More than a month passed away in fruitless search, all that was returned to the public for the money expended in the wearisome hunt for the outlaws being “report” upon “report”, each of which conveyed intelligence of non-success, disheartened men, and knocked-up Government steeds. But the time had arrived for fresh interest to be created in the gang, for a greater display of police ingenuity and energy, and for public patience to be further exercised. Leaving their mountain fastnesses, Ned Kelly and his companions made a bold raid upon the township of Euroa, a small settlement on the main road between Melbourne and Sydney, and deliberately, in open day, "stuck up" the National Bank, emptying its coffers of all the gold and notes that were stored therein. Their plan of operations was cleverly arranged and carried out to the last detail in a remarkably cool and systematic manner.

The town at this time contained about three hundred inhabitants, and could boast of a police station, two or three hotels, and a number of other business places; it was the centre of a flourishing agricultural district, and the main line of railway between Melbourne and the Murray ran partly through the town. The Strathbogie Ranges, covered with thick scrub, lay at the back of the settlement, extending as far as Mansfield; but only experienced bushmen could easily cross the rugged, heavily-timbered belt.

About three miles from the township was a station owned by a settler named Younghusband, and it was here that the quartette first made their appearance, at noon on December 18th, 1878. One of the station hands named Fitzgerald was quietly eating his dinner in the men's hut, when a man, apparently an ordinary bush hand, appeared at the door, and in a matter-of-fact tone of voice enquired if the manager was in. Fitzgerald replied in the negative, and suggested that if the stranger's business was not very particular he might do instead of the manager. The stranger replied that it was of no consequence, and sauntered away. Fitzgerald continued eating his dinner, but upon looking up a few minutes after the man had left, he saw that there were now three rough-looking bushmen instead of one, that they were leading four very fine horses, and were on their way to the homestead, which was not far from the hut. Mrs. Fitzgerald happened to be at the homestead, and was rather surprised when two of the men walked in without invitation. In reply to her inquiry as to who they were, and what they wanted, one of them replied that he was Ned Kelly, and that he wanted refreshment for himself and his mates, and food for their horses, adding at the same time that there was no occasion for fear, as they would do no harm. At once Mrs. Fitzgerald called to her husband, who left his dinner and came over, to find himself face to face with his former visitor, and learn that the men were notorious bushrangers. Having learned from his wife that the bushrangers had demanded refreshment, and observing a revolver in Ned Kelly's hand, Fitzgerald ordered dinner to be provided, at the same indicating where the horse-feed was to be found to Dan Kelly, who at once proceeded to bait the animals.

In the meantime the fourth outlaw had appeared on the scene, and while Joe Byrne stood outside the door as guard, Ned Kelly and Steve Hart interviewed the station hands as they came up for their dinner and made prisoners of them all, converting a detached storeroom into a temporary prison, in which all the "hands" belonging to the station, with Fitzgerald at their head, were marched one by one, the door being locked, and the prisoners told that they would not receive injury unless they interfered or attempted to escape.

Mr. Macauley, manager of the station, was greatly surprised as he approached the homestead on his return during the afternoon, at the quiet that reigned; and his surprise was increased when he learned the cause of it. Fitzgerald called out to him from the storeroom that the Kellys were in possession; at the same instant Ned Kelly came out of the house, and told the manager to bail up, informing him that they were not going to take anything, but had called at the station to get food and rest for their horses and sleep for themselves. Submitting to the inevitable, Macauley said they all might make themselves as comfortable as possible; and tea having been made, they partook of it together, although only two of the outlaws would sit down at a time, relieving each other in couples in keeping a look-out. They also made some of the prisoners taste the food before them—with what object may be easily understood.

Before nightfall another prisoner was made, a travelling hawker named Gloster, who called at the station to obtain water for his tea, after having unharnessed his horses and fixed his camp near the homestead. When told by Ned Kelly to bail up, Gloster at first took the command as a joke, but was speedily undeceived by a threat from Dan Kelly to shoot him where he stood; and after a little parlaying he consented to take his place in the storeroom with the other prisoners. The four robbers then proceeded to the hawker's cart and chose each for himself a new suit of clothes, also taking some firearms that were in the cart; then they returned to the homestead and prepared to make themselves comfortable for the night, which they did by taking turns, two by two, at sleeping and watching.

On the following morning they were astir early, and told Macauley that they intended to stick up the Euroa Bank during the day: and that in order that intelligence of their presence at the station should not reach the township they must keep all parties close prisoners, with any others who might call at the homestead. At this time there were over twenty prisoners in the storeroom under lock and key, and four more were added before many hours had passed. About two o'clock in the afternoon a farmer named Casement drove up to the gate in his spring cart, with three other persons, Messrs. McDougal, Jennant, and Dudley. One of the visitors was in the act of opening the gate when the party were startled at an order to "bail up" from Ned Kelly and Byrne, the former being on horseback and the latter on foot. After some demur they complied, and found themselves in the company of the other prisoners, who, although weary of their enforced confinement, appeared rather pleased than otherwise at the addition to their numbers. Having seen their latest prisoners safely located, two of the bushrangers overhauled the cart and appropriated a rifle, a gun, and some bullets, powder and caps that Casement happened to have there.

