The Sun.
London, England, 1860-02-23 00:00:00

THE SUN, LONDON, THURSDAY EVENING, FEBRUARY 23, 1860.

LONDON and PROVINCIAL MARINE
INSURANCE COMPANY.
Provisionally Incorporated pursuant to the Joint-Stock Com-
panies Act, 7th and Bth Vic., cap. 110.
Capital Stock, ONE MILLION in 50,000 Shares of 120 each
(with power to increase to Two Million).
Deposit 2s. per Share, £1 18s. on allotment, and £2 in Three

tors. As soon as the company came into active
operation they found it desirable to have those on
the spot who were interested in the management of
their affairs in Berlin ; and, upon the recommenda-
tion of the board, the proprietors were pleased,
some three years since, to elect two local directors
at Berlin, the Baron Von Magnus and Frederick
Gelpeke, Esq. They also thought it desirable to
associate with thoie gentlemen, as a committee of
management in Berlin, a scot of council, and,
therefore, they had chosen Dr. Gaebler, who was
their official representative in Berlin. They were
aware that by the terms of the concession they
were bound to be represented by a native of that
country. In addition to that they had Dr.
Geppert, their legal adviser, and Mr. Sca-
bell, their technical adviser ; and as a
further addition, there was Mr. Me et, their
Berlin auditor, and Mr. Gill, theisager in
Berlin ;so that, in all, they had a local'. ,
of seven in Berlin. They had not gran
body any power of independent action, b
emanated from them which, from their loc "•
ledge, they could better appreciate than the sirec-
tors in London could do. The board thought, with
such a committee in Berlin and five directors at
home, it formed a sufficiently strong governing
body. (Hear, hear.) But if -.the shareholders
thought otherwise, the directors would welcome to
their board any additions they might desire to
place there. Proprietors would doubtless be desi-
rous of knowing whether anything farther had
occurred with regard to the extension of the con-
cession. He was sorry to say that he had nothing
of a more definite character to communicate to them
upon that subject. He might, however, state that,
during the last six months, they had heard that in-
quiry had been made, rather of a private than of
an official character, of their representative there,
whether be thought the company would be still
disposed to grant the same terms as they offered to
the municipality last year in the event of the con-
cession being extended. To that inquiry the reply
was given that they were ready to act up to those
terms, and so the matter stands. This subject
having emanated from them unsolicited by the
company, the directors ventured to hope that
it meant something more than those empty words
of promise which they had received before. (Hear,
hear.) The directors were alive to the subject.
They had impressed upon their representative in
Berlin to lose no opportunity of bringing it for-
ward, but their feeling was that at the present
moment they should let it remain quiet ; and as
they had afforded satisfactory testimony of their
readiness to comply with the terms proposed, they
might expect it would emanate from the authorities
of that country, when they saw it to their interest,
to say, "We accept the terms you propose, and
grant the extension of your concession." He now
begged to propose that the report be received and
adopted.
Mr. PICKERSGILL seconded the motion, which
was unanimously adopted.
The CHAIRMAN said he now came to the resolu-

