D.—No. 1

28

PAPERS RELATIVE TO THE

9. The warrant directs payment to be made to James Macandrew and "W. H. Reynolds, the duly authorized agents of Messrs. Gladstone and Co. It is found that the receipt of James Macandrew only has been taken. Have you on any former occasion paid the money with one signature only, and afterwards obtained the other ? lam quite uncertain whether previously any payment was made on the signature of one person only; but lam certain that Mr. Reynolds upbraided me on a previous occasion because I had. refused to give the money on Mr. Macandrew's receipt alone. I have no explanation to offer in addition to what will be found stated in the printed Council papers, pages 8, 9, and 13. 10. Did you apply to Mr. Reynolds for his signature in the case of the " Gala? " Many a time. 11. Did Mr. Reynolds explain why he refused his acquittance ? He said he would require to see Mr. Macandrew first: this answer he gave several times before ho absolutely refused to sign a receipt for the money paid to Mr. Macandrew. 12. It is observed that a new warrant was afterwards issued in favour of James Macandrew and Co., and the acquittance of James Macandrew and Co. supplied as a new voucher. Produce these documents ? I hand them in. I had repeatedly requested, the Superintendent cither to return the money or produce the acquittance of Mr. Reynolds. On the 10th of July and 2nd August last, I addressed letters to him on the subject, copies of which I now hand in. 13. Have you been furnished with the authority of J. G-ladstone and Co. to pay to J. Macandrew and Co., instead of to James Macandrew and W. H. Reynolds, the amount of their claims on account of the " Gala? " I have not; but the Superintendent has assured me that he holds such a letter of authority. lam not aware of the contents of that letter. Clutlia Coal Fields. 14. Will you refer to the Appropriation Ordinance of 1859 ? "Was the issue of £1000 to the Superintendent, on account of the Clutha Coal Melds, charged against the vote of £3000 for works in connection with the Clutha Coal Reids ? Tes. 14a. The sum of £1000 to the Superintendent on 7th May, 1860, on account of the Clutha Coal Fields, was paid at the Bank on the authority of the Superintendent's warrant: did you afterwards issue a cheque for the sum ? Tes. 15. You are the Treasurer of the General Road Board and of the Otago Board of Education ? I am. But the Government has now taken the management of roads into their own hands, in anticipation of an alteration in the law. In consequence of that, the balance that was in my hands in the month of October last, was paid into the Provincial Account at the Bank. 16. Will you produce the Road Board Account ? Handed in accordingly. 17. Where did you deposit the funds of the Road Board ? I find that the balance in hand sometimes exceeded £1400. From the first July, 1859, to the 29th September, 1860, the balance varied from about £900 to £700. The Road Board balance and that.of the Education Board were kept in an iron safe connected with my office and the Land Office. 18. Did the Board of Audit, on any occasion since the 24th September, 1857, when the moneys belonging to the Provincial Account were first deposited at the Union Bank, count the cash deposited in the chest alluded to; and, if so, did you state to the Board that the moneys deposited were moneys belonging to the General Road Board and Education Board ? The Provincial Account money and the Road money and the Education Board money, were severally kept in separate bags deposited in the chest. The Provincial Auditors always asked for exhibition of the Provincial Account money, and it was exhibited. The Auditors of the Road Board and of the Education Board did not ask for exhibition of the money belonging to those several Boards, and it was not exhibited. 19. It is understood from your reply that after the 24th September, 1857, you continued to hold in the chest moneys belonging to the Provincial Fund Account ? Sometimes to a small amount, and I was empowered to do so by the regulations of the service. I produce copies of three letters of instruction in regard to these matters, dated respectively 16th December, 1859, 13th January, 18G0, 26th December, 1860. 20. I hand to you a statement of the Accountant of the Provincial Treasury, showing certain deficiencies in the balance of the Provincial Account at the bank; do you admit that these deficiencies existed, and will you explain how they occurred ? I have no doubt the Provincial Accountant's report is correct; but with the exception of the sum of £1086 13s. 4d., that was in the hands of the Superintendent, I am positive all the public moneys not in the Bank were in the Provincial chest. 21. On some occasions moneys were issued without the Superintendent's warrant for payment of wages of men employed on the Public Works. It is stated by the Accountant that these issues were not shewn in your cash-book until after the Superintendent's warrant had been obtained. This would cause a deficiency in your balance. Can you point out an instance where such payments have not been inserted in the cash-book at the time when the balance was struck ? I wish to explain that when I stated to the Provincial Council's Committee, that the discrepancies between the cash-book and Bank-book balance must have been owing to sums advanced for wages not credited, I, of course, alluded to any excess beyond the sum borrowed by the Superintendent, and had particularly in view the sum of £1877 16s. lid. on 15th May (vide Report, p. 6), reported by them apparently deficient on that date ; for I was certain that if, in point of fact, there was so large an apparent deficiency, it must have been owing, not only to the loan to the Superintendent, but to advances made on account of wages which had not been placed to my credit; and the Accountant's statement now before you shows that I was correct in that. lam quite certain that Provincial account money kept in the chest never exceeded £400 ; and I put in three letters authorizing a sum to be kept to meet wages. Letters dated 16th December, 1859, 13th January, 1860, 26th December, 1860. As an instance where such payments have not been inserted in the cash-book at the time of survey, I refer to the Accountant's pass-book with the Union Bank ou the 29th and 31st March, 1860. 21a. It is stated in the evidence taken before the Select Committee that the payments unvouched for at Invercargill account for the deficiency. I have examined the accounts in your office, and find the