THE PERPETUAL TRUSTEES COMPANY

Otago Daily Times, Issue 21668, 11 June 1932, Page 8

THE PERPETUAL TRUSTEES COMPANY

FORTY-EIGHTH ANNUAL MEETING THE CHAIRMAN’S ADDRESS SATISFACTORY EXPANSION OF BUSINESS DISCLOSED

The forty-eighth annual meeting of the .Perpetual Trustees Estate and Agency Company of New Zealand, Ltd., was held in the board room of the company yesterday. Mr W, E. Reynolds, chairman of directors, 'presided, and was supported by the following:—Messrs Edgar C. Hazlett (vice-chairman), C. Stanley Smith, George Black, Robert J. Gilmour (Southland), Edward G. Kerr (South Canterbury), and Charles;. H. Hewlett (Christchurch), directors of the company, and the general manager (Mr A. Ibbotson).

by which balances of international trade can be safely adjusted, and gold has filled this need in the past admirably. Whether gold alone will meet the needs of the future is a question, but one thing'is certain: no kind of paper money will ever do so. The Otago Daily Times of February 29 last reported Sir R. Horne as having said, when speaking at a, gathering at Bradford, England:- “ 1 am glad to see that a recent statement of the Chancellor of the Exchequer, Air Neville Chamberlain, showed that the world required some metallic basis as tinfoundation of international exchange. This implies the contemplated possibility of u return to a standard composed of gold and silver, which I believe the safest method for reversing the present disas trous deflation and alleviating future difficulties.”

The meeting was well attended, and 'apologies for absence were received from Messrs James Begg (director), R. H. Ireland (North Otago, director), James Brown, and Thomas Somerville. CHAIRMAN’S ADDRESS.

In moving the adoption of the annual report and balance sheet, -the chairman said:—

Few, I think, will have failed to notice that many men of note in Britain are now expressing the opinion that the contract with America for repayment of war debts should not have been so hurriedly Concluded, while others have openly expressed their opinion that Britain must go back to a gold standard eventually, and the sooner the better.

