THE PERPETUAL TRUSTEES

Press, Volume LXXII, Issue 21811, 17 June 1936, Page 15

THE PERPETUAL TRUSTEES

CHAIRMAN’S ADDRESS

la meeting you to-day at this, the mmpany'a fifty-second annual roeetfl, aid Mr Reynolds, I feel justiflad in eying that for four years past «• have been living through days of ftaoeial changes and labouring under aonerable difficulties of an unpreafcntsd character resulting from the fa**** legislation which it was con4lond necessary to enact to meet the pat and present-day needs of the Piimiftn As a result thereof many ad varied have been the changes and tojustments which we, as a company, ]gn been called upon to meet. «to-day it would appear that we are to be subjected to still further farlegislation, the effect of which ymga our company and its clients, both Snefiy. and indirectly, we cannot as at estimate- Meanwhile the position ayyantu me. I think, in impressing mm both shareholders and clients the fact that your directors, mßagement, and staff cannot be held for the curtailment of maun or changes in conditions which •Htobe enforced upon them by preapwg conditions and by the legiaIgna. - We can but endeavour to work nghlhe curtailments and conditions so angled to the best of our ability. ft does, however, seem to me pernMUe to say that the annual acmnats we have been able to present to yes during the past four years must mmtf indicate to you the efficiency of Mb the management and the staff. I |f»— Hy have confidence in the «wmn» and am of the opinion that m gie need arises, any further efforts myiirad on the part of the manageMUt f** die staff will assuredly be togeoniil I say this after a care'ul •if conscientious survey of the conditfcns through which we have so reMfifiypMKd. LEGISLATION One or two important amendments •to* to Trustee Law during the ks ions of the last Parliament. 4 drastic but very welcome, alterafia In tto; lew relating to charitable trusts was passed, providing that where «trust us created for several purposes, tone of wh’ch are charitable and iglid, and otners ncn-charitable and tnpaSkL the trust is divisible, so that fig trust for charitable purposes will Uneeiartb Ls valid. Power was also linen to trustees in certain cases to rotow mortgages where a decrease in ridne of the land charged would have Mfviously prevented them from so doamendment to the Administratis / ct ! 08. now makes it clear that were real estate is not effectively dfepceed of by a testator’s will it shall b* distributed in the same manner as if it were personal estate not disposed •Tby will. tte Acts dealing with relief to aartgagors and tenants were slightly •mended during the year, but it is probable that extensive and important ■Mentions will shortly be made to &eae Acta by the present Government. Tbt passing of these Acts has over the last few years imposed on our staffs nenormous amount of extra work and •oxkty. which has. however, been readily undertaken in the interests of •or clients. *1 should again like to take this opportunity of emphasising to prospective clients the tremendous amount of mrvfce which a company of this nature Borides. Business and taxation afwi have become so complicated, and the just and proper disposition of Wi property by will or otherwise has vo» become so difficult to carry out t» meet present-day conditions, that •PPert advice is almost essential if •n* is to guard against pitfalls or •riaut troubles with Government departments and others. “We have at our various branches *®cers fully qualified to deal with or mn helpful advice on these matters, mfi many persons are testifying to great amount of mental and busiWm worry they have been saved by •maming their business or administraaffairs with us. « has come to our knowledge that *** testators, who have amongst principal assets shares in a prirta or family company, frequently Jpouit private trustees to administer yfr estates, the reason being that ■■F do not wish to introduce persons JJfbJde their relatives or intimate ffienda into the secret affairs of their Jjmpany. Were it not for this fact ■W would undoubtedly have appointed m* company as their executor or trusj* These difficulties can often be •judlme by a testator arranging for ™**™e resolutions to be passed by his r**9*ny providing for representation ” person other than the trustee •■many at board and other meetings, * y apecially appointing a co-trustee the trustee comoany to act in con- . hon with his holdings in the family •napaay CHOICE OF TRUSTEE should like to say here that the jjjohveness of a person’s will and the value of an estate depend very rfy .indeed upon the life, wisdom, ** integrity of the executor and trusg appointed to act. The Perpetual Company offers all the re* necessary in an ideal exegjß R never dies, and is never ill or 22* from duly. It has experienced 'BP* *»d a wealth of varied knowBrthered over a period of 52 JH* « i* always at its post, is 22“Jt and impartial. Its charges are and very much less than the allow a private executor S.r’yfe*’ even although the latter ■ ** he an experienced trustee." IBS**** INVESTMENTS AND JkPHBHWT adjustments. jaHßiffie passing into law of the aHHPJJ* and Tenants Relief Act n&aequent enactments culaßfgJf to the passing last year of Mortgagors Final Adjustunderwhich act stay orders firanted in respect to farm have had to be particuIn the protection, in reaof our clients* mortmortgagors, and farmer particular, have passed times, and that befor film products ■PPM have been unable to S’

