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MORRISON, COITNBEL FOB THE DEFENDANTS. SAINT JOHN, N. B. PRINTED BT BARNES AND GOMPANT, PBIirOI ^tLLUM STBm. 1871. '^^mt^fmiiimeiim'wmmmmi'm^^mf'mfmmmw • r • ( " r ' • ^ • > ■' • ' I i i i ! / , { !!l f; h;i'^!/.H .•;;!!' ', i. '* ■ i waiii/a (i/A:.i;iiiM(i ,>.)/i(i/.Hj-'';! ^'^'1^ rir. u/. JA;(.i.-.i;j M'!;:T': h'f:t';>f IN D James W. H. S 1st.- gage, < theCit June, i and mi wife, ol and th the sai Vaaghi prised, "All Qneen'i of land lies to 1 eighteoi intendei era side TTestwa to the E part off and Sail thousan< therewlt 2nd.- our Lori making life at th his last ' was to b( 3rd.—' plaintififg, were app dicil the to act in ( Alary Au ,»'• .1 (! 1 IN THE SUPREME COURT IN EQUITY. BETWEEN David Vflughau and Henry Vaugban, James Vaugban, James Robinson, and Mary Ann Vaugban, Executors and Executrix of tbe last Will ' ~ and Testament ofTbomas Vaugban, deceased, Plaint^r. AND James Smitb and Margaret Smitb, Jobn McMoran anil Maria McMorao, Defendants. ■^ Iv; Ih'M. ij- W. H. SiNNOTT, Coutrael for Plaintiff. 1st. — The plaintiffs complain that by virtue of an indenturo of mort- gage, duly registered in tlie office of the Eegistrar of Deeds in and for the City and County of Saint Jolin, and bearing date the seventh day of June, in the year of our Lord one thousand eight hundred and sixty-four, and made between the defendants, James Smith and Marearet Smith, bis wife, of the one part, and the above named plaintrfis, David Vaughan and the said Thomas Vaughan, since deceased, of tbe other part, that the said above named plaintiff David Vaughan and the said Thomas Vaughan, deceased, were mortgagees of certain property therein com- prised, situate and described as follows : — " All that certain piece or parcel of land situate, lying and being in Queen's Ward, in the City of Saint John aforesaid, being a part of a lot of land known on the map or plan of that part of the said City which lies to the Eastward of the harbour of Saint John by the number (18) eighteen : the said piece or parcel of land hereby bargained and sold, or intended so to be, having a front of fifty feet, more or less, on the West- ern side line of Prince William Street and extending back therefrom Westwardl}', preserving the same breadth, ninety-five feet, more or less, to the Eastern side line of Saint John or Water Street, including all tbat part of said lot number eighteen that lies between Prince William Street and Saint John or Water Street aforesaid, for securing the sum of five thousand ponnds and interest, which said mortgage and a bond given therewith are now in the custody of the said plamtiffs." 2nd. — ^That on or about the twenty-fifth day of J iily, in the year of our Lord one thousand eight hundred and sixty-seven, and after the making of the said mortgage, the said Thomas Vaughan departed this life at the said City of Saint John, having first duly made and published his last will and testament and a codicil thereunto, which said codicil was to be added to and taken as a part of said Will and Testament. 3rd. — ^That by the said last Will and Testament the' above named plaintiffs, Henry Vaughan, James Vaugban and Mary Ann Vaughan were appointed executors, and executrix thereof. That by the said co- dicil the above named James Kobinsan was appointed another Executor to act in conjunction with the said Henry Vaughan, J mes Vaughan and Mary * Ann Vaughan. •J^'iuu iiyju H 4th. — That tho abovo named plaintiffs, James Vauehan, Jatnes liobiU' son, and Mary Ann Yanghan, after the death of the said Thomas Yangban, proved the said fast Will and Testament, and the codicil to the same, before the Probate Court of the said City and County of Saint John, and took upon tiiemsclves the burden of the execution thereof, and letters testamentary wore, on the eighth day of April, in the year of our Lord one thousand eight hundred and sixty-eight, by Charles N. Skiniier, Esqnire, Judge of the said Probate Court, grantea to the said James Yanghan, James Bobinson and Mary Ann Yaughan ; and which said letters testamentary are now in the custody of the said James Yaughan, James Bobinson and Mary Ann Yaughan. 5th. — And in common with other property of him, the said Thomas Yaughan, his interest in the said mortgage and the money secured there- by, was devised to the said executors and executrix upon trust that they should, with all convenient speed after the decease of him, the said Thomas Yanghan, call in and collect and compel payment of the same ; and for that purpose the said executors were, by the said Will, authorized to adopt, commence, prosecute, complete and carry on any whatever proceedings at law or in equity as should or mi^ht to them appear necessary or advisable for such purpose, and the receipt or receipts of them the said executors, for all money paid them under and by virtue of the said Will, were in and by the said Will made in all cases a sufficient and ef- fectaal discharge for such sum or sums of money as they should by such rMoip^ or receipts acknowledge to have received. And in and by the said Will they, the said executors and executrix of him the said Thomas Yaughan, were given full power over the bonds, mortgages, specialties, coniracts and other documents under seal or otherwise l)elongiDg to him the said Thomas Yanghan, with full power to sell, settle, foreclose, or in any way lawfully to deal with and dispose of the same or any part of them. ;.o,i', ..."., . '■' .. ',,,.' 6th. — That^no special deimise of the said mortgage or money secured thereby, or of the interest of him, the said l^oraas Yanghan, therein, other than that sei forth in tho fifth paragraph of this bill is made, and by the said Will or codicil of him the said Thomas Yaughan. 7th. — That under and by virtue of a covenant or clause contained in said mortgage, the said defendant James Smith was to insure the build- ings and erections on the said lot of land against loss or damage by fire to an amount of not less than three thousand pounds, and cause the po- licy or policies thereof to be made payable, in case of loss, to the said mortgagees, their executors, administrators or assigns, and in case of ne- glect of the said James Smith, his executors, administrators or assigns so to uo, it should be lawful for the said Ihivid Yaughan and Thomas Yaughan, their and each of their executors, administrators or assigns to iiiftttre and keep instired the same in «nch manner and form as to them mig&t #eem fit, and that the sum or sams of money so paid, with interest on the fiatne from the respectiTe time of paying the same, snonld be pQiy- able to this said David Yaughan and Thomas Yaughan, their executors, administrators or assigns on demand, and should be chargeable on the said premises. That the raid defendant James Smith did neglect and retuse to make and continue su(^ insurance ; and the sidd plaintifis have bee? obliged to pay and lay ont a large sum of money for cifectiiig and nes liobio' id Thomas ! codicil to ty of Saint ))ereof, and year of our ^. Skinber, said James which said a Vaughan, lid Thomas lured there- at that they m, the said r the same ; , aathorized Y whatever if necessary >f them the of the said lent and ef- dd by such and by the aid Thomas specialties, i;iDg to him iclose, or in any part of tey secured an, therein, made, and ontained in the build- iage by fire luse the po- to the said case of ue- assigns so nd Thomas r assigns to as to them ith interest nld be pi^y- exectitors, ible on the leglect and intiffs have fecting and continuing said insurance, lo wit, the dtun of seventy dollars, which said sum of money haa become a further charge on said premises. 8th.— That the time fur the payment of the said sum of money secured by said 'nortgage, and the interest tiicrcon, has elapsed, and that the said defendants are entitled to the equity uf redemption of the said mortg^ed premises. II. lliat the plaintiffs, therefore, pray to bo paid the said sum of five thousand poimds and interest, and the said premium money for insur- ance as aforesaid, with codts of this suit ; and In default that the equity of redemption may be foreclosed, the mortgaged promises sold, ana the produce thereof applied in payment of their said debt and costs, and for this purpose to have all proper directions given and account taken. FcBBLs & SiNNOTT, Plaintiffs' Solicitors. [Amended as by Order of the Court.] 9th. — ^That on tlie nineteenth day of April, one thousand eight hun- dred and sixty-seven, the said James Smith and Margaret Smith, his wife, did, by deed duly recorded, assign, transfer and convey all their right, title and interest in the said lauds premises, with other lands and premises, to one John McMoran, whereby the said defendant, John McMoran, is interested in the equity of redemption thereof, and which deed is not in the possession or under the control of the said plaintiffs. 10th. — That the said defendant John McMoran, and one Maria Mc- Moran, his wife, executed a mortgage bearing date the eleventh day of October last past upon the said lot of land and premises, with other lands and premises therein described, to the said defendant James Smith, and that such mortjgage is not in the possession of the said plaiqtiffs, nor do they know in whose possession said mortgage is. ^Tndobskd.) ',/',', Supreme Court in Equity. David Vaughan and Henry Vaughan, James Vaughan, James Robinson and Mary Ann Vaughan, Executors and Executrix of Thomas Vaughan, deceased. }-Bill. AND James Smith and Margaret Smith, John McMoran and Maria McMoran. Filed 25M AuffiMt, 1S08. FoKBEs & SiNNOTT, Plaiutiifs Solicitor. - m IK THE SUPREME COURT IN EQUITY. BETWEEN David Vaughan and Henry Vaughan, James Robluson, and Mary Ann Vaughan, Executors and Executrix of the last Will and Testament of Ijiomas Vaughan, deceased. Plaintiffs. AND John McMoran, .Tames Sriith, Maria McMoran, and Margaret Smith, Defendants. Interrogatories for tlie examination of the above-named defendants, in answer to the plaintiffs' bill of complaint. i l«t. — Hm not a mortgage been made, given, and dnly registered to the said David Yaughan and one Thomas Yanghan, since deceased, of the date, for the sum, and in the premises on the first section of the said bill mentioned, or some other, and what date, sum, and premises respec- tively ? 2Dd. — Did twt the said Thomas Yaughan depart this life on or about the twenty third day of Jnly, in the year of our Lord one thousand eight hundred and sixty-seven, at the said City of Saint Julin, or on some other and what day, at s jme other and what place ; and did he not first duly make and publish his last Will and testament, and a codicil thereto as stated in the second section of the plaintiffs* bill, or how otherwise ? 3rd. — Did not the said Thomas Yaughan, by his said last Will and tes- tament, appoint the above-named plaintiifs — Henry Yaughan, James Yaughan, and Mary Ann Yanghan — the executors and executrix thereof, and did he not appoint the said plaintiff, James Robinson, another ex- ecutor thereof, by his said codicil to his said Will, as stated in the third section of the plaintiffs' bill, or who were appointed »;xeeutors thereof? 4th. — Did not the said plaintiffs, James Yaughan, James Robinson, and Mary Ann Yaughan, prove the said last Will and testament and codicil to the same, before tno Probate Court for the said City and County of Saint Joiin ; and were not letters testamentary granted to them by the Jndge of the said Court, or how Otherwise ? 5th.— -Did not the said Thotnas Yaughan, in common with other pro- perty, devise his interest in said mortgage, to his said executors and executrix, n{)on trust for tlie purpose, and with the powers set forth iu the fifth section of the plaintiffs' bill, or how otherwise ? 6th. — Was there any special devise of the said mortgage, or money secured thereby, or of'^the interest of him, the said Thomas Yanghan, therein, other than that set forth in the fifth paragraph of the plain- tiffs' bill, under or by the said Will or codicil of him, the said Thomas Yaughan ? 7th. — Did not the said plaintiffs pay the sum of seventy dollars, or what other sum, as premiums for insurance of the buildings and erections on the said premises, or who did pay the said premiums, and were they not authorized thereto, as set forth in the seventh section of the plain- tiffs bill ; and is not snc^ '^um a further charge upon said premises ? 8th. — Has not the tim* for the payment of the said sum of money elapsed, and are not the said defendants entitled to the equity of redemp- tion? W. H. SiNNOxr, Counsel for Plaintiffs. 9th. — Did the said defendants — James Smith and Margaret Smith — assign, transfer, and convey their interest in the said premises to the said defendant, John McMoran, by a certain indenture of deed, dated on or i^out the eleventh day of April, A. D. 1567 ; and is not the said John McBloran and Maria McMoran, his wife, interested in the equity of re- demption thereof, and in whose possession or custody is the said deed or conveyance ? lOtn. — Did not the said John McMoran and Maria McMoran, his wifC; at the time, and on the day mentioned in the tenth section of the plaintiffs^ bill, execute a mortgage to the said defendant, James Smith, of the said premises, with other lands and premises therein included, or how other posse torcd to the sed, of the of the Baid ises respcc- n or about isand eight >r on some he not iiret icil thereto jerwise ? ill and tes- an, James •ix thereof, inother ex- 1 the third thereof? Robinson, anient and nd County J them by other pro- intors and )t forth iu or money Vanghaii, the plain- d Thomas lollars, or erections were they the plain- ises ? of money f red em p- lin tiffs. Smith- es to the dated on said John ity of re- 1 deed or )ran, his )n of the Smith, of , or how I VH othorwiso ; and is said mortg gc in the said plaiatift'tt' hands, or in whose possession is it? W. H. SiNKorr, Counsel for Plaintiffs. (Indobmo.) Supreme Court in Equity. David Vaughan and Henry Vnugban, Jamus Vaughan, James RobiiiRon^ ana Mary Ann Vaughan, Executors and Executrix of the Inst Will and Testament of Thomas Vaughan, deceased. James Smith and Margaret Smith, and John )r«n. FoKHKs & SixNorr, Plaintiffs'* Solicitor. irgar( McMoran and Maria MoMoran. I 4*' .If Intcrmgativos. Filed S.'UhAHyuiit, 18«8. SUPREME COURT IN EQUITY. BETWEKX David Vaughan and Henry Vaughan, James Vaughan, James Robinson, and Mary Ann Vaughan, Executors and Executrix of the last Will and Testament of Thomas Vaughan, doceasfd, MaintiffH. : AND ! ■ • James Smith and Margaret Smith, Defendants. ;m/ of counsel witli the defendant, James Surra. The answer of the above-named defendant, James Smith, to the plain- tiffs' bill of complaint. 1st. — I admit that the mortgage was made, given, and duly registered to the said David Vaughan and one Thomas Vaughan, since deceased, of the date, and for the sura, in the first section of the plaintiffs' bill mentioned ; bnt I state that at the same time, and as a part of the same transaction, I gave the said David Vanghan and Thomas Vaughan, who were then carryif.g oh business in general co-pnrtnership, in Saint John, under the name, style, and firm of D. & T. Vaughan, another mortgage on certain property of mine, in the City of Saint John, for eight thousand dollars and interest ; all of which I afterwards paid in full, and also at the request of the said David and Thomas Vanghan, a mortgage to the said Henr;y Vaughan, who was the brother and agent of the said David and Thomas Vaughan, for ten thousand pounds, with interest, ou a new ship of about fift<^en hundred tons register, called the Palm Tree, which I had just before bnilt, and into which I had put the whole of the said money received from the said David and Tliomas Vanghan ; that the said three mortgages were given to secure the sum of sixty-six thousand three hundred and sixty-one dollars, which they alleged I owed them for advances made to me in bnilding the said ship, and interest thereon ; and also the farther sura of one thousand dollars of usurious interest, that they insisted that I should pay over and about the interest for the for- bearance of the said sum of money, until the fourth day of December then next, and which I was obliged to agree to, to get the said ship to sea. I then loaded the ship in the port of Saint John, and dispatched her, with a cargo, to Liverpool ; and at the request of the said David / !? VIII aiid^TliointiH Vuu^hun, aliu wue consigned to Mcbsi'b. Millor ^ Mossman, the Agents of the shIu David and Thuinai) yHiij;^han, who I authorized to receive the freight as tliu agents of the said David and Thomas Vanghan, and at their request. The ship arrived safely at Liverpool, and carried a large freight, which wax collected and received by the said Miller & Mossnian for the said David and Thomas Vanghan. I was then desirous of selling the said ship, and )>nyiug off all the mortgages, which I could have done for enough to pay tliem all off; but the^said David and Thomas Vanghan, by their agents, took })os808sion and charr the sum of nine thousand two hundred and fifty pounds sterling; that the said purchaser was merely trustee for them; and they afterwards sold her w ithorized tu 19 Vniighau, and carried id Miller & lion desirous liich I could and Thomas 3 ship, and 11 the niort- y, got thum 1 sne could ice to Gallao einent with t the vessel :be berth at accordingly ads sterling, Melbourne, lerable sum, ptain Betts, >ured an ad* ing a cargo r cliarter at omry bond ; rpoaes, took am, besides e said Bhl]>, Vaughans, )oat, masts, >, and con- and never roceeded to nd Thomas ndnce them she arrived 'each of the tion out of when that Arrested on )er of par- le order of on paid by not paid to p for these said David in London, ff by and an, K>r the that the ds sold her IX tu another person fur ten tiiousaiid pound4 st* rling ; and I bulievu they arc still interested in the said ship. I have never been able to get an ac- count of the said transactions ; and I claim that they nhonld account to me for the use of the said ship while they kept her at Liverpool, and also !for the money or other things they or their agents received from ber ; and that the}, as purchasers, were bound, after such tale, nnder the said mortgage, and purchase by or fur them, to pay off and indemnify me against all losses or charges on the said ship that had priority over the said mortgage, such as the lien of the material, men, and the said bot- tomry, and that an account should be taken of those matters; and if the jsaid David and Tlioinas Vaughan has received or ought to pay enough to satisfy the whole amount-justly due them, that thoy should be decreed to discharge the said mortj^age. 2d. — I admit that the said Thomas Vaughan did depart this life on or about the twenty-second day of July, in the year of our Lord one thou- sand eight hnndrod and sixty-seven, at the City of Saint John. 8d.--I admit that the said" Thomas Vaughan did, by his last Will and testament, appoint the above-named plaintiffs, Henry Vanghan, James Vaughan, and Mary Ann Vaughan, as the executors and executrix thereof, and he did appoint the said James Robinson another execator thereof, by a codicil to the said Will. 4th. — I admit that the said James Vaughan. James Robinson, and Mary Ann Vaughan, did prove the said last Will and testament and ] codicil before the Probate Court for the City and County of Saint John, and letters testamentary were granted to them by the Judge of the said Conrt. 6th. — I am utterly ignorant of all the matters enquired 6f by the fifth, sixth, and seventh interrogatories, and can form no belief on the subject. 6th. — ^The time for the payment of the mortgage money is elapsed, and the said plaintiffs have taken possession of the said mortgaged premises, land have occupied the same, and recovered rents, and they, together with I the money that they received from the sale of the said snip Palm Tree, was more than snfficient to pay off the said mortgage, and they ought to discharge the same. I am not entitled to the equity of rederaptior ^n the said mortgaged premises. The said James Smith was duly sworn to the ) , , -. ,,,.«... truth of this answer at \ !■]'■' p, '[] ■ i 7. \ this day of A. D. 1809, ) Before me, A Commissioner, <&&. Supreme Court in Equity, .')'-. .1}'- I -'-h i. ■'!•»; v.^.^i > !..r .. , I. ill' 'W •ii ;!!■. ■ ,■ **.»». rf^ IN THE SUPKEME COURT IN EQUITY. Wednesday, Uh October^ 1870. J3efore His Honor Mr. JiiBtice Allen. • « J 1i; BETWEEN David Yaughan and Henry Yaughan, James Yaugban, James Bobin' son, and Mary Ann 'Vaughan, Executors and Executrix of he ;» {i'> last Will and Testament of Thomas Yaughan, deceased, Plaintive. Vn\\ -J.!!' b^. AND James Smith and Margaret Smith, Defendants. fifiu iii'/f • And by amendment > t >! BETWEEN David Yaughan and Henry Yaughan, James Yaughan, James Bobin* son, and Mary Ann Yaughan, Executors and Executrix of the last Will and Testament ofThomas Yaughan, deceased, Plavntiffs. >.. * AND James Smith and Marearet Smith, and John McMorau and Maria McMoran, Defendants. Da t. ..... indl Da Jam< Dcct and ob 12th in Dece Dn the Adjour Janui K summ Ordered by, and with the consent of counsel for both parties, that Charles N. Skinner, Esquire, a Barrister, be apppointed a Commissioner to take the examination of all such witnesees as may be produced before him in the above cause, as well on the part of the Plaintiffs as on the **' *^^J part of the Defendants. By «.e Court. ^"•' ..m. ..«u '<4 idi^ffu 7;i(fl hiXR .'j^x-ainoiu ; -^ ' .'*\ ^- Cakman, OlerJi in Equity. ai nuhqacjb-j-! 'k* 'fih\\' Mill -;1 ^m iwi-. "■ 'lU IN THE SUPREME COURT IN EQUITY. David Yaughan et al, Plavntiffs. James Smith et al, Defendants. Charles N. Skinner, the Barrister within named, was by me this day duly sworn to the faithful discharge of the duties referred to him by the within decree. Fredcricton, October 25th, 1870. A.R. Wktmorb, J. 8. C. Janui IMr. Sim he pari Ware I am now J ment is docume U'csenc witness by Jam before r mas Ya Probate in by cc Cross >eing e: he houi greemc Adjou iber^ 1870. ames Robin* outrix of he 1, Ptaintiffe. \nU. ames Bobio* iutrix of the J, Plaintiffs. [1 and Maria parties, that /ommissioner daocd before i^s as on the m Equity. I'TH hme sin IN THE SUPREME COURT IN EQUITY. David Vauj rne this day him by the B, J. s. a BETWEEN lughan and Henry Yaughan, James Vaughaii, James RobinBoii, and Mary Ann Yaughan. I*y Davi Mr. Barker here states that tiiey proceed under protest. vaugha The plaintiff closes here. inderstc ■' auoha es: he be ollate n re he 9 ecurit ecury >urpo8 hat it endec ersati 'ftreet, ixactly ivas bu 2igh ent. w lid not A'ay I \ ,'M'. Aurouffh KVIDENOE FOR THE DEFENCE. itrengtl] James Smitli being called, and sworn, says — )ut ther I knew the late David and Thomas Yaughan. I had some money ind it w transactions with them : they commenced in 1864. In the winter of 186( u and 1864, about the month of February, 1 was about to build a ship o. I applied to Mr. Thomas Vaughan for a loan of money to build tn( he ship ship. After some considerable talk backwards and forwards, he a^ree( ) Henr to advance me some money. I stated to him the purpose for which 1 " wanted the money : that is to say, to build a Ship. The firm then len len thoi uestion Prei.eut as .Barrister. tho 8th in- Barrister. e ;srs. Barker tho money from time to time. Tlic accounts will show the amonnls, I gave them security for the money. Q. — Upon what did you give se- curity for the money ? [Objected to by iklr.Barker, who asks the witness tins question. Q. — Was it a written secnrity. Ans. — Yes. Then Mr. Barker objects to the question beina answered, until the production of the writings. The Attorney General calls IVt the written securities or mortgages, under the notice to produce now handed in, by which it ap- e part of the py^,.g tijj^^ i\^q notice to produce was served tliis day.] The mortgage al- j-eady in evidence, is put in the hands of the witness, and he then says — lYes; this is the mortgage I gave, and this is the bond I gave (meaning he bond already in evidence). This bond and mortgage were given as collateral security for the moneys borrowed. I gave no other security n real estate, except a mortgage upon the Queen square property, he Queen square mortgage was given first. They were both given as ecurity for these loans. When the ship was launched 1 gave a further ecury. Before the ship was launched 1 gave security. Q. — For what i)urposc did you give all these securities ? [Objected to on the ground hat it would appear by tiie documents what these securities were given in, in Prince since before 3d the build- ioued in tho ceipts. Tho loUars a year i dollars. I was no other fear. I paid Ifor,] Ans. — For money to build this ship. After the money was ex- A. D. f>cnded on the ship that I had gotten on these properties, I had a con- versation with Mr. Thomas Vaughan ; we were going up Princess ifti'oet, to his own house. I was in company with him ; I cannot say )ruary, •y since. ans taken out orbes and Mr, and Mr. Mor- ixactly what time: it was before the ship was launched, and while she Was building. He said if he advanced any more money, he must have Barrister pro- l the proceed- on getting money, I builded the ship ight and one-half per cent, for it. I told him eight and one-half per ent. was out of the way for it ; but the ship was partly finished, and I id not want two accounts, or to apply to other parties for money, the iVay I was situated. I told him I would get the money from him, and 1 lar<'ed by his ^xpected he would do what was right. I then went e Weldon or- »3 it was required, and went on building the ship, rora the said \ t the foot of Princess street, between that and Orango street. Mr. day of May ^avid Vauglian was there repeatedly while the ship was building. Mr. and the Bar- Jenry Vaughan was there some times, but not so frequently as Mr. I and he had, )avid Yanghan ; but Mr. Thomas Vaughan was in England. Mr. James il day of May Robinson was there frequently too; he was their business man. They said Barris- !;enerally expressed themselves satisliod with the way tho ship pro- taken out on pressed. Tho tinn of D. & T. Vaughan was composed, as I supposed, )y David Vaughan, Tiiomas Vaughan, Henry Vaughan, and Simuon V'aughan. I do not know, of my own knowledge ; this was tho way X uiderstood it. The ship was about linislied, at which time David * aughan saw me, and requos^tsd me to put in bilge logs, and bolt them arough and througli with copper, to strengthen her. He said it would itrengthen her; and if they were not put in, whoever bought her would )ut them in ; and he said, if we should buy her we vouldput them in ; some moncj md it would be greatly cheaper to put them in now. I did put them 'inter of 1863 u her, and it cost me between four and five hundred pounds to do a ship 0. After tho ship was launched, I gave them a further security upon to build tn( lie ship herself. [Certified copy of mortgage put in from James Smith •ds, he afreet > Henry Vaughan, of ship '•'•Palm Tree^'' dated 20th June, 1865, for I for which ] an thousand pounds currency.] This mortgage is upon tlie ship in irm then leni uest'on. [Mr. Barker objects to this mortgage being put in evidence, ; !' . as it is drawn to Ilcnry Vaughan, &c.] At the time I gave this inort- rave i gage the ship was nearly ready for sea. I had a conversation with Thomas Vaughan : ho wanted secnrity for the balance of the money which I had got to build the ship. Mr. Thomas Vaughan and I went into Mr. Vaughan's office : Mr. David Vaughan was there, and I think James Robinson was there ; wc were talking about the amount that was due. No amount was settled upon then, f said I will give you a secu- rity for ten thousand pounds ; and when we come to settle, you will do what is right with mo, whatever the sum may be. David Vaughan was sitting on a chair ; Thomas looked over towards him, and said that will make the things all right— that wi'l do; and the mortgage was then given. It was agreed upon then, and Mr. Thomas Vaughan said the mortgage had better be given to Henry Vaughan, as he would be at ^nce o home, and it would be easier dealing with him than with the whole firm, lifter t I now refer to the mortgage upon the ship. The word home liad refer- ijie shi once to England, as I took it, to which place the ship was bound. I told fhey e Mr. Thomas Vaughan, in a conversation I bad with him the same day, charge that I was going to consign the ship to Messrs. Lamport & Holt, of Li- prpool verpool : he said — No ; you had better consign her to Miller, Mossman ^r. H( & Co. ; and you and old John Miller are such friends, ho will do the best ivith h he can for you, as he is a ship broker. True, said I, we are friendly, Vas Q but I never liked their way of doing business. He then said, they are |B10 st( our Agents, and they will do the best they can for yon ; and it will only Ihips a cost you one and a half per cent, for whatever business they do for yon. fj^o. sni Hft then said, just put tno ship in their hands, and don't make a mess of it; and lest anything disagreeable would come of it, I did put the ship in their hands. What I mean by lest any thing disagreeable would come of it, I was afraid if I did not put her in their hands, Messrs. heir ci ^ewP )rough n the Vaughans would be displeased at it. The ship was ic ''ed. I gave »er mai Messrs. D. & T. Vaughan. [The Attorney General here, under the no- ' i^ent ft tice to produce, calls for an order drawn by witness upon Farnsworth & utfit. Jardine, in favor of D. & T. Vaughan.] t gave the order to Thomas ; ajne ai Vaughan. [Order not produced by plaintift*.] Mr. Barker states that filler i in the ordinary course of business, the order would not bo in plaintiffs ale of hands, but in those of Messrs. Farnsworth & Jardine. The Attorney , tfr- Va General claims that the order was given to the plaintiffs ; and it will be i can g( for them to shew what they did with it. Mr. Barker here claims to ask lifiy, the the witness if he does not know that the order is in the hands of Messrs. that wo Farnsworth & Jardine ; and Mr. Barker also objects that the notice to produce has not been served in time — it having only been served this day. The Attorney General objects that the Barrister has no power to allow Mr. Barker to put such a (question now ; and that the question is irregular, and bhould not be put at this stage of the proceedings. The <]^nestion is allowed here, subject, of course, to the objection. The ques- tion and answer so objected to, are as follows : Q, — Do you not know of this order being in Farnsworth & Jardine's hands and possession long after you gave it to Mr. Ans. — I never saw the order in Farnsworth & Jardine's hands after I gave it. { Mr. Barker here states that he does not consider this an answer to his question, and here repeats the question and says — Do yon not know Viaser a1 it was in their hands after you gave it? Ans. — 1 never saw it after I f^berdee ou for ou a pi aid I w aid the id to sel on versa hat Caj vonld tj Vaughan here. Vhen I ou tell ns. Y( \ ,ve this mort- jrsation with f the money n and I went , and I think unt that was » you a secu- ttle, you will 'id Vaughan ind said that lortgage was ^aughan said 3 would be at le whole firm, ne had refer- ound. I told lie same day, ; Holt, of Li- ler, Mossman ill do the best are friendly, aid, they are d it will only y do for you. make a mess did put the ceable would mds, Messrs. ''ed. I gave nder the no- arnsworth & to Thomas states that in plaintiff's he Attorney md it will be slaims to ask ds of Messrs. the notice to served this no power to e question is idings. The The qnes- & Jardine's inghan here, lands after I is an answer on not know law it after I ave it. Mr. Barker hero repeats the cpiestion, and the witness says : do not know of it ; I had no way of knowing it. The Attorney General resumed the examination of Mr. Smith. Qxtes. Do you know what the order was? [Objected to by Mr. arker: first no sufficient notice to produce given, the time being unrea- onably short ; second, in the ordinary course of business it would not e in our possession ; third, not shown to be in the plaintiiTs possessioiu] Ans. The order was about as follows : Messrs. Farnsworth & Jar- ine, please pay to the order of Messrs. D. & T. Vaughan the freight of Palm Tree" as per charter party, and signed by myself. The ship was aded in July 1H66. I never received her freight — not a penny "piecu f it. Some of it was spent in disbursements — that was paying off bal- nce of port charges and sailors' wages at Liverpool. I went to England ftcr the ship went on there ; I arrived there before the ship got there ; he ship was put in the hands of Miller, Mossman & Co., of Liverpool, liey entered the ship in the usual way ; the ship was docked and dis- harged. Q. Had you any conversation with Henry Vaughan in Liv- rpool with reference to the ship ? Ans. Yes, I had conversations with r. Henry Vaughan as to a sale of the ship and what could be done itli her, I tried to sell the ship to any purchaser that came along; one was Captain Lindsay ; he looked at the ship. I considered her worth 10 sterling per ton ; that was my asking price. I have been building hips a long time, over forty years. I have built a large number, large md small — forty-nine ; iny ships are well known in the English market : heir character, so far as J know, was as good as any that went out of '^ew P-unswick, and in many cases better. For several years my ships )rought from ten to fifteen shillings a ton more than other people's shipe. n the way the market stood then I valued her at £9 sterling per ton ; ler market value then was certainly not less than that ; this was as she irent from here, without being coppered or classed, and with a short utfit. I did not sell her then ; tlie prevention was that a purchaser ame and I told him my price, and 1 told Mr. Miller my price. Mr. filler said — [Here Mr. Barker objects to what Mr. Miller said about the ale of the vessel. The Attorney General replies that Mr. Miller was tfr. Vaughan 's agent.] Mr. Smith, if you are going to sell her at that . can get you a purchaser where there will be no trouble about the mo- ley, the pay, but a man must be a perfect fool in the state of the market hat would sell that ship at that price, fur ships will come up, and pay ron for keeping her, and when you come to sell her for that I can get 'ou a purchaser where there will be no trouble about the money. I aid I was anxious to sell, and 1 wanted to know who the party was. He aid the party was all right, and there would be no trouble when I want- id to sell for that price. I mentioned to Mr. Miller, who I then had the lonversation with, and who «>as one of the firm of Miller & Mossman, hat Captain Lindsay said the vessel was worth nine pounds, and if 1 ronld take that his correspondents, JosephTarratt & Co., would bay her. V^hen I say nine pounds, I mean nine pounds sterling per ton. Q. Did on tell Mr. Miller the facts as they had occurred. [Mr. Barker objects.] I. Yes. Mr. Miller repeated what he said that he conld get a par- ser at what he said. I had another offer to pnrchase her from an berdeen man, and an offer from Mr. Major, and an offer from Mr. ^ m (I I ! Tarratt. The Abordooii nmii's oiler wa;* only ;,oven i^ouncls iiftecn. The market was dec-lining tlieii. Mr. Majors oHer was eight pounds five. He said, it' I would take it ho would give eight pounds ten ; ho said he was in treaty for ti ship of Mr. Fisher's with Mr. Coaltart. lie said he could get that ship at seven pounds ten, but that lie would rather have mine at eight pounds ten. I told him I had other parties to consult, and I would give liiin an answer next day at twelve. The par- ties I wished to consult were Messrs. Miller & Mossman, the agent, and Mr. Henry Vaughan, if he could be seen. His terms were as usual, one quarter cash and balance secured ot the ship. 1 saw Mr. Miller next morning, and told him about this offer, as I have here stated it. He said them parties Major had bought a ship for them some time ago, and they were not able to pay the deposit, and he did not want to sell tne ship to such parties, and he would not take them for the ship. He said, if you are going to sell the ship for that, I can get you parties that will take her that there will be no trouble with. I said, you hpve been telling me that and keeping me back since I have been hero. I want you to teU me who the parties are; I am determined to sell the ship ; 1 want to know who the parties are ; I want to come face to face to see who the parties are, and see if we cannot come to some arrangement. I asked him a third time before I could get an answer. I was determined to get an answer, to know who it was, as I was determined to sell. He told me it was Mr. Vaughaus. I said, why did you not tell me that before. I said Mr. Henry Vanghan has come in, I hear him in the outside office; I will go xnd el balanc to ^)aj Iwhich jixteei seven t 'there ; Adj and ask liiui. I came out and die' ask Mr. Vaughan — Mr. Henry Vanghan here present. He said, Mr. Smith we have too many ships, we sold one the other day, the old David, and I would not give you seven pounds ten for her. Mr. Miller came out to the outside office, and I said, Mr. Miller, you have been keeping me all along telling me about your purchaser, and now this is the way. I then went away home to my lodgings to meet my appointment with Major, who was there before I left Wr. Vaughan, though he said he did not want to take such paper, referring to Major's offer. This conversation with Mr. Miller and Mr. Vanghan was seven or eight months after the ship had arrived in Liver- pool : it was in the winter ; the ship arrived there last July, 1865. The nrst conversation with Miller about Lindsay's offer was just after the ship arrived in Liverpool. I met Major after this conversation with Messrs. Vanghan and Miller, stated above, a^ wording to my appoint- ment with him at my lodging. [Mr. Barker hero objects to the witness telling his conversation with Major — the witness stating that Mr. Vaughan was not present.] Major said he was sorry when I told him that I had to decline his offer, both on my account and his own account. He said — I have neither purchased a ship for them, nor they for them- selves, bat what they were able to pay for : he said this after I liad told him what Mr. Vaughan and Mr. Miller had said about his principals. He then said he had been in treaty with Messrs. Coaltarts about a ship of Mr. Fisher's, ir,nd that he would go now and take her, and pay for her with the like payments as he had offered me : his principals were Messrs. Farnham, of London. The meaning of the terms was one-quarter cash, balance on time, which meant four and six months. This was the usual way : very seldom ships were sold for cash. They had to be coppered |ior, as jounds feelling, md la upon t did tak tionsal )er ton Japtaii ipprovi md in nents ^ he oul eniain 11 casl •arty. |manag( and if i Itheir in done? : I will ^ and gi\ rates. he was own inl Vaughi lid con ineof Fanuar iome t( I voyaj 9 iftecn. The pounds five. ;en ; he said oaltart. lie t he would ler parties to s. The par- te a^ent,and as usual, one Miller next ited it. He me ago, and sell the ship 3 said, if you will take her lin^ me that teU me who now who the ire, and see if time before rer.; to know it was Mr. I said Mr. ;e; I will go -Mr. Henry ■my ships, we e you seven office, and I ig me about vay home to there before such paper, ler and Mr. ed in Liver- 1865. The ist after the rsation with my appoint- the witness ' that Mr. 1 1 told him wn account. sy for them- ;r I liad told principals, bout a ship pay for her vere Messrs. uarter cash, as the usual be coppered kud classed after that, and the ship would be so much more value. The balance, at four and six months, would be secured on the ship. He was Ito pay for fifteen hundred and forty tons — this was medium tonnage, Iwhicn means the averaj^e between old and new : her old tonnage wa& sixteen hundred and' eight, and her now was fourteen hundred and seventy-two. When I spoke of her value, it was when 1 first went 'there; I then spoke of her value upon the old tonnage. \ Adjourned until Thursday, 0th J nne, at same place, at two o'clock, r. m. 1. - ^ ; ; Tuesday, 0th June, 1871, two o'clock, p. m. Met pursuant to adjournment. Present as before. .' James Smith's evidence resumed. • I had further conversations with other parties concerning selling tli*e I ship. Mr. Tarratt said to me — [Mr. Barker and Mr. Forbes object to uiy conversation with Tarratt. The Attorney General here does not ress the evidence.] I told Mr. Miller tiiat Tarratt would not renew hi.* brmer offer that he had made through Captain Lindsay, on account of umors going through Liverpool that Mr. Henry Vaughan would not illow her to sail on a voyage ; and ho (Tarratt) expected a bargain of ler, as she likely would be sold ; but he now would not give over seven )ounds fifteen shillings a ton, and he wanted to get a commission for bliing, as he had other parties connected with uim, as I understood ; ind I also then stated to Mr. Miller that Tarratt said there was a mortgage l^ipon the ship, and he expected that she would be sold under it. Tnero lid take place between me and Henry Vanghan and Mr. Miller conversa- tions about sailing the ship. I was offered forty-seven shillings and sixpsoee }er ton for coals from Birkenhead to Aden : the offer was made by ])aptain Pritchard's brother : the charter party was submitted to me for approval ; and I communicated all these particulars to Mr. Yaaghan ; ma in the conversation, amongst other things, told him how the pay- ents were to be made, as per the charter party, viz., three-fourths of he outer freight cash down, if required, and the balance he wished to emain to pay the foreign disbursements ; but if I wished he would pay all cash down. I told Mr. Vaughan what was the contents of the charter party. Mr. Yaughan said they had more ships now than they could manage; and there was more risk in runningships than people thought; and if she did not sell, she misrht lie in the dock ; that they could get their interest in the dock as well as out of it. I said, what is to bo done ? the ship cannot be sold at a price to pay ; let her go on a voyage ; I will give you a clear bill of sale of her ; manage her as your own ; and give her back to me when she clears herself, as she will do at these rates. He said — No ; she could not go on a voyage ; Mr. Yanghan said e was then acting for others, and was doing the best he could for their wn interest. In the meantime I kept writmg to the firm of D. & T. aughan, at Saint John. The ship went to sea. Ultimately a letter id come from the firm of D. & T. Vaughan. [Letter put in.] This is ne of the letters I received from D. & T. Yaughan ; it is dated 15th "anuary, 1866. The ship sailed on a voyage then. There was a letter borne to Miller & Mossman, from D. & T. V aughan. The ship went on voyage to Melbourne, Australia ; she took a general cargo and emi- ill- 1^^ n grants. At the request of the Attorney General, I coi)y the letter just put in, Avhlch is in words and figures following : Saikt John, N. B., loth January, 1866. Jambs Smith, Esquire. Dear Sir — Your esteemed letter, of the 14th, via Portland, camo safe to hand — too late to answer, vtci Halifax, last mail. We hardly know what to say about you fit- tmg out your ship ; it will somewhat upset our arrangements. We cannot think of advancing any more money ; we have now advanced more than double what we ex- pected. A mortgage on a ship is very poor security ; they are liable to so many acci- dents that cannot be covered with insurance. However, in consulting Mr. David, we have concluded to let you send her to sea, if you can get any person to fit her out for you. You will have to be particular in selecting a good Master for her : we find nearly all depends on the Master, whether the ship makes money or not. We shall write Messrs. Miller & Mossman to insure our claim on her. The Mortgage, $40,000 £8,338 6s. 8d. stg. . i OnPreight 8,000 1,666 13 4 " " '•' ' ' '\ £10,000 Os. Od. stg. - We have not heard what is left to our credit on the freight. ' You will please to understand we only consent for her to go this one voyage. Wc bope this will meet your views. We remain, yours, truly, . D. & T. Vauohan. "• The only freight she had then earned was from Saint John to Liver- pool ; that was up to the receipt of that letter. The nett freight /roni Saint John to Liverpool was eighteen hundred and forty pounds {£1,840). She took a general cargo and passengers out to Australia : I know what her gross freight out there was. She would carry twenty- three hundred tons of coal. I had conversations with Henry Yaughan and Thomas Yaughan as to what happened to the ship on her voyage out to Melbourne. The insurance papers were sent to Miller & Mossman concerning the accident that had happened to her. The conversations were about the protest, the average statement, insurance, and the reco- very of the amounts insured, from the underwriters, upon the ship. I know that Mr. Yaughan had insurance upon their interest in the ship ; the policies were made out, and endorsed over to them, for £10,000 stg., according to that letter just read. Thomas Yaughan told me he had got| something on account of this insurance. I had something insured on har. I conversed with Thomas Yaughan concerning the insurance I had on the ship ; he wanted me to give a power of attorney to John Miller, of Liverpool, to collect the insurance for me. Mr. Yaughan mentioned to me the amount, and I mentioned it to him. My share of the loss was £1,500. The insurance papers came out to Miller & Mossman, and were handed to each of us, as we wanted them : they came from Melbourne to Miller & Mossman. I don't know whether they were in this country or not, but I saw them in Liverpool. I told Mr. Yaughan I would not give Mr. Miller any authority to collect the insurance, but I would give it to him, or wait until I went to Liverpool myself. He said that would do ; andj I gave him a letter to collect it. [Mr. Barker objects to the witness statin^ what was in the letter. Tlie Attorney General calls for the letter nnde^j the notice to produce. Mr. Barker says there was no notice given to produce it.] I heard from Messrs. Yaughan that they got their insurance. They named eleven hundred and twenty-one pounds, less some small c letter just anuary, 1866. "e to hand — too about you fit 11 charges, as the amount they received : this was sterling. She went from Melbourne to Chincha Islands. I talked with Mr. Vaughan about where she went. Q. — As the result of the conversation with Mr. Vaughan, where did you understand she went? [Objected to.] Ana. — Not pressed. Q. — Do you know, from conversations with Mr. Vaughan, .»,,»».»» ". where the ship went ? .