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1898. NEW ZEALAND.

PACIFIC ISLANDS. PROCEEDINGS OF THE BRITISH RESIDENT, RAROTONGA. [In continuation of Parliamentary Paper A.-3, Sess. II., 1897.]

Presented to both Houses of the General Assembly by Command of His Excellency.

INDEX.

No. 1. Mr. F. J. Moss to His Excellency the Govebnob. g IB Cook Islands, British Eesidency, Earotonga, 22nd July, 1897. I have the honour to inform your Excellency that the session of the Federal Parliament of the Cook Islands began on the sth instant, and to enclose, — (1.) Opening address from the Government. (2.) Eeport of the first day's proceedings, published in Te Torea of the 10th July. (3.) Address of welcome to His Excellency the Earl of Eanfurly. (4.) Message No. 3, conveying reply from the Eight Hon. Sir George Grey to the address sent to him last session. (5.) Message No. 5, conveying census taken of Atui and Earotonga by their local government

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No. of Series From. Date. Subject. Page. 1 2 3 4 5 6 7 8 9 10 11 12 13 U 15 16 17 18 19 20 21 22 23 24 25 2G British Resident Governor 22 July, 1897 .. 25 July, „ 9 Aug., „ 10 Aug., „ 10 Aug., „ 21 Aug., „ 15 Sept., „ 15 Sept., „ ,. 15 Sept., „ :. 15 Sept., „ 17 Sept., „ 7 Oct., „ 14 Oct., „ 14 Oct., „ 16 Oct., „ 9 Dec, „ 2 Jan., 1898 .. 8 Jan., 2 Feb., „ 3 Feb., „ 4 Feb., „ 4 Feb., „ 22 Feb., „ 23 Feb., „ 24 Feb., „ 28 Feb., „ Opening of Federal Parliament Administration of the liquor-laws Protest of Dr. Craig against Dr. Caldwell Federal Parliament's rejection of Federal Court Bill Import duties, hospital, expenditure, and observance of Sunday Drinking habits of the natives Acknowledging despatch of 9th August .. „ 10th August .. „ 10th August 21st August Opening of Earotonga Local Council Acknowledging receipt of despatch Acknowledging receipt of despatches Adjournment of Parliament Adjournment of Local Council Complaint of Hospital Board Report on liquor traffic Trade reports for 189Y Breaking open the Torea house 1 9 12 15" 19 26 27 27 28 28 28 31 31 81 42 45 46 47 51 52 54 56 56 58 58 69 British Resident Governor British Resident F. George Moss .. Governor British Resident Has received Sir James Prendergast's report Complaint from Mr. T. Goodwin .. Breaking open the Torea house .. Sir James Prendergast Governor Working of the liquor-law by the Licensing Officer.. 27 28 29 30 British Resident Private Secretary Governor 1 Mar., „ 2 Mar., „ 5 Mar., „ 1 April, „ Authority to prosecute those concerned in breaking into the Torea house Acknowledging despatch of 4th February Acknowledging Mr. F. G. Moss's letter of 4th February Acknowledging despatch of 22nd February 60 60 60 60

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I have also to report that three Bills have been laid before the Parliament. They are the Import Duty Act Amendment Bill, the Federal Court Bill, and the Juries Bill, all of which are still under consideration. The Import Duty Amendment Bill is merely to abolish compulsory free treatment at the hospital, as provided in the Act under which the revenue for the hospital is derived, and to leave the regulation of such treatment to the Hospital Board since created. The reason for this Bill is explained fully in the opening message. The Federal Court Bill and the Juries Bill are important. The reasons for the introduction of the Federal Court Bill will also be found fully stated in the opening message. Since Judge Tepou's disability, from illness, no other native Judge has been found, nor can any other be found, competent to take his place. The Arikis' Courts in each island, over which these Judges preside, are incompetent to deal with commercial and other cases in which Europeans are concerned. When Judges allow themselves to be biassed by listening out of Court to interested parties, delay justice, do not understand the cases before them, nor decide in accordance with the evidence produced, appeals are made to me against their decisions, and I find investigation difficult and unsatisfactory upon the imperfect records which they keep. A remedy is imperative, but the want of funds compels a careful regard to the cost. The simple and most direct course appeared to me to be that embodied in the Bill which, as drafted and now before the Parliament, I enclose for your Excellency's information. The powers of the Federal Court are extended so as to enable it to act as a check upon the Arikis' Courts and the local governments in their several proceedings. The Court will also have the sole jurisdiction in certain cases, and in all cases where Europeans are concerned. There is no one here to take the Presidency, and there are no funds to pay him adequately if there were such person. The only alternative is that the British Eesident for the time being, if allowed to assume the office of President, shall do so, but be answerable only to his own Government, and not in any way to that of the natives. Of course, he will act without pay, but in consideration of the extra work and more direct responsibility, will be provided from the Federal revenue with a Private Secretary, who will act also as Eegistrar of the Court. The Bill is strongly, and with great unanimity, opposed by the members of Parliament. They object to it as taking away their mana, or, as might be more properly said, the mana which their Judges are all competent to possess. The passage of the Bill is extremely doubtful, but I hope that time and a more full understanding of the position will induce the members to change their present view. Among the Europeans an objection is also raised to the additional power given to the British Eesident. The objection would have more weight if he did not already possess the power of interfering with the decisions of Judges, and of insisting, through the Government, on appeals, rehearings, and other indirect and slow means of remedying errors that are made. But to meet this objection the Juries Bill has been introduced, providing for a jury of four. I enclose this Bill also for your Excellency's information. I trust that the course proposed to meet the imperative need of change in the administration of justice, especially where Europeans are concerned, will meet with your Excellency's approval. I have, &c, Fbedeeick J. Moss, British Eesident, His Excellency the Administrator of the Government, &c, New Zealand.

Enclosure No. 1. .. Cook Islands Paeliament: Opening Addeess. From the Fedeeal Govebnmbnt to the Paeliament of the Islands. We welcome you to this your seventh yearly meeting since the Federation and the establishment of civil government in our islands. The Queen's Diamond Jubilee. Our beloved Sovereign, Queen Victoria, attained on the 20th June the sixtieth year of her happy and eventful reign, the longest reign of any English Sovereign. The occasion was celebrated on the 22nd June with great rejoicings throughout the Empire. You were not in session, but we felt that your earnest wish would be to take part, however humbly, in these rejoicings. Therefore, in your name, and in the names of the Government and people of the Cook Islands enjoying Her Majesty's gracious protection, we sent, on the 27th March, an address which would arrive in England in time for presentation, and of which a copy is appended for your information. Compiling and Printing the Laws. The compiling and printing of the laws passed by Parliament and in force on the 31st December, 1896, has been proceeded with as fast as our limited means of printing would permit. We hope to be able to lay before you the English version. The Maori version, carefully revised, will follow. We propose asking you for a vote in order that the laws passed by the Councils of the several islands of the Federation may be similarly treated. All our laws have been published in the parliamentary blue-books of New Zealand, with the despatches sent by the British Eesident; but many so published are in English only, while the means of publication here, till lately, were confined to writing and its duplication. Now that we have a printing-press available the difficulty hitherto experienced will be overcome.

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New Laivs. The importation of wax matches has begun, and we-regarcf them as exceptionally dangerous to life among children, and to property by fire, in the condition of these islands. The wooden matches hitherto used are safer, and we shall submit a law prohibiting the importation of wax matches for your consideration. We consider that the time has come when provision should be made to fix individual responsibility in case of compensation by damage being sought for personal libels published in these islands, and we shall propose to you a law compelling the registration of the printer and the publisher of all papers that may be issued for circulation. Federal Court. Experience has proved that, in the absence of Judge Tepou-o-te-rangi, it is not possible to find a Judge sufficiently acquainted with European law and customs to deal with the increasing number of disputes, commercial and others, in which Europeans and Maoris, or Europeans alone, are concerned. This has given to us great anxiety, and received our careful consideration. The principles and procedure of English law are required in such a Court, while a due regard must be paid to Maori customs and methods, especially as no trained legal assistance is available in the preparation of documents or in legal action among us. Without complete confidence in the efficiency and justice of our Courts the whole Government must come to an end, and the Maoris submit to be governed by others, instead of being a self-governing people. We are not yet prepared with measures on this important subject for your consideration, but hope to lay them before you during the session. The Hospital. The Act passed last session for the formation of a Hospital Board and the transference to it of the control and management of the hospital has been brought into operation. The Board has been elected and the hospital placed under its control. In accordance with the Act, the report of the Board and the accounts of its expenditure will be laid before you when they are received by the Government. In connection with the hospital, a difficulty has occurred which should, we consider, be met by legislation. Section 1 of the Import Duty Amendment Act of 1895, under which the revenue for the hospital is collected, provides that this revenue " shall be applied to the erection and maintenance of a hospital at which advice and general medical or surgical treatment shall be given without charge to all applicants within certain hours to be fixed by the Chief of the Government." The hour was fixed at from 8 to 9 in Government regulations published on the 25th April, 1896. The Board published, on 17th April, 1897, a new set of regulations, by which free treatment was limited to those who might obtain an order from a member of the Board. The rates of admission were also changed without the previous Government regulations being rescinded. The British Eesident called the attention of the Board to the law, and to the anomaly of two conflicting sets of regulations, but was of opinion that the Government should not interfere. The position of the Board must be taken into account. It has small funds at disposal, and every one must desire to see the hospital a success. At the same time it is desirable that the present complication should be ended. With this view, as the Board has been re-elected by the public, to whom it is answerable, we feel justified in proposing to you a repeal of the provision for free treatment. This will enable the Government to rescind the regulations of 1896 without making itself a party to breaking the law, and will leave the Board free to make such regulations as it may consider the circumstances require and the public may approve. The Wharf. Message No. 2 of last session embodied the arrangement with the Union Steamship Company of New Zealand (Limited) for the building of wharf sheds. The company has not only built large and commodious sheds, but an excellent wharf, which will be of great benefit to the people of all the islands who send away produce or receive supplies through Earotonga. The original arrangement with the company provided for sheds only, but has since been practically extended to include the wharf. The company is thus secure that its tenure will not be disturbed without equitable repayment of the outlay in this valuable public work. We have further arranged with Karika (Ariki) to pay to him a yearly sum of £5, in consideration of which he conveys to the Federal Government all his interest in the land on the harbour frontage which includes that on which the wharf and sheds stand. The Federal Government are to hold this land so long as they require it for public purposes. Any possible monopoly of landing accommodation is thus guarded against, while the arrangement with the company is simplified, and outside interference avoided. The Revenue. The receipts for the year ending the 30th June have been only £1,230 2s. 9d., against £1,428 17s. Bd. for the previous year. The poor coffee-crop of 1896, and consequent decreased purchasing-power of the people, induced us to estimate only £1,250 for the revenue of 1896-97, which estimate has proved very nearly right. For the coming year we may rely on a recovery of revenue, in face of the excellent coffee-crop now being gathered. We hope to find the coffee-crop increasing yearly from increased plantation and care, which alone can add to the wealth and prosperity of the Cook Islands.

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The Expenditure for the year ending the 30th June has been £1,654 os. 3d., against £1,441 os. Bd. for 1895-96. The outstanding liabilities for 1895-96 were £218; those for this year are estimated at £110. Full accounts will, as usual, be laid before you when closed and audited for the year. Meanwhile we have elsewhere summarised the receipts and expenditure for your information. The Imports for the year were £24,628 155., against £25,665 for the previous year. Of the imports for this year, £5,975 were duty-free, being goods admitted free here or re-exported to other islands. Casks and fruit-cases, &c, are also duty-free. The Exports amounted for the year, in gross, to £16,196, against £20,720 for the previous year. Of the exports, only £14,766 were the produce of the Cook Islands, against £17,026 for the previous year. The balance in each year consisted of produce from other islands. The usual detailed return of imports and exports will be laid before you. The Estimates will be prepared with a view to keeping expenditure at the lowest suitable point, and with a due regard to the accumulation of savings from revenue which have enabled us to undertake improvements in the past, and on which we must largely depend for the future. Summarising the receipts and expenditure of the past year, they were as follows: — Receipts. & s. d. From import duty ... ... ... ... ... ... 919 9 8 „ hospital ... ... ... ~-. ... ... 183 17 10 „ Post Office ... ... ... ... ... ... 120 5 3 Miscellaneous ... ... ... ... ... . 6 10 0 1,230 2 9 To which must be added the balance in hand on Ist July, 1896, being the savings of previous years, but subject to liabilities then outstanding to the amount of £218 ... ... ... 481 711 Total ... ... ... ... ... ... £1,711 10 8 Expenditure. Fixed appropriations—• £ 8 , <j. Subsidies to the several island governments, in accordance with the Constitution Act, and for the maintenance of their Arikis'Courts, Judges, and police ... ... ... 309 0 0 Towards maintenance of children at Tereora School ... 121 5 0 Hospital ... ... ... :.. ... ... 180 0 0 Parliament and Executive Government— Including payment and passages of members and current expenses ... ... ... ... ... ... 117 10 0 Departmental — Salaries and contingencies, including stationery, current printing, and advertising ... ... ... ... 283 2 9 Carrying ocean-mails ... ... ... ... ... 34 14 8 Eent of post-office ... ... ... ... ... 900 Subsidy to wharf sheds ... ... ... ... ... 50 0 0 Caretaker (Ngatipa) ... ... ... ... ... 22 10 0 Interpreting and clerical assistance ... ... ... ... 40 6 5 Care of the insane ... ... ... ... ... ... 15150 Compiling and reprinting the laws to December, 1896, and printing material and paper for same ... ... ... ... 43 13 4 Buildings, fittings, roofing, painting, water-supply, fencing, and approaches to Ngatipa ... ... ... ... ... 165 2 8 Victoria Eoad, from Avarua to Old Eoad, and fencing ... ... 36 6 4 1,428 6 2 To which must be added school furniture and fittings—a liability from 1895-96 ... ... ... ... ' ... ... 167 5 9 £1,595 11 11 The balance of the £1,654 expended consisted of various similar liabilities of smaller separate sums carried to account this year.

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Looking back over the last seven years during which our Federal Parliament, Councils, Courts of law, and Government Post Office and public revenue have been established, we acknowledge with thankfulness the help which we have received in that work from the Government of New Zealand, and may point with, we hope, justifiable pride to what our Parliament and Government have done. We have, so far, been able to do without gaols or armed bodies of any kind, yet life and property are perfectly safe throughout the islands. The taxation is of the lightest, and we know of none who can complain of wrongs not righted. We have seen free schools established and liberally fitted for teaching in the English tongue, and have been able to aid the boarding- and training-school at Tereora. A convenient Parliament House has been built, and a good hospital, while material progress has been aided by subsidies towards the making of roads and in other ways. Eegular payment of our Judges and police has been substituted throughout the islands for the old system of paying themselves by such fines as they could exact from offenders brought before them. Our people have been thereby relieved not only from much money exaction, but from the continued spying and harassing by which that system was necessarily attended. The only taxation has been a duty on imports of 5 per cent., to which must be added the receipts from the Post Office. A further duty of 1 per cent, has since been specially levied for the maintenance of the hospital, but no other tax of any kind has been, so far, found necessary. The practice of strict economy, and an adherence to simplicity and directness in the constitution of our Government, and in its forms and proceedings, can alone enable us to continue with this small taxation. That is a point upon which we desire to lay special stress, and which we must not fail to bear constantly in mind if we would keep taxation within due bounds. Finally, we pray for the blessing of the Almighty upon your labours, and pray that they may prove for the good of the people of the Cook Islands. For the Government, Makea Takau, Ariki, Earotonga, sth July, 1897. Chief of the Government.

Appended Addbess to the Queen. [Translation.] To Her Most Gracious Majesty Victoria, Queen of Great Britain and Ireland, and Empress of India : Health and the blessing of God and of His Son Jesus Christ be on you and on your family and people. I, Makea Takau, Ariki of Avarua, and Chief of the Federal Government of the Cook Islands, approach your Majesty on behalf of the Arikis, the Parliament, the M.ataiapos, and the people of the Cook Islands to humbly offer our heartfelt congratulations on the attainment of the sixtieth year of your glorious and beneficent reign. Under the protection of the British flag we in this far-away country have been given the blessing of self-government, and are, and ever shall be, your Majesty's loyal and devoted people. Our children are being taught the English tongue in all our schools. Many of our people are already working as missionaries and teachers in New Guinea and other islands of this great ocean. The children now in the schools will go forth to do God's work and to spread the Gospel, stronger than their fathers from the knowledge which English books will give them, and will imbue the heathen with the loyalty and devotion which they feel themselves. Gladly would we be present in person to do honour to your Majesty, but that cannot be, and in spirit we bow before you, and pray that the blessing of God may long rest upon your Majesty, your family, and your great nation. Makea Takau, Chief of the Government of the Federation of the Cook Islands. Tepou-o-te-bangi, Earotonga, 25th March, 1897. Chairman of the Federal Government.

Enclosures Nos. 2 and 3. Cook Islands Paeliament.—Monday, sth July, 1897. The seventh session of the Federal Parliament opened at 10 a.m. on the above date, according to the Constitution Act. Before proceeding to business, members, officials, guests, and representatives of the Press were invited to partake of the usual luncheon incidental to the opening. A few minutes before 12 noon members took their places, and the Clerk of Parliament called the roll, when were present: Earotonga—J. M. Salmon (representing Arorangi); V. Maote (representing Takitumu). Atiu—Utakea (representing Atiu); Tua (representing Mauke) : Kaketava (reprerenting Mitiaro). Aitutaki —-Memarau (representing Arutanga); Ngaropu (representing Eeurea); Ngapo (representing Tauta). Absent: The member for Avarua and the three members daily expected by the s.s. " John Williams." Prayers: Utakea. The next business was to elect a Chairman. The Clerk stated that Tepou-o-te-rangi was, unfortunately, still too ill to attend, and it was feared he would not be fit for work this session.

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All the members expressed their sincere regret at the continued illness of Tepou, who, as Chairman, held the respect of all. It was then proposed that Mr. John Salmon (Arorangi) be appointed Chairman. There being no dissentient, that gentleman was duly elected Chairman for the ensuing year. The newly elected Chairman and members then waited upon the Chief of the Government (Makea Takau), the former informing her of his election as Chairman, and that the Parliament was organized and prepared for work. The Chief of the Government then handed him the opening address from the Federal Government. On the party returning to Parliament House, the Chairman read the address, and distributed printed copies of the same amongst the members. Message No. 2, address to the new Governor of New Zealand, was read and adopted, of which the following is a copy : — "To His Excellency the Eight Hon. the Earl of Eanfurly, K.C.M.G., Governor of New Zealand, &c.: Salutations! We, Arikis of the Cook Islands, desire to join with the Federal Parliament of the Cook Islands in welcoming your Excellency to the great Colony of New Zealand, with which we are so closely connected, and from which we have received so many marks of kindness and much valued help in our young Government. We welcome you as the representative of Her Gracious Majesty Queen Victoria, under whose protection we happily live, and we welcome your Excellency personally, with sincere wishes for the happiness of yourself and your family and for the prosperity of your Governorship in New Zealand. May your days he long and happy, and the blessing of God and His Son Jesus Christ be on you and your family, and on the colony which you are called to govern. " Dated at Earotonga, this sth day of July, 1897." The Import Duty Amendment Bill was laid on the table. Resolved, That a Committee, consisting of the Chairman (Mr. J. M. Salmon), V. Moate, and Ngaropu, take evidence from the Hospital Board and the Medical Officer, and inquire into the reasons for the proposed change. A letter was read from the Clerk of Parliament (Makea Daniela), requesting leave of absence for one month, and guaranteeing to supply a competent person to fill the post during his absence. Parliament willingly granted the request, at the same time expressing their appreciation of the services rendered by Makea Daniela. Parliament then adjourned, the next meeting to take place as soon as possible after the arrival and departure of the " John Williams " ; to be convened by the Chairman.

Enclosure No. 4. Message No. 3. —From the Chief of the Goveenment to the Paeliament. I have received from Sir George Grey a letter, in reply to the address sent by me in accordance with your resolution of 10th August, 1896, and send it to you that you may know. You will be glad to hear that he whom we all look to as a father and protector of the Maori people in all countries was as strong and well as his many years, so much above the number allotted to most men, will allow. Makea Takau, Ariki, Earotonga, Bth July, 1897. Chief of Government.

52, Stanhope Gardens, Queen's Gate, London, 2nd November, 1896. To the Queen Makea, Ariki, and to the representatives of Parliament in the Cook Islands assembled: Salutations ! I have grown old in the service of the Maoris and among other duties which have rendered my life toilsome, and must soon pass away from you, so I thank you for the letter you have written to me, and say to you "Go on." Persevere in all that is requisite for the carrying-out of the good and fruitful measures laid down for you to promote the welfare of the natives, and think sometimes of me while you yourselves are labouring for the good of your people, and say, " Yes; he also did work to promote the happiness and welfare of all." From your attached friend, G. Gbey.

Enclosure No. 5. Message No. s.—From the Goveenment to Paeliament. I send herewith, for the information of Parliament, the results of a census taken in Earotonga on the Ist June, 1895, and one taken in Atiu on the 21st September, 1896. These are taken entirely by the local island Governments, but I think it well to place them on record with the Federal Parliament, and to hope that the example may be followed by Mangaia, Mitiaro, Mauke, and Aitutaki. Makea Takau, Ariki, Earotonga, 9th July, 1897. Chief of the Government.

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Census of Atiu (21st September, 1896). Males. Females. Total. Under 5 years ... ... ... ... 37 44 81 From sto 10 years ... ... ... 60 44 104 From 10 to 20 years ... ... ... 110 81 191 From 20 to 50 years ... ... ... 212 183 395 Over 50 ... ... ... ... ... 23 31 54 442 383 825 European resident—Austrian ... ... ... ... ... 1 826 Of the above, there were in the separate districts —Teenui, 214 ; Areora, 244 ; Tangatangi, 120 ; Mapumai, 102 ; Ngatiarua, 145 : total, 825.

Census of Rarotonga, 1st June, 1895.

Nationalities.

Division of Males and Females.

Districts. Doubtful. Under 5. 5 to 10. 10 to 20. 20 to 50. Over 50. Totals. Read. Read and Write. .varua ... .rorangi ... Igatangiia and Muri latavera 'itikaveka 3 2 126 97 55 29 32 12 172 77 28 21 14 219 130 50 29 20 514 222 139 112 112 97 54 30 14. 10 1,102 540 408 208 196 90 82 91 50 (58 509 222 158 85 80 28 Totals 159 225 312 448 1,099 211 2,454 381 1,054

Countries. Avarua. Arorangi. Ngatangiia. Matavera. Titikaveka. Totals. Earotonga Vfangaia iitutaki itiu, Mitiaro, Mauke ... Dther Pacific islands 3-reat Britain ... imerica—United States jermany 641 159 33 78 63 53 19 4 1 2 4 38 7 359 61 18 37 58 305 29 6 11 51 4 2 176 8 5 8 8 2 1 142 25 15 5 6 1,623 282 77 139 186 59 24 4 1 2 8 38 11 "2 ?rance Norway r'ortugal 3alf-castes 3hina "2 3 "2 1 Totals ... 1,102 540 408 208 196 2,454

District. Doubtful. Under 5. 5 to 10. 10 to 20. 20 to 50. Over 50. Totals. Grand Total. Avarua Arorangi ... Ngatangiia and Muri Matavera Titikaveka M. 3 2 63 p. 63 M. 56 24 16 18 5 p. 41 31 13 14 7 M. 99 38 20 15 7 p. 73 39 8 6 7 M. 126 69 29 12 11 p. 93 61 21 17 9 M. P. 284 230 119 103 73 66 54 58 64 48 M. 61 29 22 8 6 P. 36 25 14 6 4 M. 629 281 223 107 110 p. 473 259 185 101 86 17 11 Totals 85 74 119 106 179 133 247 201 594 505, 126 85 1,350 1,104 2,454

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Enclosure No. 6. Fedeeal Coubt Bill, 1897. A Bill to create a Federal Court for the Cook Islands. Short Title : Federal Court Bill, 1897. Be it enacted by the British Eesident and the President of the Cook Islands, — 1. That the Act to establish a Supreme Court (No. 4, 1891) and the Amendment Act (No. 2, 1894) are hereby repealed. 2. That a Court is hereby established, to be styled the " Federal Court of the Cook Islands." Constitution of the Court. 3. That the Federal Court shall consist of a President and of such Judges as the Chief of the Government may from time to time, and with the consent in writing of the British Eesident, approve. 4. That the British Eesident for the time being is hereby declared by virtue of his office to be President of the Federal Court with all the powers of a Judge. 5. That the Judge of the late Court, Tepou-o-te-rangi, shall continue to act as a Judge of the Federal Court at the same salary as at present, and is hereby appointed accordingly. 6. That the Court shall meet at such times and at such places as the President may direct. 7. That the President may appoint in writing a deputy to act for him during absence or inability from any cause, or in special cases, and that such deputy shall for the time being have the same powers as the President in the exercise of his office. 8. That if the British Eesident assume the duties of President he shall be responsible only to the Government of Her Majesty the Queen, from whom he holds the office of British Eesident. 9. That Judges of the Federal Court appointed by the Chief of the Government as aforesaid shall hold office during good behaviour, and shall only be removed by Act of Federal Parliament approved by the British Eesident: Provided that if Parliament be not in session the Chief of the Government, with the approval of the British Eesident, may suspend a Judge, who shall continue to receive his salary without deduction till the decision of Parliament shall have been given. 10. That in case of the illness or disability of a Judge it shall be lawful for the Chief of the Government to appoint an Acting-Judge, to hold office for a term not exceeding six months, provided that the appointment may be renewed from time to time, subject both in appointment and renewal to the approval of the British Eesident. 11. That the President of the Court shall decide all cases brought before the Court, but that any Judge sitting with him and dissenting from the decision may record his dissent, with the reasons thereof, in the records of the Court. 12. That the President shall regulate the procedure of the Court, and appoint its officers, and that such procedure shall be in accordance with the principles and practice of English Courts so far as they can be applied with due regard to established Maori laws and customs prevailing at the time when and in the place where the cause of action arose. 13. That all fees of Court, fines, or other moneys received by the Court shall be Federal revenue, and treated accordingly. 14. That the British Eesident is hereby empowered to appoint from time to time such person as he may think fit, to be his secretary, and to act also as Registrar of the Federal Court, and that a sum not exceeding one hundred pounds sterling is hereby appropriated as the yearly salary of any person so appointed. 15. That the President of the Court is also authorised to appoint a Bailiff, and such other expenditure as may be found necessary, and a sum not exceeding sixty pounds per annum is hereby appropriated accordingly. Jurisdiction of the Court. 16. That the jurisdiction of the Federal Court shall be exclusive— (a.) In all cases of murder, or assault with intent to commit murder, and all cases of manslaughter ; (b.) In all criminal charges against foreign residents; (c.) In all offences against the Federal laws ; (d.) In all cases between foreign residents, or between foreign residents and Maoris, in which the plaintiff may begin an action in the Federal Court, or seek redress for wrong alleged to have been done to him or her by any Arikis' Courts, or the Government of any of the islands of the Federation. 17. That the Federal Court may also rehear any case referred to it by an Ariki Court, and, if the judgment of the Ariki's Court be confirmed, may make the judgment a rule of the Federal Court, and enforce it accordingly. 18. That on the application of either party to a suit in an Ariki's Court the Judge of the Ariki's Court, on application being made to him by either party to the suit before the beginning of the hearing, shall refer the said suit to the Federal Court: Provided that the Judge may also refer to the Federal Court any case after it has been begun before him, if he thinks fit so to do. 19. That the Federal Court may appoint suitable persons as solicitors, who shall be answerable to the Court, and who may at any time be removed if guilty of misconduct in the performance of their duties. 20. That solicitors so appointed shall have power to act and to plead for parties before the Court; but this shall not debar any party from appointing specially for the conduct of his case, and with consent of the Court, such person other than a solicitor whom he may prefer.

