8.—9

After crediting interest to the fund and deducting the allowances made to date, at the 31st March, 1925, there remained in the Public Trustee's hands the sum of £53,834 4s. 6d. The amount paid out during the period 31st March, 1924, to 31st March, 1925, was £86,634 3s. 6d. Flock House Scheme. —The trustees of the fund have inaugurated a scheme for the emigration and training of sons of British seamen. For this purpose they have acquired a training-farm known as " Flock House," in the Rangitikei District. Accordingly the headquarters of the fund were transferred in 1924 to Palmerston North from Wellington. (g.) British Mercantile Marine Pension Fund.—Arising out of the Flock House scheme an arrangement has been made whereby the Public Trustee has undertaken the collection of pensions due to those lads whose fathers or guardians were killed or disabled whilst serving at sea during the late war, and who are now emigrating to the Dominion for the purpose of being trained as farmers under the scheme. These pensions are to be held and invested by the Public Trustee, and the accumulated funds paid to the boys entitled when they attain their majority, or utilized for their benefit, at the Public Trustee's discretion, should they commence farming on their own account prior to that date. At the present time he is acting on behalf of thirty-four boys entitled to pensions, but this number will increase as arrangements are made by the trustees of the New Zealand Sheepowners' Acknowledgment of Debt to the British Seamen Fund for fresh lads to be sent out to the Dominion. The scheme of providing for the dependants of those members of the Royal Navy and mercantile marine who lost their lives in the service of the Empire during the Great War is such a worthy one that the Office decided to make no profit charges whatever for its services in connection with the collection of these pensions, whilst the maximum rate of interest permitted by the regulations is allowed on the amounts collected. Discharge of Mortgages under Section 75 of the Property Law Act, ] 908, and Section 117 of the Land Transfer Act, 1915. 62. In accordance with section 75 of the Property Law Act, 1908, and section 117 of the Land Transfer Act, 1915, the Public Trustee is authorized to discharge a mortgage where— (a.) The mortgagee is absent from New Zealand, and (under the Land Transfer Act, 1915) is dead ; (b.) So far as the mortgagor is aware, there is no person in New Zealand duly authorized to give a discharge of the mortgage debt at or after the date appointed for repayment; (c.) Payment of the amount due under the mortgage has been made : Provided the Public Trustee has been satisfied by reasonable proof of the amount due and owing. Previously it was provided that if a mortgagee was absent from the Dominion and there was no person authorized to give a receipt for the mortgage-money, then the mortgagor could discharge the mortgage by payment to the Colonial Treasurer. It is interesting to note that in the case of the National Bank of New Zealand (Limited) v. Barclay and others (17 N.Z. L.R. 819) in connection with section 109 of the Land Transfer Act, 1885, which corresponds with section 117 of the 1915 Act, it was laid down by the Court of Appeal that in view of that section it must be held that the mortgage debt was payable in New Zealand. According to the judgment, if a mortgagee does not choose to have an agent in the Dominion interest will cease at the date of the payment of the moneys to the Treasury (now the Public Trustee). During the year seventeen mortgages were discharged under the Public Trustee's statutory power, and principal and interest amounting to £12,159 10s. lOd. received by the Office.

6—B. 9.

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