PROCURATION FEES.

Shannon News, 28 November 1924, Page 3

PROCURATION FEES.

QUESTIONS ASKED CONCERNING . PUBUC TRUST LOANS.

PREMIER REFL.IE.S.

Recently a set of questions affecting the Public .Trust Office w.as put to Due Prune Minister. Mr Massey has considered the. questions and amiounceu uis answers*

Tne questions w,ere:— (1). Whether he is aware that matiy solicitors and other persons putting in applications tq the Public Trust Oiflce for loans on behalf of clients charge a procuration fee for obtaining a loan?

(i). Whether ihe will take steps to stop the practice, see that under the Public Trust Office. Amendment' Act, lifcl-32, it was made illegal? (3. Whether arrangements oofuld not, be made for applicants for loans to have their applicaitons prepared by an agent of the Public Trustee, or in any office of the Public Trus.tee, and their securities prepared by the Public Trust Office?

(4). Whether fie" will take steps to limiti,tlie solicitors' costs; in connection Ayith these loans, tq. the proper legal charges for preparing- new securities, and have the. system of charging procuration fees stopped, thereby relieving tfie farming community and others of this unnecessary burden?

Mr Massey's. answers are;—- • (1). The Government is not aware that any solicitors or other,- ' "persons putting in applications to the Public. Trust Office for loans on behalf of clients are charging procuration lees for obtaining the loans. The. Government was under the impression that the practice, ihad been discontinued, especially since the. recent remarks of a judge of the ' Supreme. Court in Auckland condemning the practice generally. (S) Having by section " 100 of the Public .Trust Office. Amendment Act, 1921-2&, made the. practice illegal, the Government will take all. possible steps to deal' with any cases which are brought under notice. (3). In any case where an applicant submits an application for a loan to a branch of the Public Trust Office without intervention of any solicitor the application is prepared by the office, and if no solicitor is nominated for the purpose the security is prepared by the Public Trust Office. In the circumstances, it does not appear that any further arrangements are required to be made in the direction of having securities prepared by the Public Trustee.

(4). With regard to the. limitation of solicitors' costs to the proper legal charges, the. Public Trustee does not wish to. interfere between clients 'and their solicitors, 'but if any cases are brought under notice. qf procuration fees having been charged the PublLc Trustee, will take all necessary action to obtain a, refund' on behalf ol the client against whom the fees have been charged. Tke Public Trustee states tfiat he. had endeavoured to eliminate the. necessity for solicitors charging procuration fees by allowing practitioners submitting loans, a l air rate of remuneration for the prepara* i tion of the necessary securities. Solicitors are allowed/to charge according to the recognised scale prescribed by the. Law Society, for such work. Moreover, a solicitor in furnishing his certificate is required to certify tnat he has made no charge beyond that prescribed by such scale. The. Public Trustee feels that he has. done, all he can legitimately, do to stop the practice complained Of; but, as already stated, if any cases are brought under his notice he will take the necessary action. But s.o long as solicitors observe the. recognised practice and act fairly towards their clients the •Public Trustee does not desire.to disturb the (relations existing between them and their clients with the object of diverting work to the Public Trust Office. ? ■ (5). It may be taken, therefore, that the practice" of' charging procuration fees is by no means a general one, but there may be isolated cases, and it is considered .that everything possible has been done in the matter by (a) the. passing of legislation making the practice" of charging such fees illegal, (b) by the Public Trustee allowing a solicitor action on behali of a client a fair and proper charge for the preparation of legal documents, and \c) by the Public Trustee requiring s ueh! solicitor to certify in his certificate as to the amount of costs fie. is ciiarging his. client.