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understand that from thirty to thirty-five members of the corps were absent, including a certain number in the Engineer Volunteer Militia. Of the thirty or thirty-five absent, some were on the Thames waterworks, and some at Puriri, and Captain Lipsey was unable to warn these men to attend parade. 4. Can Captain Lipsey explain why he said he thought Major Gordon could not see his corps on parade on Sunday; and can he give any reason why the corps did not attend the Sunday parade, as ordered by Major Cooper in District Orders ; or why he was present at parade in plain clothes without having asked Major Gordon's leave from parade ?—Captain Lipsey does not recollect making use of the words attributed to him, nor does he remember to have heard the question, but admits it was an error on his part not attending the parade, but at the time considered it optional for officers and men to attend parade on Sundays, as on former occasions Major Cooper's orders always left church parades optional. The men did not desire to attend this parade, as they had been subjected to a considerable amount of chaffing on account of certain remarks made by Major Gordon on the Friday before the parade, and therefore they were ashamed to turn out in uniform on Sunday. 5. Can Captain Lipsey give any reason or explanation for having ordered No. 1 Company Hauraki Rifle Volunteers to give in their arms and accoutrements without authority ?—The advertisement was inserted by Captain Lipsey at the. request of a considerable portion of the corps, who had intimated that they intended to resign, and the calling in of the arms, &c, was dictated by a desire to preserve and secure Government property, for which Captain Lipsey is held responsible by the Volunteer Acts aud Regulations. 6. Did Major Gordon understand Captain Lipsey correctly to have said, " that he was not to suppose he was going to claim capitation for the men he saw, as they were all recruits ? " —Captain Lipsey did not intend Major Gordon to understand that all the men on parade were recruits; he said, " two of the men were recruits." Captain Lipsey could not have said all were recruits, as he knew a number of them had belonged to the Imperial service. 7. Can Captain Lipsey offer any explanation relative to capitation money drawn by Volunteer W. Plant for 1872-73, who has written to Major Gordon, intimating that he ought not to have been on the capitation roll; also, relative to Volunteer Woon, who, Major Gordon says, was never in No. 1 Company ?—Volunteer Plant was enrolled in No. 1 Company on the 18th of July, 1871, and was an efficient Volunteer when he joined, having been in the Imperial service. He was a regular attendant at drill, and took an active part in the affairs of the corps, as is proved by the books of the company. He has drawn capitation money for 1871-72 and 1872-73, and has been provided with a suit of clothes at a cost of £4. He has not earned capitation money for 1873-74. With reference to Volunteer Woon's capitation money, Major Cooper will remember it was refunded to Captain Morrow, but Captain Lipsey is glad the question has been again mooted, as he is able to show the Government that he ought not to have been found fault with in the matter, as the annexed copy of a letter from Captain Morrow (discovered since the correspondence with the Defence Office took place) shows that Captain Lipsey had some reason to claim the capitation money for Volunteer Woon, and to consider him a member of his corps. Captain Morrow's letter points out that Volunteer Woon actually belonged to No. 1 Hauraki Rifle Volunteers, as it asks for his transfer at the end of the Volunteer year, and shows that it is a matter of doubt as to which corps should have the capitation money. Sub-Enclosure to Enclosure in No. 16. Captain Morrow, Auckland, to Captain Lipsey. Dear Sir, — Auckland, 29th April, 1874. Will you be good enough to forward, as soon as possible, Mr. W. G. Woon's transfer to my company, as the capitation returns must be sent in immediately. Mr. Woon has served with me five months, and I would be glad to know whether your claim or mine is the strongest to return him for capitation. He told me you promised to let him have the transfer from date of leaving, either in the latter end of November or early in December last year. Truly yours, Arthur Morrow, Captain, Captain Lipsey, No. 1 Royal Company, Commanding No. 4 Company A.R. Brigade. Bendigo Hotel, Grahamstown. Captain Morrow answered, and informed that capitation roll of corps had been already forwarded to Wellington, and that Volunteer Woon's name had been included, and also referred him to the latter part of clause 27 of the Volunteer Acts and Regulations, page 29. 30th April, 1873. F. L.

No. 17. Statement of Volunteer Woon. Auckland, 18th September, 1873. Extract. " But what I am now more especially writing for is to explain the late capitation affair. When I returned to Auckland I rejoined No. 4 Company here. I was told that my name was still on the books of No. 4, and that as I had never had a transfer, I consequently still belonged to No. 4 Company, and therefore was really never a member of No. 1. The captain of No. 4 asked me if I had been in any company at the Thames. I said,' Yes, in No. I.' Well, I was returned for five parades in Auckland, that leaving two then for the Thames; but, on the returns being sent to Wellington, Major Gordon was written to, requesting an explanation as to my capitation. I was then asked about it, and requested to send to Major Gordon a statement, which I did, and which was, I believe, sent to headquarters.

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