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paid on allotment, all calls made by the directors, and all calls made by the liquidators. The second charge deals with figures, which Mr. Bevan admitted in his cross-examination on Monday to be incorrect. On Tuesday he attempted to maintain the correctness of two sums mentioned by him in the petition—namely, the sum of £14,221 18s. lid. mentioned in charge 2, and the sum of £56,246 Os. 7d. in charge 4. I still say he is wrong, and that his admission on Monday regarding them is correct. Eeferring to charge 2, the amount called up is £96,428 145., and not £98,520 65.; and the amount of profits is £13,275 6s. lid., less dividends paid, £3,173, making a sum of £10,102 6s. lid., and not £14,221 18s. lid., as profits disclosed in balance-sheets 1883 to 1886 inclusive. This sum of £10,102 6s. lid. is arrived at in this manner:— £ s. a. Credit balance to 31st December, 1883 ... ... ... 3,390 13 2 Credit balance to 31st December, 1884, £6,948 os. Bd. (less £2,552 19s. from last year) ... ... ... ... 4,395 1 8 Credit balance to 31st December, 1885, £6,289 19s. 3d. (less £1,780 7s. 9d. from last year) ... ... ... ... 4,509 11 6 Credit balance to 31st December, 1886, £2,721 18s. lid. (less £1,741 18s. 4d. from last year)... ... ... ... 980 0 7 £13,275 6 11 Less dividends paid ... ... ... ... 3,173 0 0 Leaving a balance of ... ... ... ...£10,102 611 A grand total of £112,742 4s. lid. has not been absolutely lost during the period 1887 to 1894. The sum lost during that period was £74,131 16s. lid., made up in this way : Total amount called up, £96,428 145.; less unpaid, £16,957 6s. 6d.; leaving capital paid-up as £79,471 7s. 6d., of which sum £5,339 10s. 7d. was lost during the year 1886. I may mention here that the liquidator estimates that of this sum £15,000 at the least will never be recovered. The third charge in the petition is that your petitioners have been greatly deceived by the directors' and managers' reports from time to time on the improving prospects of the association, when, as a matter of fact, the losses were multiplying, and the nature of the business was of a most unsound and disastrous character. Two reports were sent out during the time I was connected with the association. The second of these reports told the shareholders that, on account of the action of a section of the shareholders, and of the varions letters which had appeared in the Press, the business of the association had been so seriously affected that a resolution to wind up would be submitted to the shareholders. I fail to see how a report of that kind could deceive the shareholders as to the condition of the company, and lead them to suppose it was in a prosperous condition. The first of these reports was not calculated to deceive either. It was very full and explicit. I put in both reports, and they will speak for themselves. Eeferring to the fourth charge, the balance-sheets from 1887 to 1890 do not disclose losses during these periods of £56,246 os. 7d. At the end of 1890 the debit at profit and loss is £42,693 18s. Id. This part of the petition goes on to say that the manager and delegates from the board of directors were calling meetings of shareholders throughout the colony, and assuring them of the soundness of the business, and the strong position the association was attaining. Now, I only went once as a delegate to the shareholders—at Hokitika, Greymouth, Westport, and other places—and that was when, the company was admitted on all hands to be in a low position, and before the new general manager was appointed, and before the shareholders had agreed generally to give the company another trial instead of winding up. I could never, therefore, have assured them of the strong position the company was attaining, because the shareholders had not then resolved whether it was better to carry on or wind up. Such a speech as the above, if ever made, could only be made after the company had started afresh. I did tell the shareholders that the company had a good connection, which, if properly attended to, and if we had ordinary luck, I thought, the business was capable of being made a success. This circular, which I put in [Appendix D], had been sent out to all the shareholders, and they had it before them when I visited them. My remarks were based upon this circular. I urged the shareholders to give the company another trial; and two facts particularly influenced me in doing so: First, that Mr. Maxwell, who had been for many years engaged in insurance business, and who was then the manager of the South British Insurance Office in Dunedin, investigated the affairs of the company, and after doing so was ready to give up his position as manager of the South British, and take the management of the Equitable. I spoke to one of the directors (in Dunedin) of the South British, and he expressed a very high opinion of Mr. Maxwell's abilities, and said they were very sorry to lose him. Second, that the Standard Insurance Company some years before had sunk very low, and the shareholders were considering whether they should not wind up. They resolved, however, to carry on, got a new general manager, loyally supported the management, and the result is that they are to-day in a good position. I felt that, though the Equitable was in a low state, it had a splendid body of shareholders, dispersed over the whole colony, and if they all pulled together and worked in the interests of the association there was a chance for it to retrieve itself. And, in further proof of the line of action I adopted when a delegate to the shareholders, I put in a circular [Appendix K] which I sent out to the shareholders a few days after I had been elected to the board of directors. In this it will be seen that I urge that the success of the association mainly depended upon the hearty co-operation of the shareholders. Again, as a proof that I did not exaggerate matters in any way, I may mention this fact: When 1 went to the West Coast I learned that some gentleman had gone round about a month before, holding meetings of shareholders, with the object of inducing them to wind up. As soon as I had finished my remarks to the Hokitika shareholders, one of them rose up and said that I had put a worse complexion upon the