AUSTRALIAN NOTES.

Tuapeka Times, Volume XXIV, Issue 1887, 13 April 1892, Page 5

AUSTRALIAN NOTES.

Tobsday, March 29. THE NEW SOUTH WALES RAILWAY COMMISSIONERS.

The New South Wales Government have decided that inquiry shall be made by a royal commission into the charges made by Mr Schey t M.L.A., in Parliament against the Railway Commissioners. When an intimation to this effect was given in the Assembly last Thursday Mr Schey took exception to the form of inquiry which was demanded by Mr Eddy, the Chief Commissioner. He claimed, that in making the charges against the Commissioners he had been actuated by a sense of public duty. He pointed out that Mr Eddy, in asking for an inquiry into the charge that he was appointed by the influence of a ring in England, had chosen the least important matter, and one only referred to incidentally. The gravest charges were those against the administration of the department, which he claimed had been such as to show Mr Eddy's unfitness for the position he occupied. He strongly objected to the Chief Commissioner selecting the matters on which he should be tried, and the form of the investigation. He considered that the inquiry should be by a select committee of Parliament, of which he would nominate half and Mr Eddy the other half, or which could be selected by ballot. He asked that he should be so protected that there was no danger of his being dragged into the Supreme Court as a result of his action. He claimed the right to call and cross-examine witnesses and obtain documents, and that witnesses should be indemnified against being affected by their evidance. He also wished that no counsel should be allowed to appear on either side. Mr Barton, the Attorney-General, on behalf of the Government, pointed ont that it was necessary where a member of Parliament and a high public official were affected that the inquiry should be entirely free from politics, the Civil Service, or the railways, and absolutely independent. The Government would bear all the cost of the witnesses, &yd Mr Schey would be able to obtain evidence just as in the Supreme Court. The power of cross-examination would be given, and the commission would sit in open Court. He could not Bay that counsel should not be employed, but the Government would not incur any expense in that direction. The Government had not yet been able to decide who should be appointed on the commission, but the best men obtainable would be selected. Mr Schey thereupon protested against the matter being made a fight between himself and Mr Eddy, and claimed that the charges having been made the Government must take them up. If he were to be put to the expense and danger of law prosecutions, he absolutely declined to proceed further in the matter. Mr Barton said that despite what had occurred the Government would appoint a Royal Commission, and if Mr Schey did not bring the case before the commission the Government must leave the matter for the public to decide.

A LOCAL LOAN.

The floating of a loan of L 500.000 by the Metropolitan Board of Works in Melbourne has proved a great success, the amount being more than doubly subscribed. The debentures are for LIOO each, bearing interest at the rate of 5 per cent, per annum, and payable in Melbourne half-yearly. The tenders — 102 in number — were opened on Friday in private at a meeting of the Finance Committee of the Board. The total amount subscribed was L 1,082,400., 082,400. Of that sum L 549.000 was applied for at varying prices above par, the premiums ranging from 6d to Ll ; whilst the balance of L 533.400 was subscribed at par. Included in the amount subscribed above par were tenders to the amount of L 55,000, which the Committee rejected because the tenderers attached the condition to their application that the interest should be paid in London. This brought the total amount tendered for at above par to L 464,000, the whole of which the Committee accepted, the average premium being 2s 4^d, and decided to allot the balance of L 36.000 necessary to make up the L 500.000 pro rata amongst the tenderers who offered to subscribe at par. In commercial circles great interest was taken in the operation. The successful floating of the loan is regarded with great satisfaction, as it is believed it may have a beneficial effect on the English money market. Nearly the whole of the L 500,000 accepted was subscribed locally.

BANKING TBOPBLES.

The feeling of uneasiness among bank depositors in Melbourne has been renewed, and the heavy withdrawals from the Australian Deposit and Mortgage Bank have caused the doors of that institution to be closed. In three days the total amount of withdrawals amounted ho L 20,000. On Tuesday last the run waß much more severe, the total sum withdrawn during the day amounting to no less than L 30,000, making an aggregate of L 50.000 withdrawn since the previous Friday. The directors, after a long consultation, decided to suspend payment, and call the shareholders and depositors together. The Australian Deposit and Mortgage Bank is represented as being one of the soundest financial institutions in Melbourne. It has no liabilities except to its depositors. None of its securities are pledged, and it has a fair balance at its banker's, even after paying out the large sum of L 50.000. The management state, in fact, that the run is wholly inexplicable and unwarranted by any existing circumstances. The directors attribute the disaster to the nervous feeling caused by the stoppage of the Mercantile Bank, but otherwise are at a loss to account for it. At the last half-yearly meeting a dividend of 12£ per cent, waß declared, and the profit and loss account was in credit to the extent of L 19.025 6s 2d. The subscribed capital of the bank is L 575.000, ot which L 215.000 is paid up. The total amount of debentures and deposits j atandß at L 1,492,653 11s Id, and that is the only liability, The assets are made up as follows :— Present value of loans, L 1,683,113 19s 3d ; freehold property, L 40.00 0; debentures, etc., L 4.886 17s 6d ; sundries, L 412 5s 4d ; and cash and banker's, L 98,266 5s 2d ; making a total of L 1.826,679 7s 3d. A scheme for the reconstruction of the bank has Bince been agreed to. The basis is that the present institution shall go into liquidation, and the depositors asked to take for the amount of their deposits fully paid-up shares in the new company bearing a preferential interest of 5 per cent. The reserve fund will be placed to the credit of the new company to meet any losses in realisation, and the present shareholders are to pay up the uncalled capital, amounting to L 360.000, in instalments extending over ten years. The new company will then carry on the present business, but will take no deposits.

