PERPETUAL TRUSTEES

Timaru Herald, Volume XCVIII, Issue 18084, 25 June 1924, Page 4

PERPETUAL TRUSTEES

FORTIETH ANNUAL MEETING. A prosperous YEAR. business “appro aching £4,000,000 MARK. The fortieth annual meeting of rhe Perpetual Trustees Estate and Agems Company of New Zealand was held at the Company’s office on Friday momi,lK. Mr W. E. Reynolds presided ovet an attendance of about twenty. THE 4 CTING-CH AIRMAN’S address. The Yctiim-Chairman, in moving the adlption ot°the report and balance miss to-day from his accustomed place our esteemed and respected ’ Sir George Fenwick, who, asyo not, is at present visiting Great Bntai.i. For many years past Sir Geoige lenwick a keen and active interest in the welfare and of the company s business. He has mited me to convey to you at this meeting his hearty .greetings and wishes S for a successful meeting, which I have now much pleasure m don „• -Although not actually present I am sure he is with us all to-day Likewise we have not with us .at this meeting our South Canterbury director and our Oamaru local advisory directoi, Messrs E. G. Kerr and RoberUMilligan respectively, who are also visiDng the Homeland. I am sure I shall be right in conveying to all three gentlemeii the wish of this meeting that then Tfip abroad may prove both pleasuiable and interesting, and that m duo time we hope to see them bacn amongst - us. I also much regret to state that Mr Park, our general manager, is not able to be with us today. After many years of work-in. the company’s interests Mr Parits health became somewhat affected, and in January last it was decided that re he given a rest. I know I am only voicing the wishes of all present when 1 express -the hope that -Mr. Park will soon be restored to health and strength again. I am very glad to be able to say that he is improving. At last annual meeting, the chairman began. by congratulating the shareholders on the' steady progress of the,company’s business in all the different branches and agencies. I am pleased to be'able to say your directors can again extend similar congratulations to shareholders:— The past year has been a most satisfactory one, and the present outlook augurs well for the future of the company. Before, however. touching upon matters directly affecting the company, it may be of interest to touch briefly upon FINANCIAL MATTERS GENERALLY. y There can be ho question but that the high price of wool has lifted us along wonderfully.. Personally, I would have preferred ’ a smaller rise and a surer continuation of it. If we go back to the year, beforethe war you will fiind our.'exports totalled £22,000,000 annually. During the war the value of exports, as you know, rose annually, until one year the value amounted to about £50,000,000. At our . recent Winter Show ; the Right Hon. Mr Massey—in his' address as reported- - said: “Last year was a ‘record’ ye.ar, and that' up to March 31 the export); amounted to £44,401,000, showing a very satisfactory, margin between the two. Taking the total trade its value was £96,054,000, and he wished to express - the opinion that this was a. record per head as far as individual trade was concerned. He believed that there was no other country in the world that could show, results, so far as trade per head was concerned, so satisfactory as,those of New Zealand.’’ 1; agree with this, hut does a flush rise ill any given ‘ commodity such as we have experienced in wool tend towards greater looseness in expenditure? At the risk of* being' considered somewhat of a pessimist, I must acknowledge I believein the latter. Taking an overhead glance , back upon; our track during the past 50 years, one must acknowledge that, we—as a country — have been-richly, favoured. I have already shown how our exports have increased, how excessive they were • during war years, owing to war prices, and how excessive—if I may use tho term —they were for the past year owing to the exceptional price of wool, and yet is the Dominion as a whole sounder financially as a result? Each one in the community should ask iumself: this question. * For my part L must candidly admit I do not think so. I recognise there is a happy mean in all things,.. but. in New Zealand the way, in reality, has been made so easy for" us all over so long a period thatwe are apt to become too optimistic as individuals, as a community, and as •a country. Would you ask me to suggest a. remedy ? I am of the opinion p that more borrowing should ne done locally. The day has come wiien we should, aim to ~be. more and more a self-supporting country. I recognise that greater local borrowing would tend to tie up much of the surplus wool money now floating in our midst, but the true wealth of any country riiusfc lie—as with any country—in its reserve funds. Our wealth would be prodigious were all our interest, public and private paid locally, and this is the only safe reserve fund we can accumulate as a nation. This, I know, cannot be for many years to come, Wit we should encourage it in every way possible from’ this day forth, yearly standing more and more on our own feet. In other words, wc should from time to time aim