* Fifty-second Annual Meeting £8,000,000 IN ITS CONTROL -Business and taxation affairs have become so complicated, and the |nst and proper disposition of one’s property by will or otherwise has now become so difficult to carry out to meet present-day conditions that expert advice is almost essential if ene Is to guard against pitfalls or serious troubles with Gereroment departments and others,” said Mr W. E. Reynolds, air 1 "—" directors, in commending the activities of the ferpetoal Trustees Estate and Agency Company, Limited, at its flSy-seeond annual meeting. Associated with Mr Reynolds were the following directors:—Messrs Edgar C. Haslett, C. Stanley Smith, Hon. W. D ownie Stewart, Messrs B. J. Gilmour (Invercargill), E. G. Kerr (Timarn), and R. K. Ireland (Oamaru), and the general manager (Mr A. Ibbotson). The chairman intimated that apologies for absence had been received from Messrs James Begg (who is at present out of the Dominion) and C. H. Hewitt, both directors of the company, and from Messrs T. Somemlle and G. Benson.

me ft their commitments. The great majority of mortgagees are conversant the conditions that have prevailed, and are reasonably well disposed towards the farmer in his efforts to rehabilitate himself. Where the farmer is not overburdened with debt, and has a reasonable or even a fair fighting chance of recovery, mortgagees as a class have been found ready and willing to assist, in some instances by wiping out entirely arrears of interest where that could be done without imposing undue hardship, and in other instances either by substantially reducing interest rates and giving extended time for payment, or by accepting an agreed sum in full settlement of arrears. We do not find mortgagees at all willing or anxious to exploit the' position, but rather the reverse. Nevertheless, it can safely be said that in some instances the mortgagee has not had the treatment he was justly entitled to, and that some portions at least of the mortgage legislation have inflicted injustices upon him. The moneys loaned in very many instances represent the savings of a lifetime, and the income therefrom the only source of maintenance of the lender. So far as our clients are concerned, the great bulk of them are persons of moderate means, who, by reason of thrift and self-denial practised throughout many years, have saved the moneys represented by their mortgage investments. They have rights to protect, and are entitled to have those rights reasonably safeguarded. The Prime Minister is reported as having recently said that “file mortgagee who lent too much money on land did not know his business and ought to get out.” If such a statement was made by him, could it not be said in reply that the farmer who bought the land too dear was perhaps more blameworthy? It is easy to be wise (luring or following a slump period, but for many years prior to the recent depression mortgagees lent the-r moneys on securities valued by wellknown and competent valuers, and generally lent conservatively on those values. I think it will eventually be found that stay orders are unsatisfactory to the mortgagor, the mortgagee, and the holder of the stock security during the period of five years given such orders. Our general manager and branch managers have given much thought and spent a great deal of time and effort on behalf of clients In tpe Mortgage Adjustment Courts in various districts, and have in all cases put forward the mortgagee’s viewpoint, and endeavoured to safeguard his interest in such a manner as to be fair to all parties concerned, and, while agreeing to reasonable concessions, to prevent wherever possible injustices being done. PUBLIC BENEFIT FUNDS One very satisfactory feature of our work, and one in which we take considerable pride and interest, is the administration of funds for the help of persons who, through farce of circumstances and no fault on their part, are in needy circumstances and require financial assistance. We take no credit to ourselves for being in the position to administer such funds, but are- glad to have the opportunity to place on permanent record the generosity and kindly interest in the welfare of their fellow beings of certain of our clients. We have a number of such funds under our care, the largest of which are the A. M. Blakeley fund and the Grace Lillian Mitchell fund. Moneys from the firstnamed fund are, according to the lace Mrs Blakeley’s directions, to be used in affording assistance to the aged poor of Dunedin. The late Miss Mitchell, in creating* her fund, directed that the moneys therefrom should be used in assisting persons who have been adversely affected by the Great War of 1914-18. Both of these ladies were residents of punedin, and were keenly desirous of helping the poor and needy of their city. Since the funds were established many thousands of pounds have been distributed through various recognised societies and organisations existing lor the administration of help in Dunedin and district, and such help is extended quite unostentatiously and with due regard to the feelings of the recipients. We have evidence from many directions of the gratitude of the many deserving participants in the distributions from these and other funds and of their sincere appreciation of the kindly thoughts which prompted these ladies to make such provision for their fellow beings. The late Mrs Blakeley was keenly interested in relieving distress amongst the poorer people, whilst the late Miss G. L. Mitchell took a great interest in the welfare of our returned soldiers and their dependents. Business Controlled You will be interested to leam that the value of the business now under the care and management of our institution amounts to close upon eight million pounds. This, you will agree, is a large amount in what is relatively speaking a small country. It is, I think, concrete evidence of the trust and confidence which is reposed in us as an institution of some, 52 years’ standing, as well as being a recognition of our efficiency in the work we undertake and the results we have been able to give to beneficiaries and clients alike. I may be permitted to remark in this connexion that we very highly appreciate the trust reposed in our institution, and to say that we shall continue to be ever watchful of the best interests of our deceased persons’ estates and clients. You will, of course, understand that the amount I have just mentioned is the value not of our company’s own assets, but of the assets of estates and trusts, etc., committed to our care. Low Charges If we allow that these eight millions of assets are returning to their owners, at an average rate of 4 per cent, a gum of £320,000 annually, then it follows that our profits, as disclosed for the year, including our executors’ remuneration, are equal to an average return to us of 1| per cent on that Income as remuneration for the custody. safeguarding, and management of time assets. There are Innumerable other duties to perform In the business of a trustee institution, for which no charge can be made. I can therefore safely repeat what I have in past years stated—namely that the profits of a trustee company are, for

