INVESTMENT YEAR

Wanganui Chronicle, Volume 83, Issue 34, 10 February 1939, Page 11

INVESTMENT YEAR

WELLINGTON TRUST, LOAN CO. Addressing shareholders at the annual meeting of the Wellington Trust, Loan and Investment Company, Ltd., on Wednesday, Dr. C. Prendergast Knight, who presided, said the directors were pleased to be able to recommend a slight increase to the dividend, making it 6 per cent, for the year, which represented only £3 16s per cent, on the shareholders’ funds invested in the business. The reserve funds of the company were approximately £90,000, so that the dividend represented a very moderate return on the capital involved. The balance-sheet showed that on the capital and liability side deposits were lower by £16,634, interest by £lOO2, land and income taw by £7BB, while indebtedness to the company’s bankers were up by £4158, and the profit and loss appropriation up by £373. On the assets side mortgages were £2434 more than last year. Included In this item were table mortgages which were up by £10,861, a very gratifying feature, as this form of mortgage was much better for lender and borrower alike, and was an essential part of the board’s policy.

New Zealand Government inscribed been made to provide a more profitstock was less by £BOBl, sales having able investment. Freehold property which stood last year at £7027 was now £7243, because of properties falling into the company’s hands. Business premises stood at £10,497. The profit and loss account interest was down by £363, and charges were up by £ll9, mainly caused by legal fees in connection with cases under the mortgage relief legislation. Land and income tax was less by £794, and profit and loss appropriation was up by £1529. On the credit side the revenue from mortgage interest was £683 more than last year. New Zealand Government inscribed stock dividends were less by £262.

The company started the year with a carry-forward of £5251, which, with the balance on this year’s working of £8942, amounted to £14,193. Out of this £3125 had been paid as an interim dividend of 2S per cent., £693 had been transferred to the special reserve account to leave it at £6500, and the sum of £ll5 had been written off the business premises. The directors proposed to add £lOOO to the reserve fund, making the total £86,000, and to recommend a further dividend of 3i per cent., absorbing £4375 (making 6 per cent, for the year), and to carryforward £4999.

This year saw the end of all adjustments by the Mortgage Relief Commission and the remissions made by the board voluntarily. The special reserve of £6500 was considered ample to cover any further losses and voluntary adjustments. The year had been an anxious one for the staff and board alike and closed the period of adjustment; by force of law.

Shareholders were to be congratulated at the small amount of capital lost, which showed the careful management of the board on their behalf. The company performed a useful service to the community by affording a safe investment for their moneys and to borrowers in assisting them to obtain capital at a reasonable rate. Dr. Knight apologised for the absence o fthe chairman, Mr. J. J. Reich, who was severely injured in an accident last August, but was making a good recovery. The directors’ report and the accounts were adopted.

The retiring directors, Messrs. R. W. Gibbs and R. A. Holmes, were reelected, the auditors. Messrs. E. W. Hunt and G. L. Judd were reappointed, and a vote of thanks to the staff was carried.