The Federal Bank.

Feilding Star, Volume XVI, Issue 150, 21 December 1894, Page 2

The Federal Bank.

SINGULAR REVELATIONS. (Per Press Association) Melboubne, This Day. Mr James Munro, ex Agent-General, was examined to-day in connection with the affairs of tho Federal Bank, now in liquidation. He stated that when he filed his schedule ho had no idea what his overdraft was. The Real Estato Bank was formed to save tho Federal Bank. He obtained from the directors of the Bank a release from all his liabilities, the manager telling him they did not want to appear as a creditor. Both the Federal Bank and the Federal Building Society made advances to Douglass which he considered unjustifiable. The amount to about £60,000. Witness determined to take over the liability from Douglass, being anxious to keep tho Bank right. He admitted being a fool to do so. The Real Estate Bank was formed to take over Douglass' properties, and tho price paid was £251,000. The Judge characterised the evidence as extraordinary. It practically meant that Munro had obtained money belonging to the depositors to such au amount that he could not say within L 50.000 how much it was. The witness declared that he had never received a shilling iv his owu interest, but had ruined himself by tryiug to do his best for tho Bank.