'My name is Francis Dayrell, senior-sergeant of police for the colony of Victoria, at present stationed at Growlers' Gully. I know the prisoners before the court. On Friday the 20th September last, from information received, I proceeded to a digging known as Balooka, situated in New South Wales, and distant about one hundred and seventy miles from Ballarat. I arrived on Monday evening the 23d, and proceeded to the camp of the prisoner Edward Lawless, whom I arrested by virtue of a warrant, which I produce. It is signed by a magistrate of the territory. In a yard close to the prisoner's camp I found a large number of horses, several of which I at once identified as being stolen from miners at Ballarat, or in the vicinity. Others appeared to have brands resembling those of squatters in the neighbourhood. The prisoner Lawless was unable to account for his possession of these, or to produce receipts. He was about to leave for Melbourne, I was informed, in order to sell the whole mob. I arrested him and his cousin Daniel, and charged him with stealing the horse named in the warrant. While he was in custody I observed the other prisoner, Launcelot Trevanion by name, riding towards the camp in company with a young woman. She was riding one horse, and leading another. When he came up I identified both the horse he was riding and that of his companion as stolen horses, both of which have been advertised in the _Police Gazette_. I produce the _Gazette_ wherein the brand and description correspond. I charged the prisoner with receiving a certain bay horse branded H. J., well knowing him to be stolen, and arrested him. I then conveyed the prisoners to the gaol at Ballarat East, where I confined them.' This evidence--which even Lance admitted to himself placed matters in a more unfavourable light than he could have supposed possible--being read over, Mr. M'Alpine said, 'Have you any question to ask the witness?' 'Yes, your worship,' answered Lance, bringing out the last two words with apparent difficulty. 'You are aware that I had the bay horse in my possession for some weeks at Growlers', and rode him openly there?' 'Yes, certainly.' 'Then why did you not arrest me there?' 'I had my reasons, one of which was that I had not received an answer from Mr. Jeffreys--the breeder of the horse.' 'Was that with reference to the hundred pound reward offered on conviction of any one proved to have stolen one of his horses?' 'No!' 'That reward did not actuate you in arresting me on a charge of which you must know that I am innocent, if you have watched my conduct at all?' 'I _have_ watched your conduct, and know you to be an habitual associate of the Lawlesses, who, as a family, are known to be among the most clever horse and cattle stealers in New South Wales. I have known you to make a practice of gambling with them for large sums. It has been stated to me that you have lost as much as five hundred pounds to them at a sitting.'