to gather into sound investments more of the surplus money available witli the hope of preventing undue speculations’, unnecessary increase in land values, and most of all, heedless expenditure, both in ‘lie interests of the individual concern wl and in the interests of the community as a whole. STATE ADVANCES. The State is again actively engaged in the business of lending money for mortgage purposes. We do not, c-f course, object to its activities, as ne recognise that the State can go further in helping the struggling farmer and others than can the trustee companies. Our clients are, however, losing a number of first-class securities to the State Office, the owners of which cannot be classed as , struggling farmers, and who can well a fiord to continue to do business with us. We also know of instances where sound, but not quite such good securities, have been submitted to the State Department by farmers who are really in need of the department’s assistance, which so far lias not been granted them. The position in respect of many of these latter seems uncertain, and to the applicants unsatisfactory. The Government valuers are proving merely human in that, with so many applications before them, they are naturally recommending only what is really gilt-edged. The question presents itself as to whether the State loan money is being used in just the way it was intended. We were given to understand it was the hardworking, Straight-going, honest but struggling ■ farmers who were to have the preference. Of the new loan of five millions it is thought that from one to two millions will be available for advances to settlers, but it is possible that a portion of this money has already been itsed in anticipation. The loan carries interest at the rate of 4j per cent., but at the issue price of £95 per cent, the Government will pay on a fiat interest rale almost -iff per cent.

without taking into account any of J kc costs in connection with the flotation. Mortgages now bear a stamp duty of os per cent., which was imposed at tho time the Government was considering wavs and means of increasing its revenue. This duty has to he paid by the borrower, and tends to increase ms expenses in arranging a mortgage. State mortgages are, however, tree or this charge. It is somewhat inconsistent to allow one class of mortgagor to go free, while* The other pays his duty. RATE OF INTEREST. Speaking generally, it can be said that the money market shows a hardening tendency. Some few months back the current rate of interest for first mortgage securities stood at 5£ per cent., but of late it has had a tendency to rise, and at present 6 per cent: is looked upon its being the current rate of interest lor such securities. Some local bodies in the Dominion are ottering debentures bearing 51 per cent., and in some instances, 6 per cent., and some of tbe money that ordinarily would, bo available for mortgage investments 'lS' going into these debentures. This fact "lias had considerable effect upon the amount available for farm and other classes of mortgage investments, and may to some extent, account for the rise in the interest rate. A rise in the rate, of , interest iiv a producing country - such as - New* . Zealand .- .undoubtedly is, ■ must have a steadying . effect tin land ; values and’ 1 tend .*to reduce speculation, ..-and any -reduction Win, speculation is to be desired, especially at the present time. BANK INTEREST. The expansion of our business has necessitated the opening of branch accounts in various centres. .At times companies and firms find itymecessuryand advisable to temporarihUqverdraw an account at one branch whilst haying considerable credit halancesdit antifibqr; or others elsewheae,'“W'.TNp'W allowfinee whatever is made for the latter, whilst interest is charged by banks on tho full amount of the former. Where the one firm is doing business with the one particular bank, this-seems unjust and inequitable, and is wholly in favour of the bank. The matter has been ventilated in the past, and should not be allowed to drop. It is for the Associated Banks to provide some measure of relief, which surely is reasonable and equitable. • LEGISLATION, . - During the last year no * very important legislation • directly aftectiug the operations of our company lias been passed. We are, of couise, ve,y interested in the operation _of the Land and Income Tax Acts, and, while recognising that it is well-nigh impossible, taking: into . account the complexities of, and constant' changes in modern civilisation, to obtain an ideal Act, I think that an # equitable system is in the course of being slowly evolved in New Zealand. A new Stamp Act came into operation this year, and, while it naturally seized on every reasonable avenue tor getting revenue, yet it corrected 1 some anomalies, and consolidated the Stamp Law. The discharge of mortgage duty is a duty which we think should not have been raised. It is now' 12s 6d in most cases, hut the poor mortgagor who has perhaps exerted himself 1 o the utmost to pay off his mortgage, in all cases where liis mortgage is over £2OO, finds himself, liable to, an extra fee.

