PERPETUAL TRUSTEES

Otago Daily Times, Issue 19204, 21 June 1924, Page 7

PERPETUAL TRUSTEES

FORTIETH ANNUAL MEETING. A PROSPEROUS YEAR. BUSINESS approaching £4,000,000 MARK, The fortieth annual meeting of tho Perpetual Trustees Estate and Agency Company of Now Zealand was bold at t!ie company’s office yesterday morning. Mr W. F. Reynold,; presided over an attendance of about 20. THE ACTING CHAIRMAN’S ADDRESS. The Acting-Chairman, lu moving (ho adoption of tho report and balance sheet, said:— Gentlemen,—l am sure we all miss to-day from his accustomed place our esteemed and respected chairman, Sir George Fenwick, who, as you know, is at present visiting Great Britain. For many years past Sir George has taken a keen and active interest in the welfare and advancement of the company’s business. He has deputed me to convey to you at this meeting Jus hearty greetings and wishes for a successful meeting, which I have now much pleasure in doing. Although not actually prevent I am sure ho is with us all to-day in spirit. Likewise we have not with us at this meeting our South Canterbury director and our Oamaru local advisory director, Messrs E. G. Kerr and Robert, Milligan reflectively, who are also visiting the Homeland. I am sure 1 shall bo right in conveying to all throe gentlemen the wish of this meeting (hat their trip abroad may prove both pleasurable and interesting, and that in due time wo hope to soo them back amongst, ns. I also much regret; to state that Mr Bark, our general manager, is not able to he with us to-day. After many years of work in tho company's interests Air Bark’s health became someI'li.al; affected, and in January last it was decided that he be given a rest. I know I am only voicing- Hie wishes of all present when I express the hope that Mr Bark will soon ho restored to health and strength again. _ I am very glad to bo able to say he is improving. At last annual meeting, tho chairman began by congratulating the shareholders on the steady progress of the company’s business at all the different branches and agencies. I am pleased to be able to say your directors can again extend similar congratulations lo shareholders. The past rear has boon a meat satisfactory one. and the present outlook augurs well for tiio future of the company. Before, however, touching upon matters directlv affecting flic company, it may be of interest to touch briefly upon financial matters generally. There can be no question but (hat tho high price of wool has lifted us along wonderfully. Personally, I would have preferred a smaller rise and a surer continuation of it. If wo go back to the year before the war yon will find our exports totalled £22,000,009 annually. During the war the value of exports, as you know, rose annually, until one year the value amounted to about £50.000,000. At our recent Winter Show, tho Right Hon. Mr Massey —in his address as reported—said: “Last year was u ‘record’ year, and that up to March 31 the exports amounted to £51,563.000, and the imports to £44.401,000, showing a very satisfactory margin between the two. Taking the total trade, its value was £96,054,000. and he wished to express tho opinion that this -was a record per head so far as individual trade was, concerned. He believed there was no other country in tho world that could show results. so far as its trade per head was concerned. so satisfactory as those of New Zealand ” _ I agree with this, but docs a flush rise in any given commodity such as wo have experienced in wool tend towards greater conservation of the forces of those participating, or towards greater looseness in expenditure? At the risk of being considered somewhat of a pessimist, J - must acknowledge I believe tho latter. Taking an overhead glance back upon onr track during the past 50 years, one must acknowledge that -we—as a country—have been richly favoured. I, have already shown how our exports have increased,' how excessive they wore during war years otving to war prices, and how excessive—if -I may use the term—t.hey_ wore for tire past year owing to the exceptional price of wool, and yet is the dominion as a whole sounder financially as a result? Each one in tho community should n,sk himself this question. For my part I must candidly admit I do not think so. I recognise (hero is a. happy moan in nil things, but in Now Zealand the way, in reality, has been made so easy for us all over so long a period that wo arc apt to become too optimistic as individuals, ns a community, and as a country. Would you ask me to suggest a remedy ? I am of opinion that more borrowing should bo done locally. The day has come when wc should aim to be more and more a self-supporting country. I recognise that greater local borrowing would tend to tie up much of the surplus wool money now floating in our midst, but tho true wealth of any country must lie—as with any company in its reserve funds. Onr wealth would bo prodigious were all our interest, public and private, paid locally, and this is the only safe reserve fund we tan accumulate as a nation. This. I know - , cannot be for many years to come, but wo should encourage it in every way possible from this day forth, yearly standing more and more upon our own feet. In other words, wo should from time to time aim to gather into sound investments more of the surplus money available with the hope cf preventing undue speculations, unnecessary increase in land values, and, worst of all, heedless expenditure. both in the interests of tho individual concerned and in the interests of tho community as a whole. STATE ADVANCES. Tho State ir. again actively engaged in the business of lending money for mortgage purposes. Wo do not, of course, object to its activities, as we recognise that the State can go further in helping (he struggling farmer and others than can trustee companies. Our clients are, however, losing a number of first-class securities to the State Office, tbo owners of which cannot be classed as struggling farmers. and who can w'ell afford to continue lo do business with us. We. also know of instances whore sound, but not quite such good securities, have been submitted to the Stale Department by farmers who are realty in need of tho department’s assistance. which so far has not been granted I Item. Tho position in respect of many of these latter seems uncertain, and, to tho cpnlio.mts, unsatisfactory. Tbo Government valuers are proving merely hitman in that, with so many applications before them, they are naturally recommending only what is really gilt-edged. Tho question presents itself as to whether the State loan money is being used just in the way It was intended. Wo were given to understand it was tho hardworking, straight-going, honest but struggling farmers who were to have the preference. Of tho new loan of five millions it is thought that from one In two millions will he available for advancer- to rattlers, but. it is possible that portion of this money has already been used in anticipation. The loan carries interest at the rate of 4J) por cent., but at Ihc issue price of £95 per cent, the Government will pay on a flat interest rate almost 43 per cent, without tailing into account any of the costs connection with tiio flotation. Mortgages now bear a. stamp duty of 5s per cent., which was imposed at the time the Government was considering ways and means of increasing its revenue. Tin's duty has to bo paid by the borrower, and tends to increase bis expenses in arranging a mortgage. _ State mortgages are. however, free of this charge. It is somewhat inconsistent; to allow- one class of mortgagor to go free, while the others pay this duty. RATE OF INTEREST. Speaking generally, it can be said fhat the money market shows a hardening tendency. Koine few months back the current rale of interest for first mortgage securities stood at. 5J per cent, but of lain it has had a tendency to rise, and at present 6 per cent, is looked upon as ■ being tiio current rate of interest for such securities. Some local bodies in the dominion are offering debentures bearing 5$ per cent., ami. in some instances, 6 per cent., ami some of I he money that ordinarily would be available for mortgage investments is going into these debentures. This fact has had considerable effect upon the amount available for farm and other classes of mortgage investments, and may, to some extent, account for tho rise in the interest rate. A rise in tho rate of interest in a producing country such as New Zealand undoubtedly is, must have a .steadying effect on land values and tend to reduce speculation. and any reduction in speculation is <p ho desired, especially at the present time. BANK INTEREST. The expansion of our business has necessitated the opening of branch hank accounts in various centres. At times companies wid firms find it necessary and ad-