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21. That the Court shall have all the powers over persons and property needful for enforcing its judgments which are possessed by any of the English Courts; and, for the maintenance of order in its proceedings and obedience to its judgments, may punish any persons guilty of contempt by fine or imprisonment, provided that no judgment as to contempt of Court shall be" given until after open hearing, within not less than twenty-four hours after the offence has been committed. 22. That in the absence of a public gaol the Court may declare any dwelling-house or other suitable place a temporary gaol for a special time and purpose. Dated at Earotonga.

Enclosure No. 7. Jueies Bill, 1897. Be it enacted by the British Eesident and the Parliament of the Cook Islands, — 1. That it is desirable to empannel juries to try causes in the Federal Court. 2. That the President of the Federal Court is hereby empowered to draw up a list of persons whom he may consider competent to serve as jurors. 3. That every person whose name appears on such list shall receive written notice from the President, or some person appointed by him for the purpose, notifying such person of his liability to serve as a juror. 4. That jurors shall be drawn by ballot, but not more than twelve jurors shall be summoned at one time, out of which four jurors shall be drawn by a second ballot to serve on the trial of the cause. 5. That the usual right of challenge may be exercised by the parties, but the President may at any time prevent the challenging of jurors should he consider that either party is using his right to prevent or delay the cause being heard. 6. That any person who shall approach or attempt to bribe or threaten a juror shall be fined a sum not exceeding fifty pounds. 7. That jurors shall be summoned by notice in writing from the President or some other person appointed by him. 8. That the attendance of jurors when summoned is compulsory, and any juror neglecting to obey such summons may be fined in a sum not exceeding five pounds. 9. That the exemptions under this Act shall be infirmity, insufficient knowledge of the English language, or any other reason which the President may consider sufficient, but that no juror shall be exempt on account of his profession or nationality. 10. That jurors shall be paid ten shillings each for every cause heard by them, and that the party applying for the jury shall deposit with the President two pounds on the granting of his application for such jury. Dated at Avarua.

No. 2. Mr. F. J. Moss to His Excellency the Govebnob, Sic, — Cook Islands, British Eesidency, Earotonga, 25th July, 1897. I have the honour to inform your Excellency that on several occasions during the last few months I had reason to believe that there was a gradually increasing relaxation in the administration of the liquor-law of 1891, which had created, and still maintains, a condition of affairs far better than that existing under the attempt at forced prohibition which it succeeded. Still, it was necessary to check the relaxation, and with this object I wrote to the Arikis, with whom rests the sole power of issuing permits for liquor to natives. Unfortunately, the Arikis depute this power to one of their chiefs, and a system has grown of charging for the permit, the money being made, Maori-like, a perquisite for the chief. To check this and other growing evils I have been getting general information, returns of the liquor issued under Arikis' permits, and data on other points, with a view to bringing the subject before the Earotonga Local Council at its approaching meeting. I had hoped to get the papers complete and in print before submitting them to your Excellency, but find that the Hospital Board have published in the Torea newspaper the day before yesterday one of the letters that had been obtained on my application from the Medical Officer in charge of the hospital. I have therefore thought it best to send the whole of the medical information obtained to the present time, and enclose communications numbered 1 to 7 herein. Dr. Caldwell's letters will be found specially full and interesting. The information given by him can, I feel sure, be thoroughly depended upon as correct, and he is so thorough an opponent of alcohol in any form that his percentages may be safely regarded as not under the mark. His experience extends over the last four years. Dr. Craig's experience is much shorter—between four and five months only. His objections to the use of alcohol are only those of most people who denounce the abuse, but his statement is incomplete till the reply to letter No. 4, of the 15th July, is received. Dr. Craig's remark as to the " special facilities and encouragement given to the liquor traffic among natives " is incomprehensible. I should have sought an explanation direct instead of through the Hospital Board, to save time, but unfortunately Dr. Craig resents much the interference of the Government, on my advice, in seeking to uphold the statute-law which was infringed by the terms of the arrangement under which the hospital and its subsidy from the Government were handed over to him by the Board.

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Lately there has been very cheap, and, I fear, very bad, rum imported, and sold here by the bottle at Is. Bd., of which half goes for duty and permit-fees. If this be as bad as the price would indicate, it would account for much of the mischief from drinking the " bush beer." I have sent a few bottles from different parcels to Auckland for a proper report. It occurs to me as noteworthy that among the diseases attributed by Dr. Caldwell to intoxicating liquor among the Maoris he has not included delirium tremens, hobnailed-liver, paralysis, and others which mark the habitual drunkard. Dr. Caldwell tells me that cases of this kind only occur among Europeans. In conclusion, I can assure your Excellency that the subject has always been of great concern to me. Total prohibition has been tried for some years, and proved a lamentable failure, in the absence of an overwhelming public sentiment in its favour. The " bush beer" has always been, and still is, strictly prohibited, but the law could only be enforced by the employment of Europeans at impracticable expense, and even then with much uncertainty. One of my greatest difficulties is to find a Maori in whom it is possible to implant any sense of official responsibility, and I fear that this difficulty will not be overcome till they have free access to English books and ideas, on which I have a continually increasing belief that the whole future of this kindly and assuredly improvable people must now depend. I have, &c, Fbedeeick J. Moss, British Eesident. His Excellency the Administrator of the Government, &c, New Zealand.

Enclosure No. 1. Chief of the Goveenment to the Hospital Boaed. Sic, — Earotonga, sth July, 1897. I am directed by the Chief of the Government, at the request of the British Eesident, to ask that when the report of the Hospital Board is laid before Parliament it may make special reference (names of parties of course omitted) to any cases in the course of either hospital or private practice (if the Medical Officer does not object to this last) in which illness or disease is caused by, or attributable in any way to, the use of intoxicating liquor, the report to distinguish between Maoris and others so treated. I have, &c, Makea Daniela, Clerk to the Cook Islands Government. To the Chairman of the Hospital Board, Earotonga.

Enclosure No. 2. Beitish Eesident to Db. Caldwell. Sib, — Earotonga, 6th July, 1897. I should feel much obliged if you would let me know, as the result of your experience at the Cook Islands Hospital and in private practice in Earotonga, the number of Maori cases treated by you in which intoxicating liquor was the direct cause of disease, the number in which you consider it the indirect cause, and the proportions which each of them, direct or indirect, bears to the total number treated by you. I have, &c., Fbedeeick J. Moss, Dr. Caldwell, Earotonga. British Eesident.

Enclosure No. 3. From the Hospital Boaed to the Goveenment, being Dr. Craig's Eeply to No. 1. Gentlemen, — Cook Islands Hospital, 10th July, 1897. In compliance with your request that I should furnish you with a report upon any cases of disease directly or indirectly the result of alcoholic indulgence, I herewith give you the following particulars:— In reading this report the Board should remember that, while a special group of diseases is directly attributable to alcohol, the excessive use of alcohol has a baneful influence on disease in general, increasing the liabilities of individuals to disease, and weakening the natural powers of resistance and repair. In going over my diary and selecting cases I have noted all cases in which I can recognise alcohol as an important factor. The proportion of such cases is large ; but it must be remembered that in this community there are special facilities and encouragement given for the liquor traffic among natives. With regard to the white population, it is so small, and the habits of individuals are so well known, that it is inadvisable to present statistics on this subject. Of the seven native in-patients two were alcoholic. One of these has recently died from the effects of disease due to alcohol. Out of 130 out-patients of different ages and sex, there were twenty-four cases in which disease was the result of or influenced by over-indulgence in alcohol. Trusting that this report will meet the requirements of the Board, I am, &c, Geoege Cbaig, M.8., CM. (Edin.).

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Enclosure No. 4. The Goveenment to the Chaieman, Hospital Board. Sic, — Earotonga, 15th July, 1897. I am directed to thank you for sending Dr. Craig's letter of 13th July, respecting the proportions of disease attributable to drink among the cases treated by him, and to ask if you will be kind enough to state the nature of the twenty-four cases in which disease was the result of or influenced by over-indulgence in alcohol. Dr. Craig also says, " The proportion of such cases is large, but it must be remembered that in this community there are special facilities and encouragement given for the liquor traffic among natives." I am directed to ask that Dr. Craig will also be kind enough to state what are the " special facilities and encouragement " to which he refers. I have, &c, Makea Daniela, Clerk to the Cook Islands Government. The Chairman, Hospital Board, Earotonga.

[To this letter no reply has yet been received.—2sth July, 1897.]

Enclosure No. 5. Eeport from Db. Caldwell to the Beitish Eesident. Sib, — Earotonga, 15th July, 1897. Your letter, dated the 6th July, has reached me. You ask for the number of cases among natives treated by me in Earotonga, both in hospital and private practice, which were directly or indirectly traceable to the use of intoxicating liquor. I will undertake to comply with your request, though, not having classified my cases in my case-book with special reference to this subject, I must not be expected to be strictly accurate, but only approximately correct. I may add that I consider my position here among the natives to be such as to enable me to learn the cause of their illness with far more accuracy than if I held a position of either ecclesiastical or political authority over them. Testimony which has come freely from many of the natives themselves convinces me that it is becoming comparatively rare for them to be satisfied with the "bush beer" alone. I have known a barrel of that article to be almost abandoned on a Sunday afternoon by those who made it when they learned that a little way off another barrel had been made and "fortified" with kavapapua (foreign spirits). It is not uncommon among the intellectual class of men in other countries to see persons using wines and liquors moderately for years before they drink to excess. As to natives, I cannot recall a single one who has been able to restrain himself to drink habitually in moderation. Even the best of those who drink at all have been known to drink to intoxication. Once or twice I have thought that an exception had been found, but further acquaintance has shown that my conclusions were drawn before the testimony was complete. This is the result of my observation among the more intellectual of the natives. Among the rank and file, who live in the bush, there seems to be no self-restraint whatever, so long as the intoxicant can be obtained. One who confines his observation to the street and public places can form no idea of the degrading effect of the Sunday "beer-barrel" in the back-bush lands. Men, women, and sometimes children gather round the barrel, and drink until crazed by intoxication. Then, half-naked, and sometimes wholly so, they sing lewd songs called ute, until stupified by continual drinking, and sleep and stupor put an end to their shameful conduct. I have seen it myself, and know the description to be too true to depict all the evils of " bush beer," mixed with the kava papua. Many of the illegitimate births so common here, and the shameless licentiousness, of which the effects are so often forced upon the attention of the medical practitioner, are traceable directly to these orgies, or to the depraved moral sensibilities resulting from them. "Bush beer "is chiefly dangerous from the decaying fruit consumed with the beer, since it contains but a small percentage of alcohol. The heavy liquors are objectionable, because of the percentage of alcohol found in them. The fortified " bush beer " now in common use combines the evils of both and the advantages of neither. More of this intoxication is seen on Sunday afternoons and Sunday nights than at any other time. This is due, in part, to the enforced Sunday idleness of those who do not care to spend the time in the church. These evils are, to my mind, an object-lesson on the futility of trying to make people religious by Sunday laws. Physically and morally, non-clmrch-going natives are far better off when they work every day in the week. People who intelligently and conscientiously observe the Lord's rest day need no Sunday laws, for they could not be induced either to labour or to play in holy time. Hence, to my mind, Sunday (or Sabbath) laws of human enactment are unnecessary, meddlesome, and pernicious. As before observed, I am unable to give you full statistics of our work in Earotonga, since some of our earlier records have been lost. I have counted, in all, fifty-two cases of serious illness which resulted, I believe, directly from the use of intoxicants, and of these fifty-two five died.

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It has been far more difficult to determine how many of our cases have resulted indirectly from the use of intoxicating liquor. I took three separate months at random from our records, and made them the basis of my estimate. The aggregate of cases for the three months was 333. The number of cases indirectly due to the use of liquors during the same three months was thirtyfour. This gives about 10 per cent. ; but, in my opinion, accurate records for the whole time of my stay in Earotonga will give as between 10 and 12 per cent. My reason for thinking the above estimate too small is that after the estimate a further study of the lists disclosed names that were omitted in that estimate. I have, &c, J. E. Caldwell, Ph.D., M.D. Frederick J. Moss, Esq., British Eesident, Earotonga.

Enclosure No. 6. Further Letter from Dr. Caldwell to the Beitish Eesident. Sib,— 21st July, 1897. I have received your letter of the 16th July, requesting a list of the diseases among the natives of these islands resulting from the use of alcoholic liquor, also inquiring if I have any objection to the publication of my previous letter. I cheerfully furnish a list of diseases, but beg to repeat that this report, like the last, is partly from memory. I know of no objection to the publication of any of my letters of which you think the publication may be useful. List of diseases resulting from intoxicants as seen among natives of the Cook Islands : Dyspepsia ; enlargement of the liver ; gastritis ; Bright's disease ; gastric ulcers ; ulcers ; eczema; jaundice ; fatty degeneration of the heart; anasarea ; carbuncles; ascites; boils; mania ; phlegmon; general debility, inviting disease of every nature. Phlegmon of a metastatic tendency, resulting often in abscess, is very common. Perhaps this is the only feature in the cases that have come under my observation which is peculiar. I have found them particularly interesting, because good authorities in European countries have expressed a doubt if metastasis of abscess ever occurs. In one ease a "bush-beer " drinker went to bed on account of phlegmon of the calf of his leg. Three months later he walked again, having had seventeen abscesses opened by the knife. These occurred in various parts of the body, in crops of three or four at a time, and that in spite of the most perfect drainage that could be secured. It has occurred to me that perhaps the extreme depravity of the blood resulting from rotting fruit consumed with the " bush beer " may be the direct cause of this peculiarity. Earnestly hoping that your efforts to limit or abolish the use of liquor among the Maoris of our islands may be successful, I have, &c, J. E. Caldwell, Ph.D., M.D.

Enclosure No. 7. Further Letter from De. Caldwell to the Beitish Eesident. Sib, — Earotonga, 22nd July, 1897. In replying to your last letter, in which you desire an explanation of my use of the term " rotting fruit consumed with the 'bush beer,' " I did not mean to be understood as saying that the fruit is rotten before being put in the barrel. As we all know, alcohol is a product of fermentation, and fermentation is only another name for decay. The fruit always stands one or two days in the barrel before the beer is drunk. The odour when being drunk shows it to be exceedingly sour. Eecent experiments testing the effects of acid upon stomach digestion show that the stomach is almost entirely inert when the food is mixed with strong acids, even acid fruit-juice, and more so with acid of fermentation. The large quantity of this fermentary mass drank from the barrel makes it impossible for digestion to proceed unhindered. Hence the process of fermentation must go right on in the stomachs of the drinkers, literally converting them into swill-buckets. This might explain why good food eaten before the beer is drank is sometimes vomited a day or two later not yet digested. I have, &c, J. E. Caldwell, Ph.D., M.D.

No. 3. Mr. F. J. Moss to His Excellency the Goveenoe. Sic, — Cook Islands, British Eesidency, Earotonga, 9th August, 1897. I have the honour, at the request of Drs. George and W. Craig, of Earotonga, to lay before you their protest against my forwarding as official documents to your Excellency a certain paper signed by Dr. Caldwell as a qualified medical practitioner. The protest and the papers connected with it are as follows :—

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(1.) Letter from Dr. J. Craig, 2nd August. (2.) Letter from me, in reply. (3.) Letter from me to Dr. Caldwell. (4.) Letter from Dr. Caldwell, in reply. (5.) Letter from Drs. G. and W. Craig, 4th August. (6.) Letter from me, in reply. (7.) Letter from me to Dr. Caldwell. (8.) Letter from Dr. Caldwell, in reply. (9.) The report signed "J. E. Caldwell, M.D.," upon which Dr. Craig's protest is based. I have pointed out to Dr. Craig that the grave charge of " serious malpraxis " is one that should be brought, if at all, before the High Commissioner's Court, which should obtain impartial evidence on the application of persons feeling aggrieved. Dr. Caldwell came here when a medical practitioner was urgently needed. He was accredited by the Seventh Day Adventists' Society of Michigan, U.S.A., which professes to supply competent and qualified practitioners where they are so needed in these islands. When a hospital was built in Earotonga by the Government he was appointed to its charge, and continued when the hospital was handed over to the present Board. In January, 1897, he resigned, and the Board say (in their annual report) that on the Ist February he was again offered the appointment, but declined. Two months later Dr. G. Craig arrived from New Zealand, and was appointed to the charge. In his letter of the 2nd August Dr. Caldwell has given a description of the diplomas which he holds, and it is right to add that his personal character is high, and has never in the slightest degree been questioned. I have, &c, Fbedeeick Moss, British Eesident. His Excellency the Administrator of the Government, &c, New Zealand.

Enclosure No. 1. Sic— Earotonga, 2nd August, 1897. In the current issue of the Torea I observe a report from a person signing himself "J. E. Caldwell, M.D., Physician and Medical Superintendent of Hospital during time indicated," is embodied in Message No. 2 from the Cook Islands Parliament to His Excellency the Governor of New Zealand. I would respectfully point out that registration is the only legal evidence of medical qualification under the British flag; that this person's name does not appear on a British register; and that consequently, by your despatches, you are aiding this unqualified person to pose as a medical man before the public of Earotonga and the Government of New Zealand. As it is important that there should be no misrepresentation in this matter, I shall esteem it a favour if you will include this letter in your next despatches. I have, &c, F. J. Moss, Esq., British Eesident. Geoege Ceaig, M.8., CM. (Edin.).

Enclosure No. 2. Sic, — British Eesidency, Earotonga, 2nd August, 1897. I have the honour to acknowledge receipt of your letter of this date, which will, of course, be sent to His Excellency the Governor of New Zealand, as requested. Your residence in Earotonga has been so short that you are probably not aware that the law as to registration does not apply to the Cook Islands. Dr. Caldwell has been in practice here for four years, and, as you are aware, was your predecessor as Medical Officer to the Hospital both under the Government and under the Board till his retirement, some two or three months before your arrival. The diplomas exhibited by him on his appointment were American. I have, &c, Fbedeeick J. Moss, Dr. George Craig, M.8., Earotonga. British Eesident.

Enclosure No. 3. Sib, — British Eesidency, Earotonga, 2nd August, 1897. In a letter which I have been asked to forward officially to His Excellency the Governor of New Zealand it is stated, among other things, that you are not registered as a qualified medical practitioner in any registry known to the law in British colonies. Of course, the position in the Cook Islands is different, and the law does not apply; but it would be satisfactory to state the nature of the diploma or diplomas which you hold, and which were exhibited on your appointment as Medical Officer of the Cook Islands Hospital. No record of them has been kept, and I should be obliged if you will let me know what they were. I have, &c, Fbedeeick Moss, Dr. Caldwell, Earotonga. British Eesident.

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Enclosure No. 4. Deae Sib, — - Earotonga, 2nd August, 1897. Your favour of the above date has this moment reached me. In reply, I have to say that on the Ist March, 1897, the State University of lowa, one of the old and reliable universities of the American States, bestowed upon me the degree of Doctor of Medicine. This entitled me to respectful consideration as a regularly qualified physician in America. All of the American States, however, require the registration of diplomas before one is allowed to practise within the several States, and, in addition to this, some of the States require an examination by a medical board of examiners. I am registered as a regularly qualified physician in four of these States. On the 10th day of March, 1894, the Chicago Post Graduate Medical College bestowed upon me the diploma of that institution—a regularly chartered medical college of the State of Illinois— as a reward for excellence in my work done as a student in advanced medical study. lam well aware that these diplomas are not recognised in British territory. I know also that a British graduate cannot practice in any of the American States without registration according to law. But for me to seek to gain registration in a British registry in order to practise medicine, as Dr. Craig seems to think I ought to be compelled to do, would be as far-fetched as to display a German or French diploma for the same purpose. Again thanking you for your kindly interest in my welfare, I am, &c, Mr. F. J. Moss, British Eesident, Cook Islands. J. E. Caldwell, Ph.D., M.D.

Enclosure No. 5. Sic,— Earotonga, 4th August, 1897. From your letter of 2nd August to Dr. G. Craig we gather that the fact of J. E. Caldwell's non-registration does not prevent your official recognition of him as a medical man. We feel bound, therefore, as registered medical practitioners, to lay before you the following facts : — J. E. Caldwell has, during his residence here, been guilty of serious malpraxis. This ,we can prove from our own knowledge and from the statements of several responsible inhabitants. We have had opportunities during the past four months of judging J. E. Caldwell, and have no hesitation in saying that he is ignorant of the first principles of medical science. We would, therefore, respectfully urge upon you that by sending medical reports signed by J. E. Caldwell to New Zealand you are aiding in misrepresentation, and identifying yourself with a man who is in a great measure responsible for the dire results of disease in Earotonga. Kindly forward this as a supplement to Dr. G. Craig's letter of 2nd August. We have, &c, Geoege Craig, M.8., CM. (Edin.). F. J. Moss, Esq., British Eesident. Wm. B. Ceaig, M.A., M.8., CM. (Edin.).

Enclosure No. 6. Gentlemen, — British Eesident, Earotonga, 4th August, 1897. I have the honour to acknowledge receipt of your letter of this date, and will send it, as represented, to His Excellency the Governor of New Zealand with your previous letter of the 2nd instant. It will be my duty to send a copy of the letter to Dr. Caldwell, against whom the charges are made, in order that he may have an opportunity of acting in his own defence, if he thinks necessary. With regard to the sending by me of medical reports from Dr. Caldwell to New Zealand, which you regard as " aiding misrepresentation," &c, no remark seems to me to be required. I have, &c, Fbedeeick J. Moss, Dr. George Craig and Dr. William Craig, Earotonga. British Eesident.

Enclosure No. 7. Sib,— British Eesidency, Earotonga, 4th August, 1897. Eeferring to my letter of the 2nd August, I have now the honour to inform you that Drs. G. and W. Craig have this morning given me a letter, with a special request that it should be forwarded to His Excellency the Governor of New Zealand, and that in the said letter they protest against my sending to New Zealand any medical reports signed by you. The grounds of their protest are as follows: "That J. E. Caldwell has, during his residence here, been guilty of serious malpraxis. This we can prove from our own knowledge and from the statements of several responsible inhabitants. We have had opportunities during the past four months of judging J. E. Caldwell, and have no hesitation in saying that he is ignorant of the first principles of medical science." I informed the two gentlemen, on their bringing me the above-named letter, that I should send you a copy of the complaint which they say they feel bound to make as registered medical practitioners. They at once agreed to the propriety of this being done, and mention of this fact is due both to them and you. I have, &c, Fbedeeick J. Moss, Dr. Caldwell, Earotonga. British Eesident.

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Enclosure No. 8. Sic, — Earotonga, 4th August, 1897. Your letter to me dated to-day just received. Many thanks for your kindness in notifying me of the attack of those two medical men. Since their charges are not specific as to dates, or the names of individuals in whose cases malpractice is said to have been detected, I shall make no attempt to defend myself or make explanations. Since the Cook Islands Government recognises neither their registry nor mine, and since the bitter hostility of Dr. Craig manifests only bigotry and a disregard for the rights of rivals, I shall pay no regard to these unproven charges, feeling entirely secure in my conscious integrity, and confident, too, in a fair knowledge of both the principles of medical practice and of the laws of professional courtesy. The fact is I have too much work to do to feel justified in paying any attention to the unkind thrusts of Dr. Craig. Thanking you again for your impartiality in dealing with discordant elements, I remain, &c, J. E. Caldwell, Ph.D., M.D. Mr. F. J. Moss, British Eesident, Cook Islands.

Enclosure No. 9. Message to the Cook Islands Paeliament complained of by De. G. Cbaig. Message No. 2. — Cook Islands Parliament. De. Caldwell, late Medical Superintendent of the Cook Islands Hospital, has sent to the Government the following report, which is now laid before Parliament for its information. The report is a continuation of that made by Dr. Caldwell to 30th June, 1896, and covers the following two months, after which the Hospital was handed over to the Board, to whom his subsequent reports have been made. Makea Takau, Ariki, Earotonga, 6th July, 1897. Chief of the Government.

Statement of Work done in the Cook Islands Hospital in July and August, 1896.

J. E. Caldwell, M.D., Physician and Medical Superintendent of Hospital Earotonga, 26th June, 1897. during time indicated.

No. 4. Mr. F. J. Moss to His Excellency the Goveenoe. Sib, — Cook Islands, British Eesidency, Earotonga, 10th August, 1897. I have the honour to inform your Excellency that the Cook Islands Parliament is still in session. The time has been almost entirely occupied by discussions, in Parliament and among the people of the several districts, on the Federal Court Bill, which was rejected by unanimous vote on the 27th July. External influences had been brought to bear by several Europeans, from various motives, to obstruct this Bill, but the large majority are in its favour. A petition against it was got up privately, and every effort made to obtain signatures, with small success. The chief point in the petition is an appeal to the sensitive jealousy of the Maori with regard to mana —an appeal made by persons from some of whom, in the interests of both races,, better might have been expected. On the rejection of the Bill becoming known a petition was at once addressed to me by thirty merchants and others resident in Earotonga, urging the necessity of some such measure being passed. I enclose for your Excellency's information papers which will, I hope, make the position sufficiently clear without comment on my part. There are no Standing Orders to prevent the reconsideration of the Bill. It may, in substance, still pass, but the Maori fear of losing mana once excited is not easily overcome.

