The Sun.
London, England, 1854-06-12 00:00:00

Wm. Hy. Adams, Esq., Boston. '
Wm. Foster, Esq., Canwick, near Lew- Directors of the Lin-
Wm. Marshall. Esq., Lincoln. colnshire Fire
Jno. Rawson, Esq , Boston. Office.
Jno. Geo. Stapleton Smith, Esq., Lincoln.
Thos. Winn, Esq., Lincoln.
With power to add to their nufliber.
BANKERS.—Messrs Smith, Ellison, and Co., Lincoln.
SECRETARY.—Mr. Wm. Andrew, Lincoln.
TEMPORARY OFFICES.—The Lincolnshire Fire Office, Cornhill,
Lincoln.
In placing the Prospectus of the MIDLAND COUNTIES
INSURANCE COMPANY before the Public, it may be well
first, briefly to glance at the Insurance Companies at present
existing in those counties. Warwickshire has two the Birming-
ham Fire and the District Fire. Notinghanashire and Derby-
shire one—The Nottinghamshire and Derbyshire Fire and
Life Office ; and Lincolnshire one—The Lincolnshire Fire Offica. It
will be noticed three of these are Fire Offices only. The two WarwiBk,
Shire Companies are both of them highly respectable and well-
established Companies, but limited in their operations to Fire In-
surances, and doing the balk of their business in their own
localities. The Nottinghamshire and Derbyshire has maintained,
for many years, a most respectable position; but it may be fairly
asserted, without any intention of underrating the Office, that it
does not hold that rank amongst Insurance Companies which is ne-
cessary to render it so profitable to the Shareholders, or extensively,
useful to the public, as it might be. Leicestershire formerly pos-
sessed a local Insurance Office, but it was abandoned and sold to the
Sun Fire Office EOM years age, although parties, well acquainted
with the Leicestershire office, have asserted that it only required
energy and perseverance to have maintained its ground success-
fully. Northamptonshire and Rutlandshire never possessed any in-
surance company of their own.
The Lincolnshire Fire Office is one of more recent origin, but con-
nected with or of the largest counties in the kingdom. It was
established in 185, is composed of 495 shareholders, resident in
Lincoln or Line dnshire, and although the business of the Company
Verhelet ahnost exclusively confined to the city and county of Lin-
coln, it has in three years insured nearly Two Millions of Property.
The whole of the paid up capital of the Company is entire, and in-
vested upon securities ; and out of actually realised profits during
the last three years, all Fire Losses have been paid, all manage-
ment expenses, Five der Cent. each year to the shareholders
upon the paid up capital, all the charges connected with the
formation of the Comp ‘ny, and still there is a surplus of nearly 1,000/.
as a reserve fund. This, in so limited a sphere of business opera-
tions, and in so short a time, shows what might be done upon the same
principle, by combinations throughout the whole of the Midiami Coun-
ties, taking, too, into account, that by such a combination the per
tentage of working expenses would be considerably reduced, and the
amount of local interest brought to bear, renders success certain.
The shares of the Lincolnshire Fire Office have attained a pre-
mium of cent. per cent upon the paid up Capital. The Office
was originally intended to have been a Life, as well as Fire Office ;
but it was decided first to try its working as a Fire Office
before undertaking Life risks. The success of the office has now,
however, been so great, that it is determined by the shareholders to
undertake Life, and also Hail Storm Insurances, in addition to the
Fire business, and to extend the business to the whole of the Mid-
land Counties, with a body of shareholders in each county. This is
proposed to be done by the dissolution or the Lincolnshire Fire-
office, and the formation of an entirely new Company, to be called
" The Midland Counties Fire and Life and Hall Storm insurance Com-
pany." The books, papers, and business of the Lincolnseire-office to
he handed over to the new Company upon the tenoning terms :
The shareholdes in the Lincolnshire office to receive in shares (not
in money) 30s. per share premium, as the market value of their
interest in toe Company. To raise a fund for this pur-
pose, so as to keep the Capital of the new Company untouched, the
new Shares are to be allotted at a Premium of 2s. Bd. per Share,
which will raise a fund amply sufficient for the purpose. This 2s
Bd. Premium will, of course, not be charged upon the Shares allotted
to the Lincolnshire Fire Office Shareholders in lieu of their present
Shares.
To ensure a permanent resident Proprietary, the Shares of the
MIDLAND COUNTIES are proposed to be divided into sepa-
rate Stocks for each County, the shares in such several County
Stocks not being capable of being held other than by par-
ties resident in such several Counties ; and to ensure a Pro-
priety having an undivided interest in the prosperity of the
Company, no person, whilst holding Shares in this Company, is
to be allowed to hold Shares in any other Insurance Company.
These restrictions may at first sight appear stringent, but they
Must and will ultimately tend to promote the interest of the Corn-
pitny infinitely more than an indiscriminate holding of shares by
parties not resident in the Midland district, and possessing such
shares merely as an investment; or who, from conflicting interests
in f
whichother c, ors ps ahtat free%
shareholders,
os givey a rprundividedd
ought,t ttoo t
be
the Company
of which, CS shareholders, they profess, and ought, to be the sup-

