The PERPETUAL TRUSTEES Co. Ltd.

Southland Times, Issue 19900, 19 June 1926, Page 11

The PERPETUAL TRUSTEES Co. Ltd.

ANNUAL MEETING IMPORTANT BUSINESS SURVEY. NECESSITY FOR NATIONAL ECONOMY. A RECORD YEAR’S BUSINESS.

Shareholders of the Perpetual Trustees, Estate, and Agency Company of New Zealand held their forty-second annual meeting in the office of the company, Vogel street, Dunedin, on the 12th inst. Sir George Fenwick presided, supported by Messrs W. E. Reynolds, John Mill, E. C. Hazlett, James Begg, Robert Gilmour (Southland), E. G. Kerr (South Canterbury', the other directors; also Mr. Joseph Preston (advisory director at Oamarul, and Mr. Alfred Ibbotson (general manager). THE CHAIRMAN’S ADDRESS. The adoption of the annual report and balance sheet was moved by the Chairman, who said:— Gentlemen, —Not many weeks before the company’s annual meeting last year the dominion had suffered a great loss in the death of its honoured Prime Minister, Mr. Massey, and when addressing you I paid my tribute to his sterling qualities and his great services to New Zealand. It is fitting that I should this •year make passing reference to his successor, and to the important part he has to play in moulding the destinies of our favoured land, for it is upon the wise administration of Mr. Coates and his colleagues in the Ministry that the dominion’s progress and prosperity must largely depend. Unlike the late Mr. Massey. Mr. Coates had some experience of Ministerial office behind him when, by the vote of the people and of his political supporters in Parliament, he was called upon to assume the high position of Prime Minister. How his predecessor steadily developed those latent powers which made him a forceful leader of his party and a great Imperialist, respected alike by his own supporters and those opposed to him in politics, need not be reiterated here. In his successor also there are abilities and force of character that are steadily disclosing themselves, and that the years of office, of which he is practically assured, should develop as they did in Mr. Massey. The welfare of New Zealand, in its material prosperity and in the social life of its people must depend largely on the wisdom of its administrators and on their determination to act faithfully and unremittingly in the interests of the people as a whole, and it is of the first importance that the dominion's leading citizen should possess those qualities and abilities which inspire public confidence. Mr. Coates’s great victory at the General Election showed that he possessed that public confidence, and if a change takes place in the steady cycle of prosperity that the dominion has for some years enjoyed there will be comfort in the knowledge that its public affairs have at lheir head a fair-minded competent administrator. THE EXHIBITION. I think I am justified in mentioning as an instance of the practical common sense of the Government, and of its belief in the dominion’s power to successfully carry out an important national project, the whole hearted support it gave to the great International Exhibition which so recently closed its doors after an exceptionally successful, indeed triumphant, season of five months’ duration. It stands to the credit of the Government that it believed from the first meeting of the great project, that in the hands of some of the dominion’s foremost business men, this great national enterprise would have devoted to it close and unremitting attention and administrative ability that would ensure brilliant success. It is not too much to say that the dominion, as a whole, is proud of the great exposition which has done so much to bring New Zealand under world wide notice and to promote, it may be confidently anticipated, an extension of reciprocal trade with our own kith and kin throughout the Empire.. It must be a source of lasting gratification to the president (Mr. J. Sutherland Ross), and to the able body of directors who were gathered round him, that they jcarried to fruition and a magnificent close an exhibition of so splendid a character. To them is especially due the strongest recognition by the people of the dominion for their unwearied and self-sacrificing work. Mr. Andrew McKinnon, when he first brought under the notice of some of Dunedin’s leading citizens his belief that the time was ripe for holding an International Exhibition in New Zealand, perhaps hardly realised how complete and how brilliant a succqps was destined to follow from his suggestion. He was fortunate, too, in securing the prompt recognition of his idea by Mr. Anscombe, whose professional skill as architect resulted in the erection of the buildings at Logan Park that were universally accredited as helping so largely in the success of the Exhibition. To Mr McKinnon, to Mr. Anscombe as architect, to those who first moved in the great project, to the directors who carried it out to so splendid a close, and to the Government, the dominion owes its warmest thanks. Nor should I omit to mention the great assistance rendered by the Otago Harbour Board and its engineer, the mayor and City Council, and the Otago Expansion League. The engineer of the Harbour Board (Mr. Wilkie) and the superintendent of city reserves (Mr. Tannock) transformed a dreary waste into a beautiful pleasure ground, and the manager of the city and suburban tramways (Mr. MacKenzie) organised a system of transport that did much to promote the comfort of those visiting the Exhibition. Special mention should also be made of the splendid exhibits in the British and other courts, and of the