Leaving Joe Byrne in charge of the prisoners (the women folk at the station were allowed to move about freely, but were closely watched), the other members of the gang procured axes and proceeded to cut down some of the telegraph posts on the railway; then they tore down a considerable length of the line, chopping away the wire for a good length so that it could not be easily or quickly repaired. While thus engaged they made another capture—four railway fettlers who had seen them destroying the line and gone forward to ascertain the reason, being enlightened and made prisoners at the same time. These men were marched up to the station and placed with the other captives, and then the gang made arrangements for visiting Euroa.

First getting Mr. Macauley to draw out a cheque for a small amount, they made Gloster's lad hitch up the horse in the hawker's covered cart; Ned Kelly drove that, Dan Kelly got into Casement's vehicle, Hart mounted one of the saddle horses, and the expedition started for the township, leaving Byrne in charge of the prisoners, with a rifle in his hand, revolvers in his belt, and two other rifles within easy reach.

Shortly after the party had started, a train stopped opposite the station, and a telegraph line repairer alighted. A glance at the broken line was sufficient to show him that the break had not been caused accidentally and that he would be unable to repair it unaided, and he at once walked towards the homestead to procure assistance. Here he was challenged by Byrne, and speedily found himself under lock and key in the already overcrowded storeroom.

Meanwhile the bushrangers with the carts were approaching Euroa, and Hart had already reached the township, where he entered the hotel and had a meal without attracting attention. When the two Kellys drove up he joined them, and the three went direct to the National Bank. Ned Kelly drove up to the front door of the bank in one of the carts, jumped out, and fastened up the horse. At the same moment Dan Kelly drove the other cart in to the back yard of the bank, and Hart rode into the same place. Although after bank hours, the bank doors were open, as the station-master was frequently in the habit of getting drafts for Melbourne late in the day. Ned Kelly entered the front door of the bank, and at the same moment Dan Kelly and Hart entered by the back door. It so happened that all Mr. Scott's (the manager's) family were at the moment in one of the rooms of the house, as they were just preparing to go for a walk, while Mr. Scott himself was about to attend a funeral. On entering, Ned Kelly presented the cheque signed by Mr. Macauley; but as soon as the other two made their appearance he pulled out a revolver, announced himself as Kelly, and ordered Mr. Scott, Mr. Bradley (the accountant), and the two clerks to "bail up" and "put up their hands." He then demanded the money from Mr. Bradley, who appealed to Mr. Scott whether he was to comply. Mr. Scott replied that he supposed they could not prevent the bushrangers from taking the money, but they would not give them anything. Kelly then helped himself to all the cash in use, amounting in all to £300 in specie and notes. They then prepared to visit the other part of the premises, leaving Hart to keep guard over the prisoners in the banking room.

They conducted themselves quietly enough. The ladies acted bravely, and there was no noise, which would have perhaps resulted in loss of life. As soon as Mrs. Scott discovered who her visitor was she told him that he was a better-looking man than she fancied he would be; but Ned Kelly passed over the compliment without remark, and told her to get herself and children and servants ready for a drive, as he was going to take them over to Younghusband's station. He then returned to the banking room and said he knew very well they had not all the money; in spite of Mr. Scott's protest he got the keys of the strong room, and proceeded to appropriate the reserve cash. This he packed up in a neat parcel with the other, also examining some of the bank notes and letters, and took one or two deeds of trifling importance, but left the bulk of the bills and securities untouched. The total sum taken was £1942, besides thirty ounces of gold.

All this time Mr. Scott's family and the bank officials were under guard, and of course, as every thing was very quietly conducted, and it was after bank hours, no alarm was given. The party then started, Dan Kelly in the hawker's cart with the clerks and one of the female servants leading the way. Then followed Mrs. Scott with her mother and seven children (the eldest of whom was thirteen years of age) in Mr. Scott's buggy, which Ned Kelly had pressed into the service; Mrs. Scott acting as driver and being cautioned not to indulge in any "larks" on the road. After this came Ned Kelly with Mr. Scott and another servant, while Hart, on horseback, brought up the rear. The money was in the cart at the feet of Kelly. In this way the cavalcade went out of the town without attracting much attention. The total number of persons carried off was fifteen. The object of carrying them bodily away was to prevent the alarm being given at once, and as a matter of fact it was not known in Euroa what had occurred at the bank until after eleven o'clock that night, and then the direction taken by the bushrangers was a matter of mystery. Before leaving the bank Kelly secured the two revolvers on the premises, and also demanded and secured two other revolvers and two bags of cartridges, in all about eighty rounds.

