PERPETUAL TRUSTEES

Evening Star, Issue 19273, 11 June 1926, Page 4

PERPETUAL TRUSTEES

FORTY-SECOND ANNUAL MEETING PAST YEAR ONE OF THE BEST Shareholders of the Perpetual Trustees, Estate, and Agency Company of New Zealand held their forty-second annual meeting in the office of the company, Vogel street, this morning. >.nr George Fenwick presided, supported hy Messrs W. E. Reynolds, John Mill, E. 0. Hazlett, James Begg, Robert Gumour (Southland), E. G. Kerr (South Canterbury)? the other directors; also Mr Joseph Preston (advisory director at Oamaru), and Mr Alfred Ibbotson (general manager). REPORT. The report showed a profit for the year of £7,884 12s, the available balance being £8,416 14s, out of which the directors recommended a dividend of 15 per cent., to apply £2,500 to the reserve fund, and to carry forward £4,040 18s. THE CHAIRMAN'S ADDRESS The Chairman, in moving the adoption of tho annual report and balance sheet, said: — Gentlemen,—Not many weeks before the company’s annual meeting last year the dominion had suffered a great loss in the death of its honored Prune Minister, Mr Massey, and when addressing you I paid my tribute to his sterling qualities and his great services to New Zealand. It is fitting that I should this year make passing reference to his successor, and to the important part be has to play in moulding the destinies of our favored land, for it is upon the wise administration of Mr Coates and his colleagues in the Ministry that the dominion’s progress and prosperity must largely depend. Unlike the late Mr Massey, Mr Coates had some experience of Ministerial office behind him when, by the vote of the people and of his political supporters in Parliament, ho was called upon to assume the high position of Prime Minister. How his predecessor steadily developed those latent powers which made him a forceful leader of his party and a great Imperialist, respected alike by bis own supporters and those opposed to him in politics, need not be reiterated here. In nis successor also there are abilities and force of character that are steadily disclosing themselves, and that the years of office, of which he is practically assured, should develop as'they did in Mr Massey. The welfare of New Zealand, in its material prosperity and in the social life of its people, must depend largely on the wisdom of its administrators and on their determination to act faithfully and unremittingly in the interests of the people as a whole, and it is of the first importance that the dominion’s leading citizen should possess those qualities and abilities which inspire public confidence, Mr Coates’s great victory at the General Election showed that he possessed that public confidence, and if a change takes place in the steady cycle of prosperity that the dominion has for some years enjoyed there will be comfort in the knowledge that its public affairs have at their head a fairminded and competent administrator.

THE EXHIBITION. I'think Tam justified in mentioning, os an instance of the practical common sense of the Government, and of its belief in the dominion’s power to successfully carry out an important national project, the whole hearted support it gave to the great International Exhibition which so recently closed its doors after an exceptionally successful, indeed, triumphant, season of five months’ duration. It stands to the credit of the Government that it believed from the first meeting of the great project that, in tiie hands of some of the dominion’s foremost business men, this great national enterprise would have devoted to it close and unremitting attention and administrative ability that would ensure brilliant success. It is not too much to say that the dominion, as a whole, is proud of the great exposition which has done so much to bring New Zealand under world-wide notice and to promote, it may_ be confidently anticipated, an extension of reciprocal trade with our own kith and kin throughout the Empire. It must be a source of lasting gratification to the president (Mr J. Sutherland Ross), and to the able body of directors who were gathered round him, that they carried to fruition and a magnificent close an exhibition of so splendid a character. To them is especially due the strongest recognition by the people of the dominion for their unwearied and self-sacrificing work. Mr Andrew M'Kinnon, when he first brought under the notice of some of Dunedin’s leading citizens his belief that the time was ripe for holding an International Exhibition in New Zealand, perhaps hardly realised how complete and how brilliant a success was destined to follow from his suggestion. He was fortunate, too, in securing the prompt recognition of his idea by Mr Anscombe, whose professional skill as architect resulted in the erection of the buildings at Logan Park that were universally accredited as helpiim so largely in the success of the Exlin bition. To Mr M'Kimion, to Mr Anscombe as architect, to those who first moved in the great project, to the directors who carried it out to so splendid a close, and to the Government, the dominion owes its wannest thanks. Nor should I omit to mention the great assistance rendered by the Otago Harbor Board and its engineer, the mayor and City Council, and the Otago Expansion League. The engineer of the Harbor Board (Mr Wilkie) and the superintendent of city reserves (Mr Tannock) transformed a dreary waste into a beautiful pleasure ground, and the manager of the city,and suburban tramways (Mr MacJKenzio) organised a system of transport that did much to promote the comfort of those visiting the Exhibition. Special mention should also be made of the splendid exhibits in the British and other courts, and of the courtesy and attention the public received from the various commissioners. Erom one end of Now ZgJCland to the other there will be for many years vivid memories of the pleasure the Exhibition gave to our people* and_ of its immense value from an educational standpoint.

