PUBLIC TRUST'S RECORD YEAR

Shannon News, 12 October 1928, Page 3

PUBLIC TRUST'S RECORD YEAR

RAPID GROWTH OF BUSINESS. LARGE B.UMS TO ASSIST DEVELOPMENT. . The annual report of the Public Trustee, as presented to Parliament, reeen try came to hand, and gives an impressive review of the institution's activities. Following are some extracts from the Prime Minister's statement which prefaces the document: — 1. The new business reported for the year constitutes a record for the Office. During the year 3526 new estates of a total value of £6,511,928 were accepted ,fo.r administration as compared with 3,581 estates of a value of £5,551,01!) accepted, during the year preceding. This is/ the first occasion upon which the new business for any one year has exceeded £6,000,000. The value of estates and funds under administration on the 31st March, 1928, was £44,155,548, the corresponding figure for the previous year being £41,043,523. The following table affords an indication of the growth of the business conduct ed by the Office during the last thirtyfive years; the totals representing the value of estates and funds under administration.: —

The figures for the new business accepted during the past five years are impressive and are as follows: — Business.

which nearly equals the total value of estates and fun'ds under administration six years ago —i.e., as. at the 31st .March, 1922—when the value stood at £25,497,779. Slight Increase in Revenue.

The report explains that "the difference between the net increase in the value of estates and'funjds under administration and the value of new business for the year is to a large extent accounted for by expeditious administration and distribution.' The admin-, istration of 2312 estates and funds valued at £1,924,785 was completed during the year, and of these estates 581 had been reported for administration after March 31, 1927, a fact which testifies to the dispatch with which the office business is conducted," Realisations iii estates not yet completely administered account for the balance of, the difference mentioned. The total revenue during the year amounted to £275,544, a slight increase over that for the year preceding, while the expenditure, exclusive of salaries and depreciation, showed an increase of less than £2OO over that for the previous year,- despite the considerable increase in the volume of business conducted. Assisting Country's Development. "Office investments, which last year stood at £26,179,886, have now reached a total of £28,465,963," continues the report. "The volume of investments during the year has ben heavy, and, exclusive of those on behalf of estates the funds of which do not form part of the common fund, amounted to £3,605,524. These figures give evidence of the extent to which the Public Trust Office is assisting to meet the financial needs of all classes of borrowers throughout the Dominion, and the important pari; which is played by the office in assisting the development of the country by the provision of ample funds at a moderate rate of interest and on terms favourable to. borrowers. Some of the criticism which, is from time to time directed against the Public Trust Offic..' has implied that moneys coming into the hands of the Public Truste for investment are diverted from channels which are useful to the community, as a whole and are used in some way which is less advantageous to borrowers, but this idea is completely dispelled when it is realised that practically the whole of the funds coming into the hands of the Public Trustee for investment are immediately placed out in channels where they will assist the business community and the farming industry, besides rendering valuable assistance to smaller borrowers for the erection of homes. Apart from the new money invested, lenewals of existing mortgages were granted by the Public Trustee during the year to the extent of £1,714,612. The amount dealt with during the year either by way of renewal of loans on mortgage or grants of new loans on mortgage was thus the considerable total of £4,780,136." Reducing Indebtedness.

"An important feature in connection with the lending operations of the Public Trust Office, to which the Public Trustee has called atention is the increasing application of the. instalmentsystem to the office mortgages. The total loans approved under this system during the year amounted to £1,397,145, whilgt including the amounts granted on renewal of existing mortgages, the total sum. dealt witlr under the instalment system during the year was the large one of £2,050,678. The placing of a large portion of the indebtedness of borrowers on k reducing basis is most commendable, and should have a beneficial effect'bn the economic welfare and stability of the country in the next few years. Country Securities.

"Attention may also be directed to the valuable influence which the Public Trustee is exercising .in ensuring that

the country securities mortgaged to him are farmed in a satisfactory manner, through the insertion of requisite covenants in the mortgage deeds to secure this result. Another valuable feature is the constant and expert supervision which is exercised over mortgage securities, particularly, those in country districts. ■ , "The Public Tiuste also refers to the decentralisation of the investment work, thus completing the decentralised system which has been in process of development for some years past. lam assured that much of the success which has attended the operation of the Pubr lie Trust Office in recent years has been due to the 'localising' of the work in close relation to the . beneficiaries and •clients'of the office, and in proximity to the assets and securities which are under administration. It is abundantly clear from the information supplied by the Public Trustee in his report that the greatest care is exercised to see that "the maximum return is obtained on the investments of the office consistent with the security of the trust funds committed to him, and that every possible precaution is taken to avoid any loss of the funds invested." New Wills Deposited.

During the year additional wills numbering 5789 were deposited by testators with the Public Trustee for safe custody. The number now on deposit is 58,065, an increase of 4534 over the number held as at March 31st, 1927. The difference between the number deposited and the increase in the total held is, of course, represented by wills withdrawn through the death of testators or for other reasons. It is estimated that wills on deposit represent prospective business of over £230,000,000, and this in itself assures the future of the office.

Year. £ 1893 .. .. .... 1,450,918 1898 .. .. . . . . 1,950,314 1903 . . .. . . 2,706,785 1908 .. .. . . 5,531,658 1913 .. .. .. .. 11,268,311 1918 .. .. .. .. 17,153,031 1923 .. . . .. 28,904,798 1928 ,. .. .. .. 44,155,548

Year ended 31st Mai*eh. £ 1924 .. .. .;«,. 3,781,155 1925 .. .. ., .. 4,621,869 1926 .. .. .... 4,651,447 1927 .. 5,551,019 1928 .. 6,511,928 £25,117,418