PUBLIC TRUST OFFICE

Dominion, Volume 7, Issue 2162, 30 May 1914, Page 6

PUBLIC TRUST OFFICE

HON. A. L. HERDMAN REPLIES TO CRITICISM AN IMPROVED POSITION FURTHER CONCESSIONS COMING, (By Telegraph.—Press 'Association.) Christchurch May 29. Certain oriticisros of the Publio Trust Office mado by Mr. G. W. Russell, M.P., were referred to by tho Hon. A. L. Herdman, Minister in charge of tho Publio Trust Office, in the courso of his political address at Hawarden. Mr. Herdman said,that ho noticed by that morning's newspaper that Mr. Russell had been suggesting that since he (Mr. Herdman) took over tho control of tho Public Trust Office, it had been his earnest desire to manage it in the interests of tho lawyers of Now Zealand. It was quite an easy thing to make a oharge of-that description. They had first the fact that tho man in charge is a lawyer, anil it was not difficult to get tho public to believe such a statement as that made by Mr. Russell.. Ho (the speaker)-believed ho could supply convincing proof of tho fact that since he took chargo of the Publio Trust Office tho business of tho office had improved. Shortly before tho present Government took office,.the Public Service Commission, which was appointed by tho Mackenzie > Government, furnished a report in which reference was mado to the way in which the business of the office was being conducted, and alsp in respect to tho staffing of the office. Mr. Ell suggested , that there should be a searching inquiry, and other members on tho same sido of the Houso suggested that a thorough investigation should be made. As a result, Mr. Hosking, now Mr. Justice Hosking, and Mr. Alexander Macintosh, one of 'the finest business men ■ in the Dominion, and at ono time manager of the Bank of"Now Zealand, were appointed a Commission to inquire into the working of tho Publio Trust Office. ■ Two more competent men could .:not .-Jiave: been selected. Theso gentlemeninvestigated and duly reported, and in their report they made somo reference to tho legal part of the staff 'of the office.. . ■

