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Tous las autras exemplaires originaux sont filmis en commen^ant par la premidre page qui comporte une empreinte d'impression ou d'illustration et en terminant par la dernidre page qui comporte une telle empreinte. Un des symboles suivants apparaitra sur la dernidre image de cheque microfiche, selon le cas: le symbole —*> signifie "A SUIVRE", le symbole V signifie "FIN". Les cartes, planches, tableaux, etc., peuvent dtre filmds d des taux de reduction diffdrents. Lorsque le document est trop grand pour dtre reproduit en un seul cliche, il est tilmd i partir de Tangle sup6rieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent la mdthode. 1 2 3 1 2 3 4 5 6 I iifrmMiiovitaKmxMtMmaaKaovaKiOilimVKBaavnfiaKmKKWiiKm ia«iiBm<»Hii«naKZii9rHMHH^BW>fQfi«HD( ^ k/ ^i / r i 4 !i»a!Q8n!SIK£1 i b i ! i - L E T r E II TO TUK STOCK IIOLDEUS nv rrir. PKOMNCIAL INSi HAXCE 00. OF CAXADA, ' ^ ur A M. (VL A HK '^^4^1^ I TOTlOiSTo : MAt'LEAK \ CO., i'JllNTEKS, 17 .V i!t KiN and Atk.vson, that a Bonus of per cent, ho deolare.l ; carried in amendment for only 2^ per cent on the subscribed capital. 30th Doc 1851.-Moved by Messrs. IIowaru and PKR«i.v_That a Dividend at the rate o5/jyoHea.' i4th June (the same day).-Moved by Mr. Crawford, seconded by Mr. rEURiN— That a Dividend be declared for the half your, at tho rate of 10 per cent, per annum. The Dividend was declared, but tho proposal for tho Reserve Fund was "agreed to be further postponed." As the Board had very recently extended the business to Hngland, I was the more inipresscd with the necessity for a Koseive fund, and therefore pressed the mat- ter again on their notice, the day before I left for '^^ngland. 17th Juno, 1853.— The sulycct of tho Reserve fund having been tkea up, cue following Resolution was adopted :— Moved by Mr. At'vIM soy, seconded by W. L. Pkrrix, and Resolved— That the sum ot £2,000 (my proposo' was X3,00()) bo set apart from the Cash \ xl- ance for the creation of a Reserve fund— the same to be maintained by periodical appropriations, at the discretion of the Board. Car- ried on a division by a majority of one ! On my return from England six months thereafter, I found that the above llcsolution had never been acted upon, and no encouran-o- ment was given to re-open tho iiubjcct. In 1854, as the business ot the Company became more widely spread, and increased to such aa extent and with such rapidity, I failed not to claim the serious atten- tion of the Board to the danger of so extending the business with- out a corresponding extension of the paid up capital. This I did repeatedly, in writing from the United States, and the answer from Mr. O'Brien was, " the question is deferred lill you return." Oa my return I failed to convince the Board of the necessity of a call on the Stock, to maintain our greatly extended business, encumbered with the heavy losses of the previous year and a half ; tlie Money Market was then easy, but many saw the stringency which succeeded looming in the distance. The call would have been easily met then, but it was d' 'lyed till too 'ate. 27 th May, 18o4.— The President brought before the l?oard the necessity of an increase to the paid up capita! of the Company and a revision of the nrinciple on which 2^rofi(>< hace been hitherto declared—on wliich a Committee, to consist of Messrs. Bowes, McDonell, Perrin and Crawford, was appointed, to investigate ".ud report on the financial statement suhmHted by the President, and also to report on the state of the Office. The Report of tho Committee proposed no immediate increase to the paid up capital, which essential measure for our safety was postponed till the Money market became so stringent, that no accomo- ^ dation was to be had, and few could meet tlio call when made. Yet two half-yearly Dividends, at the rate of 10 per cer* , were afterwards made, according to the old rule of leaving nothing to cover out- standing risks. Tn reference to the Bonuses, in a faithful Report (as far as the data furnished juc were to be depended upon) of the position of the Company, which I drew up in 1855, 1 informed the Board as follows : " The present derangement in the financial statements of the Coni- " pany . clearly traceable to an error committed by the Board at an " curly period of our existence as a Compair . This error consists " of having lost sight of the principle, tlu .\ol iuras accumulated " arc not profits, until the risks on which they were paid have ter- *' minated. Instead of separating the Premiums earned from the " nn-rarncd, and striking a balance between the former only, and the " disbursements, to "scertain the profits — the disbursements were " deducted from the whole receipts of the year, and the balance thus " obtained was treated as profits, out of which large Dividends and " JJonuacs were paid, leaving the large amounts of undetermined " risks uncovered or unprotected by Premiums ! " You may think it strange. Gentlemen, that with so many Mcr. canfile men in the Board, it should have been necessary for an old Army Surgeon to instruct them as above — yet so it was ; and three days after I had submitted that report I was, without warning, ejected from the position I filled upwards of five years, during which period I had frequently received the thanks of the Board, as well as of the Stockholders. I come next to the charge of having used