T

THE RIVIERA.

renew

up

Several clubs have been opened, and those who do not care to join them can find every distraction they require either at the HF season in the South of France has become extended in Municipal Casino on the Place Masséna or at the sister-establishproportion to the growing popularity of its centres of ment built out over the sea and known as the "Jetée Promenade." health, amusement, and fashion. Those who can afford The latter place is at the commencement of the Promenade des the leisure to spend the whole winter there are more disinclined Anglais, which has been extended on either side and joined to than ever to risk the vagaries of our spring until the Merry Month the Promenade du Midi, reaching as it were from the harbourhas come; those who have been detained through the long to the racecourse on the banks of the Var. Houses and villas depressing winter seize any opportunity to link their Nice with Monte Carlo, accessible by train within the experience of the joys of sunshine by passing April under the half-hour or by tramway along the lower road passing through perfect conditions which are practically insured on the Riviera. Villefranche, Beaulieu, and Eze. Villefranche, with its magnifiEverything is made so easy for these short visits. The journey cent harbour, its quaint old town, and government dockyard, is represents the maximum of comfort in travelling. From the worthy a visit, for on the other side of the bay, which serves as moment of leaving London by one of the South-Eastern and anchorage for the fleet and as port of call for more than one Chatham's Continental expresses the holiday spirit begins. American liner, bringing a full complement of visitors to the There is an exhilaration in the swift onrush, the sense of ease Riviera, lies Cap Ferrat, where the late King Leopold of Belgiumwhich the luxurious surroundings foster. There is the short built his winter residence and bought land as a remunerative Channel transit, where again every provision which can make for speculation, forming one of the beauty spots of the coast-line case or can abate the risks or miseries of seasickness are found of the Mediterranean. Round Cap Ferrat to Saint-Jean is a on the magnificent steamboats of the company. From the pleasant walk leading to the new and fashionable settlement of French capital to the end of the journey, the Paris, Lyons, and Beaulieu, where hotels and villas have been built. Mediterranean Railway make everything easy, providing all the comforts of a hotel on wheels, so that the traveller wakes up refreshed to the first experiences of sunny skies and warm breezes. The one difficulty of course is to make a choice from half a dozen places which offer about equal attractions. By what process is one to select from such a list as Cannes, Nice, Monte Carlo, Mentone, Bordighera, and San Remo, to name only a few? In most cases proximity to the Casino decides the choice. Nevertheless there are increasing numbers who resist the magnet and put normal pleasure before excitement. To this considerable minority Cannes makes a strong appeal. It is of course within an easy motor journey of Nice by motor-car, tramway, or train, and within an hour's journey from Monte Carlo. To English enterprise is due the position Cannes has obtained as one of the favourite stations for yachtsmen who winter on the MediterA further step enhancing the cordial relations sought among those who visit Cannes has been made by those who promoted the building overlooking the harbour which unites all sorts and conditions of men in the handsome Municipal Casino placed under the management of M. H. Ruhl. He has provided attractions in the shape of concerts and theatrical performances. The Casino has its own private club. The dining and luncheon rooms, with a splendid sea view warmed by the bright sun, are exceedingly well patronised, and the five o'clock tea has become one of the most brilliant functions of that town, which could hardly be recognised under its pleasant social conditions and up-to-date aspect by those whose memories can take them back half a century. Now one might say that Cannes is the beginning of one long street leading to the frontier where the mountain torrent of Saint-Louis divides France from Italy. The French and Italian Alps, crested with snow, shut out all winds which blow so coldly in the north. The entire aspect is a southerly one, and those who are wont to bask in the sun remind one of the Sybarite and his crumpled rose-leaf when they grumble at the occasional mistral blowing across the snow-capped mountains of Corsica and driving them under cover for an hour or two. There is a tramway running from Cannes to Antibes and thence to Nice through places where the enterprising builder has been strongly in evidence, discounting the patronage which time would bring to such a favoured spot. Golfe Juan is the favourite anchorage of the French fleet, and then at Cagnes, close to fields and fields of sweet-smelling violets being grown for the Paris market and for export, the Nice Golf Club has established itself on one of the best links outside of the home of the royal game. In the direction of Nice on the banks of the Var is the racecourse, where international sport commences under the rules of the French Steeplechase Society early in January and is continued later under the auspices of the Trotting Society and then under those of the French Jockey Club, which only lends its countenance to flat-racing.

ranean.

