THE PUBLIC TRUST OFFICE

Stratford Evening Post, Volume XXXV, Issue 94, 28 April 1913, Page 3

THE PUBLIC TRUST OFFICE

ROYAL COMMISSION’S REPORT. [Per Press ■ Association.] Wellington, April 25. The Royal Commissioners, Messrs. Hosking, K.C., and J. Macintosh, ap- | pointed to enquire and report on the | working of the Public Trust Office, i have submitted their report. The cpmmisioners find that all trust moneys, unless expressly forbidden to be so invested, are invested indiscriminately. This common ■ fund earns interest at from 4i to ’si per cent., per annunij and the estates whose money, make it up are paid at a somewhat lower rat© without a; break for any interval of non-invest-ment. ' | ,lf trust moneys are to ‘go into the : pdrniJrtOh,-fund they are guar-) antoed by tjik 'State, but if specially j invest^;.‘neither, ; the Public Trustee not The State is responsible. 1 They express the opinion that the administration with respect to the methods in making investments, and the, collection of income and revenue is eminently efficient. The number of well-founded complaints ih;, exceedingly small in comparison with i the number pf estate administered.’; At , •the same time, 1 ; having regard to jtlio insufficiency of the , staff and to 41|o ; varying business capacity of the agents, they cannot say that the administration, is as efficient as dt could, bo made to be. Subject to those remarks, they find that the office system and methods provide with the greatest care for the safeguarding, controlling and scrupulously accounting for any estate placed in its charge. By far the greater portion of the moneys controlled by the Trustee is invested on- mortgage of freehold security. The position of the funds as at September 30 last was as follows: —Total for which the office was liable to account, £5,409,356 (less funds specially invested £173,948). Of this amount £4,411,893 was invested in mortgages, £122,758 in Government f securities, £260,925 in local bodies debentures, and £153,136 in Land Settlement Finance Act debentures.

The commissioners express the opinion that the Board should be strengthened by the addition of the Valuer-General and two members of wide business knowledge and experience, who would deal not only with such important matters as advance investments and the acceptance of trusts, but with questions of general policy. The Solicitor-General may, they think, be omitetd, and they recommend that one of the additional members should be a person experienced in matters relating to farming and stock. The commissioners find that the office staff is undermanned and overworked, and that the salaries require readjustment. One remedy proposed for congestion is decentralisation.

The Commission also recommends the building up of a stronger reserve fund and an amendment of the Act to permit of the appointment of advisory trustees; that the office solicitor and staff should he confined to indoor work of the office; that third parties and others requiring legal advice should not ho allowed to sock it from the office staff at the expense of the common fund. The Minister, Mr Herdman, says that tho recommendations will'receive the immediate consideration of the Cabinet.