G.—s

10

employed to purchase compensation awards, including the above, for the Crown. Owing to this and other irregularities, a Royal Commission was appointed to inquire into these land transactions. It was stated that Worgan had first negotiated the purchase for the Crown, and that he had then advised the vendors to sell to Nicholson at an advanced price. Before the Commission sat I was informed by Mere and Erueti that they had sold the land to Worgan for Nicholson ; that the whole of the money they had received was £400, and that £600 was still owing to them. When summoned before the Commissioner, Colonel Russell, in 1872, they were examined carefully on oath as to the transaction in question. They both stated that they had sold the land to Nicholson through Worgan, and that they had received the whole of the payment. As representing the Crown on the occasion, I examined them very closely and separately as to the payment of the purchase-money, but they both asserted most positively that they had received the whole amount; that it was paid to them on two several occasions, the first payment being that of £400, and the rest on a later occasion. They said they could not remember dates. Shortly after the inquiry was over there was a great noise and disturbance outside the Courthouse. I was then informed that the noise was caused by these old people asking Worgan for the balance of their money — £600. It appears that Wirihana Puna, a nephew of Mere and Erueti, had been associated with Worgan in the transaction, and that these two bad persuaded the old people that if they told the truth, as to the balance of £600 being still owing to them, the result would be that both Wirihana and Worgan would be sent to prison. Worgan, moreover, promised that if they swore they had received the whole of the purchase-money, he would hand over the unpaid balance as soon as they came out of Court. When, however, they asked for their money he said, " Why, you have received the whole of the money, and sworn to it before the Commissioner." My opinion is that the facts are pretty much as stated, and Mere Awatea and Erueti te Pewa received £400 for their 800 acres, and no more. James Booth, Resident Magistrate.

Sub-Enclosure 3 to Enclosure in No. 2. Exteact from Evidence of Mccc Awatea and Eetjeti te Pewa, 12th November, 1872. Mere Awatea, examined by Mr. Booth, deposed on oath: — Did you have an award of 400 acres of land by Compensation Court, between Whenuakura and Patea Eivers ?—Yes. Did you sell that land ? —I did not sell that land. Who sold the land ? Or is it sold ?—lt is sold. By whom ? —lt was sold by Wirihana. Do you know to whom the land was sold ?—lt was sold to an European; Ido not know to whom. Do you know what sum of money the 400 acres of land was sold for?—l refer to the land of my brother's as well as myself, was sold for £1,000. Did you sign the deed when the land was sold? —I did. Was the £1,000 paid to yourself and your brother when the deed was signed? —It was paid into my hands. In what form was the money paid ; notes or gold ?—As far as I can remember it was paid in notes. How much did you receive as your portion ? —Wirihana took from the town £200. I received a further instalment of £200 in a publichouse, from Wirihana, Major Kemp being present. Was this money all for yourself?— This money was for both of us. Have you received any more than the £400 ? —I do not remember when I received any more money ; but I received £400 more since. Does that altogether make £800 that you have accounted for ? —I think that is correct; but Ido not count. I received £200 from Wirihana at Aratnoho, and £200 in a publichouse in town, and £400, also in the same publichouse. All the money was paid me by Wirihana. When did you receive the last instalment of £400?— About three months ago. What is the relationship between Wirihana and yourself ?—Wirihana is my nephew Was it your wish that Wirihana should have the disposal of your money?— Yes. Are you aware the land sold for £200 more than you received ?—1 do not know What do you suppose the land was sold for ? —I thought it was sold for £1,500. Where do you think the remainder of the money is ?—ln Wirihana's hands for me. Erueti te Pewa, examined by Mr. Booth, deposed on oath : — How much money have you received for land sold by Wirihana?—£l,ooo. How much land did you sell for that money ? —B6O acres. Are you sure there was 860 acres ?—Yes. When did you receive the first instalment; and how much did you get?—l received £200, at Aramoho. Did you receive a second £200 in a publichouse in town ?—Yes. Have you since received £400; when, and where ? —I received £400 in town, at an hotel, from Wirihana. Do you know how many Sundays have since passed? —About two weeks ago; about four Sundays ago. Have you received any more money than what you have accounted for?— The sums I have mentioned are the only sums I have received. Do you know where the balance is ?—ln Wirihana's hands.