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34.

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fact is that not only did the Harbour Department fail to make payment into the bank at the close of business on subh day as required by Colonial Office rule 328, but that payment was not even made every other day, as Commander Taylor suggests it was: for from paragraph 4 of Mr Vallin's report datod the 27th October 1910 it appears that the shroff at times did "not account for his daily collections for 5 or 6 days*

So recently however as 3rd March 1908 Commander Taylor minuted that the Sullore' Home had no connection with the Har- bour Department and that the duties of shroff to that establish- ment were not being performed by anyone in the government ser- vice: (0.8.0. 53/1894). He thereby, whether intentionally or not, completely misled the government as to the actual state of affairs. For down to the 22nd October the Harbour Office shroff was also,as shown in paragraph 23 of this memorandum, shroff to the Sailor's Home.

25, With regard to the keeping of I.0.Us etc in a public safe (paras 8-10) Commander Taylor's defence is that the safe in question was the property, not of the government, but of the Sailor's Home: that the manager of the Home, who is not a government servant, keeps the key of the safe and permits, for his own convenience, the Harbour Office shroff to have a dupli- Gate key: and that the shroff is eo highly secured in respect of Sailor's Home money that any embezzlements of such money can

be recovered in full from the sureties. Ae, however, the Har- bour Master was Honorary Secretary of the Jailors' Home, and as the accounts of the Sailors' Home were kept by the lat clerk in the Mercantile Marine Office, and as the shroff bf the sailors' Home was also shroff in the Harbour Department, it might not have been too much to expect that Commander Taylor would take the same precautions with regard to the safe in the Sailors' Home which are taken with regard to government safes.

Wong Hau- nam actually absconded with $1,703.76 of Sailors' Home monoy; and, although that sum was covered by a bond for 3,000 and was recovered from the sureties in full, the very fact of the

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