1896. Sal a * m I * IS" ° d I * ° a 6 ti ® 3 OJ d H 3 1) O IS02 ail o •si && a 3 (U »s uly lUgUSt 23 15 896 405 86 47 935 365 112 62 1,831 770 Totals 88 1,301 133 1,300 174 2,601

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The papers enclosed are, — (1.) Petition to Parliament against the Bill. (2.) Petition to me in favour of the Bill, and my reply. (3.) My letter to Parliament thereon. (4.) Letter from me asking Parliament to give their reasons for rejecting the Bill. (5.) Their letter in reply. (6.) My reply thereto. I may be permitted to add that the "reasons" sent to me (Enclosure No. 5) were, I am assured, drawn up by an unaided committee of three Maori members, who compiled them from papers submitted by each of the other members. Whatever opinion there may be as to the force of these reasons, they mark a new advance in the transition from the old Maori system to a new. In the past five years the abandonment of their wasteful and obstructive opening Council feasts, the establishment of records of proceedings, of a separation between the legislative and executive power, the decision by a majority of votes, and the adoption of a systematic finance, as well as the building of a Parliament House belonging to the islands, and a common meetingplace for all the tribes, have been marked changes. The present new departure with reference to the Federal Court Bill is in the same direction, and may, in that sense, be regarded as an additional hopeful sign of development, necessarily slow, of the free institutions planted among them. I have, &c, Fbedeeick J. Moss, British Eesident. His Excellency the Administrator of the Government, &c, New Zealand.

Enclosure No. 1. Petition against the Fedeeal Covet Bill. To the Cook Islands Parliament now assembled. We, the undersigned residents of Earotonga, petition the Cook Islands Parliament to reject the Federal Court Bill, now before the House, on the following grounds :— 1. The passing of such a Bill will effect a fundamental and undesirable change in the administration of the Cook Islands, as it will confer very important powers upon the President of the Court, without holding him responsible to the Parliament from which he derives these powers. (Vide Clause VIII.) 2. That the Bill gives to the President of the Court the power of appointing officers paid with Government money, these officers not being responsible to the Cook Islands Parliament. (Vide Clauses X., XII., XIV., XV.) 3. That if the Bill become law the Government will become involved in increased expenditure, which, in view of the recent statement of public finances, is not justifiable. (Vide Clauses XIV. and XV.) 4. That the appointment of solicitors can serve no good purpose in a Court where it is desirable that the procedure should be as simple as possible. 5. That the passing of the Act may involve increased expense to litigants, as it gives the President of the Court the power to compel litigants to employ counsel. (Vide Clause XX.) 6. That the decision of the President of the Court is not affected by the dissent of any Judges who may sit on the bench with him. (Vide Clause XL) 7. That the Bill aims at extorting from the Cook Islands Government the absolute power of administering its laws, and at handing it over to the proposed President of the Federal Court, who, in terms of his office, is not responsible to Parliament. William Taylor. W. B. Craig. John Wilson. W. M. Fitzgerald. William Brown. Steve Savage Saville. Cook Islands Trading Company, per C Kohn. W. H. Oliver. George Craig. H. Ellis. C Mouteiro. A. C. Avenell. E. J. Jessop. Emil Piltz. Frederick Goodwin. H. S. Neumergen.

Enclosure No. 2. Petition feom Meechants and Othees in favoue of the Fedeeal Covet Bill. Sic,— Earotonga, 29th July, 1897. The undersigned merchants and others, resident in Earotonga, view with great regret the rejection by the Cook Islands Parliament of the Federal Court Bill, and the Juries Bill, by which it was supplemented. We desire to state that we have no sympathy whatever with the petition signed by a few persons against it, but regarded the Bill with hope, as likely to lead to the establishment of a Court whose proceedings would be public and intelligible, whose records would be properly kept, and whose judgments would be prompt and in accordance with the principles which prevail under the British flag.

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The Arikis' Court, on which we are now dependent, cannot be expected to deal with other than the most primitive cases, and are notoriously swayed by external influences of different kinds. The present position has become intolerable, and we appeal to you, as British Eesident, to insist in some change that will give us confidence in the administration of justice in the Cook Islands. And your petitioners will ever pray, &c. SOCIETE COMMEECIALE DE L'OcfiANIE, Donald and Edenbobough, William Dodge, And twenty-seven others. Frederick J. Moss, Esq., H.M.B, Eesident, Earotonga.

Be ply. To Messrs. Donald and Edenborough, the Societe Commerciale de L'Oceanie, Mr. William Dodge, and the other gentlemen who signed the petition to me on the 29th July. Gentlemen, — I have to acknowledge the receipt of your petition, dated 29th July, with reference to the Federal Court Bill put by me before the Federal Parliament. Your petition cannot fail to have great weight. I have communicated its contents to Parliament, which has not any Standing Orders to debar the Bill being brought up for reconsideration. I have, &c, Fbedeeick J. Moss, British Eesident.

Enclosure No. 3. From the Beitish Eesident to the Paeliament of the Cook Islands. Salutations ! I have received a letter signed by thirty "merchants and others resident in Earotonga," who write that " they view with great regret the rejection by the Cook Islands Parliament of the Federal Court Bill, and the Juries Bill, by which it was supplemented." They " desire to state that they have no sympathy whatever with the petition signed by a few persons against the Bill, but regarded it with hope, as likely to lead to the establishment of a Court whose proceedings would be public and intelligible, whose records would be properly kept, and whose judgments would be prompt and in accordance with the principles which prevail under the British flag." "They consider that the Arikis' Courts cannot be expected to deal satisfactorily with other than the most primitive cases, and regard the present position as intolerable." Therefore they hope that " some change will be made which will give confidence in the administration of justice in the Cook Islands." I agree entirely with the sentiments and opinions expressed in this petition. I am anxious to see the Arikis' Courts conserved as the means of administering justice in the simple cases among the Maori people; but this will be impossible unless other and more suitable means are provided to deal with the more difficult cases which occur among the merchants and others accustomed to a different system in other countries. I therefore ask Parliament to set earnestly to work to devise some other means, if they persist in the rejection of the Bill which was submitted to them. Fbedeeick J. Moss, Earotonga, 2nd August, 1897. British Eesident.

Enclosure No. 4. From the Beitish Resident to the Chaieman of the Cook Islands Parliament. Sic, — British Eesidency, Earotonga, 30th July, 1897. I have the honour to acknowledge receipt of your letter of this date, informing me that the Federal Court Bill has been rejected by Parliament. The Constitution Act of 1891 provides that all laws shall be made by the British Eesident and the Parliament, who have therefore always constituted the Legislature. In previous sessions the Parliament has rejected measures submitted to it, but they were not of an urgent character, and the Eesident raised no objection. With the Federal Court Bill the case is different, for the reasons stated in the opening message of the Government to the Parliament, and it is desirable that some course should be adopted ion guidance on this and similar occasions. I suggest, therefore, that the proper course would be for Parliament to state to the British Eesident, in writing, what are the objections to the Bill in question (with the Juries Bill as its necessary addition), in order that the objections of Parliament may, if possible, be met, and a Bill drawn up to which both the Parliament and the Eesident may agree. I have, &c, Fbedeeick J. Moss, British Eesident. J. M. Salmon, Esq., Chairman of the Cook Islands Parliament.

3—A. 4,

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Enclosure No. 5. From Paeliament to the Beitish Eesident. Parliament House, 6th August, 1897. Salutations ! We have received your letter to the Chairman of the Parliament, which was read to us, and we see in it that you wish to know the reasons we rejected the Federal Court Bill. It is good you wish to know our thoughts. These are our reasons:— In looking back to the commencement of Parliament in 1891, — 1. The power to approve all laws is with the British Eesident. 2. The making of all laws is with the British Eesident. 3. In this Federal Court Bill the additional power vested in the President will also go to the British Eesident. 4. The British Eesident, when President, will also have the appointing of a substitute if he should go away. 5. The President will not be under the Cook Islands Government, but under that of Great Britain. 6. It is annulling the procedure of Maori law, and bringing that of British law. 7. Too much expense will be incurred in the payment of officers. 8. It (the Bill) is taking away the power from the Arikis, Mataiapos, and all the people of the Cook Islands in everything, as we look at this Bill. 9. The Bill is too heavy—beyond the comprehension of the Maoris, on account of their poiri and ignorance of foreign ways. The above are the reasons we have rejected this Bill. Enough. For the Parliament of the Cook Islands, J. M. Salmon, Chairman.

Enclosure No. 6. British Eesidency, Earotonga, 7th August, 1897. Salutations ! I am glad to receive your letter of yesterday's date about the Federal Court Bill. You have spoken your thoughts freely ; I will do so too ; then we may be able to find out what is best to be done for the good of the people of all races in the Cook Islands. You say,— (1 and 2.) "That the making of all laws is now with the British Eesident." Not so. The Eesident cannot make laws without the Parliament, nor the Parliament without him. They check one another, and such checks are created in all civilised countries. (3.) " That the additional power to be vested in the President of the Federal Court will also go to the British Eesident." This is true, but only wdiile the British Eesident acts as President. When the Parliament can find the money to pay some other President they will do so. In any case, the Juries Bill will be a great check upon the President, whoever he may be. Again, one or two or more Maori Judges will sit with the President. They will see and hear all that is done. If the President does wrong they can protest, and the Parliament can join them in complaining to Her Majesty Queen Victoria through the Governor of New Zealand.. (4.) " That the British Eesident, when President of the Court, will have the power of appointing a substitute." This only applies when he goes away for a short time, or is ill. Is it not right that this should be so ? (6.) "It is annulling the procedure of Maori law, and bringing that of British law." Not so. The 12th section provides that established Maori laws and customs shall be sustained. The Bill only provides for dealing with those cases which are " too hard " for the Arikis' Courts to take in hand. (See Deuteronomy, Ist, 16th, and 17th verses.) (7.) " That too much expense will be incurred in the payment of officers." Not so. There will be fees towards paying these expenses. The Parliament must remember that it is not proposed to give the Judge £160 a year and let him pay all expenses and take over the Court, as they seem to have been told. It is only proposed to let him have such money as he may require, and which he must account for to the Parliament, and the money must not in any case be more than £160 a year. Probably for the first year little more than half that sum will be required. (8.) " That it is taking away the power from the Arikis, Mataiapos, and all the people of the Cook Islands." Not so. The Federal Court will belong to the Parliament and the people of the Cook Islands, and will not have more power than the High Commissioner's Court when it sits here, and in which the Arikis, Mataiapos, and Parliament have no say at all. (9.) "That the Bill is too heavy —beyond the comprehension of the Maoris, on account of their poiri [inability to understand] and ignorance of foreign ways." This is just the reason why the Federal Court is required. By-and-by, when the Maori people have learned English, and their children are lawyers, as some of the Maori people in New Zealand are now, they will cease to be poiri, and will be able to do all their own work. Meanwhile the good of the Europeans here, and of the other people, must not be neglected. Justice must be given to all, or the Government and the Parliament cannot stand. In conclusion, let me remind the Parliament that the British Eesident already does very much work in connection with the Parliament, the Councils, and other matters which is no part of his

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duty as Eesident. He does so gladly, in the hope that in time the Maoris wall be able to do all for themselves. For the same reason he is willing to add to his work the responsibility and labour of temporary President of the Federal Court, if one be established. But, if he do so, it is right that he should be relieved by the assistance of a Private Secretary, who could also act as Eegistrar of the Court. The appointment of such a Private Secretary would rest with him, and not with the Government; and this is the rule in all countries. Feedeeick J. Moss, To the Chairman of the Cook Islands Parliament. British Eesident.

No. 5. Mr. F. J. Moss to His Excellency the Goveenob. Sib, — Cook Islands, British Eesidency, Earotonga, 16th August, 1897. In continuation of my despatch No. 7, of the 25th July, I have now the honour to enclose, for your Excellency's information, — (1.) Eeport of meetings of Parliament, from Te Torea newspaper, 9th to 30th July, 1897, and 2nd August. (2.) Eeport of Select Committee on Import Duty Amendment Bill, 1897. (3.) Import Duty Amendment Bill, 1897, as passed and approved. (4.) Eeport of Dr. Caldwell as Medical Superintendent of Hospital for July and August, 1896. (5.) Eeport of Hospital Board, with report from Dr. George Craig, Medical Officer. (6.) Statement of expenditure for year ending 30th June, 1897. (7.) Petition to alter the present day observed as Sunday. I have, &c, Fbedeeick J. Moss, His Excellency the Administrator of the Government, &c, British Eesident. New Zealand.

Enclosure No. 1. Peoceedings of Cook Islands Paeliament. [Extract from Te Torea Newspaper.] Friday, 9th July, 1897. Parliament met at 10 a.m. Prayers: Taapiti. The Chairman then expressed his thanks to the House for the high honour conferred upon him in the following communication : —■ " To the Honourable Members of the Cook Islands Parliament. " Gentlemen, — " For the great honour you have conferred on me this year I could not at first find words to express my feelings. I thank you, gentlemen, for the confidence you have placed in me, and trust that, as representatives of our different districts, we will work with a will for the sole benefit, prosperity, and general good of the whole of the Cook Islands. " I would advise you, gentlemen, to look well into whatever we have to do, and take no hasty action in any matter. If any advice is needed we know where to find it. What we do not know may be explained to our satisfaction. "I am very sorry not to see our friend and brother representative, Tepou-o-te-rangi, in his usual place, through ill-health, and hope he may soon recover. " Trusting that we may be united in working for the future prosperity of our islands, and that the blessing of Heaven may be upon our endeavours, is the sincere wish of your friend, " J. M. Salmon, " M.P. for Arorangi, and Chairman, Cook Islands Parliament." The minutes of previous meeting were read and confirmed. The Federal Court Bill was read and debated, and the debate adjourned. Message No. 3, from the Chief of the Government, conveying a letter from Sir George Grey, in reply to address to him last session, was read, and was much appreciated. Hospital report from Dr. Caldwell (for July and August, 1896) was received and read. House adjourned till Tuesday, 13th July, 1897. The Federal Court Bill was again discussed, and debate further adjourned. Message No. 5, from Chief of Government, enclosing Earotonga and Atiu census, received, and ordered to be printed. Import Duty Amendment Bill: Further consideration deferred until after the report of the Committee had been received. House then adjourned till

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Friday, 16th July, 1897. Parliament met at 12 noon. All members present. Prayers. The Chairman said he was pleased to see Tepou-o-te-rangi present, and trusted he was so far recovered as to be able to resume his parliamentary duties. All the members present also welcomed their old comrade, and would like to see him able to work with them as usual. Tepou thanked the Chairman and members for their kind expressions and good feeling, but regretted that he found his health so unreliable that he could not possibly do justice to the work and the constituency he represented. He had therefore decided to vacate his seat, and had much pleasure in introducing another member in place of himself in the person of Tita, who he felt sure would prove himself a worthy representative. Before retiring he would like the House to accept the chair he was using. The chair had his own name engraved upon it, and he had great pleasure in presenting it to the Parliament. The Chairman and members expressed their keen sorrow that through continued illness Tepou had been compelled to vacate his seat, and warmly testified to the work done by him during the six years he had been a member of that Parliament, and each year holding the office of Chairman, to the great satisfaction of all. A cordial vote of thanks was then passed to Tepou for his present of the chair, members expressing a hope that the time would come when the giver might be among them and be able to use the chair himself. Tita was then welcomed, and took his seat at the table. The Federal Court Bill was then brought up for further consideration. There was a long and animated discussion on the Bill, and all who spoke were against it. Members held that the Bill would take away the mana from them. They pointed to the fact that when the British flag was hoisted by the captain of the man-of-war it was distinctly understood that their ancient laws and customs would be respected. The Bill they regarded as breaking that promise, by creating a Court over which they would have no control. The time for rising having arrived, further debate on the Bill was adjourned till Tuesday, 20th July, 1897. Parliament met at 12 noon. Prayers: Ngapo. A petition, signed by several foreign residents, was presented by Mr. Salmon, member for Arorangi, asking for the Sunday observed in Earotonga to be changed to the same as that in Tahiti. A deputation, consisting of Moate, Taapiti, and Tua, waited on Eev. Mr. Hutchin, asking how it was that the wrong day had been given them. Mr. Hutchin replied that the first missionaries on coming here had not dropped a day in crossing the 180 th meridian, and that was how the mistake had occurred.—Consideration deferred. The Federal Court Bill was again brought up. In discussing the Bill a member asked how it was that so much power was put into Mr. Moss's hands. The Chairman replied by reading " A Law to provide for the Good Government of the Cook Islands," sth June, 1891. The member for Vaipai said he considered the Bill premature—that it would be better to wait till their children, who were being educated in English, grew up. After some discussion the debate was again adjourned until Thursday, 22nd July, 1897. Parliament met at 12 noon. Prayers. The Chairman read a letter from Tepou-o-te-rangi (late Chairman of Parliament), accompanying his promised present of chair for use of Parliament. A hearty vote of thanks was passed to Tepou for his kind present. Eeport of the Select Committee on the Import Duty Act Amendment Bill was presented, and the Bill brought up for consideration. The Bill was fully discussed, and, on being put to the vote, was unanimously passed. The petition for changing the present day observed as the Sabbath was again brought up, and a good deal of discussion ensued. Ultimately it was decided that, as the present Sabbath had been observed ever since the landing of the first missionaries, it was not advisable to alter it. Message No. 4, conveying the report from the Cook Islands Hospital Board, was read, and ordered to be printed. Juries Bill was also read. Consideration deferred. Federal Court Bill: Consideration of this Bill was again deferred. The House then adjourned till Tuesday, 27th July, 1897. Parliament met at 12 noon. All members present. Prayers. The Clerk (Makea Daniela), having returned from his holiday, was welcomed by the members. A petition from several foreign residents, asking for the rejection of the Federal Court Bill, was presented by Vaikai. The Federal Court Bill was then further considered, and, on a vote being taken by the Chairman, the " Noes " were unanimous, and the Bill was thrown out accordingly.

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A letter from the British Eesident, enclosing certain papers connected with an inquiry instituted by him as to the diseases produced by intoxicating liquor among the Maori people, was received, and ordered to be printed. The House then adjourned till Friday, 30th July, 1897. Parliament met at 12 noon. All members present. Prayers. The Chairman read a letter received from the British Eesident, in reply to the Chairman's letter informing him that the Federal Court Bill had been rejected. The letter was ordered to be translated for consideration next meeting. Monday, 2nd August, 1897. The House met at 12 noon. All members present. Prayers. The translation of the British Eesident's letter, dated the 20th July, was presented to members also the translation of a letter, dated the 2nd August, from the British Eesident, informing Parliament that a petition, with thirty signatures, had been presented to him, asking for the passing of the Federal Court Bill. A letter was despatched to the British Eesident informing him that his letters were receiving due consideration. Parliament then adjourned till Friday, the 6th August, 1897.

Enclosure No. 2. Eepobt of the Select Committee on the Impobt Duty Amendment Bill. Order of Reference. —" That Messrs. J. M. Salmon, V. Moate, and Ngaropu be appointed a Select Committee to take evidence from the Hospital Board, and that they have also examined the Medical Officer." They do not consider it necessary to append the evidence to this report, as it consists largely of personal opinions as to the legality or otherwise of the regulations issued by the Board, and of reference to those previously issued by the Chief of the Government, all of which are secondary questions and of no relevacicy to the proposed amendment of the law. That the Import Duty Act of 1895 has been broken, and is still being broken, there cannot be a doubt. It provides that free treatment shall be given to all applicants within certain hours, which is not done. The Chairman of the Board states in his evidence that the Board's restriction upon the free treatment was made to provide against abuse. The Treasurer says that the treatment under the present Medical Officer is more costly than it was under that of Dr. Caldwell. No objection was made by any of the witnesses to the passage of the Bill. The chief reasons that influenced the Board in their action appear to be financial, and the questions raised are of a nature which, in the opinion of your Committee, may well be left to the decision of the public, by whom the Board is elected, and to whom it is answerable. The proposed amendment of the Act of 1895 will not abolish free treatment, but leave it to be provided or not provided by the Board in such manner and on such conditions as they may think most suitable and most likely to meet with public approval. If the Act be not amended it is clear that the Government and the Board will be placed in antagonism, which cannot fail to be injurious to the Hospital; and, taking all the circumstances into consideration, your Committee recommend that the amendment submitted to them should pass. Earotonga, 16th July, 1897. J. M. Salmon, Chairman.

Enclosure No. 3. Expoet Duty Amendment Act 1895 Amendment, 1897. Short Title.—" Import Duty Amendment Act, 1897 " (passed 22nd July, 1897). Wheeeas by "The Hospital Board Act, 1896," a Board was created for the management and control of the Cook Islands Hospital, and it is desirable that the Board should have full power to make regulations from time to time in accordance with the means at their disposal, and be subject in such matters only to the approval of the people by whom they are elected : Be it enacted by the British Eesident and the Parliament of the Cook Islands, — (1.) That section one of "The Import Duty Amendment Act, 1895," is hereby repealed, and the following substituted : " That a duty of one per centum shall be levied on all dutiable imports nto the Cook Islands, and the proceeds be applied to the maintenance of a hospital, to be known as the Cook Islands Hospital." Dated at Earotonga, this 22nd day of July, 1897. Approved. To go into operation forthwith. Fbedeeick J. Moss, British Eesident.—26th July, 1897.

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Enclosure No. 4. Message No. 2.—Cook Islands Paeliament. Dr. Caldwell, late Medical Superintendent of the Cook Islands Hospital, has sent to the Government the following report, which is now laid before Parliament for its information. The report is a continuation of that made by Dr. Caldwell to 30th June, 1896, and covers the following two months, after which the Hospital was handed over to the Board, to whom his subsequent reports have been made. Makea Takau, Ariki, Earotonga, 6th July, 1897. . Chief of the Government.

Statement of Work done in the Cook Islands Hospital in July and August, 1896.

J. E. Caldwell, M.D., Physician and Medical Superintendent of Hospital Earotonga, 26th June, 1897. during time indicated.

Enclosure No. 5. Message No. 4. The report of the Hospital Board for the quarter ending 30th June, 1897, has been received, and is transmitted herewith for the information of Parliament. No report for the months between August, 1896, and March, 1897, has been yet received. Makea Takau, Ariki, Chief of the Government.

Eepoet of the Hospital Boaed to the Chief of the Goveenment, in accordance with section 3 of the Hospital Board Act of 1895. It affords us very great pleasure in bringing before you this the first report of the work done by your Hospital Board. The Board was appointed and took office on the Ist September, 1896, consequently has only been ten months in office. They found the Hospital under the charge of Dr. J. E. Caldwell, with Miss Young as nurse. On the sth October the Board, in the meantime having carefully considered the financial position of the Hospital, resolved to give three months' notice to the doctor and the nurse that their agreement made with the Government would then cease. On the 13th of the same month a sub-committee of the Board waited upon Dr. McLennan to ascertain upon what terms he would take over the work of the Hospital, Dr. Caldwell having notified the Board that he did not intend to continue in the service of the Board after the end of January, 1897. Dr. McLennan signified his willingness to assist the Board as soon as Dr. Caldwell retired. Thus the matter remained, but prior to the end of the year Dr. McLennan left Earotonga. In December the Chairman was empowered to make inquiries in New Zealand as to the likelihood of being able to obtain a Medical Officer from there, but, owing to the very meagre salary at the disposal of the Board, he was unsuccessful. On the Ist February, 1897, it was resolved to write to Dr. Caldwell, asking him. upon what terms he would continue to act as visiting Medical Officer, but he replied that he could not accept the position. On the 29th March last a special meeting of the Board was held to meet Dr. G. Craig, who had a few days previously arrived from New Zealand, with a view of entering into an engagement with him. Dr. Craig laid before the Board a large number of testimonials and certificates of qualification. Among the former were recommendations from the New Zealand Government Inspector of Hospitals and Lunacy, which stated that Dr. Craig had been in the employ of the Government named, and had given the greatest satisfaction; from the Lecturer in Chemistry and Examiner in Chemistry at Edinburgh ; the Medical Officer of Health at the same place ; and others, all showing that Dr. Craig had held various offices as a medical man with satisfaction to all. He had held the position of Demonstrator of Anatomy in the town named, and was an eminent pathologist. The Board, in view of these most satisfactory recommendations, decided to engage Dr. Craig as Medical Superintendent to the Cook Islands Hospital for a term of twelve months from the Ist April, 1897, the remuneration being at the rate of £180 sterling per annum. For that amount Dr. Craig was to

1896. O aj M 2 "5 o m a §Wfg *W 03 o-g - j. PI CD III I* K P CD O 05 s s <D o 1-s'f o n <d g <" P. S a^ «> a © o Is- — w O -w a S|te 3 ffi »s July August 23 15 i 896 405 86 47 935 365 112 62 1,831 770 Totals 38 1,301 133 1,300 174 2,601

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provide a suitable nurse, medicines, food, and attendance to all patients at the Hospital, as required. Dr. Craig, in accepting the position, informed the Board that they would, in addition, have the benefit of the advice of his brother, who also was a member of the medical profession. The Board, in securing the services of Dr. Craig, congratulated themselves upon at last having obtained the services of a thoroughly qualified officer, and the Board trust their action will meet with your Government's approval. On the 7th April a new set of rules for the guidance of the Medical Officer, patients, and visitors were adopted, and herewith is attached a copy. The Board since taking office have had very hard uphill work in keeping the Hospital in anything like the condition it should be, but they are pleased to be able to inform you that they believe they have been successful. Dr. Craig in his position is giving the very greatest satisfaction —a fact that is very pleasing to your Board. During our term of office several necessary works have been carried out, but there are many other very pressing works to be done, but want of funds considerably cripples the Board ; and to remedy this your Board would ask that an appeal be made to Parliament to substantially increase the present hospital revenue. Herewith are attached report of the Medical Officer, also statement of receipts and disbursements and assets of the Board up to the end of June, 1897. The Board, in conclusion, wish to place on record the very valuable aid given to them by Messrs. Donald and Edenborough, the Union Steamship Company, the Eev. Mr. Hutchin, and the Eoman Catholic Mission, and others, C Kohn, Chairman, Cook Islands Hospital Board. Cook Islands Hospital, Earotonga, Ist July, 1897.

