Shares and MININC

Observer, Volume XXIII, Issue 32, 25 April 1903, Page 17

Shares and MININC

By Obauiah

THE report on the triennial actuarial investigation of the Government Life Insurance Department is very- satisfactory. In dealing with the Department i% is important to bear in mind that it is quite unfair to compare its operations with those of life insurance societies, because the business of the Department is restricted to Ntsw Zealand, while the others have the whole of Australasia to work upon. The valuation as at 31st December last year shows that the funds at that date totalled £3,382,817, and this after the investment fluctuation reserve had been strengthened by the addition of ; £2£,7£'3. The life insurance and annuity contracts totalled £3,214,409, thus showing a. surplus of £168,408, of which £167,932 10s has been distributed among the policy-holders, representing additions to the sums assured of £290,074. At the previous triennial valuation the surplus was £120,600 cash— equal to £220,795 additions to policies. There has been a distinct improvement during the past triennial period. The total cash surplus divided by the Department amounts to £1,001,285— a veTy fair record for the Department.

Some details of the other figures shown by the valuation are interesting. The ratio of commission and expenses (excluding taxation) decreased during the triennium from 14.4 per cent, to total income and 20.2 per cent, to premium income in 1900 to 11.3 per cent, and 16.8 per cent, in ■1002. The new business of the tri,feftnjimr consisted of 9919 policies, insuring £1,973,578, the- new annual premiums being . £66,945, .and on annuities £15,762 per annum. The business in force at the end of the triennial period (December, 1902) was made up of 42,406 policies, insuring £9, 890,572, or, with bonus additions, £10,734,660 ; and with the new bonus the amount payable on death or at maturity on all policies, is now over 11 millions sterling.

Th<: reversionary bonus attached to policies now total £838,088. The annual premiums on policies amount to £296, £73, and on annuities to £36,392. The total income received during the triennium amounted to £1,319,049. The average rate of interest realised was £4 9s 3d per cent, in 1900, £4 8s 5d per cent, in 1901, and £4 Bs6d per cent, in 1902, thus showing that the downward trend of the interest rate has been arrested. The total assets of the Department at the end of last year amounted to £3,414,133. The Department shows a very good record and fully reflects tlio prosperity of the colony.

The dredging returns in the South are beginning to look decidodly healthy, particularly those of the West Coast dredges, while from Otago some dredges that -were expected to be in the fore front two years ago are only now beginning to give satisfactory returns.

The Union Oil Company pays an interim dividend of sixpence per share. There have been steady enquiries for this stock lately, the buying price being 22s on Shares with a paid up value of 14s.

People who imagine that cooperative stores have only to be started to score success may find a lesson in the experience of the individuals who started the Auckland Farmers' Co-operative Society. After a very short trading existence, it has called its shareholders together to consider the expediency of winding up fby reason of its liabilities." A cooperative store requires experienced and shrewd management and has its difficulties just as much as any private venture.

The iTaupiri Coal Mines Company, whiclj pays the usual dividend on the year's operations, is very wisely taking power to create a reserve. -Indeed, without a reserve fund for possible

future development emergencies, there is always an exceptional share of riskiness in colliery stock.

Though the week has been a dead one in all mining stock, it is satisfactory to find that the gold yield for the first quarter 08 this year shows an increase of £32,561 over the first quarter of last year, the gross value being £221,(>74. Also, the yield for the last three weeks is a record one.

They arc getting more gold at Ooromandel ■ just now, and, as a consequence, prospects are brighter. The Waitaia mine at Kuaotunu has crushed 51 tons for a yield valued at £lfi7 which is a good average value.

The Countess of Ranfurly and Ladies Constance and Eileen Knox arrived yesterday from the South and Home now residing at Government House, where they will be joiner! by His Excellency the Governor. Tho vice-regal party will probably remain in Auckland until near the opening of Parliament

ft is a noteworthy coincidence that Richmond Ward, New Lynn, is offered Wie services of two sons of old councillors. Mr J. A. W'arnock is son of the retiring Mayor, and the father of Mr W. S. Donahl was one of the members of the borough's first council. The third candidate on the same ticket is Mr J. R. Lundon, who has had experience in Parnell Borough hut is taking up his residence in Grey Lynn.