OUR AUSTRALIAN LETTER.

Evening Star, Issue 8969, 31 October 1892, Page 1

OUR AUSTRALIAN LETTER.

[From Ouk Meliiouune Correspondent,]

Tuesday, October 18, POLITICAL.

There has been a change of Government in South Australia, the Holder Ministry having been supplanted by one led by Sir John Downer. The latter gentleman brought forward a noconfidence motion in the Assembly last Tuesday, condemning the financial proposals of the Holder Government and its administration generally. He pointed out that the revenue for the current year had been greatly overestimated, and the policy propounded must result in increased taxation. Mr Holder, in reply, contended that the delay which had occurred in the transaction of business was the result of numerous hostile movements against his Government, and that the financial problem bad been complicated by the miners' strike at Broken Hill. It was impossible to make proper provision for the deficiency in revenue caused by that strike until it was over; but it was likely enough that the losb on that account might be made up through the increased railway and Customs revenue resulting from an improved harvest. The motion was carried after a short debate, and the Holder Ministry consequently retired. The week's work in the Victorian Assembly comprises the passing of three items of the new tariff, as follows :—" Ale, portar, spruce, lager and other beer, cider and perry, not otherwise enumerated, Is per gallon." " Animals, live—viz.: Bulls, bullocks, steers, cows, heifers, and calves, per head, LI 10s; sheep and lambs, per head, 2s; pigs, per head, 10s; horses, per bead, L2 10s." " Apparel, slops, clothing, underclothing, and articles of attire not otherwise enumerated, whether wholly or partly made up (except driving dresses, including the boots, gloves, and helmets for such dresses—free), act valorem 35 per cent." A strong movement was made to get Jtbe stock duties as, above stated, reduced by one-half, and the increase from 25 to 35 per cent, on apparel was only carried by 10 votes. The other tariff proposals are likely to be warmly oontested, and some modifications ought to be secured. On Thursday the Village Settlements Bill was under discussion in committee, but very little progress was made with the measure. A provision giving power to the Board of Land and Works to purchase land for settlements was accepted only on the understanding that oertain limitations and safeguards should be arranged. There is likely to be a repetition of the old constitutional diffioulty between the two Houses over the Stamp Duties Bill, the Council persisting in certain alterations of the machinery clauses of this measnre. As it is a money Bill, the Government refuse to recognise the right of the Council to alter it in any way. . THE SYDNEY BANKING PROSECUTIONS.

Saturday brought to a conclusion the hearing at the Sydney Criminal Court of the oharges against Francis Abigail, John Soott, Arnold Mathey, John Hyam Nathan, James Fermore Martin, John Hurley (directors), and Roderick M'Namara (manager), of falsely representing the affairs of the Australian Banking Company, and publishing a false balance-sheet, with intent to defraud the creditors, customers, depositors, and shareholders of the company. The jury, who had been locked up all Friday

night, returned into Court on Satur day afternoon and announced that they had found Scott, Mathey, Martin, and Hurley not guilty, but had not come to any decision with regard to the other three defendants. As there wae no farther charge against the four who were acquitted, they were discharged, and left the Court accompanied by their irtendt, The jury were again locked up to-resume their consideration of ' the evidence against Abigail, M'Namara, and Nathan. At nine o'clock at night they sent a message to the judge stating that there was not the slightest possibility of their agreeing on a verdict, and they were accordingly discharged, Judge Backhouse thanking them for the attention they had paid to the case. The accused were then remanded to stand a fresh trial. Bail was allowed, Abigail and Nathan in two sureties of L4OO each and their own recognisances of LBOO, but as M'Namara was in custody on other charges that have yet to be beard against him, no application was made for bail in his case.

