I.—4a

22

133. Do you know anything of this call being outstanding ?—The auditor has included the amount in the outstanding calls, and the balance-sheet is perfectly correct. 134. Who is the auditor?— Mr. Chalmers. Mr. Easton at the annual meeting proposed the re-election of Mr. Chalmers as auditor. 135. Mr. Chalmers was the auditor, and Mr. Easton proposed his re-election for the ensuing year?— Yes ; the minute-book shows that. 136. Mr. Easton also says, " I find that the share register has been improperly kept " ; and, again, he specially states, in reference to this company, " The shareholders' addresses are not given, and pencil notes directing, in some cases, all notices of calls to be sent to Mr. Cook " : can you tell us anything about that? —I believe that is a fact. I presume there is a good reason. 137. You do not know anything personally ?—No ; but I understand that you are representing some of the shareholders. 138. Mr. Easton goes on to say, "I find also that certain shareholders have stated in sworn evidence that Mr. Cook promised that only Is. per share should be called up, and that his codirectors should be his nominees." With reference to the Is. per share being called up, do you know of your own knowledge that I ever promised any such thing to any shareholder ?—No ; you were not in Dunedin. 139. You never promised such a thing ? —No. 140. As to the co-directors being my nominees, were they my nominees in any way whatever? —No, certainly not. 141. You were in Dunedin at the time of the flotation and registration of the company?— Yes. 142. I was in Auckland ; and to your knowledge these directors were not my nominees ?—Certainly they were not; they would not accept any instructions whatever from you. 143. Mr. W. Eraser.] At the elections of directors were any vendors' shares used : did vendors' shares carry any votes with them ? —The vendors' shares are not allotted. 144. Then, for all elections of directors it was only the subscribing shares that carried votes with them ? —Yes. 145. Mr. Herries.] I see Mr. Hoisted was present at the general meeting of shareholders : did he vote ?—I could not say whether he voted or not. 146. As a general rule, who held the proxies ? —I could not say who held them. I have no doubt that I held Cook's and Mrs, Cook's for their subscribing shares. I think either Somerville or Easton held the balance. 147. You always held Mr. and Mrs. Cook's?— They did not always send them; in many cases they did not vote. 148. But you held their proxies when they did?— Yes. 149. Mr. Easton.] With regard to the shares transferred from Benjamin, you stated that I was incorrect in saying that £25 was due from Benjamin at the time I declined to pass the transfer. Now, all my attacks on this company are based on the evidence from the company's books, and I ask you, are those books right or are they wrong?— They are correct. I maintain that the £80 paid by Mr. Cook was intended to pay the £25 standing in Mr. Benjamin's name, and my co-directors took the same view when passing transfer. 150. I am not talking about £80 : I want to know whether the book shows £25 as being due from Benjamin ?—lt does. 151. Then, I am correct in my statement that the books of the company show £25 as being due from Benjamin at the time I declined to pass the transfer?— Yes ; at the time you declined. 152. The Chairman.] Does not the share register show to-day that Benjamin still owes that £25 ?—Yes. 153. It is still owing—not marked off?—lt is not marked off against Benjamin; but in my opinion that is an error in book-keeping. 154. Is the register correct or incorrect ?—I say that it is incorrect to that extent. 155. You said just now that it was correct, now you say it is incorrect ?—As regards allocation of this amount paid by Mr. Cook, yes. 156. Does the share register show that he paid that £25 ? —No ; it shows that he paid £15 and £65. 157. Were you there when Cook paid that money in ?—I was in Dunedin, and had letters from Benjamin about it; and in the course of conversation with the secretary I said that Cook must pay the £25 before the transfer was put through. 158. You knew Mr. Cook's intentions in the matter? —Yes. 159. From what did you know them?—l was receiving letters from him periodically. 160. About this matter? —This, and others. 161. Did any of these letters state that it was Mr. Cook's intention that so-much of the £80 was to go to one account and so-much to the other ?—I cannot say from memory. 162. Then, how do you know what his intentions were? —I knew that was his intention; he sent £80 intending it to cover that £25. 163. It is very hard for one man to say what another's intentions are unless he has some evidence to go on; you have sworn that you knew what Mr. Cook's intentions were?— Yes. 164. I am trying to get the data on which you base your knowledge of his intentions ?—-There has been a lot of correspondence in regard to this. 165. But you cannot tell me that Mr. Cook said this in any of that correspondence?—l cannot from memory, but I know that was the impression on my"mind, all the way through. 166. You have sworn that £25 should have gone in payment of that item?—lf I had been keeping the register I should have so placed it. 167. But you have sworn as to what Mr. Cook's intentions were ; I want to get at how you knew what they were ?—I know that for one reason Mr. Cook would never ask a transfer to be put through unless he had paid the calls owing.