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has been shown, should have been| dated Dec. 6, charged up in the| Home Bank to a loan dated Oct. 15,| 1920, is an item of Nov. 6, 1920, pay-- : able to general expense, which was cashed on Dec. 1; on Dec. 1 that amount was cashed; this is for $1,-- 500. This item is one for $500 five days later? A.--On April 4, 1921, a deposit of $937.50, the deposit slip consisting of one $500 and some other items, which presumably are cheques. I am informed that those would likely be cheques. Attached to this deposit slip is a debit note for receipt of a Dominion of Can-- ada legal $500, signed in pencil Mrs. P. Smith. iH. ESmith estate account. I know |01' nothing significant about this, but being a large deposit, and coming ,from the account from -- which previou cheques has been brought, |I thoughi it should be produced. 1 _@Q.----And the next one, March 6? A.--On the 6th of March, 1922, is a deposit of $805.91. Deposit slip shows | one $1,000; it doesn't say whether : that is a thousand--diollar bill, less | $500, initialled for in pencil by L. | A. S.. and another item of $805.91, ' making a total of $805.91. Mr. Sinclair--The only difference is we usually use the 1. Continues Into Succeeding Year. Q.--Referring to that item of $500 which is deposited, on the Exhibit 148, which was a blank, which, it Q.--Well, would this receipt be given to the bank? A.----The Man-- ager of the bank tells me that was given to him as a receipt. That he would take that as a receipt. Q.--These items are put in in writ-- ing generally. You know the aver-- age deposit slip. There is one $500 in there, and 1, 2, 56, 10, 20, 100; that is written in in ink, one $500. ed as Exhibit 147.) A.--Dec. 6, 1920, $500 deposit slip, shows one $500 bill. It doesn't say the word bill. Q.--Well, it was being deposited in the bank at the same time. What is the object of it? A.--I cannot an-- swer that, sir; I don't know. Mr. Currie--Was that charged against the account? A.--No, it is not charged against the account, al-- though the benk Manager probably should be asked to answer that. I don't know anything more than he told me. Q.--The next item? A.--Fifth of November, 1921; a thousand--doilar Gleposit. ~The debit slip does not state. that that is a one--thousand-- dollar bill. And the teller's specifica-- tion of cash does not show there were any legals on hand at the end of the day, but the Canadian bank notes included in the cash increaged that @ay from $1,015 to $2,060. Mr Clarke--Is that a legal? Mr. Price--It is where the legal would be, but there is no designa-- tion, Mr Clarke. Q.--That is all in ink, a thousand dollars being the top one. (Deposit slip produced and maked as Exhibit 152%) A.--We examined the teller's specification of cash, which contain-- ed no legals, but on the 7th of March, the following day, the Cana-- dian bank notes were cleared by re-- mittance to Toronto at a sum con-- siderably larger than that item. Mr Price--That is dated Nov. 5; is that all in 1921? A.--That is all that appears in 1921. Now Into Year 1922. Q.--And 1922? A.--On the 30th of January there is a deposit of $7,158.41, and on the 27th of Janu-- ary deposit of $1,042.72%, that ap-- pear to have been transferred, and the records of the bank show they have been transferred from the T. Mr. Currie--In other words, the bank account showed no legals the day before, and the following day it showed legals? A.--No, it did not show legals before or after. It simply showed the following day a clearing of Canadian bank notes to Toronto. Q.--What is the difference be-- tween a Canadian bank note and a legal? A.--Well, I am informed by the Manager that Canadian notes and bank notes mean notes on banks that are not represented in Stratford. Q.--The legal might be put in g.qux}g with that? A.--I cannot say Q..--In most cases it shows the legals, but in a few cases it does not, apparently? A.--On May 2, 1922, $1,000 deposited, the slip shows $1,000. The teller's specification of cash examined shows nn large legals, Ge,'ada. but the Canadian bank notes amount increased from $2,165 to $3,355, or an increase of $1,190. _ _ _ Bank Had an Increase in Bills. Q.--The significance of that is this: that the following day the bank's account showed that they had that much of outside bills which were shipped to Toronto, doesn't_!_t.? i -- Q.----Well, let me understand--was Ilt the custom of the bank to clear to |Toronto the same night or the next imorning? A.----Well, the remittance ! book indicates to (me that they Q.--That is, the bills of banks out-- side Stratford of that amount next day? A.--Well, to an amount greater than that. A.--Not necessarily shipped to To-- ronto. f Q.--Have you inquired into the significance of that item, $4,040°? A.--I inquired from the Manager of the bank, and he inquired, while I was with him, from the British Mortgage and Loan Co., and they con-- firmed that was a debenture of theirs the proceeds of which were put to Peter Smith's account. _ o Q.--{Géireater than that next day. It had increased, the outside cur-- rency had inrceased that much next day? A.--That is right. Lo Q.--And they inquired and found out that that day one of their deben-- tures was sold and the proceeds cred-- ited to Mr. Smith? A..--I don't know when the debenture was sold, but the amount was credited to Mr. Smith. Two One--Thousand Dollar Bills. Q.--Next item? A.--On May 6, 1922%, a deposit $4,040.60; the cash item sheet shows that the Royal Bank was charged in the clearing with $4,050.60, being a debenture of the British Mortgage and Loan Co., and I confirmed that on that day the proceeds of the British Mortgage and Loan debenture were credited to that account. _ _ Q.--That debenture was sold and the proceeds deposited in the account? A.--I presume that would be so. Q.--Where is their office? _ A.-- They have an office in Stratford. _ Q.--The next? A.