PAPERS RELATIVE TO THE

D.—No. 1

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second moiety for the passage money of immigrants by the ship " Henrietta." The retired bill was not found among the documents belonging to Messrs. Crawford and Auld's accounts, nor among the vouchers of the Provincial Accounts. It thus appears that twenty-six days after the final payment in the Colony of the claims of the " Henrietta," the Superintendent draws bills purporting to be on account of the "Henrietta," in favour of parties who had no claim on the Provincial Treasury. There is then no question that the revenues of the Province have been twice charged with the second moiety of the passage money of the " Henrietta," also it is equally clear that some party has secured a pecuniary advantage of £1012 14s. 5d., at the expense of the Provincial Treasury. The question arises, how did it happen, if the bill was bonafide drawn on account of the " Henrietta," they were not made payable to the owners of that vessel. There seems only one answer: the money was not due to them. The pretence that they were drawn on account of the " Henrietta," was the expedient under which possession of public moneys was wrongfully obtained. The next points for investigation would have been to trace the retired bills and vouchers ; to determine whether the Provincial Treasury was informed of the making of these bills, or whether they were drawn secretly, and whether the Agents were advised of their issue by any letter recorded in the Superintendent's office : all important points, when judging the intent of the party who made the bills. I have, &c, Charles Knight, The Hon. E. "W. Stafford, "Wellington. Commissioner.

Sub-Enclosure 1 to Enclosure 2 in No. 19. Extract from Account Current of James Crawford and John Auld, Agents in Scotland for Provincial Government of Otago, New Zealand, from 31st December, 1859, to 30th June, IS6O. (67-509.) Bth June, IS6O. Remitted Messrs. P. Henderson and Co., half passage money for Emigrants by these ships, viz., " Henrietta," 158-J adults, at £15, one-half, £1188 15s. ' " Robert Henderson," 146J adults, at £15, one-half, £1098 15s.

Extract from cash-book of Provincial Treasurer, (folio 162). 28th September, 1860. Immigration, Andrew Cumming, master " Henrietta," half passage of 151 adults, at £1132 10s.

Extract from Account Current of James Crawfoed and Joiin Auld, Agents in Scotland for Provincial Government of Otago, New Zealand, from 31st December, 1860, to 31st March, 1861. PAYMENTS OP MOIETY OP PASSAGE MONEY OP EMIGRANTS. " Henrietta," 18th February, IS6I. Retired Superintendent's bill, dated 24th October, 1860, at thirty days' sight, in favour of Messrs. E. P. and C. R. Eayner, Sunderland, being second moiety for this ship, £1012 14s. sd.

Extract from Provincial Treasurer's Journal, (folio 239). IS6I. Sundries Dr. to Crawford and Auld, August 9th. Defalcations by James Macandrew: Amount of bills retired favour of Messrs. Eayner, Sunderland, purporting to be for second moiety of passage money per " Henrietta," but which had been previously paid, £1012 14s. sd.

Extract from Account Current of the Oriental Bank Corporation, Cr. By " 1417," £1132 10s.

Sub-Enclosure 2 to Enclosure 2 in No. 19. Copy of a Letter from the Superintendent, Otago, to Dr. Knigut. Sir, — Superintendent's Office, Dunedin, 15th March, 1867. In reply to your letter of the 15th instant, enclosing copy of your " instructions from Mr. Stafford for the purpose of continuing the inquiry into the Public Accounts of the Province of Otago," I have the honor to state that the inquiry in question was instituted at the instigation of the Provincial Council of Otago, and that unless that body desires its resumption the Provincial Government must decline any interference on the part of the General Government with the Accounts of the Province. I have, &c, James Macandrew, Charles Knight, Esq., Auditor-General. Superintendent.

Sub-Enclosure 3 to Enclosure 2 in No. 19. Copy of a Letter from Dr. Knight to the Superintendent, Otago. (67,809.) Sib,— Dunedin, 16th March, 1867. I have the honor to acknowledge the receipt of your letter of the 15th instant, which reached me to-day ; and, in accordance with the views of the Provincial Government, I have at once closed my inquiries into the Public Accounts of the Province.