RESIDENT MAGISTRATE'S COURT.

Timaru Herald, Volume XL, Issue 2946, 3 March 1884, Page 3

RESIDENT MAGISTRATE'S COURT.

GERALDlNE.— 9atubdat, March 1. (Before H. C. Baddeley, Esq., 8.M.) ASSAULT." E. Woofentlen, charged with assaulting bis wife, was fined £{>, or m default ono month's imprisonment, am] was further bound over to keep the peace towards her for six months, himself being bound for £50 and two sureties for £25 each. (Before H. C. BaHrleley. Esq., E.M., and DrFi.h, J.P.) b&:bbzzi.kmbnt. Joseph Maokar, of Mutaura, on remand from Thursday, appeared to answer a charge of embezsline three sums of £6 9s 6d, £1 6s 6i and £1 16s 4<l respectively, tbe property of the Government Insurance Department, while acting us 8 travelling agent of the department. Xhree other informations of tbe same kind have been sworn, respecting sums of £1 Is 6d, £2 8s 4d and £1 12s, but these were not deal?, with m this inquiry. Tbe total amounts to £14 8s 2cl, a sum which is mentioned m the evidence. Mr J. W. White, Crown Proseoutor for tbe district, cenducted the prosecution on behalf of the Commissioner. Dr Foster and Mr 0. Perry appealed for the defence. Mr Stout wos to have appeared for the acoused, and wont up to Geraldine for that purpose, but on arriving there he received a telegram demanding his immediate return to Dunedin, consequently he lid not appear, and Mr Perry conducted the defer ca. At the request of Mr Perry, the witnesses were ordered out of Court. Mr Wbite, m opening tbe oase, said acoused entered the norvics of the Government as a travelling insurance iigent on or about the 29'.h October lasi;, under an agreement which contained the following amongst other conditions — that he should be " under the direction and control of tho Commissioner acting on behalf of Her Majesty the Queen " ; that he should "pay into tbe Bank of New Zealand to credit of the ' insurance account,' on the day of collection, or as soon thereafter as possible, all moneys received by him on bobalt of the department"; that he should "devote his wbole time and energy to his agency and transact no other business whatever" ; that be should hold the agenoy " only on condition that he conformed m all respects to the rules ani regulations of the department, especially those contained m tbe cover of tbe deposit :-eoeipt-book issued to travelling agents, and the* any violation of the agreement or of the rules and regulations of j the department should subject him to immediate and unejodition&l dismissal ," The special instruction referred to as contained m the receipt-boo!:, run* — " Every deposit mußt be paid into bank to the credit of the insurance account on the day of its receipt (or if there is no nger cy of the bank near thejplace where a depoiit is received, then immediately upon arrival at a place where there is an agency of the bank), and the particulars of tho deposit endorsed on the bank receipt. When them is delay m banking, the sgoot must explain tbe cause of such j delay when for »urding bank receipts." Acnused, therefore, Mr White remarked, had j clear instructions not to retain moneys received by him a single day longer than was absolutely necessary. Oa the 14th January last, accused received from a Mrs Wadlow, living at Woodbury, a few miles from Geraldine, £6 9) 6(1, from Joseph Fifield, £1 6s 6J, and from John Fifield, £1 16s 4d, the threa sums referred to m the informations. There is no brunch of the Bank of New Zeai land at Woodbury, but two daya afterward*, on tbe 16th, accused was m Geraldine, where there is a branch of the bank, and there, according to his instructions, he ought to have paid m tbe rroney. He did not pay it m. Accused was m Woodbury again on the 17th. and m Geraldine again on the 18th, and he did not pay ir. thosu sums on the latter day ; m fact he bai never paid them m. After being m Garaidine on tbe 18th, and having there an opportunity to pay m those sums., he went again to Woodbury, and from thai, place on the 19tb be wrote to MrTborne, Superintendent of Agents, at Wellington, m the following terms :— " Please pay to Commissioner £H 8a 2d, being tbe