L—lα.

L i<\ a. H. GAUDIN.

Colonel Logan seemed somewhat annoyed at my way of expressing myself, and asked me to explain what 1 meant. I then again repeated that in my opinion these notes were absolutely useless, and that in my opinion they would have to be redeemed. His answer to me to that was, " I will redeem only what I have paid to my troops." 1 said, " Then, in that case would it not be wise to put some distinguishing mark on the amount paid the troops, because how can you distinguish between what is paid them now and what is in issue here? " To that he seemed to take no notice. My words seemed to rather incense him, and I then went on to show him the accounts I had. I had books of accounts, and I turned over page after page, pointing out the various accounts showing the money due to the firm of Kronfeld Limited, and pointing out the. serious position in which we were placed. I then asked him to allow me to take what little gold I could collect away with me. In fact, 1 asked him to allow "us " to do so, because Mr. Shepherd was with me, but he did not seem inclined to allow that. I then said that if I paid him the gold would he give me a draft on which I might collect the money. I had not then collected any money, but I knew I was going to do so, and I asked him if he would give me a draft on the Bank of New Zealand or the New Zealand Government for the gold I would leave with him. I asked him that most definitely. 40. What was his answer?— His answer was, "I will not." I then asked what I was expected to do with the gold I collected, and in answer to that he said, " Oh, we will take care of it; we will give you a receipt, but we won't give you any war risk " —as much as to say that he would not take any responsibility for the gold in the event of the war, and I had to be satisfied with that answer. 41. Are you aware that the request you made to be allowed to pay him the gold and get some kind of draft upon New Zealand was acceded to in the case of Germans ? —I am. 42. To what amount, to your own knowledge?—£so. The date preceding my departure from Samoa I was informed by Major Henderson, whose, name appears in the official record as one of the witnesses—he was manager to the big German firm—that he had received permission from Colonel Logan to pay in a certain amount of money to the Treasury there, and it would be paid to prisoners of war in New Zealand. 43. And that was denied you? —That was the very request I made which was denied me. 44. In those circumstances, as the petition sets out, you did collect £832, a fraction of what was owing to your firm, and you brought it to New Zealand?— Yes. 45. And you confess that was a breach of the regulations? —Yes. 46. And you do not ask the Committee to regard that as something which should have been entirely condoned; you recognize that some measure of penalty should be imposed? —I certainly recognize I committed a breach of the military regulations in that, but not the offence of war treason. 47. Was there any concealment about the payment of the gold? —None whatever. 48. Did you try to hide it from the police officer? —No, I pointed it out to him without being asked. I said to Sergeant-Detective Hollis, "In that box I have my money," and he said, " I do not want your money —I have no instructions regarding money." In consequence of that my money "was not taken from me. 49. You know that Colonel Logan has in writing characterized your taking that gold as theft?—l do. 50. Whose gold was it?—lt was the gold belonging to the firm of Kronfeld Limited. 51. Was it stolen from anybody?— Decidedly not. 52. It was a small portion of the indebtedness due to your firm in Samoa? —Yes, and due to Auckland creditors. 53. I pass from that to the carrying of correspondence. You know that certain correspondence was put in at the trial? —Yes. 54. And upon that correspondence you were convicted?— Yes. [Letters put in, with translations of German letters.] . 55. Do you swear that the statements made in your petition with regard to,your receipt of those letters are true and accurate?—l do. 56. Was it part of your undertaking to deliver any of those letters upon which you were charged to any Germans? —No, most decidedly not. T. could have posted them on board or I could have posted them in Fiji—the vessel was there three days. 57. And if you had posted them they would have gone through the hands of the officer in charge of the internment camp?— Most decidedly. 58. I suppose it is beyond question that you were not to deliver any of those letters to a German at all? —It was never my intention to deliver a letter to a German. 59. I apprehend that as the prisoners to whom the letters were actually addressed were in the internment camp, the letters would have to go through the officer in charge?— Yes, most decidedly. 60. Was it the practice in previous years for letters to be handed to representatives of your firm and representatives of other firms? —It lias always been the practice in the case of any island I have been in to receive letters at the last moment. 61. What is the reason for that?-—A certain amount of looseness on the part of the people down there. The island people are not exactly like the Auckland people or Wellington business people. They leave their letters till the last moment. 62. And if a steamer is leaving the mail closes some hours earlier? —Yes; in this case the mail closed at 10 o'clock in the morning, and the steamer did not leave till the evening. • The pursers of the Union Company have also done it. 63. What is put in with the Chairman of the Committee are the letters upon which you were charged with war treason, and also the translation of any letters in German?— Yes. I am also including one on which I was not charged at all.

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