The following is a summary of the main facts brought out during the trial:—"The chairman of the directors, Mr Francis Abigail, was Minuter of Mines in the last Government of Sir Henry Parkes, and this 'circumstance increased the scandal when, the ' bank ' having been obliged to close itsdoors, tbc report of the liquidator showed that the company had been very much like a bogus affair from the outset, and that some of its transactions had been exceedingly peculiar. The history of the company is a brief one. In 1884 a young' man named J. H. Nathan came to Sydney from New Zealand, and entered into business as a mercantile broker and money lender. Mr Nathan made the acquaintance of a person named Malcolm, a very plausible fellow, who subsequently became notorious itt connection with the 'Bell and Davis frauds,' and was obliged to leave Sydney- unostentatiously long before the truth about the Australian Banking Company was told to the public. The business had been in operation for something like two years when, in 1886, an arrangement was made between Nathan and Malcolm that it should be floated into the Australian Loan, Discount, and Agency Company, with a capital of LIOO.OOO in LI shares. A dividend of at least 10 per cent, was to be guaranteed for two years. Nathan was to receive for his Bharo 10,000 fully paid-up shares, and 3,000 shares were to be distributed among the provincial directors. No mention of the 10,000 shares given to Nathan was made in the articles of association submitted to the shareholders. Malcolm became the first manager, but the com pany had been carrying on business for nearly twelve months before Abigail joined the directorate. Messrs Kent and Buck were in the articles appointed auditors to the company, but when the time came, in July, 1887, for the preparation of the first annual balance-sheet, the directors called in another firm, Messra Starkey and Taylor, to make an audit of the books. This was done, and a balancesheet was issued purporting to be signed by Starkey and Taylor, but as a matter of fact containing serious alterations from the statement prepared by them, the principal ono being that the transference of the 13,000 shares to the directors was ooncealed. Starkey ad Taylor protested againßt this conduct, and threatened legal proceedings, whereupon the balance-sheet was withdrawn, and another was published purporting to be signed by Kent and Buck, the auditors named in the articles. In this statement the L 13.000 represented by the 13,000 shares was again obscured, being included under the.head of 'investments,' as though it were an asset. Meanwhile, the name of the company had been changed to that of the Australian Banking Company, and Malcolm had been succeeded as manager by K, M'Namara, who had formerly been a clerk in the Bank of Victoria and in other financial institutions. In November, 1887, Abigail became permanent chairman of the Board of Directors, and iu December, many unkind insinuations having been made about the solvency of the company, the directors obtained a report from Messrs Davenport and Miles, another firm of accountants. These gentlemen told the directors that the method adopted of treating tho ] 3,000 shares and the alteration of Starkey and Taylor's statement waa highly improper; that no allowance had been made for bad debts ; that gross income had been set down as net profit; that if tho accounts hj ad been properly stated there would have been no profit at all; that the securities of the company were cot satisfactory, a large proportion consisting of mining scrip and the company's own shares; and that there were errors in the accounts which could not be ascribed to ignorance. The directors solemnly resolved that the recommendations of Divenpr,rt and Miles should be carried out 'as Jar as possible'; and a few weeks later the same accountants were asked to audit a balance-sheet for the next half-yearly meeting. This was done, and the statement drawn up by Davenport and Miles showed a loss of L 3.150. The directors were not pleased, and the officers drew up a balancesheet of their own showing a credit balance of L 7.819. This was bent to still another firm—Ford and Troupe—who reduced the 'profit' to L 2.271, and it wts decided that Ford anc\ Troupe's balance-sheet should go out certified by the company's auditors. The accompanying report of the directorsall of them included among the present defendants—congratulated the shareholders on the prospects of the company, and announced a dividend at the rate of 12J, per cent. At the half-yearly meeting a few days later Abigail presided. He said that he had thoroughly satisfied himself that the company's business was sound and satisfactory, and 'was confident that the company would pay better dividends in the future than that paid that day.' In 1889 overdrafts to the extent of L 20.000 were wiped off by the simple process of accepting bills at long dates, so that they appeared in the balancesheet as ' bills receivable'; and among these overdrafts were large amounts owing by the directors themselves." SPEARED l;y THE BLACKS. Particulars have been forwarded to Adelaide of the murder of Mr W. S. Scott, of Willeroo Station, in the Northern territory, by blacks, Scott left Willeroo Station on Tuesday to muster cattle, the party consisting of himself, Eollo (his black boy), a little boy named Crawford, and a gin named Alpha, belonging to Rollo. He took dinner at M'Clure Creek, on the Victoria River, and while waiting for Lis dinner blacks came up in a mob. Scott asked them why they were walking about among the cattle, and then told Rollo to look up the saddle horses. While Hollo was doing this the blacks hunted the horses about and separated them. Scott called to Eollo to stop trying to catch the horses, as the black* might kill him. Rollo then cama back into camp, and Scott fired a shot from his rifle to frighten the black?, who seemed to disappear, Scott told Rollo to follow'the horses, fearing that the blacks would spear them. Rollo did so, and brought the hones back into camp, where he fonnd Mr Scott murdered and the camp robbed. The murdered man had been apeared in the back several times, the spears being left sticking in him. He was also wounded in the centre of the forehead, evidently with a tomakawk. Rollo put what remained of the gear upon the horses and returned to Willeroo Station, a distance of seven miles. When be reached the station he told the Chinese cook what had taken place, and the two started in to report the murder at the Katherine, leaving the station unprotected save for the dogs belonging to the homestead. The blacks between the

Katherine, Gregory, and Victoria !Uvdrß are becoming Tery troublesome and treaoheroui, and*** constantly apearicg stock.

ANOWBBR SHIfPINO TOtfK«.

