MONDAY, FEBRUARY 9, 1020. THE DAILY BRITISH WHIG PAGE NIN The Toronto General Trusts Corporation Proceedings of the Thirty-eighth Annual Meeting Total Assets Now Ex ~ One Hundred Millions The thirty-eighth Annual Meeting of the Shareholders of The Toronto General Trusts Corporation was held in the Board Room of the Corpora- tion's Head Office, corner of Bay and Melinda Streets, Toronto, on Wednes- day, the Fourth of February, 1920, The President, Hon. Featherston Osler, K.C., D.C.L., took the chair, and Mr. W. G. Watson, Assistant General Manager, acted as Secretary of the meeting. Report of the ' Mr. AS P: Langmuir, General Manager, submitted and commented upon the finaficlal statements showing the operations of the Corporation for the,year ended 21st December, 191%. . The Report to the Shareholders was then read as follows: -- THIRTY-EIGHTH ANNUAL REPORT OF THE BOARD OF DIRECTORS (Being for the year ended 81st December, 1919) To the Shareholders: : Your Directors have pléasure in submitting the Thirty-eighth Annual Report of the Corporation, together with the usual statements showing its operations for the year ended the 81st of December, 1910. The gross profits for the year, after providing for all ascertained or anticipated losses, amount to $767,338.06. The administration expenses, including salaries, Directqrs' and Auditors' foes, advertising, rent, taxes, | otc, amount to $418,364.16. This, as you will observe, makes our net profits for the year $343,988.89. To this amount must be added $153, brought forward on the 1st of January, 1919, making a total of $496,796.08, which has been dealt with by your Directors as follows: videndg at the rate of an 1 . io rere svssesd 180,000.00 8 of , 191 15,000. per cent. Bonus on ind July 3 13.0000 6 per gent. onus on nd JAKUSry, 1920 ........ Amdunts subscribed as follows Repatriation Campaign o.......ov 4 . . 5,000.00 vation A Les0.00 "ss 180,000.00 sens . an S040 500.00 To amount provided 2 oral Income Tax (payable in 1920 ,000. Amount written off Hea Off Building . bey ny 19,767.00 Balanos carried forward to credit of Profit and 1688 .......... 365,699.02 inition » $498,756.08 The Assets and Liabilities Statement shows an inerease of assets over preceding year of $10,200,401.71, making the total volume of assets in the hands of the Corporation $101,123,031.51, The subscriptions to the Repatriation Campaign, Salvation Army, and vy League of Canada, which the Board of Directors have made on your half, %..1 be submitted for confirmation at the Annual Meeting. It 1s with regret your Directors have to report the dedth dufifig the year of Mr. W. D. Matthews and Hon. Peter McLaren, two valiied mem- bers of the Board. The vacancies on the Beard have been filled by ths appointment of His Honour Lioheél H, Clarke, Liéuténant-Govertior of the Province of Ontario, and Mr. Robert Hobson, of Hamilton, : All of which 18 respectfully submitted. Fe A. D. LANGMUIR, FEATHERSTON OSLER, General Manager. President. Toronto, January 20th, 1920. : Assets and Liabilities Statement For the Year Ended 81st December, 1919, ASSETS. PITAL ADCO! a ortgages on Be Estate Vernm and Mufiicipal Deb®ntyréa ns on Debentired Stoeks and Bonds ns or Adveritég 16 Trust Estites and Guaranised Mortgage Accounts under Administration by the Corporation &hl Estate: fice Premises and Safe Vaults at Toronto and Ottawa Accrued Rents re OfMicés and Vaults ronto and OftaWa .......... sister es kan cobs. 49 1,047,240.85 co 401.005.37 279,750.21 876,987.50 Deposit = SIR70.900.90 Tos \U 4,975.22 om k eon. a hand and IR BankS ..i.ovivvivsinivesiiines B18, : hs El and sii §8,888,687.87 EARANTHE UN irigages on Real Estate 41.045 087.87 Hiwvernment and Municipal 'Debentures «0 3,240,8 of faa ne on Debentures, Stockyg and Bonds " S070, £&8h on hand and in Banks 99,174 capene Sessesadassnnsninainy iii. 9,476,569.88 ndry Assets h on hand and in Banks RE $27,885,7 gues, an nvefitory 69,878,042.27 ------$87,763,834.86 ree $101,123,031.61 Original Assets, Debentures, Stocks and YRIUG .uvvusvise cluding Rost, te 8 ete, ~ 2 Sans ACCOUNT t Fund ' 6. 84, due January 2nd 1920 .... $ Ririden Basar cet. Payabic Jan. Ind, 1920 fiterest in Reserve 2 ppropristion for Fed 1 Income Tax and Sund count LIABILITIES 500,000.00 £,000,000,00 Sates 10,800,000.00 62.800.00 35,000.00 29,608.85 366,629.02 bite teed BD ACCOUNT PR Pr A0.475,560.08 ATES, TRUSTS AND AGEN CIBSww Funds for Investment or Distribution $27,885,791.99 Inventory Value of Original Assets of states and Agencies under administration by the Corporation 59,878,043.97 di adi did toca rnnndenians 3,883,637.87 9,476,560.58 $7.78. 