THE PUBLIC TRUST

Greymouth Evening Star, 18 June 1930, Page 9

THE PUBLIC TRUST

ANOTHER RECORD YEAR.

The Prime Minister (the Hon. G. W. Forbes) has made available for publication some interesting figures showing the results of the operations of the Public Trust Office for the year ended March 31, 1930.

As exemplifying the remarkable and sustained growth of the office, the following list, which shows the value of new business in each of the past five years is of interest:—l92s, £4,621,869; 1926, £4,651,147; 1927, £5,551,019; 1928, £6,511,928; 1929, £7,091,350; 1930, £8,473,916.

As evidencing the rapid development of the office, it is interesting to noto that the new business obtained during the year just closed exceeded by over £1,000,000 tho total value of assets and funds under administration by tho Public Trustee in the year 1910, which represented the accumulation of thirty-eight years’ operations by the office. Tho figures for the month of March, 1930, were a still more striking illustration of the present-day growth of the office. During that month alone the new business amounted to £1,159,309, which was almost equal to tho total value of estates and funds under administration by the office in 1892, after 20 years of existence.

On April 1, 1929, the value of estates and funds under administration by the Public Trustee amounted to £48,334,790. By March 31, 1930, the total value of assets and funds under administration had risen to £53,049,437, representing an increase for the second year in succession of more than £4,000,000 in the value of estates and funds.

Tho following figures, which were supplied by the Prime Minister, reveal the exceptional and uninterrupted growth which has marked the operations of the office over the past thirty years. In 1900 the value of estates under administration was £2,192,594; in 1905 it was £3,577,355; in 1910 £7,358,947; in 1915, £13,580,936; in 1920, £20,860,686; in 1925, £35,570,642; and in 1930, £53,049,437. No more convincing proof, added the Prime Minister, could be given of the extent to which the office had succeeded in winning and retaining the confidence and trust of all sections of the community in its work of administering estates and in the discharge of the other fiduciary duties entrusted to it. That the confidence and good-will thus built up over a long period of years would be fully maintained and developed in the future, is guaranteed by the fact that the total number of wills held by tho Public Trustee in safe custody on behalf of living persons at March 31 last was no less than 68,253, representing estates of a present estimated value of £273,000,000, whilst new wjlls are being added at the rate of more than 6000 a year. It is also known that many wills which nominate i the Public Trustee as executor and trustee are held by solicitors, as well as by banks and similar institutions, so that the amount of assured business which tho office will be called on to administer in the coming years can with confidence be said to be of very large volume.

joj sssuTsnq eqi jo o.mjuoj pajpuin v the past year has been the extent to which testators have availed themselves of the power of appointment, of / advisory trustees to co-operate with the Public Trustee in the administration of their estates. LENDING INSTITUTION. Turning to the other principal functions of the office —namely, the advancing on mortgage of moneys derived from the estates under administration and not required for immediate distribution, the Prime Minister commented on the fact that the office has now become one of the principal sources to which borrowers of all classes look for the meeting of their financial needs. During the year under review, as in previous years, the office has made money available to local bodies for works -' nubl*c importance, 4 o the farming community for the acquisition and development of farm properties and for the discharge of existing mortgages thereon, to business men on the security of city blocks and premises, and to persons of all classes for the) erection or acquisition of dwellings in the principal cities and towns of the Dominion. New loans completed during the yeai’ amounted to a total of £4,216,590, whilst at March 31 last loans granted but not paid, or offered but not accepted, totalled £760,131, and further applications to an amount of £591,654 were under consideration at that date. A gratifying feature of the lending operations of the office is the increasing extent to which loans are applied for and granted on the long term instalment system, under which the cost to the borrowers is greatly reduced through the elimination of the recurring expense of valuation and the cost of mortgage documents, which are necessary when renewals of the loan are obtained at short periods. Moreover, the system provides an opportunity to the thrifty borrower to repay the loan by easy instalments over a long term of years. The scale of charges for the preparation of mortgage documents, which has always been on a moderate basis, was further reduced during the year under review, the concessions made being specially marked in the case of loans of moderate amount. As a statutory provision prevents the charging of any procuration fee for arranging a loan from the Public Trust Office, the cost of obtaining finance from this source is very moderate.

For many years past, said Mr Forbes, the policy has been actively followed of developing the local representation of the Public Trustee in the principal cities and towns of the Dominion, in order that as much as possible of the ■work of the office may be performed in close proximity to the beneficiaries and to the principal assets of the estates, whilst leaving on the hands of the Public Trustee the general control and decision of all questions of policy, or importance arising out of the administration of the estates. This system, which has greatly commended itself to those .who do business with the office, is constantly being extended. Throughout tho year, the Prime Minister added, every endeavour has been made to keep the working expenses of the office at a minimum, and the exceptional increase in the volume of business has not been accompanied by a corresponding increase in working costs. Consequently, although the full effect of the concessions granted in previous years by way of increased rates of interest, reduction in commission, and abortion of certain charges is now being felt, it has been possible during tho past year, in addition to reducing the fees for the preparation, renewal, or re-arranging of mortgages, to give further valuable concessions in the form of reductions in the scale rates of commission chargeable to estates. Each year for some time past this important matter has received very careful consideration. The present policy will be continued in the future, and as circumstances permit, further concessions will be made to beneficiaries and other clients of the office.