PUBLIC TRUST OFFICE.

Poverty Bay Herald, Volume XXXI, Issue 10228, 10 December 1904, Page 2

PUBLIC TRUST OFFICE.

In New Zealand it is generally admitted that of the many experiments m State control of the larger concerns of the community tried by the colony few have been more successful than, the establishment of the Public Trust Office, an institution for the administration of wills of. trust properties, audi of properties not passing by will, audi for ordinary agency work, etc. Many appreciative notices have appeared m Australasian publications, and it is observed! that the success of. the Publio Trust Office has even attracted the, notice of tlie Independence Belge^aa influential Belgium paper.; The following is a free translation of extracts from the article m question, which may interest our readers : — ;

"It is known that m certain circles, not only m tlie British colonies, but m Europe, that the intervention of the State is frwly discussed and) those, who are opposed to its control have very frequently some curious and: inexadt ideas on • tlie subject. They say for example tliat the S^ate has egotistical pretensions, that it should not compete against private enterprise, and that m short its experiments are costly, and do not generally meet with success. This may be the case elsewhere, but m New Zealand it can be pointed out that' some Government institutions are ably administered, which prove undoubtedly that the public has confidence m them, and which have met with marked success. One of these is the Public Trust Office, which' was establdshed m 1872. Sir Julius Yogel proposed its establishment. His proposal caused considerable discussion m the colonial Parliament, but the Public Trust Office Bill, was unanimously approved "ol after a long and interesting debate. The Pflbtic Trust Office j» absolutely unique, its functions', are various, and New Zealand has been the first to establish an institution which accepts the responsibilities and the duties of an administrator. Very frequently persons who have been appointed! administrators, or' executors, cannot act. or perhaps refuse to do so, and) it is then that the Public Trustee acts if requested. The Public Trust Office also, acts as testamentary executor for anyone desiring it to do so, and becomes, according to law, •. the administrator of the estates of lunatics, except m. rare cases and only if the Supreme Court should decide otherwise, and it also becomes .executor of those who die without leaving a will. The Public Trust Office, which has the" strong support of. the State, undertakes the realisation of the various estates and, after paying all debts and usual charges, distributes the balance among tlie next of kin wherever they may be. It is the duty of the Public Trust Office to trace them and to satisfy itself as to their identity. H the next' of kin desire it the proceeds of the estate are invested to the' best advantage, either- on mortgage, of freehold) property or m State securities, but m al cases the interests .of the beneficiaries are scrupulously safeguarded. If the -Public Trust Office 'lias received no formal instructions regarding the ihr. vestment of funds then the Official Administrator—or Public Trustee — attends to the matter himself. The institution allows the beneficiaries interest at t he rate of A per cent on sums up to £3000, and 3£ per cent on amounts over and above this figure. Formerly those living m the colony, of persons. who were absent, or who intended 1 absenting themselves, experienced some difficulty m selecting a capable administrator, especially if the estates were -large ones. Furthermore the person who had) to select an executor worthy of confidence was often at a loss what to ' do. At the present moment, as far as New Zealand is concerned!, there are no difficulties m this respect.' The Public Trust Office undertakes the duties of administrator, or executor, if a private individual refuses to act, or if a suitable selection cannot -be made. It is therefore easy to understand that the office is much appreciated), and that its business extends year by year, another important reason being that the Public Trust Office offers it* clients the security of the State, not only for sums entrusted! to its care, but for interest as well. An institution whjch gives ah absolute guarantee for the safety of funds ■which are placed m its charge becomes popular, m a very short time. "The chargei-maae by the-Pniblic Trust Office^ are very moderate as, the Government has no desh-e to make a profit on the institution's operations. In fact m special circumstances, for example if the beneficiaries are m straitened' circumstances, the charges are reduced, although they are already- very reasonable. Last year 3314 transactions received the attention of the Public Trust Office, and the value of the estates, and of the lands, which were administered reached a sum of about three million pounds sterling. "It is quiW wife to predict a r>n>s>por»>tt 5 future for the Public Trust Office which is carefully administered and which has* the confidence of the public."