William Bailey was born in 1827 in Wellington, Somersetshire and came to Australia in 1848. He landed at Melbourne and was employed at the wine and spirit merchants Campbell & Creswick, however he remained only a short time. He also had a short stay, eight months, at the Ampitheatre Station, Lexton when he was made manager at the Mt. Cook Station, Werribee.

He left Mt. Cook Station in 1851, having been bitten, like so many others by gold fever, and joined the rush to Fryer's Creek. Not being overly successful he then made his way to Bendigo, and Ballarat, where he settled.

After initially being involved in mining he entered into partnership with Wilson Brothers in the operation of general stores for approx. seven years.

He returned to mining with the Staffordshire Reef Company near Smythesdale where he remained for three years as manager before accepting a similar position with the Egerton Mining Company, where he was occupied for approx. the next twelve years.

It was here that he derived his nickname. The mine was owned by the renowned Learmonth family. Bailey was a loyal manager and when the Learmonths decided to sell the mine he arranged the sale. As a 'reward' Learmonth's paid him a five per cent commission on the sale amounting to six hundred and seventy five pounds. Bailey was apparently so moved by this action that 'tears coursed down his cheeks as he mumbled choked words of gratitude.' Hence his detractors referred to him as 'Weeping Bailey'. At the time of the sale the returns from the mine had been diminishing, and when the Learmonths paid him his sizeable commission they were unaware that they had rewarded him for arranging the sale of a mine of which he was actually now a part owner. Fortunately, or unfortunately almost immediately after the mine was sold its returns increased dramatically and the Learmonths sought legal action.

The resultant court cases dragged on for some years, finally Bailey was cleared, however at the time the Learmonths' decided to drop their appeal to the Privy Council their legal costs were believed to exceed fifty thousand dollars, which could have been doubled by a loss. The result of the case brought such local rejoicing that townsfolk roamed the streets cheering and singing, and the City bells were rung to the disgust of solicitor, J.D. Wanliss who protested to the council about the ringing of the bells on such an occasion.

The Rev. Mr Cummins married Bailey and a lady from St. Columb Minor, Cornwall, Miss Emily Trebilcock at St. Pauls Church of England, Bakery Hill, Ballarat on the 15th August 1860, and they had eight children between 1861 and 1876. According to 'Ballarat and Vicinity' (1894) at that time there were five sons and one daughter still living, and Bailey was considered one of the wealthiest gentleman of the county. It is interesting that Bailey's brother Edward Jonathon Bailey married Ann Mathilda Trebilcock, in 1857, so with William Bailey's marriage the two brothers were married to two sisters. Edward & Mathilda had eleven children.

The City of Ballaarat Rate Books record that Bailey took over a stone house from the barrister Townsend McDermott between May 1874 and May 1875. The 1874-5 reference for McDermott lists a significant stone house as the rate payable was 110 pounds and the residence was occupied by seven people. The corresponding entry for 1875-6 records the same stone residence for William Bailey and occupied by ten persons. In 1881-2 the stone house which was then occupied by eleven people had an increase in rates to 120 pounds, it was not until 1882-3 that the building is described as a mansion. At this point the rates were 200 pounds.

He built his mansion, complete with tower at the corner of Drummond and Mair Streets. It was designed by architects Caselli & Figgis and printed information states that it was completed in 1883. In 1883-4 the rates were an astonishing 400 pounds per annum. We are told that 'Mr Bailey's handsome residence is one of the most palatial homes in Ballarat, and the furnishing of the interior has been carried out with a taste and elegance which cannot be surpassed. The large and very artistically arranged grounds surrounding it are a marvel of beauty.'

He was obviously a man of good taste. With respect to his house, architecturally there is no overdone flamboyance or there are no over grand embellishments which tainted some of our more stately residences. It has been said that every detail of his house, with its massive walls of brick, covered with cement render, suggest a fastidious eye. This is equally true of the pillared verandahs, which are intricately paved in tiles, of the discreetly ornamented entrance hall, drawing room and dining room, and of the timber and marble staircase sweeping up from the ground to the first floor.

A reference in 'Victoria and its Metropolis (1888) states, 'The design and finish throughout are most elaborate, yet the building was constructed from start to finish by Ballarat skill and labour. It was completed in 1883 and cost, including fencing, over fourteen thousand pounds.'

Thankfully, to preserve its character when a wing was added to the house, it was built in the original style, in accordance with plans Bailey had left. The addition is the section of the building to the north of the tower. When Bailey built the building it originally had cast iron verandah posts, frieze and corner brackets, the present heavy columns being a later modification. As an example of a truly grand house, it is unique in Ballarat. The internal 'marbling' is still a delight.

On one memorable night, when his senses were obviously dimmed, Bailey mistook a statue of King Arthur which stood poised on top of the newell at the foot of the stairway for a burglar.

He whipped out a pistol in defence of his property and a shot rang out, as Bailey was accustomed to keeping large sums of money in a strongroom built into the thickness of a wall under the stairway. According to a story, King Arthur was wounded in the back and the resultant bullet hole was used as a repository for used cigarettes, by staff in the early years of the hospital until one caused a small fire.

Despite having cost Bailey fourteen thousand pounds in the 1880's, his derelict mansion which had been empty for some years was bought by the Church in 1915 for a mere four thousand pounds. Apparently the house had been empty due to a local belief that it was haunted by Bailey's ghost.

In 1887 Bailey was Vice-Commodore of the Ballarat Yacht Club having a 7 ton yacht the 'Viola'. At this time he was the Chairman of the Prince of Wales and Bonshaw (Mining) Company.

He owned Terrinallum station, one of the finest estates in the Western District, a block of 50,000 acres well supplied with water and having the Mount Emu Creek running through it. He died on the 25th April 1906, aged 78 years and was buried in the Ballarat Old Cemetery. His wife, Emily died aged 79 years on the 19th January 1913.

Bailey's mansion survives today as an integral part of St. John of God Hospital, a grand architectural testimony to the wealth of its original owner.