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1886. NEW ZEALAND.

OTAGO HARBOUR BOARD ACCOUNTS (REPORT BY THE CONTROLLER AND AUDITOR-GENERAL ON).

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1. J. Macandbew, Esq., M.H.E., to His Excellency the Governor. Sir,— Wellington, 18th September, 1885. Herewith I have the honour to transmit to your Excellency a petition from the members of a committee, appointed at a public meeting in Port Chalmers, on the subject of alleged breach of trust on the part of the Otago Harbour Board. The petition fully explains the position of the matter, and I would venture most respectfully to express a hope that your Excellency may be pleased, in the exercise of the function conferred on you by " The Harbours Act, 1878," to cause a special audit to be made with a view of substantiating the facts of the case, and thereafter of taking such action as may be necessary to restrain the Harbour Board from further abusing its trust. I may add that the petitioners, in addressing your Excellency, are acting upon the opinion of counsel of high legal standing in Dunedin, who advise that this is the proper course to adopt. I have, &c, His Excellency the Governor of New Zealand. J. Macandrew.

Enclosure in No. 1. Petition. To His Excellency Sir William Francis Drumrnond Jervois, Lieutenant-General in Her Majesty's Army, Knight Grand Cross of the Most Distinguished Order of Saint Michael and Saint George, Companion of the Most Honourable Order of the Bath, Governor and Commander-in-Chief in and over Her Majesty's Colony of New Zealand and its Dependencies, and Vice-Admiral of the same, in Council. The Petition of the Undersigned Eesidents of Pobt Chalmees. Humbly Showeth, — That, at a public meeting held on the eighth day of September last, His Worship the Mayor presiding, we were appointed a committee to inquire into the action of the Otago Harbour Board's expenditure of the loan borrowed under authority of " The Otago Harbour Board Further Empowering Act, 1882," and the result of our investigation is as under, that is to say, — That, by " The Otago Harbour Board Further Empowering Act, 1882," the Otago Harbour Board was authorized to raise and borrow a sum not exceeding two hundred thousand pounds, and it was provided that out of the sum so raised not less than one-half should be expended on harbour works undertaken for the improvement of the bar at Otago Heads, and for the general improvement of the Lower Harbour. That the net sum realized by the floating of the loan thus authorized was one hundred and eighty-eight thousand nine hundred and eighty-three pounds three shillings and ninepence (£188,983 3s. 9d.).