As if we had not enosgn Of strikes, another difficulty ban arisen in the maritime industry. When, alter the last great strike, £h« owners asserted freedom of contract ttey instituted a maritime labor bureas, through which they insisted that all mtm, nnion or monutuvn, should fa engaged. This the unie« have always resented, and on* day last week the secretary of the union (Mr v. A, Mansfield} tailed all men off ttte b.s. <iabo, belonging to Messrs Howard, Smith, and Soem, because Capttftn Bell refused to discharge three fiwmwsEngaged through the bureau. The aienstruok most reluotantly, and it was net encouraging to them to see «ba Bhip sail for Sydney with nearly a full "jrew ob the same day, The sole trouble arises from the desire of the leaders of the "iffim to revert to the condition which existed prior to the great maritime strike, when the representative of the Seamen's 'Union was a dominant and dictating power over employers and employed. The Steamship Owners' Association at once (fatted the matter in the hands of their legal advisers, *nd proceedings have been taken against Mr Mansfield for inducing the seamen to desert their ship. {Mansfield was fined L 5 and costs, and has appealed against the decision.] THEATRICAL AND MUSICAL, A juvenile opera company, under the •management of Mr Tom Pollard, have, opened 'in 'T*o Gondoliers'at the Princess's with every prospect of shcocbp. The Alaba*rii Mrastrels have also entered tqpee what promises to be a prosperous Wtson at the Opera-house. In Sydney «Joan *? Arc' Is being pro. duced by the 'Gaiety Company. The revival of 'Genevieve *o Brabant' by the Sotdene Opera Company has not proved a success at the Gamcfe, and is to be replaced by 'La fille M Madame Angvt' tnis week. PXNS&AL. At Stuart Town, near Orange (New South 'Wales), last Week a school girl, aged thirteen, named Elizabeth Northey, wasdhdt by ■a boy natied Priest They had rntftrtsed from school, and the boy saw a gna toutslde ate fcouse, which had been left loaded for sheeting crows. He pointed the gun at the .givJ, and it exploded, tteo shot entering her forehead. She was brought into Orange, and is now hi the hospital. A Sydney jeweller named Frank Spurway, carrying on business in Albion street, reported to the polios that while going homo ■aboot eleven o'clock the other night a man Taab'ed out and threw a quantity of cayenne P'pper in his face. A second man grasped nis arms from behind, while tire first man secured a box containing about LIOO worth of jewellery he was carrying home for repair, and the two made off with the booty. As soon as he had somewhat recovered from the pain in his eyes he drew a revolver and fired «wo -sfcots at the retreating robbers, but 'failed to stop them. Tfcra police found the hot. in which Spurw&y had the jewellery in Hyde Park, the stents having disappeared, A statement prepared by the official liquidator shews that since the winding up of the Vremwt Permanent Building Association he has received 1060,845, and has paid away >L%0,331. The chief amounts received were L 214.253 from safe of properties, L 47.000 from rents and int&reat, L1H.790 from frepayraenta of loans, and L 29.000 frees various otker soocces. The liquidator has also had to borrow a total of LtM.OOO to assist in seating engagements entered into previous to the liquidation. The amounts paid away consist chiefly <ai 1391,000, balance of purchase money for properties contracted tor prior to liquidation, L 26.000 for completing fcuildicgs and general repairs to properties, 142,000 for interest aed various smaller •sums, including a total of L 8.967 for law costs, and L 4,17? for olerioal assistance. Unfortunately the official liquidator is unable at present to do what the shareholders -and depositors most desire—explain their i future prospects. I A spicy libel action is about to be tried fa She Victorian Supreme Cosrt. Tfee plaintiff ia Mr J. S. Batters, a late member of the Legislative Council, and once Mayor of Melbourne, and the defendants are the proprietors of the * Wangaratta Chronicle.' Damages arelaidatLi.'OOO. The defendants in February and March last published a letter •and a leading article dealing with the political and private career of the plaintiff, then a candidate for the representation of Waugaratta and Rutherglen in the Legislative Assembly. The construction placed by the. plaintiff upon these pnblications is that h f . was accused of being disgracefully assorted with the murder of Natives on the high seai, of which Mount and Morris were i-onvicted ; with using his hulk, the Mount Macedon, in Hobsoa Bay, for immoral purposes ; with having accepted bribes when formerly a member of the Assembly, and being expelled from the House in consequence ; and with being an impndent, unworthy man, who resorted to politics from sordid and dishonorable motives. The defendants plead justification, fair comment, as 'malice, and privilege. In the parttevkura under their defence they assert that the hulk Mount Macedon was constantly resorted to between December, 1889, «ed February, 1892, as a rendezvous by men and women foe immoral purposes. The Court has ordered the defendants to supply the plaintiff with the names of persons who -jonserted to the hulk for immoral purposes. Victoria is promised an unusually rich harvest this summer. The contributor on agricultural topics to the 'Australasian writes:—"Though the harvest is still far off, the present state and appearance of the crops are unusually promising. Everywhere I go, and that means Victoria generally, and sometimes beyond it, the oereal crops are looking really splendid. In the Goulbnrn Valley and the North-East, the farmers all declare that if nothing happens they will reap the biggest yields they have ever had. In the northern wheat-growing counties of Moira, Rodney, and Gunbower the crops have never been more promising than they are this season. In the Wimmera and in the mallee regions the farmers are equally hopeful, and there is rejoicing everywhere over the prospects generally throughout the whole colony. What the actual results of the harvest will be, however, it is almoßt needless to speculate meanwhile. Many of the crops are late, owing to the dry autumn (■xperienced, which prevented the sowing of the seed as soon as desired. And it is probable this cause may also have restricted the area sown in some localities this season; but, keeping in view the development of the mallee country, there should be no falling oir in the aggregate under crop. If rust and hot winds do not cause unusual damage, there ia reason to anticipate one of the best harvests ever reaped in Victoria."