INDUSTRIAL CRISIS IN BRITAIN. la making brief reference to the great industrial crisis in Great Britain, happily brought to a close through the eafling-off of the general strike, it is perhaps Eoo early to estimate the full effect on the nation of so profoundly disturbing an episode IS its industrial life. The great political and industrial leaders of the day were not slow to realise that disaster to the Empire of the direst character was certain if the strike were to be continued for any length of time, and it was quickly made manifest that Mr Baldwin and his Government were rulJy alive to the supreme danger to which every industry in the Empire was subjected and that • they had lost no time in taking every step that was possible io withstand the senseless destruction of Great Britain’s trade that was threatened. No good purpose could be served here by discussing an upheaval of a character so tragic and so cruel in its effects on the life of the people, but it cannot be doubted that there was profound thankfulness, not only in Great Britain but in the overseas dominions, that the alertness of the Government, and its determination to- safeguard the rights of the community at large, were crowned with success at a comparatively early stage of the conflict. The disturbance of the Empire’s overseas trade will probably not have been very serious, whatever the discomforts in JiKf'at Britain paay have been, and

there is comfort in-the knowledge that the sane and moderate section of the Labor leaders is so sternly against any such attempt to paralyse industry that it is improbable there will be any simi. 1 lar upheaval to combat in the near future. Of conflicts in individual industries there is not likely to he any cessation, and Th that which is now unhappily proceeding in tho coal industry there appears to be little sign of an immediate settlement, OUR PRIMARY PRODUCTS. • The total value of our exports for the year just ended is considerably less I than the total value of the previous I year, and one naturally looks for tho cause. While wool has probably contributed more towards this reduction than any other staple product, all have contributed their share. Speaking generally, there is probably not one staple line of produce which is not ruling lower in the world’s markets today than was the case a year ago. This, however, does not mean that prices realised for our products have not been payable. It can, I think, safely be said that our staple products have realised prices which perhaps more than cover expenses, but that, at the same time, it cannot be said they have left the producer any reasonable margin of profit. The realisation of mutton and lamb should return figures well up to, though not quite as good as, those of the previous season, and there is every prospect of butter and cheese doing the same. Beef has i not proved itself to be a profitable venture for some years past, nor do future prospects indicate that beef-raising in the dominion for exports ever will bo profitable. Viewing the position calmly and carefully it would appear as if the world values were coming back to a _ more normal range. In this connection it is interesting to note that the comparative figures of tho ‘ Economist’s ’ index number, published on April 3, record the lowest point reached since March, 1916, and that the March movement made tho seventh successive monthly decline. It is to bo trusted that further such adjustments may come gradually, and that we exhibit the necessary preceptive sense and prepare to meet them. I am not desirous in any way of striking a pessimistic ! note, but at the same time I think it I well that each one should individually ; realise his sense of responsibility, and i move along cautiously in the face of | any further disturbance of our trading i equilibrium. ) As you are aware, the gold standard | has been re-established in Britain — ! or it would be safer to say partly re-established—for up to the present it has been manipulated to some extent, : and is likely to he manipulated ns necessitv arises for some time to come until ultimately gold takes the place it took before the war. There are those who contend that this in itself is sufficient- to account for the lower values ruling in general, and if this he the correct view—and 1 must admit I incline to agree with this view—then there is indeed need for caution. I Be this as it may, while values of ! products the world over are inclining downwards, it'behoves each one interested in the future welfare of the dominion to proceed with care. _ We, too, often lose sight of the individual, for, while a. nation is made up of communities. these, again, are mad© up of individuals, and the call is therefore upon each one individually to do his share as the need may arise. EXPORTS AND IMPORTS.