' The forty-eighth annual report and balance sheet of our company having been printed and - circulated amongst shareholders, I have no doubt you will agree to take them as read. Touching upon financial matters generally, one may say “ much water has passed under the bridge” since I had the pleasure of meeting you a year ago, and while some attempt has been made to adjust the flow, the waters unfortunately are still turbulent. How many are ever seeking the cause must be made apparent to anyone who reads our newspapers regularly. What appears to me to confuse so many of us is the attempt we so frequently make to deal with internal and external finance at one and the same time. The subject appears to many so complicated and so_ many hypothetical questions may be raised in discussing it that one must be careful not to be diverted from the object one has set out to explain. For instance, " If ” there had been no war! Or again, "If” we were a country without any debt and without trade with other countries we might perhaps be able to establish some better system of finance more suitable to our needs, though I may be forgiven for saying that personally I doubt it. However, the fact remains we are very much a debtor country and at • the same time dependent upon trade with- other countries for our existence. It must also be remembered that in trading with other countries we do not, in the strict sense, pay in gold but in products, which are stated in terms of gold value for convenience, and further we must realise that all we do actually provide in gold is the difference between what we realise for our ■ products' and what we pay for our imports whenever . the latter exceed the former —plus the interest j|re are called upon to provide on borrowed money. This is clearly where the shoe pinches, and in this connection it is, I think, important to note there never waa a war yet which did not cause prices for natural products to advance promptly, with prices for manufactured articles following more slowly. ' Exactly the reverse applies at .the termination of a war. Products fall first in price and manufactures' follow downwards slowly. We , have, however, already -received some compensation by reason of this process, and in my opinion we will find such compensation becoming more substantial as time advances. Many people, it would appear, fail to see why we should be called on to. pay our adverse externa] trading balances in gold. The answer is simple. Gold has a worldwide value, while “ paper ” money of whatsoever kind' is "created” and therefore has very definite limits. It costs nothing and therefore is worth, nothing except in so far as it is supported by the credit of the country issuing it. Being a debtor country we have insufficient credit to make our paper-money worth any thing, like face value in other countries. Britain, being a substantial creditor nation, has a worldwide credit, and it is this credit which has stood her in such good stead of late. Nevertheless, the British Government are far from-satisfied with the position as it is to-day, as will be seen from the following, taken from the Otago Daily Times of February 27, under the heading—“ The Official British Note”.which deals with the •" Release of Gold Hoards.”:—. “The British Government are in entire agreement with the experts’ views that *a. movement of capital from countries having credit balances to markets showing a deficit is an essential preliminary condition of European reconstruction.’ The drastic reduction in the volume of foreign lending is, in common with other symptoms of the crisis, due to profound disturbance of the economic life of the world caused by the unprecedented fall in the price level, which has made it difficult or impossible for debtors to honour thein obligations. This fundamental cause of the. crisis ; ddn, in the opinion of the British Government, ‘ be remedied only by appropriate action on the part of those countries, which , have accumulated abnormal supplies of gold.’” This, I think, is evidence of the fact —of which I personally am convinced —that the Great War. is primarily responsible for the world-wide financial difficulties which we find present with us to-day. One point which I desire to stress more than any other is that the question before us is not really one of the world’s finance having broken down, as.most people seen, to interpret it, but rather of mankind, by rerison of the war. having ruthlessly upset the equilibrium of the world’s finance. Almost every country in Europe bought freely from America upon credit, thereby contracting debts which ultimately had to be paicj for in gold. Hence the reason why America has vast hoards of gold locked up in her vaults, Again, it must not be lost sight of that America’s belated entry into the war caused a further substantial rise in the value of all her natural products. Instead of adjusting the position at the close of the war, as she should have done by facing and meeting the fall in values, she weakly and unwisely increased the duties on imports. In the face of sUch action on her part it is not to be wondered at that unemploy ment within her borders is quite ns much in evidence as it is elsewhere. Not only has she acquired unto herself the great bulk of the world’s gold, but over and above this she has made it impossible—or almost so —for European countries to trade with her. I mention this because so many people apparently cannot understand how unemployment can be prevalent in America in the face of the vast quantities of gold, she is possessed of. It should be noted that it is in reality not gold which makes a country rich, but rather its volume of trade both inwards and outwards. This, however, does not alter the fact that some substance of value must he recognised as a standard or measure

My foregoing remarks may not appear to be in any way suggestive of any solution of the many difficulties which at present face us in this much loved Dominion of ours, but I trust they will help us to a better understanding of these complicated subjects. In the first place, I trust they may assist each of us individually to realise how fatal is the policy which calls upon each successive Government to provide for extravagant -needs irrespective of how much it requires to borrow outside our Dominion to enable it to provide for these needs—or perhaps luxuries would be a better word to use. Such has been our policy since the war, and any such policy can end only in a day of reckoning similar to that which we are now experiencing and which is much to be deplored. . I hope, further, what has been said may lead many to perceive how valuable gold is to our Empire at the present time, and- consequently to this Dominion. also. By gathering gold to-day we are serving a double purpose—that which will most speedily assist in lifting us out pf our present difficulties, and which will at the same time materially assist our Empire. With farm; products down in value round about 50 per cent, on the average, and gold enhanced in value about 40 per cent., it should be apparent to everyone how advisable it is to make the most of this opportunity. I hold the opinion, which 1 am not afraid to voice, that legitimate, concentrated; efforts in the direction of increasing our production of gold will do more to assist us severally, unitedly and as a country than anything else we can do. As giving some indication of what can be done-and what is actually being carried out in the matter of bona fide effort to win gold, it is : interesting and informative to note that the export figures for the month of December, 1931, when compared with those for December, 1930, show an increase in quantity amounting to 11,1310 z and an increase in value of £46,259. During the first four months of 1932, viz., from January 1 to April 30 last, the gold sold to our banks was £45,200 greater in value than that for the corresponding period in the year 1931. These facts should, I think, convey to us all some idea of the value of the gold industry to New Zealand. The foregoing facts may not be held to affect our company directly, but they certainly do seriously affect us indirectly, and this I, must give as my excuse—if, indeed, such be required—-for referring to this'subject. LEGISLATION.