884.20 #101,188,080.51 Profit and Loss Statement 3 For Year Ended 818 December, 1010 i. 4 Balance Srought forward from 8ist December, 1918 Fhaneien 918881013 4 y Commissions received for Administering Estates, : acting as Trustee, Agent etc; Interest on Capital and pl Es Giaraiitos Finds; Nex Fonte : from Oftice ngs, Safe t Vaults, ete, . $757,330.08 To Managemnsnt has, including les, Hrectors and Auditors' 08, advertising, Rents, Taxes, eto 413,354.18 . hdd oilicn Net Profits for Year ..... SASEESs Linke a nt bb tad 348,983.89 ep tomerebtion. Appropriated as follays $496,798.02 To Quarterly Dividends, Nos. #1, 02, #3 and Md at the Yisidous i +d 3 or Sent, gid] bi kien of one cent. payable uly; 1 Aadeuiaan 15.000.00 Tod went 1800 Sdboitsinn 91 of one per cent, payable January, 1920 Bia Jub bed as follows spate » Bavsibcabvinsabiadanesiohonns vation Army ..... Sang ean rrr > > va provided for 1818 Feleral In Tax SEE os oi Dec ing TH AUDITORS' \ tI We, the undersigned, beg to report that we have made a full examina- "tion of the books, accounts and vouchers of The Toronto General Trusts Cotporation to 31:t December, 1919, and Hud sam perly set forth in the above ents of bilities. We have examined, and pntures, bonds and re 180,000.00 $900.00 1,000.00 Corporation ! wers of the Corporation. + Toronto, January 20th, 1980. The President, Hon eathersion w CLG), addressed the Sha sment and the statement of Assots = of the > Joba Bi, i. . that the Public Trustee in England, b Stitement and % % inform them more pointedly than any extended explanation of mine could do of the remarkable growth and solidity of the'business of the corporation. The volume of the assets in their charge and under their management now exceeds $101,000,000.00, an increase of assets over those shown in the preceding year of over $10,000,000.00. The paid- up capital and reserve are represented by the figures of $3,500,000.00, and a substantial Tncreéase in the earnings of the year has enabled 'the Directors, after providing for an inevitable increase in the ex- bense of management, to maintain the usual dividend of 109%, and to pay, in addition, a half-yearly bénus of one per cent., and. to carry for- ward a balance of $265,929, The Directors thought it desirable to carry forward this balance instead of transterring any part of it to the Peeerve Fund, which al ready exceeds the Capital Account by $500,000.00. The Directors cannot but feel gratified 4t being in a position to present such a statement to the shareholders, and trust that it win meet with their acceptance and approval. 1 have alluded to the inevitable increase in the expense of man- agement, and it is but right to say that a substantial item under this head consists partly fu increases of salary and partly of bonus which the Directors thought under present conditions was but reasonable to give to those who have served the Corporation devotedly and weil. Many of us, no doubt, Have observed that the Legislature, prompt- ed probably by exposures of mismanagement in the care of some in- stitution, has endeavored to protect the public by certain require- ments designed for the greater security of shareholders and invest- ors. In substance, all these requirements had already been observed in the ordinary business of this Corporation, and, so far as they were merely formal, have occasioned us no inconvenience beyond the addi- tional labor imposed upon the staff, - The continued confidence of the public in the administration of estates by the Corporation is illustrated by the increase in the number of estates placed in its charge, and this is a subject to which I again in- vite the attention of the shareholders, every one of them, if satisfied by the result in his own case With the management of the Corpora- tion, can aid in extending its business and increase its influence. You will be asked to approve of certain grants which the Directors have thought it right to make in your name, and to confirm a By-law of the Directors relating to the execution of instruments in the cotirse of business, : 3 : I cannot without regret refer to the loss the Corporation and the Board sustained during the year by the death of the late Mr. Mat. thews, whose advice and assistance were much valued by the Board. The illness of another Director, the late Senator McLaren (resulting in his death), and the distance he lived from Toronto, prevented him from giving that assistance which his business experience could other wise have offered. The places of these two Directors were filled by His Honor the Lieut.