We continued to be deprived of income from the interior of China but our Fire Insurance Business nevertheless showed an increase of 78" percent. over last year. Our Canton Oftce still remains closed, while our operations in Foochow, Hankow and Chungking have bees ied /severely affected by. the disturbed conditions obtaining in these parts of China. The volume of premiums collected in North China and Manchuria increased but claims were s0 heavy that the underwriting experience was unsatisfactory. There are many indications that these ex-fees sive claims are influenced Jgenerally poor business conditions: that we have been foreed to restrict our underwriting in those areas. Shanghai business showed a substantial. increase, and as usual gave favourable results to our insurance companies.
Marine Business Despite a further decline in marine income from the interior of China as:
result of the continued blockade on the Yangtze and Pearl Rivers, our income from. cargo. insurance injereased by 274 per cent, and that from hulls has been improved by 46 Per cent, This large volume origin fated. principally in Shanghai, every month in the year showing iiereases over the corresponding months of 1928. The effect of depreciating currency is quickly offset in cargo surance, but if for comparative purposes the same exchange rates were used ay in 1938 a substantial growth in volume would. still have been shown. Marine underwriting results for all our insurranee companies were favourable.
Directly and indirectly we continue to hold a substantial interest in the 'Tai Shan Insurance Company, whose conservative consistent growth Aoubly appreciated since it is being' Becomplished with accompanying, yearly dividends.
The China Engineers Ltd. continued during 1999 its extraordinary, record of exceptional management and earnings. One of our few new investments during the year was the Shanghai Worsted Mill, Ltd. sponsored by China Engineers and. already settling down to steady earnings.
During. 1939 your directors continued the policy previously adopted of liquidating all holdings in. public; enterprises except those closely afilated either by old association or by 'a share in the management. The me creasing activity and rising prices which characterized the local stock exchange during 1999 and carly 1940 facilitated this policy.
The combined net profit from me surance agency operations and investments totalled $801,365.60,
Text read from the printed page and cleaned; old type leaves the occasional error.