SQUANDERING A PATRIMONY.

In my last letter I gave a resumt of some curious evidence which came out in the Melbourne Insolvency Court in regard to the estate of Montague F. Levy. The insolvent himself has since been examined, and has told the following story :— " I became of age on the 4th July, 1891. My late father's name was Montague Levy. lam one of the persons entitled by his will to share in the property he left. I think my share was worth about L 20.000, but I could get very little information from the trustees. I waß entitled to my share after I became twentythree, but it was not payable until after my mother's death. On becoming twenty-one I was entitled to L 3,100, and received L 2,000 odd, the balance going to my mother to

recoup her for money she spent on my account when I was under age. I paid all my debts exoept one— about L4oo— and Bpent the balance in pleasure. Some went in horse racing. I used to lose so often that I forget how much I lost. I had no principal adviser in betting matters, bat sometimes I acted under Mr Saqui's advice. After I became of age I gave Saqui a power of attorney to enable him to borrow L 5,000 for me under my father's will. That was in August, 1891. ' Before I obtained any loan I transferred a 1 policy for L 5,000 on my life to Saqui for money I owed him. It was found that the money could not be borrowed, and I had consultations with my brother-in-law, Mr Goldring. He said at first that he could get the money, and afterwards said he could only get L 3,000. At a Subsequent time he led me to understand he could not raise L 3.000. That put me in a fix, and Itold him so. He then proposed to buy my interest. He said there was a great risk, and that he would have to borrow the money himself to give to me. I could not get him to let me have more than L3.3C0. That was on the understanding that I should have the right to buy the interest back at any time. I do not know at what price I was to be able to buy it back. Besides my share in the^ corpus of my lather's estate I was entitled to a share in the income of the estate, after allowing L 3,000 per year to my mother. This year my share would have been about LSOO. From the remarks Goldring made to me I was led to believe ! that my share in the estate was not worth more than LIO.OOO, and that I was get- ! ting good value considering the risk he j was taking. All I actually received for my interest in the estate was L 2,800. Goldring deducted from the L 3.300, L 272 odd, premium on my life policy till I became twentythree years of age, and Ll6O or Ll7O for solicitor's costs. My share was sold to Mrs Goldring, but I never knew anything about her being the buyer until two or three days before the sale took place. When it was made Saqui transferred my life policy to Mrs Goldring. I cannot say I understood the documents I signed when the interest was sold. A strange gentleman who was present explained the points to me, and told me I was selling all my interest under my father's will. My sister never told me she was to get my share. About the end of August and in September last I got Saqui to discount bills of mine to the amount of L6OO or L7OO —in three bills, I think. I used the proceeds in about three weeks in backing horses at suburban racecourses — Elsternwick, Mentone, Caulfield, and Flemington. I now owe L 1,351,, 351, and according to my schedule I have no assets. I owe for jewellery about L4OO. I believe that jewellery is now being hawked about Melbourne. I made presents of it to ladies, and bought it for that purpose. I first met Saqui about five years ago, and still look on him as one of my best friends. Ido not think he swindled me,"

GENERAL,

The inquest concerning the death of Jane M'Crow, who was murdered by ncr husband, Alex. M'Crow, at Blackfriar's Estate (N.S.W.), on the night of the sth February, has been concluded, 'a verdict of wilful murder being returned against M'Crow. The wound inflicted by M'Crow in his throat, after cutting his wife's throat, is not fully healed.

Sentences were last week passed by Mr Justice A'Beckett on Matthias Larkin, late secretary of the South Melbourne Building Sooiety, and Patrick Cleary, his accountant, for the crime of conspiring to defraud that society of L 2,322 Is lid. Larkin, in mitigation of sentence, asked for leniency, in order that he might go to some other country at a future time, perhaps to make a mark, and Cleary also asked for leniency, so that he might before any long period take his wife and children away to another country. His Honor, in passing the sentences, referred to the magnitude of the crime which the prisoners had committed, and said that Larkin had spoken of making his mark in another country ; but the mark he had made in this country was deep, and would be lasting, and the punishment which he would receive should bear some proportion to the consequences others would have to endure from his misdirected energy and ability. He wished it to be specially understood that the sentence would not be heavier because of other offences of Larkin which had been spoken of, but would refer only to the one of which he was convicted. The duty of bringing him to trial for other offence*! rested with those in authority, who alone were able to set the law in motion, and the judge could not relieve them from their responsibility. The sentences were six years' imprisonment with hard labor on Larkin, and four years' imprisonment with hard labor on Cleary. A boating fatality happened in Sydney harbor on Saturday night. A party of five, consisting of the first and second officers of the City of Adelaide, Mr Courtenay, Miss E. Taylor, of the Italian Opera Company, and an able-bodied seam&n named Beatty, of the ship Mackay, went out for a pleasure cruise in the cutter of the City of Adelaide. Shortly before eight o'clock, when off Garden Island, the cutter, while in the act of jibing, was strrck on the opposite counter by a sudden squall and capsized. All the occupants were thrown into the water. Neither Beatty nor Miss Taylor could swim, but tho officers undertook to do their best to keep them afloat, while Mr Courtenay struck out for laud to procure assistance. Iv this he was successful, but when he returned to the scene of the disaster both the lady and the seaman had disappeared, while the officers were almost completely exhausted.