The legislation passed during the ordinary session of 1931 and the emergency session of 1932 dealt .almost exclusively with measures having for their objects the relief of unemployment, the assistance of our primary industries and the reestablishment of the financial equilibrium of the country. It was not to be expected in so severe a national crisis that any consideration could be given to measures bringing the law of executors and trustees into line with the more advanced ideas and requirements of modern life and , business. These desirable measures must await the advent of happier and more settled conditions. It is sufficient to state that the enactments passed during the last sessions of Parliament have imposed a severe strain on the directors and staffs of trust and agency companies and have entailed much additional work and service.

The principal Acts affecting our business were the Unemployment Amendment Acts of 1931 and 1p32, the Mortgagors and Tenants Relief Act, 1932, the National Expenditure Adjustment Act, 1932, and the Finance Act, 1932. ..The provisions of these measures, which so intimately affect each one of us, are now so well known to the community at large that it would he superfluous to dwell upon each of them in detail. While no one can pretend to view with equanimity legislation which alters contractual rights and remedies so drastically, and while severe criticism can easily ■be levelled against certain aspects of such legislation, the justification for its enactment must bo said to be the extraordinary condition into which the affairs of this Dominion and of the world generally have developed. MORTGAGEES’ RIGHTS AND REMEDIES. The legislation I have just referred to has, amongst other things, reduced interest rates and very materially affected and curtailed the rights and remedies of mortgagees. It is well to remember that capital represents in the main the accumulated savings of the people. These savings become available through various institutions and through companies such as ours, for the purpose of providing loan moneys for both primary and secondary producers. Legislative interference of a general and all-embracing nature implies that the hopelessly insolvent will remain so despite the fact that they cannot possibly meet their obligations under present conditions or even under improved conditions. Capital is sensitive to arbitrary attack, as is shown by the fact that last year only £14,000,000 was lent on mortgages in New Zealand, as against £34,000,000 the previous year. There is always present the danger that legislative interference with existing contracts will further adversely affect the flow of money into mortgage investments. It may also have an unsettling effect in the minds of British investors, and may result in a refusal to renew existing State loans or the imposing of heavier terms. There are those who consider that legislation of the nature of that recently enacted concerning mortgage securities should not have been promoted, and that mortgagees and mort-

gagors should have been left to them) selves to make any adjustments deemed necessary after the fullest inquiry had been made into each individual case. I think there is no doubt that in the majority of cases, and especially those of farmer-mortga-gors, some relief was and still is necessary, but the disadvantage of legislation which compulsorily affects almost all mortgage securities alike is that on the one hand relief is given to many who are not really in need of such, whilst on the other there are many to whom the relief afforded is insufficient to cope with their necessity. Because of this compulsion by law, mortgagees may hesitate to grant relief to an extent greater than the law compels, and may assume that the concessions brought about by law are sufficient to meet the needs of the mortgagor The present period of low prices, whilst affecting all classes, is especially severe on farmer-mortgagors whose incomes have been very drastically reduced. The experience of the officers of our company, gained by daily contact with mortgageeclients, is that the great majority, of the latter are fair-minded persons who are prepared to grant time and in very many instances to make, where necessary, reasonable concessions of a temporary nature to help their mortgagors. In the case of farm mortgages, it is our experience that so Jong as the mortgagee receives a fair and just proportion of the revenue from the farm, based on the amount of his mortgage, and provided the farm is being reasonably well maintained, and the farmer is not hopelessly involved financially, we, as agent for the lender, are not instructed to take drastic action. But it would become an entirely different matter if the whole of the farm revenue were to go solely' to any one of the parties interested and rates and taxes were left to accumulate and to become a charge on the mortgagee’s security, LANDLORDS AND TENANTS.