the services it renders, very low and out of all proportion to the return from the assets It controls, and the responsibility it carries. But for the volume of our business, our present scale of charges would not be possibles We should, however, remember that our institution came into being as the result of a meeting held over half a century ago by a number of prominent pioneers of Otago, and that the object in view was not so much the making of profits as the provision of some reliable, permanent, and efficient institution for the safeguarding of the interests of testators and their widows and children. Branches The extension of our business to other centres, which has been a feature of our policy for a good many years past, has, in its results, been satisfactory. I am speaking now more in regard to the service we have been able to render to the public in the various districts we have entered. It has, of course, been vitally necessary to see that such branches of our business were placed in the charge of trained and experienced managers and staffs, and to this necessity we have given especial care and attention. In 1 the opinion of the board of directors and the management, these extensions have been fully justified, as is evidenced by the appreciation of old and new clients, so often conveyed to us. In these, as in all our many activities, endeavour to place efficient service before all other considerations. Branch Directors and Staff May I be permitted at this juncture to recognise and express our thanks for the services rendered by our branch directors, branch managers, and staffs. In this connexion I would mention the names of Messrs R. J. Gilmour, of Invercargill, R. K. Ireland, of Oamaru, E. G. Kerr, of Timaru, and C. H. Hewlett and C. J. Ronaldson, of Christchurch. We are indebted to these gentlemen, as well as to our branch managers and their staffs, for their continued interest and help in our work in their respective districts. I wish also to say that during the year the Hon. W. Downie Stewart was offered and accepted a seat on our directorate, and I am sure his presence will be exceedingly useful to the board in its future deliberations. The chairman then dealt with the annual report and balance-sheet, and moved their adoption. Mr J. S. Ross’s Remarks Mr J. Sutherland Ross, C.M.G., in seconding the motion, congratulated the directors on the successful operations of the last year in all the circumstances. The chairman had given them a very good and extensive resume of the legislation appertaining to mortgagor and mortgagee, and had touched on the friendly feeling as shown between the investor in the town and the farmer, who undoubtedly had had a very rough time during the last few years. Like the chairman, continued Mr Ross, he had confidence in the future of the country and of the company. It was a company with which one was proud to be associated, and he was certain shareholders all agreed With him in offering hearty congratulations on the steady growth of the business. It had been pointed out that the business had been built up over half a century, and that the value of the business under their management was close on £8,000,000. He had been looking back over some records, and noticed that in the last Tour years the value of the business handled by them had grown from six and a quarter millions to eight millions, and in the last 10 years from four and a quarter millions to eight millions. Thus the business had practically doubled itself in the last 10 years. There could be no higher encomium than the steady progress of the business to show what confidence was felt in the company by the community generally. The chairman, said Mr Ross, had touched on the facilities provided to allow co-trustees to work with the company in businesses where family interests were concerned. He would like to stress the value of that. One could easily visualise casfs in which there were varying interests all engaged in the same business, and wlfit made it exceedingly difficult was f|r the trustee of the company to have to vote in various directions where varied interests were involved. He could heartily cCmmend the appointment of co-trustees to work with the company in businesses where such things were likely to happen. He would like to say how much those who came irito the office on business appreciated the personal touch that existed in the management of their (Applause.) The motion was carried. Directors The chairman stated that the Hon. W. Downie