G. L. Greenwood, Official Assignee, produced George Harper's statement of assets and liabilities ot the firm of Harper and Co., after which the Court was adjoarned till this afternoon.
LATER.
Edward Farkerson, who for many years was manager of the financial department of Harper and Co., stated that the firm received sums of money from English clients to invest in New Zealand. While the moneys remained uninvested they were paid into the ordinary banking acconnt of the firm, known as No. 2 account. The moneys were not earmarked as trust money. George Harper was aware of the system and raised objection to it, and on various occasions, on account of those objections, an alteration was made in the system. In July, 1885, a separate trust acconnt was opened. Several years ago the firm became finan cially embarrassed. L. Harper went t> England in July, 1891. The firm at that time were perfectly insolvent. The deficiency as approximately ascer tained was about £150,000. Witness at that time interviewed George and L. Harper concerning the position of tbe firm, which was shown by a short state ment. Thi3 statement showed various difficulties likely soon to ariee. It showed tbe position of the firm, and estimated the amonnt of clients' money iv hand. L, Harper went to England to finance the firm. ,

To Mr Wilding: No. 2 department, that of finance, was nnder L. Htrper's supervision. The law department was under George Harper, and for this depart ment a separate account was kept. This closed the case for the Crown. The accused reserved his defence, and was committed for trial. Bail was allowed— the accused in £200, and two sureties in £150 each.
The case of T. W. Maude was then taken. Mr Joynt appeared for the ac cused.
