THE MACARTHY ESTATE

Otago Witness, Issue 3212, 6 October 1915, Page 85

THE MACARTHY ESTATE

POWERS OF PUBLIC TRUSTEE. WELLINGTON, September 28. In the Supreme Court to-day the registrar read the judgment of Mr Justice II os king in an originating summons Public Trustee v. Attorney-general, in the matter of the estate of the late Thomas George Macarthy. The case is of importance to the general public, since, through the charities to which the properties pass at the death of the widow, the public has a reversionary interest in the estate, which is of very great value.

In this case certain questions were asked by the Public Trustee, as executor of the will of the late Mr Macarthy; with reference to some- advances made out of public trustee’s account on behalf of the deceased’s estate. Two advances, amounting to £40.000, were made in payment of estate duty under “The Death Duties Act, 1909,” and other advances, aggregating £7300. were made for the erection of new buildings on vacant land belonging to the estate, and another advance of £IOOO was for the erection of a new bottling store in connection with the brewery that forms part of the estate. The questions asked wore: —(1) Had the Public Trust Office or the Public Trustee, under sections 37 or 38 of “The Public Trust Office Act, 1908,” power or authority to advance and pay out of the pub be trustee’s account the sums mentioned for and on account of the estate without obtaining an order of a judge of the Supremo Court autboris’ng him to do so? (2) Had the Public Trustee, ns executor of the will, power, under section 29 of the Act. or under the will of the deceased, to borrow money on the security of the deceased’s property without obtaining an order of the judge of the Supreme Court authorising him to do so? (5) Does section 21 of “The Public Trust Office Amendment Act. 1913,” limit the general powers of the public trust under section 37 or 38 of the Act of 1908. or does section 21 merely require the consent of the court (or of a judge) to authorise the expenditure of any sum not exceeding £SOO when such expenditure cannot lawfully be incurred without the consent. of the court (or of a judge) ? His Honor answered the first question as follows: —“Yes; under section 37, as to nil the advances, and under sections 37 or 38 as to the death duties.” As the Public Trustee had not borrowed money, the second question, he said, eonlel not bo answered in the sense in wlr'eh it was put. but for tlm advances made under sections 37 and 38 no order of the court or of a judge authorising the Public Trustee to make these advances was necessary. As to the third question, section 21 did not limit the general rowers of the Public Trustee under sections 37 and 38.