PUBLIC TRUST REPORT.

Hokitika Guardian, 1 October 1924, Page 4

PUBLIC TRUST REPORT.

SOAIK KXCKit l"l»S. The growth of Ini-.illoss during tlie year has 1, <_• i• 11 wo 11 maintained, 2.739 uslal.es. ol a total value of £11,781,100. having betel accepted lor administration. On the Hist. .March. 1921. there Hero 19.537 estates and I'iimls under administration, the value homo £.32,101,721. For the third year in succession the increase ol business has ex- < ceded LH.IKM.IiPtI.

Notwithstanding tin* larce increase of business during the jiast year, the working-expenses are only slightly in excess of those lor the previous year. The expenditure for the years 1919-25 Pi 1923-21 under all headings, excluding depreciation. was as follows:

l!t 19-20. CI .59. 113; 1921. £229,193; 1921-22. £292.197; 1922-23. LI 78.7.07: 192.3-21, L 189.913. The total revenue amounted to £257.923. as compared with £2-19.092 for the previous year. This re-lilted in the earning of a profit of £95,.312. as c unpared with L 58.700 for the preceding year. This profit has been made alter providing for all the expenditure which an ordinary commercial undertaking would have to meet, including the payment of income-tax and allowivuce of depreciation on plant and buildings, 'rile profits for tlie past live years have been: l <)•_>(>. £78.219; 1921. £10.991: 1922. £11.053 -1923. £58.703; 1921. £95.512. The Public Trustee has been ill a position to materially assist in the development of the country by providing fun.ls for advanie on mortgage to farmers and others, and for loans to

local bodies for works of public utility During the year the new money advaiii ed rene!ied the considerable total u £2.19.8.185. Of this large sum LI. •122.870 was advanced by wav of mold gage, rhiellv on country securities, am £138.715 was invested in loeal-b nly dc dentures.

The :i moil lit inerted as al the 31st March. 1921. lei- ren. lied a total o L 19,895.285. of which £12.997.212 ha been lent to private lairteilgors am L 5.979.135 to local bodies. The.-, figures indicate the large part th (Hike has played in the developieen of the Dominion.

Special attention bn- been paid by the Public Trustee to the eolirrl ion ol interest on mortgages, as it. is from

these proceeds that the necessarv liimi arc tome! to protitle the intere-a o moneys held for henelit iaries in estate nmler administration by the I’libli Trustee. At the same time ill- n ifoi

tunale ] isititin in which many farmiu mortgagors have I'ouml themselves In b'vn fullv appret inled. and the Pub!

Trustee lias all'ol'de'd every < e.iicessioi possible to mortgagors who have bee in 1 1 i Hie ■■ I ties in meeting their inter,>sl

The ph .nil polit y adopted hv the Olliee has been greatly anoreeialeil bv mortgagors, end has enabled many of (belli to retain their proper! ies which they would have been compelled to re-lill<lu!.-)i if a more exacting policy bad been adopted. The smaller numb -r of cases in which securities fur Olliee advances have bad ta be taken over bv the Public Trust and realized at a less is a tribute to the care which Inis heni exercised in making the investments ol the Olliee. The number of wills deposited with tlie Public Trustee for safe custody eontiulies to increase at a rapid rate. During the year 5.997 additional wills were received, making the total on deposit as al the 3|sl. March. 192-1. 39 - 982. Many wills in which the Public Trustee is named as executor ale also held bv banks ami private solicitors. C’onski:y.\tm>\ of tkfst KSTATFS. The coiiserval ii/i of trust e-Intes is a subject whrili Inis excited considerable interest in the Foiled States of America in recent years, and special attention t , ibis phase of administration «ml, lias recent l\ been given •; i magazines devote I to I nrd administration work. It ha - I'o n found that nianv will, are made wherein I lie testators. in making provisions for t'■ ■• r family or other benefit iarie-. have I it taken iato account the necessary deductions which v.PI take place when she estate-; conie under administration. Debts existing; at the time of the testator’- death, and the payment of e.-lnte duly and iolmioi tr.iiou : !•:••■■■• Icilnie lie- amoiiol 'Mailable |or or II I I'll I |o',| 111 I ill 10 i' Willi ill" I i . lalor’s wishes. These i I "ins are, h:w - I'Vi-r, calculable and ran la pr ni. e for, bill there is I loopiently lurlher additional serious dimiuill 101 lof Ibe e- - late assets resiilliiig from litigation or ineonipeleiiL admin i.-t niton by inexperienced executors and trustees. No slati.ti.es are aavilabte mi the tp:"slion of depreeiation due to losses uia <lt - by inilividua lexi colors tbruiigb speculation. neglect. etc., but It is well known tliui< -mb In—e, are very inn--i lei aide.