amount of enclosed first premiums received, there being no means of sending tho money, and oblige." Enclosed with thin order were six receiptbutts, three of whioh referred to the threo sums mentioned m the informations now being dealt with. Xhat memo or order, however, though addreised to Mr Thorne, was not sen); to him ; it vias sent direot to the Commissioner. The same day, the 19th, accused telegraphed ti Mr Thorne m these words : — " Thoroughly disgusted with your treatment of me m finances from first to last, and object to continue under yonr leading strirge financially. Therefore consider working out notice [referring to month's notice required before leaving the service]. As usual, money telegraphed for not to hand when left Geraldine last night. Was id saddle till midnight, and am on way bo Mackenzie 'Country. Recall money telegraphed, and honor order on Commissioner for premium) received. Reply Albury." The order was received, as stated, by the Commissioner, who showed it to Mr Thorne, and Mr Thome at once repudiated it, — not supposing, never having supposed, that accused had any right to draw upen hi an m such a way. It would be shown that sccuaed had drawn on Mr Thorne occasionally and bis orders had bean honored ; but Mr Thorne had bean advisftd of tbe pur]x>ses of those orders, which were for qoitn different, purposes than the one for £14 8s 2d. They had been orders for the parchasi) of horses. Mr Thorne had always forwarded >x> accused or to his wife ihe commission earned by aooused, and on no occasion had any order been net and honored on account of deposits received. It would be shown, m faot, that on January 6th he bad drawn an order for £3 8s Sd for moneys received as deposits, and on tbat occasion M.'r Thorne declined to honor She order, and most unmistakeably indicated to accused th) fact that he had no right whatever to draw orders for such moneys. Accused then paid the money into the bank, und forwarded the bank receipt to the Commissioner. He mentioned this to show tbat, this having occurred on the sth January, bis order having been dishonored, and he having been told tbe reason and instructed that he must not draw such orders, accused must have knovn that m keeping the three sums named m the informations he was going dearly agiinst the terms of his agreement, against tbe special instructions oontained m his deposit receipt book, and also against the express warning of Mr Thorne that he had no right whatever to do anything of the kind, and tbat tuoh a thing could not be tolerated for ono moment. It was on the 6th that he sent the order to pay £3 8s sd. Two days afterward), on receiving a telegram from Mr Thorne, he paid the money into the bank, and sent the bunk receipt to tbe Commissioner m tbe usual manner. On tbe same day, 7th Jan., accused wrote to Mr Thorne from Titnaru, " Kindly pin two deposit receipt butts sent yoti on Saturday to the banl receipt for £8 8i 6d, and give same to Commissioner." Tbat appeared to be an attempt to get Mr Thorne tc color or conoeal the irregularity accused had been guilty of. The six sums mentioned m the informations before the Court not being paid m, accused not having accounted foi them m any way, on tb« 26th January th< Commissioner telegraphed to him, " )?leas« inform me whothor you hove paid m £14 8i 2d, deposit* collated by you at Woodburj and Gernldine. If not, bank moneys at. onc< sod liand receipts to resident agent, othorwisi audit; will intsrpose." (" Interpose," it wai shown, was substituted m transmission foi " intervene.") To that telegram aoouaec replied on tbo 26tb, by telegraph, " I'ostoc order for amount, Woodbury 19th. Bee Superintendent. Threat audit quite uncalled for. R-isult serfing two masters." Thil mesuage was received by the Oommusionei

