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[Page 149]
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existing, and no doubt the Merchants here are expecting that other similar cargoes may arrive, and they are, therefore, hesitating about purchasing the cargo from the British Ship, or supporting Burns, Philp & Coy's proposed monthly service.
On the same day as the Expedition was despatched, Mr Teufert made his appearance at the outposts, and was promptly arrested and sent in to Rabaul. On questioning him he admitted having bought the cargo from Macassar. I charged him with having surreptitiously landed the stores at Vuna Paka, and intimated that I regarded them as smuggled goods and intended to impound the same. He informed me that although he had paid no duty on the goods he had declared the cargo at his first Port of call, viz, Eitape in Kaiser Wilhelmsland, which course he stated was his usual one under German rule, and that his Company had a running account with the Government and it was not customary for him to pay the duty for 30 days afterwards. I doubted his word and asked him to produce any documentary evidence that his statement was correct. but this he was unable to do, and as he admitted to me in the course of examination that several statements he had made to the Provost Marshall and to me were untrue, I told him that I could not rely on his word and must regard the goods as smuggled. He informed me that the "Siar" - which is a Steamer about the size of the "Sumatra" - was the property of the New Guinea Coy. He would not state where she was then, but I found on examination of his letter copying book, which was seized among his belongings, that he had given instructions to the Captain of the Ship to take her to the vicinity of Kaewieng and hide her there. On being questioned he admitted that this was so.
Up to the time of the arrival of Mr. Teufert the other Merchants seemed to be disposed to purchase the "Moresby's" cargo on arrival, but Mr. Teufert exercises a dominating influence over all the others, and as a result of his appearance no business whatever has been transacted.
In view of all the circumstances mentioned, and the fact that Mr. Teufert has lied to me after having taken the oath of neutrality, I consider him a very disturbing factor and a menace to the Administration here, and altogether an undesirable man to retain in the Colony. I sent for him and apprised him of this, and handed him over to the custody of the Provost Marshall with a view to his being sent to Sydney under escort on board the S.S. "Moresby", which leaves here for Suva today.
The "Moresby" has discharged her cargo here, and it has been placed in store under the charge of Mr. Dupain, who came as supercargo on the "Moresby", and I have no doubt that with the removal of Mr. Teufert's influence, the other Merchants will come to their senses and business will result, but until this takes place I do not think it advisable for the "Matunga", which I believe it was proposed to despatch on the 23rd inst., should leave Australia, and I advised you to this effect by wireless yesterday."