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Mr. Bird. I think that as the Auditor you should have insisted upon the balances being made out.
A. Yes, I ought to have reported the neglect to the Government.
Q. Did you insist in writing to the Treasurer that the balances should be made out?
A.-No, I simply mentioned it in conversation.
Q.-You really could not audit properly?
You will allow me to say one
A.-No, not unless there was a balance made out. thing and it is this. As I have told you before my audit consists in going to the Treasury and checking the amounts received month by month into the Treasury, but there is no annual account ever comes before me for audit. I make a monthly check but there is no annual account. If I had seen the annual account it would have impressed the want of a balance on my mind, although I admit that in neglecting to really insist upon its being done I was wrong.
The Chairman.-You arrived, Mr. Nicolle, in 1890 ?
A.-In 1890.
Q-Would you consider it part of your duty to see that the book of 1889 was
balanced?
A.-No, I should not have gone back beyond the time I actually came here. I was given this book for 1890 to examine and I had a look at the 1890 Rent Roll. I never looked at any book prior to 1890.
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Q. When did you say anything about the want of a balance?
A.-It was during the years 1891 and 1892 that I mentioned that the books were not balanced. I remember distinctly saying once to Mr. May something about it and he spoke to Alves and Alves came to me and said “Well, I am so frightfully busy I must take these books home and write them up there."
Mr. Thurburn. That is how he was able to destroy the previous books?
A.-That I do not know.
Mr. Bird. He had charge of the books?
A. Yes, the current books were kept in the safe.
Q.--And the old books?
A.-Were lying about.
Q-Under lock and key?
A.-No.
The Chairman.-So far as you possibly could examine the books and check them, you did?
A.--Yes, I did as far as I had time, but please remember that during 1890 my staff consisted of Mr. Ribeiro who was very old and not up to his work. During 1891 before Mr. Taverner came I had to teach him every single thing and take him round to the different Offices to show him the sort of examinations I had to do, and in September I gave him a fortnight's leave to go to Shanghai, and from that time up to January I had no assistance whatever.
Q.-So far as the Treasurer furnished you with books and vouchers you checked as far as-you could?
A. Yes.
Q.--And your checking did not disclose the defalcations because the book was not balanced?
A. Yes.