The Hon. the Colonial Secretary to the Comptroller.
Sir,—
In reply to your letter of yesterday's date, I have to state that the substance of the objection made by me with respect to your memorandum attached to the Report of the Select Committee on the Dunedin Disputed Reserves was, that it accused Mr. Fitzherbert of a distinct breach of an understanding come to between that gentleman and yourself, as Comptroller, by which breach of understanding it is implied that Mr. Fitzherbert irregularly paid away a sum of £6,031 18s 9d. As there is not, as far as I am aware, any record of such understanding, I assume that it was a verbal one, and knowing from experience how frequently verbal understandings are interpreted differently by the parties to them (in good faith on both sides), I was unwilling that so grave an accusation should be made against a colleague who, being absent, is unable to state what interpretation he put on the understanding alleged to have been come to with him, as to which there is no record, and which the Assistant Treasurer not only does not corroborate, as referring to the £6,031 18s. 9d. in question, but believes that, so far as it existed, it referred to other moneys.
I further complained of the inference which might be drawn from the Report and your memorandum, that the money in question was public revenue and had been paid away without the authority of law, both of which positions I am not prepared to admit, knowing that in the action taken by Mr. Fitzherbert in the matter he was guided by the opinion of the Attorney-General.
I have, &c.,
E. W. Stafford.
J. E. FitzGerald,