OFFICE PREMISES UNLET.

Auckland Star, Volume LXI, Issue 122, 26 May 1930, Page 10

OFFICE PREMISES UNLET.

TRUST PROPERTY AFFECTED;? TRUSTEES' HANDS TEED. APPLICATION TO COURT. Some years ago an Auckland lawyer, ' who has since died, settled on his family a property and provided that there was to be no distribution of the profits among the beneficiaries until the.expiration of 21 years, or -when the mortgage was paid off, whichever occurred first. The trustees borrowed £9000 from the , Public Trustee and erected a block of ; offices in 1924, when offices were scarce and consequently let readily at good rents. Since then, however, the demand has been overdone, and the property in the estate has gone back in value. The Government valuation is x £17,000. In 1927-8 the loss on the building was.£74, in 1928-9, £139, and in 1929-30, £342, In explaining these facts to his Honor, Mr. Justice Smith, at the Supreme Court this morning, Mr. Finlay, who ap-. peared for the trustees, asked for leave to sell the property. There was no fund out of which losses could be met, and the trustees were getting to the stage where they could not carry on. Up to the present they had voluntarily ii»ade up the deficiencies, but l could not continue. All parties were agreed in coming to the court to ask for a geD*ral power to sell, the idea being that the trustees should be able to take advantage of the first recrudescence of the property, market, which at, present was dead. His Honor asked what would be the position, supposing that in the meantime the economic position improved, and rents soared. What right would the court have to give a general power to sell? Mr. Finlay pointed out that the trustees were still bound to "do that which is best for the trust." In the meanwhile the loss was mounting up. His Honor said he was asked to allow the sale' of the. property when, things improved, but when things improved there would be no need to sell. Mr. Finlay explained that the trustees wanted to be ready to take advantage of the presence of the accidental buyer whenever he might come along. His Honor said that if the trustees were in really serious financial difficulties they could come to the Court and ask for leave to sell when there was a buyer, and when the question of salvage might enter the case. Mr. Finlay reiterated that the trustees wanted to be in a position,not to lose a possible, buyer. . His Honor: If you want to vary the terms of the deed of settlement you might go to Parliament and get an Act or something of that sort. " Mr. Finlay: That is an expensive matter, your Honor. Mr- A. ...H. Johnstone, who appeared for the Public Trustee, said: he could find no precedent for a general power to sell, though there was ample proof that the trustees might come to the Court's approval of a definite scheme for disposal. He was convinced that something should be done in the case. Apparently a large part of the building was unlet, and there wa% an increasing loss, go that if things went on the property would "eat its head off-" It might, be useful to. the trustees if theyknew ;the Court would approve^a;suitable and definite .scheme for disposal if it was brought before "the Court. Mr. Thome, who appeared for some of the beneficiaries, said they were willing for an order for disposal being made. His Honor said he. would consider his judgment* and give-it in writing. . Saying that identification of the property, would prejudice it, Mr. Finlay asked that no names be published, and his Honor agreed.