A PROTEST

Hokitika Guardian, 17 June 1929, Page 5

A PROTEST

AT POWERS ,OF PUBLIC TRUST OFFICE.

UNFAIR COMPETITION ENCOURi AGED.

DUNEDIN, June 14.

State competition in business, and notably the operations of the Public Trust Office, were referred to by Sir George Fenwick to-day in the course of his address to shareholders in the Perpetual Trustees Company. It was in order to meet this growing encroachment upon private enterprise, he said, that the 1928 Committee had come into being. “Government trading Departments,” Sir George said, “have advantages which are not enjoyed by trade rivals, and in this connection I might say in regard to this company’s class of business that the Public Trust Office has obtained by special legislation many privileges and advantages which amount to unfair State competition, and which place trustee companies and private trustees at a distinct disadvantage. The effect of this special legislation is to place the Public Trust Office, in a unique position—a position that is actually outside the jurisdiction of the Courts of the land in many matters relating to the administration and realisation of deceased estates. The amount of special legislation which has been enacted in favour of the Public Trust Office is truly amazing. The granting of special privileges for that office appears to be the only object for the enactment, of this unique legislation. “If,” continued Sir George, “the reason for making concessions to the Public Trust Office is that jit is a State office, such a reason implies that no other trustee could be relied upon not to abuse the privileges given. Such an implication would be an unwarranted and gross reflection upon the standing and reputation of such old-established and successful

trustee companies as those carrying on business in the Dominion. The

late Mr Justice Salmond, when referring to this special legislation, remarked upon the astounding fact that a will in the hands of the Public Trust Office may hear a different interpretation from what it would in the hands of any other trustee in the Empire! There appears to me to be no adequate reason why trustee companies established by Act of Parlia-

ment and authorised to undertake the work of executor, trustee, committee, etc., should not have granted to thorn many of the powers given to the Public Trust Office. We do not, however, ask for, nor do we desire to have granted to us, the distinctly arbitrary powers granted to the Public Trustee during recent years by means of special legislation.”