A.—6

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2. That on receiving the names of these gentlemen, he at once informed the Arikis of Arorangi and Takitumu that Mr. Salmon and Teatuairo were not Members of the Council, and therefore not eligible to sit on its Committee. No other names have since been sent to him. 3. It then became a question whether Tepou-o-te-Eangi, being the only member properly appointed, should act in the absence of other members. The British Eesident decided that this was for Tepou to consider, he himself merely acting as Chairman at the request of the Council, and his position being only that of Adviser if his advice were requested. Any laws passed by the Council must be submitted to him for approval according to the Constitution Act, and it would then be for him to act as he might think necessary. 4. Tepou therefore decided that he would only take up business that was urgent —namely : The Appropriation Bill; the appointment of Overseers of Works ; the alteration of the time of meeting of the Council, so that it might not be at the same time as the Parliament; and the Divorce Bill. 5. Other measures, such as the preventing of pigs, horses, and cattle being a public nuisance; preventing the spread of noxious weeds; planting cocoanuts along the shores as a means of future revenue to the Council, are left for the Council whenever it may again meet, if it think fit to take them in hand. 6. Eespecting the appropriation of the revenue, your Committee find that the sum available is— From permit fees in hand ... ... ... ... ... ... $965 From the fixed subsidy already paid and the subsidy granted by Parliament—namely, half the cost of any approved public work, the whole not to exceed ... ... ... ... ... 1, 300 And from permit fees for 1892-93 ... ... ... ... ... 400 From subsidy,for year 1892-93 ... ... ... ... ... 300 Total ... ... ... $2,965 7. They think, therefore, that the Council can safely appropriate $2,965 for the year ending 30th June, 1893, in the manner suggested for the Council's consideration in the Appropriation Bill appended hereto. 8. The conditions on which the subsidies are granted are : That the Council shall appoint overseers of works. That these overseers shall keep a true and faithful account of all work done, of the number and names of men employed daily, and of the sum to which each man is entitled for his work. That these overseers shall send in every week a copy of these accounts to the Inspector appointed by Parliament, who shall thereupon give a certificate with the overseer's reports attached, if he is satisfied of the correctness of such reports and the value of the work done. That no money shall be paid by the Paymaster without the Inspector's certificate and overseer's reports being sent to him by the Inspector and attached to the voucher. 9. The Council will, therefore, have now to consider : Who are to be the overseers, or by whom they shall be hereafter appointed; whether it will itself appoint them now, or leave the Arikis to appoint them and send in their names to the Paymaster. To consider the Appropriation Bill, the Divorce Bill, and the Bill to alter the date of the Council's future meetings, the drafts of which Bills are submitted herewith. 10. The Committee have only further to observe that the Subsidies Act passed by Parliament provides a penalty not exceeding $100, and deprivation of office for not more than ten years, as a punishment for any overseer who may give false accounts, or any Inspector who may knowingly accept such false accounts or give a false certificate. 11. Mr. Henry Nicholas was appointed by the Parliament as Inspector for Earotonga ; but he has expressed his willingness to resign in favour of any person who may be nominated to that office by the Council and be approved by the British Eesident, as the proper expenditure of this money concerns the foreign residents as much as the Maori people. Feedeeick J. Moss, Chairman. Appendix. Submitted herewith, for the Council's consideration: Eesolution as to the appointment of overseers ; Appropriation Bill for expenditure of $2,965 during the year 1892-93; Divorce Bill; Bill to alter the day of future meetings of Council to the 4th August every year. [Teanslation.] No. I.—An Act to Amend the Law Constituting the Eaeotonga Council (No. 6, 1891). 1. It is hereby enacted by the Earotonga Council, that the Council shall hereafter meet on the 4th day of August in each year, instead of the 3rd May; and section No. sof Law No. 6, 1891, is hereby amended accordingly. Dated at Avarua, this 23rd day of August, 1892. Approved. To come into operation forthwith.—23rd August, 1892. Feedeeick J. Moss, British Eesident. [Teanslation.] No. 2.—" Divoece Act, 1892." It is hereby enacted by the Earotonga Council: — 1. That there shall be a Divorce Court for the Island of Earotonga, with jurisdiction confined to marriages celebrated in the Island of Earotonga. 2. That the Judges of Avarua, Arorangi, and Takitumu shall sit together, and constitute the said Court.