PUBLIC TRUST OFFICE (REPORT RELATING TO THE).

Appendix to the Journals of the House of Representatives, 1914 Session I, B-09

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1914. NEW ZEALAND.

PUBLIC TRUST OFFICE (REPORT RELATING TO THE).

Presented to both Houses of the General Assembly in accordance with Section 47 of the Public Trust Office Amendment Act, 1913.

BEPOBT.

Pursuant to section 47 of the Public Trust Office Amendment Act, 1913, I have the honour to lay before Parliament the following report of the operations of the Public Trust Office during the financial year ended the 31st March, 1914 :— 1. The net profits for the year were £29,222. The growth of the business is shown by the following table, whicli covers the past six years : —

With the growth of the Office business the Office staff has grown, and, with the staff, the salarylist. The general conditions of officers have been substantially improved. The increase in the staff during the last six years is shown in the foregoing table. The following is the salary-list for the same period : — Total Salaries. £ 1909 .. .. .. .. .. .. 15,772 1910 .. .. .. .. .. .. 16,807 1911 .. .. .. .. .. .. 18,444 1912 .. .. .. .. .. .. 21,722 1913 .. .. .. .. .. .. 27,221 1914 .. .. .. .. .. .. 32,837 2. In order that estates may share in the prosperity of the Office, the common-fund rate of interest has been raised from 4J per cent, on the first £3,000 and 4 per cent, on the excess, to 4J per cent, on the first £6,000 and 4| per cent, on the excess. Moreover, the new scale applies to local bodies' sinking funds, which formerly received only 4 per cent. These increases amount approximately to £3,000 a year, and came into operation on the Ist April, 1914. 3. Under powers conferred by last year's Act the Office Board has been strengthened by the appointment of two non-Service members. The gentlemen selected were Mr. G. E. Tolhurst, for many years the Chief Inspector in New Zealand of the Union Bank, and Mr. W. Gγ. Foster, the Managing

Year ended 31st March. I Number Number Number on of of Staff. Receipts. Payments. Number of Estates. Value of Estates. i Number of Wills deposited during the Year. Capital Funds. Net Profits. 909 910 911 .912 913 914 103 112 138 160 182 206 23,414 25,823 30,401 i 41,159 ! 40,843 I 45,362 43,359 49,613 54,789 62,280 65,790 68,406 5,019 5,564 6,112 6,694 8,496 9,223 £ 6,399,567 7,358,947 8,112,342 9,493,959 11,268,311 12,282,883 718 844 993 1,024 1,035 1,047 £ 2,850,111 3,414,168 4,287,195 5,070,305 5,799,446 6,366,707 £ 10.850 11,738 11,241 25,919 27,551 29,222

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Director of the Wellington Meat Export Company. These gentlemen have special knowledge of finance and of stock and station matters, and I am satisfied that their presence on the Board will not only be of great assistance to the Public Trustee, but will also do much to strengthen the confidence of the public in the Office administration of the large and important interests entrusted to it. 4. The following is a statement showing the net profits of the Public Trust Office for the ten years ended the 31st March, 1914 :— £ s. d. 1905 13,955 7 2 1906 11,989 19 9 1907 11,653 3 6 1908 9,639 14 6 1909 10,850 11 4 1910 11,738 17 10 1911 11,241 6 8 1912 .. .. .. •• 25,919 18 8 1913 27,551 8 4 1914 .. .. .. •• •■ 29,222 0 0 It will be seen that the profits for the last year are the largest on record. 5. It has been decided to close the agency at Masterton, and establish in its stead a branch under officers of the permanent staff. The change will result in greater efficiency, without greater expense. 6. Active steps are being taken under the West Coast Settlement Eeserves Amendment Act, 1913. In almost every instance the European lessees have elected to take new leases. The valuations are in progress, and I am hopeful that the scheme of settlement provided by the Act will prove satisfactory to all concerned. 7. The effect of the Public Trust Office Amendment Act, 1913, is to greatly extend the functions of the Public Trustee, and thereby increase the usefulness of the Office. Amongst other things, the Act provides for the appointment of Advisory Trustees where the Public Trustee administers the estate, also for his appointment as Custodian Trustee where the active administration is in the hands of private trustees. Moreover, in the case of private trust estates, it empowers the Public Trustee to have the accounts audited and investigated on the application of any beneficiary oi private trustee. Numerous inquiries have been made on all these points, and I am satisfied that persons interested will avail themselves very freely of the provisions referred to. 8. The Office accounts for the year will be laid before Parliament in due course, and appended hereto are comparative tables showing how the capital funds of the Office are invested, and furnishing other useful information. A. L. Herdman, Wellington, 20th April, 1914. Minister in Charge Public Trust Office.

