Deliveries were made from time to time accordingly by means of Mr Buchanan's own carb, and one or two hired ones. Some of theso goods whiist in Mr Buchanan's possession were sold. In some cases the proceeds were handed over to the secured creditors, and in others the goods were replaced. Nothing was to be delivered without being entered. The day following the bank ruptcy Mr Buchanan went to the Thames. When he returned he handed in accounts for £34 2s 6d which he had collected. Mr Buchanan said he had paid certain ac counts, and added that he would explain to the proper person in due course. All goods supplied to Mrs Buchanan were charged to Mr Buchanan. Witness had received other sums amounting to about £20, which he handed over to the debtor. The debtor had been in the habit of telling witness he had paid certain ac count*, which were written off accordingly. In-many cases the vouchers were produced, in others they wore nob. Mr Lawson said the next question was the .validity of the securities. There being a doubt upon that point, he submitted the matter to Mr Cave for his opinion. This was aa follows:—The question to which my investigation has been principally devoted ia the validity of the claims of certain creditors to largo quantities of the bankrupt's atock-in-tradeand goodspledged to them as security for cash advances. The creditors in this position were Messrs Brown, Barrett, and Co., Messrs John Reid and Co., MrThomaß Peacock, and Mr John Douglas. Messrs Brown, Barrett securities consist of goode in" Graham's and Firths bonds,and goods in Graham's free store,and goods removed just prior to the bankruptcy to Messrs Brown and Barrett's warehouse Mr Cave considered that Meß?rs Brown and Barrett's claim for the goods in the bonded and free stores could not be im peached. .With regard to the £117 10s worth of «alb and £157 general goods de livered-just prior to the bankruptcy Mr C«ve considered that the delivery of those goods was fraudulent preference in accord ance with section 27 of the Bankruptcy Act, and that the Official Assignee was entitled to require Messrs Brown, Barrett, and Co._ to hand over those goods for the benefit of the general creditors. With regard to Messrs John Reid and Co.'c claim, he saw no ground tor impeaching the security. Mr- T. 