Nice, with its hotels, its Promenade des Anglais, its Jardin Public, and all those institutions, has brought within its gates a cosmopolitan gathering. It may be said that Nice in its magnitude offers accommodation for every purse. Notwithstanding the hotels, palaces built on the American system replete with every comfort answering every requirement of the rich visitor to whom money is of little import providing that the maximum of comfort can be obtained in return, there are boarding-houses, "pensions de famille," and hotels of every class suitable to moderate purses, giving a denial to those exaggerated reports made from time to time of expenses incurred for a winter stay on the Riviera. The cost of living is even less than in London or Paris.

Mentone is the home of the lemon and orange. Legend says that Eve, when driven from the Garden of Eden, plucked two lemons and, finding them in her hand when she had been expelled from her earthly paradise, promised to bestow them on the land One is said to have been sown she most admired in her exile. in the fertile soil of Mentone, where lemon groves covered the plains which have now been annexed by the speculative builder. Mentone was a formidable rival to Nice half a century ago, when those who were suffering from lung affections wintered on the Riviera, strolling on a fine sunny day into the pine woods of Cape Martin or spending their time on the garden seats the municipality had placed along the promenade in the wind-sheltered bay appropriately termed "Garavan." Mentone is a large town. Its visitors and winter residents have been amply catered for. Handsome hotels have been organised, sufficiently patronised to enable mine host to pick and choose his guests, and house-agents have a busy time in November when endeavouring to suit their clients with villas to be let furnished. There is the old and the new town. The long promenade which stretches along. the seafront, the public garden where the band plays for the morning and afternoon lounge, are well cared for and attended to. The unsightly mountain torrent which disfigured the Avenue de la Gare has been converted into a well-kept garden, bordered with orange trees, and is fully appreciated by the public. Efforts made to accomplish a cordial understanding among those who have selected Mentone as a place of winter residence have been completed through private initiative resulting in the opening of a municipal casino built in the broad and handsome avenue which leads from the railway station to the public gardens.

It is the club and restaurant par excellence of the cosmopolitan patrons of Mentone. It contains a theatre, concert hall, private club, restaurant, skating rink, bowling alley, and everything has been done by the management to make it as complete as possible and thoroughly up-to-date. Mentone has not been behindhand in providing recreation. It has its lawn-tennis and its golf club, where there is "baccarra" in the private club, as also the wellpatronised "boule" in vogue at Nice, as well as at most thermal stations and seaside casinos in France. Mentone is the centre of a number of pleasant mountain excursions, and was chosen as the temporary residence of the late President Krüger, who dis covered that the Republic of France was more salubrious than that of the Transvaal. Mentone is the extremity of the French Riviera. A few hundred yards up the hill of Saint-Louis from Garavan stand the French and Italian Customs officials guarding the frontier dividing France and Italy. Then through olive gardens and highly cultivated patches of land producing flowers and early vegetables visitors reach La Mortola. The old palace of Orengo with its rare gardens has been restored and is on certain days thrown open to the public through the courtesy of the owner, Sir Thomas Hanbury. It is replete with historical reminiscence, as at one time tenanted by the famous Machiavelli.

San Remo offers many attractions, with its handsome shops, its pleasant and multiple excursions, its proximity to Monte Carlo, its tennis and golf clubs, and the new casino, opposite the railway station, in the very heart of the town, including a private club. Special concessions have been made by the Italian Government in view of the great success obtained by those who transformed the barren rock of Monte Carlo into one of the sights of the world. The latter spot has however no rival in reality. Its organisation, situation, and climate are second to none. It remains the Queen of the Riviera.

Ο

MOTORING.

