PERPETUAL TRUSTEES

Otago Witness, Issue 3509, 14 June 1921, Page 5

PERPETUAL TRUSTEES

ANNUAL MEETING. The thirty-seventh annual meeting of the Perpetual 1 run tees, Estate, and Agency Company tvae held in the company’s board zoom on the 7tli inst. Sir George Fenwick (chairman of directors) occupied the chair, arid there was a large attendance of shareholders. CHAIRMAN’S ADDRESS. The Coairman, in moving the adoption of the annual report and balance sheet vaiready publisher;), said that since he had addressed them i2 months ago great changes had taken place in financial and commercial aitaus throughout the world, and New Zealand had had its share of trouble. In his rental ks to them in 1919 lie had stated: “llic last four years’ prosperity lias been largely created by war money, the circulation of which is now practically stopped, and tins means that the spending power oi the community will be considerably reduced. Should the high market prices for wool, butter, cheese, etc., hold, they will be a great help in enabling the community to lace our heavy taxation, a reduction of which is not likely to take place lor a year or two.” Unfortunately the price oi wool did not hold. This, together with the fall m tlie price of meat, etc., was one of the principal causes of the disturbed state of alfaiis in the dominion that day. He might be pardoned for again quoting from Iris address to shareholders 12 months ago when he had t xpressed the belief that signs were not wanting that a change was at hand and that they must ere long be prepared for quieter times, which would, perhaps, result in a readier response to the fail for increased productivity in their sources of national wealth and for lessened expenditure. That change had coine not very long afterwards, and had caused considerable disturbance in the finance and commerce of the dominion. They might remember that the soldiers’ settlement compulsory loan had been launched in December, and almost simultaneously the banks had been com polled to seriously restrict their advances, and in many cases had called for a reduction of overdrafts. Then in the same month the Government land tax had had to be paid, also the ciiy rates, and in February income tax had had to be met. These heavy- calls for casli payments had constituted a serious financial difficulty to many business firms, as their working capital had been practically all taken up. The opinion had been expressed that the bunks acted too suddenly, but it must be remembered that they had no option in the matter, and further, the community had had many warnings, particularly from the chairman of the Hank of New Zealand, Mr Harold Beauchamp. At chili half-yearly meeting of the bank at Wellington for the last two or three years he had pointedly drawn attention to the inflation in the price of land, produce, and goods, and had called on all to exercise thrift and reduce extravagances. Little heed was taken oi his advice, and there uid not seem to be any justification for blaming the banks doing business in the dominion for being partly the cause of the trouble in which some sections of the community had found themselves. They had to thunk their banking institutions lor consistent help m sound Hading business and ventures, and no doubt they would be the first to make finance easier immediately they could pos-

sibly do so. To add to tiie financial strain to which traders were subjected, extensive payments iiad to be made for hea\y orders oi high priced goods, involving in this city alone probably hundreds of thousands of pounds, and this had been going on for several months. This call for more money rushed interest up to 7 per cent., the rate the banks were now charging. Debentures and shares were the only liquid securities that could be readily realised. A great rush of sales had taken place, with the result that their values fell considerably. But while the world was at present under a dark cloud, there was no use making it darker than it really was. If all classes in the community would help each other, and go about it in a cheerful manner, the monetary pressure would be more lightly felt and would be the sooner surmounted. Above all, they must assist the farmers in keeping their industry going, so that they could continue to produce. It was regrettable that so many ot the returned soldiers who had taken up farming had been unfortunate in their efforts to establish themselves on the land. To all of them they must extend their sympathy and express their cordial recognition of the Government's efforts to tide them over their present difficulties. As they are aware, mortgagees were now asking for the market rate of interest on overdue mortgages, and as the market rate was 7 per cent, many were taking advantage of the situation and instructing their agents to require payment of this higher rate of interest. It would, of course, be unreasonable to expect that lenders should be satisfied with interest at the old rate when they could do much better with other investments, but they must all wish for the return of an interest rate that; did not fall so heavily on borrowers, and was more conducive to the welfare of the producers of ih dominion. Meantime the duty of all was to lie patient and make the best of the present position. lie had not given expression to these views in any pessimistic spirit. He was sufficient of an optimist to believe that the present financial troubles of the dominion were onlv temporary. They would no doubt have to endure them for a year or two. but with gradually diminishing effect, and when the markets for their produce had returned to settled conditions, added to the wonderful productiveness of their soil, which was more and more matter for their own congratulation and for the admiration of the people of other lands, the spirits of producers, traders, and the people as a whole would quickly respond to the genial influences at work. They had only to look at the wonderful figures with respect to the savings of the peop’e disclosed by the latest savings bank and banks of issue figures to realise that the community as a whole was prospering, and had given evidence of prudence and thrift in its daily life. From the banking returns published he found that the people’s free and fixed deposits with the banks of issue ending March, 1914. amounted to £24.030.250. and in March 1921. it was £47,155,730, an increase of deposits in seven years of over £23,000,000. From the Post Office Savings Bank’s figures he found that the total amount on deposit at March 31. 1921, was £43.000.000, as compared with £19.043,029 at March 31, 1914. This represented an increase of nearly

