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79. How did it get there ? —The shares were allotted to me. 80. Without having paid the application-money?— Yes, that is so. 81. Who allotted you the shares?— Different gentlemen connected with different companies. 82. Is it the practice in Dunedin to allot shares without the application-money having been paid ?—I might explain that those who allot shares do not know who have paid and who have not; sometimes they do not get a statement from the broker as to who have paid for perhaps two or three months. 83. Is it the practice, then, in Dunedin to allot shares without knowing whether the applica-tion-money has been paid ?—Yes, that is so. 84. Is it a general practice ?—Yes. 85. Do you approve of it? —I can only say that it is the practice. 86. Hon. the Chairman] You actually allot shares to people and place their names on the register when they have not paid application-money : it is almost incredible ; I am astounded ?—lt is very often done, at any rate. 87. Mr. J. Allen.] Were you present at a meeting when Mr. Holmes advised that a man could vote even though he had not paid a sixpence into the company ?—Yes. 88. Hon. the Chairman.] Was that by word of mouth or in writing?— Mr. Holmes was present. 89. Mr. J. Allen] On what occasion was it?—l think, at a meeting of the Ngahere Company. 90. Will you please tell us what he did advise, clearly and succinctly?—-The articles of association were referred to him, and he said that everybody could vote. 91. Everybody?— Yes, whether they had paid any money or not. 92. Do you mean that any outsider could come in and vote?— Any person on the share register. 93. To be quite clear, I understand you to say that Mr. Holmes advised, at a meeting of the Ngahere Company, that any person whose name was on the share-list could vote although he had not paid a sixpence into the company ?—That is so. 94. Do you recollect the date when he so advised ?—I think it was at an extraordinary meeting held on the 18th June, 1901; I think that was the meeting. 95. Mr. Herries] Was Mr. Leijon a director of the company then ?—No. 96. Mr. J. Allen] Were you ever present at a meeting at which Mr. Leijon was also present when Mr. Holmes similarly advised? —I cannot recollect. 97. Did you think it right to draw director's fees from a company when you had not paid anything into that company? —They were passed at a meeting 98. I asked, did you think it right to take director's fees?— Yes, for services,rendered. 99. Who passed the directors' fees for payment ?- —The directors. 100. Who were the directors of, say, the Lees Ferry Company ?—Mr. Leijon and myself were the directors of that company, but in that case I had paid my application-money. The only company referred to in connection with which I had not paid my application-money, but drew director's fees, was the Boss Day Dawn Company. 101. Who were the directors of that company ?—Messrs. Wales, Cook, and myself. 102. Was Cook present when the directors' fees were passed?—l do not think so. 103. Then, you and Mr. Wales passed them?— Yes. 104. You have mentioned "dummies" three times, and I am not quite clear what you mean by " dummies" : were you a " dummy" shareholder if you had not paid any money into a company ?—No. 105. Then, what do you mean by a "dummy" shareholder?—A shareholder who is controlled by another person—one who is a " dummy " for another person. 106. What do you mean by " ' dummy' for another person " ?—A person who holds shares on behalf of another, or whose shares are controlled by another. 107. A person who holds shares on behalf of another?— One whose calls are paid by another. 108. Mr. W. Fraser] You mean a person who holds shares on behalf of another for voting purposes ?—Yes. 109. Mr. J. Allen] In reply to a question asked by Mr. Easton, " I take it that had you known the true position—that a large number of the shareholders were ' dummied,' and there was a 'dummy' secretary —you would not have gone on the board of directors?" you said, "No." Who, in your opinion, held " dummy " shares ?—I should say the Auckland shareholders—Messrs. Choyce, Abbott, and Milne, and Miss Milne—and Messrs. Benjamin, Gray, and Abbott, of Wellington, and Mr. and Mrs. Farley. 110. Who controlled Mr. Gray's shares?—ln my opinion, Mr. Cook did. 111. Do you know what Table A of the Companies Act is?— Yes. 112. As a director of several of these companies, were you aware of the alterations in Schedule A made in the articles of association of these companies ?—Not till recently. 113. Hon. the Chairman] Were you aware of the alterations when you were acting as a director and signed the articles of association ?—No, not when I signed the articles of association. 114. Mr. J. Allen] Then, it is only recently that you have become aware of the alterations in Table A ?—That is so. 115. Since you became aware of these alterations have you read them carefully?—l have not given particular attention to them. 116. As a director of mining companies, with the experience that you have had during the last few months, do you think these alterations advisable ?—I do not know. 117. Hon. Mr. Jennings] Have you had any transactions with mining companies prior to your association with these particular companies under review ?—Yes.