TRUSTEES, EXECUTORS, & AGENCY COMPANY

Otago Daily Times, Issue 15142, 13 May 1911, Page 9

TRUSTEES, EXECUTORS, & AGENCY COMPANY

ANNUAL MEETING,

Tlio twenty-ninth annual mooting of tho Trustees, Executors, and Agency Company of Now Zealand, liekl yestorday aJtcrnoon, wis attended by Messrs- P. 0. Neill (chairman), John Roberts, C.M.G., It. Hay, J. Mill. W. Patrick, >P. Fenwick, E. R. Smith, A. Bathgate, D. Crawford, J. Blair, G. R. Ritchie, the Hon. J. R. Sinclair, and Mr W. L. Simpson (manager). The annual report was as follows:—"The profit and 1025 aooount shows a, net profit for tho year of £2110 15s 2d, to which has to bo added (-ho balance of £2205 lSb 2d from last year, making a total at orcdic of £4316 14s. An interim dividend at 10 por cont. for the half-year ending September 30, 1010, was paid, amounting to £500, leaving a balance to be dealt with of £3316 14s 4d. Of this balance the directors rocommend the following approjffiation lo bo made;—To dividend at 5 per cent., making 10 per cant, for the year, J05OO; to bonus at 5 per oent. c,n £10,000, £500; to fce written off office .furniture, £19 18s; to balance to be carricd forward (less manager's commission on net profits), £2796 16s 4d—£3816 14s 4d."

The Chairman said; Gentlemen,—As is customary, I will toko tho report and bal-a-ncc sheet, which has been circulated, as road, and no doubt shareholders lave satisfied themselves tliat it presents tho company as in a satisfactory position, notwithstanding thai the net profit for tKe year is rather less than that of last year, which was £2464 4s, while tiiat of tho year just clored is £2110 15s 2d. At the same tini3, it exceeds the profit for 1909 and that for 1908. From the statement now under consideration it will 1» observed that tho change which t.he then chairman last year alluded to as contemplated has been cariicd out, and that tho company's own balance shoot is sot out soparatcly and distinctly from that of the trust and other fiduciary business of tho company. Directing my remarks first to tlio company's profit and lets account, it will bo found that the expenses for tho year have increased over thoce of last year by the sum of £174 18s sd, the cause being the slight increase made by the directois in the salaried of some members of tho stall, and extra assistance required to l;oe|i the work up. hooking to t.he c.rccKt side, tho item "Agency commission" is less than last year, wliile the'item "Interest and discount" is greater. On the income, taken as a whole, there has been a rfccmiso of £178 10= sd; the increase in expenses and decroase in income thus account lor i'lie diminished net profits for tho year. The assets and liabilities call for little comment. The balance to be dealt with is £3816 14s 2d, which the dircetom are of opinion justifies them in their recommendation ot tho payment of the usual dividend of 5 per cent, for the half-year and a bonus of 5 per cent. As to the statement of tho trust and agency business, it is unnecessary for mo to remark further than to say that it shows the work and cast on tho directors in the management of property of the valuo brought out of £1,626,42 a l'/s 9d, anil the small enarges, as appearing in the company's prolit and loss account, made for such management, which cannot be eaid to lie commensurate with the responsibility involved. But in our charges we havo to bo guided by those made by ethers who conduct the same lino of business. Tho only itean in this statement whicii migiit call for remark is the £62,245 12a BJ, stated to bo on deposit. This sum is ooinpcsccl in the major part of moneys belonging to estates in process of realisation which cannot be invested, but must to kept in a liquid form for division, and at tlio same time not altogether idle. The total money value of the property in the d'.arge and custody of tlho company is, as I base already remarked, set down at £1,626,423 17s 9ci. This is considerably in exoess of what itwas stated at last year, but this'is accounted, for to a large extent by the shares belonging to estates and clients having boon brought into the statement at their market value, which was not previously done. In fact, the system now adopted is to havo everything in charge of title company stated at a pecuniary valuo in tho" company's books, so as to enable a balance to be brought out and thereby a propeir ebock kept on all tho assets of the estates and how they arc disposed of, and the system facilitates the auditors in ilieir examination. As to the agencios established last year at Wellington and Uluistchurch, I cannot report so far that any practical benefit has resulted to the . company from these agencies. This necessarily will take time, 'l.lie prompt payment of'interest is generally a pretty goad index of tho class < f securities and the character of tho mortgagors, and when I mention the fact that at' March 31 t.liero were virtually no arrears of interest, considering t!ho large sum of £722,646 lent out 011 mortgage, this is a satisfactory position. At tho present time real securities of a suitablo character are not by any means plentiful, and there is more money m tlio Dominion than can find investment; consequently tile rate of interest has at the moment- a downward tendency. It. is impossible to say how long this state of tho money market may continue, especially when we call to mind how suddenly two years ago money ac-emcd to get scarce without, apparent cause, and interest rose to 6 jwr cont. It will bo observed that tho notice of business to be transacted at tho meeting mentions t.ho consideration of tho remuneration to directors. This tho manager put down on liis own motion, having been led to do so by remarks made iit hut general mooting of shareholders. I would wish to say in this oonncction that when it. was mentioned to the disjoin tihey were of opinion that the amount now paid to tlio dircctori; was quite as much as they considered tho company could afford, and 'think there should be no alteration in the meantime. I move the adoption of the report. and balance sheet.

