I.—4a

46

12. Then, what liability did you consider you were incurring in applying for the shares?— Simply the application-money. 13. One shilling per share ?—Yes. 14. Did you understand that Mr. Cook would be a director of all those companies ? —I did. 15. And who was to be the secretary?— Our Dunedin manager. 16. The manager of your own firm ?—Yes. 17. Can you tell the Committee the names of the parties from whom Mr. Cook purchased the claims ?—No; I have seen no documents in connection with them. 18. How much cash was paid for the properties ?—I could not tell you. 19. You did not find any of the cash? —No; we found none, as far as I know. 20. Were you acquainted with the conditions upon which the articles of association were based ? —I have never seen any articles of association. 21. Have you examined the deeds of sale?—l have not. 22. Did you understand that the deeds of sale from the owners of the claims to Cook had been filed with the Begistrar?—l supposed that Mr. Cook was doing all that was necessary. 23. Who did you understand Cook's co-directors were to be : I am speaking with reference to the four companies—that is, the Lees Ferry, Golden Grey, Wicklow, and Tucker Flat Companies ? —There were to be three directors—himself and two others whom he would see appointed, but he did not say who they would be. 24. Who was to "make the appointment of them ?—The promoters. 25. You paid the application-money on those shares, and why did you not pay the allotmentmoney on receiving notice to pay it ?—Simply because I was told by Cook that the sending of notices was merely a formal matter, and that the payment need not be made. 26. Did you ever speak to Cook with regard to the notice demanding payment ? —I did. I did not like the notices I was getting, and spoke to Cook about the matter, and he said, " If you do not like the position you can give me the transfers of the shares, and I will relieve you of them," which I did—that is, gave Cook the transfers. 27. Is it a fact that you signed and gave Cook blank transfers for the shares in those four companies? —That is so. 28. And Cook accepted them ?—I presume that he did, for I did not get them back. 29. Have those transfers been put through ?—They have not. 30. On being threatened with legal proceedings, did you send the following telegram to the secretary of the Golden Grey Company : " On ground of misrepresentation I repudiate the shares allotted me " ? —That is so ; it was done under legal advice. 31. Do you know of any other people to whom Cook said that the only liability in connection with these companies would be Is. per share ?—Several; in fact, I think pretty well all the shareholders. Messrs. Choyce and Abbott have both sworn to that fact, but Ido not know of any one else who went into the Court and gave similar testimony. 32. There was an understanding given to the shareholders that only Is. per share should be called up ? —That is so. The arrangement was that we were simply to pay the application-money, and the shares were then to be left in Cook's hands to deal with ; that, so far as any of the shareholders were concerned, they could not at any moment have dealt with them without consulting Cook, because he was supposed to be acting as broker in connection with all of them. 33. Have any of these people, to your knowledge, defended actions for payment ?—Yes ; Choyce and Abbott did. 34. It having been decided in the Magistrate's Court that you are liable to the companies, do you still contend that there has been misrepresentation ? —I do. 35. On whose part ? —Cook's part. 36. Did Cook promise to give you, or did he give you, an interest in vendors' shares ?—He did not. 37. How many vendors' shares did you understand Cook was to receive in each company?—l understood he was getting four or five hundred. 38. In each of the companies? —Yes; but I do not know whether he got them. 39. How often did you receive statements of account in connection with the companies?— The last statement of account that I had was on the 31st July of last year. 40. From whom did you receive it ?—From Mr. Cook. 41. Did you hear from Cook from time to time as to the financial aspect of these companies?-— No ; I took no part at all in connection with those companies. 42. Who was your manager at Dunedin?—Mr. Hoisted. 43. Did he transact any other business for your firm —other than the management of the companies in question?—He was our manager in Dunedin, as far as I knew, and was responsible for everything while Cook was away. 44. You were paying him for work other than that in connection with these companies ?— Certainly ; but I do not know what work there was doing. 45. Have any of these companies paid a dividend ?—I do not suppose so. 46. Have any of them got dredges working ? —No, not as far as I know. 47. What, in your opinion, are these companies being kept alive for?—l do not know; I do not know why they were formed. 48. Mr. W. Fraser] The question was asked whether any of these companies had paid dividends: would it be possible for a company to pay dividends with only Is. per share called up? —No ; considering the fact that they have never been working. 49. Mr. Herries] You speak with reference to four companies only— that is, the Tucker Flat, Lees Ferry, Wicklow, and Golden Grey ?—Yes, that is so,