-Governor, Lionel Clarke, and Mr. Robert Hob- son, of Hamilton. . ' You will now listen with interest to the report and observations of the General Manager, . The President then called upon Mr. A, D. Langmuir, the General Manager, to address the Shareholders. Mr. Langmuir said! It was with a greaf deal of pleasure and no little amount of pride that your Directors are to-day able to report to you that we have suc- ceeded, during the past year, in registering another milestone in the history of the Corporation, fn the fact that our assets have now crossed the One Hundred Millton Dollar mark. In this connéction, it is in- teresting to note that it took thirty-one years to acquire the first Fifty Million Dollars of asséts, and only séven years to accumulate the second fifty million. While it has taken thirty-eight years to accomplish this result, fn doing so there is another factor to be taken into considera- tion--gomething very much more important than the accumulation / of the hundred million dollars of assets--which is, that in bullding/ up this large Trust Estate business, the policy of the management of the Corporation from its inception has been dictated by a high sense of its paramount obligations as a Trustee. It has not used its high powers except as Incidental to the purpose for which it was created. It has not rifked {ts character and eapital, or its fiduciary interests, by as- suming business of a hazardous nature, but has consistently endeavor ed in all its alms and undertakings to build up a reputation that would inspire the confidence of the public, and establish the fact that a re- sponsible and well-organized Trust Company---in preference to an in- dividual--is the safest, most economical, and in every othér way the most satisfactory Executor or Trustee to administer estates, and invest and manage Trust funds. Trist Companies were brought into existence primarily because of the difficulty in obtaining Trustees and Etecutors having sufficient time at thelr disposal to accept sich responsible positions, and also hechule even if such people vould be found, there was no eertainty of permanenicy. Buch reasons hold good just as strongly to-day as ever before; in fact, one might say, even more sc. To-day business men in all walks of lite recognize that a new era has opened up in the World's history. During the year great things have heen accomplished as a re sult of the efforts for a reconstruction of old-time methods and under standings, and as 4 consequence of these new conditions, the time, at- tention and consideration of individuals towards their own personal affairs will be required more thin ever. . It should, therefore, be expected, that the demand by the public for the services of a Trust Company for the management of its affairs will show & stendy increase. - Primarily the fanctions of Trust Companies may be. described under two categories: -- . (8) Those relating to the management and realization of estates, payment of debts, eto., which, speaking generals ly, are duties of an Executor. (b) Those relating to the care, management and investment of Trust funds, which are the duties of & Trustea, Under the first come such duties as renting houses, making cols leotions, repairs, placing insurance, paying taxes, effecting sales of real estate, realizing assets, conducting businesees, efc,, ete, and the distribution of Capital and Income to beneficiaries, And in the second case, the investment and management of Trust funds, collection and disbursement of income pending the arrival of the perfod when the distribution of Capital takes place in accordance with the terms of the Will or Trust Deed under which the Trust Com- pany acts. ' . 