^ti*.— She went to the Chincha Islands from sannot think of ^Melbourne ; she w nt there in ballast. I had a conversation with Mr. >lo what we ex- Vaughan about the ship being at the Chinchas. Q. — Had you a oon- o so many acci- vgrgation with any of the Messrs. Vaughan about paying oflF a bottomry Mjnd her to sea, P^ the ship at the Chinchas ? Ana. — Yes ; I had with Mr. Thomas ae particular iii jVaughan ; it was in D. & T. Vaughan's office, in Saint John. When taster, whether " "'" "- «' - t^ c- "^ ^r l... xi ssman to insure I. 8d. stg. 4 " ord came from Miller & Mossman to D. & T. Vaughan, they sent for e to go down to the office. I went. They read the letter about the jottorary being given in Melbourne [objected to by Mr. Barker] by the i^aptain— Captain Griffiths— on the "jPa^r/i 7V«e." The amount was not itated ; it was payable three days afte^ ler arrival at Gallao. He asked hat was going to be done about it — how it was going to be taken off. told him I had not wherewith to take it off; and that for the protec* ion of all hands, they had better pay it off; that she was a new vessel, nd the insurance would pay all. He said that the thing was to get the T. Vaughan. jfunds there — that is, conveyed there. He said, we will get an aeceptanco ohn to Liver- ^'' ^"""^ credit from the old Bank ; and he thought Captain Athol Betts freiffht iVoni ^^^^^ ^® S^t to go on and release the bottomry, ana as he passed on, 'ortv Dounds Ij^rough New York he could get it endoi-sed by a Bank there, and when Australia : 1 I. Od. stg. le voyage. Wo jarry twenty- pry Vaughan 1 her voyage sr & Mossman conversations and the reco- the ship. I ; in the ship ; £10,000 stg )aptam Betts got there and knew the amount, that would enable him to iraw for it. He agreed then to arrange it in that way. Adjourned until 7th instant, at two o'clock, p. m. June 7th, Two o'clock, p. m. Present as before. Evidence of J&mes Smith resumed. That ended the conversation. Then he saw Captain Betts, and then e, Thomas Vaughan, told me that he had agreed to gu to Callao, and le did go. Capt. Betts got there the day after the ship got there. [Ob- ected to.] Q. — How do you know Capt. Betts got there. Ans. — I [ie^he'had°^t^°°^ ^^ ^^**°^ letters I received from Captain Betts and Capt. Griffiths, r» inaiirfid onl'^® master of the ship. I onlv know what Captain Betts did there from , rT^PA T liaSI^**®''^ I received from Captain Betts and Captain Griffiths. 1 subse- IBurance i "a^E-nently learned what Captain Betts did there from himself personally. le gave me the information when he came back. Mr. Henry Vaughan ("as present at some of the conversations had with Captain Betts after is return. The principal conversations were had in England. [The ttorney General here calls for any letters that Captam Betts may onntrvor noTt*.^® written to the Messrs. Vaughan.'] Mr. Barker admits having re- not IvTQ Mr l®^^®** * ^®°<*"^ notice to produce, dated 6th June, 1871, and received vfi it to him^® ^*™® ^^^ ** ^^^ quarter past seven o'clock in the evening. Mr. j^jjj parker says there is no evidence as yet to show that Captain Betts ever rote any letters to Messrs. Vaughan, or that there are any in their pos- «sion. Q. — State any conversations you had with Captain Betts relat- g to any transactions he had concerning the Patm Tree at Callao, in le Ohincnas. [Mr. Barker objects to conversations with Captain Betts eing admitted.] Ana. — Ho said when he got to Callao, and seeing the uano charter party, with Captain Griffiths, it provided for all disburse- John Miller, m mentioned 'the loss was J an, and were Melbourne to ive mid do itness statin letter underj ticc given to eir insurance. 8omo small M i ments at Gallao and the Ghinchas for the Paltn Tree to be paid by the guano charterers at Gallao. Ho took advantage of that, and drew the fnano freight, as much of it as paid the disbureeinents, and took off hia ottomry. He said he drew as much of it as would do that — that is the bottomry that incurred at Melbourne, and he took another bottomry in his own name, adding fifty-five per cent, on the amount advanced. He did not say what was the amount of the first bottomry ; and with a por- tion of the money that he drew on account of freight he disbursed the ships Sarawak and Euridioe. These ships were owned by the firm of D. & T. Yai/han, so far as I know. It was not at m^ request that he disbursed those two ships. I was nut at all interested in those ships. I did not request Gaptain Betts to take the second bottomry. I haa con- versations with Messrs. Yaughan concerning this bottomry. The second bottomry was never given up to me. The greater part, if not all of these conversations with Gaptain Betts wore in the presence of Mr. Henry Yaughan ; the substance of them was [objected to.] Gaptain Betts said also that he gave the bottomry bond to Mr. Yaughan. I asked Gap- tain Betts for it. The first time t asked him he said he would keep it for himself ; and then in London I insisted on him giving it to me, and he«aid he gave it to Mr. Yaughan : this was the second bottomry bond that we talked about. [The Attorney General here calls for the bottomry bond under the notice to produce. Bond produced and put in evidence.} I got no account of the freight of the Palm Tree from Gallao ; but from her tonnage she would carry twenty-two hundred tuns oi guano ; the rate of freight was £3 10s. per ton. [Objected to, as witness says he derives his knowledge from the charter party.] I have other means of knowing what the freight came to. Thomas Y aughan told me the freight was three pounds ten shillings per ton. I saw the charter party. The ship went to the United Kingdom : she first went to Queenstown for orders. I was at Queenstown when she arrived there : she was ordered to Lon- don. The charterer usually gives the orders. Messrs Miller and Yaughan enquired of the charterers to find out where she was to go, and they, Messrs. Miller and Yaughan, sent me word that she was to go to London, and I gave the directions accordingly to the ship. I did not want the ship to go to London. [Objected to.l Q. — Do you know how she came to go to London ? Ans. — From wJiat Mr. Yaughan told me (I mean Henry Yaughan) thoy allowetil Gat-ter & Bennett, their agents, fifty pounds to allow the ship to go to Liondon. Lloyd, Low & Go., they were agents under the charterers at London. I knew nothing about this fifty pounds being allowed until afterwards. If I had been consulted I would not have done it or consented to it. [Objected to.] The port of London is more expensive and harder to get to than the general run ot ports ; there is more towage to it, and the other expenses and disbursements are more heavy. The ship went to London. Q. — Do you know where the ship would have gone to had it not been for this fifty pounds. Ans. — [Objected to.] Lloyd, Low & Go., [conversations with Lloyd, Low & Go. objected] told me that she would have discharged at Queenstown or Liverpool as they wanted guano at Queenstown, but that Messrs. Miller & Yaughan wanted her to go to London, and offered fifty pounds to have her go there. I knew that Mr. Yaughan did Something with the ship when she was in London. He said he got his lawyer to put a stopper on tl offtl net>8 lette freig it; I Gapt I sa^K jisawt {He (there was good to En pered anch( befon in ou much I kno sation Isold, ithat s thath did n( sailing Messri ruary Messn havint Mr. \ Yaugl cunvei Ito a le John, letter, Mr. Ui Mossn the pr of it, t not th seen tl letters After with "h carry « forty-8 Pricha would look a: Yaugl paid by the id drew the took off his —that is the bottomry in 'anced. He 1 with a por- isbureed the r the firm of [uest that he ose ships. I I haa con- The second >t all of these 18 on the freight, so that no one could get any of it only what would pay off the Captain and sailors, only themselves. [The letter shown the wit- nera the witnes«>, says is in the hand-writing of Mr. Henry Yaughan : the letter is put in, dated June 19, 1867.] I do not know the amount of her freight inward to London, the guano freight, I never got an account of 1 it ; it ought to have been eight thousand pounds or over. [Objected to.J Captain Bctts came from (Jallao to St. John, and then went to England. d saw him in England. I did not know of his going to England until I isaw him there. 1 did not authorize him to go to England from here. He was not there on my account. Mr. Houry Vaughan was not there on my account. The Palm Tree when she got to England was in very good order; it is rarely you will see a ship in encii good order; I refer to her arrival from Melbourne. After she first went f" Mr. Henry fto England from here she was classed seven years at Lloyd's and cop- aptain Betts inered on an average of twenty-three feet up: eot her extra chains and I asked Cap- „ . „ . . . _ - rould keep it jbefore she left for Melbourne from Liverpool over four thousand pounds ' in outfits (whenever I mention pounds I mean sterling). It does not take much of an outfit to cost three pounds a ton. tShe whs sold in Londo<^. I know it from letters I received from different parties, and from conver sations I had with Mr. Yaughan. Mr. Ynughan told me the siiip was Isold, that he sold her, and his brother, William Yaughan, bid her in , or «..w .»-w ithat she was knocked down to him. Henry Yaughan told me afterwards tys he derives fthat he himself sold her to a friend of his *br ten thousand pounds. Hj ns of knowing i^i^^ ^^^ ^^^^ ^^ ^^^*^ ^^^ friend was. I du not know who is owning and e freight was Isailing her now. In the case of the Palm Tree, Lloyd, Low & Co. were ty. The ship iMessrs. D. & T. Yaughan's agents in London. Q. — In January or Feb- ' ruary 1866, and before the vessel sailed for Melbourne, do you re<>.o!lect Messrs. Miller and .Mossman stating anything witli reference to a letter paving been received from Messre Vaughan. [Objected to.] Ans. — Yes. "r. Miller spoke of such letter atlter I received the letter from Mr. aughan of January 15th, 1866, put in evidence yesterday. 1 had a Icunversation with Mr. Peter Miller, of Miller & Mossman. 'He alluded to a letter that he had received from Messrs. D. & T. Yaughan from St. John. He had the letter in his hands. [Attorney General calls for the letter, or the letterpress copy of the same, under the notices to produce. Mr. Barker objects, that so far as the letter is concerned, it is to Miller, Mossman & Co., just proved to be in their possession; and that m far as the press copy is concerned, it is not shown that he ever had a press copy of it, and if ne had, it would be the letter that would be evidence and not the press copy of it.] I have been in Messrs Yaughan's office and seen them make letter press copies of letters made there, and have seen lettero copied there in the letter press by Mr. Robinson, their clerk After receiving that letter of the 15th January, 1866, 1 had a conversation with Messrs. Miller & Mossman. [Objected to.] I wanted the vessel tu carry coal from Birkenhead to Aden. I could have got the same charter, forty-seven shillings and six pence per ton, that was offered mo before by JPrichard. I did not take it. Mr. Miller said she must go on the voyage that with "the Bhip^T'**'*^* ™*^® *^® "*ost money, for they had Mr. Yaughan's interest to out a stopper V<>ok after as well as mine. He said tnat they had orders from Messrs. ' "Yaughan to get security by policies on the ship, and they must tike thQ it to me, and )ttomry bond the bottomry in evidence.] fto; but froiii lano : the rate in for orders dered to Lon- and Yaughan go, and tney, ^0 to London, not want the low she came (I mean agents, fifty )o., they were )out this fifty ttlted I would ort of London run ot ports ; isbursements know where ounds. Ans. iloyd, Low & lueenstown or lessrs. Miller ounds to have! if largoat freight they could got, so as to make the modt money. I told him the largest and best freight, and least expensive, was a coal freight, as the ship was easiest fitted out for that voyage, and tioy would get the whole freight paid down if they roquired it, and r ny way they would get three-^nrths paid down, and the balance to f ecnre disbursementa. They wanted her to go with passengers to Melbourne. I told them to have nothing to do with passengers, that I always lost mone^ on passen- gers. Mr. John Miller in the meantime came along, and said [omectcd toj he would see about the passenger freight. I urged the coal freight ^ still, and they said they had Messrs. Yaughan's interest to look after, and j they wanted to get the largest freight, and that was a passenger freight. I said there might be more money in passengers, but less for the owners. Adjourned until Friday, June 9, at four o clock, p. m. June 9th, 1871, four o'clock, p. ii. Examination of Mr. Smith resumed. I referred, when I spoke of the Millers who said they had Mr. "V aughanV interest in view, to Mr. John Miller and Mr. Peter Miller; they were both present. They -vanted her to go on the passenger freight, and I wanted her to go on the coal freight at Aden. I said there might be more money in the passenger freight at present^, but when the charges were all paid they would see there was more money in the coal freight. They did agree for the ship to go to Melbourne, and John Miller got up an agreement and submitted it to me: it was the most binding document on me I ever saw. [Objected to.] I declined to sign the apjrcement. They drew up another on better terms, and that was signed. It was with James Kunes & Co. I do not know where that agreement is. I had it in my possession to read it and to sign it. It was last I knew of it left with Baines' lawyer. The ship had extensive outfits for that voy- age. I cannot tell who paid for them. The Messrs. Yaughan did not, so far as I know, pay for them. They never alleged to me that they paid for them. Q. — If they had paid for them, would you have known of it'll [Objected to.] Ans. — I think I would. They never intimated' that they had paid for them ; and it's no use, they never did pay for them. I know within a trifle what the freight was at Melbourne from Liver- pool. [Mr. Barker here asks the witness if he has the knowledge from written statement. The witness says he does not get it solely from writ- 1 ings. Objected to.] Q. — State the amount of freight from Liverpool to Melbourne, so far as you get your information apart from writings. An8. — Seven thousand two hundred and twenty-nine pounds and some shillings sterling, and some additional received afterwards by John Miller from Baines*. Q. — Apart from writings, do you know how this freight was payable — liiow much at Liverpool and how much at Melbourne. Ans. — [Objected by Mr. Barker that a charter has already been spoken of in evidence, and he must derive his information from that, and there- 1 fore cannot now tell the contents of it.] It was payable about one-half] in Liverpool and one half in Melbourne. The charterer told me this, [ and he also told John Miller the same when I was present. [The Attor- ney General asks the witness to look at a paper. Mr. Barker objects.] I Q. — Did yon ever see this before ? [The paper is put in the hands of ^ the witness.] Ana. — Yes, I have seen it often before. I got it from ' James Baines at his own oflice, and at the request of John Miller and ' n y, I told him tal freight, as rould get the y they would isbarsements. told them to ley on passen- Bftid [oDJectcd e coal freight ook after, and cnger freight. or the owners. nith resumed. dnVaughanV er; they were freight, and I lero might be r» the charges i coal freight. Miller got up ing document le agreement. ;ned. It was cement is. I Mi 1 knew of for that voy- jlian did not, lie that they L have known er intimated pay for them. ! from Liver- jwledge from jly fromwrit- 1 Liverpool to om writings, ds and some y John Miller V this freight ,t Melbourne. ' been spoken it, and there- )Out one-half told me this, [The Attor- rker objects.] the hands of '. got it from n JVIiller and yaclf. [Tlio Attorney General here tentL-rs tlic ]>Apcr in evidence us le freight list of the Palm Tree from Liverpool to Melbourne. Mr. arker objects that there is no ptoof that it is the freight list, and if it rere, that the plaintiffs could in no way bo bound by it, and that it irrelavent.] Q. — What did you and Miller aak Uainca for when yon rjt that paper? Ant. [Objected to, for the reiison that convcreationB ith witness and Baines are inadmissablo, and that ihe question is too ding.] We asked him for tbo account of tlio outward freight. Wo t an account of the passage money as well aa passenger freight. [The iper is again put in the hands of the witness, and he is asked if it eon- ins the freight list and the passenger freight as \^el!.] The witness says is is the freight list exclusive of the passenger freight. The ship when went out suffered a loss. 1 had some insurance upon her, (£18,000) irteen thousand pounds. There was due me on it, by the average tement, (£1500) fifteen hundred pounds. [Objected to.] I had a nversation, chiefly with Thomas Yaughan, about the insurance. When received the papers about the insurance he told me of it, and the ount due me was talked over. He said Miller had written out for wer to collect it, and he wanted me to send Miller a power of attor- y to collect the insurance, but I said I would not give it, but that I lid give one to him, Thomas Vaughan or David Vanghan, and I gave ^c to Thomas Vaughan. [Tiie Attorney General hero called for the twer of attorney from James Smith to Thomas V aughan to be pro- ced, under the notice to produce, which power of attorney he says as to enable him to collect insurance upon the Palm Tree. Not pro- iced.] This power of attorney was to collect a portion of the insnr- ice coming to me from the loss. He was going home, and I had every nfidence in him, and I gave him the power of attorney to collect the surance according to the average statement. Mr. Vaughan never paid any of these moneys collected from these insurances. Q. — Will you te what conversation you had with Thomas Vaughan about the in- ranee and giving the power of attorney before you gave it ? Ana. — r. Vaughan sent for me to go and look at the insurance papers. I went his office, the office of Messrs. D. & T. Vaughan ; he said to me Mr. iller is our agent, and has sent out for power to collect the insurance the Palm Tree, as per the average statement. The power he asked r was power to collect the insurance coming to me. Then I told him hat I have stated before, that I uould not give the power to Miller, lit I would give it to him. Mr. Vaughan said he would collect it and anything he could. The bottomry was not covered by the insurance, was first offered the coal freight by Prichard late in the autumn of ghteen hundred and sixty-five. The time I received the first offer for le from Captain Lindsay was about twenty days afler he arrived at iverpool from here : the next offer I had for the ship was from the Ab' deen man — was about two months after that — I think about three onths after it. The offer from Major was about December, in the year ghteen hundred and sixty-five. The next offer was a little before she was d on for Melbourne. This would bo in April, eighteen hundred and sixty :. Q. — Why did you not sell the ship to Lindsay. [Objected.] Ana. ■It was because Miller said to rae, if I would take that he could get me purchaser for her with whom there would be no trouble about the pay ; J 10 Exai The I re at I ortg Dav ney T itions coi dSii lis is and ho added that a person would be a fool to take that i I'ice, knowin that ships would rise in the spring. Q. — What would nave been tlitj gross freiffht for coals to Aden ? Am — [Objected to.] About betweer; ve and six thousand pounds. The outfits for the coal voyage would no have been much — nothing compared with the voyage to Melbourne ^^^ When I gave Messrs. Vaughan's a mortgage upon the sfiip I had not iia^lfi^gh any settlement with them ; I never had a settlement with them to thfi^^ ^j present day. The reason there was no settlement before I gave thtm,^ mortgage was, the transaction was not done ; and when the time came t(2i>ty I settle we will do, they said, what is right. I mean when I say the trans S.g^gj action was not done — when the ship would go home she would be sold o: go on a voyage. I never received any moneys from the Messrs. Vanghai than what is covered by the securities to which I have referred. Th( two mortgages on property and the one on the ship, nor as much a is included in the total mortgage on the ship. That is as mucl as is Included in all the mortgages. I was about commencing building the ship when I got the first moneys ; and all the moneyf I got from Messrs. D. & T. Vanghan were with reference to tmrn^jQi. . ship ; it all went into the ship, and it was expected it would all come ou; )o(jg/ of the ship. [Last part of the answer objected to.] When I eay allwai eanb to oome out of the ship, I mean that the ship in sailing or being sole ^ ^ j would pay all the moneys 1 received from Messrs. Vaughan. All tbi gj|p ^ advances from Messrs. D. & T. Vanghan were in cash or outfits, anc j^e w< charged by them in the way they have done. They bought the outfit t y out here for her. I never saw an invoice from them in my life, nor bill? hetra of lading. I saw an invoice of some things for the ship in Mr. Bobin ^ ^l^^ son's hands, but I never had one of them in my hands. I had no mean^ ^q^ of knowing, apart from what they told me as to what was the value o! ^q qj., the goods I got from them. The goods were got in this way : I woulc ^jj ^.jj give them a memorandum of what I required, and they would ship then gg^ n, out. The cash I got from them would be used in purchasing timber anc j^j.^^ , paying for labor. ^L {^ , Adjourned till Monday, 26th June, at two o'clock, p. m. aventy flg to c June 26th, 1871, two o'clock, p. M. )on ai Mot pursuant to adjournment. Present— Mr. Forbes, on the part o |^"^!! the plaintiifs. largec on 'a Q( Mr. Forbes says — ^That inasmuch as the defendants are not here t j^ctlajn call any more testimony, or go on with the examination of any mor j^gj. ^ witnesses, or put in any more testimony, he does not call any more wit ^^fgrQ nesses, and closes here, and demands that all the evidence be here closed ^^"^ ' [I informed Mr. Forbes that Mr. Morrison had called upon me in thi ugust course of the morning, and said that he had seen Mr. Barker, and the] g^^^ had agreed to postpone the further meeting, for the purpose of takin ^^^^ testimony, until Monday next, at two o'clock, p. m.] ^Qf„Q "^owiuj July 3d, 1871, two-and-a-half o'clock, p. m. Biarfa^ Present— Mr. Barker and Mr. Forbes for the plaintiflfe ; the Attornem^ ^^ General for the defendants. - >i iLii'iummmiLn 17 I Dxaniiuation of James Smith resumed. ' The money 'was not all gotten in a lump sum, but from time to time, [ required it. The Queen's square mortgage was the first mortgage ^t I gave. This paper is the mortgage of the Queeu street property, ortgage put in, dated 13th December, 1804, from James Smith and wife David Vaughan, Thomas Vaughan, Henry Vanghan, and Simoon nghan, for £2,000, payable in three years, interest half yearly.] 1 re this mortgage for money to build a ship — the ship called the Palm ee. At the time I gave the mortgagu upon the Prince Wm. street pro- o ii..i« v»a^v- "Srty I did not receive amount for which the mortgage'was given ; nor nad ^^7\ K *r*"^! received that amount before. My conversations, when I received the 'ould ^sold o:, ^^^y ^^ ^^ mortgages, were chiefly with Thomas Vaughan. The essrs. Vaughai Q^gage on the Queen street property ; paid oflF, with all interest upon referred, ilii f know this of nay own knowledge. My dealings in all these trans* or as much a ^^^^^ ^ere ^jth » D. & T. Vaughan." The firm of D. «fc T. Vaughan IS as mucl ^ composed of David Vaughan, Thomas Vanghan, Henry Vaughan, ^ ^lu'!!™^ "°!.°! '*^ Simeon Vanghan. [Paper put in witness' hands, and he then says.] is is an account rendered to me by Messrs. D. & T. Vaughan. [Ac- >unt put in.] In this account 1 am charged with certain invoices of ill the erence money! to the ght lid all come oui ,Q^]g^ j ^^j Ij^^^q ggg^ ^^^ invoices ; but I never got any of them. I m I eajr all was g^^^ by saying that I may have seen them, that I may have seen them at f or being sole <t,innAa crivon mo nn p . & T. Vaughan's ofiice. The gross amounts were sometimes given me on ghan. All tn( g|jp ^^ paper. 1 have no means of knowing that the amounts charged or outnts, mic j^q ^^^^ ^.^0 amounts of the invoices. I had no transactions with D. the outtitiM T. Vaughan in 1864 and 1S66, except what are stated in my evidence. 'y. "'^ ""^ Vj: he transactions in this account, covering a period from 1864 to 1866, I in Mr. Kobm g wholly on account of the PaUm Tree. The money was received upon [ had no meani ^jg^g ^iven upon D. & T. Vaughan, as it was required— I mean my as the value o. ^^ order. During the time to which I have referred, I gave no other way : 1 woul(:||an the two mortgages upon real estate, and the one on the ship ; and lese are the three referred to on the credit side of the account. The arge of two-and-one-half per cent, commission on forty thousand dol- rs, is the excessive interest to which I have referred. The charge of enty-five days interest on sterling remittances on $11,647.85, amount- y to one hundred and forty-three dollars and fifty-eight cents, is a charge on and about which I know nothing. The insurance charged in the count, as upon ship Palm Tree, of 29th April, 1865, £290 sterling is arged twice — once here in this account, and then in Miller & Moss- an 8 acconnt. Thomas Vaughan told me the insurance was effected in igland. 1 never sa^r the policies. It is charged improperly in either iller & Mossman's account, or in D. & T. vaughan's account. The arge, dated August 18, 1864, duties per Eleanor, $30.36 ; I have no cans of knowing that this is a correct charge : the charge, dated ugust 23d, 1864, duties per Princess Moyal, $156.40 ; I have no meana ' knowing if this is a correct change ; I have no means of knowing the charge of freight per Eleanor, $78.40, is correct: the arge of top wharfage, $4.14, September 3rd ; I have no means of owing if it is correct : September 7th, 1864^ there is a charge for top larfage for Sea Gem, $1.84; I have no means of knowing whether that correct or not : the charge or September 7th, 1864, freight for Prin- •s Boyal, $92.97 ; 1 have no means of kno^r ing if this is correct or not : ouid ship thenl ring timber ancJ o'clock, p. M. on the part 01 ire not here t| n of any morj any more witf be here close(i pon me in rker, and thej rpose of takinj o'clock, p. M. the Attorned I 16 tho charge of 20th September per Eleanor an'tl Princess Royoi^ |3,264 48, invoice of bundriee ; I have no meanft of knowing if this clip-ge is correct : the charge of 20th vSeptetnber, 1864, per Sea Gem, invoice ot sandries, $48.14 ; I have no means of knowiog if this charge is correct;, the charge of 2l8t September, 1864, freight per Sea Gem, $377 ; 1 ha fenr^ of this charge : the charge of March 20th, 1866, invoice of sundries pei Kalos; I have no means of knowing if this charge is correct or not— thi char^ amounts to $6.767.44 : the charge of April 19th, 1865, the dutj per KaloB, $220.66 ; I have no means of knowinc^ whether this charge i correct or not : the charge of 26th April, 1865, treight per Kalos, $20 70 ; I have no means of knowing whether this is correct or not charge of May 9th, 1865, four chaldrons of coal, $22; I know we go coal, but I don't know the particulars : the charge of 24th June, 1865 jje h canvas per bill, $138.79 ; I know nothing of tne correctness of thi jefon charge : the charge of 28th June, $30.67, for canvas ; I know nothini ad tl of the correctness of this charge. There was no settlement before 1 gay ould the mortgage on the ship. At the time I gave the mortgage on the shi] (ras a I had not received from D. & T. Vaughan the sum of $68,000 in nione; old a or in money's worth. Messrs. D. & T. Vaughan went into possession c q gell the Prince William Street property, and have been receiving the rent n. j for it since the first day of May, 1868. The Prince William Street pr( pom ] perty it the property for which this suit is brought to get a decree of sali isbui The rents are as follows : In May, 1868, the tenants were paying as foAiiHin lows — in all the sum of three hundred and seventy pounds per yeaiftonej This was the sum for which it was then rented. Kr it, Adjoarned until Tuesday, fourth July, 1871, at three o'clock, p. M.^etts kcd -4 15 Koyounds per yes e o'clock, p. M. joney, or any part of it, from Messrs. Vaughan. I asked Henry Vaughan k it, and he said they had no money. He said I might see Captain leits about it, and he might give it to me. I saw Captain Betts, and pkcd him for it, and he declined to pay the money. T went Into Lloyd, ? t: 20 Low & Co., and nskcd Lloyd for tlio uioiiuy to retire this bill. He said he got express orders from Mr. Vauffhan to give me no money [conversations with Lloyd objected to by Mr. Barker], and he gave me none. I then wrote to Lamport t from them ositiveiy that ything except ow & Co. ne- money from ; of the Palm ler. I o'clock, p. M. ongaget^ fretting material all through the winter. I knew when I laid the keel of what tonnage the vessel wonld be within a few tons. I knew what tonnage she was to be when I drafted her. She was drafted in the autumn of 1863. I knew then of about what tonnage she would be, and 1 knew tlicn that her tonnage would be about what she ultimately mea- sured, some fifteen or sixteen hundred tons. I then knew about what I she would cost. I ex])ectcd she would then cost about nine pounds cur- frency a ton, for hull, masts and spars. Although I knew oi the size of the vessel, and the probable cost of lier, I did not mention those things to Messrs. Vaughan when I applied for the money. The first money I got was in January 1S04. I did, before January 1864, communicate to Messrs. Vaughan that I was drafting a vessel, an(i the size of her. I don't remember that I told them the probable cost. I had money of my own to put into th.is vessel. I cannot remember how much. I know my son put in seven hundred pouuds : that was in addition to what I put in myself. 1 don't think there was a thousand pounds of my own money put into the vessel. I think there were nine hundred pounds of my own money put into her, in addition to the seven hundred pounds put into her by my son. I kept books at that time — my son kept the books ; I last saw them at my house on King square. Robert was assisting me at the ship-yard. It cost a large sum of money fitting up the place as a ship-yard, and put- ting up wharves there. I cannot tell exactly how much it cost; I did not charge my memory particularly with it ; it wonld be as much as one ixtv-eiffht S thousand pounds currency. Robert kept an account at the time. He is p-ood as ever IP^''^'.^ li^'i"n ^•'^'^ ™^' ^ ^^^^ him'at Woodstock when I was last there. He & . . — , * was living with me at the time I built the ship. I then kept an account of the expenses of the yard, and every thliig. The ship cost, when she was ready tor sea, about eighteen or nineteen thousand pounds currency : this includes what was expended upon the yard. My books would tell the cost of every thing. I fitted up the place there with the intention |of carrying on ship-bnilding 1 built two wharves, a shed with a steam boiler in it, and a blacksmith shop, with tools in it. The yard was till July 8th, 'clock, A. M. Eim sij er of 1864. I [ been used as twenty-three ipplied to the It was with "ee. I applied d for the loan mentioned. I sel. I did not lid not, to my to them what jf no conversa- but after they e vessel made, i 5 talked about t it was better money there jded. 1 never ughan, to con- t one thousand lad contracted thousand tons, the burthen of | on the ship in ay. We were jfitted up with every requisite in it, to carry on ship-building there ; but il had the tools and boiler before. I don't cliarge my own time in [estimating the cost of the vessel. There was nothing put into the vessel outside of what I got from Messrs. Vaughan, except the nine hundred pounds of my own in money or materials, and the seven hundred pounds of my son, Mr. Vaughan, before I began building the vessel at all, agreed with me to advance all the money 1 might require in the building the said vessel, 1 to give them collateral security therefor, which se- curity they got. He did not, in the first instance, agree with me simply to advance me five thousand pounds upon the Prince William street property. It was not then understood that that was all that I was to get from him. The first security was given in June 1864. The securi- ties were given as follows: first, the mortgage on the Prino William street property ; second, the mortgage on the Queen street property ; and third, the mortgage on the vessel ; besides this, I gave them some trans- er of the yard. Mr. Vaughan agreed to advance mo what money I night require to build the ship ; and I don't recollect that they ever "entioned any limit. It was not agreed when this five thousand pounds as advanced upon the Prince William street property, that it was all 92 be was to advance me. After the five thousand pounds wore expended, I came and wanted money to finish the ship. I don't think I then made the application to Henry Yaughan. I generally made t!ie applications i to Thomas "Vaughan. t would not swear that 1 did not apply to Henry Vauglian. I may have applied to Henry Vaughan for a loan of three ' thousand pounds on the Queen square property, stating to him that it cost me forty.-two one hundred pound notes. The conversation passed, but I don't know whether it was with Henry or Thomas Vaughan, in which they said they would only loan me two thousand pounds on the Queen street property, as they never advanced more than fifty per cent, upon pro- perty. I do not know that when this conversation took place that Mr. Tho- mas Vaughan was in England. The two thousand pounds were advanced, and I gave the mortgage : it was a separate atid distinct transaction from the five thousand pounds mortgage. When I arranged for the money in the first instance, 1 heard nothing about the rate of interest. I presumed the rate would be six per cent. In the first instance there was nothing said about the security, further than this. Mr. Vaughan spoke of se- curity on the Queen square property ; but when I first applied for the ; money, there was nothing said al)out the security. The agreement was; made before I got any money from them, that I was to give security on the Queen square and the Prince William street properties; and they! said they never advanced more than fifty per cent, upon properties. There was nothing further mentioned in regard to securities, than upon i those two properties. After the two thousand pounds were expended, Ii applied for more money from Mr. Vaughan, and he declined to advance I me any more, unless I paid him eight and one-half per cent, for it. 11 said, surely you won't ask me more than six per cent, for it. I did not! tell him at that time that he had agreed to advance it to me at six per- cent. I told him at that time that the vessel was not finished, and that I I wanted the money to go on finishing the vessel. That was well under- stood. Question — If Mr. Vaughau had originally agreed to advance you i all the moneys that you might require in the construction of this vessel, 5| why did you not then hold him to his agreement, and not state to himi' that you did not want two accounts, or apply to other parties for money ! for that purpose? Answer — There was no agreement but a verbal one about the money, and the money being expended on the vessel, he I wanted further security, and security was given on the ship and yardj for the further advances. Question — D'd you at that time when you ap-j plied to him for a further loan, make any mention of this verbal agree- ment ? Answer — No ; he never refused to advance the money. Question — Then why did you say anything to hira about applying to other parties] for the money. Answer — If he or they did not do it, I would have toj apply to other parties for it, as 1 did not wish to have two accounts, and if they fell short in advancing money the ship would j have to be finished, and I would have to get money from other parties. Mr. Vanghan did agree then to advance me more money. He wanted! eight and one-half per cent. I did not agree to pay eight and one-half j per cent. I never agreed to pay the extra 2^^ per cent., either as com- mission or as interest. I said, when we come to settle, yon will surely' do what is right, and not charge the two and one-half per cent, extra, i This conversation was with Thomas Vaughan. He also spoke of further a'| 23 re expended, I then made applications i ply to Henry loan of three ' im that it cost passed, but I lan, in which n the Queen ;nt. upon pro- thatMr.Tho- 3re advanced, nsaction from the money in I presumed | 1 was nothing spoke of se- •plied for the rreement was e security on cf* ; and they in properties, es, than upon e expended, I ed to advance sent, for it. I it. I did not me at six per hed, and that IB well under- advance you if this vessel, li state to him les for money a verbal one le vessel, he lip and yard Iwheu you ap- vcrbal agree- . Question — other parties lould have to have two ship would (ther parties. He wanted and one-half Ither aB corn- will surely cent, extra, ike of further curity, and I gave the further security upon the yard. Tliis convorsa- on led to the further security being given npon the yard. [This is ob- cted to by Mr. King.] This memoraodum, " Messrs. D. &T. Vaughan's count, Ibt July, 1865," is in my hand writing upon the account ron- ered me by Messrs. D. & T. Yaughan, and was put there when I re- ived the account. The account was handed to me by my son Robert. looked over the account. 1 did raise objejtions to the account to Mr. lomatj V'aiiirhun before he went home to England. I don't recollect y other person being present I objected to the commission of 2^ r cent. I did, after the account was rendered to me, make objections some of the items to Thomas Vaughan. I did not examine this ac- unt with my own accounts, so as to make any great objection to it, eferring to wait until we settled up the whole accounts. After this count was rendered my son received money. I presume it was the lance of $639.29 due me, as appeared by the accounts. Q. — On the elfth day of July, 1865, did you not receive from D. & T. Vaughan e sum -^f four hundred and eighty-nine dollars and twenty-nine cents? s. — I did not personally, myeielf. I have no recollection of getting it, rsonally myself. Q. — Will you swear positively that yon did not, on at day, get that sum of money ? Ana. — I will not swear positively her for or against, but I have no recollection of getting it myself. Q. On the 27th July, 1864, did you not personally get the sum of five usand dollars from Messrs. D. & T. Vaughan ? Ans. — No. I have recollection of that. 1 have an indistinct recollection of getting mo- y myself once : this was to pay a note of Jewett's, and I am not quite e that I got it myself. Q. — On the sixth day of October, 1864, did u not personally get two thousand dollars from Messrs. D. & T. ughan ? Ans. — I have no recollection of any such thing. I have no loUection of ever getting from Messrs. D. & T. Vaughan any money sonally, except the money to pay the Jewett note, to which 1 have [erred, and I am not sure about that. I do not know whether or not balance of $639.29 was ]»aid me : my son Robert would know all ut that. I have doubts about getting the balance referred to. My kept accounts of all the monies I received : the accounts were kept my books by my son Robert. I had access to the books. I could e told what money I had received by examining my books, if the ks had been correct. 1 cannot tell from my books or from my memo- what monies I received from Messrs. Vaughan. My books may be ong, altliough I presume they are correct. I kept a cash book, a day k and ledger. I don't exactly know where the books are now. I sume they are at Woodstock at ray son's store. I thought the books uld be of no more use to me. I never compared this account render- me by Messrs. JD. & T. Vaughan with ray books. The ship took a go of lumber from here for Liverpool. I, when she sailed, gave Messrs. & T. Vanghan an order for the freight npon Messrs. Farnworth & dine ; the order was made payable to them — the Messrs. D. & T. ughan. Q. — I see that you say in year answer that you say you aatho- d Messrs. Miller & Mossman to receive the freight as agents for D. &T. ghan, is that correct ? Ans. — I must have misunderstood the an- r if I said that : what I did was to authorize Messrs. D. &T. Vaughan a.feccive the freight. I never received a penny piece of the freight of 21 the Palm Tree at any ilino poi'sonally from D. & T. Vanglian or any other person. The order tor the freight woh given, I think, a day or tw(^ before the vessel sailed from here. I don't recollect positively the da}j she sailed from here. Q. — Did you not, on or about the time the shif sailed from here, and the order for freight was given D. given on tin ! two thousaiK I gave for tli ds currency re them to me oij )1, for v^hich ^.— If this waj it any time rt essel ? Ans.-] 1 to thepresen jight from her at Liverpoo lixteen shilling' it of Messrs. I d. as slie migl & T. Vaugha it to England t ^._ Was bween yon an; not sail on -There was ement made January, I861 , or at any oth out of Englan! rtgage upon tl they could get tlieir money. He was acting fur an estate. She could it go on a voyage, he said ; and they could get their interest in the )ck as well as out of it. The mortgage on the ship was not due at that ime. Q. — Why did you not send the vessel on this voyage, under this liarter ? An». — I wanted to fell the vessel if I could. Q. — Why did lU apply to Messrs. D. & T. Vaughan in this country for liberty to send lis vessel on a voyage ? Atis. — 1 was deceived hy Mr. Miller in making le sale; and I applied to them because I did not wish to do anything ,th the vessel without their consent. I was in England nearly a year ing to sell the vessel, or do something with her. Mr. Henry Vaughan is tliere most of the time too. The best offer to buy the ship was from an by the name of Lindsay ; he offered me nine pounds a ton sterling her. I refused this offer. She was a very expensively built vessel ; good a one as I know how to build. 1 don't tliink there ever was a |tter one built in this country. The vessel, from failure of contractors, cost more than she otherwise would have cost. Mr. Henry Vaughan not urge me to take Major's offer for the ship. M. Vaughan was not len Major made the offer confined to his house with sickness. JAdjourned until Monday, the tenth day of July, 1871, at cloven ilock. ; •' . • . ■ • 1 i: I'iV/.,' Fuly 10th, 1871, eleven o'clock, a. m. Present as before. ?be cross-examination of James Smith resutned. did communicate Major's offer to Mr. Vaughan. Q. — Did not Mr. ^nry Vaughan, when you eommunicated Major's offer to him of eight kinds ten, strongly urge you to accept the offer, and tell you on no pouut to lose sight of him until you had secured the price offered by a, or words to that effect ? Ana. — Ho did not. He used no such Ian* ige as that with reference to any of the offers communicated to him. 10 pounds was the highest offer I got ; I was asking ten. I did not kh to sell for less than ten pounds per ton ; ten pounds per ton was pound !Jore than the market rate, as appears by the offers made. I " t, * ectl W *^*® vessel there, and did not sell her, under the impression that the 1 yon ^^P jHrket would improve. That was the reason I did not accept the offer ide me of nine pounds per ton ; still I would not have sold her for less Ln ten pounds per ton, as I had an expectation of sailing her, and Rights were good. Mr. Henry Vaughan did prevent me from selling' vessel. Q. — In what way ? Ans. — He would not take Major's pay. It is the only way he interfered with mo in that case. Q. — Was that all kt prevented you selling to Major ? Ans. — That was the chief reason. wor's offer was only eight pounds ten. Q. — If Major's offer was onlv »ht ' . - . ^ . - right and pow send her on vver to sell hei age? ^.-W > Vanghans, i ority over thj then — not wh ide between ytaj^j. p^^^^jg ^^^^ ^^^ y^^ i^^^ detofrained"^ not to sell for anything less fcrterence. v-Mq ^^^^ pounds a ton, how do you undertake to swear that Mr. Vau^ian'a Lenry ^JBisal to take Major's payments was the chief reason why you did not "°^ P ^ • to Major? Ans. — Ships were falling. I could not do as I wished ved, aoo ^Ho, because I wanted to get the account closed, and I was willing to nee, 1 1*^ j^ ■'ifice for the sake of having it done ; and as I could not get putting ' ^^ ^'ffer anM^'^ * ^^^^ freight, I was obliged to get doing something. Q. — ^Thon gooQ o |B had concluded at the time Major"s offer was made to take eight |n was 1 , T j^nds ten per ton for the ship? Am. — Ye?, as I was dtuattd. s; ir ' Q. — Had you any ott'ere after Majored 'il Ann. — Yes ; tlioro were two- one at seven pounds fifteen per ton, and one at a less rate. Q. — Will you swear that at any time in England Mr. Hcsnry Vanghan refused to take Major's paper, or any of the other^person's paper, from whom oiFers . were made ? Ana. — He did, for the reason I have stated before. Q. — ! When Major made you the oflfbr, was Mr. Vaughan's mortgage on the ship duo ? Ans. — I do not recollect exactly when Major's offer was made, but it was made before Christmas, I think. Q. — When did Mr. Henr}- Vanghan authorize you to sell his mortgage interest in the ship ? Ans, — He never did authorize me, and I never did sell it. Q. — Tlien when you wereoflfering to sell, you were only ofteringto sell your own interest in the ship ? Ans. — I was offering to sell the whole ship — the interest of all parties, both my own and Mr. Vaughan's interest. Q. — What prevented you from selling to Major your interest in the vessel, and leaving Mr. Vaughan to look out for himself ? Ana. — There was nothinj; ^ to prevent me selling my interest, of course. Q. — Do you mean to say ; that Mr. Henry Vaughan ever prevented you from selling your interest in that ship ? Ana. — He did in this way — that is, would not allow mt to sell the ship then, that would have sold my interest? Q. — Howlonj;, after the 20th December, 1865, did the vessel remain in England ? Ans. — She sailed on the thirteenth April following, Q. — When did j^ou re ceive the letter of the fifteenth January, 1866 ? Ana. — In February fol- lowing. James Baines & Co. paid the vessel's expenses while she re mained in Liverpool, after her inward disbursements were paid ; thev paid as my agents. I don't think they paid it at my request — they paid \ it voluntarily. Mr. Vaughan did not pay it. There was a ship keeper* in charge of the ship ; he was generally on board at night. Mr. Miller^ appointed the ship Keeper untu Baines took her out of the dock ; thecl they appointed their own ship keeper. Baines took her out of thcj docK about the first of March, 1866. Mr. Vaughan was never! in the possession of the ship, to my knowledge, officially, from thtl time the vessel arrived in England until she sailed for Me'bournd Q. — Who was in possession of the vessel from the time of herj arrival in Liverpool up to the time that Baines' took her out of th(j dock? Ana.