The Rent Restriction Act expires at the end of July of this year. The shortage of houses is still very acute, and until a normal condition of affairs is reached we think it logical that some sort of reasonable protection to tenants should be granted. Our company controls a large number of tenancies both in respect of business. premises and residential properties, but the Rent Restriction Act applies only to dwellings paying a limited rental. Although the Act in some measure mav be said to be adverse to the interests of our landed estates, yet, on the whole, it is not perhaps,' legislation to which we can very well take exception. The'Moratorium Act will expire in December next. Your directors realise it is a debatable question whether or not the Act should be given a fresh term. Doubtless it lias served a good purpose,' and was, perhaps, a very necessary enactment at tlie time. It has, however, .in many instances prevented companies such as. ours closing up deceased estates with the usual despatch, and beneficiaries under wills and trusts have been put to considerable inconvenience, and, in some cases, loss, finding the securities . are, not easily negotiable, and thus not being able to obtain moneys due to them. Tn some cases undue advantage has been taken of the provisions of the Act by those quite able to carry out their obligations. This, I suppose, was inevitable. However, if it is removed in December next, your directors do not think it will cause any very great inconvenience to the southern portion of tlie" Dominion.

THE MAKING OF WILLS. The occasion of the annual meeting seems to bo an appropriate time to refer to a few matters which ’..lie experience of the company has proved to be of importance to testators and those persons who are proposing to make their wills. This experience shows that usually the estate can be best administered when ample powois and discretions affecting management of estates, retention of good shares, choice of investments, incidence of expenditure out of capital or income, are given to an executor or trustee. If a trustee’s discretions and powers arc too limited, much trouble and worry are caused, and costly applications io the court are sometimes necessary to rectify tiie neglect or omission of a. testator. It even happens that an application to the court will not produce the necessary relief on account of the very wise principle that the court should not speculate arbitrarily r-n what the testator intended to, nut did not insert in his will. The contention I am striving to bring before fhe testators’ notice is that if they are prepared to put all their faith and confidence in the executor and trustee of their wills, they should give such executor - and trustee wide powers. The present state of trustee law has certainly made very large advances in this direction of recent years, '.tit there are very many useful powers which will not be read into a will without special or express mention by the testator in his final document. These remarks are perhaps more pertinent when applied to strong popular, and well-tried companies than to private individuals, but while the law should be jealous of extending the powers of trustees arbitrarily, yet your directors think legislation containing certain of the powers given to be Public Trustee in In the Public Trust Acts could., without detriment to a testator’s estate, be given to trustee companies. However, until such legislation is passed, your directors trust that testators will, when instructing their solicitors to prepare wills appointing this company as their executor and trustee, give us the widest powers consistent with their wishes. Examples of powers very frequently left out m wills are the following: —Power to trustees to buy a trust house for a widow while enjoying a life estate, and the power to re-sell same, etc. ; power to trustees to grant an allowance jut of capital to a widow or life tenant in cases of serious illness or other sufficient reasons, if the estate is not a largo one : power to trustees to determine what moneys, income, or

