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Did you at the time —I mean on the same day —make a note in your diary of the effect of that conversation ?—Yes. Will you please tell us what happened, and for that purpose you may look at your diary to refresh your memory ?—The entry I made on the 3rd August, 1923, was this : " Mr. Lysnar informed me that he had put up a proposal to Mr. Findlay, of the Shaw, Savill, and Albion Company, that as the price of Lysnar's not assisting in promoting a Shipping Board Bill the Shaw, Savill, and Albion Company should take over the ' Admiral Codrington ' at £160,000 to £170,000 ; but if they did not do so he would press for a Shipping Board Bill, which the Liberal and Labour parties would support, and when the Board was formed the Poverty Bay Company would unload the ' Admiral Codrington ' on to the Board at £150,000. I told him he was mad to make such an offer on such conditions to any one, and that even if such a Board were formed I was satisfied neither the Board nor the country would stand for such a deal." May I say that when I told him he was mad to make such an offer on such conditions to any one, I said to him, " Mr. Lysnar, what will be the consequence if Mr. Findlay discloses this 1 " " Oh," he said, " the conversation was a confidential one, and he won't." Is there any doubt whatever of the correctness of that entry ? —I will not swear to the ipsissima verba, because I wrote it down after Mr. Lysnar had left my room. But in effect, in purport, and in spirit that is exactly what was said. Did the interview of that date have any weight with you in determining your course of conduct in regard to the Poverty Bay Farmers' Company ?— Of course it did. In what way ? —Well, sir, if the bank has a company on its books that is owing it £300,000 or £350,000 and the chairman of directors can put up a proposition like that —well, I should feel that the quicker I got that account out of my books the happier I would be. And you have already told us that you had come to the conclusion that the company was in a hopeless state of insolvency ?—Yes. He was cross-examined about it at pages 701, &c. On page 701 the following appears : — Mr. Lysnar.\ Did I only speak to you of what you have noted in the diary ? —That is the only record I have. And you made the entry after you saw me ? —lmmediately you left the room. I was not, of course, present, but it was after I left the room ?—Oh, yes. How long afterwards ? —lmmediately you left. At what time in the day did this interview take place ? —I cannot tell that. It is bad enough to keep a diary without keeping a time-table too. Would you have had an opportunity of seeing Mr. Findlay before you made that entry ? —No, I did not see him. How do you know you did not ? You see him very often ?—I did not see him that day. You see him very often, do you not ? —I see him at the Club at lunch. And in your own room ?—Not unless it is on his own business. Page 702. He often goes to your room ?—No. But he does go at times quite often, does he not ? —Occasionally, Yes ; very often, No. You say you will not swear to the actual words of what took place at the interview ? —I said I would not swear to the actual words, but my record is what took place. You have recorded nothing about the conversation being confidential ? —I have not recorded that. My conversation was supposed to be confidential ? —I said in my evidence that I asked you what would be the consequence if Mr. Findlay disclosed the proposition yon put to him, and your answer was, "Oh, he will not disclose it; the conversation was confidential." I suggest to you that you are putting that in from memory, and there is no entry in the diary ? — ; It is not in my diary, but it is true. If you can prove that so clearly, Mr. Jolly, now, and you consider it so important, why did you not note in your diary that it was of a confidential nature ? — lean remember that without writing it down. There was nothing said about the interview between Findlay and myself being confidential ?— Oh, yes, there was. To you or to Mr. Findlay ? —Yes, you told me that the conversation was a confidential one. lam afraid I must deny that ? —I cannot help it. You have practically had to refer to your diary for the conversation, all excepting that portion, have you not ? Can you tell us what the diary says now about the matter without looking at it ? — Yes. " I told you, Lysnar, that you were mad to make such a proposal." Now, I want to be sure ; it is not likely to be recorded that you told me that the conversation was confidential —you are putting a big tax on my memory, Mr. Lysnar, in view of the mass of correspondence. I think you are the originator of it ? —Of what ? Page 703. Of the necessity of putting that tax on you. I did not bring the question up. But that is all you can prove of what the diary says ? —lt refers to mainly what you told me you had put up to Mr. Findlay, and my remarks to you in reply. I ask you to tell me what your entry was ? —lt is a memory test: " Mr. Lysnar told me that he had put a proposal to Mr. Findlay, of the Shaw, Savill, and Albion Company, that they should take over the ' Codrington ' at £160,000 to £170,000, and that if this were done he would not support the