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The Chairman: I will read the statement prepared:— Borough of Kumara.

Mr. Duthie: According to that statement the Council do not seem to have been in any financial straits. 4. Mr. Massey.] Do you know, Mr. Eudkin, anything of an order made by Nathaniel Seddon that moneys due to him should be paid to Mr. E. J. Seddon ?—No. 5. Were you present at Wylde's trial ? —No ; I read the report of his trial. 6. Do you remember this question being asked by Mr. Harper of Mr. Seddon: Evidently a document was produced authorising the Council to pay moneys to Mr. E. J. Seddon on behalf of Nathaniel Seddon? Do you remember anything to that effect?—l remember such a document being spoken of. I questioned Wylde about it. His explanation was that such an order had been given, as Mr. Nathaniel Seddon was to be away for a time, but to the best of his recollection it was never made use of. 7. Mr. Nathaniel Seddon was away for a holiday for a time : is that what you say? —Yes. 8. Were you in the Council at the time ? —I was a member at the time. 9. Were you in the habit of giving employes of the Council two months leave of absence on pay ?—No, except in cases of sickness. 10. Were his wages paid during his absence ?—They would be, I think, but I cannot be certain. 11. Do you always pay by cheque? —Yes. 12. Never pay cash ?—Payments by cash were not allowed ; it would be irregular. 13. I have asked the question because some of the witnesses told us different to you.— Well, my experience is that payments were always made by cheque. 14. Do you remember anything of an attempt having been made to merge the borough into the county ? —Yes, there was a resolution of that nature. 15. Who was the moving spirit ? —Mr. Seddon, I think. Ido not know what his object was. 16. What was the date of that ? That must have been prior to the trial of Wylde ?—Certainly. 17. Mr. Graham.] Now look at Schedule C [Exhibit E]. Mr. Seddon, when examining you, took you through that schedule, and asked you to find corresponding entries in the bank-book to the vouchers, and in some cases you could not ? —No. 18. There is some confusion as to whether in some instances there were two or more payments? —Well, it might have occurred in this way: that Nathaniel Seddon ceased to be a permanent employe of the Council, and he might have been put on the pay-sheet with other men. , 19. You were aware that Mr. Seddon was referring to a voucher of a following date respecting two sums, a credit of £15, partly for Nathaniel Seddon. I think the voucher explains that sum of £15. Did those vouchers include any sums for other people?—l only looked casually through the vouchers, but I did notice there were one or two other names included. 20. But generally the vouchers were from Mr. Seddon alone ?—I think so, but I am not positive. 21. Are you positive ? —No, I cannot say positively; they are now in the possession of the accountants. 22. Now, I want to refer to these amounts. If the vouchers are given for Mr. Nathaniel Seddon alone, then the position taken up by Mr. Seddon would be established. Now look at the vouchers for 1881 —perhaps the witness can—sth January, 1881, the amount £18 ?—That amount appears here in the bank-book as 6th January. 23. Is that all for Mr. Nathaniel Seddon?—Yes. 24. Now find 3rd February, £12 ?—Yes, Nathaniel Seddon. 25. Next, 3rd March, Nathaniel Seddon ?—Yes. 26. The other items which appear here are 23rd January, 21st July, 18th August, 29th September, and 27th October ?—Yes, all those appear here, and are for Nathaniel Seddon alone. 27. Then it was the rule to take vouchers from Nathaniel Seddon alone ?—Yes. 28. That is not included in the £510 10s. ?—No. 29. Now, having refreshed your memory, your answers to Mr. Seddon were perfectly correct ? —Yes.

Date. Mayor. Bank Balance on 30th September. Interest paid for the Six Months. .878 .879 .880 .881 .882 .883 E. J. Seddon E. Blake ... J. S. Pearn J. O'Hagan J. O'Hagan W. Barnett £ s. d. Cr. 618 0 8 Cr. 87 10 5 Cr. 60 4 3 Cr. 3] 8 19 11 Cr. 376 12 11 Dr. 126 11 1 Balance on 31st March. Cr. 100 18 8 Cr. 4 12 10 Dr. 35 18 6 Cr. 60 12 11 Dr. 202 10 10 Dr. 307 19 2 £ s. d. 2 17 1 5 6 10 0 16 9 1 4 5 13 8 5 .878 .879 .880 .881 .882 .883 E. J. Seddon E. Blake ... J. S. Pearn J. O'Hagan J. O'Hagan W. Barnett 14 5 10 2 0 6 6 7 7 7 2 11 3