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Capital Funds of the Public Trust Office, and how invested, on 31st March, 1909 to 1914.

Number and Estimated Value of Estates in the Public Trust Office. The following was the number and estimated value of estates in the Public Trust Office on the 31st March, 1909 to 1914 :—

On 31st March, 1909. On 31st March, 1910. On On 31st March, | 31st March, 1911. 1912. On 31st March, 1913. On 31st March, 1914. The capital funds of the Public Trust Office amounted to Of which the amount held in cash was £ 2,850,111 £ 3,414,168 £ 4,287,195 £ 5,070,305 £ 5,799,446 £ 6,366,707 15,741 218,030 158,973 141,432 283,749 208,375 Leaving a balance invested of .. 2,834,370 3,196,138 4,128,222 4,928,873 5,515,697 6,158,332 The investments consisted —■ Of those made out of the Common Fund Of those made for estates ()f those made out of profits Of those made by other trustees of properties afterwards transferred to the Office 1,986,750 843,200 2,189,551 950,792 52,545 3,250 2,991,350 1,075,028 59,719 2,125 4,707,755 154,844 64,149 2,125 5,255,660 177,964 82,073 5,923,606 149,288 85,438 4,420 The capital funds invested were applied to investments— In advances to estates and accounts In Government securities of the Dominion In Land Settlement Finance Act debentures In local bodies' securities In mortgages of real estate In fixed deposits In freehold property and furniture; 2,834,370 3,196,138 4,128,222 4,928,873 5,515,697 6,158,332 71,793 340,468 68,421 189,208 88,743 161,513 147,603 157,505 334,180 337,968 63,680 215,664 279,281 266,681 190,774 2,309,416 218,159 2,587,466 237,549 3.353,210 1,803 59,719 265,784 4,125,116 531 64,149 321,804 4,581,671 612 82,073 509,850 4,989,907 1,348 85,438 52,545 Totals . . 2,834,370 3,196,138 4,128,222 4,928,873 5,515,697 6,158,332

Number of Estates and Accounts Class. On On On On On 31st March, 31st March, 31st March, 31st March, 31st March, 1909. 1910. 1911. 1912. 1913. On 31st March, 1914. Wills and trusts [nvestment agencies Intestates' estates Mental patients' estates Donvicts' estates .. Native reserves SVest Coast settlement reserves Unclaimed lands Sinking funds Pension funds Land Settlement Finance Act, 1909 Miscellaneous Miscellaneous Native accounts . . 1,533 1,389 1,128 94 460 342 69 4 1,737 1,558 1,238 94 460 379 94 4 1,810 1,788 1,422 94 460 392 143 3 2,217 1,747 1,520 12 94 460 406 190 6 22 20 2,455 221 1,828 1,953 17 94 460 418 242 8 35 99 666 2,921 284 1,747 1,877 19 94 460 420 408 11 38 105 839 Totals 5,019 5,564 6,112 6,694 8,496 9,223 Class. Value of Bst On Oα On 31st March, j 31st March, 31st March, 1909. 1910. 1911. [ Value of Esta' tes and Accounl On 31st March, 1912. On 31st March, 1914. On 31st March. 1913. Wills and trusts .. .. ' .. [nvestment agencies Intestates' estates Mental patients , estates jonvicts' estates .. Native reserves West Coast settlement reserves Miscellaneous Native accounts Jnelairaed lands Sinking funds Pension funds Land Settlement Finance Act, 1909. . Maori Land Board funds Miscellaneous funds Dffice funds Dffice premises, furniture, &c. £ 2,504,614 £ 2,803,724 £ 3,257,297 £ 3,619,753 £ 4,366,450 162,362 474,072 524,095 8,450 430,000 940,000 213,027 39,465 2,300,603 997,284 465,516 75,347 94,963 94,604 82,073 £ 4,771,855 199,984 590,456 509,442 6,485 430,000 940,000 233,449 40,209 2,408,337 1,208,825 501,493 117,850 118,935 120,125 85,438 370,484 364,985 430,000 940,000 34,712 1,166,000 387,988 385,755 395,642 465,000 1,100,000 34,719 1,438,877 536,609 385,090 429,958 430,000 940,000 35,330 1,711,060 675,489 457,366 462,149 4,295 430,000 940,000 171,074 37,668 1,991,451 812,976 245,493 79,765 93,225 84,595 64,149 106,481 54,303 40,000 87,618 58,458 52,545 46,491 78,785 63,123 59,719 Totals. . 6,399.567 7,358,947 8,112,342 9,493,959 11,268,311 12,282,883

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Statement showing Year by Year, from 31st March, 1896 to 1914, the Capital Funds of the Public Trust Office, and how invested.