—l consider she was in my possession, under the control ol these people. Miller, Mossman & Co. and Mr. Vaughan. It appeared when 1 came to do anything I was subject to them. Q. — When you \xii the term coming to do anything, what do you mean ? Ans. — I meaq selling or chartering her. Q. — Was it after yon received the letter froii D. & T. Vaughan of the 15th January, 1866, that the arrangement wj made w:th Baines & Co. [Objected to by Attorney General.]. Ans. Yes. Q. — You wanted Messrs. Vaughan to furnish the outfits for tb| vovage, did you not ? Ana. — No, not after she got to England. Q. What did tlie outfits cost when she sailed for Melbourne? Ans. — II amounted to something about six thousand pounds, according to the! statements ; including the expenses for passengers, about four thousanf pounds were spent upon the ship herself: the balance was for provision and other things consequent upon carrying passengers. These outfilj were supplied to the amount of about the six thousand pounds, pursuar to an agreement made between me and Baines «fe Co. [These procee ings with Baines & Co. are objected to by the Attorney General,] Tii*' L^ 97 [urii^iiial uf tiiib a^rcuiiietit was never, to my kiiowlcd^o, in tliid country. never saw it hero. I gave no security to Baines & Co. for theBO out- its, further than they were to take it out of tlie outward frciglit to Mel- )ourno, Baines guaranteeing more than seven thousand pounds out. I rave him a further security. I gave him a second mortgage on the Bhip to secure against any loss if anything transpired. [Objected to.] Adjourbcd until tiio 19th July, at eleven o'clock, a. m. I 1 Met pursuant to adjournment n the part of the plaintiffs, and Attorney General on part of defendants. Cros8-exan)inHtion of James Smith resumed. The freight out to Mol- ourne was seven thousand two hundred and twenty-nine pounds, and len Mr. Miller irot something besides ; she was chartered out, and then The above is tlie freight out to Melbourne alone. I on't know what the freight from the Ciiinclia Islands Jiome was. I now what it should have been. She was away from England about )urteen months. Aden is a coaling station. I do not know much about business of Aden. The expenses of outfitting the vessel to go to 10 ro were two— to. ^.-Will han refused to m whom offers before. Q. — ortgago on the )lier was made, did Mr. Henry le ship ? Ans. ^.— Then when lur own interest p — the interest St. ^.-What the vessel, and 3re was nothinj: _ ^ )n mean to say Jitl|g."a"t) home ig your interest d not allow mt ngland ? Ans? lien did you re ;n February foi- ls while she re ;re paid ; thev uest — they paid s a ship keeper ht. Mr. Miller the dock ; then I her out of the an was never csially, from thi for Me'bournc e time of her : her out of th( ar the control o a. It appeare -When you m Ans. — I mea the letter froi: rrangement w neral.J. Ans. e outfits for thi England. Q nine ? Ans. — cording to thei It fouvthousam ras for provisio These outfi jonnds, pursua [These proce General.] 1 July 19th, 1871. Present — Messrs. Barker and Forbes den would not bo as much as to fit her out to sro to Melbourne. The ifferenco would be in going toMelbournc with emigrants- you have to )me under the Government officer and put on what he required. Q. — That would it have cost to have fitted the ship out to go to Aden. ns. — I do not know. It would not have cost three thousand pounds ; it, suppose, to have fitted her out well, would have cost £2,600. mean to include coppering. It would cost no UiOre to class a vessel in ing to one place than it would in going to another ; but the govern- ent inspector required a great deal more than was necessary to class r. Q. — What more did the vessel require under the government in- ection than Lloyds required. Ans. — She required more sails — I cannot how many more ; more water closets ; I recollect of six extra ones. I not charge my mind with it. 1 cannot say exactly what the cost would f putting in the extra water closets ; they would cost in all a great deal or fifty pounds. I can't say they would cost more than one hundj^ed unds. They required more boats and more life-boats ; I cannot say w many more. I cannot say, without the bills, what the extra cost of ing this vessel out under government inspection would bo. The char- I was offered to Aden was forty-seven shillings and sixpence per ton. 3 was calculated to carry twenty-two hundred tons at that rate. Mr. ughan did not pay for the outfits furnished by Baines & Co. I did t pay for them. They came out of the ship — they were charged to the ip. The vessel got into difficulty going out to Melbourne. The in- ranco paid the loss, or would have paid it, if it had been properly ked after ; part of it was collected, and part of it was not. Q. — Did the whole difficulty connected with this vessel arise from Baines & not having paid for the outfits furnished to the vessel and from the haps and accidents that befel the vessel going out to Melbourne. • — No. Q. — What are the other causes of diflttculty connected with vessel, besides the other two that 1 have mentioned? Ans.— B&d nagement was the chief cause. Q. — Whose bad management do you ,4 [ 111 28 refer to f Ans. — The bad tnanagemcnt of the Captain was one cause. Ibelieve the agents of the ship in Mclbonrnedid not do right The in- surance of the ship was not looked after properly. The Messrs. Baincs' appointed Oaptain Griffiths, with the approval of Mr. Thomas Vaughan. I had nothing to do with the appointment of Captain Griffiths as master' of the ship. 1 knew of his appointment, and consented to it. Q.— When you speak of the insurance not being properly looked after, do you allude to Messrs. Vaughan's insurance? Ana. — No; that was looked after. I mean my portion of the insurance was not looked after in proper time. Q. — Why did you not collect your portion of the insurance : Ans. — I was not there at the time to collect it, and it was n(*t properly looked after. Mr. Henry Vaughan afterwards gave me the papers about the insurance, but it was too late. Things turned round so, tnat it wa> troublesome to collect, and 1 did not collect it. I did not try to collect it; but a person — William Strang, of London — tried to collect it for me. I was here in Saint John when I heard of the bottomry bond belli;, put upon the vessel. When Captain Dotta went out there, lie went out as I expected, as my agent and Messrs. Vaiiojiinn'b agent, to protect tin ship. Q. — When (ild yon first learn from Captain Betts what he hac done concerning the vessel at Callao? Ans. — By letters from him frons there. Q. — Then, when you speak of what took place at Callao, yoi speak from what you learned from these letters, do yon not ? Ans.— learned from these letters what he said he did there ; but after that I a.» certained a great dial more. Q. — When and whore did you ascertaii the great deal more of what took place at Callao, outside of what yo; learned from the letters? Ans.—i ascertained it in London, after th vessel arrived in London. She arrived there in July 1867, 1 think. Q.- Have you not over and over again stated that you entirely approved ( what Captain Betts did concerning the vessel at Callao. Ans. — When was misled I did. After I got correct information I did not. I was mislCj by Captain Betts' letters, and by Captain Betts and by Henry Vaughat The wliole of the officials that had any connection with the ship misle '; me; Mr. John Miller also misled me. These were the chief ones. Q.- Was there any one else who misled you ? Ans. — Yes ; even the agent j of the ship misled me. Q. — Any one else? Ans. — If the answers have given you upon this point do not do you, you will be a long timj before you get another. Q. — In what way did Captain Betts mislea^ you ? Ans. — He did not tell me the truth as to what took place. Ill took a bottor\ry bond upon the ship in a way that I thought he nevel would have done. Q. — Did he not tell you exactly how he had take the bottomry ? Ans. — Not exactly. Q. — What did he misstate to ycl in reference to the bottomry ? Ans. — He said to i.ie that he must m say too much about the thing [Mr. Barker here objucts that the witne is not answering the question put to him], as he would have to give ev dence in the matter. He told me this in London. Q. — What did Cai tain Betts misstate to you in reference to the bottomry bond. Ans.- He said he took the bottomry bond in Callao. ahd at fifty -five per ceij premium, and that he appropriated the money he drew to taking off tlj bottomry, and the rest of the money he gave to the Captain of the ^af wak to pay bills. Q. — What otltier misstatement did Captain Befi| xvLsko to yon that misled yon ? Ans. — He led rac in one place to b i 't » 33 was ono cause, riehr. The in Mossra. Baincs' jmas \aughan. iffiths as master I'd to it. Q.— :ed after, do you n ^and-writin^. Tho signatures to all of those papora are by mo and iy hand-writing. The next paper is marked Nl, and the body of it i« In my hand-writing; so is the signature, but the signature to tho writing )n the back is in tho hnnd-writing of my eon Robert. 01 : tho signn- [ure to it is in my hand-writing, tiie body of it is in Uobcrt's Iiand-writ- ig, an tho signature to tho writing on the back of it is Robert's. PI all in my writing, both body and signature. Ql is all in my hand- lat was looKed Writing, both signnturo and body ; tho signature to tho writing on tho «2, ack is Robert's. Rl : both the body and signature of it are in my and-writing. SI : the signature is mine, the body of it was written y Robert, and the signature on the back of it is by Robert. Tl : the gnature is mine, the body of it was written by Robert, and tho signa- on the back of it is by Robert. Ul : the signature is mine, the ody of it was written by Robert, and the signature on the back of it is y Robert. VI : the signature is mine, tho body was written by Rob- rt; tho signature on the back was written by Robert. Wl, XI, Tl, nd Zl, are, both body nnd signature, in my hand-writing. A2 : the gnature is mine. h2, C2, 1)2, and £2, are signed by me. F2, are n white paper and upon blue paper. The one upon blue paper is sign- 3 from him fi'ori d by Robert ; the ono upon wliito paper is both in signature and body G2, H2, 12, J2, and K2, aro all signed by me. M2, N2, 02, P2, Q2, R2, 82, T2, U2, V2, W2, may be gned by Robert ; X2 is signed by me. I know Captain Gritfith's hand- riting. [A. paper is handed to the witness, and he says] — ^This signa- rc is not written in the way he usually writes. Re-examination of James Smith. The pencil marks on the account in evidence are mine. My son Ro- rt received the one hundred.'and fifty dollars after the last date, July 1, C.5, in tho account. After this I received some money from Messrs. Henrv Vaughai B^aughan's, the first to the best of my knowledge that ever I received \ the'ship mislcMBrsonally from them in money; the amount I so received was four hun- ehicfones. (^.- •'ed and eighty-nine dollars and twenty-nine cents. I never after that even the agent ftceived any other moneys from them.' I received this to pay off some 'Us before the mortgage was given. I come at those amounts by the ncil marks I made at the foot of tho account. I never received from e Messrs. Vaughan any money that was not covered by the mortgages have given them.. They always got security for it. Q. — When you, your cross examination, stated that you had given an order on freight (nd received eight thousand dollars from Messrs. Vaughan on such ac- tount, wlmt did you mean ? Arts. — The freight of the ship home it was xpected would be two thousand pounds, and in this cross-examination I ust have got myself confounded in that way. I mean to say I have no collection of receiving two thousand pounds from Messrs. Vaughan on iccount of that freight, or in any otner way. I got no money from __ llessrs. Vaughan except the four hundred and eighty-nine dollars after i'fty-five per ceiBKave the mortgage upon the ship. I got no money to my knowledge to taking off tl«oni Messrs. Vaughan except what was included in the several mortga- ptaiu of the /SarW^ ; no person in my behalf, or upon my order to my knowledge, got id Captain Bet?Wy money from Messrs. Vaughan except what was included in the one place to b ^veral mortgages. Messrs. Vaughan never made a separate advance to \ after in proper the insurance \ as n(*t properly ;he papers about i so, that it wa* Jire ot try to collect to collect it for >inry bond bein: re, lie went out t, to i)rotect till tts what ho hac f.. -._ . at Callao, yoi Ji niy jmnd-writing. I not? Arts.— It after that I a^ id you asccrtaii ide of what yoi london, after th 7, 1 think. Q.- roly approved ( ^n«.— When ot. I was misle ;f the answers 11 be a long tim in Betts mislesv took place. I ihonght he nev ow he had tak e misstate to yo that ho must n 3 that the witn have to give e —What did Ca| y bond. Ana u me of any moneys except what was included in and covered by tlu; mortgages upon the real estate and ship. There never was to my know | ledge a separate advance to nie on account of freight. Not in St. John Adjourned until Friday, the twenty-eighth day of July, 1871, at tetj o'clock. I '<' July 28th, 1871. Mot ])ur3uant to adjournment. Present as before. Re-exaniinatlon of James Smith resumed. There was no advance to me on account of freight in Saint John, nor any other place, specifically upon freight. I received no consideratioc for the order which I gave them for freight. I have received no part oi the freight of the Palm Tree from here to Liverpool. I mean no neti freight, after payment of the disbursements inward to Liverpool, whicliM^jp were charged against freight. 1 was under a misapprehension when I Mhat said I had received two thousand pounds on account of the homeward freight from hero to Liverpool. The misappreiiension arose from out talking about the freight amounting to that sum. I never got any monev after the mortgage upon the ship, except the sum of six hundred anil; thirty-nine dollars and twenty-nine cents, part of which my son RobertI got, and I got the rest myself; but the amount was included in thti mortgage. In January 1864, the Messrs. Vaughan knew the size of tht ship. This was when the first advance was made. The ship was mo delled and drafted then, and we were making moulds. When thev agreed to advance the money, it was not upon the idea that the ship wa> to be of one thousand tons. I did not know at first what size she wail to be, until after she was modelled and drafted. None of the money I| received from Messrs. Vaughan went into fitting up the yard. All tlif ^ money got from them went into the ship. The yard was fitted up lroii!| money belonging to me and my sons. The mortgages were sepriratejj transactions — on separate properties, but the money all went into the; ship. The money was all for one purpose, to put into the ship. Wherij I commenced building the ship I did not know how much money I should^ want. The reason I did not sell the ship to Lindsay for nine poundsj [Objected to.] The Attorney General here withdraws this question, anc| then puts the question as follows : Q. — Why did you not sell at ninf| pounds per ton ? [Objected to.] Ans. — The reason was that Mr. Mille^ said if I would take t^at, he could get a party that there would be m trouble getting the money from. [Mr. Barker objects to conversation! with Miller.] lie afterwards said the party was Mr. Vaughan. Mr| Vaughan never offered nine pounds for her. Freights were better whei^ the snip went over ; they improved after the ship got there, and thejj declined subsequently. I thought 1 could fall back on Miller's offer at anji time. James Baines & Co. furnished the outfits from Liverpool to Mell bourne. They received more than paid for the outfits from the on. warf freight. The outfits were six thousand and odd pounds. [Mr. Barkei objects, as witness says he is speaking from the contents.] The outward freight was more than seven thousand pounds. I saw the accounts, and there was something more gotten by Mr. Miller on account of freight! The outfits were paid for out of the freight. In fitting out the ship foil the Melbourne voyage, they required sidelights to be cut out of the ship ; 86 esent as before. lead lights set, and sky lights put in, couipauion ways cut, and stair- rays put in, and berths and water casks; she had two hundred and fifty irater casks, and she had to have provisions for passengers ; she would Require more cordage and sails. AH these thingfe of which I am now bpeakiug were extra, and over what would be required for the Aden voyage, concerning which I have spoken. I never authorized Captain Betts to take the bottomry bond on the ship, either before he left for Dallao, or before he did take it on her. He was authorized to go there, ^nd take the bottomry off her, and draw here for whatever he wanted, [e was to gCv a bank credit from the old bank here, and was to get it Indorsed by a bank in New York, so that his draft in Callao would be rood, and from that source he was to get the money to take the bottomry m the ship. I never agreed to pay fifty-five per cent, for money for the [hip. Captain Betts told me he got Captain Griffiths to draw the freight, (hat is, a portion of the freight at Callao, and with it he paid the old ^ottomry off, and then he took a new bottomry upon the ship at fifty- ive per cent. ; and what money he drew over, he put to disburse the ^arawah, or a portion of it. He said he drew more money than be /anted ; but he did not tell Captain Griffiths what he did with it. He [aid it would not do for him then to tell me much about it, as he would ^e called upon in another place to explain it, and then he would tell. I lid not know when he left here that he could draw the homeward freight rom Callao. He said he took advantage of the clause in the charter, lat provided in the event of the Palm Tree requiring disbursements at Jallao, it could be drawn on the homeward freight ; so he said he drew jpon this, and paid oft' the first bottomry, and then put on a new one, Idding fifty-five per cent. The money that paid off the first bottomry lelonged to me. [Mr. Barker objected to all the conversations witlx jjaptain Betts.] Messrs. Yaughan did not advance any money to pay " the first bottomry, to my knowledge, nor did Captain Betts advance ly for that purpose. Captain Betts misled me in this way. [Mr. Bar- ler objects.] The Attorney General then puts the following question : P. — In what way did Captain Betts mislead you as to what he did at Mlao ? Ans. — I wanted [Mr. Barker objects to what he wanted] to get le whole accounts from him, and the bottomry as well, and said it was jo good, and if it was, it belonged to me. [Mr. Barker objects that this B no answer to the question, and relates to matters concerning which he lid not at all interrogate the witness upon the cross-examination.] I llso asked him if he would not give the bottomry to me — would he give In or leave it at Mr. Strang's, for the benefit of all. He said he would ; liid went to Mr. Strang's office, as I expected to give the bottomry to [r. Strang : and after he ;.nd Mr. Strang had talked a while, he made lie excuse that he had given the bottomry to Henry Vauglian. [All his objected to by Mr. Barker.] When I came to know what was done ly Captain Betts at Callao, I was not satisfied with it. My misunder- landing was with reference to the objects for which Captain Betts took be bottomry. Captain Betts caused the misunderstanding as to the ob- |cts for which the bottomry was taken. He represented that the bot- Vmry was taken for the benefit of all connected with the ship. I was \ Mr. Wills, the proctor. Captain Betts was not in England for me. jnever gavp him any orders to come there, and I knew nothing of hira 6 f:^' 36 I coming there until he got there. Mr. Henry Vaughan was not in England* on my accoant. I knew from Captain Betts the number [conversations^ with Captain Betts objected to by Mr. Barker] of casks that were given* from the Palm Tree to the Eurydice. There were twenty casks so given. ^ They cost twenty-live shillings a piece. JAMES SMITH. Adjourned until the 29th instant, at half-past nine o'clock. July 29th, half-past Nine o'clock. Met pursuant to adjournment. Present as before. The testimony of James Smith was read over to him, and then signed by him. Adjourned until Friday, the 4th August, 1871. August 4th, 1871, at 10 o'clock, a. m. Met pursuant to adjournment, ^ Present as before. s Adjourned until Friday, eleventh August, 1871, at ten o'clock, a. m,! August 11th, 1871. Met pursuant to adjournment. Present as before. Adjourned until Saturday, 12th August, 1871, at 2 o'clock, p. m. ; August 12th, 1871. Met pursuant to adjournment. Present as beforel Adjourned until the 14th instant, at 2 o clock, p. m. ] August 14th, 1871. Met pursuant to adjournment. Present as before, j Adjourned until the Idth instant, at eleven o'clock, a. m. . i August 15th, 1871. j Met pursuant to adjournment. Mr. Barker and Mr. Forbes appearedj for the plaintiffs. The Attorney General appears for the defendants. Andrew Kenney, called on the part of the defendants, and being sworc| says : — ^ I am a ship captain. I have been sailing as a ship master from twen] ty-five to thirty years. I have some little experience in the guano tradel I mean by some little experience in the guano trade, that 1 have beenHnc two or three voyages in that trade. I saw the ship Palm Tree when shellv* was on the stocks. I do not know how many tons she registered. Q-—W\o How many tons of guano would a ship of fourteen hundred and seventyHld two tons register tonnage carry on a voyage from Callao to the United^ Kingdom? [Objected toby Mr. Barker.] Ans. — She on; 'n. to carri fifty per cent, over her register tonnage. Register tonnag > j « /hat ii known as new tonnage. Some ships will carry even more L'lan fifti per cent, over the register tonnage. Q. — What would be the niaximuni quantity of guano that a ship of her size would carry on such a voyage l [Objected to by Mr. Barker.] Ana. — I think she would carry sixty pel cent, over her register tonnage ; that is to say, a ship of a thousand toDJ would carry sixteen hundred tons of guano. I have known ships, ani been in ships, that have carried sixty per cent, over their register tonl nage. [Objected to by Mr. Barker. ] I Crosb-examination. I don't know anything of the Palm Tree pail ticularly. I never saw her except upon the stocks. I do not pretend tflnt say wlmt per centage of her tonnage in guano she would carry. Sbftbi was a hacmatac built vessel, I believe. A spruce ship of the same tonflat nage will carry more guano than a hacmatac one. When I have becaB fo T 37 not in England Jj [conversations? lat were given ' casks 80 given. ES SMITH. 3ck. Nine o'clock, ind then signed o adjournment en o'clock, a. m, 'resent as before, lock, p. M. resent as before| 'resent as before, M. 8T 15th, 1871. Forbes appeared be defenaants. 1 and being sworn aster from twen- the gnauo trade, lat Ihave bee m Tree when she egistered. Q. red and seventy ao to the Unite e ot?,i.'ht to carr mag. '4 <■ hat more ".an fift )e the maximu peaking of vessels carrying fifty or sixty per cent, over their tonnage f guano, I have referred to sprnce and pitch pine built vessels. There very little difference between pitch pine and spruce built ships as to arrying guano. There is very little difference between pitch pine and lamarac built ones. I have made two voyages down to Callao for guano, hese voyages were in a sprnce ship — the same ship each time. Her jgidter tonnage was one thousand and sixty tons. I brought in her six- n hundred and eighty-six tons of guano the first voyage, and sixteen iiidred and ninety-six tons on the last voyage. There are Government rveyors at Callao who regulate the amount ot guano each ship shall ke upon a voyage: I mean the Peruvian Government when I say the overnmeut. The vessels loading at Callao with guano are all subject these Government inspectors as to the quantity of guano they shall ke, so far as the draft is concerned : that is, they are allowed to load a certain draft of water. Q. — 1 suppose it is a matter for the deter- ination of the master or agents of the vessel, then, as to whether she is be loaded to the depth allowed by the Government inspector. [Ob- ted to by the Attorney General.] Ans. — Yes, the inspection don't mpel them to load to the draft allowed, but does not allow them to go er it. The vessel I had there was the JE^lisa A. Kenney. She was not ilt by Mr. Smith, one of the defendants. In the t wo voyages I have ken of I did not load beyond the depth allowed by the inspection. Was your vessel on those occasions loaded deeper than the Govern- nt regulations allowed ? [Objected to by the Attorney General.] 8. — No. My vessel was a fair carrier. Re-examination. I think my vessel might be called an extra carrier, e was only fairly loaded when she carried guano. She was itirely a spruce ship. She was ten hundred and sixty tons register ; r under dc.k tonnage was nine hundred and forty-nine tons register, r tonnage was swollen by the tonnage of her poop deck one |ndred and eleven tons, which was very large — larger than usual, vespel from twenty-two feet and upwards of depth of hold is allowed load three and a quarter inches cleared sides for every foot of depth of ' 1. These rules are applicable to all wooden ships. In speaking of capacity of vessels to carry guano, I speak with reference to the vernment rules and regulations of the Peruvian Government. A uce ship will ci.rry more than a spruce and pitch pine ship; but the erence is not very much; it depends upon the quantity of pitch pine t in the ship. Pitch pine is a heavier wood than spruce. A tamarac such a voyage Hp will carry about as much as the ordinary spruce and pitch pine d carry sixty peBps. I cannot tell what would be the difference between a spruce ship ■ a thousand tonSa a tamarac ship as to carrying. Something would depend upon nown ships, anflp shape of the ship. The old tonnage of my ship was sixty or seventy heir register tonBis more than her register tonnage. Q. — If the Palm Tree was a sel of fourteen hundred and seventy-two tons register in new tonnage, ' sixteen hundred and eight tons old tonnage, or carpenters' measare- t, would she not be a good carrying vessel ? [Objected to by Mr. bes.] Alia. — Yes ; I think she would be. I am not prepared to say it per centage of guano she would carry ; it would be quite impossi- for me to fix any figure. A. KENNEY. Palm Tree pai do not pretend t ould carry. Shi of the same to: iThen I have bee 88 k i§ f i Robert Reed called, on the part of the defendants, and being sworn,; says : — I am a ship-owner in Saint John. I have been running ships I'orj twenty odd years, and owning them over that period. Q. — Are you,] from your experience as a ship-owner, acquainted with the guano trade ; Ans, — My experience is confined to seeing guano-loaded vessels arrive in England and Antwerp. Q. — Are you able to state what quantity of | guano a tamarac ship of fourteen hundred and seventy-two tons regis- ter tonnage and sixteen hundred and eight tons carpenters' measurement 1 would carry? [Objected to by Mr. Forbes.] Ans. — It would depend npon the shape of the vessel- If this vessel was, as I expect she was, of the usual build of four or five years ago, and if she had a master oti fair capacity and tact, she should carry twenty-two hundred tons of guano. We would be disappointed, if she were our vessel, and did not] deliver twenty-two hundred tons. Q. — ^What would be her disburse raents at Callao? [Objected to by Mr. Barker.] Ans. — It depends greatly upon the Captain. Ordinarily it would be for a vessel of her size, seven or eight hundred pounds. I have seen the Sarawak. I could not tell what her disbursements would be, so much would depend upon circumstances. Colonial vessels, intended for sale, nre usually sold at Liverpool. Q. — If yon had a vessel, colonial built, to sell, would you send her to the Liverpool or London market ? [Objected to by Mr. Barker.] Ans. — If the object was solely for sale, I would send her to; the Liver))ool market. Q. — Did you ever know of a colonial vessel being' sent to London for sale, except the Palm Tree f [Objected to by Mr, Barker.] Ans. — No ; I have no recollection of any New Brunswic);,! built ship ever having been sent to London for sale. The ordinarvi 'eai hat he Ion I ou [r. w X R I. fler )nn A< Met )art| Jo rate of exchange at Callao for good drafts is, as near as I can tell, as fol j if th lows : gold is worth twenty per cent, premium. ^ j 1 1 Cross-examination. The disbursement of ships at Callao depends very much upon tlif Captain. The expenses also vary from time to time. We have had ship obtain guano at Callao. I obtain my knowledge from our own ships J The Mount Pleasant was in the guano trade ; tlie Peter Maaywell waf also in that trade ; so was the John Duncan. These three vessels wer| all owned by us, and were all in the guano trade. I obtain my oxperil ence from those three vessels and others that we have had in the guaiii trade. These three vessels differed materially in their carrying capacit; in proportion to their tjnnage. The Mount Pleasant carried a ver; much larger cargo in proportion to her tonnage than the other vessel] did. This was on account of the peculiarity of her build. She waf built about the same time the Palm Tree was built ; the other vessell about ten years before. The carrying capacity of a vessel depends verft?^ t\ much upon their model and the material of which they are built. ^ spruce ship is much more buoyant than a hacmatac ship. Some ship will carry about sixy per cent, more than their tonnage. A hacmata vessel built about the time the Palm Tree was built, would carry abool fifty per cent, more than her tonnage. I do not remember ever havini aeen the Palm Tree. I do not know how much per cent, of her tonnag ! the Palm Tree would carry. I kpow Captain Alfred Betts for the past fort i I 89 l)eii)g sworn,! riing ships Tor Q. — Are you, e guano trade ; 1 vessels arrive lat quantity of two tons regis- s' measurement would depend xpect she was,| ad a master off nndred tons off cl, and did not her disburse- IS. — It depends a vessel of her awah. I could Id depend upon usually sold at sell, would yoi;| ted to by Mr,| )uld send her to nial vessel being ected to by Mr. N^ew Brunswic); . The ordinanl I can tell, as fol much upon tli(^ 'e have had shiji: I our own ships. er Maxwell w&| iree vessels werl jtain my experil lad in the guanf Eirrying uapacitj t carried a verf he other vessel! build. She wa the other vessel sel depends verl ey are built, ip. Some shi]: ro. A hacmata }iild carry abool ber ever havin| t. of her tonnagi for the past ibrtl fears. 1 have known him as a sea captain nearly forty years, lie is a man Uiathas had'considerableexperiencein ships and shipping matters. I have Die utmost confidence in Cantain Ketts {is a ship master and in business lonnected therewith. Q. — From your knowledge of Captain Betts, have [on also every confidence in his honesty and integrity? [Objected to by Ir. King.] Arts. — Yes, I have. Q. — Would he, in your opinion, be in [very respect a reliable man to send to a foreign port to look after a ves- sl that had got into a difficulty ? [Objected to by Mr. King.] Ans. — " we had a vessel in a difficulty we would be glad to get Captain Betts go and look after it. Captain Betts is not now in our employment ; |e has been, but not for the last twelve or fifteen years. Ke-examination. I do not remember what the old tonnage of the Mount Pledsant was. ter new tonnage is fourteen hundred and ninety-tliree tons. The register )nnage of the Peter Maxwell is now thirteen hundred and forty-three Ions ; but before she had a third deck upon her her tonnage was ten lundred and fifty-six tons. When she was in the guano trade she had \o third deck : she was a ship, and her old tonnage was considerable jver her new. As a general thing, the register tonnage of a ship is a (air index of her capacity. ROBERT REED. Adjourned until the sixteenth inst., at three o'clock, p. m. : August 16th, 1871. [Met pursuant to adjournment. Present : Messrs. Forbes and Barker on the )art of the plaintiffs, and the Attorney General on the part of the defendants. John Frederickson, being called by the Attorney General on the part >f the defendants, and being duly sworn, says : — I am a master ship builder, and have been such for the last twenty-six ^ears. I have built vessels in the United States and ships in Halifax, [aitland, Nova Scotia, Dorchester, and Saint John. I know the Palm "ree, built by James Smith. She was built down here at the back shore. In Saint Johii, near Courtenay Bay, at the foot of Princess street. I was mere from time to time when she was being built. I was there when [he keel was laid, and I went there often to see her. My son was fore- lan at the work for some time, and he was young as acting as foreman, ind I took a good deal of interest in her, and went there often. I con- sidered her an excellent ship : she had a good frame, and was well built, noticed her frame and the model of her particularly. My business leads me to notice the model of a ship when 1 go into a ship-yard, to see ber sailing qualities and capability to do her work and stand up under her canvas. I judged her to be a large carrier. She reminded me of a ship I built for Mr. Smith some fourteen years ago called the Princess )^f the Seas, which ship was a large carrier. The Palm Tree's lines were round, ig. — How did she compare in respect of fullness of lineB and jarrying capacity with ships usually built at that time, namely, about L865. [Objected to by Mr. Barker.] Ans. — I think she compared with khips built at that time ; she was as full a ship as any built at that time. Ihips built previously to this time were built a little sharper. 1 con- |ider the Palm Tree a full ship in every particular. I judged her to be large carrier. Q. — Do you remember a ship built by Mr. Reed about 4» this time called the Mount Pleasant, aud at what time was she built: [Objected to by Mr. Forbee.J Ans.'—Ye&, I do : ehe was built about thtl same time the I*ahn Tree was built. 1 was on board the Mount Plea- sant when she was building; avd after she was launched, and 1 noticed] her as 1 do other ships that I 6"e building. Mr. Smith's ship, the Palm Tree, was the fullest ship of the two, and she was a better carrier there- fore than the Mount Pleasant. Q. — Did you notice anything in the! Palm Tree that made her peculiarly a strong ship ? [Mr. Barker here( objects to all this as being irrelevant.] Ans. — She had bilge logs in her,: a very unusual thing, I never saw them in a ship built in Saint John i before, except one that I built for McMoran & Dunn. Q. — What do yoii suppose the bilge logs in the Palm Tree would cost ? [Objected to bvj Mr. Barker.] -<4?J6-.— Between four hundred and fifty and five hundred] pounds. Cross-examination. The Palm. 7Vf<3 was an expensively built ship. Her frame was an ex- pensive frame, and all her materials. 1 was in the habit of being about Mr. Smith's shipyard when the Palm Tree was being built. I was not' employed at her. I never got a cent out of her. I know the place where the Palm Tree was built before they made a shipyard of it. There never was a shipyard there before. I fitted up at Courtenay Bay a shipyard and another at Dorchester. This shipyard of Mr. Smith's was fitted up as a permanent yard for building ships : it was well fitted up — well done' — a strong job: there were wharves, booms, docks, blacKsn^'ib shop, moulding loft, and otht. things, fitted up as if a man was going to carrvi on ship building there for some time : It had a boiler for steaming planlc | — no engine. Tliere were blacksmiths' tools there. No doubt it cost a' good deal to fit up this yard. I don't think it cost two thousand pounds, but it cost a good deal of money — I cannot tell how much. Yards that 1 have fitted up did not require so many wharves built. I have'l never been a sea captain. My knowledge of ships is confined to| my knowledge of building ships. I have been to sea, but not?* as a master or sailor. I have some knowledge of fitting out ships, g| but I could not now tell, if I saw a bill for outfits, whether it wouldi be correct or not. Mr. Smith would know, no doubt ; he has had a> good deal of experience in fitting out ships. I fitted out one forj McMoran & Dunn, and one for Mr. Ring. Q. — Then I suppose! if a lot of outfits were imported for a vessel for Mr. Smith, and deliveredi to him, with the prices charged for them, he would, from his experience! and knowledge ot the business, be able to tell whether the prices charged! were correct or not ? [Objected to by the Attorney General.] Ans. — 1 That is A question I think any one might answer if they saw the invoice,! and then referred to other invoices, they could tell whether this one wasj correct or not. I know the Palm Tree was a good carrier from her model. I can tell what is the carrying capacity of a ship by the fulness! of her lines. The Palm Tree was a hacmatac snip ; the Mount Pleasant\ was a sprace ship. If a sitruce ship and a hacmatac ship were of the! same size and dimensions, tne spruce ship would carry the most, for she] is built of lighter material. Sue would carry considerably more, not ^ twenty per cent, more, about ten per cent, more, perhaps not that much. A fourteen hundred ton spruce ship would carry about one hundred *^^= lore bars lat iRe-e The! loddl rch. jects 3re ai ferei |r objl sir ell IEng( Ll anc 41 sea, but notr [ore than a hacmatac ship of the same size and model. It id about fonr ]jar8 since I built a ship. The last ship I built was for Mr. S. J. King, lat was about three years ago. Re-examination. i The Mount Pleasant was not altogether a spruce ship. There was a lod deal of pitch pine in her. She was also built of hacmatac, oak, and rch. Her planking was birch, spruce, and pitch pine. [Mr. Barker h'ects that this does not arise out of the cross-examination,] No doubt are are ships built in the country without pitch pine. Q. — Is there any Terence between spruce ships as to their class or character? [Mr. Bar- |r objects to the question.] Ans. — Certainly there is a dift'erence in sir classification. Some will get four, some five, and some six years, [English Lloyd's. This difference of character arises from the mate- ^1 and workmanship likewise. Q. — Suppose the Mount Pleasant and Palm Tree were of the same model, what would be the- diflfer- 30 in their carrying capacity, so fiir as it would depend upon the dif- tence in wood. [Objected to by Mr. Barker.] Ans. — From seventy-five (one hundred tons. The Mount Pleasant would carry the most ; but It more than seventy-five tons more, as the Mount Pleasant had 'reat deal of hardwood in her. Q. — Now, then, I have asked you iat wonld be the diiference in their carrying capacity ; supposiog they [re of the same model, but the Palm Tree being, as you say, of a Her carrying model, what would be the diflference in their carrying jacity, as the ships really vere. [Objected to by Mr. Barker.] Ana. The Palm Tree would carry the most, suppose their tonnage was tho. le in carpenter's tonnage. JOHN FREDERICKSON. • idjourned until Thursday, the seventeenth instant, at ten o'clock, a. m, %Wif ■ Thue«day, the I7th August, 187U [et pursuant to adjournment. Present — ^The Attorney General and Morrison for defendants, arid Mr. Barker and Mr. Forbes on the part the plaintiffs. /^liver Pittfield called on the part of the defendants, and being Bworn^ fs: — am a member of the ship-building firm of Crookshank & Pittfield. jmember the ship Palm Tree, built by Mr. Smith. I worked on her foreman. She had bilge logs in her. I saw some of the Messrs. [ughan down there about her when she was being built. I saw Mr. ivid Vaughan there, and this gentleman here, Mr. James Robinson, |o is a clerk of the Messrs. Vaughan. I also saw Mr. Henry Vaughan We. They wer-e not doing anything there in particular. Mr. David Inglian was there considerable. When I went there she was pretty |1 along, nearly caulked — about one half caulked. I went thereabout middle of March. 1865. I was there when the bilge logs were pat I superintended the work at that time. I saw some of the Messrs. ighan about there when the bilge logs were put in. Mr. David ighan was about there then, and Mr. Henry Vaughan was there too. letimes David Vaughan would come, and then Henry Vaughan would with him. David Vaughan did give directions as to the fastening f r .'»■• I 42 of the bilae logs. He asked for some iron fastenings to bo driven dovj athwart ship, every three feet apart, and they were driven accordinijlyl I did not hear him direct about anything else. The bilge logs were firr driven through with copper from the outside. Mr. Vaughan alsj asked for up and down iron bolts to be driven through, besides tt athwart-ship bolts ; and the up and down iron bolts were alji driven. These up end down iron bolts were driven becaus' Mr. Vaughan did not think there was enough fastening without then The fastening that Mr. Vaughan dictated was extra fastening. It is nj usual to put bilge logs in vessels here : this was the only vessel I ev(^ saw them in before, except one vessel in which I saw them, and I ha^ never seen them in any vessel since the Pulm Tree. The bilge logs i| the Palm Tree were made of oak and hacmatac, and there were two tic| of them in the Palm Tree, and only one tier in the other vessel I hail spoken of. The effect of the bilge 'lo<:?s was to add additional strengj to the ship. She was a good ship. Tlie cost of the bilge lugs would, think, be about four or five hundred pounds. Gross-examination. Mr. Vaughan was down about the vessel when I was there. I v;| there about three months. The vessel was launched in June. I thini was hired by Mr. Smith. Mr. Smith was there when Mr. Vaughan ga|j directions about the bilge logs. Mr. Vaughan did not give me the rections to put thebil^e logs in, in the first instance. He gave the direj tions about the fastenmgs. Mr. Smith and Mr. Vaughan were consultiil together as to the advisability of putting in extra fastenings, and JUl Vaughan was of the opinion that it would be bettor to put in extra fj tenings, and Mr. Smith, I suppose, thought so too, or else they wovi| not have been put in. I acted whilst I was in the yard entirely un Mr. Smith's direction. Mr. Frederickson was there as foreman befoi me. During the three months I was there, there were other people the! looking at the ship besides the Messrs Vaughan. I did not know wbl the Messrs. Vaugnan's business there was. Re-examination. Question. — What appeared to be Mr. Vaughan 's business there? [( jected to by Mr. Forbes.] Am. — They were looking abou* the ship aJ now things were getting on. Mr. David Vaughan was very anxioi about the launching the ship. I would not myself have put in the exlf fastenings. When Mr. Smith and Mr. Vaughan were talking the mattj over about the bilge logs, Mr. Smith said the fastening was equal [ what Lloyd's required for fastening. Mr. Vaughan said he thought! would be better to have the extra fastenings put in, and they were put r The defendants' case is closed here. OLIVER PITTFIELD. The plaintiflfs here proceed to call their witnesses and put in furtlj evidence. [The Attorney General and Mr. Morrison here object to further testimony on the part of the plaintiffs being received.] Albert fietts is here called on the part of the plaintiffs, and bell worn says : [Notice to produce, first put and marked by Barrister.] I reside in Saint John. I know James Smith, the defendant, andjj know the Messrs. Vaughan intimately, both these that are living, am 48 t are living, ant lew those who are dead. I am a master mariner, and Lave been such itween thirty and forty years, I liavo commanded vessels out ^'n the ano trade once. I made one voyage for guano. J knew this vessel, 3 1'alm Iree, that has been spoken of. I am the person spoken of by r. Smith as having gone down to Callao. I was employed by him in ovember 1866. 