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Section VI.
MATTERS TOUCHING THE REGISTRY OF THE SUPREME COURT.
86. As mentioned in the introductory paragraphs of this Report, matters touching the Registry have already been investigated by a Committee of Enquiry, and by a Board of Survey, and after reading and considering the evidence and Reports we have not deemed it necessary to hear any further witnesses.
87. The Committee of Enquiry investigated the failure of the officers of the Registry to procure, from the Auctioneering and Brokering Company, Limited, prompt payment of approximately $30,000.00, the proceeds of some 128 sales which had been conducted by the Company under the orders of the Court in 1925 and 1926. This failure resulted in an ultimate loss to the Government of $7,818.97.
Somewhat complicated relations then existed between the Company and the Registry. The S.S., "Ling Nam" had been seized at the instance of certain judgement creditors and as they had failed to furnish funds for the maintenance and safeguarding of the ship, an arrangement had been made by the late Mr. A. W. Hill, acting in a capacity similar to that of the Admiralty Marshal in England, for the Company to provide the requisite moneys. Under this arrangement the Company furnished, in cash and kind, $22,267.23.
The ship had been appraised at $270,000.00 and the Company was employed to conduct an auction which proved abortive owing to the conditions arising out of the strike and boycott.
On the evidence given before the Committee there is some doubt as to whether the Registrar and Deputy Registrar were aware of either the nature or the extent of this arrangement for providing moneys for the S.S. "Ling Nam", until such large sums had been advanced that they saw no alternative to continuing the arrangement.
They also appear to have been in the dark as to the extent of the Company's failure to make the necessary payments of the proceeds of sales.
From time to time solicitors and members of the public made complaints to the Registrar, and these were referred by him to the First Bailiff, who appears to have obtain- ed from the Company funds for the settlement of these pressing claims.
He also appears to have given to the Deputy Registrar frequent assurances that the proceeds of sales were being paid in with promptitude.
We conclude that the late Mr. Hill must have been well aware of the delays in pay- ment, but that he believed that on the ultimate settlement of the account between the Government and the Company in connection with the S.S. "Ling Nam" there would be a substantial balance in favour of the Company, and such would undoubtedly have been the case if the sale had proved successful and the Company thus become entitled to a commission.
88. If the Registrar or Deputy Registrar had made any searching investigation of the relevant books of account and Court files the position with regard to delays in payment must have been apparent. This investigation they did not make because they placed re- liance in the assurances given by the late Mr. Hill. It does not seem unreasonable that they should have relied on the word of an officer who had been on the staff of the Sup- reme Court since 1903, and who held so responsible a position as that of First Bailiff
89. The investigations of the Committee of Enquiry showed that the accounts of the Court were not kept in a satisfactory manner, but we do not consider it necessary in this Report to enter into details with regard to that matter. Since the Committee submitted its report an Accountant has been appointed for the Supreme Court, and we are satisfied that good progress has been made in putting the accounting operations of the Court on a satisfactory footing.
90. The Board of Survey investigated in the first place matters in connection with the deposits made by Fire, Marine and Life Insurance Companies. These were found to be on a whole in a satisfactory condition.
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