PUBLIC TRUST OFFICE (REPORT RELATING TO THE).

Appendix to the Journals of the House of Representatives, 1917 Session I, B-09

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1917. 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.

EEPOET. Pursuant to section 47 of the Public Trust Office Amendment Act, 1913, I have the honour to lav before Parliament the following report of the operations of the Public Trust Office during the financial year ended the 31st March, 1917 :— 1. When leaving for England I placed the Office under the control of the late Dr. McNab, and on his sudden and lamented, death I arranged for the Hon. Mr. Myers to take charge. 2. The net profits for the year were £58,862, an increase of £12,754 over those of last year, and the highest in the history of the Office. 3. The growth of the business is shown by the following table, which covers the past eight years :—■

4. Dr. Fitchett, the present Public Trustee, will be retiring shortly. Ho took charge on the Ist March, 1910, and the above table is striking evidence of the efficiency of his administration. During his term of office the scale, of Office charges has been reduced, and the rate of interest payable by the Office to estates in the common fund has been increased —making a difference of about £4,000 a year. Notwithstanding this, the net yearly profits have grown from £11,241 in 1911 to £58,862 in'l9l7. 5. The table shows a large increase in the staff, but of the total (321) the number of temporary appointments is fifty-five, and they have been made in order to take up the work of permanent members who have left for the front. The number who have so left is eighty. They all did responsible work in the Office, and their absence is severely felt; but lam very pleased to be able to say that the working staff, both permanent and temporary, are cordially and loyally doing all in their power to meet the strain. 6. The lending operations of the Office, so far from being lessened, have largely increased. During the year under review advances have been made as follows : — £ On mortgage .. .. .. .. .. .. .. 873,417 On Government securities .. . . .. . . .. .. 200,000 To local bodies .. .. .. .. ... .. .. 312,026 To Hospital Boards .. .. .. .. .. .. 16,200 To estates and beneficiaries .. .. .. .. 76,317 £1,477,960

„ , , Number Year ended 31 st March. gtftfl 1910 .. 112 1911 .. 138 1912 .. ; 160 1913 .. 182 1914 .. 206 1915 .. 237 1916 .. 278 1917 .. j 321 Number j Number of of Receipts. Payments. 25,823 ] 49,613 30,401 : 54,789 41,159 62,280 40,843 | 65,790 45.362 68,406 54,633 77,132 56,612 84,968 65,832 95,296 Number of Estates. 5,564 6,112 6,694 8,496 9,223 9,989 10,898 13,632 Value of Estates. £ 7,358,947 8,112,342 9,493,959 11,268,311 12.282,883 13,580,936 13,598,744 15,065,583 Number of Wills deposited during the Year. 844 993 1,024 1,035 1,047 1,572 3,700 5,257 Capital Funds. £ 3,414,168 4,287,195 5,070,305 5,799,446 6,366,707 7,096,420 7,082,888 8,058,886 Net Profits. £ 11,738 11,241 25,919 27,551 29,222 32,508 46,108 58,862 .

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As regards local bodies, tho principle adopted is that whilst willing to assist them by advances for necessary purposes such as sanitation, roads, bridges, &c, the Office will not make advances during war-time for unessential purposes such as buildings, gas or electric-light works, street-improve-ments, &c. 7. The total number of wills now deposited in the Office is 19,565, and the number deposited during the year under review is 5,257. 8. The total number of estates now in the Office is 13,632, and tho number that came in during the year under review is 2,734. Of those no less than 1,798 are soldiers' estates, which are being administered by the Office at a loss. Where the assets consist of only military pay no charge is made. Where they consist of military pay, plus other assets, no charge is made for military pay, and the scale charges are reduced by one-half in the case of other assets. Moreover, the Public Trustee has gratuitously placed all the branches throughout New Zealand at the disposal of the Defence Department for the purpose of inquiries, &c, relating to soldiers. 9. As foreshadowed in my last report, legislation has been passed providing for a bonus to estates in the common fund. For the year ended the 31st March, 1916, bonuses totalling £22,908 were distributed, thereby increasing by about | per cent, the rate of interest credited to estates. A similar bonus will probably be distributed for the year under review. 10. Large as are the office premises in Wellington, the business is fast outgrowing the accommodation they give, and tho necessity of extending them must soon be faced. 11. The office premises in Christchurch have never been satisfactory, tho frontage being too narrow to give sufficient light or accommodation. A new site has therefore been purchased at a cost of £2,000. It is a full quarter-acre at the corner of Armagh and Durham Streets, near the Supreme Court, the Magistrates' Court, and the old Provincial Buildings. A suitable office building will be erected as soon as the cost of material and labour returns to something near the normal, and meanwhile about £100 a year is being received in rent of a house which, owing to the size of the section, need not bi removed when the new building is put up. 12. I regret to say that Mr* Ruth erf urd, the Office Agent at Palmerston North, died on the 11th November, 1916. He has acted for many years, and always with perfect integrity and loyalty. His partner, Mr. Oonnell, was appointed Acting Agent pending definite arrangements being made. The Office interests in the Palmerston North district are very large, and the question of acquiring a site and establishing a branch is under consideration. Meanwhile Mr. Connell is performing his duty with complete satisfaction. 13. With respect to Masterton, complaints were made in the year 1914 that the Office Agent (Mr. Chonnells) had improperly trafficked in the lands of a Native whose estate had been administered by the Office during his minority. The Minister in Charge (the Hon. Mr. Herdman) instructed the Public Trustee to investigate the matter, The result of the Public Trustee's report was that the agency was abolished, and a branch established under the permanent Office staff. Mr. Chennells was acting personally, and not as Office Agent in the matter, but the public does not draw fine distinctions, and throughout the Masterton district the Office has been exposed to severe criticism. In my opinion a public inquiry by Commission should be held in order that the full facts may bo known. Since the establishment of the branoh the business has largely increased. It is at present being carried on in rented premises, but an excellent freehold site has been purchased at a cost of £2,100, and a building will be erected as soon as war conditions admit. 14. The Office accounts for the year will be laid before Parliament in due course. J. G. Ward.

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