Was the cable in reply to another cable ?—I do not know. Is it not a fact that what you went to Inver cargill for was to insist that the account should lie reduced as nearly as possible to credit ? Very possibly we wanted the account in credit. And this providential cable arrived on the day on which you went down '!— On the morning before, I think. I understood that arrangements were made in London to have those credits established. Arrangements with Mr Ward ?—Probably. There is an extraordinary coincidence as to the •late. Do you know where the cable was from ': —I could not say. How was it that this draft remained hung up for so many months without the transaction being settled?—l suppose because it was not convenient to fiud the oats. The oats were not forthcoming. AVhere were the oats which were represented in the warrants ': —They were supposed to be in the stores. Were they ?—I do not know, have you any reason to believe that they were ?—Afterwards I had reason to believe that thev were not. So that this £30,000 bill was lying in the bank safe with a parcel of worthless bonds attached to it ?—We did not know that. His Honor : AVere the bonds worthless when you got them ':- -They were not so to our know ledge. Were they as a matter of fact ?—I believe so. Mr Macgregor: Do you mean that the oats were never there at all to represent the war rants ?—I think not, from what I subsequently learnt. What did you subsequently learn'.'—That there was considerable difficulty in getting the oats. Was it Mr Ward's bond they were supposed to be stored in'.'-They were supposed to be in different places. Did they duplicate the warrants '!— l think the man gave warrants when the oats were not there. The boudkeeper? —They do not have bond keepers at these places. His Honor : Thev would be free stores. Mr Macgregor: Who signed the warrants? Witness: The manager of the company. The manager of the Ward Company ?—Yes. And yon took his word that the oats were there ?—" Yes. And the Ward Company had the use of this £30,000 from June until October on the strength of this draft?—lt simply wiped off the over draff. 