Those instructions had only been iu force during the few months, ami consequently some losses* had occurred which would not have occurred bad these iustruc- • tions occurred within that time. There was every reason to believe that by this stop the directors had minimised tho losses in marine business. The Colonial Company had been compared by results with others. As a matter of fact, the Equitable was the only company started since the Colonial Insurance Company. While other companies had been able, not only to pay dividends, bat to deposit into a reserve fund, the Colouial had oommeeced business at a time when rates began to be cut down very much. The consequence was that the latter was not only unable to pay a dividend, but bad had to draw from the reserve fund. They bad. been unfortunate, too, during the past three months of the financial year. The com pany was in a first-class position four months ago, but in January, February, and March the losses amounted to £20,933, or nearly as much as the whole losses during the previous nine months. Had it not been for this, they would have paid a dividend of 10 pur cent, and carried a respectable amount to tho reserve fund. The fire losses during the. period named were £7375. He might also say that tho fire.losses were very much greater than might reasonably have been anticipated. Very heavy losses had been sustained in Auckland ; in fact a UttlewhileagoitwAsalmostimpossible to take up the papers without reading of some loss there. Invercargill had aho had a number of fires. It had been suggested that the com pany should re-insure on unexpired risks, bub it would take £14,000 or £15,000 to ro-iuMire their business ; and, besides, very few com panies adopted this principle. The Colonial Company had been iu existence four or flvo years, and bad established large agencies and paid preliminary expenses. With respect to these agencies, he read a letter received from a shareholder iu Christchurch, referring to tho dauger with which the establishing of Agencies in remote places was fraught. He would say. In answer to that, that no business was done by the compauy outside of British possessions. 