I.—sa

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213. After your interview with Mr. Eitchie on that occasion, did you consult the Minister?—l think not. 214. Had you any letters from Messrs. Douglas, Turnbull, Begg, or Wright, Stephenson, and Company, of Dunedin ? —No. 215. No communication at all?—None. 216. Dr. Fitchett.] Beferring to this difficulty about " initiation." I understood you to say that you understood "initiation" to be when the Board began to act?—Either the Board or the Chairman. 217. I notice by the Act that the duties of the Board are defined to the effect that, there shall be a Board, consisting of the Surveyor-General, the Commissioner of Taxes, the Commissioner of Crown Lands, and the District Land Eegistrar, " whose duty it shall be, upon the direction of the Governor, to ascertain by valuation by a competent person, or by such other means as seem to him fit, the value of any lands the Governor may purpose to acquire." Now, am I right in taking your meaning to be that the Board begins to act when the Governor has directed it ?—Yes. 218. The initiation of purchase would be the action of the Board ?—Yes. 219. And the Board does not act until the Governor directs? —Yes. 220. But your inquiry was a departmental one, outside the function of the Board ? —Yes. 221. There are a good many of these inquiries in the course of the year ?—Yes ; and many of them come to nothing. 222. So that you have this preliminary inquiry, and, if it is not favourable to the purchase, you do not trouble the Board ever after about it, and the Board never acts ?—That is so. ' 223. So that the whole object is to consider whether the land is worth the consideration of the Board?—Yes. 224. Why did you not do so in the ordinary way by letter ?—I knew that Mr. Adams was to leave Dunedin on the same day (Monday) for the Conical Hills Estate. 225. And it was to catch Mr. Adams? —Yes; to intercept him at Clinton. 226. Then, as the head of a department, you wished to combine the work and time of your officer as far as practicable ? —Yes. 227. Would you do the same again under the same circumstances?—Yes; I have done it over and over again. i 228. Did you yourself make any recommendation in this matter? —No. 229. Did you in any way depart from your strictly official duty in this matter ?—No ; in no way whatever. Mr. Scobie Mackenzie : Here is Mr. Shennan's proposal for an unconditional sale 230. Dr. Fitchett.] What is the date of the original proposal?—The 25th of July. That is the proposal Mr. Adams went clown upon. 231. Sir Bobert Stout.] Is it usual for an Under-Secretary to direct the inquiry that may be necessary respecting "lands for settlement" without communicating with his Minister?—l have not done so. 232. Then you would get instructions from some one before you did so ? —No. 233. Mr. Green.] Did you notice that paragraph in Mr. Shennan's letter stating that his land was offered as an unconditional sale?—The proposal considered was an " exchange." The Chairman : That was in the previous letter written in July 234. Sir Bobert Stout.] Mr. Barron brings this matter before him on the 20th September Witness : There was a previous letter. The Chairman : There was a previous letter elated the Ist July. 235. Sir Bobert Stout.] There is another letter of the 28th. Was there any reply by Mr. Shennan to this letter (handed to witness) ?—lf it is not on the file there is no reply. 236. Can you say there was no reply?—l think there is nothing more. 237. Then there is no answer to the reply of the Minister ? —No ; I think not.

Thursday, 13th September, 1894. John Douglas Eitchie examined. 1. Dr. Fitchett.] Your name is John Douglas Eitchie. I believe you are the head of the Stock Department ?—Yes. 2. You are also a relative of Mr. Douglas ?—Yes. 3. You are his nephew ?—Yes. 4. Do you know the Pomahaka property?—Yes. 5. How long have you known it ?—I first knew it about fifteen years ago. 6. Have you anything to do with it? —I have taken the " outside supervision "of it; that was before I joined the department, about three years ago. 7. The Mount Eoyal Estate is also his ? —Yes. 8. To what extent were you in the confidence of your uncle about his business affairs ?—I w Tas as far in his confidence as one could be in the confidence of another man; I knew exactly what was doing. 9. When did you first hear of the sale, or the offer of sale, of this property to the Government ? ■ —Mr. Douglas told me that he purposed offering the property to the Government. I mentioned the circumstance to Mr. Barron. Mr. Douglas wrote to me several times to the effect that he purposed selling the property. I mentioned the matter to Mr. Barron, as I knew that Mr. Adams was going to the South at the time. 10. You say that you mentioned the subject to Mr. Barron ;do you remember when?—l think it was about the middle of August; it might be about the 19th, or 20th, or 21st: somewhere about that time.