The Perpetual Trustees

Evening Star, Issue 22363, 12 June 1936, Page 6

The Perpetual Trustees

CHAIRMAN'S ADDRESS In meeting you to-day at this, the company’s fifty-second annual meeting, said l Mr Reynolds, I feel justified in saying that for four years past we have been living through days of financial changes and labouring under innumerable difficulties of an unprecedented character resulting from the drastic legislation which it was considered necessary to enact to meet the past and present-day needs of the Dominion. As a result thereof many and varied have been the changes and adjustments which we, as a company, have been called upon to meet. To-day it would appear that we are to be subjected to still further farreaching legislation, the effect of which, upon our company and its clients, both directly and indirectly, we cannot as yet estimate. Meanwhile the position warrants me, I think, in impressing upon both shareholders and clients alike the fact that your directors, management, and staff cannot be held responsible for the curtailment of powers or changes in conditions which may be enforced upon them by prevailing conditions and by the legislature. We can but endeavour to work with the curtailments and conditions so enacted to the best of our ability. It does, however, seem to me permissible to say that the annual accounts we have been able to present to you during the past four years must surely indicate to you. the. efficiency of both the management and' the staff. I personally have confidence in the future and 1 am of the opinion that, as the need arises, any further efforts required on the part of the ananagement and the staff will assuredly be forthcoming. I say this after a careful and conscientious survey of the conditions through which we have so recently passed. LEGISLATION. One or two important amendments were made to Trustee Law during the closing sessions of the last Parliament. A drastic, but very welcome, alteration in the law relating to charitable trusts was passed, providing that where a trust is created for several purposes, some of which are charitable and valid, and others non-charitable and invalid, the trust is divisible, so that the trust for charitable purposes will henceforth be valid. Power was also given to trustees in certain cases to renew mortgages where a decrease in value of the land charged would have previously prevented them from bo doing. _An amendment to the Administration Act, 1908, now makes it clear that where real estate is not effectively disposed of by a testator’s will it shall bo distributed in the same manner as if it were personal estate not disposed of by will. The Acts dealing with relief to mortgagors and tenants were slightly amended during the year, but it is probable that extensive and important alterations will shortly be made to these Acts by the present Government. The passing of these Acts has over the last few years imposed on our staffs an enormous amount of extra work and anxiety, which has, however, been readily undertaken in the interest* of our clients. “ I should, again like to take this opportunity of emphasising to prospective clients the tremendous amount of service which a company of this nature provides. Business and taxation affairs have become so complicated, and the just 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 one is to guard _ against pitfalls or serious troubles with Government departments and others. “We have at our various branches officers fully qualified to deal with or give helpful advice on these matters, and many persons are testifying to the great amount of mental and business worry they have been sayed by discussing their business or administration affairs with us. “ It has come to our knowledge that some testators, who have _ amongst their principal assets shares in a private or family company, frequently appoint private trustees to administer their estates, the reason being that they do not wish to introduce persons outside their relatives or intimate friends into the secret affairs of their company. Were it not for this fact they would undoubtedly have appointed the company as their executor or trustee. These difficulties can often be overcome by a testator arranging for suitable resolutions to be passed by bis company providing for representation by some person other than the trustee company at board and other meetings, or by specially appointing a co-trustee with the trustee company to act in connection with his holdings in the family company. CHOICE OF TRUSTEE. “ I should like to say here that the effectiveness of a person’s will and the ultimate value of an estate depend very largely indeed upon the life, wisdom, and integrity of the executor and trustee appointed to act. The Perpetual Trustees Company offers all the requirements necessary in an ideal executor.

Fifty-second Annual Meeting £8,000,000 in its Control “ Business and taxation affairs have become so complicated, and the just and proper disposition of one's property by will or otherwise has now become so difficult to carry xmt to meet present-day conditions that expert advice is almost essential if one is to guard against pitfalls or serious troubles with. Government departments and others,” said Mr W. E. Reynolds, chairman of directors, in commending the activities of the Perpetual Trustees Estate and Agency Company Limited, at its fifty-second annual meeting this morning. Associated with Mr Reynolds were the following directors: — Messrs Edgar C. Hazlett, C. Stanley" Smith, Hon. W. Downie Stewart, B. J. Gilmour (Invercargill), E. G. Kerr (Timaru), 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 E. H. Hewlett, both directors of the company, and from Messrs T. Somerville and G. Benson.

