THE PUBLIC TRUST

Hokitika Guardian, 10 June 1929, Page 2

THE PUBLIC TRUST

ANOTHER RECORD YEAR. BUSINESS INCREASES. NET PROFITS £29,467. The business transacted by the Public Triist Office during the year elided 31st March exceeded all previous records, according to an announcement by the Prime Minister (the Right Hon. Sir Joseph Ward) recently, giving details of the year’ operations. At the beginning of the year ( on Ist April, 1928), said Sir Joseph, the value of the setates under administration by the Public Trustee was £44,155,548, and on 3lst March' last affter allowing for the estates that had been closed during the year, it had increased to £48,334,790. In each of the two years preceding the one under review, the net increas in value had exceeded £3,000,000, but the present occasion was the first in the history of the office when a net increase of more than £4,000,000 had been recorded! This notable increase was accounted for by the great volume of new business reported during the year, estates representing a total value df £7,091,350 having been accepted for administration. This also was a record, representing the largest volume of new business that had ever been written on the books, and it afforded ample proof oif a growing desire to take advantage of the facilities which the Public Trust Office was able to' offer in the conduct of trust©? business. The difference between the value off the new estates accepted for administration and the net increase in the total value of estates under administration represented the value of the setates that had been wound up and distributed. With the special facilities of the Public Trust Office for handling largo numbers of estates it was possible for the Public Trustee, in those cases where the trusts under which estates were held and the beneficiaries desired it, to complete the administration and distribute the assets -with great dispatch. 'V . \ remark able gro wth .

As art indication of the remarkable "" growth of the Public Trust Office, it was pointed out that the new business for the year was greater than the total value of all the estates under administration less than twenty years ago. In fifteen years the value of the business had; been almost quadrupled. There had been a net increase of more thau £10,000,000 in three years. vSbme particulars of 'the growth In • th© value of the estates under administration for the past thirty years at five-year intervals were given by the Prime'Minister as follows: ft*- , • ~ ...hr ; • •\f Value off ■fce' • ' states;" ;■ '1899 V. £2,110,316 1904 3,152,882 1909 6,399,567 1914 12,282.883 1919 19,242,347 1924 32.404,724 1929 48,334,790 ij’tir Joseph Ward stated that it was in '-every way probable that • this increase. would be exceeded in the near ftfturCy'as the number of wills deposited in the office by living testators who had appointed the Public Trustee their executor had been constantly growing until the number held was over 63,000, representing assets of a present estimated value of £251,000,000. CONFIDENCE OF THE PUBLIC. As further wills were being deposited at the rate off from 500 to GOO every month and many others were known to be deposited elsewhere, it would.be seen that administration by the Public Trust Office bad the full j confidence of a very large section of the public, including all classes of the community. ic was now recognised that tlie Public Trust Office, with the security it afforded, its wide organisation, its V long experience in the administration of a!! classes cff estates, and its expert si a If, had many advantages to , offer, and increasing numbers of suc- \ .cessful professional and business men * were appointing the Public Trustee their executor. A feature off administration by the Public Trust Office, which made a strong appeal to testators, was the right in appointing the Public Trustee their executor to have an advisory trustee or trustees associated with him in the administration

of their estates. The system had worked admirably, and as it became more widely known testators were taking advantage of ifto a greater extent. The appointment of advisory trustees was welcomed by the Public Trustee. A WIDE FIELD. The Public Trust Office investment business is extensive, said Sir Joseph Ward, and the field of its operations covered the whole Dominion. Finan'Xf> *'-/cial assistance had been provided for local bodies to carry out works of •t* convenience and importance, yV'H'or farmers to acquire their holdings and undertake improvements ,for bus- ■{ *» ihdss, men to build city blocks, and for X town dwellers to provide their own homes. The advantages the office is able to 'offer in financing clients were beyond the' scope of private lenders, and in this respect the system of long term instalment mortgages under which repayment of the capita! was automatically provided for had been a notable success. Then, again, the charge for the completion of the documents had feeen fixed on » basis highly favourable

to borrowers, while a further protection of their interests was provided in making the charging of procuration fees illegal. The amount let by the office during the year, was £3,190,642, mostly consisting of advances to local bodies, farmers, business men, and town dwellers for the purpose of providing homes. EXTENSIONS TO SYSTEM. “ The organisation of the office,” said the Prime Minister, “ is Dominion wide, and the system of decentralisation of business continued to work successfully. The great growth of the business necessitates an early,, extension of the system, and steps arc now being taken in' that direction. Beneficiaries greatly appreciate the keeping of their accounts locally and the conduct of the administration of the estates in which they are interested by 7 District Public Trustees. They realise that their interests are carefully safeguarded by a systematic and thorough audit and review by inspectors responsible to the Public Trustee, and that all important steps in the adminstration of the estates are directed by the Public Trustee. “It has been necessary during the year to enlarge several of the branch offices to meet the requirements of a rapidly extending business, and this notwithstanding the policy in the past when erecting premises of making provision for future growth as far. as it is practicable to do so. In Dunedin, where tlie conditions had become unsatisfactory alike to clients and the staff, it has been necessary to buy a site and to erect a modern building to provide facilities for the proper conduct of the local business, which lias increased substantially in recent years.

“ Continued effort had been directed to economical management commensurate with complete service to beneficaries and the protection of their interests, and notwithstanding the great volume of now business which tho office handled during the year the ration of expenses had been kept at a low figure. THE YEAR’S PROFITS. The net profits for the year, said the Prime Minister, were £29,467, and in view of the extensive concessions made to clients in recent years, this could be regarded as satisfactory particularly when it was considered that the full effect of the most recent concessions had been felt in the vcai just closed. It was not the policy of the office to seek large profits, but as conditions permitted, to share with clients and beneficiaries of the estates under administration, the financial benefits accruing from a successful conduct of the business. It was necessary, of course, to set aside yearly contributions to the reserve funds to ensure the financial stability of the olfi.ee, and to protect the public funds from being called upon to meet any liability under the guarantee winch the State provided, but in each of the immediately preceding years it lias boon found practicable to make some

concession to clients and estates — many of them of a substantial nature. As far as conditions would permit, this would continue to bo the policy, and I tlieh Public Trustee anticipated that the increasing business would make furt’.'er concessions possible in the near iuturc.