PUBLIC TRUST OFFICE.

Press, Volume L, Issue 149814, 30 May 1914, Page 14

PUBLIC TRUST OFFICE.

"WILD AND IRRESPONSIBLE STATEMENTS."

MR G. W. RUSSELL, M.P.,

AXSWEBED.

SPIRITED DEFENCE BY HON. A. L.

HERDMAN,

j Certain criticisms of tho Publio Trust Office mado by Mr G. W. Rossell, M.P., wero referred to by tho Hon.'A. h. Herdman, Minister in Charge of the Pnblic Trust Office, in the course of his political address at Hawarden yesterday afternoon, and the Minister mado a tellj ing and effective defenco of his adtninisj tration of tho Department. j Mr Herdman said that ho noticed by j that morning's newspaper that -Mr j Russell had been suggesting that sinco ho (Mr Herclm3.ll) took over control of j tho Public Trust Office it had been his j earnest desire to manage it in the in- ] torests of the lawyers of New Zealand, j It was quit© an easy thing to make a change of that description. They had 1 first tho fact that tho man in charge is a lawyer, and it was not difficult to get tho public to believo such a statement as that made by Mr Russell. Ho (tho speaker) believed he could supply convincing proof of .the fact that since ho took charge of the Public Trust Office tho business of tho office had improved. THE COMMISSION OF ENQUIRY. Shortly before tho present Govern* ment took office a Public Service Commission, which was appointod by tho Mackenzie Governniont, furnished a report, in which reference was mado to the way in which the business of tho offioo was being conducted, and also in respect to tho staffing of the office. Mr Ell that there 6hould be a searching enquiry, and other members on tho same sido of tho House sugi gestod that a thorough investigation should be made. As a result, Mr Hosking, now Mr Justice Hosking, and Mr Alexander Macintosh—one of the finest busiuess men in the Dominion, and at one time manager of tho Bank of New Zealand—were appointed a commission to enquire into the working of the Public Trust Office. Two more competent men could not have been selected. Theso gentlemon investigated and duly reported, and in their report they mado somo reference to the legal part of tho staff of tho office. Mr Russell said that a legal bureau existed: he (Mr Herdman) thought ho made a mistake in "using that expression—there, was no legal bureau, thero was a legal branch, tho duty of the officers of which was to see that the work connected with the branch was expeditiously done. The branch did not exist for tho benefit of the publio except as a branch of the Publio Trust Office, _and tho officers wero in tho branch to do Publio Trust Office business arid no other business. The work of the 'officers of the branch was legal in character, because the Public Trustee was charged with tho administration of trust estates, and th© business he had to transact was of a legal character. It was therefore necessary that he (the Minister), being in charge of the Public Trust Office, should see that the work was done properly and expeditiously in tho interests of those who entrusted their business to tbe Public Trustee. Tho Commission made some suggestion as to the reconstruction of the legal branch, and with their recommendations he agreed, and he was going to so© that the recoriimenda- • tions were carried out. Tho -Commis- ' sioners disagreed with tho' centralisa- < tiou of the legal work of tho Public ' Trust Office in Wellington, and held 1 that legal work in connexion, say, i with tho Christchurch office should be done by somo legal firm attached to the Christchurch office. Tho desirable- ■ ness of that was obvious to anyone < with common-sense. '

A CHEAP LEGAL BUREAU. "If tho people want a cheap legal bureau established," Mr Herdman went on, "then so long as I am in ehargo of tho Public Trust Office it is not going to bo in connexion with that Department —it must be separate—and the legal branch of the office must confine itself to tho business of those who entrust their business ,to the Public Trustee It is charged against mc that I have been working against the interest of tho Public Trust Office—that is tho suggestion of Mr Russell: that I am working in the interests of my professional brethren and not in the interests of the office. I hold in mv hand a report furnished to mc, and when I read it I am convinced that you will be satisfied tha_t the charge made against mo is wrong and erroneous and that, on the contrary the office has prospered during tho "past twontv months. This report has been handed to mo by a responEible officer of tho Department:—

