I

unfortunate that Mr. Guthrie who is I believe an Imperial Post Office Official Cd who was temporarily in charge of the agency did not thoroughly go

3. I regret to inform you that after making a complete check of

stook of stamps, postal mutter, paid money orders, oath and other

receipts which were prodused by the Postal agent! and the clerk in

charge I found a deficit of $4,142.56 for which no adequate expl.nation

could be givən.

4.

Before making any further comment on this unfortunate state of

affairs, I should like to place on record that the clerk in charge of the

Post Office, Mr. Sha Tu Chieh informed me that when I went to survey the

Postal Agency in 1919 he squared the sccounts by borrowing $3,000 and

paring it in. The Postal agent, Ir. Jallis, le aware that Mr. Shu Ta

Chish made this statesɛnt, It will bo sean from my report of 24.11.19

I objected to the large amount of cash.

1

5. The present state of affairs was discovered by the presant Postal

agent ir, šallis when he recently took over from Ir. Hilton who had been

rostalgent, I believe, for about nine month. r. Jillis reported a

deficit of $4,500 and on my first survey I made the defloit considerably

more, but later I found that credit for the remittance to Hankow had not

been allowed. If I should nave missed any further sum for which credit

should be given to the agency I shall be only too pleased to correct my

figure, us the accounts produced werd somewhat disc armeated and the clerk

in charge more inclined to talk than assist some receipt might not have

been produced, but I think it extremely mlikely.

6.

My opinion is that the losses or defalcations have been going

on for some considerable time, but I consider that it is extremely

unlikely whether any actual charge of defaleation could be made with any

hope of succ088.

7. I should like to be allowed to state that I consider it extremely

unfort mate

into the accounts and explain them when he handed them over to p.

Milton in 1921. The accounts are difficult to anyone who cannot

give his whole time to them, and it was Mr. Milton's first appointment

when he took over the agency in addition to his Consular duties.

8. I should like to place on record my thanks to Mesaru, Wallin

and wilton for the great assistance they gave 106.

I have, ato..

(Sd.) T. Dallin.

Assistant Arditor.

Assistant Auditor to juditor, Hongkong.

Awit Department, Hongkong.

24th November, 1919.

No. 59.

sir.

I have the honour to inform you that in accordance with your

instructions I left the Colony at 10 p.m. on the £ist instant on a

tour of inspection of the Postal Agency at Canton. I returned to the

Colony on the 23rd instant. I have to report that the account books

of the Postal agency have baan very budly kept, and had not been

written up since the 1st lovesber. after a great d al of trouble the

accounts were balanced and an emess of j43.00 was found which I requested

should be paid to the credit of the Government. The bank 400 cunt was

found to be overdram to the extent of $239.19, while the postal clerk

had a large sum of money in the safe, I requested that the larger part

of the money (1.0. $1000) should be paid inte the bank at once.

outstanding unpaid money orders amounted to $3137.46. I have to thank

The

*. Jagieson, the acting Postal agent, for the great assistance he gave

me with the accounts.

1 have, sto..

(ugd.}

T. Dallin.

Assistant apditor.

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