11

I.—lb

21. That comes to £141 16s. 4d. In addition to that sum for wages, you say you have a claim for about £160 for looking after the colliery, from April, 1892, to March, 1893 ?—Yes. 22. Do you abandon this because you are advised that you have no legal claim to it ?—Yes ; but I still consider I am entitled to be paid it. 23. These two sums make up the claim of £321 16s. 4d. mentioned in the petition? —Yes. 24. When did your wages begin to go in arrears, Mr. Gray ?—They began to get into arrears when Mr. Logan became manager of the concern. 25. Had they been gradually getting further into arrears ever since ?—Yes. 26. Did you act as manager of the coal-pit ?—Yes. 27. Do you remember, then, Mr. A. H. Logan bringing an action against the Corporation of the City of Dunedin ? —Yes. 28. Were you working in the coal-mine then ?—Yes. 29. You were a witness in that case ?—Yes. 30. At a weekly wage of how much?—At £3 155., latterly. 31. The action was lost by Mr. Logan, I believe?— Yes. 32. Well, after that action, Mr. Gray, what was the next thing to take place, as far as you know ?—Well, before the action there was a bit of a mock agreement drawn up, making over the mine property to Mr. Logan, in order that he might sue the Corporation instead of Sir Bobert Stout. 33. How do you know that?—l heard Mr. Logan tell Mr. D. D. Macdonald to be very careful in making out this agreement, because it was not very easy to " blink" Mr. Chapman, the Corporation's solicitor. 34. How long was this before the action commenced? —A week, or perhaps ten days. 35. What was the next thing to take place ? —After the action, Mr. Logan was sued for costs, and I was summoned to town. Mr. D. D. Macdonald told me that Mr. Logan was getting sued by the Corporation for costs, and that he was going to go through the Court. We were getting uneasy about our wages. I spoke to Mr. Logan about it, and asked him when we were going to be paid our money. _ He said that Sir Eobert Stout had decided to settle the mine and line in my name, in order to secure us our wages. I went to Mr. D. D. Macdonald, he was attending to my business for me, to get his advice on it. I did not put much reliance on Mr. A. H. Logan at that time. 36. After this conversation, what else was done?—An agreement was drawn up between Sir Eobert Stout and myself, and I signed it, to secure the wages of myself and the other men. [Agreement produced.] 37. Is that the agreement you signed, Mr. Gray?— Yes, I believe that is it. That is my signature on it. [Document here read, signed Ist February, 1889.] 38. At the time this was signed, Mr. Gray, what took place ? Was Mr. A. H. Logan present ? —Yes, he presented it to me to sign. 39. It is witnessed by Mr. John Toomey?—Yes. 40. After this document was signed, there was another document prepared and advertised. Who was that document prepared by?— Mr. D. D. Macdonald. [Document here produced and read.] 41. At the time this agreement was signed, Mr. Gray, you were mine-manager?— Yes. 42. After the agreement was signed, was there any change in your position ?—There was no alteration in the work. I was in the same position, and Mr. A. H. Logan still managed. 43. You managed the mine, and Mr. Logan looked after the business ?—Yes. 44. It was still called the "Fernhill Colliery Company"? —Yes. 45. The office in town was attended to by Mr. Logan ? —Yes. 46. What about the bank account. Was an account opened ?—Yes, a day or two after the agreement was signed. 47. Was it with your money that the account was opened?— No. Mr. Logan got it from Stout and Mondy's office. He came down and handed it to me in the form of a roll of notes. I never opened it. There might have been some silver amongst it. 48. About how much would it be ?—Between £30 and £40. 49. The account was opened in your name. Were you allowed to operate on the account ?— No. 50. Who operated upon the account? —Well, I know that Mr. Logan operated upon it for one. 51. Cheques were signed in the form of " James Gray, per A. H. Logan " ?—Yes. 52. You lately applied to the Bank to get the bank-book, but you found it had been given up ? —Yes. 53. Had it been got away from the Bank ? —Yes. 54. You continued to work in the mine during 1889? —Yes. 55. Do you remember being sent for to go into Dunedin in connection with a projected new company ?—Yes. 56. To be called the Freeman's Coal Company, Limited?— Yes. [Copy of prospectus here produced.] 57. Is that a copy of the proposed prospectus ?—Yes. 58. Mr. Mills : Does this bear on the claim, Mr. Macgregor? Mr. Macgregor : Yes ;it bears on the line. [Prospectus here read.] 59. Mr. Macgregor.] How long did you continue to work in the mine in this way, Mr. Gray ?— Up to the end of February, 1892, I think. 60. That was when the account was closed at the Bank ?—Yes ; but there was trouble before that. 61. After February, 1892, you still retained possession of the coal-mine and railway line?— Yes; the wages were getting behind, and things were getting disagreeable about the mine, and I began to think I would be better out of it. 3—l. 18.