MYSTERIOUS MILLIONS

Greymouth Evening Star, 29 September 1928, Page 4

MYSTERIOUS MILLIONS

FORTUNES GOING A-BEGGING

During the war public attention was drawn to the unclaimed, deposits in banks, and a demand was made that they should be confiscated by the State- A bill was introduced into Parliament with that object; but after a select committee had been appointed and 'had issued a report, the matter was shelved. In the form of scrip, shares and plate jewellery and other valuables alone, there are doubtless many unclaimed deposits in banks. Some years ago a certain peer, while, in Sydney, heard (or the first time ol some plate belonging to him that had been lying in an Irish bank lor more than a century. On returning to Britain he claimed it, and it was at once given up to him. But most of t he' unclaimed deposits in banks consist, of dormant balances, which arise. through many circumstances. A common cause 01. the non withdrawal of a, balance is the keeping of accounts in fictitious names. While, for instance, a certain chemist was on his death-bed, he gave his wife a. note, signed in such a name. “K. M. Pepper” (obviously a. phonetic rendering ol “cayenne pepper”), authorising her io draw his money from a certain bankSlhe accordingly applied to the bank after his death and. it relused to give up the balance on grounds ol insufficient identification. When, however, she brought . an action against the bank, a verdict was given in her favour. Now, if her husband had died suddenly, she would not have known anything about the money standing to the credit of “K. N. Pepper.” Again, when, as often happens, a man keeps two .accounts in his real name, one of them is likely to be overlooked at his death. Here is a. case in point. A Scottish captain in the mercantife marine who traded between Bombay and Calcutta, left money in both those places. His family received the fund of one of them, but not that in the other. Twenty years afterwards somebody discovered the existence of the dormant balance, ami informed the solicitor who had wound up the estate, remarking that there would be £4OO more for the widow.

“Oh, we’ve had the money,” said the legal gentleman, in a tired voice. “No, you haven’t,” was'the reply. “You’ve had the Bombay account, but there is another at Calcutta.” So there was, and in the end the widow was actually enriched by about £4OO. '

An important factor in the accumulation of unclaimed money in these and other circumstances is that bankers are under no obligation to search for the owners, nor are they even required to publish a list of their names- In practice, inquiries are sometimes made, but seldom is any action whatevei - taken with a view to restoring money. If bankers did search for the owners of unclaimed deposits, there can be no question that the result would be nearly practically identical with that of an investigation which took place concerning the ownership of a certain fund. In 1832 two sums of £126 16s and £94 7s were paid into a certain bank to the credit of one of its customers. There tihey remained, and interest was added periodically until 1907, when the bank amalgamated with another. The matter then came to light, and an inquiry was directed. As a result, it was found in 1914, that a Worcestershire vicar was entitled to the fund, which in 80 vears had grown to £l4OO.

In trustees’ savings banks also there are many unclaimed balances. About two years ago a clerk in one of these institutions transferred a deposit account for £5OO, that had not been touched for 40 years, from the dormant ledger into the active ledger, and then drew on it a cheque for £125, which he applied to Iris own use. He manipulated other dormant accounts in a similar way, embezzling altogether more than £l5OO. Balances remain unclaimed in banks of this class largely through the same causes as operate in connection with ordinary banks. The dodgery in keeping two or more accounts is common in both kinds of banks, and the object in the one is usually identical with that in the other—evasion of the law.

A typical instance of a widespread trick in connection with savings banks came to light not long ago. After the death of a certain man his wife found a scrap'HE paper which, caused her to institute a search of his effects, and in a box belonging to him she discovered two bank books—one in his own name and the other in the name of Tom Fox, w’hose address was given as 56 (a number non-existent since 1897), Oldfield Road, Salford. Tom Fox could not be discovered, nor could anything be gleaned concerning him. So, as the two balances amounted to £340 0s 2d, it was practically certain that the deceased kept, his savings a secret lor the sake of the old-age pension, which lie had drawn at the fullrate for some years. Both balances were paid to his widow.

MATERIAL FOR NOVELISTS. ♦ Perhaps, however, the total value of all unclaimed deposits in banks is small in comparison to that of the unclaimed Government stock and divk dends held oy the Bank of England. A glimpse of tihe ownerless wealth accruing from, this source was given us when Mr Goschen’s conversions scheme was carried out in 1887. Tn the course of his great financial operation it was disclosed that dormant funds were entered to no fewer than 10.900 accounts, in which were included 40 exceeding £lO.OOO each, and one of £187.598. There is enough romance linked with such funds as these to provide a dozen novelists with stock-in-tradefor life. Some vears ago a. French lady invested £200.000 in the funds, and then forgot all about it. When, more than thirty years later, its existence was brought to her knowledge, she was really amazed. Another fund was found to be in the name of a. citv clergyman. As he was still alive, the finder—a. solicitor --told him in person of his windfall (for such it was), whereupon he expressed the greatest incredulity, stating that lie had not invested lhe mono.y, nor, as fa r_ as ho knew, had anybody else done so for 'him. Nevertheless,' ho got ik hi lhe end be camo to lhe conclusion that a. parishioner had put it in Government stock for him, and had forgotten to leave it to him in his or her will. Tn a. third catso the owners of a,bout £2OO vorlh of unclaimed tdock proved to bo two bitsters, in whotm mother b name if. blood They also wore incredulous v’hen they heard of their good fortune. Their father—a clergy-man-had, they stated, been very poor,

and both lie and their motflier had died in absolute want. Was it conceivable, then, that the poor woman should all the time have had £2OO, plus dividends? T’hc thing was very difficult, certainly. Ini ttihcrc yas no question that- this I'uinl was in her name, ami that her daughters were entitled to it.

A remarkable fact concerning unclaimed stock and dividends is that no list of owners is issued. The Bank of England is under a legal obligation to publish such a list; but no penalty is prescribed for default, and,*as it does not choose to comply with the law. nothing is done in the matter. If a list, were published periodicall.v, the ainonnl of stock’ unclaimed would soon Im ureailv reduced.