PUBLIC TRUST OFFICE (REPORT RELATING TO THE).

Appendix to the Journals of the House of Representatives, 1899 Session I, H-12

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1899. NEW ZEALAND.

PUBLIC TRUST OFFICE (REPORT RELATING TO THE).

Presented to both Houses of the General Assembly by Command of His Excellency.

The Public Trustee to the Hon. the Colonial Treasurer. Sir,— Public Trust Office, Wellington, 14th April, 1899. I have the honour to inform you that since my last report on this office, in 1897, its business has increased satisfactorily. The accounts which have been furnished under the provisions of the office Acts show the position of the office from year to year better than anything I can say. It is extremely satisfactory to be able to report that, notwithstanding the fall in interest, the general complaints as to the difficulty of finding satisfactory investments, and the fact that many of the old securities which were bearing a higher rate of interest than that ruling now have fallen in, the earnings of the office have been such as enabled it to maintain the rate of interest hitherto paid to its clients in respect of moneys in the common fund. This rate can still be maintained. But little difficulty has been found in investing the office funds on satisfactory securities, and the reports I have received as to the various properties mortgaged to the office justify me in stating that I have no anxiety with regard to our mortgage investments, except in two cases, in one of which there is a possibility of damage to the security by flood, and in the other, although I believe the office would lose nothing, it might take a little time to realise. The interest, however, in both cases has been regularly paid, and I see no reason to anticipate any default being made. The amounts involved are small. The conduct of the officers has, on the whole, been satisfactory, but two years' further experience confirms all that I stated in my last report as to the inconvenience arising from the present offices, and I beg to repeat all that I then said. They are inconvenient, expensive, and unsatisfactory in every way, and I feel bound to urge the necessity of change. The necessary money can be readily found by the office without expense to the country. Suitable sites in the city are every day becoming more difficult to acquire; and all that is necessary is that the clause in the draft Bill attached to my last report should become law. The work done by the office is steadily increasing. Much of this is quite unremunerative, and is such that a private institution would not undertake. It is necessary to be done, however, by somebody, and, although it is a positive loss to the office, it has to be carried through. I allude particularly to the large number of small intestate and lunatics' estates; but I cannot suggest any means by which it can be avoided. On the other hand, work that the office has to do, and for which it is not remunerated, was alluded to in my last report, and I would again bring it under your notice, with a view to having the necessary alterations in the law made. That the public confidence in the office is increasing is shown by the increased number of estates which are voluntarily placed under its care ; but perhaps the most satisfactory evidence of this is the fact that 742 persons now living have appointed the Public Trustee the executor of their wills, and have deposited those wills for safe custody with him. Wherever there has been any prospect of business being done an agency has been opened, and there are now thirty-four agencies in the colony. Of these, seven have been opened within the last two years, and inquiries are being made with the view of opening others. For the purposes of comparison I continue the tables previously published to the end of the last financial year. The work of the West Coast Settlement Eeserves is going on smoothly, and fresh land is from time to time being taken up. I do not anticipate that there will ever be complete satisfaction either on the part oi the Natives or the European tenants, because the Natives will not be content unless they can convert their land into money, and the Europeans will not be content until they can convert their leaseholds into freeholds. Small difficulties must of necessity occasionally arise, but I have not received of late complaints of any importance. I—H. 12.

