It appears that tho head office of tho Union Bank at Wellington had, in October or November, 1892, instructed their solicitors at Welling ton to see to the securities held at Christ church by the bank; and that, finding this agreement, the necessary sub-mortgage was prepared to give effect to it; and so, when it was, without information, put beforo Mr G. Harper, he, without enquiry, executed it, being told it was to carry out an agreement with tho bank. The sub mortgage was executed by Mr Maude also. The securities, the subject of this trust, were over properties of a Mr Smith. There had been so many dealings with this security by sales of parts of the lands mortgaged and otherwise in which the various members of the firm took part, that it is surprising and almost incredible that tho deed of sub-mortgage to tho bank could have been executed without the fact of the trust occurring to Mr G. Harper, and indeed also to Maude, for Mr Maude, though not "a trustee, hold a power of attorney from the mort gagor and also was in charge of the conveyancing branch of the firm's business. A Mr Hotham had entrusted tho firm with .£4OOO to invest on mortgage; Mr L. Har per was the sole or principal owner of some coal mines at Springfield; he mortgaged the property to G. Harper and Mr Scott on Ist February, 1886, to secure .£SOOO. On the 22nd December, 1886, Mr G. Har per and Mr Scott declared themselves trustees of a mortgage for .£SOOO over this property, the trust as to .£2OOO of it for Mr Hotham, and .£IOOO for a Captain Wat son. On tho 23rd July, 1891, Mr George Harper mortgaged this security to the Union Bank: he says he has no recollec tion of doing so. He does not deny that it took place, but has no recollection of the trust or tho transactions generally, He

can hardly havo been ignorant of his brother's connection with the Springfield Company. AMr Robin had entrusted tho firm with a largo sum to invest ; of this .£SOO was lent to a Mr Hardy Johnston on, mortgage in March, 1886, tho security* being token apparently in Mr Robin's* name, so lato as the 3rd September, 1892, Mr G. 