Mr Bathgate, in seconding the . motion, said it was true that the profits had not been quite so largo as last year, but a company doing' business like this company did might cxpi'ct its profits to fluctuate. The [josition disclo-cd by tho balance sheet was eminently satisfactory, and it was also satisfactory to note Ihe care in the selection of securities and the prompt manner in which interest was paid. He regretted tliat tho chairman had not given them any information regarding the work of the agencies established in Christchurch and Wellington. Ho did not know Jiow business was dono there, but. if ho might bo allowed to venture upon a small criticism l ho would say tho selection, cf agents hud not been the'most judicious; r.ot that ho meant to reflect upon the agents whose names appeared for the first time in the front of the' report. They were excellent in t heir way, lie, however, thought in regard to trust business, the fact that a firm of solicitors represented the company must, in a measure, • tend to prevent other solicitors from putting business in the way cf the company. He knew that a good mairy years ago, when he was representing tho Public Trustee, (.he agency was taken from him for that reason, and he oould not but admit, the justice of it. It. was no personal reflection unoir him, and at the same time he was offered the position of solicitor to the Public Trust- Oflico, AVcllington, which ho declined to arcsnt. 110 should think a large, firm of .mevch-mts would

not bo the most suitable agents for a. company. According to his view a loading firm of accountants would be better agents.'However. this was only bv the way. and*a matter of detail, and he had much pleasure in supporting tho motion. The motion was carried unanimously. Mr J. Mill moved the re-election of Mr P. C. Ncill and the Hon. J. K,Sinclair to the position of directors. He mid Mr Ncill had bsen connected with the company from it? very commencement, and although tho f.".me could not. be said of Mr Sinclair' every shareholder knew that gentleman had "carefully wntched over the welfare of file comoany. He did r.ot think tho. comrranv cnuH have dono better than it, h;l ('one i n findinternet) of sfnndii'tr which those firms in Christchurch and Wellington had, to represent it i's agents. Ho wi:s sure the boa'd of directors hrd done good business by appointing the Ct"-istchuT.li an'l Wellington representatives. Tie way pleased to poo that the company had f-irned over a very J, r - rn sum of money. and thought the tiii:o bad arrived when the directors should receive' a lit*!" n"'Te 'ban t.h«7 received at present. Mi* D. C'vnvfn-d seconded t-ho motion. wi'Hi w-s carried,

Tile rimi-man. ir> return!-.!.' Ilwnks fo* hh ro-nloWion. mid. ro.ovmline llm pnint raiwl by Mr fcifligato <\<s to fh« appoint. m-nt '•f a.Tonts, <h« matter had br<»i ca'-e----fnlly dnbtl.od .-nd fliorourhlv ■---. P ; n f„ j, v *lio ilirctnrs. T t. wa c n. '-nt.Wr thin" to crot «crontf. for a Wpw Vl?*. t'ljs, , w | was only after deliberation that |I-n a.wi'r, -nnoi*>|/vl.

Tl-e T T on. .T. H. Si»eV)i'' also t'lankrd ci,. v . n ',r.i-]o.rs for re-'UHinir Km. JI P h-d ~.o rri j, vo ns |i. n f r >vi|v r f Mr lvi:t w.'nt AT- Vo-ll b-d s-jid !'■ w?c "W.l'f r nr Irni r n. Tl-n r -;"«r)lv <--!Ht '*r \f» TWvmfn bnrl jj_ Tlif-e. \vrrn cr.-r"'"! re,"<j-—<s — 1, V tV,p n <1.« a..-, i n rPnr -~ /lr i t.hem ir , Vcnin r ''ii! '-n? the fi-n Hy-.-iir'o.' l . W. TV<vvn ar.' l r '~. :— 1 A';, p; T,. I >"'iF , in n;w'nt<v:l nirl : t-r«. M" H. T?. Tiitpliin innv-"'. rv l-rJi.-If rt 'Vn '■■harolmlder'. a verv Vsi" 1 " vnfp rf Mr-'"ks fo t.lio •".innier and sb" fo>- their wnr'- during tho pi=t year. TCo"ills depended to a groat extent upon the staff,

and ho thought they wore very fortunate in having a manager such ns Mr Simpson to look after ilioir affairs, and ho (Mr Ritchie) understood that Mr Simeon had an exceedingly capable staff to assist hlni. Mr Simns-Jti, in acknowledging tlio compliment paid him and tho staff, raid a. groat deal depended the management, and particularly upon tiro staff to carry out tlio details, and tlio details of a business like theirs wsro enormous. He proceeded to refer to the matter raised by Mr Bathgate, and gave reasons why tlio selection had bosn made.