The provisions made under the National Expenditure Adjustment Act, 1932, for reductions in rents are in line with jdiose I have already referred to as affecting mortgage and other interest rates. In common with the rest of the world. New Zealand is passing through a period of trade depression with the usual concomitants of falling prices, hand-to-mouth buying, lessened turnover, loss of business confidence and, in some instances, writing down of business capital. Because of these adverse conditions, it naturally follows that business firms must of necessity thoroughly overhaul all overhead charges and trading expenses. It is not to be supposed that landlords as a class are unaware of and indifferent to these adverse trading conditions. I think I am quite safe in stating that, quite apart from the provisions of the above-mentioned Act and without awaiting its being made law, many owners of properties under lease to tenants appreciated the necessity that existed to assist their tenants by reductions in rents and voluntarily did so. In some instances the reductions made exceed those provided for in the Act, whilst in others the reductions made are less than the Act stipulates for. All are, however, based strictly upon the needs of the. tenant and the extent to which his particular business has suffered. I feel that rent adjustments which vary according to the needs of the tenant and his particular class, of business are likely to be of much greater help to him than a fixed statutory reduction which does not and cannot take any account of his particular difficulties. The loss of trade and the consequent reduction in profits is much more severe in some lines of business than in others, and, in consequence, I think it should have been left to landlords and ; tenants to make adjustments according to the circumstances and needs of the parties concerned. Few, if any, landlords would during these unsettled times risk the loss of a tried and trusted tenant with a well-established business, connection by refusing a commensijrate reduction in ■ rent where it could be shown beyond doubt that such was necessary. ADMINISTRATION OF ASSETS.

Because of the present abnormal conditions and the consequent almost lifeless state of the property and share market, the realisation of deceased estate assets and the winding up of deceased estates have had, in many cases,, to be delayed. The difficulties associated with the administration of assets, including those arising out of the recent taxation and other legislative enactments, can be expected to bring increased business into the care of trustee companies. It is now more difficult than ever for private trustees to undertake and efficiently carry through work of such an important and technical nature, and with the services and safeguards of an expert trustee such as the Perpetual Trustee Company always available the risks attendant on the appointment of inexperienced private trustees may be avoided. Neither is there the same need for one’s friends to accept gnd shoulder the onerous duties of: a trustee. The statutory reductions in interests and rents will have their effect in depreciating the value of estate assets and in reducing the income therefrom, and in consequence we must ourselves expect a somewhat lessened return from these sources. The cost to us of administering estates has not decreased with their decline in value, but has risen by reason of extra work involved owing to altered conditions. Moreover, trust assets now require more care and attention and many of them require to be nursed until times improve. BUSINESS CONTROLLED. A year ago I had pleasure in informing you that the value of the business controlled by the Perpetual Trustees Company amounted to over six and one-quarter million pounds sterling, and this amount would have been considerably larger but for the all-round decrease in the market value of almost all kind of assets. The downward trend in market values then in evidence continued to a more or less extent throughout the year now under review, and because of this and the continual fluctuation in the market prices of most assets it is impossible to state with any degree of accuracy the actual present-day value of the business handled by our company. As against this, however, we have the satisfaction of knowing that the increase for the year in the volume of our business is not only in keeping with the growth of past years but in many respects shows even greater progress. Having now been established almost 50 years our business connections are not by any means confined solely to Now Zealand, but extend into most other countries. We have many valued overseas clients whose business hag' been entrusted to our care and management throughout many years. BRANCHES. The progress made at our branch offices during the year has, I arn pleased to be able to say, been satisfactory. A considerable amount of new business has been entrusted to our care and given the same close and constant attention to the interests of our clients which has always been a feature of the work of the members of our staff, and which 1 am sure we may safely rely upon in the future, this new business will be managed with results satisfactory to our clients and our company alike. 1 desire to express our thanks in this connection to onr branch directors —Messrs C. H. Hewlett and C. J. Ronajdson, of Christchurch, Mr E. G. Kerr, of Timaru, Mr R. K. Ireland, of Oamarn, and Mr R. J. Gilmonr, of Invercargill, ns well as to the members of branch staffs. THE BALANCE SHEET. It will be seen from the balance sheet i that the paid-up capital stands ns for- I merly at £22,500, but consequent upon la<l year’s appropriation of £ISOO to the re- j serve fund, that fund now stands at £22,500, and is therefore now equal to tlie paid-up capital of the company. It is now proposed to set aside out of the year's profits the sum of £2500, which sum will be transferred to investments fluctuation account. The cash in bank, at £3894 15s

