"STRONG POSITION"

Evening Post, Volume CVIII, Issue 25, 29 July 1924, Page 3

"STRONG POSITION"

WELLINGTON INVESTMENT COMPANY

ANNUAL MEETING

The thirty-eighth annual general meeting of shareholders of the Wellington Investment, Trustee, and Agency Company, Ltd., was held at the company's (ffice, Featherston street, to-day. Mr. George Shirtcliffe, chairman of direcxors, presided. The report and balance-sheet (published in " The Post" last evening) were taken as read. Mr. G. Shirtcliffe said: " Ladies and Gentlemen,—ln moving the adoption of the directors' report and statement of accounts for the year ended 30th June last, I shall probably be expected to make a few remarks. "It is gratifying to know that the marked improvement noted last year in ihe oversea trade of the Dominion has continued. The production of all primary products has been well maintained, and prices realised have been well above I the average. The great bulk of the! wool clip was sold at the local auctions at record prices, while those realised for other staple products,- such as mutton, lamb, and dairy produce, must have been I on.the whole highly gratifying to producers. The sp-plus value of the exports of the Dominion over its imports I amounting to about £7,250,000, is an in- ! dication of the satisfactory condition of th - oversea trade of the country. Farm-' f-rs, therefore, are no doubt looking to the near future .with- increased confidence. Land values are slowly but gradually becoming stabilised on a producing basis, which unfortunately means that owners and mortgagees are.writing off the. difference between the prices paid during the. boom period and the real economic values. There can be no other load towards stabilisation, and the sooner a sound level of values can be estabJished the easier it will be for farmers to obtain the necessary financial assistance and show adequate.results of their ettorts.

The prosperity of the Commonwealth and Dominion as regards oversea trade, coupled with heavy Government borrowings, has led to this awkward situation' —that huge funds running into many millions sterling have piled up in London which cannot be economically transterred rhe earning power of these.funds in L,ondon js comparatively small, while their transfer for employment .here at remunerative rates in the further de- l velopment- of the primary^ and .second- I aiy industries can only be effected at a heavy exchange cost, which may quite possibly, still further'increase:. An early so ution of this difficulty, which is purely | a banking one, not yet appear to be in sight though given a cessation for a. time of Government borrowing, the I position would probably right itself. " T'lu hea, vy borrow'ng by local bodies is another factor affecting the interests of primary producers that should not be overlooked During the past six months authority has been granted to public ±■3,000 000 of which it is estimated that half will bo floated in London and the remainder in New Zealand. To the ex iTmin, 0 'I!" 011 ,theSe IOaDS *"* rawed-in London, the adverse exchange situation must be and the amount borrowed locally will be withdrawn from the funds available tfor assisting to in-1 crease the production of primary P rouucts on which after all the real prosperity of the country musf depend. "I should perhaps mention that the expiry or the moratorium at the end of this year is not giving your directors any concern, and is unlikely to cause any inconvenience to the borrowing clients of the company.

"The accounts of the company for the year call for but little comment. Dewfth -Pi^oV' £127' 102 ' as c°™P-""-ed liability tho company .held first mortgage securities for £169,202, and liquid assets to the amount of £42,515—the last- m entioned item being equal to about 33£- per cent, of the liability. The strength of this position w.ill, I f ee l sure, commend itself to shareholders and depositors alike.

Including the carry-forward from the previous year of £849,.the net available profit amounts to £6128. Of this amount iouu has been reserved.to cover income S^i * - interim dividend absorbed £1860, leaving £3768 now available. As is recommended in the report, the directors propose that of this available balance of profit, after providing for the payment of a dividend of 3 per cent, for the half-year, making 6 per cent, for the year, the sum of £1000 should bo added to the reserve fund, which will then stand at £22,700, and that the brlance of £908 7s lid should be carried forward. The directors feel confident that shareholders will approve their policy of steadily adding to the reserve fund, which will not only be a source of still greater strength to the company but will gradually increase its earnings and thus lead to the payment of an increased, rate of dividend. In this connection I think it Well to point out that tile reserve fund of £22,700, plus the other reserve of £2433, and the carryforward of £908, making a total of £26,----041, is equal to rather more than 4s 2d per share, so that shareholders when wishing to rlitsposo of their holdings should bear this in mind iis an indication of the true premium value of tho shares. The directors have every confidence in the future of the company, and havo no hesitation in recommending shareholders who are satisfied with a present,return of 6 per cent, free of. income tax, with tho prospect of a higher return later on, not to dispose of their holdings below the actual.value.

"It is pleasing to note that the present heavy burden of income . tax is likely to be- lightened this year. If this eventuates, as we all hope it will, it will pave the way to a more adequate rrite of dividend earlier than would otherwise bo practicable, without reducing the annual allocation to the reserve fund.

"Ladies and gentlemen, I have now pleasure in moving that the report of the directors, and the statement of accounts annexed thereto, be; and arc, j hereby adopted." | DIRECTORS' FEES. In seconding the motion for the adopI tion of the report and balance-sheet, Sir Kenneth Douglas said he noticed that it was proposed to carry forward to the reserve fund a similar sura, to that of last year, namely,' £1000. He also noticed that the directors' fees were just about £11 higher than those of another coinIpany, whereas the fees of yet another company amounted to £400 a year. The | articles of their own company provided | for the directors getting up to £300 a ! year. Going back'to previous years, the j shareholders would note that the directors bad not drawn anything like £300 a year. This year lie understood that the j'ees were lower than those of any mci vioiiß.yiw. Ho thought ■ Die-ehureheW. i ess slwulcl tender the dwecjow » vott ol ■

thanks for their services to the company. ■ . -

» The motion, for the adoption- of-the report and balance-sheet was carried. Od the motion of the chairman, seconded by Mr. L. 0. H. Tripp, resolutions declaring a further dividend of 3 per cent., making 6 per cent, for the year, and placing £1000 to the reserve fund, were adopted. • . . The retiring directors, Messrs. H. G. smith and Alfred Smith, were re-elected, and Messrs Bucliolz and Rowley were re-, appointed auditors.

On the motion of Sir Kenneth Douglas, a vote of thanks was passed to the directors.

In acknowledging the vote of thanks, the chairman said the directors were paying the necessary attention to the business of the company, which, they were carrying on conservatively, and that, he thought, was the right policy in these times. As mentioned in his speech,' the directors had every confidence in the future of the company. To his mond it was a: very fine, sound concern, and he thought the shareholders, to whom a report of the proceedings at the meeting would bo sent, should also feel that they had a very good investment in the company.

A vote of thanks was also passed to the secretary, Mr. C. yj. Holt.