£24,000,000, and added to the increase of the people’s moneys on deposit with the bunks of issue, they had the gratifying aggregate increase in seven years of £47,000,000. The total amount on deposit at March 31 last in the banks of issue and the Post Office Savings Bank showed the astonishing total of over £90,000.000. No doubt there had been and still was, plenty of evidence of money being spent freely on the various pleasures of the day, but the figures he had just quoted showed that there was at the same time a fine spirit oE reasonable thrift at the back of the lighter spirit animating the people’s lives. This was as it should be, and was an augury tor the future welfare of the mats of their population.—(Applause.) TIIE MOHATOniXM. “ The Mortgages Extension Act, 1919,” had aroused much attention and discussion throughout the dominion among those who were affected by it, and shareholders in their company might net consider it inopportune if he made a short explanation of the provisions, as they affected many of the company’s clients. The Act provided that while it remained in force a mortgagee could not call up a mortgage or exercise any powers of sale or commence any action for u breach of covenant (except on a covenant for payment of interest) without the leave of the court as therein provided, but with the limitation that a mortgagee could, without the leave of the court, exercise his power of sale, or of calling up the mortgage, or of commencing- an action for any breach of the covenant, if he had served on the mortgagor a written notice giving him two months’ notice of his intention to exercise such powers. If the mortgagee exercised this power, and the mortgagor gave noUse of objection, setting forth the specific causes of objection, within the two months, then the mortgagee could not prooeed without an application to the court. _ If the mortgagor did not lodge objection within the two months, then the mortgagee could proceed without the leave of the court. It would he observed that no procedure was prescribed for applying to the court for a higher rate of interest, but an examination of the provisions of the Act showed that if the mortgagor would not,, on application heinpr made to him, pay a higher rate of interest, the only course open for the mortgagee was to call up the mortgage by serving on him the two months notice aforesaid. Should he do nothing tnen the mortgagee could proceed to a sale of the mortgaged property, after the two months had expired. If the rnortgagor lodged his objection, then the mortgagee had to apply to tile court, and it was then that the court °i >U ij ° p ’ errninc whether the mortgagor should pay a reasonably higher rate of interest as a condition of the powers of sale, etc.’ being suspended. This Act had been extended to December 31, 1921 by “The statutes Repeal and Expiring Laws Continuance Act 1921.” The Act did not apply to trade mortgages, Repatriation lioard mortgages, and mortgages executed after the commencement of the Act. This meant that all mortgages executed after October 24. 1919, did not enjoy the protection of the moratorium. The moratorium respecting mortgages and the recent moratorium affect.ng deposit money, had proved j ll many instances a hardship. Those who had entered into contracts for the disposal of their money anticipated the payment of their mortgages at the original date of exP lr y of the moratorium, and they all expected to lie able to obtain any moneys they had “at call.” The non-payment of t.iese moneys had thrown many into financial difficulties. No doubt the moratorium m both instances had secured the greatest good to the greatest number for the time

