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The Chairman. He may have put in his first column the last six months' rent (To Hon. N. G. Mitchell Innes) Did you, when you took possession, examine the books to see what the system was respecting the receipt of money, and to ascertain whether there was any
efficient check?
A. Yes, as I got accustomed to the work I have been gradually trying to improve it. When I first took the position I knew nothing of Treasury work and for a time it was in the hands of subordinates.
Q. Did you see what system was in force for the receipt of money?
A. Yes, I got what assistance I could from subordinates.
Q-Was there any check respecting the daily receipt of money? Was there any check on the shroff, for instance, or on Alves?
A.-The Auditor does all that.
Q-In your Department you had no daily check?
A.-No, the checking of receipts is supposed to be the business of the Auditor. Mr. Bird. He does that once occasionally?
A. He comes every month and checks almost everything that passes through the Office.
Mr. Thurburn. It is not a half-yearly or yearly check?
A.No, I understand that he has to check at any time.
The Chairman.-Who was the Auditor when you were first there?
A.—Mr. Nicolle. He came in 1890 I believe.
Q.-As far as your own Department was concerned you had no check on the shroff or cashier?
A.-The system itself was supposed to be a check.
Q.--Let us see what it was. Was there anybody who could tell at the end of the day whether the monies received had been properly accounted for?
A. No, the receipt passed out of the Department, unless it was entered in the counterfoils. The counterfoils were left out for the inspection of the Auditor and the Auditor could at any time by looking at the counterfoil find whether the amount had gone into the books.
Mr. Thurburn. In fact, it was his duty to check the money received with every receipt?
A. That was what I always understood. I never quite knew what the Home Authorities wanted the Auditor to do. I understood that my business was to have a preliminary check on the expenditure.
The Chairman.--Did you not think that you were at all bound to look after the receipts?
A.-It is impossible for the Treasury to audit the receipts; we have no officers for the purpose.
Q. Did you not think it was your duty to have some check on your own officers? A-I thought that the check of the Audit Office was sufficient.
Q.-Can you tell us how these defalcations have occurred if Alves was supposed never to have received any money ?
A.-What I believe to be the case is that a large number of people who, I suppose, were friends of Alves came to him and paid their money to him in person, that when once he was able to handle the money, and as the shroff did not know English--that is to say he only knew figures-he was enabled to get the shroff to put his chop on the receipt. The shroff would do pretty well as he was told. The shroff would return the