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There is one question as to which I think the Europeans certainly suffer under a grievance— that is, with regard to the question of fencing as between themselves and lands in the occupation of the Natives. The Natives in a great number of cases will not by their labour contribute to the erection or repair of boundary-fences, and the law directs that their income is to be protected from being attached by any legal process. The European fences the land, and as he knows that he will have to do so when he applies for his lease, I do not think he has cause of complaint here; but the Natives' pigs and cattle constantly destroy or injure the fences, and the tenant is practically without redress. I have recently placed the position before you, and again bring it under your notice, as the matter is one which it seems to me requires legislative action. The administration by the Public Trustee of the Native lands naturally interferes with the business of Native agents, solicitors, and would-be speculators, and I have some reason to believe that any feeling of discontent on the part of the Natives is made the most of by interested Europeans. Some trouble has occurred during the past two years with the Natives, and they created on two occasions disturbances. The first of these was caused by a purely Native squabble, one class of Natives claiming the occupancy of a certain piece of land whilst another set were in occupation. The dispute was one of many years' standing, and the Natives not in possession did as they had done on more than one occasion previously —broke down fences and destroyed some crops. I believe this dispute is now finally settled by the issue to each Native of a license to occupy his particular portion of the reserve, and no trouble is likely to recur. The other occasion was of a more serious nature. The Natives trespassed on and did injury to lands of European tenants. I do not think any person can say with any degree of certainty what was the real cause which led to this trouble. I reported to you fully at the time. Since then I have visited a great number of the reserves and Native settlements, and could obtain no evidence of any well-founded complaints. At many of the settlements individual Natives had complaints, but in almost every case, on going into the matter, I found what was desired was some personal benefit to the complainant, which he was to obtain at the expense of the other Natives interested. With a view to encouraging the Natives to occupy and cultivate holdings for themselves, I issue a license to occupy to any of them who desire it, so that they obtain for their exclusive occupation as a home an amount of land proportionate to their interest in the reserves, the only condition attached to their holding being that they must personally occupy and not sublet; that they pay the rates, keep fences in repair, and keep down noxious weeds, &c. For this occupation each Native is debited with the annual value of the land he occupies as against his share of rent ; otherwise he would be drawing his full share of rent and, in addition, be obtaining the sole occupancy of part of the land reserved for the general use of the hapu. The Native reserves other than the West Coast Eeserves are a source of considerable trouble. The titles are in many cases difficult to ascertain, and it sometimes happens that it is almost impossible to say whether a piece of land is or is not vested in me under the Native Eeserves Act of 1882. In other eases certificates of title or Native Land Court orders have been issued to Natives for portions of reserves as if the Natives were the absolute owners. In turn the Natives have dealt or attempted to deal with the land, and the result has been a considerable amount of litigation, past and pending. There are a great number of Acts dealing with these reserves, and I submit for your consideration whether the time has not arrived for a consolidating statute. In compliance with your request I have made inquiries as to opening a safe-deposjt business in connection with this office. The office is already prepared to receive, and does receive, deeds and papers for custody, but no guarantee is given against loss or destruction by fire or otherwise. The office undertakes as a gratuitous bailee only. To undertake to receive deeds, valuables, or goods for custody the office would require a proper building. This would cost an enormous sum, and I feel confident that the business done would never pay interest on the money expended. It would be necessary to have properly constructed buildings at each of the four centres in the colony. People here have not the jewels and other valuable personal effects which they have in older countries; the banks and solicitors take charge without expense of documents for safe custody, and I cannot see the least prospect of such an addition to this office paying, or being really of much use to the public. If, however, the Government decides that the department shall have a building of its own, the possibility of a safe-deposit department in connection with it should be borne in mind when the plans are prepared. I propose to make some closer inquiries personally into the business of the safe-deposit companies in Australia and elsewhere, and I will communicate with you subsequently upon what information I can gather. I have, &c, The Eight Hon. the Colonial Treasurer. J. C. Mabtin, Public Trustee.

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Revenue and Expenditure of the Public Trust Office for the Year ended 31st December, 1893; for the Fifteen Months ended 31st March, 1895; and for the Years ended 31st March, 1896 to 1899.

Income of the Public Trust Office Year by Year, from 1892 to 31st March, 1899.

Year ended 31st December, 1893. Fifteen Months ended 31st March, 1895. Year ended 31st March, 1896. Year ended 31st March, 1897. Year ended 31st March, 1898. Year ended 31st March, 1899. BXPBNDITUKE. Salaries Jommission to agents clerical assistance and auditing ... jegal expenses stationery, printing, and office requisites Miscellaneous Jnauthorised Deficiency in realisation of mortgages Balance, being excess of revenue £ s. A: 5,858 3 8 1,466 5 10 £ s. a.J 8,571 15 111 1,348 8 8 £ s. d. 7,438 8 1 538 4 1 £ s. d. 7,719 6 10 739 2 10 £ s. d. 7,673 10 9 728 14 10 £ s. d. 7,889 7 7 1,102 15 3 984 7 4 519 13 6 410 11 8 690 19 i\ 261 13 3 542 8 7 278 13 0 503 6 0 244 3 0 229 12 9 272 1.1 6 244 0 4 323 3 1 3,566 2 4 373 4 7 990 8 0 4,523 19 0! 412 19 6: 506 2 4 3,508 10 7! 12 11 7 379 0 6 3,390 1 3 89 3 7 408 2 3 3,627 9 7 254 18 7 560 13 3 4,122 0 0 443 2 10 2,041 6 8 340 4 9; 1,272 4 8 180 7 4 488 0 6 1,940 4 3 1,162 11 8 1,221 11 4 4,766 9 2 4,014 17 7 Ebvenub. 15,132 6 7 19,229 11 1 15,242 14 10: 14,500 12 8 17,933 0 11 19,137 8 10 Jommission and charges interest in excess of amount credited to estates ... 8WG° ... tliscellaneous jOAt!0 ... Balance, being excess of expenditure ... 5,299 15 8 7,369 10 9 2,027 6 11 7,197 9 10,163 6 1,868 15 1 7 5 6,513 11 7.560 7 1,168 16 3 2 5 6,898 15 6,376 5 1,225 12 5 2 1 8,274 14 8,647 11 1,010 15 6 0 5 9,802 18 8,473 11 860 19 6 1 3 435 13 3 15,132 6 7 19,229 11 1 15,242 14 10' 14,500 12 8 17,933 0 11 19,137 8 10

