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In December, 1872, Mr. Andrews having determined to proceed to New Zealand, he called at the Agent-General's office, filled in the usual Treasury vouchers, and received the capitation money due to him, viz., £16. After Mr. Andrews had left, and before making a fresh appointment, I wrote to the Agent-General and suggested a paid clerk would be better, as it was probable he would be overpaid by receiving the capitation money. In reply, the Agent-General said he preferred the capitation payment. In February, 1873, I appointed Mr. J. Walker to assist me, which appointment was confirmed by the Agent-General. The Agent-General now declines to pay him his capitation money; I have, therefore been obliged to pay it: consequently I have not only performed the onerous duties of district agent for seven months without payment, but have also had to pay the capitation allowance on the emigrants who have passed through my office since February, 1872. The Hon. Julius Vogel, Wellington.

Enclosure 2 in No. 63. Mr. Fabuall to the Hon. J. Vogel. Sib, — 2i, Corporation Street, Belfast, 10th February, 1874. I have the honor to forward you herewith, a copy of a letter I wrote to the Agent-General on the subject of the appointments of Messrs. Andrews and Walker, together with his reply thereto. As I had the honor of intimating to you by last mail, the Agent-General, in June, 1873, cancelled the appointment I received from your Government, without vouchsafing any reason for so doing. It was not until some considerable time after I had received from him my letter of dismissal, that I became aware that the subject of the remuneration of Messrs. Andrews and Walker (the latter of whom, by the way, has never received a sixpence from the Government) was twisted into something against me very like malversation, and that consequently I was not fit to be continued in a position of trust. I complain, and I think I have good grounds for so doing, that a serious charge such as this has not at once been brought specifically against me, so that I might meet it. Instead of this, it has only been in a manner hinted at to me, although at the same time the libel (which it undoubtedly is) has been circulated freely amongst old New Zealand colonists and others frequenting the Agent-General's offices —gentlemen for the most part personally unknown to me, and who have not, therefore, the opportunity of judging whether I would be guilty of such petty meannesses as those imputed to me. I consider I have also great cause of complaint, that the Agent-General should send me such an answer as that which I now enclose, to my straightforward and plain letter, which gives, as 1 think, a clear and satisfactory explanation of all the circumstances connected with the appointment of the two gentlemen in question. I have, &c, The Hon. Julius Vogel, Wellington. Habbt W. Fabnalli. Sub-Enclosure 1 to Enclosure 2 in No. 63. Mr. Faenall to the Peivate Seceetaet of the Agent-Genebal. Sib, — 2, Devonshire Buildings, Bath, 30th January, 1874. I have the honor to request that you will be good enough to bring the contents of this letter under the notice of the Agent-General, and that you will inform me, at your early convenience, whether, after he has taken into consideration the facts that it contains, he still adheres to the statement that I acted unjustifiably and without authority in allowing my assistants to apply for, and in one instance to receive, the capitation fees allowed to the New Zealand local emigration agents. la a communication I received from the Agent-General, bearing date 25th July, 1873, occurs the following passage:— " I shall be glad to receive from you an explanation of an account sent in by Mr. J. Walker, who is, I am informed, a clerk in your office. If it is true that the claimant is, or was at the time in question, a clerk in your office, I can scarcely believe that you could have been aware of any such claim without at once prohibiting it. The account, fortunately, has not been passed, and certainly will not be paid unless some satisfactory explanation is forthcoming. " My attention has likewise been called to an account of a similar kind for £16, presented by Mr. Thomas Andrews in November last, certified to by Mr. Morrison, in my absence, and paid without my knowledge of the alleged circumstances of the case. " I shall feel obliged by your informing me whether, at the time in question, Mr. Andrews was employed in your office, and (if so) whether you were cognizant of his making a claim on the Government for commission." In another communication, bearing date 25th November, 1873, the following passage occurs :— " While thus informing you of the amount I shall be prepared to sanction, I must again remind you that the payment made to you in error (under the head of commission to a clerk in your employ) has not yet been refunded." This statement is a gross perversion of facts. The sum paid by me to Mr. Andrews (the gentleman alluded to as the clerk in my employ), for assisting mo in my office, was £23. The account for £1G tendered by Mr. Andrews, and paid by the Government, was advanced by me to him, as it was understood by all concerned that this gentleman was to receive the usual capitation fees, which this sum represented. Part of this sum of £1G was disbursed by Mr. Andrews amongst sub-agents whom he employed, and to whom he paid the commission. I will now enter into the facts connected with the appointments of Messrs. Andrews and Walker.