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4913. When you handed that over, did Sir Harry Atkinson ask you if you had any doubtful security or securities among your investments in connection with the business of the Public Trust Office ?—No. 4914. And you as Public Trustee, seeing that you were parting with such a large amount of profit as £18,000, never thought it prudent to suggest to him that there were and might be doubtful investments in your hands, which might or might not have to be provided for ?—No. I always looked upon it that so long as there is no negligence, and a sufficient care shown in the lending of .money of private estates, the colony was not liable any more than an ordinary trustee is liable for the lending of money on mortgage, if he exercises ordinary business care. 4915. And that, Mr. Hamerton, is the broad and business-like view that you have taken of your position as Public Trustee, comparing it only on all-fours with that of a private trustee, who may have the handling, perhaps, of one estate, be it large or small, while you have the handling of hundreds, perhaps thousands, of estates belonging to the people of the colony, and where you have exceptional advantages for making profits. Hence, the £18,000 you were able to hand over to Sir Harry Atkinson. Your view seems to have beeii that you should deal in the same piecemeal way with every transaction as a private trustee might deal with one single small estate. Now, has it never occurred to you that there should be some give-and-take principle where the public of the colony with many estates are concerned as a whole, by which you should, at any rate where investments were unfortunately made under the direction of the colony, they should at any rate be protected, because the balances you had in hand from many estates must of necessity have been the source and fountain for making a profit ?—lt has not occurred to me in that light. The principle that I thought should guide me was this : If a testator in his will gives power to invest either in Government securities or mortgages of real property, and the beneficiaries, those I may have consulted, wish the moneys to be invested in Government securities, of course there is absolute safety; but where they desire a larger income, and request that investments on mortgage may be resorted to, then I have held, rightly or wrongly, that the liability of the colony ceases, on the assumption that all care is taken. 4916. Now, have you ever authorised an advertisement in a page of the " Postal Guide" issued by authority of the Government of this country ?—Yes. 4917. Have you got that advertisement here ? If so, read it.—Yes; it is as follows : — Public Trust Office.

Established undeb tub Provisions of "The Public Trust Office Act, 1872," and the Amending Acts oe 1873 and 1876.

Guaranteed by the State.

Public Trustee ... ... ... ... ... R. C. Hahektok. Chief Clerk ... ... ... ... ... Pev. C. D. de Castro Accountant ... ... ... ... ... J. C. Moginie.

The Office undertakes the following Business : — 1. The Administration of all Intestate Estates of which Letters of Administration have not been granted to the widow or other person entitled, the realization and distribution of the personalty, the payment of the debts, and the care of the realty for the absent heir. 2. The Executorship of the Wills of persons who may appoint the Public Trustee their executor, and thus avoid the necessity which otherwise would exist of committing their friends to the responsibilities involved by such position. 3. The Administration of all kinds of Money Trusts, including Marriage Settlements and every kind of fund the trusts of which are definitely set forth in the deed creating the Trust. 4. The Administration of the Estates of Lunatics and Lunatic Patients. This duty was transferred to the Publio Trustee by " The Public Trust Office Act Amendment Act, 1873." 5. The Protection and Administration of all Lands lying waste, of which the owner is unknown, or has been absent from the colony foi ten years without having left any known agent. All further particulars may be obtained on application to the Public Trustee, at the Public Trust Office, Wellington.

AGENTS. Auckland ... ... E. P. Watkis, Esq. Napier ... ... ... J. F. Jardine, Esq. Blenheim ... ... E. Mead, Esq. Nelson... ... ... A. A. Scaife, Esq. Cbristchurch ... ... J.J. M. Hamilton, Esq., New Plymouth ... ... W. J. Shaw, Esq. District Agent for Oamaru ... ... A. Thompson, Esq. Canterbury. Palmerstou North ... ... J. 11. Hankins, Esq. Clyde ... ... ... G-. Fache, Esq. Patea ... ... ... E. C. Homer, Esq. Dunedin ... ... J. E. Smith, Esq. Queenstown ... ... W. Turlon, Esq. Grisborne ... ... Thomas Chrisp, Esq. Tauranga ... ... J. A. Clark, Esq. Greymouth ... ... P. Nancurrow, Esq. Timarii ... ... D. M. Ross, Esq. Hokitika ... ... P. W. Wade, Esq. Wairoa ... ... W. E. Shaw, Esq. Invercargill ... ... P. F. Cuthbertson,Esq. VVanganui ... ... A. Barns, Esq. Kaikoura ... ... J. Davidson, Esq. Westport ... ... W. Lloyd, Esq. Master-on ... ... W. B. Chennells, Esq. Woodville ... ... W. Syins, Esq. 4918. " Guaranteed by the State ? " —Yes, "Guaranteed by the State." 4919. Now, Mr. Hamerton, this "Guaranteed by the State" hangs at the top of your advertisement like a signboard ?—Just so. 4920. The advertisement goes on to state the business it undertakes ; and then you go on to set forth the advantages that you offer, and your many agencies, and the names of the agents who act for the Trust Office. Now, I ask you this : Would you, as a member of the public, reading that advertisement with that heading, " Guaranteed by the State," above all those different duties which