PUBLIC TRUST OFFICE GROWING.

Star (Christchurch), Issue 19108, 28 June 1930, Page 29 (Supplement)

PUBLIC TRUST OFFICE GROWING.

NEW BUSINESS IN ONE YEAR REACHES RECORD. (Special to the “ Star.”) WELLINGTON, June 28. rhfc 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. In doing so, Mr Forbes referred to the forecast contained in a statement issued by his predecessor in office in July, 1929, to the effect that the value of new business obtained by the office during the year 1929-30 might possibly reach the sum of £8.000,000. and added that this forecast had been more than justified. The new business for the year now under review had reached the unprecedented total of £8,473,916, as compared with the total new business of £7,091,350 for the preceding year, which itself constituted a record. 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: 1925, £4.621,8691926, £4.651.447; 1927. £5,551,019; 1928, £3,511,928; 1929, £7,091,350; 1930, £5,473,916. As evidencing the rapid development of the office, it is interesting to note that the new business obtained during the year just closed exceeded by over £1,000,000 the total value of assets and funds under administration by the Public Trustee in the year 1910, which represented the accumulation of thirtyeight years’ operations by the office. The 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, w’hich was almost equal to the total \’alue of estates and funds under administration by the office in 1892, after twenty years of existence. Estates And Funds. On April 1, 1929, the value of estates and funds under administration by the Public Trustee amounted to £45,334,790. 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. The difference between the value of the new business accepted and the net increase for the year in the value of estates and funds under administration is accounted for by the realisation of assets and the distribution of the proceeds, and by the transfer of assets to those entitled, the office possessing special facilities for the prompt and efficient administration of the estates entrusted to it. As a result of the organisation which has been evolved /through long years of experience, the office is in an exceptional position to realise assets to the best advantage where such realisation is necessary or is desired by the beneficiaries. It is the practice of the Public Trustee to consult freely with beneficiaries and 'those entitled before disposing of assets in estates, and in cases where the conditions are unfavourable for, or the beneficiaries do not desire, realisation, the offiqe has special facilities for financing estates in order that realisation may be postponed to a more opportune time. Anything in the nature of a sacrifice of the assets is thus avoided. The 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, £20,860,656; in 1925, £35,570,642; and in 1930 £53,049,437. Proof Of Confidence. 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 ' he community in its work of administering estates and in the discharge of the other fiduciary duties entrusted to it. That the confidence and goodwill 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 the 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 wils are being added at the rate of more than 6000 a year. It is also known that many wills which nominate 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 the office will be called on to administer in the coming years can with confidence be said to be of very large volume. A marked feature of the business for the past year has been the extent to which testators have availed themf selves of the power of appointment of advisory trustees to co-operate with the Public Trustee in the administration of their estates. Under this system tne testator is able to avail himself of the long experience and special facilities of the Public Trust Office for the prompt and efficient administration of the estate and the safeguarding of the funds derived therefrom, and can at the same time associate with the Public Trustee in the management, a business associate, a fellow-farmer, family solicitor, or other trusted person whose knowledge and advice will be of value in dealing with any special assets comprised in the estate, such as a business, farm, or other venture, or with the general policy to be followed in the administration of the estate. The Public Trustee welcomes the appoint-

ment of advisory trustees, and the system has been found to work smoothly and with satisfaction to all parties concerned. Popular Lending Institution. . Turning to the other principal functions of the office—-namely, the advancing on mortgage of moneys derived Irom 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 of public importance, to 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. 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. Local Representation. For many years past, said Mr Forbes, the policy had 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 in the hands of the Public Trustee the general control and direction of th(* work and the 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.