Colonial Despatches

In February last, Mr Ball the Magistrate of the Cariboo District, who relieved the late Mr Brew in that capacity a few months before, reported to me in a Letter of which I annex a Copy, thathe he had detected the abstraction of a large sum from the Revenue during the years 1868 and 1869, by the late Clerk and Recorder of Mining claims, Mr Cochrane, who was, it is believed lost in the "City of Boston" Steamer on his way to England.

2. As Mr Cochrane, and Mr Brew—through whose carelessness—arising I believeonly only from the extremely feeble state of his health for a long time, this embezzlement has occurred, are both dead, it seemed very improbable that the defalcations could be recovered, but I directed the Auditor General to communicate at once with Mr Ball, to furnish him with all the information and Documentshe he asked for and to ascertain as fully as possible the amount and particulars of the sums received by Mr Cochrane and unaccounted for. These are now reported to amount to Five thousand, seven hundred, and Forty-five Dollars, received for Records of Mining Claims, and "Leaves of Absence" from Mining claims under the GoldMining Mining Ordinance.

3. It appears that in the year 1868 two insignificant errors of $5 each were discovered in the Accounts of the Cariboo Station, for that Year, and the smallness of the amount and the explanation given did not cause any distrust. Further queries upon the 1869 accounts, which reached Cariboo after Mr Cochrane had left, where certain Leaves of Absence were entered on the Counterfoils but not entered on the Cash Book, amounting to $27.50, caused Mr Ball to make further comparison in the Record Books kept in the Office, disclosing in the end the deficiencies now reported.

4. It has always been manifest to me that theremust must be great difficulty in exercising efficient supervision over the Accounts of the distant Districts; but extensive fraud was scarcely possible except through collusion, or great carelessness in the Magistrate. To this latter cause and over confidence in the integrity of Mr Cochrane on the part of Mr Brew, must the present casebe be attributed, and if he were still alive he would be responsible, and liable to refund the deficiency.

5. I had feared that the amount embezzled would be totally lost to the Colony; but on enquiry I have ascertained that Mr Cochrane on leaving Victoria for England had obtained Bills from the Bank ofBritish British North America on their Office in London for about Three thousand, two hundred pounds Sterling, reported to have been acquired in mining speculations, which have not been presented for payment, and are supposed to have been lost with Mr Cochrane in the "City of Boston." I have caused the Managerof of the Branch here to be notified that this Government has a claim against that sum of about Six thousand Dollars.

6. I am informed that Mr Robert Mellors, of Brittania Chambers, Pelham Street, Nottingham, holds a Power of Attorney from Mr Cochrane, and that Mr Mellors has written to theBank Bank of British North America in London, stating that he holds this power, and, understanding that a large sum of money is at Mr Cochrane's credit at their Bank, and as Mr Cochrane was lost in the "City of Boston," that he intends to apply for Letters of Administration on behalf of the nearest of kin.

7. Under these circumstances the object of my present Despatch toYour Your Lordship is to request that steps may be taken through the Crown Agents, or otherwise as seems most desirable, for the purpose of attaching the money in the hands of the Bank, or of the Administrator, and so recovering the sum of $5745, or £1184.10/9 due to this Government from MrCochrane Cochrane. It is possible that even preliminary proceedings may have the effect of at once procuring a return of the amount, but if necessary any further particulars required can be furnished for the prosecution of the claim.