At the station the manager and his clerks were placed in the storeroom, and the females joined those belonging to the homestead, the bushrangers shortly afterwards taking tea with them. After the horses had been saddled and brought round, Ned Kelly announced to those in the storeroom that they were about to leave, declaring at the same time that if any of the prisoners moved from the spot until three hours had passed he would afterwards hunt them out and shoot them; and he specially commanded Macauley to see that this injunction was carried out faithfully on pain of losing his life. The outlaws then mounted their horses and rode away at a rapid pace in the direction of Strathbogie Ranges, it being observed that Ned Kelly carried all the spoil. It was then past eight o'clock, and quite dark, and as it was thought probable that one of the gang would be on the watch, Mr. Macauley decided that no person should move from the station until the allotted time had passed. Shortly after eleven o'clock Mr. Scott and his charge started on the return journey to Euroa, reaching the place in safety and finding that no suspicion of the startling events that had occurred under their very noses had been entertained by his fellow-townsmen.

The other parties remained at the station during that night, and left early next morning for their several homes; but not before the police had commenced to move, for they were at work near the station at daylight endeavouring to pick up the tracks of the outlaws, hoping to get upon them while still fresh, and to follow them until they came up with the bushrangers themselves. In this, however, they were disappointed, for they found tracks leading in every direction; and then it became plain that the Kelly sympathisers had been at work before them, riding over the ground, first in one direction and then in another, in order to baffle the pursuers and throw them off the scent.

The raid was one of the boldest that had yet been made in Victoria by any bushranging gang, and the colonists were prepared to hear of other outrages of a like character at any moment. The bankers in the country towns were specially concerned, and revolvers became prominent articles of furniture in the managers' rooms and under the serving counters. The police became wretchedly restive under the monotonous round of unsuccessful search journeys, and the unmerited abuse heaped upon them by civilians who thought failure to take the outlaws, or even to catch sight of them, was the result of inefficiency. And just at this time the Victorians passed through the very experience that had so worried New South Welshmen during the reign of Hall's gang and the Clarkes. That four young fellows should set at defiance every effort of that mighty Engine of Civilisation—the police force—was one of the most extraordinary things of the age—as ridiculous as it was reproachful; and in the eyes of a large section of the public the police appeared greater offenders than the outlaws. But the police were not altogether to blame. They did their utmost to follow and capture, but were always at a disadvantage, having to carry on their work in places to which they had hitherto been total strangers, while the outlaws enjoyed the advantage of knowing every turning in the sombre fastnesses, and having scores of friends to serve them in a double capacity—informing them of every movement of their pursuers, and at the same time hiding the tracks they had made, and giving the police wrong information, or misleading them in a thousand and one different ways.

To stimulate the police to even greater exertions, and at the same time place a strong inducement before the Kelly sympathisers to turn informers and betray the outlaws, the Victorian Government increased the reward for their apprehension to £4000—or £1000 for each one taken. It was a big bait, but it was not so readily taken as the authorities appeared to anticipate. And still the fruitless search went on—days growing into weeks and weeks growing into months without any nearer approach being made to the accomplishment of the end desired. The press, which had boasted during the reign of the Hall gang that no bushranger could actively exist in Victoria, found its weapon turned against itself by contemporaries in New South Wales, and sought to ease the pain of its humiliation by "slating" the police of its own territory. And didn't the Force in New South Wales chuckle over this turning of the tables! Even the blacktrackers of the elder colony made sport of the men who had boasted and failed.

At last a hope sprang up in the breasts of that section of the police which had set itself specially to work to bribe some of the Kelly sympathisers. One man, who was supposed to be a bosom friend of Ned Kelly, appeared inclined to "turn dog" on his former mate. This was Aaron Sherritt, who lived near Beechworth, and was known to have been one of the most active "telegraphs" of the gang, supplying them with information concerning the movements of the police and furnishing them with food. Sherritt was carefully approached by one of the leaders of the search parties, and after much persuasion consented to put the police on their track, the promise being made that he should receive the whole of the £4000 which the Government had offered for their capture if the information supplied by him resulted in their being taken.

The first piece of information supplied by Sherritt was that the gang had decided to cross the Border into New South Wales, and there "stick up" one of the banks—at Goulburn, he believed. He said that they had asked him to accompany them, but he had declined, and they had then set off without him. Subsequent inquiries proved that there was truth in Sherritt's statement, for Byrne and Dan Kelly were reported to have been seen going in the direction of the Murray River, and to have called for provisions at a shanty where they were known. This information was conveyed to the police on the New South Wales side of the Murray, but although the river crossings were carefully guarded, no sign of the outlaws could be discovered; and the authorities decided that they had been deceived, and lived in daily expectation of hearing that an outrage had been committed at some place nearer what the bushrangers were pleased to call "home," for they knew that they would not keep quiet for any length of time, especially as their last raid had been so successful. And sure enough, before ten days had elapsed, New South Wales and Victoria were both ringing with the news that another successful raid upon a small town had been made, and that another bank had been robbed. [continued]