WELLINGTON INVESTMENT COMPANY

Dominion, Volume 11, Issue 264, 27 July 1918, Page 10

WELLINGTON INVESTMENT COMPANY

SURVEy OF OPERATIONS. The thirty-second annual meeting of the Wellington Investment, Trustee and Agency Company was held yesterday. Mr. U. it. Simpson, chairman and managing director, presided, and there was a, good attendance of shareholders. Thn chairman said that the present period of the company's existence was one which called for special care on the part of the management, arising from the strenuous efforts which tho Empire had to make to preserve its position in too world. When the conflict was over .there must undoubtedly be reaction from tho inflation created by the high level of expenditure induced on war requirements. This matter had been recognised by the directors, and from the opening of this period there had practically been a halt in the operations of the company as to any new undertaking. In tho directors' view, tho conditions in New Zealand on the whole were favourable as compared with most other placos, because although large responsibilities had to be shouldered there had been an abnormal amount of gain obtained in realising on tho country's products, 60 that tho latter had to no inconsiderable extent met the demand of the formor. This was the general aspect of results for the whole of the Dominion.

"As to the effect upon companies such as ours/' added Mr. Simpson, "the laiger returns for produce have increased tbo market price for land. All nrticles have risen in value, and to meet this 'and on account of the call upon the manhood of the country wastes have generally increased; consequently estimates as to country land and for buildings erected at the present time in towns have become unreliable as security for any ordinary period of investment. In view of this I ' trust that you will recognise the necessity for that caution with which directors have comkfted your business. Practically for four years we have simply marked time; further money could have been taken and lent out, but it was judged better to refrain. Undertakings such as ours have not in any way participated in the prosperity which agricultural, pastoral, and many commercial interests are now enjoying. Wo are. in fact, rather unduly weighted by the circumstances I have mentioned, and also by legislation in the more recent measures for taxation. Our profit in normal times is only the aggregate of very moderate margins, and yet our profits are at present taxed under the same schedule as those interests I have mentioned, which are more fortunately placed.

"This question of taxation in respect of companies has been dealt witli upon many previous occasions, and it lias been rightly urged that such as ours simply combine a number of separate interests, and that it is the individual who should be looked to and pay according to his means. The justice of this view is, I think, generally admitted, and only the exigencies of the Treasury' requirement can bo alleged to justify the present demands. The effect of the policy which we have pursued may be noticed in the balance-sheet, comparing it with tho previous year. Deposits have been considerably reduced, and on the other hand oui? securities by way of mortgages are also smaller. II; is not a usual tiling for us to meet you shoving a reduction in tho scope of our operations, but the Jioard is very well content that it shall bo so, believing that such is the best policy to pursue at tho present time, and until circumstances are so favourable as to permit our competing again for business. As to tho items of profit and loss, our gain in business is about ,£950 moro than 1017, but taxation now amounts to <£137-t 2s. Sd., iir i'ol3 Ms. sd. moro than shown in the 1917 sheet, and .£llO3 Bs. more than 1914. Our ciiarges account is also somewhat higher owing to rent of new premises and cost of fitting them up, and also some increase in salaries. "Our money is very safely invested, firstly in mortgages upon land at prewar values; secondly, in short-dated bonds having early maturity and full interest; and, lastly, in New Zealand Government War Bonds. These last-named assist to reduce both the amount and gradation of tho tax which we arc liable for. Our financial position thus is. strong both from Ihe position of those dealing with us and for tho shareholders themselves, and if we refrain frc-m undertaking responsibilities seeking for profit just now we shall bo tho better able to make progress when normal conditions prevail, l/n-ler the circumstances your directors consider that they are justified in recommending tho usual return to tho shareholders, viz., 6 per cent, dividend and 1 per cent, bonus, making 7 per (sent, in nil. Of this 3 pei\ cent, was paid as interim. If yon agree with the recommendation there will bo 4 per cont. payable to yo.i now. As to the immediate future, under conditions as wo see them there appears little doubt 'but that wo shall be able to show an equal gain during the current year, and may also con. fiibntly await the advent of bolter times. I may mention that wo have no foreclosed properties on our hands, or any account that gives us much anxiety. Our property in Victoria Street now stands in tho books at an estimate of less than 70 per cent, of its value to construct."

'l'iie report (a precis of which has been published) and balanco-sheet wero adopted on the motion of the chairman, seconded by Mr. L. O. H. Tripp, Messrs. B. M. Simpson and 3?. Coffey were declared re-elected director.? without opposition, and Messrs. Bucholz and lfowloy were re-elected auditors.

: Mr. D. T. Stuart moved: "That tho shareholders place on record their senso of appreciation of tho great services rendered to tho company by Mr. James M'Kenw. During tho 32 years of the company's existence Mr. M Kerrow has been a member of the Board of Directors, and for the last four years of that period has been chairman of the board. The shareholders have heard with great regret of the retirement of Mr. M'Kerrow from tho board, and wish him many years in which to enjoy his retirement. That tho secretary bo instructed to writo to Sir. M'lCerrow and convoy to him a copy of this resolution." The motion was carried unanimously, and tho mooting then closed.

CANTERBURY PRODUCE MARKET By Telegraph.—Press Association. Christchurch, July 2G. There are not any offerings of grain or produce from growers, >ts the weather during tho week has rendered delivery impossible. There has been a good demand for oatshenf chaff for the snowaffected districts, and this has been supplied out of store, ns chaff-cutting has been suspended. For these supplies jri more per ion has been obtained than would have been paid beforo tho bail weather 6et in. Tho stocks in 6toro are 101 considerably lighter. Potatoes are in good demand, and few are offering. For white varieties JtG ss. to J!li 10s. per ton is being paid, and up to J!6 15s. for Dakota llcds at country stations. Mangels aro also selling freely at 30s. per ton at country stations, and liny at ,Ct pe" to,i in stack Onions have further advanced, and aro now quoted nt *£17 to ,£'l3 per ton.