1 went down to Callao at that time under the foUow- y circumstances: I met Mr. Smith in D. & T. Yaughan's oflSce, in int John, about the 20th of November, 1860. Mr. Thomas Vaughan, James Smith and myself were present, and I think Mr. James Kob- on alrio. Mr. Robinson was a clerk in D. & T. Yaughan's office. I s informed by Mr. Smith and Mr. Yaughau both, that the ship Palm ee had been laid on in her berth in Liverpool for freight and passen- rs to Melbourne by James Baines & Co., and that she had received on ard a freight of some six thousand pounds, and after leaving Liver- ol some six weeks the house of James Baines & Co. failed, and had, fore failing, collected nearly all the freight of the vessel, and that they d, by an agreement with Mr. Smith, agreed to lit the vessel out, to y her bills, and had never done so ; consequently the parties that had Ipplied the outfits intended to seize upon the ship when she returned ck from that voyage; that they had received a telegram from England t she had been bottomryed in Melbourne for some two thoupv;nd unds, which was te be paid ten days after her arrival at Callao, and ly wished me to proceed to Callao and relieve the bottomry from the p. I proceeded to Callao. Before I went to Callao it was talked |er between the three of us as to the best means of relieving the bot- ry. It was suggested to take a second bottomry. The next day, in versation with Mr. Smith, he told me that he had hard work to get Messrs. Yaughan to advance means to send a person to Callao to k after the business of the ship, but they had finally consented to ad- pce means to do so ; and I was furnished with a bank credit in New rk for ten thousand dollars in gold by Messrs. D. & T. Yaughan, and o a power of attorney from Mr. Smith. [The power of attorney from es Smith to Albert Betts, dated the twenty-first day of November, 6, put in.] This is the power of attorney I received from Mr. Smith. ssrs. D. & T. Yaughan also furnished me money to pay my expenses Callao. They gave me in greenbacks one hundred and thirty-nine illars, and in American gold three hundred dollars. They asked me at amount I would charge for going down. I was either asked this Mr. Smith or Mr. Yaughan, in Mr. Smith's presence. They were th standing together at the time. 1 told them my charge would be at le rate of two hundred pounds sterling per annum and my expenses. is was agreed to by Mr. Smith. This rate was to cover the time from en I left here until I got back, or was done with the business of the ip. Q. — Did Mr. Smith know before you left Saint John of your ving been furnished by Messrs. D. & T. Yaughan with the bank dit? [Objected to by the Attorney General.] Ans. — Yes; he did >ow of it ; 1 know that he knew, because he was mostly present at the nsaction throughout. He also knew before I left Saint John that they furnished me with money to pay my expenses. Q. — Was there any ng said by Mr. Smith before you left Saint John, or in his presence Mr. Yaughan, in reference to your drawing the freight at Callao to 44 take up the bottomry ? [Objected to by the Attorney General.] Ans.- It was Mr. Smith's orders to me to try and secure the freight, if possible Q. — Did ho (Mr. Smith) give any reason why? [Objected to by tb Attorney General,] Q. — The outfit bills had not been paid by Janie Baines & Co. before their failure, and the parties holding these claim against the ship would try and collect them on her arrival home. Mr Vaughan said to me, in the presence of Mr. Smith, that he held a mortgap upon the ship, but that he had no control of the ship whatever ; that Mi Smith was the owner of the ship, and he wished me to understand tha })articularly. I proceeded on to Callao by the way of New York. I lei lere on the twenty-second of November, or twenty-third, I am not Bin which, 18f»6 ; I arrived in Callao on or about the twenty-first of Deceit ber. The Palm Tree had arrived there, I saw the Captain— Captar Griffiths. 1 did not know him before : he was a stranger to me, Q.- What did Captain Griftiths tell you concerning the I*alm Tree f [Tli Attorney General objects to this witness stating any conversations 1 had with Captain Griffiths, and this objection, it is understood, shall el tend to all questions asked this witness as to conversations with Captai Griffiths,] Ans. — Captain Griffiths was Captain of the Palm Tree i that time, and he stated a claim had i)een made upon him by the hon? of Anthony Gibbs & Sons, of Lima, for a bottomry given by him npc the Palm Tree, at Melbourne, and which was due in three days froi? that time. I proceeded to Lima, and called upon the managing partnf ' of Anthony Gibbs & Sons. He showed me a bottomry. [The Attornt General objects to this.] I wish to state here that the house was " Wi liam Gibbs & Co.," instead of " Anthony Gibbs & Sons." The mana; ing partner was Henry. Captain Griffiths acknowledged the bottomr Mr. Henry produced this paper to me. [The paper here is put in. Tl Attorney General objects to the paper going in, and it is withdrawn.] ( — What did you do with the paper when you got it from Mr. Henrj Ana. — I kept it. I paid William Gibbs & Co. eighteen thousand for hundred and nineteen dollars and forty-three cents Peruvian dollar This amounted in sterling to two thousand eight hundred and oneponni seven shillings and elevenpence, being the Peruvian dollar at thirtv-£ pence halfpenny. 1 did not show this paperto the Captain. After 1 gi it Captain Griffiths told me he had seen the bottomry bond at Gibbs' b fore I arrived there. That was the same place where I got this dod ment, and paid the money. Captain Griffiths' christian name was Wi liam. After 1 got this paper, which was handed me when I paid tl money, I got Mr. Henry to go with me before the British Consul Genei at Peru. He there transferred. [The Attoniey General objects.] Tl writing at the bottom of the paper was put on at the Consul Genen office. The signature, James Henry, is in the hand-writing of the Janij Henry spoken of; and the signature, John Barton, is the signature the Consul General at Peru. The seal there was also put on at the C< Bul's office. [The paper is here put in, subject to the Attorney Genei objecting to the same being put in.] Q. — ^Tell me how and when yi got the money to pay this bottomry off? [The Attorney General ( jects to the question.] Ane. — Captain Griffiths drew the money fn the guano company's office, and placed it in the hands of John Brii & Co., to my credit in Callao. He drew the first time thirty -five hund ^unc pai( edit Me lere 36 K 45 ^unda stcrliiif! in Poruviau dollars, at t'orhythroo pence to the dollar. )aid off the bottomry with that money, and the balance was to my adit. I conversed with Oaptain GritHtha as to the vessel's voyage out Melbourne, and the circun)stance8 under which he ^ave the bottomry |ere ; and he said he had roiicd the head of his topmast away, off the ^pe of Good Hope, which had caused considerable damage to his sails, |d spars, and rigging, and his disbursements were swelled very high by JB misconduct of some of his officors on the voyage to Melbourne. The Ithorities had prosecuted some tlireu or four of them, and the whole of expenses had come upon the ship. He said the otticers of the ship ^re all implicated. He said to mo what his disbursomont-i at Mol- lurne were, and showed me at Oallao the accounts of thuui. These counts wore not delivered to mo ; they were detained by him. I saw le disbursement accounts concerning the Palm TVvc in Mr. Smith's ids in London. I think they were some of the same I saw at Oallao, It I am not sure. The Captain took the ship out to the Islands to load, she did load with guano. I was on board her while she wa-»lo.idiii;^. Conversed with Captain Griffiths in reference to the loading, und in ro- fenco to hercargo. I wished him to take a good load, ami ho promised Ido 80. I left the ship at the Islands, before she was loaded, and went 3k to Callao. On the ship's arrival at Callao, from the Islands, tht: [ptain informed mo that the ship was four inches doaper than the (tov- iment mark. 1 did not see the mark myself. I got her away ivowx lllao as quickly as I could. Q. — Do you know anything about the Wernment regulations at Callao about loading vessels with guano ? [bjected to by the Attorney General.] Ans. — Yes; it is auconiing to ^glish Lloyd 3 rule — three and one quarter inches to the depth of hold a dry side in ships twenty-two feet hold, and three and a half inc-hcs |the foot of hold tor a ship of twenty-four feet hold. The Governtnent rveyors mark the sides with a piece of copper, according to that rule ; they are allowed to load to that mark ; and GritKths told me he luid ^ed so as to put that mark four inches under the water. She cleared |m Callao, with Captain Griffiths as master — the same Captain Griffiths |For Cork, for orders. I paid the ship's disbursements at Callao outwards ; By amounted to (the general disbursements) four thousand eight hun- jd^and eighty-two dollars and eighteen cents (Peruvian dollars). The Iptain bought off thirty of his lay days at tliirty-eight dollars per day, lounting to eleven hundred and forty dollars of tlie Peruvian curren- By this he got off so many days sooner. Her disbursements that I Lid there amounted to about eight hundred pounds sterling ; that mo- ^y I paid after he came down from the Islands. The captain drew one )usand pounds more. This one thousand pounds and the thirty-five ^ndred pounds that I have spoken of, was all drawn against the guano sight. I sent Mr. Smith a statement. I had, whilst 1 was out there, ^eral letters from Mr. Smith. I took the other bottomry bond that is evidence, at Callao. Captain Griffiths told me at Callao that he had Id at Melbourne all his spare provisions ; he did not say how much. Ae ship Sarawak was at Callao when the Palm Tree was there. She jks loading with guano also at the same ,time. The Captains, at xnj jgestions, after the Palm Tree was loaded, swopped their boats, the ilm Tree^a boat had been used in loading the Palm Tree with guaao, r nrl 46 but the Sarawak'a boat had not been used in loading guano, and waj new. The Palm Tree's boat was a guano boat ; the Sarawak's boa was not ; but the tSarawak'a boat could bo used in loading guano if oii| should choose. The boats were about of the eatno value ; the boats wtrl both built at Liverpool, I believe, and would cost between twenty aiiJ thirty shillings a foot over all. They were both copper fastened, and, aj far as I know, about the same length. I do not know why the exchanfrj was made ; there was nothing gained or lost one wav or the other. T Palm Tree's boat was not sold, so far as 1 know. iMio Euridice was Callao at the same time ; she belongs to the Messrs. Vaughan also. Ai] ter paying the Palm Tieeh disbursements, I had a balance in my liancil of two tliousand four hundred and seventy-six dollars and twenty-niiii cents Peruvian currency. 1 had a largo disbursement bill to pay off fcJ the Sarawak on account of Messrs. Vaughan, and 1 gave Mr. 8mith crd dit for that amount ; that would amount to, in New IJrunswick currenc, to — I cannot say exactly how much they were worth— about six doll to the pound sterling. E had a conversation with Mr. Smith before left Samt John with reference to Messrs. Vaughan's ships. This coi versation was — he told me to do everything that I could that came my way to expedite them. I returned from Callao direct to Saint Join by the way ot Now York. I arrived here in the end of April 1867. J\l; expenses whilst I was away amounted to about seven hundred dollars i New Brunswick currency. Adjourned nntil the eighteenth of August, at half-past 7 o'clock, v. August 18th, 1871. Met pursuant to adjournment. Mr. Barkci uiid Mr. Forbes, on tlij ])art of the plaintiti's, and the Attorney General and Mr. Morrison on tlj part of the defendants, arc present. Examination of Albert Betts resumed. I was paid for the time I was away, at the rate mentioned, byD. & Vaughan. They settled my accounts on my return. The Palm 2'r\ left Callao for England March the eighth, 1867. It took me thirty d7, from Captain Betta to Mr. ith ; another dated March loth, 18G7, from Captain lietta to Mr. ith. J I am not certain wliethcr 1 wrote any more Utters than those in from Callao to Mr. Smith. I came honiu from Callao. and after- Irds went to Eufjland. 1 was in London when the Palm Tree arrived [London from Callao. Mr. Smith came there, I think, the day after sho Vived, 1 think in the inorniiif^. Caotain Grifliths was then master of the flm Tree. I saw Mr. Smith soon alter his arrival in London. Mr. Henry pghan, 1 think, was there at the time. Mr. Smith and myself, I think, nt down to the Victoria dock, where the ship lay. We found Captain ifHthson hoard. Captain Griffith?, Mr. Smith and myself returned to idon. We went to the otKce of Lloyd, L(tw & Co., and the Captain re presented his papers for entry. The ship was — [The witness is here ped hy ohjection. The witness is allowed to resume, subject to the ection of the Attorney General.] The ship was entered hy Lloyd, ■ & Co., with Mr. Smith's full consent. Q. — How came you to go loyd, Low & Go's olKce ? [Objected to by the Attorney General.] — Most all guano charters make ;'rovision — [The Attorney General ects to witness stating what chartLi\3 contain without producing them.] ,'nter through Lloyd, Low tfc Co. I mean guano charters. Lloyd, & Co. were the agents of Grierson, Cole tfe Co. for the purpose of ;ering guano ships. This was about the 19th day of July, 18t>7. This Ik place on a Saturday, [ihu Attorney General objects to Captain ts stating anything he did in London concerning the ship, unless Mr. "th was jtresent. This objection is made in consequence of the wit- going, on to say, on Monday I visited the ship at Victoria docks.] sited the ship on Monday at the Victoria docks, and found that she been arrested by the Court of Admiralty— [the Attorney General cts] — for bills for a large amount that had been contracted in Liver- before she sailed from there. Q. — IIow did you know the ship was sted ? [Objected to.] Ans. — I saw the bills upon her mainmast — ean writs — and I saw the Admiralty bailift'on board of her, or a man said be was. I am not sure, but I think Mr. Smith was with me this occasion. Smith then employed a proctor, by the name of Wills, 'efend the suit. 1 do not know Wills' christian name. 1 was several at Mr. Wills' office with Mr. Smith. I went to Liverpool. Mr. mas Vanghan. [The Attorney General objects to the witness going to speak of conversations with Thomas Vanghan.] Mr. Thomas [ughan said Mr. Smith would want me in England, and I consented o. I was supplied with money to meet my expenses by D. & T. aghan to the amount of one hundred and twenty dollars. Q. — Did ever pay the proctor. Wills, any money on acconnt of the suit ? •jected to.] Ans. — I did. I paid him ten pounds. I am not certbin Mr. Smith was with me at the time. Q. — Did yon receive in Eng- any part of that guano freight ? Ans. — No. Q. — Did you in any W 4» wjiy jict on the bottomry bond to yourself in England i [Objected to.' Ana. — Yes, I did. I gave a release for two thonsand pounds on thl freight. [It is understood between all the counsel that all objections tq questions, in every instance, goes to the answer, as will suppose the aii| ewer objectionable.] Q. — To whom did you deliver this release? [01: jected to.] or the paper which you call the release ? Objected to.l Ans. — To Mr. Low, of the firm of Lloyd, Low & Co., in London. I dcj not know of that release ever being in this country. Q. — For what pnr^ pose did you give this release or paper for two thousand pounds ? /4 w».-j For the purpose [question and answer objected to] of paying off thy crew and the ship's inward disbursements at London. Q.—Do you from your own knowledge, or from conversations with Mr. Smith, knov whether this amount of two thousand pounds wac used for this purposi of paying off the crew and disbursements ? [Objected to.J Ana. — ^1 dJ not know this from conversations with Mr. Smith ; but I do from converl sations with Captain Griffiths and Lloyd, Low & Co. — [The Attorney General objects to any conversations between witness and Captain Grifl fiths, or between witness and Lloyd, Low & Co. being put in evidencSj know that the crew were paid off, and the inward disbursements London were paid by Lloyd, Low & Co. i Adjourned until the nineteenth day of August, 1871, at half-past 8eve| o'clock. August 19th, 1871. Met pursuant to adjournment. Present : Mr. Forbes and Mr. Barke! for the plaintiffs. The Attorney General and Mr. Morrison for tli defendants. Examination of Albert Betts resumed. The ten pounds that I paid Mr. Wills, the proctor, I did not get fro^ Mr. Smith. It was paid me by Mr. Vaughaa. The money was dra\ from Mr. Vaughan in the first instance. I remained in England at thai time until about the twenty-seventh of August, 1867, when I left f| Cork. I arrived in England about the twenty-eighth day of June, 186? Q. — Whilst you were in England, and after the arrival of the i*alm Tri from Callao, were you or were you not engaged in the business of tif I*alm Treel [Objected to by the Attorney General as too leadingj Ana. — I was. Q. — On what business and for what purpose did you to England at the time spoken of? Ans. — The husiness of the Pall Tree. From the time I left here, and whilst I was in England, and to the time I left for Cork, my expenses were paid to the amount of ford pounds by Mr. Yaughan and Munn, Miller & Co. ; and besides this] received ten pounds from Lloyd, Low & Co. This ten pounds was F Srivate matter ; they lent me the money and I r^turnea it to theij [unn, Miller & Co. were a firm doing business at that time in Li.t Sool. Q. — Did yon at any time deceive or make cny misstatement Ir. Smith as to what you did concerning the Pah<. Tree at Calh Ana. — Not to my knowledge. Mr. Smith has not personally paid ii| auy money on account of my expenses to Callao or to ?2nglan(i. Cro88-6xa>niutttion by the Attorney (»eneral. I came to be at Messrs. Vaughan's office at the time I have Btated. [Objected to J I poundB on thr all objections suppose the anl s release ? [Om Objected to. I 1 London. I dc| — For what pnr^ pounds ? "^ 'J*'"! f payinff off thi] . o you' Mr. Smith, knoM for this purpoH to.j An8.—1 d( I do from conve| —[The AttornejT ,nd Captain Grifj J>ut in evidence.! isbursements at half-past sevej U8T 19th, 1871. IS and Mr. Bark^ Morrison for tb did not get froi money was drav n England at th r, when I left f( lay of June, 186 of the Palm Tr* \G busineos of tl I as too leading irposo did you ness of the Pah England, and e amount of for ind besides this] ten pounds was irned it to thei lat time in Li. misstatement Tree at Call irsonally paid jlnglan(i. I have stated. id )t went there under tliese circumstances : Mr. Kobinson came for me ; lean Mr. Robinsoa, Mr. Vaughan's clerk. It either occurred then or le next day with Mr. Smith himself th't I understood the Palrn Tree id been chartered by Baines. Mr. Smith, before I left for Callao, told |e that there would be money due on the charter party at Callao, and |at, with the money from the sale of provisions, would go far towards laring off the bottomry. I do not know that at that time the terms the guano charter wero not known by Mr. Smith. I forget whether not there was anything said in that conversation by Mr. Smith, or iu presence, as to the amount due upon that charter party at Callao. lat the time I left to go to Callao, knew the amount : it was either felve or fourteen hundred pounds. I cannot say which of the amounts it 18. I took no memorandum of it. There was no occasion for it. Q. — If |n knew that, why did you get a bank credit for ten thousand dollars. t. — There was nothing like having plenty of funds, and at that time amount ot the bottomry was not known. ^ — ^Then in these con- •sations there was nothing said about the bottomry ? Ans. — Yes tliere IS. Q. — How could anything be said about the amount of the bot- iry if nothing was known about the amount of it ? Ane. — Yes, be- ise it was supposed to be about two thousand pounds. Q. — Then it ist have been stated there that it was about two thousand pounds ? . — Yes, it was ; and I think also it was then said it was to oe paid ;en days after the arrival of the vessel. Q. — Did you not go to Callao ell for Mr. Vaughan as for Mr. Smith ? Ans. — Mr. Smith directed to do all I could for Messrs. Va\ighan's interest. Q. — Did not (ssrs. Vaughan's also direct about the ship — to look after their inte- ? Ans. — Nothing more than this, that I should look after their ►8 if it came in my way. Q. — What ships were those ? Ans. — The Idice, the Sarawak, and the John Parker. Q. — Where were those IS then ? Ans. — Ail those ships were at Callao or the Chincha Is- Is whilst I was there; one arrived there before I reached Callao, and other two arrived there after I got there. Q. — I suppose you knew •re you left here that those ships were becoming due at Callao i! . — Yes, I do ; some of them, if not all. Q. — How did you come to iw this ? Ans. — In conversations with Thomas Vaughan. Q. — Did not get a paper from Messrs. Vaughan before you left Saint John Callao 1 Ans. — Yes, I got a power of attorney from thom. I have got that power of attorney now. I gave it to Messrs. Vaughan be- ise I had no further use for it. 1 got a power of attorney from Mr. |ith too. I did not give it up to him. I forget who I gave that pow- •f attorney to, but 1 think I gave it to the Messrs. Vaughan. Yes, I >w I gave it to the Messrs. Vaughan. I cannot say why I gave it to Messrs. Vaughan. It was as safe in their hands as in mine. I for- when or where I gave it to them. The reason I did not give it np "-, Smith was that he never asked mo for it. The Messrs. vaughan asked me for their powor of attorney. I will not say the simple m why I did not give the power of attorney to Mr. Smith was because lid not ask me for it. Q. — What other reason was there. Ans. — ship was in great diflSculty, and it was well to hold all the papers lected with her. Q. — To what do you refer when yon utc tne e.\- tion, all the papers connected with her ? Ans. — All that iuo present 50 in the Court. Q. — Did you have all tlie papers that arc present in tU Court ? Am. — Not all. I had not these Mr. Smith has. Q. — Whi papers did you have, and did you want to hold on to? Ans. — I had! power of attorney from Mr. Smith, the two bottomry bonds, j[ind a nnn ber of letters from Mr. Smith, and the accounts of the ship Palm Tn\ Q. — Where did you get these accounts ? Ans. — At Callao. I had i ray possession the bottomry bond that was put in evidence here the ot.y night. I have not those accounts in my possession now. Whatever sij counts there were in councctii)n with the ship 1 gave into 1). & Vaughan's oflBce. 1 gave the bottomry bond that was put in evidenij the other night to Mr. Vaughan iu London. Whilst 1 was in Englan in 1867, during the time I have spoken of, I gave the other bottonij bond to Mr. Vaughan. This last bottomry bond that I am speaking is the one that I took myself. Mr. Smith asked me for that bottoriij bond in London, after I had given it to Mr. Vaughan. I do not reeJ lect the date at which I gave it to Mr. Vaughan. It was just beforej left London for Liverpood, but not shortly before I left England. fave the bottomry bond to Mr. Vaughan about the twentieth ot Auguj arrive at this date because 1 left Liverpool for Cork before the twentf seventh of August. Mr. Smith asked me for it I think the next dl after I liad given it to Mr. Vaughan. I gave Mr. Vaughan both b| torarys at once. I was employed by Mr. Smith to go to Callao. I act! in Callao as his agent in reference to the Palm Tree. The money thai paid to William Gibbs & Co. for the first bottomry, was not my o\f money ; it was advance freight of the ship Pcdm Tree on her roya from Callao to the United Kingdom. I consider my time and my penses as a charge against Mr. Smith as owner of the Palm TA What I did at Callao for the PaJ/m Tree 1 did for Mr. Smith. ^J Then why did you not give both bottomrys up to Mr. Smith ? Ansl 1 held them as a receipt for my transactions in Callao. Q. — How wl they a receipt ? Ans. — They showed the transactions. Q. — If you c(J sidered it a receipt, why did you give the bonds to Mr. Vaughan ? u — I considered them as safe in his hands as in my own. When Smith asked me for the bottomry, I told him I had given it to Vaughan. Mr. Smith, when I told him this, did not say much. I fori what he said. Q. — Had not Mr. Smith before that repeatedly asked ; for the bond? Ans. — I do not recollect that he did. I will swear t!j he never asked me before — never once before. Q. — If you are now p(j tive that Mr. Smith never once asked you for the bond, why did swear a moment ago that you did not recollectwhether Mr. Smith befl that had repeatedly asked for the Bond? Ans. — Because I am now p| tive he did not ask me. Q. — Did not you and Mr. Smith go to " Strang's ? Ans. — Yes ; it was before that. I do not recollect that Smith then asked me for the bottomry. Q. — You will not swear tively that he did not. Ans. — I do not recollect. Adjourned until Monday evening, at half-past seven o'clock, the day of August instant. - ^ • ' :)1 are present in tli has. Q.-^U i Ans.—l had] )onds,j[«id anuri ship Palm Trh Callao. I had:; nee here the othd n. Whatever »| ave into D. & 18 pat in evidenj 1 was in EnglaJ le other bottonij I am speaking for that bottoHij 1. I do not red was j list before! I left Enj^land. J entieth ot Auguj before the twentf hink the next dj ranghan both bj to Callao. 1 act! The money thaj , was not my ov 'ree on her roya time and my )f the Palm T\ Mr. Smith. Q\ Smith ? Ansl <;.>.— How wj ursements there. The most of the money was paid at Callao. Vaughan's of the visits to the Islands had reference to Mr Question. — Did yon ever render an account of your per- expenses to Callao to Mr. Smith? Ans. — Tiirough Mr. liob- I did. [Mr. Morrison here says I do not mean any thing Mr. Robinson. I mean did you render your account personally Smith.] Alls. — No ; I did not render an account to Mr. I do not know of my own knowledge that Mr. Robinson gave that account to Mr. Smith. Q. — What do you mean when say you rendered your account to Mr. Smith through Mr. Robinson? . — I mean I gave the account to Mr. Robinson. Q. — Did not Mr. fth ask for these accounts? Ans. — Ko; he did not. I do not recol- that he asked nie for them at any time. I went to England from after I returned from Callao, by direction of Mr. Thomas Vaughan. Isaid Mr. Smith would want me there. Mr. Smith was not at Liver- |1 when I got there. I received at Liverpool instructions about going ^ondon. Mr. Henry Vaughan sent me to London. I don't think I asked Smith in London for any money to pay ray expenses. I did not see him jiverpool. Mr. Smith only asked me once for the bottomry bond. not recollect the time exactly ; it was in the boarding house in IdoQ. We boarded in the same house. Q. — In July, 1867, did he I when you were ooming from the Victoria dock, in London, ask yon [he bottomry bond ? Aiu. — No ; I do not recollect that he did ; ler do I remember that he did so aboat the month of August, that 60 1'] h it miglit lie lodged at Mr. Stiung's office. There was no necessity ofhiii asking for it. ile could have taken it often \i'ithout asking me for m I had not the bottomry to give him when he asked me for it. I handcl the bottomry bond to Mr. Vaughan the evening before Mr. Smith askel me for it; but I do not recollect the time. Mr. Yaughan was going tl Liverpool, and 1 gave it to him. Q. — Did you not distinctly refuse ti give the bond to Mr. Smith when he asked for it, and while you had il in your possession i Ans. — No; I never refused to let Mr. Smith havl any document in my possession about the ship. There was no need (1 lam asking me for them. Q. — On or about the fifteenth of August, Al D, 1867, did you write to Mr. Smith from Liverpool to this eflfectj "" After due deliberation, I find I shall want every document in my poJ session in my final settlement with yourself, and until that time al vouchers belonging to myself; but until I am settled with by you, will not give up any document in my possession." [Objected to — first, thai the letter should be produced to the witness, and that he cannot be inteJ ix»gated as to the contents of a letter in that way.] Ans. — It is niosl likely I did, and was quite right in doing so. Q. — Then how do yoi reconcile j'onr former statement, that you did not recollect refusing Mrl Smith any papers in your possession, and that there was no need of hiiJ asking you for them, with the answer you have just made ? Ana. — Yoi never asked me whether he wrote to me ? Q. — Did not Mr. Smith i| London revoke your power of attorney, and forbid you acting under it{| [Objected to.] Ans. — I do not recollect that he did. Q. — Did he no| intimate to you that you were acting hostile to him, and forbid you actiDi in his interest for him ? Ans. — No ; I do not recollect that he did. 1 always acted for his interest. The reason I gave the release to Lloyd Low & Co., was because they asked me for it. I am not certain that Mi Smith requested me to give it. I think most probably he consented tl ray giving it. I do not tnow what the inward disbursements to Londoi| were. I presume they would amount in all to five hundred pounds, dii charging and all, but this amount would not include the seamen's wagcji The inward disbursements, dockage and seamen's wages, would amounsj for the Palm Tree to two thousand pounds; by inward disbursements! I mean pilotage, steamboat hire, towage, dockage, seamen's wages, di| charging cargo, commissions on cargo outwards and inwards. When 1 said five hundred pounds .'i minute ago, I included in it her dockage! steamboat hire, and discharging cargo : this is my opinion of what thl amount would be. The persons who proceeded against the ship in Engj land were Roberts & Potter. I do not know whether Roberts or Potteil were partners of James Baines & Co. I do not know anything aboui them. Eight hundred and eighty-six dollars were only about one half of my expenses from Saint John to Callao and back. I don't think muci of it was in Peruvian gold. It was mostly in gold. I gave the accouDJ to Mr. Robinson on my return. There are boats built especially foj guano boats. The boat I got from the Palm Tree, and let thl Sarawak have, was a ship's long boat, and stronger than au ordinary ond The Sarawak did not want the boat at all. The reason I suggested thai the boats be changed was that the Palm Tree's boat was a better boal for carrying gnano than the one received from the Sarawak — I mean foi carrying guano ; but the Palm Tree had loaded with this boat. At til )o the boats woro oxchangud the Sarawak was loaded. She did \t want a boat that was better iitted for carrying; ^uaTio than the one I let pro to the Palm Tree. I saw the boat the I*al,m Tree got from tho \rav}ak; it was a good boat. I do not know what nntnber of water eks the Eurydice got from the Palm Tree. I kn(»w she got some diin- ge from her — some sliooks — some water-cask shooks. I think Mr. lith and the captain were witli me when 1 took the Palm Trei» pa- up to Lloyd, Low & Co.'s, in London, after the ship had entered. I a stopper on the freight myself at London. le-examination of Albert Betts: ''hen I put a stoppe r on the freight, I mean that I irave a notice — le witness is asked by Mr. Morrison if tlie notice was in writing, and I says it was. The answer is then objected to.] to Thomson, Bonnar & |. tiiat I held a bottomry on the freight. Tliomson, Boiinar & Co. were \ agents in London for the Peruvian Guano Company. Tlie freight luld bo coming throu^jh them. The guano freights always come lough them. 1 gave the release to Lloyd, Low & Co. for the reason Ir. Morrison objects th.at the document would speak for itself, and jit its contents could not be gotten in that way, and that the question too leading.] that I had put a stopper on the freight, and was obliged [give it to get that much out of the freight. Q. — Yon spoke of the len's wages, inward disbursements and dockage at London : would |y be paid out of freight at London from Callao? [Objectsd to as too ling.] Ans. — Yes, and they were paid out of this two thousand inds. [The witness here states, in answer to Mr. Morrison, that he |y knows the seaman's wages, inward disbursements and dockage at idon were paid out of the two thousand pounds from statements made lim by tho captain ; and Mr. Morrison here objects to this evidence |ng taken.] \djourned until the twenty-ninth day of August, instant, at half-past o'clock. ' ' -. August 29th, 1871. [et pursuant to adjournment. Present : Mr. Barker and Mr. Forbes khe part of the plaintiffs, and Mr. Morrison on the part of the de- lants. , le-examination of Albert Betts resumed. Che amount drawn at Callao was not drawn against freight, but the )tain gave a receipt for so much freight as money paid on account of The Sarawak was coppered before I arrived at Callao. Q. — Did I, while at Callao, attend to all the business of the Palm Tree that I were sent there by Mr. Smith to do? [Objected too as too leading.] \8. — Yes. Mr. Smith, when he was in England, saw both the bottomry ids and the other papers I had. He saw them more than once. 1 i often, while 1 was in England, conversations with Mr. Smith con- ning the bottomry bonds, and what I did at Callao. The matter was ced over between us frequently. He said the bottomry bond that I V at Callao he had been told by Mr. Miller was not worth the paper [ras written on, and he believed so himself. He never asked me for bond verbally but once. There wa? no need. The amount credited 58 to tlio Ai'urawak ot \\\ii J^alni I'rccH trciglit was two thousand I'uiir hniulrfj and seventy-six dollars and twenty-nine and oiie half cents — was in Pen vian cnrrency. I went to Callao cxclnsivcly on Mr. Smith's bnsinct!^ but he told nio to attend to any of Mr. Vangfhan's ships that came ini way wliile I would be down there. I received no more of the froiwhtl the Palm Tiec than what I have mentioned. The water cask sTiool that the Eurydice got from the Palm Tree wore only good for dunnagj and could not be sold at Callao. Tliey might bo sold in England, bl they would be as much value to the Palm. Tree a» they would bo to tl^ Eurydice. The captain should have sold them at Melbourne. ALBERT BEITS. Adjourned until 30th August, at two o'clock, r. m. . . August 30th, 1871. j Met pursuant to adjournment. Mr. Darker and Mr. Forbes were \\ sent on the part of tlio plaintiffs, and Mr. Morrisoii on the part of t| defendants. The testimony of Captain Bcttsliaving been conchidod, the matter is a, journed until tfie thirteenth day of September ne.\t, at two o'clock, p. I Skpi'embkr 13th, 1871. Met pursuant to adjournment. Present as before. Adjourned until the nineteenth day of September, 1871. Sei'temkek I'^tli, 1871.! Met ])ursuant to adjournment. Present as before. James Robinson called, and being sworn, says : I am one of tlic plaintiffs. I am one of the executors of the Im Thomas Vaughan. 1 know the firm of D. & T. Vanghan. I have be in their employ for about twenty years, as their clerk and book-keep 1 have, during that time, had an intimate knowledge of their busind I know Mr. James Smith and his son Robert. I know this vessel, t| Palm Tree, that has been spoken of ; and I also know the premises i scribed in mortgage in qr.ostioii, known as " Smith's Building." I knJ the two mortgages put i;i evidence — the one on the Queen's square pj perty, and the one now in course of foreclosure. [The paper marKJ A. 0. N. 8., Avhich had been proved by Mr. Smith, is now handed to t| witness, who snys] — The signatures to this, are the signatures of Jain Smith, David Vaughan, Thomas Yaughan, and Henry Vanghan ; ana am the subscribing witness to it. The date of the paper is thirty-fij day of December, A. D. 1864. [The paper is put in and read.] paper [now put in the witness' hands] is the mortgage of the ship spolJ of in the paper just read. [The mortgage is marked D. c. n. s., and! dated the 20th June, 1865, and is put in evidence.] The mortgage is[ the ship Palm Tree. I was Clerk for Messrs. D. & T. Vanghan at I time the Palm Tree was being built. This account, marked o. k. July 8, 1871, is Messrs, D. & 1". Vaughan 's account against Mr. Smil The account is in my hand writing, and the monies included in it as pi L U8T 30t]i, 1871. UllKR IStli, 1871. Bnildins." IM 3ro paid by luc, and the money went through my hands. I paid the >ney as follows : On January 28th, 1864, $2,000 00 I Receipt B2 put in. On March 31, 1804, 1,000 00 [Receipt C2 put in. ' On April 21, 1864, 1,000 00 Receipt 1)2 put in. On April 30th, 1864, 1,000 00 leceipt £2 put in. On May 10, 1864 2,000 00 icceipt F2, and order attached, put in. On 28th May, 1864 2,000 00 Receipt J2 put in. On June 10, 1864 2,000 00 check put in. This check is signed by D. & T. Vaughan, is for lOOO, and was paid. The check is signed on the back by Robert )ith, son of James Smith, and is put in, and marked c.n.s., Sep- iber 19th, 1871. On date of 27th July, 1864, 1 paid [Receipt 12 put in]. $5,000 00 ["he paper marked A2 put in. This is an oraer for the $2,000 for ich the check of the 9th of June, 1864, was given. On the 13th day of August, 1864, 1 paid $2,000 00 tcceipt W2 put in. This receipt is signed by Robert Smith. On the 23d September, 1864, I paid 2,000 00 tcceipt 02 and order XI put in. The receipt is signed by Robert, . the order X 1 is for the amount for which the receipt is given. On the 6th of October, 1864, 1 paid $2,000 00 Receipt 02 put in. On the 29th of October, 1864, 1 paid 4,000 00 [eceipt H2 put in. On the 18th November, 1864, I paid 4,000 00 Receipt E2 put in. On the 26th November, 1864, 1 jsaid 1,000 00 le receipt is signed by Robert Smith, and is marked S2, and is put in. On the 1st of December, 1864, 1 paid $1,000 00 he receipt is signed by Robert Smith, and is marked R2, and is put This is an order marked Zl, and the body and signature is in the i- writing of Mr. Smith, and is an order for the last two sums that I i as last mentioned. The order is put in. [On the 10th day of December, I paid $1,000 00 le receipt is signed by Robert Smith, and is marked Q2, and is put in. iOn December 13th, I paid $1,000 00 le receipt is signed by Robert Smith, and is marked P2, and put in. is an order dated lOtL December, 1864, and is signed bv James th, and was given for two amounts last above mentioned. The order brked Yl, and is put in. lOn the 7th of January, 1865, 1 paid $2,000 00 \q Receipt i is signed by Robert Smith, and is marked T2,and is put [This order is signed by James Smith, and was given for the last lioned |2,000. It is marked Wl, and is put in. 8 60 On the 4th day of Febrnary, 1865, 1 paid $400 00 Thie is a check tor the amount. Tiiu check is signed on the back hj Robert Smith, and is put in, marked c.n.s., Septeuiber ID, 1871, Nd. :| This is an order for the $400, and is slj^ned by James Smith. The ordej VI, and is put in. On the 9tii day of February, 1865, I paid *2,000 00 This is the receipt, with the order, for tl»e money. The order signed by James Smith, and the receipt by Robert Smith. The papc^ is marked Ul, and is put in. » • On the 24th day of February, 1871, 1 paid $2,000 00 This is a check for the amount. The signature on the back of tlJ check is Robert Smith's signature. The check is marked o.n.s., SopteiiJ ber 19, 1871, No. 3. On the 9th March, 1865, 1 paid $2,000 00 This is the order for the $2,000, and is signed by Janjes Smith. TLi receipt for the money is on the back of tlie order, and is signed by Robe.] Smith. Receipt and order are marked TI, c.n.s., and is put in. On the 8th of April, 1865, 1 paid ict2,000 00 The order for this sum is signed by James Smith, and the order on tli back of tlie receipt is signed by Robert Smitli. The order and recei;^ are marked SI, o.n.s., and are put in. On the 6th of Mf.y, 1865, 1 paid !{!2,000 Oi) The receipt for tlie nioney is signed by Robert Smith, and is markej U2, and is put in. The order for the same is signed by James Smitu; and markea Rl, and is put in. On the 13th of June, 1865, I paid $2,000 00 The receipt for the money is signed by Robert Smitli, and is marlcci V2, and is put in. The order is marked PI, and is signed by M Smith, and is put in. This is all the cash Hiat is charged in the accouii| The b'»,lance of the account — six himdreu and thirty-nine dollars au twenty-nine cent^ — v ji paid by mo to Mr. James Smith, in two suiii One was of the iimovint of one hundred and fifty dollars. This sum uj paid on the order of Jamo^ Smith to Robert Smith. The recei|>t ontf back o^' the order, and the rjceiot marked L2, are for one and the san amount. [The receipt marked L2, and the order marked 01, are put irjj The order is signed by James Smith, and the receipts by Robert Smit| This one hundred and fifty dollars was paid at the date of the recei(i eighth day of July, 1 865. This receipt, marked X2, is signed by Jamj Smith himself, and was given for the last payment of the balance of ti account. I had, previous to this last payment, made up this account jtj as it is now ; and I had, previous to this payment, rendered this accoiij to Mr. Smith. This balance of four hundred and eighty-nine dollars al twenty-nine cents was taken by Mr. Smith as the balance of this accoiuj The interest in this account is made up to the first of July, 1865, at i percent. These three mortgages reftirre<< lo in file cmdit side of the i count are the mortgages upon the Qacea 6 square property, the Pricl William street property, and upon the ship. After the payment of tl[ balance of the account, the Messrs. Vaughan advanced money to ' Smith on the freight of the ship. The ship sailed from here to Liverp with deals. I was present when Mr. Smith and Messrs. Yaughan at thJ office in Saint John talked about the advance being made upon the frciJ ith. The papc m the sliip. Mr. Smith said it was inipoasiblo fur iiiin to jjct tlie ship to ia utiiods ho had more money advanced to iiini, as he had a good many ills to pay. 1 icnow sornethinj.; of the bill of lading heiiiif endorsed over Vaujjlian's by Smith. Tiiia order fuurked Ql, was signed by Mr. Inith, and the body is alsd in his hand-writing. Upon this order I paid \e $2,000 to Robert Smith, and the rceeijit endorsed on the bacu is ;ned by Robert Smith. The receipt marked Nii, is .signed by Robert inith, and is for one and the same amount as the receipt endorsed upon ie order. [The order marked (^1, and the reeeij)t marked N2, are put This order marked N I, is in Mr. Smith's hand-writing, and is signed him : it is an order for |;0,200. I paid on tiiis order $0,000. The ^eipt endorsed on the back is in the hand-writing of Robert. The re- ipt marked M'2, is for one and the same amount. [The receipt marked 13, and the order marked Nl, are put in.] The reason I only paid ,000 on this last order was, that wo had only agreed to advance 1,000 on the froighv, and this order made up $200 more than the 1,000. This eight thousand dollars was advanced by the Messrs. lughan on the first freight of the Palm Tree from here to Liverpool — fon her deal freight ; and this sum is not in any way included in the iount which I have been speaking of, and made up to thefirst of .July, 105 ; nor was it included in any of the three mortgages. It liad nothing ]do with any of them : it is entirely a separate transaction. Messrs. k, T. Vaughan received the freight upon which this advance was ide. [The account last spoken of is again put in the witiiess' tiands. Id he says] — In addition to the amounts of cash paid, as I have already Id, there are the following amounts charged against Mr. Smith, as llows : Ou the 18th August, 1864, paid duty, per Eleanor,.... $30 36 ?his was paid for outfits for tlie Palm, Tree. The duty was paid here me for iron brought out by the Eleanor, and the goods upon which |s duty was paid were delivered to Mr. Smith. This is the invoice of iion marked c.n.s., September 19, 1S7I, No. 4, and is put in. On 23d day of August, 1861, 1 paid duty on shipment, per Princess Royal, $156 40 This shipment was for Mr. Smith. Ou September 1, 1864, I paid freight, per Eleanor,. ... 78 40 rriiis was on goods for Mr, Smith. On the 3d of September, 1864, I paid top wharfage on goods, by the Eleanor, 4 14 ' iThese were the same goods 1 have sjioken of for Mr. Smith. On the 7tli of September, 1864, I paid for top wharfage on goods per Sea Gem, 1 84 .liose goods were also for Mr. Smith. On tlie same day, I paid for freight, to Princess Boy al, 92 97 This was also for goods for Mr. Smith. On the 2.5th September, 1864, 1 charged for invoice of goods, per Sea Gem, 48 14 produce the invoice. The goods mentioned in the invoice were ivered here in Saint John to Mr. Smith. Messrs. Miller & Mossman, jiinst whom the invoice was made out, were Messrs. Vaughan's agents Liverpool. The reason the amount was charged as cash on the 27th 02 P July. 1864, is that tliat was the date of purchase. [The invoice is put in (under objection from the Attorney General) and marked o.n.s., Sep| teraber 19th, 1871, No. 5.] „ Adjourned until the twentieth instant, at ten o'clock. September 20th, 1871. Met pursuant to adjournment. Present as before. The examination of James Robinson resumed. As to the item charged in the account on September 20tli, 1864i Eleanm' and Princess Royal cash, 6th July, three thousand two hundrea and sixty-four dollars and forty-oight cents, the witness says as followsj There are a number of invoices charged under that head. The first onj is an invoice of iron and spikes, per Eleanor^ £261 6s. 6d. sterling ; tli^ next is iron, per Princess Poyal, £69 4s. 5d. sterling, less two and one half per cent, ofi*, making it £67 98. lOd. sterling; the next charge! yellow metal, £345 14s. Id. sterling, less five per cent, ofi", making i| £328 83. 6d. sterling ; the next is the shipping charges in Liverpool upon those j'oods, per Eleanor and Princess Eoyal — per Princess P(nial\ £1 123. lid. sterling; do., per Eleanor^ £8 16s. lid. sterling : the total amount being £667 143. 