I.—2a.

14

15. Where do you live, Mr. Harding?—You can- always find me in Tenui. I have a farm about eight miles from Tenui. Mr. Aemstbong's Statement continued. Mr. Armstrong : Eeferring to this licensing election, I had nothing to do with bringing out any of those candidates. My duty is that of a Eeturning Officer, and several candidates mentioned that there were a number of persons to be nominated who were shareholders in a company which held a wholesale wine and spirit license, and that they were interested in the sale of liquor. I turned up the Licensing Act of 1893, where it defines who were eligible as candidates, and I saw that anybody having any interest in the sale of liquor was not qualified to be a Licensing Commissioner. Then I ascertained that these people were shareholders, and upon these grounds alone I refused their nominations. There was no political feeling in the matter at all. If there had been any feeling in the matter it cut both ways, as Mr. Grace was being run by the prohibition party ; the other, Mr. Deller, is of the publican party. It did not matter to me who they were, when I considered that they were disqualified as shareholders, and knew that they were shareholders. In my duty as Eeturning Officer I think it was my place to see whether they were qualified or not, and that was the only ground on which I refused their nominations. The matter was afterwards turned into a political machine, and a petition was lodged against the election on the ground that I wrongfully refused these nominations. A day was fixed for the petition. I wrote to the County Council, which was the contributing body paying the expenses, and asked them if they would find a solicitor to defend the action. I had no reply from that body, and the Government would not find a solicitor; therefore I simply said I had no money as Eeturning Officer to go and defend an action for them, and declined to defend it. Mr. Bell was brofight up from Wellington in favour of the petition, and he laid it down here that if there was a brewery company of six shareholders, five out of the six could be elected to the Licensing Committee, and that they were eligible according to the present licensing laws. lam not in a position to say whether that theory is right or wrong. There was no defence, and honourable members will know a solicitor will make the most of everything he says; and the Magistrate believed him—namely, that I had wilfully gone out of my way to refuse the nominations of those candidates. I say that I did not do anything of the kind. In February I wrote to the County Council as a contributing body, told them the election was to be held, and asked them what provision they were going to make with regard to paying the expenses, at the same time stating that, as I was not a Besident Magistrate and could not frank correspondence, it was probable the election would cost a little more. The matter came before the County Council in February, but I have never yet had a reply to any communication I have sent to that body on the matter. I saw the Chairman some time afterwards, and I asked him what was going to be done. He said that the accounts would be paid as usual. 16. The Chairman.] Have you a copy of the letter to the Chairman of the County Council?—l have not. I did nothing more; but when the election was over I handed the vouchers to the different deputies as they came along, and they were sent in to the County Treasurer, who refused to pay them. I then wrote to the Chairman, and his reply was that my letter had been referred to the Treasurer for explanation. I had no further reply from the Chairman, and did not see him for a week afterwards, when I saw and asked him about it. He said, if I sent in all the vouchers they would be considered and paid. I said, as it was late on Saturday afternoon I should send them in the first thing on Monday morning; which I did. Then, instead of being paid, those accounts were tabulated and. published in newspapers all over the colony, and comments made upon the charges. The thing went on for some considerable time, and I consulted Mr. Skerrett, in Wellington, and asked him if I could sue for the whole of the expenses. He said Yes, that I could. And on his advice the case was brought into the Supreme Court for the recovery of the expenses, and I will put in the judgment of the Supreme Court. [Chief Justice's judgment (Exhibit No. 19); also paragraph (Exhibit No. 20) that appeared in the Wairarajja Leader showing the difference between expenses incurred in 1897 and those incurred in 1894.] The difference in the cost was—the Stipendiary Magistrate's expenses in 1894 were £189 9s. 2d., whilst mine in 1897 were £150 3s. 6d., the Justice Department refusing to give me a room in the Courthouse. And yet the County Council say these expenses are unreasonable, and they assert that is a part of the reason for not paying them. That is all I have to say about the Licensing Committee. With reference to the general election, I will put in a letter of Mr. Coleman Phillips's. [Exhibit No. 21.] I have explained, as far as I can, the circumstances that led to my fixing the nomination day, and that I gave due publicity to the date. My private character has been assailed, and I shal' therefore put in a number of testimonials that I have received since. [Exhibit No. 22.] Ido not know that I have anything further to say, only Mr. Phillips introduced a matter about a private transaction that he and I had some fifteen years ago. I just want to explain about that. I was putting down a sawmill at a place called Woodside. I had bought a plant, and the boilers attached to it were useless. I had to get a new boiler made in Wellington, which cost me £255. I was short of money, and I went to Mr. Phillips, and asked him if he would accept a bill of mine for £60. Mr. Phillips accepted the bill. Unfortunately for both Mr. Phillips and myself, the boiler was a little longer than it ought to have been. And just alongside the paddock there is the railway-line and a railway-siding. Well, I was putting up a sawmill, and chere was traffic going to be brought to the Eailway Department; but, for some reason unexplained, the department waited until I got my boiler on the siding, when they immediately started to take it up. 17. Did this siding lead into your bush ?—Yes. I am not prepared to say why it was taken up, but it seemed very funny. I had then to go and get another siding put down in the same place, which cost £150 Is. Bd. Then I had to clear the other side to get it put down. Through this I got into difficulties, and people with whom I had dealings were grumbling, and I handed them over the mill to get paid. I left it, and they put in a manager; but things did not go satisfactorily, and then they sold to that manager. Things were very complicated. I considered I was badly