GOVERNMENT ADVANCES TO SETTLERS OFFICE (REPORT BY THE SUPERINTENDENT OF THE) FOR THE YEAR ENDING 31st MARCH, 1908.

Appendix to the Journals of the House of Representatives, 1908 Session I, B-13

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1908. NEW ZEALAND.

GOVERNMENT ADVANCES TO SETTLERS OFFICE (REPORT BY THE SUPERINTENDENT OF THE) FOR THE YEAR ENDING 31st MARCH, 1908.

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

FOURTEENTH ANNUAL REPORT AND BALANCE-SHEET. This year has again proved a record greatly in excess of any previous year for the amount of business transacted, the applications numbering 3,183, amounting to £1,668,135, as against 2,420 applications, amounting to £999,461, for the previous year, an increase of 763 applications, for £668,674. The advances actually granted during the year numbered 2,371, for £1,197,416 9s. lid., which exceeds those of the previous year by 442, for £429,686 ss. 4d. The Board had up to the 31st March, 1908, authorised 22,456 advances, amounting to £8,003,930. Applicants to the number of 2,573 declined the grants offered them, amounting to £1,065,980, so that the net advances authorised to the 31st March, 1908, numbered 19,883, and amounted to £6,937,950. Classified according to provincial districts, the total advances authorised to date are: — Number of Amount of Advances Provincial District. Applications. authorised. Auckland ... ... ... ... ... 5,482 1,707,283 Taranaki ... ... ... ... ... 3,301 1,450,549 Hawke's Bay ... ... ... ... ... 1,113 320,275 Wellington ... ... ... ... ... 5,659 2,085,678 Marlborough ... ... ... ... ... 676 279,860 Nelson ... ... ... ... ... 284 90,415 Westland ... ... ... ... ... 468 115,280 Canterbury ... ... ... ... ... 1,911 603,115 Otago and Southland ... .. ... ... 3,562 1,351,435 Total ... ... ... ... 22,456 £8,003,930 Classified according to provincial districts, the advances authorised during the year ended 31st March, 1908, are :— „ , » Amount of Advances Provincial District. Applications. authorised. Auckland ... ... ... ... ... 883 321,510 Taranaki ... ... ... ... ... 381 221,930 Hawke's Bay ... ... ... ... ... 62 24,960 Wellington ... ... ... ... ... 826 424,600 Marlborough ... ... ... ... ... 87 53,255 Nelson ... ... ... ... ... 42 19,215 Westland ... ... ... ... ... 122 35,705 Canterbury- ... ... ... ... ... 303 135,770 Otago and Southland ... ... ... ... 249 118,505 Total ... ... ... ... 2.955 £1.355.450