being, but it was only a temporary measure, and naturally would create a great unrest. It might be found necessary to make provision by law for extending the repayment of deposit money over several years, the deposits being reduced bv periodical payments. and all balan ees bearing the full market rate of interest. Whatever course was resolved upon, a certain amount of hardship must result, but some means would doubtless he devised under which the general welfare would bo best served, both in respect, to deposit moneys and mortgages. EXTENSION- OF TTTK COMPANY’S PT'SINESS. The annual report from Messrs Rout and Stewart, their Southland agents, was very satisfactory. The company’s trust and agency business was extending there, and many valuable estates had been secured. He might mention that during the year special arrangements had been made with Messrs Bout and Stewart for the future conduct of their branch business in Southland. T hey had every reason to believe that these new arrangements would be greatly to the benefit of the company.—(“Hear, hear.”) TIM Alt, U BRANCH. After full consideration by their directors it. was decided to open a branch in the South Canterbury district with an office in Timaru. Very suitable premises had been secured in the centre of the town, and Mr Alfred Ibbotson, their chief accountant, had been appointed district manager. The board considered that Mr Ibbotson’s 26 years’ experience in trust and agency work would more rapidly secure a connection for the company in that district than would the appointment of a less experienced man. Their directors recommended that a new director he appointed to represent the board at Timaru, and a part of the business of the meeting would be the appointment of such a director. THE YEAR’S BUSINESS. The figures of the balance sheet in tlicir hands that day showed the paid-up capital at £IS,(XX), tho increase over last year of £2500 being due to the fact that in accordance with the intimation made by him at their last, meeting, a call of 2s per share had been made in July last by the directors, and a special bonus dividend declared for the purpose of meeting this call, and thus restoring a further portion of the capital that had been written off in the early days of the company. The reserve fund (£13,000) was the same as last year. In the ,tem, balances due by company, £60,159 Os 3d. which at the preceding balance stood at. £77.016 16s 2d. there was a decrease of £16.857 15s lid. This decrease was largely accounted for by the fact that a special endeavour had been made this year to expedite tho realisation and distribution of estates, etc., for the benefit of beneficiaries. Further, many clients had preferred to invest their moneys in Government bonds, which had boon readily obtainable, Hither than in mortgage securities. National Bank, £251 19s lid, was merely a small temporary overdraft. On the assets side, office furniture and motor car stood at £593 5s 2d, an increase of £lB Is over last year. It would be noted that there were no

