No. 19

I regret much to have to report to you that certain
irregularities and apparent frauds have recently been discovered
in the Custom House at Victoria, in consequence of which I have
deemed it my duty to suspend Mr Charles A. Anderson, the
Collector, from any further exercise of the functions of his
office, until a searching investigation has taken place into the
whole matter. For this purpose I have appointed a Commission
consisting of Judge Begbie, and Captain Gosset, the Treasurer of
British Columbia, and as soon as their Report is received it
shall be transmitted to you without delay.

3. As you are doubtless aware, it has been the practice
hitherto to collect the duties for British Columbia at the
Custom House at Victoria, and shortly after the arrival at this
place of Mr Hamley, the Collector of Customs for British
Columbia, I, in consequence of the arrangements for the
collection of the duties at Queensborough not being complete,
directed him to undertake and continue the collection at
Victoria. The Books were in consequence transferred to him, and
almost immediately his suspicions were awakened by the discovery
of some very glaring errors in the Permit Book, and a closer
investigation soon showed the general state of inaccuracy in
which the Books had been kept and that in numerous cases wrong
entries had been made, and in some cases the permits issued and
the duties charged on them were not brought to account.

4. It appearing that the monies were generally received and the
entries made by a Mr C.A. Angelo, one of the Clerks in the
Department, and suspicion attaching strongly to him, proceedings
were immediately commenced against him, conducted by Mr Pearkes
the Crown Solicitor, aided by Mr Carey the Attorney General.
The case was resumed to-day, and resulted in an adjournment
until this day week, for the production of further evidence.

5. The amount of deficiencies so far as investigation has gone
at present is about Eight Hundred Dollars.

6. It does not appear that Mr Anderson, the Collector, is in
any way connected with the supposed frauds, but his negligence
in the conduct and supervision of his Department is so great and
so unpardonable, that I fear it will be utterly out of my power
to recommend that he should be re-instated in his office.