D.—No. 1

34

PAPERS RELATIVE TO THE

(Copy.) No. 20th February, 1860. To the Manager of the Union Bank of Australia, Dunedin. Pay Self, or Bearer, Four hundred and eighty-six pounds 13s. 4d. £486 13s. 4d. (Signed) James Macandeew.

(Original.) No. Dunedin, Otago, New Zealand, 20th September, 1860. The Oriental Bank Corporation. Pay Self, or Bearer, Eight hundred and thirty-six pounds 13s. 4d. £836 13s. 4d. James Macandeew. Endorsed, James A. Cheyne.

(Copy.) No. 10th March, 1860. To the Manager of the Union Bank of Australia, Dunedin. Pat , or Bearer, Six hundred pounds, sterling. £600 (Signed) James Macanbeew and Co.

Money "Waeeant. No. 738. For £1000. Dunedin, 7th May, 1860. Service—"Works, Clutha Coal Fields. In favour of James Paterson and Co. N.B. —To this warrant was attached a receipt for £1000, dated Bth May, 1860, signed by James Paterson and Co.

MONEY WaEBANT. No. 470. For £1712. Dunedin, 25th February, 1860. Service—Half of passage money per " Gala." In favour of James Macandrew and W. H. Eeynolds, for John Gladstone and Co. N.B.—The sub-voucher is signed by Mr. Macandrew alone.

Money "Waeeant. (Corrected "Warrant.) No. 437. For £1712. Dunedin, 25th February, 1860. Service —Half of passage money per " Gala." In favour of James Macandrew and Co.

Memorandum for Attditob-Genebal. The only point in the whole matter now under inquiry which the Superintendent ia desirous of exculpating himself with regard to, is the allegation that the deficiency in the Provincial Chest, on 30th June last, was in his hands. The only testimony which can possibly implicate him is that of Mr. McGrlashan himself, and as there is no means of rebutting Mr. McG-lashan's assertion by aught but assertion, the Superintendent is desirous of proving that to a considerable extent and for a long period Mr. McGrlashan had taken use of public moneys. If this can be established the inference would be that the deficiency in June was in his hands. In order to establish this point it would be necessary to find out the balances which ought to have been in the Provincial Chest at the dates of the respective audits, and also of the balances in the hands of Mr. McGrlashan at the same dates, as Treasurer to the Eoad Board and Education Board respectively. The Superintendent would then bring proof as to sums advanced by Mr. Macandrew to Mr. McGlashan about the same dates. These amounts, with the Eoad and Education balances, might be taken as the sum which Mr. McGrlashan devoted to his own private use. In order to arrive at a satisfactory conclusion, it will be necessary to examine witnesses on oath ; as, however, that cannot be done, the Superintendent would endeavour to get proof from Mr. Morris, formerly cashier to J. Macandrew and Co., Mr. Eeynolds, formerly a partner in that firm, Mr. Jackson, of the Union Bank, and probably Mr. Edward McGrlashan, who, however, from his relationship, it might be well to dispense with. James Macandeew, 22nd January, 1861. Superintendent. It may be observed that the various memoranda passed between Mr. Macandrew and Mr. McGrlashan, were written by the former under the influence of the strictest personal friendship, and intense desire to prevent Mr. McG-lashan's exposure and consequent ruin. J. M.

Sib,— I have to request that you will call for Mr. Jackson, manager of the Union Bank, to prove that he discounted me bills for Mr. McG-lashan's accommodation, which bills were retired by the acceptor; and that I exhibited to Mr. Jackson documents showing that I held stock of Mr. McG-lashan's as collateral security. Also that you will send for Mr. Douglas, bookkeeper to J. M. and Co., to prove that Mr. McGlashan had received various payments from me for the accommodation of the borrower, which sums were repaid by him.