courtesy and attention the public received from the various commissioner. From one end of New’ Zealand to the other there will be for many years vivid memories of the pleasure the Exhibition gave to our people and of its immense value from an educational standpoint. INDUSTRIAL CRISIS IN BRITAIN. In making brief reference to the great industrial crisis in Great Britain, happily brought to a close through the calling-off of the general strike, it is perhaps too early to estimate the full effect on the nation of bo profoundly disturbing an episode in its industrial life. The great political and industrial leaders of the day were not slow to realise that disaster to the Empire of the direst character was certain if the strike were to be continued for any length of time, and it was quickly made manifest that Mr. Baldwin and his Government were fully alive to the supreme danger to which every industry in the Empire was subjected and that they had lost no time in taking every step that was possible to withstand the senseless destruction of Great Britain’s trade that was threatened. No good purpose could be served here by discussing an upheave! of a character so tragic and so cruel in its effects on the life of the people, but it cannot be doubted that there was profound thankfulness, not only in Great Britain but in the overseas dominions, that the alertness of the Government, and its determination to safeguard the rights of the community at large, were crowned with success at a comparaticely early stage of the conflict. The disturbance of the Empire’s overseas trade will probably not have been very serious, whatever the discomforts in Great Britain may have been, and there ii comfort in the knowledge that the sane and moderate section of the

[Labour leaders is so sternly against any such attempt to paralyse industry that it is improbable there will be any similar upheaval to combat in the near future. Of ! conflicts in individual industries there is not likely to be any cessation, and in that | which is now unhappily proceeding in the coal industry there appears to be little sign of an immediate settlement. OUR PRIMARY PRODUCTS. The total value of our exports for the year just ended is considerably less than I the total value of the previous year, and | one naturally looks for the cause. While . w’ool has probably contributed more towards j this reduction than any other staple product, ’ all have contributed their share. Speaking ! generally, there is probably not one staple i line of produce which is not ruling lower i in the world’s markets to-day than was the case a year ago. This, however, does ' not mean that prices realised for our ' products have not been payable. It can, ! I think, safely be said that our staple products have realised prices which perhaps more than cover expenses, but that, at the same time, it cannot be said they have left the producer any reasonable margin of profit. The realisation of mutton and lamb should return figures well up to, though not quite not quite as good as, those of the previous season, and there is every prospect of butter and cheese doing the same. Beef has not proved itself to be a profitable venture for some years past, nor do future prospects indicate that beef-raising in the dominion for exports ever will be profitable. Viewing the position calmly and carefully it would appear as if the world values were coming back to a more normal range. In this connection it is interesting to note that the comparative figures of the Economist’s index number, published on April 3, record the lowest point reached since March, 1916, and that the March movement made the seventh successive monthly decline. It is to be trusted that further such adjustments I may come gradually, and that we exhibit • the necessary preceptive sense and prepare ' to meet them. I am not desirous in any I way of striking a pessimistic note, but at the same time I think it well that each one should individually realise his sense of responsibility, and move along cautiously in the face of any further disturbance of ; our trading equilibrum. As you are aware, the gold standard has been re-establised in Britain —or it would be , safer to say partly re-established—for up to the present it has been manipulated to some extent, and is likely to be manipulated as necessity arises for some time to come until ultimately gold takes the place it took before the war. There are those who contend that this in itself is sufficient to account for the lower values ruling in general, and if this be the correct view—-and I must admit I incline to agree with this view—then there is indeed need for caution. Be this as it may, while values of products the world over are inclining downwards, it behoves each one interested in the future welfare of the dominion to proceed with care. We, too, often lose sight of the individual, for, while a nation is made up of communities, these, again are made up of individuals, and the call is therefore upon each one individually to do his share as the need may arise. EXPORTS AND BI PORTS. When addressing you a year ago under this heading I stated that I found myself fully in accord with the action of our Chamber ’ of Commerce in its recommendation to ini- ■ portera and trades to exercise caution in I respect to forward commitments, more i particularly as regards imports, and especi ially to indents of luxury goods. I was I hopeful that the warning issued by the chamber and reiterated by many of our most prominent business men would have some considerable effect in curtailing the volume of