The following is an abstract of the accounts appended to the report:— Receipts. £ s. a. From the Government (eight months) ... ... ... ... 120 0 0 Donations from Eoman Catholic Mission ... ... ... 250 Donations from Messrs. Donald and Edenborough ... ... 5 6 8 Donations from Union Steamship Company (Limited) ... ... 2 0 0 £129 11 8 Payments. To Dr. Caldwell, salary, September, 1896, to February, 1897 ... 37 10 0 Miss Young, nurse ... ... ... ... ... 12 10 0 Incidental expenses, September, 1896, to February, 1897 ... 12 12 6 Labour, September, 1896, to February, 1897 ... ... ... 7 10 0 Firewood, &c. ... ... ... ... ... ... 1 12 0 Donald and Edenborough ... ... ... ... ... 100 Te Torea ... ... ... ... ... ... 0 8 0 V. Estall ... ... ... ... ... ... 0 16 0 Ah Sin .. ... ... ... ... ... ... 0 9 0 Cook Islands Trading Company ... .. ... ... 15 0 6 Earotonga Coach-factory ... ... ... ... ... 4 10 0 Dr. Craig ... ... ... ... ... ... 30 0 0 £123 18 0 Balance in hand ... ... ... ... £5 13 8

Medical Officee's Eepoet for Quarter ending 30th|June, 1897. Me. Chaibman and Gentlemen, — I have the honour to submit to you an official report of the progress of this institution,'and the work carried on during the past three months. On taking charge as Medical Superintendent I found that the equipment of the building was very deficient. Many of the deficiencies have been remedied. The present Board have supplied beds and bedding, kitchen utensils, and a few other arrangements for the ordinary comfort of patients. Purely medical and surgical appliances have been supplied by me. The building, though substantial, is in many respects unsuitable for hospital purposes. There is no drain. The two large rooms communicate directly with each other, and, as one has to be used as a female and the other as a male ward, much inconvenience has been caused by visitors passing through. The institution falls very far short of a modern hospital by failing to supply nursing. Skilled nursing is an essential part of any hospital, however limited the number of patients. I feel that the patients treated during the past three months would have been more comfortable had there been a trained nurse to attend to them, and cases might arise where the want of skilled nursing would make itself painfully felt. In giving the institution the name of " hospital " a wrong impression might be conveyed to the public here and elsewhere, as the funds at the command of the Board are barely sufficient to provide skilled nursing.

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With the limited funds granted by the Government it is quite impossible to conduct a hospital with credit to the Board or the Medical Officer. From the number and nature of the eases treated it is evident that a small hospital is a necessity, especially for the native population, who cannot get proper feeding and attention at their own homes. The first step towards securing a hospital worthy of the name would, in my opinion, be the acquirement of better accommodation, and the engaging of a nurse-matron and assistant nurse. Although quite prepared to carry out my agreement with the Board to the end of nay stipulated term, I feel it my duty to point out that under the present system there must be some imperfections. I append a table of the number of patients treated during the last three months, with results : — Indoor Patients.— -Males, 7 ; females, 2. Discharged : Males, 6; female, 1. Cured : Males, 5 ; female, 1. Incurable (in statu quo) : Male, 1. At present in Hospital: Male, 1; female, 1. In the outdoor patient department 154 cases have been treated. In concluding my report, I desire to thank the members of the Board for the kindly interest they have taken in the work, both as a body and individually. I have, &c, George Craig, M.8., CM. (Edin.).

Enclosure No. 6. Cook Islands Parliament. —Statement of Expenditure for Year ending 30th June, 1897.

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'ote. Service. Voted. Ixpem 'nexpeni £ s. d. £ s. d. £ s. d Fixed appropriations — Payment of members Subsidies to Local Councils— Atiu, Mitiaro, and Mauke Aitutaki Mangaia Earotonga 54 0 0 45 0 0 45 0 0 45 0 0 45 0 0 54 45 45 45 45 0 0 0 0 0 0 0 0 0 0 Collection of revenue — Collector, Earotonga Eevenue Officer, Aitutaki „ Mangaia „ Atiu „ Mauke „ Mitiaro „ Mamae 234 0 0 30 0 0 7 10 0 6 0 0 3 0 0 3 0 0 3 0 0 3 0 0 *■ ■ 30 0 7 10 6 0 3 0 3 0 3 0 3 0 0 0 0 0 0 0 0 55 10 0 Federal Court: Chief Judge Post OfficeChief Postmaster, Earotonga... Clerical assistance ... Postal delivery, Earotonga ... Postmaster, Atiu „ Mangaia „ Aitutaki Postal delivery, Atiu, Mangaia, and Aitutaki Three years' carriage ocean mails 18 0 0 3 4 18 0 0 15 0 0 9 0 0 15 0 0 1 10 0 1 10 0 1 10 0 12 0 0 15 0 2 17 7 10 1 10 1 10 1 10 12 0 0 6 0 0 0 0 0 33 10 0 34 14 8 76 12 2 12 7 10 5 6 7 8 9 10 11 Shipping-master, Earotonga Paymaster and Clerk to Parliament Auditor Expenses, Chief of Government ... Interpreting and clerical assistance General contingencies ... Liabilities, 1895-96 Ngatipa— For buildings, &c.— Transfer from Vote 20 ... Act 4, 1892 Printing, stationery, &c. Liabilities, 1895-96 Compiling and printing laws of Federation and various islands 12 0 0 30 0 0 15 0 0 30 0 0 45 0 0 90 0 0 25 2 0 ) 12 0 30 0 15 0 30 0 40 6 99 15 0 0 0 0 5 6 4 13 15 6 7 6 54 14 3 4 5 5 90 0 0 25 0 0 50 0 0 1 I J 58 19 61 1 8 9 12 103 18 3

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Cook Islands Parliament. —Statement of Expenditure for Year ending 30th June, 1897— contd.

Makea Daniela, Paymaster. I have examined the above accounts, and compared them with the vouchers, and hereby certify that they are correct.—J. Scard, Auditor. Barotonga, 2nd July, 1897.

Enclosure No. 7. Petition fob the Obsebvance of the Peopee Sunday in the Cook Islands. To the Chairman and members of the Cook Islands Parliament, now assembled. We the undersigned petitioners, for and on behalf of ourselves, and at the request of many of the residents of the Cook Islands, do beg humbly to put before your honourable Parliament the following PS 1 We would respectfully request that your Parliament now assembled would deliberate and adjust with all due care the day for the observance of Sunday in the Cook Islands. We would respectfully bring to your notice that at the present time the day appointed as Sunday is an error. As the Cook Islands are in west longitude, the present Sunday as observed m these islands is, in truth, Saturday, consequently the present Monday should, in truth, be Sunday ._ It might be well to point out that during the earlier years of the introduction of Christianity in the Pacific Tahiti, Samoa, and other islands had fallen into the same error as the Cook Islands, but as the course of civilisation advanced it became necessary that the correct day should be kept, and the day was changed accordingly. . . It may also have been observed that all of Her Majesty's ships visiting these islands keep the Cook Islands Monday as the correct Sunday, as is obligatory in west longitude. This custom leaves the Cook Islands the only Christian country in the world (with minor exceptions) m which the observance of Sunday in kept on Saturday. And your petitioners would now humbly pray that your honourable Parliament will, during this session give due consideration to this grave question, and enact that the correct day should be observed as Sunday in the Cook Islands, so that we are not isolated in this observance from the rest of the civilised world. And your petitioners will ever pray, &c. J Father Bernardme, S.S.C.S. J. Banks. Frank Murray Gelling. Emil Piltz. G. Montiero. Eobert F. Norman. J. Engelke. Steve Savage Saville. A.H.Brown. Peyrous. William James Brewer. F. Goodwin. C Kohn. Thomas Harries. H. C. Eover. Eobert Thomas Jessop. John Warren Wilson. Charles Augustus Avenell. W. Fitzgerald. J. Scard. Van Estall. A. yon Hoff. G. Broun. William Taylor. C. Benny. William Dodge.

4—A. 4.

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Vote. Service. Ixpem rnexpem 13 14 15 16 17 Passages of members .. Expenses of Parliament Maintenance of children at Tereora School Subsidies in aid of Arikis' Courts and police Printing-paper and material for printing laws Care of insane... Hospital Eent to 1st October, 1896, and other liabilities School-fittings, &c.— Liability, 1895-96 ... £162 0 0 For new school ... 60 0 0 £ s. 13 10 20 0 125 0 129 0 20 0 d. 0 0 0 0 0 £ s. 13 10 20 0 121 5 129 0 18 13 d. 0 0 0 0 4 £ s. 3 15 d. 0 1 6 8 18 19 20 50 0 190 0 25 0 0 0 0 15 15 180 0 15 6 0 0 3 34 5 10 0 9 13 0 0 9 220 0 0 Less transfer to Vote No. 11 54 14 3 Subsidies, Britannia Wharf and sheds Post Office : Eent due three years Victoria Eoad to Old Eoad, Ngatipa Unauthorised (Act 4, 1892)— Voted £120 0 0 Less transfer to Vote No. 11 4 5 5 167 5 50 0 27 0 40 0 9 0 0 0 167 5 50 0 27 0 36 6 9 0 0 4 21 22 23 24 3 13 8 115 14 7 106 3 1 9 11 6 1,862 12 0 208 11 9

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No. 6. Mr. F. J. Moss to His Excellency the Govebnob. Sib, — Cook Islands, British Eesidency, Earotonga, 21st August, 1897. At the request of Dr. George Craig, I have the honour to enclose to your Excellency the copy of a letter sent by him to me on the 16th instant (with the said copy in his writing for the purpose of transmission), and in which Dr. Craig makes certain statements as to " the disgracefully drunken habits of the natives," " the sale of liquor permits by the Arikis (the chiefs) to all-comers," " the open and illicit sale of liquor to natives and Europeons at so much money per drink," and "the poison so constantly sold to the unsophisticated native as rum." These statements are more or less founded on fact, as your Excellency will have already learned from my despatch of the 25th July (No. 8/97). As put by Dr. Craig, I have no hesitation in describing them as gross exaggerations. My attention was first drawn to an evident relaxation of the law by passing several tipsy natives returning from the May mission meeting at Arorangi, which was held this year on the Queen's Birthday. I at once wrote to the Ariki of Arorangi expressing a hope that the men would be fined, and be refused further permits for liquor till they have proved themselves fit to have them. Since then feasts of various kinds have been frequent and upsetting, especially those connected with a visit from the young representative of Tahitian Eoyalty, who is still in Earotonga with his suite, has been received with a round of festivity by the Maoris, and feasted them bountifully in return. The time selected by Dr. Craig for his comments must therefore be regarded as exceptional. I have written at different times to Arikis and Judges on this subject, but can only hope to see a remedy provided when the Earotonga Council meets. The liquor-law is in its hands, and not in the hands of the Federal Parliament. The issue of permits for natives by the Arikis is the weak point in the law. They depute some one to sign for them, and the agent is almost as a matter of course the Judge of the Arikis' Court, an hereditary officer of high rank, and by old customs the Arikis' " mouthpiece." Great care will have to be taken in effecting a change, or we shall only reproduce the bribery and corruption which prevailed prior to the initiation of the present form of government in 1891, and in face of which the open charging of a recognised and fixed fee, however reprehensible in itself, is a clear advance. It is not yet four years since Judges and police—the latter an extremely numerous body, and, with the Judges, composed exclusively of mission church members—depended entirely for their pay on the fines they could extort by unceasing espionage, night and day, in the attempt to make the people moral and pure by compulsion of law. Years will be required to wipe away the effects of this pernicious system, to which my early despatches drew special notice. A gradual improvement is all that the most sanguine could hope. These circumstances have to be borne in mind, and it is charitable to conclude that Dr. Craig, who has only been here four or five months, is ignorant of their full effect. The peculiarity of his present complaint is that I find the Arikis and Judges have been led to believe that it is against the British Eesident and the Licensing Officer, and a matter with which they have no concern. I enclose a circular for your Excellency's information which I have been obliged to address to them on this point. In further explanation of Dr. Craig's action, I have to state that on his arrival here (29th March) the Hospital Board arranged with bim to take the hospital revenue, and practically to farm the institution, providing for the nursing, feeding, and attention to the patients at his own cost. This led to violation of the law, and brought the Government (and through it the British Eesident) and the Board into collision, as reported in my despatch of the 22nd July (No. 7/97). Under this arrangement the Hospital has abolished the hour of free treatment to all-comers previously required by law, and become so unpopular that it has dwindled to a single patient, while the term "outpatients," used in the hospital reports, means only those who are attended in Dr. Craig's private practice in the usual way. Why Dr. Craig should have made this matter personal between himself and the British Eesident I cannot say, but that he has done so is a matter of notoriety here. I have always regarded him as skilful in his profession, and welcomed him warmly as a very desirable addition to our small society. He has, however, constituted himself the most active member of the small band whom the British Eesident has at various times been compelled to cross, and who devote themselves to poisoning the minds of the Maoris, and obstructing the government of the islands. In proof I need only mention that the mischieviously worded petition against the Federal Court Bill was presented to the Cook Islands Parliament in Dr. Craig's handwriting, and had been for some days quietly —almost secretly —taken round by a person employed by him to obtain the'few signatures attached to it when presented. . I have, &c, Fbedeeick J. Moss, British Eesident. His Excellency the Administrator of the Government, &c, New Zealand.

Enclosure No. 1. Sic, — Earotonga, 16th August, 1897. In my report of the 10th July, on the diseases due to alcohol among the natives of Earotonga, there occurs the statement that there are special facilities and encouragement given in this community for the liquor traffic among natives.

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In explanation, I desire to state that the encouragement lies in the fact that the chiefs have a direct interest in the Sale of liquor to natives, inasmuch as they (the chiefs) sell permits to allcomers. The facilities are that certain individuals openly and illicitly sell liquor to natives and Europeans, charging so much money per drink. No one can go about Earotonga for a week without noticing the disgracefully drunken habits of the natives. It is impossible to walk 500 yards any evening in the week without meeting at least half a dozen natives the worse for liquor, sometimes considerably more. This state of matters cannot be attributed to the milder beverages of native manufacture, which are to be ranked with such an English beverage as cider—wholesome, and, even in excessive quantities, much less injurious than the poison that is constantly sold here to the unsophisticated native as rum. Kindly forward a copy of this letter to the New Zealand Government in your next despatch. I have, &c, F. J. Moss, British Eesident. Geoege Ceaig, M.8., CM. (Edin).

Enclosure No. 2. To the Arikis of Earotonga, of Avarua, of Arorangi, and of Takitumu. I send herewith a letter which Dr. Craig has published in Te Torea of Saturday, the 21st August. I hear that you have been told this letter does not concern you, but that it is my affair and that of Mr. Gamier (the Licensing Officer). Be not deceived. If these statements are true it is the Arikis, the Arikis' Courts, and the police that will be blamed, and the question will bo asked, Of what use are they, and why cumber they the ground (Luke, 13, 7)? My advice to you, therefore, is to ask Dr. Craig quickly where and how he got the information, so that you may see whether all or what part of it is true, and let me know, that I may write to the Governor of New Zealand. Enough. From your friend, Fbedeeick J. Moss, British Eesident.

Db. Cbaig and the Liquob Tbaffic. Sic, — Earotonga, 14th August, 1897. In obedience to a request from the Clerk of the Government that I be asked to furnish an explanation of a clause in my report on the diseases due to alcohol in Earotonga—viz., " that there are special facilities and encouragement given for the liquor traffic among natives " —I have been instructed to give some explanation. When I wrote the report I did not think any explanation would be necessary, as the facts I stated are generally known. The encouragement I refer to lies in the fact that the chiefs have a direct interest in the sale of liquor to the natives. I allude to the open and indiscriminate sale of permits. The facilities are well known, but I suppose I am expected to mention them. Certain individuals openly retail liquor daily to all-comers, charging so much money per drink without any police interference. No one could go about for a week in Earotonga without noticing the disgracefully drunken habits of the natives. It is a rare thing to walk 500 yards any evening in the week without meeting half a dozen drunken natives, sometimes considerably more. As long as these facilities for traffic in imported spirits are allowed to exist it is impossible to attribute any of the blame for the drunken habits of the natives to the much less potent beverages of native manufacture. These are to be ranked with such an English beverage as cider—wholesome, and, even in excessive quantities, doing infinitely less harm than the poison that is retailed to the unsophisticated natives as rum. Kindly forward a copy of this letter in your next despatch to the New Zealand Government. I have, &c, F. J. Moss, Esq., British Eesident. Geoege Cbaig, M.8., CM. (Edin.).

No. 7. His Excellency the Governor to Mr. F. J. Moss. Sir, — Government House, Wellington, 15th September, 1897. I have the honour to acknowledge the receipt of your despatch No. 10/97 (with nine No. 3. enclosures), dated the 9th August, 1897. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. Eanpurly.

No. 8. His Excellency the Govebnob to Mr. F. J. Moss. Sib, — Government House, Wellington, 15th September, 1897. I have the honour to acknowledge the receipt of your despatch No. 12/97 (with seven No. 5. enclosures), dated the 10th August, 1897. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga, Eanfuely.

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No. 9. His Excellency the Govebnob to Mr. F. J. Moss. Sic, Government House, Wellington, 15th September, 1897. I have the honour to acknowledge the receipt of your despatches No. 15/97, dated the 21st August, and No. 11/97, dated the 10th August, 1897 (with six enclosures), which I have duly laid before my Ministers. The course you have adopted meets with their approval. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. Eanfuely.

No. 10. His Excellency the Govebnob to Mr. F. J. Moss. Sib, — Government House, Wellington, 15th September, 1897. I have the honour to acknowledge receipt of your despatch No. 13/97 (with two enclosures), dated the 21st August, 1897, which I have laid before my Ministers. They are quite satisfied with your explanation. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. Eanfuely.

No. 6.

No. 11. Mr. F. J. Moss to His Excellency the Govebnob. My Loed, — Cook Islands, British Eesidency, Earotonga, 17th September, 1897. I have the honour to report that the Earotonga Local Council was opened for its annual session on the 31st August, when the enclosed message from the Arikis (the Government) was presented. Your Excellency will observe that the subjects touched upon are important, and likely to develop much difference of opinion. The Council adjourned for a month, for their consideration in the several districts of the island. I have, &c, Fbedeeick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

Enclosures. From the Abikis (the Government of Earotonga) to the Eaeotonga Council. We lay before you, in this our opening message for the present session, a letter from the British Eesident sent to us respecting the liquor-laws and the public schools. In laying that letter before you, we urge the necessity of your giving these questions the most full and careful consideration. Be not in haste over them, especially the public schools, which will affect not only the children now growing up, but those who are to come for generations after them. Make full inquiry, and, when you have decided what you think best to be done, let us know, and we will say whether we agree or do not agree with your views. The Rarotonga Council. As we have not yet been able to get the laws printed, it will be well to remind all the people of what the Council consists. This is the law which was passed on the 22nd September, 1893. The Council is divided into two parts—the Council of Arikis and that of the people. You are the Council of the people, and when you have agreed to anything it is to be brought to us. If we agree also, and the British Eesident approves, then it is law. If we do not agree, then it falls to the ground. The Government. The Arikis of Earotonga are not only a part of the Council, they are also the Government. As the Government we now speak to you, and say what has been done during the past year; and send you the British Eesident's letter about the liquor and the schools, for your consideration. The Revenue for the year ending the 30th June, 1897, has been £763 ss. Id., namely:— £ s. d. £ s. d. Subsidies from Federal Government ... ... ... 102 0 0 Permits for liquor— Maoris ... ... ... 192 2 0 Others ... ... ... ... ... 210 16 5 402 18 5 Eoad-tax— Avarua ... ... ... .. ... 13 8 4 Arorangi ... ... ... ... ... 0 0 0 Takitumu ... ... ... ... ... 0 0 0 13 8 4

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A.-1., 1898, enclosure to No. 9; No. i

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Dog-tax— Avarua ... ... ... .... ... 15 13 10 Arorangi ... ... ... ... .. 067 Takitumu ... ... ... ... ... 0 0 0 16 0 5 Court-fees— Avarua ... ... ... ... ... 68 0 0 Arorangi ... ... ... ... ... 14 0 0 Takitumu ... ... .. ... ... 11 15 7 93 15 7 Education rate— Avarua ... ... ... ... ... 81 4 6 Arorangi ... ... ... ... ... 21 17 5 Takitumu (for two years) ... ... ... 32 0 5 135 2 4 763 5 1 Add to this the balance in hand on the Ist July, 1897 ... ... 75 12 4 Total receipts ... ... ... £838 17 5 Expenditure, The expenditure for the year ending the 30th June, has been £632 Is. 6d., namely :— £ s. d. Public schools ... ... ... ... ... ... 172 10 0 Arikis'Courts—Judges and police ... ... ... ... 296 10 0 Expenses of the Council ... ... ... ... ... 9 10 0 Eoads and Eoad Inspector ... ... ... ... ... 65 0 0 Printing, stationery, interpreting, and general contingencies ... 60 13 6 Eent of bond ... ... ... ... ... ... 580 Auditing and departmental ... ... ... ... .. 22 10 0 £632 1 6 Leaving a balance on the Ist July, 1897, of £206 15s. lid., from which must be deducted outstanding liabilities not exceeding £50. Full accounts will, as usual, be laid before you. We do not think it necessary to say more at present. The schools and the liquor-law are all which we bring before you for consideration. In dealing with them, and all other matters for the good of Earotonga, we pray that God will give you wisdom, and His blessing on your work. For the Government, Earotonga, 31st August, 1897. Tionomana, Ariki.

From the Beitish Eesident to the Abikis (the Government of Earotonga). Salutations ! The Earotonga Council is to meet on Tuesday, 31st instant, and there are two things which I suggest you should specially bring before them —the liquor-law and the public schools. The Liquor-law has now been seven years in existence. For a long time it worked well, but in the last few months there has been great relaxation in its administration. My instructions on coming here were to report from time to time respecting the liquor-law, and in doing so some months ago I stated that it was my intention to make proposals for amendment when the Council met. The weak points are, — (1.) That the police let the people go about tipsy in the street and roads without bringing them before the Judge. (2.) That the liquor permits to Maoris are issued in the name of the Arikis by persons appointed to act for them, and those persons, being unpaid, have gradually adopted the pernicious practice of charging for each permit. (3.) The means of enforcing prohibition orders are very deficient. (4.) There is no provision to prevent the sale of bad and poisonous liquor. (1.) As to the police, the Judges are their heads, and the only people who can keep them up to the mark. (2.) As to liquor permits, a sum should be voted for the Arikis to pay monthly the persons who sign for them, and those persons should be severely punished if they then take other money for issuing permits as well. (3.) To enforce prohibition orders the long-talked-of lock-up should be finished. (4.) People should be punished for selling bad liquor. Some of the rum sold here I have Sent to Auckland for analysis, and hoped to have had the analysis back before this, but it has not yet come. Eeturning from the May mission feast at Arorangi on Queen's Birthday, I first noticed the cvi" dent increase of tipsy Maoris walking in the road, and at once wrote to the Ariki of Arorangi, hoping that the men would be fined, and no more permits issued to them till they were fit to be trusted. I have written since to others, and it is time that the law should be altered, especially as to the issue of Arikis' permits. The law about " bush beer " should also be reconsidered. The secrecy with which it is now made is probably doing more harm than open manufacture could do.

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The Public Schools. We have arrived at a point in connection with public schools when change of some kind is imperative. The two great difficulties are the apathy of parents as to the attendance of their children and the insufficiency of the funds at our command to obtain the requisite supply of teachers. Thanks to the London Missionary Society, we have Miss Sievewright in Avarua, and, thanks to the Adventists' Mission, we have Mr. Eice in Arorangi; but the Takitumu district has never been properly supplied. Their school was for a long time absolutely closed, and the teacher now in charge is only temporarily appointed. The difficulties are plain. The question is how best to meet them with an eye to the paramount object —the education in English of the children. The teachers in Avarua and Arorangi have proved themselves able and zealous, and the irregular attendance of the children is no fault of theirs. In a paper which will be laid before you the teachers suggest a truant law, but, where the great majority of children are truants, could such a law be made effective ? Failing that, would it be possible, by forming local committees, to induce the parents to take a more active interest in the schools ? Again, as to the money question, can we solve it by making a charge for each child in addition to the tax already paid by the parents, and how much should it be ? If none of these things can be done there is but one other course—to admit that Earotonga is not yet ripe for a free public school system, to enlist in behalf of secular education the services and influence of the churches, and to encourage any one desiring to open a school by aiding all alike with a fixed subsidy for the average attendance during the week or month, as the case may bo. Such a subsidy would, of course, be conditional on the schools submitting to periodical examinations, and to such inspection as the Government might think necessary, as well as on their making provision for proper teaching in the English tongue. One such school is already subsidised by the Federal Government, the boarding- and training-school of the London Missionary Society at Tereora. The success of this school in keeping up its numbers and in the teaching of the children is highly gratifying. The question is how far the same principle could be successfully applied to the ordinary day-schools on which so many of the children must depend. Personally I am very reluctant to see the education taken out of the hands of the people themselves and transferred to the churches. To see the children of all creeds growing up together as citizens of a common country is, to my mind, an immense gain over a system that would bring them up in different camps, and tend to create jealousies and ill-feeling. But the paramount question is the secular teaching of the children in the English tongue. That consideration must take precedence of all others. I suggest the subject as one which the Arikis should bring before the Earotonga Council, and, when the views of the Council are known, that the Arikis should have such measures framed as they may consider most advisable. The following is the education rate collected for the year ending 30th June, 1897 : — £ s. d. Avarua ... ... ... ... ... ... ... 81 4 6 Arorangi ... ... ... ... ... ... ... 21 17 5 Takitumu ... ... ... ... ... ... ... 32 0 5 £135 2 4 I am, your friend, Fbedeeick J. Moss, Earotonga, 26th August, 3897. British Eesident.

