PUBLIC TRUST OFFICE

Hokitika Guardian, 31 May 1924, Page 3

PUBLIC TRUST OFFICE

report for the year

WELLINGTON, May

A repent by the Prime .Minister, as M i.'ii-ter of Finance, on the working of the Public Trust (Hike for the year ended .March 31. li/2!, states that the J,regress of the office was well maintained. ami that the year constitutes .1 record ill every respect.

The value nt the testate’s funds under administration on March 31. 102-1, was <.'32.1(11.721. compared with Lgs.ool,7i!B on Mni'ch 31, 1023, an increase of 23,100.b2ii. The eontiinnnn* rapid growth of the office was shown in the fact that seven years the v.d..? bad been doubled, while in ci-vct: years it had been trebled. I'or three successive veal's tlie increase exceeded .(..i.mrd.onn.

During the year 2730 new estates were retxirtetl aciopted. <>t a to’al value <.f £.'3.781,155. Administrate m of -I7S of these estates was eompo-red within the year under review. The liuniber of all estates tlos.sl was 2052. Following upon the successful result of working for the preceding yet r . the rates of commission were reduced from April 1. 1023, while certain fees previously charged to estates were discontinued so as to make the com mission inclusive of all administration charges. There is no doubt that this has had the effect of increasing business largely, as shown in the number and value of the new estates. ‘Tt fs gratifying,’' said Afp Massey.

"to be able to report an increase in the proportion of large estates. Many of them possessing assets of great value are now under administraln.i throughout New Zealand. A unmoor of estates of this class were among those accepted during the year just ended, and wills deposited show ibat the administration of others of si."t greater value will lie handled in !•.- ture.” The number of wills deposited for safe custody by living testators continues to increase very largely, as shown by the number of new wills deposited, 3097. The number is being added to b.v front -100 to 300 wills a month. The total hold on March 31 last was 39.0,82. This does not include wills held on deposit outside the office, appointing tlie Public Trustee executor. In the last ten years the number ol wills held by the office has been increased more than sixfold. This may lie regarded as evidence of the increasing confidence of the public in the administration of the office. During the year new investments were made amounting to 22,198,183 — 21,122,870 in mortgages, 2330,370 in Government securities and 2138,7-13 in local bodies' debentures, making a

total amount invested on March 31 last of 210,893,283. double the amount of the investment five years ago. The net profits for the year are 203,312 7s. as compared with 238,700 for the preceding year, a result that may he regarded as most satisfactory when it is considered that the office lias been laced with difficulties that have been experienced by all financial institutions during the last few years in the management of mortgage securities.

For the years ended .March 31, 1921 and 1922, the profits were respectively 210.091 and 211.033. For several years preceding 1021 the profits made by the ollice had been shared with its clients hv payment of bonuses in addition to interest, credited to estates in the ordinary course. On April 1, 1920, the rates of interest were raised and the amount of bonus was merged in the increased rates. Apart from this actual increase in rates, the system of crediting interest was made more lavoiirahle to the estates. It is estimated that the value of these concession.- during the years 1921 and 1922 wiis 297.300.

If is proposed to make furl her concessions to clients of the office, and proposals to that end are now being considered. Every regard has been

given to economical management, and it will he seen from the accounts that notwithstanding the very large volume of new business handled during (lie year, expenses j how a very slight increase over those' of the previous year. Actual working expenses for the last four ypars. excluding depreciation, which has hccti ii*cr«*»sc<l annually hv reason of gradual acquisition of additional premises, have been as follows: 1921, 2220,101 ; 1922, 2202.137: 1923, 2178,71)7; 1921. 2180.(M3. Economics that have been effected have helped to make possible the granting ot concessions to clients. Every endeavour is being made to carry out the policy still further.

'For continuation of newt, g'>e fourth page).