D.—2

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Agent-General, and who were waiting for re-employment, has been so large, that it was only rarely and under exceptional circumstances there were any vacancies for surgeons not already in the service. In the case of the above-mentioned short ships, and also in the case of the 'Fernglen' and 'Northampton,' which sailed last December, there were no surgeons who had been already employed ready to accept the appointments, and surgeons never before employed were engaged, but neither of them were introduced to the office by Mr. Moore. With regard to the system adopted in making appointments since I have been in the office, it has been that of rotation—namely, according to the order in which the returning surgeons reported themselves ready for re-employment. As to the special case of Dr. Russell, he had already received his appointment to the 'Hannibal' when I came to England, but I saw him before he went by that vessel, and he made no representation to me as to his having been unduly kept waiting. When he returned to England in the latter part of 1875,1 had two or three interviews with him, and I was anxious to get him an appointment, as he appeared to me to be a valuable officer, though somewhat hypercritical, and I felt inclined to recommend a departure from the rule of rotation in his favour; but this was not done, and he was appointed so soon as his right turn came. I may say, in conclusion, that I have never seen anything that would lead me to believe that any of the officers of this department were receiving any payment in the shape of commission or otherwise from Mr. Moore." —We have seen Mr. Moore, and he stated he has a large business in supplying ships with drugs and medical stores, and in consequence is enabled to obtain good information as to surgeons employed in passenger ships, and that it is part of his business to procure employment for surgeons in such ships, receiving from them a commission. That he incurs considerable yearly expense in advertising this part of his business, and is therefore obliged to charge accordingly. That for some years past he recommended medical officers to the New Zealand Government for their emigrant ships, and he believes that the late Agent-General, Dr. Featherston, relied a great deal on the information he was able to obtain respecting the surgeons he recommended. That he thought Dr. Featherston had the more confidence in him from the fact of his knowing Mr. Moore's uncle, who was the Chief Justice in New Zealand. That he occasionally called at the office and learnt from time to time what surgeons would be wanted, and it has happened that he has had a telegram or message stating that a surgeon who had been appointed could not sail, and asking if he could recommend any other. That he did not make the appointments, but only recommended those he thought eligible, and the Agent-General had the testimonials for consideration. That he was aware of the statement made to the Government by Dr. Nesbitt, and he denied that he had ever made any such statement to him as he had alleged, or said anything to him which would justify him in making the statement contained in his letter. We then informed him of the statement made by Dr. Russell in his letter to the Hon. the Minister for Emigration, dated 21st September, 1876, in which he states that Mr. Moore desired payment of the fee he was to pay him ere he sailed, on the representation that he, Mr. Moore, had to share it at No. 7. Mr. Moore positively denied that he had made any such statement to Dr. Russell, or said anything to him which would justify him in making such a statement. He explained that Mr. Russell told him that he had applied direct to the Agent-General's office for employment, but had not obtained it; and when he found that on Mr. Moore's application he had been appointed, he tried to get Mr. Moore to admit that he divided his fees with the Agent-General's office. That he felt annoyed at this unjust suspicion, and declined to give him any information, but told him he might suspect what he pleased and draw any inferences he thought fit. He positively asserted that ho had never divided his fees with or paid any money to any one in the Agent-General's office. He said he did not know whether Mr. Ottywell would like his mentioning what had happened with him, but he thought he could not object to his doing so. It was that, having had to see him on several occasions as to the vacancies, he wished to recognize his courtesy, and therefore, on a Christmas Day, sent him a box of cigars, which Mr. Ottywell returned, stating that he made it a rule not to receive a present of any kind from any one with whom he had to do business. Mr. Moore stated that he felt annoyed at this, as it might seem to have raised a suspicion that in making this simple present he was seeking to use undue or improper influence. He concluded by telling us that he was quite prepared to verify what he had stated by oath. Being desirous to report to you without a possibility of dispute what Mr. Moore had said to us, we sent him a statement of the conversation which passed, and asked him to see that it was correct, and, if he had no objection to do so, to sign it. He returned to us with a letter, of which the following is a copy:— " 24, St. Mary Axe, Leadenhall Street, London, " Dear Sir, — " 16th January, 1877. " I herewith beg to return the statement you sent me, as I decline to sign anything of the sort. What I told you verbally was that the gentlemen whom I engaged some surgeons with occasionally, were the late Dr. Featherston, Mr. Ottywell, Mr. Carter, and once with Mr. Kennaway, or a name somewhat similar, and that I had never been asked for, or had I offered a fee in any way or any one with whom I fixed a surgeon. I consider that my connection with the New Zealand Government was through the introduction of my uncle, the late Chief Justice Moore, to Dr. Featherston, and that I did not require to fee any one, even had I been asked for such a thing. I certainly never told Mr. Nesbitt I divided my fee ; in fact, he does not say I did—he imagined it; and as to Dr. Russell, he probably concluded the same, as he did not manage to obtain a ship for himself, as he was not known to Dr. Featherston, and I was. 1 enclose a list of surgeons 1 introduced to the New Zealand Government ; and trusting I may not be troubled any more with this affair, " I have, &c, " J. Mackrell, Esq., 21 Cannon Street." " F. Moore. We do not see that it is possible to throw any further light upon the matter, as we do not see that any proceedings can be taken in which Mr. Moore or any other person could be examined as a witness, or in which an examination of his books could be obtained. If the name of any individual in the office had been mentioned, proceedings might have been taken by the individual referred to for slander, but no name having been mentioned, we do not see that any one can bring an action. It may perhaps, we think, be desirable to take the particular cases of Dr. Nesbitt and Dr. Russell, upon whose reports the Government have directed the inquiry into this matter to be made, and see what