A. —4b.

Did not Mr. Nelson or any of the Legislative Councillors call attention to the fact that it was not Government property ? —My attention was not drawn to anything else but what I have got here. The Chairman.] You would expect these gentlemen to know the position, would you not ? —Yes ; but there was no denial of this statement. No denial by the Administration, do you mean ? —Yes ; there was no denial. Mr. Meredith.] In regard to the proposed hydro-electric scheme, you know that that is a Reparation Estates scheme, do you not ? —I have heard since within the last few months, but at the time we did not know. Did you inquire ? —We did not make special inquiries, but we made this comment: " Before entering upon this work the public may well ask for information as to the cost which will fall upon the public Treasury." Is not that a direct suggestion that this is a matter which will be paid for by the Government ? — I would not say so. This report was drawn up for the purpose of giving the Minister sufficient information to justify him in calling for an investigation. We did not wish at the time to have it in the form of direct charges against the Administration. There was a general complaint of the heavy expenditure of the Administration, and this information we compiled to give the Minister upon his arrival here, in order that he could go into the matter and see if it was correct, or, if not correct, to give us the information. You intended this merely for an inquiry to the Minister ? —That is so. That was my feeling at the time, and I consider that that was the object of it. Why did you publish it in Samoan and explain it all to the Samoans ?—Because the Samoans were present and they were interested. There were Samoans on the committee, and we felt that they should be informed of everything the European section of the committee did or said. They (the Samoans) had their own financial report, and we Europeans, on the other hand, had what they reported translated into English for the European section of the community. Did not Mr. Nelson or any of the other Legislative Councillors tell you that the hydro-electric scheme had nothing to do with the Government ? —No. Have you any reason to suppose that such information would be refused you at that time if you asked for it direct ? —At that time, considering the feeling that was then existing between the Citizens Committee and the Administration, we felt we would be turned out of the office. The Chairman.] But you need not have gone to the Administration. You had three members of the Legislative Council on your committee, who could have given you the information. Why did you not find out from them if your suggestion was a true one ? —They were present — That is not an answer to my question. Why is it that you did not ascertain from them what were the true facts ? —I included this in the report on the information I had received from the committee, and there are three members of the Legislative Council on that committee. You say, then, that the Legislative Councillors knew that you were making this statement, or they ought to have known ? —I could not say that. Why not: are they not responsible ? —They are equally responsible with me. Ought they not to have known what the facts were ?—I imagine they should have known, being members of the Legislative Council. Do you realize that you and the committee were under a positive obligation, a positive duty, not to make false statements of fact in your report ?—I submit, Your Honour, that we have made no false statements. I am not asking you what you have done, but whether it was not your duty to take care not to make any false statements : I want Yes or No ? —lt certainly is lam not asking that. Is it your duty ? —Yes, of course it is the duty of a man to ascertain the truth before making a statement. Mr. Meredith.] In regard to expenditure generally, on page 12 you have made reference to an increase in the expenditure in Samoa, have you not ? —Yes. And the increase you have quoted there is from £66,765 in 1915 16 to £133,500 in 1926-27, is it not ? Of that £133,500 there is, of course, a contribution from the New Zealand Government of £20,000, is there not ?—Yes. Then of that £133,500 the Samoan Government has but to find £113,500 ?—That would be so. I presume that the £25,000 is the annual subsidy. Ido not know whether that is correct or not. You have been criticizing the finances of this country, Mr. fiurr, but you are not sure whether it is £20,000 or £25,000 ? —I would be guided by the figures that were before me at the time. Assuming, then, that it would be £20,000, then the Samoan Government has of that £133,500 to find but £113,500 ?—Yes. Have you taken into consideration the fact that additional work has been done in Samoa during that period ? You know that additional work has been done I—-Yes. And also that consequently the difference in cost between materials prior to and subsequently to the war has increased tremendously ?—Yes. Did you consider these factors when you made that criticism ?—1 do not recollect considering these facts. I put it to you that should have been a matter for consideration in connection with the question of the rise in expenditure, should it not ?—Yes. But you do not recollect considering the matter ? -No. Did you make a comparison with the rest of the expenditure in Fiji for the same period ? —I presume it would be the same. The price of materials in Europe or America would be the same in Fiji.

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