--June 22, 1922%, deposit of $1,500, the deposit slip is dated June 23, and shows two $1,000 bills, lesa $500. NC Q.--June 23, 19%2%, deposit slip, Peter Smith, two $1,000 amounts. They use the $100 amount up where the bills would be placed, and added a nought to it, making two $1,000's --$2,000, less $500--I presume there being cash drawn out the same time as the deposit. Exhibit 155. Does the joint account show $500 credited to it that day? A.--No. Mr. Price--That apparently would indicate these were the large bills, because smallér bills would be drawn out the same day. & Witness, resuming--On Sept. 11, 1922, a thousand--dollar deposit, marked one $1,000. Q.--Indicated ijust the same way, with a nought added to the $100 and a one placed before that. What does your record show there? A.-- There were no large legals in the teller's specification of cash on that day, but on that day there was remit-- tance to Toronto of $4,860. Cheque for $4,023.48. Q.--Next item? A.--Dec. 1, 1922, a deposit of $4,023.48, a cash item list shows that to be a cheque dated Nov. 30, from Osler & Hammond. Mr. Price--Deposit slip produced dated Dec. 1, $4,023.48, the amount of the deposit of the cheque from Osler & Hammond, apparently dated Nov,. 30, drawn on the Dominion Bank for $4,023.48, in favor of Peter Smith. Q.--It is written in in ink, up where the bills would be indicated; one $500.° Have you followed that to see whether it was sent down to the head office or sent out that night? A.----We examined the teller's specification of cash, which showed no large legals, but an increase in the Canadian banknotes of $1,055, which were cleared .to Toronto on the twentyv--sizxth of December. Q.--Did you look into that further, Mr. Nash? A.--No more than the examination of this cash item sheet. Q.--Next? A.--Dec. 22, deposit of $500. the deposit slip dated Dec. 21 shows one $500. Q.--Dec. 22, 1922%, deposit slip, apparently that is the 21st? A.~----~ Deposit dated 2i1st. The account shows credit on the 22nd. Mr. Clarke--Just one item? Aped ({r': | cleared every few days 3 'hnd a suffciently Jarga 3 ; make it worth while, 1 |Mn'narg3' of the bank--__ Q@.----I1L meran bilis of $1,000 -- op $5002? A.--Yes, and we see amounts cleared to Toronto suficiently large to contain those. Mr. Biggs Interpolates., Mr. Biggs--In each case the col-- lections to Toronto were more than double the deposit? A.--Yes, Mr. Biggs--It must have come from some other source? . A.--Asg I explained, the Canadian banknotes account, I am informed, is the notes of banks not represented in Strat-- ford. Mr. Biggs--They would be sent by express or registered mail to To-- ronto? _ A.--I don't know. The Q.--Have you lookeq over two or three days to indicate these were cleared to Toronto Yes, we have. Q..--In each case to :1 whether these were legais» Yes. * Manager of the bank would tell you. I cannot tell you how. Mr. Belanger--One item. It was a cheque? A.--There is in the ac-- count of Mr. Smith of that day an item of $9,046.96, and two days later an item of $100 is charged against the account. G..----Just explain that item again so we will get it clearly, $9,1486.96? A.--That is an item charged to the za2ccount of Mr. Smith. DCZILUEC. Q.--wWell -- then, Mr. Nash, it amounted to this: that there was & cheque out for that amount, or about the equivalent, and a cheque in? A. ----A cheque in. Q@..--Practically a cross--entry? A. ----Practically a cross--entry. Mr. Belanger--To whom was the expenditure? A.--That I cannot tell you, the accounts did not show that and the cheques are not available. Mr. Price--It was another trans-- in ud h maive onnnranflv With the Bl'itish Mr. Price--It was anolnet ""?""" action apparently with the British Mortgage and Loan Company. Mr. Doherty Takes & Hand. Mr. Doherty--Wouldn't it look as if some person in this company ask-- ed Mr. Smith to buy some Ontario bonds and Mr. Smith bought the bonds and the bonds were delivered ? A.----I would be theorizing if I an-- swered that. I am giving you ex-- actly what the Manager told me from what his recollection-- Q.--Would you saYy his recollec-- tion is that is the transaction ? A.-- Thai is his transaction, he probably can give you more. Of course, all the information I had 1 got from him, and that is all I can get. Mr. Price--The next, Sept. 15, $1,-- 076.14, and the bank records show that that was the proceeds of a Do-- minion of Canada bearer bond of $1,000. Q.--That would be, Mr. Nash, that he cashed that bond, got credit for it in the bank that day? A..--That would be, I think, the explanat'ig:l.i _ Wienues C Eo uies 27 caveits m Witness went on: "On the thir-- teenth of January, 1923, a deposit of $9,146.96. Mr. Price--What did that in-- clude? A.--I can only give you what the Manager of the bak informs me are the details. He believes that to be a cheque paid to Mr. Smith by an official of the British Mortgage & Loan Co., but repaid Mr. Smith for certain bonds of the Province of Ontario purchased for this official. Mr. Currie--Charged? A.--Charg-- ed to the account, and two days later $100 was charged to the account. and this amount, this deposit of $9,-- 146.96, being the aggregate of those Q.--You inquired into that to get the explanation of it; what was the explanation? -- A.--The explanation which came from the Manager of the bank was--I think in fairness to him I should say to the best of his recollection--that this was a cheque from an official of the British Mort-- gage and Loan Company to repay for the purchase of certain Ontario bonds. t > Ey o PWR Wny ROWODERCe ERTOR NWVE C OMTCOC C TT D 'wo charges credited to his account on Jan. 13. $9,146 Cheque in Repayment For Purchase of Ontaria Bands Deposit slip produced, dated Jan. 13, for $9,.146.965. Exhibit 159. _ _Q.--That is, | his account for 1k°:'th"ewe:'cplanation. he is given credit in $1,000, and it men-- AU _over these indicate when Toronto? A _ amount to I think tho when they identify