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liquor for sale there. I really think there is a good deal, but I have no proof of it. There are three policemen in Avarua. The policemen get £1 a month. Ido not think the police is inefficient. They were paid last June. The Arikis, at Mr. Moss's request, did look into Dr. Craig's account of the state of drunkenness prevalent, but they found the bond was the spring, so they did not write to Mr. Moss. Do you know that Dr. Craig said you were the cause of the drunkenness ? Did you sell permits, charging 20 cents ?—For some time I used to charge half a dollar for permits. I am aware that Dr. Craig attributes the amount of drunkenness to the open and indiscriminate sale of permits by the chiefs. My opinion is that if no money was'charged very many more permits would have been issued. I did try to stop the drunkenness. I have never met half|a dozen drunken men in a walk of 500 yards. Dr. Craig : At the time I made the statement I frequently saw half a dozen drunken men between the hospital and the bond, and between the hospital and Te Pou's house ; and at that time it was the usual thing to be interfered with by drunken men. Mr. Moss says : I have seen two or three drunken men near the merry-go-round. Except the two months of the feasting, although I walked about a good deal, I rarely saw drunken men. Mr. Harding : Builder and carpenter, been here seven years. I remember the merry-go-round being here. I went over once or twice. When it was in Mr. Goodwin's yard I saw no drunken men. When it was not there I saw a big crowd, most of them under the influence of liquor. I could have counted twenty drunk. Rev. J. H. Hutchins : I went down to Awatu. Once I saw five drunks. On another occasion, on a Saturday, Rev. J. Cullen, of Mangaia, went down to the post-office and saw seven drunks. I think this was due to the sale of permits and the illicit drinking. I occasionally have seen drunken people, but only on one occasion as many as five. I have spoken to Makea on the subject. When a deputation of the London Missionary Society was here last July we saw Makea about this. We spoke strongly at various meetings in the island. I was not in favour of the present law, and do not think it has been a success. To Mr. Moss: Ido not think it has been more successful than the old law. It was successful at first only. I have communicated with Mr. Chalmers. He thinks total prohibition for Rarotonga. Mr. Chalmers had not been at Rarotonga long enough to have known by personal observation what was the condition of things here. Mr. Moss (by Dr. Craig) : Cases have not been pointed out to me that I have not investigated. I never told Mrs. Hutchin that she should have to shut her eyes to these things. Mr. Sherman has never pointed out to me the disgraceful state of the liquor traffic. Mrs. Hutchin : I have spoken to Mr. Moss about the liquor traffic. He told me I should learn to shut my eyes to these things. This was at my house. It was the beginning of this year. Miss Sivewright: I heard a conversation between Mr. Sherman and Mr. Moss. Mr. Sherman said that the drinking was very bad amongst the natives. Mr. Moss did not think they could get the drink. Mr. Sherman said he could produce witnesses. Mr. Sherman : lam a prohibitionist. I know Rarotonga well. I came first here in March. I saw a good few natives drunk on Sunday. I was informed that they were, most of them, drunk on orange beer. Since the permits have been stopped there seems to be much less drinking, so that it looks as if it was not all orange beer that produced the drunkenness. What you told me was that you felt certain that there were a number of places where drink could be bought by the glass. Did you mean natives or white men ?—I meant white men. Makea: We do not wish Mr. Moss to remain, because trouble will occur. Mr. Moss stayed in my premises. His ways were good at first. When he went to Ngatipa he asked if he could use one room in the house where he used to live. No trouble cropped up when we were living together there. When the Federal Court Bill first came up Mr. Moss left here without letting me know. I did not know of any trouble that I had caused. It was the Federal Court Bill. When we saw Mr. Moss leaving we sent two Atikis —Ngamaru was one of them—to ask him not to go. He would not listen to them. This was the 6th September, the day of the petition. What is the real reason you want Mr. Moss removed ?—On account of the manner in which he left us, and his not explaining the Federal Court Bill. He did not leave us right. He was hasty and quick-tempered. What I have already spoken are my wishes. Sir James Prendergast tells Makea that, pending the decision, she and the British Resident should conduct themselves with regard to the public business as if the trouble had not arisen. Tangata: I am in the employ of Makea Daniela. He has paid me and others in drink and money. If they wanted to be paid in drink they could get it. We got permits for it. He gave us six gallons at one time with five permits. Nuora : I bought no liquor from Makea Daniela. Mr. Gamier: I have not heard of any liquor being landed in any of the islands of the Cook Group. Baea Vaine : I know of three cases and one demijohn on board a schooner at Aitutaki. She was the " Upokoenua." The wives of the owners, hearing that there was liquor that belonged to the natives on board, went to the vessel, landed the liquor, and broke it up. The police were asked to go, and refused. I have a complaint against Mr. Howard, trader at Aitutaki. She saw three cases landed from the " Linda. Weber." They did not break it, because they thought it was against the law. These two vessels do it every trip. Mr. Kohn: Amount of liquor consumed, twelve thousand bottles sold for the year. The Council fees were £456 18s. sd. Mr. Gamier : The permit system would be all right as regards the natives if it were not abused. The year before there were ten thousand bottles sold. Mr. Kohn : The amount of drunkenness here is very great. I believe total prohibition is the best thing for the island. Dr. Galdwell: Previous to the permits to natives being stopped, six months ago, there was an undue amount of drunkenness amongst the natives and white men also. Since that time it cannnot be said that we are free from drunkenness among the natives. There should be a better police system and judicial system for the purpose of enforcing the law. At 7.30 inquiry closed.

(16.) [From the own correspondent of the New Zealand Herald, Auckland, 11th January, 1898.] Affaibs of Rabotonga.—lnquiby by Chief Justice. Rarotonga, 31st December. H.M.S. "Torch" put in her appearance very unexpectedly with Sir James Prendergast on board. He arrived on Thursday, the 23rd, began the inquiry on Friday, at nine a.m., and sat till half-past six, with only a two hours' interval. He adjourned over Christmas Day and Sunday, and resumed at eight a.m. on Monday, and continued daily till half-past six. He concluded last night at about seven, and leaves this morning for Tonga, where the ship will coal and proceed to Auckland. From the remarks of the Judge at the close it may be assumed that his report will vindicate the British Resident from every charge made against him in any way. They broke down absurdly. That was patent to all. But it seems also clear that the desire of the native chiefs to have the Resident here only at their will, and their resolve that they will do nothing unless ib be so, must lead to an entire reconstruction of the form of government. The Cook Islands, if to be retained at all, must be governed by white men. That is clear, and I think the Judge will be found to be of this mind. The following are notes on the final words of Queen Makea, Sir James Prendergast, and Mr. Moss : — Sir J. Prendergast: I wish it to be made known that I am only here to inquire into the petitions for the removal of Mr. Moss, to receive information on the same, and convey such information to the Governor of New Zealand.