N the first day of real spring weather we have been Mr. John Lane's New Books

favoured with in this year of grace I accepted an invitation from Mr. Hely, the active manager of Messrs. Straker-Squire, Ltd., and thoroughly enjoyed a glorious run in glorious weather on a glorious car. This was one of the 1914

models of the famous "S.S. 15's." I had almost described it as a "new" model, but that would not be quite correct. Confining themselves, as they have done for the last seven or eight years, to concentration on one type and power of engine only, the Straker-Squire people have further adopted the very excellent practice of incorporating any little improvement which may be suggested by their own experience or that of their clients the moment such suggestion has been tested and found to make for still further efficiency; and I am free to confess that of all the cars of reasonable power-reasonable that is in economy of first cost and running expenditure combined with ability to negotiate the most vexatious heavy traffic or the steepest gradients without reference to the change-gear lever-the StrakerSquire comes easily first.

On the occasion of which I am writing we carried five up, three of the party being well over 12 st. in weight and the other two between 10 and 11 st. each. Nevertheless we made a nonchange trip through Richmond and Kingston to Esher, and from there to Ripley, Oxshott, Leatherhead, and Cobham, back along the Portsmouth road through Putney to a Strand hotel with the greatest ease and comfort. Perhaps the most remarkable and outstanding feature of the "S.S. 15" is the sense of power abundant for all emergencies which it conveys, while its extreme quietness, coupled with an admirable flexibility of engine and springs, render it a veritable car de luxe for non-millionaire members of the motoring community.

It will readily be admitted that the chief object of all improvements on the pneumatic tyre are, first, the prevention of accidents caused by bursts; and, secondly, the reduction of expenditure in connection with tyre repairs and renewals. Any practicable invention which accomplishes these desirable objects must perforce appeal very strongly to the whole motoring fraternity. I recently had an opportunity of examining a tyre which is claimed to be indestructible, and which certainly appeared to me to possess potentialities unequalled since the epoch-making introduction of the air-inflated tyre a quarter of a century ago. This tyre, which I understand will shortly be placed on the British market, is the outcome of some five years of painstaking and exhaustive experiment by a French engineer, M. Edward Robert Devereux, who has tried it under the most severe conditions on roads purposely strewn with sharp flints to induce puncture, after which the car continued running with no appreciable difference or diminution of the comfort of the occupants. The basic principle of M. Devereux's tyre is that of sectional construction, the number of segments being from eight to eleven according to size of wheel circumference, each section being completely self-contained and independent of its neighbour. This, as I noted, confers the advantage that should a puncture be sustained on any one section the escape of air there from makes very little difference to the smoothness of the running, as, the other sections remaining quite sound, the faster the car is actually driven the less is the deflated part noticeable. Each segment forms, an independent hollow body, with an inlet for the air on its upper side, which is closed by means of a rubber tongue acting as a valve. Whenever a section is being inflated the pressure is sufficient to force this valve down and keep it open, while directly pumping ceases the valve closes automatically, the air inside pressing the tongue against the inlet in such manner as to prevent any leakage. In order to allow of all the sections being inflated simultaneously the inner circle of the wheel is fitted with a continuous hollow steel rim having flanges underneath which keep the segments in position. In this hollow rim are holes corresponding in size and number to the air-holes of the segments and fitting exactly over them. When therefore air is pumped through the nozzle of the rim it first fills the rim and is then forced through the various holes into all the sections at the same time until the whole tyre is inflated. One other point is worthy of note, and it concerns an ingenious device consisting of rubber ribs at the two abutting ends of the segments, which not only strengthen the tyre itself and the ends of each section, but in the case of deflation by puncture these ribs are pressed together and act then as a solid-rubber tyre, thus preventing the complete collapse of the segment punctured.

If the introduction of the Devereux divisional tyre to the motorists of this country be not fraught with abundant benefits, to the private-car owner more especially, I shall be greatly surprised.

D. M.

With the Russians in
Mongolia.

By H. G. C. PERRY-AYSCOUGH and R. G. OTTER-
BARRY. With an Introduction by Sir Claude MacDonald,
G.C.M.G., K.C.B., &c, and 50 Illustrations from Photo-
graphs. 16s. net.

Sir HARRY JOHNSTON in the Westminster Gazette:-
"I doubt if I ever read a more interesting and enlightening
book on Central Asia."

On the Left of a Throne.

