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Treasury will not be arrested, for they are generally so forwarded merely in order that expense may be saved by the use of the Treasury code." Why was that cablegram not sent on ? —At that time the question had not been settled, and it was not proper to send it. 240. Did you tell the Auditor-General at once that you were not sending it ?-—I fancy, if I remember rightly, that he was informed it had not gone. 241. Perhaps Mr. Warburton can tell us. Were you informed at once, Mr. Warburton, that the cablegram had not gone on ? Mr. Warburton : The telegram that I received from Mr. Palliser on the 13th June I forwarded to the Treasury, with a suggestion that they should provide for the payment by bank order. Some correspondence then took place up to the 15th June, and on that date, as my Audit Officer was without a reply to his message, I forwarded the cablegram to the Treasury for transmission, as will be seen from memorandum No. 5, on page 2 of the papers. The message read, " Pilcher's draft unauthorised expenditure not chargeable General Imprest." Mr. J. Allen : You sent that to the Treasury for transmission on the 15th ? Mr. Warburton : Yes. Mr. J. Allen : And when did you hear about it again ? Mr. Heywood : I wrote on the 17th. The telegram was left attached to the papers. Mr. J. Allen : You knew nothing about it between the 15th and the 17th, Mr. Warburton? Mr. Warburton : The 15th, if I recollect aright, was a Saturday, and the 17th a Monday. Hon. Sir J. G. Ward: Nothing was held back from the Auditor-General, Mr. Heywood, in connection with the matter of the sending of the cable ? Mr. Heyiuood: No. Mr. Warburton: I should like to say this: The cablegrams which the Audit Office sends through the Treasury are not for criticism or for inspection by the Treasury, but for transmission through the Treasury, as through the Telegraph Office itself, or through Eeuter's Agency. If lam not to trust the Treasury to transmit Audit Office messages, I must send them through the Telegraph Office direct. Hon. Sir J. G. Ward : In that particular case, when the cablegram was returned to you on the Monday Mr. J. Allen: That is wrong. The 15th was a Sunday ; the cablegram was not returned till the Tuesday. Hon. Sir J. G. Ward: lam going by what Mr. Warburton said. Mr. Warburton : I probably made a mistake. Hon. Sir J. G. Ward : At all events, when the message was sent to you, you could have sent it direct at once if you took exception to the action of the Treasury. Mr. Warburton : I could have replied at once, but I presumed that the expense of doing so would be saved by the Treasury adopting the suggestion of sending the money in the proper way.

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