Class of Estates. Year ended 31st December, 1892. Year ended ,| Mn SS° fln , Year ended Year ended Year ended 31st Decem- . .2"+ m-",, 31st March, 31st March, 31st March, ber, 1893. 1395 1896 - 1897 - 1898 - Year ended 31st March, 1899. intestates .. Wills, Trusts, Sinking Funds, &o. ileal and Lunatics .. STative Reserves iVest Coast Settlement Reserves .. Vliscellaneous & s. d. 1,695 18 8 £ s. d. 1,341 5 3 £ s. a. 1,615 7 7 I £ s. d. 1,494 15 91 1 £ s. d. 1,642 6 9] £ s. a. 1,877 14 4 £ s. d. 2,380 2 1 1,872 15 1 513 15 G 492 2 9 1,871 7 i 477 19 9 682 14 8 i 2,275 10 1 839 1 9 731 0 4! : 1,555 17 9 524 5 5 628 5 6 2,115 12 0 545 0 1 536 0 2 2,959 19 9 521 16 6 567 3 1 3,645 18 2 810 18 11 575 2 5 743 3 8 594 18 6 711 11 3 2,242 4 4 1,264 17 2 2,340 7 7 1,569 8 6 1,909 14 9 1,345 U 9 1,939 16 9 8,124 7 6 6,376 5 2 1,361 10 0 1,997 6 3 1,265 11 11 1,986 4 3 interest 5,912 14 2 6,177 7 7 12,090 1 9 14,001 0 0' 7,327 2 7 7,369 10 9 9,066 4 6 10,163 6 7 7,682 7 8 7,560 7 2 9,285 9 11 8,047 11 0 10,663 17 9 8,473 11 1 Total income Total expenditure 14,696 13 4 15,132 6 7 19,229 11 II 17,289 6 10: 15,242 14 10 1 :14,902 15 0: 14,500 12 8 18,569 14 3 17,933 0 11 13,471 19 7 19,137 8 10 16,314 3 7

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Capital Funds of the Public Trust Office, and how Invested, from 1893 to 31st March, 1899.

Number and Estimated Value of Estates in the Public Trust Office. The following was the number and estimated value of estates in the Public Trust Office on the 31st December in each of the years 1892 and 1893, and on the 31st March in each of the years 1895 to 1899:—

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On 31st Dec, 1893. On 31st March, 1895. On 31st March, 1896. On 31st On31sfc March, j March, 1897. ! 1898. On 31st March, 1899. The capital funds of the Public Trust Office amounted to Of which the amount held in cash at credit of the Public Trustee's Account was ... £ 615,663 £ 668,937j £ 774,538 £ ■ 858,638 £ 961,638 £ 956,153 21,326 12,101 16,960 16,664 48,667 13,512 Leaving a balance invested of... 594,337 656,836 757,573 841,974 912", 971 942,641 The investments consisted — Of those made by the Public Trustee out of the common fund, and amounting to Of those made by the Public Trustee for estates, and amounting to Of those made by other trustees of properties afterwards transferred to the office 406,220 |l44,198 358,296 259,279 492,788 206,629 588,483 205,942 631,816 251,643 653,710 264,296 43,919 39,261 58,156 47,549 29,512 24,635 594,337 656,836 757,573 841,974 912,971 942,641 The capital funds invested were applied to investments — In Government securities of the colony, to the amount of In local bodies' securities, to the amount of... In mortgages of real estate, to the amount of In fixed deposits, to the amount of... In companies, to the amount of 300,108 2,067 289,680 630 1,852 295,108 1,839 354,933 444 4,512 319,108 1,839 432,455 354,108 1,839 482,206 251,708 7,839 651,160 380 1,884 160,308 12,839 766,371 1,689 1,434 4,171 3',821 Total 594,337 656,836 757,573 841,974 912,971 942,641

