EXTENSIVE FRAUDS AT BRISBANE.

Samoa Times and South Sea Gazette, Volume 2, Issue 65, 28 December 1878, Page 3

EXTENSIVE FRAUDS AT BRISBANE.

One of those sad and starling events which some times happen in all communities lias fallen upon Brisbane with crushing effect. On Saturday, sth hist, it became the topie of conversation that Mr. Seth 1,. Peterson, the Deputy Rogis-trar-(ieneral, in the Real Property branch had committed a grave breach of trust in his capacity of treasurer of the .South Brisbane Mechanics' Institute. It appears that about.CiOO had been collected for the purpose of building a new hall, and the money was presumably placed m fixed deposits in tic Government Savings Bank and the Commercial Bank, in the joint names of the president of the institute. Mr. A. J. blockings, and the defaulter Peterson. But Peterson managed to deceive Mr. Hockiugs, for tho money was never deposited in the manner supposed, but was used by Peterson held, tiiat when his defalcations became known otters were at once made to put him in position to replace the money, it l>eiiig thought that the deficiency did not partake of the nature of u fraud. The matter, in fact, was all but arranged ; but on Monday morning fho city w«.s thrown into a state of excitement by the ii' ws that Peterson had made admissions which indicated the commission of more serious crimes. It would appear that he sent a sort of circular note to u number of gentlemen informing them that certain deeds of title, lodged with them as security for advances, were fictitious, the misguided man having forged the signatures necessary to make them legal instrument*. The most deplorable feature in this lamentable affair is that Peterson sent in his resignation to the RegistrarGeneral on Monday morning and that it lias been referred to t he ('olonial Secretary The detectives have received orders to arrest the unfortunate man. It is expected that the frauds committed by .Seth L. Peterson iu Brisbane alone will reach £7OOOI It is Stated also that telegrams from Sydney lead to the belief that an equally large amount bos been obtained by Peterson on similar "security" in that city. It is presumed that the defaulter has made a promising effort to escape arrest. A horse was taken early on Monday morning across the river Brisbane, ut ludooroopilly, and it is said that Peterson crossed tho liver at Toowong, and that the horse was brought down on the south side to meet. him. It is said that tho banks are, iu consequence of the discovery of tho Peterson frauds, restricting lmsiueas generally. It would lie belter were thoy, instead of succumbing to the gencml panic, and thereby aggravating tho mischief, to .set an example of coolness at the present juncture. Were they

U da this they uonl.i ilo miteii to retton the ooufid&oee which at the present niu rient hu gone down almost to zero.

It turns out that Peterson iliil imt, as was at tirst thought, eontine his fraudulent transactions to thosu who would Hot. for the most part, feel them ruinously. Unfortunately, a number of working men ami comparatively poor people are sufferers. Some of these have lost all their savings, ami are plunged into difficulties besides. In some eases people of small means have erected houses on land transferred to them by Peterson, and these now find that they have been spending their substance in placing improvements on other people's property. Saddest of all, widows and orphans' trust money has been invested ill the more than doubtful securities which the wretched swindler scattered about so plentifully. Asan example of the wholesale manner in which Peterson conducted matters, it is said that lie gave 10 less than twelve separate titles for one piece of land in South Brisbane. Notwithstanding the extensive ramifications of his frauds he never seems to have dropped a link of the chain. He allayed suspicion by his promptness in meeting the interest due on the loans he obtained by means of fraudulent titles, and he seems seldom to have had the least difficulty ill raising the necessary sums for this purpose.

S. L. Peterson commenced his official life under the auspices of the Hon. 11. R. Mackenzie, a connection l>v marriage of his, as a clerk in the office of the Registrar of the Supreme Court, and when the Real Property Act of lßG2camo into operation, Seth Potersou w»s selected to fulfil the duties of chief clerk, and subsequently was promoted to the position he occupied up to the 7tli instant. The minute maimer in whioh these frauds have been consummated, and the watchfulness and care with which any chance of discovery has been obviated, go far to rival the more celebrated, but certainly not more ingenious crimes of John SadHer. Roupel, Paul Strachau, anTl Bates, Bedpath, Pulliuger, and others, who paid the penalty of their crimes cither by suicide or a moral death by banishment. The fraud upon the South Brisbane Mechanics' Institute comes peculiarly sevei poll those who have striven for some twenty years to form ii into a really useful institution, with all the capabilities of carrying out to the full the objects for which these buildings are raised. Mr. Peterson used to pi-lc irinself iuii:h;U thai he was one of the founders of the institute, and so, we believe, be was ; and his hi: a-.- ->n :a : nhown pri iv | ! : a:\ that his interest had nut i led, though his was not the sort of interest to benefit the institute.

It would be as well at this stage to give a verbatim copy of the circular addressed by Mr. iWraon to his numerous victims: - " I am awaiting arrest for appropriating moneys belonging tip the Mechanics' Institute, South lirishanc, and I have been raising moneys upon fictitious certificates of title, of which you have one, the security held by you being only a "Several charges will be brought against me, and I shall not defend, but 1 now write to ask you not to take action in regard to your matter. " Years must elapse before I can hope to help my unfortunate wife and family. But every further charge will lessen the chance of mr ever doing anything for them, In their behalf I nsk'vou not to do anything. If you lodged "your deed it would be impounded, and the Crown might have to prosecute. (Signed] S. L. Peterson." The inquiries that have already been instituted and the rush that has been made by holders of land to ascertain whether they are included in the swindles, have kept the officials at the Real Property Office in full work day by day, and tar into the: night, the result of their researches being, to the present lime the discovery that something like the sum of £20,000 has been fraudulently raised by this man. Necessarily there is a considerable amount of discussion as to whether the Government Assurance Fund " which guarantees a title," can be held responsible for this gigantic fraud. That, however, is a question of law with which we do not intend to deal at present.—The Week.