- 3-

1

Approved accounts marked *B*.

50

on the business of the Empress Stores, Kowloon, the arrange- ment was extended to their supplying provisions for the crew.

The First Bailiff states that he informed Mr. Malbourne

of the position and consulted him with regard to this arrangement. Mr. Melbourne says that he has no recollection of being so informed or consulted and that he knew nothing of the arrangement until June or July, 1926. He further says that had he been informed of the arrangement he would not have considered it the concern of the Court, but would have regarded it as an arrangement made by the First Bailiff with the Solicitors acting for the plaintiffs in the actions.

This arrangement continued in force until August, 1926. All payments for wages were made to the First Bailiff and he personally saw the men paid. The portage bills were retained by the master. Provisions appear to have been supplied as ordered by the master, and he signed the books for them. und Under this arrangement it appears, from accounts vouched by the master, that $12,987.18 was paid for wages and $137.60 for deck and engine-room stores and that provisions to the value of $9,143.05 were supplied.

The First Bailiff states that he spoke to Mr. Melbourne each time he made a payment to the crew in order to let him know that he had paid the money. Mr. Melbourne states that he has no recollection of being so spoken to.

The First Bailiff says that when he informed Mr. Melbourne of the arrangement he intended to convey to him that such arrangements as had been made by him had been made on behalf of the Court. He states that he believes the solicitors for the several plaintiffs were aware of the arrangement and had no objection to it and that the Solicitors acting on behalf of the master personally, and for the Owners on the master's instructions, were aware of and concurred in the arrangement.

So far as can be traced no accounts of moneys expended or supplies provided were sent to the Registry until 4th

September,

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