7

H.—9a

as a case in point. Samuel Lofquist was going to summons Mr. Macfarlane himself, but there was no one to try the case. L. McGlashan's is another case in point. Mr. Macfarlane sometimes detained Treasury cheques presented to him for counter-signature in part, sometimes in whole. In case of one Doherty, he refused to give a portion for a payment which lie had previously promised to give. In February, 1877, two settlers were going for cattle. The Haast Track was reported impassable. They offered to do certain repairs to open it for a sum of £10. The Eesident Agent offered them £6. Mr. Macfarlane employed day-labour for over £11, and then left it impassable. The settlers had to go to considerable expense in opening the track. lam giveu to understand that in this case partiality was shown. I have seen a report to Government that complaints made against the Eesident Agent could not be substantiated after investigation made —about July or August, 1878. One of Mr. Macfarlane's reports about June last says, all the adults who have left are no loss to the settlement. Mr. Patten sworn and examined. lam the officer in charge of the Jackson's Bay Settlement. I took over charge of the settlement on the 10th of July, 1877, from the Hon. Mr. Bonar, on a telegram received from the Minister for Immigration. I produce a statement of expenditure on the settlement from tho Ist of January of the year 1875, to date 2Sth February, 1879. It shows the various items of expenditure. With regard to the amount for labour, £17,981 Os. lid., it covers the whole of the work performed by the settlers, independent of the amount paid by the Immigration Department for the location of the settlers at the Bay. It covers the cost of the Eesident Agent's house and offices at Jackson's Bay and Okura ;it covers also the expenditure incurred in making thirty-three miles of roads, a portion of the jetty that is erected, and any other public works in the settlement. The works were all authorized before I took charge. In November or December, 1874, the surveyors first went down, I think. These accounts have been audited up to date. The last imprest was sent up about the middle of February. I w ras once Provincial Auditor, and previous to 1877, when Mr. Bonar gave up charge; I had audited the accounts ; since then they have been audited by the Commissioners of Audit. When the settlement was started, in 1875, endeavours were made to get a storekeeper to open business there, but no one would go down, as the terms were not considered satisfactory. The Provincial Government were compelled to provide stores for the settlers themselves. Mr. Macfarlane, as Eesident Agent, was appointed storekeeper, and a storeman was appointed as well. The method adopted for paying for the stores sold to the settlers was for the Eesident Agent to deduct from the wages of each settler, or to collect as much as he could each month from them, for stores sold. First, the payments were made to the settlers in cash ; but they petitioned the Government to pay by cheque, giving as their reason that it would be more convenient for them to send away money to their families by cheque in preference to cash. The first and second months' payments were made in cash. Their prayer was granted, and they were paid by cheque ; and the system has been continued ever since. Dp to the end of 1877 no great conrplaints were lodged against the system ;it w 7as only when Mr. Macfarlane was instructed to collect the back debts that they complained, and asked to be paid in cash. Previous to this instruction I believe Mr. Macfarlane was accustomed to pay the full amounts. He was instructed to collect 20 per cent. There is a statement showing the transactions under this account in the store account handed in ;it shows the amount collected from the settlers and expended in stores. This arrangement was made between the late Superintendent, Mr. Bonar, and the Minister for.lmmigration— i.e., that the stores could be purchased for moneys collected from the settlers. The first stores were bought out of imprest advanced by Government; afterwards, out of moneys collected by the Eesident Agent, and a separate account opened, called "the Provincial Treasurer's Store Account." I produce a tender-book, which shows that tenders were called for —for goods required for the settlement. A statement of moneys received from the settlers for goods supplied was forwarded by the Eesident Agent monthly, together with the statement of wages; the amount expended in wages and the amount recovered for stores was explained in this statement, and remitted to the Provincial Treasurer. The amount remitted, which was represented by orders principally drawn on the Provincial Treasurer, was lodged to the credit of the store account. I may also state that at the store at the Bay an account was opened against each settler for goods supplied to him, and he was furnished also with a pass-book for goods supplied to him. Tho amount remitted to the Provincial Treasurer was paid into the store account at tho bank by cheque. Proyisious, £3,408 15s. lid., not included in the store account, was paid for out of imprest. I hand in a statement of receipts and expenditure on store account up to 1878. £11,000 odd, remitted, includes amounts spent out of recoveries. About £15,000 or £16,000 was collected for stores and rent. Notices were inserted in the West Coast Times and Evening Star for tenders for stores. Flour and other produce is cheaper in Dunedin than here; the other goods would be about the same rate at both places. Tenders were called for, and the goods obtained from the tenderer, if he had them. The lowest tender was always accepted ; and no complaint made as to the quality of the goods. [Statement, and assets aud liabilities, put in.] The money for the settlement was lodged to the credit of the Superintendent of Westland, and the method adopted —the best one that could be arranged—w ras to furnish the Eesident Agent with cheque-books, and to pay the wages of the settlers by cheque on the Provincial Treasurer, Hokitika, and, afterwards, on myself as Officer in Charge. The wages-sheet for the month was forwarded to me, with a monthly statement of amount received and expended. I drew cheques on the imprest account for the amount collected from the settlers for the sale of stores, and this I paid to the credit of the store account; the balance I had with which to meet orders presented to me — i.e., outstanding orders, of which there was always a large number in circulation. The orders were an order to pay at sight, first to the Provincial Treasurer, and, afterwards, to the Officer in Charge, signed by Mr. Macfarlane. The wages-sheet signed by the settlers was forwarded to Wellington in support of the imprest account. The settlers signed for the whole amount, and received in satisfaction this order. The orders were mostly always for the full amount of wages due. Sometimes the orders might be drawn iv two amounts. The wages-sheets agree with the orders in amount — i.e., the receipted vouchers. The amounts on the pay-sheet would agree with the orders, At the beginning of 1878, after the stores