SPECULATION AT MELBOURNE.

Nelson Examiner and New Zealand Chronicle, Volume XIV, Issue 73, 8 December 1855, Page 3

SPECULATION AT MELBOURNE.

At the Insolvent Couft, Melbourne, the following narrative was given m evidence at the examination of an insolvent, named James Willoughby; and it is stated by the Age to be a fair sample of hundreds of similar instances m the history of the past four years of the colony : —

Insolvent sworn : I have been iri business m the" colony for the last three yearsj with the exception of about eighteen mouths. I landed here with just £2 iv my pocket. I went to the diggings and was unfortunate. I made notliing worth mentioning. I then woi-ked for six months as storeman to Mr. J. B. Were, m Flinders-lane, at 30s. a week and a cottage to live m. I used to make overtime, and with my two sons' earnings I had got £50 together. With tlu's money I purchased a piece of land and cottage m Brewer-street, Prahran, for £55. I left Mr. Were's employment, and went aa eeUarmaii to Mr. Cozl, tkri | wine merchant, at £2 per week wages. I stopped there six months. During this time I had opened a little store at my place at Prahran, which my wife attended to. I saved some little money m that employment also, and aa I did so I laid it out m adding two rooms to and otherwise improving my cottage. When I left Mr. Cox's employment, I attended personally to my business, and to the improvement of my premises. About this time, the latter part of 1852, 1 took a contract from tha Government to supply them with firewood at £3 per load, by which I made a good profit. I sunk aU the money m further improvements on my bit of land. I built an overi and a bakehouse. There was no baker at that time m Prahran, except one, and I then commenced business m that line ; also continuing my store. I then built a threeroomed house and a doctor's shop, about the beginning of 1853. These cost me about £250, and I let the premises at £1 per week. I then put up three cottages at the back, at a cost of about £100 each. I got 255. each for two of them for a short time, and afterwards 205. . I sold one of them shortly after I built them. The cottages are now worth about half-a-crown a each ; and you must hunt your tenants up well to get even that reduced rent. About the middle of 1853, my wife was invalided mentally, and 1 was obliged to have a nurse expressly for her. During her illness I found my stock decrease unaccountably, and I sustained great loss. I bought a piece of land at the top of the hill, near Mrs. Choi* meley's m the early part of 1853, 99 feet, at £1 per foot. I sold it with a house and well, that together cost me £50, nine months back, to Mr. Kerr, the grocer, all for £300. It was a four-room wooden house, lined with brick, and plastered inside. I think the house and land cost me about £600. In 1853, I let my store and bakehouse to Mr. Graham of Swanston-street, at £10 per week, and removed my family to the house I afterwards sold to Mr. Kerr. The store and bakehouse would not now let at a crown a week rent. I then bought two good drays and horses and commenced brick-making. I had nearly £20 a week rental coming. In about July, 185-1, I bought another piece of land on the Dandenong road and built a house upon it. I let tlus for £3 103. a week for a short time. It is now let for Bs. a week. I first let my store and bakehouse to Mr. Tootle, then to Mr. Graham, then to Mr. M'Kinney, who some time since went through the court. There is no doubt that the high rent broke him ; but it is the depreciation of the value of property that lias brought me here. I laid out all my income m improving and adding to my property. Rents began to fall about the early part of 1854. I was m no difficulties until I put my name to this bill of Hawkins's. At the tune of my insolvency I was m receipt of rents from two cottages only ; but the tenant of one of them was not actually paying rent, but working out som> repairs he had done to the cottage. All the money "I was receiving wa3 ss. a week from one of the cottages at the back of my chemist's shop. It is about twelve months ago since I put my name to Hawkins's bill. It was a seven-day bill for £450. Mr. Bartlett asked me to put my name to it as security for him to Mr". Hawkins. I received no consideration whatever for doing so. I next heard of the bill two months after* wards, when I was at the Rainbow Tavern taking refreshments. I saw Hawkins there, and he then said that it had been dishonoured, and he should be looking some of us up about it. I had no notice of dishonour, and I came up to the court and made an affidavit to that effect. Hawkins sued me on this bill about seven or eight months ago. I was not allowed to plead that I had not received notice of dishonour of the bill, unless I paid the money into court to abide the issue of the trial. I consulted Mr. Shaw,' the solicitor, and under his advice I executed a mortgage of tho Bre\ver-3treet property, and Mr. Shaw deposited the deed 3 with Messrs. Hines and Sandwell, solicitors to Hawkins, as security for the amount. I believe Mr. Bartlett has only paid £52 of the amount. The deeds still remain m the hands of Hawkins j and about two months back I received a notice from him, that unless I paid the money he should proceed to sell the property under the mortgage. This aflair, and the depreciation m tho value of property, caused my insolvency. Several of my creditors have told me they do not intend to come and prove. I only owe about £200, except the liability arising from this bill of Hawkins's. I have had a great deal of sickness m my house ; three doctora at a time. I am now retailing bread at Prahran for a living.

Mr. Bartlett corroborated most of the insolvent's statement, and the meeting closed.