Eepoet feom the Teachebs of Public Schools. Whereas experience has proved that it is impossible to determine beforehand the best time for the school vacations to accommodate the various districts, therefore we would respectfully recommend that section 6 of the School Eegulations of Earotonga of Bth November, 1895, as amended 2nd December, 1896, be amended to read as follows :— " The following are to be the regular holidays in each year : 4th April—Anniversary of the declaration of the British Protectorate in 1891; sth June—Anniversary of the adoption of the Federal Constitution in 1891; 27th October—Anniversary of the hoisting of the British flag in 1888; and such other days as the teachers may arrange, with the approval of the Ariki of the district." Whereas children are detained or suffered to remain away from school till the attendance is often practically nothing, and because of which the public school system is in imminent danger of being counted a failure, not from unfaithfulness on the part of teachers, or because the system is at fault, but because the school is not supported and the teachers have no power whatever to back them in securing attendance and enforcing discipline; also, because parents and guardians generally, not appreciating as yet the value of education, allow the children to come or go at their option, or detain them for the most trifling causes : Therefore we would further recommend that a new section be added to the present School Eegulations of Earotonga, to read as follows :— " (a.) No child of school-age, or who attends by special permit, shall absent himself or be detained from school without first obtaining the written consent of the head teacher and the approval of the Ariki. " (b.) For every day that a scholar is absent without said consent he pay a fine of 2s. " (o.) For serious sickness or emergencies the head teacher may, with consent of the Ariki, waive the penalty, provided the same shall be promptly reported within that school-week. " (d.) This section will not interfere with those who are in actual attendance upon any private school, or prevent any from leaving the public for a private school, or from cancelling special permit

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attendance, providing that such shall first obtain a written certificate from the head teacher that all dues are paid and that he is honourably discharged. " (c.) The head teacher shall keep a faithful record of all who are granted leave of absence, with the reason therefor. " (/.) The head teacher shall report to the Clerk of the Government at least once a month, giving a list of all those who are subject to fine, with the amount of the fine opposite each name. " (g.) All fines are due, and the Clerk of the Government shall take the necessary steps to collect the same, within the month. " (h.) All moneys thus collected, except the usual commission, shall be paid into the general Public School Fund of Earotonga." Eespectfully submitted, E. A. SIEVEWEIGHT' J. D. Eice Teachers. Earotonga, 2nd August, 1897. H. Ellis

No. 12. His Excellency the Govebnob to Mr. F. J. Moss. Sic, — Government House, Wellington, 7th October, 1897. I have the honour to acknowledge the receipt of your despatch No. 18/97, dated the No. 11, 17th September, 1897 (and containing an enclosure), relative to the opening of the Earotonga Local Council. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. Eanfuely.

No. 13. Mr. F. J. Moss to His Excellency the Govebnob. My Lobd, — Cook Islands, British Eesidency, Earotonga, 14th October, 1897. I have the honour to acknowledge the receipt of your Excellency's despatches (five), dated the 15th September, and to express my respectful appreciation of the promptitude with which my return regarding the Federal Court Bill and my explanation as to alleged gross abuses in the administration of the liquor-law have been approved. In my somewhat isolated position the promptitude is doubly acceptable. I have, &c, Fbedeeick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

No. 14. Mr. F. J. Moss to His Excellency the Govebnob. My Lobd, — Cook Islands, British Eesidency, Earotonga, 14th October, 1897. I have the honour to inform your Excellency that the Parliament of the Cook Islands held its last sitting on the 27th September, when the two members that remained adjourned to the sth December. The members from the other islands are not likely to attend, and in any case the proposed meeting on the sth December will be illegal, and need not be taken into account. In continuation of parliamentary papers already sent I enclose, — (1.) Statement of revenue, 1896-97. (2.) Statement of account, 1896-97. (3.) Statement of imports, 1896-97. (4.) Statement of exports, 1896-97. (5.) Statement of shipping, 1896-97. (6.) Eeport on inquiry into certain charges against the local Government of Mangaia (made by Messrs. Craig and Ward, traders, of Mangaia). I also enclose, — (7.) Proclamation made by me on the 29th September, with estimates (as passed by the Parliament on the 24th August) and minutes of proceedings of Parliament from the 26th August to the 27th September attached to said Proclamation. With regard to the Proclamation, as Parliament adjourned after declining to pass the Appropriation Act for 1897-98, it appeared necessary to take upon myself the responsibility of temporarily administering the expenditure in accordance with the estimates, and that I could do so without in any way varying the simple Protectorate that had been declared in 1891. It was necessary to act promptly and in the absence of legal advice, but I trust that the view taken by me will be found correct, and the action meet with your Excellency's approval. Affairs can now go on regularly till the Parliament meets again in July, 1898, and ample time be taken to decide upon the course to be pursued. Each separate island has its own local Government, and administers affairs in its own way, subject only to my approval of any laws which may be passed by its Council. I have, &c, Fbedeeick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

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Enclosure No. 1. Statement of Eevenue for the Year ending 30th June, 1897. £ s. d. Import duty ... ... ... ... ... ... 919 9 8 Post Office ... ... ... ... ... ... 120 5 3 Miscellaneous ... ... ... ... ... ... 6 10 0 1,046 4 11 One per cent, hospital duty... ... ... ... ... 183 17 10 1,230 2 9 Balance on hand Ist July, 1896 ... ... ... ... 481 7 11 £1,711 10 8 J. H. Gaenieb, Collector.

Enclosure No. 2. Statement of Account for the Year ending 30th June, 1897. Receipts. £ s . d. 1896 —July 1. Balance on hand, as per account ... ... 481 7 11 1897 —June 30. Eevenue, as per account from Ist July, 1896, to date ... ... ... ... ... 1,230 2 9 1,711 10 8 Expenditure. 1897—June 30. Expenditure from Ist July, 1896, to 30th June, 1897, as per statement ... ... ... 1,651 0 3 Balance on hand Ist July, 1897 ... ... ... ... £57 10 5 Makea Daniela, Paymaster. I have examined the above accounts, and compared them with the vouchers, and hereby certify that they are correct. —J. Scaed, Auditor.

Enclosure No. 3. Imports into the Cook Islands for the Year ending 30th June, 1897.

J. H. Garnier, Collector.

Article. From Auckland, N.Z. From Tahiti. From San Francisco. Total Imports. Animals Clothing Piece and fancy goods Provisions, salted and preserved Breadstuff's General groceries Spirits ... Wines ... £ s. d. 202 19 7 734 16 0 5,618 12 11 2,697 11 6 1,220 18 2 2,682 9 8 477 4 8 36 16 10 102 2 2 1,547 6 11 £ s. d. 66 10 0 54 9 8 1,456 10 9 222 19 4 800 7 8 204 17 6 70 8 8 33 16 4 8 19 10 304 6 11 £ s. d. 15 1 5 23 5 0 2 5 1 4 18 3 33 17 2 £ s. a. 269 9 7 804 7 1 7,098 8 8 2,922 15 11 2,026 4 1 2,921 4 4 547 13 4 70 13 2 111 2 0 1,886 5 10 Beer Timber, manufactured and unmanufactured Hardware Tobacco Other articles Material for wharf, &c, U.S.S. Co. ... 1,855 4 6 431 12 0 2,065 9 1 745 0 0 389 14 2 136 4 3 288 7 5 34 12 0 48 8 0 2,293 6 8 567 16 3 2,364 8 1 745 0 0 10 11 7 20,418 4 0 4,037 12 6 172 18 6 24,628 15 0 Specie from Auckland Tahiti, Chili doll; trs $20,433'26 = £450 12,043 !2,493

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Enclosure No. 4. Exports of Native Produce from the Cook Islands during the Year ending 30th June, 1897.

£ s. d. Specie: Chilian dollars exported to Tahiti ... $21,619-10 = 2,161 18 2 „ British coin exported to Tahiti .. ... ... 23 0 0 £2,184 18 2

Produce of Other Islands exported.

Merchandise imported into the Cook Islands and exported beyond the Federation.

J. H. Garnier, Collector.

5—A. 4.

To Auckland, New Zealand. To Tahiti. Total Exports. Artioles. Quantity. Value. Quantity. Value. Quantity. Value. Bananas, bunches ... „ bndls., dried Cocoanuts ... Coffee, husks, lb. „ cleaned, lb. ... Copra, lb. ... Cotton, ginned, lb. ... Fungus, lb. Limes, cases Limejuice, gal. Mangoes, cases Oranges, cases Pineapples... Other articles 4,622 744 43,360 3,298 104,397 1,360,136 20,680 253 27 50,362 58 18,618 35,988 £ s. d. 169 12 9 11 7 6 82 12 1 £ s. d. 4,622 744 43,360 j 4,398 1 138,592 1,360,136 20,680 253 27 50,362 58 18,618 35,988 £ s. d. 169 12 9 11 7 6 82 12 1 J 3,232 3 6 1 1,100 34,195 } 1,232 17 4 | 4,465 0 10 4,927 4 7 371 4 11 2 12 8 3 15 0 1,335 8 4 7 19 6 3,127 12 10 217 9 3 44 8 2 4,927 4 7 371 4 11 2 12 8 3 15 0 1,335 8 4 7 19 6 3,127 12 10 217 9 3 44 8 2 13,533 11 1 1,232 17 i\ 14,766 8 5

Articles. Tc Quantity. To Auckland. o A Value. Pearl-shell, lb. Copra, lb. 36,114 45,457 £ s. 1,259 9 170 12 d. 9 6 1,430 2 3

After Duty paid. In Bond. Total. 'o Tahiti... 'o Auckland 'o Palmerston, Penrhyn, Neue, Mauihiki laterial for wharf and sheds, Earotonga £ s. d. 58 18 4 723 13 4 £ s. a. 93 17 2 1,069 13 0 3,284 16 8 745 0 0 £ s. d. 152 15 6 1,069 13 0 4,008 10 0 745 0 0 782 11 8 5,193 6 10 5,975 18 6

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Enclosure No. 5. Return of Shipping for Port of Rarotonga for Year ending 30th June, 1897.

Enclosure No. 6. [CHARGES BY J. CRAIG AND C. WARD AGAINST THE MANGAIA LOCAL GOVERNMENT.] From the British Eesident to the Parliament of the Cook Islands. Salutations ! In the Torea newspaper of the 17th July a letter appeared from Messrs. J. Craig and C Ward, two traders in Mangaia, who made therein serious charges of robbery, oppression, and wrong-doing against the local Government of Mangaia. The letter attracted much attention, and was much commented upon. It also contained serious charges with reference to a bag of coffee, of which the theft was stated to have been condoned under disgraceful circumstances by the Government, although the thief had been discovered, and was well known. Into this latter charge the Eev. J. Cullen, on behalf of natives specially interested, applied to me for official inquiry. I referred the inquiry to the Ariki John, sending to assist him Mr. F. George Moss, who left Earotonga accordingly on the 4th August, but had no opportunity to return till yesterday, the 24th September. The charges made by Messrs. J. Craig and C Ward prove to have been a tissue of distorted statements and absurd exaggerations. In justice to the Government of Mangaia, the refutation should have the same publicity as the charges so wantonly made, and I send this message to the Parliament in order that the report and evidence may be published in the Torea with the parliamentary papers. They will also be thus placed on record as a permanent warning against too ready a credence in similar cases in which the smallest evils, even when actually existing, are made to appear very big by a tropical luxuriance of language and imagination. The papers enclosed are— (1.) The letter of Craig and Ward to the Torea. (2.) Eeport on the general charges, with evidence taken. (3.) Eeport on alleged theft of a bag of coffee and gross condonation thereof by the local Government, with evidence taken. Mr. F. George Moss, at my request, while in Mangaia, investigated the questions of raui and the police generally. On both these subjects he has reported in the attached papers. In justice to the Ariki John I should point out that, on the irregularity in appointing the Au being shown to him, he has at once complied with the law, and reappointed Aus in accordance therewith. Fbedeeick J. Moss, Earotonga, 25th September, 1897. British Eesident.

Letter feom Ceaig and Waed in Te Toeea (17th July) on the Misgovebnment of Mangaia. Sic, — We beg to send you a statement of a few facts concerning the present misgovernment of Mangaia, trusting that you will give vent to them in Te Torea : — We, the general public of Oneroa, are at present tyrannized over by a tea-shop owned by the members of the Government, who have forbidden any one, under a money penalty of $5, from selling any coffee to any store under 30 cents per pound, while they themselves are buying it on the quiet (and on a big scale at that) at prices ranging from 10 to 15 cents per pound. As the coffee

American. Native. Totals. British. Frei ch. Vessels. Tons. Vessels. Tons. Vessels. Tons. Vessels. Tons. Vessels. Tons. "nwards — Sail... Steam H.M.S. "Ringdove" ... H.M.S. "Goldfinch" ... 16 42 1 1 1,355 33,790 805 805 1 120 30 1,856 47 42 1 1 3,331 33,790 805 805 60 36,755 120 80 1,856 91 38,731 Dutwards — Sail Steam H.M.S. "Ringdove" ... H.M.S. "Goldfinch" ... 20 42 1 1 1,704 33,690 805 805 1 56 1 120 33 2,005 55 42 1 1 3,885 33,690 805 805 Totals 64 37,004 56 120 33 2,005 99 39,185 J. H. Gaeniee, Shippi; ig-masti ir.

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is taken in in secret, the poor native who sells it to them has to take what they give him, without asking any questions as to the price or weight, for fear of being fined. Then, again, there has been one case brought to light and proven in which a native stole a bag of coffee; but, as it was sold to them, no notice has been taken of the affair, and no punishment been meted out to the criminal. Again, in cases of fining, all fines have to be paid in cash, and in many cases the poor creatures have not got the cash to pay, and after the police have sold their goods and their body-clothes, and the lot not realising enough to pay the fine in full, they have begged enough cash from the whites to make up the balance, and in some cases enough clothes to re-cover them again in decency, and the whites, out of pity, have given what they required; and in some cases the whites have given them enough cash to pay the entire fine, on the understanding that they would repay the amount when the raui was taken off the coffee. Now, it is the evident intention of these maladministrators that there will be no coffee, when they give the people permission to sell their coffee (which is really their own), to pay those debts. Business has been at a standstill for several weeks. The people have plenty of coffee to pay their debts, and are willing and anxious to do so, as those debts were given to them out of pity, as the ruthless Government had no pity for them. But the said Government will not allow them to either sell or pay their debts, as they want the produce to go through their own hands. Some of them boldly admit that they are only seeking their own gain. When their evil doings were exposed they only shuffled the affair over (they are past-masters at that sort of thing), and those people who make the laws only for their own profit—that they may have a chance of breaking them themselves—go about triumphant, secure from punishment—in their power. No wonder the poor Mangaians prefer living anywhere else than in their own island, where they can scarcely call their soul their own. And who are they tyrannized over by ? A few unprincipled, avaricious, unscrupulous fellows who happen to be in power over them. What a dreadful and un-British affair this power of raui is in an island of this sort, and how unfit those people have shown themselves to be intrusted with such power. It is a constant temptation for them, as they see a secure means of making money for themselves at the expense of the people who are under them and have no power to protect themselves, When the British Eesident was here some years ago he distinctly told those same people (who had been at the same tricks at that time) that if he ever knew them try the same again he would make them pay for it, but they do not scare worth a cent on that lot. Mr. Ward wrote a letter to the king, as head of the Au, asking why a raui being on that it was not posted up in some public place, so as to let people know what was doing, and not go on making laws in the dark for their own ends ; but, although he called five times (to my knowledge), he could obtain no answer from the king. We are, &c, J. Cbaig. Chas. J. Waed.

[We have applied for information to the British Eesident, who informs us that no complaint of any kind or from any quarter had reached him. As to the stolen coffee, he had been informed that the thief had not been discovered when the " John Williams " left Mangaia. If his information on that point be incorrect, he would be obliged to any one giving him the actual facts of the case.—• Ed. T.T.]

Eeport No. 1, on the Genebal Chaeges. Sib,— Mangaia, 13th August, 1897. In accordance with instructions received from you, I arrived here on the 7th instant, and at once presented your letters to Eev. J. Cullen, and John, Ariki On the 9th instant John, Ariki, by my advice, addressed to Messrs. Craig and Ward a letter, copy of which is enclosed. On the 11th instant inquiry was held. The record of evidence is also enclosed. After going carefully into the circumstances, I have to report that the tea-shop referred to is a species of co-operative store, owned by a company of sixty-eight members or shareholders, of whom three (Ngatama, Kakerua, and Davie) are members of the Mangaia Government. The two last (Kakerua and Davie) are also Judges. Ngatama, who acts as manager, defines the company and its object in his evidence. The company buys coffee in spite of the raui, and has been fined $10, and has paid the fine for so doing. It has also branches at Ivirua and Tamarua. I cannot find out exactly how much coffee the tea-shop has purchased, but estimate it at less than one ton. The business done appears to be in the sale of bread, tea, matches, soap, and fish-hooks. Only small articles of this description are dealt in by the shop company. The price paid by the company for coffee is 15 cents per pound, which (as the manager reports the coffee purchased to be not nearly dry) seems to me a fair price. But I must point out that little cash is paid, trade of the nature before referred to being the usual mode of payment. No evidence was produced either that the teashop proprietors " tyrannized over people " or that they have " forbidden any one under a penalty from selling any coffee at any store." The raui, I find, has been illegally imposed on the people. In the law of Mangaia (No. 2, 1891) for electing the Au, section 7 provides for raui being put on produce by the Au. Section 6 provides for the annual election of such Au. No Au has ever been elected, nor is there any properly constituted Au, so far as I can ascertain. The raui was not imposed by any Au (legally constituted or otherwise), but apparently by a hole-and-corner meeting of a few people in each district, and the rest of the people, whether consenting

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parties or not, are fined for breaking it. The object of the raui was to keep the price of coffee as high as possible. The Judges, in fining these people, have acted illegally in their official capacity. In support of this view I would refer to the evidence. By this you will perceive that Meringitangi, Judge of Veitatei, fined the tea-shop and certain people of Taavainga (a district over which Kakerua presides). Meringitangi admits fining people in his own district of Veitatei, but says he did so there as chief of the raui, not as Judge. He could certainly not be chief of both raids. Hence he must have acted in his official capacity as Judge in one instance at least. The Judge, Kakerua, you will observe, also says he will continue to punish people for breaking the raui, whether legal or not. Such rauis are damaging. Not only have they been imposed for the purpose of obtaining an impossible price (30 cents per pound), but they are indefinitely prolonged. No care to publish a raui has been taken, and non-consenting parties have been forced to join. I consider such a state of things very discouraging to the people. It prevents them picking freely, and making the most of their crops. I would suggest that law No. 2, 1891, be so amended as to provide that rauis, when legally imposed, must, for a certain stated time, be properly published, and the produce be offered for sale by public tender. Rauis should not be allowed for indefinite periods, nor for any stated price per pound. I would suggest that the Au for the future be properly elected, in accordance with provisions of law No. 2, 1891. No evidence of tyranny or oppression has been brought under my notice by Messrs. Craig and Ward, or by any other persons, nor do I see any reason outside of the raui to believe that the Government has either tyrannized over or oppressed any one in the slightest way. I should wish to call your attention to the fact that unauthorised persons are employed by the Judges as police for detection of offences against morality under the old Maori laws. Although it is stated that they receive no pay, I consider such a practice open to much abuse, and consequently bring it under your notice. I have the honour to refer you to the evidence for further information. I should add, after making the fullest inquiry, that I do not believe the debts owing by the Mangaia people to the traders there exceed at the utmost £60. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. F. G. Moss.

Notice of Inquiry to Messrs. J. Craig and G. Ward. Gentlemen, — Mangaia, 9th August, 1897. In pursuance of instructions received by me from the British Eesident, I have the honour to notify you that an inquiry will be held, into the truth of certain statements contained in a letter published in Te Torea newspaper on the 17th July, 1897, and signed by you. The inquiry will be held on Wednesday, the 11th instant, at 11 a.m., at the Courthouse, Oneroa. Trusting you will find it convenient to produce any evidence you may wish to call, at time and place mentioned. I am, &c, Messrs. J. Craig and 0. J. Ward. John, Ariki.

Evidence taken in connection with Report No. 1. Mangaia, 11th August, 1897. Meeting at the Ariki John's house. Present: Messrs. Craig, Ward, Proctor, and Bulkeley, John (Ariki), Meringitangi, Daniel, Kakerua, Ngatama, Kenite, and others. Mr. F. George Moss assisted the Ariki in the inquiry. Mr. Moss, addressing the natives present, asked, Is there a tea-shop owned by members of the Government, who have forbidden any one, under a money penalty of $5, from selling coffee to any store under 30 cents per pound, while they themselves are buying it at 10 to 15 cents per pound; and are members of the Government shareholders in this or any other tea-shop ? Ngatama: Yes, some of them—Kakerua, Davie, and myself. There are sixty-five other shareholders, who are not members of the Government. The tea-shop is not connected with the Government; it is a company formed for their own benefit. lam the manager of the tea-shop. We have coffee belonging both to members of the company, and also to outsiders. I have bought coffee from outsiders by means of cash and trade. John (Ariki) : There is a raui for 30 cents per pound on coffee. Some of the Government are in favour of the raui, some not. Daniel: Meringitangi was the first to put the raui on. Mr. Moss (to Meringitangi): In law No. 2, 1891 (laws of Mangaia), section 7 provides for raui : Can you tell me why this raui was put on, and for what purpose ? Meringitangi: The raui was for the public good. Previously coffee was sold for 15 cents per pound. Then we " rauied "it for 20 cents, and got it. Now, this year, we raui for 30 cents. Mr. Moss : How was the raui put on, and by whom ? Was it by the Au ? Meringitangi : A meeting was held, but it was not put on by the Au. A meeting of the district of Veitatei put the raui on the coffee of that district. I have fined people for breaking the raui. I am Judge of the Veitatei district. Mr. Moss (to Kakerua) : How was the coffee raui in your district of Taavainga ?—The people of Taavainga district "rauied" their own coffee. All the people concerned were there, and consented.

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Daniel and Kenite said they belonged to Taavainga district, and were at the meeting, but were opposed and did not agree to the raui. Kakerua (to Mr. Moss) : I will fine any one, whether he agreed to the raui or not. Yes, I will fine Daniel if he sells coffee. Mr. Moss : Under what law ? Meringitangi : (interposing) : Under law No. 2, 1891, sections 6 and 7. Mr. Moss : That law applies only when the Au imposes the raui. In this case you say it was not the Au. How can you fine people under the law? Kakerua : I cannot show any law, but still I would fine them. Meringitangi : All my district was agreeable, and I imposed the fines as the appointed chief of the raui, not as Judge. I sent the police for the money. If the people fined had no money the police would take a pig, but they never took any clothes. The raui was not published. No trouble was taken to make it publicly known. John (Ariki) (to Mr. Moss) : There are six police for Oneroa. Meringitangi : The Judge of each district is chief of the police in that district. We do send people to do police duty who are not Government policemen. I thought two policemen not sufficient, so I employed six more. That is for Veitatei district. They get no pay, and no share of any fines. They work for nothing. They go into houses, and act just the same as the regular police. They require a warrant from me to go into the houses of Europeans, but not into those of natives. Kakerua : I also employ others besides the proper police. I employ six men besides the two regular police. They get no pay. Kakerua and Meringitangi : All fines must be paid in cash. Ngatama (to Mr. Moss) : The tea-shop was fined by Meringitangi for buying coffee from Taavainga, although he is Judge of another district. Kakerua is Judge of Taavainga. The fine, $10, was paid to him, and not to Meringitangi. On being questioned, all the witnesses strongly denied that any oppression in any form has been or is suffered by the people. Mr. Craig (who was present throughout the inquiry), on being called, said, in reply to questions—■ The police sell the people's goods to pay fines, as they do anywhere else in the world. I have lent people money to pay their fines, and in some cases charged interest. I decline to say how much interest ; that is my business. I charge the same prices for goods whether given out on credit or bought for cash. Mr. Ward (who has been also present throughout the inquiry), on being called, said, —I also have lent money to pay fines, but in no case have I charged interest. I only ask them to repay me when the coffee is sold. I consider myself personally responsible to my employer for such loans. The Government prevent the people from paying their debts by enforcing this illegal raui.

Eepoet No. 2, On Special Chabges Made by Cbaig and Wabd. Sic, — Mangaia, 13th August, 1897. I have gone carefully into the inquiry regarding a bag of coffee alleged to have been proved to be stolen and sold to the Government tea-shop. I have the honour to enclose the evidence taken. There is no evidence either that such coffee was ever stolen or to connect it with the tea-shop or the Government in any way. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. F. G. Moss. The Evidence re the Bag of Coffee. 12th August, 1897. Mr. Craig : A woman came to me in the early part of May, 1897, and wanted credit. I refused unless she gave security. She said she had a bag of coffee nearly full, which she offered as security. I sent Daniel to mark my name on the bag of coffee. The bag of coffee was to remain in her charge until the raui was broken up. She told me the coffee was hers in her own right. I let her have $10 or $12 (£1 to £1 45.) credit on the strength of it. Over a month after I looked into her house, and found the coffee gone. I informed Daniel, who made inquiries, and told me the woman's husband had taken the coffee away. Daniel: Craig sent me to Taakave Vaine to mark a bag of coffee on account of debt, and afterwards sent me to look. I found it gone. Taakave Vaine said her husband took it away and sold it to the tea-shop. Ngatama : The tea-shop bought coffee from Taakave several times, but not one bag in a lump. Taakave Vaine : I went to Craig about May last for credit. Got $9-25 goods from him on credit. Told Craig when I got the coffee I would pay him. Daniel came and marked a cross on the wood above the bag. The bag was not a large bag like a cornsack, but about the size of a saltbag, and would hold when full about -Jewt. I did not tell Craig I had a bag of coffee in the house which I would hold as security for the $9-25, and when the raui came off would sell it and repay Craig. I knew Daniel came to mark the bag of coffee for Craig. I have the coffee still in the house, but I have turned it into a larger bag. To Craig : I did tell you that my husband took the coffee and sold it to Ngatama and the teashop. To Mr. Moss : I did tell Craig that I had more coffee, and would use that to pay the debt. Taakave Tane (husband of Taakave Vaine): Know the bag of coffee referred to. It belonged to my wife. Did not take any coffee from the bag under the cross-mark. To the best of my belief the coffee is still in the house. I did not take it away.

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Daniel (called by Craig): Craig told me to go to the woman's house to look at the coffee. The woman went with me. Marked a bag with a chalk cross, and the wood above it in the same way. The woman showed me the bag to mark. Taakave Vaine told me afterwards that her husband had sold the coffee to the tea-shop. Makianga (called by Craig) : Had no evidence to give. Ngatama : The tea-shop bought no coffee at 10 cents, only at 15 cents. All the coffee that the tea-shop has bought from Taakave is 37 lb., amounting to $5-55, in small quantities, from time to time, not in one lump. Davie : I am a Judge, and was present when Taakave and the tea-shop people were tried and fined by Meringitangi for selling coffee secretly. Did not hear anything about stolen coffee. No charge of that sort was brought up by Craig, who was present, and who, with Ward, had laid the complaint against the tea-shop which led to the trial and the fine. This ended the inquiry.

