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company, from its formation at Westport until the removal of the management to Wellington. Mr. Macarthy has drawn the attention of the committee to the fact that numbers of cheques issued on the company's account have been paid into Mr. O'Conor's own bank account; also that considerable irregularities exist with reference to a number of vouchers. The committee have satisfied themselves from the evidence of the company's banker, and from an inspection of the vouchers, that these matters require explanation. Mr. Macarthy has also directed the attention of the committee to the first minute-book and share-register of the company. An inspection of these books shows them to be very imperfect records of the company's business. The minute-book and share-register is in such a condition that it is impossible in many cases to arrive at a correct conclusion as to what transfers were authorised by the directors, or how the shares had been acquired by those appearing as proprietors. A number of entries are in pencil, and there are evidences of various erasures. The committee feel that the officers and directors of the company responsible for the state of these books have failed to recognise their responsibilities to the shareholders. The defective vouchers which the committee have examined, and which represent a considerable expenditure at Mokihinui and Westport, point to a very perfunctory performance of their duties by the auditors at Westport. In the opinion of the committee sufficient evidence has been submitted to them to warrant doubt alike as to the prudence of the Westport administration and the accuracy of its records. Future Arrangements. In the resolutions creating the committee of inquiry the shareholders have indicated a desire that the committee should make recommendations regarding the future conduct of the company's affairs. The committee, from the facts submitted to them during the inquiry, are of opinion: (1.) That the present board of directors are thoroughly conversant with the business of the company,! and are desirous of conserving the interests of the shareholders. (2.) That no evidence has been submitted to justify the shareholders in withdrawing their confidence from the directors. (3.) That the company have in their mine at Mokihinui and railway an extremely valuable property which only requires the expenditure of a few thousands of pounds sterling to produce satisfactory returns to the shareholders. (4.) That unless the majority of the shareholders are determined to give to their management a full measure of confidence, it will be impossible to continue operations, and an inevitable loss of capital must ensue. Conclusion. The committee in bringing their labours to a close can only express the hope that the effect of the report and evidence they now submit will be to restore the shareholders' faith in the company, and to enable them to arrive at a correct conclusion as to the future. The committee regret to say that the inquiry has been prolonged and embarassed by the conduct of Mr. O'Conor, who throughout has displayed strong feelings of personal hostility to the directors. The committee understand that their report and accompanying evidence is intended for the private and confidential information of shareholders alone. T. Kennedy Macdonald, Alfred H. Miles, Members of the Committee of Inquiry. The Shareholders, Mokihinui Coal Company (Limited).

Minutes (T. Kennedy Macdonald, Chairman). Minutes of proceedings of the committee appointed to inquire into certain charges made against the management of the Mokihinui Coal Company (Limited): — First Day, Friday, 11th November, 1892. The committee met at the offices of the Mokihinui Coal Company (Limited), Wellington, at 2.30 p.m. Present: Messrs. T. K. Macdonald, C. N. Greenland, and A. H. Miles; and in attendance, Mr. T. G. Macarthy (chairman of the board of directors), and Mr. Eugene O'Conor. The resolutions passed at the meeting of shareholders of the company in Christchurch and Westport, signed by the respective chairmen of the meetings, were read. The Christchurch shareholders appointed Mr. T. K. Macdonald, and the Westport shareholders Mr. C. N. Greenland. The minutes of the meeting in Wellington, appointing Mr. A. H. Miles, were produced and read. It was resolved : That Mr. Le Grove be appointed shorthand-writer at a remuneration of £1 Is. per day, and Is. per folio. That the fee of the members of the committee be £5 ss. per day for each day they are engaged in connection with the inquiry. That the taking of evidence be commenced on Monday, the 14th instant, at 10.30 a.m., at the offices of the company. That Mr. O'Conor have the books and accounts of the company placed at his disposal from 9 a.m. till 1 p.m. on Saturday, in order to enable him to formulate certain charges he states he was desirous of making. The committee then adjourned.

Second Day, Monday, 14th November, 1892. The committee met in Mr. Miles's office, Wellington, at 10 a.m. Present: The full committee. Besolved, That Mr, Macdonald be appointed to. act as chairman of the committee, with a deliberative vote only, *