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manufactured copy of the receipt for £30, instead of £35. the actual price paid for the mare. When I spoke to Mr. Lovell about it, he said that he did not like to go against Captain Eowe, but that if put on oath he would tell the truth. I, myself, am in possession of other facts connected with this charge, which leaves no doubt about it whatever. With regard to the second charge, the balance sheet, ledger accounts, and company duty roster, placed alongside of the different working sergeants' returns now in my possession, leaves no doubt on that charge. I would have reported these cases at the time, but, as a member of the force, I would have had to report through Captain Eowe himself as senior officer in the force, Major Cooper having left by that time ; and it can easily be judged what the fate of such reports would have been. Should you deem it necessary, I will take an affidavit as to the truth of the foregoing statements before any Magistrate, and forward the same. I will also, if required, forward copies of the documentary evidence now in my possession. In conclusion, I may say that had I gone in with the miserable course of conduct pursued by my superiors in the force, I would have occupied a more comfortable position, and been in the force still. Praying an inquiry into the entire affair, I have, Ac, Sir Donald McLean, K.C.M.G., J. S. Ceaig. Minister Colonial Defence, N.Z. P.S.—My address is care of J. T. Giffney, Esq., builder, Newcastle, Waikato.

Enclosure in No. 1. Charoes against Captain H. T. Eowe, E.V.M. 1. That on or about the beginning of September, 1874, Captain H. T. Eowe, being empowered by Major Cooper, then commanding Engineer Volunteer Militia, to sell a Government mare then in his possession as Captain of No. 1 Company, Engineer Volunteer Militia, did sell the said mare to Mr. Lovell, Taupiri, for the sum of £35. He then communicated with Major Cooper, stating that he could only get £30 for the mare, and pocketed the £5 difference. The various facts will appear on evidence. 2. That on 24th September, 1874, Mr. Oldrey, Paymaster's clerk, paid No. 1 Company, Engineer Volunteer Militia, for month ending 23rd September. Captain Eowe, having entered into a contract for clothing for the company with Mr. Loveday, deducted £1 from each man who was to receive clothing. The men not having received any part of the clothing at the time were dissatisfied, and some of them refused to sign the balance sheet and ledger unless paid in full. As he (Captain Eowe) evidently did not want too much said about that contract, he offered to advance the £1 so charged to some of the most obstinate of them, at the same time taking an order for the amount from each on future pay. Several of the men (old soldiers) were so thoroughly disgusted that they requested —in fact demanded —a pass for fourteen days, which Captain Eowe did not seem to think it prudent to refuse. I will only name two of them, sappers Baskeville and Flynn: they never came back. Baskeville's pass dated from the 24th, and Flynn's from the 25th September; consequently there was one day's duty for Baskeville and two for Flynn. At the making up of the following month's accounts, he. (Captain Eowe) caused four days' duty to Baskeville and three days' to Flynn to be inserted in the company duty roster, which they had never performed, thereby showing five days' duty as performed by each, instead of the actual amount of duty performed by them, so that there might be balance enough left to their credit to pay the £1 he had advanced to them. He then put in the orders as claims for the £1 he had so advanced, which he could not have got had the proper balance due to them only been shown ; consequently the Government lost in those two cases alone seven days' pay. Witness my hand, this 18th day of February, 1875. J. S. Craig.

No. 2. Lieut.-Colonel St. John to Major Gordon. Sic, — Auckland, 27th February, 1875. By direction of the Hon. the Native Minister, I beg to enclose to you documents relative to the Engineer Militia in Waikato. I am also directed to instruct you to proceed to the "Waikato, and there conduct an inquiry into the charges preferred in those documents, copies of which should be furnished to the officers named in them. In addition to the report you will make in these two cases, you are requested to give a general report as to the state of discipline, Ac, of the corps. I have, &c, J. H. H. St. John, Major Gordon, Auckland. Lieut.-Colonel.

No. 3. Major Gordon to the Under Secretary for Defence. Sir, — Auckland, 26th April, 1875. I have the honor to report that I have this day posted to you the proceedings of Court of Inquiry into charges made by Mr. J. S. Craig, late of the Engineer Volunteer Militia, against Captain Eowe, of that corps. I have, &c, Wm. Gordon, Major, The Under Secretary for Defence, Commanding Auckland District. (Militia and Volunteer Branch,) Wellington.