our imports. I regret to find that this much-to-be-desired result has not , come to pass. Compared with the previous year’s figures, the dominion’s imports tor the year ended March 31 last show a total increase of £3,204,761, a considerable portion of which has doubtless been spent in the purchase of luxury goods of one kind or another. Unsatisfactory as this is, it is made more so by the fact that our exports have decreased in value by £6,073,571, and it appears that not only has there been this reduction in the value, but there has also been a decrease in the actual quantity of some of our exports. Briefly stated, the previous year’s trading operations closed with a balance in the dominion’s favour of £4,950,063, whilst for the year ended March 31 last the balance of trade is against us to the extent of £4,328,269. These figures take no account of the dominion’s bill for interest on moneys borrowed from abroad, amounting to about £6,000,000 annually, which sum has to be paid irrespective of whether the balance of trade is in the dominion’s favour or against it. You will, I feel quite sure, agree with me that the position as disclosed is such as to call for the most serious consideration of everyone concerned in the welfare of the dominion. As I said at our last meeting, the remedy would appear to be of a twofold nature—firstly, a reduction in the volume of our imports, and, secondly, an all-round increase in our production and exportation. It is to be hoped that our traders will seriously restrict their importations, and that, given a normal season as regards weather and other conditions, our farmers will be enabled to increase their production, so that at the close of the year upon which we have just entered the balance of trade will again be in our favour, and to an extent sufficient, at least, to cover our overseas interest bill. STATE ADVANCES. Having considerably replenished its funds, the State Advances Department is now engaged in an effort to overtake the many applications for loans temporarily standing in abeyance. The company’s lending clients are still losing numbers of first-class securities to the department, many of whose borrowers ought not to rely upon the department’s assistance. It is, however, satisfactory’ to be able to report that the class of borrower represented by the struggling farmer and settler is now in many instances being financially assisted by the State, and is not being passed over as I had good reason to believe, and as I stated, when last addressing you. It is also satisfactory to note that Mr. James Begg’s contention that borrowers of State money should not be allowed to transfer their loans when selling their properties, and on which they are enabled to put a higher price because of the cheap interest rate they pay, had the support of the Associated Chambers of Commerce, a remit in that connection having been carried at the annual conference of chambers, held in Dunedin in November last. I trust that the Minister in charge of the department will see the necessity of giving full effect to the remit. RATE OF INTEREST. The money market continues to show a hardening tendency, and money for investment on first mortgage securities is not over-plentifuL The demand is, however, perhaps even stronger than it was a year

ago, and in consequence the rate of interest remains very firm at 6 per cent. It has not been possible during the year to meet all demands made upon us in this connection, some of which have come to us from the North island. I said on a previous occasion that the board preferred to invest available mortgage moneys on South Island securities as being more stable and less highly-priced lands. This is still the policy of the board and will continue to be so while so many sound and desirable mortgage securities are offering in the South Island. The demand for money for mortage purposes has exceeded the supply right through the year, and there are no evidences of a change in this respect notwithstanding the large amount of State and Public Trust moneys that are available. LEGISLATION. There has not, during the past year, been any outstanding legislation affecting the interests or business of companies such as ours. Passing reference may perhaps be made to the amendment in the Stamp Duties Amendment Act, 1925, whereby the duty on mortgages and discharges of mortgages was reduced to a nominal figure of 2s 6d. The necessity for making this amendment was urged in my address last, year. A consequential amendment in the stamp duty on transfers of mortgages should have been made contemporaneously, and I trust this will be rectified during the coming session of Parliament. RENT RESTRICTION ACT. It is with some anxiety that we look for the removal of the legislative restrictions relating to rentals. This legislation has been in force for a considerable time, and was extended by last Parliament to the end of August next. The necessity for continuing this legislation has been largely removed by the great number of dwellings and homes for workers erected throughout New Zealand. No doubt the financing of the purchase of many of these dwellings has been carried out on a rather risky basis, and on very small deposits, but with industry, thrift, and! economy thousands of our workers should, within a few years, by the free proprietors of comfortable modern dwellings. This must help to stabilise the conditions of our working people and give to them a very real interest in the dominion by reason of their holdings. If this now exasperating legislation has had the effect I have referred