Enclosure No.4.

FURTHER REPORT ON THE DEFICIENCY OF COURT SALES.

37

As previously reported, Mr. Hill, the First

Beiliff, has for many years been in charge of all Court

sales and it has been his duty to supervise the auctions

and to see that the proceeds of sales were paid into

Court promptly. Mr. Melbourne has signed the orders for

scle, subsequently checked Mr. Hill's account Sales Book

and endorsed the auctioneer's cheques. On investigation

it has now been found that Mr. Hill entered in his

Account Sales Book meny sums as having been paid into

Court which had not been so paid. Both Mr. Melbourne and

myself unfortunately failed to notice this fact, as

the book appeared to be in order.

I am afraid that it is now certain that Mr.Hill

was financially interested in the auctioneering company,

as he lent it money to commerce business, and that he

connived at the retention by the auctioneers of the

proceeds of sale concealing it by false entries in his

bock. I do not think that he had any of the money

himself. He has been in a position of great responsibility for many years, and previous to the employment of the Auctioneering and Brokering Company Limited, has carried

out his duties to the complete satisfaction of Mr. Melbourne

and myself. He has been in an extremely bad state of health since the 21st August last and I have been unable to obtain any satisfactory statement from him as to the cause of the present state of affairs. After the 21st August last I had several interviews with L. . S. Hodge, Managing Director, and Wong Fung Sek, Director and Compradore of the Auctioneering and Brokering Company, Limited. They both assured me that all monies outstanding

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