moneys on deposit at balancing period, this being almost entirely accounted for by the fact that deposit moneys were invested in the inscribed stocks and bonds of the various war loans. Debentures this } ear totalled £19,6C0, the addition of £SOO oxer last year being made up bv the taking up by the company on its own" behalf of a parcel of New Zealand Government Soldiers’ Settlement bonds. Mortgages and accrued interest and leasehold and buildings we:e s.io-.wi at £14,493 15s 2d, as compared "ith £11,909 11s lid for the previous year, an increase of £2584 3s 3d. Tiie increase was mainly accounted for by the fact that the company had accommodated some of its c tents uy taking over certain approved moitgage securities. Mai, ll * ue to !0 company were ■&OO,UJ4 os 7d, previous year £68,647 Is 7d a decrease of £8542 15s. " 'J he decrease was mainly caused by the fact that temporary advances were repaid consequent upon the closing up of several estates, and that m Mew ot the present financial stringency very- few fresh advances had been made. In the profit and loss account the balance ticm the previous year had been £7636 4s od, wlnen had been reduced as per balance sheet to £1755 17s lid. Included in the reduction was £2500 transferred to reserve tund, whicn amount had been used for the special dividend applied to payment of the call previously referred to; also the payrnent of mrome tax for last year. £1977 9s 6d. Add to £1755 17s lid the net profit for the year £5654 Ss 10<1, and there was an a\cUlab-o balance of £7410 6s 9d. The aividend pa d in November absorbed £1125, °,’ 1 . n ? 6? The gross income earned was again a record, amounting to the substantial sum of £13,829 5s I‘ld an increase over last year of £498 18s Sd.'and over 1919 of £4242 19s 7d. The expenses this >eur showed a heavy increase, the new arrangements made for carrying on the 5m u till and agency and increases in salaries, an,) general expenses being responsible for A 3 7U ,7 e , , aCtUal ■ fi '- ures this year t's Id, previous year £6700 16s Id an increase of £1474 Is. This was the inevitable outcome of an exnanding business necessitating as it did the reinforcement of the company’s staff bv the appoint™e l n ; , of several highly- qualified men to &pe. idl sections of the office work. It would be readily understood in connection with the company’s expenses that tfic amount of incom e tax now payable had ioiqA ollor mous!y. In tile year • iqAV A, a . mcun *ed to £599, whereas in 1920 it had increased to almost £2OOO. biich a large increase made a considerable difference m the amount available for carrying forward, but in this respect, their’s was the common experience of all prosperous business undertakings in these da vs. and he did not. look for any reduction" in the rate of taxation for a considerable time In connection with the increased expenditure he had referred to, the directors recognised that the company had to pay good salaries icr the class of men they required and they had during the past year materially increased those salaries. The directors had the satisfaction of knowing that, the appointments referred to had been thoroughly justified by results. Perhaps nothing could more satisfactorily show this than th e greatly increased profits and the freely accorded testimony of clients a s to the promptness and accuracy with which their business was transacted. and the pleasure it afforded them to visit the company s offices and meet the principal members of the staff. (Applause.)

The classes of business undertaken by the company were of an extensive and ’varied character and involved an immense amount of detail work. The office work of a business such as theirs had been much increased during _ the past few years bv numerous alterations of the law, as it affected taxation and cognate matters. For instance, the recent amendments to the Land and Income Tax Act, and in particular that portion of the same relating to the taxing of interest on debenture's issued by local bodies, had entailed a large amount of extra, work. The company controlled a very large sum of money invested in debentures, and acting as it did in some cases as trustees, in others as attorneys or agents, the responsibility devolved upon it of protecting the interests of its clients to the fullest extent possible. It was in such matters that the advantages of a company like theirs wore evident. In controlling such a huge volume of business as in transacted from year to year, many points of advantage and interest to investors were constantly arising, and the clients of the company get the benefits of the special knowledge and experience gained by its staff. The general trend of the trust and agency business this year wa s much in favour of the company. Private trustees were continually handing over trusts to the company, while others were appointing the company their executors and trustees. There were also families and friends who were taking advantage of the Aged and Infirm Persons’ Protection Act, a most useful enactment. When they found their parents or relatives were not competent to manage their business affairs through infirmities or old age, the company was appointed to take charge, thus protecting all parties from improper influences or neglect of ordinary business precautions. A large number of estates had come into the company’s hands for realisation during the past voar, and the continued increase in the clientele of the company enabled him to speak with reasonable assurance of its future pvosneritv and its usefulness to the community.— (Loud applause.) ADDRESS BY AIR. PETER. BARR. Mr Peter Barr seconded the motion. He congratulated tho directors and the .management oil the very satisfactory results of tile past year’s operations. He would also like to congratulate their chairman on the most interesting and clear address he had just given them. An analysis of the figures in the balance sheet would show how the company bad progressed. It was quite true that the net profit showed a reduction on the profit made in the previous year, but there were two very satisfactory features in connection with that. The gross profit showed an increase of about £SOO, and the increase on the other side was brought about through an increase in the salaries they were paying and in the working expenses. He was quite satisfied that the shareholders would approve of the increase in salaries. If there was one business in which they should pay good salaries it was in such a trustee company as theirs. He was also sure that the shareholders would approve of the decision of the directors to open a branch at Timaru, which town was tin* centre of a very- prosperous district, and their company should be able to make headv. ay there. Tho company had a very capable officer in Mr Ibbotson, and lie vvus sure