8d. sterling ; to which is added the exchangi and premhim, ten per cent., making the whole $3,264.48. [The invoicel makmg up this amount are put in, and marked as follows : the first o.n.sI September 20, 1871, No. 1 ; the second c.N.e., September 20, 1871, Ncj 2 ; the third c.n.s., September 20, 1871, No. 3 ; the fourth c.n s., Sej;! temb-r 20th, 1871, No. 4.] This is the way that I make up tLe itenT $3,264.48. The meaning of the discount stated upon two of the invoiceJ one at two and one-half per cent., and the other at five per cent., is thai these amounts were taken off for paying cash. The reason the amv,aiil is charged cash first July, is that the cash was paid at that time. TliJ goods included in these tour invoices wore imported by Messrs. D. & Vaughan for Mr. Smith. These goods were imported by arrangemend made with Mr. Smith, and were materials for the Palm Tree. Theij was a verbal understanding between Mr. Smith and D. & T. "Vaughaj that they were to import for Mr. Smith goods and materials to be usej in the construction 01 this ship. These goods mentioned in these invoice were delivered to Mr. Smith. He sent his own teams to the vessel, anil got them ; and I saw some of these very goods go into the yard wlierj this vessel was being built. On the twenty-first day of Septembeif 1864, 1 paid three dollars and seventy-seven cents, freight per Sea Oem,(\ some iron for Mr. SmitJi. This was upon the invoice I spoke of yestej day, $48.14. The item on twenty third September, 1864, top wharfagJ seventeen cents, I paid on the invoice per Sea Oem. On the 30th Setf tember, I paid top wharfage $3.80 : this was for top wharfage upon soml of the invoices for Mr. Smith. On October 5th, 1864, I paid $1.70 foT telegraph to New York, about getting some locust treenails ; Mr. SmitI asked uie to telegraph to New York ; he was anxious to get the trel nails ; they were for the Palm Ttee^ and they came. On October 3l8| 1864, 1 paid for fourteen bars of strap iron $68.67 : the iron I delivered t| Mr. Smith niyself, out of Messrs. V aughan's store ; this was the casl price. On November 17th, 1864, 1 paid $32.65 for freight of treenailj o iber 20tli, 1864i New York ; these were the treenails for wliich the telegraph was On the second December, 1864, I paid for invoice of these tree- 8 $309.80 ^old ($673.48 United States currency); this wae at a dis- nt of fifty-tour per cent. This is the invoice marked o.n.s., September 1871, No. 5. [The invoice is put in.] These are the treer ails upon which id the freight ($32.65), and for which 1 telegraphed ; these treenails e delivered to Mr. Smith, and I saw the same treenails in his yard. December 31st, 1864, Messrs. Vaughan charge invoices of goods per en, $2,567.52. This amount is made up — [The Attorney General icts to the invoices being put in ; and it is agreed by counsel on both 3, that the invoices are all put in subject to objection] — by three in- es and some shipping charges. The first is an invoice of some knee amounting to i;443 2s. 2d. sterling. The second is for some re- iron, amounting to £19 15s. 3d. sterling, with a discount of two one half per cent. oflT both these amounts for cash — making the two nnts £451 68. Od. sterling. The thii'd is for two tons of oakum, £48 ing, nett cash. The next charge is for shipping charges and in- nce on these goods, £25 17s. 6d. sterling ; making the total amount 525 38. 6d. sterling ; which, at ten per cent, for premium and ex- ge, makes $2,567.52. [The invoices are put in, and marked as fol- : O.N.8., September 20, 1871, No. 6 ; c.n.s., September 20th, , No. 7; C.N.8., September 20, 1871, No. 8; c.n.s., September 871, No. 9.] On the twenty-ninth of November, 1864, these goods charged as cash — that is, the time they were paid for. These goods came in the Haven, were delivered to Mr. Smith. I saw them Irwards in his own yard. They were goods imported by Mr. ghan'sfor Mr. Smith ; and they were material necessary for the con- 'ion of this vessel. The next charge is duty on goods per Haven, 76 duty upon iron. I paid this duty myself. The next charge is ty fifth January, 1865, for top wharfage on goods per Haven, $10.63. id the amount myself. The next charge is for freight, per Haven, '.40. I paid it to Mr. Wallace, the owner of the Ha/uen, on the third of February, 1865. This was the freight on these same goods, the fifteenth day of February, I paid for recording one of these tgages that Mr. Smith gave Messrs. Vaughan, $5.60. This was the 's square mortgage. I paid the amount to Mr. Drury. On the eenth of March, 1865, is the next charge for thirty bars of yellow 1, $450.52, I delivered this myself to Mr. Smith ; it was some we in the store in Saint John, and was for fastening for this vessel, was the cost of the thirty bars, and the cash jirice at the time. The charge is on the twentieth March, 1865. Invoices of sundries per *, and some shipping charges ; in all, $5767.44. The first is an in- e of rope, amounting to £547 7s. 2d. sterling. The next is an in- |e of anchors and chains, amounting to £350 8s. Id. sterling — ither making £897 15s. 3d. sterling, upon which there is a discount and one lialf per cent, for cash, amounting to £22 188. lOd. ster- making the nett amount of these two invoices £874 168. 6d. sterling, next invoice is for canvas, amounting to £280 168. 9d. sterling; which there is five per cent, discount for cash, amounting to I Os. 9d. sterling ; making the net amount of this invoice £266 168. Ing. The next charge is for shipping charges, £38 Is. 8d. sterling ; total amount of the three invoices and the shipping ciiarges, amouni £1,179 143. Id. sterling; which, at ten percent, for the rate of excliaJ and premium, makes the wliole $5,767.44:. [The invoices are putf and marked as follows : c.n.s., September 20, 1S71, No. 10 ; c.n.s., fjj teraber 20, 1871, No. 11 ; o.n.s., Septetnber 20th, 1871, No. 12.] Thij charged as cash, on the 18th of February, 1865. This was tlie timef goods were paid for. These goods by the Kalos were delivered t6, bv cash from ship's boat, £10 sterling ($48.66). This wa boat which Mr. Thomas Vaughan sold from the Palm Tree in Englaij and 1 credited it by direction of Mr. Vaughan. I don't know of the s myself. I took it from Mr. Vaughan. I saw the entry in his own bo made by himself. The next is May 23d, 1867, received insurance clail per Palm Tree, £1,052 lis. 6d. sterling, or $5,122.51. That was insj ance collected in London on voyage to Melbourne. I know this fnl Dale & Spring's account, our agents in London, and I know it from Henry Vaughan also; and i credited the amount to Mr. Smith,! direction of Mr. Vaughan, as cash, ninth May, 1867. The next iteml by cash paid balance to Captain Betts, balance trom ship Palm TreeJ Cailao, in March 1867, $1,174.40. I got this amount from Captsi Betts. When Captain Betts returned fl'om Cailao, he furnished me wl an account of his expenses. This is the account. [The witness refers] a paper which he holds in his hands. The paper is put in, and mark C.N.8., Sept. 27tb, 1871, No. 1.] The total amount of his expenses | Oallao, and going and returning, amounted to $960.57, United Sta cnrrency, according tu the statement Captain Betts gave me. Capt Betts had in his hands from the Paltn Tree the sum of $2,475.94 Fe vian cnrrency, equal to $1,918.90 New Brunswick currency ; from tH amount the expenses account, equal to $744.50 of our money, are i •mmmmr 'I Ell 27tlj, ISTl iicted, leavinj* ft balance of «(1,174:.40, which is credited to Mr. Smith, le next item is April 9tli, 1868, by cash sale of Palm Tret iti London, 0,000 Os. Od. sterling, or $45,666 66. Thid amount is made up with terest to the fifteenth of February, 1868, the time the bhip was sold, which time I made a balance due of $3,436.88. Q. — Is the live thou- d pound mortgage in any way included in this amount ? An9. — No ; as Nothing to do with it ; it is separate and distinct from it. Q. — id Mr. Smith at any time since this account was rendered to him, ob- it, or make any objection, to any of the charges tir credits in it ? [Ob- ted to by Mr. Morrison as too leading.] Ans. — No. Q. — At the tom of this account, on the credit side, I see the following raemoran- The cost of suit against ship Palm Tree in the Admiralty Court jondon, G. B., is still pending, and any expense is still to be charged & T. v., per J. R. Was that memorandum on the account you ren- ed Mr. Smith precisely as it is there ? Ana. — Yes ; exactly. The inal of this memorandum is also in my hand writing. I mean by it memorandum, there were suits pending in London against the Palm le, and Mr. Vaughan had to find the money to carry on those suits. Smith has never paid this balance of $3,436.88. djourned until 2Sth instant, at eight o'clock, p. M. •' • ' '^ Septembku 28th, 1871. [et pursuant to adjournment. Present as before, and the Attorney teral with Mr. Morrison. ;•;.,.. Examination of James Robinson resumed. produce the account of Captain Bettfi that he furnished us of his ex- see in London, amounting to £34 4s. 1 Id. sterling. [Mr. Morrison fects to going into this account, or giving any evidence of its con- Is.] The portion of the account footing up £34 4s, lid., and between tnarae in two places written is put in (subject to Mr. Morrison's ob- lon.) [The portion put in is marked c.n.s., Sept. 28, 1871, No. 1.] >r 1 rendered the account marked c.n.s., Sept, 26th, 1871, No. 1, 1 lived from Mr. Smith at our ofiice in the usual way this letter. This Vis dated 23d April, 1S68, and is from James Smith to D. & T. Ighan. [The letter is put in, and read and numbered, and marked bllous : C.N.8., Sept. 28, 1871, No. 2.] Q. — I see by this letter that [Smith wants an account of the disbursements at Melbourne, Callao, jnstown, and London, and of the freights. Had Messrs. Vaughan of those accounts? Ana. — They had none of the Melbourne or 10 accounts (except Captain Betts' at Callao). The Queenstown ac- |t8 I never heard of: they never had them here. The London ac- [ts I have seen ; we have had them here : they were Lloyd, Low & accounts, R. A. Munn, Miller & Co.'s accounts, and Mr. Wills' ac- \ts. Mnnn, Miller & Co.'s accounts were of Liverpool, and not of Lon- These accounts of Lloyd, Low & Co. and Munn, Miller & Co., are ^es of which I have already spoken, and copies of which I furnished aimer, as I have already stated. I think I did not reply to this of Mr. Smith's. Q. — Do you know whether .Mr. Smith had, at ime, or previous to that time, the Melbourne disbarsements ac- money, are(Hts? [Objected to, unless, «fec.] Am. — I think previously to this I 1871, No. 1, verpool, cash charge con slfit unt with D. i sen shillings [ice, £10 15s. 1 ,£3 lOs. Od.8 y thing of tl er & Co. to D cts to this t vrge them to terling, were p Tlie next itPin 1, cash first account furnis tidon previous his case. I kn rom here to L: time that he » Morrison obj arked cn.s., S int of $46,71H, . dollars, with is dated the 1 jndered it to unt is, Novem 66). This w Tree in Englai know of the in his own b insurance claii That was ins know this fr now it from Mr. Smith, 'he next item Palm Tree, t from Capt rnished me v?| witness refersj in, and mar his expenses , United Sti J me. Cap $2,475.94 Fe icy ; from tl 73 saw the Mc'U)onnic tlisbiirsornonts accounts in -Mr. Smith'ij possessiorj Q. — Since this acconnt «^'a8 — I mean tlie third account — rendered Mrj Smith, have you made any charges against Mr. Smith on account of tliJ Palm Tree f [Objected to.] Arts. — Yes ; they have. [Mr. MorrisoJ objects to any cnarijes that may have been made since the commencemenl of tliis suit,] Tiio tiret charge is on the 18tli of July, 1803, cash romittp^l Mr. Wilis on account of the law suit in London, £107 48. 8d., equal ij| •52S.98. That was remitted by S. Vaiighan & Co., of Liverpool ; thej had the money in their hands, and were ordered to pay it. [Objectecj to.] The next charge is £200 Us. Od. to Mr. Wills on account of expensetj This money was sent from here. [Objected to.] The money was eei on the sixteenth day of November ; it was sterling ; and in ourcnrrencjj amounted to $986.66. 1 know it was received. [Objected to.] Th money was sent by check on the Liverpool Union Bank. [Objected toj The next charge is March the 9th, 1870, cash paid James J. Kaye, i Saint John, Barrister. The acconnt amounts to $26. I paid the amoucj of it to Mr. Kaye. [The account is put in, and marked c.n.b., Sept. 28tlil 1871, No. 3. Objected to.] O. — Had the services charged in this count any relerences to the /^am Tree? [Objected to.] Ans. — Yi they had entirely. The next charge is February 9th, 1871, remittanJ to Lloyd, Low «& Co., to settle steamboat bill, £^7 14s. Od. sterling, equJ to $428.75. [Objected to.] ^.— What did this bill refer to ? [Objectff to.] Ana. — lo the Palm Tree. The money to pay this bill was rem; ted by S. Vaughan & Co., of Liverpool. [Objected to.] The directioj to pay this to S. Y ghan & Co. were in writing. The credit on til last account i asfjiiows: Sept. 28, 1870, balance of freight per Pm Tree^ in London, £101 8s. 5d. sterling, equal to $498.56 currency. TIf ends the credits on that acconnt. ^.— What do you make the balanl due by Mr. Smith to D. & T. Vaughan at this date ^ [Objected tJ Ans. — $4,913.71, exclusive of interest on the last account : this incln(i the balance of $3,436.88 previously due. This last account has nevj been rendered Mr. Smith. Q. — Are these charges of money paid to! Wills, the expenses to which you alluded in the memorondum append to the third account, rendered to Mr. Smith ? [Objected to ] Antk Yes ; 1 have never seen Mr. John Wills write. I had had correspondenj with him at our office. I have written letters to him, and have recei^ letters in reply. From correspondence I have had with him, I have] doubt but these papers arc signed by him. . • Question by Mr. Morrison — Do you know, of your own knowlcdl whether any of the letters received by the Messrs. Vaughan from \ Wills, to which you allude, are written by Mr. Wills personally ? Aru\ I do not know. ]\fr. Barker resumes the examination. Iknow of Messrs. Vaughan writing letters to Mr. Wills — [objected tol and their receiving replies to them — [objecied to] — and judging frl the signatures to those letters, I believe the iguatures to these fl letters to be the signature of Mr. Wills. [Mr. Morrison objects to f question and the answer given by Mr. Robinson.] These letters, atl request of Mr. Barker, are marked Sept. 28, 1871, No. 4 ; Sept. 28, iSAdJG No. 5; Sept. 28, 1871, No. 6; Sept. 28, 1871, No. 7; and SeptpJtobe ,u. ra IsTl, No. 8, for the jmi'poso of identiticatioii, should they bo afterwards Iffercd in evidence.] The Messrs. VHUjjhan wont into receipt of the entsand profits of the mortgaged iireujises, on the first of August. 1868. ["rom that time to the present, the whole amount of the rents received, |3,706. [Ol'ificted to,] In addition to that, they received $45; in all, },7&1. Q' — What is tiie total amount paid out by Messrs. Yaughan on 30unt of the mortgaged promises? Ane. — 1(1,363.17. [Objected to.] this amount, $231 were for insurance, £456.08 were for taxes and water ^es*; the balance is mostly made up of necessary repairs in Water street — noors bad to be taken out, and new joists and new double floors had to I put in — the old oii 3 were quite rotten. The roof had to bo repaired by ir. Fisher, at a heavy expense ; a considerable item was for masons' work tmber, and materials and painting. These repairs were necessary, and if iey had not been done, the tenants would have moved out — some of them, id for these repairs. Q. — What was the amount the tenants were pay- ^g when you went into possession ? [Ubiectod to.] xine. — George tewart was paying £80 Os. Od. cy. [Mr. Morrison objects, that if this leans what the tenants were paying to any one else than Messrs. raughan, that the witness should not state it.1 John Armstrong was kyhig £75 cy.; Signer Hazazer, £55 cy. ; Irancis Collins, £50 cy. shop was vacant at tJietime we took possession. The premises have een occupied since we took possession, except the flat occupied by jazazer : that has been vacant since the first May last. We got a tenant Ir the shop that was vacant when we took possession on tlie first of the [llowing May — they were J. & H. Foster, and they paid £50 the first ear. In 1869, the building was all occupied ; and in 1870 also. The (tal rental in 1869, was £310 cy. ; for 1870, £310 cy. ; and this present jar two tenants on Water street pay £5 cy. each a year more than they Ud last year ; but tlie upper flat not being rented, the total rental for year, is £265 cy. ; and the hall has been rented this year occa- )nally, aiid we have received £11 5s. Od. cy., which is not included in rental above stated. When I speak of the hall and upper flat, I sau the part that was occupied by Hazazar. The hall occupies the lole of the upper flat, and is for a public hall, and we rent it or hire [out whenever we can. There are two stores on Water street, and two jreson Prince William street, and each store has a flat above it. These, the public hall, make up the entire building. The first rent we re- vived, was on first of August, 1868; and I have collected all the rent ice that time, except two quarters, that two of the tenants had paid r. Smith in advance. I refer to Armstrong and Hazazer. These two garters amounted to £32 lOs. Od. cy. Tlie total amount of $1,363.17 out, is made up of taxes, insurance, repairs, and water rates, which ives to credit of amount received, a balance of $2,387.83, which would to the credit of the amount due upon the mortgage. There has not ^en any interest or any principal paid on the mortgage. The amount tie on the mortgage, would be the principal and interest since the first b.y of July, 1865— less the credit of $2,387.83 received from rents, after kyingthe expenses I have 8}uken of. The arrival of th^Sarauoak was bt known at our office before Captain Betts left for Callao. lAdjourned till Monday evening at eight o'clock, the second, day of Mober next, at 8 o'clock, r. m. T4 OcnoBiiK 2d, 18T1. Met pnrsnant to adjournment. Present as before. Examination of James Robinson resumed. Tlie defendant, Mr. James Smith, and Mr. Henry Vniigliau and Mri Thomas Yaughan, have all lived in Saint John whilst the tranpactioiij concerning the Palm Tree y^ore being carried on. They have all live here for many years— since before the Palm Tree was built. Caj>tai;y Betts did not go to Gallao on Messrs. Yaughan's business. During tit twenty years that I have been with Messrs. Yaughans, they Lavo nci had a lawsuit ; this is the first one they have had during that timJ [This is objected to by the Attorney General.] Mr. Palmer naid thj mortgage on the Queen's square property, that Mr. Smith owne«. Q.- Were the three mortgages the one on Queen's square property, the on^ on Smith's building, and the one on the ship, three distmct transactions.' [Objected to.] Ana. — Yes. Gross-examination of James Robinson. ' I did not hear all the conversations that took pLce between Mr| Smith and the Messrs. Yanghan concerning these transactions. A goo deal may have taken place that I never knew anything about. I was all ways under the impression that these three mortgages were separati transactions. They were made at different times. It was because thejj were made at different times that I regard them as separate transactions! The goods charged against Mr. Smith in the July account were got bjj him, not all at once, but at different times. In the July account — Jnll 1st, 1865 — I credit Mr. Smith with these three mortgages. In that acf count I credited the three mortgages as against the whole account, aiij not any one mortgage to any particular sum. I know this raucll of my own knowledge concerning the arrangement between Mrl Smith and Messrs. Yaughan ; they w^re to buy the goods and seniT them out to Mr. Smith. There was, as a general thing, always one of thj Messrs. Yanghan in England. Mr. Thomas Yaughan was, I think, in England when these goods were purchased. I think, in most instanceiL when, in the invoices, Messrs. Vaughan are charged with goods, thej! Furchased them themselves ; that is, Thomas Yaughan purchased theftj] have no knowledge of the bottom being torn off the account raarke C.N.B., September 20th, 1871, No. 11 ; neither have 1 any knowledge ol any thing being torn off the account, marked o. sr. s., September 20, 1871J No. 12. These accounts are just as they were received. We impor! goods for other people similar to those goods, and we have done thii three or four times. It would be some trouble for a man to attenij to these things in England. Mr. Yaughan expected for this to ge: nothing, except interest for his money that he was advancing Thj money of itself was worth interest. He has charged two and onj half per cent, commission on the business. You 'will see the item iq the account. I mean to say that the two and one half per cent, coral mission was charged on invoices and on the moneys advanced. Thf two and one half per cent, was on the $40,000 ; and they had in tbattJ import the goods. Q. — Will you swear that the two and one half pel cent, commission which you have charged in the account, was expressll meant as commission for Mr. Yaughans services in connection with thl I wUti^ i 75 >rtatioD of these goods. — [Objected to by Mr. Barker, on the ground it appears by the agreoineiit what the comrnissiong were for.] . — Tliere wa8 no coniniissiuii cliargcd, except what ia covered by tlie feeinent. The agreement Hpcake for itself. That is all I know about J I refer to the agreement of December, A. D. 18(54. The two and [half per cent, commission was charged for the ten thonsand i>ound8 inced on the ship. That sum was part cash and part goods. There [of the July, 1865, account, about ^48,000 and upwards in cash, the ICO, of about $20,000, was for goods, interest, and other clnirges. I than $20,000 were for goods imported. The charge of two and lalf per cent, was not made on flie goods imported, but upon the .int of the mortgage. Mr. Vaughan made no more profit on these irt:ilinii8 than wnat you see in that account. It is not usual for [rs. "Vaughan to import goods for nothing. I know of no case where ^augli.'ui imported goods for nothing: this is the nearest to it that I of. Messrs. Vauglmn's did not make a red cent out of th')>c iii- — not a red. I will swear that the amounts charged for these in these invoices were the amounts in every case j)aid for them. swear that Messrs. Vanghan paid for these goods the amount they ted Mr. Smith for tlietii 1 know this by Mr. Vaughan'sown accounts: [w by Mr. Vaughan's principle-, too ; I mean by Messrs. Vanghiiii's |nt8, their own accounts when they came home and theiraceonnts with agents. The accounts with Messrs. Vaughan's agents would be their its current with them. By their agents I mean Miller & Mossman, Ifterwards Munn, Miller & Co. And Mr. Vaufjhan bought some I there direct from the purties. In the cases wliere the goods are 3d directly to Messrs. Vaughan might or might not have paid for Idircctly. lie might, in some cases, have got orders for them. We Igot the accounts shewing these invoices. I shewed them here. hy did you not givethe^^f; invoices to Mr. Smith "i Ans. — Because belonged to Mr. Vaughan. Q. — They belonged to Mr. Smith, did iot? Ans. — They were imported for him, but I wanted vouchers accounts. I furnished i.im or Robert copies of all of them. I am ttain that I gave hi.n full dotp'V' of them. I may have given me- Sdums of them, but they -.cre pr aduced ; he saw them all. Q. — linvoice marked c n.s. '•~?e[.ti.iinbtv 30th, 1871, No. 10 [the invoice jin witness' hands], «li 1 yo.i g^ 'P Mr. Smith a copy of it, or only lorandura? .4"?«, — 1 cp.iuot Hr.v I may have given him a copy, a memorandum t ; ivls Smir' ^r Robert. When I speak of me- lum, I mean thu luUu an, 1..1, of the invoices, ihe nature of the [and the name of the vessel geiiMnilly. As to all the invoices, and " them, I cannot bay whether i gave a copy of them or thi« memo- of them. In some cases I know 1 gave a copy. In some eases I hand 3d the invoice- to them, but I won't swear positively. Q. — ke of these invoices I 6ee there are two and one-half per cent., and le of them five per cent, dif" ount diarged, is the usual discount for |nd what is the reason of the ditiurence ? Yes ; that is the usual it ; and in those cases where there is five per cent, discount, Mr. ^ot off two and one-half per cent, better than other parties. bination postponed until Wedueaday evening, ftt eight o'clock, the linstant. • " - 10 . T6 October 4;th, 1871. Met pursuant to adjournment. Present as before. GroBB-examination of James Robinson continued. ^.— Will you sbew from your books your accounts ^(^ith the parti to whom you credit the several shipments referred to in the invoices! ready put in ? Ans. — The witness, by reference to his books, shows tij the shipments are credited to the scvoral parties in England from \^ they were purchased, at the price charged against Jilr. Smith, fcummary of the answer is thus entered by consent of counsel on sides.] Q. — Were the several advances represented by the mortgageJ the Queen square property, the Prince William street property, andf ship, made by Messrs. D. & T. Vaughan ? Ans. — Yes; tney were ;i these several mortgages were all taken for and on the behalf of I Messrs. Vaughan. The mortgage on the ship to Henry Vaughan for the firm of D. & T. Vaughan. All the mortgages were for andj behalf of Messrs. D. & T. Vaughan. The Queen square mortgage] paid on eighth of August, A. D. 1868 ; the amount paid was $9, that is to say, $8,000.00 principal, and $1,490 for interest. Q. — 1 was the gross freight of tne I*alm Tree from here to Liverpool ? Ar\ I can tell by reference to the papers ; accounts of the Palm Tree's i ings and disbursements were not always rendered to us. Q. — Did! not from time to time get from England accounts of her earnings] disbursements ? Ans. — We got from Miller, Mossinan & Co. her frej list, and an account of her disbursements inwards connected with freight. We got no account of her disbursements outward on tlie \ bourne voyage. There was an account for di3bui*sement3 paid by I Vaughan to Munn, Miller & Co. ; but I do not know, without lookinf the account, whether they were inward or outward disbursements. Miller & Co. were the agents of Messrs. Vaughan ; before they wereJ agents. Miller & Mossman were their agents, but they failed about! time, between May and July, 1866, and after that Munn, Miller ^ became Messrs. Vaughan's agents, and have continued as such fronij *ime. I know of my own knowledge that the account marked cj September 26, 1871, No. 6, was paid. I was not in England when i| paid ; it was paid in England ; I did not see it paid. Munn, Millj Co. did not tell me they paid it. Mr. Vaughan paid the bill on hlsl responsibility. I do not know wha*: arrangement he made with Mr. SJ about it. I do not know wha) right Munn, Miller & Co. m make charges against the Palm Tree, or how they came to do never got a copy of any agreement had with Eaines. I never reel the freight list or passenger list of Palm Tree from Liverpool to I bourne ; such lists never came to D. & T. Vaughan's office. We nevi ceived any accounts from Baines & Co. ; we never had any business! them. We had plenty of correspondence with Miller & Mossmanj kept copies of all our letters to them. We knew at the office of D. i Vaughan that the Palm Tree was going to Melbourne. Q.- Messra. Vaughan ever receive accounts of disbursements of PoZml at Melbourne? Arts. — There was one envelope come from Melbouij Liverpool to Messra. Vaughan, with papers in the envelope, but I c| say wnat they were. 1 gave them to Mr. Smith. 1 knew at the ti| dare say, what they were ; but I did not consider that they codc ^ i ssrs. D. ife T. Vanghau's busiucss. I saw that they wei*6 Palm Tree aers. No other Palm Tree papers came to D. & 1'. Vaughan's office, lept the London papers, and Captain Betts' papers. Tne insurance Iters did not come here to ns. I do not know who had charge of the )irance papers in England ; it wonld bt Mr. Vaughan, or Messrs. ighan's agents. We had no connection out here in Saint John with I insurance papers. I think we had no letters from Captain Griffiths i\ Melbourne or Callao. We might have had. Q. — Did not your urpool agents send you letters, or copies of letters, from Captain ilths ? [Objected to. ] Ans. — 1 do not know. Q. — Could it be pos- that you would receive such, and not know it. Ans.—I would known at the time if such were received, but I do not know now. not know of receiving any letters or papers about the Palm Tree Bright Brothers at Melbourne. All the accounts and papers con- jing the running of the Palm Tree did not pass through my hands, jhave none of the disbursements accounts of the Palm Tree at Oallao, ipt what appears by the London accounts put in, and Captain Betts' hints. 1 went for Captain Betts when he was first wanted to go to |ao. We had three vessels there at that time, I can't say if they all there at the same time, but they were all there when Captain Is was therfe. It was not known here that the Sarawak was at Callao Captain Betts left here, but it was known she was bound there, lit was also known at the office at that time when she had left for \o from Bombay or Aden. The Sarawak had been up, and fixed up Icoppered before Captain Betts left here. The other two ships of Brs. Vaughan that were there at that time were the Eurydice and \John Parher. Captain Betts did not go out there on Messrs. rhan's business. He would not have gone there only for the Palm but whilst he was there, he did some business tor us out there, kiay have saved us something by being out there. We might have to pay perhaps heavier bills had he not been there. We had a new iin in *he Eurydice. But I cannot say whether it saved any money lessn. Vaughan or not, but it might have saved something, as much p passawe, Q. — What did yon give Captain Betts the power of al- ly for— -I mean the power of attorne}' that Captain Betts spoke of ig received from Messrs. Vaughan ? Ans. — [ do not recollect Messrs. ^han giving Captain Betts a power of attorney ; they may have eo. [This question and answer are objected to.] Q. — Have you 3en such a paper since these proceedings commenced? [Objected Am. — Well, sir, I have seen some kind of a paper, but 1 cannot ^hat it was. Q. — Why cannot you tell what the paper was ? Aiis. — U a document of some kind of authority, but 1 do not know its knts. Bjourned until the 6th instant, at ten, a. m. OCTOBEE 6th, 1871. ^t pursuant to adjoarnment. Present as before. )88-examinatiou of James Robinson resumed. -Have you Miller «fe Mossman's account and interest aecouiit for I and 1865 ? An>8. — Yes. Q. — At what date do they charge in- 78 voices per Eleanor and Princess Royals as casli ? Ana. — [Objected.! I cannot tell without looking at the acconnt. [Mr. Barker object*.' the witness looking at the account at this stage of the proceedings.] witness looks at the acconnt, and then says — the invoices per Prir JSoyal, purchased from Hunter & McArdle, were chargi d on July 2l| 1864, £46 14s. 2d. sterling. The next one, per Princess Eoyal, tlf teenth September, 1864, £328 8s. 6d. sterling; bought from Mosil Company, yellow metal. The next one, iron per Princess Royal, seveif July, 1864, £67 98. 9d. sterling. Q.—l see that the yellow metal pj chased from Moss & Co. is charged as cash 13th September, 1864 ; \t\ one of the items charged in your July account, 1865, invoice of sundij per Eleanor and Princess Royal, at $8,264.48, was it not ? [ObjecJ to.] Ans. — Yes, Q. — Why is it, then, that in your account of 1865, against Mr. Smith, you charged the invoice of sundries per ^(^caJ and Princess Royal, wliich includes this acconnt of Moss & Co.'l cash 6th July, 1864, when Moss & Co.'s account appears as cash if September, 1864? Ans. — It was cash 6th July. 1864, as that wasi time the cash was due. Moss & Co. may have given Miller a lij credit, but that was none of our business ; but I do not know this of own knowledge. Q. — Is there any thing on your books, or in any I counts which you have from Miller & Mossman, to shew that as agaij Messrs. Vanghan's these goods were charged as cash 6th July, 1864,: not as cash 13th September, 1804? [Objected.] Ans. — In the bci it is charged against Mr. Vaughan as cash 13tli September, 1864. ij now speaking of Moss & Co.'s account. Q. — The above charge of ij 8s. 5d. sterling in Miller & Mossman's account is the amount of thel voice, with the discount off for cash, is it not ? [Objected to.] -4?!^ Yes. Q. — Why is it, then, that when Mr. Vaughan was charged £328 8s. 5d. sterling as cash on 13th September, 1864, you charged Smith with the same goods as cash £328 8s. 5d. sterling on the 6th J| 1864; and charged him, therefore, with interest for two months seven days previous to the time when Messrs. Vaughan were chatj with the amount of the above account? Ans. — Because Vaughan was liable to pay it that day, and it was bought I cash. Q. — Is there any thing in Messrs. Vaughan 's were liable to pay, the 6th July, 1864? [Objected to.] Ans.—Yai. 'There is a cli3| on the books to show they were liable to pay it on that day. I meaf charge on the })ooks against Mr. Smith. Q. — When did you get Mil & Mossman's account current of the year 18G4 ? [Objected to.] Am We probably got it at the end of January, 1865. Q. — The acca rendered against Mr. Smith, charging him with cash, 6th July, Ij was rendered several months after the receipt by Messrs. Vaughaq Miller & Mossman's account, in which the goods are charged 13th I tember, 1864. I refer to M -ss & Co.'s invoice, £328 8s. 5d. sterll Atis. — Yes. Q. — Where is the invoice of Hunter & McArthur, I Raven, charged as cash against Mr. Vaughan, in Miller and Mossmj acconnt? [Objected to.] Ans. — 19th December, 1864, 1 iharg i^ainst Mr. Smith as cash 29th November, 1864, the day purchaj Q. — The same amount which you charge against Mi. Smith as cash , .November, 1864, and bearing interest irom that date is charged ag«| was your books to show or did pay the amount,! ~" is ft ,. — [Objected.] larkei* objects roceedings.] ' ies per Pri f( d on July 21 cess Boyal^ t' ht from Mo8 %8 Hoyai, sevei rellow metal pi iber, 1864: ; it 1 voice of sund i not ? [Objeci ■ account of idries per Eleai Moss & Co.'ii ears as cash 1 I:, as that was en Miller a li tknow this of •oks, or in any ew that as agai th July, 18G4, %8. — In the bo nber, 1864. I ve charge of £' amount of the jcted to.] An was charged you charged ig on the 6th J two months nan were cha ,s. — Because was bought to show the amount, here is a cli ,t day. I me id you get Mil icted to.] An ^.— The ace 1, 6th July, 1 sssrs. Vaughac tjharged 13th 8s. 5d. ster McArthur, Br and Mossi 1864,1 ".hari lie day purchi ^mith as cash 68 charged agi fcssra. Vaughan in Miller & Mossman's account oij December 19tii, 34? Q. — Then in that account you credit theui with this shipment debit them with payments? [Objected to.] A. — Yes. Q. — Was invoice from the Mersey Steel and Iron Company of £443 2(s.. 2d. ling, included in the invoice of sundries per Raven in your ^ount of July 1865 ? Ans. — Yes, less £J I Is. 2d. discount for cash ; amount charged against Mr. Smith was £432 Is. sterlitjg. This )unt was charged against Mr. Smith as cash 29tli November, 1864. -At wliat date did Messrs. Vaughan's, or Miller & Mossman for ^srs. Vaughan's, pay for these goods ? [Objected to.] Th*; above )unt of £432 Is. Ud., I moan ? [The witness is here asked by Mr. fker if he only knows this from the accounts of Messrs. Miller &Mos8- 1, and he says that is the only way he knows it.] The Attorney Gene- Itlien asks the witness as follovvs : Q — You mean, do you, the accounts lered by Miller & Mossman to Messrs. Vaughar, and now in Messrs. jigliaii's possession ? Ans. — Yes. Q. — You have an account with the key Steel and Iron Company in your books, have you not ? Ans.— Yo,?,, Ijected to.] Q. — Then did you not charge the several sums against Mr. 1th for the different shipments from the information you received |i these invoices and accounts? Ans. — 1 had some other information, other information was from Mr. Thomas Vaughan. Q. — 1 ask you In at what date did Messrs. Vaughan, or Miller & Mossman for them, ithis amount of £432 Is. Od. sterling for the /ot)ds purchased from Mersey Steel and Iron Company ? [Objected to.] Ans. — The pay- It was made in three payments by Miller & Mossman on behalf of Isrs. Vaughan, namely, the 22nd December, 1864, £150 sterling ; the [January, 1865, £150' sterling; the 10th January 1865, £132 Is. ster- niaking £432 Is. sterling. Q. — Why is it that when Messrs. iglian were purchasing these goods for Mr. Smith, they should have fged him for them as cash at an earlier date than they really paid for themselves? Ans. — Becouse they were really settled for by Mr. Ighan giving an order for them on Miller & Mossman at the date of Ihase: this order was in writing. Q. — How do you know any such Ir was given ? Ans. — Because Mr. Vaughan said so. Q. — Were phese several amounts of which you have spoken as having been paid Tr. Vaughan at the several periods later than they were charged to 5mith, the amounts of the several invoices, with the discount off for I? Ans. — Yes ; they were as paid by Miller & Mossman. Q. — Was lara & McArdle's bill for oakum shipped per Raven one of the 2;es made against Mr. Smith in your account of July 6th, 1865, un- file head of invoice sundries per Raven cash 29th November, 1864 ? -It is? Q. — When was such bill paid by Messrs. Vaughan? -The bill was paid by Miller & Mossman the 22nd December, 1864, Icharged against Messrs. Vaughan by Miller & Mossman the same [Objected to.] The amount was £48 sterling. Q. — Was Tinsley rht & Co.,'s accounts for anchor, chains, etc., amounting to £343 198. [terling, one of the items included in your charge against Mr. Smith )ur accounts of July 1865, per Kalos^ as cash 18th February, 1865 ? [—Yes, together with another small bill of £6 Ss. 7d. ste. Q. — |n were these two accounts paid as cash by Mr. Vanghan or by Miller Jasman for them ? Ans. — On the 7th July, 1865. The amount of these two bills was paid M-ith a bill due and paid 7th July 1865; but; stead of charging them against Mr. Smith at that date, we charged li| es cash 18th February, 1865, deducting two and one half per cent, as ! average duty of purchase of the two bills. The canvas account from J Edinburgh Sail-cloth Company, at £28U 16s. 9d., was also indudedj the above charge against Mr, Smith ])er Kalos, cash, Ibth Februaij 1865. Mr. Smith was allowed Jive per cent, on that. The net anioi/ charged against Mr. Smith was £266 16d. sterling. This latter amoii was paid by Messrs. Yauglian at the date of the purchase, so far ai know. I suppose this was the time. Q. — Don't your books show tJ no part of this was paid until the 17th day of May, 1865. [Objected t| Ans. — No. Alexander & Lutt are the agents for the Edinburgh si cloth company. We kept a credit and debit account witn Alexander! Lott to show what we got from them. VVIilmi 1 received an invoiif credited them, and I credited them with this invoice. [Objected This appears by my books shown here. I debit them with the cash mente. Q. — In the account shown here do you debit Alexander & with any sum paid prior to March 17th, 1865? [Objected that there isl account of Alexander «fe Lott shown here at all or put in evidenJ Ans. — I don't, but our agents do. Q. — At what date do your agcj debit Alexander & Lott with i)ayments on such account? [Objected! Ans. — There is a larger sum than that paid for that and other accou| on the 15th March, 1865. Adjourned until the 7th instant, at two o'clock, p. m. October 7, 1871J Met pursuant to adjournment. Present as before. Cross-examination of James Robinson resumed. Q. — The invoice of Alexander & Lott, amounting to £517 7s. sterling, was, 1 think you said, one of the charges included in the clia in the July 1365 account of invoice of sundries per Kalos, cash ll February ? Ans. — Yes, it was cash, less two and one half per cc| making the amount charged against Mr. Smith £5;^3 ISs. 6d, amount was paid by Mr. Vaughan to Alexander & Lott, but I caul say at what time. This stands in the same way ao the canvas accoi I debited Alexander & Lott with the amount when I got Miller &Mj man's accounts on the 17th May, 1865. This was the time I madej debit, but I had received Miller & Mossnian's accounts before this] entered it as cash paid previous to that day. I entered it May 17, if to cash from Miller & Mossman. [Objected to.] I entered £2,000 1 ling that day to the debit of Alexander & Lott. I charged this £2,j against Alexander & Lott's credit, and one of those credits would b cordage account of £533 ISs. 6d. sterling. Although entered at I time, it was paid previous to that. Some of our own books show t' was paid previoi's to that: my day-book shows that it was taken t1 Miller & Mossman's account. Q. — Will you show when it appears! your books to have beeu paid to Alexander & Lott? Ans. — I wil you wi§h me. Q. — What is the date, and what the book, and wh it| form of the entry showing such payment? rObje<^tf;d to; que withdrawn,] The inauranco on the ship I' aim u,."- from Saint J| IL si )CTOBER 7, 18111 Liverpool was done the 29th of April, 1S65: the insurance .vas Bcted in England. I did not do it niyselt'. I have not the policy of insurance. 1 did not pay the jireininni. Mr. Vanghan or Miller & [ssinan paid it. I know it by getting a debit note tV >na Miller ife Moss- I tuink we have the note yet. I have no recollection of giving note to Mr. Smith. The ship sailed from Saint ilolm after the mort- to upon the ship was given, but 1 cannot tell the e.xact day. The inty-ninth of April was not early to insure a slip that was not launch- intil the ninth of June. Miller & Mossman's account with us will when the insurance was eifected. 1 know of my own knowledge the insurance was eifected on the twenty-ninth of April. The in- jtnce was eifected in England. I was not in England at the time. I lered some accounts to Mr. Smith and Mr. Palmer. Q. — How do suppose Mr. Smith could tell anything about these accounts when lad not them. Ans. — I do not suppose anything about it. Q. — m you rendered this July uccomit to ftlr. Smith, did you inform hitn goods were charged him with interest fioni an earlier date than the is at which you paid for the goods i Ana. — I think it would be ler an unreasonable thing for me to make such a statement as that. \e copies of some accounts that have been put in evidence were de- red to Mr. Palmer. The accounts marked o.n.s., September 26th, |1, Xo. 2, No. 3, were given to Mr. Smith. They were given to him after the time they bear date, 16th April, 1868. They were given [on or about the I6th April 1868. The letter of Mr. Smith of 23rd 1868, acknowledges the receipt of them. This letter is marked o. September 2Sth, 1871, No. 2. Q. — Did you furnibh Mr. Smith the particulars of the sale of the ship, to whom sold and by whom as requested by Mr. Smith in his letter of the 23rd April, 1868, the ir just above referred to? AitS. — I could have told him to whom bhip was sold, but I did not think worth while to bother my head kt it. I had no particulars of the sale to furnish him. The ship was pMes>:rs. Adamsonife Ronaldson, of London, at auction by an auction- jShe was sold by Mr. Vaughan under his mortgage. I never kept any lints against the Palm Tree. I kept the accounts against Mr. Smith when i anything to do with t\\Q Palm Tree. Messrs. vaughan have now not Jnterest in the Palm Tree, and never had, except through the tnort- Messrs. ^''n.ughan have no interest in the firm of Adamson & ildson. Q. — Have the Messrs. Vaughan's, either directly or indi- I, any interest in the Palm Tree, or her earnings, or have they had [nterest, either directly or indirectly, in the Palm Tree, except that jrtgagees from Mr. Smith ? A?is. — None whatever. Mr. William jhan never had any thing to do with the Palm Tree, and no one of ^arae of Vanghan ever had any interest in iier whatever. I do not who are the owners of her now. I do not know that Mr. William (han was the first purchaser of her under the mortgage. Mr. Wil- [Vaughan did not purchase her at all. / know the name of the pur- er from having made out the transfer, and put it through the CuBtom te. I will swear positively that William Vaughan never had any to do with her, nor any V anghan, nor any of their friends. We [thoCallao accounts and the London aceounts of the PcUm Tree, Hs CajUain Belts' accounts and the London accounts shew. Cap- 82 tain Betts gave us accounts on his return from Callao. The reason did not give theaccounts that CaptrJn B( ^s gave us to Mr. Smith wj because I thought it a waste of time. Q. -Was it for the same reas( that you did not give othor accounts, or cojit^ of them, of disbursemeni and charges at London to Mr. Palmer, until requested to do so by Palmer in 1868 ? Ans. — Yes. I do not know of any letters being ceived by Messrs. Vaughan from Captain Griffiths whilst at Melbou or Callao. Messrs. Vaughan never got let'srs from Bright Brothers, Melbourne, concerning the Pai!wi Tree. Q. — Did not Captain GriffitI iinder date of 30th October, 1866, write a letter to Thomas Vaughi from Melbourne ? [Objected to.] Ans. — I don't know any thing aboj letters sent to Liverpool. No such letter was received at Saint Jol that I know of. Q. — Did any of the Messrs. Vaughan's receive fr Captain Griffiths from Melbourne Messrs. Bright Brothers & Co.'s counts, also vouchers, and Lloyd's certificates and surveys, any or all them ? [Objected to.] Ans. — I have stated already that an enveloj was received containing papers, which 1 handed to Mr. Smith. Wf they were I do not know. I do not know whether or not this enveloi was addressed to D. & T. Vaughan. I saw the envelope in one of drawers in D. & T. "V aughan's private office. The seal was broken know this because I had it in my hands. I know the envelope containi Palm Tree papers, because Mr. Vanghan said they were papers connectj with the Palm Tree., and told me to give them to Mr. Smith. Q.—' you know whethc- Mi*. Thomas Vaughan received a letter from Bri Brothers & Co., from Melbourne, dated 26th October, 1866? [Objeci to.] Ans. — I do not know any thing about it. Q. — Do you kd whether Mr, Thomas Vaughan received a letter from Bright Broth & Co., of Melbourne, dated '26th October, 1866, in which it was stat " We now beg to forward yon the following accounts, account current! Palm Tree, and disbursement account" ? [Objected to.] Ans. — I kft nothing about it. I don't know anything about the account current, the disbursement account, yon refer to. The captain who first wi home in the Palm Tree was called Captain Feivouz. He was not gaged by Messrs. Vaughan. I am sure they did not engage him. I a great deal about the Palm Tree whilst she was building. I don't member Mr. Vaughan telling Mr. Smith to put the bilge logs in. I do| remember hearing him recommend Mr. Smith putting them in. I do| recollect any of the Messrs. Vanghan directing Mr. Smith to put inexl fastenings. Q. — When iron knees were being put in, did you not lii David and Henry Vaughan tell Mr. Smith that they wanted au i breast-hook over the upper ports, and three crotches in the run, with i knees attached ? Ans. — No ; nor nothing of the sort. I heard no c versations between the Messrs. Vaughan and Mr. Smith concerning tb] things. I heard no conversations between Messrs. Vaughan and Smith about putting extras in the ship. I think I saw the mate named in the invoices going into the yard of Mr. Smith. I did not the canvas going into the yard ; it went into the sail loft. Adjourned until the thirteenth October, 1871, at half-past ten o'cL .:]:;( "U. 88 October 13th, 1871. [et pursuant to adjournment. Present as before. krosB-exatnination of James liobinson resumed, [did not see the canvas go into the yard. I did not see the rigging into the yard either. 