§ Mr. TOUCHEasked the Secretary to the Treasury if he can state whether the Public Trustee pays full brokerage to members of the Stock Exchange who act for him or does he share the commission with the brokers; and, if the latter, is the estate credited with the rebate?
§ Mr. HOBHOUSEThere is a distinction made between cases of sale and those of purchases made for investment. The 2265W Public Trustee is authorised by the Treasury under the statutory fees order to make a charge of ½per cent. for the trouble and responsibility involved in making an investment, and out of this he pays the stockbroker. His office, therefore, gets the benefit of any commission returned. In the case of sales the Public Trustee charges no fee. The broker is paid out of the trust estate, and consequently that estate gets any commission returned. In the case of a sale for the purpose of making a new investment when done in one Stock Exchange account the ½ per cent. investment fee covers the brokerage on both transactions, and consequently any commission returned is retained by the Trustee.
§ Mr. TOUCHEasked the Secretary to the Treasury if he can state whether, if land is sold and the proceeds are reinvested in Stock Exchange securities, the Public Trustee would charge both a fee of 2s. 6d. per cent. on the sale, under paragraph 2 of Section 2 of the Schedule of the Public Trustee (Fees) Order, 1907, and also a fee of 10s. per cent. on re-investment, under paragraph 1 of the same section?
§ Mr. HOBHOUSEThe answer to this question is in t he affirmative, except that the Fees Order now in force is the Public Trustee Fees Order of 1909.