THE PUBLIC TRUST.

Hutt News, Volume 3, Issue 4, 19 June 1930, Page 11

THE PUBLIC TRUST.

ANOTHEB RECORD YEAR. NEW BUSINESS OVER EIGHT

MILLIONS,

REGULAR GROWTH

The Prime Minister (the Hon. G. W. IFoubes) made available last week for some interesting figures -alLawing the results of the operations -of the Public Trust Office for the year -«nded 31at March, 1930. In doing .bo? Mr. Forbes referred to the forecast contained in a statement issued by his .predecessor in office in July, 1929,"t0' thg. eiect that tihe value of new busiiilijLi*btained by the office during the ye!Kpl)29-30 might possibly reach the ium of £8,000,000, and added that this forecast -had been more than, justified, the new business for the year now under review having readied the unprecedented total, of £8,473,916, as compared with the totaL. new business of £7,091,350 for. the. preceding year, which itself constituted a record. As exemplifying the remarkable and growth of the office, the following list, which shows tihe value of jx&w business in each of the past five years is of interest: 1925, £4,621,869; 1926, £4,651,447; 1927, £5,551,019; 1928, -£6,511,928; 1929, £7,091,350; 1930, , £8,473,916': As evidencing the rapid development -of the office, it is interesting to" note -that the new business obtained during the year just closed exceeded by over .£1,000,000 the total va'lue_ of assets arid _ funds under administration by the Public Trustee in the year 1910, which represented the accumulation of tfhdrty- . eight years' operations by the office. T-he figures for the month of March, 1930, were a , still more striking illustration of the present-day growth of . . the offiice. During the month aflone the *.new business amounted to £1,159,309, which was almost equal to the total value of estates and funds under ad- . ministration" by the office in 1892, aftefc .: twenty years of existence. ESTATES AND FUNDS UNDER ; ADMINISTRATION. On the-. Ist April, 1929, the value of .estates and funds under administration iby the Public "Trustee amounted to .£48,334,790. By the 31st March 1930, .the total value of assets and funds under administration had risen to £53,----049,437, representing an increase for .We teeeond year in succession of more i;fcan £4,000,000 in the value of estates .;-and funds. The difference between the value of -the new business accepted and.the net. -increase for the year in the value of estates and funds under administration is accounted for by the realisation of c assets and the distribution of t&e. prqceeds, and by the transfer of assets to those entitled, the office possessing special facilities for the prompt and efficient administration of the estates entrusted to. it. As a--result of the organisation which -ias been evolved vthrough long years of experience, the office is in an exceptional position to realise -assets to the best advantage Tijvhere such realisation is necessary or is . desired by the beneficiaries. It is tie practice of the Public Trustee to consult freely with, beneficiaries and those eartitled before disposing of assets in e&tates, and in cases where the conditions are unfavourable for, or the bene-_-ficiaries do not desire, realisation, the .-office has special facilities for financing .-estates in order that realisation may Vibe postponed to a more opportune time. _AnyitMng in the nature of a sacrifice - •of the assets is thus avoided. The following figures, which were By the Prime Minister, reveal the exceptional and uninterrupted, .growth. Which has marked the operations of the office over the past thirty years. In 1900 the value of estates under \adkanistration was £2,192,594; in 1905 itt^&s £3,577,355; in 1910, £7,358,947; Sril&SS £13,580,936; in 1920, £20,860,686; in 1925, £35,570,642; and in 1930 £53,----<)49,437. PROOF OP CONFIDENCE. No more convincing proof, added the [Prime Minister, could be given of the. «stent to which the office Jiad succeeded in winning and the confiddence and trust of all sections of the community in its work of administering -estates and in the discharge of the other iiduciary duties entrusted to it. Tihet the confidence and good-will thus built aip over a long period of years would 'be

fully maintained and developed in the. future, is guaranteed by the fact that the total number of wills held by the Public Trustee in safe custody on behalf of living persons at tihe 31st MarcQu last was no less than 68,253, representing estates of a present estimated valueof £273,000,000 whilst new .wMs are being added at the rate of more than 6000" a year. It is also known that many wills which nominate the Public Trustee as executor and trustee are held by solicitors, as well as by banks and similar" institutions, so that the amount of assured business which the office will "be called on to administer in the coming years can with confidence be said to be of v-ery~large volume.