Enclosure No. 7. Peoclamation. Whebeas on the 4th day of April, 1891, Proclamation was made by the Eight Hon. the Earl of Onslow, Governor of New Zealand, that he had received the commands of Her Majesty the Queen to inform the Arikis and people of these islands that it had not been deemed necessary to incorporate them into Her Majesty's dominions, or to transfer the jurisdiction of the inhabitants generally from their native rulers to the British Crown, but that for the present at least British authority would retain the form of a Protectorate : And whereas the Arikis and people were further informed in the said Proclamation that the undersigned Frederick Joseph Moss had been appointed by command of Her Majesty to be British Eesident in the said islands, and that no new laws would be recognised unless countersigned by him, and that he was to give advice and assistance at all times to the Arikis and people : And whereas these islands were at that time without union, public revenue, regular legislature, public administration, or public records, and the administration of justice was of the rudest and most unsatisfactory kind : And whereas for the better government of the islands the Eesident, as soon as possible after assuming office, counselled a Federation of the Cook Islands, with a Legislature and Government, which came into operation on the sth day of June, 1891, whereby many evils were amended ; but the administration of justice has continued in a state so unsatisfactory that it became incumbent on the Eesident urgently to advise measures for its improvement, of which advice the disregard has led to the present complications : And whereas, having due regard to the ignorance in such matters of the Arikis and people, it was specially provided in the Constitution of the Federation that all laws should be made by the British Eesident and the Parliament, and be so expressed, and not valid till approved by the said Eesident: And whereas the Arikis have in many cases persisted in nominating at their own pleasure the members of the Federal Parliament, instead of having them elected in accordance with the provision of the Federation, and the people holding their lands at will from the said Arikis have been compelled to acquiesce : And whereas the said Arikis and the Parliament have, moreover, sought to appoint to positions of trust and power persons in whom the Eesident has no confidence, and have thereby attempted to control the administration of the laws and the finance, and to evade the conditions on which the privileges of a more effective self-government were accorded to these islands, and the Eesident has refused his assent to such appointments : And whereas on the 26th August the estimates of expenditure for the year ending 30th June, 1898, were passed by the Parliament, and members have since returned to their homes in the various islands until only two were left to attend the last meeting of the Parliament, held on the 27th September, when it was finally resolved that the Appropriation Act, embodying the said estimates, should not pass (vide extracts from minutes attached) : And whereas the Chief of the Federal Government, Makea, Ariki, was advised by me personally and in writing, on the 24th instant, to call together the Government of the Cook Islands, in order to consider the position, and devise means for resuming payments of public money which have ceased since 30th June, and the advice so given has not been accepted : And whereas it has become necessary that action should not be longer delayed : Be it known that I, Frederick Joseph Moss, British Eesident, and representative of British authority in the Protectorate of the Cook Islands, have taken temporarily upon myself the responsibility of administering the expenditure in accordance with the said estimates hereto attached, and with the Act of 1892 provided for unauthorised expenditure in certain cases. And I enjoin upon the Paymaster, Auditor, and bankers to take due heed of this Proclamation, and to make no payments save and except on vouchers duly certified by me, or by some person appointed by me, by public notification, to act on my behalf. And I further declare that this Proclamation shall remain in force until the pleasure of Her Majesty the Queen may be made known. Dated at the Eesidency, Earotonga, this 29th day of September, in the year of our Lord one thousand eight hundred and ninety-seven. Fbedeeick J. Moss,

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Estimates for the Year ending 30th June, 1898. (Passed in Parliament, 26th August, 1897.) Revenue.

Expenditure.

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Estimated, 1896-97. i Actual, 1896-97. Estimated, 1897-98. mport duty 3 ostal kliscellaneous lospital duty £ s. d. 950 0 0 100 0 0 10 0 0 190 0 0 £ s. d. 919 9 8 120 5 3 6 10 0 183 17 10 £ 1,000 100 10 200 s. 0 0 0 0 d. 0 0 0 0 Totals Balance in hand, 1st July, 1896 1,250 0 0 1,230 481 2 9 7 11 1,310 0 0 Balance in hand, 1st July, 1897 1,711 10 8 57 10 5 Advances on account of subsidies, &c, to be repaid 1,367 10 5 26 4 3 1,393 14 8

Vote. Service. Voted, 1896-97. Expended, 1896-97. Estimatea, 1897-98. Fixed appropriations— Payment of members Subsidies to Local Councils— Atiu, Mitiaro, Mauke Aitutaki Mangaia Earotonga ... £ s. d. 54 0 0 45 0 0 45 0 0 45 0 0 45 0 0 £ s. d. 54 0 0 45 0 0 45 0 0 45 0 0 45 0 0 £ 54 45 45 45 45 s. a. 0 0 0 0 0 0 0 0 0 0 Collection of revenue — Collector Eevenue Officer, Aitutaki ... „ Mangaia „ Atiu „ Mitiaro ... „ Mauke ... „ Manuae ... 30 0 0 7 10 0 6 0 0 3 0 0 3 0 0 3 0 0 3 0 0 30 0 0 7 10 0 6 0 0 3 0 0 3 0 0 3 0 0 3 0 0 234 30 0 7 10 6 0 3 0 3 0 3 0 3 0 0 0 0 0 0 0 0 0 0 18 0 0 18 0 0 55 10 0 3 i Federal Court Post OfficeChief Postmaster Clerical assistance Postmaster, Atiu „ Mangaia „ Aitutaki Postal delivery, Earotonga „ Atiu „ Mangaia ... „ Aitutaki ... Money - order Office : Chief Postmaster Carrying ocean mails (three years) to 1897 Eent (two years) to 1898 ... 15 0 0 9 0 0 1 10 0 1 10 0 1 10 0 15 0 0 4 0 0 4 0 0 4 0 0 15 0 0 2 17 6 1 10 0 1 10 0 1 10 0 7 10 0 4 0 0 4 0 0 4 0 0 15 0 5 0 1 10 1 10 1 10 7 10 4 0 4 0 4 0 12 0 18 0 0 0 0 0 0 0 0 0 0 0 0 33 10 0 34 14 8 18 0 0 74 0 0

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Estimates for the Year ending 30th June, 1898 —continued. Expenditure —continued.

Appendix.—Extracts from the Minutes of Proceedings in Parliament in reference to the Estimates and Appropriation Act. [Extract from Te Torea, Saturday, 2nd October, 1897.] Thursday, 26th August, 1897. Estimates considered and passed. Ayes, 9.—Utakea, Tua, Kaketava, Metuarau, Ngaropu, Tapitii, Tangi, Tarrape, Tita. Noes, 2. —Vaikai Maoate, Ngapo.

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Service. Voted, 1896-97. Expended, 1896-97. Istimated, 1897-98. 'ote. 5 6 7 8 9 Shipping-master Paymaster and Clerk to Parliament Auditor Expenses, Chief of Government Interpreting and clerical assistance £ s. 12 0 30 0 15 0 30 0 45 0 d. 0 0 0 0 0 £ s. 12 0 30 0 15 0 30 0 40 6 d. 0 0 0 0 5 £ s. 12 0 30 0 15 0 30 0 45 0 d. 0 0 0 0 0 10 General contingencies ... \ Outstanding liabilities ... j 115 2 0 99 15 6 j 1 90 24 0 0 0 0 22 10 0 22 10 0 114 0 0 Ngatipa 22 10 0 11 12 Printing, stationery, &c. Compiling and printing Federal and j local laws > Outstanding liability ... ... j 115 0 0 50 0 0 61 1 9 { 76" 0 0 22 10 JO 13 14 15 16 Passages of members... Expenses of Parliament Maintenance of children at Tereora School Subsidies in aid of Arikis' Courts and police— Mangaia Atiu, Mitiaro, Mauke Aitutaki Earotonga 13 10 20 0 125 0 0 0 0 13 10 20 0 121 5 0 0 0 13 10 20 0 125 0 92 10 0 0 0 0 24 0 24 0 24 0 57 0 0 0 0 0 24 0 24 0 24 0 57 0 0 0 0 0 24 24 24 57 0 0 0 0 0 0 0 0 20 0 0 18 13 4 129 0 0 17 Printing-paper and material for printing laws Care of the insane 20 0 0 18 50 0 0 15 15 0 19 Cook Islands Hospital ... j Eent due September, 1897, to June, 1897 { Eent for June, 1897, to June, 1898 I Outstanding liabilities (blinds, &c.) prior to September, 1896 j 215 0 0 195 6 3 V 180 0 5 12 7 10 11 8 0 6 0 4 20 21 22 23 24 School fittings, &c. Subsidy Britannic Wharf and sheds Post-office, rent due (three years) Victoria Eoad to old road, Ngatipa Unauthorised (Act 4, 1892), for buildings, fencing, water-supply, thatching, approaches, fittings, &c. Add transfer from Vote 20 222 0 50 0 27 0 40 0 0 0 0 0 167 5 50 0 27 0 36 6 110 8 9 0 0 4 6 204 10 10 25 0 0 60 18 35 0 0 0 54 14 3 1,862 12 0 1,654 0 3 1,375 8 10

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31st August, 3rd September, 6th September. Meetings occupied with further debate on Federal Court Bill and other matters. Friday, 10th September, 1897. Parliament met to-day at noon. Eoll called. Members present: Earotonga —Tita, J. M. Salmon, Vaikai; Aitutaki—Metuarau, Ngaropu, Ngapo ; Atiu—Utakea, Tua, Kavetana. Mangaia—Absent. Permission granted to return to their islands by Parliament and the Arikis. Chairman, J. M. Salmon. Prayers by Utakea. F. Goodwin elected Clerk of Parliament pro tern. Various matters considered, and meeting closed at 5.45 p.m. Monday, 13th September, 1897. Parliament met to-day at 10 a.m. Eoll called. Members present: Earotonga—Tita, J. M. Salmon, Vaikai; Aitutaki —Metuarau, Ngaropu, Ngapo; Atiu—Utakea, Tua, Kaketava. Mangaia—Absent, with leave Chairman, J. M. Salmon. Prayers by Tua. Among other matters, a letter from the Eesident re Clerk and Appropriation Act was considered and replied to. Resolved, to call a meeting of the Arikis to meet Parliament on the 15th September. Meeting closed. To meet the Arikis at 10 a.m. on the 15th instant to consider the Appropriation Act and close of Parliament. Wednesday, 15th September, 1897. Parliament met to-day at 1 p.m. Eoll called. Members present: Earotonga—J. M. Salmon, Tita (letter of apology for nonattendance from Vaikai); Atiu—Utakea, Tua, Kaketava ; Aitutaki—Metuarau, Ngaropu, Ngapo. Chairman, J. M. Salmon. Prayers by Kaketava. Letter from British Eesident, dated the 14th instant, considered, and reply to same sent by Arikis and Parliament. Arikis present—Makea, Karika, Tinomana, Pa, Kainuku. Power of attorney signed by members leaving for their own islands for the remaining members to act for them in any work to be done after their departure. Power of Attorney. [Translation.] " We, members of the Cook Islands Parliament, are returning to our islands. We sign this to show that we agree to our names being signed to any papers that may be concluded in connection with the work that is yet to be done. We are giving this power to three members—namely, J. M. Salmon, Tita, and Vaikai Maoate. They will finish the work. " Utakea (his x mark). " Ngaropu. " Tua. " Metuarau " Kaketava. " Ngapo. "Earotonga, 15th September, 1897." The meeting then closed at 5 p.m. (no date fixed for next meeting). Friday, 24th September, 1897. Parliament met this day. Meeting opened at 11 a.m. Eoll of members called. Two present: Earotonga—J. M. Salmon ; Atiu—Utakea. No other members present. Chairman, J. M. Salmon. Prayers by Utakea. Letter received by J. M. Salmon, Chairman, from Vaikai, explaining his absence, and voting against the Appropriation Act. Utakea—on the Appropriation Act—will not agree to pass it, owing to the present troubles. Mr. J. M. Salmon has been instructed by the Ariki Tinomana and his constituents of Arorangi not to pass the Appropriation Act, but to let it stand over until the present trouble is through. Nothing more before Parliament. The session is now closed until the sth December, 1897. J. M. Salmon, Chairman to Cook Islands Parliament.

Translation of Letter from Vaikai Moate, above referred to. Ngatangiia, 27th September, 1897. Salutations ! Do not be angry with me. lam writing to say that you, by yourselves, are to seek out the things that remain to be done. Anything that is not fitting, let it be sought out by you. I will not be there. Enough. Salutations ! I will not sanction the Appropriation Act. Prom Yaikai Moate, Member of the Parliament. To the Chairman of the Parliament of the Cook Islands.

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No. 15. Mr. F. J. Moss to His Excellency the Govebnob. My Lobd, — Cook Islands, British Eesidency, Earotonga, 16th October, 1897. I have the honour to inform your Excellency that the Local Council of Earotonga, which began its session on the Ist September, has since met at intervals, but only to adjourn, and now stands adjourned till the 2nd November, evidently waiting the answer to the Arikis' petition for my withdrawal. A new idea has been put into the heads of the chiefs—that they have a right to the unrestricted control of the revenue, Federal and local, under the guarantee of governing themselves, which they regard as given at the hoisting of the flag in 1888 and the Proclamation of the Protectorate in 1891, at both of which dates no revenue of any kind was in existence. In the meantime the members are discussing the liquor and the education questions in their several districts, so that the time is not being altogether lost. In connection with the interminable liquor question, a correspondence has taken place between myself and the Eev. J. Hutchin, the head of the London mission in the Cook Islands. I feel bound, reluctantly, to trouble your Excellency with this correspondence, which is enclosed. The main purpose was to obtain from Mr. Hutchin a plain refutation of the gross exaggerations to which currency has been given, but Mr. Hutchin is himself an extreme among Prohibitionists, and in communication, I believe, with that party in New Zealand. Another object was to meet a cry, newly raised, that the law has been broken from the outset in the mode of issuing permits to natives. I can state positively that nothing whatever was heard of this till the Licensing Officer, at my suggestion, took a new reading of the law two or three months ago. I enclose his letter to me on that point. Mr. Hutchin refers to a statement by the Eev. Mr. Laurence to me, in a letter dated the 31st January, 1893, on this point, but Mr. Laurence's quotation from the Act was only incidental, and had nothing whatever to do with the point lately raised. I have, &c, Fbedeeick J. Moss, British Eesident. His Excellency the Earl of Eanfurly, K.C.M.G., Governor of New Zealand.

Enclosure No. 1. Eeveeend Sib, — British Eesidency, Earotonga, 12th October, 1897. Some one has sent to me a copy of the Prohibitionist, a New Zealand journal, of the 18th September, containing a leading article on the liquor question in Earotonga. Ido not know the paper, and the article is so rabid as to be in itself unworthy of notice. It quotes, however, the Lyttelton Times as having in a recent issue drawn public attention to " the fearful havoc strong drink is causing in Earotonga." The Lyttelton Times is further referred to as having based its own remarks upon a report by " Dr. Craig, the Medical Officer of Earotonga." This so-called report must be a letter to which no one attached importance here, but which has apparently derived fictitious weight from ignorance of the circumstances under which Dr. Craig's letter was written, and the false idea that he is "the Medical Officer of Earotonga." You are aware that no native can obtain liquor without the written authority of the Ariki of his district, or the appointed representative of such Ariki. That abuses have sometimes crept in was unavoidable, but it appears to me that justice to the native administrators of the liquor-law calls for a refutation of the gross exaggeration of these abuses to which currency has been given. I should be glad of your aid in doing so by the outgoing mail, and think I may fairly ask that aid, as the Arikis and the persons appointed by them are all members and communicants of the Mission Church. I have, &c, Fbedeeick J. Moss.

Enclosure No. 2. Deab Sib, — Earotonga, 12th October, 1897. I have received this day a letter from you, in relation to the drink traffic at Earotonga, in which you say, " You are aware that no native can obtain liquor without the written authority of the Ariki of his district, or the appointed representative of such Ariki." The liquor-law passed on the 24th December, 1890, distinctly states, in clause No. 9, " In the case of natives, the permit shall only be issued on the written authority of the ruling Ariki of the district." Abuses have certainly crept in, and these have been brought before your notice by me on more than one occasion. It is certainly a very difficult matter to deal with the liquor traffic in every country, and the right method has yet to be discovered. I remain, &c, F. J. Moss, Esq,, British Eesident, Earotonga. John K. Hutchin.

Enclosure No. 3. Eeveeend Sib,— British Eesidency, Earotonga, 12th October, 1897. Thanks for your letter of this day's date. You correctly quote the law of 1890, and are aware that, in accordance with the law, no liquor has been issued to a native by the Licensing Officer except upon the written authority of the Ariki, or the Ariki's appointed mouthpiece, the Judge of the Ariki's Court.

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You say correctly that ■■ you have more than once brought abuses to my notice, but I cannot recall any instance of your having done so except in the course of private conversation, nor any abuse of a nature to warrant in the least the grossly exaggerated statements to which I referred in my letter. I have, &c, Fbedeeick J. Moss, Eev. J. K. Hutchin, Mission House, Earotonga. British Eesident.

Enclosure No. 4. Dear Sib, — Earotonga, 12th October, 1897. As far as I am aware, the law of the 24th December, 1890, says nothing about permits being signed by the Arikis appointed mouthpiece. I have looked over the law again just now, and find these words : (9.) " In the case of natives, the permit shall only be issued on the written authority of the ruling Ariki of the district." The law is plain enough, and permits issued by any other person than the ruling Ariki are evidently illegal, according to law, which you, I believe, drew up, and which you presented to the chiefs for discussion on the 24th December, 1890. Mr. Laurence brought the matter of the sale of permits before your notice in the year 1893, so that there was no need for me to again draw your attention to the matter. Why you never took any notice of what was said to you I could never make out, for every missionary and every British Eesident can only desire the good of the natives. As regards calling your attention to abuses of the liquor traffic " in private conversation only," I recollect an instance of a very public conversation where the matter has been brought before your notice. I have, &c, F. J. Moss, Esq., British Eesident. John J. K. Hutchin.

Enclosure No. 5. Eeverend Sir, — British Eesidency, Earotonga, 13th October, 1897. I have just received your letter of the 12th, in reply to mine of same date. Allow me to refresh your memory as to what took place in the year 1890, to which you refer. I arrived here on the 18th November from New Zealand. You were away, but expected back soon. The Eev. J. Chalmers was in Earotonga, and at once brought to my notice the gross and open drunkenness prevalent among the Maoris, both men and women. I found his statements more than justified. Nineteen known houses were openly retailing the worst liquor, and fourteen quarter-casks of rum had just been openly landed and stored by a trader (brought from San Francisco). Yet the law was total prohibition, with yourself (as agent of the London Missionary Society, a member ex officio of the Arikis' Council), and with 150 police—all your Church members—for its enforcement. The Arikis' Council was convened on the 24th November, and a temporary law passed at once, prohibiting, under a penalty of 150 dollars (£22 10s.), the sale of liquor to natives. I then went round the group. On my return the Arikis' Council again took up the question. They insisted on one law for both races—European and Maori —and were unanimous against prohibition, as having been a dead failure. You will remember, as you were present at this meeting, which took place on the 22nd December. The final vote was deferred till the 24th, to enable Mr. Gelling to take the opinion of the Europeans —his constituents—in the meanwhile. On the 24th he reported that only two were in favour of prohibition, and the present law was passed without dissent. I venture to say that, at its worst, drunkenness among the natives has never approached by a long way that which prevailed among them with prohibition, at its best, in 1890. Other points appear to have escaped your recollection. For example, Judges Tepou, Maoate, and Tekao were appointed to carry out the temporary law of the 24th November, 1890. They naturally, and in accordance with native custom, as "the Arikis' mouthpiece," took up the same position in the law of December. That they did so was known to you, to me, and to all people, and let me remind you that their right was never questioned till about two months ago. The Licensing Officer then, with my approval, took the extreme course of refusing any but the Arikis' own signatures. In doing so he certainly strained the law, and has brought upon himself powerful native hostility, against which I have done, and am doing, my best to protect him. I regret much to see that you are taking a different course, and practically give aid to those whose only objects are avowedly to gratify personal rancour, and who are openly seeking to persuade the'Arikis and Judges that not they, but the British Eesident and the Licensing Officer, are the only persons concerned, or to be blamed. You are right that the Eev. Mr. Laurence wrote to me in 1893, but not on the " sale of permits." That is a phrase of recent coining, and I regret to see it adopted by you. Mr. Laurence called it "charging fees." If you refer to the mission records you will find that, so far from not noticing Mr. Laurence's letter, I sent him a full reply from Judge Tepou, who justified the charging of fees. He justified it as the universal and recognised practice under the existing missionary law, which made fines and fees the only remuneration for Judges, police, and officials of every kind, instead of the salaries given elsewhere. Nor should it be forgotten that Tepou, and, in fact, all the Arikis and Judges, were, and still are, members of the mission church, and high officers, over whom mission influence is and always has been undoubted.

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My main purpose in addressing you was, as stated, to ask your aid in counteracting the slanderous exaggerations which have led newspapers abroad to speak of "the havoc caused by strong drink among the natives of Earotonga," and of the place itself as a "pandemonium of drunkenness, &c." You must be well aware that these are scandalous and gross exaggerations. To me it appears that the good name of the mission, with its great power over the natives through the church, quite as much as that of the Government and the Maori people, called for their prompt refutation. I have, &c, Eev. J. K. Hutchin, Mission House, Earotonga. Fbedeeick J. Moss.

Enclosure No. 6. Deae Sic,— Earotonga, 14th October, 1897. I wonder who your informant was that is so particular and exact as to the number of houses " openly retailing the worst liquor." Another thing would be interesting to know, and that is, the names of those who kept these nineteen houses, and also the persons who supplied them with the worst liquor. You say you found these statements " as to gross and open drunkenness prevalent among the Maoris, both men and women, more than justified." Then, you must have seen the gross and open drunkenness yourself. For my part, I have never believed in the tale as to the nineteen houses. I do not at all accept it as a statement of the facts of the case, as far as my knowledge is concerned. You go on to say that the law was total prohibition, that I was a member ex officio of the Arikis' Council. I deplore the fact that the total prohibition law was not carried out. I can assure you that it was not for want of speaking on my part. I spoke against the liquor traffic here long before I knew you. As for being present at the meeting of the Arikis, the missionary was present, but had no vote. He was present to give advice if he was asked for it; that was all. The duty of a missionary is to lay down principles —to endeavour to implant right ideas of duty in the minds of the people. He has nothing to do with the carrying-out of the law. So, as regards the liquor traffic, the responsibility of seeing that the law of 1890 was properly carried out rests upon yourself, and not upon me. As you yourself admirably put it, " To be good and just is what your missionaries have been trying to teach you for the last seventy-five years, and is what they profess to teach you now; but the work of a British Eesident is something more. He is to show to you, and to all the Maori people, how to make good laws, and how to deal out justice to Europeans, as well as to Maoris, and how best in every way to promote the progress of the Cook Islands, and of the whole of the people. It is, then, his work also to see that you do not leave these things undone." That is to say, it is the duty of the missionary to teach the Maoris the principles of goodness and justice, and that it is the duty of the British Eesident to help the Maori people to make good laws, and to see that these laws are carried out. Then, as regards the police, whom you state numbered 150 when you arrived, am I responsible for the fact that there were 150 (accepting your statement as correct) ? The church members formed the most respectable members of the community; hence they were chosen ; but not all male church members were policemen. The policemen were appointed by the chiefs from among their tenants. The police never supposed that they were perfect, and acted according to instructions given to them. By your stating that I was a member of the Council of the Arikis, and immediately afterwards that the police were church members, you seem to insinuate that there was a connection between Church and State, which I emphatically deny. As regards the drunkenness of the last year or two not approaching by a long way that which prevailed with prohibition at its very best, in 1890, I must say that you cannot be a judge in the matter, as you were never here before 1890. Besides, prohibition was not at its very best in 1890. There has been a great and gradual increase in the drink traffic since you have been here. As to "the Ariki's mouthpiece," the law of 1890, I again say, says nothing about the Ariki having a mouthpiece. I always thought that we were to take words in the natural sense they bear. " A ruling Ariki" is plainly required by the law to sign the permits. So Mr. Laurence understood, for he wrote to you, under date the 31st January, 1893," "As I understand the law, any native desiring to buy spirituous or fermented liquor must first obtain a permit for the same from the Queen, or chief of the district of the island in which he resides." This is the natural interpretation of the law, then: that the ruling Ariki should sign the permit. It was neither an " extreme course " for the Licensing Officer to take to refuse any but the Ariki's own signature, neither did he certainly strain the law; he simply did his duty, for clause 4of the Act states, " The Licensing Officer shall issue such liquor only in accordance with the provisions of the law." I did not mean to say that you did not answer Mr. Laurence's letter, as you seemed to think I meant. Charging a fee for a permit is much the same as the sale of a permit; and this was not contemplated by the Act. As regards church discipline, we strive to arouse the conscience, and do not believe in exercising it rashly, knowing that we ourselves are also in the body. All, therefore, that I have contended for is that the ruling Ariki is required by the law to sign the permit for a native, and that also the charging of a fee for the permit is contrary to the law. As regards " practically giving aid to those whose only objects are avowedly to gratify personal rancour," I can assure you that I cherish no such feeling against you, and appreciate your difficulties. As I said in a previous letter, the liquor question taxes the wit of a man to deal with it; and I give you credit for sincerely intending to make a good law against liquor, yet it should have been very strictly carried out. As the Licensing Officer said, " Laws which are made must be obeyed, and not treated with contempt" (see Eeport of Licensing Officer, 2nd July, 1892).

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As regards what you call " slanderous exaggerations," which have led newspapers abroad to speak of " the havoc caused by strong drink among the natives of Earotonga," I must state that my opinion coincides to a great extent with that of Queen Makea, at the meeting of Arikis at which you and Mr. Chalmers were present — 22nd November, 1890. " Here is the pit for the land, the grave for it, the one grave, and that is the foreign spirits." It was so then, and it is so now —the cause of ruin, physically, morally, and spiritually, to many of the natives of the island. We have always cause to mourn over many lost to the Church through the demoralising effect of strong drink. As for the phrase, " pandemonium of wickedness," I suppose it means that there is a great deal of wickedness going on. I see I have misquoted the phrase, and should say drunkenness. I am living, as you know, inland, but before the Licensing Officer strictly carried out the law I seldom went down the street without seeing a drunken person. With kind regards, I have &c, F. J. Moss, Esq., British Eesident, Earotonga. John J. K. Hutchin. P.S. —I must apologize to you for using so many sheets of paper, but I have no other.—J.K.H.