my official designa- tion as President of the Company, to sustain my own credit in the Money market. This accusation was based solely on an auil-.nty to one Cochrane, in February, 1854, to draw upon me r->r a fjw hundred pounds, but which had never been used — the object fc^ which the authority to draw was given having been abandoned with- out any action thereon. No suspicion existed in my mind that I had signed this paper officially, and had I done so designedly, I would certainly have withdrawn the paper when it was not required to be used. Having no evil design I had no suspicion, and in fact no knowledge of having done so. At the meeting cf 1855 this charge was brought against me by Mr. John Cochrane, who had been recently dismissed from his ugency at Quebec, by the unani- mous vote of the Board, his agency having proved' ruinous to the l^ompany. He was pleased to consider me as the cause of his dis~ mjssal and in revenge proauced the note in question, a year and a half afterztwas written, exhibiting the words '' President Provincial Insurance Company/' so like my own handwriting that in the hurry and e.e:tement of the moment, and with so slight an examination of the paper I concluded that it was so, but I have reason to doubt its uthenticity. At all events, I solemnly deny, as I did then knowledge of having so signed my name; but if it was so .•^ed I can beyond a cavil prove, that instead of supporting my own credit by the name of the Company, I was myself the c&ef'suppo ttt Company had to sustain it. ^ ^ f^nfl. H^T *^* ^''^l^^^^^^^ «t°™ «f December, 1853, strewed alon. both banks of the fcL. Lawrence a fleet of Merchantu.en, containing goods insured by v.s exceeding £30,000, the Board requested me to proceed to the scene of the disaster and do my best for the interests of the Company. The generous confidence reposed in me by such unphcit reliance on my judgment, induced me in return, to double ruy stock from £1 000 to £20,000, on the day I left Toronto J Quebec, VIZ the 14th December, 1853. This was intended as an earnest to the people of Quebec and Montreal, of the confidence I had in the stability of ^'le Company, after the extent of our losses was known to me; and what was the result ? Easy terms for the settlement of our losses, and an increase in the year's business, show- ing an increase of Premiums amounting to £89,421 , .gainst £32,008 of the preceding year; and in the year 1855 the increase rolled on till It reached, on 30th June, the enormous sum of £158 269 in Premiums. Was this upholding my own credit at the expense of the Company-or did / uphold the credit of the Company by risk- ing my own ? ^ ^ ^ A few days after the date on which my accuser charges me with !r S'i.nt '"'"'''"^ ^'''^'' ^' '^' '''' '^ "^y ^ffi^i^'l «^S"ature, I adaed £5000 more to my stock, making up the large sum I have ^Iready named, £25,000, on which I paid rp the calls that had been m_ade;-and in July l854, when evil days had come upon the institution, and the Bank we employed withdrew its accommodation and dishonored cheques for small amounts inpayment of dividends' 9 I advanced £3,000 to sustain our cicdit, at G per cent, interest, for th:cc months; and again on the 18th of December, 1S54, Avhcn unable to meet its liabilities, I advanced a further sum of £8,315 ; and on the 20th of January, 1855, the sura of £400,— all repayable at the convenience of the Companij, and bearing only G per cent., when I had investments at 15 per cent, waiting for it. I thus added to the funds of the Company during the year, £4,700 on account of stock, and on loan £11,715, making a total of 1G,415 from my own funds ia aid of the Company. xVnd in two or three weeks from the repayment of the loans, I was ejected from the Board by the stock- holders, with a stigma on my name ! I confc now to the allegation that I was the chief cause of the extension of the business to England and the United States, but especially to New Orleans. In refuting this charge, I by no means wish it to be understood that I did not gi\o my assent to the exten- sion of the business, when I happened to be present at the Board ; for I have always held, and still Iinld the opinion, that a widely spread Insurance business, especially Marine, is safer than one con- tracted within a narrow limit. But as a popular outcry was raised at that time against foreign insurance, especially American, the truth must be told, whoever told the opposite. No man will readily believe that the movers and seconders of resolutions are not respon- sible for the measures they introduce, as the authors or supporters thereof. I shall again take the Minute Book as my guide : 14th June, 1853.— Moved by Mr. Bowes, seconded by Mr. McDoxell, Inasmuch as the President of this Company hns announced his intention of visiting Europe during the present mouth, Resolved That the President be requested to visit the Agencies in England and Scotland, and authorise the extension of the business of those Agencies beyond the present limitation, as may be thought desira- ble ; and also that should he consider it desirable io extend the bun- ness of the Company to Ireland, he be furnished with all the authority this Board can give him for those purposes. No Agency was opened in Ireland. 22nd February, 1853.— Captain Weatiierley returned from New- York, and reported in favor of extending the business of the Company to that city and Wilmington.