By

A Personal Study of James, Duke of Monmouth.
Mrs. EVAN NEPEAN. With 36 Illustrations, many
from Contemporary Portraits never before reproduced.
10s. 6d. net.

"Imbued with all the charm which springs from a subject which has evidently interested the writer. . . Enriched with admirable illustrations."-Daily Express.

Napoleon at Bay: 1814.

By F. LORAINE PETRE. With Maps and Plans. 10s. 6d. net.

A wonderful story a serious study of a great masterpiece in the art of war."-Globe.

The Tower of the Mirrors,
and Other Essays on the Genius of Places.
By VERNON LEE. 3s. 6d. net.
"Lightness, dignity, good sense, and consummate art."—
The Times.
"Spiritual and tender. A delightful book."—
Daily Chronicle.

W. J. LOCKE'S

NEW NOVEL

SOME STRIKING PRESS NOTICES OF

THE FORTUNATE
YOUTH

Times:- -"Will delight his many admirers."

Morning Post:-"Never has Mr. Locke displayed his gifts to more attractive advantage."

Daily Telegraph :-" Art of narrative, perpetual play of pretty wit, felicitous epithet and epigram, and general distinction of style."

Pall Mall Gazette :-" Delightful romance. The author's humour, like his charity, never fails us."

Evening Standard :-" We read on and on with rejoicing interest."

World" The fine qualities by right of which Mr. Locke stands in the forefront of the novelists have never revealed themselves to greater advantage. Great charm . . . Depth and beauty of thought."

Daily Express :-"Uncommonly pleasant reading."

Mr. Lane Announces for Publication upon
APRIL 3rd

THE TREND

A New Novel by
WILLIAM ARKWRIGHT,
Author of "Knowledge and Life." 6s.

"The Trend" is a fascinating romance which tells of the
discovery of musical genius in a street singer by a celebrated
composer, who undertakes his education. The gradual develop-
ment of the lad's reasoning powers is depicted with the greatest
insight, and the dramatic scene of the debut is presented with
masterly skill. The climax is most thrilling. Mr. Arkwright's
exceptionally distinguished style and powers of characterisation
which won such high praise for " Knowledge and Life
again strongly in evidence.

are

JOHN LANE, THE BODLEY HEAD, VIGO ST., W.

THE

INSURANCE.

HE connection between the crisis in Ireland and insurance is not perhaps very obvious. Yet it is safe to say that nothing is better calculated to bring to the public mind the part which insurance plays in the economy of modern life than the announcement of the effect of the Government's "precautionary" movement of troops-in itself, if we might take their word, an act of insurance, which is essentially precautionary. Whenever there is risk of disturbance up go insurance rates on property which may be within the zone of trouble. It was so at the time of the riots in Johannesburg; it is so now in Ireland. Insurance is an index to the apprehensions of those on the spot. When insurance rates in Belfast on private houses were rushed up in a day or so from 15s. per annum to £1, and when £3 per cent. was demanded on certain shops, whilst no quotation at all could be obtained on provision merchants' premises, we got a pretty strong clue to the anticipations alike of those who would be protected and those whose business it is to afford that protection. Thanks to the bungling of the Government, the underwriters have made a quite respectable profit, and per contra the payers of premiums have been victimised.

An accident insurance office with a premium income of over £2,000,000 per annum would a very few years ago have been regarded as almost an impossibility in this country. Yet in 1912 the Ocean Accident and Guarantee Corporation exceeded the two million sterling figure, and in 1913 it went ahead still farther. That is a remarkable record, and we have Mr. Roger Owen's assurance that it has not been obtained and maintained by any departure from the conservative underwriting to which the stability and progress of the office have hitherto been due. Insurance enterprise indeed, notwithstanding ever-growing competition, tends to favour more conservative methods every year. Valuations are generally more stringent, stocks and shares are written down but never written up, and allowances for outstanding claims are on a more generous scale. The Ocean Accident shows, for instance, an advance of 2 in the percentage of compensation paid and payable-from 50.58 to 53.08-on its premium income. The explanation is that the directors, in view of the increasing costliness of accidents, like everything else nowadays, deem it wise to make larger provision for outstanding claims an item which should always be noted in insurance accounts. No great individual calamity occurred in 1913, yet the Ocean Accident paid away £1,140,000 as compensation for accidents. The results secured by the office appear all the more remarkable when we note some of the figures, especially in connection with Workmen's Compensation. Since the Act of 1907 was passed an aggregate expenditure of over £300,000,000 has been covered; and there have been 202,000 accidents to employés, an average of no fewer than ninety-six per day, to be dealt with. Such figures make it easy to understand why some offices have been badly hit in their operations under the Act.