1 did not see all the materials go into Mr. fth's yard. Q. — Did you not open or take the papers from the en ve- in Mr. Vaughan's office, to which you referred in the examination le last sitting ; and in the presence of Mr. Smith state what they pur- eed to be, namely, a statement of the accounts of the ship Palm at Melbourne, and papers connected with the claim upon the insurers loss ? Ans. — I think not. I saw the envelope ; that is all. I have recollection of opening or showing them. I will not swear that I did Ido so ; but I am pretty sure I did not ; if anv body showed them, it ]Mr. Vaughan himself. I will swear now that I did not show any fers to Mr. Smith connected with the Melbourne voyage, to the best \\j knowledge. I do not know how that letter was addressed. 1 do "jnow that it was addressed to Mr. Thomas Vaughan, care of Miller toasraan, Liverpool, and the address then altered to Saint John. Q. — |e you a copy of a letter written by Messrs. Vaughan to Miller & pan, on or about January 15th or 19th, 1866 ? Ans. — Yes. The Inal letter was not written by me. I copied it into the letter book )tter press. Q. — Can you in any way from Mr. Vaughan's books tell kontentB of such letter ? Ans. — I can by referring to the letter book, [what was the contents of such letter ? [Objected to.] Ans. — (nnot say without looking at the letter book. Q. — By refer- then to the letter book, what were the contents of such '? [Objected to. Mr. Bf.rker saying that the copy is not evidence )ut proof of the loss of the original ; that the original, if produced, I not be put in evidence by the defendants at this stage ot the pro- |ng8.] The witness here refers to the letter book, and says the copy 3 letter is as follows : " Saint John, N. B., 15th January, 1866. E88H8. MiLLEH & MOBSMAN, Dear Sirs — Your esteemed favour, of 23d ultimo, lo hand, and contents noted. We received a long letter from Mr. James Smith, Irtland, wishing us to allow him to send the Palm Tree on a voyage ; which we lonsented to, providing he can find any person to fit her out for him. We cannot Ve him any more. If he concludes to send the ship on a voyage, we wish you bre our claim on her — mortgage, |40,000, sterling £8,333 6s. 8d. ; advanced on k, 18.000, sterling £1,666 13s. 4d.— £10,000 sterling, deducting what freight is j credit over the balance, including the premium, if we have to pay it. You |ease consult Mr. H. Y., if in Liverpool. " Yours, truly, "D. & T. Vaughan." bre are some other statements in the letter, but they do not refer to ralm Tree. Q. — I see in this account marked c.n.s., September [1871, No. 1, that Mr. Smith is charged with several premiums of fince. Do you know of your own knowledge that such insurance fected ? Ans. — I do, in a certain way. We have not the policies, fey are not in Messrs. Vaughan's office ; they never were in Messrs. lan's office. I never saw tnem. I did not effect the insurance ; it 3nc in Sngland. I know the item iu the above account, of Np- II H vember 26th, 1 866, for insurance, $889.38, is correct. I know it I fjetting a debit note for it. We got debit notes for all our insuranl [The Attorney General objects to this answer,] ^.— Can yon, of v| own knowledge, state that the insnrance was effected on the Palm for which twenty-five hundred and sixty-one dollars and thirty -five eel is charged April 10th, 1867, in the acconnt above referred to ? Am I did not see it done. I will not swear that any insurance was upon the Palm Tree for Mr. Smith's interest, but to protect Me Vanghan's interest, g.— You have credited Mr. Smith with £1,052| 6d. stg. on account of insurance claim, May 23d, 1867: do you, of own knowledge, know the amount so collected on insurance accod Ans. — No. I only know it from Mr. Vanghan ; he collected it hinii I believe. Q. — I see in the account of Lloyd, Low & Co , put inf dence, Sept, 26, 1871, No. 8, the following charge : comraission.j Palm Tree, inwards, as agreed. Can you explain that? Ans.— Ncl cannot explain it. Q. — Do you know anything of Mr. Vaughan ha( f>ut a stopper on the freight in London? Ans. — No. I have no kq edge in any way of any such thing being done. This is the time I ever heard it mooted. 1 never heard .that from any pei| Q. — ^Did vou ever hear of Mr. Henry Vaughan doing anything in rei to the freight ? Ans. — I never heard of Mr. Henry v aughan doing] thing to stop the freight ; only I heard ho gave bonds in London tol Admiralty Court to allow the ship to be discharged. [The Attol General objects to the answer as not in answer to the question.! I only way in which I know of the amount of freight is by Lloyd, tol Company's accounts. Mr. Smith uid not tell me to charge the araoj in Lloyd, Low & Co.'s account against him. I do not know what Munn, Miller & Co. had to chargo Mr. Smith with uayments fori Palm Tree and owners; nor do I know what right Ltoyd, Low &\ had. Q. — Why did you charge Mr. Smith with Captain Betts' serf four months, going to Callao, and also his expenses going and returnj Ans. — Because Mr. Smitl employed Captain Betts to go, and thenf Captain Betts — famished me with this account. I do not know wbj or not Mr. Smith was in England when Captain Betts came from Callao. Q. — Why did you not, when furnishing Smith! the accounts marked o.n.s., September 26th, 1871, No. 1, 2 aq which you rendered to him in April, 1868, furnish him with detl accounts of the sums debited and credited to him therein ? AnsA cause Mr. Smith had put his property out of his hands. Q. — Whl you not in such accounts credit Mr. Smith with the freight of the Tree from Callao ? Ans. — Because we had not received it. Adjourned until Idth instant at ten o'clock. OCTOBEE 14th, 181 Met pursuant to adjournment. Present as before. Cross-examination of James Robinson resumed. Q. — Of the account marked c.n.s., Sept. 26th, 1871, No. 1,| many of the items charged against Smith were paid by yourself? —Telegram to New York, $2.28 ; Capt. Betts^ services, $320. two items are the otily ones in this acconnt paid by me. I spca] u. 86 Livcof the balance of a former account carried into this, amounting |l,010.6'<. This was the balance of the account connected with rht ? ^.— Of the credits in the account Sept. 26th, No. 2, how ^r, and which of tliesums credited to Smith were received by your- Ana. — Nothing in such account was received by me personally. -In the account, September 26th, No. 3, is not interest calculated six months' rests ? Ana —Yes. Q. — In the account, Sept. j6. No. 1, Mr. Smith charged vAi:h the amount of the mortgage on ship and est calculated, with six months' rest, the interest every six months |g added to the principal, and both principal and interest thereafter ing interest. — Ana. — The interest is calculated every six months, and )eing paid, is added to the capital. Q. — Have you any letters from Imith, that have not been put in evidence? Ans. — None but what In Court. The Palm Tree was sold to Adamson & Kolandson, to ]-loyd, Low & Co., although they were intermediate parties, )roker3. [Mr. King here proposes to show witness certificate ot iter of transfer oi Palm Tree from Henry Vaughan to Henry Lloyd [Henry William Low, and ask witness .if he is of the same opinion, Ithe ship was sold to Adamson & Rolandson. Mr, Barker objects lis. The question is improper, as stating the contents of a paper not idence ; second, it is improper to show witness any such paper at this of proceedings ; third, the question is objectionable.] Ana. — Yes I am of the same opinion, and always will be. [Witness says this, looking at the paper.] Q. — Why did you not, the other day, mcn- that Lloyd, Low & Co. had something to do with the sale, and that hip had been transferred to them. Ans. — I was not asked anything t them. I was asked who the ship was sold to, and 1 told it. The was not sold to Lloyd, Low & Co. Q. — Did you, the other day, that Lloyd, Low & Co. had anything to do with the sale of the Tree? Ana. — 1 did know. Q. — Why did you state that the rea- ou knew that Adamson & Rolandson had purchased the vessel, ecause you made the transfer at the custom house, or had something with making the transfer ? Ana. — Because 1 had means of knowing hose parties had purchased the ship. Q. — You stated the other hat your means of knowledge of the sale to Adamson & Rolandson "erived from having made the transfer, or done something about g the transfer at the custom house. Was that correct, and did you the transfer to Adamson & Rolandson ? Ana. — I did not say that e the transfer to Adamson & Kolandson. I made the transfer, and w how the thing went. Q. — Having referred to the matter of 'er, why did you not mention Lloyd, Low & Co.'s connection with ' that the ship was sold to them. Ana. — 1 was not asked to men- loyd, Low & Co. I was only asked who the ship was sold to. I she was sold to Adamson & Rolandson, partly from what was told I knew nothing of it from the transfer at the custom house. Lloyd, Co. may have owned her for a day or so, or a week or so, by Lloyd, Low &. Co. did not sell her to any person. [Mr. Barker 8.] Smith's building, for which the foreclosure of this suit is ;ht, is not at present fully occupied. The hall or upper tlat is not oc- 1 this year ; it brought fifty-nve pounds last year. The building idly occupied from first May, 1869, to first of May, 18T1. In X8t;«» r 86 a portion of the building was unoccupied ; one etore on Water etrei ana flat above, was unoccupied that year ; the etore and room above! that was in 1868 unoccupied, now brings £55. Wo repaired the buildi/ several times. The mason work was done in midsummer 1870 ; it cl $118. The carpenter veork was done in the early part of 1869, befij May: other carpenter work was done to the building about a year lat^ Q. — Did not David Ileffernon about the time that you wore making i necessary rt^pairs, and in the city of Saint John, tell you that such repai were not ncjessary. A. — No, sir; he never at any time or place toldiL any such thing ; he had nothing to do with it. I know David HofferDJ well. I never asked Heffernon to tnake such repairs. I had conveir tion with Heffernon about that building. Q. — Did you not at or at the time you made such repairs, ask Heffernon if he would make] repairs, and for what he wou((7 do it; and did not ho say that in his i nion those repairs were not necessary, or words to that effect? A.—i I neither asked him to make repairs, or give estimate for repairs, and never said that repairs were unnecessary, or any words to that effect, i if he says so he lies. The accounts put in evidence of Lloyd, Low & Munn, Miller & Co, and Captain Betts and Mr. Wills, all came to D,| T. Vaughan's office : they were brought there by Mr. Henry VaughJ I do not know of my own knowledge how Mr. Vaughan got them. Cross-examination closed. Adjourned until this evening, at eight o'clock, at office of Forbej Sinnott. Eight o'clock, 14th Oci'obeb, 1871] Met pursuant to adjournment. Present as before. Ee-examination of James Bobinson. Q. — I see YOU stated on your cross-examination, in answer to a qj tion by Mr. 5iing, that you regarded these three mortgages as diffei transactions. What did you mean by that ? Ana. — I meant that ta were three different mortgages, and that money was given and d also on the three mortgages. Q. — Mr. King asked you if you knew! thing about the bottom being torn off these accounts, marked ci Sept. 20, 1871, No. 11 and No. 12. Are the accounts just as they when they came to your office? Ans. — Yes ; just the same; they not been mutilated in the least. Q. — Do you know any thing practid of the price of goods and materials for ships' purposes, such as youl ported for Mr. Smith ? Ans. — Yes ; I did ; we, at that time, weref porting such things for ourselves. Q — How do the prices of Mr. Smj goods compare with the prices paid by yourselves for goods for yonr& at that time ? [Mr. King objects, first, that it don't arise out of the c examination, and secondly, it is objectionable in itself.] Ans.—I^ were the same prices. Q. — These invoices of the goods, do you ' of Mr. Smith ever inspecting them at your office ? [Objected to.] — Yes ; I know of him and his son Robert inspecting them, and cially the invoice of wire rope. I know of Mr. Smith inspecting, he remarked upon the cheapness of the wire rope. Q. — Have yoj Messrs. Yaughan's office, received any disbursement or other acconn I » ii'iiir< VI office of Forbe 1 October, 187u J^alm 2 ree th&n those yon have epuken of ! Ana. — Is'o. ^.— Did' |ssrs. Vauglian, so far as vou know, after the vessel had gone into incs & Co.'s handfl, up to the time that she arrived in Engl a) d on her jiirn from Callao, in any way assume the control of the vessel ? [Ob- ted to.] Ana. — No. Q. — In reference to the invoices charjjfed against Smith, I see you charrQ^ for the parties who had the claims s^ainstthe ship. We finally kseeded, after much correspondence with Thomson & Bonard, and ller, in getting liberty to take the ship up to London, by paying £60. L Smith knew of this correspondence between Thomson db Bonard, and ller, and of the purport oi it. Mr. Smith knew of the terms upon ich Thomson & Bonard would consent to the ship going to London, I he seemed much pleased that the matter had been arranged so that [■hip could go to London. He also knew of the fifty pounds being \- This is a letter I received from Mr. Smith while I was in England ; lletter is dated Cork, 11th June, 1867. (This letter was previously i^ed, and is marked Gl, aii.B. The kfet«r is r»ad, aid put in evidence.} Mr. Smith went down to Cork abont the time the ship was cxpecti This is another letter I received from Mr. Smith whilst I was in Eq land; it ^s dated 17th June, 1867, and was previously proved, and] marked Fl, c.n.s. [The letter is put in evidence, and read. Mr. Barb calls for a letter referred to in this lettei , of date 13th June, 1867, writtij from Henry Vaughan to James Smith, and the receipt of which is i knowledgea in this letter put in evidence. The Attorney General ei^ he will look for the letter.] This is another letter 1 received from " Smith whilst I was in England. [Theletter Is dated June 21st, 1867, i was previously proved, and is marked El, c.n.s. The letter is put J evidence, and read. Mr. Barker calls for the letter of the 19th Jnij 1867, referred to in the letter put in evidence here. The Attorm General says he will look for it.] This is a letter I received from Smith whilst in England. [The letter is dated Qaeenstown, July 1, IS and was previously proved, and is marked Dl, c.n.s. The letter! put in evidence, and read.] This is a letter I received from Mr. Smf while I was in England. [It is marked CI, c.n.s. It was previou proved, and is datod Qneenstown, July 3d, 1867. The letter is put! evidence and read.] I know the firm of Lloyd, Low & Co., in LondJ They were not our business agents in London. We never had any bi ness with them until this business of the Palm Tree. Kyan & Di and then Dale & Spring bad been our agents in London for over fo( years; they are still our agents there. I gave no orders to oar a^ in London about the ship. Mr. Smith and Captain Betts left our ings to go to Lloyd, Low ^iti>' hands.] This is one of the papers I received from Mr. Wills. [Pt offered in evidence, and put in by Mr. Barker: paper is marked c: Nov. 9th, 1871, No. 1. The Attorney General objects to the paper ~ in.] I g -w this same ]>aper upon the ship's mast — I mean the Tree^s mast. After I paid the claim — ^the fadgment I mean— the was taken off the mast, and the Admiralty office gave up charge of Q. — Do you know from conversations with Mr. Smith, what his (Samuel Smith) claim against the l*alm Tree was? Ans. — About ei^ pounds. Q. — Do yon know from Mr. Smith what that claim was n Am. — It was for wages. This is an account I received from Lloyd, ' & Co. [The account is one already in evidence, and is marked o. September 26, No. 12.] These ^re the vouchers that accompanied aeoonnt. [The vouchers are all pnt in evidence, and marked as foUoi CK.fl, Nc wmber 9th j 1871, No. 2 to 20 inclusive. The Attorney Gem obiects to the Vouchers being put in.] The writing on the back of voncher marked o.y.s., November 9th, 1871, No. 9, is in Mr. Srail 95 id'Writing, and the signature to the writing is also Mr. Smith's own jd'writing. Q.. — I see in the acconnt of Lloyd, Low & Co., a credit lifollows: — Febraary 22d, 1868, by cash received of H. Vaughau, £•- ]ire, iJ608 I69. 2d. (stg.) : did you pay that sum ? Ans. — Yes. I paid |>Q account of the Palm Tree — it was a suit against the Palm Tree. I fe seen Mr. Lloyd and Mr. Low, of Lloyd, Low & Co., write. Those papers are in Mr. Lloyd's writing. I received both of these papers Liojd, Low & Co. The papers are marked Sept. 26, 1871, Ko. 9 No. 10. [These papers were previously marked, and are put in evi- nce. The Attorney Qeneral objects to these papers going in evidence.] 88 two papers are the receipts for the $608 168. 2d., iQready spoken } paid Lloyd, Low & Co. by me. This paper is in the hana-writing Ir. Lloyd, of Lloyd, Low & Co. I mean tne signature to the paper, paper is marked o.n.s., September 26, Nc. 11. I paid the thirty five Inds mentioned in this receipt. We afterwards sold the Palm Tree |er our mortgage. We sold her in London, at English Lloyds rooms, was a public place, and one where ships were usually sold at auction. I sold her at auction in February 1868. I was present at the sale, jrd, Low & Co. were the brokers who sold her. She had never been lof their hands sitice her arrival in London. I never took her out of baads, and I did not put her in their hands. [This is objected to |he Attorney General.] There were a good many persons present at luction. The sale took place in the day time. There were some two Ired there so far as I could judge. There were persons there fron> land, Liverpool, and Bristol, as bidders. The first bid, was, I think, thousand pounds ; and they went on with different bids, from that nine thousand pounds, and she hung a long time at that ; and then went on and bid her up to nine thousand two hundred pounds. isoD & Ronaldson, one or other of them, bid nine thousand two ired and fifty pounds. [Objected to by the Attorney Qeneral.] I there were no more bidders. This was the last bid, and she was ced down to them. [Objected to b^ the Attorney Qeneral.^ Q, — by your account with Mr. Smith, in evidence, yon credit him with 'lottsand pouuds, as tlie proceeds of the sale of the Palm Tree ; why 1)1 do that when she was sold for only nine thousand two hundred \j pounds. Ant. — Adamson & Ronaldson lost a ship, and they ' one in the place of her. They went to Lloyd, Low Jk Co., and |itiien came to me. Mr. Low asked me if I had any notion of buying ip when she was sold at auction. I told him I had not. I told had ten thousand pounds against the ship, and I was not ffoing to br go for less than that amount. Mr. Low wanted me to sell her at |ta sale, as under my mortgage I oould do either. I said the better wmt was to sell her at auction, and then there would bono fanit found. ison & Ronaldson said they would sive rae ten thousand pounds for lip, and if she sold at auction for less than ten tdMMisand pounds, Iwonld still give ten thousand ponoda; and if the sold for aore than Aonsand pounds, that I would hav« to loM ^« difierenoe, and they 1 get the ship for the ten thousand pounds. Ther mad* this oflfory ^accepted it ; and she sold for ninft tnooMUid two bandred aod iftj and they gave me ten thousand pounds f(Nr her ; and I eiNditM thousand pounds to Mr. Smith. [This is otijocted to from the last f Of. objuction down to tlio cotnmciiceinent of this objection.] I have no inn rest in the Palm Tiee^ nor have any of our firm an interest in her, : we have never had any interest in her further than the mortgagee y\ concerned. William Vaughan never had any thing to do witli the Pa Tree, and he has notliing to do with her now ; has»ot-4MW, and novJ had any interest in her. He wtie present at the sale, and bid upon h( but siic was not sold to him. i have not, nor have any of our nrm interest in the firm of Adamson & Konaldson, and we never had intercut in the firm of Adanipon & Ronaldson. The transfer of the vea was made to Lloyd, Low & Co. : they were the brokers. Q. — Why tb6 transfer made to Lloyd, Low & Oo., if the sale was made to Adainsi & Ronaldson. [Objected to by the Attorney General.] Ana. — Tbl were the brokers ; the money was paid to them, and by them paid ton and the transfer made by me to them. Q. — By whose directions wastl transfer made to Lloyd, Low •? Viliim^l « ■.•>"*. .tM Hi )n 15th November, 1871, met pursuant to adjonrnment. Present: Barker and Mr. Forbes on the part of the plaintiffs, the Attorney }eral on the part of the defendants. Examination of Henry Yaughan resumed. . . 'i '!! }.—l see by the answer in this suit that Mr. Smith states that on the of the Paltn Tree by yon, under your mortgage, she was bid off by I conveyed to William Yaughan, is that true? ^n«.~-No; it is , true. Q. — I see also by Mr. Smith's answer in this suit that he BS that David and Thomas Yaughan caused the ship PtUm Tree and ^ht to be arrested on the bottomry bond given to Captain Betts. Is true? uln«.— No ; it is not true. Q. — I see also that Mr. Smith, in wswer, states that when the vessel arrived in London that D. & Tl Igban, in breach of the agreement that they had made with him, ob- led an injunction out of some Court there to prevent the payment of [freight, was there any such agreement? ^n«.r— No ; there wag no agreement ? , , >8s-examination of Henry Yaughan by the Attorney General. --<•'• rent home to England in 1866 — in June, I think — a little before the -the Palm Tree — left here for Englend. I was' not in England, I in 1865. Upon looking at a book, witness says — I went to Eog* Ion the 20th June, 1865; Heft there, I think, the 2d Febraary, 1866, Itnrn home. I went to England in 1867, 1 think ; I left here in rnary or March, 1867, to go ihere ; and left to come after that from land in April 1868. I went to England in Febrnarj 1863, and re- Igd in April 1864, and did not go to England again until 1865. Q. — laving been able to give the dates of your leaving for England, or Ding home from England, or theyears you were in England between I and 1868, without reference to books, is not your memory quite ^tive ? Ans. — No ; I do not think so. Q. — ^The conversations which lave detailed with Mr. Smith with reference to advances for building I mnst then have taken place previous to Febrnary 1863, is not that we? Atis. — Yes; a year before; during the year before he was talking about it. Mr. Smith commenced to build the Palm Tree I fall of 1865 or 1866, 1 think. I do not know what conversations place between D. & T. Yaughan and Mr. Smith here at the time rangements were first made, as I was in England at the time, and the mortgage on the brick building was taken. Q. — I see the r 98 mortgage in tuit, to which you have referred, is dated 7th Juno, 186 How do you reconcile tiiat with your previous statomeiit, when yoirha^ before said that you returned from England in April 1864. Ans.—l cil not remember exactly about that ; the arrangement was made to I Mr. Smith have the monev while I was in England. Mr. Smith did i state, when he asked for the advance of £2,000, that the ship was to^ one thousand tons ; that was before the ship was commenced at all. agreement had been come to to advance money to Mr. Smith beforel left for England in 1863. I was in Mr Smith's yard when be was woiT ing at the Keel ; he had frames out then, I think, and there was tinU moalded in the yard. I think I saw the model of the ship up in H Smith's loft. 1 cannot say that I saw the model when i was first t:^ in Mr. Smith's yard. The model was made before the keel was laid. could have seen the model when I was first in the yard, if 1 had sired. Mr. Smith was in the yard when I was first there, whilst the k^ was being laid. I do not thiuK I was in the yard three times whilst i keel was oeing laid. I might have been there twice, or upon the bai looking down mto the yard. I don't think I was in the yard more than fuj times tutogether. At the time I was in the yard, when the keel was be laid, I knew how large the ship was going to be : Mr. Thomas Vaui' told me. {The Attom^General does not go into conversations with mas Yaughan.] Q. — Will yon swear that after yonr return from Engl in April 1864, Mr. Smith, in your presence, authorized Mr. Thoq Vanghan to contract in England for tne sale of a vessel of one thoasi tons I Ana. — Yes ; to the best of my knowledge, I think so; I thin- ean swear positivenr that such a conversation took place in D. &\ Yanghan's office ; I think Mr. Robinson was present Q. — How I alter yonr retnrn did this conversation take place ? Ans. — I cannot I it was not a month ; I cannot tell the date when Mr. Thomas Yant went home to England that year, without looking at my books. [1 ness examines the book and says]— He left here on the thirteenth! April, 1864. I arrived here in 1864 from England, on the third of Apf 1864, or abont that day ; the conversation must have taken place, betvi my arrival and my brother going away ; it took place before he away. I cannot tell what were to be the dimensions of the 1,009 •hip i it is very likely her dimensions were talked over, but I cannot] whether Uiey were or not. I cannot say when she was to be delivero England ; it was said that Mr. Smith would commence building be the fall, and she would be finished in the summer of the following ;l It would take Mr. Thomas Yaughan abont a fortnight to go to EnglT from Halifax. It would take him some little time to get up this coon for sale of a ship ; and then it would take a fortnight for the news to| oat here. I canncl; recollect the time. I was down and saw the I laid ; I eannot swear that the keel was not laid before May, 18C think the keel was not laid before my brother Thomas went away ; 1 am not certain. [The Attorney General hands the witness one ofl invoices in evidence, and asks] — Would not the iron referred to inj invoice, marked Sept. 20th, 1871, No. 1., be too large for a ship ofl thousand tons? Am. — Yes; I should think it woald. Q.— Would! the metal refored to in invoice, marked Sept. 20, No. 4., be too la „ a ship of one thontand tons ? Ant. — ^I ooaid not say exactly ; som^ J heavier fasteniugs tlmu othorB. The orders tur this iron wont through [r hands : we sent theui home. We know if we looked at the orders, it the iron was too large for a ship of one thousand tons. We had a bans of knowledge through those orders, that Mr. Smith was sending [me for iron for a ship of more than one thousand ton*. Mr. Smith Ight have told mo that he got his frame out, moulded in the woods, lo not know that he did so, as I was not there. Q. — Have you not rays been under the impression, that Mr. Smith '^id so get his timber? Ibjectcd to.] Ana— I think he said he was n" aiding the ship up in Vwoods. riie conversation about building a tuousand ton ship, may re taken place before I went to England in 1863, or it may have taken Lee afler I came back ; I cannot say. Mr. Smith, afterwards, when he Vq the security on the Queen square property, got two thousand kinds; and, then, after he sot tho nve thousand pounds, ho asked for ]>ugh to finish the ship, and we agreed to give liini, as by the agree- iit appears. I did not understand that the ship was one thousand tons, ^d not understand that she was a one thousand tons ship when we [anced the two thousand pounds on the Queen square property. We into it, and had to go through with it. I was in England in 1867 ; jro Mr. Smith got there. I cannot say exactly how long ; I cannot I how long Mr. Smith was in England before he went over to Queens- [n;not a great while. I think R. A. Munn, Miller & Co. got the srs for the ship to go to London : they were the agents of D. & T. ighan after Miller & Mossman had failed at Liverpool. I cannot say Ir. Smith — when he went to Queenstown — knew tlieship was ordered [iondon. I do not know of my own knowledge, that Mr. Smith then that fifty pounds were going to bo paid. I cannot tell the date \n the ship arrived in London ; it was in July, 1867. I think I was London whilst she was there. I went up from Liverpool with Mr. |th when she arrived. Q. — Mr. Smith, in his letter to you of the 16th f, 1867, says it will be well for you to give your sanction for these B, referring to payment of Queenstown bill and the S^int John irance. Did you give your sanction ? Ans. — Yes ; I request 4 Lloyd, & Co., to pay the Queenstown bill. I think Mr. Smitn and Captain were in the office when I requested him to do it ; but I do not re- ^ct anything about the Saint John insurance. My impression is, Mr. Smith and Captain Betts were present, but I oo not recollect. -Don't you know that the Saint Jonn insurance, which Mr. Smith ^ed to be paid out of freight, was premium of insurance on freight Callao to United Kingdom, for £6,000, which Mr. Smith had effected tint John, and assigned over to your firm as further security beyond he was bound to give? Ans. — I do not recollect ; and I do not irhy we should have required any more security, as We had a mori- on the ship, and the ship was sufiScient to pay it. Q. — Halve you kuch policy in your office now ? Ans. — Kot to my knowledge ; if it [r. Robinson will know, but to le best of my knowledge I never saw Buch policy. I might l.ave ask -"d Mr. Simititf what he meant by the John insurance, but I do not r'^ollect of doing so. Q. — Did not Smith tell you he thought Samut Smith's wages ought to be paid ? -Yes, he said so, alter the other ./ages had t^en paid off; he 9ob- btly received his wages. Q. — Hav^- yon the particulars of the item 13 ^■i 110 in Lloyd, Low & Oo.*8 account put in evidence, marked Sept. 26, 18| No. 12, namely, July 13, wages to crew, £862 9s. 6d.? Am. — No. Smith and Captain Betts were in London when the crew were paid ( They both told me, I think, that they were at the oflScc when tne en were paid off. Adjourned until 16th instant, at 'naif- past 8e*en, p. m. ' " NovKMBEK 16th, 1871, 7i o'clock, p. it| Met pursuant to adjournment. Present : Mr. Barker and Mr. Fori on the part of the plaintiffs. The Attorney General and Mr. MorrL on the part of the defendants. ' . ,. , Cross-examination of Henry Vaughan continued. ' I am not positive that Mr. Smith told me that he was present at Lloj Low & Co.'s when the seamen were paid off ; but my impression is, he told me so at the boarding Lonse where we stopped. Captain Ei stopped at the same boarding house with us. It is not usual for sear to be paid off at ar office — they are usually paid off at the sailors' hoi but they go to the office to get their accounts made up. What I un stood was, that Captain Betts and Mr. Smith were at tho office when sailors came there for their accounts ; but I do not know whether tl went to tho sailors' home or not. 1 have seen Lloyd, Low & Co. a good many times, both of them ; I was in their office a good im times. I have seen Mr. Wills write, and have received letters from I have not been at his office many times ; it was too much expense to| often. Mr. Smith told me he was at Mr. Wills' office a good tiii times. 1 will not swear he said he was there after the middle of Au, 1867. Q. — Did not Mr. Smith inform yon about that time that he been at Wills' office, and that Wills had told him that he would not lii him troubling his office, as Mr. Vf.'^ghan had stepped in now, and (Smith) was not required now ? Ana. — He told me something of kind sometime before Mr. Smith came away from England. Q.—\ not Mr. Smith, about the middle of August, 1867, inform you that " in Lbyd, Low & Go's office, told him that they had received a bui of letters from Mr. Vaughan and Mr. Miller, and that they could attend to him. Ana. — ^I don't remember ; he might have said so ; I say he did, nor I don't say he did not. Q. — ^The receipts put in No ber 9, 1871, marked from 2 to 20, inclusive, and the account of D Low & Co., put in evidence, were received by your firm from D Low & Co., were they not ? Ana. — Yes. Q. — Why did you not Mr. Smith copies of such receipts ? Ana. — He never asked for tl Q. — Why did you not give Mr. Smith a copy of tho freight list of I guano? [Objected to.] Ana. — He never asked me for it, or I vl have given it to him. Q. — Do you know when you got the freight [Objected to.] Ana.—l cannot tell exactly ; I think it was about the tho ship was sold, or just after the ship was sold. Q. — Who authorized to act in the Admiralty suit of Samuel Smith, of which you spoke? — I cannot tell you ; I do not think it was Mr. Smith. I paid Mr. Wills money at different times. He gave a bill of costs — pretty long bill6,J I never paid any money to persons who fitted the snip out for tho boumo voyage. 1 do not know of any of the Palm Tree's monej lol out for the Melbourne outfits after licr arrival in London. The [ago bill, to which I have referred, ia the only bill that I know of as \rhen you in your let- > Mr. Smith of the 19th June, 1867, wrote that you had put a stopper the freight in Thomson & Bonner's hands, 1 presume you meant rou had given notice to Thomson & Bonner that you were mortga- ff the ship, and forbid them jtaying freight to any one else, or some- to that effect, did you not? [Mr. Barker objects to the question.] -Yes, by the advice of a lawyer in Liverpool. It was true what I I did put a stopper on the freight. 1 held the ship mortgage for rmofD. & T. Vaughan. All the money transactions «vith Mr. were with the firm of D. & T. Vaughan. I)ss examination closed. Barker here proves the signature of Mr. Smith to several letters, ly Vaughan says I know Mr. Smith's handwriting. These letters, ped 0. \x. 8., November 21:th, 1871, from No. 1 to No. 13, inclusive. Mr, Smith's handwriting, and signed by him : the writing on the of the letters, except the one dated April 10th, 1865, is in the haud- ig of Thomas Vaughan. [This not objected to.] re-examinatioa of Henry Vaughan by Mr. Barker now b^ina. -Are these the orders you referred to in answer to Mr. King an |g been given for the outfits of the ship ? Ana, — Yes, they are ; ^ere brought from England by my brother Thomas when he re- from England. [Mr. Barker offers them in evidence. They are ted to by the Attorney General. They are put in and marked o. rov-^raber 24th, 1871, No. 14 to 17 inclusive.] Miller & MosBmaa lout general agents for shipping purposes, purchasing goods and tal business. Q. — In your cross-examination you state that John told yoa that Peter Miller gave a letter to Baines & Co., that roar sronld not interfere with the Palm Tree during her voyage n-om }ool to Melbourne, thence to Callao and back to the United King- Did you ever authorize any such letter to be given ? [Objected [ ^TM.— No, I did not. I was not io England when the vessel w«8 n Baines & Co.'s hands by Mr. Smith. 1 was on my WAy here from ind. Mr. Thomas Vanghan was here or on his way to En^aud at me. I had, at that time I was in England, been there a long time, las Vaughan was here whilst I was in England. Q. — In answer to Btion put to you by the Attorney General, yon stated that Captain I when he went to Callao took a power of attorney from Thoma* &" :104 Tauehan, or the tlrtn of D. & T. Van^han. Is thb the power of atl tornej you referred to ? Atm. — Yea. Questions by the Attorney General, How do yon kno^r that this is the power of attorney that was given, [Objected to.] Ans. — I was in the office when it was given. [To Mr.l Barker.] 1 only know of one power of attorney being given to Captainl Betts. The signature to this is Thomas Yanghan's. The signature onl the margin is Captain Betts' signature. [Mr. Barker offers the power ofl attorney in evidence. It is put in, and mai'ked c n.s., November 24T 1871, No. 18. [Q. — Did you give Lloyd, Low & Co. any orders not tol ay Mr. Smith any money. [Objected to.] Ans. — No, never, ^.-j id you subsequently remove the stopper from the freight. [Objectedl to.] Ana. — Yes. I put it on before she arrived, at about the date ofl my letter to Mr. Smith. [Objected to.] I took it off the second dajl after she arrived. [Objected to.] Q. — Did yon ever tell Mr. Smith! that you had taken it off. [Objected to.] Ans.— Yes. Q. — Did Mr.f Smitl: know before he left England that you had taken the stopper off! the freight? [Objected to.] Ans. — Yes; he knew it the day 1 tookitj off. Thomson & Boner would not advance the money to pav the crewl off nntil I took the stopper off. [Objected to.] Q. — Did Mr. Smith know before you put the stopper on that you intended doing so ? [Ob[ iected to.] Ans. — Yes ; I tlnnk he knew ; I think he was present when! It was talked over, but I am not sure. [The letters marked c. n. s., No-I vember 24th, 1871, to Thomas Vaughan, and Nos. from 1 to 13 inclusive,! are now put in evidence by Mr. Barker; the letters were previously! proved this day. The first one is dated 10th May, 1861 ; the second one isdatad 2lBt J^une, 1864; the third one is dated 5th July, 1861; tbe fourth one is dated 20th September, 1864; tbe fifth is dated the 2oth| Sept., 1864; che sixth is dated the 10th October, 1864; the seventh dated the 24th October, 1864 ; the eighth is an enclosure in No. 7 ; tbe I ninth is dated the 7th November, 1864; the tenth is dated the 5th Del cember, 1864; the eleventh is dated the 19th December, 1864; the! twelfth is dated the 28th January, 1865 ; the thirteenth is dated the lOthl April, 1865.] All these letters are written by James Smith to Thomas [ Yaaghan. The Attorney General now cross-examines Mr. Yaughan upon the new| matter brought out in his re-examination. Q. — When and where did you tell Mr. Smith that you had taken ai stopper off the freight? Ans. — I do not recollect whether it was in I Lloyd, Low & Co.'s office or in our boarding house, or it might have been on the street. I cannot recollect the exact place. It was about the time I took the stopper off, about the second day after she arrived. I think Captain Betts was present at the time. It was in London. The stopper was taken off by written communication. Q. — Did any process issue out of any Court by you, or at your instance, against the Palm | Tree or her freight, or agamst the charters on account of freight ? [Ob- jected to generally, 1 ut not on account of its being offered at the present | stage of the proceedings.] Ans. — No, nothing or the kind. HENRY YAUGHAN. Adjourned nntil the 25th instant, at half-past 9 o'clock,' a. m. 105 25th November, 1871, half-past nine o'clock, a. m. : Met pursuant to adjournment. Present as before. Silas H. Brown called on the part of the plaintiiiV, and being sworni pays: I live in Saint John. I am a house joiner : have been in the business bn or twelve years. I know the brick house on Prince William street, and extending through to Water street, known as " Smith's building." I have, within the last two vcars, put repairs upon that building ; some of |bera lust year, and some the year before. On Water street I pnt a floor ]ipon each store ; the joists were all rotten, and the floor rotten down to rock. I put in new floors and new joists. The roof leaked, and ras in a very bad state, and I afterwards repaired it. The plastering in upper room, or big hall, had a portion of it fallen. Michael Flood, mason, whom I employed, repaired it. These repairs were necessary the protection of the building. The parapet walls were broken off; i it was cheaper than leading them, and a better job ; and the chimneys epaired ; the skylight was also repaired ; there was painting and glazing Sone. These repairs were all necessary. I did them for Mr. Vaughan, ud he paid mo, or Mr. Robinson paid me : Mr. Robinson was Mr. Taiif^han's clerk. I purchased the lumber for Mr. Vaughan for the re- bairs, and he paid for it. I do not know whether it was in my bill or bt. SILAS H. BROWN. Adjourned until the 2&th November, 1871, at four o'clock. Present, &c. i,y, i, - , /,, I y.., November 29th, 1871. ) Met pursuant to adjournment. Present as before. Tlie Attorney General proposes to call Mr. Smith to rebut the state* aent of Mr, Vaughan that Mr. Smith told him in London, when they btliwere there in 1867, that he was present at Lloyd, Low & Co. 's when ae crew was paid off ; and also to rebut the statement ot Mr. Vaughan iiat be told Mr. Smith in London shortly after the arrival of the vessel 1 London, that he had taken the stopper off the freight. [Mr. Barker [bjects to this — first, that the witness, Mr. Vaughan, did not swear posi- nvoly to either of the statements, and therefore could not be contra- licted ; second, that the evidence on these points was irrelevant and im- material, and therefore Mr. Vanghan's statement must be taken as he |ave it, the testimony having been brought out on cross-examination ; l^ird, Mr. Smith gave in uis examiuation evidence upon both these oints.] Mr. Smith re-called. Q' — Did you, in London, at your boarding house or elsowhere, when |ou and Mr. Vaughan were in England, in 1867, or at any time, tall Mr. Mnry Vaughan tnat you were at Lloyd, Low & Co.'s. or at the office, men the crow were paid off? Ana — [Objected to.] — I never did, for pe simple reason that I was never there at the sailors' home, and don't now wnere the sailors' home is, and I did not see the crew paid off, and Ir. Vaughan never asked me, to my knowledge, abouv the crew being k lOfl paid off. [This answer in all objected to.J Q. — Did Mr. Henry Vaugiiaii| m Lloyd, Low & Co.'b office, or at your boarding house, or on the stred in London, on the second day after the arrival of the vessel, or at aDj| time, tell you that he had taken the stopper off the freight? [Object to ] Ans. — He never did in London tell me any thing, nor did I him. He uever told me so at any time or place.' Adjourned until half-past three o'clock, on the 2dth November, 1871. | NOVEKBBB 29tb, 1871. Met pursuant to adjournment. Present: Mr. Barker on the parti the plamtiff, and Messrs. Morrison and King on the part of thedefendanli Mr. Barker asks the following questions of Mr. Smith : Q.— When did you first ascertain the crew was paid off? [Objectei to.] Ana. — The second or third day after the ship's arrival. Q. — Weri you present at Lloyd, Low & Co.'s when the crew got their accountBl [Objected to.] Ans. — I was not. Q. -When did you first hear that tM otopper had been taken off the freight ? [Objected to.] Ana. — I nevq heard it until I heard it stated in evidence here. Q. — Then you neve^ knew the stopper had been taken off until you heard it stated evidence by Mr. Vaughan? J^^. — No ; uever till then. [Objected toj Q. — When yon, in your answer in this suit, state that Messrs. D. &I vaughan obtained an injunction out of some Court in London to prevenj the payment of the freight, did you not mean this stopper put on by Jlii Vaughan ? [Objected to that it is wandering beyond the matters of tin rebuttal, for which he was called.] Ans. — Yes, I think I did mean tha I have no doubt but that is what I referred to. Q. — Then if you nevej knew or heard of the stopper being taken off the freight until Vaughan gave his testimony here, what do you mean when you state i your answer that the injunction to prevent the payment of the freighi was dissolved ? [Objected to.] Ans. — I don't tnink I meant anythiu more than this. I meant it was put on, and that was all I knew aboa it. Q. — If you did not mean that by saying the injunction was dissolve! that the stopper had been taken off the freight, what did you meanl [Objected to.] Ans. — I could mean nothing else than what I have toll yon. Q. — Did you not mean by saying that the inj ^action was diil solved that the stopper had been taken off the freight ? [Objected to| Ans. — I could not mean it, for I did not know it. The crew would " paid by Lloyd, Low & Co, out of the freight. [Objected to.] Q.- How could the crew be paid out of the freight with the stopper odJ [Objected to.] Ans. — I cannot tell. I do not know how it was pail Q. — Did you not in a letter written by you at Saint John, dated Api( 29th, 1867, addressed to Messrs. D. & T. Yaugban, when speaking the Palm Tree's arrival in England from Callao, write ae foUowil My opinion is that it would be best to foreclose your mortgage on M arrivM, to clear the ship out of the power of the compact that I havetl contend with, and we can manage to make matters right afterwardsl only get her out of their power. [Objected tc] Ans. — [The Attornef General asks that the witness may see the letter, which is hand^ to bir by Mr. Barkw.]-^! wrote that. Q. — When you spoke of the oomp« in this paragraph or extract from the letter that I have just read, did yoj lOT jiotmean James Baines & Co., and Robertu iSe Mackey f [Objected to.] ina. — I meant them and ^nore than them. The Attorney General asks Ir. Smith the following questions : O. — Who were Roberts & Mackay ? itu. — ^They were part of the firm of James Barnes & Co., who received lier ontward freight and became answerable for her outfits. I mean by Eutward freight the outward freight to Melbourne. Q. — Who else did [ou mean when yon said them and more? Ans. — I meant John Miller, ff Munn & Miller, and others. I conld not tell who were for me and rhu agaitist me. Q. — When yon wrote the letter last referred to, had [ou not every confidence in Mr. Yanghan ? [Objected to.] ^n<.--TeB, had. JAMES SMIYH, .1 . *V*' ."■l'& 'ft MVl >hj>m .•\-A'^ .m's-*\ no hrro.j •. ■■■' '^•. , 1^ A« fyi f i.t fv»f '>■ rh A1- EXHIBITS. The following are the Exhibits put in evidence in this case : . "Nq. 1. Bond mentioned in plaintiffs' bill, marked A. ^, No. 2. Mortgage mentionea in plaintiffs' bill, marked B. No. 3. Probate of Will of Thomas Vauehan, marked C. No. 4. Probate of Will of David Vanghan, marked D. No. 5. Insurance policy for $8000 on mortgaged premises, markei o. N. 8., April 8tli, 1871. No. 6. Certified copy of mortgage of Palm Tree, for £10,000, frod James Smith to Henry Vanghan, marked o.n.s., Jnne 5, 1871] No. 7. Saint John, N". B., 15«A July, 1866. James Shtth, Esq. — Dear Sir — Your esteemed letter of the 14th via Portland, came safi to hand, too late to answer via Halifax last mail. We hardly kno{ what to say about you fitting out your ship. It will somewhat upsel onr arrangements. We cannot think of aavancing any more money! We have now advanced more than double what we expected. A mortl gage on a ship is very poor security, they are liable to so many accidentT that cannot be covered with insurance However, in consulting Mr. David, we have concluded to let you senj her to sea if you can get any person to fit her out for yon. You have tu be particular in selecting a good master for her. We find nea ly all depends on the master whether the ship makes money or not. W| shall write Messrs. Miller & Mossman so insure our claim on her : The mortgage, . . . $40,000— £8,333 6s. 8d. On freight, .... 