Now, with reference to the disposal of the profits, they would see what had bsen recommended in the report. The Direc tors liad very, closely considered tlie position of the Company—its rapidly increasing business, and its comparatively small capital for working that rapidly increasing, business.. It. was.plainly evident to the Directors that they could uot go on with the original capital, becau.se their busi ness was not at a standstill; it was rapidly in-: creasing, it waa increasing day by day audi month by month, and, with their present capi tal, they could not go.on without making a call ou the shareholders for more money. It was deemed desirable that' portion of' the profits should be capitalized, and that the balance of the profits should be reserved, the latter being ;as good as capital. This course of capitalising and reserving the profits obviated the great expense and trouble of paying dividends, and then having to make a call. He was sure that every shareholder who understood the matter would quite agree that the Directors had done wisely in taking this course of capitalising por tion of the profits and leaving the rest to re serve fuml, and a reserve fund every good insur ance office should have. He did, not know there was anything more lie could say, except that the Company was going on extending its business. He might mention that they were how in negotiation with a gentleman in Queens laud for opening an agency there, _a nd were also arranging for opening iv various other parts of Australia. 'As regarded the branches already opened, the business had rapidly ex tended. The Company still adhered to ; the policy of doing- a quiet, steady, and safe busi ness, not going in for large premiums, but sticking to the policy with which they started : "Safety" had been the watch-word of the Company. H6 should only like to say that he ; attributed, a.s he had done whan he had the •pleasure of standing in his present position be fore the shareholders previously, the steady and permanent success of the Company to the excellent officers they liad, and especially to their manager—he attributed a great amount of the success of the Company to the steady perseverance and excellent tact of their mana ger. 