H.—36

4

he would be apt to lose his pound. He said, " I will make that all right." During the month, he came into the orderly room, asked for the duty roster, opened it, and found that the exact amount of duty which they had performed was entered against these two men. He then altered, with his own hand, the amount"entered to them, by adding to Baskeville's, 24th, 25th, 26th, and 27th of September, and to Flynn's, 25th, 26th, and 27th of September, as days on which they were at work when they were really on pass, and then instructed me to make up the month's accounts accordingly. I did so, and Captain Eowe examined and passed the next month's accounts with a full knowledge of the wrong entries. On the succeeding day, Captain Eowe produced the orders of Baskeville and Flynn to the pay clerk (Mr. Oldrey), and received payment for them. 1. Captain Howe.] When I gave you the order to call upon Mr. Lovell in Newcastle, did I give you a note to him or a verbal message r—You ordered me verbally to go to Newcastle ; whether you gave me a note to Mr. Lovell or not I do not remember. 2. Did I give you any order to sign a receipt for the money ?—I did give a receipt to Mr. Lovell for £34. (Mr. Craig could not answer, or would not, in any other way.) 3. Do you remember what you told me on the morning following the night of your return from Newcastle —the night when Major Cooper accosted Mr. Lovell ? —I told you that I had been accosted by Major Cooper in Newcastle, and that he asked me concerning the affair of the mare, and that I told him what I knew about it. 4. Do you not remember that you told me that you were hauled up like a prisoner by the Sergeant-Major (Small) before Major Cooper, in front of Fitzpatrick's store, relative to the price paid for the mare; and whilst before the Major, did you not tell me that Mr. Lovell came along very drunk, and that the Major could not get any information out of him at all? —I certainly did say that I was asked about the affair at Newcastle by Major Cooper, but in what words I conveyed the information Ido not recollect. I said that Mr. Lovell was drunk when he came down the road with me to Taupiri, but did not say that he was druuk at the time he was speaking to Major Cooper, some time having elapsed between the two periods. 5. Did not Mr. Lovell tell Major Cooper that he (Major Cooper) was trying to make a fool of him because he (Mr. Lovell) was in liquor, and that if he wanted the receipt, or to see the copy of it, he could get it at his office or house ?—Not in my hearing. I also heard them conversing about a receipt, but cannot say that I heard that particular part of the conversation. 6. When Mr. Lovell gave you the cheque, did he tell you what it was for ?—When I saw Mr. Lovell, I told him that I was sent by Captain Eowe for the balance of the price of the mare. He answered, " All right, I will give you a cheque for the amount," and did so. 7. How do you know that I received a deposit of £1 on account of the mare? —Mr. Lovell told me so, Mr. Hope told me so, and you yourself told me so. Mr. Lovell, having been duly warned to attend the Court on 29th March, as an evidence on the side of the prosecution, sends to Investigating Officer the annexed letter marked A, which, being read to Mr. Craig and Captain Howe, they each determine to proceed without him. Mr. Craig calls upon Mr. Hope as the next witness. Mr. Hope states : I live at Mr. Lovell's, at Taupiri. Some time back I told him that I had learnt that one of the Government mares used on the works was about to be sold, and that I thought her worth about £45. Lovell thought that she was not worth so much, but had said that he would give £40 for her, or rather that he thought she was not worth more than £40. Every time I saw Major Cooper I urged him to sell the mare. He said she would be sold, and Mr. Stewart authorized the sale. The mare was soon afterwards advertised for sale, with a reserve of £35. Lovell saw the advertisement, and went to Captain Eowe and secured her, telling me that he had paid a deposit, but without saying how much. The mare subsequently became Lovell's property. He told me that he had given £35 for her. The sale was effected on the day the advertisement appeared: I believe on the 29th August. Mr. Lovell gave me to understand that he had given £35 for the mare, and he has not said since that it was not so. I was present one afternoon with Major Cooper, Mr. Lovell, Sergeant-Major Small, and Sergeant Craig. We were all together, when Major Cooper asked Lovell about the price of the mare. Mr. Lovell replied that he could not exactly recollect, as he had not his receipts or cheque book on him. At this time Lovell was sober, but he hail been drinking ;he was quite capable of managing his own business, however, at the time. It was then that I said to Lovell, " You know you paid £35," or words to that effect. There had been some general talk to the effect that there was going to be some investigation on the subject of the sale of this mare, and Mr. Lovell had told me that he would save Captain Eowe if he could; that if he had to appear, he would tell the truth. He said to me that if put on oath, he would make a clean breast of it. 8. Captain Howe.] What reply did Mr. Lovell make when you reminded him that he had paid £35 for the mare? —I do not think he replied at all. 9. Will you explain the latter portion of your evidence, commencing with, " There had been some general talk," &c. ? —I looked upon Captain Eowe as guilty of the imputation of having pocketed some of the proceeds of the sale of the mare, and told Lovell that it looked bad for Captain Eowe; and it was then that Lovell told me that he would save him if he could; that he would have nothing to do with the case ; but that if he was compelled to give evidence, he would tell the truth. Mr. Craig calls upon Sergeant Sheehy, hospital sergeant, Engineer Volunteer Militia, who states: Of my own knowledge I know nothing whatever of the accusations against Captain Eowe by Craig ; but Major Cooper asked me if I knew anything about the sale of a horse ? My reply was that I did not. Lovell, on one occasion, asked me if I knew why he had not received the money for some forage, as the (iovernment had been down on him pretty quickly for the price of a horse which he had purchased ? I replied that I did not know, but that the return or cash voucher for the forage had gone in to the Government for the payment of the account. 10. Mr. Craig.] Did you not say to Major Cooper that Mr. Lovell had informed you that he had paid £35 for the mare ? —Never. 11. Did you tell Major Cooper that Mr. Lovell had paid £35 for the mare?— No.