ACCOUNTS OF THE PUBLIC TRUST OFFICE FOR THE YEAR ENDED 31st DECEMBER, 1892.

Appendix to the Journals of the House of Representatives, 1893 Session I, B-09

B.— y

1893. NEW ZEALAND.

ACCOUNTS OF THE PUBLIC TRUST OFFICE FOR THE YEAR ENDED 31st DECEMBER, 1892.

Laid before the General Assembly in pursuance of Section 42 of " The Public Trust Office Act, 1872," as amended by " The Public Revenues Act, 1882," Section 15.

WELLINGTON.

1893.

8.^9.

BALANCE-SHEET of the Public Trust Office for the Year ended 31st December, 1892.

3

Balances on 1st January, 1892. Transactions. Balances on 31st December, 1892. Name of Account. Cr. Dr. Cr. Dr. Cr. Dr. Properties placed in the office j wills TSfn' o '' Proceeds of estates specially invested Intestates' estates Beal estates Lunatics' estates Convicts' estates Native reserves West Coast Settlement Reserves Special deposits " Public Works Act, 1876," sections 65 and 66 Police Reward Fund " Public Works Act, 1882," sections 64 and 65 " Public Works Act, 1882," section 151 Native Land Court Act " Rating Act, 1876," section 63 "Rating Act 1876 Amendment Act, 1879," section 4 .. " Rating Act, 1882 " "Native Land Act Amendment Act, 1878," section 13, No. 2 .. " Native Land Act Amendment Act, 1882," section 6 .. " Native Land Laws Amendment Act, 1883," section 14 " Shipping and Seamen's Act, 1877" Permanent Militia Reward Fund " Debtors and Creditors Act, 1876," section 209 " Harbours .\ct, 1878," section 73 .. "Destitute Persons Act, 1877," sections 33 and 34 " Industrial Schools Act, 1882 " " Civil Service Reform Act, 1886 " .. " Wellington Impounding Act, 1874 " Nelson Impounding Act Trustees Relief Act ., .. .. Auckland Hospital Reserves Act Maori Real Estate Management Act .. .. Supreme Court Land Assurance Fund Native 10-per-cents, Auckland Native 5-per-eents, Wairarapa Natives at Wellington .. .. ..... Native Equitable Owners Act Railway Servants' Fund General Investment Account Special Investment Account Returned Cheque Deposit Account .. Consolidated Fund Account Expenses Account Interest Account Suspense Account " Bankruptcy Act, 1883 " .. Cash Consolidated Fund Advance Coal-miners' Relief Fund Deficiency in Realisation of Mortgage Securities Guarantee Fund Defence Act New Lease Deposit (" The West Coast Settlement Reserves Act, 1892 ") £ s. d. 98,738 14 11 68,646 14 2 111,925 9 4 55,293 6 2 7,910 16 7 12,277 19 0 8 3 6 14,249 0 0 2,165 11 5 12,434 13 2 173 1 9 1,540 18 3 279 17 9 48 7 11 17 6 0 453 9 10 110 8 2 3,508 3 6 150 13 9 6 6 0 7,379 3 7 446 5 0 1,117 5 9 2,590 2 10 5 7 5 1 12 7 287 10 3 4,369 6 5 3 0 6 0 10 0 347 17 4 210 12 8 2,321 2 8 10 0 0 89,282 16 10 2,444 12 3 ■ 243 2 2 634 6 0 45 11 5 1,651 4 7 £ s. d. £ s. d. 217,848 4 9 66,312 12 10 149 10 0 34,844 3 7J 950 1 8 10,215 17 2 1 10 0 6,967 1 3 10,063 16 1 10,408 4 11 £ S. d. 91,761 10 10* 38,613 15 7 112,074 19 4 33,177 .9 11 396 3 4 - 6,106 8 0 1 13 9 5,002 0 5 9,797 1 6 8,168 9 1 0 6 0 64 12 8 41 4 4 £ s. d. 224,825 8 9J 96,345 11 5 56,959 19 10J 8,464 14 11 16,387 8 2 7 19 9 16,214 0 10 2,432 6 0 14,674 9 0 172 15 9 1,505 19 1 822 7 4 48 7 11 17 6 0 442 12 0 114 7 4 3,422 10 2 260 6 0 6 6 0 6.4S6 2 4 456 9 0 1,159 9 8 531 7 7 5 7 5 £ s. a. •■ • • 89 13 6 583 13 11 - 22 6 4 13 19 2 416 10 8 116 19 2 33 4 2 - •• 502 4 0 7 6 11 427 16 4 125 17 10J 57 5 5 20 8 0 1,320 17 7 115 13 10J 15 1 6 2,079 3 3 - 20 12 2 2,633 12 2 1 12 7 296 8 3 628 8 3 3 0 6 0 10 0 ii 14 2 6,376 10 4 •■ • 13 17 7 2,416 13 4 0,749 19 0 3 18 0 4,477 15 0 97 15 2 9 14 5 25 7 2 1,508 1 2 3,063 14 4 13 18 0 7,438 11 4 361 14 11 1,119 4 10 6,007 7 4 86,322 0 6 2,542 7 5 252 16 7 659 13 2 45 11 5 1,793 17 2 393,300 0 0 111,925 9 4 142 12 7 118,070 4 8 112,074 19 4 192 7 11 275, S70 19 5 149 10 0 504 7 2 3,118 15 3 20,449 18 4 31,243 2 5 3,967 19 4 1,721 3 7 230,335 1 4 J 1,000 0 0 2 4 5 3,393 4 4 132 11 11 12 0 551,100 14 9 2,423 9 1 3,118 15 3 4,697 6 4 2,lii 9 10 •• 17,617 12 6 31,243 2 5 1,761 0 10 2,279 2 4 232,294 13 5J 1,S65 0 6 - 2,336 17 2 4,816 3 4 129 18 8 5,374 2 1 17,920 8 6 15,960 16 5 2,414 6 9 1,414 6 9 411 0 G 124 3 5 413 4 11 1,717 7 9 1,800 0 0 132 11 11 20 4 8 220 0 0 ill 2 8 220 0 0 - •• - 523,270 1 3 894,121 10 0J 568,861 11 2 523,270 1 3 894,121 10 0} 5GS,861 11 2

