PUBLIC TRUST OFFICE

Bay of Plenty Times, Volume LIV, Issue 9026, 4 November 1925, Page 5

PUBLIC TRUST OFFICE

THE YEAR'S OPERATIONS. The annual report ©n the Public . Trust .Office shows that the business of the office has again shown a large and gratifying increase. The number oi new estates accepted was 3023, valued at £4,621,869, as compared with 2739 estates, valued at .£3,781,155, which were accepted during the previous year. The new business obtained during the year just closed exceeded that of the previous year b}’ almost £1,000,000. The value of the estates and funds under administration on March 31, 1925, was £35,570,642 —an increase for the fourth consecutive year of over £3,000,000. The following brief table shows clearly the remarkable growth of the office business since 1890; Estates and Funds under Year Administration. £ 1890 1,240,098 1895 1,562,269 1900 2,192,594 1905 3,577,355 1910 7,358,947 1915 13,580,936 1920 20,860,686 1925 35,5/0,642 Since the year 1910 the business has increased almost fivefold. Decreased Expenditure, Although during the past four years the value of estates and funds under administration has increased at a rate exceeding £3,000,000 per annum the expenditure for the year 1924-25 was considerably less than it was four years previously. For the years, 1920-21 to 1924-25 the expenditure excluding depreciation, was as follows: £ 1920- 226,103 1921- 202,13 f 1922- 178,707 1923- 180,643 1924- 197,687 The increase for last year as compared with the previous year is accounted for very largely by the increase in salaries of the staff resulting from the general re-grad-ing of the Public Service. During the past five-yearly period the value of estates and funds under administration by the Public Trustee has increased by nearly £15,000,000 whilst the expenditure has decreased by nearly £30,000, ; notwithstanding the fact that owing to statutory increases each year and the general regrading of the staff last year the salaries vote has very considerably increased during the period named. This excellent result has been achieved only by the exercise of the strictest economy in every department of the office work. The Year’s Profits. The total revenue for the year amounted to £299,439, as compared with £257,623 for the preceding year. The considerable rise in revenue, accompanied by a comparitively small increase in expenditure, has resulted in a profit of £90.522 on the year’s working, as compared’ with a profit of £65,542 earned in the previous year. It is to* be noted that this profit has been made after providing for all the expenditure which an ordinary commercial undertaking would have to meet, including the Payment of income tax and allowance for depreciation of plant and buildings. The following table showing the profit earned in each of the past five years is interesting:— 1 £ 1921 10,691 1922 1.1,053 1923 58,700 1924 65,542 1925 90,522 Assisting Development. The important part played by the Public Trust Office in providing finance for the development of the country generally has been specially exemplified during the past year, when, owing to the removal of the restrictions imposed by the moratorium, there has been considerable difficulty in obi tabling requisite finance. The effect of the Mortgages Extension Acts was to render “broad-acre” security- unacceptable to a large number of private lenders, who sought other avenues of investment for their moneys. The passing of the Mortgages Final Extension Act, 1924, led to a great demand for money on the part of those, who desired to adjust their finances, and the assistance given bv the Public Trust Office has proved most valuable to the farming community generally. During j the year the new money advanced 1 to borrowers was £3,180,533. of | which £1.880,987 was advanced on j mortgage r-n freehold land—chief- j ]y country properties—and £791,-

