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Q.-Was it not your business to see that it was balanced, to call attention to the fact that it was not balanced?
A.-I did call attention to it, the attention both of the Treasurer himself and the Acting Treasurer.
The Chairman.--About what time was that?
A.—I did so on several occasions, but I should not like to fix the date on which I said it, although I know that I did.
Q.-Who was Acting Colonial Treasurer?
A.-Mr. May, and I believe he called the attention of Alves to it, but Alves always said he was so busy that he could not do it, and I was weak enough to accept that as a reason, instead of reporting him.
The Chairman.—Am I right in saying that the only means by which he could have taken this money was by issuing receipts which were not in these receipt books? You see, supposing he had used the receipts in these books and supposing the counterfoils were correct then he would have been detected at once?
A.-If the counterfoils had been correct I should have detected it at once, if all the counterfoils were filled out and correct.
Q.-As far as you have seen for 1891 and 1892 the counterfoils were correct with the small exceptions you have mentioned?
A. Yes, with those small exceptions.
Q.-Then these being correct he must have used some other receipts?
A. Yes.
Q. When he wanted to make away with money?
A. Yes.
Mr. Bird. We have had it explained that he tore them out at the end of the book?
A. Yes, but he must also have had some blank receipts of his own.
The Chairman. He could easily have them printed?
A. Yes.
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Q.-That being the case the only check would have been at the end of the year by balancing the Rent Roll book and comparing it with the actual receipts in the Treasury?
A.-Yes.
Q.-And therefore as long as the book was not balanced there could be no real
audit?
A. That is so. As long as the book was not balanced the audit was not complete. Mr. Thurburn.-In the Office itself it is possible to carry out an actual check by having one of the Treasury officers checking these counterfoils with the book?
A.-Except as I say if he issued these false receipts and chose to enter them in the Rent Roll. Nobody could check that either the Treasurer or Auditor.
Mr. Bird. If periodical balances were taken out it would be all right.
Mr. Thurburn.---Is the system which you have for balancing one that would balance, say once in three months, without taking any long time? If the taxes were paid in as quickly as you told us they were. you would not think there would be a large amount outstanding. Are the taxes due once a year?
A.-Twice.
Q-Well if you balanced every six months you would be able to discover if any defalcations were going on?
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