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Mr. Bird. You never reported it yourself?
A.-No.
Q.
mag gag
-You have known Mr. Alves a long time, I suppose ?
A. Since he joined the Government service.
Q.--You never suspected him?
A.-No.
Q.--You never had any idea that he was speculating heavily, or spending too much money in his private life?
A.--No, I never thought that.
Q-You never thought that he spent more than he ought to?
A.—No, I was always under the impression that his Kowloon lot would turn out a good concern for him.
Mr. Thurburn.--As regards the money that came in from other departments such as the Magistracy-what was the method of receiving it?
A.--That goes to the Bank.
Q--It goes into your books?
A. Yes.
Q.--You get a memo?
A.-I get a receipt from the Bank.
Q. And you did not consider that the Treasury was at all responsible for the accounts being correct--for instance the accounts of the Magistracy?
A.-No, I simply took their statements, and the money was paid into the Bank.
The Chairman.-And you gave the Head of the Department a receipt from the Treasury?
A. Yes.
Mr. Thurburn produced the balance sheet giving the details of receipts as published in the Gazette and witness explained through which Department the several amounts were received and what were paid direct into the Treasury.
Mr. Thurburn.--The only two large items paid direct into the Treasury are the assessed taxes and Crown Rent?
A.--Yes.
Q.-The other things are all checked by the Departments?
A. Yes. In my opinion if Alves had not had the power to sign the receipt he could not have committed a fraud. He had sole power over the book however, and power to sign the receipt.
Q.--You think it was a mistake of Mr. Lister to make that system?
A. Yes.
Mr. Bird. If there were two officers to sign, it would be all right?
A. Yes.
Mr. Thurburn.-Except of course if you signed without checking, and without seeing whether the counterfoil was correct?
A. Yes.