The Ensign. MONDAY, MARCH 22, 1909. A LOST INHERITANCE.

Mataura Ensign, 22 March 1909, Page 2

The Ensign. MONDAY, MARCH 22, 1909. A LOST INHERITANCE.

The Duncdin papers.of Saturday i>ublisli a decision given by Mr T. Hutchison. 5..M., at Waikouaiti recently, in which lie renews the applications <>i an Did man ami his wile lor old age pensions and at the same time reviews certain circumstances in connection with the claims which are of such a nature that, the journals in question (in view of the state ol the law ol liliel, it is oxj plained) substitute initials lor names in publishing the text of the decision or judgment. It appears that the pensions would have been renewed in the ordinary course but lor a suggestion that the husband possessed money which would all'cet, his right to State aid. This caused the magistrate to make an investigation, which he says, and most people will agree with him. "discloses an extraordinary state ol things." It appears that the old man (who seems to have only a hazy idea ol the position of his affairs) derived under his mother's will in 18111 an annuity of .CI2O. but for years he had not handled il. It was received by a linn of solicitors who managed the estate for him. lie ashed for ami was luruished with accounts from time to time and Hie last (received ab.ml three years ago) showed him lo be in debt L'L'S.j. This indebtedness commenced in 1890, when he received an aihaiice ol JL'-I.j, and when he executed a mortgage of his annuity to one of the solicitors ill question to secure this i'to and further advances. These further advances wi-rv. the old man says, inconsiderable in amount, and while for twelve years the solicitors had received his annuity, amounting in the aggregate to over CHUD. yet he was still in their debt. "The matter obviously required ex planatiou." states .Mr Hutchison and accordingly the solicitor indicated was asked lo furnish one. Hoaltended to do.! so and handed in a written statement. 1 documents, deeds, bills of costs, etc.. from which the magistrate savs he is able to deduce tin- actual state ol tilings. The annuity of L'lL'O to which the old man became entitled ■■n lie death of his mother (in 189-1) was unfortunately assignable. Prior lo this he had become involved to the extent ol i'OOU with another party, to whom his sons (wdto were entitled to the capital producing the annuity on their father's death) assigned their reversionary iulerest in October. 189.3. to secure' this sum, lather and sons covenanting tu pay interest thereon at (i per cent, (compound), but as no payments have been made, the amount due for interest tar exceeds the principal .sum secured. ■ The pensioner says he hail no idea lie was signing such' au obligation, the solicitor (who was not, it should be noted, the same person who lent the t-'-lo ami subsequently managed the affairs of the old man) acting for both parties to the agreement and promising to safeguard the assignor's interests. Il was shortly after that he came, into business relationship with the legal gentleman who lent him the Clo on an assignment of the annuity by himsell and his son to secure this sum aml other advances. Apparently there was some diffidence shown in regard to producing this mortgage for the magistrate's inspection. When preparing the judgment Mr Hutchison had not seen it. Since then, however, it has been produced to the Kegistrar and. says the S.M., "1 can now understand the reluctance to produce this document. Although the deed recites the request and agreement to advance £-15 as, only £!)."> was paid. Interest, however, is'to he paid on the sum of £-15 5s and further advances and that interest is at the rate of Is per £ each three calendar months—in other words the interest is at the. rate of over 30 per cent, per annum." One. elfect of assigning the annuity was to put it out of the old man's power to pay interest on the £501) mortgage. Subsequently (.September. UK)/)) the old man assigned his interest in the annuity to his sou abso-■ I lutcly. the son underlaking' to provide for the lather's "decent, moderate sustenance," but later (May. 1900) a deed was executed by the father and son bv which the former discharges the hitter of this obligation. Meanwhile the old man's property and that of his wile was transferred by bills of sale to yet another party and apparently nothing is finally lelt lor Hie old couple but State aid. The magistrate says the sou is represented lo hint by the solicitor as "a . thoroughly respectable young man. I most anxious to assist his father," but who really on domestic accounts cannot ' do so. If this be so, then whal. he asks, l,a. s become „j the money. 1. The pensioner's ■ legal interest in his annuity has gone, 1 but the question is still pertinent it ■ was to answer il that the solicitor, who , stales that he is anxious to conceal nothing relating to the old people's affairs, produced the statemoits and bills of costs. These statements oiilv ..»<> . back to 1901'. leaving the six preceding; years from 189(>, during which the solicitor was in receipt of the pensioner's annuity, wholly unaccounted for; but those produced sufficiently answer the question, says Mr Hutchison. 'The linn of solicitors have got the money. He proceeds to detail the manner in which

the solicitors' charges are made up. •Discussing" matters, sometimes verv trivial, forms the staple, of the bills. "Indeed," it is added. " •discussing' as a pretext lor charging takes a wide range. The receipt of a key, or a doctor's diagnosis, or the merits of the \ lavi treatment come within its ambit. Compared with such charge,; lees tor inspecting houses seem to be. if unprofessional, almost justifiable; but charges—and large charges—for the receipt of the very money assigned to the solicitor (for so I understand repeated charges of 'attendance re remittance not otherwise charged, £1 lie 6d'), hare no pretence of justification." What possible justification there could be for other charges, which are referred to by Mr Hutchison, lie says "it would be hard to imagine." One hill for £32 17s 8d ''appears to be entirely charges for letters, interviews and discussions for the purpose of assuring creditors of the

pensioner's inability to pay them anything." The magistrate states in bo ninny words tliiit it is by such charges ami methods that the old man's inheritance lias been absorbed and argues that it is :i perfectly obvious deduction that the provision made for him and his wife lias been exploited lo the lull by the solicitors. He cannot find that the pensioner lias been guilty of any fraud, "and for the rest it is no part of my function in this investigation to pronounce upon others or to state my conclusions upon the matter. Such observations as I have made above are made because criticism was invited and 1 was asked to observe that 'a lot of work had been done.' The result is that the pensions will be renewed, but it is a strange situation that a man lias to come upon the State for the support of his old age while a firm of solicitors is battening upon the provision made f«r him for that purpose by his relatives." Tho Dunediu 'Star' suggests that the case calls for the notice of tho Law Society. 'Calls" is too mild a term. It howls for the fullest publicity and, if the magistrate's deductions are correct, for the most exemplary punishment.