THE BALLARAT TRAGEDY. PROOF OF STEELING FRIENDSHIP.

{Our Own Correspondent.) f>ER B.S. MANAPOUBI ATTBB BLtJKV.I Melbourne, 17th March. The inquest in connection with the Ballarat tragedy was held on the 11th inst Johnston, who murdered hta wife and four ohildren and then attompted suicide, was taken to the Court on an ambulance Btrctcher hiu faoe being covered over, and the large crowd assembled in front of the gaol were unabln to sen him. Johnston's face looked j well, but his body showed the eff -cts of the poison. Rvid -nco whk given by the eervantc at t> tho finding of the dtad Iwjdioi', and b\ t'la (tovcrtimenfc analyst to the effuct thnfc tho rtonwftliH of th'> cbildrpn cmt'ltnoi pimsift Ruid Robert Chin.ut '«•, ><r)iiatlflr, rcf-iding at Oarranliall'ie t-a'ii linn lie kni'w Johnston, ai.<t bw\ wv-ra] mopptary traim u;ti(in« with Inm Johuittfin started a-i a stook ami st'ition agent in 1880. When ho Btarted business witness gave him a guarantee to the extent of £3500 in the City of Melbourne Bank. Subsequently he gave him a second guarantee for JBI6OO. Witness saw Johnston two years after the £3500 guarantee was mode, and j told him that he would release himself from the debt. One day in the street Johnston met him, and said, "Hera yon are, Bob; I'm very much obliged to you for helping me. I'm doing a good bnaincss now." Johnston produced what purported to be the guarantee for the £3500, and then tore up the paper. He gave him no other guarantees, but accepted his bill for £2500 on the 25th September, 1890. Witness never gave Johnston the chequo for £6816 10a produced. Never gave him a blank cheque tor authority to fill up a cheque for that amount. Thought that the handwriting on the cheque produced was Johnston's. The cheque was on the Union Bank of Australia, where witness banked. Besides amounts previously mentioned Johnston owed him £575, and on the 10th of | November he sent him a cheque. When I he gave Johnstou the second guarantee, he thought the second had been released. The oheque for £575 was presented, bufc ifc was returned " refer to drawer." The cheque for £6816 wai presented at the Bank and paid. Andrew Williams, manager of the City of Melbourno Bank, atatedthatin 1886 Johnston opened an account with him with a credit balance, and arranged for credit up to £3500 on Mr. Chirn^idu's guarantee. < 'n Bth Deoember he received a oheque from Johnston for £6816 10s, which covered the whole of the indebtedness. When witness spoke about the acoount getting higher, Johnston always put him off, as he said that he expeotod to realise £5000 on a station in Queensland. ' On the Monday witness went to Johnson's house, but he was in bed with a bad headache. Witness asked him for the promised oheque, and Johnston replied that he would bring it down next day, asking the manage..' to fill it in for £5000, or for the full amount if he liked Witness handed him a oheque, whioh he sent over to the Union Bank to see if it was Mr. Chirnside's signature. When witness heard of the tragedy he filled in the cheque for the Ml amounts presented and wiped off the whole amount. Mr. Chirnside was liable through the guartees even without the oheque. The jury, aftef a short retirement, returned a verdict of MUrder against James Johnston. During the day Johnston wrote the following : — " I know all that's going on and what they are charging me with, but I am as innocent as anyone in Court. I reserve my defence for a highor court."