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The advances outstanding are as follows :— -.- , Amount. Number. „ s d Not exceeding £1,000 ... ... ... 10,822 2,842,227 13 7 Exceeding £1,000 but not exceeding £2,000 ... 764 1,052,595 5 3 Exceeding £2,000 but not exceeding £3,000 ... 127 291,197 3 10 Total ... ... ... 11,713 £4,186,020 2 8 The average amount of the advances now outstanding is £357. , T , Amount. Number. n s d On freeholds 7,010 3,154,546 16 4 On leaseholds ... ... ... ... 4,528 938,151 3 11 On freeholds and leaseholds (combined) ... 175 93,322 2 5 Total ... ... ... 11,713 £4,186,020 2 8 The average freehold advance is £450, the average leasehold advance is £207, and the average freehold and leasehold (combined) is £533. The'advances granted during the year ended 31st March, 1908, are as follows : — , T , Amount. Number. £ g d Not exceeding £500 ... ... ... 1,587 404,595 411 Exceeding £500 but not exceeding £1,000 ... 504 366,567 4 6 Exceeding £1,000 but not exceeding £2,000 ... 250 349,760 0 6 Exceeding £2,000 but not exceeding £3,000 ... 30 70,494 0 0 Total ... ... ... 2,371 £1,197,416 9 11 The average amount of the advances granted for the year is £505. XT , Amount. Number. £ s . d. On freeholds ... ... ... ... 1,465 818.455 5 7 On leaseholds ... ... ... ... 883 357,431 3 4 On freeholds and leaseholds (combined) ... 23 21,500 1 0 Total ... ... ... 2,371 £1,197,416 911 For the year the average freehold advance is £558, the average leasehold advance is £405, and the average freehold and leasehold (combined) is £935. Sixty-seven per cent, of the advances made during the year was for loans not exceeding £500. The total sum raised by the Government on debentures for investment on mortgage is £4,110,000. Eleven thousand seven hundred and thirteen mortgagors are now indebted to the Department to the extent of £4,186,020 2s. Bd. in respect of principal moneys, an increase during the year of 676 mortgagors, amounting to £631,412 19s. sd. The gross profits for the year ended 31st March, 1908, were £55,772 7s. 4d., and the cost of management and expenses of the Department £7,323 6s. Id., being OTB per cent., or 3s. 7d. per £100 on capital employed (the cost of the previous year was 0"14 per cent., or 2s. Bd. per £100). This increase is owing to the mortgages being completed by the office practically free of cost. The net profits amounted to £51,385 2s. 4d., an increase on the previous year of £6,413 9s. 9d., notwithstanding the large concessions granted to the mortgagors. As predicted in last year's report, the item " Loan-flotation Charges " has been cleared from the balance-sheet, the amount having been written off out of profits. A sum of £17,206 has been added to the sinking fund established under section 27 of "The Government Advances to Settlers Act, 1906," bringing the total amount standing to the credit of that account to £23,659 appropriated out of profits. Mortgages under " The Land Transfer Act, 1885," and further charge mortgages are prepared and completed in the office at a nominal cost, including disbursements, of ss. About 1,650 mortgages have been so completed. It is estimated that by this change a saving to mortgagors of fully £10,000 per annum in legal costs and fees will be effected. In addition to much time and trouble saved, far greater expedition will be given to the completion of loans, and much labour and expense saved to the Department. Sixteen freehold and eleven leasehold securities have for various reasons been realised by the Department up to the present time. In most cases fairly good surpluses over and above the advances owing to the Department have been obtained and refunded. In no case has a loss been made, and the Department has at the present time no securities on its hands. There is, however, one small loan which is not satisfactory and may ultimately result in a loss for the first time, but it is premature as yet to predict what may be the result. Negotiations are now proceeding with .a view to the property being taken over by another person. Mortgagors continue to meet their half-yearly payments of interest and .principal in a manner creditable to themselves and. highly satisfactory to the Department. The total amount of interest collected for the year amounted to £172,060 6s. lid., an increase on the previous jear of £26,988 16s. sd. The total amount of interest collected to the 31st March, 1908, amounts to the sum of £1,215,931, in addition to the repayments of principal £2,571,335,

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making a grand total of £3,787,266, besides a large sum for insurance premiums, fees, &c, without any loss having been incurred, at the same time the average amounts collected being only about £9 10s. of principal and interest combined. Compared with former years the increase in the volume of business transacted has during the last twelve months been very marked, and the staff are to be commended for the efficient and expeditious manner in which they have carried through the extra pressure of work involved. P. Heyes, Superintendent. Government Advances to Settlers Office, Wellington, 28th March, 1908.