profits are to be treated as capital or income, and what expenses are to he paid out of capital and income respectively ; power to treat all income, rents, and profits accruing at date or death as income, without the necessity of appointment. We know of testators who thought that all these powers were as a matter of course granted to trustees by law’, but on learning they were not, they quickly instructed then solicitors to make fresh wills including such powers, thereby helping their widows and families, and, incidently, saving much expense and worry. Shareholders and the public generally perhaps fail to realise how-judicial a company of this kind can be, and so often is called on to be. Since 1 joined the hoard, innumerable have been tlie small difficulties and dissensions raised concerning and between beneficiaries,, yet I do not remember one case which has not been amicatily adjusted. Tlie directors elected by the shareholders, are independent of auv legatee or beneficiary and therefore every point brought before them is dealt with in equity. In some cases the - decision arrived at may have io go before the court, ajid in such case is invariably upheld. I assure you gentlemen, the one tiling I have marvelled since joining this board is the w r onderfulpporerw r er a trustee company uas for settling and adjusting little differences which, in tlie hands of private trustees, would often end in the courts. The matter is. to my mind,. of great importance, and I commend it to your consideration, and, as before stated, making the powers in the will as broad is possible. Things happen after death that tine cannot possibly foresee or have any anticipation of, and with broad powers in its bands, you can depend upon a board like this board never failing you in adjusting the vpportidnment reasonably and satisfactorily. It is pleasing to note that the Family Protection Act has ozeroised and is exercising a beneficient influence in 'this country. -;i s influence over testators is quite marked, and now one finds that justice is i usually meted out'ifi wills, to a wife and children where formerly grave injustices were perpetrated. As a trustee company with a large experience w r e can confidently state that testators are recognising their responsibilities more and more in their wills, and are not leaving it to the law' to do justice to »their nearest relatives. I refer to the Act, as its effect saves our officers a great deal of worry and anxiety in tlie course of their arduous and onerous duties. Perhaps I should again draw attention to the remarks made by the chairman at tlie annual meeting in 1920 when he stated' in order to remove any mis-apprehension-that .;the directors of such a company as the Perpetual Trustees have /'an opportunity of knowing about a client’s affairs: “Tt will bo useful if I state that the directors of this company know' nothing of these matters, and, further, ever since I have been a director I do wot remember the contents of a will being placed before tlie Board of Directors by v the gefleral manager. There are instances where a clause of a will, in the opinion of the general manager,- is not consistent and this clause is brought before tbe directors for consideration and direction, but, beyond this their duties as directors are more particularly in connection with questions of policy, finance, and investments, and not prving into the contents of anyone’s will, either during life or after death. The company’s general manager is a confidential advisor of testators when they are preparing their wills, and be is the confidential and trusted officer of the board. Estates falling in for active management are realised, and it is only when important matters connected with estates require tho combined consideration of the board and the general manager that die directors are brought into ' acquaintance with some of the detailed provisions of anv will in the company's hands.” Though perhaps unnecessary, I might emphasise the fact that nil matters placed in the company’s hands are treated as strictly confidential, the directors and "a:]l members of tbe staff being bound under bond to observe the strictist secrecy. SAFE DEPOSIT LOCKERS. Tt is pleasing to find that the installation of our safe deposit lockers has proved a decided success, and that frequent applications for same have necessitated during the year a further lot being installed. They are available at any time during office hours, and may be rented for a small annual payment. STAFF BENEFIT FUND. You will have noticed from fhe balance sheet the setting aside of a sum of £1260 as h nucleus for a staff benefit fund. For some time past your directors and the general manager have had in mind, and have prepared for the inauguration of such a fund. Considering the growth of the staff, it was felt that such a fund would ho in tho interests of both the staff and the company, and that the time was opportune for its establishment. Each officer of the company contributes to tho fund a percentage of his salary, tbe company contributing a like amount. THE YEAR’S BUSINESS. Shareholders will, I am sure, be gratified to learn that our business generally continues to expand in a very satisfactory manner—indeed, so much that we