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Enclosure 4.

Sir,

Harbour Department,

Hongkong, 8tn. March, 1913.

209

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In further reply to your letter No. 5760/1910,

of the 5th. November, 1912, and subsequent correspondence, I have the honour to submit the following representations on the subject of the defalcations of the shroff of this Department in October,

1910.

2.

The charges contained in the minute from the Acting Colonial Treasurer, of 26th. October, 1910, apparently are:-

(1) The existence of certain 1.0.U's in the Sailor's

Home safe.

(This is also referred to in paragraph 8 of the Local

Auditor's letter of 28.10.10, and of the Assistant

Local Auditor's letter of the 27th.)

As tile occurrence referred to is stated to have

taken place on Saturday 22nd. October, 1910, the day upon which the shroff ran away, I had no knowledge of it until after the

latter event.

As I have before pointed out, the Loney in the

Seilor's Home safe was not Covernment Loney, but belonged to the

Sailor's Home, a private concern, which has never had any con- -nection with the Government. The safe was provided for the use of the saroff, who was responsible for its contents, and was fully

secured. llo Government money was ever kept in this safe.

(ii).

That receipts were habitually sent out ready signed, and given to the shroff for collection. (This is also stated by the Local Auditor, in

his paragraph 3).

This I absolutely deny. The receipts were not signed before being sent out, and they were not handed to the shroff for collection, but for distribution. He had the strictest orders not to collect any money outside the office, and had no authority to sign any receipts himself.

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