Enclosure No. 7. Eeveeend Sir, — Cook Islands, British Eesidency, Earotonga, 15th October, 1897. I have to acknowledge receipt to-day of your letter of the 14th instant. As to the state of affairs in 1890, was it not notorious, and frequently referred to in Arikis' Council in your presence when the liquor-law was discussed in December, 1890 ? What then took place was fully reported in my first despatch of the 17th January, 1891 (A.-3, Sess. 11., 1891, page 14). The statements were repeated in my reply to the Eev. Mr. Laurence of the 3rd February, 1893, to which you refer, and which you will no doubt have among the mission papers. They were accepted as correct then, and no one has ventured to deny them since. Is it not rather late to do so now ? I can only regret that you do not see your way to a plain statement that the rabid utterances of a section of the New Zealand Press are based on gross exaggerations. I still more regret that you should persist in blaming the Licensing Officer for having done since 1891 what you, I, and Mr. Laurence, and every one knew he was doing—namely, accepting the signature of the Ariki's recognised mouthpiece without any of us making the least objection or demur. For my own part, I feel that he is entitled to our strongest support in the action he has since taken (assuredly a departure from established practice and a straining of the law), which has brought him the bitter hostility of powerful chiefs, as you must be well aware. You appear, in conclusion, to have formed a very erroneous opinion of the position and duties of the British Eesident. Like the missionary, he is an adviser, bound, as far as possible, to see his advice followed by action; but, unlike the missionary, he has scarcely a single Maori under his control, while the missionary has a body of theological native students, with their wives and many church authorities, to keep him in touch with Arikis and with the people, and cognisant of all their doings. I presume that there will be nothing further to add to this correspondence. I have, &c, Eev. J. K. Hutchin, Mission House, Earotonga. Fbedeeick J. Moss.

Enclosure No 8. Sib,— Earotonga, 14th October, 1897. In reply to your letter of this date, I have to state that ever since the present liquor-law came into operation—January, 1891—liquor has only been issued to the natives on the written authority of the persons appointed by the Arikis to sign for them. They are for—Makea (Ariki), Judge Tepou (Avarua district); Tinomana (Ariki), Mr. J. M. Salmon (Arorangi district); Pa (Ariki), Judge Maoate (Takitumu District). I may add that, having reason to believe that the authority was being abused for the pecuniary profit of those authorised to sign, I have for some months past refused to accept any but the Ariki's own signature, an extreme course which I only adopted with your advice and approval. I have, &c, J. H. Gaeniee, F. J. Moss, Esq., British Eesident, Earotonga. Licensing Officer.

No. 16. Mr. F. J. Moss to His Excellency the Govebnob. My Lobd,— Cook Islands, British Eesidency, Earotonga, 9th December. 1897. At the request of the Hospital Board, I have the honour to enclose, for your Excellency's information, the copy of a letter sent to me by the Board for transmission. The circumstances are as follows :— Ist April, 1897. —The Board entered into an agreement with Dr. George Craig as Medical Officer for twelve months, " the remuneration being at the rate of £180 per annum. For that

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amount Dr. Craig is to provide a suitable nurse, medicine, food, and attendance to all patients at the Hospital as required" (vide Board's report, Ist July, 1897). At the terne time the Board issued new regulations, whereby the charge for patients was made £1 per week instead of 75., and all free treatment abolished, under special order from a member of the Board. 14th September. —A letter was officially published in the Torea newspaper by the Treasurer to the Board, complaining of the inadequate provision made for the payment of the Medical Officer, pointing out that for the five months ending the 31st August he had only received £75 (the Government subsidy), while he had expended £76 19s. Bd. out of his own pocket for " drugs and dressing, food for patients, and servants " alone. 16th September. —A petition was sent to your Excellency for a Eoyal Commission to inquire into various matters. Among them was the inadequacy of the provision made by the British Eesident for the Hospital. The 13th paragraph stated that the subsidy —£180 per annum—was "the only amount obtained for the salaries of doctor and nurse, medicines and food, and all appliances for a hospital, and to give free treatment to a population of some six thousand inhabitants." This petition was signed by five persons, of whom three were Mr. Kohn (then Chairman of the Hospital Board, and still a member), Dr. Craig (the Medical Officer), and his brother. 16th October. —In his published quarterly report to the Board the Medical Officer states that " many cases have been turned away owing to lack of funds," and urges that " strong representations should be made to the Government." From the published reports of the Board for the six months ending on the 30th September it appears that there were treated twenty indoor patients and 264 outdoor patients. The responsibility of signing the warrant for payment of the subsidy has devolved upon me for the time, and on ascertaining the facts above stated I asked the Board to supply me with information as to the number of patients —indoor and outdoor —who had been treated since the 30th June last (from which my responsibility begins), and of the proportions that had been treated without charge and with charge respectively, together with the amounts received for such treatment. The published accounts of the Board do not show that anything has been so received. The Board declined to give me the information, and I declined to sign the warrant for payment of the subsidy until it had been supplied. In forwarding the letter of the Board and this explanation to your Excellency I may add that I purpose submitting it also to the Commissioner, Sir Henry Berkeley, on his arrival. I have, &c, Fbedeeick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

Enclosure. Sir, — Earotonga, Bth December, 1897. I have the honour to acknowledge the receipt of your letter of yesterday's date. We would respectfully remind you that, on the Ist September, 1897, the Cook Islands Hospital was handed over to the entire management of the Board, and in pursuance thereof we entered into an honourable agreement with an accredited medical man. We fail to see how any subsequent political changes can legally affect our liabilities as a Board, and we cannot admit the justice of making the payment of the guaranteed monthly subsidy contingent on the furnishing by us of certain information which has never hitherto been asked of us under such conditions. Therefore we, as a Board, reiterate the request that you, as British Eesident and as Administrator of the Cook Islands expenditure, do give orders that the monthly subsidy now due be at once paid. In persisting in your present attitude you are only throwing obstacles in the way of our fulfilling our part of the agreement, and putting the community in danger of being again left without the services of a competent and qualified man. All the necessary reports will be duly furnished by the Board at the termination of the financial year. This complies fully with the Government Act under which the Board took office. If the authorisation for the payment of the subsidy be not furnished at the Hospital by noon to-morrow, the 9th instant, we must request you to forward the enclosed copy of this to his Excellency the Governor of New Zealand. I have, &c, F. Goodwin, Chairman of the Cook Islands Hospital Board, F. J. Moss, Esq., British Eesident.

No. 17. Mr. F. J. Moss to His Excellency the GoveenOb. My Lobd, — Cook Islands, British Eesidency, Earotonga, 2nd January, 1898. I have the usual report of the liquor trade of Earotonga. The other islands of the Cook Islands do not allow any to be landed, and the quantity thus smuggled is not landed to any extent. The following are the quantities landed in 1897 (to the 31st December) : — Wines. Beer. Spirits. Value (gallons) £88 £132 £449

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The summaries for the year from 1892 (the first regular supply) to the year 1897 are as follows;— Imports of Spirits and Wines and Beer. Spirits. Wines. Beer. £ £ £ 1892 ... ... ... ... ... 324 25 153 1893 ... ... ... ... ... 407 55 89 1894 ... ... ... ... ... 531 59 40 1895 ... ... ... ... ... 481 77 27 1896 ... ... ... ... ... 552 67 96 1897 ... ... ... ... ... 449 88 132 £2,744 371 537 Since the end of August last it was necessary for me to advise the Licensing Officer (Mr. Gamier) to refuse recognising the mouthpieces of the Arikis, and especially Tepou and Te Eangi, to accept their supply to the natives from the Licensing Officer. This refusal was taken by the Licensing Officer, and the course pursued by him was to receive the signature of the Arikis personally. The Arikis and their mouthpieces have resented this action of the Licensing Officer and been greatly indignant. They insist upon the dismissal by the Earotonga Council of the Licensing Officer, but, as British Eesident, I feel it my duty to ratify the action of the Licensing Officer completely. Supplies of spirituous liquors have been thus stopped to natives since the Ist September, 1897. The supply of banana, orange, and pineapple has been secretly made with much increase, and done much harm, but neither myself nor the Licensing Officer has received any power for their interference. I have, &c, His Excellency the Earl of Eanfurly, K.C.M.G., Frederick J. Moss, Governor of New Zealand, &o. British Eesident.

No. 18. Mr. F. J. Moss to His Excellency the Govebnob. My Lobd, — Cook Islands, British Eesidency, Earotonga, Bth January, 1898. I have the honour to enclose, for your Excellency's information, the trade report for the Cook Islands for the year ending 31st December, 1897. I have, &c, Frederick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

Enclosure. Eepoet o_f the Teade of the Cook Islands foe the Yeae ending 31st Decembee, 1897. Shipping and Navigation. Table 1., showing the report of shipping at the Port of Earotonga, indicates that the steamer " Eichmond " has been purchased by the Union Steamship Company, which confines its use of the " Upolu " alone. The companies' steamer is now used regularly for twenty-eight days from Auckland to several of the Cook Islands, shipping occasionally its oranges and other produce, as well as to Papeete and several of the Society Islands at various opportunities for shipment to Auckland. The Union Company gives all useful opportunities for facilities to natives for the shipment of produce on speculating sales on their individual enterprises. The Union Company has also built a very useful and effectual wharf, with adequate large stores and wharf sheds, for supply shipments to the regular steamer, in the Avarua small harbour, which has become the central object for all trade to the steamers.. Exports. Table 11. gives in detail the exports for 1897, showing the total of Cook Islands produce, amounting to the unusual sum of £2,175 Is., together with a further shipment of £2,381 of pearlshell and other produce received from Penrhyn and other places. The export of Cook Islands coffee has reached for the year to the value of £10,754, much in excess of any previous year's supply. In addition to the exports stated in Table Ha., full particulars are stated of shipments for the years 1892 to 1897 for values to New Zealand and to Tahiti respectively. The totals of Cook Islands produce and of others sent to the Cook Islands from Penrhyn and the external islands are as follows (summarised) : — Cook Islands Prom Penrhyn m , , Produoe. and Others. iotaK £■. £ £ 1892 ... ... ... ... 15,394 4,943 20,337 1893 ... .. ... ... 18,763 905 19,668 1894 ... .-:. ... ... 18,937 1,728 20,665 1895 ... ... ... ... 19,084 1,054 20,138 1896 ... ... ... ... 15,486 1,333 16,819 1897 21,751 2,381 24,132 £109,415 £12,344 £121,759

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Imports. Table 111. shows the imports into the Cook Islands from New Zealand and from Tahiti, and amount in all to the sum of £26,861. Of these sums, the amount of £5,096 is deducted from the above, showing certain goods allowed free of duty to be shipped to the Penrhyn and other external lands, as well as orange-cases and other articles allowed free of duties. The imports from New Zealand and from Tahiti are given completely in Table IHa. of each year's detail in 1892,1893, 1894, 1895, 1896, and 1897. The following are as summarised ; —■ Imports Imports m , , from New Zealand, from Tahiti. * £ £ £ 1892 10,998 5,251 16,249 1893 ... ... ... ... 10,200 9,084 19,284 1894 ... ... ... ... 13,152 9,283 22,435 1895 ... ... ... ... 16,861 6,408 23,269 1896 ... ... ... ... 17,157 5,911 23,068 1897 ... ... ... ... 22,455 4,406 26,861 90,823 40,343 131,166 Free from duty to external islands, &c, during the seven years ... 15,766 £115,400 The Federal Revenue shall be given in Table IV. of the detailed accounts for the year from the Ist July, 1896, to the 30th June, 1897. The annual totals shall be summarised :— £ s. d. 1896-97 ... ... ... ... ... ... ... 1,230 2 9 1895-96 ... ... ... ... ... ... ... 1,428 17 8 1894-95 ... ... ... ... ... ... ... 1,287 1 4 1893-94 ... ... ... ... ... ... ... 1,246 7 1 1892-93 ... ... ... ... ... ... ... 825 9 4 £6,017 18 2 The expenditure in opposition to the revenue above used will be as follows for the year 1896 to the 30th June, 1897 :— £ s. d. 1,654 0 3 Adding to 1895-96 ... ... ... ... ... 1,441 0 8 1894-95 ... . . ... ... ... 1,376 8 9 1893-94 ... ... ... ... ... 860 17 4 1892-93 ... ... ... ... ... 933 19 8 Total ... ... ... ... £6,266 6 8 There is not yet any arrival of banking facilities, and the Federal Government have given to all importers for credit of two months on paying British currency to provide for sums to be paid accordingly to the Customs duties thereon. I have, &c, Fbedeeick J. Moss, To His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

Table I.—Report of Shipping at the Port of Rarotonga (Cook Islands) for the Year ending 31st December, 1897, with Comparative Statements for 1894, 1895, 1896.

Inwards. Outwards. Sailing. Steam. Men-of-war. Total. Sailing. Steam. Men-of-war. Total. No. Tons. No. Tons. No. Tons. No. Tons. No. Tons. No. Tons. No. Tons. No. I Tons. [.M.S. "Goldfinch" [.M.S. "Torch" .. Jritish 'reach lative: Cook Islands 23 1 34 1,660 55 1,094 28 29,238 1 1 805 805 1 1 51 1 34 805 805 30,898 55 1,094 24 1 35 1,764 55 1,731 28 29,238 1 1 805 805 1 1 52 1 35 805 805 31,002 55 1,731 Totals 1897 58 2,809 4,607 4,524 3,510 28 29,238 30,538 17,416 14,628 2 1,765 1,610 88 33,812 36,755 21,940 20,299 60 3,550 4,941 4,410 3,432 28 29,238 30,538 17,416 14,628 2 1,765 90 34,553 „ 1896 , 1895 , 1894 60 65 57 46 27 23 2 108 92 82 63 64 56 46 27 23 2 1,610 111 91 81 37,089 21,826 20,221 2 21161 2 2,'161

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Table II.—Exports from Cook Islands for the Year ending 31st December, 1897.

Table IIa.—Value of Reports for all Years from 1892 to 1897.

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To New Zealand. To Tahiti. Total. Quantity. Value. Quantity. Value. Quantity. Value. 'roduce of Cook Islands— Coffee, centals ... Copra, centals ... Cotton, centals Limejuice, gallons Cocoanuts, hundreds Bananas, bunches Pineapples, hundreds Oranges, cases Sundries—mangoes, fruits, and others 3,233 14,999 223 36,994 508 2,835 431 21,331 £ 9,348 5,380 316 832 104 131 180 3,965 89 495 £ 1,406 3,728 14,999 223 36,994 508 2,835 431 21,331 £ 10,754 5,380 316 832 104 131 180 3,965 89 Total, Cook Islands 20,345 1,406 21,751 'roduce received and shipped from Penrhyn, &c.— Copra, centals ... Pearl-shell, centals 309 2,072 853 584 309 2,072 Total 2,381 24,132

1892. 1893. 18ft 1895. 1896. 1897. Produce of Cook Islands. New „ . ... Zealand. Tahiti. New m .... Zealand. Tahlta - New _, .... Zealand. Tahiti. New , ... Zealand. Tahiti. New m 1 •*• Zealand. Tahiti. New Zealand. Tahiti. Coffee Copra Cotton Lime juice Oranges Fungus Beche-de-mer Cocoanuts Bananas Pineapples Dried fruits, mangoes, and other sundries £ 3,468 4,920 1,679 817 1,286 12 269 60 74 63 58 £ 1,358 628 623 £ 4,639 4,512 947 282 2,538 43 40 30 398 112 166 £ 1,803 1,113 2,123 £ 5,311 4,725 1,219 147 2,533 13 £ 2,471 1,465 483 £ 6,514 6,195 870 397 2,258 8 11 28 305 139 49 £ 1,238 1,058 10 £ 3,220 4,926 431 1,327 3,409 3 £ 1,090 383' £ 9,348 5,380 316 832 3,965 2 £ 1,406 "5 'l4 27 388 94 30 81 305 212 50 49 104 131 180 87 60 17 31 •• I Total, Cook Islands 12,706 2,688 13,707 5,056 14,487 4,450 16,778 2,306 13,964 1,522 20,345 1,406 £15,394 £18, '63 £18,' 137 £19, 184 £15. ,485 £21,751 Produce from external islands to Rarotonga— Copra Pearl-shell Beche-de-mer .. Cotton 2,038 2,835 70 622 86 197 404 999 15 310 252 515 118 1,215 309 2,072 287 Total exports all kinds £20,337 £19 T ,668 £20 ,665 £20, .38 £16,819 £24, .32 * California tradi soeoanut, £49, as sent, ing is direct with T; vere included in tin bhiti, but in 3896 on; ; Tahiti values witl schoone the who: ;r was sent direct to Rarotonga from California. Copra, £96, and ile.

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Table III. —Imports into the Cook Islands for the Year ending 31st December, 1897.

Table III.—Imports: Comparative Statements for the Years ending since the First Year, 1892, to the Year 1897.

Memo.—Supplies from California are sent via Tahiti importers, but- one schooner was sent direct to Rarotonga from California in 1896, including lumber, £602 ; hardware, £556 ; piece-goods, £224 ; sundries, £592 : total altogether, £2,004.

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Articles. New Zealand. Tahiti. Total. Clothing Piece and fancy goods ... Provisions Breadstuff's Groceries Spirits Wines £ 557 6,217 2,759 1,716 3,418 420 43 126 2,008 2,557 549 183 1,902 £ 77 1,505 246 755 208 29 45 6 295 682 76 99 383 £ 634 7,722 3,005 2,471 3,626 449 88 132 2,303 3,239 625 282 2,285 Beer ... Lumber, manufactured and unmanufactured Hardware Tobacco Animals Other articles ... Total Re-exports free of duty to merchandise for exterior islands, and to orange-cases, &c, reshipped to New Zealand 22,455 4,406 26,861 5,096 21,765 Net imports payable accordingly.

18! )2. 18! )3. 18! H. 1895. 18! m. 18! Imports. I Tahiti and California. New Zealand. Tahiti. New Zealand. m . ... ' New Tahiti. Zealana . Tahiti. New Zealand. Tahiti. New Zealand. New Zealand. Tahiti. Jlothing .. 'iece and goods 'revisions fancy £ 492 3,484 £ 237 2,357 £ 538 2,706 £ £ 384 : 599 3,884 ! 3,244 327 1,744 721 j 810 417 ! 1,397 142 : 465 46 j 22 29 j 30 737 | 1,861 917 ! 1,667 202 ; 224 .. I 142 1,278 ; 947 £ 523 3,471 £ 844 4,751 £ 113 2,234 £ 776 4,388 £ 60 1,499 £ 557 6,217 £ 77 1,505 1,297 1,060 1,483 269 7 125 308 1,409 294 337 502 252 55 18 28 193 375 131 1,510 935 1,290 265 9 60 680 1,237 166 58 746 671 838 312 66 37 10 803 909 233 13 1,397 2,129 1,281 1,791 395 33 21 1,956 1,825 313 177 1,345 612 453 344 86 44 6 514 721 154 87 1,040 2,110 941 2,008 466 42 74 1,975 1,864 506 225 1,782 371 690 323 86 25 22 1,022 990 143 2,759 1,716 3,148 420 43 126 2,008 2,537 549 183 1,902 246 755 208 29 45 6 295 682 70 99 383 870 766 680 Totals .e-exports free for exterior islands and other countries, as per 1897 accounts 10,998 £16 2 I 5,251 ,249 ,477 10,200 £19 1 284 219 9,084 13,152 £22,435 1,293 9,283 16,861 1, 6,408 169 '92 17,157 £23, 3, 5,911 168 S89 22,455 £26 5 ! 4,406 861 ,096 I few imports payable £13,772 £18,065 £21,142 £21,477 £19,179 £21,765

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Table IV.—Revenue of the Federal Government of the Cook Islands for the Year ending 30th June, 1897, with Comparative Statement for Years 1897-96, 1894-95, 1893-94 1892-93.

No. 19. Mr. F. J. Moss to His Excellency the Govebnob. My Lobd, — Cook Islands, British Eesidency, Earotonga, 2nd February, 1898 I have received from Mr. H. Nicholas, " Copies of statements of myself and Mr. Thos. H. Mallett re the breaking-open of the Torea house, in my occupation, and removal of property therefrom; also, copy of my letter to Sir George O'Brien, H.M. High Commissioner, Western Pacific, on the same subject." I enclose them from report to your Excellency as thus sent to me. I have, &c, Fbedeeick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

Enclosures. Youb Excellency,— Earotonga, Ist February, 1898. I have the honour to enclose statements by myself and Mr. T. H. Mallett regarding the forcible entry, on the 17th January last, by Oscar Owen and certain natives of this island, into a house owned and occupied by me, and the removal of valuable property therefrom. I have the honour to request that steps be taken to punish the offenders, and to compensate me for the injury done. I have supplied the British Eesident (F. J. Moss, Esq.) with copies of the statement and enclosure. I have, &c, His Excellency Sir George O'Brien, K.C.M.G., Heney Nicholas. Her Majesty's High Commissioner, Western Pacific.

Statement of Heney Nicholas. On the 17th January, 1898, on my return home from round the island, at about 5 p.m., I found in my yard Oscar Owen, a European previously in my employ as printer, and four natives— viz., Eangi Makea, Pora, Pori, and Piaputa. Owen presented two letters in native, of which I enclose interpretations, marked "A " and "B " respectively. Owen then demanded that a building situated in my yard, and known as the Torea building, should be opened. I told him the building was my own property, was locked up, and the key was in the possession of the British Eesident, Mr. Moss. Owen said he did not believe it, and that he and the natives with him had authority to burst it open, and intended to do so. I warned him not to do so, and ordered him to leave the yard. Owen said he had as much business in the yard as I had. Owen then asked the natives— mentioned above—in my presence to burst the door open. Pora said to Owen, "We came to assist you, not to break open the door." Owen urged them to do so, but they refused, and went away, Owen with them. Owen and the same natives, with Eaea, Puia, also Tekeu, who is one of the police, returned in about an hour. Owen again told me he meant to burst open the door, and took hold of the doorhandle and tried it. I ordered him away from the premises. I stood in front of the door. I pushed him away, and he struck me twice in the face with his fist, the natives (seven in number) standing round. Owen then called to the natives to break open the house. Pora and Piaputa said, " We have now got orders to break it open from the Ariki," and Pora then burst it open with his shoulder and foot, using all the force at his disposal. I then called Mr. Mallett's attention. They removed property belonging to the Cook Islands Government and to myself privately. I enclose particulars of property removed, so far as I can discover, with its estimated value. They

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Year. Import Duty of 5 per Cent. Postal and Postagestamps. Hospital Duty, 1 per Cent, on Imports. Miscellaneous. Total. 1896-97 1895-96 1894-95 1893-94 1892-93 £ s. 919 9 1,117 10 1,048 2 943 10 563 6 d. 8 1 9 5 5 £ 120 120 228 278 245 s. d. 5 3 8 5 0 1 2 3 5 9 £ s. 6 10 171 9 d. 0 8 £ s. 188 17 19 9 10 18 24 14 16 17 d. 0 6 6 5 2 £ s. 1,230 2 1,428 17 1,287 1 1,246 7 825 9 d. 9 8 4 1 4 Total.. 4,591 19 4 992 1 9 177 19 8 255 17 5 6,017 18 2

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then, at about 10 p.m., nailed up the door of the house with a small piece of wood, and marked round the wood so nailed with lead pencil, thereby taking possession of the house and anything they may have left in it. I have not since disturbed the house, and have been compelled to refuse two offers of leasing it, as further trouble might ensue if I occupied it. The land on which the Torea building is erected is leased by me from Pori, the owner, one of the natives alluded to. The land rent is fully paid to date. The lease has been made out, registered, and published, in accordance with the laws and customs of the country in every respect. Eangi Makea is a cousin of Makea, Ariki. Pori is also related to Makea, Ariki. Tekeu is a policeman. Pora is a man who holds no office to my knowledge. Piaputa and Puia also hold no office. Eaea is pilot of the port, and is a man of some influence. Earotonga, 29th January, 1898. Heney Nicholas. Witness to signature—Frederick George Moss, Earotonga.

Statement of Thomas Henby Mallett. Accompanied Mr. H. Nicholas to a picnic on the 17th January, and returned home with him at about 5 p.m. Saw Owen and some natives in Mr. Nicholas's yard. Had no conversation with any of them. After tea, at about 6 p.m., while washing my hands-on the verandah of Mr. Nicholas's house, I saw Pora forcibly break open the door of the Torea house, using his hands and right foot. I also saw them removing property from the house. Owen was present, and assisting. The Torea house was not 10 yards distant, and in full view. Mr. Nicholas asked me if I had witnessed the proceedings. I told him I had. Thomas H. Mallett. Earotonga, 29th January, 1898. Witness to signature—Fbedeeick Geoege Moss, Earotonga.

This is the interpretation of letter marked " A " : — " Avarua, 17th January, 1898. " These are sent to take the presses at Henry's. The names of the men: Eangi, Pora, Pori, Piaputa. Sufficient. " Tepou-o-te-rangi." The above is a true translation, to the best of my knowledge and belief. Heney Nicholas.

This is the interpretation of letter marked " B " :— " Avarua, 17th January, 1898. " This is a right of Oscar Owen to break the Torea house, to take away the goods belonging to the Government —that is, the two presses—if Henry will not give them up. " Tepou-o-te-eangi." This is a true interpretation, to the best of my knowledge and belief. Henry Nicholas.

Paeticulaes of Pbopebty removed (Marked "C"). 29 cases for type, 8 chases, 3 composing-sticks, 1 bookbinder and bench, 1 printing-press, 2 rollers, 200 lb. long primer type, 200 lb. brevier type, 50 lb. pica type, 1 box wires for stitcher, 7-J lb. 2-line English black, 6 lb. pica black, 5 lb. fancy jobbing type, 2 lb. fitting letters, 40 lb. lead, 1 dotted rule, 1 pica reglet, 1 nonpariel reglet, 2 imposing-tables, 1 jar potash, small quantity of black ink, small quantity of red ink, 1 office table, 6 office clips, 2 lamps, 1 waste-paper basket, small quantity binding-cloth, small quantity marble-covered paper, 3 reams printing-paper, 6 roller stocks, 2,000 memo, forms, 9 galleys, 3 wood galleys, 1 wire-binder, 1 plough-knife, 1 ink-table, 1 ream paper, 1 brass rule, 1 perforating rule, 1 lot wood furniture, 3 office-stools, 1 copying letterpress, 6 office-files, 1 lamp-shade, 2 office-chairs, 1,000 bill-head forms, small quantity of letterpaper, 60 packages large cards, 2 dozen packages small cards, 1 fount combination border, 1 small quantity of side-sticks, small quantity wood quoins, 6 column-rules, 2 double frames, 1 blottingpad, 1 brush, 1 shooting-stick, 1 single frame, 2 tin pans, 12 lots paste : of the total value of £100 sterling, as estimated by me. This is the inventory of property removed from the Torea building on the 17th January, 1898, to the best of my knowledge and belief. 29th January, 1898. Henry Nicholas. Witness to signature—Fbedeeick Geoege Moss, Earotonga.