that he would gain the complete confidence of the South Canterbury peop’.e and that ho would maice as complete a success of the Ttmaru business as it was possible to make.—(Applause.' '1 he directors were also to be complimented on their selection cf Mr Kerr as the prospective new director, lie knew Mr Kerr personally, and he was eonSd nt that he would make a very satisfactory director. As regarded the Dunedin office it was -i general comment in Dunedin that they had one of the most strikingly efficient staffs under Mr Park’s management. Ho had gathered an exceptionally fine staff round hint. He had occasion to frequently visit the office and it always gave 1 an great pleasure to come into contact with the officials in the different departments and to observe the business-like way m which the work was carried out. The employees of their company had a very heavy responsibility, not merely in carrying out their duties and seeing that the shareholders got a satisfactory return in divi- j dends, bul also ;n dealing in a fiduciary | capacity with the affairs of beneficiaries and l clients of the company, and this responsibility should be recognised by a satisfactory j remuneration, file sheets did not disclose I they could not disclose the actual totals j of mor ey that had been hundh d in the office I 'i he result of the year’s operations, however. was t > show a very satisfactory profit on the capital employ' <t by the company. He must congratulate Mr Park on the statement made In. the chairman that tile company had not 1 ren caught this year, as so many ether < mpnnies had, with money on deposit which could not be obtained at present. This showed Mr Park's clear sightelness. With regard to tlie general t <t o St, the share!iol« ers would be glad that their c!. lirnian find struck the optimistic note. It might he true that the best definite 1 1 of an optimi.-t v. -is a mini who was condemned to lire with a pessimist. - daughter.' l He was sure that they would like the optimi-'ie note to be struck, and their chairman had done that, lie had referred to the increase in (he saving bank deposits, and that was certainly a feature of the position that 'hoy must note with satisfaction. It was ptobable. however, that tlip’e post, office and other saving bank in- « reases Her - from the people’s savings. These, however, were the result of the higher wages that had leen paid in the past few years, and not so much the evidence of an easy money situation in com-

mereial and other circles. Ho thought it v as quite probable that there would be a reduction in these savings on account of a period of unemployment compelling the holders to withdraw'. The chairman had referred to the increase in the income tax paid by tha company, and had pointed out that it had increased from £6OO to £1977. No doubt most of them laid read the figures quoted from the New Zealand Trade lieview by the Otago Duty 'limes that morning. The figures were astounding. The in crease in the income tax as compared with the year 1913-14 was something like 1333 per cent. —an increase from half a million to over £3,000,000. These were startling figures. He had been surprised to know that Mr Clark, the Commissioner of Taxes, who was certainly not given to making statements without being sure of his ground, had stated at Masterton that he knew of only one company that had been prevented from paying a dividend as the result of the payment of taxation. He was sure, however, that most of them could mention companies that had been prevented from paying dividends as the result of heavy taxation. They did know, at any rate, that companies had been prevented from increasing their reserves by this increased taxation, and it might be’said that the building up of reserves was even more important than the payment of dividends, it was only a matter of a short- time, if these conditions continued when companies would not be able to pay tbt- divid lids that they had been paying during the last year or two. lit: imd noticed that a circular had been issued from the Tax Department itt which it was slated that the question of the incidence of taxation was being considered in i f gam to companies. It was satisfactory to know that this matter was living looked into. Mr Barr, continuing said that he would like to offer one word of caution with regard to the matter of debenture investments.—(“ Hear, hear.”) 'I heir chairman had not referred to that, probably because their company was not investing in this class of debentures. 'I hey wi re now receiving circulars from various companies regarding what he might term “naked” debentures. They would notice that the public accountants were very cartful in the wording of. their certificates regarding these businesses —they merely stated that they were in accordance wk.ii the position disclosed by the balance sheets- but they carefully re-

