of business they were, as the losses to June 30th were only 27 per cent. of the earnings. Of course it was impos sible to say what might happen, but at present they had every hope of paying the dividend.
Mr. Prayrar said that at the previous meeting a desire had been expressed to make the audit a real and not a merely nomial one, and to increase the remuneration of the auditors so as to make it worth their while to devote sufficient time to make it a real audit.
The Camas had much pleasure in stating that that had been attended to. The auditors went to the office for an hour or two, on eight or ten days each month to go thoroughly over the books. Their remuneration had been increased.
Being further asked if the auditors were satisfied with the increased remuneration, and whether it was not a matter for the shareholders to consider if they were not, the Chairman replied that Clause 146 of the Articles of the Company left the sum to be fixed by the Board of Directors. Instead of $600 per annum they now received $900 for the two companies, that is $600 for the marine and $300 for the fire. If the sense of the meeting was to increase that amount, the Directors would give the matter their attention, Other Companies, however, did not pay so much, Mr. PraxFArr said that was no criterion. The Company had suffered severely in the past, and what was wanted was a real and efficient audit to prevent the recurrence of such a state of things. Good men willing to go into the affairs of the Company thoroughly should be well remunerated. He proposed "that in the opinion of the meeting now present the Auditors should be remunerated in the terms they ask viz, $720 per annum." carried by nine votes to two.
This proposal was put to the meeting and The Cuarrqas said the directors were glad to get that expression of the sense of the meeting. If there were no further questions, he would propose that the report and accounts be passed.
Mr. F. G. Bernard seconded the motion, which was carred nem. con., and the meet= ing then closed.—Free Press.
Text read from the printed page and cleaned; old type leaves the occasional error.