By Authority : John Mackay, Government Printer, Wellington.— 1914. Price 3d.l

Approximate Cost of Paper— Preparation, not given ; printing (4,000 copies), £5 10s..

Capital of the Public Trust Office. Cash. In Investments. I Total. Invests Yearly Increase or Decrease For in Amount. Common Fund. Invested Total. ,ed Total. For Estates and Accounts. Total. ~ , Land general Local Mortgages Freehold! Settlement govern- Bodies > of - Pro . : pi nanoe „ men ,. Securities. Freeholds. perty. Account Securities, I P Debentures. Invested in 1 Ad- Fixed Share vances Deposits; in to in CornEstates. Banks, panies. Year ended 31st March, 1896 Ditto, 1897.. „ 1898 £ 16,960 £ 757,573 £ 774,533 £ 105,596 £ 492,788| £ 264,785 £ 757,573 319,108 £ 1,839 £ 432,455 £ £ £ £ £ 4,171 3,821 380; 1,884 16,664 48,667 841,974 912,971 858.638 961,638 84,105 103,000 588,483: 631,816 253.491 281,155 843,974 912,971 354,108| 251,708 1,839 7,839 482,206 651,160 „ 1899.. 13,512 942,641 956,153 Decrease. 5,485 653,710; 288,931 942,641 160,308: 12,839 766,371 I 1,689 1,434 „ 1900.. „ 1901.. „ 1902.. „ 1903.. 27,880, 53,925; 59,501 74,765 1,028,988 1,618,379 1,723,450 1,861,308 1,056,868 1,672,304 1,782,951 1,936,073 Increase. 100,715 561,511 110,647 153,122 794,987 1,407,419 1,049.885 1,239.027 234,001 210,960 673.565 622,281 1,028,988 1,618,379 1,723.450 1,861,308 137,778 607,798 578,323 578,343 19,429 19.239 28,129 31,129 871,771 991,261 1,116,998 1,251,836 81 .-. .. •• •• „ 1904.. 65,386 1,595,330 1,660,716 Decrease. 275,357 1,477,123; 118,207 1,595,330 103,363 44,129 1,447,238 600 .. „ 1905.. 82,516 1,813,709 1,896,225 Increase. 235,509 1,548,112; 265,597 1,813,709 117,385 63,429 1,632,895 Decrease. 15,429 .. „ 1906.. 29,402,1 1,851,3961 1,880,796 1,526,967! 324,429 1,851,396 41,896J 91,249 1,718,251 2,117,924 2,444,712 2,834,370 3,196,138 4,128,222 4,928,873 5,515,697 6,158,332 2,127,700 2,507.661 2.850,1.11 3.414,168 4,287,195 5,070.305 5,799.446 6,366,707 Increase. 246,904 379,961 342,450 564,057 873,027 783,110 729,141 567,261 1,695,897 1,887,920 1,986,750 2,189,551 2,991,350 4,707,755 5,255,660 5,923,606 422,027 556,792 847,620 1,006,587 1.136,872 221,118 260.037 234,726 2,117,924 2,444.712 2.834,370 3,196,138 4,128,222 4.928,873 5.515.697 6,158.332 123,047 217,462 334,180 337,9681 340,468! 189,208! 161,513 157,505 111,344 131,859 190,774 218,159 237,549 265,784 321,804 509,850 1,883,533 2.095,391 2,309,416 2,587,466 3,353,210 4,125,116 4,581,671 4,989,907 . „ 1907.. „ 1908.. „ 1909.. „ 1910.. „ 1911.. ., 1912.. ., 1913.. „ 1914.. 9,776 62,949 15,741 218,030' 158,973, 141,432; 283,749: 208,375; 52,545 59,719 64,149 82,073 85,438 • 63,680 215,664 279,281 266,681: 71,793 68,421 88,743; 147,603! 1,803 .. 531 .. 612 .. 1,348 ..