J3. g

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For this purpose any five or more persons may, by agreement, form an incorporated land-settlement association, and may purchase in the name of that association any estate consisting of not less than 250 acres. The Public Trustee acts as agent of such associations, and raises the total purchase-money by the issue of debentures under the guarantee of the Government. On the completion of the purchase the estate is transferred to the association, and the several allotments are then transferred by the association to the individual purchasers. The minimum amount of cash required from each purchaser is 4 per cent, of the purchase-money, and a mortgage is given to the Public Trustee for the balance. The Public Trustee is charged with the collection of interest from the mortgagors. The financial position of associations formed under the Act has considerably improved during the last twelve months. Since the 31st March, 1923, arrears have been reduced to the extent of £661 15s. Bd., and of the amount of £1,952 16s. outstanding as at the 31st March, 1924, the sum of £1,046 16s. is due by four mortgagors in three associations, who became heavily involved financially, due in some instances to the purchase of stock at an enhanced value and the subsequent fall in price thereof, and in others to the lack of capital necessary to carry on farming operations, together with the necessary improvements so essential in many districts. Of the above-mentioned mortgagors two abandoned their holdings, and although every effort was made by the Public Trustee to realize, owing to the financial stringency no offers were forthcoming, and in order to protect the security it was found necessary to lease the same until a satisfactory sale could be arranged. In the first case by postponing payment of the arrears for a period of years a sale has since been arranged, by the Public Trustee, and in the other case it is expected that the improved condition of the security will enable a sale to be effected without loss to the association when the lease matures. Of the two remaining mortgagors one has succeeded in arranging the finance necessary to repay his mortgage to the association, while a satisfactory sale of the remaining holding has been made by the Public Trustee. Although it has been found necessary in some instances to postpone the payment of the half-yearly instalment of principal and interest falling due, in very few instances have mortgagors failed to meet their payment on the due date. The requests for extensions of time for payment have always been granted by the Public Trustee if the financial position of the mortgagor was reasonably sound. Owing to the small margin of the security in most of the associations their affairs have required the constant attention of the Public Trustee, but in no case is there cause for any anxiety, while it is anticipated that the position generally will improve in the near future. The following figures show the volume of the work performed by the Public Trustee as agent of the associations : — Number of associations . . .. . . . . 44 Number of mortgagors . . . . . . . . 218 Amounts received during the year as interest and repayments of principal .. .. .. .. £31,923 Amounts held in Common Fund for ultimate redemption of debentures .. .. .. .. £101,728 Amount of mortgages outstanding . . . . . . £355,550 Interest paid on debentures during the year .. .. £22,219 Unclaimed Lands. 24. The administration of unclaimed lands is conducted by the Public Trustee in terms of Part IV of the Public Trust Office Act, 1908. The funds held, in this connection on the 31st March, 1924, totalled £2,287. Unclaimed Property. 25. Under the powers conferred by Part 111 of the Public Trust Office Act, 1908, unclaimed property is also administered by the Public Trustee, and on the 31st March, 1924, the amount held under this heading was £7,603.