8,000— 1,666 13s. 4d. £10,000 Os. Od. We have not heard what is left to our credit on the freight. You wi^ please to understand we only consent for her to go this one voyage. We hope this will meet your views. We remain yours truly, D. & t. VAUGHAN. [Harked c.h.8. Jum 6, 1871.] No. 8. Bottomry bond on PaJAn Tree, marked o. sr. s., dated Jane 1 1871. No. 9. Liverpool, \9th June, 1867. James Smith, Esq. — My Dear Sir— Your esteemed favour of the 17th was duly receive I note the contents as drawing on Thomson Bonnard for more than yol want. 1 don't think would be worth while. There is no chance for m person to get the freight out of Thomson & Bonnard's hands, as I hti h My, 1866. and, came sal hardly knoi| •mewhat upsel more money! cted. A moitl many accidentf to let you sen! yoQ. X ou m Wefindnea ey or not. VI n on her : Is. 8d. )s. 4d. )B. Od. sight. You ne voyage. VATJGHAN. 8., dated June 1 %th Jtmey 1861. AS duly receivi r more than y( 10 chance for an] ^ands, as I ha' 10§ Ut a stopper on it. Thev will only pay enough to pay off the Captain [nd crew and her inward disbursements. Everything is fixed, so that [he creditors can get nothing out of the freight. ' Captain Butte will be here next mail. Captain Griffiths has given Captain Betts a bottomry on the ship, the same amount as was on her [t Melbourne, besides the one on the freiglit for £4,5u0, so von see things I pretty safe as regards the creditors here. I think yon had better let he Captain draw on Thomson & Bonnard ior just what be requires for ^JB disbursement in Queenstown. You will be sorry to hear that Mr. Thomas Vaughan is very ill. There > no chance of his recovering. Doctor Bayard says his whole system is kreaking up. I don't think you will ever see him again in this world, lis son David goes home on Saturday. If you gc alongside of the earner in the tender on Sunday afternoon you will Sbo David. We have not heard of the SarawaFs arrival at Valencia, yet she is [taking a long passage as well as the Palm Tree. I remain yours truly, HfiNRY VAUGHAN. ked c.ir.8. Jane 7, 1871.] No. -*/. Mortgage from James Smith and Wife to D. & T. Vaughan, of Queen square property, marked 0. N. 8., July 3, 1871. No. 11. i* James Smith in accmmt with D. it T. Vaughan, j (Interest to Ist July, 1865, at 8 pw cent.) 1864. Db. Ts. ds. ny. 28. ToCash, 12,000 00 1 168 $170 30 uthSO. " do 1,U00 00 1 92 75 12 tril 21. « do 1,000 00 1 70 71 50 « 80. " do 1,000 00 1 61 70 02 ly 10. " do 2,000 00 1 51 186 76 " 28. " do 2,000 00 1 38 130 84 ne 10. " do 2,000 00 1 20 126 57 ly 27. " do. 5,000 00 838 277 80 ig. 18. " do 2,000 00 321 105 53 " 18. " do. duty per Eleanor, .... 80 86 316 1 55 « 28. " do. " Princess Royal, 156 40 311 7 97 pt 1. " do. freight per Eleanor, 78 40 303 3 88 ' 8. " do. top wharfage, .... 4 14 301 19 ' 7. " do. per Sea Gem, •' do. freight per Princess Royal, .... 1 84 297 9 ' 7. 92 97 297 4 64 ' 20. " Invoice of sundries, per Eleanor, and Prin- cess Royal, cash 6th July, .... 8,264 48 359 192 61 ' 20. " do.. Sea Gem, " 27th July, 48 14 338 2 66 ' 21. " Cash, freight per Sea Gem, 8 77 283 18 ' 28. " do., .... 2,000 00 281 92 88 ' 28. " do., top wharfage, .... .... 17 ' 80. " do., do., 8 80 274 18 L 6. ** telegraph about treenails to New Yoti,. . . 1 70 268 8 1 «• "Cash, 2,000 00 267 87 78 1 a». " do., — .... .... 4,000 00 244 160 48 i 81. " 14 bars iron, 8062 S>8., ® ^c., 68 67 242 2 70 Wp. 17. " Cash, fireight of treenails, 82 65 225 1 22 1 l^- " Cash, .... .... 4,000 00 224 147 28 1 26. « do.. 1,000 00 ai6 3S5& i tio pec. 1. " 2. " 10. " la. *' 81. 1865. Jany. 7. " 14. " 25. Feby. 8. " 4. " 9. " 15. " 24. March 9. •♦ 18. " 20. April 8. " 19. " 26. May 6. 9. " 17. June 18. " 24. " 28. " 28. • • • • • • • • To Cash. .... .... *' Invoice of treenails, cash 2d Nov., " CaBh " do., '* Invoice aundriea, per Raven, cash Nov. 29, " Cash, *' do., duty per Kaven, " do., top wnarfase, *' do., freight per Raven, .... .... " do., "do. *' do., recording mortgage, .... " do., .... *' do ** 80 bara yellow metal, .... " Invoice sundries per Kalos, cash 18th Feb. " Cash " do., duty per Ealos, .... do., freight per Kalos, .... " Cash, ;i.r • • • • • • • • 1. 1. '* 4 chaldrons coals, .... .... '' Insurance on ship Palm Tree, 20th April, £290 Btg., ® 10 1^ cent., " Cash, .... .... > *' Canvas, per bill, .... " do '* " 75 days* interest on sterling remittances on 111,647.58, " 2i 'ij^ cent, commission on $40,000, " balance of interest, " Balance, 11 July u 1865. Cb. July 1. By Mortgage, dated, 1. " ditto, " 1. " ditto, on ship, .... .... 4( 120,000 00 8,000 00 40,000 00 $1,000 00 809 80 1,000 00 1,000 00 2,567 52 2,000 00 96 76 10 68 264 40 400 00 2,000 00 5 60 2,000 00 2,000 00 460 62 5,767 44 2,000 00 220 66 205 70 2,000 00 22 00 1,417 77 2,000 00 188 79 80 57 148 58 1,000 00 2,521 48 689 29 1866. ' July 1. By Balance, Fbl b 1 St. John, F. B., Ist July, 1866. [Maiked o.n.s., July 8, 1871.] $68,000 00 $68,000 00 $689 29 212 240 208 200 218 174 167 156 148 147 142 186 127 118 109 182 88 72 65 65 58 18 $84 12 88 82 89 57 2 46 41 87 8 125 27: 281 2 18 II 5il No. 12. Bottomry bond on Palm Tree^ marked c.n.s., August 17, 187l| r. I. IMt ',,. No. 18. ' I t?. K •vsr: Captain Albebt Betts — No. 18. Saint Johriy KT, B., 6th Decembery 1866. i Dear Sir — Since your departure letters has been received from tb master of the Palm Tree and others, in which conflicting: statements hatj been set forth. You know what was telegraphed by Mr. miller befoq y<>u left, and was the means of your going to Callao. Mr. Then Vaughan has had a letter from Captain Griffith, wishing him to supp means to lift bottomry off the ship Palm, Tree on three days after 1 Arrival at Callao. 'uaa is sharp work, but must be attended to Eromptlyas posaibla It is well you have gone, but yon oannot possibH B ii) time tp arrange it at three days^ sight after her arrival, as this Iff low li leals* kbis ha iDBurai lit is no aoreh fely t »1I con( iet eve pretty i ciiinery 7o per lishap Bwamp deficien itlone, t Re bonduct out. I, Bch aw rat. Stat iui m [Karked JAFTAi Deaj ortanl lelbof wonf Jroth^ elves I Ill it dated the 28th Beptoinbor, and the ship was ail readv for sea in )d order on that dav, and, as far as we can judse, wouJa proceed to about that time, l^his appears to be wild work to keep a ship two lonths in Melbonrne to repair top work soch as we wonla do here in Iten da^s. The Captain liaci not even then given the JMttomry, althoagh |tho ship is stated to be ready for sea, and wishes to have means sent to Jftllao to the amount of £1200, more or less, in the words of the letter. low is any person to judi^e what really is wanted by sach statements. le also writes that he had to pay 50 per cent, for the money. X^ow, if kbii has to be added to the £1200, it would make £1800, ani other costs, iDBurance on that amonnt, &(;. As you are prepared to do the needfal, |it is no use for me to write any more on that head, but I hope nothii^ff Qore has transpired on the passage to Gallao, and that she Las arrived at'ely there. You will act in every way as you judge best for me and ftU concerned : find the bottom of everything connected with her, and ^et every person bear his own burthen. I think I have got my part pretty well. It appeare to me a screw is loose somewhere in the ma- ebioery, which I trust you will find out and have replaced £j^iently. \o person has any right to offer ttat is deficient in capabilities. One liahap is plenty in such castes ; another on the homeward passage would jBwamp me. Take no excusf) for bad conduct : replace any person that is deficient in performance or in capabilities, as I fully look to you, and you lone, to so act as to acquit yourself, and my confidence is vou will do 0. Remove any person you have the least suspicion of :ieglect or mis- bonduct, or incapacity, without favour or affection, and I will bear yon rat. I wish to run no more risks whatever, and cannot as yet see how ich awful misfortune has happened and such poor apparent manage- ent. At Melbourne he states he has sold £300 worth of provisions. I states that my son Samuel, in place of being a help to him, has been an injury, and that he is beginning to drink. This may all be, but yon irell know he never saw such example, nor ever did I see such signs, )ut the contrary. In this also act as with a stranger. Other letters re- ceived state the same about the master. Judge ye. God bless you with bealth and strength, body and soul. Bead the Captain's letter and seal it again. Please ask Samuel candidly all about himself and all the transaotionBy ad I think he will tell the truth for or against. Meantime, ever yours trnly, JAMES SMITH. [Harked W., c.h.s.J ^ No. 14. St. John, K B., Dec. lOfA, 1«86. 3aptain Albebt Betts — '^ Dear Sir — As I have written to yon on the fifth, and has little of im- portance to now write ; but having read a letter from Bright Brothers, of lelbourne, and one from the Captain, and also Samuel Smith, I thought would drop you a few lines, quoting the contents. Messrs, Brieht brothers does not give much satisutetion, only .the captain had advertised for money, and no person camoforward to advance it, and that they them- Blves would do so ; this was on the 27th of September ; and tne anm '. for repairS) they write me, ia over £1,100, and that they would ■■'■.^ lis trj and arrange it fur tli<> captain by bottomry to Oallao, and ti 'y stati that I should acquaint Messrs. Gibbs, Bright & Co., in Liverp< ui, so to give them authority to draw for the amount, in case an' accide should transpire, and recommends mo to do so still yet ; but there is need of that now, as you are prepared to do the needful on your arrival or on her arrival, as 1 do not know when she will sail, as they do m say, nor docs the captain say when she will sail, only states that she is al ready, and in good order, drawing 13 feet water, tt may be some disaJ iH)intment may occur, and stop her longer, but I trust not, and that gfal 18 with you long ago, and that you havo all well arranged satisfHCtoriijI as I would wish no more misfortune with her. They all speak well gr her good qualities. As to the bottomry, you know the way matters ii audit is well to see that all is put so that; no trouble can arise when iln gets home. Will it be well to oottomry her and freight both, to her ^ of discharge, in the risk, in such a way as to sell public or private sale, i may be requisite ; so that she will not have to go through a process i law, or waste time ; that she may be kept to work by some person, whon soever may be the purchaser. I need not mention those things, you wU do what you think best and safest, as you will hear all about the pre ceedings at Melbourne. You will act accordingly. But the bottomr must be removed in the way you judge to answer the best purpose jo can. Ton will write when yon get through, and let us know how yo get on. There is rock salt afl and forward to make pickle ; it would I well to put a lot in between the knees and deck, so as to save her fro rotting, all the wav fore and aft. If there is no large syringe on boan the carpenter could bore a hole in a piece of wood, and make a sticll sucker, like hand pumps, that would answer. I hope he will bring i| good lot of guano to help out with misfortune. You will also judgi the management of her at Melbourne. I have got some queer stori« about the ladies aft ; how to believe it I don't know. You may find ool about it. I hope such explanations will be given as to satisfy you thai no bad management has been ; and should it be that bad managemeDtl has been the case, I would reprove it in any way you may deem most efJ ficient, no matter what way that may be. I hope all the papers aboal the insurance is right, as this would be bad if I should lose it on such J splendid ship as she is, and so much money in her, and paying such faigli| insurance on her ; but all these things, I suppose, is done before you eetl there, and not likely be able to amend them. In the meantime, mm\ the best of all, so that you may avoid all the trouble you can when sbel gets home, as yuu know people a^sting as they have has little consciencel in money matters especially. I seen your brother ; he told me all yonni was well, as this leaves me, and I hope you are enjoying the same blefrl sing. Give Samuel Smith an overhauling closely, as some complainbl has reached me about him — no favour, son or no son., only what is rightj Mtoke the bottomry a large sum on ship and freight. Tours, truly, JAMES SMITH. [Marked Ml, 0.11.B.] No. 15. St. John^ N. J8., Janvmy 9UD6el. Please talk with him and show him his duty in everv way, id I have faith in him that he will pay attention to your counsel ; you now that he was tenderly and as respectably raised as I was capable of oing, and he may think it hard to be ever compelled to do his duty ; It should more than his duty be exacted, that would not be right. He to earn his bread now in a way, as you know, was not expected he lid only a ^^ery short time ago : bnt he may ultimately lose nothing my misfortune. When people earn their own living, they know bet- ^r how to take care of it How eame Captain Griffiths to lay in Melbourne a month after he was pady for sea, and crew by him 1 Had proper means been used he sure- got plenty to advance on bottomry on a ship like that — so small a n. This appears strange to me, and it appears paying £4 a month ' his new crew. This will tell up awfully. A screw must be loose in Dme way, but where is the remedy now 2 I hope no time will be lost 1 reporting the ship to Liverpool on her arrival home, in order that you bay be seen, and consult the best method of arranging all matters coa-. lected with her. I have written Samuel — ^please hand it to him. v [Markad Ll, cha] y^m: :l '11 •ro 'M,'.' 114 No. 16. Chincha Islands, January WA, 1867. To Jahbs Smith, Esquire, Saint John, N. B. I arrived at this place two days after the Palm Tree ; and on visiting the ship, found her in excellent order, and everything going on well on which is very strong, and I can see no reason why you cannot recover all the expenses of repairs, as well as bottomry interest, and all expenses connected therewith. The ship has been dismasted by encountering ex- traordinary stormj weather. It was the intention of Mr. Brice to char^ 4 per cent, for lifting the bottomry, if I had not come here. The ship is getting along very well, and I hope will give a good account of herself at the end of tne voyage. Your son is in good health and spirits, and will write yon by this mail. The captain having sold all his surplus stores at Melbourne, finds himself now short for the homeward voyage, and will have to buy. It will be very well if I do not have trouble with him yet. I remain, dear sir, yours tnilv, ALBERT BETTS. Deab Sie — Since writing the within, your two letters, of 14th December, has been duly received, and contents noted. I find nothing wrong about your son. I have asked him about the reports in your letter, and also the captain. I think it is all nonsense. Your son is young, and I see nothing that any sensible man would take notice of. He is, I think, as steady or steadier than the most of young men now-aday. Give yourself no alami about him, for he is all right. The ship is taking in cargo slowly — ^hav- ing now on board 180 tons. Your interest will be carefnlly looked after. I remain, yours trulv, , ALBERT BETTS. [Marked C.N.8., August 18, 1871.] . " ^ "; , • 1*. ,.,.>.„ . If 0.17. * QueenstcyKm^lstJuli/ylQGl. Captain Albert Bbtts — Dear Sir.— I received your kind favour of the 29th, and was pleased to hear from you. I felt disappointed at not seeing you on board ; but the time only being about 15 minutes, that it give no time, as it was iu the night I observe the contents of your letter, and no doubt but all was done and will be for the best. I have no other wish but that right should take place to all concerned. Business matters is better discussed than written, therefore when we meet, which I trust will be soon, all will prove to be quite in keening with the emergency of the matter concerned. I ob- serve tnat Mr. Idiller thinks well of what is done, and Mr. Y., no doubt, will approve. As to tho Captain, I fully intend to treat him in every way civilly and straightforward, and will kindle no fires, add to or inter- fere with the interest of all. It is well for you to stand on the ground you havti taken. I feel satisfied you have done what is right, as far as circumstances would admit. "No word of the ship yot. This three weeks the wind has been east, or no wind at all ; it is now east, after a rainy uight. jou in ] I hop sickness trouble. [Harked £ Gaftain Dear way of 1 bourne i recoiled the acco I will b( that acci as matte [UirkedH James S Sir—] Tree det here. I who has in my pc bnndred fifty-five bers to t pence, v> Griffiths reducing Ohincha Tar as I ( yon say lis acts xcept i an well nako th imount balance [Harked t 9th, 1867. on visiting f on well on jhers to you, san give yon his protest, recover all all expenses nnteriug ex- ce to charge !. The ship nt of herself spirits, and his sarplns t ^ard vo ya^« trouble with T BETTS. )er, has been out your son. the captain, nothing that as steady or self no alami slowly — ^hav- looked after. r BETTS. lull/, 1867, was pleased I board ; bnt as it was iu nil was done right should icnssed than ill will prove cemed. lob- 7"., no doubt, lira in every i to or inter- the ground ;ht, as far as three weeks ^flera rainy 115 night. Ae soon as I give her her orders I will lose no time in seeing you in Liverpool. I hope Mr. H. Vanghan is quit« recovered. I trust he will have no sickness here ; it is bad enough to be from borne without any more tronbla Yours truly, JAMES SMITH. [Harked Kl, C.H.S.] No. 18. Gaftain Albbbt Bbtts. — London, 2Mh Aitguat, 1867. Dear Sir — In settling with Captain Griffiths, I found that you had, by way of mistake, taken the final settlement at Gallao, containing the Mel* bourne account. I have put off the settlement to I get it sent up. Yon recollect you took it from among the other bills of Melboome to make up the account that evening. Please send it by way of first post and oblige. I will be less troubled with his settlement than I thought, and if I had that account there is much in it that he will acknowledge and refund, as matters now stand. Nothing done with the ship yet. , , ;, .^ , , Yours truly, JAMES SMITH. ., Utrked HI, cn.s.] '^■'•' ■^■^■^- [No. 19.1 ' " "-' ' '■" ' Callao, December 21, James Sioth, Esquire, Saint John, N. 6. Sir—1 arrived at this port on the eighteenth, and found the ship Palm Tree detained here for funds. I sent her to sea the day after I arrived here. I found the bond in the hands of Wm. Gibbs & Co., of Lima, and who has endeavored to collect the last farthing. I now have the bond in my possession, endorsed over to myself. The bond was for eighteen bnndred and seven pounds seven shillings and one penny sterling, with fifty-five pounds per cent. Bottomry interest amounted in round num- bers to twenty-eignt hundred and one pounds seven shillings and eleven pence, which sum I had to pay at the current rate of exchange. Capt. tfriffiths says he sold the surplus stores at Melbourne for the purpose of reducing the amount of bottomry. I will, however, follow tne ship to Chincha, and endeavor to give you more information by next mail. As far as I can see Capt. Griffiths is steady ; but I think when you say that 7on say all. As to his honesty, I will know more about that when I see lis acts at the Islands. To turn him out here would be very expensive, xcept through drunkenness, and he having now done all the damage he tan well do on the present voyage. 1 have thought it best to let him nake the voyage unless something more turns up. , rr ■■■'■ : "i I remain yonr obedient servant, ALBERT BETTS. *r Am« unt drawn from Guano Company on account freight : — £3,500 sterling at 43,— $li»,o34 38 imount of bottomry and int'rst, 2)801 78. lid. at 36^,-18,419 63 Balance of amount drawn, [Ifwkcd C.N.8. Aug. 18, 1871.] 15 *'U .u% 11,114 75 ^1 W 116 r If;.-. ALBERT BETTS. [No. 20.J Chincha Islanda^ tebt 2l» 18fi] ZhXES Smith, £sq., Saint John N. B. — Dear Sir— The Palm Tree will be ready to leave this place on tlj 27th or 28th of this month, we having bot. time, that is to say every d«i saved from lay days. We are to pay to the Peruvian contractors thlrq seven Peruvian dollars — her daily expenses amounts to about this sun and would have to be paid on arrival at her destination, as it would I riostly seamen's wages and provisions. Everything is seemingly goii^ on well on board the ship in very good order, and I thought it wellt hurry her home on account of her class running off, for if you intend sell, the length of class will be a great object. She is now drawing feet 4 inches fore and aft, and is the finest looking ship here — remarkej by everybody. I remain yours truly, [Harked cn.b. Aug. 18, 1871.] Ccdlao, March 1 Zth, 1 867. | James Smith, Esq., Saint John, N. B. — ■ Dear Sir. — Your letter of February 9 came safe to hand, and contenj duly noted. The ship had sailed the day before I received it. She Id this port on the ninth, about 4 inches deeper than the surveyor'* marl] drawing 20 feet 10 inches, even keel. I enclose a bill of exchange G. W. Roberts for a fore-yard supplied for ship Arracana^ and also topi mast for eame ship from the Palm Tree, I have taken a bottomry i the freight, ship, tackle and apparel ; for the bottomry I have takel uj)on her on account of Underwriters at fifty per cent, bottomry pn minm; after advertising, no person being found to ofifer funds 1 ha<| supplied them myself. I remain yours truly, .,»,., f'...;.,,^ ,'r'i-^.,',..... ■ ALBERT BETTS. I tlfarkedc.K.s.Aug.l8,mi.] -an bnsi !• :»i,iUm« liit^W- (ia09/ No. 22. Agreement between James Smith and D. & T. Vaugl marked A., c. n. s. No. 23.., J^ortgage of Palm Tree,: James Smith to Henry Vaughai .7!", / marked D., 0. N, 8. M Juoffft ttorf . [No. 24.] •' -'t.': $2,000. Saint John, N. if., 28«A January, 1864. | Received from D. & T. Vaughan, two thousand dollars i/U account JAMES SMITH. [Harked B2, o.n.s.] •' ; '' '-^ ^ ' • -" ;- ■■ ' [No, 85.] *l,00a . Saint John^ N. B., Z\at March, 1864, | Received from D. <&T. Yanghan, one ihousapd dollars onnacconit JAMAIS SMITH. [Harked CS^rC'i-B*] [No. 26.] $1,000, Saint John, N. B., 2Ut April, 1864. Received firooi D. & T. Vaughan, one thousand dollars on acconnfl ' JAMES SMITH [Harked D'2, c.K.s.] ii; JERT BETT8. irch 13«A, 1867. Wo. 87, .,000. Saint John, K B., 30//t April, 1864. Received from D. & T. Vanghan, one thousand dollars'on account. JAMES SMITH. larked E2, c.N.s.] No. 38. Saint John, N. B., May lOth, 1864. Messrs. D. & T. Vaughan will please give the bearer, Robert Smith, ro thousand dollars, and oblige. Yonrs, truly, JAMES SMiTH. 2,000. Saint John, N. B., lOth May, 1864. Received from D. & T. Vanghan, two thoasand dollar^ on account. Harked F2, c.N.s. j JAMES SMITH, per Robebt Smith. No. 39. |2,000. Saint John, JV. B., 28th May,l66i. Received from D. & T. Vanghan two thousand dollars on account. JAMES SMITH. larked J2, c.N.s.] No. 30. J,000. \ '• '* ■' ^;- .^ Saint John, N'. B.,Qth June, 18Q4. b the Cashier of the Bank of New Brunswick : ■ i Pay to James Smith, or bearer, two thousand dollars. D. & T. VAUGHAN. tfarked c.N.s., Sept. 19th, 1871.] ^ l^o. 81. 5,000. Saint John, If. B., 21th July, 1864. Receivied from D. & T. Vanghan five thousand dollars on account. JAMES SMITH. forked 12, c:n.s.] r?tv];Wi!^ -^ .-j:>*: n;.' No. 32. ... lessrs. D. & T. Vauohan — Gentlemen — Please let my son Robert have two thousand dollars ^2000), and oblige yours &c. rr ;- stn t ■ J-A.MES SMITH. Saint John, N. B., 9th June, 1864. larked A2, c.s.s.] , ,^ ■ J No. 33. ' "'' ' '"'•">-: • 12000. ... .... . " St. John, If, B., ISth Auyust, IQQi. Received from D. & T. Vaughan, two thousand dollars on account. „ . ..,,. JAMES SMITH, prRoBEBT Smith. larked W2, c.N.s.] ' -^ • No. 34. P2000. i^t. John, Ni B., 29d September, 1864. Received from D. & T. Vaughan, two thousand dollars on account. JAAiES SMITH, pr Robket Smith. .,,. farktd 02, CN.a.] ; No. 35. St. John, N: B., Sept. ZdoT, 1864! Meesre. D. & T. Vasughan will please give the bearer, Robert Smith, |w thouiand dollals, and ohtirii^ )t to the a0coaut of yours j^'aly,^ ked XI, C.H.S.] JAMES SMITH. li 118 No. 36. $2000 ' St. John, N.B.y^th October, \SU. Beceived from D. <& T. Vaughan, two thoasand dollars on acconnt. JAMES SMITH. [Harked 02, aN.B.] No. 87. $4,000. Saint John, K B., 29th October, 1864. Beceived from D. & T. Yauffhan, four thousand dollars on acconnt. JAMES SMITH. [Harked H2,c.N.s.[ No. 38. $4,000. St. John, N. B. \^th November, 1864. Beceived from D. & T. Yanghan, four thousand dollars on account. JAMES SMITH. [Harked K2, o.n.8.] No. 39. $1,000. St. John, Nl B., 26th Nbvemher, 1864. Beceived from D. & T. Yau^han, one thousand dollars ou account. JAMES SMITH, pr Bobbst SMrrn. [Marked 82, C.N.S.] No. 40. $1000. St. John, K B., Ut Beer., 1864. Beceived from D. & T. Yanghan, one thousand dollars on account. JAMES SMITH, pr Bobt. Smith. [filarked R2, C.M.S.] -r,. ,'-r. Nor 41. $2000. St. John, If. B., Nbvr. 2Qth, 1864. Messrs. D. & T. Yaughan — Please pay the bearer, Bobert Smith, two thousand dollars, and oblige yours truly, JAMES SMITH. ($1,000 paid on within 26th Novr., 1864; $1000 paid 1st Deer., 1864.) [HarkbdZl,c.N.B.] No. 42. $1,000. St. John, Nl B., \Oth December, 1864. Beceived from D. & T. Yaughan, one thousand dollars on acconnt. JAMES SMITH, pr B. Smith. [Harked Q2, c.n.s.] No. 48. $1,000. St. John, If. B., 13th December, 1864. Beceived from D. & T. Yanghan, one thousand dollars on account. JAMES SMITH, pr Bobbbt Smith. [Harked F2, O.N.8.] No. 44. St. John, W. B., December 10th, 1864. Messrs. D. & T. Yaughan will please give the bearer, Bobert Smith, two thousand dollars, and charge the same to account of, yours truly, JAMES SMITH. [Harked Yl,o.H.8.] No. 45. $2,000. St. John, If. B.y 1th January, 1865. ^ Beoeived from D. & T. Yaughan, two thousand dollars on account. JAMES SMITH, pr Bobbbt Smith. (Hacked Tt, en.!.] her, 1864. iccoont. IITH. her^ 1864. Eicconnt. SMITH. ber, 1864. accoant. SMITH. her, 1864. iccouut. T Smith. ce»*., 1864. iccoant. T. Smith. Mh, 1864. Smith, two SMITH. 1864.) her, 1864. acconnt. K. Smith. .her, 1864. accoant. KT Smith. 0«A, 1864. bert Smith, irs truly, SMITH. ary, 1865. 1 accoant. BT Smith. 119 No. 46. St John, N. B,, January 1, 1865. Mtissn. D. & T. Vanghan — Will please give the bearer, Robert Smith, two thoasand dollars, and charge the same to acco^nt of yoars traly, JAMES SMITH. [Marked Wl.CN.s.] No. 47. No. 104. St. John, N: B., Uh July, 1864. To the Cashier of the Bank of New Brnnawick. Pay to James Smith or bearer, four hundred dollars. 1400. D. & T. VAUGHAN. lM<«rkedc.N.s., Sept. 19, 1871.] i ^ '- No. 48. St. John, K B. Feihy. 4th, 1865. Messrs. D. & T. Yaughan will oblige me by giving me four hundred dollars to-day. JAMES SMITH. (Received the within this 4th Feby., 1865. — James Smith, prRoBT. Smith.) [Harked Vl, c.m.8.] Messrs. D. & T. Vauohan — Gentlemen— Please let the bearer, Robert Smith, have two thousand dollars, and oblige ..a r .i. ,-, JAMES SMITH. Saint John, Nl T.., Febmary 2th, 1865. [Received the within amount this 9th February, 1866, James Smith, per Robert Smith.] ' [Harked Ul, C.M.S.] No. 50. Fo. 106. St. John, K B., 24th Fehruary, 1865. To the Cashier of the Bank of New Brunswick : Pay to James Smith, or bearer, two thousand dollars. $2,000. D. & T. VAUGHAN. [Harked c.n.8., September 19, 1871, Ko. S.] No. 51. Messrs. D. & T. Vaughan— Gentlemen : Please let the bearer, Robert Smith, have two thousand dollars, and oblige. Yours &c. &c. JAMES SMITH. St. John, N. B., March 9, 1860. (Received the within this 9th March, 1865.— Jambs Smith, pr Robkbt Smith.) [Harked Tl, c.m.b.] No. 52. Messrs. D. & T. Yaughan — Please let the bearer, Robert Smith, have two thousand dollars, and oblige, yours, &c. &c., JAMES SMITH. St. John, JV^ B., 8th March, 1866. [Received the within amount this 8th April, 1865— Jamks Smith, pr Robt. Smith.] [Harked SI, O.N.S.] ..;.;<.; No. 58. 12,000. St. John, K B., 6th May, 1866. Received from D. & T. Yaughan two thousand dollars on acconnt. JAMES SMITH, pr R. Smtth. [Harked US, c.ii.B.] n 120 No. 64. ^t. John, N'. B., 6th Mar/y 1866. Mesbrs. D. & T. Yanghan will please give the bearer, R Smith, tv thousand dollars, and oblige, yonrs truly, lii J/ A;. , JAMES SMITH. [Marked Rl, cn.r.] No. 55. 112,000. St, John, JV; li., 13th June^ 1865, Received from D. & T. Yaughan, two thousand dollars on account, per ordtT. : V. M JAMES SMITH, pr Eobert Smith. [Marked Y2, c.m.s.] No. 50. ♦2,000. : St. John, iV: JS., June the ISth, 1866. Messrs. D, & T. Yaughan will please give to the bearer, Kobert Smit two thousand dollars, and charge the same to the account of, your jjeggrg truly, JAMES SMITH. [Harked Pi, c.n.s.] No. 57. ■--■■.;/■,'... J. \-v' .IC J^ .'i 1160. St. John, K B., Sth July, 1865. Received from D. & T. Yaughan one hundred and fifty dollars on a^89 count. JAMES SMITH, per Root. Smith. [Marked L2, C.N.8.] "---•' -^' },000. Recei [Marked Messr housan( blige, J (Receiv [Marked ,i'-:m.'* st'tni't, .■'..•l'" lars. !22 We 144 1? No. 68. [.V.iC-J r-i Messrs. JD. & T. Yaughan — Gentlemen : Please let the bearer, Robei Smith, have the sum of one hundred and fifty dollars, and oblige Yours &c. , . . ,! ;, ,. .. JAMES SMITH. St. John. N. B., 8th July, 1865. (Received the within this 8th July, 1865 — James Suite, pr Robert Smith.) [Marked 01, C.K.S.] No. 59. 1489.29. St. John, K B., llth July, 1865. Received from D. & T. Yanghan four hundred and eighty -nine doUai and twenty-nine cents, on account. "- '^'^'T' JAMES SMITH. [Marked X2, c.x.8.1 •>1 .inii^feBSv-A' No. 60. i.Knv, St. John, K B., July Wth, 1865. Messrs. D. & T. Yaughan will please give the bearer, R. Smith, whi money is convenient to-day — to-morrow will do for the balance, an oblige, yours truly, '^^ .y-r t^viyi;*,- JAMES SMITH (Received two thousand dollars on this ordec this 15th July, 1865— Jambs Smxi iM<:}«fiKJk'' pefRoWR Smith.) TMKJfWJT nra • [Marked QI.CH.B.] No. 61. $2,000. " ' ' St. John, JV. B., I5th July, 18«6. Received fromD. &T.Yatighad,'two thousand dollars on new acooun JAMES SMITH, pr RoBBRT Smith [Marked N2, C.M.8.] ,4..^..i ,^i t-i-y^ 160 m 41 1177 bai F. o. 1 Discoi Stitt & ( [Marked (Duplica Meswfii.. Bar*. V 3 I 2 "Per Si [Marked c. (Duplical Messrs. ] [Order datw 64 ban 1 Per J [Marked c th Mayy 1865. B. Smith, tw [ES SMITH. ES SMITH. th Julyy 1865. v^ dollars on a '8^ RoBT. SMim. bearer, Bobei oblige ES SMITH lEBT Smith.) h Jvly^ 1865. ty-nine doUai lES SMITH. No. 62. 6,000. St. John, N. A, 1 1th July, 1 865. Received from D. & T. Vaughan, six thousand dollars on account u JAMES SMITH, pr Robt. Smith. [Hai;kedM2,c.MA] ; .... No. 68. St. Johiiy M li.y nth Jidy, 1866. Messrs. D. & T. Vauglian will please give the bearer, R. Smith, six housand two hundred dollars, and charge the same to my account, and blige, yours truly, JAMES SMITH. (Received on the within order, six thousand dollars, this 17th July, 1865— James Smith, pr Robt. Smith. [Marked Nl, C.N.S.] .-V.l OWl.i .' No. 64. Commercial Jiuildings, 11 Water street, Liverpool, 26th May, 1864. th June^ 1865 > on account, i OBEKT Smith. he 13th, 1865. , Robert Smit lount of, youijjeggjg^ ^^ qj^sq,! & Co., Liverpool Bought of Fallows, Stitt & Co., Sneeeaiora to the late firm of StItt Bro*. M Co., Iron, Tin-Plate, and General Metal Merchants. Ian. Particulars. Tons. Cwt. Qn. Lbs. !22 Welsh iron, f round, 1 10 2 24, " I « 3 1 2 8, " I " 2 3 24, 1? " 1 « 2 1 24, 60 « 1^ " 4 1 8, m " l} " 6 10 2 20, 41 « If « 1 10 18, ...-Jic.;/ ! * ^JuX 'y nth, 1865 L Smith, whs ) balance, an ES SMITH i— Jambs Sbiiti h July, 1865. i new aooouD BERT Smith. 177 bars. 20 14 3 14 at £7 158.=£160 158. 4d. F. 0. b. here per Eleanor, at St. John, N. B. Discount, 3 ^)cr cent. Terms— cash, less $3.70 discoant. Fallows, Stitt & Co., pass Customs entry. [Marked c.n.s., September 19, 1871, No. 4.] [.V x^ ^r.'oj .'i:' Jf|'>5 ,.<;.K.-i bs-'teb'] No. 65. , .,. ... (Duplicate.) 19, Brurmoick atreiet, Liverpool, 21th JMy, Iffff4. '^ Messrs. Miller & Mossm^u — Bought of Hunter & McArthur, , . LateN.*H. Oe»*Ob. " -^ Iron, Steel, and Tin Plate Merchants. Ban. Cwt Qn. V 3 best refiucd iron, 10 1-2 x 7-8, 11 2 ) „. ,-„ -j, „« ,.-„ ^a 2 do. do. 8 X8.4; 5 2r*"«'^^-"=^^^^'-*'*' Per Sea Oem. We pass entry. _ ' ." '• - [Marked C.N.S. S. pi. iTth, 1871, No. 6.] No. 66, y I. vIrrT. ti .. .. , ., Ziverjgool, Jkne 1864. Botl bf the Mersey Steel and Iron Oo. [Order dated 80th May.] 64 ban best iron 5 1-2x7-8, 146 2 26, at 9s. 6d., — £69 4s. 5d. Per Princess Boyal. , . .. .,.. . •- , [Marked gn.s. September 20, 1871, No. 1] "" | > .vV. ,!?«r M aj^ ,a:'. > hvih^ ' (Duplicate.) Messrs. Miller & Mossman — . t: ^2t No. 87. Commercial BuUdinffs, 17 Water Street, Liverpool, 4th July, 1864. Messrs. A. Gibson & Co., Liverpool, Bought of Fallows, Stitt & Co. BneocMon to the lat« Finn oTStltt, Brot. M Oa Iron Plate and General Metal Merchants. 13s. lid.— '£13 18 4 13s. 8d.«-i 13 13 4 > 13s. 8d.— 80 10 [Order SSth May, OunpbelL] 20 bagsc leok spi keNt uls, 6 inch, 1 ton. 20 it « H 7 i( (i 20 t( t< U 8 t( <( 20 ({ « {( 9 « It 40 «< ({ it 10 (( .^11' ■ 40 « i( « 12 i< « Cr.160 bags. 8 tons. Discount — ^less 2 per cent.. £108 1 8 2 14 1 F.o.b.head, per " Princess Royal, at St. John. N. B. £105 7 7 Terms — cash, less 2 1-2 per cent. — F. S. & Co. pass customs entry. [Marked c.n.8., Sept 20, 1871, No. 2.] No. 68. Messrs. A. Gibson & Co. May 28. To goods per invoice. Liverpool, 6th July, 1864. July 4. To Fallows, Stitt & Co., Dr. £160 15s. 4d. 3 per cent., 4 16 5 £155 18s. lid. « £108 Is. 8d. 2 1-2 per cent., 2 14 1 105 7 8 Settled 6th July, 1864, Entd. 21st July 1864, J. R. [Marked c ma, Sept 20, 1871, No. 8.1 r ; £261 6s. 6d. Fallows, Stixt & Co., pr Alex. Lenam. Na 69. Mr. Yaughan (Shipped per PrinceM BoyaZ to St. John, 4th July, 1864.) Bought of Munt's Metal Company Limited. Charles Moss & Co., Sole Agents for Liverpool. (Duplicate.) Spot of white paint on each end of rods. June 20. 43 p. m. rods, 1 inch, 15 20 167 « " 7-8 44 1 4 July 2. 8 « " " 2 16 61 2 12 8 1-2 July June une 29. 1 1 casks butt bolts, 13x7-8,5 2 1 « « "6 8 1 " «• "5 4 1 " " "5 4 casks, 5s. 5 per cent discount for cash in 14 days. [Marked c.n.i., Sept 80, 1871, No. 4.] 20 £244 7s. 6d. 100 6 8 1 £345 14s. 2d. My, 1864, &Co. BrtM-AOo. 1 Merchants. 13 18 4 13 13 4 80 10 08 1 8 2 14 1 5 7 7 itry. 'uly, 1864. iDr. 65 IBs. lid. 05 7 8 61 6s. 6d. • & Co., X. Lenam. T Limited. £244 78. 6d. 100 6 8 1 345 14b. 2d. 123 No. 70. Invoice of Ooods on board the British schooner " H. C. Brooks," Faulkner, Master, of St. John, N. B., by order and for account and risk of Messrs. D. & T. Yaughan there. 2055 square treenails, 26 in.xlf, a $117.40, . $241.20 2030 do. do. 32 " xlf, a 190.80, . 38T.32 $628 58 CHABQES. Cartage $16 ; bills of L., stamps &c and clearance, $19.00 Commission 4 per cent, on $647.58, . . 25.90— 44.90 Ch. Nor. 2. By amount transferred to I>bt. of Messrs. D. & T, Yaughan, as cash this date, K. ft O. E. New York, 2d November, 1864, [Marked cn.s., Sept. 1, 1&7 1 .] $673.48 $673.48 EDMISTON BROTHERS. . No. 71. (Duplicate.) 85 Harrington St., Toxteth Park, Liverpool, 29th November, 1864, Messrs. Miller Ss Mosman, per Thos. Vaughan, Bought of the Mersey Steel and Iron Company. Order dated !8th Xovember. Knee Iron. "^ 68 bars 5x3 1-2, abt. 12.2, 12 » 11.9, 12 « 11.3, 12 ** 10.9, 12 " 10.3, 4 « 9.0, 424 1 14 ' • '• '' ' ■ ■ ■ ^•■,-= ■ - 71 2 7 68 24 65 1 2 62 3 1 19 3 14 712 6 88. 6d. £302 128. 6d. 60 taper bars, 6 in.wide,4.0, 62 '* 4 1-2 " 3.4, 62 **■ 4.0, 304 bars. Per Haven. [Marked o.n.8., September S, No. 6.] 84 2 12 105 2 5 77 1 22 267 2 11 lOs. 6d. 140 9 9 £443 2s. 2d. ii» ilt .J-.v- No. 72. (Duplicate.) 19, Brunswick Street, Liverpool, 29tR November, 1864. Messrs. Miller & Mossman. Bought of Hunter & McArthur, Late N. &, H. Goz & Co., Ordered 34th NoT«mber. Iron, Steel, and Tin Plate Merchants. Bars. Tom. Owt Qrs. Lbs. (V) 45 beet refd. iron, 3 8-4x3-8, 19 1 23 do. do. 3 l-2x « 14 2 18 68 Per Raoen. [Marked c.n.i., September 20, 1871, No. 7.1 16 d 8 3 18 9o£ £19 158. 3d. ^18 Its. 6d. Messrs. D. & T. Vaughan, Dr. To charges on oakum, " " 304 iron knee bars, « " 08 bars iron, 124 No. 73. To Messrs. ^liller & Mossman. T. C. £48 2 44.T 2s, 2(1. 48 1» 2 17 19 15 ;{ 2 3 3 18 63 2 2 7 £510 17s. 5(1. Shipped per Raven, for St. .John, X. B, Dock and Sawn dues and Entry, £2 14s. ; Bills Lading, Is. 6d. £2 15s. Gd. Prera. insurance on £620, at 70 ))or cent., £21 14s. Tolicy, 1 88.— 23 2s. Od. • '^ " ' £25 178. 6d. Liverpool, 9th December, 1804, IMiller & Mossman, per Wm. Simpson. [Marked C.N.8., Septbuiber 20, 187», No. 8.] No. 74. (Duplicate.) 72 <& 61 Jiridgewater St., and AQ Dale St., Liverpool, Nov. 2Qth, 1864. Mr. Vaughan, pr Messrs. Miller & Mossman, Bought of Graham & McArdle, .. ! , 1 . Cotton Dealers. To ship Haven. (V) 40cwt. Brown Oakum, at 24s. nett cash, - - £48 Os. Oil. [Marked C.N.8., September 20, 1871. No. 9.] ; ; ■ ■ ,. .r . .;;. (Duplicate.) Messrs. D. & T. Vaughan, No. 75. Liverpool, 15th JFebiniary, 1865. To Alexander & Lott, Dr. 1-72 73 = pegs, rope and 1 truss canvas ; 200-213 = coils wire rope, and 1 truss jib hanks ; 100-145 coils manilla rope, per Jva/os, for St. Johns, N.B. Invoice of cordage bought by Messrs. D. & T. Vaughan, [Marked O.N.S., September 20, 1871, No. 10.] Amounting to £547 7s. 2d. No. 76. vn? (Duplicate.) Dudley, 22d February, 1865. Messrs. D. & T. Vaughan, To Tinsley, Wright & Co., pr Alexander & Lott. Per invoice of anchors and chains, .... £343 i9s. 6d. Per Kalos, for St. John, N. B. [Marked C.N.S., September 20, 1871, No. 11.] No. 77. (Duplicate.) Messrs. D. & T. Vaughan, f.r. j.?r (iri Vi^ Liverpool, I5th February, 1805. To the Edinburgh Roperie Sailcloth Co., Cordage and Sailcloth Manufacturers, per Alexander & Lott, Agents, Invoice of canvas, ifcc, per J"aZo«, for St. John, N. B., £280 lOs. 9d. [Marked o.».s., September 20, 1871, No. 12.] .. .. .j t^^JtsJi ossman. c. 1» 2 .T 3 17 18 2 2 7 i;2 15s. 0(1. 23 2s. 0(1. £25 17s. ijirapson. 6(1. 2Qth, 18«4. Vrdle, £48 Os. Oil. li f t - J mri/, 1863. tt, Dr. ire rope, and Johns, N. B. £547 7s. 2d. uai'i/, 1865. • & Lott. £343 19s. 6d. uary, 1865. Co., turers, , Agents, ;280 16s. 9d. 1^5 No. 78. Liverpool, Qth Aur/ttst, 1865. Thos. Vacotian, Esqiiirc : Dear Sir— This is to iiilunn yuu of my arrival lioru, in the enjoyinout of good healh, and 1 trust you and yours is enjoying the same blessings. My good friend Henry is *vith mo, at 5S Rodney, and I am taking as good caro of him as I can. The Palm Tree is here all right, in a little over 20 days. The captain gives her a good name. She works well, and sails well, and is tight. This is quite satisfactory. She is in the river, as the tides are low. She will get into the dock on Monday, BusincaS is dull for ships at present. The opinions is conflicting ; sumo thinks tliat business will improve ; some is doubtful ; but by l^y the time she gets out, a better state of af- fairs may be hoped for. Coals from Cardin, 20, to Callao, and 05 back for guano. I have seen a party or two in the Australian trade ; they think that the ship would bo a splendid ship for that trade; and should she not sell, would make me an olfer for her out ; and it might be, one of thcin may make an oft'er to purchase ; but it is too soon to form any opinion about her yet. Mr. P. Miller has entered her, and Mr. John Miller is in London, and when he comes back will see him as to commis- sions, ite. I hear some complaints about him undervaluing ships under what the market would even suggest. Bad and all as it is, but I think he will do what he can for me, and 1 will try and do what I can for my- self. I have not had time to see many of my old friends yet, but wdl soon. Two of them is from home, and I have some ho|)es both would purchase. I seen one of their sons ; he told nje that it was quite pro- bable his father would purchase. There is three of my build here now, and they are and have been doing well ; over l-t years old ; delivering Calcutta cargo as well as any ship can do ; 93 days passage ; and looks as good us ever; so far as shape goes, none excepted. I need not weary you with very long ejiistle, as I have little to interest you with at present. Please, give my compliments to Mr. D. Vaughan. I hope Mrs. Thos. is well. Meantime, I am, yours truly, with respects. JAMES SMITH. I hope Mr. Snider has forgiven Mr. Robinson and James Dunn. P. S. — Several people has said they will look at the the ship when she comes into dock : two is purchasers, if we can come on terms. [Marked L, c.N.s.] • ■ ; No. 79. '■ '■ ■ ' ■•- '■"-^' J':' V .>y Liverpool^ \5th September, 1865. Thos. Vauohan, Esq. : My Dear Sir — Your very acceptable letter is duly to hand, and con- tents is duly noted. I am pleased to hear that you are well, as this leaves me. But as to the ship — true, she has done better by passage than any this spring, and all on board of, officers, tells me she is fast ; and by looking over her log book it looks like as if she had a choice of winds, she would acquit herself well. Every person speaks well of her in every respect. Little fault is about the size ; the chief fault is low freights. I believe no ship in the market, of a colonial ship, would sell as well by fifteen to twenty shillings per toq. Plepty people looking at her, but no offers, as I tell them not to make m offer except it is liko the price that m would bo tukon, as tilings is not going to remain long tins way, and I m y as wol) lose by lying as selling, and better, and will ultimately hi.ve a uliancc to do better with her. Wo are a very easy going, modest people about Red Gross street ; but when the right time comes the spirit may move ; no doubt it will ; a person looking on, is something like the old saving, that a watched pot is long a boihng. My time appears to pass along quickly; but still looks tedious enough; the pleased looks and peculiar actions of our landlady, helps to make things go how. Mr. H. and mo has some quarrels about the sugar in the mornings, and the youthy ire now appears to come in for sweepstakes. 1 am endeavouring to do the best I can with H. and David ; bnt when they get together they give me the worst of it. Mr. Henry has been the last three weeks up by daylight, and off to Birkenhead. I am pleased to think that this week, or tbis day, I ho])0 will easo him, as the Henry will likely be loaded, he may be thankful. Should nothing come up in the course of a week or two, Birkenhead will be the abode of the Palm Tree for awhile, as the dock dues on this side is high. Then 1 had better close, and push my fortune, or serve my time to wood and iron ship building, as that will be the best, and this can be done in Saint John very well. Don't be tired of such nonsense, but have nothing to write to interest, as Mr. H. will give you all the busiuess news. Meantime, youre truly, JAMES SMltH. You will be posted up about the iron, and Mr. Wm. E. Smith and Best. [Harked H, o.n.r.] -.;. - ,' . '"' No. 80. Ziverj)ool, 25th A^ovember, 1865. Messrs. D. & T. Yacouan : Gentlemen — 1 wrote to you by last packet. Since then little has transpired of interest. It appears that a little excitement has got up about Spain blockading the Chilian Ports, but it is thought little of here on 'Change, as all agree that nothing of importance will come out of it. Bank rates has fallen, and is believed will fall, and Bombay outer freights is better. Mr. Malcom chartered 1760 ton Quebec ship yesterday, to Bombay, coals from Birkenhead, at 338., and not to load before April at Bombay, at 508., all free of consignments; this will pay a ship her size. 408. is offered to Aden from Biikenhead. This looks better. But ships to load in March at Bombay cannot get over or quite 45d. As to the Palm Tree, she is still on hand ; and my friend Mr. W. Miller still tells me that she is losing no money by lying in dock ; that she will pay by keeping her to first of the year ; this is to depend on how freights will be, but my own impression is, that every^ thing in way of ships looks better. Mr. H. Vaughan has been out frequently, and I do believe is at the present better than he has been for months past ; only he is a little careful in not exposing himself much, to try and be perfectly well before he makes too free with himself. Although I mentioned to yon the peo- ple in Red Cross Street was very easy people, you are the only one I «ver mentioned such a thing to only Henry, and very modestly to him ; and I have little doubt but we will get out all good friends, as 1 know at times no one can do as tbey would wish to do, and so far as I am con- cerned) I hope to get through without giving offence, or yet getting .''