U ill'll' I 111 1 estate is sliiall mill llie assets lllllsl llcics>.irily lie divided 11 1 1 11! 1 1111 ■ 111:1 1 ■i . Mine t lie imome il lielil would mil lie Mlliieieht tn suppull tlie ile|iei!il:i"ils of the lestat.ir, liie ris|; nl (le|il'ee:al lull is negligible. It i.s in ulial is Known as the "trust estate" ail estat.' in which the a'M'ts ate tied tip mer lime pet intis within the limit ;i I - limed I:V the lit" I hill tile must serious danger of depreeiatio.l e.\i-ts. generally .-peaking, the risk is very in ill'll I'liereased when a privaie person is in tin" as trustee, nail this danger is one uf the elements ttliieli liave operated. ami are increasingly updating. to replate private e.\e« illol's l.y enrporale trustees possessing a greater i.lenient

of perma lienee. Tile three chief iilisati.sfaetiii'y lealiiiv. u liii li have lie 1 i revealed in a.i- ---■ 11 i 11 i.st■*; 1 1 i ll l■ liy piivale iiidividmils. anil tt liieli have led to the increasing report to corporate trutees, are : - (I) 'llie serious depreciation ill the estate Iliads as the result t.f in-

expeiienee, carelessness, or incapacity of the private trustee. ("f'-Tlie unsatisfactory nature ol the accounts kept bv many private trutees, so that the position of the estate at any time cannot lie readily determined. (.Ml -The intermingling ol estate funds and private funds, w liieli is not. imriimiiinii. and which has led to most unsatisfactory results from the p li’.it of view ol I he estates.

Tlie.se feat ares are cxeri i>ilig tut important iiilltieaee in inducing tostatnrs to appoint, a corporate trustee as executor and trustee of their wills, ami arc also iiillticueiu;' l.eliolieimies aeul oilier interested parties in havng a torpora.te tt.rusi'ro appointed to replace pritivte trustees whose inlminislratinn mtiv have been unsatisfactory.

Some very large estal.es in the I'nited States of Ameriia. the assets ol which were seriously reduced as the result of imiimpidtxut administration or excessive litijj.ition under private executors. have in recent years heen transferreil to corporate trustees for administration.

There lias Iteetl a steady demand for money during the greater part of the year, ami new investments were made totalling £’J.l!)B,lß.j I'l . !-’f!.S7tl in

mortgages, £.'!:10,d71) in (iovernmelit sceurities, and £lHß,7dd in local hiulies' debentures—making a total amount in vexed eft the Mist. March, 1!)lM. of £l!),S!l.V_'Sj—double the innolllit of the iiivestinonts live years ago. The amount is invested as follows:--Mortgages .. Clti.l*!*7.i? t Local hodies' debentures o,07!l. I.Md (iovernment delionturcs ... 1 ~M(i I.A I.M Land Settlement Finance Act (Iclh'llt Hies ... do.lilts Fixed deposits ... 7.l'tit-’ Debentures and shares ... -IdUM Overdrafts by way of advances to estates and beneficiaries ... .Ml-VJOM I’roperties aciiirqcd by foreclosure ... 71.1 -oO f19.8D0.255 Other assets held as at that (late were: —Cash in hand, at hank, or on deposit, L’GO-1.-li.j. and ollice premises, furniture, and plant, £,M7t).S-IL

Adivsorv Trustees—Another way in which tlie usefulness of the Ofliee has been enlarged of late years is the passing of the necessary legislative authority to enable tlie appointment of advisory trustees to co-operate with tlie Public Trustee in the administration of an estate. A testator with a large estate, or having a complicated busi-

ness, often feels desirous of associating with the Public Trustee in the administration the family solieitor. a friend, or some other person in whose judgment lie has confidence. To this way the testator can safeguard bis estate in a double sense. All the advantages of the Public Trust Office administration are available to the estate, and at the same time the special knowledge or ability if the persons appointed ns advisory trustees is taken advantage of in the administration. Advisory trustees may be appointed by a testator when making his will, or by a settler when creating a trust, or by order of the Court made on the application ol any beneficiary or any other person entitled to apply for tlie appointment of a new trustee. They may also be appointed by persons having power to appoint a new trustee. According to seotio i I of tlie Public Trust Office Amendment Act. 1913. when the Public Trustee acts with advisory trustees the trust, property vests in him. whilst lie lias all the powers of a sole trustee, and tlie advisory trustees are entitled to tender their advice on any of these matters relating to these matters. ’I be experience ol this provision has shown that! the plan of eonsultatiifi and cooperation has worked smoothly and efficiently, and lias greatly assisted the administration of many complicated estates.