visable to temporarily overdraw an account at one branch whilst having considerable credit balances at another or others elsewhere. No allowance whatever is made for the latter, whilst interest is charged by banks on the full amount of the former. AVhoro the one firm is doing business with the one particular batik, tin’s seems unjust and inequitable, and is wholly in favour of the bank. The matter has liecn ventilated in the past, and should not be allowed to drop. It is for tho Associated Banks to provide some measure of relief, which surely is reasonable and equitable. LEGISLATION. During the last year no very important legislation directly affecting the operations of our company has been passed. We arc. of course, very interested in tho operation of the Land and Income Tax Acts, and. while recognising that it is well-nigh impossible, taking into account the complexities of, and constant changes in, modern civilisation, to obtain an ideal Act, I think that an equitable system is in the course of being slowly evolved in Now Zealand. A new Stamp Act came into operation this year, and, while it naturally seized on every reasonable avenue for getting revenue, yet it corrected some anomalies, and consolidated the Stamp Law, The discharge of mortgage duty is a duty which we think should not have been raised. It is now 12s 5d in most cases, but the poor mortgagor who has perhaps exerted himself to the utmost to piny off his mortgage, in all cases where his mortgage is over £209, finds himself liable to an extra tee. The Rent .Restriction Act expires at the end of .Inly of this year. The shortage of houses is still very acute, and until a normal condition of affairs is reached wo ifiink* it logical that some sort of reasonable protection to tenants should be granted. Our company controls a large number of tenancies both in respect of business premises and residential properties, but tho Rent Restriction Act applies only to dwellings paying a limited rental. Although the Act in some measure may he said to be adverse to the interests of our landed estates, yet, on the whole, it is not. perhaps, legislation to which we can very well take exception. The Moratorium Act will expire in December next. Your directors realise it is a debatable question whether or not, the Act should be given a fresh term. Doubtless it has served a good purpose, and w as, perhaps, a very necessary enactment at tho time. It has, however, in many instances prevented companies such as ours closing up deceased estates with the usual desnatch, and beneficiaries under wills and trusts have been put to considerable inconvenience, and, in some cases, loss, finding the securities are not easily negotiable, and thus not being able to obtain moneys duo to them. In some cases undue advantage has been taken of the provisions of the. Act by those quite able to carry out their obligations. This, I suppose, was inevitable. However, if it is removed in December next, your directors do not think it will cause any very great inconvenience to the southern portion of the dominion. HIE MAKING OF WILLS.