ADVANCES TO WORKERS BRANCH. First Annual Report and Balance-sheet. The Government Advances to Workers Act was passed on the 29th October, 1906. Applications for loans were first considered by the Board at its meeting on the Bth January, 1907, and up to the 31st March applications for loans to the number of 1,310, and amounting to £351,610, were received. Up to the 31st March, 1908, the" Board had authorised 1,179 advances, amounting to £296,305. Applicants to the number of forty-five declined the grants offered them, amounting to £10,545, so that the net advances authorised to the 31st March, 1908, numbered 1,134, and amounted to £285,760. Classified according to provincial districts, the advances authorised are as under : — vr y. f Amount of Advances Provincial District. . ~_ ~ authorised. Applications. ~, Auckland ... ... ... .'.. ... 289 71,270 Taranaki ... ... ... ... ... 36 8,570 Hawke's Bay ... ... ... ... ... 69 17,435 Wellington ... ... ... ... ... 268 69,280 Marlborough ... ... ... ... ... 39 8,900 Nelson ... ... ... ... ... ... 22 4,785 Westland ... ... ... ... ... - ... 71 14,580 Canterbury ... ... ... ... ... 258 71,160 Otago and Southland ... ... ... ... 127 30,325 Total ... ... ... ... 1,179 £296,305 The advances outstanding are as follows : — Number. Amount - , £ s. d. On freeholds ... ... ... ... ... 729 198,285 15 8 On leaseholds ... ... ... ... ... 28 4,870 0 0 Total ... ... ... ... 757 £203,155 15 8 The average freehold advance is £272, and the average leasehold advance is £174. The advances granted during the year ended 31st March, 1908, are as follows : — Number. Amount ' . i s. a. On freeholds ... ... ... ... ... 750 198,848 2 2 On leaseholds ... ... ... ... ... 30 5,130 0 0 Total ... ... ... ... 780 £203,978 2 2 For the year the average freehold advance is £265, and the average leasehold advance is £171. The total sum raised by the Government in debentures for investment on mortgage is £205,000. Seven hundred and fifty-seven mortgagors are now indebted to the Department, to the extent of £203,155 15s. Bd., in respect of principal moneys. As provided by the Act, all mortgages are prepared in the office free of cost to mortgagors, and the work has been done in a most satisfactory manner and without difficulty. The Profit and Loss Account shows a debit balance of £661 18s. 9d., an increase on the previous year of £228 7s. 7d. The explanation of this increase is due to the fact that of the money advanced on mortgage during the year 67J per cent, was issued during the last six months, with the result that the source from which the Department looks for revenue was considerably curtailed, whilst the interest payable on the loan-money received for investment had to be provided for. At the end of the financial year the Department will, in addition to the interest received and accrued from investments made during the ensuing twelve months, have received a full year's interest on the sum (£203,155 15s. Bd.) advanced as at the 31st March, 1908, and at the same time the management and office expenses will not be increased. The time will then have arrived when the income will be sufficient to cover the expenditure and to yield a profit. The debit balance may, therefore, be considered to be in the nature of preliminary expenses necessarily incidental to th* initiation of what is practically a new business. P. Heyes, Superintendent. Government Advances to Settlers Office, Wellington, 28th March, 1908.

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BALANCE-SHEET. Statement of Liabilities and Assets at 31st March, 1908. Liabilities. Assets. £ s. d. £ s. d. £ s. d. £ s. d. 3-per-cent. loan, re- Investment Account— deemable Ist April, Advances on mort--1945, "A" .. 1,500,000 0 0 gage .. .. 6,754,704 8 0 3-per-cent. loan, re- Less repayments .. 2,574,088 5 9 deemable Ist April, 4,180,616 • 2 3 1945, "B" .. 500,000 0 0 Mortgage instalments receivable—overSundry loans .. 1,130,000 0 0 due .. .. .. .. 2,753 0 0 Advances on account Interest receivable—overdue .. .. 10,517 5 9 of loans .. .. 880,000 0 0 Interest receivable—accrued .. .. 42,121 810 4,110,000 0 0 Bill receivable .. .. .. 234 9 1 Accrued interest payable on deposits .. 20 3 8 Office Furniture Account .. .. 67 4 4 Accrued interest ] ayable on account of • Cash in hand and in bank 4,149 8 8 loans .. .. .. .. 11,210 1 8 Less cheques not presented 3,022 19 1 Reserve Fund .. .. .. 50,000 0 0 1,126 9 7 Sinking Fund .. .. .. 23,659 0 0 Suspense Account .. .. .. 35,108 19 8 Profit and Loss Account .. .. 7,437 14 10 £4,237,435 19 10 £4,237,435 19 10 Government Advances to Settlers Office, Wellington, 2nd June, 1908. P. Heyes, F.S.A.A., Eng., Superintendent. W. N. Hinchlifpe, Accountant.