to, it may really have been a blessing in disguise. Its period of usefulness, however, has now passed, and unless it is repealed at once some absurd anomalies will arise. MORTGAGEES’ POWERS. While referring to restrictive enactments, I might, in passing, point out that a slight anomaly exists in connection with the exercise of powers of sale in mortgages which were subject to the moratorium. Before the power of sale can be exercised in these cases three months’ notice requires to be given to the mortgagor. This is certainly too long a period to have to wait, and it is quite conceivable that the mortgagee’s security might become seriously jeopardised in that time. The provisions of the mortgage deed itself should, therefore, in this respect now be allowed to operate. DEATH DUTIES. The Death Duties Amendment Act, 1924, contained a provision in accord with modern social legislation when it exempted life policies up to £l,OOO from the incidence of estate duties. In referring to charitable gifts under the Death Duties Act there is one matter to which I think attention should be drawn. When a legacy of over £l,OOO is bequeathed to a charity outside New Zealand, such, for instance, as Dr. Barnado’s Homes, not only must 10 per cent, succession duty be paid on the amount of the legacy, but a further 10 per cent, must also be paid because the money is leaving New Zealand. The succession duty of 10 per cent, on purely charitable bequests is, in my judgment, too high, and the imposition of the additional 10 j per cent, penalty duty must tend to re- j strict or stifle the generous sentiments of I many charitably-minded people and perhaps deprive a worthy object of assistance. No , doubt charity begins at home, but if a | person domiciled in New Zealand, for special 1 reasons, wishes to help a good charitable j object within our Empire we are surely suf- ; ficiently generous ourselves not to wish to ' deprive the recipient of such an undue share . as one-fifth of the gift. TRUSTEE SECURITIES. It should be pointed out that within ' recent years the range of securities on which trustees have been authorised to lend trust moneys has been considerably amp- ! lifted. Thus trustees may now deposit trust , moneys in savings banks and take up the j debentures of river boards, road boards, I town boards, and electric power boards. Whether this enlargment is justified to its full extent I do not now propose to discuss; but from a trustee’s point of view any reasonable and safe extension of the modes in which trust money’s be invested is appreciated. SAFE DEPOSIT LOCKERS. Clients have readily availed themselves of our safe deposit locker system, and almost the whole of the second lot we recently installed has been taken up. It is much safer to keep documents and papers in one of the company’s lockers than in a private home. They are readily accessible, the rentals are nominal, and the lockers have the full protection of a well-built strong-room, in addition to the security they provide in themselves. THE YEAR’S BUSINESS. The total value of business controlled by the company as disclosed by me at the last annual meeting of shareholders was £4,261,893, and I do not purpose going into details in this connection again this year. I am glad, however, to be able to state that the past year has been one of the best yet experienced by our company, the new business in estates, investment of moneys, control of properties, etc., entrusted to our care reaching the satisfactory total of £525,000 for the year. In addition, I should mention that the estimated value of new business in wills for the year just ended amounts to almost £1,275,000. This is in respect of wills of which the company has knowledge. I have stated at previous annual meetings that it Is not possible to estimate the value of estates represented in wills executed in favour of the company and held by solicitors, but the aggregate value must be very large indeed. It is very evident to the directors and to the management that in recent years a huge goodwill has been built up, and that the ever-increasing popularity of our company is shown by the large number of wills drawn in which the company has been named as executor and trustee. One big source of the company’s income is, however, the agency business it so successfully carries on. It will interest shareholders to know that rentals collected by us for owners of business premises and house and farm properties total £73,000 per annum, and that the collection of interest has reached the large sum of £105,000 per annum. Considerable sums of fresh money have been lodged with the company for investment during the past year, the safe methods adopted in the choosing of securities being largely responsible for the influx. The greatest care is exercised by the directors and the management in the investment of all funds entrusted to the company’s care, and the fact that mortgagors’ payments are almost without exception up to date is in itself proof that thoroughly sound securities have been chosen. To cope with the ever-increasing turnover, your directors have, during the past year, not only found it necessary to increase the number of staff, but they have, in addition to securing larger premises at Timaru, made extensive alterations to the first floor of the head office building, to which further extensions are contemplated. The duties of Mr. Ibbotson have become so onerous and taxing with the heavily increasing business of the company that your directors recently decided to afford him relief by appointing a district manager for Dunedin. This change has been car-

