G.—s

6

The first case is that of Matene te Huaki, a chief of high character and a pensioner of the New Zealand Government. This man was entitled to a sum of £42 for his share of premium on a lease of certain land called " Whakarewa," and he appears to have applied at the Land Purchase Office at Tauranga on the 18th of January, 1879, for payment of the amount. On the dates set forth in the following statement, nineteen cheques (Nos. 770 to 778 inclusive) were drawn in favour of certain Natives, but the whole of these cheques were lodged to credit of an account at the National Bank designated <; J. C. sToung's No. 2 account." This account (like Mr. Warlirick's No. .2 account at the same bank) was entirely illegal, as was tho overdraft with which it commenced, and to which I shall refer presently. The nineteen cheques referred to were charged in the cash-book as follows: — £ s. d. Remarks. f Matene to Huaki ... ... 15 0 o~] >, W. Ponetene Taria ... ... 15 0 0 a 11arete te Whanarere ... ... 15 0 0 d Ihaka te Oakahu ... ... 15 0 0 £ IraiateKapa ... ... 15 0 0 -a Tahana Karawhite ... ... 15 0 0 Wiremu Tokohitu ... ... 15 0 0 [-£195 paid on the 17th January Matahiro Timoti ... ... 15 0 0 "o , Tamati te Wharau ... ... 15 0 0 J i Pini te Manukou ... ... 15 0 0 >S Warena Mauuariki ... ... 15 0 0 g Ariha Warena ... ... 15 0 0 a Anete Nuihana ... ... 15 0 0J Tamati "Wharau ... ... 10 0 o~] 2 Iraia Tikapa ... ... 10 0 0 \ poo •-, ~ lo ,i T a TT .. 1 r> a n n r £"8 paid on the 18th January. ■g Utiku te Kongo ... ... 3 0 0 j ' W Mataia te Huaki ... ... 15 0 0J Takuiri llukiki ... ... 15 0 0 £15 paid 20th January. 20th Jan. Matene te Huaki ... ... 42 0 0 Not paid at bank. Total ... ... £290 0 0 It would appear that during Mr. Young's absence from Tauranga, Mr. Warbrick arranged with the National Bank to make payments to certain Natives, depositing with the bank unsigned cheques on Mr. Young's official account at the Bank of New Zealand for the sums advanced, and undertaking that the cheques so deposited should be signed by Mr. Young on his return. It appears by the pass-book of the National Bank account that sums to the amount of £195 were paid in this way on the 17th of January, £38 was paid on the 18th, and £1.5 on the 20th —in all, £248. The names of the Natives receiving these moneys are set forth in the office-diary (18th and 20th January), and they correspond with the first eighteen entries in the cash-book. It will be observed that the sum advanced by the bank comprised eighteen payments, and made up a total of £248, while the cheques paid into the bank by Mr. Young were nineteen in number, making up a total of £290 ; the difference representing the cheque for £42, No. 788, charged in the cash-book to Matene te Huaki, whose receipt for the amount (witnessed, as usual, by Warbrick) was forwarded by Mr. Yftung in support of his cash account. The sum of £42 thus remaining at credit of Mr. Young's No. 2 account remained intact till the 31st of March following, when the bank, in making up its half-yearly balance, debited the account with 80s. for interest on the overdraft, nnd carried down a balance to credit of £40 10s. On tho 28th of January, 1880, ten days after Mr. Young had received notice that his services would be dispensed with on the 31st, the bank (with Mr. Young's concurrence, as the manager informed me) debited the account, Mr. Young having no balance at credit of his private account, with the sum of £33 18s. 4d., being the principal and interest of a promissory n;>te given by Mr. Young to Mr. G-. Dunnett, a stock and share broker in Auckland. The balance df £G lls. Bd. was at credit of the account when I was in Tauranga, and, as I gave the manager a written notije that no further cheques of Mr. Young's on that account were to be honored, I presume it is still intact. Observing an entry by Mr. Warbrick in the office-diary under date the 20th of January, 1879, to the effect that he had " accompanied Matini te Huaki to the National Bank, who lodged his cheque in the bank," I made inquiry at the bank and found that no lodgment of £42 or any other sum had been made by Matene te Huaki or by any other person in his name. I therefore requested Mr. Matravers (then about to proceed to Ohiuemutu) to see .Matini te Huaki and inquire of him whether he had received the £42 payable to him for Whakarewa, and charged as paid on the 20th of January. On Mr. Matravers's return he informed me —somewhat, I confess, to my surprise—that Matini te Huaki acknowledged the receipt of the money. I concluded therefore that Mr. Young had paid the amount from his private funds, and had thereby adjusted tho irregular transaction in his No. 2 account. 1 have, however, learned since my return to Wellington that Matene te Huaki has not received the £42. The particulars, as supplied by Mr. Churton, the Audit Inspector, are, that Matini, wishing to place the money in tho bank, requested Mr. Warbrick to lodge it for him; that Warbrick went to the bank with him, and, after some conversation with an officer of the bank, told Matini that he had lodged the amount; and they left the bank. When there, he was asked by Mr. Matravers whether he had received the £42 payable to liirn for Whakarewa;"he replied that he had, he being at the time in the belief that the money had been lodged by Warbrick as stated, and was even then at his credit in the National Bank. Having become uneasy on the subject after Mr. Matravers's visit, he went to Tauranga, and on inquiry at the bank he found, to his surprise, that the money had nevex' been lodged, and was consequently not there,