Number of Estates. Class. On On On 31st Dec, 31st Dec, 31st March, 1892. 1893. 1895. Ou. On 81st March, 31st March, 1896. 1897. On 31st March, 1898. On 31st March, 1899. Wills and trusts (including sinking funds accounts) Intestates' estates.. Real estates Lunatics'estates .. Native reserves West Coast Settlement Reserves Unclaimed lands 354 371 392 447 466 493 538 84.5 117 202 101 293 868 117 271 102 293 850 113 335 103 293 812 781 91 86 434 510 107 112 293 293 52 86 797 84 558 112 293 76 821 79 507 115 293 138 Total 1,912 2,022 2,086 2,236 2,334 2,413 2,491 Jue of Estates. Class. Ou Ou 31st Dec, 31st Dec, 1892. 1803. On 31st March, 1895. On On 31st March, 31st March, 1896. 1897. On 31st March, 1898. On 31st March, 1899. Wills and trusts (including sinking funds accounts) Intestates' estates.. Real estates Lunatics' estates Native reserves West Coast Settlement Reserves Unclaimed lands .. £ 442,671 £ 543,239 £ 586,814- £ 673,478 £ 744,742 £ 789,162 £ 865,446 81,650 22,706 40,380 346,499 350,839 84,436 23,465 51,278 348,500 400,000 80,287 22,462 72,706 350,000 450,000 86,132 14,686 73,995 350,000 600,000 8,662 88,751 11,161 88,133 355,000 600,000 10,376 97,U0 10,572 85,890 355,000 600,000 12,550 133,409 8,414 111,793 357,500 620,000 13,754 Total .. 1,284,755 1,450,918 1,562,269 1,806,953 1,898,163 1,960,814 2,110,316j

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The Government Loans to Local Bodies Sinking Fund. (Placed under control of Public Trustee by Section 5 of " The Government Loans to Local Bodies Act Amendment Act, 1892.")

Amounts received by the Public Trustee.

"The Government Advances to Settlers Act, 1894," Debenture Sinking Fund. Statement showing Principal Moneys paid over to the Public Trustee, and Amounts Withdrawn for reinvestment.

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During the Year ended 31st March. From Consolidated Fund. Transferred from Land Assurance Fund. Net Income from Investments. Total Keceipts during each Year. .893 .894 .895 896 .897 898 899 £ s. a. 14,000 0 0 20,528 19 7 11,406 13 7 13,384 18 0 14,960 1 10 16,496 3 8 17,866 7 8 £ s. d. 7,015 11 9 4,494 1 5 3,802 4 6 4,461 12 7 4,986 14 0 5,498 14 6 5,955 9 2 £ s. d. 1,058 16 0 2,148 0 7 2,958 3 3 3,651 3 11 4,477 3 5 5,942 8 3 £ s. d. 21,015 11 9 26,081 17 0 17,356 18 8 20,804 13 10 23,597 19 9 26,472 1 7 29,764 5 i Total 108,643 4 4 36,214 7 11 20,235 15 5 165,093 7 8

During the Year ended 31st March. Amounts received by Public Trustee from Superintendent. Net Income from Investment withdrawn by Superintendent. Amounts of Principal withdrawn by Superintendent for Reinvestment. Balance at Credit on 31st March in each Year. .896 .897 .898 ,899 £ s. 3,369 12 23,843 17 71,187 19 104,473 0 d. 7 6 8 2 £ s. 20 17 435 1 2,112 5 1,177 8 d. 3 7 3 0 £ s. a. £ a. 3,369 12 27,213 10 98,401 9 31,589 16 a. 7 1 9 1 171,284 13 10

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Statement showing, Year by Year, from 1886 to the 31st March, 1899, the Capital of the Public Trust Office, and how Invested, and the Income and Expenditure of the Office.

