REPORT OF THE SUPERINTENDENT.   xxix

"Date, (late of maturity, place of payment of principal, rate of interest, how payable, i. E., yearly or half yearly, elate and place of payment of interest, market value at time of application for acceptance, and, if not quoted in the market, the price at which purchased by the company and date of such purchase.

".Aso, as regards municipalities whose bonds or debentures are offered :

" The population, assessed value, rate of taxation, assets, total debenture indebtedness, and all other liabilities, income and expenditure for the last fiscal year, and any other details in the possession of the company which would be of assistance in determining the value of the securities offered for acceptance.

The Board desire to be in possession of all possible information in relation to such securities in order that they may be in a position to give the matter proper consideration. " (T. B.. Nov. 9, ] S8S. )

Railway Debrntroa .—" The Board are of opinion that they cannot accept as a deposit, the bonds of any railway company, unless guaranteed directly or indirectly by the Canadian Government. " (T. B., Oct. 27, 1599.)

Loan Gem pa ni n' Bonds.—"The Board had under consideration a uneumrandum from the Superintendent of Insurance with reference to the application of the Land Mortgage Companies' Association of the province of Ontario to have the debentures of loan companies accepted by the Government as deposits on behalf of insurance companies, in which the reports that the said Association is composed of incorporated loan companies or societies authorized to lend money on real estate in the province of Ontario, and all such companies or societies are eligible for membership upon payment of certain fees ; that the loan companies which compose the said Association may be divided into the following classes :

1. Companies incorporated under the provisions of the Statute of the Province of Canada, 9 Victoria. cap. 90, consolidated in chapter 53 of the Consolidated Statutes of Upper Canada, now included in chapter 169 of the last Revised Statutes of Ontario (1887), and commonly known as the Building Societies' Act.

2. Companies incorporated under the "Canada Joint Stock Companies' Act, 1877,"now known as the " Companies' Act, " being chapter 119 of the Revised Statutes of Canada (1386).

3. Companies incorporated under special Acts of the Legislature of the province of Canada or of the Parliament of the Dominion of Canada.

4. Companies incorporated under the " Ontario Joint Stock Companies' Letters Patent Act, 1874." being chapter 150 of the former and chapter 13; of the last Revised Statutes of Ontario.

5. Companies incorporated under the English Companies' Act. and licensed to transact business in Canada under 37 Victoria, chapter 49, being chapter 125 of the Revised Statutes of ('anada.

The Board, after careful consideration of the report of the Superintendent of Insurance as to the class of securities upon which the above companies can invest their funds, and as to the borrowing powers of the said companies, and having regard to the fact that the companies mentioned in Classes 1. and II., viz., those incorporated under the " Building Societies' Act " and the " Companies' Act," possess only limited poker of borrowing and are restricted to investiuents that are usually considered the safest that can be had, direct that the debentures and debenture stock of such companies, belonging to these two classes, as meet the requirements hereinafter set forth, may be accepted as deposits on behalf of insurance companies, at such rate as the Treasury Board may see fit to place upon them, not, however, to exceed the value usually placed upon municipal securities, viz.. 90 per cent of the par value thereof when the market value is at least equal to such par value, or 90 per cent of the market value, when the market value is less than the par value.

The requirements above referred to are as follows :

I. The company shall have kept strictly within the powers in relation to borrowing and investment conferred upon it by the Act under which it is incorporated.

2. It shall have a paid-up capital of at least 85011,000.

3. It shall have been in successful operation as a loan company for not less than ten years.

4. It shall have a reserve fund amounting to not less than 25 per cent of its paid-up capital.

5. Its stock shall have a market value of not less than 25 per cent premium.

The Board also direct that the debentures of such companies, coining under Class III. above mentioned, viz., those incorporated under private Acts, as fulfil the foregoing requirements, and whose borrowing powers and powers of investment are not greater than those of companies coming under Classes I. and II., may be also accepted upon tlhe terms above indicated.

The Boa rd also direct that every application on behalf of 'au insurance company for the acceptance of any such debenture or debenture stock as herein above provided, shall form the subject of a special reference to the Treasury Board, and that the company shall supply all necessary particulars (properly verified if required) for the information of the Board. (T. B., 19th .June, 1359.)

_l'o as.maeani' of acceptance of Bonds Ly the Treasury Board.—" The Superintendent asks the decision of the Board upon the following question, viz. :

` Will the Board inform a company desirous of purchasing certain bonds or securities whether they will he accepted or not as a deposit in the event of their being purchased ?'

" The Board, after deliberation, are of opinion that they cannot give any assurance to any company that securities will or will not be accepted in event of their being purchased." (T. B., 1st April, 1889.)

Deposit R<reapt.s.—" The Board direct that deposit receipts be not accepted in any case as a deposit on behalf of any company." 1'I'. B., 25th January, I8SS.)

Bank Stock. ((•r.—•" Bank stock or shares in any private. company will not he accepted." (0. C., 17th January, 15 6.)