8.—13.

Branches. —The three branches are located one in each Auckland, Wellington, and Christchurch. Each is a collecting agency and also handles and is responsible for the supervision of repair and painting work to _ securities in its district, under certain limitations and conditions. The administration cost has been kept at a minimum. On the annual turnover at the branches the cost of the collection and supervision is as follows: — Per Cent. Auckland Branch Office .. .. .. .. 3• 1 Wellington Branch Office .. .. .. ..3-0 Christchurch Branch Office .. .. . • .. 3• 7 In assessing the costs of the branch offices provision is made not only for current expenses, but also for the writing-off within a period of four years of the capital costs of motor-cars used in the work of collection. Agencies. —There are eighty-two agencies in eighty towns throughout New Zealand. These agents are working under an agency agreement with the Office and were selected by the Department after careful inquiry as to their suitability for the special services required. Legal Representatives.— -There are sixty legal firms in fifty-nine towns and cities representing the State Advances Office. The policy of the Department has been continued so far as its legal work is concerned. The recognized legal representatives act for the Department in its generallegal work and also in the preparation of the securities, unless an applicant indicates a preference for his own solicitor to prepare the security in the event of a loan being granted to him by the State Advances Board. As a general rule the applicant's request in this matter has been acceded to. The costs of the legal services are in accordance with a scale specially referable to this Department. Field representation. —The State Advances Office has been acting in close co-operation with the Valuer-General, and through his office has representation in the eighteen valuation districts throughout the Dominion for its field-work. The work performed by the District Valuers has been of great assistance to this Office. In the absence of a permanent field staff it was found necessary to obtain this assistance in the present circumstances. B. YEAE'S ACCOUNTS. With respect to the year's accounts the following features are to be noted: — 22. The total amount advanced from the inception of the Office in 1894 up to the 31st March, 1935, was £75,878,207 13s. sd. Payments of half-yearly instalments, together with repayments in full to release securities, have to date totalled £34,622,506 15s. 4d., leaving a balance outstanding of £41,255,700 18s. Id. 23. The total losses from the inception amount to £885,396 os. 11d.,0r £l 3s. 4d. in every £100 of the amount advanced. This total does not include losses which may in fact exist but are not definitely ascertainable until securities are realized. 24. The percentage of arrears to the balance of advances outstanding at the close of the year was 6-196 per cent. 25. The total capital amounts to £44,229,509 Is. 3d., and the cost of management expenses is £70,171 125., being 0-159 per cent., or 3s. 2d. per £100 of the capital employed. 26. Mortgages and instalments of principal repaid during the year amounted to £1,671,591 10s. 27. The interest collected from all sources amounted to £1,991,578 Is. 5d., and the interest paid on loan-moneys was £1,652,376 13s. 9d. 28. Interest amounting to £40,294 Bs. Bd. was capitalized during the year. 29. The interest earned for the year on the Sinking Funds administered was :— £ s. d. Public Debt Sinking Funds .. .. .. .. 123,989 111 Advances Office Sinking Funds .. .. .. 95,340 0 7 30. The amount outstanding on Current Account at the 31st March, 1935, was £11,684 os. 2d.

2—B. 13.

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