PAPERS RELATIVE TO IMPERIAL CLAIMS

B.—No. sa,

22

pp. 1865, A. No. 4a., No. 14, Enclosure.

Appendix B. Accototastt's Eepoet, No. 1. Sib, — Colonial Commissioner's Office, "Wellington, Bth January, 1867. In reference to the Imperial account against the Colony of New Zealand, which was placed in my hands for examination on the Oth October last, I have the honor to report — 1. That the Account rendered by the Imperial Commissioner is professedly incomplete. 2. That the total amount of the Debit side of the account, as stated by the Commissary- General, is £858,380 2s. 9d., exclusive of Capitation charge for 1865-6, and also exclusive of any charge for interest. 3. The items on the Credit side of the account amount to £16,248 Bs. 7d., inclusive of £8,333 6s. Bd. being five months' interest on the Colonial payment of £500,000 in Four per cent. Debentures. 4. With the exception of the charges for rations, I have carefully examined each item in this account, as well as in the subsidiary account of expenditure on the Great South Road, amounting to £35,369 18s. 7d., comparing the vouchers with the charges, and noting the authorities produced for the expenditure in every case. 5. The examination of the Ration Account, amounting in the aggregate to the sum of £276,960 Os. Bd., is in progress, and the verification thereof, involving minute computations, comprised in some thousands of vouchers, is necessarily a work of time. The vouchers under this head, for 1860, being in an imperfect state, cannot be proceeded with until further information is received from the Commissariat; and for the period from January, 1861, to September, 1862, no vouchers have been furnished. 6. Certain other missing vouchers and authorities have been applied for, but up to this date have only partially been supplied. A portion were received on the 17th ultimo, and the remainder were promised as soon as they could be traced. 7. The report of the Waikato Transport Commissioners has recently been handed to me, and has been minutely examined. The cost of this service to the 31st December, 1864, according to the Commissioners' account,after deducting certain sumsfor freight and passage moneyreceivod,and the valuation of property remaining afloat and on shore amounts to £65,938 4s. 7d.; the total tonnago carried during the same period on Imperial and Colonial account was 9031 tons 8 cwt. 2 qrs. '24 lbs., equal to £7 6s. per ton. On these data the amount chargeable to the Commissariatfor .1864 is £59,809 9s. 6|d., and for the further period, from the Ist January to the 31st July, 1865, at the same rate per ton, is £16,145 lls. lid.; together, £75,955 Is. s£d. At this date payment for this service was commuted for a monthly subsidy of £750, which has been duly received up to the month of May last inclusive. 8. But during the examination of this account, the omission of very considerable sums strictly chargeable to the service has been discovered. A few of these omissions are items rejected by the Commissioners probably from want of information, and a larger proportion consists of expenditure which has apparently been overlooked. Amongst the omitted items are the whole expense of clearing the Waikato River, amounting to £1,290 10s. 10d., without which the navigation of the river was almost impracticable; and a proportion of the cost and working expenses of the Colonial steamer " Prince Alfred," which vessel was chiefly employed between Onehunga and Port Waikato, feeding the River service, and carrying large quantities of stores on Imperial account. A supplementary statement, embracing these items, is being prepared. 9. I have further examined the proceedings, and scheduled the awards of Mr. Commissioner Beckham, on the military claims for compensation at Taranaki. ,The amount paid by the Colony under this head is £3854 17s. 3d. 10. Reverting to the Imperial account, I would direct your attention to the items of " Extraordinary expenditure," under the heads " working pay " and " material," in the general account, and working pay (and special transport) Royal Artillery, in the Great South Road account, the former amounting to £4779 9s. Bd., and the latter to £757 12s. On referring to the Commissary-General's Memorandum, dated 3rd January, 1862, and attached to the Great South Road account, and to his letter to His Excellency the Governor, dated October 31, 1865, these items would appear to have been inadvertently admitted into the Imperial claim. 11. No further accounts have been furnished by the Imperial Commissioner, and I trust that, very shortly after the receipt from Auckland of the information and vouchers called for, I shall be able to present my final Report on the account now in my hands. 12. For your information in the meantime I have compiled the documents noted below, which I now present, and I have, &c, The Honorable Major Richardson, B. Smith, Colonial Commissioner. Accountant to Colonial Commissioner.

Schedule. 1. Copy of Debit Side of Imperial Account, with. Authorities and Vouchers noted. 2. Abstract of the same. 3. Epitome of the same, showing the totals under each head. 4. Abstract of the Great South Road Account. 5. Epitome of the same (attached to No. 3). 6. Copies and Memoranda of Authorities produced in support of the Account. 7. Military Claims, Taranaki. N.B.—The documents referred to in the Schedule are kept for reference among the records. J. Eichaedson, Colonial Commissioner.