INVESTMENT OF TRUST FUNDS.

New Zealand Herald, Volume XLI, Issue 12546, 13 April 1904, Page 5

INVESTMENT OF TRUST FUNDS.

DIFFICULTY WITH THE PUBLIC TRUSTEE.

[BT TELEGRAPH. —PRESS ASSOCIATION.] Gisbohxs, Tuesday. As important discussion with regard to the Harbour Board trust fund? took place at the meeting of the Board yesterday afternoon. When the Gisborno harboui works were stopped some 15 years ago, the unexpended balance oi the loan, amounting to £100,000, was placed by Parliament in the hands of tho Public Trustee for investment. The Board has continued to pay tho London bondholders 5 pat cent, interest on the loan, while it lias derived from tho Trustee only 3£ per cent and under for the money iu hi' hands. The loss to the ratepayers ot the district ha: thus been £1200 and upwards pair annum. To rectify that position an Act ,wat passed last session giving the Board authority to recommend the Trustee suitable investments for tha money, and in accordance with the Act, the Public Trustee was recently notified by the Board that ho had £89,000 of the Board's funds ready for loans at a higher rat© than per cent. The Hoard thereupon invited application for lean, from local people desirous of obtaining money at the rate of five per oent. From the applications received, investments totalling £26,0QC were recommended to the Trustee for acceptance, but to the Board's surprise intimation has been received stating that it wa' impossible to conside. these applications, as the Trustee had very little funds at present available. The Board expressed considerable indignation at the reply. Apart from th fact that tho money would be utilised on sele security for the development of the distriot, the Board is suffering a direct loss of £1200 per annum through money being invested at 5£ per cent, when 5 pei cent, can be obtained locally. The opinion was expressed that the money had been loaned to the Government at the lessei rate, and in view of the injustice being done -to the district it wa,' suggested that the Sup rem. Court should be moved in the mattei. l f was, however, decided to write k the Public Trustee for Jin explanation.