I-g I 111 «§! s? : §8 1 i I i || a "3 5 a ■§*> -a I 3 a "So J5 S ill 1 I |S& 8 J ill 1 o SoSaa « gg3 S d ■i> a a=s a <a d M 0 * |! ! isjliffl o ° >,o >,Sg o a a 2 a.2 a Sα ftfto'3*'3 »'o i||slHl OOOaOrj-q O "JD rH Offl O _ -l-i O SSSsSSSJR »3 fQ "o ki *& "»3 "3 "o "o "3 "o "o "3'o "o

Approximate Cost of Paper. —Preparation, not given; printing (1,875 copies), £5 ss.

Price 6d.] By Authority : John Mackay, Government Printer, Wellington.—lß99.

Capital of the Public Tbust Office. Income of ublic Tbust Office. Invested Total. Invested in Total Expenditure of Office. In Gash. In Investments. x early I Increase Total - ! Decrease in For Common Fund. "i»~—"j ■ ' By By Public Former Trustee. Trustees. Specially. Total. ±11 vet Total Common „ , Ftmd Govern LoCal Mort " and ""I 6 ™" Bodies ' gages of Special. J a . Securi- FreeS f uri " ties. holds. ties. Fixed i Shares Deposits j in in : CoinBanks, panies. Commission, Charges, &o. Surplus Interest on Investments. Total. Total. Amount. 1 £ Year ended 81st Dec, 1885... 6,983 1887... 8,315 1888.. : 14,254 1889 .. 964 1890...; 14.966 1891... 17,920 1892... 15.960 1893...! 21,326 Fifteen months! 12,101 ended 31st; March, 1895 Year ended 31st ■ 16.960 March, 1896 Ditto, 1897 ... 16,664 „ 1898 ... 48,667 £ 267,526 301/226 366.886 462,782 478,895 505,349 551.101 594.337 656.836 £ £ Increase. 274.509 32,455 309,541 1 35,032 381,140 71,599 463,746 i 82,606 493,861 1 80.115 528,269 29.408 567,061 43.792 i 615.663 48.602 668,937 ' 53,274 ; £ 182,610 194.261 204.857 216,943 198,622 252,279 408.281 406.220 358,296 £ £ 72,366! 12,550 87.190 19.775 113,649 48,380 195.592 50.247 232,486! 46.787 208,188 44,882 96.072 46,798 144,198 43,919 259,279 39.261 £ 84,916 106,965 162,029 245.839 279,273 253.070 142,870 188.117 298.540 £ 267,526 301.226 366,886 462,782 478,895 505,349 551,101 594.337 656,836 £ 151,336 172,336 220,436 219.208 199.208 188,608 269.608 300.108 295.108 £ 1,907 1,907 1,607 2,274 2,174 2,067 2.067 2.067 1,839 £ 114,183 126,978 144,783 181,107 215,909 253,070 276,893 289.680 354,933 £ 100 5 60 59,792 60,001 60.319 1,449 630 444 £, 401 1,603 1,285 1,584 1,852 4,512 £ 267,526 301,226 366,886 462,782 478,895 505,349 551,101 594.337 656,836 £ 7,097 6,178 7.208 8.528 6,081 5.471 5,913 7,327 9,066 £ 2,884 3,735 4,012 5.799 3.080 4,308 6.177 7,370 10,163 £ 9,981 9,913 11,220 14,327 9,161 9,779 12,090 14,697 19,229 £ 8,995 8,406 8,653 9,145 8,469 ( 2 )14,001 ( 3 )15,132 ( 4 ) 17,289 757,573 774,533 J 105,596 492,788 206,629 ■ 58,156 264,785 757,573 319,108 1,839 432,455 4,171 757,573 7,682 7,560 15,242 ( 5 )14,902 841,974 912,971 858,638 1 84,105 961,638! 103,000 Decrease. 956,153 5,485 588,483 631,816 205.942 47,549 251,643 29,512 253,491 281,155 841,974 912,971 354,108 251,708 1,839 7,839 482,206 651,160 380 3,821 1,884 841,974 912,971 8,124 9,285 6,376 8,648 14,500 17,933 ( 6 )13,569 013,472 „ 1899 ... j 13,512 942,641 653,710 264,296 24,635 288,931 942,641 160,308 12,839 766,371 1,689 1,434 942,641 10,664 8,473 19,137 ( 8 )16,314