The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1878-03-30
Liverpool and London and Globe Insurance
Company.

We have received, in a very elaborate, printed
circular, the Report of the Directors of the above
Company, to the 42d Annual General meeting.
held at Liverpool. Feb. 22d. The Report makes
a very excellent showing, as can be gathered
from the following extracts from the remarks of
the Chairmen of the Boards of Directors of Liver
pool and London respectively, which we append {:
The Chairman said At the end of 1876 the
balance to the credit of profit and loss Was el50,-
987 les. I'd, out of which the dividend and bonus
for the year. rs. per share, were paid, absorbing
e73,692, and leaving a balance of undivided pro-
tit at the beginning of 1877 of Ell, 295 los. I'd.
The profit on the fire business of 1877 has been
eI8S, Gal 6s. sd, and the interest and dividends
not carried to other accounts have amounted to
Ell. S67 5s, making a total credit of G3S7 ,S04
Is. I'd. Out of this have to be taken the amount
to be paid to the Globe annuitants, namely,
$40, 005 lis. and the loss in the exchange be-
tween the United States and England, 1861 l4s.
8d-together Esq ,663 lis. 3d., leaving to be dis
posed of 1885 ,l40 l5s. lid. (Hear hear.) OF
this amount there has been carried to the reserve
fund Gl5O.O 900, and the dividend and bonus pro-
posed, las, per share. would absorb e65 ,974,
making together G235 ga. and leaving to the
credit of profit and loss G99, l66 los. Sd. The
reserve during the year has been increased by
Gl5O.OOO, and now stands at FL, $50, 900. The
invested funds have been increased by e320,-
1872 lis. I'd and now stand at e5. 914, 800 is.
(Hear. hear,) | think these figures speak for
themselves, and l simply now beg to move the
resolution l have read
DIT CudTieS INlCuOlSOu. chairman OF the London
Board of Directors, remarked - that, after the
significant and eloquent figures which had been
quoted by the chairman. 1t was scarcely necessary
that he or any one else should enlarge upon the
report which had been presented to them. Their
position at the present time was one of unpar-
alleled prosperity, so far as their own history
was concerned. Alike as to the stability of the
institution. the extension of its business, and the
enlargement OF It's profits. they had grounds for
unqualified satisfaction. (fear. hear) He said
that most advisedly. so far as his experience of
the character of the institution, the nature of its
Investments. and the character of its business
enabled him to form an opinion. Much of the
prosperity OF the company was no doubt due to
the very able executive management of its affairs.
Their business was enldrging. and. notwithstand-
ing the large exceptional loss of eI000. 900 which
they suffered IN consequence Of the fire at St.
John. New Brunswick. their position this wear
history of the company. (Applause.) Some per
sons might think that II they had committed an
error, or, rather. If their very able representatives.
the board ut Liverpool. had committed an error
at all, it was in providing for too large an amount
of reserve fund. He. however. did not concur
in that idea. He thought the course which had
been pursued. and which il was intended. as he
understood, still to follow. was one of "a truly
conservative and most beneficial character. and
was calculated. perhaps at the sacrifice of some
small amount of dividend annually. to improve
the value Of their property. to give them in
creased weight with the public. and in every way
to make their position as satisfactory as it could
possibly be rendered. (Hear, hear.) With re-
ference to maintaining a large reserve. they must
recOllect the character of the company, to which
no doubt it owed much of its prosperity, but
which entailed upon them the necessity of great
caution and foresight IN the administration of
its affairs. They must recoIlect that it was a
company which entaiIed unlimited responsibility
upon every shareholder connected with it. For
that reason il was most desirable that they should
so fortify themselves with a large reserve fund
that in the event of any unforeseen calamity,
any very great loss or succession of losses, occur
ring, they would be able to fall back upon the
reserve and carry on the institution, maintaining
and equalising their dividend in a way they
would not be able to do unless they have such a
reserve. He could say no more, except that he
joined in the feeling of exultation which they
must all experience at the prosperous condition
of the company. He believed that never during
the long period of the company's existence had
directors met under happier auspices than they
did that day"