Ihe occasion cf the annual meeting seems to bo an appropriate time to refer to a few matters which tho experience of the company has proved to be of importance to testators and those persons who are proposing to make their wills. This experience shows that usually the estate can be best administered when ample poVvers and discretions affecting management of estates, retention of good shares, choice of investments. incidence of expenditure out of capital or income, are given to an executor or trustee. If a trustee’s discretions and powers are too limited, much trouble and worry are caused, and costly applications to the court are sometimes necessary to rectify the neglect or omission cf a testator. It even happens that an application to the court will not produce tho necessary relief on account of the very wise principle that the court should not speculate arbitrarily on what the testator intended to, but. did not, insert in his will. The contention I am striving to bring before the testators’ notice is that if they are prepared to put all their faitii and confidence in tho executor and trustee of their wills, they should give such executor and trustee wide powers. The present state of trustee Jaw has certainly made very largo advances in this direction of recent years, but there are very many useful powers which will not be road into a will without special or express mention by the testator in his final document. These remarks are perhaps more pertinent when applied to such strong, popular, and welltried trustee companies than to private individuals, but while the law should bo jealous of extending the powers of trustees arbitrarily, _ yet your directors think legislation containing certain of the powers given to tho Public Trustee in the Public Trust Acts could, without detriment to a testator’s estate, be given to trustee companies. However, until such legislation is passed, your directors trust that testators will, when instructing their solocitora to prepare wills appointing this company as their executor and trustee, give us the widest powers consistent with their wishes. Examples of powers very frequently loft out of wills are tho followingßovver lo trustees to buy a trust house fer a widow while enjoying a life estate, and power lo re-sell same etc. ; power to trustees lo grant an allowance cut of capital to a widow of life tenant in cases of .serious illness or other sufficient reasons, if the estate is not a largo one; power to trustees to determine what moneys, income, or nrofits are to be treated as capital or income and what expenses are to ho paid out of capital and income respectively; power to treat all income, rents, and profits accruing at date of death as income, without the necessity of apportionment. Wo know of testators who thought all these powers were as a matter of course granted lo trustees by law. but on learning they were not, they quickly instructed ilieir solicitors to make fresh wills including such powers, thereby helping their widows and families, and. incidentally, saving much expense and worry. Shareholders and tho public generally perhaps fail to realise boy." judicial a company of this kind can lie, and so often is called on to be. Since I joined the board innumerable have been the small difficulties and dissensions raised concerning and between beneficiaries, yet I do not remember one case which has not been amicably adjusted. The directors elected by the shareholders are independent of any legatee or beneficiary, and therefore every point brought before them is deal with in equity. In some cases the decision arrived at may have to go before the court, and in such case is invariably upheld. I assure you. gentlemen, th’o one thing I have marvelled at since joining this board is the wonderful power a trustee company has for settling and .adjusting little differences which, in the hands of private trustees, would often end in the courts. The matter is. to my mind, of great importance, and I commend if; <o your consideration, and, as before slated, making the powers in the will as broad as possible. Things happen after death that one cannot possibly foresee or have any anticipation of, and with broad powers in its bands, you can depend Upon a hoard like this board never failing you in adjusting the apportionment reasonably and satisfactorily. It is pleasing to note (hat the Family Protection Act has exercised and is exercising a beneficent influence in this country. Its influence over testators is quite marked, and now one finds that justice is usually meted out in wills to a wife, and children where formerly grave injustices were perpetrated. As a trustee company with a large experience wc can confidently state (hat. testators are recognising their responsibilities more and more in their wills, ami are not leaving if. to tho law lo do justice to their nearest relatives. I refer to the Act. as its effect saves cur officers a great deal of worry and anxiety in the .course of their arduous and onerous duties. Perhaps I should again draw attention to the remarks made liv the chairman at, the annual meeting in 1920 w-hen he stated in order lo remove any misapprehension that Ibe directors of such a company as the Pernetual Trustees have an opportunity of knowing all about a client’s affairs:

“It will be useful if I state that the directors cf this company know nothing of these matters: and. further, ever since I have been a director I do not remember the contents of a will being placed before the Board of Directors by tho general manager. There are instances where a clause of a will, in the opinion of the general manager, is not consistent, and this danse is brought before the directors for consider;.iin and dire’tin, but beynd this their duties as directors are more particularly in connection with questions of policy, finance, anil investments, ami net prving into the contents of anyone’s will either during life or after death. The company’s general manager is a confidential advisor of testators when they are preparing I heir wills, and tie is (he confidential anil trusted officer of (lie hoard. Estates falling in for active management are realised, and it is onlv when important matters connected with estates require the combined consideration of the board and the general manager that the directors are brought, into acquaintance with some of the detailed provisions of any will in tho company’s hands.” Though perhaps unnecessary, I might emphasise the fact (hat all matters placed in the company’s hands are treated as strictly confidential, the directors and all members of the staff being bound under bond to observe the strictest secrecy.

SAFE DEPOSIT LOCKERS. J( is pleasing to iind that the installation of our safe deposit lockers lias proved a derided success, and that, frequent applications for same liavo necessitated during Uio year a further lot being installed. They are available at any lime dining office hours, and may bo routed for a small annual payment. STAFF BENEFIT FUND. You will have noticed from (ho balance sheet the setting aside. of a sum of £1250 as a nucleus for a staff benefit fund. For some time oast your directors ami the general manager have had in mind, and have prepared for (ho inauguration of such a fund. Considering the growth of the staff, it was felt that such a fund would bo in tho interests of both the staff and the company, and that the tirno was opportune for its establishment. Each officer of the company contributes to tho fund a percentage of his salary, tho company contributing a like amount. THE YEAR’S BUSINESS.

Shareholders will, I am pure, bo gratified to learn that our business generally continues to expand in a very satisfactory manner—indeed, so much so that we find it necessary from time to lime to increase our office staff to cope with the largo amount of extra work offering. During the past year dcceaseil estates at tho rate ot just on one a week have come into tho company’s hands for actual administration, and in addition we have taken over the management of a targe number of trusts and agencies. The total value of that which may be classed as entirely new business is approximately £500,000 for (he past year. It is, of course, impossible accurately to forecast tho number of wills made in the company's favour ns executor and trustee. For the year 1922-1923 the estimated value of new business in wit's was £1.200,000, in respect of the wills tho company had knowledge of during that particular year, but: tho total value for the past year. largely exceeds this amount. BRANCHES AND AGENCIES.

