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688. Had you any conversation with him ?—Yes. 689. Will you tell us what you told him?—l told him that the outlying run at Lake Ohau was exposed for sale again, and I told him that Mr. Eitchie was not prepared to take it up, on account of the rabbits, and I asked him if he was prepared to apply for it. I told him that the company was prepared to pay the first half-year's rent, and that he would have £15 or £20 to himself. I told him that he might have trouble with regard to the rabbits, but that he must risk it, as the company would have no further use for the run after the first six months. He said that he was quite ready, that he had nothing; the Government could not go against him, as they could take nothing off him. I told him that he had better see Mr. Eitchie, and arrange everything further. 690. What did he say to that ?—-And that I would let him know when Mr. Eitehie could see him. 691. And did you let him know ?—Mr. Eitchie returned to the' office after 3 o'clock, and I told him I had seen Scott, and that he was prepared to take it up, and we sent for him. 692. You heard what Scott said—that you told him that you would pay the expenses, and the company would take all the responsibility : is that true?— No. 693. Did you ever agree with him, at that time or at any other time, to indemnify him against any loss he might sustain ? —No, never. 694. Was anything said, and, if so, will you tell us what passed between you, as to what was to happen if he did get involved in difficulties over taking the run? —Was anything said by him? 695. Was anything said by either you or him as to whether he would have a remedy against the company or not ?—No; the conversation was a short one. Not more took place than I have repeated. 696. I understand you told him that he was to take all the risk ? —Clearly. 697. Did you say to him then, or at any other time, that you—either "I"or " we " —" will see you through it "1 —Never used such words, nor anything to that effect. 698. Then you left Scott, and he was sent for to see Mr. Eitchie ?—Yes. 699. Where were you during the conversation between him and Mr. Eitchie ? —ln my own room. 700. Could you hear what was going on ?—Yes. 701. Are you sure Mr. Scott did have a conversation with Mr. Eitchie in your office on that same day ? —Perfectly certain. 702. You heard Mr. Eitchie give his evidence : did you hear him say anything to Scott about the responsibility or risk he was undertaking ?—I heard him repeating to Scott very much the conversation he had had with me prior. 703. That Mr. Eitchie had had with you?-—Yes. 704. Did you tell Mr. Scott the reason the company wanted the use of this property? —Yes. I said the boundaries had been extended largely, and Mr. Eitchie would not take it up on account of the rabbits. 705. Did you tell him why the company wanted the use of it?— Yes—-to run the stock to such a time that they could be disposed of. 706. Did you make him aware that your company had stock on that run?— Yes. 707. Sure ?—Perfectly so. 708. Did you give him any idea as to how long the company would require the use of the run for that purpose ?—Just for a few months. 709. Will you tell us, please, Mr. Henderson, as nearly as you can, what conversation you heard between Mr. Scott and Mr. Eitchie ?—Mr. Eitchie explained to Scott that he would not on any account take up "the run with the extended boundaries—that he wished the use of it for a few months to enable him to dispose of the stock. 710. Well ? —Scott was in the room for about five minutes, and the conversation —I could not repeat the whole conversation. 711. Did you hear Mr. Eitchie ask Scott or tell Scott Sir B. Stout: Surely you cannot put a suggestion. 712. Mr. Solomon.] lam not going to put a suggestion. Did you hear Mr. Eitchie ask or tell Scott what he (Eitchie) wanted him to do ?—I could not say I heard any further particulars. 713. Did you hear Mr. Eitchie say anything about responsibility ? —No, I could not swear to that. 714. Now, when you spoke to Scott about taking up this run in that district, did he say whether he knew the district or not ?—He had told me previously he knew the district. 715. How ? —He told me he had been a cadet on a station, and knew all about that district. 716. Sir 11. Stout.] Was that in Bond Street also ? —That was previously—in January. It was the time when he saw the map that he referred to. 717. Mr. Solomon.] Well, after the conversation between Eitchie and Scott in Eitchie's room, had you any conversation with Scott on that day ?—No. 718. What is the next you heard of it ?—After that the run was taken up. The application was sent to Timaru. 719. What was the next time you saw Scott ? —I did not see him for some time. Yes, I saw him the day after the run was taken up and advertised in the paper. I met him in Bond Street again, and he said he had observed that he had secured a run, and laughingly said he was a runholder. 720-21. Well, when next did you see him ?—I have seen him frequently, but with regard to this matter I had no conversation, I think, until the rabbit matter came up. 722. How was that brought before your notice ?—He brought the notices to the office. 723 What did he say, or you say ?—I told him that we could not do anything—that I would show them to Mr. Eitchie.

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