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engaged ferrying the settlers over the river, and also packing goods for them up to their houses. I had to attend to both crossings, and it was very difficult to please all parties. I had also to boat the goods up Baker's Creek. AVhen a steamer came in the settlers used to flock down to get stores, so long as any remained on hand. Experienced a great deal of trouble with them on those occasions. Since buying the store I have purchased a fresh stock of flour and other articles of consumption, also drapery. A parcel of drapery and some tea had to be packed from AVestport. Charged 4s. per lb. for tea to cover cost of packing it. Mr. O'Conor made me reduce the price to 3s. 6d. per lb. ; before this I only charged 3s. per lb. I never sold any musty flour. On one occasion I did mix some Nelson and Californian flour. The Nelson flour was guaranteed, and the other flour was an excellent sample. I bought the medicine-chest amongst other things, and paid £4 for it. I consider that I have a grievance, if any one has, considering the prices I paid for the store and the difficulties I had to contend with besides in getting paid. Mr. O'Conor has nothing to do with my books. Have been admitted as a special settler, and have taken up 200 acres under lease, besides buying a 10-acre section at £2 an acre. Reckon that I have spent over £300 in clearing and improving my land. Will supply a list of prices charged at the store. M. Jones : Came here from Charleston to show the settlers how to fish with nets. Have the largest family at Karamea, who are solely dependent upon my work. lam a butcher by trade. Have killed cattle for the Government, amongst others a white bull, which weighed 7-g cwts. I killed another bull also for Government, white, with red neck ; this one weighed about 800 lbs. Both carcasses were sold in the usual way by the storekeeper, Mr. Simpson. Have killed cattle for Mr. Dolphin, for which he has paid me. I have done no work for Mr. Dolphin for which Government has paid me. I render my accounts to the Government and to Dolphin, each, for the w-ork Ido for them. I have never done any work privately for Mr. O'Conor for which Government has paid me. I held a chain for Mr. O'Conor for about half an hour on one occasion, but I did it to oblige him, and would accept no payment for it. Am indebted to him for many kind actions. On the 23rd August last, Mr. O'Conor sent me to Mr. Simpson, the Postmaster, to ascertain when the next mail would leave, and was informed that there would be none for several days. On returning with Mr. O'Conor from the flagstaff, about an hour afterwards, we learnt that H. Jordan had been sent hurriedly away with a mail. Previous to that, I was engaged jointly by Mr. O'Conor and Mr. Marchant, of the Geodesical Survey, to carry some letters and telegrams to Westport; this was about the 17th July. I had the mail in my possession, but was delayed by Mr. O'Conor for part of a day, and in the meanwhile Mr. Jennings prevailed on Mr. Marchant to send R. Johnson, jun., in my place. I have packed up the tools and forge belonging to Government from the Mokihinui track ; they are now in the store. Mr. Jennings, District Surveyor : With reference to a statement concerning certain applications made for land adjacent to the Native Reserve, Simpkin's application was made on the 19th March, and Elford's on the 13th March last. I did not keep any record of the dates at first, but have done so of late owing to the information being useful to the Commissioner of Crown Lands. About a fortnight after Simpkins and Elford had applied, Healy came to me to inquire about land in the same locality, and expressed a wish to take up the next vacant allotment above the land last applied for. Had good reason to believe that Healy was aware that his application was subject to Simpkins and Elford's. Concerning the mode of employing survey labour, I understood from Mr. O'Conor that the men to be employed were those who were detained at home by family matters. I found this arrangement very inconvenient, as it necessitated my employing men who were incapable of doing the work through want of experience, Of late I have used my own judgment in the matter, keeping in mind as far as possible the necessity for employing men who were most in need of assistance. Was informed by Mr. O'Conor that it was essential that those who stood in need of assistance should be first considered, and have always endeavoured to give effect to the intention. Many of the settlers have had reason lately to consider that the Government work has not been distributed fairly. lam aware that work has been offered to nearly all who are discontented, but these men were not in a position to accept it, because they were in debt at the store, and had no means to procure provisions otherwise. The men I allude to are Hammond, Sinclair, Scarlett, Merchent, Remnant, Brown, Line, Laurenson, and Martin. Am convinced that, if a steamer had called regularly, provisions could have been obtained much cheaper, and an opportunity afforded to the settlers to have disposed of their produce. Consider that large profits have been made in the store since March, and that the stores were sufficiently high while the matter was under the control of the Government. This brought the inquiry, with tho exception of the evidence of Messrs. O'Conor, Rawson, and Scanlon, to a close.

APPENDIX B. 1. The following copy of a memorial forwarded by the Karamea settlers to the House of Representatives is referred to Mr. O'Conor, to be good enough to furnish replies to the allegations contained therein. A. Mackay. " To the Honorable the Speaker aud the Honorable the Members of the House of Representatives of New Zealand, in Parliament assembled. " The petition of the undersigned special settlers, resident at the Karamea, Buller County, in the Colony of New Zealand, showeth, — " That, as special settlers, we have been permitted to take up land at the Karamea on deferred payments. " That, in occupying land in such a remote locality, we were assured by the Nelson provincial authorities —1. That we should be supplied with stores at moderate prices. 2. That work would be given us whereby we might earn money sufficient to pay for such stores, and also to pay the instalments of money falling due on our land. 3. That a subsidized steamer would call at the port. 3-D. 7.