after hours on tho 26tb, a Saturday, ami 11 tbe 28th (Monday) Mr Luckie telegrßphei again, " Your order cannot bo recognisi d ; i is against law. Deposits public money Already previously warned. Mimt aeain re quest immediate payment into hank." Ac cu«ed replied ob the same day, "Have sem araouut premiums received only manner withir. power under circumstances. Had there beei bank within reach should have banked. Then w is not, therefore drew uponSupetintendent 01 with other moaeva hare requested him to pay Does he refuse honor my order ? I instructed him recall all moneys sent Oeraldine and Pleasant Point." He would ask theii Worships to believe that that was an untruthful telegram. Accused received thf money m Woodbury on the 14th j was m Geraldine, where he could have banked the moony, on the 16tb, and again on the 18th, When the Commissioner telegraphed to acoused on the 28th he sent a copy of thf message to Mr Niven, resident agent m Dunedin, who m coneequenoe caw Bceused and requested him to pay the money m. Accused replied that he was impecunioun, he was hard up. and could not do it, and further, that hu hud given an order on the Superintendent. Mr Niven would be called ti> prove this. Without going fnrther, he would submit that if he proved by evidence the faots he had ttated, the clear duty of the Bench would be to commit the accused for trial. His first witness would bo Mr Luckie. Mr Perry asked for a deposit receipt book from which acoused had taken two receipts. Only one book was produced which had been fully used. A long time was spent m inquiring what bad become of the other. Accused »aid it was taken from him when he was arrested and was not given back to him. The police were sure that it was given back to him witb his other proporty when he was released on bail, and Mr White pointed out that they bad no reason for keeping it. What had really become of it was not ascertained. David Mitobell Luckie stnted : I am Government Insurance Commissioner, and produce my appointment. Aoeused was appointed a travelling agent of the department. (Agreement, on printed form, put m.) In the ordinary caurse of my duties I received this communication by post (the request or order from acoußfd to Mr Thorne to pay the Commissioner £14 8s 2d). I also received cix buttß of receipts at tbe same time. (Butts put m.) I showed the ordor to Mr Thorne, and told him it was irregular. He said " Yei j I cannot pay it." Mr Thorne wrote the memo nppearing on the back. (This memo, dated 26th Jan., ran — " To Commissioner, — On the 19th Jan. Mackay telegraphed to me to honor this order and oh»r«e it against his commieaion. Ob the sth January 1 had telegraphed to him that it was utterly impossible to treat Government deposits as matters of account, md he must pay tbe amount m himself, as I id not wish to report it officially to you. The order was sent to you to present to me, which seems extraordinary m tho face of my telegram to Mackay of tbo 6th January. ") The witness then gave evidence as to the sending or reoeiving the telegrams quoted by Mr White—" Please iolorm me wWber you have paid m, etc. ;" " Posted order for amount Woodbury, etc. ; " " Your order cannot be recognised, etc ; " " Have sent amount premiums received, etc. ; " and proceeded: I sent a copy of tbe hut telegram to Mr Niven, and from him I received a telegnim on the 28tb,— " Mackay states hard uo- Refuses bank money, at order given on Superintendent Beat plan, I think, telegraph hare money lying Geraldine enable him b*nk deposics. Lyall and Parkes angling for him, but seems di»inclinod leavn department." The three sumß— £6 9s 6d, £1 6i 6d, and £1 16s 4d have never been paid into my office by accused. Cross-examined by Mr Perry : I received a letter from accused some time, m October list, applying for employment ; the first overtures came from him. He was formally appointed on the 29th October. Mr Perry : But here is the butt of a receipt showing that he received money on account of the department on the 15th October. Mr White said accused's sorvices commenced on the 29th, but ho was for a week or two before that learning tho business under aMr Deveril. That would explain the earlier date of that receipt. Cross-examination continued : When I received Maokay's letter I telegraphed to Mr Thorne, wbo was m the neighborhood of Mataura, to make arrangements with him. I cannot say whether Mack&y and Deveril canvassed the district on half commission