A.—3

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nearly as possible each head of the complaint should be taken in order and separately, and information be given and statements made as to each separately. Mr. Kohn conducted the whole case for the residents, except as to the liquor question and, to some extent, the hospital question, which were conducted by Dr. G. Craig. No oath was administered, but each person called to give information was otherwise treated as a witness, the party calling him first examining him, and the other side, so to speak, cross-examining him. XI. Mr. Knight took notes of the statements made by the persons examined, which notes are herewith (marked 15 in red). Many, indeed most, of the matters of complaint were not such as required evidence to establish or negative them, the facts being undeniable and undenied, and the grounds of complaint being matters of inference from undisputed facts. XII. I now proceed to deal with each head of complaint in the residents' petition. The Arikis' statement of complaint furnished to me is herewith (marked 4 in red), and the statement of complaint of the Parliament furnished to me is herewith (marked 3 in red), were not confined to those made in their respective petitions to your Excellency, but, in substance, restated what appeared in the residents' petition and complaints, with some additions : although the Arikis and the Executive Government and the members of the Parliament were themselves responsible for all or most of the various matters forming the grounds of complaint by the residents, though no doubt the British Eesident, who had advised and approved of those matters, was, jointly with them, responsible for these matters. XIII. It will be seen, therefore, that in dealing with each item of complaint made by the residents I am also dealing with most of the complaints made by the Arikis and the Parliament. XIV. Most of these grounds of complaint are in respect of matters that occurred some time ago, the circumstances in most cases having been reported by the British Eesident to your Excellency's predecessor shortly after their occurrence, and the conduct of the Eesident in regard to them having been in many cases expressly approved of by the Governor to whom they were reported. It will be seen that in no case is a charge of corrupt, fraudulent, or dishonest conduct made; the most that can be inferred is a charge of erroneous policy, mistake, want of judgment, overbearing conduct, and wilful disregard of the opinions of others. The document (in form, a petition of Mr. Kohn and others, addressed, dated 24th November, 1897 —November being written by mistake for December—and which may be considered the case of the complainant) contains all that was stated in their petition to your Excellency, but the first five paragraphs are in addition to those in the petition to your Excellency. (1.) Paragraph (1) complains of the British Eesident not forwarding their petition to your Excellency. This matter your Excellency is fully acquainted with. Mr. Moss was told by your Excellency that he ought to have forwarded it, and he then did so. Mr. Moss seems to have taken offence at the petitioners forwarding to your Excellency a copy of the petition, they seeming, as he thought, to imply by that act that he might be guilty of suppressing the petition. (2.) No particular misrepresentation was relied upon, but a general suppression of matters that were adverse to his policy and conduct. It did not appear to me that there was any serious ground of complaint. Matters that might appear interesting and important to the parties concerned were not necessarily, therefore, fit subjects for report to your Excellency. I have read throughout the reports and correspondence as printed in the Appendices to the New Zealand parliamentary papers since Mr. Moss's appointment, and he seems to me to have endeavoured to keep the New Zealand Governor well and accurately acquainted with what was going on in the Cook Islands. (3.) This is a charge of misrepresentation of the true state of things in the local newspaper. I could find no evidence of any misconduct in this respect. Of course, opinions about policy, such as regulation of drink, teaching English in all schools, and other matters, will differ. I fear, however, that Mr. Moss's connection with the local paper has been one of the causes of the present feeling towards him amongst some of the natives and residents. He, no doubt, was instrumental in establishing the Torea newspaper, intending it as a means of notifying to the public matters occurring in which the public were interested. The newspaper has ceased. For some time Mr. Moss was nominally disconnected with it, but undoubtedly, having been for some time connected with it, he was after his nominal disconnection still looked upon as, at any rate, inspiring some controversial matters appearing in the paper. However, nothing was brought before me in support of this complaint which is deserving of any report from me. (4.) This paragraph states objections to Donald and Edenborough being Government bankers, and to the post-office and bond premises being still at Donald and Edenborough's store ; and to the Government accounts being audited by Mr. Scard, manager for Donald and Edenborough, who, as alleged, was passing under an assumed name, and was, in effect, auditing his own accounts. (The meaning of the last matter is that Mr. Scard very much assisted Mr. Gamier, the Post Officer and Collector of Eevenue, in keeping and making up his accounts.) These matters are subjects of specific charges in the petition to your Excellency, and are dealt with hereafter. It is unnecessary to deal with them at present. (5.) This requires no report, the charge is again, use of the Torea newspaper by the British Eesident. (6) and (7). The British Eesident in 1894 was of opinion that the finances of the Federation would not bear the expense of a removal to new premises without affecting other public services. I see no reason to doubt the good faith of the British Eesident's action in the matter. He is now of opinion that the time has come for the erection or provision of a separate building in a more central position than the premises (part of Donald and Edenborough's store) now used, and would sanction any Act of the Government and Parliament authorising the change of premises. ■ (8) and (10.) As appears by the reports sent by the British Eesident to the Governor at the time, and printed in the Appendix to parliamentary papers, an arrangement was made with Donald and