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obstacle in our way of getting out our first issue on the 27th April. After that we decided not to have any dealings with him. We again came to Mr. Atack and tried to make some arrangement with him. My partner came down with the promissory note. It was not accepted here, as the manager said he had no power to accept it. We then decided not to pay the £500, but to ask for a reduction. We were put to great inconvenience through their not accepting this genuine bill. This telegram which I produce goes to show that Mr. Atack received the cheque for £300 ; but as to the bill the chairman of the directors said the indorsement was not satisfactory : — " W. D. Arnott, Hastings. Received your cheque, but chairman says indorsement not yet satisfactory. Cannot therefore supply yet. You had better see Mr. Knowles and arrange at once if we are to begin Monday. "Atack, Wellington." We then made a formal application for a reduction, and received an answer dated the 21st May : — " Gentlemen, —I regret there has been some delay in answering your application for a reduction of the entrance-fee, but some correspondence involving time has been necessitated. The amount having been fixed and agreed to, nothing can be done until the directors of the Association hold their meeting. Application could then be made, and I have no doubt it would receive the fullest consideration. I hope, therefore, to receive the promissory note, which I wired you would be accepted, when we can begin to supply you with messages. —Yours faithfully, "W. H. Atack, Manager. " Messrs. Arnott and Cashion, Proprietors, Hastings Standard." 44. What was the next stage of the matter ? —We made another application on the 22nd of July, 1896 :— " Dnited Press Association (Limited), Wellington, 22nd July, 1896. " Gentlemen, —In reply to your application for a reduction, I am directed to say that, as before advised, the management has no power to make a reduction, and the case cannot be dealt with until a meeting of directors. I have sufficient ground for believing your application will be reasonably dealt with. With reference to your alternative desire—that the cash sent by you be returned, this I am unable to comply with, as it was received in part fulfilment of an agreement entered into by you to pay £300 in cash, and the balance to be forwarded by your promissory note for £200. " This latter, as I have more than once intimated to you, I await, when, as I have also previously advised, our service would be at once commenced.—Yours faithfully, " Messrs. Arnott and Cashion, Standard, Hastings." " W. H. Atack, Manager. 45. Did you draw the promissory note'? —Yes. 46. Was it indorsed?— Yes. 47. By Mrs. Cashion?—lt was drawn by Mrs. Cashion. 48. It was not indorsed by Mrs. Cashion?—lt was drawn by Mrs. Cashion. 49. Why did you not carry out the instructions of that letter? —It had been drawn out in that way: — " W. D. Arnott, Standard, Hastings. " Will accept promissory note for two hundred at three months, payable in Wellington, drawn by yourselves, and indorsed by Mrs. Cashion. If you agree to this, reply sharp by wire, and confirm same by letter. I will then begin supplying to-morrow. " Atack, Wellington." 50. What then? —We made another application for reduction, and in answer (9th August) we received, " State the amount of entrance-fee you are prepared to pay." We wired, " £200." 51. Have you a copy of that?—No, I have not a copy. Wellington, 3rd August. " Gentlemen, —In reply to your last, please state the amount of entrance-fee you are prepared to pay. To save time you might briefly wire, and follow it by letter.—l am, &c, " Messrs. Arnott and Cashion, Hastings." " W. H. Atack, Manager. 52. Have you any more to say?—We were quite willing to pay the £200. 53. Had the £500 agreed upon been paid, what rights would you have obtained by becoming a member of the Association ?—The only rights we could have obtained were that we should be supplied with the cable news and New Zealand telegrams. 54. Would you have had anything to say in the appointment of directors, or in the management of the business, or the distribution of the expenditure in any way of this £500 ?—None whatever. 55. Would you have any duty laid upon you to act as correspondent in your district ?—Yes, I believe this duty would have been laid on us. 56. In your experiences of the other offices \ou have been in, were the Press Association supplies of news a perfect service for that purpose ? —Well, they did not grumble exactly; but it is not by any means as perfect as some people think. 57. Would you give the Committee an idea in what way it could be improved? Have you had experience enough to justify the expression of an opinion on your part?—No, I think not. 58. Had you ever been an editor of a newspaper before which was in connection with the Press Association? —I was editor of the Brunner News, which was in connection with it. 59. Did they ever have reason to complain that they received more telegrams than they wanted ? —Every office objects to receive several messages that it does not want. 60. What has become of the £300 ?—lt is in the possession of Mr. Atack—the cheque has been cashed.