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12. At the time of my arrival in Queenstown an opinion seemed to be common that the missing rate-book had not been destroyed, but had been removed by Boult to his residence at Mid Eivers, near the head of the Lake, and that the County Treasurer, Mr. Daniel, if not concerned in its removal, was at least privy to its concealment. The County Chairman and County Solicitor seem to have shared in this opinion, for I found that at their suggestion the police had placed a detective in the house of Mr. Daniel, who keeps an unlicensed hotel at Glenorehy (the head of the Lake), with instructions to make an occasional visit to Boult's house, with a view to the discovery of the book. The oificer, was, however, unable to obtain any clue to the place of keeping of the book, and he was therefore, after some weeks, withdrawn. The police, appearing, however, to believe that the book was on the promises either of Mr. Daniel or of Boult, finally executed warrants for the search of their respective premises, but without finding the missing book. 13. By a precept, dated the 14th December, I summoned Boult to appear before me at Queenstown on the 17th, to give evidence as to the accounts of the Lake County Council, and to bring with him the missing rate-book, and all other books, papers, and documents the property of the Lake County Council in his possession or under his control. He stated, in his evidence on that occasion (Appendix 8.-l), that he had burned the rate-book at the County offices, with other papers, in or after the month of April, 1886. (His tenure of office ceased on the 31st March, but his services were retained in a temporary capacity until the 30th April.) I took the evidence of Mr. Daniel, the late Treasurer, on the subject (Appendix 8.-2J, and that of Mr. Black, the present County Clerk (Appendix 8.-3) ; also that of Mr. Finch, a carpenter recently in the employ of Mr. Daniel (Appendix 8.-4), and who was reported to possess hiformation on the subject; but without any practical result. On the 11th January proceedings against Boult were taken by the police, at the instance of the County Council, for the destruction of the rate-book, and he now stands committed for trial on that charge amongst others. 14. Returning to the subject of the county accounts, I found that the late Clerk held also the office of Collector, and, while still apparently holding that office, the Council on the 2nd February, 1885, appointed Mr. Thomas Gilmour as Collector of the county revenue. Mr. Gilmour held this office till June, 1886. Printed forms called " Rate-collector's Sheets" were supplied to him for the purpose of accounting in detail to the Clerk for rates collected. These sheets were used by Gilmour when paying his collections to the Clerk (see Gilmour's evidence, Appendix 8.-5), but none of them could be found by me, nor could I find the lodgment-slips for moneys paid into the bank, by which, as stated by Gilmour, the Rate-collector's sheets handed in by him were always accompanied. I found a bound volume of these Rate-collector's sheets, the first four or five pages of which were filled up in the handwriting of Boult, the rest of the book being blank. 15. The Accounts-book. —Prior to the 3rd October, 1881, accounts awaiting payment w?ere scheduled on loose sheets, and submitted to the Council for approval at the ordinary meetings. On the date referred to the system of loose sheets seems to have been abandoned, and the accounts since that time have been (professedly) scheduled in the book known as " the Accounts-book," showing on the one page particulars of the accounts thus: —

On the opposite page of the book the votes and works authorized are set forth thus : —■ " Refund of rates — Wakatipu Hospital, £5; " Formation of road at Beach Bay —Public Works Committee to deal; " By-road near Brunswick Mill to be repaired " — the entries being a rescript in brief of the resolutions of the Council recorded in the minute-book. The practice of showing the votes and works authorized as above described gradually fell into disuse, and was finally discontinued in October, 1883, since which date the accounts presented, whether for works or other payments, have been scheduled in the book under the one head of " Accounts presented and passed for Payment." The practice of stating the particulars of each claim has, however, been abandoned, and the schedule is now a list of names and amounts only. Considering its importance, the book, till within the last year and a half —say up to March, 1885—is signally imperfect and unreliable. It frequently happens that the same claim is authorized a second or even a third time. The schedules are frequently unsigned by the Chairman, and in many instances are not totalled, so that further items may at any time have been added; and such totals as are given are frequently erroneous owing to items interpolated (none of which are initialled) and other alterations made in the body of the schedule. In a memorandum at foot of the schedule of accounts for March, 1885, the County Auditor has objected strongly to the practice of interlining items in the schedules; and since that date the practice has ceased. The passing of the several schedules of accounts as recorded in the minutes is usually set forth in terms as follows : " Accounts as per folios 63 and 64 of ' Accounts-book ' were duly passed for payment." Many discrepancies in dates and folios are, however, observable, and in some instance's the passing of the accounts for payment is not referred to in the minutes at all, and I found no instance in which the total amount of the accounts passed for payment was specified in the minutes. The book presents a more orderly appearance during the past two years, owing to repeated representations on the subject made by the County Auditor. The cash-book folios are filled in with more regularity, either in ink or pencil, but are still far from complete. The Auditor has, however, indicated that the items in the cash-book have been compared with those in the accounts-book, by

Cash-book Polio. Accounts. Presented. Passed. £ 6 s. a. 6 0 £ 6 s. d. 6 0 66 Marr —Babbit-poisoning