Examined and found correct, subject to the remark that the Sinking Fund shown as a liability has not been established by being set apart from the moneys of the Advances to Settlers Account and accounted for as a separate fund, the moneys required for such Sinking Fund not having been paid out of the Advances to Settlers Account, as directed by section 22 (e) of the Act. J. K. Warburton, Controller and Auditor-General.

Statement of Profit and Loss Account for the Year ended 31st March, 1908. Dr. £ s. d. On. £ s. d. To Management Expenses Account .. 7,323 6 1 By Balance at 31st March, 1907 .. 2,936 1 1 Balance at 31st £ s. d. Interest Account, gross profit* .. 55,772 7 4 March, 1907 .. 2,936 1 1 Net profits for the year ended 31st March, 1908 .. 48,449 1 3 51,385 2 4 £58,708 8 5 £58,708 8 5 Transfer to sinking fund .. .. 17,206 0 0 Balance down .. .. .. 51,385 2 4 Balance loan-floiation charges written off .. .. .. .. 26,741 7 6 Balance net profits carried forward .. 7,437 14 10 £51,385 2 4 £51,385 2 4

Statement of Interest Account for the Year ended 31st March, 1908. Dr. £ s. d. £ s. d. [ Cb. £ s. d. £ s. d. To Interest paid on loans 112,313 11 0 By Interest received on Less accrued interest at mortgages .. 172,060 6 11 31st March, 1907 .. 5,706 5 6 Interest received on' 106,607 5 6 bank balances .. 70 010 Interest paid on deposits 47 18 8 172,130 7 9 Less accrued interest at Less interest overdue and accrued at 31st March, 1907 .. 20 4 7 31st March, 1907 .. .. 51,130 0 1 27 14 1 , Accrued interest payable on deposits at 121,000 7 8 31st March, 1908 .. .. 20 3 8 Interest receivable— £ s. d. /SBWj Acorued interest payable on loans at Overdue at 31st - '•• 31st Maicli, 1908 .. .. .. 11,210 1 8 March, 1908 .. 10,517 5 9 '.'■"" ■ Interest refunded to mortgagor .. 1 10 0 Accrued at 31st Balance of interest gross profits trans- March, 1908 .. 42,121 810 : ' ferred to Profit and Loss Account .. 55,772 7 4 52,638 14 7 £173,639 2 3 £173,639 2 3

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Statement of Management Expenses Account for the Year ended 31st March, 1908. Dr. £ e. d. Cb. £ s. d. To Advertising.. .. .. .. 4 10 0 By Consent fees .. .. .. 21 11 6 Audit Department .. .. .. 200 0 0 Production fees .. .. .. 268 18 6 Insurance premiums paid by Department 45 5 1 Release fees .. .. .. 325 19 8 Postages and telegrams .. .. 449 8 3 Valuation fees .. .. .. 4,852 11 7 Post Office services .. .. .. 625 0 0 Balanoe transferred to Profit and Loss Printing and stationery .. .. 447 4 4 Account .. .. .. .. 7,323 6 1 Eegistration and search feeß, &o. .. 160 13 5 Salaries .. .. .. .. 3,655 0 0 Clerical assistance .. .. .. 1,434 10 8 Sundries .. .. .. .. 11l 11 1 Valuation Department — £ s. d. Fees .. .. 4,659 4 6 Agency work .. 1,000 0 0 5,659 4 6 £12,792 7 4 £12,792 7. 4