8.—9.

Public Trust Office Expenses Account. Receipts and Disbursements for the Year ended 31st December, 1892.

4

■ublic Trust Office,— £ s. d. £ s. d. To Balance on 1st January, 1892 .. .. .. .. .. 4,697 6 4 Commission and charges received .. .. .. .. 4,445 7 9 Exchange on cheques .. .. .. .. .. 2 11. 3 Profit on purchasing mortgage .. .. .. .. 75 0 0 Commission on stamps bought .. .. .. .. 1 15 6 Net rent received from temporary leasing of land at Katikati .. 69 9 9 Amount transferred from Interest Account during the year .. 6,177 7 7 10,771 11 10 Refund of value of stamps on unused cheques .. .. 35 13 8 Refund of expenditure incurred on behalf o'f an estate . , 17 10 0 Refund of an overcharge in Royal Commission Accounts .. 22 19 0 Valuation-fees received .. .. .. .. .. 46 0 6 Refund on account of one telephone .. .. .. 2 10 0 Refund of costs re Maria Guard .. .. .. .. 14 6 Sundry refunds .. .. .. .. .. .. 6 13 5 132 11 1 Advance from Treasury .. .. .. .. .. 1,000 0 0 1,000 0 0 'ublio Trust Office,— By Salaries of officers, — • Public Trustee Solicitor Chief Clerk Accountant, from 1st January, 1892, to 31st March, 1892 .. Accountant, from 1st April, 1892, to 31st December, 1892 .. Examiner Ledger Keeper, from 1st January, 1S92, to 31st March, 1892 Ledger Keeper, from 1st January, 1892, to 31st December, 1892 Ledger Keeper (January and February) • Ledger Keeper (January, February, and March) Clerk .. Clerk .. Clerk .. Clerk .. Cadet Cadet .. .. .. .. Messenger .. .. .. .. ... Type-writer Type-writer Temporary Clerk Temporary Clerk C. D. de Castro (January and February, 1892) J. C. Mogime, three months' salary on retirement R. J. Buckland, amount paid on retirement Clerical assistance .. .. Commission paid to agents Exohange on remittances Stationery, printing, and office requisites Travelling-expenses Postages, &c. Refunds of commission Legal charges Rent, head office Rent, agencies Advertising Gas and coal Office-cleaning Auditing accounts General Post Office, postages General Post Office, services Agent-General, contribution towards cost of services of AgentGeneral's office .. .. .. .. .. Salaries paid to agents £ s. d. 800 0 0 500 0 0 337 10 0 87 10 0 210 0 0 240 0 0 52 10 0 226 5 0 33 G 8 45 0 0 167 10 0 107 10 0 107 10 0 115 0 0 78 15 0 82 10 0 103 0 0 206 5 0 41 5 0 174 3 4 136 4 0 66 13 4 87 10 0 60 0 0 489 9 9 1,149 6 6 46 12 2 820 3 7 32 7 2 24 10 7 118 9 11 38 1 4 400 0 0 70 0 0 239 6 10 24 9 4 41 1 6 240 0 0 150 0 0 300 0 0 62 10 0 26 2 0 £ s. 3,851 14 214 3 Carried forward .. .. .. .. .. 16,601 9 3 Carried forward .. 4,272 10 8 4,065 17