Reconstruction of' Legal Work. j Mr. Russell' said that a legal bureau f fcxisWd. He (Mr. Herdman); thought ho jmade .a . mistako m tlio legal- bureau. j There w a legal branch, the duty of e the officers of ■ which was to see that the *■ work connected with tlio branch was ex- 1 peditiously dono. The branch ,did not i exist for tho benefit of. the public, except ] •is a branch of the Public Trust Office, and the'officers were jn the branch to do Public Trust Office business and no other T \ business. This work' of the officers 'of the branch was legal in character; because the Pnblio Trustee was charged with the administration of trust estates, and the business ho had to transact was of a legal character. If was, therefore, necessary that .he (tho Minister), being in. charge of the Public Trust Office, should see .that Jhe work was done properly and expeditiously, in the interests of } those who ontrustod their business to the ( Publlo Trustee. , 1 The Commission made some suggestion 1 as to the reconstruction of tho legal j 'branch, and with their recommendations he agreed, and ho was going to see that , the recommendations were earned out. ' The Commissioners disagreed with the ! centralisation of tho legal l work of tho < Public Trust Offico in Wellington, and i liqld that the legal work in connection with, say, tho Christchurch office, should ] be done by some legal firm attached to j the Christchnrch office. The desirable- , ness ot' that was obvious to, anyone with common sense.' If the people wanted a j cheap legal 'bureau established, Mr. 1 Hordmali went on, then so long as I am 1 in charge of the Publio Trust Offico it ; is not going to bo in connection with ) "that Department. It must be separate, ;j jind the legal branch of tho office must ] confine itself to tho business of those , who entrust their business to tho Public Trustee. It is charged against mo that I have been working against the interest of the Public Trust Offico. That is the suggestion of Mr. Euss-ell that I am ; working . in tho intorestg of my . professional brethren and. not in , the interests of the office. I hold • in my hand a report furnished to me, and when I read it I am convinced ' that you will be satisfied that tho charge ! made against mo is wrong anil erroneous, • and that on tho contrary, tho office has ' prospered during the past twenty ; months. An Interesting Report. This repiwt has' been handed to me by a responsible . officer. of tho Department." Tho office has received great impetus to its business through the passing of the amending Act of last session, and : when tho full benefit to be derived from ; utilising tho services of the official becomes more widely known, a considerable accession to tho estate business will result. The office now has two non-servico members on its board, Messrs. W. G. I'oster and G. Tolliurst. Tho former was appointed for his'experience in matters relating to farming' and Jivo stock, and tho latter for his skill in matters 'of banian" and finance. It is expected that the iiumenco of theso two members on the deliberations of tho board would have n, most beneficial rpsult on tho general .-business of tho office. Tho new Act provides for tho appointment, of advisory trustees, an entirely new departure, although tho' system is in veguo with tho • •English trustee. Frequently peoplo havo wanted to join some relative or friend with tho Pu])lic Trustee, but up to now they havo been u/iiable to do so. Other facilities given to, the public.aro.tho ability i to appoint: tho "Public Trustee a 'custodian trustee. That is to say,' ho can tako over any securities or money from tho managing trustee. Ho would not be concerned in tho joint administration of tho estate. Ho would simply reccivo funds T!rid. invest them-or, receive securities for F-nfo keeping. Tho' assistance of tho Public Trustee ;can nowbo invoked,Jo investigate and audits the assets of private trustees. Similarly, benoficiaries can appoint a solicitor or accountant to examjno the Public Trustee's>uccounts. -Perhaps ono.'of tho ,most, important lmprovef meats in the working of the-office is the granting to tho Public Trusteo the right to administor small estates—that is, those •under JJ-tOO— without obtaining -an order of the Court. that the estates , mf poor peoplo can'T>o administered by the ■ rublio Tnistee'most economically. A good many alterations were made lay tho new Act, but they are all of a technical character, and framed entirely with tho object of'making tho offico machinery run jnore smoothly. t i Mew Regulations. -. ' ! 'A new set of regulation's"is'trtfw being framed- (tho Minister said that tliey had been sinco framed) whereby 'further concessions will be given to people who do business with tho offico. These, regulations will provide for an increased rate of interest to beneficiaries in certain classes of estates, and they will reduce -tho office charge' for administration also in a number of cases. The offico is developing in all directions. No' doubt in the largo centres this is duo in a great measure to tho appointment ,of -one official representative to bo local Deputy Public Trustee, with powers, very little short in local estato administration'of tho Public Trustee himself. In tho smaller towns tho public Trusteo has his district managor, ' and oro long tho business will necessitate scmo of these being transformed into local Deputy Public Trustees. . . . "The business of tho office is enormous. On Maroh. 31, 1913,' thoro were 7909 estates and accounts in the offico of a total ■valuo of 11,208,311, and of this large total the Public Trustee actually hod investments for .£5,515,697. The figures for tho current year 1 are not available yet, but it is quite safe to anticipate that the totals will bo swollen by at least another--500 estates and accounts, worth another million or mOTO in value. Tho offico holds the wills of over 8000 living people and theso are being added to at the rate of over 1000 each year. Commissioners'. Report Valuable. "The report of the Commissioners has ■proved most valuablo to tho office, and M manv of tho .suggestions they made as is possible to adopt in tho short space of time had been adopted, and other reforms that-they indicated will be given effect to. The offico has done its best to copo with the great growth of the Department, and -the Government has assisted It

to tlio fullest extent by adding to and improving tho standing of tho staff.« It was iound that the work was such that higher salaries than are usually paid to civil servants had to be provided for a good number of tho staff. For tho year ended March 31, 1912, tho total sum of .L' 21.715 ■was paid in salaries, but as a result of investigations made for tho Government tho staff is considerably added to, and increases wctb given making up a total sahvry roll, of ;£27,330 per annum, and during next year further developments had to be mado involving total increases amounted to ,£2900. The total salaries tho Department paid for tho year ended March 31, 1913, amounted to .£27,330, whereas the salaries at tho present moment amount- to -C3t,GSO. The number of new appointments to tho staff during tho year 1913 was 45, comprising seven transferred from other Departments, two transferred from the temporary to the permanent staff, 25 cadets (new appointments), 10 typistes (new appointments), and one lift man at Aucklnad, whilo the resignations numbered 18." The Minister continued: "Yet you are told by Mr. Russell and other gentlemen who wander round about tho t country making these irresponsible and wild statements that I had deliberately attempted to block the business of tho office. I ask you whether tho statement of a resVot> siblo officer or Mr. Russell's statement is tod be believed, or whether you will accept these facts that 1 put before you."