Statement of Receipts and Expenditure for the Year ended 31st March, 1908. Dr. Receipts. £ sd. Cr. Expenditure. £ s. d. To Cash in hand and in bank at 31st By Advances on mortgage .. .. 1,197,416 911 March, 1907 .. .. .. 12,268 15 6 Advertising .. .. .. 410 0 Bills Becoivable Account .. .. 234 2 0 Audit Department .. .. 200 0 0 Consent fees .. .. .. 21 11 6 Insurance premiums paid .. .. 530 12 4 Insurance premiums refunded .. 485 7 3 Interest on loans .. .. .. 112,313 11 0 Interest on bank balances.. '.. 70 0 10 Interest on deposits .. .. 47 18 8 Interest on mortgages .. .. 172,060 611 Interest refunded .. .. 110 0 Mortgages and instalments repaid .. 568,654 10 11 Office furniture account .. .. 67 4 4 Production fees .. .. .. 269 15 0 Postages and telegrams .. .. 549 8 3 Registration and searoh fees, &c. .. 1,050 2 7 Printing and stationery .. .. 447 4 4 Release fees .. .. .. 325 19 8 Post Office services .. .. 625 0 0 Sundries .. .. .. 80 14 4 Production fees refunded .. .. 016 6 Suspense Aocount .. .. 62,657 0 3 Registration and search fees, &c. .. 1,210 16 0 Temporary advances on account of - Salaries .. .. .. .. 4,255 0 0 loans .. .. .. .. 550,000 0 0 Clerical assistance .'. .. 1,434 10 8 Valuation fees .. .. .. 5,064 16 7 Sundries .. .. .. 192 5 5 Workers branch refunds —proportion Suspense Account .. .. 47,648 6 10 of charges .. .. .. 700 0 0 Valuation Department— £ s. d. Fees .. .. 4,659 4 6 Agenoywork .. 1,000 0 0 5,659 4 6 Valuation fees refunded .. .. 212 5 0 Cash in hand and in Bank at 31st March, 1908 .. .. 1,126 9 7 £1,373,943 3 4 £1,373,943 3 4 Government Advances to Settlers Office, Wellington, 2nd June, 1908. P. Heyes, F.S.A.A., Eng., Superintendent. W. N. Hinchlifpe, Accountant. Examined and found correct.—J. K. Warburton, Controller and Auditor-General.

WORKERS BRANCH.—BALANCE-SHEET. Statement of Liabilities and Assets at 31st March, 1908. Liabilities. £ s. d. Assets. £ a. d. Advances on account of loan .. .. 205,000 0 0 Investment Account— £ s. d. Accrued interest payable on aooount of Advanoes on mortgage .. 209,468 2 2 loan .. .. .. .. 1,524 13 2 Less repayments .. 6,325 4 4 Suspense Aocount .. .. .. 8,743 0 7 203,142 17 10 Mortgage instalments receivable overdue.. 12 17 10 Interest reeeivable overdue .. .. 51 14 11 Interest receivable accrued .. .. 1,390 15 0 Cash in hand and in bank 10,262 3 3 Less cheques not presented 254 13 10 10,007 9 5 Profit and Loss Aooount .. .. 661 18 9 £215,267 13 9 £215,267 13 9 Government Advances to Settlers Office, Wellington, 2nd June, 1908. P. Heyes, F.S.A.A., Eng., Superintendent. W. N. Hinchlipfe, Accountant. Examined and found correct.—J. K. Warburton, Controller and Auditor-General. 2—B. 13.

