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PROBLEMS OF EMPIRE. The Chaffeys had no sooner obtained this concession from the Victorian Government, and a similar concession from the South Australian Government for land at Renmark, than they formed the Company known as Chaffey Bros., Limited.

The financial management of the company from the outset was hopeless. The Chaffeys had a very small amount of capital of their own. They no doubt thought that they would be able to raise sufficient capital in the open market, but in this anticipation they were grievously disappointed. The shareholders' capital subscribed is stated in the report of Commission to have been 70,000l., of which nearly 30,000l. belonged to the Renmark undertaking. This amount was obviously quite inadequate to carry through an enterprise of the magnitude of that at Mildura. Various expedients were resorted to for raising money, such as the issue of debentures, loans from banks, &c., a high and increasing rate of interest being paid for the accommodation. Land was sold either for cash or on the instalment principle, the payments being spread over ten years. Large sums of money were derived from this source. In the year 1891 alone over 100,000l. worth of land was sold, and after the initial stages of the undertaking the settlement was largely carried on by the money derived from land sales. As soon as the influx of new settlers ceased, the financial resources of the company became to a great extent dried up. An unsuccessful attempt was made to raise money by a fresh issue of debentures on the London Market in the spring of 1894. Shortly after this the company had to go into liquidation, and its unpledged assets are now the property of the debenture-holders. 210