When addressing you a year ago under this heading I stated that 1 found myself fully in accord with the action of our Chamber of Commerce in its recommendation to importers and traders to exercise caution in respect to forward commitments, more particularly as regards imports, and especially to indents of luxury goods. I was hopeful that the warning issued by the chamber and by many of our most prominent business men would have some considerable effect in curtailing the volume of our imports. I regret to find that this much-to-be-desired result has not come to pass. Compared with the previous year’s figures, the dominion’s imports for the year ended March 31 last show a total increase of £3,204,761, a considerable portion of which has doubtless been spent in the purchase of luxury goods of one kind or another. Unsatisfactory ns this is, it is made more so by the fact that our exports have decreased in value by £6,073,571, and it appears that not only has there been this reduction in the value, but there has also been a decrease in the actual quantity of some of our exports. Briefly staled, the previous year’s trading operations closed with a balance in the dominion’s favor of £4,950,063, whilst for the year ended March 31 last the balance of trade is against us to the extent of £4,328,269. These figures take no account of the dominion’s bill for interest on moneys borrowed from abroad, amounting to about £6,000,000 annually, which sum has to be paid irrespective of whether the balance of trado is in the dominion's favor or against it. You will, I feel quite sure, agree with me that the position as disclosed is such as to call tor the most serious consideration of everyone concerned in the welfare of the dominion. As .1 said at onr last meeting, the remedy would appear to be of a twofold nature—■ firstly, a reduction in the' volume of our imports, and, secondly, an all-, round increase in our production and exportation. It is to he hoped that our traders will seriously restrict their importations, and that, given a normal season as regards weather and other conditions, our farmers will-be enabled to increase their production, so that at the close of the year upon which we have just entered the balance of trad© will again bo in our favor, and to an extent sufficient, at lease, to cover our overseas interest bill. STATE ADVANCES.

Having considerably replenished its funds, the State Advances Department is now engaged in an effort to overtake the many applications for loans temporarily standing in abeyance. The company’s lending clients are still losing numbers of first-class securities to tho department, many of whoso borrowers ought not to relv upon the department's assistance. It is, however, satisfactory to Ixj able to report that the class of borrower represented by the struggling fanner and settlor is now in many instances being financially assisted by the State, and is not being pa»ssed over as I had good reason to believe, and as I stated, when last addressing you. It is also satisfactory to note that Mr James Begg’s contention that borrowers of State money should not be allowed to transfer their loans when selling their properties, and on which _ they arc enabled to put a higher price because of the cheap interest rate they pay, had the support of the Associated Chambers of Commerce, a remit in that connection having been carried at the annual conference of chambers held in Dunedin in November last. T trust that the Minister in charge of the department will see the necessity of giving full effect to the remit. RATE OF INTEREST. The money market continues to show a iiardening tendency, and money for investment on first mortgage securities is not over-plentiful. The demand is, however, perhaps even stronger than it was a vear ago, and in consequence the rate of interest remains very firm at 6 per cent. It has not been possible during the year to meet all demands made upon us in this connection, some of which have come to us from the North Island. I said on a previous occasion that the board preferred to invest available mortgage moneys on South Island securities as being more stable and loss highly-priced lands. This is still the policy of the board, and will continue to be so while so many sound and desirable mortgage securities are offering in the South Island. The demand for money for mortgage purpo&es has exceeded the

