A.—No. 16.

REPORT BY MR. MACKAY" RELATIVE TO

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Kopu Flax-mill, Hananru Taipari accompanying me. I here obtained sufficient evidence of a robbery having been committed, but could collect no satisfactory information about the reported murder. It appeared that the men who had been engaged in cutting flax were eleven in number; of these, five were then at Hikutaia, four had gone to Coromandel, and two to Auckland. The five at Hikutaia were those suspected of the robbery, though it was not known how far the others were implicated in it. I found a Native named Te Rua could identify the men who had gone to Coromandel, as he had acted as their guide. I then despatched him with two policemen, Waata Tipa and Henare Pango, in a cargo boat, to Coromandel, with a letter to the Eesident Magistrate there, asking him to send his European policeman with them to look after the men, and to request them to attend as witnesses ; if they refused to do so, then for the police to arrest them on suspicion of having committed a felony. On proceeding up the river to Tuhitai, I heard that three of the men then at Hikutaia were old convicts, and that when some of the Maoris went to their camp to look after the stolen goods, they had come out with their knives to attack them. Fearing they would not surrender to Native police, I determined to go myself and assist in their arrest. I then wrote to Mr. Lawlor, and asked him to come to Kopu and hear the case, as I should most probably be unable to act in a judicial capacity. "We pulled up the river, and reached Hikutaia at dusk. After landing, we had to walk through thick flax and brambles for about three-quarters of a mile before reaching the flax-cutters' camp. By this time it was 10 p.m. "We apprehended all five men, and took them to the house of Mr. Nicholas, a settler there. At 4 a.m. on the 19th, we pulled up the Thames to Opakeko, having left "Wcka, policeman, and Wiremu Waitangi, special constable, in charge of the prisoners. On arriving at Opukeko, I invited the Ngatitamatera to meet me at Karaitiana's place. The Natives assembled about noon. Tukukino welcomed us, and said he was glad to see me back again, as I had not been there for some time, owing to the reports that they intended to kill me. He was glad I had come, and hoped I would continue to do so. Hanauru Taipari, Native Assessor, said, " "We have come as we have heard that evil has taken place, and wish to inquire into it. Those who transgress ought to be punished." Te Hira Katu : " Come to see us, although you have differed from us in opinion. Come, Mr. Mackay, wo treasure your words; they are locked up in a box,"lest they be damaged by wet or anything else. Tour words are obeyed ;we are holding them and considering them. There are two laws: that of God and that of man. There are also persons who uphold each description of law. Come and carry out the law." Hanauru Taipari: " Tour words are good; we have come to make inquiry according to law." "Wiremu te Paura: " Come, although you see there is evil. Te Moananui comes, whether he hear good or evil reports. Why have you stopped away so long ?" Mr. Mackay :"It is true I have not been here for some time. I have not stopped away because I feared your threat, but because I heard that you, together with "W. Thompson, had written to the Government to remove me from this district, therefore I thought you did not wish me to come. "When I was last at Piako, I heard you wished me to come to you, but I would not do so without invitation. I have, however, always told you that if any dispute of consequence, or evil arose, you would receive a visit from me. lam here now on account of the reported murder, and am pleased to receive a kindly welcome from you. I have no ill-feeling against you, only you cannot deny that I have not had good cause not to come near you. It is well. lam glad your ill-feeling has vanished." Tukukino : " Tou have heard these reports from others. As to the letter written by W. Thompson, he did that at Warenga, without our knowledge. We were angry when we heard of it, and asked what right he had to interfere with the affairs of the Hauraki tribes. We asked him to confine his letter-writing to the concerns of Waikato, and to let us manage our own business. It is well for you to come on this day of evil. This offence is yours, the European ;it is also done by Moananui, Te Tanewha, Eiwai, Hanauru Taipari, Patene Puhata, Rawiri Takurua, and all the Queen Natives. I say it is your offence, because your people brought the flax-cutters to Hauraki, formerly the timber, flax, and other vegetation of the Thames was untouched by any one. Tou and the friendly Natives allow Europeans to come, and after they arrive this evil takes place. I shall not make free the enquiry, but shall say the Europeans have committed this murder. Wiremu Hapihana: " There is no searching or twisting of words here. I speak straight, and state that although you may say it is the Pakeha, it is the work of Moananui, Eiwai, Hanauru, and all the Queen people of Hauraki. In the days of Kereopa, he alone was guilty of the murder of Mr. Volkner, vet we Pai Marire fanatics all suffered. We did no evil then; wo committed no offence. This crime has been done by you. We are not angry with you. Come to see us and put it right. Tekuri, son of Paora te Waitau: " Come to see your ancestor; come, Biwai." Meha Takurua Patene Tanewha: " Come with the axe (Europeans) ; come to your place and count the offences." Mr. Mackay: " Tou have now completed the preliminary talk; it is good. I will now tell you what I wish to do. Our custom is, if any person meets with his death by violence, or is found dead in the bush, fern, water, or in a solitary house, to convey the body to some public place. The death, then becomes known. An officer called a coroner summonses a runanga of twelve men; they then examine the body. After this they take evidence —First, as to who knows or can recognize the body ; then, who was the last person who saw him alive ; then, who first saw him dead; next, under what circumstances—are there any marks of violence? If there arc, they next inquire by whom they were inflicted. I now wish to know who last saw Paora te Waitau alive ; next, who first saw him dead ; and lastly, why you suspect him to have been murdered. If it is found after this inquiry that there is reasonable cause for suspicion against any Europeans, they, if not already in custody, shall be arrested. I have taken steps to secure the attendance of all the flax-cutters. If it is found that a Maori has committed murder, I shall apprehend him." Hamiora Kewha stated: " I believe lam the last person who saw Paora te Waitau alive. I called at his place on Sunday, the 25th February, on my way from Hikutaia to Ohinemuri; he was all right then. He was making a net. He was apparently in good health." Tukukino : " I went to Paora te Waitau's house on Saturday, 3rd March. I found him lying with his head on the door step of the house; his body was inside. I looked at him, and found blood on the