No. 20. Mr. F. J. Moss to His Excellency the Govebnob. My Lord, — Cook Islands, British Eesidency, Earotonga, 3rd February, 1898. I enclose, for your Excellency's information, certain translations of correspondence between Makea Takau, Chief of the Federal Government, and Tepou-o-te-rangi, who does not hold any position with the Federal Government at all,

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The correspondence consists of, — (1.) From Makea, of the 13th January, asking my thoughts about the printing-press and the types, the property of the Federal Government, as she considers possession of them should be given to her. (2.) My reply of the 14th January suggested that no use should be made of them until a proper person was obtainable ; also, that the property was in Mr. H. Nicholas's charge, who had left the key of the house with me in which they are stored. (3.) On the 22nd January I wrote to Makea that I was informed that Tepou-o-te-rangi and other persons had, on the 17th January, forcibly broken open the house containing the press and the types, as well as other property belonging to Mr. Nicholas, and removed them to premises, by Tepou, where they are at present. (4.) Letter by me to Tepou, warning him of the offence committed against the public peace, and his grave wrong-doing against the Protectorate flag. I have received no reply from either Makea or Tepou. Makea has. most probably been led away by listening to advice from others—Europeans especially—and given to Tepou authority to act as her mouthpiece for his action in this matter. Both Tepou and Makea continue their anger against the Licensing Officer, Mr. Gamier, for his having since August last declined to accept permits from any but the Arikis, signed by their own hands, and for myself as approving of Mr. Garnier's action. The feeling is also, by Makea and others, against Makea Daniela and Mr. Nicholas, who have continued to assist me in work which the Arikis wish to repudiate in any way. Mr. Nicholas writes by this mail for aid to the High Commissioner, and for compensation for the injury done by the forcible removal of his private property. Much of the property was purchased by Mr. Nicholas for use in the Torea newspaper, which he was arranging to reissue when a new printer had arrived, as duly expected. I have informed Mr. Nicholas that I am unable, for my own part, to take up the matter in any way. I should, if it meets with your Lordship's approval, like to obtain authority to prosecute these persons myself before the Commissioner on his arrival, as I think so flagrant a breach of public peace should on no account be overlooked. I have, &c, Fbedeeick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

Enclosure No. 1. Sir, — British Eesident's Office, Earotonga, 13th January, 1898. The printing-press and all that belongs to it in the hand of Henry Nicholas. If they are the goods of the Government I wish to bring them to an open place, so as to print the words of the Government. It is not right that the Government goods should remain with him, and do no work. Let us know your thoughts, so as I can send my men to take it away to-morrow. Sufficient. Salutations! Makea, Ariki, The British Eesident. Chief of the Government.

Enclosure No. 2. British Eesident's Office, Earotonga, 14th January, 1898. Salutations ! I have to-day received your letter, dated the 13th January. I have the key of the place in which the press is stored, not Henry Nicholas, and my advice to you is to keep it in care where it is, till some person comes who can be trusted with it. Enough. From your friend, Fbedeeick J. Moss, Makea Takau, Ariki, Chief of the Government. 'British Eesident.

Enclosure No. 3. British Eesident's Office, Earotonga, 22nd January, 1898. Take notice that you and all other persons, Maori or European, will be charged before the High Commissioner's Court shortly in Earotonga with having forcibly entered, on the 17th January, a house occupied by Mr. H. Nicholas in Avarua. This is an offence against the public peace, and a grave wrong against the Protectorate flag. From the British Eesident Tepou-o-te-rangi. (Frederick J. Moss).

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Enclosure No. 4. Madam, — British Eesident's Office, Earotonga, 22nd January, 1898. I am informed that Tepou-o-te-rangi and certain evil-disposed persons have forcibly broken and entered into a certain locked house in Avarua and removed valuable property therefrom. English law provides that such conduct is a breach of the public peace, and is severely punished, and these persons who wrongfully take property stored in the house create an offence against the public peace, and are liable to punishment. I must also point out to you that by section 13 of the Constitution Act (No. 1, 1891) such laws are to be administered with the approval of the British Eesident. I shall therefore hold it my duty to report this affair at once to the proper authorities, and to cause Tepou and others, whether Maori or European, who assisted him, to be charged before the High Commissioner's Court when sitting in Earotonga. This offence is against the flag of the Protectorate Power, and a grave wrong-doing. Enough. From the Beitish Eesident (Frederick J. Moss). Makea Takau, Chief of the Federal Government.

No. 21. Mr. F. G. Moss to His Excellency the Govebnob. My Lobd, — Cook Islands, Earotonga, 4th February, 1898. The enclosed letter, with copy, was given me yesterday for the British Eesident. Mr. Moss, I am sorry to say, is considerably knocked up, and, acting on the advice of his medical attendant, I take the liberty of forwarding it to you myself. The letter, I may say, was given to me open, and I have closed it and forward it to you. Trusting you will excuse the liberty I take, and believe no other course possible. I have, &c, His Excellency the Earl of Eanfurly, K.C.M.G., F. Geoege Moss. Governor of New Zealand.

Enclosure. Youe Excellency,— Earotonga, 3rd February, 1898. I am forwarding through the British Eesident a letter and copies of correspondence relating to the trouble we have between the British Eesident and the Government, and we hope that you will look into the matter. The Arikis of Earotonga and myself hope that you will approve of what we have done. This is all. With greetings, Na Makea, Ariki, The Eight Hon. Lord Eanfurly, K.C.M.G., &c, Chief of the Government. Governor of New Zealand.

Sub-enclosures. Sic, — Earotonga, 2nd February, 1898. Salutations ! I, Makea (Ariki), Chief of the Government of the Cook Islands, send you herewith copies and translations that you may know all that has been done in connection with my taking possession of the printing-press, the property of this Government. When Sir James Prendergast was here holding the inquiry we asked, " Who does the press belong to ? " and we were informed by the British Resident that it belonged to the Government. Mr. Moss gave the press into the hands of a person here (Henry Nicholas) to start a newspaper called Te Torea, who also did the Government printing. This paper became a source of trouble between the Maoris and the foreigners. We wish to prevent such trouble. This paper — Te Torea —we knew, was the paper of the British Eesident, and did not belong to us. But when the British Eesident informed us, in the presence of the Chief Justice, that it belonged to the Government we then knew that the press belonged to us. This press was purchased with Government money, and a bargain was made between the British Eesident and H. Nicholas that the latter should, pay 5 per cent, interest on the outlay. We have never yet received any money. I wrote a letter to H. Nicholas telling him to return the press. He did not reply to my letter. My Judge, Tepou-o-te-rangi, who was out on a land-boundary dispute, called on H. Nicholas, and asked him what he had to say about the Ariki's letter. He replied, " I did not know how to answer. I was afraid I would make a mistake." Tepou told us this at our Arikis' meeting. I then wrote a letter (marked "A ") to the British Eesident, to which he replied that the key of the house was in his possession, and we must leave the press where it was until the

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skilled person arrived, when the printing would be resumed. The Arikis agreed not to leave the press where it was, because they do not like H. Nicholas, and they do not wish another printer to be sent for. There is a man here who is competent. If we agree to Mr. Moss's opinion the same trouble will spring up as before. I instructed Tepou-o-te-rangi to get the press. He wrote a letter to H. Nicholas telling him to give up the press peaceably. Should he do not do this, Owen had power to open the door and bring away the property of the Government. These are the names of the men who were sent on this errand : Eangi, Pori, Eopata, Pora, Tekeu, Eaia and Owen (a foreigner). H. Nicholas said, " I will not open the door, and I will never give it up." The natives then opened the door, but did not damage the house in any way. They brought the press to the Parliament House, and next day removed it to the residence of Tepou-o-te-rangi, where it is now in use. We have rented this to Owen, who is paying a rental. We contend that we have a right to our own property. We ask you to tell us if we have done wrong. The money laid out was ours, and we do not consent to Mr. Moss holding back our property, and keeping it idle. This is all. With salutations, From Makea, Ariki, Chief of the Federal Government. The Chief Eanfurly, and Governor of New Zealand.

I certify this to be a true translation of the letter in native enclosed herewith ; also, of the copies of correspondence attached. Feed. Goodwin, Interpreter for Arikis of Earotonga, CI.

Madam, — Cook Islands, British Eesidency, Earotonga, 22nd January, 1898. I have been informed that Tepou-o-te-rangi and other evil-disposed persons have broken into and entered a house that was locked in Avarua, and have removed a valuable property therefrom. The usages of the British law apply in this case to what is known as a breach of the public peace, which is subject to a heavy penalty. If this property in the house broken into actually belonged to these people it would still be a bad example to the public, and it would be right to have them punished. lam telling you so that you may know in clause 13 of the Constitution Act (No. 1, 1890) it states that all laws that are to be in force must be approved by the British Eesident before they become law. I now make known to the authorities that it has fallen on me to charge Tepou-o-te-rangi and the natives and European who assisted him before the High Commissioner's Court, which will be held at Earotonga shortly. This disturbance affects the Protectorate flag, and not only one person. Enough. From the Beitish Eesident (Frederick J. Moss). Makea Takau, Chief of the Federal Government.

Cook Islands, British Eesidency, Earotonga, 22nd January, 1898. That you may know. You and the natives and European will be charged in the High Commissioner's Court, which will shortly arrive at Earotonga, with wrongfully breaking into a house down at Henry Nicholas's, at Avarua. This is a charge of breaking the public peace, and sinning against the Protectorate flag. Fbedeeick J. Moss, Tepou-o-te-rangi. British Eesident.

Sir, — Earotonga, 13th January, 1898. The printing-presses and all that belongs to them, now in the hands of Henry Nicholas. If it is correct that these are the property of the Government, I wish it removed, so as all the Government work can be printed. It is not right that the Government property shall be left to lav idle. Let me know what you think, so that I can send my people to get it to-morrow. This is all. Salutations ! Makea, Ariki, The British Eesident. Chief of the Government.

Cook Islands, British Eesidency, Earotonga, 14th February, 1898. Salutations ! Your letter, dated the 13th January, has reached me this day. I have the key of the house containing the printing plant; it is not with Henry Nicholas. This is my advice to you : Let the printing plant remain in the house it is now in until the person arrives who is worthy to use this press; it will then be worked. Enough. Salutations ! Frederick J. Moss, Makea Takau, Ariki, Chief of the Government. British Eesident.

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No. 22. His Excellency the Govebnob to Mr. F. J. Moss. Sib, — Government House, Wellington, 4th February, 1898. I have the honour to inform you that I have received the report from his Honour Sir James Prendergast, the Chief Justice of New Zealand, of his inquiry into complaints and petition relating to the Cook Islands. I should be glad if you would generally make it known to the Arikis and those interested in the matter that I am, with the assistance of my Ministers, giving it my earnest attention. Prior to sending any decision on the various matters in question I have determined to forward all the papers, with the report, to the Secretary for the Colonies, with a view to his expressing his wishes in the matter. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. Eanfuely.

A.-3, 1898, No. 14.

No. 23. Mr. F. J. Moss to His Excellency the Goveenoe. My Loed, — Cook Islands, British Eesidency, Earotonga, 22nd February, 1898. I have the honour to enclose, at the request of Mr. F. Goodwin, a letter to your Excellency of complaint from him therein. Mr. Goodwin states that I have not previously written to him disapproving of his action. His position in connection with the Arikis' Council and their forcible seizure of the printing-press and material will yet require investigation when legal opportunity of doing so is obtained. But the present position was different. The Arikis and the Earotonga Council had just taken upon themselves formal authority, without asking approval of the British Eesident, and contrary to law, to seize the Government books and papers in the hands of Makea Daniela, and to dismiss as interpreter Mr. H. Nicholas. I enclose tbe two so-called laws to deal with these matters. They were both in Goodwin's own writing, and his name is included among those to take forcible possession of the books, office-papers, and furniture. The danger of such a course is the more imminent that, if successful, as with the printing plant last month, it is well understood that the next step will be to take possession of the permit liquor office, place a new officer under control, and get possession of what they have required—the habit of calling " our money" collected therein. The laws above referred to are styled—(l) Withdrawal of Makea Daniela from his positions; (2) the appointment to replace Makea Daniela. The interpretership is dealt with in the body of said papers, and Makea Daniela is to hold office till the 28th February. On the other hand, Goodwin encloses in his letter to your Excellency a formal appointment by the Arikis, dated for him on the 6th September last. This appointment is to the Federal offices only, but I have for the first time heard of its existence, and am of opinion that the appointment was not written at anything like the date given. It has nothing to do with the local Earotonga Council. I have, &c, Feedebick J. Moss, British Eesident. His Excellency the Earl of Eanfurly, Governor of New Zealand, &c.

Enclosure No. 1. Earotonga Council. —Withdrawal of Makea Daniela from his Offices. 1. It is enacted by the Earotonga Council that the offices of Makea Daniela are hereby cancelled, in accordance with his resignation in a letter to the Arikis, dated the 6th September, 1897. All his offices shall be hereby cancelled on the 28th February, 1898. 2. The Council hereby appoint, to take account of all things that may be in the hands of Makea Daniela (F. Goodwin, Vakapera Teeiai, Puai), and which are the property of the Earotonga Government. Also, in accordance with his request to the Arikis, and shall place all such things in the hands of the Chief of the Earotonga Government. 3. The Council hereby grant twelve days in this month of February to Makea Daniela, in order for him to collect all things together which are the property of the Earotonga Government. Should the day appointed be Sunday, the Chief of the Council will, on the following Monday, send the persons above appointed to take charge. 4. That Makea Daniela shall receive his salary for eight months—namely, from Ist July, 1897, to 28th February, 1898. No salary shall be paid to him after that date. Samuela, Acting Chairman. Tinomana, Ariki, Earotonga, 11th February, 1898. Chief of the Earotonga Government.

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Enclosure No. 2. Earotonga Council.—Appointment to beplace Makea Daniela. 1. It is hereby enacted by the Earotonga Council that F. Goo Iwin be appointed to take the offices previously held by Makea Daniela, and he shall, in future, do all the work temporarily until the Arikis and the Earotonga Council make a definite appointment for a person to do the work. The Arikis and the Earotonga Council will hereafter do this. 2. It is enacted by the Earotonga Council that F. Goodwin, who has received appointment by the Arikis, is hereby appointed interpreter to the Earotonga Government and the Council. 3. It is hereby enacted by the Earotonga Council that the salaries previously paid to Makea Daniela shall be paid to his successor, F. Goodwin ; also all moneys previously paid for translating and interpreting for the Earotonga Government and the Council. Samuela, Acting Chairman. Tinomana, Ariki, Earotonga, 11th February, 1898. Chief of the Earotonga Government.

Enclosure No. 3. May it please your Excellency,— Earotonga, 17th February, 1898. On the 14th February, 1898, the enclosed threatening letter was sent to me by the British Eesident, my reply to which I enclose. I was appointed Clerk pro tern, to the Arikis' Council and Parliament on the resignation of Makea Daniela, on the 6th September, 1897, as the enclosed copy of my appointment will show. Mr. Moss has always refused to confirm my appointment. Since the 6th September, 1897, 1 have attended meetings of the Cook Islands Parliament and the Arikis' Council, and have done the work of Clerk, and only now does Mr. Moss write to me disapproving of my doing so. If I have been guilty of doing an illegal act in accepting the appointment of the Arikis I was not aware of it, and I pray your Excellency to let me know if I have done so. I have, &c, His Excellency Lord Eanfurly, K.CM.G., &c, Frederick Goodwin. Governor of New Zealand.

Sub-enclosure. Sic,— - British Eesidency, Earotonga, 14th February, 1898. I warn you to cease further interference with the Arikis' and Earotonga Council. Should you disregard this warning you will be accessory to any illegal act which may be committed by the Arikis or Council, and you will be proceeded against as an accessory when fitting opportunity shall occur. I have, &c, Fbedeeick J. Moss, Mr. Frederick Goodwin, Earotonga. British Eesident.

Enclosure No. 4. Sic, — Earotonga, 17th February, 1898. I have to acknowledge receipt of your letter of the 14th February, 1898. Please forward the enclosed petition to His Excellency the Governor of New Zealand at the earliest opportunity. I have, &c, F. J. Moss, Esq., British Eesident. Fbedeeick Goodwin.

Enclosure No. 5. We, Arikis of Earotonga, appoint Mr. F. Goodwin as our Clerk for our Government of the Cook Islands Federation ; also our interpreter for the translations of the letters we may have to forward to all as may be necessary; also appoint him to interpret in every meeting where the English language will be used. Signed, acknowledged, and declared our will and desire by us. Na Makea, Ariki, Earotonga, 6th September, 1897. Chief of the Cook Islands Government. I do hereby certify that the above is a true translation of the original document in the native language on the above date. A. H. Beown.

B—A. 4.

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No. 24. Mr. F. J. Moss to His Excellency the Govebnob. My Lord, — Cook Islands, British Eesidency, Earotonga, 23rd February, 1898. A letter to your Excellency (dated the 2nd February) from Makea, Ariki, was, on receipt, sent from my house without being handed to me, as I had been ill for some time, and my doctor prohibited all further work by that mail. My previous despatches by that mail render little remark on Makea's letter to be necessary. The composition is of her European prompters, and the leading ideas of having exclusive control of " our money " and " our own property "have unfortunately been too strongly planted in her mind and in that of the Arikis and chiefs with her. Much trouble will come from this if not efficiently arrested. In the letter itself many statements entirely unfounded are placed in Makea's mouth. For example, that " the Torea newspaper, we knew, was the paper of the British Eesident," which, in reality, was entirely the property of Mr. Nicholas. The person referred to as " Owen " was employed for more than a year by Mr. Nicholas as printer and as editor of the little paper. The statement that " the paper became the source of trouble between the Maoris and the foreigners " is heard for the first time, and I believe it to be entirely untrue. That "the Arikis do not like H. Nicholas "is equally new. He has been more than thirty years in Earotonga, popular and influential with natives of all classes, a large trader and employer of labour, and used to say proudly that during all his stay had never been in serious quarrel with any native. I may add that this feeling of Makea is recent, and due only to his refusal to act with her and with the other Arikis, or with the Europeans who were persuading them, as he considered that mischief only could follow to the Arikis and to the islands. Of the correspondence and communications between Tepou and H. Nicholas which are referred to by Makea I have no information. The translation attached by Goodwin to Makea's letter to your Excellency, that I had replied to her application to me as "We must leave the press where it was "is misleading. The Maori words used, by me were " tuatua apii," being clearly my " advice " or " word to teach " only. I feel bound to add to your Excellency my belief of the need as soon as possible after the end of the hurricane season of a Judicial Commissioner coming here from Fiji in one of Her Majesty's ships. This will enable me to stop further mischievous interference and vindicate among Arikis and natives the authority of the Queen, an indispensable preliminary to the future mode of government, whichever it may be. I have, &c, Fbedeeick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

Subenclosure to No. 21.

No. 25. Mr. F. J. Moss to His Excellency the Govebnob. My Lord, — Cook Islands, British Eesidency, Earotonga, 24th February, 1898. I have the honour to enclose letter from me to Makea Takau, Chief of the Government of the Federation, and dated the 12th February. This letter is in continuance of the correspondence in my despatch (3/98) of the 3rd February to your Excellency. I may observe, with reference to the style above of "Makea Takau," that it was adopted in the Constitution Act of 1891 to define Makea as the elected chief, and not holding the position by any rights as Ariki. The name " Takau "is ancestral, as indicating one who had taken twenty heads in an old battle. I have, &c, Fbedeeick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

No. 20.

Enclosure. Madam,— 12th February, 1898. I have not received from you an answer to my letter of the 22nd January. It is my duty as British Eesident finally to warn you that, failing such answer, you will become, equally with Tepou-o-te-rangi and other persons, liable for due penalty, which they will receive for their outrage on the 17th January on the Protectorate Power and on the authority of Her Majesty the Queen. Enough. From the Beitish Eesident (Frederick J. Moss). Makea Takau, Chief of the Government of the Federation.

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No. 26. Sir James Peendeegast to His Excellency the Goveenoe. My Loed, — Government House, Wellington, 28th February, 1898. I have the honour to forward a paper prepared by the Licensing Officer at Earotonga relating to the working of the licensing-law in force there. I have, &c, His Excellency the Eight Hon. the Earl of Eanfurly, &c, James Peendeegast. Governor of New Zealand.

Enclosure. ■Sib, — Earotonga, Ist February, 1898. In accordance with your request, I have the honour to forward the following report :— The liquor-law (Earotonga Council) of 1890, passed by the Earotonga Council, and approved by the British Eesident, applies only to the Island of Earotonga. No law regarding liquor save total prohibition exists in any other island of the group to my knowledge. For some six years after the law first came into operation I cannot say, with one exception, that any complaint could reasonably be made. The exception to which I allude is the signing of permits by persons authorised by the Arikis to do so. These persons were in the habit of making a charge for issuing the permission to purchase liquor as required by law. I remonstrated with them repeatedly, but without any permanent improvement. My remonstrances might meet with attention for a short time, but the old indiscriminate issuing of permits was soon resumed. Ultimately I was compelled to refuse all permits not signed by the Ariki's own hand, and I still do so. The result has been that very few natives now present themselves with permissions to purchase drink—in fact, as at present administered, almost "total prohibition" has been the result for the natives. Eetailing liquor must also have received a great check by my action in this matter, as suspected retailers can no longer send natives to purchase permits and obtain liquor to dispose of by the glass or otherwise. I have found Europeans and other foreigners far more to the front in abusing the liquor-law than the natives, both in resorting to various subterfuges to obtain liquor and in deceiving me as to the purposes for which such liquor was required. Whenever such practices have come under my notice I have prosecuted the parties, and in some cases a heavy penalty has been inflicted on the offenders. I do not think it necessary to mention names, but shall do so if required. I cannot supply particulars of convictions for drunkenness, that being in the hands of the Judges. I attribute the paucity of convictions to the incompetence of the police, and their indifference, and to the partiality on the part of the Judges. Natives will not prosecute their own relatives and friends, nor will the Judges convict under similar circumstances. I look on it as hopeless to expect natives of this group to act impartially or efficiently as police ; they are all more or less related to each other, no matter from what island of the group they come. Prosecutions will not be properly entered upon until a European is placed in charge of the police, and the natives employed under him are brought from Fiji or elsewhere, and not in any way connected with the group. As at present administered —that is to say, with the restriction regarding permission to purchase being signed only by the Ariki's own hand —I do not think any improvement can be effected. Small abuses may occur from time to time, but I cannot see how, without legislation altering the whole system, these could be prevented. The main feature of abuse in the past has been the issue of permits to natives, and that, as before pointed out, I have stopped. To my mind, legislation altering the entire system might be worthy of considerat on. Two methods present themselves —viz., total prohibition for foreigners and natives alike. The island is isolated, and, although this system failed in the past, it is now quite practicable under present circumstances. Before the establishment of Customhouses and officers in the group no check of any kind was possible on vessels doing business here. The necessity of captains of ships returning landing certificates for all liquor shipped as cargo to port of shipment now imposes a check which did not previously exist. Of course, European officers would have to be appointed for each principal island of the group, as natives are not to be depended on. The second alternative points to some adaptation of the Gottenberg system, or Government control of the trade. The Government should in that case be the only importer of and dealer in liquor. A house should be opened in Avarua by the Government, and some proper and respectable person employed to conduct it. Liquor could be sold by the glass, to be drunk on the premises standing, no seats being allowed ; not more than, say, one pint of spirits allowed to be purchased and taken home at one time, except on special occasions, such as a large social gathering or medical order, wine and beer to be specially provided for. The isolation of the island would be in its favour, and foreigners and natives could in that case be treated alike. I have to thank you for your suggestion about opening an office for the issue of permits in a more central position, and have to report my doing so with satisfactory results. I have, &c, J. H. Gaeniee, His Honour Sir James Prendergast, Wellington. Licensing Officer.

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No. 27. His Excellency the Governor to Mr. F. J. Moss. Sir, — Government House, Wellington, Ist March, 1898. I have the honour to acknowledge your despatch (3/98) dated the 3rd February, 1898, and, with reference to your application therein to prosecute Tepou-o-te-rangi and other persons, who had, on the 17th January, 1898, forcibly broken open the house containing the press and types, as well as other property belonging to Mr. Nicholas, and removed them to premises by Tepou, I have consulted my Ministers, and now grant the authority you desire to prosecute the offenders. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. Eanfurly, Governor.

No. 20.

No. 28. F. J. Moss to His Excellency the Govebnob. My Lord, — Cook Islands, British Eesidency, Earotonga, 2nd March, 1898. I have the honour to acknowledge receipt of your Excellency's despatch of the 4th February, informing me that his Honour Sir James Prendergast's report has been received, and sent to the Secretary of State for the Colonies prior to decision on the various matters in question. I have made known the information generally to the Arikis and others interested, as requested. I have, &c, Frederick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

No. 22.

No. 29. The Peivate Secbetaey to Mr. F. G. Moss. Deae Sic, — Government House, Wellington, sth March, 1898. I am directed by His Excellency to acknowledge your despatch, dated the 4th February,. 1898, enclosing letters. The despatch (49/98) by this mail practically answers Na Makea Ariki's letters. I have, &c, F. G. Moss, Esq., British Eesident, Earotonga. Dudley Alexandee.

No. 21. No. 27.

No. 30. His Excellency the Govebnob to Mr. F. J. Moss. Sib, — Government House, Wellington, Ist April, 1898. I have the honour to acknowledge your despatch No. 5/98, enclosing a letter from Mr. Goodwin. I should be obliged if you would inform Mr. Goodwin that, as the report of the Chief Justice in the Cook Islands is now before the Secretary of State for the Colonies, I am unable to give his letter full consideration until I shall have received instructions from Her Majesty's Ministers regarding the late inquiry. The matter referred to is so entirely absorbed in the question at first in dispute that the reply must hinge on the view taken in general on this question by the Secretary of State for the Colonies. I may inform you I have asked that this decision should be, if possible, cabled to me. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. Eanfuely, Governor.

Approximate Cost of Paper.— Preparation (not given); printing, (1,400 copies), £36 14s. 6d.

No. 23.

By Authority : John Mackay, Government Printer, Wellington. —1898.

Price Is. 3d.]