(8)
in
receipt to Alves and Alves thereupon altered the amount. I mean in this way. Supposing a man to have come to Alves and said "Here is $100 I wish to pay bank notes. Alves would make out the receipt like this (printed form produced). He would say "Received from X. Y. 3 the sum of ," and instead of writing $100 he would write $10 "being the amount of rent due for Lot so and so." As to the written amount as the shroff could not read English he might fill that in in any way he liked, or leave it blank. In the receipt be would write "Lot so and so Received $10." He would then hand the shroff $10, and the other $90 he would put in his pocket. The shroff would put his chop on, and as the person had come to Alves personally the shroff did not know whom to return it to. Alves would then say "If you give it to me I will send it to the man. I know him." The shroff would then hand back the receipt to Alves who would add another "0" which satisfied the holder, and he left the counterfoil untouched. At the end of the day the shroff would come and say “I have received $10, does this correspond with your book?" The cashier would tell him that there was $10 to come in the cash book and it was duly passed in. The Auditor would come in and look at the counterfoil and see "Received $10" and go to the cash book and find the $10 entered.
The Chairman.-Somebody ought to have looked at the Rent Roll.
Mr. Bird. He would have seen that such and such a lot ought to have paid more than $10.
Witness.-The Auditor has told me that with the staff at his disposal he did not see how he could check every item, but he checked very frequently.
The Chairman.-Had you any check on your own men?
Office.
A.-The system was supposed to be checked by the periodic surveys by the Audit
Q-It seems that it did not, when a man could put down say "Lot 200 received $10" and that passed when the rent was perhaps $100, and the Auditor might have seen it in a second by looking at the Roll. You say according to your explanation that everything was left in the hands of Alves because the person who received the money did not know English and could not see how much he was to receive. That is why I asked you whether there was anything to show the shroff how much he ought
to receive.
A. He could read figures. I have counterfoils also with a forged chop upon them. Mr. Bird.-Have you counterfoils of $10 when it ought to be $100 ?
The Chairman.-I should like to see more of these counterfoils with the incorrect
amount.
Witness.-Yes. I am keeping them in the safe. I will bring them round.
Mr. Bird. Is that the only way he could have done it?
A.-The two ways we suppose are: by altering what the shroff had passed and by using a bogus receipt book and forging the shroff's chop. We have some instances of that.
Mr. Bird.-How did he forge the chop?
A. He evidently has done so. The chop has been submitted to Chinese experts -dye cutters-and they say it is a forgery.
The Chairman.--You say it was no part of Alves' duty to receive money. Was there any check to prevent him from receiving money? How was it that he was allowed to receive so much money if it was no part of his duty?
A.--It is a system in Government Offices for people to walk in and out; and if they went into Alves and paid him money it would not come to my notice, and they would pay him. The cashier, however, ought to have noticed it and put a stop to it. The cashier, however, says that he never saw it done; but that I do not believe.