No. 52
[5322, CO 60/43, p. 485; received 30 May
]
27th April 1871
My Lord,
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.
I have the honor to be,
My Lord,
Your most obedient
Humble Servant
A. Musgrave