LAWYERS AND TRUST MONEY.

Dominion, Volume 7, Issue 1878, 11 October 1913, Page 2

LAWYERS AND TRUST MONEY.

GUARANTEE FUND' PROPOSED,

The embezzlement by a South Island 1 lawyer of a sum of about £50,000 has caused tho Wanganui "Herald" to suggest that tho Legislature should take steps to establish a guarantco fund to protect the public against such breaches of trust: It proposos'that overy practising solicitor should be compelled to make an adequate annual contribution to a guarantee fund of which Public Trustee might bo made tho administrator. Tho amount of tho contribution might be fixed at, say, £10 por annum to begin with, and might bo reviewed lator on. "As there are some 950 solicitors practising in tho Dominion," adds tlio' "Herald," "this would produce a sum of £9500 in tho first year. Provision might bo mado for all ascertained defalcations to be paid as far as possible from this fund. Wo do not thjnkthat solicitors could reasonably complain'of siidi an impost, as prov>sion might also bo made for tho moneys so hold to boar interest at tho rate earned by tho common fund of tho Public Trust Office, and for any solicitor retiring from practico. or tho representatives of any deceased solicitor, obtaining a refund of his proportion of such fund if he; had,not boon tho moans of causing any charge thereon. . , , "AVhon tho license fees, required from other mombera of tho business community are considered, such a chargo cannot bo considered high. A solicitor at presont is only required to . pay a heenso feo of £3 3s. por annum, and £2 2s. extra if he is also a barrister. A licensed agent under the Land. Iransfer Act is required to 'pay an annual license of £5, and to find a,substantial guarantoo, and his activities aro limited, to a vorv small portion of those permitted to a solicitor. A land agent's licenße costs £10 per annum, and a guarantee is also required. A Custom House agent is also required to find . a substantial guarantee, and • ail auctioneer B liconse costs £40 per annum. tution of some' such Guarantea Fund as wo have suggested above would m our opinion operate beneficially to the profession itself, and would also furnish a tangible safeguard to tho public. At tho present time it must nlso bo nv membered that mombers of tho Civil Service itself are called on to make good by a pro rata levy thedefalcations of any of its membors. The dofculs of tlio BUirgestod Guarantee Fund should not bo difficult to work cut on an equitable basis, and we commond ( tho principle to publio consideration.