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1. Do you speak from personal knowledge or from any records of the Hospital Board ? —I have personally seen the books of the medical officer last evening at Tereora, not at the Hospital Board. All the Board knows that 210 visits have been free, and the same as to the seven free indoor patients. 2. There were 372 attendances ? —We understood by our arrangement with Dr. G. Craig. There was no scale of charges for payment of attendances on outdoor patients. 3. Then it was left to Dr. Craig to charge what he thought fit to patients not treated under Hospital orders ?— Yes. 4. And he was under no obligation to account for what he received ?—Not for the out-door paying patients. 5. Then who could tell whether a patient was a hospital or a private patient?—By the hour at which that patient presented himself. 6. Then a patient was a hospital patient if he came to the hospital ?—He might be a private patient. I prefer the question be put to Dr. Craig. 7. Can you tell me the number of hospital patients from Ist July to 30th November?—No; there is no record. Mr. Moss says that the information received at this inquiry, though giving him all the matter he requires, will not in his view justify his passing for payment the monthly proportion of £180; that he requires to have the information given formally by the Board to him. 8. I understand you to say that you do not wish to call into question the arrangements of the Board, however wrong you may think them ?—No ; I do not. 9. You have known Mr. Scard for some time?— Three years. Dr. G. Craig: This agreement was under certain rules which have not yet been submitted. The agreement amounts to that, for £180 a year, I, under these rules, provide suitable hospital treatment to all patients bearing a free order from any member of the Board. That I am entitled to private practice under this agreement is quite understood by the Board, and any one looking at the rules laid down for my guidance can see that I am entitled to private practice. AH patients coming to me as hospital doctor I have considered as hospital patients. As a matter of fact, very few free orders have been issued by the Board, but the patients that have been treated free are considerable. At the time of my quarterly report the Board were aware of the fact that all patients had been considered as hospital patients. The sum for the hospital is so ridiculously small that money had to be imported constantly from the private practice and devoted to the maintenance of the hospital. Had I not liberty to practise privately Mr. Moss, examined by Dr. Craig: Were public tenders called for the additions to the hospitals ?—No. The work was done by Mr. Hy. Nicholas, a builder, who was also employed as Government Interpreter. Mr. Harding (by Dr. Craig) : I am a builder, and member of the Hospital Board. I have been through the hospital, and in my opinion the additions could have been done for £109 17s. 6d. This estimate was made three months ago, at the request of the doctor. The main building was cheap at £100. Mr. F. Goodwin stated: lam chairman of the Hospital Board. I told Mr. Gelling I would not ask the doctor, but would place the questions before the Board next month. The Board received a letter from Mr. Moss, in which it was stated : " On behalf of the Hospital Board I agree to fill in the voucher as required both for November and December." Mr. Moss states that he does not think an addition of 2 per cent, is unnecessary and unwise, and has not communicated that he will not approve of such if passed, and has not seat such a message through Mr. Nicholas to Parliament. "If I found a general feeling in favour of it by Europeans and natives I would approve." Far. 13, relating to collection of harbour dues: We think Mr. Moss should have seen that safe moorings were laid down either by the Federal Government or Earotongan Council. Mr. Kohn states that each vessel has to pay $4. We think that the harbour dues should be increased, so that safe moorings may be laid down. In March, 1896, correspondence ensued. Mr. Moss: Mr. Kohn pays a considerable sum, about £10. There are moorings laid down by private persons. Even if I had been asked, I should not have asked the Ariki to do such a thing, to incur the expense or undertake the responsibility. Mr, Kohn may have spoken to me about it. Ido not think the present dues come to more than £50. Par. 14: Uncertificated Masters: A native schooner of about 100 tons left Rarotonga for Penrhyn, with a native captain and sixteen hands or passengers. They fetched the Union Group, 800 miles from Penrhyn. Eventually went to Penrhyn, and on return to Rarotonga fetched 140 miles to leeward of Rarotonga. Met an English vessel, who noticed his signal of distress, and provided him with food and water, and gave him the right course for Rarotonga. This voyage took between seven and eight months ; ordinary trip is six or seven weeks. I believe there is no law against employing certificated masters, and no law for granting certificates to masters. We have not taken steps to get such a law passed. Mr. Moss said : Such a law would be impracticable and premature, to require native vessels to carry certificated masters. The example given by Mr. Kohn was due to an accident: by other causes than an incompetent captain. Mr. Gamier is shipping master. I do not think the Rarotongan Council would pass such an Act, because it would kill their trade. I would certainly not oppose it. Par. 15 : Local Laws :I do not refer to new laws, but to the old laws passed before Mr. Moss came. [Letter put in dealing with the Mangaia.] Produce is prohibited from being sold to European traders, while members of the local Government are permitted to buy that produce from the natives. Natives have been fined during the prohibited period for selling to Europeans. The local Governments in several of the islands have made laws to-day by holding a meeting of the Government to suit certain purposes and repealing it a few days after. The British Resident has made only three visits to these islands to see how the local Governments are carried on. There have been many complaints which ended in smoke. I would not approve of taking away the power of legislation from the natives. Our complaint is that the British Resident has failed to get the local Governments to alter these local laws. I believe that if Mr. Moss would ask the natives they would make new laws altering the objectionable laws. Can you say that the merchants have endeavoured to get the old laws altered? — I cannot say that any approach has been made to Mr. Moss on the subject. Mr. Moss : No laws have been pointed out to me which are injurious to trade. Mr. Kohn, examined by Mr. Moss: Are you aware of a law made at Mangaia by which every buyer from a trader had to be accompanied by a policeman to see that he was not cheated by the trader ; and that police at Mangaia numbered 154, and that I got them reduced to twelve ?—Yes. They had made a law that in each store two policemen were placed to see fair-play ?—They reverted to the law the same night. Mr. Moss denied this. Par. 16: Road Tax: This is a local law, but not carried into operation. Roads have been much neglected during the last two years, so that the Arikis have reverted to the old custom of making the road themselves. My complaint is that the Inspector of Roads, who is appointed by the local Municipal Council, has not done his duty. I do not know what the rates come to, and how much has been collected, or how much ought not to have been collected. How many miles of roads are there to keep in order ? —I do not know; say fifteen miles. Are you aware that £70 was spent at Black Rock ?—No. Mr. Kohn: My grievance is that the Au do not perform their duty. The European residents have not, as far as I am aware, complained to the Au or the local Government. I believe my company is a large frontage owner—one of the largest. Our taxes for roads and education does not exceed £3. Mr. Moss said : An attempt was recently made by Europeans to get a local Ace passed to constitute a local governing body for the town, which had my active support. I presided at the first meeting. A committee was appointed, and they drew up a complete form of government. I withdrew from it after the first meeting. Meeting was called, and Makea wrote she refused to agree to it, and it fell through. This certainly not by my advice. Par. 17 : Public schools " a failure." [Miss Sivewright's complaint received at the same time. J

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