a—s.

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10. Interest to the amount of £5 18s. is charged in Warbrick's No. 2 account, and you have charged that sum as paid to a Native. How can you justify that charge ?—I did it to get rid of the National Bank business. I did it on the spur o£ the moment. I knew it was wrong. 17. On the 28th of April a sum of £64 19s. was paid to Warbrick's No. 2 account at the Bank of New Zealand, and on same date £31 ss. was paid to your own private account. These sums, amounting to £96 45., are charged as paid to certain Natives. How do you explain these transactions ? —I cannot explain them without further inquiry; I will supply explanation. 18. As to a sura of £42, part of £290, for which a cheque was paid to J. 0. Young's No. 2 account at the National Bank, can you say whether Matini to liuaki ever had that money? As to the cheques 7,630 and 7,631, the latter of which bears a note, "Tauira, £5 advance," can you give any explanation ? —No, not now. 19. As to £51 paid Retreat Tapsell on the 26th August, 1879, the receipt of which he denies, can you give any explanation of the cheque for £125 drawn on this occasion? —I gave the money (cash) to Hans ;he gave Philip £50 in my presence, and took away the other to divide with Retreat. lam positive Philip gave no receipt in my presence. The money was paid to Philip by Hans. 20. What connection had this sum with a sum of £200 which, as I have been told, you were instructed by Mr. Sheehan to pay over to these brothers ? —lt was a portion of the £200. He (Hans) afterwards drew the balance of £75, £35 being paid on Hans's order to Mr. Mitchell. 21. How is it the cheque was only £125, when the sums charged amount to £126 ? —I had previously advanced him £1. 22. The Tapsells agreed, in writing, that the whole sum, L2OO, should be charged on lands in which they were interested. What vouchers did you obtain ?—Philip and, I think, Hans each signed receipts, and I suppose Retreat supplied a receipt for his. 23. There was a sum of £50 which you paid to ""Retreat Tapsell in Auckland, remitted by Mr. Wilkinson: was that a part of the £200 ? —No ;it was an entirely different transaction. 24. When you paid the final balance of £2,000 on the Te Puke Block, what was the actual sum you then paid? —The actual sum placed on the table was £2,000, against which Mr. Asher made a claim of Ll5O, which was paid. The whole of the remainder was taken possession of by the Natives. 25. Did not the Natives hand you back £50 for Ihaia Tarakawa, and. £100 for Te WarenaP —I do not remember the circumstance. 26. Was Rakitu present when the money was divided, and did she receive any part of it ?—She was in the room, and I was present in the National Bank when she lodged some money to her credit. 27. With respect to the £30 refund? —Have been unable to find block of cheque-book ; but the payment is a refund to myself on account of my having made advances to the Natives. As to the April payment of £31 ss. (part of £96 45.), memo, on block of my cheque-book is, " Pay overdrawn Government account £32." 28. If this sum was to provide for an overdraft on the Government account, how do you explain the £45 15s. withdrawn by you on the 30th June? —On examining the accounts as forwarded to the Treasury and the bank account, with the assistance of Mr.Taylor, the teller of the bank, I found an excess of cash at my credit. The agent suggested I should draw the amount and place it to my own account. This I refused to do. I withdrew the amount and placed it in a box in the office. Mr. Warbrick knew of it. I subsequently disbursed the amount for Government purposes at a time when I had no imprest. Not entirely for Government purposes. I gave £10 to Mr. Warbrick in two sums of £5 each, one to pay the expenses of Mr. Warbrick's son to Wellington, and one on another occasion. The payments are not charged in my cash-book to my knowledge ; if they are, it was not by my direction. It was not intended to charge them till the question was adjusted. 29. Did you take any steps to ascertain the cause of the discrepancy ?—I examined the bank account with my cash-book, and endeavoured to obtain a copy of Warbrick's No. 2 account with the Bank of New Zealand. I. was unable to obtain from the bank a copy of that account. Some moneys were received from the Thames—£lso for payment to Mr. P. Whitaker, jun.; £15 payable to Natives ; both from Mr. Wilkinson. I think there was £50 for Tapsell: this 1 think was sent to Auckland. There were mistakes on one or two occasions, the moneys being paid to my private account. Believe I did not enter these payments in my cash-book. The £15 I believe I transferred to my public account. The sum credited on the 26th of April is the sum referred to. 30. What was the amount advanced to Captain Symonds?—£lso—namely, £50 to the National Bank, and £100 to the Bank of New Zealand. 31. As to refund of the 26th of May in Auckland ?—I paid Hans Tapsell £10, and Philip £10, and Menehera £5. The payments were made on the 20th of January, 1879. 32. How was cheque 15,033, for £50, 2nd of October, 1878, drawn for " general accounts," disposed of?—I cannot say. 33. Mr. Young says that the agreement with the Tapsells was made because they were about to receive the £200 promised them by Mr. Sheehan. Did you ever pay to a Mr. Logan a sum of £2, borrowed by Retreat Tapsell from him in Auckland ?—I paid it to Mr. Logan in Tauranga, and got a voucher for the amount, signed by Tapsell. 34. How has the £2 for Hemi Hikumate, held on sth of January [see journal], been disposed of? —It is still in my possession. It is payable to Brennan and Smith ; but I will hand it over to Mr, Mitchell.

Lettees to Mb. Waebeick, and nis Replies, &c. Mr. Batkin to Mr. Waebbick. Land Purchase Office, Tauranga, (sth March, 1880. Sir, —I have the honor to request you will be good enough to attend at this office on Monday, the Bth instant, at 10 a.m., on business connected with the accounts of Mr. J. 0. Young. —I have, &c, C. T. Batkin, Assistant Controller and Auditor.