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"office, Mr Gunthorpe, was superseded in the charge of the department by a Master of the Royal Navy, and Mr Gunthorpe reverted to his original position as 2nd Clerk.

An irregularity on the part of Mr Gunthorpe in reference to the pay list for February, and also Mr Newman's death, led to an investigation being instituted by Government into the state of the office, when it was found that some of the books had been kept very irregularly, there was a deficiency in the Chest to the extent of about $1,410.

Papers Nr.1 to 12 in appendix. The Auditor General's report, which is annexed, also the accompanying Correspondence, show that of this sum at least $400, by his own admission, was paid to Mr Gunthorpe for Emigration Brokers' licenses while he had charge of the Office, that no entries of these receipts appeared in the books of the office, that the money has not been paid into the public Treasury, and that Mr Gunthorpe declined to pay it in when officially called on to do so by the Colonial Secretary.

It appears also that Mr Gunthorpe at first, when questioned by the Auditor General, denied all knowledge of the brokers' licenses,

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