CITY OF MELBOURNE BANK.

Poverty Bay Herald, Volume XXIII, Issue 7545, 28 January 1896, Page 2

CITY OF MELBOURNE BANK.

ALLEGED RECKLESS MANAGEMENT. London, Jan. 27. Mr Rouse, accountant, who was appointed to make enquiry into the affairs of the City of Melbourne Bank, has submitted a report. He states since 1891 the management; has betn reckless, and had drifted into the bands of Mr Longmair, the General Manager, tempered by reference to Mr Loader, Chairman of directors. The committee's inspection in IS9I-2-3 was most perfunolory, and led to no result. During the half year of 1893 a sum of £32,286 being iuterest on bad accounts, was carried to profit. The bank's policy was never to face loss, but to bolster up insolvents and prevent publicity. The funds wero wantonly wasted. The advances to the directors amounted to £76,072, to tho manager to £75,486, to six companies in which the directors were interested £542,354, and in ten special accounts the advances came to a total of £1,563,686. Mr Stewart, the official liquidator, commenting on the report says the unearned interest was treated as profit to induce investment in tho concern, and the facts were withheld from British investors. Matters have been reported of even graver moment. Mr Kiggal, tho Melbourne solicitor, was instructed to report on the liability of directors.