for some lime before Mackay was formally appointed. Mackay has not, as far ai I am aware, made v claim for half the commission of the Devoril trip. I never heard of an arrangement by which a new agent should go with an old one for a short time to learn the business, and such a matter would come within my knowledge, I think. I hear now for tho first time that Maokay did so. I cannot say the (? rose amount of the policies issued on proposals sent mby accused. I have not myself made payments to accused direct.. Ho has been paid from time to time by Mr Thome, advances against bis communion. The canvassing agents are really (.under Mr Thorne primarily, under my direction. I appoint and dismiss the agents as I see fit under the powers given me by olause 3 of the gazetted regulations. (Clause read.) Mackay never previously forwarded an order to me. Mr Thome had received other orders, one of which was reported to me. I had no-, previously warned Mackay, but, Mr Thorne had. I ;saw his telegram to Mackoy, telling him it was impossible to allow deposits of premiums to be made matters of account. All premiums and deposits received ought to bs icnt to me, or rather they ought to be paid into the bank to the insurance account, which is my account as Commissioner. I have no recollection of Mackay sonding the cheques of parties paying him, direot to me. It was do! his custom, and such a practice would not be tolerated, as we have no meann of knowing what a obeque if worth. I have not received " a number " of cheques from Mack»y. I cannot recollect receiving even one from him. (Mr Perry crots-ex-ammed on this point (or tome time as to particular obeques alleged, to have been nont to Wellington by accused. Witness denied all knowledge of any being teat. Tho sandini? of cheques would be irregular, and would be reported by th» officers. He recollected ons instance m which a oheque was sent, and it gave so muoh trouble that lie remembured it well, and roust have remembered if other cases bad occurred.) I do not open correnpondence addressed " Commissioner." A correspondence olerk, Mr Dean, doos i',. Registered letters generally oome to me. I have no rocolleotion of receiving from Maoliay a cheque of Jeremiah Leon, Opawa, for £8 7s lOdj nor an order on tbe National Mortgage Company, Timaru, by Mr T Pringle, for £19 Is 3d. The canvassors arc often out for a month *,t a time m tho ba<ik country, and m such cases they bank whim they can. If they cannot bank tboy may send their oheques direot, with th« explanation that they were not rear a bank. I believe I got a letter from Maokay m January, •tating that be was going into the Mackeoziu country and would send the cheques he received direot. (Letter to Mr Thorne put m, dated 7th January, m which acoused sketched his field of operations. One passage ran "The trip shall occupy two to throe months, and it will be six weeks or so ere we reaoh a bank, probably, at Cromwell. I will therefore forward cheques for deposits.") I did not receivu a cheque of B. P. Bartrum's, Woodbury, dated Jan. 16th, for £2 7s 6d, nor a cheque of A. McLeod'a. If Mackay says ho sent suoh cheques to tho departuiant bis statement; if incorrect, as far as my knowledge goes. ] never heard of these ohoques beforo. If an agent, being far from tt bnnk, sent cheque direot, tbey should bslho cheques herecoiTod, not bis own ; certainly not his own, I would take an order on an established mortgage company as readily at a choque on a bank, because we do not issae a policy until thf money is paid. Of course, when the authorised agents of the department receive monoi for deposit*, the department is liable though the money might nevor be paid m by tb( agent. ' ' To Mr White: Inovor heard from acoused anytbinjf to the effeot that he had sent ohequoi or orders to the department, m explanation o\ the deposits received by him not being pnic m. This is tbe first time I bavo heard of it except as to the two onltn on Mr Thorna, tc pay tho Commissioner, both of which wen; re pudiatod. This concluded tbe Commissioner's tvi denoo, and at 1.30 p.m. the Court udjour/iec for an hour.

