TRUST AND LOAN COMPANY

New Zealand Times, Volume XXXVIII, Issue 8646, 3 February 1914, Page 6

TRUST AND LOAN COMPANY

-ANNUAL MEETING. TJIE TROUBLED MONEY MARKET ' The annual general meeting of shared holders of the Wellington Trust, Loan and Investment Company was held ini the Chamber of Commeroe last even* ing. Mr J. P. Maxwell (chairman of directors) presided over an attendance of some twenty-five shareholders. In moving the adoption of the an* nual report and balance-sheet (already published), the chairman said that at the last annual meeting they had estimated that the reserve fund should stand at about £63,600 at the end of 1913. The actual outcome enabled £4OOO to be added to the fund, and to place it at a total of £64,000. They were able to carry forward £lß7l. “I have to congratulate shareholders,” Mr Maxwell continued, “on the favourable results of the year’s operations during a somewhat disturbed period. In the earlier part of 1912, unusual conditions seemed to point to a scarcity of money during the ensuing year, and the board Invited the shareholders to increase the capital,. This course, which followed, was determined on by a general meeting on August 6th, 1912. The advantage gained was that the company was in a position to carry on its business conveniently during a period of troublesome disturbance in the money market in the earlier part of 1913, and to tak«( advantage of tho conditions during the latter part to materially increase tho volume of its business.

“Increase of the item, .‘Land and Income Tax,’ as shown’in our balancesheet,” said Mr Maxwell, “is largely due to higher income tax This tax, paid by the company on the smallest dividend/is Is 4d in the £, the ordinary income tax being 6d in the £ on. incomes over £3OO. The discrimination is excessive and the more marked because the State does not charge the State advances account under the legislation provided for advances to settlers and workers, with income tax on its profits in favour of the general revenue nor with rental on promises occupied by its official staff. In thi< company 70 per cent, of the members are small investors whose dividends average under £4O a year. The State lends-money on mortgage at low rates to a particular section of the community, but it .also accentuates the price of money to the general community by raising the Post Office deposit rates during times of stringency, absorbing funds required for financial and trade purposes, so that on the whole there are grounds for the contention • that cheap loans by the State are to some extent provided for a section of the community at the expense of the majority of the taxpayers. There appears to bo sufficient justification for a further appeal to the Government for the more equitable treatment of companies in respect of taxation.” _ The Hon. Sir James Prendergast and Mr J. A. Plimmer, the retiring directors, were re-elected to the direotorate. - “ On the motion of Mr D. T. Stewart, the remuneration of the directors was raised from £3OO to £4OO. Messrs C. P. Knowles and E. WHunt were re-elected auditors.