THE CITY OF MELBOURNE BANK.

Press, Volume LIII, Issue 9326, 29 January 1896, Page 5

THE CITY OF MELBOURNE BANK.

I A REMARKABLE BEPORT. . Press Association— Br Telegnpfc—Copyright. ! Loxdon, January 27. s Mr Rouse, the accountant vrho was appointed to make an enquiry into the 1 arfairs of the City of Melbourne Bank, has submitted his report. He states that since 1891 the management has been most reckless and had drifted into the hands of Mr Long- ' muir, the General Manager, tempered Iby reference to Mr Loader, the ■ Chairman of Directors. The Com- [ mittee of Inspection in 1891, 1592 and 1893 was most perfunctory and led to no result. During the half- : year of IS9S the sum of £82,288 in- ; terest on bad accounts was carried •to profit. The Bank's policy was I never to face a loss, but to bolster up insolvents and prevent publicity. The funds were wantonly wasted. The advances to Directors amounted to £76,072, to the Manager £75,486, to t six companies in which the Directors [ were interested to £542,354, and in L ten special accounts the advances came f to a total of £1,508,636. [ Mr Stewart, the official Liquidator, , commenting on the report, says the unearned interest was treated as profit to 1 induce investment in the concern, aud ' the fact was withheld from the British investors. Matters have been reported of even graver moment. Mr Riggal, a Melbourne solicitor, has been instructed to report on the liability of the Directors.