2d, shows an improvement over last year, when there was a small overdraft of £505 6s sd. The investments in debentures and mortgages also show a slight increase when compared with last year, the increase being £OSO approximately. Since last year the balances due by the company have decreased by £314, and the balances due to the company have decreased by £4388

Coming to the profit and loss account, it is very gratifying indeed in these difficult times to find that the net profit of the company, at £6515 12g lid, is only £491 18s 2d less than that of last year. This result has been achieved partly by economies which were made during the year, but the economies were offset to gome extent by unavoidable increased charges in some directions. The existing depression is considerably decreasing the earning power of the company, mainly through the decreased value of assets controlled by the company, and also the reduced income produced by those assets. 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 entirely due to the increased volume of business done during the year that such a satisfactory result has been shown. The available balance, as shown in the annual report of the Directors, is £8305 11s 9d, which it is proposed to deal with as shown in that report. I now move the adoption of the report and balance sheet.

Mr C. Russell Smith, in seconding the motion, said the chairman had given a comprehensive and interesting review, both of the affairs of the company and cf world conditions generally. It was rather difficult to say anything with regard to the extraordinary conditions ruling at the present time, but he could safely say that the world was sick, very sick, and might be likened unto a patient who was seriously ill and whose bed was surrounded by a large gathering of physicians and experts. First of all, there was the spiritual physician, who wished to give the patient a new heart. He thought a change of heart was what the patient required. But the patient strenuously opposed that suggestion; he thought it would be far better to carry on with the old heart rather than take the risk of a new one. The world had made great progress in many directions in recent years, and it was about 2000 years since the message of “ Peace on earth ” came to it. and it was surely a serious reflection on the intelligence of the human race that the world was in the condition it was to-day. Humanity seemed to have concentrated on the petition, " Give us this day our daily bread ” to the exclusion of the other dictum which said that “Man shall not live by bread alone” They next had the economy expert, who wanted to perform an operation on the patient. He thought that if the patient were operated on, and either the whole or part of his war debt was removed the results would be beneficial. The other experts did not agree with that, and nothing was done. Then there w r as the financial physician. He thought that if the patient’s tariff were put under close observation something might be done with it. But exception was taken to that suggestion. Then, others thought that the injection of a gold solution into the patient would be good.. But no, there wag objection again. Then there were the Communists, who thought the condition of the patient was absolutely hopeless and the sooner he was put out of his misery the better. They had no suggestion to make as to what was to take his place, but were willing to take the risk of that. Then, in addition to all those, they had the numerous collection of armchair critics —probably those present belonged to that particular section —and then the newspaper snipers. If it ■were not for the newspapers, he did not know how those people would let off their steam. >■ So they had a multitude of counsellors, and in a multitude of counsellors there was confusion, and more confusion, and confusion worse confounded. The other day he had read a brief statement which seemed to cover the position very well. It was headed “ Currency Nostrums,” and read: — There are as many suggestions offered for converting the present depression into an, era of prosperity as there are patent 'medicines for curing the ills which afflict humanity, and most of