find it necessary from time to time to increase our office staff to cope with the largo amount of extra work offering. During the past year deceased estates at tho rate of just on one a ..week have come into tho company’s hands for actual administration, and in addition wo have taken over the management of a large number of trusts and agencies. The total value of that which may be classed as entirely new business is approximately £500,000 for the past year. Tt is, of course, impossible accurately to forecast the number of wills made in the company’s favour as executor and trustee. For the year 1922-1923 ne estimated value of new business in wills was £1.200,000. in respect of llie wills the company had knowledge of during that particular year, but ! ho total 'value for the past year largely exceeds this amount. BRANCHES AND AGENCIES. Our branches at Invercargill and ’I ilmiru are making rapid progress, and a considerable amount of remunerative business is being handled at each el these offices. Tlie Invercargill branch etill lias the valued counsel and assistance of Messrs Rout and Stewart, who continue to serve the company wish great fidelity, and whose sound advice, especially in the matter of mortgage investments in the Southland district lias been of the utmost value to vs. It has now been found necessary 'o open a complete set of books at she Timaru branch in order to cope more expeditiously and satisfactorily with, the business already obtained and < ffering there, uud in this connection you will be asked at this meeting to appoint an auditor for the Timaru branch. Your directors suggest that Mr W. D. Revcll, F.P.A., be appointed to that position until tho date ei tlie next annual meeting. During :ho absence in Great Britain of the South Canterbury direct or. Mr K. G. Kerr, your directors ask-vl Mr H. Hay, of Timaru, to act as local advisory director for that district, and our thanks are duo to Mr Hav for his acceptance of the temporary position. The complex nature and immensely iincreaped volume of our business generally places heavy responsibiiPy upon the principal officers of the com

pany, and it is evidence Hie efficiency and organisation of the staff that clients, both abroad and m New Zealand, are constantly expiessntg appreciation of tho manner £ which their affairs arc handled. Ihe clientele of the company has extended to all parts of the Dominion and abroad, and it is certainly most giatifying to tho. directors and the m ana S®" ment and staff to know', not on j 1 the operations of the company aie thus extending, but that the work of ,im office is giving such satisfaction. H is apparent that clients recognise that in leaving their moneys and estates n the company’s care they are ge , => the advantage of expert admimstiation. Constant viligance has to be exercised, but the experience gained dining the 40 years since the company s inception, and the effective organisation of the staff, facilitates the control of our large interests, and ensures economy and efficiency. The company s activities embrace a wide field, and the directors have retained at the head of each department the semens of highly-qualified officers. Ihe val w of the assets controlled by the company is now nearing the four million mar.:. The security we offer clients and others having business dealings with our company is slightly' in excess of £200,0<. , t-liat is including our reserves paid-up capital, uncalled capital, and sliavoholders’ reserve liability. This is in addition to the very many other advantages such a company as outs affords. THE BALANCE SHEET." The report and balance sheet have been in shareholders’ hands for the past ten days or more, and 1 propose to take them as read. It is hardly necessary for me to itemise the balance shoot-, and I think you vul agree that the position is clearly set forth therein. The profit for the year amounts to £6267 lbs Id, which is the highest for any year (excepting the year 1920) ..and is £1584 5s 8d in advance of the previous year’s profit. The gross income from all sources amounted to £15,296 13s Bd, as against £14,666 9s 7d for the previous year—an increase of £630 4s Id, whilst the expenses amounted to £9028 15s t d as against £9982 17s 2cl for the previous year—a saving of £954 Is 7d. Share holders will, of course, realise that with the recent writings up of capital, the dividend they are receiving is proportionately increased. In 1917 the amount paid to shareholders was £1496 ss, but for the -present year the dividend, though at the same rate, involves a payment of a considerably greater amount. For many years the company fought an uphill fight, paying no dividends, and