AN OFFICIAL REPORT/ '-Tho office has reoeived a great impetus to its business through the passin" of tho Amendment Act or last session, and when the full benefit to be derived from utilising tho services ol tho official becomes more widely known a considerable accession to the estate businoM will result, The office now has two mm-servico members on its board —Mr W. G. Foster aud Sir G. iolhurst. The former was appointed lor his experience in matters relating to farming and live stock, and the latter for his skill in matters or banking and finance. It is expected that tho mflueuco of these two members on —o deliberations of the Board would havo a most beneficial result on tho general business of the office. "Tho new Act provides tor tho appointment of advisory trustees—an entirely new departure, although a system 'iir- vogue with the English Trustee. Frequently people have wanted to join some relative or friend with the .Public Trustee, but uo to now they havo been unable to do so. Other facilities tnven to the public are the ability to appoint the Public Trustee custodian trustee; that is to say, ho can take over any securities or money from tho managing trustee. He would not be concerned in the joint administration of tho estate. He would simply receive tbo funds and invest them, or receive j securities for saie keeping. The assist- ! anoe of tho Public Trustee can now be : invoked io investigate and audit the ! accounts of private trustees; similarly, : beneficiaries can appoint a solicitor or | an accountant to examine the Public Trustee's accounts. Per naps one of the most important improvements in tno working of the office is granting tno Public Trustee the right to administer small estates —that L=, those under £400—without obtaining an order of the Court. He simply iiles an election at a cost of 3s, and it matters not whether tho deceased left a will or not. This means that the estates of poor people can be administered by tho Publio Trustee most economically. "A good maoay alterations were made by the new Act, bat they aro all of a technical character, and framed entirely with the object of making tne office machinery run more smoothly. A new set of regulations is now being framed [the Minister said that tfaev had been since framed! wneroby further concessions will be given to people who do business with the office. These re<*u-

lations will provide for an increased rate of interest to benoliciarios in certain classes of estates, and they will reduce the office charge for administering also in a number of cases.

"The office is developing in all directions. No doubt in the large centres this is due in a great measure to tao appointnieut of one official representative to be a. local Depucy-l'uoiio Trustee, with powers very iitt.le short, in local estate administration, of the .rublie Trustee himself. In the smaller towns the Publio Trustee has his district manager, and ere long the business will necessitate some of these being transformed into local Deputy-Pub-lic Trustees. In many places the office has its own premises, the latest newoffices to be built being at Auckland and Wanganui.

"Even with the peculiar business of tho Public Trustee, labour saving devices have-been introduced to tho fullest extent recommended by the Public Service Commissioner, and adding and calculating machines are in constant uso. The business of the offioe is enormous.

_ "On March 31st, 1913, there were 7909 estates and aocounts in the office of a total valuo of £11,268,311, and of this large total the Public Trustee actually had investments for £5,515,697. The figures for the current year are not available yet. but it is quite 6afe to anticipate that the totals will be swollen;by at least another 500 estates and accounts worth another million or more in value. The office holds the wills of over 8000 living people, and these are being added to at the rate of over 1000 each year. "The report of the Commissioners, Mr Alexander Mcintosh and tho present Mr Justice Hosking, has proved most valuable to the offico, and as many of tho suggestions they made a3 is possible to adopt in a short space of time the office, has adopted, and tho other .reforms that they indicated will be given effect to* "Tho offico has done its best to cope with tho great growth of the Department, and tho Government has assisted it to the fullest extent by adding to and improving the standing of the staff. It was found that tbe work was such that higher salaries than are usually paid to Civil servants had to be provided for a good number of the staff. . j "For the year ended March 31st, i 1912, a total sum of £21,745 was paid ; in salaries, but as a result of the in- j vest.igations made for th© Government j the staff is considerably added to and I increases were given making up a • total salary roll of £27,330 per annum, and during tho next year further developments had to bo made involving total increases amounting to £2900. The total salaries the Department paid for the year ended March 31st, 1913, amounted to £27,330, ' whereas tho salaries at th© present moment amount to £34,680. "The number of new appointments to tho staff during tho year 1913 was 45, comprising seven transferred from other departments, two transferred from the temporary to tho permanent ; staff, 25 cadets (new appointments). , 10 typistes (new appointments), and one lift man at Auckland, while | the resignations numbered 18. leaving j an addition to the staff of 27."' A CHOICE, I The Minister continued: ""iet you are told by Mr Russell and other gentlemen who wander round about the country making these irresponsible and wild statements, that I had deliberately attempted to block the bu.siuess of the office. I ask you whether the statement of a responsible officer or Mr Russell's statement is to be believed; or whether you will accept these facts that I put before you this afternoon?"

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