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Gisborne Standard and Cook County Gazette, Volume V, Issue 633, 14 July 1891, Page 3

It appears to me, having read the correspondence in connection with that loan, that your office is asked quietly to hold its tongue as against the interests of another Government office, and that, too, a tax-gathering office—tbe Property-tax Office. If you look through the correspondence you will see that the writer hopes that what is stated to you in the correspondence as his difference of values will be by you kept a secret ? [No answer.] Of course, if a man values his property at £23,000, and obtains a loan of £lO,OOO, what Mr Larnach maintains is, that it ought to be the business of this department to at once give notice that they are lending a large sum ofmoney, and that there is a wide discrepancy between the man’s valuation and your valuation and the property-tax valuation, which ougut to be exposed ? [No answer.] That is why the property-tax is so unequally borne by the people of the colony—because some meh seem to take advantage of their position, and hide the real value of their properties ? Mr Hamerton : I am not quite clear that I should be justified in reporting that. You are supposed to carry on your business with secrecy, but the question is, how far, in a case like this one, that secrecy should be observed. For here is a department that may be said to be a sister one, running in the interests of the colony in the same race ?

[No answer.] Aye, it is more than that. One of the Board controlling this department is the head of the other department that ought to have the information. Therefore there can be no secrecy. The argument that secrecy should be observed in the transaction cannotrpoesibly exist in that case, because the bead of that Other department is your controlling power 1 If be made use of the information he got In my office, Hehaa a right to make-all possible inquiries, and, as a matter of fact, does that. How can you carelessly shut your eyes to the fact that you frequentlyhave seen clearly, or should have done, that the property-tax is not receiving what it ought to do out of many estates, and certainly not out of this man’s estate. You see the Government of the country is being done out of a large amount of direct taxes ?

exist in that case, because the bead of that Other department is your controlling powet 1 If be made use of the information he got In my office, He has a right to make-all possible inquiries, and, as a matter of fact, does that. How can you carelessly shut your eyes to the fact that you frequently have seen clearly, or should have done, that the property-tax is not receiving what it ought to do out of many estates, and certainly not out of this man’s estate. You see the Government of the country is being done out of a large amount of direct taxes ? I should be placed in an unfortunate position, because if I am to act as spy on those who apply to me in all confidence for a loan I should never go on. The position would be so unbearable it never could be tolerated. Then, are we to understand that here you have to hold your tongue, while you know that the country is being wronged. You become aware of it as a public officer, and you are to sanction it and approve it by bolding your tongue ? Perfectly true, but I do not see a remedy for it. Then this case came under our notice. I do not know whether there are any more similar ? Lots of them. There is scarcely a case in which the property-tax is equal to or higher than private valuation.

I should be placed in an unfortunate position, because if I am to act as spy on those who apply to me in all confidence for a loan I should never go on. The position would be so unbearable it never could be tolerated.

Then, are we to understand that here you have to hold your tongue, while you know that the country is being wronged. You become aware of it as a public officer, and you are to sanction it and approve it by holding your tongue ? Perfectly true, but I do not see a remedy for it.

Mr Rees: When the Gisborne agent was defeated for the Harbor Board by public vote the late Government put him upon the Harbor Board as their nominee. That is a very unusual procedure, to put a defeated candidate upon the Board, unless there was some special object in it ?-» There was none in this case, except that he was a political supporter of the Government. Then, the late Government did reward their supporters?— . They made Captain Chrisp a Justice of the Peace just before they went out. I may gafely state that it has been a very sore point with the people up in Gisborne that they could not avail themselves of the Trust Office. Mr De Castro, farther examined, was asked : Will you tell me how long the packet of lace has been in your drawer! It has been in my possession since March last year. In fact, before the jewellery was sent to the suction sale ? Yes. Long before ? Yes. Now, Mr De Castro, has that lace been out of the Public Trust Office since it came in ! (A pause.) No; it has been in the drawer. I wish you to answer me ; have you never taken this lace out of the Public Trust Office since you first received it in the officef (A pause.) Why do you hesitate ? I did take it out once. Where did you take it to ? I took it to my bouse, and asked what the value of it was. How long was it st your house ? Some time ago ; I cannot tell now. Will you tell me that you did not take it to your house many months ago ? Yes, some months ago. Did you not bring that Isce down from your own house yesterday morning 1 Why hesitate ? Yes, I brought it down from my own house yesterday morning. It has been there some months. Then the lace was not in your drawer when you told us it was? I have been ill, and had not an opportunity to bring it "back again. Will you swear you have not had it at your own house for six months ? I will not swear. What did you take it to your own house or! ■To know what the value of it was. Have yon an expert at your own house ? Because the ladies know the value. Haye you taken anything else to your own house to ascertain the value ? [No answer.] Are you sure that you never took or sent that missing bracelet to your house ? Mg my sacred oath, I am perfectly certain I know nothing of it If the Commissioners had never made the searching inquiry they have in respect of this lace, would ft be still at your house ? No j of course, I am not officially. back pere. I shou’d bring it back as soon as I Barna back. Bui there Is no record of this lace in this private, score’, record book of yours, It is, I presume, among the *' etc’.” ! “ Box of Jewellery, etc.” Then the lace was the 11 etc." 1 Yes. Then you take some of the “ etc." to your Own house { - '' No ; it is an exceptional case. Then you did call this “etc,”? Mr Hamerton, recalled, was asked if he did not oonaider the manner in which Mrs Dallon’a ion had been treated absolutely dishonest, He replied, No, I cannot think it. The Chairman replied, Well I do ; I oall . it dishonest, and that is my opinion of it, Then, Mr Hamerton, let me put this very seriously to you l As a man arrived at a fair age in life, and of considerable experiencs, do you think, when the public dome to know 6t these trlnsaetiofis, that such transaotion

will be likely to inspire confidence in the Public Trust Office ? No. Since I first saw you I have .thought seriously over it, and I cannot think it will inspire confidence. Do you not think they are likely to do a great deal of harm ? I think it must do so. The Chairman : If you had a batter knowledge of how to keep your business together, and how to run a business of this kind as it ought to be run, you would not have found the difficulty you are now finding ? Mr Hamerton : Possibly so. The system adopted by this office is exactly the same as that adopted by the Government offices. The Chairman : Then if that be so, I say, God help them I"