it was found necessary to write down the shares. Since tho turn of the tide goodwill account has been obliterated, the shares have been written up to 14s per share, a satisfactory provident fund has been established, • and you can accept my assurance that beyond all this full provision has been made for contingencies. The reserve fund, as you will notice, is almost equal to the paid-up capital, the interest earned thereon materially increasing the profits of the company, and, your directors hope, ensuring the payment of regular dividends. This can, I think, be said to be a very satisfactory state of affairs. The fact that it is almost impossible to obtain shares in this company in the open market is in itself evidence of its growth and stability. I now beg to move the adoption of tbe report and balance sheet. Mr P. Barr, who seconded tbe motion for the adoption of the report andbalance sheet, said there Was even more reason than there was when he seconded the motion on a similar occasion three years ago to congratulate the managers and the company on an exceedingly successful year. He joined, as all tho shareholders did, in the chairman’s expression of regret at the serious illness of Mr Park, and 1 is hope that he w'ould soon recover. The balance was of such a nature that it did not call for any comment. Good wine needed no. bush. /Ihe nature of the business of this company was such that it did not require any large capital. Its own capital was only required to provide tho necessary building property and furniture and what small amount was required for, current expenses in anticipation of income. Anything beyond that was created, he took it, for the purpose of providing something like security for clients of the business, and when they found £88,750 as the sum for uncalled-up capital it seemed impossible that any c-all should ever come up to the company that could not be met without difficulty'. The balance due by tlie company iepresenled, he understood, trust moneys that were being handled by the company in connection with various estates. The profit and loss account w'as in a very satisfactory condition indeed. As the chairman bad pointed out there was a considerable increase in the income of the company and a corresponding increase in the net profit the company had made. The Daily Times reviewer in reviewing die balance sheet pointed out that the profit this year was equal to 35.8 on the capital called up, but it was under 20 per cent, on the capital and reserves. On the-market price of tho shares to-day tho return was about 54 per cent. If the reserves were capitalised the present dividend of jS per cent, would only return 8.3 per cent. From that point of view the dividend to the shareholders was look-. c-d upon as reasonable. This business was not like a manufacturing and trading concern. It was more like T he business of a banker or accountant which was not dependent upon capital. They might say of this company that if there was any business in the itj entitled to be called the Rolarian Company that was it, with “service before self.” Service faithfully reu tiered yielded a’- better return when it was not rendered for the purpose of getting a return, but merely foi the puipo.se of carrying out the duty imposed on those engaged in the business. That being so they were verv glad the directors bad established a staff henefif fund. The business was tarried on by a stall’ of experts, mostly young men in whom the dir.-e----tors had implicit and complete confidence. Tbe chairman bad mentioned some remarkable figures—that they were receiving something like an estate a week to control. That seemed to him to be quite a striking record in a small community like this. The chairman bad adopted the very good plan of his predecessor of making some remarks regarding general matters. He would just like to refer to tlie matter of bank interest and branch accounts. Tbe Associated Chambers oi Commerce had set. up a committee oi Wellington men who were at present cnnlerring with the associated banks about, the general matter of bank charges and interest, and this mat'd no doubt would be dealt with at tbi-: conference. COMPANY TAXATION. Referring to tbe matter of taxation, in winch they were all very much in terested just’now, they were very glad to learn from tbe newspapers that the report of the recent commission was unanimous Mr Massey had express ed great confidence in the members ol that commission, so lie thought they might reasonably expect that the re cnmmeiidations of the commission might be given effect to. Knowing tho strong views held by the chairman on the subject, he thought thoy. might reasonably look for a reduction in then taxatirn. They w’oro very glad then friend Mr Jas." Begg had been on tho commission, and they inferred from the fact that the report was unanimous tliat the recommendation regarding company taxation would lie in the direction tliat some of them thought ;• ought to be. At any rale the 'Prime