Q.orge Thorno, jucr., Superintendent of l^enis, was next called. He stated: Accused entered the service of the Department under the agreement produced, as travelling agent. The order produced, for £14 8a 2d, and the six butta of receipts, I firot eiw on the 24th or 25th January. They wera sent to me by the Commissioner, with tho remark thsfc it was very irregular. The memo on tbo baok of iibe order ia partly m my handwriting. The flrst part was written at my dictation, and I initialed tho whole. That memo was my reply to the order. Accused has never accounted to mo for the amounts named m the first thrco of the six butts.— (Tho three dea't with m tbo present case.) Pi\>riou»ly to leing shown that order I received v telegram from him, dated Geraldine, January 19t'j, asking me to honor an ordor for premiums. (Tolegram put m, " Thoroughly disgusted, etc.," as above.) I replied by letter to that telegram. On the 6th January accused sent me the butts for two aiuoun's reonived, and asked me to pay the money m, and pin the butta to the bank roceipt ani debit his account with tba amount. I replied by trlegram that it was irregulur, and be must bank the money himielf. Accused m his letter of the sth wrote, "I have to request, you. to hand over amount of enclosed receipts (£8 8s 5(1) to the Commissioner, ancl debit me with tho tamo m account j and m horse hirj is an expnnsive item, I expect to pass an order upon you to-day for the cost of a horse whioh I purchase" by auction." I replied by telegram, " Will honor your draft for hotso, and have remitted bank £10. Utterly impossible make Government deposits matter of account. Pay m the £3 8s 5d yourself, as [ do not wish to report the matter officially to the Commissioner." Mackay replied to that telegram by a long letter da'ed January 7th, Bending a bank receipt for £3 8-» od, and asking mo to pin the two butts he hud serit previously to his receipt, and post them to the Commissioner. On tl>e 17th I received a telegram from him, " Have dono proposils for £14,C0 since laßt night with Dr Kicholls. Will have to return here to-morrow to compitta four other cases, as parties picnicking today. Pleiuo remit me £12 to-day," The £12 was remitted as an advance against accused's commission, and I sent him a reply, " Have wired you £12 nt bank. Sinco jtarting you have now had £10 more than £5 per week." I have received three orders for th? purchase of horses. In each cuse I was advised what, the orders were for, and he wotti m.» special lettors asking me kindly to pay them. In letter dated Ist January ho writeß, " 1 shall bo very pleaeed when I am ia funds, so tbat a drift may be honored m ray favor for any available balance to my credit, as my i wife gets very nervous and put about when ebe gets short of money. I shall have to buy a horse for the journey, as horse him is very expensive, nnd shall have to give an ordor upon yon for the amount should I purchase, which kindly honor, and oblige." Mr White said be brought, out thia evidence to rceet n possible defence that the accused bail been m the habit of giving orders on the Superintendent. Thia evidence would show that the orders whioh had been honored were for horse hire and purchase of horse, of which spoirial information waa giron to the Superintendent — not for payment of deposits which ought to have been banked by accused. Witness continued : I received a letter from acoujod, dated Timaru, sth January, enclosing an order m favor o£ Maclean and Stewart for £5, the price of a horse. I honored the order and paid it by my private cheque. I did not allow it tj interfere with the accounts of the department. (Acnuaed't letter read — " Aa you are aware, I telegraphed on my arrival hero, over a fortnight ago, for iJlOto enable me to settle up for horao hire, «itc. Nest day a telegraph remittance for £1 cir.ly was handed to me m the train just at the Express wns leaving. I could rot, therelore, cash it until my return, and noanwhilo hud to borrow from a friend to take ma home, leimng horse hire unsettled, which ii il sort of thing I do not like, aa m my 22 Ifnara' wanderings over the country I hail ilways hitherto managed to pay my way. Since entering the department I have done all ccy travelling expenses upon £10, which is all I have recaited, apart from my family ; m fuct, part of that I handed over to Mtb Mackay for family requirements, and having done £90 m commission during v fortnight, ai I telegraphed you, and did not accept your profi'eir of money telegraphed to Ducedin a few days previously, I did not think my request for £10 unreasonable, and which waß required by me to pny travelling expanses incurred. I thetefere fedl rather annoyed at £5 being nent, and then too late to be of use. I shall be gled when my account is m funds, no that I c»n do my own financing, as I feel very much the present hand to mouth style ; so blbo doos Mrs Mackny, who has never before beim accustomed to such a system of moneygetting, which would have been unnecessary but for my partnership trip with Mr Devuril, made at your request, and for which as yet nothing has been placed to my credit, and for vrhioh, kb telegraphed repeatedly, I look to you for half the commission ai arranged at Mataura, and have also written to Mr Deveril to arrange with you whilat m Wellington. To avoid telegraphing for monoya here at present, I have to request you to hand over the amount of the enclosed receipts (£3 8s sd) to the Commissioner and debit me with the same m Recount ; and ai horse hire is an expensivo item, I expect to pass ft!) order upon you to-day for the cost of a horse which I purchata by auction.") A second order m favor of a Mr Clegg for £7, tha prico of a hone, I honored and pßid by my privite cheque. This order was dated January Bth, and was accompanied by a note nay ing, " As Dr Wohb is this morning stuck fur a hor«<i, I have hired him my purchase of Saturday and have bought another, with harness. You will obsrrvo that I have got two hones nnd turn-out for the price of a borje. But for tbis, we would be ntuok up hnre for a wneli, as horjos are 30a a week." On the 14th January I received another ordor for a horpn m favor of W. Scott, Woodlmry, for £5, whioh I aho honored and debited Maokny's oommittion account. This order was accompanied by a note — " Kindly honor the above upon presentation. I have chopped my two Dags for two beauties that will carry me and my new doctor anywhere m double quick timo, as I wan afraid of tho old ones breaking down with uu." Two of those ordcra I paid with my private cheque, tho third with an imprest cheque, a Government cheque. Altogether 1 have asnt Mackay and his wir'o m payment of or<l«rt £82 m cash. Tbat dues not inoiudo £12 telegraphed to Qeruldine nor £10 telegraphed to Pleaeant Point. That would mako £101 altogether sent to him, hut he did not draw the two sums I have inoctioned, and T recalled them. The £12 waj lying to Mac!ia}'s oredit at the bank at Qoraldino till about a week ago. [ may expluin that alt advances to agents nro at my own rink. I sent £10 to Mrs Mackay (included m the £82) or the 23rd January. That was nt my own risk, Iho total amount of commission earned by aoeu ■»>.} while m the employ c>f the dupartnient/ wag about £67 i that m, on all the caros that have closed up to to-day, nnd there bus beon n month for closing his proposals. If he bad taken the £10 and £12 ). stood to lose. £38. As he did not take them I stood ti> lose only about £10. When I pud him those moneys ho had only £45 to Inn credit, so that. I »U>erl to lose heavily. At he did not draw the £10 and £12 his overdraft traa roduoed by those umounts. Cross-examined by Mr Perry : Maokivy has novor claimed from mo £30 for half tin commission onrnod by him and Mr Dovoril. He telegraphed to mo that Dev«ril owed him aoroething. I received a lottor from Maokay datuil October 18th, m which he said "Mr Dewril hat done seven lives m my coiopitny for £1250 since you left. . . I etart on my own acoount on Monday, and I hopo tben to prove what I am capitble of doing." Ont)ie22odhe wrote— " When I last wrote I understood tbat Deveril and I would p:ut company on Saturday, but ho desiroß me to aocompony him this week." (Thia arrangement, Mr White pointed out, would bring them to tho 29th, tho date of accused'u agroemont.) On the 29th he wrote — " My latter of tbe 22r.d will huvo adviaod you of last week's intended operations, anil to-day's tolegrtm of our combined labors during our short copartnership, now <i isBolvdd," : I think souio tort of an arrangemnnt whs madu between Miwbivy and Deveril as to half commission. I suggosted to Muokay Unit as be was inexperienced, und Dereril vino a Tory oiporicnoed man, Devjril migbt te-aoh him the insurance work. I djd got give tlieru

