PUBLIC TRUST OFFICE

Gisborne Herald, Volume LXVI, Issue 20036, 7 September 1939, Page 11

PUBLIC TRUST OFFICE

EXPANSION OF BUSINESS REVIEW OF OPERATIONS WINDING-UP COM PA NIKS A pleasing feature of the year's operations has been the increase recorded in the new business reported to the Public Trustee for administration. states the annual report of the Public Trust Office. In both the number of estates, 3080, and the value of the business, £6,314,532, there was a marked advance over the figures for the preceding year, when 2934 estates and funds of a total value of £5.960,359 were accepted for administration. The aggregate value of the estates and funds under administration on March 31. 1939, was £01,715,713, compared with £00.815,30G at the close of the previous vear, an increase of £900.407. The expansion of the Public Trust Office over the past 20 years is shown by the following taWe, giving _ the value of the business under administration and the number of wills on deposit at ten-yearly intervals: — Number of Value of estates wills of living and funds under persons held administration on deposit

The liquidation of the Investment Executive Trust of New Zealand, Limited, and its subsidiary companies is now approaching completion. In most cases the assets have been realised. and steps arc being taken to have the companies still under administration wound up and dissolved.

The fact that the Public Trustee specialises in the making of wills and offers this service free of charge to persons desiring new wills prepared or old wills revised where the Public Trustee is appointed executor is reflected In the continued increase in the number of wills received. Preparation of Wills In the past year 4919 wills appointing the Public Trustee executor or trustee were deposited by testators, ’representing a substantial increase over the corresponding figure of 4502 for the previous year. The majority of the wills were prepared b.y the office. The number of wills withdrawn during the year through the death of testators or otherwise was 2241. At the close of the year there were 93.152 wills on deposit, showing a substantial increase of 2678 over the number at the beginning of the year, which itself constituted a record in the history of the office. . Steady progress has been made with the liquidation of the companies which are being wound up by the Public Trustee as liquidator in terms of the Companies (Special Liquidations) Act. 1934-35. The remaining assets of the principal company, the Investment Executive Trust of New Zealand, Limited, have been sold, and as a result the Public Trustee lias been able to pay :i further dividend to debentureholders. Since the commencement of the liquidation eight dividends, amounting to 12s in the pound, have been paid to debenture-holders, involving a distribution of a sum of over £300.000. There are several outstanding matters requiring attention before the company can be finally wound up, the most important being a settlement in respect of certain transactions in New South Wales. It is anticipated that there will be a final dividend in the vicinity of 4d in the pound, but ns it is necessary to uvait the receipt of certain funds

;, rom New South Wales, it is likely to be a considerable time before this dividend can be paid and the liquidation completed. The liquidation of the Sterling Investments Company (N.Z.), Limited, is also well advanced, and further dividends have been paid, bill ait it is a holder of debentures in the Investment Executive Trust of New Zealand, Limited, the completion of the liquidation is dependent on the receipt of a final dividend from that company.

Demand JFor Loans

Towards the end ot the year the demand for loans Increased substantially, and many first-class securities were forthcoming for the investment of available funds. A noticeable feature of recent applications has been the desire on the part of farmers, businessmen and others to replace "on demand” liabilities with loans for fixed terms secured by mortgages of land.

The growing popularity of flats as dwellings in the large centres has resulted in an increasing number of applications for loans on buildings designed for this class of residence, and loans to a considerable number have been granted on securities of this nature. As a rule, the loans have been placed on a table basis, to ensure that full provision is made for any decline in value of the security through depreciation of the building or easing of the demand for accommodation of this type. The loans on these and other urban securities were slightly in excess of loans on farms. It is pleasing to report that the improvement in the position of the Thames 'Borough mentioned in the last report is being maintained There is very indication that the present negotiations for the voluntary conversion of tiie borough's indebtedness, at a rate of interest and ori terms which will be acceptable to the debentureholders and at the same time afford relief to Ihe borough, will be brought to a successful conclusion, and that it will not be necessary for the Government to set up the proposed commission of inquiry to investigate the affairs of the borough.

Malakaoa County Affairs The control by a commissioner of the affairs of the Matakaoa County continues to give satisfactory results. The investments comnleted during flic year totalled £1,794, which represents an increase of £327.190 on the corresponding figure for the previous year. The total investments completed by the ofllee and still held at March, fill 1939, inclusive of special investments on behalf of estates and funds, amounted to £37,054.012, which represents an increase of £870,305 compared with those held at March 81, 1938. These figures arc exclusive of 1 iio.se investments which comprise assets of estates at the time they came under the Public Trustee’s administration and which are still held as assets of those estates.

Year £ 191!) . . 19,242,347 24,237 1929 . . 48,334.790 62.841 1939 . . 61.715,713 93,152