Minister had definitely promised that there would lie considerable reduction in the weight of taxation. Hi at be ~ so the companies ought to benefit, till oped that the diffcientiation between interest on mortgages and on debentures would be done away ivu.i. -(Hear hear!”) That had a ROid deal to do with the difficulty that at mers and the farming community n to get money. It would tend to cuib the tendency of local bodies to ot-i borrow. Ho agreed with the chanman’s remarks on local bonon in_.. ENDING THE MORATORIUM. He felt even more strongly than did the board of directors about the moratorium. He felt that it would not cause any serious trouble—cei tainh not at this end of tho Dominion it the moratorium were allowed to lapse finally.at tho end of the year- It was first enacted in 1914. It had been ’©- peatedly extended and repeated ’ amended. In 1915 the Chamber o Commerce wrote to Mr Herdman, then in charge of the Bill, pointing out <he rights of mortgagees and that there were hardships on both sides. iNo.v they found that in the short extension of the Act that the Prime Minister had indicated he would probably propose he was going to recognise this very thing. Mortagagors woulu have to move in the matter, and the onus was placed on them to show the mortgage could not be called up The reasons why he thonght the thing might be ended were that it was on!v mortgages that existed before laL.l that were protected. These must have been considerably diminished in number by this time. His own experience went to show that the great majority of mortgagors had already faced the position and made arrangements roi renewal. Those who had not done this were the very people who ought to face the position and not allow it to drag on any longer. After 10 years an Act which was enacted with the object of limiting the powers of mortgagors “during a state of war shornd not be extended any longer, hut ended. Sir George Fenwick had spoken of it as a temporary measure. It was time that temporary measure was ended. One matter to which the chairman did not refer, because he did urn have occasion to do so, was an asset of £19,550 debentures. These debentures were all sound. Three years ago, speaking in that room on a similar occasion, ho had ventured to titter a certain word of warning. He thought ho might venture to say that experiences and developments subsequent to that time had amply proved the necessity for the warning then uttered. He had much pleasure in seconding the motion and in congratulating the directors and the company. The motion was carried unanimously. RETIRING DIRECTORS REELECTED. Mr C. J. Payne said he would move.—“ That the retiring directors (Messrs W. E. Reynolds and E. G. Kerr) be re-elected and that the remuneration of the directors be increased to £BOO, to be apportioned as the directors think fit.” The speaker said they all knew the way the directors had worked, and there was no reason why they should make a change. The present remuneration of the directors was £550, out of winch £IOO was voted to the chairman and £76 to eacli of the other six directors. He though that in a large concern like this Idic sum at present paid was much 100 small. Two of the. directors came from places beyond Dunedin—Mr Oil - mour from Southland and Mr Kerr from Timaru. It was necessary that they should take an interest in the company inj Invercargill and Timaru, and they had proved that they did so. They did a considerable amount of work in those places and liad a good deal of responsibility, and he thought they were entitled to a higher remuneration. The addition which lie proposed would enable that to be dono. The chairman attended at the office every morning, and sometimes lie spent most of the morning in dealing with the business of the company. Tho local directors attended every meeting, and were constantly called on to go into matters with tho chairman. The shareholders could not expect +ho directors to go on at tho present rate of remuneration. He thought the meeting would agree that they were most fortunate in regard to their directors. The services of the present directors were appreciated, and if the company was to continue its present state of success they must continue to have directors who enjoyed the confidence of the public. The directors had dono their work well and conscientiously.