• ried out by the appointment of the chief : accountant (Mr. D. J. Russell) to the : district managership, and he in turn has • been succeeded by Mr. W. W. King, of the ! company’s, staff, as chief accountant. Mr. I Ibbotson will be relieved of some of the duties he has performed, and will have more time to devote to his important work as general manager. ! I have on previous occasions mentioned i for the information of present and prospective clients, that, although the general policy of the company’s business is in the hands of the board, the directors do not, nor ever have concerned themselves with the contents of any will, deed of settlement, j or other similar document. They know j nothing of their contents, unless for some specific reason it is necessary to bring any particular point under notice. It is well that the should be widely known, so that I probable clients may feel assured that their directions in the documents referred to are known only to resp6nsible and confidential , members of the staff. | BRANCHES AND AGENCIES. ' It is with considerable satisfaction that I am able to report a marked increase in the volume of the business of our branch offices. In opening these branches your directors and the management considered that we could, with advantage to both the company and the public of South j Canterbury, North Otago, and Southland, I make available the many advantages and facilities a company such as ours is able to ' afford in the more or less intricate and technical work of administering deceased estates, the carrying out of long-continuing trusts, the investment of trust and private funds, and the expert management and supervision of properties, etc. It may be truthfully said that efficiency, economy, and security have long been the watchwords of the Perpetual Trustees Company in Otago, and it is gratifying to see that this fact is more and more becoming known and appreciated in each of the sound and progressive districts I have just referred to. One very pleasing feature in the reports from the branch offices is the readiness with which clients are placing their moneys in the company’s care for investment in first mortgage securities. In this connection I should like to say here that only the best , securities are accepted and that particular I care and attention to this very important part of the company’s work is exercised , by both the board of directors and the management. Financially, our branches are now not only self-supporting, but are contributing to the profits of the company. PROPOSED BRANCH AT CHRISTCHURCH. The board has for some time had under consideration the opening of a branch of the company’s business in Christchurch. It feels satisfied that a steady and growing business awaits it there and now that the ' , Southland and South Canterbury branches ' are thoroughly establised it has definitely decided to proceed with the Christchurch branch. The board trusts that it will be able to report to shareholders at the next annual meeting that this important field j has been successfully entered upon, and that the prospects will show the soundness of the j step about to be taken. The company already has clients in the sister city, and it has been several times urged to extend its business there. It is hoped that suitable office premises will be available shortly. THE BALANCE-SHEET. The report and balance-sheet having been in shareholders’ hands for the past ten days or more, I propose to take them as read. Before dealing shortly with the items they em- , brace I should, perhaps, first say that the figures for both the Invercargill and Timaru branches are incorporated therein. Liabilities.—The paid-up capital remains at last year’s figures—viz., £17,500. Your directors, after due consideration, decided that the time had arrived to increase the paid-up value of the shares from 14s to 16s, and for that purpose recently set aside out j of the profits a sum of £2,500. This is : the fourth step towards gradually restoring ' the large portion of shareholders’ capital which, many years ago, under stress of circumstances, had to be written off. I Reserve Fund.—Shareholders will remem- ' ber that last year it was decided to transfer ; from the year’s profits a sum of £3,500 to ■ reserve fund, and in consequence that fund stands at £17,500, equalling the amount of paid-up capital. Balances Due by Company.—The figures for the year just ended show an increase ' in this item of approximately £11,500. At the balancing period a considerable number of estates were under realisation, and in • certain cases the amounts lying at the credit of such estates have since been paid over. : Mortgage moneys repaid, as well as new I moneys received from clients for investment, help to swell the total at the balancing period. Suitable investments for most of these moneys have been found, and the mortgages are in course of preparation. Assets.—Debentures show no change, the figures remaining at £19,550. There is also little difference this year in the items mortgages and accrued interest and leaseholds and buildings, the amounts being much the same as last year. Balances Due to Company.—At April 30, 1925, the figures stood at £63,542 9s 4d, and at the close of the present financial year I at £76,014 la sd, an increase of £12,471 12s Id in favour of 1926. Owing to the large number of estates under administration considerable sums have had to be paid out for death duties on deceased estates and for debts, etc., while in many instances advances on account have been made to beneficiaries. Profit and Loss Account.