Sessional_Paper_1893 — Page 588

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The Chairman.-You could not have detected the fraud earlier unless the book was balanced?

A.-No.

Q-How did you actually detect it?

A.—I was checking the December account and going through the counterfoils. I first checked them with the daily receipt book as kept by Alves. I then checked that with the Rent Roll and I lighted on a name in which there was a difference between the counter- foil and the rent roll.

Q. What did you do then?

A.-I spoke to Alves about it.

Q-Had he no explanation?

A. -He said "It must be a mistake.'

I had always found that he was a careful

man and a good worker. Mr. Ede was the person who had paid the money and he said that he would enquire from Mr. Ede.

Q.-You did not suspect anything wrong?

+

A.-Not at the moment.

Mr. Thurburn. What day was that?

A.—It was on the Saturday. On the same day I found two similar cases. Q.-Did you suspect him then?

A.-Yes.

Q.-You drew Mr. Mitchell-Innes' attention to it?

A.-I went to the club before tiffin intending to see Mr. Shelton Hooper and ask him to show me his receipts and see whether they really did differ. He said he would send them in during the afternoon, but I did not hear anything from him. On Monday morning I went to the Treasury first thing and Mr. Shelton Hooper produced the receipts and I then saw that the thing was utterly wrong. I waited for Mr. Mitchell-Innes and I went to the Hotel to look for him. Not finding him there I returned and on the way I met him and I told him then about it.

The Chairman.-On that day was the book for 1891 balanced?

A.-No, that has all been balanced since.

Q.-And the 1890 book?

A. Has been balanced since.

Q.-It was not then?

A.-No.

Mr. Thurburn.-What did Mr. Mitchell Innes do? What did he say to Alves?

A. He came down to the Office between a quarter to 2 and 2 o'clock on Monday afternoon and immediately sent for Alves and asked him what was the meaning of this. In the meantime during the morning I had asked Alves about those other cases and Alves said "they must be mistakes" and he fiddled about the office doing his own work. Mr. Mitchell Innes when he came sent for Mr. Shelton Hooper who came and brought his receipts and we compared them and showed them to Alves.

The Chairman.What did Alves say?

A.-He said "Damn, it must be a mistake I cannot understand it at all.”

Mr. Thurburn.-The suspicion was not strong enough to have him arrested?

A.---I do not know. I handed him over to the executive and had nothing more to do with the matter.