them are about as useful. That, said Mr Smith, was fairly correct. And amidst all the uncertainty, there was one thing that was certain, and that was the matter of taxation. They knew that day what the taxation was, although they were quite uncertain as to what it was going to be next. “ Now, I do not propose to" add to all those nostrums,’' said Mr Smith, “ but I would just like to say a word in connection with New Zealand, and, in passing, I would like to make a very, very brief reference to Australia. As you know, there are elections taking place in Australia tomorrow. To-morrow is going to be a most fateful day in the history of Australia, and repercussions of those elections are going to be felt in New Zealand. As far as New Zealand is concerned, the position is comparatively simple, because we are dependent almost entirely on the prices which we obtain for our products, and Great Britain is our best customer, so that it is from Great Britain, it seems to me, that our salvation has to come. I think, perhaps, the silver lining is, then, that Great Britain is a wonderful country, and the British people are a wonderful people. The get out of holes and corners in some marvellous manner. They have made some marvellous recoveries, and I would not be at all surprised to wake up some day and find that something has happened that is going to improve the position of New Zealand very considerably. I was very interested to notice just recently a brief statement or speech by Lord Snowden, and I think it puts the position very well. He says, ‘The economic crisis is slow to pass, but that it will pass I have no doubt whatever.’ Lord Snowden is not an undue optimist, and I think we may perhaps take a little comfort frofo the statement he has made. In the meantime I think that all we can do is to endeavour to cultivate a cheerful optimism, because if the bottom does eventually drop out of things altogether we will be a long time miserable and we may as well have a little bit of happiness while we can.” “ I would suggest to you gentlemen that this optimism should not be an undue optimism. I think that we are inclined to take ourselves a bit too seriously. We go about rur businesses and we go about the streets without a smile, and I think that, perhaps, something might be done to improve that state of affairs in these troublous times. I think that if something in the nature of a good morning or cheerio club or society were formed it might help things, and, perhaps, the Expansion League or, perhaps, better still, if the Rotary Club could undertake the formation of another society of this sort. I noticed in the reports of the Rotary Club recently that beautiful sentiments of goodwill and brotherhood and service were .expressed. This might bn a practical way of illustrating their theories.

“ Our chairman referred to the matter of gold, and it was very gratifying to know that gold production had increased so considerably. 1 would like just to sound a note of warning in connection with gold. It is a legitimate industry so long as it is kept on a sound basis, but, unfortijnatcly. gold mining and gambling seem to me inseparably associated. 1 came across recently a booklet which has been in rny possession for a long time, and that book contained a brief history of the various dredging companies that were floated during the gold dredging boom of 1000. I was surprised to find that there were no fewer than 2(io gold dredging companies floated at that tune, and it was wonderful the ingenuity they displayed in getting names. There was the Blue Duck, the Grey Duck, but no one was honest enough to have the Lame Duck. There must have been £2,000,000 of capital involved in those companies, and, as you know, many of those shares

