COMPANY NEWS

Southland Times, Issue 23540, 21 June 1938, Page 3

COMPANY NEWS

TRUSTEES, EXECUTORS AND AGENCY RISE IN NET PROFIT OF £94

(Special to The Times) ~ DUNEDIN, June 20. “The year has again been satisfactory, the net profit, at £3803 10/5, being £94 greater than last year’s figures,”

said Mr G. R. Ritchie, moving the adoption of the report and balance-sheet at the annual meeting of the Trustees, Executors and Agency Company today. “This result has only been achieved by increased earnings from commissions and interest, which produced £1504

more this year than last, and the rising tendency in expenses just about absorbed the whole of this increase, , leaving the net result less than £lOO better than a year ago.” The chairman said that at the annual meeting held on June 18, 1926, the directors took power to increase the capital of the company from £lO,OOO to £20,000 by the transfer of £lO,OOO from the carry-forward and utilizing that sum in paying a special bonus dividend, which was applied in payment of a call of £1 a share, making the £5 shares paid up to £2. It was now proposed to transfer a further £lO,OOO from the carry-forward, making the £5 shares paid up to £3, thus increasing the capital to £30,000. The directors were

empowered, when they thought fit, to declare special dividends of a like nature without the necessity of calling shareholders together. In this connection it must not be overlooked that their business was expanding and this proposal put their balance-sheet more in keeping with the larger business the company now transacted. Speaking of investment conditions, the chairman said that the investment of trust funds in the last year was inclined to be slow, as few new investments were offering outside of Government debentures at 3f per cent, and local body debentures at 3J per cent., which rates were not, however, attrac-

tive compared with what could be obtained in other directions. The investment market in the new year had, however, taken a change and their experience was that more investments were offering than funds were available for. The interest rate had tended during the year under review to be steady, with a slight hardening tendency noticeable in the last month or two. For extra good mortgage investments funds were available at 4J per cent, and for other mortgages at 4£ per cent. The Government had again been able to finance its loan expenditure without coming on the open market and this was a reflection of the increased flow of savings with Government departments, chiefly the Post Office Savings Bank, from which the Government was able to borrow without calling for public subscriptions. “Some prominence has been given during the year to the fact that the country was the heaviest taxed a head of population in the Empire and more would, no doubt, be heard on this subject shortly,” Mr Ritchie said. He had made a plea in more than one previous address for the widow and the orphan and elderly women who had to live on a small investment income. The drop in interest rates and the rise in living costs had been a double blow to this class of taxpayer, and, in addition, in some cases the capital had been written down to help the mortgagor.