PUBLIC TRUST OFFICE.

Shannon News, 11 June 1929, Page 4

PUBLIC TRUST OFFICE.

ANOTHER RECORD YEAR.

BUSINESS INCREASES.

NET PROFITS £29,467.

The business transacted by; the Public Trust Office during the yearended 31st March exceeded all previous records, according to an announcement by the Prime Minister (the Right Hon. fciir Joseph Ward), giving details of the year’s operations.

At the beginning of the year (on Ist April, 1928), said Sir Joseph, the value of the estates under administration by the Public (Trustee was i£44)155,548, and on 31st March last, after 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 increase in value' had exceeded £2fipoo,ooo, Ibjut 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 npw 'business reported during the year, estates representing a total value of £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 of.a growing desire to take advantage of the facilities wdiich the Public Trust Office was able to offer in the conduct of trustee business. The difference between the value of the new estates accepted for administration and the net increase in the total value of estates under administration represented the value of the estates that had been wound up and distributed. With the special facilities of the Public Trust Office for handling large 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. Remarkable Growth. As an 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 than £10,600,000 in three years. (Some particulars of the growth in the value of the estates under administration for the past thirty years af five-year intervals were given by the Prime Minister as follows: —

Sir Joseph Ward stated that it was in every way probable that this increase would be exceeded in tbe near future, 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 tbe number held was over 63,000, representing assets of a present estimated value of £251,000,000; Confidence of the Publii.

As further wills were being deposited at the rate of from 500 to -600 every month and many others were known to be deposited elsewhere, it would be seen that administration by the Public Trust Office had the full confidence of a very large section of the public, including all classes of the community. lit was now recognised that the Public Trust Office, with the security it afforded, its wide organisation, its long experience in the administration of all classes of estates, and its expert staff, had many advantages -to offer, and increasing numbers of successful professional and business men were appointing the Public 'Trustee their executor. A feature of administration 'by the Public Trust Office, which made a strong appeal to testators, was the Tight in appointing the Public Trustee their executor to have an advisory trustee or trustees asso ciated 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 it to a greater extent. The appointment of advisory, trustees tm welcomed by the Public Trustee. A Wide Field.

The Public Trust Office investment business is extensive, said Sir Joseph Ward, and tho held of its operations covered the whole Dominion. ■■ Financial assistance had been provided for local bodies to carry out works of public convenience and importance, for farmers to acquire their holdings and undertake improvements, for business men to build city blocks, and for 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 capital was automatically provided for had. been a notable success. Then, again, the charge for the completion of the documents had been fixed on a basis highly favourable to borrowers, while a further protection of their interests was provided in making the charging of procuration fees illegal. ' , The amount lent 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 sue-

cessfully. The great growth of the business necessitates an early extension of the system, and steps are 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 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 administration 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 thi3 notwithstanding the policy in the past when erecting premises of making provision for future growth as far as it is practicable to flo so. In Dunedin where the 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 has increased substantially in recent years. “Continued effort had been directed to economical management commensurate with complete service to benficiaries and the protection of their interests, and notwithstanding the great volume of new business which tne office handled during the year the ratio 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 year just closed. It >-as not the policy of the office to s6eii 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 sot aside yearly contributions to the reserve funds to ensure the financial stability of the office, and to protect the public funds from being called upon to meet any liability under the guarantee which the State provided, but in each of the immediately preceding years it has been 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 be the policy, and the Public Trustee anticipated that the ■ increasing business would make further concessions possible in the near future.

Year. 1899 Value of Estates. £2,110,316 1904 r. .... 3,152'882 1909 6'399'567 1914 . 1919 .. 1924 .. 1929 . .... 12,282^883 .... 19,242,3417 .... 32,404,724 .... 48,334,790