It is unusual to liavt; any difference of opinion that eairnot lie satisfactorily settled by friendly conference. If, however, such a consultation f='il*. the statute provides an easy means of adjust ini* the difference— bv reference to a .lodge in Chambers, who bears the matter in private, atul whose order, which is binding on both parties, is final.

Th the administration of estates it. lias been found that the Dentil Du-ti-s Act 1921. presents difficulties in the interpretation of its provisions, and in deciding the incidence of death and succession duties. As an instance, there nopeur* to be conflict between section l'3. which provides for an exemption in certain vase- to the widow of the deceased. end section 31. which provides that e-tale duty shall be payable out ol the property compris'd in curb sucees-ion "> proportion to the aggregate value of

all the successions. It is considered that ativ doubt •hut inav arise on this point should be dis,||,'i| by an amendment of the Act. _ Another point, that seems to merit reconsideration is that relating to the pavnient of death duties on gifts made wit bill three years preceding a testator’s death. This duty is payable by the donee, and it seems bard that long after the gift has h-eil made the donee should be called upon to pav it. The person primarily liable for the duty is lb., donor, and it is scarely likely that i„ making the gill he would cuntoniit- subsequent diminution, slioutu lie di" within three years, by the payment of additional duty. The more probable intention is that any additional duty should he paid out ol Ins estate. „ . \ still further soune of inconvenh'llro and hardship is the liability Ini’ the ininiediake payment ol dentil duly on a-'i'ts consisting of future interests. V henclicinrv may be called upon t» pav duty on assets from winch lie will never derive any benefit. Indeed. »> the inclusion of such assets in ibe dutiable estate t.’ie dutv on those assets from which be will derive a lonelit mnv be materially in-reused. Such a condition might, arise in the ease of a testator having in addition to his own estate an interest in tlie reversion of bis father’s: and. indeed, it is possible in certain eirelllil-tailees lor a testator's estate to bo used up wholly in the payment of duty assessed by blown beneficiaries beyond such amounts as might l.e raised on the reversionary interest.

ALL AUSTRALIA USES REXONA. Nrvrr m il:i\ hm>>.-m Imt tli;il KfXOiia S-,..,' ;| Mill !mt liilll ii | ill liver thM.'* 1 i-i* , i*im■ ihimMi'i- "1 III" I ...... |*Ymcmmi , l*ini|ilfi, Uni")-. ,'|. Liltlllrll. *ll 111 llln'll ■ mmt imm. Tin- ilmimi v lit 11" t fi:itij-.uliti" i.nl i, | |(i•\i mi ii. i !i** ItiH’i'l ll*' ;, l'* 1 ’ '’l* ll ' tj,iM- 1' r. Mll.illilliiill nl 'III' H'"' l live. :>:.li .•jilir. wmlliiM;! :■ m! ln-nltnjS pii,|nTlii-S Ulln-.VM 111 srii'lltv. Rmx.imm i-- till' .Skin lii-imnly nl' lln\m,.. lii’cmmmm it ilcslinys tin- Imiiimlml ...clii’is iliiit limy In' iiri-split in a Min', I-! Ml |>!|-. IT MIIV mIiIMMiiII 1)1 till’ J-kill. |I|M S lll.Ml’MliM;: HIM I 1 111 MM. il 111 Ml tilll.'li’c l Mini Ml ill

me lime laime-i o ".mu. R*'xo I la* i t»ll:i in si i:* I i

a iii I pain; it act- as a 1 1 1 st I net -. llin 11 bull |o the pules of the skin, and sets up a healing act ion immediately that increases day by day. Ibid leg sores that have resisted i.iiirv other treatment sueetimh almost i m mod ia Icl v to it- wonderful iulhieiiee. while fur Plies l here is nothing its eijiial. Rexona, the Rapid lleah'l*. sold c.nlv in Triangular Pols, at Is Od ami :t>. Olitiiimdiie every u here. RAILWAYS POLICY. - ■iin*; .mid‘Land link. ( i Mil.-IT iHTtCII Nept. .til. Points from the Railways Statement, regarding the tut lire pioli.y of the I )ej ailment in legaid in iarilf. V. it It pat I ieiila r re teleli e to the tltira line, and haekloa sing late, were discussed i.i.v the Coinu il o| the Cantorliery Chamber c.f Commerce last night. "I ne president (Mr Stromudi l’titc rsiii). alt.r leading lengthy corre-