supply right through the year, and there are no evidences of a change in this respect, notwithstanding the largo amount of State and Public Trust moneys that are available. LEGISLATION. There has not, during the past year, hewn any outstanding legislation affecting the interests or business of companies such as ours. Passing reference may perhaps be made to the amendment in the Stamp Duties Amendment Act, 1925, whereby the duty on mortgages and discharges of mortgages was reduced to a nominal figure of 2s 6d. The necessity for making this amendment was urged in my address last year. A consequential amendment in the stamp duty on transfers of mortgages should have been made contemporaneously, and I trust this will ho rectified during the coming session of Parliament. RENT RESTRICTION ACT. It is with some anxiety that we look for the removal of the legislative restrictions relating to rentals. Tins legislation has been in ffirce lor a considerable time, and was extended by last Parliament to the end of August next. The necessity for continuing this legislation has been largely removed by the great number of dwellings ami homes for workers erected throughout New Zealand. No doubt the financing of the purchase of many of these dwellings Ims been carried out on a rather risky basis, and on very small deposits, but with industry, thrift, and economy thousands of our workers should within a few years ha the free proprietors of comfortable modern dwellings. This must help to stabilise the conditions of our working people and give to them a very real interest in the dominion by reason of their holdings. If this now exasperating legislation has had tho effect I have referred to, it may really have been a blessing in disguise. Its period oi usefulness, however, has now passed, and unless it is repealed at once some absurd anomalies will arise, MORTGAGEES’ POWERS. While referring to enactments, I might, in passing, point out that a slight anomaly exists in connection with the exercise of powers of sale in mortgages which were subject to the moratorium. _ Before the power of sale can be exercised in these cases three months’ notice requires to be given to the mortgagor. This is certainly too long a period to have to wait, and it is quite conceivable that the mortgagees’ security _ might _ become seriously jeopardised in that time. The provisions of the mortgage deed itself should, therefore, in this respect now he allowed to operate. DEATH DUTIES.

The Death Duties Amendment Act, 1924, contained a provision in accord with modern social legislation when it exempted life policies up to £I,OOO from the incidence of estate duties.

In referring to charitable gifts under the Death Duties Act there is one matter to which 1 think attention should be drawn. When a legacy of over £I,OOO is bequeathed to a charity outside Now Zealand, such, for instance, as Dr Barnado’s Homes, not only must 10 per cent, succession duty be paid on the amount of the legacy, hub a further 10 per cent, must also be paid because the money is leaving New Zealand. The succession duty of 10 per cent, on purely charitable bequests is, in my judgment, too high, and the imposition of the additional 10 per cent, penalty duty must tend to restrict or stifle the generous sentiments of many charitably-minded people and perhaps deprive a worthy object of assistance. No doubt charity begins at home, but if a person domiciled in New Zealand, for special reasons, wishes to help a good charitable object within our Empire we are surely sufficiently generous ourselves not to wish to deprive the recipient of such an undue share as one-fifth of the gift. TRUSTEE SECURITIES.

It should he pointed out that within recent years the range of securities on which trustees have been authorised to lend trust moneys has been considerably amplified. Thus trustees may now deposit trust moneys in savings banks and take up the debentures of river hoards, road boards, town boards, and electric power hoards. Whether this enlargement is justified to its full extent I do not now propose to discuss; but from a trustee’s point of view any reasonable and safe extension of the inodes in which trust moneys may be invested is appreciated.

