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APPENDIX B.
DOCUMENTS PUT IN BY THE CROWN.
Howard and Stephens' Claim.
No.
DATE.
DOCUMENTS FOR THE CROWN.
PAGE.
A.
423455 10 10 00
1
11th July, 1898.
10th June, 1905.
June,
Mr. Nicolle's report on godown books, Valuation by Mr. W. Danby,
Qualifications of Mr. A. S. Hooper, Valuation by Mr. Hooper,
36
40
42
42
Comparative list of assessments,
44
June, June,
Statement by Mr. Boulton,.......
45
List of assessment: Mr. Chapman,
45
8
""
List of adjoining godowns: Mr. Chapman,
46
B.
9 10
A 1.
Supplementary Documents.
Supplement to Mr. A. S. Hooper's Report, Supplement to Mr. Boulton's Report,
47
47
Memorandum on the Accounts of Howard's Godowns from 1898 to 30th June, 1898.
Mr. Nicolle's Memo. of 11th July, 1898.
In accordance with the arrangements made in C.S.O. 1067/98, I went to Mr. Howard's Office at 2.30 on the 7th instant to inspect the books, and I also went there again on Saturday, the 9th instant.
Mr. Howard placed all the books at my disposal and had been courteous enough to prepare for me a statement of the working account from 1885 to 31st December, 1897. These I checked with the books and added the figures for 1st half-year 1898. A Statement marked "A" giving these figures is attached.
In addition to the figures given by Mr. Howard certain payments appeared in the books which I consider may fairly be charged as working expenses although this is a matter of opinion, as Mr. Howard evidently did not think they should be included.
These payments comprise :--
1. Payment to Mr. Howard for Management.
2. Gratuities to Servants.
3. Share of profit to Compradore.
As regards (1.) I think the cost of management is a fair charge against the working account. Mr. Stephens takes no part in the management and has to bear half the cost.
As regards (2.) these are New Year's gratuities, and I believe it is the customs in firms where such gratuities are paid to enter them as charges in the working account, in fact in the earlier years they figure in the books in the charges account but later they were shown under profit and loss.
As regards (3.) it will be observed that only two payments were made, viz., in 1895 and 1896 and these payments were on account of 1894 and 1895, the two record years. It appears that when Mr. Howard was going on leave late in 1893 be promised the Compradore that if he looked after the business well and that the receipts exceeded a certain sum he would get one-third of any excess, and it appears to me probable that the record receipts in 1895 may be due to this. Mr. Stephens, I understand, objected to any further payments of this nature being made.
A further investigation of the books and a comparison of cash receipts with the gross earnings shewed that some small sums had been written off as bad debts, and these have to be deducted from the gross rentals. Mr. Howard shewed me these sums in the books and agreed with me that they should be deducted.