3 . In the selection of an Executor, Trustee or Agent to fill these dut- 16s, too much importance may be given by the person considering the appointment of a Trustee to the matter of charges for compensa- tion, inasmuch as such fees are nop different from those that are al- lowed by the Courts to Individuals. The important point to be deter- Inlined by the Testator or Settlor {s that in the selection of his Trustee he may feel assured that he has fully protected the interests of his family and estate, and that such Trustee can be faithfully relied upon 10 carry out the conditions and terms of the Will or Trust Settle- In this connection it should be remembered that a Cor- porate Executor and Trustee in touch with the market at all times, and being in a position to acquire investments in large amounts, may frequently effect a considerable increase in the revenws of the es- tate in this way, as well as in making advantageous sales of assets that would go a long way In offsetting the Trust Company's remuneration, While on this subject it will be of interant to the public to learn whose. fees a few years ago wi fixed at what was considered a cost basis, has found that, in rr take care of the bare expenses of the department, the charges for the. administration of estates, care and management of trustes, etc., must ° be very donsiderably increased. In his published report for the year ended the 81st of March, 1919, he shows a deficiency of £52,990, or, in othér words, that the expenses of his department eXceeded his income . in one year, on the basis of the fees fixed, by nearly $250,000. It is now found necessary to very greatly increase the original tari of fees under which it was hoped that the department might be administered; indeed, the suggested new rates, together with the cost of the estates of the work that fs farmed out to real estate and other agents, in ae- cordance with their practice, and the charges made for special sef- vices such as inspecting property, registration and enquiry tees, ete, will, we estimate, bring the cost to the tes under the care and management of the Public Trustee up to a figure that will exceed the cost of administering simflar estatos in Canada u our Trust Come system. The report of the special fommittée appointed by the , 1 am glad to say, very few In number, eral M ot tine of Sharehold- : ¢ lave been © At the date of our last Annual ors, an Deen R% : i hi 0" | 4 gk H i g i i a a Ee debt which has been inherited 4s a result of four years of destruction. The detailed and very full statements connezted' with the different departments of the Corporation's operations, which have been explain- to you to-day, I am sure, will have been received not only with satisfaction, but with an appreciation that in the conduct of the bubi- Ress, the nature of the investments made, and securities held, the af. fairs of the Corporation are in an excellent position, not only for your selves as shareholders, but also for that large clientele whose estates and interests are under our management. It is usual on occasions such as the present, when Shareholders * meet together, to receive an account of the stewardship of their direc. tors aud management, to direct one's remarks principally to results of operations as they affect their more special interests, but as this Com- pany is something of a Public Utility Corporation, it will be in ofder, before taking up the Assets and Liabilities, and Profit and Loss state- ments, to digress a little, and refer to some matters that have a bear- ing on those labilities of the Corporation which form such an import- ant part of the Corporation's operations, namely, the affairs of the Estates and Agencies under its control, The Estate assets now under management of the Corporation Aggregate the large sum .of $87,762,834.26. ' Of this amount, invest- ments have been mado by the Corporation to the extent of $26,831.- 456.33. The character of these investments is set forth in the Assets and Liabilities statement, and the balance of the estate assets is com- prised of securities in the original state of investment or condition in which they were taken over, the following nature: se ssbesinvasnias wnees.