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To His Excellency the Eight Honourable David, Earl of Glasgow, Knight Grand Cross of the Most Distinguished Order of Saint Michael and Saint George, Governor and Commander-in-Chief in and over Her Majesty's Colony of New Zealand. May it please youe Excellency,— In pursuance of and in obedience to the Commission issued under " The Commissioners' Powers Act, 1867," and "The Commissioners' Powers Act Amendment Act, 1872," on the 4th December, 1893, and directed to me', I have the honour to report to your Excellency as follows: — Your Excellency's Commission reached me on the 22nd December, 1893, and immediately on its receipt I communicated with the parties interested, and set to work to collect all the records, books, papers, and documents of every description bearing upon the matters referred to me. lam glad to say I was fortunate enough to obtain every official document and paper relating to the purchase of the Kaitangiwhenua Block, and although about thirteen years had passed since the transaction which I was directed to inquire into took place. I think your Excellency will see on referring to the evidence and exhibits that most if not all of the main facts connected with the purchase, from its commencement to its completion, have been fully brought out in the inquiry I held the inquiry at Waitotara on 26th, 27th, 29th, 30th, and 31st January, and Ist, 2nd, 3rd, Bth, and 9th February I also held a sitting at Wanganui on 3rd February to take the evidence of the Hon. Mr Bryce and Mr James Duigan. Mr Levi appeared as counsel for Mr Williams, and Mr Marshall as counsel for the Natives. Mr Eobert Campbell acted as interpreter, and Mr. W H. Eussell as shorthand reporter and secretary The evidence of the following witnesses was taken on oath Major Charles Brown, John Bryce, Henry Faulkner Christie, William Cowern, James Duigan, Thomas William Fisher, Eichard John Gill, Thomas Edward Hamerton, John Handley, Wiremu Kauika, Eirirangi Mihaka, George T Potto, Wilfred Eennell, Charles Wallace, Wahiawa, William Williams, Daniel James Williams. The Commission recites that " certain charges have been made against William Williams in connection with the purchase of the block of land known as Kaitangiwhenua, and which said charges are more particularly set forth in a petition signed by Wiremu'Kauika, and presented to the House of Eepresentatives during the session of 1893, a copy of which said petition is hereto annexed. The petition charges Mr. Williams with having " stolen " from the Natives the sum of £5,411, being balance of purchase-money of the Kaitangiwhenua Block, and asks that steps may be taken to recover the money I am directed by the Commission to " inquire into the truth or otherwise of the charges so made as aforesaid, and generally into the conduct of the said William Williams in connection with the purchase of the said Kaitangiwhenua Block, and the receipt and disposal of the purchase-money therefor, and by all lawful ways and means to examine and inquire into every matter and thing touching and concerning the premises." The accusation made by the Natives against Mr. Williams is that on the 28th December, 1880, the Government cheque for the balance of the purchase-money, £5,411, handed on that day to Uru te Angina, their chief, by Mr. Gill, who attended to complete the purchase, on behalf of the Government, at Waitotara, was given by Uru te Angina to Mr. Williams, at the request of the latter, who promised to take it to the bank at Patea, cash it, and bring back the money on the following day, that Mr Williams took the cheque away, cashed it on the morning of the 29th December, 1880, and, instead of bringing the money back according to his promise, paid it into his private banking account at the Bank of New South Wales at Patea, and afterwards misappropriated the money It appears to me that this is really the only accusation made against Mr Williams by the Natives, and it is practically with that charge alone that I propose to deal. Before stating the facts immediately connected with the handing of the cheque to Mr Williams on the 28th December, 1880, and my opinion as to his conduct in cashing it and paying the money into his private banking account, &c, as before mentioned, I think it would assist your Excellency to a better understanding of the case if I were to give a short summary or history of the various steps in the transaction leading up to the final settlement between the Natives and the Government in December, 1880. The details and particulars are so fully stated in the evidence taken on the inquiry, and the documents therein-referred to, that it will only be necessary for me to give a sketch of the main features. In the year 1878 Mr Williams was carrying on the business of a blacksmith at Patea. He had acquired a knowledge of the Maori language, and had obtained a certificate as a licensed interpreter under " The Native Land Act, 1873." In the month of May, or June, 1878, he arranged with Wiremu Kauika and several other Natives, members of the Ngarauru Tribe, to purchase from the tribe a block of land, situate between the Waitotara and Patea Bivers (see plan annexed) known as ' Kaitangiwhenua," and supposed to contain an area of 200,000 acres, or thereabouts. The terms were 2s. 6d. per acre, £200 to be paid in cash, and the balance when the land had passed through the Native Land Court. At this time the land had not passed through the Native Land Court, and, by section 87 of the Act of 1873, the agreement was " absolutely void."