Or.— 4,

4

Mr Williams, being a licensed interpreter, did not think it was advisable that his name should appear in the transaction, so he arranged with Mr William Cowern, of Patea, auctioneer, that if Mr Cowern would lend his name, and appear as the ostensible purchaser of the block, he (Cowern) should have a half-interest in the speculation. A deed of conveyance from Kauika and others to Mr Cowern was drawn up and signed by Kauika and several of the Natives. Mr. Williams, although interested in the transaction, acted as interpreter (See deed of 10th June, 1878.) The Natives who signed the deed therein acknowledged the receipt of the sum of £200, and on the same day, viz., 10th June, Kauika, who was looked upon as the chief vendor, made a statutory declaration, under " The Native Lands Frauds Prevention Act, 1870," that the said sum of £200 had been duly paid. This declaration was interpreted to Kauika by Mr Williams. (See statutory declaration, 10th June, 1878.) At the time this declaration was made Mr Williams knew that the £200 had not been paid—in other words, that the Native was making a false declaration. No money was paid to the Natives on the 10th June but, on 11th June, the sum of £50 was paid by Williams to Kanika. The evidence as to any further payments is exceedingly unsatisfactory Mr Williams alleges that he paid two sums to Uru te Angina on 13th June, viz., £150 and £300, but the evidence of payment is not altogether satisfactory or conclusive. Immediately after this deed was signed, Mr Williams offered to sell the block to the Government, and, after some negotiations with Mr. Sheehan, who was then Native Minister, the Government agreed to give Mr Williams £1,000 cash for the purchase as it stood, and, in addition, agreed to employ him at a salary of £400 a year and travelling-allowances to put the block through the Court. On the sth November, 1878, Mr Cowern assigned the purchase to the Government (see deed, sth November, 1878, indorsed on deed of 10th June, 1878), and on the same day a cheque for £1,000 was handed over to Mr Williams (see voucher sth November, 1878) Mr Cowern signed the deed and voucher referred to, but it was Mr W Tilliams who actually received the £1,000 cheque. Mr. Williams could not explain what became of this money There was no settlement between Mr. Cowern and Mr Williams for some time, but finally Mr Cowern took Mr Williams's promissory note for £150, and an assignment of an interest which Mr Williams was supposed to have in another block called Kerikerirua, in settlement of the Kaitangiwhenua transaction. About the end of 1878 Mr Williams took his two sons, William and Daniel, into partnership with him, and under the style of " Williams and Sons " they carried on the business of blacksmiths and coachbuilders at Patea. There was some dispute at the inquiry about this partnership. Mr Williams endeavoured to show that he was not really a member of the firm. The evidence, however, satisfied me that he was, and continued to be down to the date of his bankruptcy in July, 1881, a member of the firm of " Williams and Sons." After the deed of sth November 1878, was signed, Mr Williams, as a Government official (his title was "Land Purchase Officer"), commenced to act for the Government in connection with the completion of the purchase of the block. Up to 18th July, 1880, large sums of money, amounting in all to £5,600 odd, Kaitangiwhenua purchase-money, went through his hands. These moneys came to Mr. Williams through Major Charles Brown, who held the position of Land Purchase Commissioner at New Plymouth. The account kept by Mr. Eennell, Major Brown's clerk at New Plymouth, was produced (see cash-book, folio 230) and shows the various items. The modus operandi was this Mr. Williams would get a Native to sign a Government voucher, to be forwarded on to Major Brown, and when it was passed by the Treasury Major Brown sent Mr. Williams the money to pay over to the Natives. In August, 1879, Mr. Williams opened an "official account" in the Bank of New Zealand, Patea. (See W Williams's official account.) This account was discontinued about the end of 1879. Mr Williams was unable to give any satisfactory reason for not continuing the account. On referring to the account it will be seen that only about £1,600 of the Kaitangiwhenua purchase-money went through the account, and it will also be noticed that £740 of that amount was drawn out by Mr. Williams and paid into his private account at the Bank of New Zealand. (See Mr Williams's private bank account with the Bank of New Zealand.) During all this time—that is to say, from 1878 to the date of the final settlement between the Government and the Natives, on 28th December, 1880—Mr Williams and the firm of Williams and Sons had, apparently, numerous and extensive dealings and transactions with the Ngarauru (Kaitangiwhenua) Natives. No proper books or accounts showing these transactions were kept or produced, and Mr. Williams was unable to throw much light on them. The Natives never had any proper accounts rendered to them by Mr Williams or Williams and Sons showing these transactions, and the state of the accounts between them. The money received by Mr. Williams from Major Brown for payment to the Natives was mixed up with Mr Williams's private funds, and I found it quite impossible to get from Mr Williams any proper account of how the money received by him from Major Brown was disbursed or disposed of by him. The Natives apparently had very great confidence in Mr. Williams, and signed almost anything he put before them. The vouchers representing the £5,600 odd before referred to were all signed and sent in before the amounts represented by them were received by Mr. Williams from Major Brown. On 17th September, 1880, the Native Lands Court gave judgment, and decreed that the block should be vested in Kauika and five other Native chiefs of the Ngarauru Tribe. (See memorial of ownership, 17th September, 1880, Vol. ii., folio 46, see Gazette No. 97, 16th October, 1880, page 1504.) Wiremu Kauika and Wahiawa are the only surviving grantees , the others have died since the purchase was completed. Prior to this the Hon. Mr. Bryce., who was Native Minister, had given instructions that no further payments were to be made on Kaitangiwhenua till the title had been