frained from giving any advice to investors or any opinion a.s to the value of the security. He thought that possible investors should carefully examine these prospectuses. Issued with one of the prospectuses was an article by '‘Cambist,” who was therein described ae “ New Zealand’s leading financial critic.” He did not express any opinion on that point, but he would like to quote the concluding portion cf that circular. It read: “The bonds are so good that ‘ Camb ist ' has been informed by the chief mani ager of the leading bank in this country i that that bank would be only too pleased j to advance money against these bonds if ever ! they were proffered to him as a sound secuj rity. What is good enough for a bank | should suit any investor.” I “Could they credit that as being a cor- | rert statement’:” asked Mr Barr. | Continuing, lie said it was indicative of j the frame of mind on financial matters that | people were looking forward, with relief, to j the fact that Mr Massey was going to raise ! a loan of £5,000,000 at Home. It was an | unhealthy sign. The community were for--1 gelling that this £5,000,000 would be an | additional debt, and that it would add to J the burden that they now had to bear in j interest. .the present pressure in connec- ! Lou with finance had some compensations i in that it would teach them to cultivate sound finance. They must suffer if the.'. I neglected the laws governing trade and 1 commerce, which had not been altered by the war. (Loud applause.) | The. Chairman said that he must, con--1 grat-ulate Mr Barr on the very valuable and interesting address that he had given them. There was only one point he would like to refer to. That was to state that the business controlled by the company had now i reached a total of over £3.000,000. (“ Hear. | ’ ! ADDRESS BY MR R. ,J. CULM OCR. j Mr Gilmour said that he would like to | refer to the activities of the company m | that part in which he was more partieu- ; lai'ly interested—the district of Southland. In the first place, just, recently a small j group of shareholders had been formed j there, because a few shares had happened | to become available, and although the number of shareholders was not large, it was quite considerable in respect to the influence which it was capable of exerting. He hoped that in tho near future the number of shareholders would be increased. In con-

nection with the company’s clients in Southland their chairman had said that their agents in Southland, Messrs Rout and Stew - art, had been able to show a very satisfactory report, and a substantial increase in business. He felt certain that the company’s business in the Southland district would rapidly increase until it assumed verylargo proportions. He had been acting on the board of their company for some time now, and he could appreciate what had been said at this meeting and at other previous meetings concerning the value of the company’s itaff. The speaker referred to the very valuable work tho company was doing, and said that the aggregate sum of trust moneys placed under its rare in tho Southland distri; i must now be verylarge. He paid a tribute to ilie care and efficiency exercised by the company’s Southland agents in controlling the business theie, and said that the present satisfactory position was proof of their judgment and prudence, and also proof of the solidity and general prosperity of the Southland districtl —('‘Hear, hear.”) There was one item in ihe chairman’s address to which he would like to refer and that was m regard to the increase :u tiie general expenses oi the company. part of that increase was one of the fresh aarur gements made with the company’s agents in Invercargill. It might la a year, or two years, but Ihe shareholders, he thought, could be confident that whatever expenditure had been incurred by the board in improving its position in ' Southland, tho operations there would Le highly remunerative to the company in the long run. The province was standing the test- of these difficult times exit vine! v well. (“Hear, hear.’’) It was in evitable that Southland would, on account of its great extent of rich agricultural land, one day have a dense population, and tho company was acting soundly in pushing its business there. —(Applause.) The motion to adopt the report and balance sheet was then put and carried unanimously. GENERAL. Mr J. C. Stephens moved the re-election of the retiring directors —Sir George Fenwick and Mr W. E. Reynolds. He said that he would like to congratulate the directors on the capable manner in which they had conducted tho company’s affairs. He would t-lso iike to subscribe very heartily to the remarks made by Mr Barr with reference