tion with regard to the accumulated balance to the
debit of the revenue account. It was as follows:
" Resolved,—That in the opinion of this meeting the
sum of £7,809 Is. 8(1., which stood to the debit of revenue
account on the 31st December, 1858, is in the nature of
prolitninary expenditure, and that the same should bo car-
ried to a suspense account, and liquidated by an appropria-
tion of not less than £5OO per annum from the profits of
each succeseive year, commencing on 31st December, 1859."
That was to say, from the sum now standing to
the credit of revenue account of £1,400 or £1,500,
there would be deducted the first instalment of
£5OO, when there would remain balance £9OO, and
£l,OOO to the credit of profit and loss, which he
hoped would, like a snow-ball, accumulate until,
before a distant day, it would reach an amount
which the proprietors would deem worthy of dis-
tribution amongst them.
A SHAREHOLDER inquired whether the £15,000
for relaying the pipes had been paid ?
The CHAIRMAN replied that it was all paid,
which, he added, had absorbed a large portion of
the additional capital raised two years ago.
Mr. MILLER, who came late into the room, put
several questions which had been fully met by the
chairman in his opening observations, and which
necessitated a repetition of several of the state-
ments given above, particularly with regard to the
accumulated balance to the debit of the revenue.
Upon the point of the expenditure of the £2,000,
as explained by the chairman, the hon. proprietor
suggested whether the relaying of the pipes which
burst in the first instance might not be treated in
the same light as if a locomotive engine had been
ordered for a railway abroad, but which, upon its
arrival, was found to be not sufficiently powerful
for the'work it was required to do. He suggested
whether, in such a case, it should not be a charge
upon capital.
The CHAIRMAN repeated that the whole expense
of relaying the pipes at greater depth had been
charged to capital.
Mr. MILLER inquired in what way this balance
against revenue had accrued ?
The CHAIRMAN replied it arose from the exces-
sive expenditure over income, from the time of the
opening of the works until December, 1858. From
that time, he was happy to say, they hid turned
the corner, and their income had exceeded their
expenditure. For two years and nine mouths they
worked at a loss, and the result was the accumula-
tion of £7,800 against revenue. The !chairman
went on to explain, further, that the entire relay-
ing of the pipes was an improvement of the sys-
tem, and was, consequently, a legitimate charge
to capital. In the case of the expenditure of the
£2,000, as already stated, it was merely the re-
placement of that which failed from the
attack of the frost. He thought there was
a great distinction between the one case and the
other, and the result of the deliberations of the
board was, that, throwing aside the legal question,
they Felt they could not, as men of business, recom-
mend the proprietors to adopt the course which
was suggested at the last meeting, viz., to place
that amount to the debit of capital. In the ex-
tended works which they hoped would be ultimately
required, they would be glad to avail themselves of
the unemployed capital for laying down fresh pipes.
'They had constant applications for supply. New
suburbs were springing up ; and the builders re-
presented the advantage of having the water laid
on while the buildings were in course of construc-
tion. If the company would lay down the pipes,
the people would take the water, and the directors
had thought it to the advantage of the company to
meet them in that respect. To effect that, a cer-
tain amount of floating capital was required, and
to transfer this amount to capital account would bo
to diminish the means they had at their command.
Upon principle the directors thought the course
they had adopted was the proper one ; and the
best way to wipe off this £7,800 was to make it as
light a charge as might be upon the revenue of
future years ; and, therefore, they proposed an
annual sum of not less than £5OO for writing
it off.

Bth.

Mr. JOHN C. Sim seconded the resolution.
Mr. MILLER said it had occurred to him that a
portion of the amount might have been placed to
capital.
The CHAIRMAN-It would be difficult to dissect
it. Although it might be more palatable to us, yet
we should stand worse in the eyes of the public,
who are pleased to see in the conduct of a company
a disposition rather to err on the right side than
otherwise. (Hear, hear.)
Mr. MILLER inquired what was the available
balance to the credit of revenue?
The CHAIRMAN replied, after writing off the
first instalment of £5OO, presuming the meeting to
adopt the resolution, there would stand a sum of
£964 to the credit of profit and loss, to which the
balance would now be transferred. That he hoped
would accumulate until they could say there was a
sum sufficient to make a dividend worthy of their
acceptance. (Hear, hear.)
Mr. MILLER—And what is the amount of the
unemployed capital ?
The CHAIRMAN—£3,7OO is our actual cash ba-
lance. Of course we are still carrying on the sys-
tem of laying on the services, for which £6,500 is
owing to the company, and that cost is returned to
us periodically—it is spread over three years. That
money is constantly coming in, and we are pleased
when we find the demand for new services is equi-
valent to the money which is returned to us for old
services.
Mr. MILLER inquired whether it was possible to
reduce the expenses at Berlin ?
The CHAIRMAN assured the proprietors that they
could not feel more anxious to accomplish that than
the directors themselves were. They were inces-
santly impressing upon the local committee and the
manager in Berlin to use every means to reduce the
expenses. To a certain extent they had been brought
down a little, and no exertion on the part of the
board would be wanting to effect greater saving.
With the same staff of officers they could do an im-
mensely extended business. If they had the supply
of the whole city, the staff itself would not require
to be increased.
A PROPRIETOR remarked that £l,OOO increase in
the rental appeared to him to be very slow pro-
gress.
The CHAlRmaii replied that week by week the