He might mention as a matter of gratification that, out of a possible loss of £2750—that which recently occurred—they could not lose more than £700, so that the Company altogether had been blessed with very good fortune in its ramifications in tile business of its branches throughout the Colony. He moved the adoption of the report. Mr' Reeves: I suppose, liefore the report is adopted, it will be the correct time to elicit information, if desired ? The Chamman : Certainly. Mr Kkeves said he saw in the balance-sheet the item, " Balance at Branches and Agencies, £11050 lls Sd," and also the item, " Bills pay able, £0511 7s lid"—the former under the head of assets, the latter under that of liabih" ties. He would ask: How did it hap:.eu that so large a sum should remain in the hands of the agents and in the different branches, while there were liabilities to such an exteut in bills? '

The Chairman mentioned that the Directors had had their attention called to this matter before. He might explain that the greater part of the sum mentioned was in the Australian agencies. They must; understand that it was not money actually in the agents' hands ; it was, he might say, composed of book debts— that was, of money owing, but not paid. Of course, it was always necessary that a, sum should remain in the hands of the agents in Australia and distant places, but no such sum as £()500 was actually cask in hand. He might say that the Manager had written to the agencies, requiring them to keep their accounts as closely up to date as possible, and the Direc tors were fully alive to the necessity of getting their moneys in to obviate the necessity of inte rest. Since the date of the report, a large amount had come in. He might explain that m Australia, the terms were three and four months' credit, and this Company had there to do the same as the other Comiwnies. It mi .lit be satisfactory to the shareholders to know that the whole of the Company's officers and agents in foreign parts had given ample security for their fidelity in their several offices. Mr Walter: Has the practice been intro duced in Dunediu of taking bills for insurance The Chairman replied in the negative. 