It never dies, and is never ill or absent from duty. It has experienced officers and ’a wealth of varied knowledge gathered over a period of 52 years. It is always at its post, is vigilant and impartial. Its charges are moderate and very much less than the courts may allow a private executor and trustee, even although the latter may not bo an experienced trustee.” MORTGAGE INVESTMENTS AND INTEREST ADJUSTMENTS. Since the passing into law of the Mortgagors and Tenants Relief Act and other subsequent enactments culminating in the passing last year of the Rural Mortgagors Final Adjustment Act, under which Act stay orders could be granted in respect to farm mortgages, .we have had to be particularly active in the protection, in reasonable measure, of our clients’ mortgage investments. It is generally agreed that mortgagors, and farmer mortgagors in particular, have passed through difficult times,' and that because of low prices for farm products many farmers have been unable to meet their commitments. The great majority of mortgagees are conversant with 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, iu 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 sura 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 iu 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 “ the 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 during or following a slump period, but for many years prior to the recent depression mortgagees lent their moneys on securities valued by well-known and competent valuers, and generally lent conservatively, on those values. I think it will 'eventually be found that stay orders arc 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 haunch, managers have given much thought and spent a groat deal of time and effort on behalf of clients in the 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 force of circumstances and no fault on their part, arc 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 first-named fund are, according to the late Mrs Blakeley’s directions, to be used in affording assistance to the aged poor of our city. The late Miss Mitchell, in creating her fund, directed that the moneys therefrom should ho used in assisting persons who have been adversely affected by the Great War of 1914-18. Both of these ladies were residents of Dunedin, 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 for the administration of help in our city and district, and such help is extended quite unostentatiously and with duo 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 follow 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 learn 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 connection that wo 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 rAnount 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 sum 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 per cent, on that income as remuneration for the custody, safeguarding, and management of these 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 possible. Wc 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 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 convoyed to usl In these, as in all our many activities, wo endeavour to place efficient service before all other considerations. BRANCH DIRECTORS AND STAFFS. 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 connection I would mention the names of Messrs R. J. Gilmour of Invercargill, B. 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 he 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 past year in all the circumstances. The circumstances he referred to, said Mr Ross, were the legislative troubles which were affecting one and all, and, as the chairman had pointed out, the end was not yet. The chairman this year had departed from his usual speech in dealing almost exclusively with New Zealand affairs. They had generally looked to him for a survey of the international and Imperial aspect of affairs, hut this year ho had wisely confined himself to affairs as they affected them in the Dominion. The chairman had given them a very good and extensive rosumo 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 past few years. Mr Ross said he would like to say a word or two with regard to legislation as it affected the industrial side of life. The industrialist was seriously concerned at the rapid rate with which recent legislation was put through. One could only regard it as somewhat hasty. One serious difficulty which was concerning them was the fact that, with shorter hours involved in industry, higher rates of wages, and the restoration to the scale of wages which was operating some years ago, an enormous amount of detail work would bo necessary, of which the Government could have no conception, and the readjusting of their costs by industrialists and manufacturers. It would have been wiser had the same date been fixed for all these various alterations in wages and hours, thus making one job instead of possibly three jobs hi the reaadjusting of costs. Had six months been allowed for the making of the arrangements it would have been much better for the community generally. Like the chairman, continued Mr Ross, bo had confidence in the future of the country and of the company. It was a company with which one was proud to lie 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 bad been built up over half a century, and that the value of the business under their management was close on £8.000,000. Ho had been looking back over some records, and noticed that in the last four years the value of the business handled by them bad grown from six and a-quartcr 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 bo 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 cases in wliich there were varying interests all engaged in the same business, and what made it exceedingly difficult was for the trustee of the company to have to vote in various directions where varied interests were involved. He could heartily commend the appointment of co-trustees to work with the company ki businesses where such things were likely to happen. He would like to say how much those who came into the office on business appreciated the personal touch that existed in the management of their affairs. (Applause.) The motion was carried. Directors. The Chairman stated that the Hon. VV. Downie Stewart had recently been called to the board in place of Mr George Black Ho was sure that everyone associated with the company would realise the value of Mr Stewart’s services. Mr James Bcgg (who was absent in London), Mr E. G. Kerr, of Timaru, and Mr C H. Hewlett (who recently underwent an operation) 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, ho had been afforded a more intimate knowledge 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 Bcgg 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 Co., Messrs G. Blyth and Co. (Dunedin'' Mr F. A. Webb (Invercargill), Messrs Leggett and Allport (Timaru). Messrs W. E. Best and Wilkinson (Christchurch), and Mr R. Finch (Oamaru), were re-elected on the motion of Mr C. Russell Smith and Mr P. H. Power. Mr J. S. M'lunes of Messrs Brown and Co., 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 1 were conscientiously and competently handled. The motion was carried by acclamation. The Chairman, on behalf of the directorate, said that ho could only repeat that "the board had been a particularly harmonious one. and its endeavour had always been that that ■spirit should bo 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 1 would like to add my own appreciation of the work of all members,” said the general manager (Mr Alfred Ibhotson). “It is not possible to carry on successfully snob a largo and many-sided business as ours without the loyalty, harmony, and the closest co-operation of all employees. Bight down through the many years of our existence the esprit do 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 sincerely believe that our efforts to render to the best of our ability efficient service both in and out of office hours are generally acknowledged. Much of our work is' not of a routine nature, and one cannot toll to-day what exigencies to-morrow will bring forth in 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 lie fore self is an ideal motto for the staff of a trustee institution, and, for that matter, 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 vyarrant employees slackening in thpir efforts to servo or putting less energy and efficiency into their work. I feel sure that the framers of the Act never meant it to have any such effect, and we employees should take note of that fact.” (Applause.) The meeting then concluded. k ■ --