the Minister ami him-elf. said he desired to draw altoatioa to the policy as set out in the lia.lwnys Statement, •a- In lefeiiiiig to the (itira tunnel the cl- .Minister had given an analysis of the ml tunnel Ira flic by itself, .showing that. "*• it had made a loss and seemed likely I t.. go on making a hiss. The .Minister li.nl been eatefid to sav that lie was m- . : , _ going to adopt competitive rales where advantageim.s. lull the general llimtof tiger had made the following ntate--1- meat : '!• It is estimated that the los.s oil 11(1 working dining the ensuing years will ( he not less than £7(1.1.00 per annum. ( .p Wlii'e, the: el re, it liillst be reuogni.sel that the upcl.ing of the Liinnel mid •e- the tonne, ling of the Last and West of Coast railway systems Ixis a very im- | ..riant hearing on the eennoniie and vial life of the i ''immunity, it is a- eipially apjareiit that these inlvanlas ages are I eing gained at the expense "1 if the linantial inte.ests of the Pailwav Depai Intent.

Of all tile astounding statements ever mack' by a general manager of railways that was the most astounding. Tho General Malinger admitted that there was a loss; he had not suggested that business eould be improweod. hut led to the belief that a lo.ss of C 70.000 must be faecd for so many years to come in .spite of the fact that the Chamber of Commerce and other bodies had been trying to show him limv that loss could he minimised. .Mr 11. .T. Morriner said that before the tunnel was opened he had been instructed to find out from "West Coast importers what class of goods they required, and to suggest that imports should lie shipped through Port Lyttelton ami 11 10 Midland line. He sent three or four letters to the Department regarding freights, Imt lie had not received an answer, except one letter staling that the 1 rates were not prepared. The result was that very little goods were shipped through Lyttelton. If the Department had been keen to get freight and given the information required, there was not the slightest doubt that a good deal o' that dofnien.-.v would have to lie wiped

The president said that ii was not the policy of the Department to give these figures. Application had been ma le by the Progress League' to the General Manager for detailed figures coin c'i niug the Christcdiurvh-Lyttelton line, 'flic* Prog-ess League wanted ta demonstrate that the* Christchiirehl.vtleltein line was a little goldmine

for the Deparlfnent. This informatioi was not forthcoming. A\ bile the Gen c-ral Manager could t ike out a set o

misleading figures. In* could not take out a set of figure's to let Canterbury know what the province was contributing throiie.li (lie port line. Other mailers of interest in the* "Railways Statement were* the Minister's intimatii ti of l : c intention to stimulate business, cspeiiallv his statement that ■.■lastieit.v in the matter of tariiT was essential a r.d tie* wonders cold 1 c ongratulnlo thoms:"lvc*s on having the p i!i:y of (lie elm till very largely outlined in tb< staioivc.iit of the* Minister.

'flic president was authorised In write ta the* Mini-ler congratulating h':n on Pa* proposa’s made, and also drawing attention to tho matters referred to by tho | resident.

REXONfI. KINO OF ALL OINTMENTS.

Rexona i> the fatuous Rapid Tfealei lor Hums. Scalds. Ki nut ions and l* riIntii.ns , ( f (be Skin. Fozeinn. Pimples. Seres, Sciatica. Gills, Hruisos, Had fees. Stings of liisoets and all kinds of iiiilanimatioii. Rexona, tin* Rapid Healer. Is (id and .‘ls. Obtainable every wire* re*. WRECK OF THE OROWAITJ S'l R.WDKIi HI RING LOG. r.Ysro KSSI'TL HP Ft) RTS AT RF FLOAT INC. WKi.I.l NG'fON. September d!>. In thick log and with a slight .s.vcll coining ill from the sea. the oil-tanker. Orowaiti, en route from Wellington to Port S'an Louis Obispo. California, .struck on rn di-kniiml Point Sal, afoul eighteen miles south -if her destination, at 7..‘id o'clock on the night of August I'd. Details uf the loss of the vessel were obtained on the Tahiti's return to Port lbi> morning. Fog had been ex|i*iemed for two nights previous to the disaster, but the weather hail keen laill.v "nail. Fog r.tm • up on ik* laleful 'l ues.lay night as In lute, and in a" "idam e v. it b (Im 1! aid o! Trade regulation log signals "ere Miliudi d. flu* f*i t wanting ol