8.—9.

Public Trust Office Expenses Account— continued. Receipts and Disbursements for the Year ended 31st December, 1892— continued.

5

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8.—9

6

Public Trust Office Expenses Account— continued. Receipts and Disbursements for the Year ended 31st December, 1892— continued.

De. : Cβ. Brought forward £ s. d. 18,038 0 8 Brought forward . ■ £ s. d. £ s. d. 631 2 3 13,536 17 5 West Coast Settlement Eeserves Branch — continued. By Translating "The West Coast Settlement Eeserves Act, 1892," for the Kahiti .. Travelling and special services of W. Williams, Tutangi, and Ngarangi in connection with " The West Coast Settlement Eeserves Act, 1892 " Travelling-expenses of Public Trustee Travelling-expenses of Valuator Legal services re " The West Coast Settlement Eeserves Act, 1892" .. Translating " The West Coast Settlement Eeserves Act, 1892 " Expenses of shorthand-writer .. .'. Hire of hall, &c. .. Travelling-expenses of W. Eennell Eefund of fee on consent to lease .. .. .. Petty expenses 15 0 0 484 18 11 5 19 11 4 4 0 200 14 4 20 0 0 5 10 6 4 5 0 72 16 7 0 10 0 5 6 4 Canterbury District Agency, — Nil. [Included in Expenditure Account.] Canterbury District Agency, — By Salaries, — District Agent Cadet Cost of railway ticket Travelling-expenses Stationery Telephone Kent Advertising Expenses in connection with transfer of Timaru Agency Expenses connected with agent's removal from Wellington to Christchurch Telegrams ■ 1,450 7 10 320 0 0 47 10 0 15 0 0 2 16 10 1 10 6 7 10 0 40 0 0 33 4 0 3 17 8 4 4 0 0 5 2 475 18 2 Unauthorised, — Nil. Unauthorised, — By Compensation for loss of office, — J. C. Small J. C. Moginie Instalments of pension paid C. D. de Castro Compassionate allowance .. .. .. Amount paid to E. Edwards as assignee of W. Preston's estate 144 7 5 456 17 3 129 7 6 16 13 4 41 15 5 Balance 789 0 11 1,785 16 4 i?iQ nQQ n d £18,038 0 8 £18,038 0 8 £18,038 0 8

8.—9.

"Civil Service Reform Act, 1886." Statement of Account for the Year ended 31st December, 1892.