Our branches at Invercargill and Timaru are making rapid progress, and a considerable amount of remunerative business is being handled at each of these offices. The Invercargill branch still has the valued counsel and assistance of Messrs Rout and Klowart, who continue to serve the company with groat fidelity, and whose sound advice, especially in tho matter of mortgage investments in the Southland district has bfon of the utmost value to us. It has now been found necessary to open a complete .set of books at tho Timaru branch in order to cope more expeditiously am! satisfactorily with tho business already obtained and offering there, and in this connection vou will be asked at this meeting to appoint an auditor for (he Timaru branch. Your directors suggest that Mr W. D. Rcvcll, F.8.A., bo appointed to that position until the date of the next annual meeting. During the absence in Groat Britain of the South Canterbury director. Mr K. G. Kerr, your directors asked Mr 11. Hay. of Timaru, to act as local advisory director for that district, and our thanks are due to Mr Hay for Ids acceptance of the temporary position. With regard to our Oamaru agenev, I am pleased to say that Mr J. C. Milligan has agreed to act temporarily as local advisory director for that district durine- tho absence of his brother, Mr Robert, Milligan. We now have a considerable business connection in this important district, which your directors are glad to see extending year by year. T lie complex nature and immensely increased volume of our business generally places heavy responsibility upon the principal officers of the company, and it is evidence of the efficiency and organisation of the staff that clients, both abroad and in Now Zealand, arc constantly expressing tneir appreciation of the manner in which their affairs are handled. The clientele of the company has extended to all parts of the dominion and abroad, and it is certainly most, gratifying to the directors and the management and staff lo know, not only that the operations of tho company are thus extending, but (bat the work of the office is giving such satisfaction. It is apparent that clients recognise that in leaving their moneys and estates in (lie company’s care they are petting the advantage of export administration. Constant vigilance has to be exorcised, but tho experience gained during the 40 years since the company’s inception, and the effective organisation of tho staff, facilitates the control of our large interests,’ and ensures economy and efficiency. The company's activities embrace a wide field, and the directors have retained at the head cf each department, the services of highly-qualified officer 1 ;. The value cf (he assets controlled by the company is now nearing the fourmillioii mark.. The security we offer clients and others having business dealings with our company is slightly in excess of £250,000, that is including our reserves, paid-up capital, uncalled capital, and shaveholders’ reserve liability. This is in addition to the very many other advantages such a company e-s ours affords. THE BALANCE SHEET The report and balance sheet have been in shareholders’ hands for tho past 10 days or more, mid I propose lo take them as read. It is hardly necessary for me to itemise the balance sheet, and 1 think you will agree that the position is dourly sot forth therein. The profit for the- year amounts to £6267 18s Id, which is tho highest for any year (excepting the. year 1920) and is £1554 5s 8d in advance of the previous year’s profit. The gross income from all sources amounted to £15.296 12s Sri, as against £14,666 9s 7d for the previous year —an increase of £630 4s Id. whilst, tho expenses amounted to £9028 15s 7d as against, £9932 17s 2d for tho previous year—a saving of £954 Is 7d. Shareholders will, of course, realise that with tho recent writings up of capita!, tho dividend (hey are receiving is proportionately increased. In 1917 tho amount paid to shareholders was £1406 ss, but for the present year the dividend, though at. tho same rate, involves a, payment of a considerably greater amount. For many years the company fought an uphill fight, paying no dividends, and it was found" necessary to write down the shaves. Since the turn of the tide goodwill account has been obliterated, the shares have boon written np to 14s per share, a satisfactory provident, fund lias been established, and you can accept my_ assurance that beyond all tin's full provision lias beer, made for contingencies. The reserve fund, as you will notice, is almost, equal to tile paid-up capital, the interest, earned thereon materially increasing tho profits of the company, anil, your directors hope, ensuring the, payment of regular dividends. This can, I think, be said to be a very satisfactory state of affairs. The fact that it is almost impossible to obtain shares in this company in the open market is in itself evidence of its growth and stability. I now bog to move tho adoption of the report, and balance sheet.