danger cawe when. about 7.dd o'c lock, the* c*. Il l i f the .-in'll was la-arcl on the shi, 1 . and it wa.s iva'i-.ei! that land must l-e perilously near. The captain and mate "c:c on the In idj'i* at the lime, and full-s; c d astern was orden I immediate!'.-. It w;r; t"i late

la'\*.ever for sm h a move, and altheic ill- vessel was io.i making lull she stri'ek tin* rinks liiward with great deal of fnree. 'Pin* reversal . the engines again am! again had i ellei I. and it »as evident I hat 11 Ve.s.el tills lirnu.v W edged nil 11 links. 'ldle lit'eb; .its were then swill out .'lllll lileli'lis ili>niifil by the i-rev dlieie was tin sign ol panic, and it, lions We e till.ell III! with the gl'cntc' 11 ii 1 1 11 es.s and dispatch. In view of the sit mil ion and since

was not possible to gauge tlm point ; which the ship had striuk. S.O.S. si; mils were sent out lur a. time. The Ihe forward tanks weie sounded, an

were found In he making watei The pumps were started to get ill water out of the forward tanks, mi Xo 7 Laid; aft was Idled in an ondo; vmir to raise the how of the Orowaii .and allow her to slide oil' llie rin ks wit the assistance of the engines. Tins wa of no avail, however, and when il wa found that the ship remained on a fail ly even keel .and was not settling dow i the S.O.K. calls were discontinue! Ilelp would soon have been forllmiii iag had it been required, for liter

were two vessels within easy steaming dislaiee. only fifteen miles away. A wireless message was then sent to tibe I'nion Company’;: agents in San Francisco. acquainting them of the position, ami later a salvage vessel arrived mid stand by. Moorings wore then put out to sea, and on August 18 the first attempt tit pulling the vessel off v.a.s made, the combined power of thioe salvage vessels being used without result. Thetoaftor efforts to get the flrowaiti clear were made repeatedly. hut without success. On the eighteenth day after striking, when a filial pull was made, the main engines begun to shift .and .accordingly steam was shut off and the engineroom closed. The plates down below were hackling, mnl the trinity was unsafe for the engineers. Then and not till then were salvage operations discontinued, and on the following day all the crew, with the exception of Mr Smith, second mate, who remained on hoard to look after tilings, were transferred to one of the salvage boats mid were taken to Salt Francisco. Captain lirow n, of the I ndent l iters’ Association of America, who was in charge ol the salvage operations, decided that further attempts would he useless, and the vessels left the wreck as a total loss September !)th.

Together with Captain Smith, master of the Orowaiti. t-weiity-two New Zealanders, memlter.s of the crew, arrived by the Taliiti. and the remainder, comprising about nine men. returned to their homes in Knglmid. In spite of the risks attendant upon salvage operations there were no casualties during the time the vessel was on the rocks, and the New Zealand men arrived here fit and well. ‘'There was really no danger for u.s," said one of the new this morning. ‘AVe were forced to hunk aft. hut found it impossible In gel to sleep., ow ing to the pounding of tlie vessel on the rocks. Tt was remarkable that we j were changing watch and the deep-sea lead was being taken just before tlie ship stun k. The boats were swung out and wo grabbed lifebelts immediately, but the greatest attention was paid to orders, and there was no

panic. Later it was found that there "as a rock aft, two amidships and one forward, and the hull was punctured in several places. Tlie weather after the stranding was good, except for a couple of times when a heavy swell came in but it was impossible to land, owing to the surf on shore. AA’e wore not sorry when we transferred to a tug with our gear and left for San Fran- I cisco,” I

A photograph of the vessel taken from tlie shore hy :m American newspaper man some time after the stranding shows licr well in to shore and very high up on the rocks. It is stated that it is known that a current runs to the south-east- in the vicinity, and the disaster is attributed to this cause, combined with the heavy fog which was ruling at the time. 'I he Orowaiti »m returning to San kuis to load oil again for Wellington, under the auspices of the I’nion Company, and was very light in consequence. so that she ran well up on to the rocks.