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Dβ. Statement of Account for tl Gβ. £ s. d. £ s. d. To Balance on 1st January, 1892 .. .. .. .. .. .. 4,369 6 5 Deductions from salaries for the year .. .. .. .. 2,279 15 3 Eefunds on account of J. A. Wilson .. .. .. .. 66 13 4 Sundry refunds .. .. .. .. .. .. 16 13 5 Interest added to account .. .. .. .. .. 270 10 2 By Amounts paid on retirement from Service Interest transferred to Interest Account Balance £ s. a. 560 14 10 165 2 3 .. 6,277 1 6 £ s. d. 7,002 18 7 2,633 12 2 £7,002 18 7 £7,002 18 7 Dβ. Inteeest Account for the Yei it ended 31st December, 1892. Ge. £ s. d. £ s. d. To Interest on Government securities .. .. .. .. 9,960 2 7 Interest on mortgages .. .. .. .. .. 15,965 8 1 Interest on Kaihu Valley Railway debentures .. .. .. 1,100 0 0 Interest on bank fixed deposits .. .. .. .. 3,022 2 4 Interest added by bank to current account .. .. .. 405 8 6 Interest on Dunedin Corporation bonds .. .. .. 50 0 0 Interest on Borough of South Invergargill debentures .. .. 60 0 0 Interest on Masterton Borough debentures .. .. .. 26 9 4 Interest transferred from Civil Service Reform Act Account .. 165 2 3 Interest on sundries.. ,. ., .. .. .. 21 8 9 Dividends on shares .. .. .. .. .. .. 467 0 7 By Interest transferred to estates during the year .. Eefunds Balance, transferred to Expenses Account £ s. d. .. 25,001 18 4 63 16 6 .. 6,177 7 7 £ s. d. 31,243 2 5 31,243 2 5 £31,243 2 5 £31,243 2 5 Dβ. Consolidated Fund Account for th e Year ended 31st December, 1892. Ce. 1892. £ s. d. £ s. d. Jan. 1. By Balance at credit of intestate estates unclaimed for six years .. .. .. .. .. .. 3,118 15 3 Mar. 31. Balance at credit, section 65, "Public Works Act, 1876," unclaimed six years .. .. .. .. 0 6 0 Balance at credit, " Debtors and Creditors Act, 1876," unclaimed for six years .. .. .. .. 2,079 3 3 Balance at credit, "Destitute Persons Act, 1877," unclaimed for six years .. .. .. .. 1 12 7 Balance at credit, " Nelson Impounding Act, 1861," unclaimed for six years .. .. .. .. 0 10 0 Balance at credit, " Wellington Impounding Act, 1874," unclaimed for six years .. .. .. .. 3 0 6 Balance at credit of deceased seamen's estates unclaimed six years.. .. .. .. .. .. 32 15 4 Dec. 30, Balance at credit of intestate estates unclaimed for six years .. .. .. .. .. .. 698 13 3 1892. July 11. Amount paid to Public Account Mar. 31. Amount paid to Public Account Dec. 30. Amount paid to Public Account £ s. d. .. 3,118 15 3 .. 2,117 7 8 698 13 3 £ s. d. 5,934 16 2 5,934 16 2 £5,934 16 2 — — £5,934 16 2

8.—9.

Securities held by the Public Trust Office on the 31st December, 1892.

J. K. Wabbueton, Public Trustee. E. F. Waeeen, Accountant. Audited and found correct, except as stated in the report herewith. James Edwaed EitzGebald, Controller and Auditor-General. Wellington, 21st January, 1893.

Kepobt on the Balance-sheet of the Public Trust Office for the Year 1892. This balance-sheet has been examined and found correct except as regards the Investment Account, which is stated to amount to £551,100 14s. 9d. Tins includes the sum of £276,393 Bs. 6d. of mortgage securities; but the sums for which the office holds security appear to be incorrectly stated in the following cases : (1.) The mortgage is for £400; but the property has been sold, and £145 remains on mortgage : £230 should be written off to deficiencies on realisation of mortgages. (2.) The mortgage is for £300 ; but the mortgage has been discharged. (3.) The mortgage is for £150, of which £50 has been repaid. (4.) The mortgage is for £6,807 Bs. 3d.; but, part of the land having been sold, the value of the security is only £5,335 lis. 7d. (5.) The mortgage is for £350 ; but the property has been sold, and the mortgage discharged. (6.) The mortgage is for £2,567 13s. Bd. The estate is being sold in parcels. The value of the mortgage should bo reduced by the amount of the sales. (7.) Mortgage for £400. Fifty pounds' worth of the property has been sold. The security is now for only £350. (8.) Mortgage for £150. The property has been sold on deferred payment. The value of the security is only £100. There aro mortgages in the office, amounting to £19,746 165., which are not included in the investments. They consist of moneys lent by deceased persons whose estates have come into the Public Trustee's hands. Attention has been called tot his in past years ; but they are still omittedfrom the statement of investments, apparently without sufficient reason. Eight mortgages aro included in the investments for which there are no deeds in the office, and for which receipts from solicitors or others in whose possession they are have not been submitted to the Audit. I feel it my duty to call attention to the fact that the system of book-keeping adopted in the Trust Office under the present management throws a considerable amount of additional labour on the Audit Examiner as well as on the staff of the Trust Office itself, arising from the fact that loose unnumbered sheets of "statements of lodgments " are substituted for the ordinary cash-book in use in commercial institutions ; and, notwithstanding that the labour of preparing such " statements " is imposed on the staff of the Post Office, there has been no saving in the work in or in the cost of the Trust Office itself. The. increase in the value of properties coming into the Trust Office has been much less in 1892 than in some former years, whilst tho staff employed in the office is larger, and the cost is not less than in former years. Another objectionable feature in the accounts is that the totals of tho transactions as shown in tho balanceshoot are hot to be found in the ledgers, but must be arrived at only after study of the accounts.- This was not formerly tho case. James Edward EitzGerald, 24th February, 1893. Controller and Auditor-General. Minute on above Report. Quarterly totals of transactions appear in ledger summaries. The system of accounts now entails on the Public Trust Office Examiner and officials only a fraction of the labour of old methods. The saving of work and expense in accounting is too obvious for discussion :it is incredible that such is not Audit experience. The cash-book is perfect. The term "loose unnumbered sheets" is one of misapprehension, and misleading. Numbering is idle. The Post Office is employed instead of the Bank, and renders more valuable service, with half the work formerly imposed on the Bank. Properties under administration are more numerous and worth more. The services performed are of greater value. The business is larger and more efficiently conducted. Mortgages for loans by deceased persons are not, and should not appear as, Trust Office investments. Deeds are accounted for. A few in course of transmission must always be outstanding. Mortgages realised, or realising, form adjustments made by Accountant before the 31st March, 1893 ; but in the statement to the 31st December the investments are correctly subject to adjustment for tho items except (6). Mr. EitzGerald, the Audit responsible, wrote to me about a year ago, respecting faults of the late management: "These matters seem to have been managed with no conception of what is necessary to secure the department from fraud." J. K. Warburton, Public Trustee.

