MORTGAGE FINANCE

Ashburton Guardian, Volume 55, Issue 291, 21 September 1935, Page 3

MORTGAGE FINANCE

QUESTION IN THE HOUSE.

(Per Press Association)

WELLINGTON, September 20,

In the House of Representatives today M.r C. A. Wilkinson (Ind., Egmont) aslcedi the Prime Minister if lie was aware that it was a practice on tlio part of the Commissioners operating under the Mortgagors Finance Adjustment Act to appoint as trustees for farmers in difficulties, mercantile firms who had a practical interest in supplying goods for farmers, thereby compelling farmers to get all necessary supplies from such firms, and would the Government take action to prevent appointments of that kind. The lit. Hon. G. W. Forbes replied that the principal duties of trustees under the Act are to keep proper accounts of the receipt and distribution of the income of mortgagers. It was intended, when the Act was introduced, that stock firms in many cases would be appointed trustees, andi in practice it had been found more convenient and economical for a stock firm, with whom the mortgagor had previously been dealing, to undertake this work. Iho Department had had no complaints that mortgagors have suffered any disadvantage through stock linns being appointed trustees. The trustees are under the control and supervision of the Adjustment Commission, and may ho removed at any time it the Commission is satisfied that the mortgagor has been treatedi unfairly. If the existing arrangements were disturbed it might happen that in many cases a farmermight he prejndically affected in respect of the availability of inter-sea-sonal financial accommodation. “However, I shall be pleased to have the matter further looked into. ’