PERPETUAL TRUSTEES.

Otago Witness, Issue 3353, 19 June 1918, Page 24

PERPETUAL TRUSTEES.

ANNUAL MEETING. The thirty-fourth annual meeting of the shareholders of tho Perpetual Trustees, Estate, and Agency Company of New Zealand was held at the company's offices on the 11th. There were 18 shareholders present, and the chair was occupied by Mr W. E. Reynolds (one of tho directors). The Chairman apologised for the absence of Mr George Fenwick (chairman of directors), who, he said, had left for the far fields of France. In moving the adoption of tho report and balance sheet, tho Chairman read the address prepared by the chairman of directors. The address referred to the chiof features of the year, including the appointment as director of Mr Robert J. Gilmour (managing director of the Southland Times Company). Messrs Rout and Stewart, who have for many years acted as our valuers for Southland properties on which moneys have been.advanced, and who have in other ways been instrumental in extending our business in Southland, will continue their valued representation of the company. Through their efforts estates to the value of £200,000 have been secured for the company. It referred with ; egret to the death of Mr Robert Glendining. Mr James Begg had been appointed to the vacant position. Tho board had also lost the advice of Mr Donald Reid, one of tho promoters of the company. The paid-up capital, which at the beginning of the year was £9375, now stands at £12,500. During the latter half of the year a. call of 2s 6d per share was made, and a special bonus dividend declared for the purpose of meeting this call. This increased the paid-up value of the shares to 10s each, and the total paid up capital to £12,500. The £3125 required for this purpose was taken from tho reserve fund, which had previously been augmented by a similar sum transferred from profit and loss account. Tho reserve fund (£12,500) is the same as last year. Balances due by the company stand this year at £55,733 9s 4d (previous year £35,344 3s), or an increase of £20,389 6s 4d. This large increase is mainly accounted for by reason of the considerable amount of new business which has come to us during the year just ended, added to which several estates of considerable size are at present in course _ of realisation, the proceeds of those portions realised being -in hand at the time of balancing, and there are also moneys in hand awaiting investment. There is a debit balance of £205.7 17s Id at the National Bank, brought about by payments made in advance for clients who were investing in war bonds. To facilitate the taking up of these bonds it was found neccessary in some instances to give temporary financial assistance to clients. Casn on deposit is £7650 for the year just ended, as against £13,000 for the previous year. Debentures and war bonds are shown at £17,500 (previous £3OOO, this, sum being a further investment by the company in Government war bonds. The item mortagages and accrued interest and leasehold and buildings stands at £15,107 Os 8d (previous year £12,539 Is Id), an increase of £2567 19s 7d, of which sum alterations made to premises account for a considerable part. As the book value of our premises stood at a very low figure before the alterations were made, the board decided to charge part of the cost of improvements direct to premises account, thus increasing the book value of the premises, which even now is on the low side, at £1350. Balances due to the company are £45,638 18s 2d (previous year £18,376 8s 7d), an increase of £27,262 9s 7d. This substantial increase is caused' by payments made for war bonds on behalf of clients, land and income and war taxes on behalf of estates and clients, proceeds part realisation of estates placed on deposit, Government estate duties paid on estates under realisation, and advances made to beneficiaries in estates. In the profit and loss account the balance from tho previous year was £6769 17s 4d, which was reduced to £844 3s. Included in the reduction is £3125, special bonus dividend of 2s 6d per share. Add to £844 3s the net profit for tho year, £3335 0s lOd, and there is an available balance of £4179 3s lOd, dividend paid in October, 1917, absorbed £585 18.3 9d. leaving £3593 5s Id. Commissions earned amounted to £5446 0s 2d, and for the previous year £5068 8s 6d, an increase of £377 lis Bd. Interest and discounts are £2132 15s 2d, and for the previous year £IB3B 10s lOd, an increase of £294 4i 4d. The net income for the year was £3335 Os lOd, as compared with £3385 for tho previous year. The small decrease in the net profits of £SO 18s lOd is considered by the board as highly satisfactory when it is remembered that salaries and general expenses, including expenses of removal to temporary premises, have increased during the year "to the extent of £742 17s 4d. The provisions of the Finance Act have had a tendency to draw moneys into the several war loans, as can be seen from the fact that £74.607 has been invested in war bonds by tho company for trusts and clients, a policy which the directors intend to follow as opportunity occurs. It is not always easy to get clients and others to understand that at the present juncture it is their duty to support the war loan, the greater rate of interest which other securities offer being in some cases an irresistible attraction. Sound securities are not offering quite so freely as previously, but the Southland district continues to provide a suitable and safe field for investment. For many years the .directors have recognised this, and they have investod_ many thousands of pounds in that district. Our valuers support the view that the value of land in Southland has not gone beyond its productive value. There is one mode of dealing with land sales that the directors are averse to from a lending point of view —viz., the sale by way of exchange, as these transactions create in nearly every case a fictitious value. In every instance when an application is made for loan on exchange of farms it is thrown out by the board. Tho new business obtained by the comoanv for the last two voars amounts to £726.674, of which amount £212,272 was for 1917 and £514.402 for 1918. .This amount has been secured in executorships and trusteeships, now moneys received for investment in mortgages and debentures, in new agencies, and in attorneyships. One matter that has made for the continued success of the company is its reasonably

low rates of charges, the fact being that tho charges of The Trustees Executors and Agency Company of New Zealand and those of the Perpetual Trustees Company, for acting as executor and trustee aro the lowest in Australasia. The rate of interest on loans has not reached the advance that might have been looked for, in view of the large sum withdrawn for public use by the war loans. Tho normal rate in 1914 was 5j per oent., and stood practically at that rate until 1917, with a few exceptions. The rate may now be stated as 52 per cent, to 6 per cent., according to the security." Mr S. Solomon, K.C., seconded the motion. He had had an opportunity of looking through the figures read out by the chairman, and ho was sure that_ all the shareholders present would agree with him that this document disclosed a most satisfactory state of affairs. The motion was carried. On the motion of Mr H. E. Wilson, seconded by Captain Sundstrum, Messrs G. Fenwick and W. E. Reynolds were reelected directors. Messrs Win. Brown and Co. and Mr Geo. Blyth were re-elected auditors, on the motion of Mr W. Forrester, seconded by Mr C. J. Payne, and it was resolved to increase the auditors' fee from £6O each to £BO each.

Mr C. J. Payne proposed a vote of thanks to the directors, and moved that their.feo be £350 per annum to be distributed as they thought fit. Last year the directors' feo was £3OO.

Mr Solomon seconded the motion, which was carried, and Messrs J. Mill, E. C. Hazlett, and W. E. Reynolds voiced their appreciation of the confidence reposed in them.

Mr J. A. Sligo proposed a vote of thanks to the manager and the staff. This was supported by Mr J. C. Stephens," and carried with acclamation. Mr Park (manager) replied on behalf of the staff and himself, end specially thanked the meeting for its decision to pay a bonus to the staff.