Stewart had recently been called to the board in place of Mr George Black. He was sure that everyone associated with the company would realise the value of Mr Stewart’s services. Mr James Begg (who was absent in London), Mr E. G. Kerr, of Timaru, and Mr C. H. Hewlett were the retiring directors, and offered themselves for re-election. On the motion of Messrs N. Paterson and T. C. Coull, the retiring directors were re-elected and the appointment of Mr Stewart confirmed. Mr Stewart, in thanking the shareholders for their confirmation of his appointment, said that he had spoken from time to time On the services rendered by the company to the shareholders and the community. Since he had joined the directorate, however, he had been afforded a more intimate knowlege of its activities, and this experience had only served to confirm the opinions he had expressed. Mr Kerr said that it had been an honour for him to be associated with the company, and assured the shareholders that he would do everything possible to further its interests. Mr Kerr also returned thanks on behalf of Mr Begg and Mr Hewlett. On the suggestion of the chairman, it was decided to send a- note of sympathy to Mr Hewlett, expressing the hope that he would experience a speedy recovery from his illness. Auditors The retiring auditors, Messrs William Brown and Company, Messrs G. Blyth and Company (Dunedin), Mr F. A. Webb (Invercargill), Messrs Leggott and Allport (Timaru), Messrs W. E. Best and Wilkinson (Christchurch), and Mr R. Finch (Oamaru), were reelected on the motion of Mr C. Russell Smith and Mr P. H. Power. Mr J. S- Mclnnes, of Messrs Brown and Company, briefly returned thanks. ‘ Appreciation of Services Mr C. J. Payne proposed a vote of thanks to the directors and staff. The results the company had achieved, he said, clearly proved that its affairs were conscientiously and competently handled. The motion was carried by acclamation. % The chairman, on behalf of the directorate, said that he could only repeat that the board had been a particularly harmonious one, and its endeavour had always been that that spirit should be made manifest through the whole staff. How far they had succeeded he would leave to the judgment of the shareholders and clients. “In acknowledging your recognition of the staff’s efforts I would like to add my own appreciation of the work of all members,” said the general manager (Mr Alfred. Ibbotson). “It is not possible to carry on successfully such a large and many-sided business as ours without the loyalty, harmony, and the closest co-operation of all employees. Right down through the many years of our existence the esprit de corps of our staff has been rather outstanding. In these days of uncertainty and exceptional legislation it is not always possible to please everyone, but I rincerely believe that our efforts to render to the best, of our ability, effleirat service bofib In and . oat of office hoars are generally acknowledged. Much of our work is not of a routine nature, and one cannot tell to-day what exigencies to-morrow wilT bring forth to the lives and fortunes of our clients. We have endeavoured to make

a point of being able to render service whenever called upon, be it in office hours, or, if necessary, out of office hours. It seems to me from my lengthy experience that the very nature of a trustee business necessitates this, and it is service gladly, efficiently, and ungrudgingly given that matters, and has, I think, always mattered with our staff. Service before self is an ideal motto for the staff of a trustee institution, and, for that matte* for all. In so far as human frailties will allow, it is this motto that we, as a staff, endeavour to the best of our ability to keep before us in our daily work. Now that most offices, including trustee institutions, come within the scope of the Shops and Offices Act, as recently amended, it may be that, with limits set to our working hours, we may not have the same opportunities in the matter of time as we have had in the past to serve our clients. That, however, remains to be seen. Although the Act fixes office working hours and to some extent the wages payable, there is nothing in the Act which would warrant employees slackening in their efforts to serve or putting less energy and effletener teto thefc work. I feel sure, tn« tte tbe Act ■ -never meant if to have any such effect, and we employees should take note of that fact.” (Applause.) The meeting then concluded.

Extended Report by Arrangement