210

the same day (if it was so), is a singular coincidence, but nothing more. It appears,
however, from my Cheque book, that there
was no such cheque drawn by me then, but
that it was three weeks previous to that date;
and here I may remark, that, during the
months of February, March, and April, while
I had a quarrel with the Union Bank, I had
ceased drawing cheques for presentation, they
were merely vouchers.

As to my reasonably supposing that the
Treasurer was in a position to advance this
money at the time out of his private funds, it
certainly does seem improbable, now that the
whole facts and circumstances of the case are
disclosed. At the time, however, I did not
give the matter much consideration, being
aware that he had private funds passing
through his hands. Among others, I may
state that he showed me an authority to draw
money in Edinburgh for, I think, £500,
which I offered to negotiate, but which, I pre-
sume, he negotiated otherwise. I also under-
stood that monies were being lent out at mort-
gage by Mr. M'Glashan on behalf of clients.
One person who, if I recollect rightly, told me
that he had been in treaty with Mr. M'Glashan
in this way was Mr. Jones, of Jones & Wil-
liamson.

Although not bearing very materially, per-
haps, upon the point at issue, yet it may tend
to show the little importance which I at the
time attached to these comparatively large
transactions with Mr. M'Glashan when I state
that a very large proportion of the monetary
transactions of the Province has for years been,
and were still, passing through my hands.
This will, to some extent, be best understood
by stating that, at the period in question, I
had over £28,000 under discount at the Union
Bank, and about £8000, I think, of an over-
draft at the same time. I merely allude to
this as indicative of the little importance which
I attached to the sums at the time, and the
small consideration bestowed upon them by
me as to the sources from whence Mr. M'Gla-
shan derived them. Of one thing I felt cer-
tain, that he had got fairly before the wind
when I took office; and I had also good rea-
son to believe that he had monies of clients in
his hands temporarily.

MR. J. M'GLASHAN—Examined.

1. Q. You are the Provincial Treasurer?

A. Yes. I have been so since January,
1854.

2. Q. Have you received written instruc-
   tions regulating your duties as Provincial
   Treasurer?

A. None as far as I recollect.

3. Q. Have you given securities for the
   faithful discharge of the pecuniary trust con-
   fided to you?

A. Yes.

4. Q. In whose custody is the bond?

A. In the custody of the Superintendent.

5. Q. Was the cash balance in your hands
   as Provincial Treasurer regularly verified by
   the Board of Audit prior to the Provincial
   monies being deposited at the Union Bank?

A. Yes.

"GALA" CASE.

6. Q. Produce the voucher and warrant for
   the payment of £1712 on account of Immigra-
   tion for "Gala"?

A. Voucher and warrant put in accordingly.

7. Q. This voucher should be supported by
   a reference to the contract under which the
   expense was incurred. Will you hand in the
   original contract?

A. It is in the hands of the Superintendent.

8. Q. It appears on reference to Council
   papers (C.) that the Agents of the Contractors
   (James Macandrew and Co.) for the convey-
   ance of Immigrants by the "Gala" were
   Messrs. Gladstone and Co.

A. Yes.

9. Q. The warrant directs payment to be
   made to James Macandrew and W. H. Rey-
   nolds, the duly authorised agents of Messrs.
   Gladstone and Co. It is found that the re-
   ceipt of James Macandrew only has been
   taken. Have you on any former occasion
   paid the money with one signature only, and
   afterwards obtained the other?

A. I am quite uncertain whether previously
any payment was made on the signature of
one person only; but I am certain that Mr.
Macandrew had aided me on a previous occasion
because I had refused to give the money on
Mr. Macandrew's receipt alone. I have no
explanation to offer in addition to what will
be found stated in the printed Council papers,
pages 8, 9, and 13.

10. Q. Did you apply to Mr. Reynolds for
    his signature in the case of the "Gala"?

A. Many a time.

11. Q. Did Mr. Reynolds explain why he
    refused his acquittance.

A. He said he would require to see Mr.
Macandrew first; this answer he gave seve-
ral times before he absolutely refused to sign
a receipt for the money paid to Mr. Macan-
drew.

12. Q. It is observed that a new warrant
    was afterwards issued in favour of James
    Macandrew and Co., and the acquittance of
    James Macandrew and Co. supplied as a new
    voucher. Produce these documents.

A. I hand them in. I had repeatedly re-
quested the Superintendent either to return
the money or produce the acquittance of Mr.
Reynolds. On the 10th July and 2nd August
last, I addressed letters to him on the subject,
copies of which I now hand in.

13. Q. Have you been furnished with the
    authority of J. Gladstone and Co. to pay to J.
    Macandrew and Co., instead of to James Mac-
    andrew and W. H. Reynolds, the amount of
    their claims on account of the "Gala"?

A. I have not; but the Superintendent has
assured me that he holds such a letter of au-
thority; I am not aware of the contents of
that letter.

CLUTHA COAL FIELDS.

14. Q. Will you refer to the Appropriation
    Ordinance of 1859. Was the issue of £1000
    to the Superintendent on account of the
    Clutha Coal Fields, charged against the vote
    of £3000 for works in connection with the
    Clutha Coal Fields?

A. Yes.

14A. Q. The sum of £1000 to the Superin-
tendent on 7th May 1860, on account of the
Clutha Coal Fields, was paid at the Bank on
the authority of the Superintendent's warrant:
did you afterwards issue a cheque for the
sum?

A. Yes.

15. Q. You are the Treasurer of the Gene-
    ral Road Board and of the Otago Board of
    Education?

A. I am. But the Government has now