INSURANCE OF BUILDINGS AND CONTENTS.-TO OWNERS
OF PROPERTY, TRUSTEES AND SOLICITORS.

MANY BUSINESS PREMISES, TOWN RESIDENCES, COUNTRY MANSIONS,
FARM BUILDINGS, &C., ARE DANGEROUSLY UNDerinsured.

THE

PRESENT INCREASED COST OF BUILDING IS OVERLOOKED AND THE
NECESSARY REVISION OF POLICIES NEGLECTED.

KNIGHT, FRANK & RUTLEY

Offices: 20 HANOVER SQUARE, W.

A misapprehension to which Mr. Owen drew attention is no doubt more general than is desirable. Apparently many householders and shopkeepers are under the impression that with the passing of the National Insurance Act the necessity for taking out or keeping up policies under the Workmen's Compensation Act ceased. The idea is entirely erroneous, and the fact cannot be too widely known if loss and inconvenience are to be avoided. Another point is as to burglary insurance. It seems that 1913 was prolific in housebreaking, and this development was accompanied by disquieting evidence of new and more skilful methods adopted by the burglar. He used to carry on his nefarious work in a slipshod way, more frequently leading to discovery and arrest. prepare reports for the protection of Owners in all parts of the Kingdom. To-day insurance experience goes to show that he is much more artful, and his methods, according to Mr. Owen, are giving considerable anxiety to offices which issue burglary policies. "A fire devours good and bad alike and the salvage may be the most valuable part of the property, but a burglar who gains access to a house picks and chooses and that with very great discretion." In its foreign and colonial department the Ocean Accident shows progress, but for some reason which is not quite clear the American side of its business is not as profitable as it should be. Mr. Owen complains of the amount which is paid away every year in "Government taxes, home, foreign, and colonial." Last year the amount was £50,311. It is not, he says, always realised what a large proportion of an insurance company's expense ratio goes in taxation. It would be interesting to have a statement of the proportions respectively of home, foreign, and colonial imposts which the Ocean Accident has to bear. The foreign and colonial, we imagine, far outweighs the home. Last year the office paid away in taxation over 18 per cent. of its profits; the amount was certainly excessive.

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COMPANY MEETINGS
AND REPORTS.

THE LONDON ASSURANCE.

THE Annual General Court of the London Assurance was held on Wednesday last at 7 Royal Exchange, under the presidency of Mr. William Thomas Brand.

The Secretary (Mr. C. A. Denton) having read the notice convening the meeting,

The Governor said: I have to express the deep sorrow of the board at the death of our late senior director, Mr. Kendall, who had been a member of the board for nearly forty years. We all regret his death very much. The accounts are again very satisfactory, and all show a steady progression, except in the premium income of the marine account, which has been slightly curtailed. The settlements so far on the 1913 account are considerably better than were those of the 1912 account at a corresponding period.

In cur life business the premium income for the year is again the largest we have ever had. The amount of the life assurance fund on December 31 last was £2,640,186, against £2,580,123 on December 31, 1912, and the increase has been arrived at after placing £52,000 to an investment depreciation account, which represents the depreciation or our life investments since December 31,

our 20 per cent. dividend and income tax, we shall carry forward £65,725. And so, I think, we can again congratulate ourselves and cur staff on the results of the past year, and I may point out to you that our assets now amount to £5,219,955, having exceeded £5,000,000 for the first time.

The Governor then proposed, "That the report, accounts, and balance sheet be adopted, and that, in accordance with the recommendation of the Court of Directors, this Corporation do pay a dividend of £2 10s. per share, free of income tax, to the members of the Corporation in respect of the profits of the year 1913, and that such dividend be payable as follows-1 5s. on April 1 and £1 53. on October 1.