$ 6,188,673.29 Mortgages .. .. Stocks and HORdS .. os os ci iv cxvsannee 35,932,750.88 severest 14,147,787.90 Real Estate .. I Miscellaneous Securities ,. .. .. . Waesssess 8,808,080.85 Total .. oo. iii Jiiinseane B89.898.048.8% In most cases, in connection with these ariginal assets, authority 18 vested in the Corporation by the terms of the documents under which we act, to retain or realize upon them as the Corporation in its decretion may determine. Of course, this is a very great responsibile ity, requiring close and constant ettention to all the different classes of securities affected. In some instances the Corporation's responsi. bility in exercising this discretion depends on receiving the consent of certain of the beneficiaries interested, It might bs interesting to mention that realizations on account of original assets were made during the year just closed of the following classes of securities: Real Batata... .. «. .. .. oo. ovis wersee $1,412.838.04 Morteages .... ,. .. .. .. i 0 en 1,427,731.88 - Stocks, Bonds and Debentures ..., o....... 5,861,004.27 Miscellaneous ASSOS .., .. we swede oases osoe 1,190,618.44 sesnsecnnessaas $9.,801573.28 receives the most careful considera Total 4a vuoi uv ad The realization of such assets tion of the Management and Heads of Departments who are experts in . their knowledge of these différent classes of securities, as well as the personal consideration of your Directors on all important matters, 'The profits of the year, while almost equal to our best year, not« withstanding the increased cost of administration, and no doubt satis factory to the Shareholders of a4 conservatively-managed financial in stitution, In connection with which large profits are not usually looked for, are, nevertheless, very moderate, when it is remembered that as sets aggregating over §100,000,000 are under administration, or in view of the fact that the nét profits are only § per cent. on the oam=« bined Capital and Reserves, which represent the amount the share ers have under investment In the Corporation. Too frequently the public get the impression that large financial institutions or corpora tions organized to conserve the property or fissetd. of others, or to gather up the savings from; many people to lend .gain on farm or ¢ity property or to governments or municipalities; are reaping rich harvests for their shareholders, whefi, as a matter of fact, their stock is only attractive to investors of 4 more conservative sort, who are looking for safety rather than large profits. Such institutions never cali be sources of great wealth either for the shareholders or the Goverfiment Treasury Department looking for income. Investments, . The investments negotiated by the Corporation now aggregate the large sum of $30,213,884.21, being an ipcrease over the preceding Year of $3,418,236.15. While during the past year there has been evidence of an improve ed demand for mortgage loans, the repayments made oontinue ab- normally large, but with the tide of immigration again commencing to tlowgowards Cahada, and building operations becoming more adtive; av substantial improvement should be experienced in the démand for this élass of investment, In this connection, however, too gréat caution cannot be exerciss ed at the present time, in scrutinizing values placed upon farm lands ii the Western Provinces. With the high prices prevailing for farm products at the present time, and the inflow of people from the South, with greatly enlarged ideas of farm land vhlues, an enormous espans sion in values is taking plage in these Provinces as a result of uch ine fluences; and while at the present prices of farm produces such values might be upheld, judging by past experience, we must in time look for fore normal conditions, and very considerably rediiced prices for all those commodities, the sale of which at the present time is bringing 40 our farmer friends such substantial profits, Real Ketate. ¥ : With regard to. real estate conditions which have prevailed throughout Ontario during the year 1919, may say that not for many years has there been such an aé¢tive demand for residential property, due, of course, entirely to the lack of building dtring the war period. Every advantage was taken of these conditions to dispose of state pros petties which were held for sale by tha Corporation. With regard to business property conditions were not so favorable, particularly in thr early part of the year, and some difficulty wad experienced in keeping space fully oscupled. A distinct improvement developed during the year, however, so that at the close of 1919 thers was little of no ware house or office space available in Toronto for rent. The indications aré that this coming year, in view of the difficulty of finding suiteble locations, an active market may, be looked for in all branches of real estate. .Guitranteed Investments, Our plan of Guaranteed Investment has