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CASE No. 2. No. 1. Account of John Mellraith, for £156 175., for supplies of provisions to s.s. " Tutanekai" from 7th to 18th December, 1900.

No. 2. Webe these supplies or any of them obtained for the purpose of the service of the s.s. " Tutanekai" in conveying a contingent of Volunteers to Sydney to take part in the Federal celebrations ? J. K. Warbubton, 4th January, 1901. Controller and Auditor-General.

No. 3. The Controller and Auditor-General. All the supplies excepting such as are on first sheet of the account were procured for the trip to Sydney. It is possible that some portion may be unused on board, in which case they will be used on the vessel on return from Sydney. 7th January, 1901. D. McKbllae (for Secretary).

No. 4. The despatch of the steamer to Sydney being for the purpose of the conveyance of the contingent, it does not appear to the Audit Office that such expenditure of public money as may be necessary to that purpose is chargeable as expenditure authorised by Vote 42. J. K. Waebubton, Controller and Auditor-General.

No. 5. Marine Department, Wellington, sth February, 1901. The Controller and Auditor-General, Wellington. The question as to whether or not the expenses of the " Tutanekai " can be charged against the Marine Vote No. 42, irrespective of her employment in or out of the colony, having been discussed on a previous voucher, and. an Order in Council having been obtained authorising the charging of certain expenses in connection with the trip to Australia to that vote, I presume that there will now be no objection to the remaining expenses being dealt with in the same way. W. T. Glasgow, Secretary.

No. 6. The matter was discussed, but the Audit Office, in view of the fact that the voyage of the s.s. " Tutanekai " to Sydney was for the purpose of conveying the contingent of Volunteers to take part in the Federal celebrations there, was not satisfied that the expenditure of public money on that purpose could be charged in the Public Accounts as expenditure authorised for the workingexpenses of the steamer. The Governor, in exercise of his power under section 9of " The Public Eevenues Acts Amendment Act, 1900," determined the question of the difference of opinion between the Audit Office and the Treasury only as regards the " requisition by C. F. Post for £600 as advance for payment of wages and contingencies in connection with s.s. ' Tutanekai,' " so that the objection of the Audit Office still holds good against any additional charge, and especially when the additional charge is for the supplies purchased on account of the service of conveying the contingent. J. K. Waebubton, 6th February, 1901. Controller and Auditor-General.

No. 7. Hon. the Minister. I eecommend that the Treasury Department be now requested to prepare an order for the signature of His Excellency the Governor. I would suggest, that if possible, such order should be made general in its terms, so as to include all the expenses of the trip, and so avoid the necessity for several orders. 7th February, 1901. W. T. Glasgow. Approved. The order should cover any further charge in connection with this particular work.—W. H. J. 3/2/1901. The Secretary, Treasury. Will you please have the necessary Order in Council issued, and arrange for payment of attached account, as Mellraith is anxious to get the money. Bth February, 1901. W. T. Glasgow.

No. 8. The Treasury, New Zealand, Wellington, 13th February, 1901. The Hon. the Colonial Treasurer. I cannot see the necessity for another Order in Council. The opinion of the Solicitor-General is given at considerable length, and was not confined to the legality or otherwise of the charge con-