*Sik way, and I I altimatelj >ing, modest cs the spirit ing like the appears to leased looks how. Mr. figs, and the idcavouring ;et together three weeks nk that this II likely bo \c course of Im Tree for bettor close, ip bnildinff, n very wefi. > interest, as re truly, SMITH. Smith and nher, 1865. n little has has got up little of hero Tie out of it. Hter freights esterday, to 3re April at (lip her size. But ships As to the er still tells ivill pay by reights will ships looks )elieve is at le is a little well before 00 the peo- only one I tly to him ; as 1 know 3 I am COD- yet getting 127 offended ; my mind is made up, to make the best of all, and to take all for the beet ; and I think, after this, 1 will be able to brag aboat my patience. I really expected some sort of an answer to my letter of 2lBt September. But a gi d time coming. I hope yon are all quite well. Meantime, I am yours truly, []fkrk«dF,o.i(.i.] No. 81. JAMES SMITH. Liverpool^ 2Ath Dec, 1805. Messrs. D. & T. Vauokan : Gentlemen— Having none of yonr much esteemed favors to reply to, I write you a few lines by way of Portland, to state to you that as the time allotted to me by agreement, to replace to you the money you have advanced on the ship; and as nothing can be done as to a sale, at a price that would approach replacing the money, I do not feel disposed to, as it were, throw awaj' so much money : seeing, as I do, interest ao- cQmulating, and the ship^s class wearing off, I thought of putting her on a voyage, as outward freights is getting pretty good. I could get to Melbourne, for goods, and short compliment of passengers, £4,500 ; and make sure of £3 5s. Od. for guano. Back she would bring 2,200 tons, if not more — this would be £7,050 ; in all, gross, £11,500. This would bo done in from twelve to fourteen months. She should leave some money out of that, and on her arrival sell for more than now. I am offered to Bombay, out 35 for coals, and to Aden, 41, and to Shanghai out for coal, 50, and home for sugar and manilla; £3 2s. 6d., would be £12,375. This all looks as if it would leave something, and the ship might sell on the voyage. Now yon know that she is losing as she is. I seen Mr. H. Vaughan this morning, and told him of these things. He said he did not wish to incur any responsibility. I asked him what se- curity would do ; he said bank security would do. Now you know it would be ditHcult for me to get Bank security. I told him I would put her into his hands in toto, only let her make the voyage, and Mr. Miller try and sell her on the voyage, so as to turn her in better than she now is. 1 do not really see but what the money could be well se- cured on the ship. I said no more, but went to see Mr. Peter Miller and tell him all about it, and see what can be done. I wish to do any thing in my power. Mr. Miller is in London. I must wait till he comes back ; meantime 1 thought I would write to lot you know how matters stood, and I cannot come to any other conclusion hut that you will give me a chance to make the best of it, and keep you secured as well as you can be secured. Aly wish is to replace the money to you, and to do that you dont wish me to make such a loss as long as your money is safe. Safe, as Mr. H. told me yon only want interest. Now if she lies in dock what interest will she pay me. She may lie there, and by and bye have to be sold as well as circumstances will admit. This would not create any pleasurable feeling to you, whilst I would be the sufferer. These matters 1 leave with yon ; hoping, in the end, a kind providence will bring about something that will pull all right at some time. I ac- knowledge I don't feel comfortable, having done myself much harm, and yon little good. Meantime, I would like to hear from you. Yours truly, JAMES SMITH. (Marked K, C.K.8.] ..«.,... ^^ 128 • • No. 82. : . TJverpool, lOth November, 1865. Messrs. D. & T. Vauguan : Gentlemen — Having none of yonr much esteemed favors to reply to of late, I thus address a few lines to you. I have quite a good time, it would appear, in Liverpool, doing that arduous work called nothing ; and truly, after all, ii is not as easy work as I have a wish to be engaged in. Week after week goes round, and nothinp; to show that is really pleasing to me. As to the sale of ships — there have been a few sold, or given away, but no real good ship, of St. Joiin build, has been sold lately. The Palm Tree has a good many visitors, but as yet no real pur- chasers. My price has been such as has frightened them. So it appears, freights is a lit^^le better, and it is hoped and expected will soon improve, that will give stimulus to prices^ of ships. There is two people m the market that is after her, but keeps off to see how freights will be east. I had a man from London about her a few days ago, that you know, and I think he appears to look tnore like business than any yet ; he is to be down the first of the week, and it may be that something will come out of it. The price I have asked is £9 10s. Od., equal to cash. This, as other ships is, at first looked high. I went all round last week, and made a general survey of all the snips for sale, which is not many, bnt I came back more convinced than ever, that she is better worth my price that! those sold at these low prices. I wrote on the 21st Sept. to Mr. Thos. Vaughan, stating if he thought well of it, I would take £9, old ton- nage, from him, or the firm ; and I stated at the same time, I had not even named it to Mr. Henery V., and would wait an answer by return of post ; but no answer of any kind. Yet my candid opinion is, you would do well by so doing ; and even had a shade lower been your reply I would not stood about it. You could work her well. Meantime, I am yours, truly, JAMES SMITH. As no doubt you will be made aware of the ill turn that Mr. H. had, bnt now is about, being able to go out again, lie was well attended by his attentive daughter. She is worthy of much credit for etfieient ser- vices, and profound attention to him. Had you seen us all collected so often as we were, you would imagine yourself in St. John. We are all pleased to see him about again. It proceeded from cold he got, and the effects of (me of the irons they use taking off the copper, falling on his shoulder, in the dock : but all is well. J. S. [Marked G, o.n.s.] ' ; * '^ , > > , .-> . t ' ' . , No. 83. ' ^ Liverpool, ^d Feb. 1866. Messrs. D. & T. Vaughan : Sentl'^nien — Your much esteemed favour, of 15th January, was duly received, and feel much obliged by its contents ; but as yon know my wish is to sell, and will do so at a large sacrifice before sailing. My interest in the ship is not enough to make it an object for me to sail her, but too much to lose. I would wished Mr. H. had left a power of at- torney to cancel the mortgage here, on payment, to any party such power was interested — bank, or otherwise ; it might siived time, and probably cavilling, after a sale is made, if it can be made, as things is here it don t take mach for an excuse ; therefore, I \rould liked to had the sale con- firmed as soon as made, as I had little time to go round. However, I yours, price, f ^, iber, 1865. I reply to of )od time, it id nothing ; be engaged lat is really ew sold, or sold lately. real pur- > it appears, on improve, Bople m the irill be cast. 1 know, and he is to be 11 come out li. This, as t week, and nany. bnt I th my price 5ept. to Mr. £9, old ton- 3, I had not ;r by return ion is, you I your reply ntime, I am SMITH. Ir. H. had, attended by itficient ser- collected so We are all jot, and the ling on his J. S. Feb. 1866. y, was duly II know my iling. My I to sail her, ower of at- such power i probably lere it don^t e sale con- However, I 120 offered yesterday at a price I never before thought about, £8 Ss. Od. car- penters' measurement. Three parties at once said they would take one half of her. The party to whom she was offered is stirring round, trying to manage the other half, and he thinks he will be able to do so. He said he could sold her long ago, had he thought £S lOs. or 15s. would been taken. But to wind the thing up, I have come to the conclusion to make a large loss at once now, if I can manage it, rather than torment myself and others, or in any way risk or subject my friends to uneasiness, or the least fear of loss. As the account is gone out to you of disburse- ments, you will see they have charged the insurance home, 28th April, 1865, £297 ; this you brought into account in the £10,000, if my memory serves me right ; however, you will put that right when you write to them ; this, added to balance of freight, would £1,481 IGs. Id., at the going rate of exchange would leave a balance short of freight paying the £2,000 currency, £154- 2s. lid. stg., of course the interest to be added. It is as well to explain to them these things, as they pay no atten- tion to any thing only what is written by you ; and it would not do to throw any obstacle in the way of any purchaser, so as to effect any arrange- inent I might make. Please be a little clear to them on these points ; as to myself, 1 would as soon have the ship put to your credit in toto, and settle our own afi'airs when I get there, if ever I do get home — it appears long. Would it not be as well to send a power to cancel the mortgage to whom you please, when the money is paid, or approved bills, so no time or obstacle would be in the way. I see nothing of a risk about it for you. Please think it over, and write, as, if possible, I will have her sold. Outward freight is good, 5 Is. 3d. back can be got from Calcutta now, and 36, at Birkenheadj to 5, Aden and Bombay. Meantime, I am yours, with best wishes, JAMES SMITH. P. S. — I still think you should taken the ship at the market value. Yon will not get such a ship, should you want one, in my opinion. ,, [Marked 0, c.n.s.] ', No. 84. ; Liverpool, 11th February, 1866. ^ Messrs. D. & T. Vaughan. Gentlemen — It is to be hoped that Mr. Henry Vaughan and M"?. Y. is safely home to their family and friends, and themselves and friends in good health. By James Difnn's letter to me last mail, Mr. Vaughan's son was quite smart again. This is pleasing to them to find on their return his health improved. As to myself, I am following the do-nothing system, however unprofitable it may he, and unpleasant also. It is a source of regret that last fall, when I first cane, that I did not let her go at the market price. Bad and all as that would been, it is better than it can be now ; interest is going on and age is going on. This week I thought I wo.dd get clear of her, as a loose story was afloat, of two parties after her ; true, there was, but when they come to name their price, it was what I would not accept, as matters now is. I have seen a party that stands well, you may know them, it is Roney, Clows & Co., Chappel Street ; they are a large Bombay house. I put the matter be- fore Messrs. Miller & Mossman. They told me it was out of their power to advance anything ao they stood, and as they were situated ; but I have made no final arrangement as to sailing her, as I wish to sell, and try and 130 close the matter as well as I can. There is onei more after her, and has made an offer for her, cash, which I hope he will mend, and if so I will pocket the affront, and try and get out of this as soon as possible, and will not sail her except no means otherwise is left. Every person that sees her likes her; all the fault is her size, and that is only W'th some. This cannot be altered now. You will be made aware of the Parker' t return. She is in the Brunswick Basin, and will have to discharge, and go into dry dock ; makes a foot an hour of water in dock. I hope a power to cancel the mortgage will be sent, as I will sell if possible ; and the offer I sent to the party to-day, I think will be accepted. I hope this will find you all well. Meantime, I am yours truly, with best wishes. JAMES SMITH. [Marked N, C.H.8.] -, (,...' • • ►• ; , i No. 85. Ziverpooly IQth March, 1866. Messus. D. & T. Yaughan : Gentlemen — ^This is merely to state to yon that the ship is now cop- pered, and ready to take in cargo, and is advertised to sail on 5th April, it appears. She will have a full cargo of goods, only 160 passengers in the poop, and 50 feet forward between decks will only be taken up with them ; no cutting, as is sometimes only one ventilator through the bouse, and two bell mouths forward. Baines tells me she'will leave for the ship £5,000, but this, I fear, will not bo the case ; £3 10 homo for guano, U. K. Mr. Thos. V. thinks it would be as well not to engage the guano just now. Baines says he has an arrangement to shift any ship. Be has to supply another, having 14 chartered, and he will give me the place of one of them whenever I wish ; thus he appears to carry out the spirit of the undertaking. He has insured £9,200, in case of loss, payable to you or your order, so P. Miller told me this day. Thus you may be assured your claim will be protected as well as it can be. Mean- time, I hope you are all well. It appears Mr. H.'s son is no more ; wc must be reconciled to these wise arrangements of providence. Meantime, I am, yours truly, J A.MES SMITH. [Marked N, cn.s.] No. 86. ^"'-'' {Intereat to 3Ut December, 1866.) James Smith, Esq., in acc't. with D. & T. Vanghan. 1865. Db. July 15. To cash, ... .... « interest to Slst Dec, 1865, 169 days, ^clDllft •••• •••• •••• 9 • interest to Slst Dec , 1865, 167 days, cash for telegraph from Halifax, 1866. Jany. 1. Nov. 20. n 26. 1867. Feby. 4. Apnl 10. June 1868. .ipril 11. 15. 16. 17. 1«. « IC K $2,000 00 55 56 6,000 00 164 71 55 1868. April 16, St. Join Marked c: 1866. iSoY. 2G. 1867. Slay 23. 1865. Dec. 31. 1865. Dec. 81. By balance of freight per ship Palrn, Tree, from St. John, l^". B., to Liverpool, £1,474 168. Id. stg., at 10 per cent., .... Balance due D. & T. Vaughan, $8,220 82 $7,210 15 St. John, N. B. [Ihrked D2, c.n.b.] [e.!!.] ^ , ... .... $1,010 67 D. & T. VAUGHAN; per J. BoBiNsoir. Vpril 9. 16. Mehorj in London [Harked ler, and has 1 if so I will losaible, aud person that 1 w'th some, he Parker't Bcharge, and I hope a ossible ; and ted. I hope IT, with best SMITH. ^arch, 1866. is now cop- n 5th April, )a8sengers in iken up with through the vill leave for 10 home for engage the lift any ship give me the carry out the case of loss, ^ Thus you 1 be. Mean- no more ; we 131 No. 87. James iSniith in accounf. [Interest to 15th February, 1868.] 1866. Dr. Jany. 1. To balance of account, ... .... Nov. 20. " Cash paid telegram to New York, " 26, " '• " premium insurance on ship Palm Tree, cash 31st Dec, £185 123., @ 9i, . , . . 1867, Feby, 4. " paid telegram from Liverpool, cash, Nov. 14th, 1866, £12, stg., Apnl 10, *' Insurance on ship Palm Tree, £1000, stg., £523 18s. 3d., stg., @ 10 >P cent., cash, 31st December, June 11. " services of Captain Betts, 4 months, 1868 .\pril 9 Meantime, 3 SMITH. an. $2,000 00 1867, 55 56 Jiay 23. 6,000 00 164 71 55 $8,220 82 $7,210 15 $1,010 67 Bosmsosr. " Henry Vaughan, acct. in England, cash 11th February, £1,380 15s. 7d. @ 9^ ^ cent.,. . . 15, " Munn, Miller & Co., acct. in Liverpool, cash 1st July, 1867, £14 19s. 3d. 3d. stg., .... 16, " Capt. Betts, acct, in London, cash 1st Sept., 1867, £34 4s. lid. stg., .... amount of mortgage and interest on ship Palm Tree, from 1st July, 1865, to 15th February, 1868, per acct, herewith, iT(. ds. $1010 67 2 467: $128 84 2 28 1 87 I 889 38' 1 46 58 40' 1 93 2561 35 320 00 6719 78 71 82 166 66 46,718 73 $58,519 07 46 48 4 228 168 Bal 14 60 07 4 38 19 36 13 04 4 41 2 69 4 61 69 96 $307 50 1868. April 16, To balance due D, & T, Vaughan, 15th February, 1868, $3,436,88 [E, B,] D, &, T, VAUGHAN, St, John, N, B., 16th April, 1868. * pr J, Robinsox. [Marked c. n.s., September 26, 1 8 7 1 , No. 1 . ] No, 88. .',,/,' With D. i& T. Vaughan. ' ' ' • 1866, Jfov. 26. i> Cn. :i j'u from ship^s boat, cash 10th October, 1866, £10 Os. Od, stg., Vpril 9, 16, " rccoived insurance claim, per Palm Tree, 3;,1,052 lis. 6d. stg., cash 9th May, " cash paid balance to Captain Betts, balance from ship Palm Tree, in Callao, 8tli March, " cash, sale of ship Palm Tree in London, 15th Feb., £10,000 stg., 9i, " balance interest, .... " balance, , , . . — $48 66 5122 51 1174 40 48,666 66 69 96 3436 88 $68,519 07 T8. dt. 1 28 282 348 $3 90 287 42 66 18 $307 60 MBMORANDmi. — The cost of suit against ship Palm Tree, in the Admiralty Court a London, Q. B,, is still pending, and any expenses ia still to be charged. [Marked c.H.s., September 26, 1871, No, 4.1 17 D. A T. v., pr J, R. I ' 13:i No. 80. Jamea Smith, Mq,, ucct. ship Palm Tree, to JJ. ih T. Vaughan, Br. July 1, 1865. To amount of mortgage, Jau. 1, 1868. " 6 months interest, 840,000 00 1,200 OO July 1, Jan. 1, 1867, Julyl, 1868, Jan. 1, 1868, Feb. 15, " 6 months interest, ** 6 months interest, " 6 months interest, " 6 months interest, ■J . I- 1 I month's interest, [e. & £.] $41,000 GO 1,236 OO $42,436 OO 1,273 OO $43,709 OO 1,311 OO $45,020 OO 1,350 OO $46,370 OO 347 76 [Marked c.n.s., Sept. 26, 1871, No. 3.] No. 90. for yol to m' is in [Marked HejJ for yoil which papers [Marked $46,718 76 D. & T. VAUGHAN, , pr J. Robinson. St. John, K B., 20th Nov. J. W. Elwkll & Co., ^ew York : Write Brice, at Callao, to protest the bottomry bond on ship Palm Tree, until we send person with money by next steamer. D. &. T. VAUGHAN. [Marked cn.b., Sept 26, 1871, No. 4.1 No. 91. Dated Cable, Nov. Uth, 1866. Received at St. John, Nov. 15th. To Vaughan's, St. John, N. B. — Furnish cash credit instantly to Gibbs, Callao, two thousand, to meet bottomry Palm Tree, enforcible in three days. MUNN, Liverpool. [Marked c.n.s., Sept 26, 1871, No. 6.] No. 93. Dr. Messrs. the owners of ship Palm Tree, of St. John, N. B., in ac count, with interest to 81st December, 1867, with R. A. Munn, Miller & Co., Liverpool, Cr. To cash paid, .... £361 68. 4d " interest, - - - - 16 4: 5 [Marked c.ii.s.. Sept 26, 1871, No. 6.] No. 93. Messrs. the owners of ship Palm Tree, Dr., to R. A. Munn, Miller & Co. For disbursements per said vessel, from Liverpool to Mel- bourne, Callao, and U. E., ... £306 Ss. Id [Marked cji.s. Sept 86, 1871, Na 7.1 No. U. Exhibit on fyle. [Horkcd c.n.s., Sept. 26, 1871, No. 8.] Rec< on sale [Marked // T Amoui [Marked To tra^ [Marked July 2 Aug. u < « « ( » ( « " 2( " 2' « 2' « 2' Sept. [Markec nghan^ Dr. - $40,000 00 - 1,200 OO $41,000 GO 1,236 OO $42,436 OO 1,273 00 $43,709 OO 1,311 OO $45,020 OO 1,350 OO $46,370 OO 347 76 $46,718 76 GHAN, ^. KOBINSOX. ?., imh Nov. on ship PcHru iUGHAN. 14«A, 1866. instantly to enforcible in Liverpool. N. B., in ac inn, Miller (& £361 68. 4d 16 4 5 Miller «fe Co, £306 Sb. Id No. ai, London, Feb. 22d, 1868. IIeney Vauohan, Esq., South Castle street, Dear Sir — We thank yon for yours of yesterday, enclosing cheque for the Palm Tree^ amounting to £602 16s. 2d. The amount is apparently short £6, which we presume is in error. We hand yon herewith Dock Company's account. Yours, faithfully, LLOYD, LOWE & CO. [Marked c.x.s., Sept. 26, 1871, No. 9.] No. 90. London, Feb. 25th, 1868. Henry Vauohan, Esq., Liverpool, Dear Sir — We beg to thank you for yours of yesterday, hauding us a cheque to balance our account £6, which is now all in order. We hope that next mail will bring us the papers of the Palm Tree from St. John. We are, dear sir, vours faithfully, LLOYD, LOWE & CO. [Marked c.n.s., Sept. 26, 1871, No. 10.] No. 97. London, \Qth March, \%QQ. Received of Henry Vaughan, Esq., thirty-live pounds, for commission on sale of ship Palm Tree. LLOY^D, LOWE & CO. [Harked c.n.s., September 26, 1871, Xo. 11.] No. 98. -; •" IL Vaughan, Esq., owner of ship Palm T^ee, in account current with Lloyd, Lowe get the Captain's draft for a sum of hovo much? Please write me this, as your answer will have time before she will get her orders where she is going to, and I will be guided accordingly. I have seen one of Baines & Mackay's here. He assures me that Captain Griffiths will do all for me that he can ; and he tells me that Griffiths will do anything he can to help out. Would you recommend me to allow the Captain to draw for considerable amount here ; if so please write me at once ; that is the draft to come, or the money to come through me here, not the Captain. My opinion is. it will secure so much in case the suppliers should trouble the snip ; and your claim will cover the rest. These are suggestions for you to confirm or reject or disap- prove of. My opinion is, as your letter suggests, to secure all that can well be secured. If trouble then comes, it will be so much saved from them ; if no trouble comes, all well, the money will be on hand. And in case of me getting the Captain to draw here, would it be well for you to notify the charterer to accept and pay said draft, so that no misunder- standing may arise by so doing. Please write me on receipt of this, and oblige yours, truly, JAMES SMITH. [Marked PI, cs.s.l "^m 130 No. 10.1 Queen stow /I, June the 21st, 1807. H. Vaughan, Esqnire : My Dear Sir — Your much esteemed favor, of 19th, is to hand, and duly note the contents thereof. As to drawing a bill of any amount here, I have no further object than to secure the freigiit, as the larger amount then would be against the ship, which would, I thought, answer better, if required, but will be guided as yon wish in this matter, as all will be done with an eye for my good, no doubt. She has not made her appearance yet, nor is there any chance for her, as there is no winds for any ship outside the last fortniglit, perfectly calm and N. East too. Any thing that crosses your mind that I can do, only let me know, and shaU be consistently. I am truly sorry to hear of my best friend's illness; it shows us the! need there is of setting loose to earth and earthly things. I parted himj when I left home with much feelings of solicitude. The thought on m] mind was, it is possible we may not meet in this world ; he appeared to me to have similar thoughts, by his expressions. 1 received from James Dunn and my wife a similar account of them as your letter conveys to me. They are, as myself, much concerned about him. I was not very well myself, when I left, between one thing and another, nor am I as well as 1 could wish ; but I feel thankful for what I do enjoy ; and I know at longest my time is short. I will go, if spared, to see David on board. Yours truly, with best wishes, [Marked El, C.N.S.] No. 106. JAMES SMITH. Queenstown, Jidy Ist, 1867. H. Vaughan, Esq. : My Dear Sir — By Mr. Miller's letter to me, you are better. I do sympathize with you in case you should be called on to suffer affliction of body ; you, of course, will try and keep your mind as easy as pos- sible you can — you, as well as myself, has seen, and daily sees, enough of this world to in a great measure wean our affections from it. True, while we are here we mnst discharge the duties devolving on us, but still set loose to earth, looking forward to a more enduring inheritance in the better world. You nor any of my friends need not begrudge me of my comfort that I enjoy here or elsewhere lately, and the only comfort is that the time with me is short, and it becomes me to look beyond time for nay comfort, which I am endeavoring to do. My wife writes me that Mr. T. Yaughan is a little better, but that Mrs. T.is not well. Mrs. H. Vaughan was Kind enough to call on Mrs. S. to say she was from home before I left, which was the reason I did not see her, after calling there several times. She was well, as you will know from your letters. Hoping this will find yon well in health. Dont let any of my affairs trouble you, as all I can do will be done, and I have no doubt all will turn out better than was thought. I have a letter from Mr. Betts, but little worthy an- swers ; but I will be in Liverpool, if spared, as soon as I hear from the ship. Her orders have been sent by all the pilot boats, and she will pro- ceed on #6 London. But I have not mentioned Agents, as I want that to come from you. No doubt if you are able to see to it, that Captain You 1st, 18CT. hand, and ny amount the larger jht, answer tter, as all it made her o winds for it too. Any 7, and shsU ows ns the parted him light on m^ appeared to from James conveys to as not very or am I as joy and I !e David on SMITH. 1st, 186V. itter. I do er affliction lasy as pos- eea, enough n it. True, us, but still ance in the e me of my ifort is that time for my that Mr. T. [. Vaughan le before I lere several doping this able you, as I out better worthy an- ar from the he will pro- want that at Captain 137 Belts and you will fix up matters, so as you will well understand all that has been done — as I know all will bo right for me. Dear sir, look be- yond all this present world can do for us ; yet we ouj^ht to be thankful for ail the blessings we receive. Meantime 1 atn j'ours trulv : best wishes. .l.\MES SMITH. I hear nothing of the arrival of the Sarawak yet. [Marked Dl, c.n.s.I No. 107. QKeenstowii, Julj/ 'Sd, 18Q1. Henby Vaughan, Esq. : My very Dear Sir — By Mr. Miller's letter to me, I am pleased to see that you are much better : I hope it will continue. The orders were given to the Palm Tree outside, and the captain had to come in himself for some 6t(/re3. He would had to went in somewhere, so he tells me, had (he not com.e in here ; and as his orders was from me, he knew 1 was here, so he came to me. 1 stated to him in the orders not to come in here, or elsewhere, except in distress, to he arrived at London. Became in at 5 o'clock this morning, and I had him oft' again with two boats at half-past 7 o'clock, so you see he got despatch. The wind has freshened up this morning from West South-West, and I hope he will soon arrive. Please send orders to your agents in London to see to the ship on her ar- rival, as I wish all to come through yon. He is to come ashore to Thompson & Bonner's office, if he receives no other orders, but not to give his papers to any person only to your people. Therefore, you will please see that these tlungs is arranged in your own way, and any assis- tance I will give that I can meantime. Any accounts against captain or crew, please see that they are made out, and I will see them taken up when I am goir , as you may expect me, if well, on Friday morning — hoping you are well. The captain speaks in high terms of the ship — she is in good order, and makes no water, no complaining in any way, only Gibbs Brothers, they used her badly. He has been 35 days from Callao ; no winds, what was from the East North-East. He says she would made the passage in 80 to 83 days, had he had any winds to speak of. He says she is fast, and as to a bad weather ship, she is the best in a storm he ever was on board of. Yours truly, JAMES SMITH. You can use your good judgment about more insurance. J. S. [Marked Cl, O.N.S.] ' i No. 108. London, IQthJuly. 1867. H. Vaughan: Dear Sir — I was pleased to hear you got down safely, and that your friend thinks you look better. The bill for towage has come up to day, and has gathered to its first appearance, by Mr. Miller's letter, over £26 — in all over JB117. Messrs. Lloyd, Low & Co. refuses to pay it out of the first payment of freight ; and a farther sum must be secured to them before they will pay it ; the first order having been paid in dock dues, wages, &c. Should the steam tug company put a writ on the ship, you will have my advice, both you and Captain Betts, how to act to secure yourselves ; and then, if any be 138 .1 left, the first judgment may take it, if thoy can {^ct jutIi?mont. Cu|>tain Ik'tta has written you, and you will act accordingly, as I wish to write but little on the subject. You M'ill see how the matter stands, and you will act as you think" best. Yours, truly, JAMES SMITH. London, July 16, 1869, II. A'aiohan, Esq. : Dear Sir — In thinking over tiiis uneasy affair, as you know that the Queenstown bill must bo paid, and so the St. John insurance, this had better be arranged at once. Your position is not so bad that this cannot be done with safety to you ; and it will be well for you to give your sanction for these things, and preserve confidence and feeling in this matter. You are quite sensible of my position ; and ray confidence is, that you will send up your full approval of the above. Yours, truly, JAMES SMITH. [Marked B2, c.n.s.] No. 100. London, ISthJuli/fi 861. H. Vaughan, Esq, : Dear Sir — Your much esteemed favour of the 17th, yesterday, is to hand — contents duly noted. As to the sale, time, or place, I have never taken any control of this ; you must judge of for yourself; you will know my mind on all such points. I appear to be but a cypher, or a nine with the tail cut ofl:'. I trust mine of the 16th, will be answered by return of post. It is a trifle, and only just. There has been a saving been made by Captain Betts going to Callao, will you throw that overboard. Your answer by return post will decide this. I hope you are quite well. [Harked Al.c.N.s.] No. 110. JAMES SMITH. London, Augi^st I2th, 1867. 11. Vaughan, Esq. : My Dear Sir — 1 hereby enclose to you a letter that has been, by way of mistake, I presume, enclosed to me, from Liverpool, of Jpmes Vaughan, Esq. I hope this will find you well. I have received a num- ber of letters from home with deep regret for the loss of my good friend, and dear to you and yours, and his end ; from the pen of my brother-in- law, Mr. McMoran, that visited him frequently, especially near the close of life, writes to me pleasingly, and quotes some of the conversations passed only a very short time before his last. I received a letter from Mr. Miller, and another copy of one to Lowe, which has had my atten- tion. The old story has been repeated, that the one doing all they can, what that is I don't well know. He told mn he would write to Mr. Miller. Captain Betts has gone down to Liverpool ; ho complained several time of losing time here, which, no doubt, be was doin^ ; and to help that, I called on my friend, and made him acquainted with the matter, and also took Captain Betts to him — Mr. Strang— in confidence, to tell him what he had to say, or tell about the matter. My sole object in this was and is for Mr. Strang to have the document transferred to him properly, to be held in case of need to protect all concerned against the robbery and imposition of the party prosecuting ; and I trust that yoi wil hop ferr wil sure ; lunt. Ciiptaiii [ wish to write tnnds, and you ES SMITH. My 16, 1869. know that the rancc, this had lat this cannot u to give your feeling in this confidence is, ours, truly, ES SMITH. h July^ 1867. ssterday, is to !, I have never you will know or a nine with d by return of ng been made fboard. Your te well. ;S SMITH. t \2th, 1867. been, by way >1, of J?mes leived a num- f^ good friend, ly brother-in- lear the close conversations letter from ad my atten- all they can, write to Mr. complained doing; and ted with the a confidence, ^ sole object ansferred to irned against I trust that 139 you will think with nie, that this is a stop in the right direction, as it will only be used for protection to retard tlio proitn.'ss of tlio j^nrty. I hope, tliercfore, that you will see that tlio bottomry U propcily traiia- ferrcd to Wtn, Strang. Ho will liavo some w "ght in this Muitt'jr, and will help both of us out, if he can. Yours truly, JAMES SMITH. [Marked Z, c.N.8.] No. 111. London, i'Ath August, 1867. Henry Vauohan, Esq. : My very Dear Sir — Your much esteemed favour of the 15th is duly received and contents duly noted. In answer to your first — You say you do not wish to interfere with my business and Cai)tain Butts. You do quite well know that whatever was or is done was to piotoci you as far as I could do ; and you as well know it was at tny expensos, and by my authority he acted ; but here let me remind you, that it i." quite easy for him to overstep my authority. This I do not wish to ou- ter into now, but to try to construe the best of motives by me, must no be indulged in by him or any other, as much will depend on good faith ; but if my good begins to bo evily spoken of, it is full time I should know it. You say it is enough for you to look after your own business ; so ii may be ; but had 1 taken that plan of doing, I would been better off, and probably better thought ot. The second matter you mention is, what is my object in wishing the bottomry bond turned over to iMr. Strang. Here I would answer, so as not in any way to be misundtr- stood. Captain Betts complainc'. several times to me that he was losin^.^ his time, and also expenses to others. This is true ; and to save that. and put the bonds into a man's hands that is well known for his l>i'., OftuOt)' 2Wi, 1804. Thomas Vak.han', E6t^ : Dear Sir — Having none of your much esteemed favors to reply to since I last wrote you, on the 20th, hoping you are well as this leaves me. I then forwarded to you an order for auchore, chains, canvas, iron knees, iV^c, which I trust you have goi, and have been fortunate enough to get a ship coming here to send it by. I would like to have the iron knees as soon as possible, as tlicy are tedious to get tiirough with. I would like to have the chains and anchors also, lest anything should pre- vent us from launching loth April, as we will be well ready before t lat, should anything transpire that would send along a purchaser. She will be a good looking ship. 1 herewith send you a rough copy of my last order, least anything should have transpired that would prevent the order reaching you ; but this is nut likely. Knowing you will do the needful, I need not add any more. I hope you keep her before you, should you find any person likely to be a purchaser for her in spring. We have had great fall rain, and all the timber has got down, which will help to make stuff to load with in spring. Meantime, you will be posted about family affairs. I am, yours truly, with best wishes, JAMES SMITH. Memorandum of Canvas. 20 27 19 17 9 10 bolts, No. u 1 50 fathojns bolt rope. No. 4 2 50 44 ii 3^ a 50 Si 4 100 8 5 60 2i 50 2i 50 4( i* 2i 40 (( i( 2 5 2 coils of li inch manilla, 100 H tathoms. H iOdoz. ofSthd. sewing twine. 102 bolts. 60 fathoms of bolt rope 50 " " " [Marked Nov. 24, 1871, No. 2.1 No. 153. /SV. John, y. B., Nov. 1th, 1804. Thomas Vaughan, Esq. : Dear Sir — Your much esteemed favour of the 15th October is to liand, contents duly noted. I am sorry to hear of such poor prospects for shipping and the price of money. 1 think you are quite right in mo not doing much this winter, but now we are paying 5 shillings, the highest for men, and material is all on hand, and the weather pretty good, and as long as the weather is good we intend to keep on, and about Christinas stop for two months, if times gets no better ; by that time she will be all done, except the iron knees and caulking and paint. This can be done last of March and April. She is all ceiled but six streaks and five streaks on the bottom outside and seven streaks on top sides. The poop is all ceiled and kneed off, and forecastle nearly kneed off; the lower deck is in and upper deck about half laid. Thus you see she is well forward. As to the order sent to you for outfits, use your own judgment what time to ship them. I would like to have the iron 2it/i, 1804. to reply to IS this leaves canvas, iron nato onungh avc the iron igh with. I 2f should pre- f before tliat, She will be ly last order, It the order I the needful, I, should you g. We have will help to posted about 3 SMITH. pe, No. 4 H 3* 2 manilla, 100 ewing twine. I'. 1th, 1804. October is to oor prospects e right in me shillings, the eather pretty keep on, and. etter ; by that ng and paint, jeiled but six streaks on top nearly kneed Thus you see tfits, use jrour have the iron knees to gel tlieni ir., tlieu it would l)o slicjrt work to iinitsh her. I noto your intention to put yourself out of harm's way. I think you arc wise in leaving Liverpool. In tlie winter months the climate Is too damp for you. As to the advance beyond the mortgage, you wrote to Messrs. Vaughan. Mr. D. Vaughan showed me what you wrote. I am of the opinion you should be put in funds sufficient to replace permanent in- terest ; but I am persuaded you will exact nothing improper from mc, and I am equally satisfied that I wish nothing from you only that which is right between us, as our knowledge of each other is I trust a perma- nent guarantee that no advantage over each other will be even thought of, therefore any views of yours in the matter will be readily complied with. I have handed over to you a tire policy of £2,000 to cover any loss in case of accident to 3'ou return, or some permanent arrangemi^ntis made for any sum wanted over the £5,000, and will do likewise for at'y other sum required. I wrote you what 1 thought would be required, in- cluding all outfits. I trust we will be much under that. She will be si good ship, but awfully expensive. You astonish mo about the price of iron knees. I trust they will come lower than yon state to mc. Mean- timd I am yours truly, with best wishes. JAMES SMITH. No doubt your people has made you aware of Mr. Harris's entering a foreclosure of the mortgage on iron works, and sued the bonds. Tni» was justly provoked by the absurd conduct of Best, as usual. Ho 8u«cl Harris for not transferring stock of Messrs. Allan's to him. Thus ho thought as they had commenced law, it was as well to retaliate. I am sorry such things should be, but we all agreed that he had no right to use such high-handed work with the Company, let Mr. Harris's griev- ances and his be as it would. [Harked cn.s., Nov. 24, 18Y1, No. 9.1 No. 154. iSt. John, X. B., December 5th, 1864. Thos. Vaughan, Esq. : Dear Sir — Your much esteemed favor of the 12th November is dniy to hand, contents duly noted. You received my order for outfits : they were not ordered, no ship being on the berth. It will be a saving, the iron knees being lower than they were, and canvas being lower, and I presume iron rigging will be lower by the time. I did not name the quality of the canvas, as I was fully aware you would send an article approved of, but not extra — thus, merchant's navy will do. As to the patent anchors: I thought they would be lighter to handle the patent ones, but was not aware that Lloyd's had eqiialized the weight, therefore I feel obliged to you for the information. You will please send the com- mon ones. It will make a good saving and the weight according to Lloyd's for a 1600 ton ship. As to the charges for shipping the goods, or any other business we have to do, I wish it fully understood that I have every confidence that no charges will be made only what should be made. Your brothers and myself has arranged all, and I presume, according to your orders. I have agreed to give a mortgage on Queen square property, £2,000, and security on the ship for say £8,000, for I don't care what security I give you, as I well know that no advantage will be taken of mc in any case, and I equally know that I will pay all \ 154 if spared, and 1 wish you to bo fully covered, so as to have all done Bafely and with every toiitidenco. As'to the amount of advance to mo, I thought when I first spoke to yon £s,On(» in money would aiit^wered. hntj wo liavo been to much more e.xjJtMise than I expected, but the lifleenl thousand named by Mr. II. Vaui^iian includes everythinjf, outdts and fit fur sea, and I believe little will bo left of that sum ; but ono thing ] do know, you cannot nor never could lind a better ship nor a better model buiit in this Province. This is saying a ^ood deal, but it is true, don't coiled, presen of inor ton, oi I woul come i would reserve If I cannot build as good a ship as can bo built in this country, 1 wish to build any. 1 am sorry to hear that you have been losing by anjj jnteud one, for I know what it is to lose money ; this is the cause of me troubling gj^g my friends now. You have bought a cheap ship if good. I hope to got aj ^^^ ' ^ least £2 per ton more for mine, and have faith to believe I will. 1 trus i,„„.„ * tho iron knees will come, as wo are now ready for them. It is reportec that Mr. Bradshaw'e ship is laid on : if so, you will have the outfits sen by her. The deck is corked to-morrow, a nd lower deck in and lowe hold ceiled, and hooks and painters, kilsons, &c., and only four streak to put in between decks, and the topsides is all on and turned tho bilge with tho bottom planking, poop planked outside and in, and beam kneed off, and forecastle also ; thus we have little to do, but to cauU and join. The deck is or will bo all caulked to-morrow night. Mean tima 1 have £6,000 iire insurance on tho ship, We have tine weather- no snov/. You will bo trying to sell the ship as soon as an opportunitj will otfer, as yon will be posted up about those willing to purchase. Yoi will be wearied in reading tiiis lengthy document. Meantime I an yours truly, [Ibrked c.ii.8., Nov. 24, 1871, No. 10.] JAMES SMITH. No. 155. St. John, N. B. Dec. lQtJ>, 1864. ThoS. VAUOHAi., F-'Q. : Dear Sir — I wrote yon on tho 5th uli;., and has none of your mncl esteemed favors to reply to. T then vrote you tn ship the common an know t I obser well to .you j)It they ar any op] people satisfac and oal moulds have th time foi even dr sell her of the s( [Marked c Thos. V chors, which ^ill be a good aving, and Leith common canvas, or com Dear mon gourock, but I believe Leith is preferable. Your brother Hen r;) to writ( tells me that Thos Wallace has a vessel on the berth for St. John, anc launche you had shipped the iron knees and mast hoops and oakum. This w«logs in- are ready for now. I purchased here what oakum caulked the deckjthe ilooi and top sides and a few seams in the bottom. 1 will not do anything iijhave hoj the yard January and February, as days are short, and rough, cold wea copper i ther, as we will have time to do all before middle of April, when wiwork an intend to launch, and whilst the knees is putting in and caulking, w launchit] will have p.mple time to do all. Lloyd's rules for anchors is 1:>3^ cwt but she u.id 36^. Meantime I am yours truly, [Harked cn.s., November 21, 1871, No. 6.] JAMES SMITF. Titos. Vaughan, Esq. No. 157. St. John, K i>., January 28th, 1865. low m-'u from lau dock in describe t is, anc Dear Sir — Yo ir much esteemed favor of the 7th January is duly re .|gi . ■^ ceived, contents duly noted. I am pleased to' see that Mr. Henry it ,qJ ' i? dorses my conviction that I have a good ship. Sho is all plr.nked "^^ jntirelv^ ,N I done Brtfcl}; ito to me, titiweicd. lint It the lifieen , outdta a IK one thing 3 nor a bettci tut it is true ntry, 1 don't osiiig by any ine troubling lope to get a will. 1 trns It is reporte( le outfits pen in and lowe four streak [led the bilge 1, and beam , but to cauU light. Mean lie weather— 156 coilod, decks in, imrt of bottom caulked. Wo arc not doing much at tlio present time, oi:ly squaring up little nuitters, st^I we spend a good deal of money. Yon flutter me when you i^ny :^lie wotild l»' worth jGi jier ton, or ought to be, more tliiin a Quebec ship : this is rathrr more than I would expeet, yet allowing them only worth £'(5 Ids., I would like to eome in for the«»ther two ptmndrt, and tlieii wouhl full far s'lort of what would pay me; but tiiis is in the future. Something good I trnst is in reserve for mo, as I am thinking it is coming near to 1113* return of pros- perity; but I am in the hands of the over-ruler of all events, and 1 fully intend cahnly to wait the end, and I trust nil will bo well. As to the size, some largo hearted fellow is waiting hur univul that ho may be able to open his bowels of compassion and give me a large price for what [ know to bo a faitl)ful ship and will do her work well and quickly too. 1 observe your remark of size or weight of the anchors, It will be as well to send one wood and one iron stcmk; you may send one kedge if you i)lease. I also see that you are mindful of the other outfits — that they are ready as soon as a ship ie laid on. I know you will not allow any opportunity to pass unimproved when at\ything is required. Your people and myself has fixed up all as far as I know with liarmouy and satisfaction, and has no doubt will continue. The iron straps and hoops and oakum are here all right. We have the greater ])art of the knee , moulds made, and eight of the lower hold knees all made. I hope to n opportumt] have them all in in four weeks from now, and this cold weather is a good urcliase. xOU^jj^g fyj. gj^yll^j,,^^ j^g the dry cold shrinks the plank much better than santime 1 a*>leven dry warm weather, as I hope to have her well caulked. Don't you sell her for more than ten guineas per ton. I wish you the compliments of the ocason. Meantime, 1 am voiirs trulv with be>st wishes. JAMES SMITH. [Marked c.m.s., Nov. 24, 1871, No. 7.] No. 158. /St. John, N. 11, April lOt/i, 1865. Thos. Yauohan, Esq. : Dear Sir — In consulting with Mr. Henry Vaughan, we thought it best to write to you for marine insurance, although the ship will not bo S SMITH. . 19^/', 1864. )f your mncl 5 common an nvas, or com )rotlier Henr;) 3t. John, an(Jautiched to the rigging arrives. I am nearly ready. I am putting bilge Lira. This W(log8 in — two tiers each side on top of the ceiling 121 feet long, right on ked the deck the floor-head, and foothook heels, and let her pay me or not, I hope to o anything 11 have her a good ship for some per. on. True, it will cost a good deal for ES SMITH, y 28th, 1865 1-3 is bS^ cwtbut she will not sail before the first of June. This will be the time for low insurance. Please insure her for sixteen thousand pounds (£16,000) from launching to forty-eight hours in dock, or at least safely moored in dock in Liverpool. As you know the place where she is bnilt, I will not describe it, but Robert has drawn a rough sketch, showing the place as t is, and also that there is less risk than any other in St John. I never _ .51 ^^^ *tiy misfortune in launching, nor any way ; by care I consider no "^1^ ^Ti *'^^®'^' "*^^ ^^*<^ 1 ever any leaky ship, new or old, nor any misfortune ar. ^^'^^y ^"joing home, only once, a mere trifle — leaving the matter in your hands 1 planked an Entirely. She might not be launched before the 10th May in case the 20 i^ V ■l-L rigging don't come, but cannot sail before the first of Jane. I might weary your patience with a long letter, but as yon will be all posted op by Mr. H., I will come to a close. The invoice of the outfits m reason* able bill. Don't sell her at over £10 per ton. Ships look rather blue at present, but something good will or may come out of it yet. I hope your leg is got quite well. What have I done that you never write me ; let me hear from you on receipt of this, and oblige yours truly with best wishes. 56s. 9d. offered to-day for deals to Liverpool ; but I hope as the river is now open freights will improve. She is not measured yet, but will be as near 1600 tons as possible. Yon can describe her as that ton- nage, 190 feet keel, nine feet rake, 41 feet 6 in. beam, S4 feet hold, full poop and forecastle, and house forward of the main hatch, scroll figure- head, intended to be named Palm Tree. Meantime I am yonrs truly. JAMES SMITH. [Loss, if any, payr,ble to Messrs. D. & T. Vanghan, of St. John, N. B.] [Marked C.N.8. Nov, 24, 1&71, No. 13.] No. 18^. A power of attorney from James Smith to Albert Betta, dated 21st November, 1806, and marked C, c.n.s., put in evidence on August 17, 1871. ? 1 ' ■ is. [I- i .'-.'MW: >fvf ui , . I t , I • .,' . lit; ,' .i i '!':;. V;/Mf/i /. a me. I might all posted ap fits M reason* rather bhie at t yet. I hope ver write me ; Pttly with best b I hope as the sured yet, bnt ler as that ton* feet hold, full , scroll fignre* n yonrs truly. SS SMITH. t. John, N. B.] irt Betta, dated li evidence on , -■ ■,-- ]■-.(■ >ii I- .'- u •