CO129-387 - Individuals - 1911 — Page 216

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enquiry and assurances from subordinates. I personally enquired from

the principal firms (shipping and otherwise) from whom the shroff had

been in the habit of collecting money as to whether they had received my

circular, and were acting in accordance with its terms, and received, im

each case, an affirmative reply. These enquiries were verbal, and were

made, as time and opportunity permitted, from the gentlemen in the

several firms responsible for the particular branches, in those firms, concerned. It subsequently transpired that it was from three of these very firms, and from these three only, that the missing money was col- -lected. From the remainder, and vast majority, of the firms concerned, no money was collected after the issue of my circular, except in the Harbour Office itself, or by cheque. It cannot, therefore, be said that the new scheme "was not in operation at all". To the best of my knowledge and belief, "the new scheme was working smoothly and well", and I submit that I was justified, by the information I was able to collect, in holding that belief.

5. I did not make any enquiries from the Treasury or the Bank, because they had no information on the subject not already in my possession, (unless they employed detectives to watch the shroff, a course for taking which there were no grounds at the time).

No money was ever paid into the bank without my signature (or that of the Assis- -tant Harbour Master or 1st Clerk) on the "paying-in sheet", which was again countersigned by me, the same day, after having been receipted at the bank. These receipts, and those from the Treasury, were always seen, and the latter compared with the entries in the Collection (i.e. Cash-) books, by me, personally. Neither the Treasury nor the bank had the advantage of constant access to these books, which were kept in my office, nor had they any information on the subject beyond that ad- -forded to them by me. The Auditors made a monthly examination of the books, but were, equally with myself, unable to discover the fact that,

in