Mr. Colin Frederick Campbell seconded the resolution, which was carried unanimously; and the retiring directors and auditors were re-elected.

The Governor : Before we separate I should like to propose a vote of thanks to the New York Committee; Mr. Clunes, the fire and life manager; Mr. Nicholls, the underwriter; our secretary, Mr. Denton; Mr. Hemming, the actuary; Messrs. Chubb and Sons, our underwriters in New York; Mr. Case, our New York fire manager; Mr. Thornton, cur fire manager on the Pacific Coast; and our staff here and abroad.

Mr. Robert Henry Benson seconded the motion, which was carried unanimously. The meeting closed with a cordial vote of thanks to the chairman and the directors on the motion of Sir A. N. Wollaston, seconded by Mr. S. K. Davis.

1912; but if the price of investments improves we hope we shall ANGLO-RUSSIAN TRUST, LIMITED.

be able to return a part, or the whole, to the credit of our life fund before the next quinquennium; but even in spite of that we still show an increase of £60,000 in our life fund. The net premium income for the year was £206,559, against £198.404 in 1912; and interest £109,132, against £103,753 in 1912. The rate per cent. earned was £4 4s. 6d., against £4 38. 3d. last year and £4 2s. 6d. in the previous year. These figures are all record ones for the corporation. The claims by death occurred under 188 policies for £126,207 net, against £143,417 in 1912. The death rate has again been satisfactory, the expected deaths being 198, while the actual deaths were 153, the percentage of actual to expected deaths being only 77.3. We carry £15,000 from our life fund to profit and loss, being the proportion due to the shareholders.

Our fire business has been very satisfactory, although not quite e good as in 1912. The premiums for the year amounted to £695,146, against £681,140 in 1912, the premium being again a record figure. The results show a profit of £95.596, to which has to be added £24,507 interest on the fire fund, making in all £120,104 to be dealt with. Of this profit we transfer £70,104 to profit and loss, leaving the fire fund standing at £750,000, an increase of £50,000 in the year; and I am very pleased to say our fire fund of £750,000 now stands at the same amount at which it stood at the commencement of the year of the San Francisco fire, although, of course, our fire premium is considerably larger than it was then (£561.603). The loss percentage last year was 46.80 per cent., against 44.29 per cent. in 1912.

On the marine account our premium is lower than in 1912. being £395,094 in 1913, against £424,155 in 1912, a decrease of £29,061, owing to the fact that our underwriter preferred to curtail his risks for the present. The profit for the year 1912 on our underwriting account was £24,083, which, with interest on the marine fund added, brings the profit for the year to £36,513, on which we must, I think, all congratulate ourselves and Mr. Nicholls, for, although it is not so large as the profit of 1911, it will be remembered that in 1912 we had the Titanic disaster, which cost the Corporation £32,436. We transfer from the marine account £37,049, leaving the marine fund at £420,000, against £400,000 brought into the account. The fire and marine funds now stand at £1,170.000, against £1,100,000 brought into the account on January 1, 1913. or an increase of £70,000 in the year. As to the year 1913, it is far too early for me to attempt to prophesy accurately, but our settlements on that account were 30 per cent. in 1913, as against 364 per cent. on December 31, 1912, on the 1912 account, so that the outlook is at least hopeful.

THE Fourth Ordinary General Meeting of the Anglo-Russian Trust, Limited, was held on Tuesday last at Winchester House, Old Broad Street, E.C. Mr. Charles Birch Crisp. (chairman of the Company) presided.

