Roricir of 7fcr/(Mr.<, IJU/lS. 



FINANCE AND BUSINESS. 



93' 



THE TRUSTEES, EXECUTORS & AGENCY CO. LTD. 



The net earnings of this company — 

 i, 5484 — for the June half-year, though 

 less by about ;^900 than those of the 

 December period, are yet good. Just 

 why the earnings should have decreased 

 by this amount is not explained, any 

 more than was the exceptional increase 

 of the previous half-year, when the 

 profits reached ^^6366 — which result 

 was only exceeded on one previous occa- 

 sion. Desi^ite this drop, however, the 

 past half-year's result is better by ^6469 

 than for the corresponding period of 

 last year, and is above the average of 

 £5352 obtained for the past ten half- 

 years. The du-ectors therefore ar<=> quite 

 justified in stating in their report that 

 " the busmess for the half-year has been 

 well maintained." 



The cause of this decline in the net 

 earnings was attributable to a falling off 

 of £14/0 in the revenue from commis- 

 sion, rents, etc., £12,641 for the interest 

 on mortgages, stock, etc., £1581, was 

 £130 greater. Moreover, there was not a 

 corresponding decrease in the expenses. 

 These, on the contrar)-, rose by about 

 £300 to £8740, but as the company in 

 FJecember last gave the staff a bonus of 

 £764, the actual expenses were lower 

 by aboi t £460. This decline not being, 

 however, adequate, the net profits fell 

 away by about £^900. 



mortgages shown at face value, £14,444. 

 are £300 greater, while the reserve fund 

 investments have risen by £^2500 to 

 £47,500, which funds were obtained 

 from the use of about £"2500 of the cash 

 at bankers, thereby reduced to £6720. 

 The general investments of £14,800 have 

 not moved, neither have the land and 

 furniture accounts of £60,000 and £500 

 respectively been altered. 



* * * 



The company is in the excellent posi- 

 tion of having no liabilities, and the 

 whole of the assets therefore are .the 

 property of the shareholders. Such in- 

 terest amounts to £"145,542, securing the 

 joaid-up capital £^90,000 (60,000 £2 los. 

 shares paid to £1 los.), and reserves 

 £"55,542, which works out at just over 

 £2 8s. per share. The last sale of the 

 shares at the time of writing was made 

 at 43s. 6d., which is a discount of 4s. 

 6d. per share on the assets value. Buyers 

 are doubtless not offering more because 

 I hey deem the return of just over 5 per 

 cent, for the year as little as they care to 

 take. Moreover, they ]irobably do not 

 forget the uncalled liability of £i per 

 share, though present appearances do 

 not point to any necessity for calling 

 11]) this capital arising for some years to 

 come. A further point which influences 

 them, too, is a' reser\e liability of £2 

 I OS. per share in addition. 



The net jjrofit for the jieriod, £5484, 

 combined with the amount brought for- 

 ward after ap]iropriations from the De- 

 cember half-year of £2558, left a sum 

 or £8042 lor a]3propriation. Of this 

 £3150 went in |)aying the dividend of 

 7 per cent, jier annum, £2500 being 

 transferred to reserve fund (making 

 the same £50,000) and the balance. 

 £2392, was (arried forward. 



* -* * 



The general position ol the comiiany 

 as regards its funds has been practically 

 unaltered during the half-year, for the 

 assets, now £145,542, did not rise by 

 more than £670. Their constitution has. 

 however, been changed somewhat. The 



The price of the shares has, of course, 

 nothing to do with the company's abilit\- 

 to serve the public as a trustee. That 

 ability rests on the personnel of the 

 management and the staff, and is evid- 

 enced b\' the success which has attended 

 their efforts. Moreover, the confidence 

 of the public is sufficient proof of its 

 reputation. It now controls over 

 £10,100,000 of assets in its trust business, 

 and should, as time goes on, control still 

 more. That so large a sum of trust 

 money is given to the company to care 

 for is a healthy sign that the public are 

 being educated up to the importance of 

 having a competent trustee, and a sign, 

 too, that the clay of the private trustee is 

 Hearing an end. 



