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snow at Taupo, he went straight to Napier. Not trusting country telegraphists, we had a private code. As he obtained no information it was not required. I think it was used once about his own survey claim on Patetere. Other telegrams passed, my answers to which are appended (marked E). I wanted on this second visit of his to learn the news of the Natives in the Upper Waikato District with regard to their inclination or otherwise to sell or lease the: r land to the Government. As I then expected, it would fall to my lot to conclude the purchase of the blocks I had passed over to the Government from the Company. Had he learned anything I would have reported it, especially as after what Lieut.-Colonel McDonnell had said against Mr. Booth, the agent purchasing Murimotu, it was very likely that some valuable information might be obtained. I got no news, and therefore I had nothing to report. Mr. Dalton wired me for money from Napier, when I sent him £20, and instructions to return by way of the Thames, and inquire into the condiditon of the Upper Thames and Upper Piako Natives. When he arrived at Taupo, I advised him to get a promissory note signed by the Native owners of Patetere for the amount of his survey, so he might have something to show for his work when the Government took it over, as they were going to do. The extent of Lieut.-Colonel McDonnell's transactions in the North before I went there, during the couple of years or more in which he was employed in that district, and the value of his exertions, can be judged by the foUowing facts, which can be substantiated by the records of the Native Office relating to land purchases in the North. He had entered into negotiations for seven blocks —Waoku, Takahue, Uhiroa, Pekapekarau, Waerekawakawa, Opoutike, and Opuhite. AVhen I went North the only one of them surveyed was Waoku, aud I had great difficulty in passing it through the Court, owing to one-third of it encroaching on the land of another tribe. Takahue and Uhiroa were being surveyed by a Mr. Campbell, who had them in hand for nine months, doing very little. The three small blocks had been commenced a year before and left unfinished. Opoutike was not touched, and the survey did not begin until I sent a surveyor there in September 1874, who finished the three smaller blocks. L cut.-Colonel McDonnell had not one single transaction completed when I went North, aud the Native owners of blocks under negotiations were in a very unsatisfied state with his arrangements. Having thus disposed of the charges which have been brought against me, I will now proceed to show to the Committee the unworthiness of the evidence given by Lieut.-Colonel McDonnell, and, in so doing, I shall be compelled in self-defence to make'statements which cannot but be considered as charges against him. I must apologize for thus troubling the Committee, but, as of course it seems to be only one man's word against another, I must put forward facts to discredit his testimony. 1 must premise by one short remark. I find that Lieut.-Colonel McDonnell has stated that at Haruru, in June 1874, in the presence of Mr. Dalton (in Goff's Hotel), he told me I was a scoundrel and a Yankee sharper. Now, Lieut.-Colonel McDonnell never has dared to say anything of the kind to me, and I have a very strong impression that he never will. He mentions several occasions on which he says I made him offers, and he states he made notes about his refusal, and his holy horror at my doing such a thing. I take this opportunity of denying again these assertions, and I should like to ask how it came to pass that, knowing of my " rascality," as he calls it, he should continue on such intimate terms with me as to write me the business letters he did, some of which I annex. Lieut.-Colonel McDonnell, having given his account of the trip we took to the North together, I must request to be allowed to give my version of it. We, i.e. Lieut.-Colonel McDonnell, Mr. Dalton, and myself, left Auckland 16th June, lt_74, in the steamer for Russell. The Colonel and myself were very friendly. It was a rough passage, and I remember Lieut.-Colonel McDonnell had a horse on board. The horse was found to be injured ;he was put on shore. The Colonel told us it had cost him £9. I have since heard he sent in a claim to Government for £15, and I understand he got it. We parted at the Bay of Islands, with an understanding to meet at Goff's Haruru Hotel in ten days. The Colonel stated that he had engagements atTaheke ; I had business at Whangarei; Mr. Dalton accompanied me ;we returned three days earlier than we expected. On our way from Russell to Haruru we met the Colonel in a boat;'l got into the Colonel's boat; we met on the most friendly terms ; I returned with him to Russell. Later in the day we returned in his boat to Haruru, where we met Mr. Dalton, and talked over land-purchase matters generally. It was then settled we should travel together to avoid confusion in the purchase of lauds. Mr. Stannus Jones arrived about 9 p.m. ; he left an hour later with Lieut.-Colonel McDonnell, who said they had business at the Taheke, and would meet us at Ohaeawae in three days. The following morning Mr. Dalton and myself went to Herd's Point. I did some business there, and left £300 with Mr. Yon Stunner for Mr. Nelson, Land Purchase Account. We then returned to Ohaeawae, a day later than we expected. Lieut.-Colonel McDonnell had been there and gone to Mongakahia ;he left word for me to follow, which I did, and arrived with Mr. Dalton at Mongakahia on the night of the 27th June. After that Lieut.-Colonel McDonnell and I never separated till we arrived in Auckland on the following month. I then paid advances on account of purchase of Pekapekarau, AVaerekahakaha, and Opuhiti One, and agreed with the Native owners of Kairara and Totarapako, which is the block known as Tutamoe, but the whole has passed the Court under the proper name, " Kairara," the first signature in the voucher marked G; Romaura AVharepapa is the sole grantee. Lieut.-Colonel McDonnell, Mr. Dalton, and myself examined several blocks of country that day. We arrived at Ohaeawae that evening, and paid deposits on the blocks we had seen ; and here occurred the affair of the cheque, on the following day, 29th, as per voucher marked A, explained by me above. We then went to Waitangi, AVhangaroa, Monganui, and Ahipara, where I found the Natives very sick and wishing to draw out of the arrangements proposed by Lieut.-Colonel McDonnell for Victoria A^alley. I managed to set this right. Thence to Herikino ; found the Natives discontented about their portion of the valley. Uhiroa Block —put that right; paid a deposit on account of purchase of Epakanui. Thence to AVliangape; afterwards to AVi Tana Papahia's settlement, Hokianga. I instructed Mr. Nelson to negotiate with Wi Tana for the purchase of his tribe's interest, " Raruwa," in the A'ictoria A'alley. After that we went to Herd's Point and Taheke, and I rode out with Lieut.-Colonel McDonnell to see Otaua (Mr. Stannus Jones' negotiation), so as to be able to report on it. I did report on it to the Government. We then examined the country between Taheke and Ohaeawae. At Ohaeawae I paid deposits on several blocks of land. We then went to Russell and took steamer for Auckland, reaching Auckland on, I think, the 17th July, 1874. During this trip I was negotiating for blocks which I reported on about