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H.—36

deserters, I made up my mind to stop the amount of pay over-credited to these two men from whatever recruits should take the uniforms thrown on my hands by Baskeville and Flynn, and the uniforms were disposed of on such terms. At the time that I directed five days' pay each to be credited to the two men in question, two days' pay were actually due to each of them. I acquainted the Paymaster with all that I had done, and he concurred, and the overcharge was adjusted with him to the credit of the Government. Craig having, in the charges which he submitted to the Government against Captain Bowe, alluded to the contract entered into between Captain Eowe and Mr. Loveday —thus: " Captain Howe evidently did not want too much said about that contract"—the Investigating Officer wishes Captain Eowe to produce the document, but Captain Rowe replies that it had been, stolen from a drawer in his private residence, and that the only clue which ho could give as to its probable whereabouts might be ascertained from an evidence who was in attendance. This evidence is therefore called into Court. Sergeant Cook, Engineer Volunteer Militia, states: About six or eight months ago, SergeantMajor Small asked me to join him, Sergeant Craig, and Sergeant Barlow, to assist them to oust Lieut. Eyre and Captain Eowe. They said that these officers ought to be out, and that if they were I would get my stripes. Sergeant-Major Small said, "I have got Craig made a full sergeant, and to be colour-sergeant at Taupiri, to watch everything appertaining to the books of Captain Eowe, and to try and get any papers that will blast him. You will be down there, and must assist him all in your power." He asked me then to write out a complaint or charge against Captain Eowe to the effect that I had been working for Captain Eowe in Government time and with Government timber. He also said that he had already caused Sergeant Gibbs to write out a report against Lieut. Eyre, and that is one spoke in the wheel. Small also said, "Major Cooper is with us, and will assist all in his power." I told Small that I had nothing to write a complaint about, but still he tried to persuade me to come into his room, saying that he and Sergeant Barlow would help me to make it out; that if I would come in and write this complaint, the next time Major Cooper came up I should have my full stripes. I was then a corporal. I told him again that I had nothing to complain of. Then he said, whatever you do, help Craig, as he will move heaven and earth to get these officers out, and get better men in their place. I was then sent to Taupiri where Craig was stationed, and thinking that I was one of his party, he used to tell me most things that transpired. One serious thing he told me of was, that he went into the captain's quarters, Captain Eowe's, and hunted among his papers, and got some valuable documents, but, for God's sake, 1 was not to tell any one about it. I laughed and said, " Not I;" but at the same time, if I had heard of any inquiry about missing papers, I would have spoken of them to Captain Eowe. I asked Craig if he kept these documents in his house, when he replied that " Barlow and Small would keep them safe enough." Mr. Oldrey, the Paymaster under the Public Works Department of the Engineer Volunteer Militia, states: I submit for the perusal of the Court the balance sheet of the No. 1 Company Engineer Volunteer Militia, for the period from 23rd September to 20th October, 1874; and I also submit for inspection authorities from Baskeville and Flynn to pay Captain Eowe the amount of money coming to them for that period. Baskeville was stopped twenty-three days' pay, and was paid five days' pay, less deductions Bs. 2d. for rations. Captain Eowe signed the balance sheet as his agent, the original of which is in Wellington. On my last arrival here, I found that in the balance sheet produced to me by Captain Eowe, the name of D. E. Smith appears, with the observation against it of "Seven da3 rs' pay stopped on account of uniform." I required an explanation from Captain Eowe, and that which he gave me was satisfactory to mo as the Paymaster of the corps. I have looked into the accounts very minutely, and find that the Government has not in any respect lost seven days' pay, or even one day's pay, in the matter of Baskeville and Flynn. The system in existence with this corps as regards its cash accounts is such that the Government cannot be defrauded, and the officers of the corps have no control in any way over the payment of their men, or in recovery of stoppages. Even payment on account of plant, forage, or such stores required by them, must and does pass through the Paymaster, and not one penny is disbursed by the officers. The defence on the part of Captain Eowe being closed, the Court proceeds to record its opinion on the matter which has been under its consideration, and now desires to submit its finding in the following terms : — Finding. —The Court is of opinion that Captain Eowe is not guilty of either of the charges preferred against him, and it is moreover of opinion that they were preferred against him by J. S. Craig in a malicious and vindictive spirit. Wm. Gordon, Major, ' Newcastle, 30th March, 1875. Investigating Officer. Sub-Enclosure A to Enclosure in No. 3. Mr. Lovell to Major Gobdon. Deae Sic, — Taupiri, 27th March, 1875. Just received your despatch, and am sorry that I cannot attend in accordance with your wish, in consequence of my business demanding my attention even more to-day than any other time. I presume my presence is required to give evidence in connectioil with a mare I purchased from the Government; if so, I can only repeat that I have already given evidence to Major Cooper, and also (I believe) a copy of receipt I received from Captain Eowe as payment. I don't see that I could do more if I attended the investigation. I have, &c, Major Gordon. W. H. M. Lovell. Sub-Enclosure B to Enclosure in No. 3. Taupiri, sth September, 1874. Eeceived from Captain H. T. Eowe, No. 1 Company Engineer Volunteer Militia, one (1) bay mare. Marks, like C on off' shoulder ; age, 5 years 6 months ; price, £30. W. H. M. Lotell.

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