PERPETUAL TRUSTEES

Southland Times, Issue 18846, 11 June 1920, Page 2

PERPETUAL TRUSTEES

THIRTY-SIXTH ANNUAL MEETING. A RECORD YEAR. Sir George Fenwick presided at the annual meeting on Wednesday of the Perpetual Trustees, Estate and Agency Company of New Zealand, supported by four other directors —namely, Messrs W. E. Reynolds, John Mill, Edgar C. Hazlett, and James Begg. The other director, Mr Robert J. Gilmour (Southland) sent an apology. The annual report, which has already appeared in our columns, was taken as read.

In moving the adoption of the report and balance sheet the chairman said that it was gratifying to shareholders to learn 12 months ago that the company had had a record year. Tills year it was his pleasant duty to inform shareholders that the year which had Just closed had far outstripped its predecessor in the volume of business done and in the profit that had resulted. This was not the result of any increase in the company's charges, which still remain at pre-war rates, such charges never having been altered since being fixed in the year 1905.

The figures of the profit and loss account as at April 20, 1019, were £4472 5s lid, and at April 20, 1020, £7OBO 4s 5(1, the increase amounting to £3213 18a Get. The gross income for the year just closed was £13,320 7s (id, and for the preceding year £OSBO 0s 4d. The net income for the year was £0029 11s sd,*and for the preceding year .£2804 18s (Id. The increase in too gross income was - £3744 Is 2d and in the net income £2727 12s lid. The 1020 figures are a record.

With respect to the sum of £2500 which it was proposed to place to reserve fund, it was the intention of the directors, if this proposal was assented to by the shareholders to make a call of 2s per share and declare a special bonus dividend of a similar amount to meet the call. Both would be payable ou an early date. The shares would then stand paid up to 12s per share. This was the second restoration of a portion of the capita! that wits written off in the early stages of the company’s history, and it would increase the paid-up capital to £15,000.

Il will bp of intprost (o shareholders to know that the total value of the business controlled by the company had now reached over £3,000,000. These were impressive figures, and amply demonstrated the confidence placed in the company by the public. The new estates ami trusts that had come into {he company’s hands fluring the year numbered 34, of a total value of approximately £215,000. The new wills deposited in the office for the year numbered 127, and experience had shown that this number would be considerably augmented by wills that were made and left in the hands of testators’ solicitors. As showing the steady increase in (he volume of business entrusted lo the company, he might mention that I lie staff required to deal with it had increased from live in 1910 to 16 at the present day, with salaries aggregating in the former year £I3OO, anti to-day £4600. The directors for the past five years had had cause to exercise the greatest care in (he selection of freehold securities upon which to lend moneys on first mortgage. The company do not lend on second mortgage. The enormous increase in the value ik all classes of proi>erties in recent years and up to the present time was, in the opinion of the directors, not justifiable, and they did not think it could continue. The prices realised for fanning and residential properties were in many instances out of all proportion to their true value, and wore certainly far beyond their productive value, even allowing for the present high prices ruling for produce. The company's expert valuers were continually advising them of inflated values in land in their respective districts, and had for some time past been compelled to exercise the greatest caution in recommending amounts applied for on loan. Notwithstanding this, ho was still of the opinion that the safest investments are those of farm properties in the South Island. The present rate of interest was oj' per cent., with an upward tendency. The rate of interest before the war in 1914 was 51, and had varied very little during the past six years. This could only ho accounted for from the fact that in recent years an enormous amount of "war money” had been circulating throughout the dominion and finding investment. The surfeit of money was also the cause of the very high prices of shares, at present ruling. Excessive spending and speculation was too rife at the present time, and was not at all a healthy sign. This was occurring throughout, the world, so much so that in England and America bankers had raised the rate of interest considerably in order to eiieek rash speculation. Tills movement might be reflected in the dominion to the extent of raising the rate of interest and reducing the prices of company shares. It was well understood that a high rate of inlere.-t was not good for any country; (hat, indeed, the lower the interest the greater the prosperity.

With regard to (.he business of (ho company. lie was pleased to say that if was growing ill s( ability even- year, ami its future 11respects were exceedingly bright. There were many large and valuable trust estate.; in I lie hands of the company, several of which had long-continuing (rusts that would run on fur many years. A very important aspect of the company's business was the increasing number of people who now had confidential talks with the manager on (heir private affairs and estates before going to their solicitors to make their wills. This previous knowledge placed the company as trustee in a better position to understand the testator's intentions and to cany out the terms of his will. The most satisfactory estates to manage and wind up were those where the testator had left his will, deeds, documents, insurance policies, scrip and bonds with the company, with a list complele. 'i'liis sound practice obviated the necessity of hunting up lists of scrip, life polieicv, deposit receipts, etc., which had in many instances had to be done in deceased estates administered by the comp,any, and caused much trouble and loss of time.

In seconding the motion Mr \V. Downie Stewart, M.P., expressed the opinion that the Perpetual Trustees Company occupied a golden mean helwcen a large Slate department with the danger of centralisation and red tape on the one hand, and Ihe risk of private trust the other. The day of the private trustee was rapidly passing away, and the business of a compiany saiah as theirs must continue' to grow. The report was adopted without discussion. ’the retiring directors (Messrs James Begg and Robert J. Gilmour, Southland), were rc-elcctcd on the motion of Captain Sundstrum, who said there was not a company in Dunedin with a better or more experienced hoard of directors to manage its affairs.—Mr Begg returned thanks on behalf of himself and Mr Gilmour, whose services as the company's representative in Southland, he said, had been invaluable to it. A vote of thanks to the directors was pro|K>sed by Mr A. Matheson, and to the manager and staff by Mr R. Gilkison. Mr Gilkison said that a-s one who was frequently in the office on business, he must bear testimony to the unfailing courtesy with which they were always treated.—Sir George Fenwick returned thank? for the board of directors, and (he manager (Mr J. A. Park) for himself and the stall. A vote of thanks to the chairman concluded the meeting.