CASE OE MR. MACANDEEW.

37

D.—No. 1.

On the 28th September, 1860, the Provincial Treasurer paid on your "Warrant No. 1417 of the same date, the sum of £1132 10s. to Andrew Cumming, the master of the said vessel, being the second moiety for the same purpose. And on the 18th February, 1861, the Home Agents paid again the second moiety for the Emigrants by the said vessel, by retiring your bill, dated 24th October, 1860, at 30 days sight, in favour of Messrs. E. P. and C. R. Eaynor, of Sunderland, and charging the amount under your instructions to the same account. I have only further to note for your information, that the Agents in their communication by the present mail, do not make any reference to either the first or second of the Bills of Exchange for the sum of £1000, which you represent as having forwarded to them on the Clutha Coal Plant account. I have, <fee, J. Richaedson, James Macandrew, Esq., Dunedin. Superintendent.

Enclosure 7 in No. 9. James Macandeew, Esq., to the Sttpeeintendent, Otago. Sic,— Dunedin, 29th August, 1861. I have deferred replying to your communication of 2nd instant, having been in daily expectation since its receipt of being enabled personally to see to the matter, and get them put all right. Having been however disappointed in this, I have now to explain that the £1012 14s. 5d., to which you refer, was an exchange transaction, the amount of which was arranged to be paid into the Treasury here, immediately on receipt of advice of its payment at the other end —(probably the Members of the Executive may recollect that it was agreed to dispose of the debentures at home, and to draw against them at par for the reasons stated in my Despatch to the Agents). But for the unfortunate circumstance which precluded me from seeing to the matter personally, this arrangement would have been duly fulfilled. As it is, I had every reason to be satisfied that the matter had long ere this explained itself. There seems, however, to have been some misunderstanding on the subject; the money, I believe, is in the hands of Captain Robertson, Agent, by whom it will no doubt be paid, so soon as I can communicate with him, which I shall do forthwith. As respects the Clutha Plant, if it is deemed proper that the loss (if loss it shall finally turn out to be), shall be borne *by me; the amount will be paid in terms of my letter of 19th June, so soon as I can communicate with my friends. I have, &c, To His Honor the Superintendent, Otago. James Macandbew.

No. 10. Copy of a Letter from the Colonial Seceetaet to the Supeelntendent, Otago. (No. 51.) Sic, — Colonial Secretary's Office, Auckland, Bth January, 1862. I have to acknowledge the receipt of your letter of the 20th.ultimo, on the subject of Mr. Macandrew's defalcations. I will give the subject immediate attention with the view of deciding whether the Government will take any, and what action, in reference thereto. I have, &c, His Honor the Superintendent, Otago. Henet Sewell.

No. 11. Copy of a Letter from the Hon. the Colonial Seceetaey to the Supeeintendent, Otago. (No. 413.) Sic, — Colonial Secretary's Office, Auckland, 7th April, 1862. With reference to previous correspondence upon the subject, I have now the honor to enclose copy of a report by the Assistant Law Officer, upon Mr. Macandrew's case, and to request your Honor's opinion as to the expediency of taking any further proceedings ; also to assure your Honor of the desire of the Government to act in this matter in accordance with the views of the Provincial Government of Otago. I have, &c, His Honor the Superintendent, Otago. William Fox.

Enclosure in No. 11. Report by the Assistant Law Offices upon Mr. Macandeew's Case. Me. Sewell, — Attorney-General's Office, Auckland, 3rd April, 1862. I have perused these papers, and after much consideration have come to the following conclusions, the grounds of which I suppose it is unnecessary to state at length. Mr. Macandrew in not guilty of embezzlement, for he never was a, person entrusted with public money. He has not detained money under false pretences. Xor can I find that he has committed any offence that will come within any of the statutory felonies or misdemeanours. 10