— Moved by Messrs. Bowes and Craw- ford, That the report of Captain Weatherley on the subject of extending the business to New- York and Wilmington be referred to a special meeting, to be held on the 23rd instant— [the next day.] 10 23rd February, 1853.— The report of Captain "Weatiikulev, referred yesterday to this meeting, was taken up and again read, and Capt. Weatiierley called in and consulted with. After a careful con- sideration of the whole matter referred, the following Resolution was adopted unanimously : —Moved by Mr. Bowes, seconded by Mr. Romxsox, That the President and Secretary be deputed to New- York to make the necessary arramjemenis for opening an Agency in that city; and should they find the information regarding the Wilmington Agency satisfactory, they are authorised to make the appointment ; also such other arrangem-^nts as they may consider necessary for the protection of the Company's interests there. We did not open an Agency at Wilmington. Sth June, 18a3.— Moved by Mr. Bom'es, seconded by Dr. Haves, That James Camehox, Esq., be appointed Agent of the Company at Detroit, on the recommendation of Captain Weatuerlev, and that Mr. Cameron be requested to name an Agent at Chicago. 28th July, 1853.— The report of the Secretary, Mr. O'Brien, on the subject of an Agency at New Orleans for the Marine Department submitted at last meeting, together with the notice of motion by Dr. Haves, having been taken up, the following Resolution was adopted: That Benjamin Florence, Esq., be appointed Marine Agent at New Orleans. I ivas then in England, wlicro I arrived on the ord of July 185;], and did not return to Toronto till about the 10th Xovombcr. Present at the above meeting : Mr. Bowes in the chair, Messrs. Crawford, Hayes, Atkinson, McDonell and Perrin. 23rd August, 1853.— Moved by Messrs. Cramforo and Atkinson, that Mr. Bowes, V. P., and the Secretary, proceed to New-York to make neio arrangements, and to open an Agency for the Fire Department in Philadelphia, and to make enquiry as to extending that branch to other places, Oth September, 1853.— A letter was read from Stephen R. Crawford, Esq., of Philadelphia, recommending B. Florence as Agent at New Orleans. Power of attorney to Mr. Florence waa read and ap proved. • 4th October, 1853.— The report of Mr. Bowes, and the Secretary's pro ceedings at New- York and Philadelphia, were rend and adopted and the following Rcsolulion by Dr. Haves and Mr, Crawiord Avag adopted: That Mr. Stei-uen R. Crawkord, of Philadelphia, be appointed Marine and Fire Agent, in room of Mr. Waterman. 11 Y, referred , and Capt. fireful con- Resolution conded by deputed to an Agency Eirding tbg I make the y consider hero. VES, That mpany at , and that N, on the partment notion by ition was d Marine of July, ovcmbcr. Messrs. SON-, tliat : to make partment t branch ;AwroRn, t at New and ap •y'8 pro idopted ORD AVag ihia, bo AX. Mr. Waterman had been appointed by Staiibuck, the Agent at New-York, and confirmed by the Board. 11th October, 1853. — Moved by Dr. Hayes, seconded by Mr. Perrin that Fire business be added to the Marine, at New Orleans, under Mr. Florence. 22nd November, 1853. — The sum of £200 was ordered to be paid to Mr. Waterman, as compensation for his loss and inconvenience, in hav. ing been superceded as Agent of the Company at Philadelphia. Gth December, 1853. — Moved by Mr. Bowes, seconded by Mr.CRAwroRD That the New Orleans Agency be termed a Branch, instead of an Agency. Gth February, 1854. — On motion of Mr. Bowes and Mr. Crawford, the President was requested to proceed to Chicago to appoint an agent there ; also to visit Cleaveland and the other postf on Lake Erie, and \i deemed advisable by him, to make arrangemeuts for agencies of the Company at such places, to do so. No agents except one at Cleaveland were appointed by me. 27th May, 1854. — On motion of Messrs. Bowes and Crawford, agents were appointed at Boston and Louisville. 28th July, 1854.— Moved by Mr. Bowes that Messrs. Hubbard and Hunt be appointed our agents at Chicago. ' It is thus clearly proved that in the extension of the business to parts out of Canada, I am no more answerable than any other member of the Board. There was not a single division amongst us on the subject, and in the extension of the business to Philadelphia and New Orleans, I had no share, being in England at the time. For every appointment made by the Board, the V. P. Mr, Bowes gave his zealous co-operation, and to him alone belongs the merit or demerit of the Agency at New Orleans. Had he not reported in favour of it, along with Mr. O'Brien, it in all probability would never have been established ; at all events I have been wrongfully accused on this head, by some members of the Board. To shew that the Board was not inattentive to the working of these foreign agencies, j^fior to the Annual Meeting of 1855, it is only necessary to t'Sqt to the Minute Book. 30th Aufust. 1854. — Ordered that the agencies of St. John's, N. B., and at Portland be closed. Ut September, 1854. — Charlotte Town, Princt Edward's Island Aj^encj dosed. fl , { 12 lOlh January, 1855.-Fire b™iness dl^conllm^d at sYm Orkms. Boaul. Ihc bad posU,o„ of tl,o business at Uoston was also prohi- b,tod, and only the best retained, and tl,e agents at Q.u-w! n„ ioric and rb,l„de phia, wore removed. Tbo Glasgow „d i:„cr„a agenoios m Great liritain were also ct