Mr B. Barr, who seconded the motion for (ho ado;)!ion of the report and balance sheet, said there was oven more reason than there was when he seconded tho, motion on a simitar occasion three years ago to congratulate the managers and the company cm an exceedingly successful year. Ho'joined, as all the shareholders did, in the charman's expressions of regret at tho serious illness of Mr Bark, and his hope that, he would scon recover. Tho balance sheet was of such a nature that it did not call for any comment. Good wine needed no bush. He had one niece of criticism to offer. It might be regarded as serious or not. He referred to the apuarnnt vote of want of confidence in the Now Zealand and South Seas Exhibition in that the sum of £37 10s in calls on Exhibition shares appeared in the profit and loss and was written off as lost. (h) Ho hoped that at the turning of the first soil on Saturday next they might possibly be induced to recognise that it was an asset and not a If they wanted to make a reserve against it let' them make it a secret reservo and not do it in that barefaced fashion. Apart from that criticism, which was to a certain extent serious, in every other respect (he balance sheet catted for nothing but satisfa'-tion cud pleasure. The nature of the business of this company was such that it did not require any large capital. Its own capital was only required to provide the ne:;eu-i;.ry building property and furniture and what small amount was required for current expenses in anticipation of income Anything beyond that was created, lie tool; it,' for' the' purpose of providing something like security for clients of tho business' 1 , and when they found £83,750 as tho .sum for nne.dlcd-u)> capital it seemed impossible that any call should ever enmo to the company that could not lie met without difficulty.' Tho balance, due by the company represented, he understood, (rust moneys that were lining handled by the company in connection with various estates. The" profit and loss account was in a very satisfactory condition indeed. As tho chairman had pointed out fnero was a considerate increase in the income of the company and a corresponding increase in the net’ profit the company had made. The Daily Times reviewer in reviewing the balance sheet pointed out that, the profit this year was equal to 35.8 on the capita! called up. but it was under 20 per rent, on tbo capital and reserves. On the market price of* Uio steams to-dav the return was about 51 per cent. If the reserves were capitalised tho present dividend of 15 ncr cent, would only return 8.3 per cent. From that point of view the dividend to tho .shareholders was looked upon as reasonable.

This business was not like a manufacturing and trading concern. It was more like the business of a. banker or accountant -which was not dependent upon capital. They might say of this company that if (hero was any business in the city entitled to bo called the Rotnrian Company that was it, with “service before self.” Service faithfully rendered yielded a hstfer return when it was not. rendered for the purpose of getting- a. return, but. merely for the purpose of carrying out the duty imposed on (hose engaged in the busmens. Thai; being so they were very glad the directors had established a staff benefit fund. The business was carried on by a staff of expert,-, mostly young men m whom the directors had implicit’ and complete confidence. The chairman had moii-1-iiicd some remarkable figures —that they were receiving something like an estate a week to control. 'That seemed to him to he a quite striking record in a small community like tin's. 'The chairman had adopted the very good plan of bis predecessor of making some remarks regarding general matters. lie would just like to veter to the matter of bank interest and branch accounts. The Associated Chambers of Commerce had set up a committee of Wellington men who were at present conferring with the associated banks about the general matter of bank charges and interest, and this matter no doubt would ho dealt with at this conference. COMP AN Y TAXATION.