met with much favor dus ing the past.year, the amount éntrusted to the Corporation for invest- ment in this plan having been increased over that of last year by §1,- 290,675.61. I have no hesitation in recommending this form of ifvestment to all people who have surplus funds for investment. The rate of in- terest return is equivalent or better than that received from Dominion of Canada War Bonds, and investors are relieved from all care and re- sponsibility of any description in connection with the investment. Safe Deposit Vaults, . Thy dening for compartments in the Oorporation's vaults and for storage facilities has been satisfactory, so much so that orders for additional nests of compartments to be installed have been made, in order to keep up with the demand. In conclusion, 1 desire to thank the members of the Advisory Boards at Ottawa, Winnipeg and Vancouver, for the gresit personal interest they have taken in the matters brought beforé them for con- sideration, and for advancing the interests 6f the Corporation. I also am Srentiv appreciative of the loyal, conscientious and effi ecient manner in which the officers and members of the staff of the Corporation have discharged their duties during the past year. At the same time I wish to express to all of those who went overseas, and have returned, héw thankfully we weléome them home again, and to feel that they have taken up again their duties in the office so satis factorily, The Report was unanimously adopted. On motion the following Shareholders were appointed Directors for thé current year, namely iiton Casseis, inU., lied). don. Liohel H. Clarke, Hon, W. C. Bdwards, Wellington Francis, K.C.; Brig.-Gen. Sir John M. Gibson, K.C.M.G., LL.D.; Arthur C.F Ys Robert Hobson, John Hoskin, K.C., LL.D.j kdeut.-Col, R: W. nard, Thomas Long, J. Bruce Macdonald, Hon. Sir Daniel H. MoMillan K.C.M.G.; Lieut.-Col. Jolin F. Michie, E. T. Malone, K.C.; Sir Bamund B. Osler, Hon. Featherston Osler, K.C, D.C.L.; J. G. Seont, K.C.: Bir Edmund Walker, C.V.0., LL.D; BE. C. Whitney, H. HH. Williams. 'At a subsequent meeting of the Directors the following officers wera elected: President, the Hon, Fedtherston Osler, K.C,, D.C.L.; "Vice-Presidents, Hamilton Casséls, K.O,, LL.D; Brig.-Gen. Sir John M. Gibson, K.C.M.G., LL.D. file 7 HH feb amounting to $59,878,042.217, and are of { i | Many British Ex-Oificers officers fields in Esthonia, posts ficers. British forces. with difficulties, to their service. issued offering t is hardly more The Esthonian TT : £ g otrs and AE if visit to ex-officers of the for the STEER of is a deal to say 1H great amgunt of perbaps the . cal conditions, e affairs of fore the Osech h y those made 1 is still low-grade leather of sl proof quality, and the garden city | Sands on the outerop clay, which in wet weather holds a Appear Anxious fo Live As Soldiers of Fortune UNDREDS of British ex- are seeking new whieh to fight. Brite ish soldiers of fortune pro- mise to be j' common on the con. tinent ag they were in the days of the Thirty Years' Russiz at the present holds out the greatest attfactions for the advens turers. After north Russia come Poland Slovakia. All foreign Governments engaged in small wars or in licking their armies into shipe are offering to demobilized British of War. and Caechos On the books of the Russian Emme | bassy are the names of more than 100 officers who have volunteered to ' serve. The demand is for those with tedhnical knowledge who can aot as instructors. At the moment the only front to which the Russian Govern~ ment is sending officers is to north Russian, so recently evacuated by Shipping facilities are surrounded but they are being obtained. On that northern front, before the British left, the Bolshe= vists sought to luré British officérs A pamphlet was hem large Russian authorities are still cone the matter of pay: As he than 450 a month, Suverment has ene Poland is newly arrived in the field of competition for foreign off positions as instrustors officers, ok Legas tion in London reveals that twenty British army have plisd to Prague for service in the The trouble with all foreign Government ment is their lack of read that is an old story. Sol tune were tavously at this moe funds, but of fore 8 betiee ~ Mexican the comment on the innovation by the local eritics there for it. The British for chile made of t waters of London , and clogs are ay for the lo=