a district to work together to divide the com' niifmon between them, but I am awarf that they went togethor. I could not re. cognise any such partnerehip. It would b< as much as my billet Tvas worth to do so. ] thought it would be a good thing for Mackay to join Deveril, but I did not engage him or any such terms. I did not give him to believe that if he joined Deveril the department would pay him half commission. I did not engage htm except as stilted m the agreement before the Court. I hare paid to Mapkay the coromiation on all cases thet came m Mlacks.v'a came. I produce his fli'Bt credit note, for £3, for work done on October lGth. The money was passed to his credit on October 30th. I do not know what work was paid for to Devoril between the 15th and 29th Oct. Mnokay telegraphed to me to collect money for him from Deveril. He telegraphed to me a good many proposals that were not turned into policies. He telegraphed to me on Jan. 18th, stating that he estimated hie commission at £90. That was the first time I heard the amount of his claim. He never wrote or te'egraphed to me about a claim of £30. I never heard of any ckim of £30 before today. On Oct. 29th Mnckav telegraphed to me from Mataura, "m Mr Deveril's company have done tiro dozon live* for £8000. Kindly remit here, pßyuble Elizabeth Maokay m absence. Return !aero Saturday night. Commenced work alono this morning near Tapanui. Will strain every nerve to effect business. Writing fully." I took tbat telegram to be my authority to remit £10 to Mrs Mackay, nnd 1 remitted it next day as an advance against his commission. I had remitted £5 to him as an advance before that, on the 15th. I have his receipt dated the 17th. These were Mm only payments before the 29th. I told him as he had no money I woulH give him advances to the extent, of £5 a week. This explains the passage m my telegram to him of the 17th Jan., " since starting you invve had £10 more the.n £5 a week." By his agreement bis commission was to be paid upon the amount of the policies issued on the proposals sent m by him, not on the amount of (he proposals, so it was impossible to say what the ooratniseion on proposals for £8000 would be until the policies were issued. The commission to travelling agents is 15a por cont; on £SOOO thai; would be £'60, but reckoning tha'; way is counting cbicknns before they are hatched. Macl:uy sent m 90 proposals, of which 38 were closed, 41 were either unexamined or not closed, and 11 were rejected. Only 38 of the 90 proposals beoaine policies. I Bent him every week to his addresß at Mstaura a credit note showing what he was earning. I did not kr<ow where be was from day to day — [ knew ba was m the Mackenzie country some time — ec> I sent the credit notes to his uddresn, as he was going backwards and forwards. The credit noleß show wbat policies have been issued. Accused ought to have a list of the proposals he obtained himself. Of course the department could furnish such a list. Agents are given a full stateraunt of the result of their work every six months, but it is only a summary of the weekly credit notes. I could not know how much was coming to him except from week to week, and the credit notes informed him of tbat. The only way a travelling agant could | know what he had earned would be from the credit notes. Mackay was canvassing about Garaldine and Albury at the beginning of the rear, but tho notes ware sent to his address at Matnura. As a rulo agents aro informed by a. line on their credit noteß of proposals which are :rejeotod. Ido not think it has always been done m Mackay's cabc, but his notes show that he received notice of gome rejections. If an ajnnt Bends a large number of rejected livee, he is censured for his want of judgment, and I kcow that Mackay was to be oonsured for taking Iwo lives which had been rejected only a Bhort time before, but aB he »as a new agent we did not wish to be hard upon him. The proposal branch would give him notice tbat certuin proposals bad been rejected. I do not knotv of my own knowledgu that Buch notice has been given him. I can only say it is usual, but it is not m my department. I am not manager of tba wholo of tho Insurance Department-, as you suggest. I am only en agent, — superintendent of agente, the bosß agent, that is nil. The policy branch prepares the credit notoa, after which they come under my supervision, to be paiscd to the credit of the ageats. I telegraphed to Mackay on October 25th, " Wire Wellington weekly your proposals, and where remittance is to be Bent." The remittinco therein alluded to is the advance of £5 « week that I had ngrond to give him. I asked him to wire nis proposals to Bucure myself. I was not advancing on the proposals, but on my judgment of what he was likely to cam on the proposals. I could stop the £5 a week whenever I choeo to co so. I wanted him to wire his proposals so that I uv'ght know what he waa doing. If iie was not doing anything I should havo stopped tho advance at once. The agreement about the £5 a week was a verbal one, and wa; a mutter entirely outside the department. The order of procedure of a canvassing agen; is this: On finding a person wham he could persuade to insure, be would get him to make a " propooal." Then if ho couid parsuads him to pay the money tit once, ho would issue a " deposit receipt" to tho insure.