'lio members of tho legal profession had a lot to do with them, and could speak authoritatively as to the work they did. He though his fellow practitioners would agree with him when ho said that the work of the directors of this company was second to none in Dunedin, and he was certain that it was appreciated. When they considered the fees paid to the directors of other companies who had not half the responsibility of their directors be thought shareholders would agree that the proposed increase was well deserved. At the suggestion of the chairman. Mr Payne agreed that the proposal in regard to salary should form a separate motion. • Tho motion for the re-election of tho retiring directors was seconded by Mr J. O. Paterson, and was carried unanimously. Mr Payne then moved that, the remuneration of the directors be £fii'o for the ensuing year, to be apportioned as the directors think fit. The motion, which was seconded bv Mr W. F. Sligo, was carried without discussion. The chairman said he wished +o thank them for tho honour conferred upon him by re-electing him to the directorate. Ho considered it an honour, because he looked upon this company not so much as a commercial concern as a fraternity. Thov could always count upon him to do the verv best possible as long as lie was connected with the eoninanv. .After -oturning thanks on behalf of Mr Kct r. who is at present at Home, Mr Reynolds expressed the sincere thanks of himself and his colleagues for the increased remuneration just voted. The duties were undouhtedlv onerous very much more so than thov had beau —and he was sure he was voicing the opinion of the directors when he said that the increase woo’d he most hoartilv appreciated. Tho dirp'-tors were .all interested in the affairs of the companv. and ii would bo didd-nlt ;

cot a hoard working more in harmony than ihat of their company. AUDITORS. Mr Forrester moved that Messrs W. Brown anti Co. and Mr George Blythe and Co. be rc-eleoted auditors for the ensuing year at tho satin' remuneration as formerly, and that Mr W. i). Revel!. F.R.A.. he appointed auditor of ibe Tinnuot Branch, and that his certificate he accepted In the company’s Dunedin auditors. The mover said it was pleasing to know that the business in Timnm had increased -o much as to require an auditor there, lie understood that Mr Rovell re presented South Canterbury on the Nor ealand Society of Accountants, ami therefore must he an auditor of '«itw j cmite. The motion, which was seconded !.\ Mr J. C. Stephens, was carried. VOTK OF THANKS. Air Alfred James said lie had very much pleasure in moving a vote of thanks to tho directors ami stall', lie had hod tho pleasure of coming in contact with t.ho managers anil si.-df a good doul, and ho had invariably found them obliging, careful, un !

stria. In u company of this sort the wnoie management liad lo be wnat ono niigiit term lugniy specialised. its business requuea specialised treatment and a lot or tact and consideration ni dealing with clients. He was satislied trial tbe people got consideration from tins company and that they would gather more and more round it. The stall, irom the general manager downwards, was highly specialised, and there was no fear as to the future. Mr Reynolds, representing the directors, thanked them very much indeed for carrying tho resolution. They all recognised that this company was more a fraternity than anytniug else. The central aim and object of ©very director was to make it a harmonious whole. ivir A. Ibbotson, acting-general manager), in responding to the vote of maims to the start, said that on behalf of the staff of the company at Dunedin, Invercargill, Timaru, and Oamaru he desired to express appreciation of the vote of thanks accorded to the staff. Ke also wished to thank Mr James and Mr Stephens for their kindly remarks in this connection, knowing the high standard set by both gentlemen and having had many business dealings with them, their expressions of appreciation would be all the more acceptable to the staff. At former annual meetings the point had been stressed of the difficulty there was in securing suitable men of , the right calibre as officers for the staff of trustees companies. This difficulty was a real one and still existed. Although knowledge was a very essential requirement, there were. other qualifications such as tact, great forbearance, and sound business judgment. All these were very necessary in a trust officer, the first two especially so, when dealing with the affairs of elderly people. If the staff rf The Perpetual Trustees Company had J'sen successful in giving efficient serwVe to shareholders and public alike, then that satisfactory state of affairs had* la-ge-ly been brought about by the foresight of the directors of the coni] any and the constant interest they had always evinced in everything pertaining to the welfare of the staff. A recent instance of this ivas the inauguration of a staff benefit fund, which, while it would not prove costly to the company, would in time to come prove of very considerable value' to the officers of the company. The establishment of this fund was due to Mr Park and the directors, and was highly appreciated by the staff. The consideration always shown where the staff was concerned enabled the company to obtain and liold on its staff officers of the right stamp. Shareholders would readily understand that with such a rapidly increasing business as theirs was, with branch offices, in other centres and with agencies in the smaller towns, which must in time blossom into branches, it behoved the management and the directors to be constantly on the look-out for men possessing all the requirements necessary for the making of efficient trust officers. He would have pleasure in conveying the vote to the members of the staff, and to Mr Park, who unfortunately was unable to be present with them that day.