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Daniel and Kenite said they belonged to Taavainga district, and were at the meeting, but were opposed and did not agree to the raui. Kakerua (to Mr. Moss) : I will fine any one, whether he agreed to the raui or not. Yes, I will fine Daniel if he sells coffee. Mr. Moss : Under what law ? Meringitangi : (interposing) : Under law No. 2, 1891, sections 6 and 7. Mr. Moss : That law applies only when the Au imposes the raui. In this case you say it was not the Au. How can you fine people under the law? Kakerua : I cannot show any law, but still I would fine them. Meringitangi : All my district was agreeable, and I imposed the fines as the appointed chief of the raui, not as Judge. I sent the police for the money. If the people fined had no money the police would take a pig, but they never took any clothes. The raui was not published. No trouble was taken to make it publicly known. John (Ariki) (to Mr. Moss) : There are six police for Oneroa. Meringitangi : The Judge of each district is chief of the police in that district. We do send people to do police duty who are not Government policemen. I thought two policemen not sufficient, so I employed six more. That is for Veitatei district. They get no pay, and no share of any fines. They work for nothing. They go into houses, and act just the same as the regular police. They require a warrant from me to go into the houses of Europeans, but not into those of natives. Kakerua : I also employ others besides the proper police. I employ six men besides the two regular police. They get no pay. Kakerua and Meringitangi : All fines must be paid in cash. Ngatama (to Mr. Moss) : The tea-shop was fined by Meringitangi for buying coffee from Taavainga, although he is Judge of another district. Kakerua is Judge of Taavainga. The fine, $10, was paid to him, and not to Meringitangi. On being questioned, all the witnesses strongly denied that any oppression in any form has been or is suffered by the people. Mr. Craig (who was present throughout the inquiry), on being called, said, in reply to questions—■ The police sell the people's goods to pay fines, as they do anywhere else in the world. I have lent people money to pay their fines, and in some cases charged interest. I decline to say how much interest ; that is my business. I charge the same prices for goods whether given out on credit or bought for cash. Mr. Ward (who has been also present throughout the inquiry), on being called, said, —I also have lent money to pay fines, but in no case have I charged interest. I only ask them to repay me when the coffee is sold. I consider myself personally responsible to my employer for such loans. The Government prevent the people from paying their debts by enforcing this illegal raui.

Eepoet No. 2, On Special Chabges Made by Cbaig and Wabd. Sic, — Mangaia, 13th August, 1897. I have gone carefully into the inquiry regarding a bag of coffee alleged to have been proved to be stolen and sold to the Government tea-shop. I have the honour to enclose the evidence taken. There is no evidence either that such coffee was ever stolen or to connect it with the tea-shop or the Government in any way. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. F. G. Moss. The Evidence re the Bag of Coffee. 12th August, 1897. Mr. Craig : A woman came to me in the early part of May, 1897, and wanted credit. I refused unless she gave security. She said she had a bag of coffee nearly full, which she offered as security. I sent Daniel to mark my name on the bag of coffee. The bag of coffee was to remain in her charge until the raui was broken up. She told me the coffee was hers in her own right. I let her have $10 or $12 (£1 to £1 45.) credit on the strength of it. Over a month after I looked into her house, and found the coffee gone. I informed Daniel, who made inquiries, and told me the woman's husband had taken the coffee away. Daniel: Craig sent me to Taakave Vaine to mark a bag of coffee on account of debt, and afterwards sent me to look. I found it gone. Taakave Vaine said her husband took it away and sold it to the tea-shop. Ngatama : The tea-shop bought coffee from Taakave several times, but not one bag in a lump. Taakave Vaine : I went to Craig about May last for credit. Got $9-25 goods from him on credit. Told Craig when I got the coffee I would pay him. Daniel came and marked a cross on the wood above the bag. The bag was not a large bag like a cornsack, but about the size of a saltbag, and would hold when full about -Jewt. I did not tell Craig I had a bag of coffee in the house which I would hold as security for the $9-25, and when the raui came off would sell it and repay Craig. I knew Daniel came to mark the bag of coffee for Craig. I have the coffee still in the house, but I have turned it into a larger bag. To Craig : I did tell you that my husband took the coffee and sold it to Ngatama and the teashop. To Mr. Moss : I did tell Craig that I had more coffee, and would use that to pay the debt. Taakave Tane (husband of Taakave Vaine): Know the bag of coffee referred to. It belonged to my wife. Did not take any coffee from the bag under the cross-mark. To the best of my belief the coffee is still in the house. I did not take it away.

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