were at a considerable premium. Hartley and Riley went over £25. There must have been many millions engaged in that gambling orgy which took place at that time. We want to prevent anything of that sort. There is an air of expectancy among a section of the community with regard to mining, and if any good strike were made I believe that it would take very little to create a boom. Something should be done to prevent anything of that sort. And 1 believe there should be some regulation that no proposition should be offered to the public until it hag been tested and proved by some competent board or authority as a proposition having a fair and reasonable chance of success. That would, I think, perhaps, help to get over the gambling aspect of the matter. But I am just afraid that, although these representations have been made to the Government on the matter the horse will probably have escaped before the stable door is closed. You will notice from the profit and loss account of the company that the profit is slightly less than last year. Now, that is a matter that can give us no concern whatever in a company like this, because, with the ramifications and connections of this company, the profits are sure to come. If they do not come one year they will come the next. And from one point of view it is, perhaps, not a bad thing that the profits are not larger at the present time, because, with the large taxation we will have a little less tax to pay In connection with the balance sheet, there is one item which does not ipnear there, probably due to the modesty of the directors and management of the com-pany—-that is, the matter of goodwill, that goodwill, if it were carefully assessed, would probably be found to exceed the paid-up capital of the company. That goodwill has been built up since 1884. when this company was established, by laborious, conscientious, and efficient work, and I suppose that it may be said that the directors are entitled to a certain amount of credit. Probably some of the credit is due to the staff of the company, which has always been blessed with a careful, conscientious, and competent staff; and the staff in a business of this sort can either make it or mar it. At the present time the company has a staff that is able and courteous, obliging and efficient, and it is quite a pleasure for those of us who have business with the company to come and deal with members of the staff.—(“ Hear hear,”) | I was interested to note that the com- | pany is still contributing to the staff I benefit fund. It must be 10 years since j that fund was established, and the capital I must amount to a pretty considerable j sum. It is a matter for congratulation, I think, that that fund was established, because it is a benefit both to the company and the staff. The company benefits in this way, that it gets a good staff and it gets a continuous staff. Frequent changes of staff in a company like this would be very unsatisfactory. On the other hand, the staff feel more contented, and they know that when the time for their retirement comes along they will be able to retire on a contribution which will keep them in their future lives.” — (Applause.) The motion was carried unanimously. ELECTION OF DIRECTORS. Mr- J. Sutherland Ross proposed the re-election of Messrs Edgar C. Hazlett, George Black, and C. Stanley Smith as directors of the company. The present board, he said, was one in which they all had confidence. Mr J. S, Hislop seconded the motion, which was carried. Mr Hazlett thanked shareholders for re-electing him as a director He added that, without doubt, they had some troubles ahead of them, but they would be faced by directors and staff alike, and he was satisfied they would find a way out. — (Applause.) Mr Black thanked the meeting for the confidence placed in him. He could assure them that the directors would do their best to get things through and that they would worry along with the cheerful optimism that Mr Smith had talked about. Mr Stanley Smith briefly thanked the shareholders for their continued confidence. AUDITORS. Mr N. Paterson moved the reappointment of the auditors—Messrs William Brown and Co., Messrs G. Blyth and Co, (Dunedin), Mr F. A. Webb (Invercargill), Messrs Leggott and Allport (Timaru), and Messrs W E. Best and Wilkinson (Christchurch). Mr P. Power seconded the motion, ■which was carried. * ORIGINAL DIRECTOR. Mr Paterson said he would like to take that opportunity of making a suggestion. He was connected with the firm of Connell and Moodie before the Perpetual Trustees, Estate, and Agency Company, Ltd., was started, and quite recently they had seen that the only original director of the company now surviving—Mr Thomas Moodie —was still well and cheerful. He was sure it would be gratifying to Mr Moodie if the meeting sent him a message of remembrance. — (Applause.) The suggestion was adopted, COMPLIMENTARY. Mr J. R. Lemon moved a hearty vote of thanks to the management and staff for the careful and* capable manner in which the company’s business had been carried on during the past trying year. In addition to the difficulties created by the continued financial crisis, the company, he said, had been faced with the complexities of the novel and experimental legislation dealing with mortgages and with rates. This had enormously increased the work and responsibility of both management and staff, and they were to be congratulated on the very efficient manner in which their onerous duties had been carried out. Mr J. C. Stephens said he had great pleasure in seconding the resolution and also in supporting in every way what Mr Smith had said of the pleasant relations that solicitors and other agents had with the staff. The company was blessed with a most capable and courteous staff.

The motion was carried. The chairman said it lay with him to thank the meeting sincerely for the vote of thanks. The directors had always given all the time and attention necessary to the business to make the most of it. He was voicing the opinion of the directors when he said they admired the way the staff had met the present storm and difficulties. They had risen to it wonderfully, and he would like clients to realise that the best was being done in every case, confronted as the directors were with the many difficulties and limitations which beset them at the present time. There , certainly was a way out of their troubles, and the directors would find it. “ I wish to say a few words in appreciation of the work of the staff,” said the general manager (Mr Ibbotson). “I think enough has been said without my adding further than that the past year has been one of more than stressing strain. Much extra work has had to be done. Legislation alone has meant a good deal of study, in order that we might keep ourselves quite abreast of the law. In respect to the legislation, there necessarily followed a great deal of work to give effect to it. I and other members of the staff fully realise the importance of the recommendations made from time to time by the directors, shareholders, and many business friends of the company in bringing new business to the company. I have always felt, and 1 have 'imbued every member of the staff with the same idea, that we cannot hold new business unless the staff, from myself down, keep abreast of the times and are efficient and tactful in giving full service all the time. There are the old traditions of the company, but unless the staff makes new traditions during the present troublous times, that business cannot be held. I have the utmost co-operation from the staff. Personally, I express my thanks to the chief executive officers of the company, the