SAFE DEPOSIT LOCKERS. Clients have readily availed themselves of our safe deposit locker system, and almost the whole of the second lot we recently installed has been taken up. It is much safer to keep documents and papers in one of the company’s lockers than in a private home. They arc readily accessible, the rentals are nominal, and the lockers have the full protection of a wellbuilt strong-room, in addition to the security they provide in themselves, THE YEAR’S BUSINESS. The total value of business controlled by the company as disclosed by me at tne last annual meeting of shareholders was £4,261,893, and L do not purpose going into details in this connection again this year. 1 am glad, however, to bo able to state that the past year has been one of the best yet experienced by our company, the now business in estates, investment of moneys, control of properties, otc., entrusted to our care reaching the satisfactory total of £525,000 for the year. In addition, I should mention that the estimated value of new business in wills for the year just ended amounts to almost £1,276,000. This is in respect of wills of which the company has knowledge. 1 have stated at previous annual meetings that it is not possible to estimate the value of estates represented in wills executed in favor of the company and hold by solicitors, but the aggregate value must be very large indeed. It is very evident to tho directors and to the management that in recent years a huge goodwill has been built up, and that the ever-increasing popularity of our company is shown by the large number of wills drawn in which the company has been named as executor and trustee. One big source of tho company’s income is, however, the agency business it so successfully carries on. It will interest shareholders to know that rentals collected by us for owners of business premises and house and farm properties total £73,000 per annum, and that the collection of interest has reached the large sum of £105,000 per annum. Considerable sums of fresh money have been lodged with the company for investment during the past year, the sale methods adopted in the choosing of securities being largely responsible for the influx. The greatest care is exercised by the directors and tho management in the investment of all funds entrusted to the company’s care, and the fact that mortgagors’' payments are almost without exception up to date is in itself proof that thoroughly sound securities have been chosen.

To cope with the ever-increasing turnover, your directors have, during the past year, not only found it necessary to increase the number of the staff, but they have, in addition to securing larger premises at Timaru, made extensive alterations to the first floor of the head office building, to which further extensions are contemplated. The duties of Mr Thhotson have become so onerous and taxing with the heavily increasing business of the com pany that vour directors recently decided to afford him relief by appointing a district manager for Dunedin. This change has been carried out by the annointment of the chief accountant (Mr D. J. Russelll to the district managership, and be in turn has been succeeded by Mr W. W: King, of the compnnv’s staff, as chief accountant. Mr Ibbotson will be relieved of some

of the duties he has performed, and will have more time to devote to his important work as general manager. I have on previous occasions mentioned, for the information of present and prospective clients, that, although the general policy of the company s business is in the hands of the board, the directors do not, nor over have, concerned themselves with the contents of any will, deed of settlement, or other similar document. They know nothing of their contents, unless for sewe specific reason it is necessary to bring any particular point under their notice. It Is well that this should be widely known, so that probable clients may feel assured that their directions in the documents referred to are known only to responsible and confidential members of the staff.

BRANCHES AND AGENCIES. ]t is with considerable satisfaction that- 1 am able to report a marked increase in the volume of the business of our branch offices. In opening these branches your directors and the management considered that wo could, with advantage to both the company and the public of South Canterbury, North Otago, and Southland, make available the many advantages and facilities a company such as ours is able to auoul in the more or less intricate and technical work of administering deceased estates, the carrying out ot long-con-tinning trusts, tho investment of trust and private funds, and the expert management and supervision ot propel ties, etc. It may he truthfully said that efficiency, economy, and security navo long been the watchwords of the Perpetual Trustees Company in Otago, and it is gratifying to see that this lact is more and more becoming known and appreciated'in each of the sound ami progressive districts I have just referred to. One very pleasing feature in the reports from the branch offices is the readiness with which clients are placing their moneys in the company’s care for investment in first mortgage securities, fn this connection I should like to say hero that only the best securities are accepted, and that particular caie and attention to this very important Dart of the company's work is exercised by both the hoard of directors and the management. Financially, our branches are now not only self-supporting, hut are contributing‘to the profile of the company. PROPOSED BRANCH AT CHRISTCHURCH.

The board has for some time had under consideration the opening of a branch of the company’s business in Christchurch. It feels satisfied that a steady mid growing business awaits it there, and now that the Southland and tho South Canterbury branches are thoroughly established it has definitely decided to proceed with the Christchurch branch. The board trusts that it will be able to report to shareholders at the next annual meeting that this important field has been successfully entered upon, and that the prospects will show the soundness of the step about to be taken. The company already has clients in the sister city, and it has been several times urged to extend its business there. It is hoped that suitable office promises will be available shortly. THE BALANCE-SHEET.