The Chairman said: I would like to remind the shareholders that when this Trust came into existence, four years ago, it had three main objects in view: First, to popularise Russian securities and to encourage the investment of British capital in Russia; second, to working in association with other groups to impart steadi ness to the market in general for the bonds in which the group would be interested; and, third, to earn dividends for the share: holders. I believe that the first point has been fully gained. In the course of five years there has been a remarkable revulsion of feeling as regards Russia and Russian securities. It may be that we have succeeded so well as to have overdone the part, because to-day we have many competitors in the field instead of an army of critics not sharing those views which we came into existence to preach. As to the market for the bonds with which this Trust and the group working with us are particularly identi fied, I fear no contradiction when I state that throughout the year 1913 those bonds maintained their position to an exceptional dezreo. I have reason to believe that that class of security is in favour with investors to-day, largely because it is realised that those bonds are not subject to violent fluctuation, and may be relied upon to hold their own, to be a free market, and to be subject to far less danger of a fall than many other securities. As to dividends, this is the first report in the history of the Trust which has brought disappointment to the shareholders, but there are sufficient reasons for the reduction of the dividend. From the beginning to the end of 1913 there was trouble-trouble of a nature that I need not stop to particularise. Throughout that year the cost of money, as determined by the Bank rate, was £4 153. 44. per cent. In the year 1912 the average Bank rate was £3 15s. 7d. per cent. This Trust is at times a large borrower of money, and for the greater part of 1913 the rate of interest payable upon borrowed capital was not less than 5 per cent. To-day the rate of interest payable on loan capital is no more than from 3 per cent. to 3 per cent. You will therefore see that under that head alone the Trust was greatly handicapped. I think it will be generally felt that the year 1913 was peculiar, and that such adverse circumstances are not likely to recur. There was, how ever, another important factor which had a large bearing upon the results of the year's working. The Trust, looking ahead, saw that new competition, and perhaps powerful competition, was entering the field. It determined, therefore, to concentrate its efforts upon that class of business to which it attaches the greatest importance.

Our leasehold and redemption account comes next in our balance sheet. We began the year with a balance to its credit of £6,766, our premium was £2,523, and interest £236, and we begin this year with a balance in the account of £8,293, an increase of £1.527, and we leave the account to grow. Our accident and other accounts The amount of investments taken at middle market price, with have again shown steady progress. We brought into the account the exception of shares of the value of £4,702, is a little in excess £23,390, our premium income for the year was £15,607, and interest of the corresponding item in last year's balance sheet. Those £836. The premium for the year increased by £1,516. We only do a investments yield to the Trust an average return of £5 11s. 4d. small and careful business, but it is profitable, and, for the first per cent. You will, therefore, see that the Trust is in the enjoytime since we commenced, we have carried a portion of our profits-ment of a very large revenue, entirely independent of profits to namely, £10,000-to profit and loss account, leaving in the account be derived from the issuing business. £20,652, which is more than ample to cover all risks, for as you Continuing, the Chairman said: An extraordinary general meetwill see from the accounts 50 per cent. of our premium income, saying is to be held later to consider an extension of the borrowing £7,803, is considered enough to cover our outstanding risks.

And now we come to our profit and lose account. From 1912 we brought in £161,837. During the year we have paid 20 per cent. dividend £89,655, and income tax £6.541. We bring in amounts from various departments-namely, life, £15,000; fire, £70,104; and marine, £37,049; accident and other accounts, £10,000; general interest, £39.685; and transfer fees, £38. We now propose to transfer £50.000 to the general reserve, making it £450.000; and to write off £25,000 depreciation and loss on our general investments, as I warned you last year we should probably have to do. The past year has been one of the worst known for depreciation in giltedged securities for the past forty years or more. I am glad to say, however, that as a large proportion of our securities have a due date to them, this depreciation may be recovered if they are held until they become due. When during the year we have paid

powers of the Trust. The directors in asking for powers to the amount of £2.000.000 do not propose to exercise them beyond the issue at some future date of the balance of the debentures already authorised. The debentures authorised were for £1.000 000 and the debentures contemplated under the resolution are £1,000,000. of which £500,000 have been issued. A technical point arose which required that this resolution should be passed. At the date of the balance sheet the Trust was indebted to an amount of £500.000 borrowed capital. To-day that amount had been reduced by nearly £100.000, and there were £500.000 of debentures outstanding. If it were desired to issue the balance of the debentures on the day when the trustees sanctioned such issue the borrowing powers of the Trust would have been exercised to the amount of, say, £1.400.000. That the directors proposed to issue the debentures and to pay off the floating debt with the proceeds thereof would