PUBLIC TRUST

Dominion, Volume 27, Issue 306, 22 September 1934, Page 9

PUBLIC TRUST

Activities of Past Year

Reviewed INCREASED BUSINESS '■ I *. Development on Sound Basis ; Activities of the Public Trust Office during the year ended March 31 last are reviewed in its annual report, . tabled in the House of Representatives yesterday. In a foreward to the report the Prime Minister, Rt. Hou. G. , W Forbes, said the business at pre- ' sent dealt with by the department and the reserve of future business were both greater than at any earlier period in the history of the office, the future development of which, on a sound basis

was assured. The new business reported for administration during last' year amounted', to £5,408,043, representing the aggregate value of 2637 estates and funds, said Mr. Forbes. This was approximately the same volume, of business as that reported dui-ing the previous year. The total value of estates and funds under the administration of the Public Trustee on March 31 last was £60,700,493, representing aif Increase of £1,003,044 over the corresponding figure for the previous year. The actual increase in the volume of business dealt with was, however, greater than this comparison indicated, for there had been a further fall in the values of some classes of assets, and this had affected to some extent the business turnover.

V Expansion of Office, The expansion of the office over a period of 25 years was shown by the following table:— ip Value of Estates and Funds under Administration. > Year. 1909 £6,399,507 1914 £12,282,883 1919 £19,242.347 1924 £32,404,724 ~ ,1929 £48,334,790 . 1934 £60,760,493 “My belief that the future development of the business on sound lines is assured,” said Mr. Forbes, “is supported by the constantly increasing number of wills held on deposit for testators who have appointed the Public Trustee to act as their executor and trustee. During the year 3651 such wills were deposited with the Public 'Trustee, and the total number held increased from 79,555 to 81,403." Payment of Interest. .. The deputy of the Public Trustee, Mr. W. M. Barr, said that during the year many mortgagors engaged in sheep-farming operations had been able not only to pay current interest in full,’ but also to a portion of the substantial arrears which had accrued during the period of. depressed prices. Where, the mortgagor’s income had been insufficient to permit of liquidation of all the arrears as well as to provide for reasonable maintenance of the security, the Public... Trustee had met the-imortgngor by arranging for payment of tffe arrears of interest to be spreiid over a period of two or three years. “Unfortunately, there has been no Improvement in the prices received for dairy produce, but. it, is satisfactory to report that, notwithstanding this fact, less difficulty than might have been anticipated has been experienced with dairy farmers whose properties are mortgaged to the Public Trustee,” said

Mr. Barr. "This result is largely attri- * butable to the policy which was laid down some nine years ago, when it was decided that as many loans asjwssible on farming properties should be on a reducing basis, and borrowers who then obtained loans for the first- time ■or secured renewals of existing loans were encouraged to take them on instalment mortgages. The extent to which borrowers responded to this suggestion is evidenced by the fact that, out of a total of 1493 mortgages existing on dairying properties, no fewer than 942 are on an instalment basis. “During the year numerous applications for relief under mortgages to the Public Trustee have been considered by the Mortgagors’ Liabilities Adjustment Commissions and the Supreme Court. The number of cases in which orders for remission of arrears of interest have been made has increased considerably during the year. The improvement in the prices for meat and wool has, in,many cases, resulted in orders being made for payment of interest at the full rate and for liquidation of portion of the arrears out of the season's surplus income. Income of Mortgagors. "The provisions of the arrangement which was entered into between the Public Trustee and the leading stock companies for a pro rata distribution of the surplus income of mortgagors engaged in farming operations have been applied to many mortgages, and with few exceptions no difficulty has been experienced in carrying on mortgagors on this basis. Although minor points of difference arise from 'time to time, and a few stock companies have failed to apply the agreement, it may be said that the arrangement has proved most satisfactory in dealing with the affairs of many mortgagors under the conditions which haye prevailed during the past few years. The necessity for entering into a pro rata arrangement is, of course, not pressing where it Is clear that the improved prices received for primary produce will enable the mortgagor to meet all his obligations In full.” Dealing with the rural intermediate credit system Mr. Barr said the arrears owing to its board from time to time had been very small, and this excellent result was attributable largely to the careful attention given by the board’s officers to the supervision of the accounts.