The report and balance-sheet having boon in shareholders’ hands for the past ten clays or more, I propose to take thorn as read. Before dealing shortly with the items they embrace I. should, perhaps, first say that the figures for both the Invercargill and Timaru branches are incorporated therein. Liabilities.—The paid-up capital remains at Inst year’s figures—viz., £17,500. Your directors, after duo consideration, decided that the time had arrived to increase the paid-up value of the shares from 14s to 16s ; and for that purpose recently set aside out of the profits a sura of £2,500. Tin’s is the fourth step towards gradually restoring the large portion of shareholders’ capital which, many years ago, under stress of circumstances, Lad to bo written off. Reserve,Fund.—Shareholders will remember that last year it was decided to transfer from the year’s profits a sum of £3,500 to reserve fund, and in consequence that fund stands at £17,500, equalling the amount of paid-up capital. Balances Duo by Company.—The figures for the year just ended show an increase in this item of approximately £11,500. At the balancing period a considerable number of estates wore under realisation, and in certain cases the amounts lying at the credit of such estates have since been paid over. Mortgage moneys repaid, as well as new moneys received from clients for investment, help to swell the total at the balancing period. Suitable investments for most of these moneys have been found, and the mortgages are in course of preparation. Assets.—Debentures show no change, the figures remaining at £19,550. There is also little difference this year in the items mortgages and accrued interest and leaseholds and buildings, the amounts being much the same as last year. Balances Due to Company.-—At April <3O, 1925, the figures stood at £03,542 9s 4d, and at the close of the present financial year at £76,014 Is od, an increase of £12,471 12s Id in faVor of 1926. Owing to the large number of estates under administration, considerable sums have had to be paid out for death duties on deceased estates ami for debts, etc., while in many instances advances on account have been made to beneficiaries.

P.rofit and Loss Account.—Balance brought forward from previous year was £3,823 11s Cd, which was reduced by payment of dividend and other appropriations shown in the balancesheet. The balance left at profit and loss account and brought to account this year amounted to £2,190 2s. Add to this the net profit for the year just closed (£7,884 12s), and the balance is £10,074 Ms. The dividend paid in November last absorbed £1,312 10s, the company’s usual contributions to the staff benefit fund £270 10s, and the taking up of further shares in the New Zealand and South Seas Exhibition Company £75, thus leaving £8,416 14s now available for appropriation, subject to payment of income tax for tiie year.

Gross Income.—lt is again gratifying to state that the gross profit is a. record for the company, and roaches the substantial sum of £21,746 10s Bd, an increase over last year of £1,423 Is 4d. The expenses show a alight advance of £57 Os 6d over tho figures of the previous year. Our scale of charges remains to-day exactly the same throughout as it stood when readjusted and reduced in the year 1905, and it is to our greatly enlarged connection, fuller service, and larger, turnover therefore that our increasccl income must be attributed. A lower scale of charges for work of iho nature our company undertakes will not be found anywhere. REPORT ADOPTED. Mr George Black said that he had much pleasure in seconding the motion. The steadily-improving results were very gratifying, alike to shareholders and customers, and must be exceedingly satisfactory to the directorate and' staff. The enormous and increasing value of the business under tbe control and management of the Perpetual Trustees was in itself a sufficient evidence of the; confidence the public had in its handling of their affairs, and of their faith that it was worthily carrying out the objects for which it was primarily formed. He had no doubt whatever that the business would continue to grow, and, .although there was a feeling that there are troubled times ahead in the financial world, he felt sure that the care and judgment that had characterised the management of the company in the past woißd steer it clear of all difficulties. “Care and cau-

