Company.
It is a British Company?—T do not know.
This closed the examination in chief GCross-examined by Mr. Phillig nese satd that ie had conducted watch dabs for some years past. He had formed them and carried them on.
He had started the business in San Francisen in 1892, and before he did 0 for about ten' years. first he had ever known to be carried on unsuccessfully. The system was inaugurated by the Keystone Case Company, when a small concern, In 1892 it came to San Francisen, where: witness joined it. He was there for five and a half years. Some of the men came to Honolulu, and then went to Mexien, Witness wns there for three and on hinlf years, and suid 17,000 watches, He started the Shanghai Watch Club on August 8, 1906, and transferred it to the Gi'lette Development Company on November 12, last year. Up to that time he was sole manager. Hope Bros. only had fan interest of forty per cent. Up to November 12 Inst, witness hal no -|knowledge of the accused in connexion with the operations of the Watch (lub. He first heard of Thomas when he was negotiating with Dooley, who said that he was going to put him in as manager. Witness did not select Thomas as_manager.
Witness gave certain figures to Douley when they were negotiating, fan estimate of the profits if the was conducted properly. He arrived at those figures himself, and the statement showed the estimated profits to be $66,640 for the 119 clubs then running. He asked Dooley to select an accountant to go over the books. Witness entered into a personal agreement with the Gillette Development Company by which he assumed all lawful debts and claims up to the date of the transfer. He had never been guilty of any conspiracy with Thomas to defraud anyone, either before or after November 12. Mr, Porter reported to him that all moneys collected were daring: Thomas's management. He would not be surprised to hear that outstanding accounts amounted to nearly $17,000. Witness's total liabilities before the transfer were notified to him in Jam and he then authorized the Gillete Development Company to devote any dividends due to him to paying these amounts off. The debt to. Hope Bros. which was taken over by the Gillette Development Company amounted to $4,900. The Company undertook to satisfy this claim in return for witness's stock. This stock was in the hands of agents, and amounted to $4,440. The Gillette Development Company could nat recover it from the agents. Therefore they had to satisfy Messrs, Hope Bros.' debt and were without watches.
At this stage the Court adjourned for tiffin.
On resuming at 2 o'clock Mr. Morgan Phillips said that he desired to ask Mr. Black some further questions.
Mr. Black was not in attendance.
His Lordship said that counsel had better proceed with another witness until Mr. Black arrived.
The Crown Advocate said that he would probably sey later for leave to cross-examine Mr. Black.
His Lordship said that this application must be made later. Lordship would also have a consider able number of questions to put to r. Black.
Mr. Black arrived at this stage and went into the witness box, Cross-examined by Mr. Phillips he said the Development Company paid $5,000 of his liabilities. They also paid Messrs. Hope Bros. $4,000 and in the event of not securing certain watches they would also be out of pocket that amount, Witness told Mr. Thomas to send anyone who had any claims on the Watch Club previous to November 9 to witness, Mr. Black identified the Articles of Association of the Development Company. He also tified the agreement entered into with him for the sale of the Watch Club. In accordance with this agreement witness used to go to the office and adi Mr. Thomas with regard to the business, the correspondence, ete. On January 17 witness went to the Watch Club office and there met Mr. Dooley, Mr. Bassett snd) Mr. was a discussion of the affairs of the Watch Club. Mr. Dooley stated that the affairs of the Club could not be conducted any farther Witness sail hat he thenyght the lub could be liquidated nnd that profits could he made.
Witness said that he thought
Text read from the printed page and cleaned; old type leaves the occasional error.