—Balance brought forward from previous year was £8,823 Us 6d, which was reduced by payment of dividend and other appropriations shown in the balance-sheet. The balance left at profit and loss account and brought to account this year amounted to £2,190 2s. Add to this the nett profit for the year just closed (£7,884 12s), and the balance is £10,074 14s. The dividend paid in November last absorbed £1,312 10s, the company’s usual contributions to the staff benefit fund £270 10s, and the taking up of further shares in the New Zealand and South Seas Exhibition Company £75, thus leaving £8,416 14s now available for appropriation, subject to payment of income tax for the year. Gross Income. —It is again gratifying to state that the gross profit is a record for the company, and reaches the substantial sum of £21,746 10s Bd. an increase over last year of £1,423 Is 4d. The expenses show a slight advance of £57 0s 6d over the figures of the previous year. 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 to our greatly enlarged connection, fuller service, and larger turnover, therefore, that our increased income must be attributed. A lower scale of charges for work of the nature our company undertakes will not be found anywhere. CHAIRMAN’S VIEWS ENDORSED. Mr. George Black, who seconded the motion, said: — “The steadily improving results are very gratifying alike to shareholders and customers and must be exceedingly satisfactory to the directorate and staff. The enormous and increasing value of the business under the control and management of the Perpetual Trustees is in itself a sufficient evidence of the confidence the public has in its handling of ite affairs and of its faith that it is worthily carrying out the objects for which it was primarily formed. Though its administration as far as its policy is concerned is centred in* the the ability and energy of a particularly excellent staff is principally responsible for the company’s continued succeas, and those of us who from time to time have been brought into business touch with its officers have admired and appreciated their tact and soundness. I have no doubt whatever the business will continue to grow, and although there is a feeling that there are troubled times ahead in the financial world, I am sure the care and judgment that have been a characteristic of the management of the company in the past will steer it clear of all difficulties. Care and

caution are the keynotes of the chairman’s remarks and may I say that these deserve to be studied in all seriousness by everyone. There is, I believe, more necessity to-day than for some years for us to take stock of where we actually stand. There is no justifiable reason to expect anything else than an inclination downwards in values as the work slowly recovers from the unbalancing consequences of the Great War. The unsatisfactory adverse balance for the year in the Dominion’s trade is really minimised in the published figures, and the actual results are worse by quite an appreciable extent. The figures for imports are reliable as they are collected by the Customs Department from actual invoices. A fairly large proportion of our export figures are based on actual sales, but there is a considerable quantity sent overseas for realisation—or as we say “On consignment.” Last year nearly all these consignments realised on a falling market less than their declared value at time of shipment The crashes amongst wool buyers and the balance-sheets of meat buying concerns show how serious these deficits were. Hence in actual returned cash for our exported products we received less than the statistics valued them at. Against this debit balance we have a set off in the money left in New Zealand by tourists but with such a productive country as ours it will be a sorry state of affairs if our imports continue to exceed our exports. The remedy lies not so much in telling traders to cut out importing things We can produce here or things we can quite well do without or at least postpone buying. It lies with every individual in the community taking the prosent position as applying to himself and determining to give traders no encouragement to import goods to compete with them we can make here or luxuries for which we should not in the circumstances ask. Shortage of money may affect importation and restrict some traders who would import if they could to tempt our cupidity, but if we personally do not restrict ourselve? possible profits will be an encouragement to sound financial importers to continue to bring in goods we can well do without at present. When one hears of farmers walking off their farms in the North Island and knows of the many cases in both islands of heavy indebtedness i that cripple producers’ operations one real- | Ises that there are tremendous problems to , be dealt with in increasing our exports. Some results must follow from tightened I finance, and they may, if depreciated values I continue, be brought home to most of us—the necessity for harder work, less pastime, more attention to the broad necessities, and less to pettifogging details that waste valuable and irrecoverable time. In view of the industrial position in England, which through the appalling strikes occurring must affect their buying power, there has not for some years been a time more pregnant with the necessity here to practice economy, and get to work and not argue about it. I sincerely trust that Sir George Fenwick’s interesting and timely remarks will not only be studied, as they well deserve, but