tion 41 re the keynotes of the chairman s remarks,” continued Mr Black, “and may I say that these deserve to be studied in all seriousness by everyone? There is, I believe, more necessity today than for some years for us to take stock of where we actually stand. There is no justifiable reason to expect anything else than an inclination downwards in values as the world slowly recovers from the unbalancing consequences of the Great War. The unsatisfactory adverse balance for the year in the dominion’s trade is really minimised in the published figures, and the actual results are worse by quite an appreciable extent. The figures for imports are reliable, as they are collected by the Customs Department from actual invoices. A fairly large proportion of our export figures are baaed on actual sales, but there is a considerable quantity sent overseas for realisation, or, as wo say. ‘on consignment.’ Last year nearly nil these consignments realised in a falling market less than their declared value at time of shipments. The crashes among wool buyers and the balance-sheets of moat buying concerns show how serious those deficits wore. Hence, in actual returned cash for our exported products, we received loss than the statistics valued them at. Against this debit balance wo have a set-off in the money left in New Zealand by tourists, bat with such a productive oountrv as ours it will bo a sorry state of affairs if our imports continue to exceed onr exports. The remedy lies not so much in telling traders to cut out importing things wo can produce hero, or tilings wo can quite well do without, or at least postpone having. It lies with every individual in the community taking the present position ns applying to himself, and determining to give traders no encourgement to import goods to compete with those we can make here, or luxuries wo should not, in the circumstances, ask for. Shortage of money may affect importation and restrict some traders who would import if they could to tempt our cupidity; but if we personally do not restrict ourselves possible profits will be an encouragement to sound financial importers to continue to bring in goods we can well do without at present. When one hears of farmers walking off their farms in the North Island * and knows of the many cases in both islands of heavy indebtedness that cripple producers’ operations, one realises that there are tremendous problems to be dealt with in increasing our exports. Some results must follow from tightened finance, and they may, if depreciated values continue, be brought home to the most of us—the necessity for harder work, less pastime, more attention to the broad necessities, and Jess to pettifogging details that waste valuable and irrecoverable time. In view of the industrial position in England, which, through the appalling strikes occurring, must affect their buying power, there has not for some years been a time more pregnantwith the necessity hero to practise economy and to get to work and not argue about it. 1 sincerely (rust that Sir George Fenwick’s interesting and timely remaraks will be not only studied, as they well deserve, but will he acted on. (Applause.

APPOINTMENTS.

Mr I). E. Theomin proposed the reolcctiou of Mr Hazlett and Mr Gilmour as directors. It was quite evident, ho said, that the board as a board did excellent work, and he was satisfied that Messrs Hazlett and Gilmoiir were pulling their share of the load.

_ Captain Sundstrum seconded the motion, remarking that no company could get a better team of directors nor a bettor manager. The motion was carried. Mr Hazlett thanked tho shareholders.

Mr Gilmour, in making his acknowledgmentSj said there was everv reason to behove that the Southland business of the company would grow, and that tho company was finding Southland a particularly satisfactory field for the investment of its funds, whilst none of the securities in that district gave cause for anxiety. Mr H. Hart moved, and Mr R. Gil r kison seconded, the re-election of tho auditors, Messrs Wm, Brown and Co., Messrs G. Blyth and Co. (Dunedin), Messrs Cuthbertson and Webb (Invercargill), and Mr W. D. Revel! (Timaru), and the motion was carried. APPRECIATION OF SERVICES. Mr J. Sutherland Ross moved a vote of thanks to the directors and the staff. Discretion, he said, was a safeguard in any business, and in a business like that of the Perpetual Trustees it was absolutely incumbent that the utmost discretion should be exorcised. He thought that the prosperity of tho company was entirely bound up with the fact that the directors and staff showed such discretion in all their handling of the business. As to the remarks that had been made about economy, ho. would add that it was not for anyone to tell someone else what he might to do, but to ask himself tho question “ What can" I do ? ”

• Sir George Fenwick returned thanks on behalf of the directors. They highly appreciated the vote. The work of tho board was becoming very strenuous, but the board was alive in its duties, and attended to them faithfully.

Mr A. Ihhotson, speaking for the staff, expressed his hearty appreciation of the way in which the members worked with him to carry out the policy of the directors. The company’s business was nearing the five-million mark, and, ns evidencing the progress, he mentioned that, though but little more than a month of this year had gone, deceased estates amounting to almost a quarter of a million had come to tho company.