Referring to the matter of taxation, in which they wore all very much interested just now, (hey were very glad to learn from Ihe newspapers that the report of the recent commission was unanimous. Air Massey had expressed great confidence in the members of that commission, so ho thought they might reasonably expect that the recommendations cf the commission might bo given effect to. Knowing - the strong views held by Iho chairman on the ‘-object, lie though! they might reasonably look for a reduction in their taxation. They ’were very giad their friend Air Jas. Begg had been "oh l-he commission, audition inferred from the fact that tho repp-’, t was unanimous that the recommendation regarding company taxation would be in ihe direction that some of them thought it. ought to be. At nnyrate tho Prime Almister had definitely promised that there would be considerable reduction in the weight of taxudion. That being so the companies ought to benefit. Ho hoped that tho differentiation between interest on mortgages and on public debentures would he done a wav with. —(“Hear hoar!”) That bad a good deal to do with the difficulty that farmers and the farming community had to got money. It would tend lo curb the tendency of lo”al bodies to overborrow. ITo agreed with tho chairman’s remarks on local borrowing. ENDING THE MORATORIUM. Tto fdl even more strongly than did the board of di renters about the moratorium. He felt (hat it would not cause any serious trouble—certainly not at this end of (he. dominion if the moratorium were allowed to lapse finally at the end of the year. It was first enacted in 1914, It had been repeatedly extended and rcpcatedlv amended. In 1915 the Chamber of Commerce wrote to Air Herdman. then in charge of the Bill, pointing out the, rights of mortgagees and that there were hardships on both sides. Now they found that in the short extension of the Art (hat the Prime Afinistei" had indicated ho would probably propose he was going to recognise tin's very thing. Mortgagors would have to move in the matter, and the onus was placed on them to show that t'ne mortgage should out be called up. The reasons why ho thought the thing might be ended were that it was only mortgages that existed before 1919 (hat were protected. These must have boon oensidcrablv diminished in number by this time. His own experience went to show that the greet majorit'- of mortgagors had already fared ihe position mid made arrangements for renewal. Those who bad nnl done this were ihe very people who ought to face the position and not allow It to drag on a ivy longer. After 10 years an Act which was enacted with tho obicr! of limiting the powers of mortgagors “dm-iug a pUiie of war” should not 100 extended an" longer, but ended. Sir George IVnwieh had spoken of it as a temporary measure. It was time lhat temporary measure was ended. One matter to which the chairman did not refer, because he dill not leva occasion to do so. was an asset of £19.550 debentures. These debenture* were all sound. Three years ago, speaking in that room on a similar occasion, he had ventured to niter a certain word of warning. He thought he might venture to say that experiences and developments subsequent lo That time bad amnlv proved the i e-essily for- the warning then uttered. He had much pleasure m seconding the motion and in ecugrat ulat inff the di’-e-tors and the company. The motion was carried unanimously. RETIRING DIRECTORS RE-ELECTED. Air C. J. Payno said he would .move- - “That the retiring directors (Messrs W. E. Reynolds and E. G. Kerr) be re-elected and that the remuneration of the directors he increased to £BOO, to bo apportioned as the directors think fit.” The speaker raid they all knew the way the directors had worked, and there was no reason whv they should make, a change. The present remuneration of the directors was £550, out of which £IOO was voted lo ihe chairman and £75 to each of tho ether six directors. He thought that in a large concern like this the sum at present paid was much too small. Two of tho directors came from places beyond Dunedin Mr Gihnour from .Southland and Mr Kerr from 'iiina'ru. It was necessary that they should take an interest, in the company in Invercargill and Timaru, and they had proved that they did *o. They did a considerable amount of work in those places and had a good deal of responsibility, and he thought they were entitled to a higher remuneration. The addition which ho proposed would enable that to be done, Tho chairman attended at the office every morning. and sometimes he spent most of tho morning in dealing with (he business of the company. Tho local directors attended every meeting, and wore constantly called on to go into matters with the chairman. The shareholders could not expect ihe directors to go on at the present rate of lemunerat ion. He. thought tho meeting would agree that they were most fortunate in regard to their directors. Tho services of tho present directors were appreciated. and if the company was to continue its present stale of success they must continue to have directors who enjoved tho confidence of tho public. The directors ha f | done their work well and conscientiously. The members of the. legal profession had a lot to do with them, and could sneak authoritatively as lo the work (hev did. He thought his fellow-practi-tioners would agree with him when he said that tin* work of the directors of this eompanv was second lo none iu Dnuerlin, ,-md no was certain that it was appreciated, when they considered the fees paid to the directors of other companies who bad not half Ihe responsibility of (heir directors he thought shareholders would agree that the prnnosed increase was well deserved. At mo suggestion of the chairman, Mr Payne agreed (hat the proposal in regard to salary should form a separate motion. the motion for the re-election of the retiring directors was seconded by Air '.I. G. Patterson, and was carried unanimously. Air Payne then moved that the remuneration of the directors be £BOO for Ihe ensuing year, to be apportioned as the directors think fit.