will be acted on.” The motion was carried unanimously. ELECTION OF DIRECTORS. The retiring directors (Messrs’E. C. Hazlett and R. J. Gilmour) were re-elected without opposition. In moving their re-election Mr D. E. Theomin stated that it was quite evident from the report and the speech by the chairman that the board was doing excellent work and knowing the two gentlemen named as retiring directors he was satisfied that they were pulling their load as well as the other directors. Captain Sundstrum, who seconded the motion, said they all knew the retiring directons, and he was quite sure that the company was well served. It could not get a better team of directors and manager than it had at present. He was sure that I the result of the year’s operations spoke for itself, and that the directors and management would continue to do good work. Mr Hazlett briefly returned thanks. Mr Gilmour, who also returned thanks, said he would like to state that it was pleasing to him to be returned to the directorate on this occasion because as the chairman had mentioned in his report, the Southland branch was now firmly established and contributing in a small way to the profit earned by the company. They had every reason to feel confident that the corner had been turned permanently and that the profits from that source would grow as the business extended during the next few years. The value of the new wills coming into the company’s hands during the past year was very satisfactory, and the company, in addition to finding business in Southland, had found there a particularly satisfactory field for the investment of funds. During the past year, as in previous years, the company’s officers in Invercargill were able to report that the securities there gave no cause for anxiety. The business in Southland, as with other branches of the company, promised to expand rapidly in the near future and in a way that would be very satisfactory to the shareholders as well as to the clients. AUDITORS. The following auditors were re-elected on the motion of Mr H. Hart, seconded by Mr R. Gilkison:— Messrs William Brown and Company and I Messrs G. Blyth and Company (Dunedin), Messrs Cuthbertson and Webb (Invercargill) and Mr W. D. Revell (Timaru). VOTE OF THANKS. Mr J. Sutherland Ross proposed a very hearty vote of thanks to the directors and staff. He said that discretion was essential in any business, and in a business such as this, where they were dealing with the private affairs of so many individuals and other matters, it was absolutely incumbent that the utmost discretion should be used. He thought the prosperity of the company was entirely bound up with the fact that the directors and staff had shown the utmost discretion in connection with the business coming into their hands. A great point had been made of the necessity for individual and public economy. He was particularly glad to hear that, and he would like to add a word as to the necessity for it. As Mr Black had said it was not for them to tell other people what they should do. Each one must ask himself individually what he could do. In a business such as theirs there were very great opportunities for impressing on numerous clients the necessity for economy if they were going to get the country once more into the healthy state which they so much desired. The motion was carried by acclamation. The chairman stated that he and the other members of the board appreciated i the vote of thanks that was passed annually. The work had become very strenuous indeed. The holding of a position as a director in that company was no sinecure, and as far as he could see it was going to become more strenuous. The shareholders had the satisfactory knowledge that the directors were fully alive to all the duties required of them and that they attended to them very faithfully. He did not think any of the shareholders realised the ‘responsibility and the enormous amount of work undertaken by the directors. The board Was one of the most hard-working boards in New Zealand, he believed, and it was possibly harder working than the much-discussed Dairy Control Board. He thanked them very heartily for the vote of thanks. Mr Ibbotson (general manager) said that on behalf of the staff he wished to express appreciation of the vote. The year had been a fairly heavy one, and all the members of the staff had given of their best in the interests of the company and its clients. He would like to place' on record his appreciation of the staff and the branch district? managera for the way in which they had helped him and for their co-operation in putting into effect the policy laid down. Their business was now about the £5,000,000 mark. He wished personally to express thanks to the chairman and the other members of the board for the advice and help that was always given to him so readily. business was in a flourishing condition. Their branches were past the experimental stage. He felt sure that the establishment of a branch in Christchurch Was a step in the right direction and that

they would have no regrets about opening there. Although only little more than a month of the present year had gone deceased estates had come into the extent of almost a quarter of a million. That, he thought, was evidence of progress. They must have a good board and a staff always endeavouring to keep efficient. He thought they had both and that the company was particularly fortunate. The staff hoped, by service, and efficiency, to retain the confidence of the shareholders, the public and their clients. (Published by arrangement.)