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Statement of Profit and Loss Account for the Year ended 31st March, 1908. De. £ s. d. . Cr. £ s. d. To Balance at 31st Maroh, 1907 .. .. 433 11 2 By Interest Account gross profits .. ..... 597 6 8 Management Expenses Aocount .. 825 14 3 Balanoe .. .. .. .. 661 18 9 £1,259 5 5 £1,259 5 5

Statement of Interest Account for the Year ended 31st March, 1908. Db. £ s. d. £ s. d. Cb. £ s. d. £ s. d. To Interest paid on loans .. 1,875 12 1 By Interest on mortgages .. 2,375 12 10 Less accrued interest at 31st Interest on bank balanoes 27 18 4 Maroh, 1907 .. .. 168 15 4 2,403 11 2 1,706 16 9 Less interest acorued at 31st March, 1907 17 4 6 Accrued interest payable on loans at 31st — March, 1908 .. .. .. 1,524 13 2 2,386 6 8 Balance of interest —gross profits trans- Interest receivable overdue at 31st Maroh, ferred to Profit and Loss Account .. 597 6 8 1908 .. .. .. .. 51 14 11 Interest receivable accrued at 31st March, 1908 .. .. .. .. 1,390 15 0 £3,828 16 7 - £3,828 16 7

Statement of Management Expenses Account for the Year ended 31st March, 1908. Db. Receipts. £ a. d. Cb. Expenditure. £ a. d. To Advertising .. .. .. 85 18 3 By Consent fees .. .. .. 110 Printing and stationery .. .. 53 19 0 Production fees .. .. .. 413 6 Postages and telegrams .. .. 100 0 0 Release fees .. .. .. 2 7 6 Salaries .. .. .. .. 600 0 0 Valuation fees .. .. .. 693 2 6 Solicitors' costs .. .. .. 419 8 Balance' transferred to Profit and Loss Sundries .. .. .. .. 014 4 Account .. .. .. .. 825 14 3 Valuation Department .. .. 681 7 6 £1,526 18 9 £1,526 18 9

Statement of Receipts and Expenditure for the Year ended 31st March, 1908. Db. Receipts. £ a. d. 1 Cb. Expenditure. £ a. d. To cash in hand and in bank 31st March, j By Advertising .. .. .. 85 18 3 1907 .. .. .. .. 15,444 0 8 Advances on mortgage .. .. 203,978 2 2 Consent fees .. .. .. 110 Insurance premiums paid .. .. 019 11 Insurance premiums refunded .. 019 11 Interest on loans .. .. .. 1,875 12 1 Interest on bank balances .. .. 27 18 4 Printing and stationery .. .. 53 19 0 Interest on mortgages .. .. 2,375 12 10 Postages and telegrams .. .. 100 0 0 Mortgages and instalments repaid .. 6,312 6 6 Registration and searoh fees, &c, paid 398 1 7 Production fees .. .. .. 413 6 Salaries .. .. .. .. 600 0 0 Registration and search fees, &c, re- Solicitors'costs .. .. .. 6 2 2 funded .. .. .. .. 398 1 7 Sundries .. .. .. .. 10 6 Release fees .. .. .. 2 7 6 Suspense Account .. .. .. 25,827 12 6 Solicitors' costs .. .. .. 12 6 Valuation Department .. .. 681 7 6 Sundries.. .. .. .. 0 6 2 Valuation fees refunded .. .. 28 16 0 Suspense Account .. .. .. 33,354 12 1 Cash in hand and in bank 31st March, Temporary advances on account of loan 185,000 0 0 1908 .. .. .. .. 10,007 9 5 Valuation fees .. .. .. 721 18 6 £243,645 1 1 £243,645 1 1 Government Advances to Settlers Office, Wellington, 2nd June, 1908. P. Heyes, F.S.A.A., Eng., Superintendent. W. N. Hinchliffe, Accountant. Examined and found correct.—J. K. Warburton, Controller and Auditor-General Approximate Cost of Paper. —preparation, not given; printing (2.000 copies), £5 7s. Od.

By Authority : John Mackay, Government Printer, Wellington.—l9oB. Price 6d.]

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