PUBLIC TRUST OFFICE.

Wairarapa Age, Volume XXV, Issue 10713, 26 April 1913, Page 5

PUBLIC TRUST OFFICE.

REPORT OF THE COMMISSION. SOME IMPORTANT RECOMMENDATIONS. (By Telegraph—x- res* Association.) WELLINGTON, Last Nigfifc. The Royal Commissioners, Messrs Hosking, K. 0., and James Macintosh, appointed to inquire and report on the working of the Public Trout Office, have submitted their, report. The Commisaiamers find that all trust moneys, unless expressly forbidden to be so invested, are invested indiscriminately. This common fund earns in-, forest at from 4 J to o£ per cent per annum, and the estates whose money make it up are paid at a somewhat lower rate, without a break for any interval of no investment. If truit 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. The Commissioners express the opinion that the administration with respect to the methods of making investments and collection of income and revenue, is eminently efficient, i The number of well-founded com-1 plaints received is exceedingly small, dn comparison with the number of estates administered. At the same time, having regard to the inusfficiency of "the staff, and to the varying business capacity of the a l? en }* s » *h«y cannot say that the administration is as.efficient as it could be mode to be subject to these 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. fortgage of freehold security. The position of the funds as at 30th .September last was as follows: Total, for which the Office is liable to account, £5,407,356; less funds specially invested, £173,946. Of this amount, £4,411,893 is invested in mortgages, £122,758 in Government securities, £260,925 in local bodies debentures, and £153,136 in the Land Settlement finance Account debentures. The Commissioners express the opinion that the Board' should be strengthened by the addition of the Valuer-JGeneral and two. members of wide' biisimess knowledge and experience, who shall deal not only with such important matters-as advances, investments, and the acceptance of trusts, but with questions of. general policy. The Solicior-General may, they think, be omitted, and they recommend that one of the additionalmembers 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 re-adjustment. Oine remedy proposed for consideration is decentralisation. The Commissioners also recommend the building up of a stronger reserve fund; an amendment of the Act lb permit of the appointment of Advisory Trustees j mat the office solicitor and staff should be confined to the indoor, work of the office; and that third -parties and others re- . quiring legal advice should not be allowed to seek it from the office staff at the expense of the common fund. The Hon A. L. Herdman, Miinster in Charge, states that the recommendations made will receive the immediate consideration of the Cabinet.