8.—9

2

As regards local bodies, tho principle adopted is that whilst willing to assist them by advances for necessary purposes such as sanitation, roads, bridges, &c, the Office will not make advances during war-time for unessential purposes such as buildings, gas or electric-light works, street-improve-ments, &c. 7. The total number of wills now deposited in the Office is 19,565, and the number deposited during the year under review is 5,257. 8. The total number of estates now in the Office is 13,632, and tho number that came in during the year under review is 2,734. Of those no less than 1,798 are soldiers' estates, which are being administered by the Office at a loss. Where the assets consist of only military pay no charge is made. Where they consist of military pay, plus other assets, no charge is made for military pay, and the scale charges are reduced by one-half in the case of other assets. Moreover, the Public Trustee has gratuitously placed all the branches throughout New Zealand at the disposal of the Defence Department for the purpose of inquiries, &c, relating to soldiers. 9. As foreshadowed in my last report, legislation has been passed providing for a bonus to estates in the common fund. For the year ended the 31st March, 1916, bonuses totalling £22,908 were distributed, thereby increasing by about | per cent, the rate of interest credited to estates. A similar bonus will probably be distributed for the year under review. 10. Large as are the office premises in Wellington, the business is fast outgrowing the accommodation they give, and tho necessity of extending them must soon be faced. 11. The office premises in Christchurch have never been satisfactory, tho frontage being too narrow to give sufficient light or accommodation. A new site has therefore been purchased at a cost of £2,000. It is a full quarter-acre at the corner of Armagh and Durham Streets, near the Supreme Court, the Magistrates' Court, and the old Provincial Buildings. A suitable office building will be erected as soon as the cost of material and labour returns to something near the normal, and meanwhile about £100 a year is being received in rent of a house which, owing to the size of the section, need not bi removed when the new building is put up. 12. I regret to say that Mr* Ruth erf urd, the Office Agent at Palmerston North, died on the 11th November, 1916. He has acted for many years, and always with perfect integrity and loyalty. His partner, Mr. Oonnell, was appointed Acting Agent pending definite arrangements being made. The Office interests in the Palmerston North district are very large, and the question of acquiring a site and establishing a branch is under consideration. Meanwhile Mr. Connell is performing his duty with complete satisfaction. 13. With respect to Masterton, complaints were made in the year 1914 that the Office Agent (Mr. Chonnells) had improperly trafficked in the lands of a Native whose estate had been administered by the Office during his minority. The Minister in Charge (the Hon. Mr. Herdman) instructed the Public Trustee to investigate the matter, The result of the Public Trustee's report was that the agency was abolished, and a branch established under the permanent Office staff. Mr. Chennells was acting personally, and not as Office Agent in the matter, but the public does not draw fine distinctions, and throughout the Masterton district the Office has been exposed to severe criticism. In my opinion a public inquiry by Commission should be held in order that the full facts may bo known. Since the establishment of the branoh the business has largely increased. It is at present being carried on in rented premises, but an excellent freehold site has been purchased at a cost of £2,100, and a building will be erected as soon as war conditions admit. 14. The Office accounts for the year will be laid before Parliament in due course. J. G. Ward.

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