porters.
As to the Life Business, the district of the Midland Counties corn-
greissettitesa. populationa.eet
asto of
eiltwotetiennghtawinoshairnde three millions, entirely
any ulecal p
Life Office,and offering to the Midland Counties Company
ample scope for a most profitable business in that department of In-
surance, and still in so doing to promote a great public benefit, as
every well conducted Life Office undoubtedly is.
As to the FIRE BUSINESS, the district of the Midland Counties
is most favourable, the experience of all the existing Companies in
those counties shows.
As to the HAIL STORA INSURANCE, this has not been added
to the Life and Fire business without careful consideration, and
upon details obtained from sources which may be relied upon ; and
the union of these three branches of Insurance in a district so good
as the Midland Counties, combined with careful and energetic ma-
nagement, may well be expected, ere many years pass, to enable the
Midland Counties Company to take its stand as one of the most in-
fluential Insurance Companies in the Kingdom.
According to the arrangement entered into with the Shareholders
of the Lincolnshire Fire Office, they will take 12,000 of the 17,000
shares forming the Stock of the Midland Counties Company, in Lin-
colnshire, therefore, there will be only 5000 new shares to allot, at
the 2s. *d. premium, and, although, many of the Lincolnshire Office
Shareholders have a claim to be allowed to increase their amount of
shares, yet the Provisional Committee will view with great pleasure
and carefully consider applications for shares from parties of influ-
ence and standing, who are not at present shareholders in the Lin-
colnshire Office.
No person can hold more than 300 Shares in the new Company.—
The Head Office is proposed to be held in Lincoln, with local boards at
Birmingham, Leicester, Nottingham, Derby, and Northampton.—
The Board of Directors to be compeSed of 25 Gentlemen, chosen as
follows :
- •

Llncelnshire .. ••.. • • ........ 5 Leicestershire 3
Warwickshire • • ............ 5 North cmptonshire .•• 3
Derbyshire .• • 4 Rutlandshire .. • • ...... 1
Nottinghamshire •• •. • 4
Three of the Directors to be paid by salary, and expected regu-
larly, if possible, to attend the Board Meetings, so as always to form
a quorum for business ; the remainder of the Directors to be unpaid,
but to be allowed their travelling expens 8, when they choose to
attend Board Meetings, at the Head Office.-7 he Chairman of the
Board of Direct I's to be ex officio, a member of all the local boards.
The Annual Meeting of the Cornpan to be held alternately, at
Lincoln, Birmingham, Derby, Nottmghans, Leicester, and North-
ampton.
The Provisional Committee will proceed to allot the shares com-
prising the Lincoln stock, bat do not prop se to allot shares in any
of the other counties until some influential gentlemen connected
with those counties have applied for shares, and whose advice and
direction in local committees may be rendered available in the selec-
tion of proper parties as shareholders, as it is not intended to allot
the ahares at random to any one applying, but only to such parties
as, by the,r position, are likely, not only to advance the interests of
the Company by their Insurances, but by their association with it
to give the public full confidence on the soundness of its foundation.
It should also be stated that no deposit will be required upon the
allotment of shares, as is general,y the case, for all applicants for
shares will be held perfectly clear of all individual liability or ex
pense, as when the Company is actually and legally fOrmed, (which
it is sure to be), then the expense of its formation will be paid out
of the funds of the Company.
Midland Ccmpa ny for that
briefort
i sketch
appointed
theted proposed y
town in the Mid-
landd CC ooany, but influential
p t
district, who will represent the
agents This willsisa
y
county as regards its foundation, and public meetings will be held
in all the principal towns in the several counties to explain more
fully the principles and details of the Company, but it is coatidently
believed that a Company formed as this is proposed to be, and com-
prising probably between 2,000 and 3,000 influential shareholders,
cannot fail to prove most creditable, and a profitable investment to
all connected with it.
While thus advocating the formation of a new Company it ought
not in fairness to be forgotten that half a century age, the -
prise, intelligence, and capital of the Metropolis, promoted enter
and
formed Insurance Institutions, which have been, for years, and are
still amongst the proudest and wealthiest of our National Institutions,
and supplied for the provinces of the Kingdom, at that time, what
they were not then in a posit on to supply for themselves. But this en-
terprise has been amply rewarded long ago by profits almost beyond
belief; in many cases anti, the pats-up capital has increa.ed to ten
and twelve times its original amount, and now by the development
of various national improvements, the Provincial Counties are
as well able to found these Institutions for themselves, as the Capi-
talists of the Metro: ohs were in former years; and in confirmation
of this, reference need only be made to such offices as the Norwich
Union, the West of England, the Yorkshire, and ot'ter local offices.
It has, for many years, been admitted that inveatments in well-
established Insurance Companies are the most profitable, permanent,
and least hazardous, that are ever offered to the public ; and it is
believed that many will read this Prospectus with doubt and hesita-
tion, who, in after years, will regret for themselves and their families
that they did not throw a small amount of their capital, and the
whole of their influence, into the promotion of this Company.
Power will be taken by the Deed of Settlement to increase the
capital of the Company to two millions by the issue of 81,000 fresh
shares, upon such terms :is the existing shareholders of the Midland
Counties company shall determine. This is provided for the pur-
pose of meeting any arrangement which may hereafter be thought
advisable for the junction wile the Midland Counties Company of
any of the Insurance Cmnpaniea which at present exist in those
counties.
Printed Prospectuses, and forms of applications for Shares, will be
out in a few days, and may be had upon application to the at the
Lincolnshire Fire Office, Lincoln ; or of any of the Agents of that
Company ; or of any of the Agents of the Midland Counties Com-
pany ; who will shortly be appointed in Birmingham, Nottingham,
Derby, Leicester, Northampton, and Oakham, and of whose appoint-
ment notices wilt from time to time appear in the provincial papers.
—By order of the Provisional Committee.
WM. ANDREW, Secretary.
. Lincoln, ith June, 1854.