THE PUBLIC TRUST OFFICE.

Taranaki Daily News, Volume LV, Issue 287, 26 April 1913, Page 5

THE PUBLIC TRUST OFFICE.

FAR-REACHING RECOMMENDATIONS. ROYAL COMMISSION'S REPORT. Per Press Association. Wellington, Last Night. The Royal Commissioners, Messrs. Hosking, K.C., and J. Macintosh, appointed to enquire and report on the working of the Public Trust Office, have submitted their report. The commissioners find that all trust moneys, unless expressly forbidden to be so invested, are invested indiscriminately. This common fund earns interest at from 4'/ 2 to 5% per cent, per annum, and the estates whose money make it up are paid at a somewhat lower ratewithout a break for any interval of noninvestmcnt. If trust moneys are to go into the common fund they are guaranteed by the State, but if specially invested neither the Public Trustee nor the State is responsible. . They express the opinion that the administration with respect to the methods m making investments and the collection of income and revenue is eminently efficient. The number of well-founded complaints received is exceedingly small m comparison with the number of estates administered. At the same time, having regard to the insufficiency of the staff *■> and to the varying business capacity of I the agents, they cannot say that the '? administration is as efficient as it could ' the?lf \°t 4 Su l ,ject t0 tl,eße rem »rts, •' they find that the office system and <\ methods provide with the greatest care ' ■: Z, i < 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 in- '■ vested on mortgage of freehold security. The posit.cn of the funds as at Scptemi• I J ast waß as Allows: -Total for £5409 t™?'™, ' iab,e t0 account ' ±.i/d,y4B). Of this amount £4,41189$ was invested in mortgages, £122,758 in government securities, £200,923 in local bodies debentures, and £153,136 in Land Settlement Finance Act debenture! the commissioners express the opinion that the Board should be strengthened by the addition of, the Valuer-Gen-eral and two members of wide business knowledge and experience, who would v deal not only with such,important matters as advance investments and the acceptance of trusts, but with questions oi general policy. The SoliciWoeneral - I may, they think, be omitted, and they recommend that one of the additional members should be a person experienced m matters relating to farming and stock. Ihe commissioners find that the office - staff is undermanned and overworked, and that the salaries require readjustment. One remedy proposed for con- , gestion is decentralisation. > The Commission also recommends the* building up of a stronger reserve fund ' 1 and an amendment of the Act to « i that the office solicitor and staff shoulfl be confined to indoor work of the officethat third parties and others requiring legal.advice should not be allowed iS seek it from the office staff a fc, t he «i----pense of the common fuiid. The Minister, Mr. Herdman,.sava that- '. . the recommendations will receive'the im- v mediate consideration of the' Cabinet