RAPID PROGRESS

Evening Post, Volume CXII, Issue 60, 8 September 1926, Page 12

RAPID PROGRESS

PUBLIC TRUST OFFICE

INCREASING BUSINESS

CONDUCTED ON SOUND LINES.

The amount of business handled by the Office has continued to increase in a most satisfactory many ncr, states the annual report of the Public Trust Office. During the past year, says the report, 3353 new estates of a total value of £4,691,447 were accepted for administration, as compared with 3023 estates of a value of £4,621,869 accepted during the previous year. The value of the estates and funds under administration on the 31st March, 1926, was £38,009,480, and the period under review was the fifth consecutive occasion on which the new business exceeded £3,000,000, and the second consecutive occasion on which it exceeded £4,000,000. The following draft table shows the rapid growth of the business conducted by the Office during the past thirty-five years:— ' Value of Estates and Funds under Year ' Administration. £ 1811 ......'•'•» .j*i* »■*• 1,252,625 1890 ........*..'.^~i 1,806,953 1901 .......," --v 2,326,954 1906 ...,>.,.... iv- 4,009,992 1911 ....,.......«« 8,112,342 1916 ..'...»...••.* 13,598,744 1921 "..». .w- .'.V-V 22,364,319 19 26 '..,..' 38,009,480 EFFICIENCY AND ECONOMY. Notwithstanding the remarkable orowth of business, particularly over recent years, the expenditure has not shown any marked increase, and, indeed, the expenditure for the past year was appreciably less than for the year ended the 31st March, 1921, when the value of the estates and funds under administration was some £16,000,000 less. This comparison provides a satisfactory assurance that the Office is conducted in ah efficient and eeonomi- | cal manner. The total revenue during the past year amounted to £282,386, a decrease compared with the previous year of £.17,053, which is more than accounted for by the substantial concessions made during the year by way of increased rates of interest and reduced charges. Notwithstanding tliese concessions, the operations for the past year .have-resulted in a net profit of £47,484, which was arrived at after meeting income tax and providing for the depreciation of plant and buildings and all other expenditure which a commercial undertaking would require to provide for. But for the concessions granted during the. year ■ the profits would have exceeded those of any previous year in the history of the Office. It was never intended that the Office should amass large profits from the administration of estates and funds entrusted to it. Whenever these operations have returned a surplus over tho expenditure and enabled proper provision to be made for depreciation and reserves the estates and funds under administration have been givon . the benefit of the surplus. Between the years 1916 and 1920 a bonus was distributed amongst beneficiaries and the j funds administered'by the Public Trustee. It is, however, considered more satisfactory to grant concessions by way; of increased rates of. interest and reduced charges for the services rendered. It will be seen that it has been part of the settled policy of the Office for some years to make these concessions; a portion of this policy has already been carried into effect, and it will' be developed ■ further as. circumstances permit. Progress in this direction is necessarily Slow at present, owing to the fact'that a portion of the Office funds invested a number of years ago on long-term loans return a low rate of interest in comparison with' both the rates at present returned by the Office investments and the interest credited on. moneys invested in the Common Fund of the Office. However, as these investments fall in and the funds are reinvested at higher rates of interest it will probably be found possible to graiit yet move extensive concessions. ADMINISTRATION CHARGES. "The charges . which the Office makes for the- administration of estates, trusts, and funds have always borne .favourable comparison with the charges made by concerns transacting similar business in the Dominion,'' states the Prime Minister in commenting on the report. "This position will be regarded as all the more favourable to the Office when, as pointed out in my statement last year, it is recognised that the Office is called itpon, without adequate remuneration^ to administer numbers-of small estates and to. perform many duties of a miscellaneous nature.'':. ''■■ '. ; The' growth of the Office business is 1 reflected in the increase of the total investments controlled by the. Public Trustee, which amounted on the 31st March last to the considerable sum of £24,316,637. The fact that new loans to the Talue of £3,709,706 were granted to borrowers during the year is evidence of the very important : part which' is played by the Public Trust Office in providing finance at a reasonable rate of interest to the farming community for the purchase and development of farms, to business firms for the erection of modern buildings, and to- the increasing number of applicants in urban areas who apply to the Public Trustee for loans for the purpose of erecting dwellings. The assistance given to local bodies has also been noteworthy. '• The application of the amortisation principle to practically all new loans to private borrowers marks an important development in the investment work.of the Office. The Public Trustee's report points out the advantages of the syltem both to the borrower and to the lender, and shows that it is commending itself more and more widely to those who seek financial assistance from the Public Trust Office. WILLS DEPOSITED. The number of wills deposited with the Public Trustee for safe custody continue* to increase in the most gratifying manner. The net increase for the year in. wills deposited (4855) constitutes a record for the Office, with the sole exception, of the year ended 31st March, 1917, during which year an abnormal increase resulted from the deposit, of wills of members of the New Zealand Expeditionary Forces. The total wills upon deposit on the 31st March, 1926, is 48,957, and many wills appointing the Public Trustee executor are doubtless held by banks and private solicitors. The Prime Minister says that the fact that the Office is making rapid and healthy progress despite active competition is satisfactory testimony that its business is being conducted on sound lines. Evidence is received by the Government from time to time that tho work of the Department is promptly and efficiently carried' out. This is borne out by the numerous expressions of appreciation received from clients of tho Office, and by tho absence of well-founded complaints by thoso for whom it acts.

The following.articles were found in the crop of ii chicken in England:—Two screws, :i ring, three buttons, sixty Lalfinch brads, and a wireless terminal.