CO129-629-4 Commerce and Industry Department- supplies branch. Includes a statement of accounts for May 1946-March 1950-... 1-11-1951 - 31-1-1952 — Page 21

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LOWE. BINGHAM & MATTHEWS, HONG KONG

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Stocks on Hand - $61.188.758.72

No complete over-all physical stocktaking was

carried out but a physical test of independently selected

lots was conducted as at 31st March, 1951, by Messrs.

Carmichael & Clarke, Surveyors, and their survey report

was submitted for our inspection. We tested movements

in the Stock Accounting Records to the extent we deemed

appropriate and compared the quantities shown on the

certified stock lists with the Stock Accounting Records

maintained by Supplies Branch and with the survey report

made by Messrs. Carmichael & Clarke and found them to be

in accordance therewith.

Food stocks have been valued at C.I.F. cost

and we have tested such costs against applicable support-

ing vouchers.

Coal stocks have been valued at landed cost

and we have tested such costs against applicable support-

ing vouchers. Firewood stocks (ex Sandakan) have been

valued at average landed cost less an allowance of 20%

($351,770.22) to cover estimated loss of weight in storage.

Expert opinion was taken regarding the estimated

loss in weight of Firewood during storage. The written

opinion of the independent expert consulted, Mr. K.L. Ho

of Wing Wah Company, stated, inter alia, "I wish to con-

firm my statement that firewood composed of logs and

split logs of the average quality imported from Sandakan

will lose weight due to the evaporation of the moisture content, to the extent of 15% approximately after a stor-

age period of twelve months. For firewood, mostly un-

split logs imported from Semporna, the loss of weight

will be as high as 20% after a storage period of twelve

months because there is a ten foot tide around the man-