DEGRAVES V. M'MULLEN.

Grey River Argus, Volume XIII, Issue 1537, 8 July 1873, Page 4

DEGRAVES V. M'MULLEN.

A caae of some importance, and one that has created a good deal of interest in mercantile classes, was recently heard in the Melbourne Supreme Court. It was an action • brought by the Hon. Mr Degraves, M.L. C., who was extensively engaged in' squatting transactions, against Mr M 'Mullen, the, lnspector of the Union Bank, in his individual capacity, to recover L 30,000 for breach of agreement. There was an unusually large Bar engaged, and the hearing extended over several days. It appeared that in theyear 1867 Mr Degraves, who transacted business at the" Union Bank, and was one of its directors in Melbourne, entered into a partnership with the defendant in the purchase of two stations, named respectively St. Anne's and Dotswood, both situated in Queensland. The former had been for a long period in the possession of the bank, and it was agreed to purchase it by the parties for LBOOO on bills at long dates. The other station cost LBBOO, and was bought on similar terms, so that the joint liability of the partners was about LIT; 000. At this time Mr Degraves was doing an immense business, and was reputed a millionaire. His transactions with the Union Bank alone amounted to between L 300,000 and L 400,000 per annum, and his overdraft ranged from L 20.000 to LIOO,OOO. In 1868 Mr M'Mullen became dissatisfied with the purchase of the station, and applied to Mr Degraves to be released from the partnership. The plaintiff expressed a willingness to accommodate his friend, and sought to obtain a substitute, but found it impossible, as station property about the time "was at a discount, and very heavy losses were being everywhere experienced. It was finally arranged, however, between the parties that M'Mullen should be released on the condition that Degraves's bills should be discounted by the Union Bank at the rate of seven per cent., until such time as the stations could be satisfactorily disposed of, Degraves lodging ample securities in the bank. : > Soon afterwards the defendant went to New Zealand, and in his absence the manager of the bank, Mr Curtayne, commenced to press Degraves, and finally foreclosed upon the mortgage. M'Mullen repudiated the alleged agreement, which was stated to have been made verbally. The testimony adduced was most conflicting, and the documentary evidence; put in threw, comparatively little light upon the question at issue. The jury returned a verdict for. the plaintiff, and awarded him damages L 10,248. Degraves has, it is stated, served a writ upon the bank, and intends proceeding with an action to recover L 60,000.