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the Public Trust Office offers to perform—would you not rely upon that announcement that the State guaranteed all business that came into its hands included under those heads? Would I, as a stranger, not be justified in believing, and honestly believing, that in putting business under any of those heads—and they are numerous enough, as everybody may know—the State guaranteed that business through all its ramifications ? —I can scarcely say. You ask me whether any members of the public ■ 4921. Ido not confine you to any members of the public. I say, would I, who perhaps am as innocent a member of the public as any you will find, be justified in believing the State guaranteed any business that I was induced to place iv the hands of the Public Trust Office ? —Well, it may have that appearance. 4922. Now, Mr. Hamerton, you are a lawyer. Do you mean to say that there could be any other answer—that if I, on the faith of that advertisement, went into a Court of law, and made a declaration or gave evidence that on the faith of that advertisement —which you acknowledge has been issued by you—l gave you business, part of which was to make loans such as the one made to Eanderson, do you mean to tell me that the State is not liable?—lf there was no other information excepting that it might be the case. 4923. What other information for my guidance do you give me? If I say that on the faith of that advertisement I give you business, what else is it you mean to undertake ? Do you mean to say "Guaranteed by the State" is a sham, to induce the public to put business into the Trust Office for safety when there is no meaning in it ?—Certainly not. 4924. Then, you mean to say it guarantees, under the several conditions you advertise, business coming into the office ?—Guarantees the honest carrying-out of business. 4925. What other interpretation can you put upon it? To any of the public reading that advertisement, can it have any other interpretation than that the State is liable for whatever business they may put into the hands of the Public Trustee ?—lt may have that interpretation certainly, but the Act is greater than an advertisement. 4926. But, Mr. Hamerton, the people do not see the Act; and if you go beyond the Act the law will not excuse you. If you, as Public Trustee, go beyond and outside the Act, then if the colony is not liable, you are. Will you admit that ?—I must admit lam liable for whatever I do, and for any losses that have been occasioned through my inattention or culpable neglect. 4927. And for going outside the Acts?—-Yes. 4928. Mr. Loughrey.] Is not particular attention drawn to " Guarantee of the State "iv your advertisement ?—Yes. 4929. The Chairman.] I am afraid it is too apparent, and it has never occurred to you before that you are either misleading the public or putting yourself in a false position. Is that not so?—lt has not so appeared to me. 4930. Do you not think you have either put the Trust Office iv a false position or misled the public —which of them, a good deal of both ?—Possibly so. 4931. You say that you handed to Sir Harry Atkinson, while Colonial Treasurer, £18,000 of supposed profit which you made out of the business which the public has sent in to you, no doubt after reading, or at any rate some of them reading, that advertisement. Do you know how much money besides that £18,000 that you have handed to the Consolidated Fund comprised of balances belonging to the public ?—lt is a very large sum. 4932. Do you know how much?—No ; the Commissioners will have that return very shortly. 4933. Then I will tell you that you have handed £32,000 odd to the Consolidated Fund, of small and large balances belonging to different intestates since the office opened, out of which the Consolidated Fund has only been called upon to refund about £1,800. So that up to the time Sir Harry Atkinson retired as Colonial Treasurer he has had the benefit not only of £18,000 of your supposed profits but also of over £30,000 of those unclaimed balances, making altogether over £50,000 out of the Trust Office ? —I have no doubt that is so as regards the amounts paid over. 4934. That is, exclusive of the bankruptcy balances, which amount to over £3,000? —I have no doubt of it. 4935. Thus making a total considerably over £50,000 out of your office ?—The bankruptcy amount will not be very large. It may be over £3,000. So that there is over £50,000. 4936. Mr. Macdonald.] If those balances arising from intestate estates where the next-of-kin cannot be ascertained, and which belong to the Consolidated Fund, were kept in hand to form the nucleus of a reserve fund, they would accumulate, along with a small charge for guarantee, sufficient to guarantee the department against any losses sustained by mortgages ?—Yes. 4937. And that would be an admirable way of dealing with that question ?—Undoubtedly. I brought it before the Government between 1884 and 1887 ill a Bill we were preparing for consolidating the Acts. One of the clauses of that Bill was to form a guarantee fund. 4938. That Bill never went before the House ? —lt never was introduced. 4939. What Ministry considered it ?—At that time it was Sir Julius Vogel's Ministry ; but Sir Harry Atkinson's Ministry also considered the later one to the same effect, but it was never introduced. 4940. What was the reason of that ?—I could not say. 4941. Was there no reason given ?—No—pressure of work. 4942. The Chairman.} Now, Mr. Hamerton, do you not think it is a very hard case indeed— the case of this young lady, Miss Burnes, whose money the Public Trustee is intrusted with to guard and invest; and, in the first place, she is led to believe that a good iuvestment has been made by you for her, and then she is suddenly told that no interest is forthcoming, and is kept in the dark as to her future fate in regard to her principal money ?—No doubt it is a hard> case, but there are very many hard cases in the world—that is to say, the Trust Office, after duo consideration, lent this money, believing that the security was good.