208

"the Superintendent a Bond by Edward
"McGlashan, Esq., M.P.C., for the faithful
"discharge of his trust, which was approved
"of.
(Signed) "W. CARGILL,
"Superintendent."

2. Q. The original authority given by the
   Contractors to pay J. Gladstone & Co. monies
   due on account of Immigration was virtually
   security for payment of services rendered, and
   could not be revoked by you in the case of the
   "Gala." It is necessary, therefore, that you
   should produce evidence to show that the sum
   of £1712, which you received from the Pro-
   vincial Treasury, has been duly paid over,
   either to Messrs. Gladstone and Co. or to their
   order.

A. Messrs. James Macandrew and Co. pro-
duced to me a letter from Messrs. Gladstone
and Co. under date 19th December, 1859, of
which the following is an extract:-"The
"£1712 from Glasgow last month with
"214 adults for the Provincial Government.
"We will thank you to settle the balance of
"her freight in cash. It is one-half of £14
"5s. per adult landed." The letter can be
produced when required. (Letter produced and
extract verified). I may state that in all cases
previous under the contract, the balances were
settled by Messrs. Macandrew & Co. by drafts
on Messrs. Gladstone and Co. at 30 days' sight.
It will be observed that although £1712 was
the sum due to the contractor, only £1524
was payable to the ship, which amount appears
to have been paid by Messrs. Macandrew and
Co. to the owners of the ship "Gala," a por-
tion having been drawn by the master of that
vessel, and the residue passed to the credit of
the general account of the owners and that
Firm. It may be mentioned that the total
transaction between Messrs. Macandrew and
Co. and the owners of ship "Gala," in respect
of the voyage in question, amounts to £3000
or upwards, and that the whole of this amount
may enter into the question now under discus-
sion with equal propriety as any portion there-
of. It may tend further to elucidate this mat-
ter to state that the difference between £1524
and £1712 was due to and appropriated by J.
Macandrew and Co. in terms of their arrange-
ment with Gladstone and Co., and that the
former are in no way accountable to the latter
for this sum.

3. Q. The letter of Messrs. Crawford and
   Auld addressed to the Superintendent and
   dated 24th August, 1860, the duplicate of
   which was enclosed in their letters of the
   15th September following, is requested.

A. No letter of the date named, either ori-
ginal or duplicate, has ever reached me, which
as regards the duplicate, I am not surprised at
(that being an occasional occurrence), but as
to the original it must have miscarried.

4. Q. Among the documents printed in the
   Report of the Select Committee on the Pro-
   vincial Accounts is the copy of a letter ad-
   dressed to Messrs. Crawford and Auld, Edin-
   burgh, enclosing a Bill of Exchange for £1000.
   You are requested to state when the original
   letter and the Bill of Exchange was forwarded
   to the Provincial Agents, and whether the re-
   ceipt of them has been acknowledged.

A. The original letter and Bill of Exchange
were forwarded from Wellington in July last,
so as to have gone home by the August mail.
There is no acknowledgment yet from the
Agents, and I am strongly inclined to fear
that the letter must have miscarried. I have

written home, however, to secure the Bill
from passing into other hands, and have little
fear of the ultimate safety of the money.

5. Q. Please to state when you sent the se-
   cond of Exchange, and of whom the Bill was
   purchased, and produce the third of the set
   for my information.

A. The Bills in question were purchased
from James Thompson, Esq., of Melbourne,
drawn by the National Bank of Scotland on
Glyn & Co. 30 days' sight, which drafts are
only issued in duplicate; the second was post-
ed in November last.

6. Q. Mr. McGlashan states that when he
   had drawn a cheque for the sum of £500, in
   January, 1860, for the purpose of lending you
   that amount, you asked him either to go him-
   self, or send Mr. Cheyne to the bank for the
   money. Do you admit the correctness of this
   statement?

A. I deny the correctness of the statement.

7. Q. Do you know whether Mr. McGlashan
   ever kept a private account at the bank?

A. I believe he never did.

OBSERVATIONS MADE BY THE SUPERIN-
TENDENT ON MR. MCGLASHAN'S EXAMIN-
ATION.

ON QUERY NO. 20. Is it likely that if Mr.
McGlashan had the Road and Education ba-
lances actually in the chest, he would not have
made use of them to balance his Provincial
Treasury account at the Bank, rather than
expose the deficiency?

ON QUERY NO. 22. The cheques in ques-
tion were never intended for presentation at
the Bank, but simply as vouchers, and I (Mr.
Macandrew) was unaware that any presenta-
tion had taken place.

ON QUERY NO. 25. Does Mr. Cheyne ad-
mit having copied the cheques from the ori-
ginal? What object could there have been in
copying a cheque while the original was in Mr.
McGlashan's possession?

Vide Mr. Cheyne's examination.—C. K.

ON QUERY NO. 33. The deficiency on the
30th September is said to have been made up
by payments received from Mr. Macandrew,
by part of the Road money, and by petty cash.
How could the latter be used to make up a de-
ficiency of which itself must have formed a part,
and what became of the £1000 borrowed from
Jones, or what deficiency does this represent?

ON QUERY NO. As respects Mr. Rey-
nolds' answer, I simply deny the correctness
of the whole of his statement. His denial of
all knowledge of the facts to which Mr. Morris
and Mr. Jackson depose, as well as many others
of which I was cognizant as a partner in the
firm at the time, together with the bitter per-
sonal animus towards me, of which he has given
abundant evidence, would tend to show that
little reliance can be placed on his statements.

ON MY MEMORANDUM attached to the Audi-
tors' Report (vide Council Papers):—

My statement as to the deficiency at 30th
June, arising from payments at Invercargill,
were made on the authority of the Treasurer
himself, as told to me on asking him for an
explanation as to a number of apparent defi-
ciencies at various periods, as pointed out to me
by Mr. Morris, one of the Auditors, by a
memorandum exhibited by him. My state-
ment to Mr. Kilgour (vide ),