287 was lent to local bodies for the carrying out of works of pub.ic utility. The balance of t.ho total amount advanced was invested in securities of a miscellaneous nature. such as Government deben- - tv.res, etc. i -The total amount, of funds invested at March 31. 1925. was €22.106.190 including T 14.255.120 . advanced to private borrowers and , £5.832.542 lent tc public bodies. " Concessions to Clients. Large as is the present business * of the office, there is abundant evideuce that it will be still further increased in the near future. The liberal policy which has been pursued by the office in making concessions U) clients by way of reducr tion of fees, and the providing of . additional services without charge, , has resulted in attracting a large amount of prospective business in the form of wills held on depositon behalf of living testators. The growth in this department of the office work has been remarkable. The number of wills held for safe custody on March 31 last was 44,- 1 102, the now wills deposited during the year having amounted to 4420. At the present time new wills are being received for deposit at the rate of from 400 to 500 per month, and iu addition it is known that many wills in which the Public 5, Trustee is nominated as executor are held by banks and solicitors. It is therefore evident with- : in the next few years a large I amount of lucrative business must 5 come to the office for administrar lion. One feature which has add- . cd to the popularity of the wills- . for-depesit business is the provision : which was incorporated in the Pub- , lie Trust Office Amendment Act, . 1913, permitting the appointment 5 of advisory trustees to co-operate with the Public Trustee in the administration of an estate. This prevision has been largely availed of by farmers and by business men who have desired to obtain the benefit of administration by the Public Trustee, but who have at 3 the same time wished to associate : with him in the management of the 7 estate a person possessing intimate F knowledge of the details such as a . business of farming associate, family solicitor’ or banker. It is desired to draw special at--3 tention to the reply of the Public - Trustee to certain criticism which 7 has been levelled against the Coni- - mon Fund of the Public Trust - Office. Much of the criticism has t been based on misconception of i the true nature of the fund, and F the Public- Trustee’s statement is a j vindication of the principles on 1 which the fund is established and - a demonstration of the security 1 which it has afforded to estates durt mg the recent difficult times F through which the country has been passing. Generally it may be stated with r I confidence that the office is thoroughly and efficently equipped for y the transaction of the work con- - nectod with the administration of - estates and trusts. The system of - decentralisation has been fully def veloped, making for promptitude s of administration, and all adequate I safeguards have been introduced s to see that the control of the Pub--3 lie Trustee is fully maintained 1 and 1 the interests of clients and bene--7 ficiaries safeguarded. The new i business in view is very large, and . the future of the office business is 3 assured. | Tauranga an,d Te Puke. x The report contains the follow - . ing references to Tauranga and Te Puke; Tauranga.—The Office business has steadily increased in the Tauranga and Te Puke districts generally, and the public are becoming much more conversant with the excellent administration and economical work of the Public Trust' Office, and appreciating the value they obtain by placing their busi- 1 j ness with the Public Trustee. ( Development and general condilions; Although the conditions in this district affecting the farmers and land developments have somewhat improved during the year, J and the present season has been a fairly good one for the dairy-farm- j ers, owing to the high values paid I for their properties by the farmers \ generally there is still considerable stagnation and financial difficulty among the farming community. The prospects of advancement of the Tauranga District should be enhanced when the construction works now in progress in the district by the Public Works Department- and local bodies are completed within the next three years. Loans; During the period under j review all the local bodies in the j district have approached the Public i Trustee for their financial requirejraents. and loans approximating j £90,000 have been granted to the I local bodies. Numerous applica-

tions for loans by farmers have been .dealt with, but the great nia- > jority of applications could not show a sufficient margin of Government security to warrant further action. Out of the small percentage sent for consideration a number were approved—approximately .£5,000. Wills: The number of wills obtained totalled thirty-seven, of value over £90,000. Finance: Payments of interest and sinking, funds by local bodies through the Tauranga Agency amounted to approximately £9,120. Estate realizations, rents, and valuation fees totalled £5,276. General: The public have at all times received prompt attention and courtesy at the Agency when desiring information or advice in reference to any Pubic Trust Office ( business, and beneficiaries in es- | rates being administered have been l treated with consideration, and assisted in any difficulty, Te Puke Sub-Agency. —The Te 1 Puke Sub-Agency has been regujlarly visited during the summer 1 mouths of August to March—twice 1 a month on sale days, and once a {month during, the winter months. The same attention to publicity as outlined in the Tauranga report has been pursued at Te Puke, and the public are becoming more interested in the work of the Public Trust Office as affecting them person ally. I Genera 1 conditions: The same , remarks as an plied to Tauranga are applicable to tAe farming community T ,1 -' Te Puke disfrot. A number of n, 3 farmers are faced with troubles, and Oldit difficult to 'mr a -sound position , Wills- Tl' m -I, a- of -iffi '!cctired -uas ebb. ' ” valu© amounfing t ’ 2.-,0"7 an. increase of over -000 ’■« lir(V vious vear. cl SONS EUCAr -PTT T \CT will cure an *?»."• ,'1 is unsurpassa. ' finality an' rived of action.