Approximate Cost of Paper.—Preparation, not given ; printing (1,350 copies ,£6.)

Authority : Samuel Costall, Government Printer, Wellington.—lB93.

Price 6d.]

8

loroina: lie. ;osi 'rice. Treasury bill No. 6 Treasury bill No. 12 .. .. .. .. .. Treasury bill No. 17 Treasury bill No. 18 Consolidated stock debentures 920 and 921 Consolidated stock debenture 835 .. .. .. .. .. Consolidated stock debenture 841 Government Loans to Local Bodios, debenture 713 .. .. .. Borough of South Invercargill Loan, debentures 11 to 20 Borough of Masterton Loan, debentures 1 and 2 Immigration and Public Works Loan, 1870, debentures 4 to 11 City of Dunedin Mortgage Bonds, 552 to 555 Dunedin Waterworks Loan, debentures 1137 and 1143 Dunedin Waterworks Loan, debentures 1032, 1033, 1044, 1074, and 1075 Kaihu Valloy liailway Company (Limited), debentures 6 to 27 General Purposes Loan, 1873, debentures 32 to 35 General Purposes Loan, 1873, certificate 74 .. Wellington Trust, Loan, and Investment Company (Limited), shares certificate.. Wellington Gas Company (Limited), shares certificate Northern Eivor Steam Navigation Company (Limited), shares certificate National Bank of New Zealand (Limited), shares certificate National Mortgage and Agency Company of New Zealana (Limitea), shares certificate New Zealana Loan and Mercantile Agency Company (Limited), shares certificate Bank of New Zealand, fixed-deposit receipts Union Bank of Australia Mortgages £ s. d. 59,000 0 0 129,400 0 0 10,000 0 0 14,000 0 0 10,000 0 0 10,400 0 0 11,000 0 0 1,000 0 0 1,000 0 0 200 0 0 800 0 0 200 0 0 100 0 0 500 0 0 22,000 0 0 400 0 0 800 0 0 70 0 0 300 0 0 87 10 0 747 10 0 £ s. d. 59,000 0 0 129,400 0 0 10,000 0 0 14,000 0 0 10,000 0 0 10,400 0 0 11,000 0 0 1,000 0 0 1,000 0 0 200 0 0 Q72 0 0 228 0 0 104 0 0 535 0 0 23,100 0 0 • 340 0 0 696 0 0 81 15 0 300 0 0 87 10 0 747 10 0 182 0 0 185 0 0 1,282 12 11 165 18 4 276,393 8 6 182 0 0 185 0 0 1,282 12 11 165 18 4 276,393 8 6 £550,213 19 9 £551,100 14 9