-. He would also fill m the " butt" of the deposit receipt, and a " counterpart" to the butt. He would pay the money into a bank, and attach the butt to the bank receipt, and send both to the Commissioner, retaining the counterpart. In the instances dea t with to. this charge the department holdß the " butts " Bhowing the moneys received a% deposits on the proposals. Mackay's irregularity consisted m not paying the money into tho bank. He gent the butta to Wellington with an order on me instead of with a bank receipt. I did not, but the Commissioner did, apply to aim for the money. I consider it a very serious irregulority on Muckay'n part to send an order on mo for deposit tooneys instead of banking them. I make o practice of warning every agent that enters the service of the grave risk the}' run m not banking immediately. If they do not comply with that rule they aro dismissed iramediately. Maokay was not dismissed on tho sth January, because I advised him privately to bank the mouey. He bankad it within a day or two, and I did not report it officially to the Commissioner. I shielded him m that case. Tn tho second cuso the Commissioner got to hear of it by Mackay sending the order to him, and he telegraphed advi ling Mackay to pay m the money. Tho onlor and butts which tho Commißiiioner got were handed to me on the 21th. I cannot, swear whethor or not I saw ,horn boforo that day; I think not. I bolievo the documents were m tho office on tho 21st, but I was not requested to do anything m the matter till the 24th. On the 19th I telegraphed to Mackay, to Albury and to Gcraldino, " Money at Ploaiant Point." Ho wishod money to be sent to Albury, and I Bent it to the noarost ponaible place. 1 tolegraphed to tho Poß'.maatcr at Pleasunt Point, and he informed me the order had beon refused. I did not know it was Mackay'a wish that I should recall the moneys I hud telegruphod and honor hia order. There was a telegram from Maokay, from G-eraldine on tho 19th, about money, but I have not got it. 1 did not bring everything down ; I did not expect tho thing would have been so fully enquired into hnre. (Mr Perry asked for a telegram m whidh Maokuy said "1£ you think I am working for £;> a week, you are mightily mistaken." He wanted this to contradict tho nitneat.' statement about tho £5 a week advances to Mankay. This telegram wag not among the correspondence produced.) On tho 23rd January I received a telegram from Maokoy dated Albury, 1,25 p.m. on that day, — " Money at I'loaßant Point is no me to mo, Can be recalled. If I remain m service, must have my remittances telegraphed Matiiurn, to as can arrange my own financing Am waiting reply from Commissioner before continuing my journey or transferring ser»icos to other companies, several of vrhioh are anxiotiß to aeoura thorn. If I had money oi my ovm to apend, it might he otherwise. ] have not, and iay family havo been starving sincu my wife uonl for £10 on 3rd inst. You knew my movernontej my wife did not, unc I have beon working night and day for the department. Should now be m bed, having boon thrown from horse yeaterday and suS' tuinccl serious intornal injuries. Still I keep ol work, and it m very hard that my faroil] should be neg.cclocl as you have dono, I fee il moro than tjngue can express, and cannol longer submit, to such treatment." By i tulcgram doted tho same day, at 6.8 p.m., 1 replmd— " Huvo tvsk,ed Postmastor at Pleasani Point; to. forward monoy ordor. Wbs m possible uieann of Bending money. Trust yoi will noon recqror from eSm^e of severe fall

- Have sent £10 wife, bo that you may work 3 your last month with easy mind." On the - 19th I sent him a message — " Do not be 3 afraid. Tour ability is appreciated. Will [ reply by letter. Send you £10 bank this ' morning for family. £46 all that has gone to i your credit as yet. Proposals you sea take ■ time to become policies. Bußineßslaßt year — t proposals over 6000 for £1,400,000, policies ; about £1,100,000." ; At this stage, it being 6.30 p.m., it was ■ decided to adjourn till ten o'clock on Monday i morning. Mr Perry stated that his oross- , examination of Mr Thorne would probably 1 occupy another hour.