THE PUBLIC TRUST OFFICE.

Shannon News, 22 October 1929, Page 3

THE PUBLIC TRUST OFFICE.

■ *—,. RECORD YEAR'S BUSINESS. REPORT TO PARLIAMENT. The report presented by the Public Trustee to Parliament this year reveals that the Trust now has estates and funds under its care totalling the huge value of forty-eight mill ion, ipoundS, wliile the new business accepted during th 3 year exceeded the record of last year by two and a half millions.

In his covering report the Prime Minister says: During the period under review 3,508 new estates and funds of a total value of £7,091,350 were accepted for administration,, as compared with 3,526 of a total value of £0,5,11,928 accepted during the preceding year. This is the first occasion upon which the new business for any one year has exceeded £7,000,000. The value of estates and funds under .administration <ou the 31st March, 1928, was £44,155,548, whilst the corresponding figure on the 31st March, 1929, was £48,334,790—ait. increase of £4,179,242 • during the year. The average annual incre'ase in the total value of estates and funds under administration for the past eight years has been oveV £3,000,000, but this is the first time on which the increase has exceeded £4,000,000. The following table shows the growth of the business conducted by the Public Trust Office over the last twenty-five years, the amounts representing the value of estates and funds under administration:

1904 3,152,882 1909 6,399,567 1914 12,282,883 IP] 9 19,242,347 1924 32,404,724 1929 48,334,790 Discussing a suggestion that in view of the easing tendency in the current rate of interest on mortgages, a reduction should' be made in the rate charged by the Public Trustee on loans made by him, the report says the principles by which the Public Truustee must be guidea in the investment of funds are three in number —

(!) The general economic conditions prevailing from time to time and the extent to which there is a demand for money on mortgage:

(2) The special statute law under which the Public Trust Office is established and by which the Public Trustee is bound:

(3) The general law governing the rights and duties of trustees.

There is no doubt that a lowering of the rate of interest on-loans by the Public Trustee in order to make cheaper money available to borrowers would be a grave breach of trust, and if any grounds existed for the belief that the funds invested by the Public Trust Office were not being invested at thecurrent rate obtainable .on good trustee securities confidence in the Office would be shaken. A reduction in the present rate charged to borrowers would be followed by a reduction in the income of those persons whose interests the Public Trustee is bound to safeguard, many of them women aul young children already inadequately provided for and dependent for their living on the income derived from the funds held by the Public Trustee on their behalf.' Any reduction in th-3 rate charged by 'the Public Trustee must therefore follow, and not precede, any general fall in interest rates in the open market. A notable service rendered by the Public Trustee is the facility provided for the preparation and safe deposit of wills. Any person may have his will prepared by the Public Trustee free of charge, provided that-the Public Trustee is appointed executor thereof, and wills of living persons may bo deposited free of charge with the- Office for safe - custody. During the year wills numbering 6053 were deposited with the Public Trustee, and on the 31st March last 62,841 wills of living persons were held in safe custody, an increase of ■ 4776 for the year. The ! difference between the number of wills deposited and the increase in the total is, of course, represented by wills withdrawn through the deaths of testators or-for other reasons, it is estimated that the wills on deposit represent prospective business worth over £250,000,000. These figures show that a very considerable percentage of the proper-ty-holders of the Dominion are availing themselves of the advantages afforded by this branch of the Office services.

There is widespread an impression that the Public Trust Office does not pay income-tax or stamp duty, and that the Office secures a large amount, of gratuitous services from other Government Departments. This is totally incorrect. The Office pays income-tax on the same scale as any company or pea-son with a. similar iriconre, pays fctamp duty, and is charged by other Departments for the services rendered by them.

When regard is paid to the success achieved by the Office, there can be no doubt that it is fulfilling a public need, and that it is of the highest utility to the community. I am satisfied that the sustained growth qf the Department is due to the safety, afforded by its administration, the efficiency of its methods, and its prompt and satisfactory conduct of the business entrusted to it. The results of the past year bear witness to the fact that it has, in the fullest measure, the confidence of the public. The operations for the year under review have proceeded smoothly. The services rendered have evoked numerous expressions of appreciation from satisfied clients, and there is an entire absence of justified complaints regarding the Office administration.' .