The motion, which was seconded by Air 3V. F. Sligo, was carried without discussion. The Chairman said ho wished lo thank them for flic honour confe'red upon him by re-elect ing him to (he directorate. lie considered it an honour, because he looked upon this company not so much ns a commercial concern as a fraternity.. They could always count upon him (o do the ii-rv best possible as long as he was connected with the company. After returning thanks on behalf of Mr Kerr, who is at present at Dome, Mr Reynolds expressed the sincere thanks cf himself and his colleagues for the increased remuneration just voted. The duties were undoubted!}' onerous —very much more so than (•■- had been and he was sure lie was voicing the opinion of the directors when he said that (he increase would he most heartily appreciated. The directors were all interested in the affairs of the company, and ir would he diflicull to got a Iroard working more m harmony than Unit of (heir company. AUDITORS. Mr Forrester moved that Messrs W limmi and Co. and Mr George Blythe and Co. be re-elected auditors for (lie ensuing year at, the same remuneration ns formerly, and, that Mr W. I). Revell, F.P.A., bo appointed auditor of the Timarn branch for the, ensuing year at a fee of £lO 10s, and that his certificate he accepted by the company's Dunedin auditors. The mover said it was pleasing to know that tbe business in Timarn had increased so much as lo reipiire an auditor there. lie understood that, Mr Revell represented South Canterbury on the New Zealand Society of Accountants, and therefore must lie an auditor of some repule. The mol ion, which was seconded by Mr J. C. ,Stephens, was carried. VOIT, OF THANKS. Mr Alfred James said lie had very much pleasure in moving a vote of thanks to the directors and staff. He had had the pleasure of corning in contact with tlio managers and staff a good deal, and he had invariably «

found them obliging, carolul, and strict. In a, company of this sort the whole management had to ho what one might term highly specialised. Its business required specialised treatment and a lot of tact and consideration in dealing with clients. Ho was satisfied that the people got consideration from this company and that they would gather more a.nd more round it. The staff, from (he general manager downwards, was highly specialised, and there was no fear as to the future. Ho was very sorry that their old friend, Mr Park, was not present, but he was pleased that, he was showing an improvement in health. Mr J. C. Stephens) said he hm! very great pleasure in supporting that resolution and in adopting- and ratifying every word (hat Mr James had used. Ho suggested it woidd bo a very’ graceful thing if the shareholders passed a special resolution referring to Mr Park. He would be glad to know Unit ho was in Iho thoughts of the shareholders at their annual meeting. Mr James pul the motion to the meeting, and it was carried unanimously.

Mr Reynolds, representing the directors, thanked them very' much indeed for carrying (he resolution. They all recognised that this company was more a fraternity than anything else. The central aim and object of every director was to make it a narmomous whole.

Mr Stephens then moved that the shareholders extend their sympathy to the general manager in his illness and' their hope for his speedy return to health. Mr M. S. Holmes seconded the motion, remarking that ho had sat at the same school bench with Mr Park, and it was carried unanimously.

Mr A. Ihhotson (acting-general manager), in responding to the vote of thanks to the staff said that on behalf of the staff of fho company at Dunedin, Invercargill, Timaru, and Oamaru he desired to express appreciation of ihe vote of thanks accorded to tho staff. Ho also wished to thank Mr James and Mr Stephens for their kindly remarks in this connection, knowing the high standard set by both gentlemen and having had many business dealings with them, their expressions of appreciation would bo all the more acceptable to the staff. At former annual meetings tho point had bean stressed of tho difficulty there was in .securing suitable men of the right calibre as officers for the staff of trustees companies. This difficulty was a real one and still exist oil. Although knowledge was a very (essential requirement, there wore other qualifications such as tact, great forbearance. and sound business judgment. All those were very necessary in a trust officer, the first two especially so, when dealing with the affairs of elderly people. If the staff of Tile Perpetual Trustees Company had been successful in giving efficient service to shareholders and public alike, then that satisfactory state of affairs had largely been brought about by the foresight of the directors of tho company and the constant interest they had always evinced in everything pertaining to the welfare of the staff. A recent instance of this was the inauguration of a. staff benefit fund, which, while it would not prove costly to the company, would in lime to come prove of very considerable value to the officers of the company. The establishment of this fund was. due to Mr Park and the directors And was highlv appreciated bv the staff. The consideration always shown where the staff was concerned enabled the company to obtain and hold on its staff officers of the right stamp. Shareholders would readily understand that with such a rapidly increasing business as theirs was, with branch offices in other centres and with agencies in the smaller towns, which must in time blossom into branches, it behoved the management and the directors to be constantly on tho look-out for. men possessing , all tho requirements necessary for the makingof efficient trust officers. Ho would have pleasure in conveying the vote to the members of the staff and to Air Park, who unfortunately was unable to be present with them (hat day.