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made an inspection at any time after the 7th. June, as provided

by General Order 317 (2), the counterfoils would at once have made

the fraud apparent.

7.

It appears to us that the system of checking

employed by the Assistant Harbour Master was most inadequate. The shroff was responsible for the entries in the collection book,

which contained no reference by way of Audit number against the

various items, and it would therefore seem a matter of elementary

precaution that Mr. Jones should look back at least at the last

counterfoil which purported to bear his initials. The shroff did

not alter the date on such counterfoils, which accordingly re-

-mained of the same date as the counterfoils recorded in the

collection book. If for instance Mr. Jones had looked back on the

9th. June he would at once have found that sixty-one licenses had

been issued on that date in addition to the eight which appeared

in the collection book. Had he looked on the 14th. June at the

last counterfoil he would move found that eighty-four licences

issued on the 12th. and 13th. June were not accounted for in the

collection book. If the issue of Audit-numbered books had been

supervised it would not be too much to expect that Mr. Jones should make some enquiry in view of the small number of forms checked by him, as to the great rapidity with which the books were used up. A most striking commentary upon the system of checking employed is shown in the conduct of the shroff who had so complete a disregard for the intelligence and diligence of his supervising officers that he carried on for some three weeks a fraud immediately apparent upon the face of his books to any investigator using

ordinary care.

8.

We are of opinion that Mr. Lenfestey's conduct in this matter amounts to neglect and wilful fault within the meaning of General Order No. 309. Mr. Lenfestey is in charge of the Junk Office, as stated in the orders issued by Commander Beckwith, a copy of which is attached. A large part of his time

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