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RECEIVERSHIP AND LIQUIDATION OP CERTAIN COMPANIES, 14. As a result of the report of the Commission set up by the Government, the Public Trustee was, in pursuance of the Companies (Temporary Receivership) Act, 1934, appointed as receiver and manager of certain companies as set out hereunder:— The Investment Executive Trust of New Zealand, Ltd. The Sterling Investments Co. (New Zealand), Ltd. The Investment Securities Association, Ltd. The British National Investment Trust, Ltd. The New Zealand Shareholders Trust, Ltd. Wynwood Investments, Ltd. The Pacific Exploration Co., Ltd. Farms and Farmlets, Ltd. The First Mortgage Freehold Securities Company of New Zealand, Ltd. The Transport Mutual and General Insurance Co., Ltd. Y. B. Mclnnes and Co., Ltd. Alcorn Trower and Co., Ltd. By the terms of the Act the receivership was to continue pending completion of an investigation into the affairs of the companies concerned, in accordance with the Companies (Special Investigations) Act, 1934. The investigation was duly made by Inspectors appointed by the Government, and as a result it was decided to wind up the above companies, with the exception of Wynwood Investments, Ltd., and the First Mortgage Freehold Securities Company of New Zealand, Ltd. In respect of these two companies the Public Trustee continues, in the meantime, to act as receiver and manager, pending a decision as to their future. Moreover, in addition to the companies enumerated in the above schedule, it was decided by the Government to wind up the following companies: Auckland Provincial Town Properties, Ltd. New Zealand Freeholds and Buildings, Ltd. Freeholds Ltd. The Government's decision was brought into operation by the Companies (Special Liquidations) Act, 1934—35, under which the Public Trustee was appointed Liquidator of the companies mentioned therein. The Act was deemed to come into operation on a day to be specified by the Governor-General by Proclamation issued in the Gazette. The Proclamation was duly issued on the 16th April 1930, anci from that date the Public Trustee has undertaken the duties of Liquidator. A great deal of work was involved during the period in which the Public Trustee acted as Receiver, but this has been greatly increased by his appointment as Liquidator m all but two cases. A large amount of inquiry" and investigation into the position of each company has been necessary, and the work is proceeding systematically and as quickly as circumstances permit. In view of the large additional duties involved it became necessary to set up a special staff to deal with the matter. INVESTMENTS FROM THE COMMON FUND. 15. Lending Operations. After a long interval during which no applications tor loans were entertained, there has been a resumption of lending on mortgage of farm lands and city properties. In common with other large financial institutions, difficulty was experienced during the year in finding suitable investments for moneys falling into the Common Fund. In normal times most of the moneys held in the Common Fund are invested in Government securities local bodies' loans, and mortgages. During the past year, however the Government ceased accepting moneys for investment in inscribed stock' and debentures. Local-body borrowing was restricted and, although every effort was made to attract borrowers, the unsettled conditions and the fact that other investors were also actively seeking mortgage investments made it impossible to obtain a sufficient number of suitable securities to absorb all the funds available. There has, however, been a steady flow of applications for loans both on rural securities and town properties, although few have been for loans of

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