A marked feature of the business for the past year -has been the extent to which testators have availed themselves of tike power of appointment. of advisory trustees to co-operate with the Public Trustee in the administration, of t&eir estates. TJndeT this system the testator is a>ble to avail himself of the long experience and special facilities of the Public Trust Office for tihe prompt and efficient administration of the estate and the safeguarding of the funds derived therefrom, and can at the same time associate with the Public Trustee in the management, a business associate, a fellowKfarmer1, family^,Solicitor", or other trusted person whose knowledge and advice will be of value in dealing with any s.pecial assets comprised in the estate, such as a _ business, farm, or .other venture, of with the general policy to be foliWed in the administration of the estate. The Public Trustee welcomes .tihie appointment of advisory trustees, and the system has /been found to work smoothly and with satisfaction to all parties-concerned,

POPULAK LENDING- INSTITUTION. Turning to the other principal1 func-

tions of the office —namely, the advancing on mortgage of moneys derived from the estates under administration and not required fox immediate distribution., the. Prime Minister commented on the fact that the office has now become one of the principal sources to which borrows of all classes look for the meeting of. their financial needs. During the yeaT under review, as in previous years, the office has made money available to local bodies for works of public importance, to the

farming community for the acquisition and development of farm properties and foT the discharge of existing mortgages I thereon, to business men on the security of city blocks and premises, and to persons of all Kflasses for the erection !or acquisition of dwellings in the principal cities and towns* of the Dominion. New loans completed during t»he year amounted to a total of £4,216,590, Whilst ait thef 31st March last, loans granted but not paid, or offered but not accepted, totalled £760,1^1, and further applications to an amount of £591,654 were under consideration at", that date. A gratifying feature of the lending operations of the office is the increasing extent to which loans are, applied for and granted on the long term instalment system, tender which the cost to tfae borrowers is greatly reduced through the elimination of the recurring expense of valuation and tihe cost of mortgage documents, which axe necessary when renewals of the loan are Obtained at short periods. Moreover, t>he system provides an opportunity to the thrifty hoTrower to repay the loan by easy instalments over a. long term of years." The scale of charges for the 'preparation of mortgage documents, , which has always been on a moderate basis, was further reduced during tSte year under ■ review, the concessions ! made being specially marked in tihe ease df loans of moderate amount. —As a statutory provision prevents the charging of any procuration fee for arranging a loan from the Public Trust Office, the cost of obtaining finance from this source is very moderate. EXTENDING LOCAL EEPBESENTA- . - TION. For many years past, said Mr. Forbes, the policy had been aetiveiy-folio/wed ;of developing the losal representation of t>he Public Trustee in the principal cities and towns of the Dominion, in order that as much as possible of t!h« work of the office may be performed' in close proximity to the beneficiaries and to the principal assets' of the estates, whilst leaving in the hands of i>he Bublic Trustee the general control and direction of tihe work and the decisiqn of all questions of policy or- importance arising out of the administra-

tion of "the estates. This system, which has greatly. commended it*elf to -those who do business with the office, is constantly being extended, and during the past year the offices at Waipukurau and Hastings have been raised to District Public Trustee offices, thus affording additional! facilities to clients of the office in the Hawkes Bay district. Branches of the office under the con-| Irol of permanent officers on the staff i have been opened at Pahiatura, Dar- ! gaville, Taumaruniii, and W/estport," whexetihe work had hitherto been performed by non:permanent agents, rejniunerated by commission. Tihe establishment of full-time branches under the control of officers of the Depart anent will shortly be effected at Oamaru and Cambridge. An agency of the office has been established at Waverley, and it is anticipated that agents at other

towns will be appointed shortly.

The growth^ of business in the distracts has rendered necessary extensive additions to the office premises in a num)ber of towns, Most of these buildings were erected but a few years since, and it was then thought that ample provision had been made -for future requirements, but the development of the office has so far exceeded expectations that in many cases the accommodation 'had already become inadequate and extensive additions "were imperatively required. Early in the last financial year the new office built at Dime din was oeeupied,~and the improved accommodation provided has conduced to the comfort of the staff, the efficiency of the work, and the convenience of those who do business with.

the office. Tihe building has been planned on the.most modern lines, providing for tUue moat effective method' osf staff supervision and control, and has been the subject of favourable comment from all who^ have had the opportunity of seeing it.

Throughout the year, the Prime Minister added, every endeavour has been made to keep, the working expenses of the office at a: minimum, and the exceptional increase in the volumeT of business has not been accompanied by a corresponding increase* in working costs. Consequently, although, the full' effect of the concessions granted in previous years by way of increased rates of interest, reduction in commission, andabolition; of certain charges is now being, felt, it has been possible duximg the past year in addition to reducing the fees for the -preparation, renewal, ot rearranging of motgages, to give further valuaible concessions in the- form of ire-, duetionsin the scale rates of commission chargeable to estates. Each year for some time past this important matter has received very caTeful consideration. The present policy will be continued in the future, and, as circum--stances permit, further concessions be made to beneficiaries and otfcer ,clients of-the office.