TRUST & LOAN COMPANY

Evening Post, Volume CXXVII, Issue 32, 8 February 1939, Page 19

TRUST & LOAN COMPANY

ANNUAL MEETING

DIVIDEND OF 6 PER CENT,

The sixty-sixth annual meeting* of shareholders of the Wellington Trust, Loan, and Investment Co., Ltd., was held in the Chamber of Commerce rooms today. The acting-chairman of directors CDr. C. Prendergast Knight) presided.

In moving the adoption of the report and- balance-sheet (already published),. Dr. Knight apologised -for the absence of the chairman, Mr. J. J. Reich, Who early in August last met with a serious accident and was severely injured. Mr. Reich had made a good recovery and hoped very shortly to resume his duties with the company.

• The board v.as pleased to be able to recommend a slight increase in -he dividend, making, it 6 per cent, for the year, which represented only £3 16s •per cent, on the shareholders' funds invested in the business. When they considered that the reserve funds of the company vere in the neighbourhood of £90,000, the dividend represented a very moderate return on he capital involved in the business.

"Turning to the balance-sheet," said the chairman, "you will notice that on I the capital and: liability side deposits! are lower by £16,634, interest by! £1002, land and inqprne tax by £788, whilst, our indebtedness to our bankers is up by £4158 and the profit and loss appropriation is up by £373. On the assets side mortgages are £2434 more than last year. Included ii> this item table mortgages are up by £10,861, a very gratifying feature, as this form of mortgage is much better for lender and borrower .liPc and is an essential part of your board's policy. The New Zealand Government Inscribed Stock is less by £8081, sales to provide a more" profitable invest-] "nient. Freehold property, which stood last year at £7027, is now £7243. i owing to properties falling into our hands. Business premises are £10.497 The changes in profit and loss are as' follows:—On the debit side interest is down by £363. Charges are up by £119, mainly causeg by legal fees .in connection with the cases under the mortgage relief legislation. "Land and income tax is less by £794. Profit and *oss appropriation is up by £1529. On the credit side the revenue from mortgage interest is £683 more than last year. New Zealand Government Inscribed Stock dividends are less by £262. "Turning now to the profit and loss appropriation account, we commenced the year with a carry forward of JK5251, which, with the balance on this year's working of £8942, amounts to £14,193, out Of which £3125 has been.paid as an. interim dividend of 2$ per cent, and ,£693 has been transferred to the special reserve account to leave it at £6500. The sum of £115 has been ' written off the. business premises. We propose to add £1000 to the reserve fund, making the total amount £86,000 and to recommend a further dividend of 3|_ per cent., ' absorbing £4375 (making"6 per Cent fdr the year). -and to carry forward £4999. ADJUSTMENT OF MORTGAGES. "This year sees the end ox ail adjustments by. the Mortgagors' Relief Commission and those remissions, made by the board voluntarily. \ "The special reserve. o£ £6500- is in the opinion of your board -."faniple to cover : any further losses nnd voluntary adjustments. The year under review hastp^etT'am anxious' onefoT- the' staff and board/'iilike and closes the period of adjustment by forcejof 4aw. "*' "Shareholders are t6 ; .{b4 congratulated at: the small amount of capital lost, ;v#rich shows the: careful management'of .the board on your behalf. The company performs a useful service to the,cbmriitunity by affording a safe investment for their moneys and to borrowers,., .in assisting them to obtain capital'at a reasonable rate. "Iffca^-to formally move the adop-; tion -of "the report and balance-sheet as printed,"'•'which carries with it the dividend^ of 6 per cent, for the The* motion was seconded by Mr. R. W.'.tJibbs and carried. The retiring directors, Messrs. Gibbs and R. A. Holmes, -were re-elected, as were the retiring auditors, Messrs. E. W. Hunt and G. L. Jiidd,

TJie, staff was thanked for' its services.';' '..■.'■' ''■■ ■■• ■■.'-■• ;:; ■»■'.