Final.

See Ko Shun's evidence. Pages 1286/ 1289.

185 (42)

vote, in exactly the same manner that the head of one of the large spending Depart- ments, the Public Works Department, for example, is responsible to Your Excel- lency for a similar vote.

379. The Sanitary and Building Board will have no power to spend more then the amount voted and cannot therefore incur expenditure which has not been authorised.

It will only remain with the Board to make such recommendations as may at times appear desirable if the vote is likely to be exceeded and this can be rejected by the Governor, or laid before the Legislative Council, if approved.

380. Though it is true there must be an unofficial majority on the Sanitary and Building Board, their powers are controlled by the Governor, who with an official majority on the Legislative Council will, as beretofore, direct the finances of the Colony, and keep such check as may be necessary on the spendif powers of the Board, as is now done in the case of any purely Government Department.

381. We would beg to remind Your Excellency that for many years the Sanitary Board had the control of the money voted for the Department and that this was confirmed by the Principal Ordinance No. 1 of 1903.

This power, which we now ask be returned to the Board, was only taken away and transferred to the President of the Board by the passing of the Amend- ing Ordinance No. 23 of 1903.

382. Before closing the Report, the Members of the Commission consider it desirable to make some reference to the nature of the evidence laid before them, and the great difficulty experienced in sifting out the truth from the mass of evidence given.

383. It was reported quite unofficially that so soon as it was generally known Your Excellency intended to appoint a Commission to enquire into the working of the Sanitary Department, steps were taken by individuals to destroy traces of what might prove to be incriminating evidence."

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384. We were further given to understand that in certain cases some of the staff of the Sanitary Department, who have had irregular dealings with certain Chinese contractors and others, actually called upon these men and suggested the advisability of destroying such incriminating documents as might be in their possession.

385. The Commissioners from the first found that all classes of Chinese were most reluctant to give evidence of any description and in many cases were obvi- ously doing all possible to evade meeting the enquiries of the Commissioners for fear of the consequences to themselves if they gave evidence against the Sanitary Inspectors.

386. Fortunately we were able in a few instances to obtain possession of books which have enabled us to follow up a number of cases where bribes or black- mail have been extorted, but in most of the cases where leading contractors and others have been before the Commission, no proper books have been produced.

387. It is of course well known that the ordinary business Chinaman has a very perfect system of book-keeping, and in those cases where the existence of these documents were denied, we considered that we were justified in assuming that there are reasons why the books could not be put before us.

388. We must remind Your Excellency that in China the system of black- mailing is unfortunately a matter of every day occurrence amongst Government officials (Yamen runners and others) and the civil population. Any Chinaman consequently settling here not only accepts but is quite prepared to find similar conditions prevailing in this Colony as that which obtains in his own country.

389. Conclusive evidence has been brought before us to shew that bribing and blackmailing is of common occurrence, permeating the entire service from the Senior Inspectors downwards. This being so, the Chinese as a matter of course-

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