Some few days after this, Mrs. Byrne went to the police station, and reported that a valuable horse of hers had been stolen from Woolshed, and, after inquiry by the police, it was found in the possession of Mrs. Skillian, Ned Kelly's sister. She produced a receipt for it, as having purchased it from Aaron, and signed by him, for the small sum of £3 or £4. Mrs. Byrne obtained a warrant for Aaron's arrest, for they all suspected he was then a spy of mine. I spoke to Aaron on the subject, and he admitted that he had taken the horse and sold it to Mrs. Skillian. He said, "I could not help doing this. I did not want the horse, but I felt I must do something to old Mrs. Byrne. She has not behaved well to me lately, and her conduct towards me is so cool that I could not resist the temptation of stealing her horse." All the time Aaron was with me, only the police who were actually in my party were aware he was working for me, and most of the others were delighted to hear there was a warrant out for his arrest. They made every effort to capture him, but could not find him. I was greatly annoyed with him, because it crippled his usefulness immensely. However, he kept out of the way of the police, and when I was relieved from the district I left it to my successor to get him out of his difficulty. I don't quite know how this was managed, but I was told he was directed to be at a certain spot one day, and a constable was ordered to go there and apprehend him. The constable afterwards took great credit for his capture, not knowing that his arrest was an arranged matter. He was brought before the police-court, but the evidence was not sufficient for the magistrates to commit him for trial, as the horse was not forthcoming, and Aaron was acquitted. I am not quite sure I am right in all the details of what occurred with reference to his arrest, but I was told that this was how the matter was managed.