to the increase of salaries of the staff and also the appointment cf Mr Ibbotson to bo manager of the Titnaru branch. Mr II V. Fulton seconded tho motion, tv.itch was carried unanimously. ■ * George l<tir,vick thanked them for returning Him to the directorate. He said he took a warm interest in the company because he recognised very strongly that ihe company was performing a very valuable service. . t was undoubtedly one of i.ieir 'cry Lest institutions, and he hoped it would g 0 on extending its business. — (Applause.) 1 be ( hairman said that the election of an audition.d director would lie necessary vo v,:t h Mr Ibbotson in connection with ino_ lmiani branch. I hey had no power as a board to elect him to the directorate—that rested with the meeting to do so. Mr S. Solomon proposed Mr Edward G. Jverr as Lie new director of the company, l ie said that so long as they had directors hue their present directors, and managers unoer the control of such a callable officer ii ” ,lr 'v '^ le affairs cf the company could not fad to go on satisfactorily. Air ,T. V, ren seconded the motion, which was carried. Mr Kerr returned thanks. lie said that the directors woic making a wis L . move in opening up in South Canterbury. He v.as quite satisfied that they had an ideal man in. Air 1 bb: tsen to control the business in limuru. So far as he personally was concerned he would do all he could to push on the interests of the business there.— (Applause.) , Ihe Chairman said if was suggested that the remuneration of the board of directors sheu.d lie increased from £475 to £550 per annum. Air N. Paterson moved in this direction, anil Air G. Benson seconded the motion, which was unanimously carried. Air W. Forrester movi d and Mr J. Scott seconded that the auditor*—Messrs ffm. Brown and Co. and .Messrs George Blyth and Co.—be re-elected. Jhe motion was carried. VOTES OF THANKS. Air Vi . F. Sligo moved a vote cf thanks *o tho directors, ice gem ral manager, and the s'.afl.. He thought that they had a good skiff as a general result of organisation on the pa: t of a good manager, and ii he might be permitted to carry the application right, through, to a good board of directors. lie was quite sure that the balance sheet, taken over a period of years, reflected great credit on their dilectors, and sh .reholders should be quite satisfied w ith the result. lie just wanted to draw attention to the fact that the capital had been increased since 1314 from £9375 to £15.000 that year, an increase of some 60 per cent., and yet their dividend continued as before. Their reserve had increased from £II,OOO in 1914 to £13,000, and a fairly large sum had been spent in connection with their building. It was also worthy of note that the dircctois of their company recognised in those times what he was’ alraid that some companies did not—that the shareholders of a company had got to live. He

knew that in many companies in New Zeaalnd there were a huge number of men who had put their life savings into a company and were relying on dividends. In these difficult times it was very gratifying that the directors of their company had recognised the position, and had tried to help their shareholders as well as their employees. d lie motion was carried with acclamation The Chairman briefly returned thanks on tchal: of the directors. Mr Park, ihe manager, said tlifit he had to thank Mr Sligo for iris complimentary references to tho staff, and the meeting for its unanimous vole of thanks. It was now 11 years since he had taken over the management of the Perpetual Company. He had then found it built on a solid footing. and also that the great personality of the late Air llislop and his sympathetic nature were the means of laying a lasting foundation of die company. The departmental machinery had nt that time become a lit rusty, no doubt due to a certain extent to the long illness of the late Mr llislop. He was pleased to state, however, that, ns far as lie could see there wore now no rusty parts—all the work going on smoothly and successfully. The Chairman: I hanks to Mr Park. Continuing, Air Park s'*id that lie had been engaged in active business for over 50 years, and he might say that during the "whole of that time he had been occupi d in valuing, realising properties and assets, etc.—in fact, lie had made a life study of this class of work. This ionp experience had been of great service to himself and the staff, particularly in realising the full market value for all assets in estates. If they were to ask the sharebrokers. land ag nts. and others, they would tell them that llierc was no chance of getting anything below its market value from the Perneitni Trusters. —(Laughter.l Although the company acted as financial guardims in estates, thev also acted as what he might term •‘social guardians"—that is, tin v took a direct personal interest ill widows and civilians. A'l orphans were infants in the eves of ihe law until they wore 21 He found in manv instances that tln v were neglected by their legal guardians, and therefore they took a direct interest in advancing them and helming them during infancy. Ho was pleased to state that t’.tev came into the office of the company without any reluctance, and information arid help were willingly given thorn hv all the members of the staff. —(“Hear, hoar.”) The Chairman said that this closed the business of the meeting.