I.—DA

With resnect to Conical Hills, the evidence clearly shows that the purchase '-'... . .'-: a: the time, and could not have been effected without beginning the whole negotiations de novo. The offer was to exchange, and there was no statutory power to exchange. The Board's recommendation was to exchange the whole or purchase a portion, whereas there was no specific offer to sell the whole and no offer whatever to sell less than the whole. Moreover, there were not funds sufficient to purchase the portion recommended, still less to purchase the whole. Mr. Scobie Mackenzie dwelt strongly on the fact that the correspondence between Mr. Douglas and Mr. Eitchie was not produced. The explanation offered was that it consisted of letters and telegrams between uncle and nephew, and was therefore not preserved. With respect to a telegram from Mr. Eitchie to Mr. Barron which was not on the file, the Committee accept Mr. Barron's explanation, that unimportant papers are not always filed; and, in this instance, as the telegram was sent long after the purchase was concluded, it cannot have much bearing on the matter. Throughout the whole inquiry nothing has at any time been adduced to show that the Minister in any way departed from the strict line of his official duty —and, indeed, he appears to have had very little to do with the purchase except signing the ordinary official papers. Finally, and as the result of as exhaustive an inquiry as they could make, the committee find that there was no ground for the grave charges made by Mr. Scobie Mackenzie, and that neither the Minister nor any member of the Lands and Survey Department or of the Board of Land Purchase Commissioners is in any way affected either as to integrity or capacity. The Committee feel it their duty to refer to one other point :— In the course of his evidence, Mr. Scobie Mackenzie said that neither in his speech (quoted above) nor at any other time did he impute corruption to. the Minister, and that so far as he knew no inference of corruption was ever drawn from his speech or his subsequent correspondence in the Otago Daily Times : further, that he was not responsible for the inquiry, and was merely there because the Committee had invited hirn. The Committee regret that they cannot agree with him. In their opinion, no reasonable man can read the speech without drawing the inference that the speaker is intending a charge of corruption. The effect of the preliminary disclaimer is merely to put the charges in the form of innuendo instead of direct statement, and to serve as a loophole to escape the responsibility of having to prove them. There was ample evidence before the Committee that, as a matter of fact, the inference was drawn, and that Mr. Scobie Mackenzie knew it and countenanced it. They are further of opinion that charges of corruption, if made at all, should be made plainly and specifically instead of by innuendo and suggestion, and that the person who makes them should when challenged either-prove them or withdraw thern. Mr. Scobie Mackenzie has done neither. E. Thompson, Chairman.

MINUTES OF PROCEEDINGS.

Wednesday, 15th August, 1894. The Committee met pursuant to notice. Present : Mr. Thompson (Chairman), Mr. Duncan, Mr. Hall, Mr. Hogg, Mr. T. Mackenzie, Mr. Mackintosh, Hon. Mr. McKenzie, Mr. Mills. The minutes of the previous meeting were read and confirmed. Pomahaka Estate Purchase hiquiry. The Order of Eeference having been read by the Clerk, Besolved, That the Surveyor-General and Dr. Fitchett, Assistant Law Officer, be asked to attend on Friday next, the 17th instant. Dissolved, That the Clerk do write to Mr. M. J. Scobie Mackenzie, and to editor of the Otago Daily Times, Dunedin, inviting them, if they have evidence to offer, to be present at an early date at the inquiry, and asking them for the names and addresses of any witnesses whom they wish to bring forward in support of the said allegations ; the expenses of these witnesses to be paid, if summoned, by the Committee. Besolved, That Mr. Maitland, Chief Commissioner of Crown Lands, Dunedin; Mr. Adams, Chief Surveyor, Dunedin; and Mr. William Dallas, Balclutha, be also invited, by notice, to appear at the inquiry. Further consideration postponed till Friday, 17th instant, at 11 a.m.

Tuesday, 4th September, 1894. The Committee met pursuant to notice. Present: Mr. Thompson (Chairman), Mr. Duncan, Mr. Green, Mr. Hall, Mr. T. Mackenzie, Mr. Mackintosh, Hon. Mr. McKenzie, Mr. Mills, Hon. Sir E. Stout. The minutes of the previous meeting were read and confirmed. Dr. Fitchett, Acting Assistant Crown Law Officer, was present as representing the department. The Clerk read the correspondence and telegrams which had passed between him, on behalf of the Committee, and Mr. Scobie Mackenzie and the editor and the manager of the Otago Daily Times.

III