not arrive, although he sent up according to regulation a balance sheet purporting to show the amount of stores received, issued, and remaining in hand at the station, and which should have been compiled from the store ledger. He was called upon for explanation as to this balance sheet, and directed to send up the store ledger itself. But he is stated to have "fenced" with this demand, in other words, he urged as an excuse for its non-production, "the deficient clerical assistance at his command. In August, 1857, it was resolved that Mr. Elliott should be transferred to the post of storekeeper at Dublin, and be succeeded at Weedon by Captain Gordon. This change was not resolved on from any suspicion as to Mr. Elliott's honesty; but it was thought that on account of Captain Gordon's military experience, he would carry on the duties in a more satisfactory manner than Mr. Elliott. The change could not, however, conveniently take place until after the Dublin storekeeper had made his annual demand. Mr. Elliott appears to have continued to make frequent representations of the arrears in his books, and the impossibility of overcoming them when the whole time of the clerks was occupied with the current work of the office; and at length, in February, 1858, partly in consequence of these representations and partly from the opinion expressed by Captain Gordon of the necessity of changes in the mode of conducting the business at Weedon, Major Marvin was sent down to investigate "the past and present state of the establishment," and, among other things, to inquire into the state of the ledger. Just before Major Marvin went down, ten additional clerks were appointed and sent down to Weedon, making the total number thirty-seven. But we have been informed by Captain Gordon that, instead of an increase of ten clerks, there should have been an increase of twenty-three: that was the lowest number he agreed with an experienced officer in the War Department in considering necessary; and in February, 1858, they made a joint representation to this effect to Captain Caffin, the director of clothing.

Captain Gordon succeeded Mr. Elliott as storekeeper on the 14th of May, 1858, when the "remain" or stock-taking of the stores at Weedon was completed, and they were formally handed over to him by Mr. Elliott. The ledger of 1856-7, however, was not quite completed, when, on the 22nd of May, 1858, Mr. Elliott absconded, leaving England for America, abandoning his wife, and having an actress as the companion of his flight. The ledger, on its completion early in June, 1858, was sent up to the War Office, and after a thorough examination (occupying nearly two months) with the vouchers-5,400-very few of which were missing, it appeared to be perfectly satisfactory, and complete as regards the issues or credit side of the account, while the receipts or debit side of the account only required verification by comparing them with the accounts of payments made for stores delivered at Weedon. This comparison and verification has since been satisfactorily completed. Whether the stores, which according to these accounts had been delivered at Weedon, were actually received there, could, however, only be ascertained accurately when the ledger of 1857-8 up to May 14th, 1858, had been completed, and the amounts then appearing in the ledger to the debit of the storekeeper had been compared with the actual stores handed over on that day to Captain Gordon on the completion of the remain. In order to prepare this second ledger, Commissary-General Adams, with a staff of eight officers, proceeded to Weedon; but, as they were not conversant with the system of accounts introduced by Mr. Elliott,

the Commissioners engaged for the purpose the services of Mr. Jay, now of the firm of Messrs. Quilter, Ball and Jay, most experienced accountants in the city of London. We requested him, in the first instance, to examine the books kept at Weedon during Mr. Elliott's superintendence, and also those at present in use, with a view of ascertaining the respective merits and defects of the two systems. Messrs. Quilter and Co. have examined the books in use at Weedon since December, 1855 (upwards of 300 in number), and have made their report of the system upon which they have been kept. It appears from that report that the book-keeping at Weedon between December, 1855, and August, 1856, was of a very rough and imperfect description, and that there was no regular classification of the facts indicated by the original vouchers. The books then kept referred-1. To the registration of papers and correspondence (these are not strictly speaking books of account); 2. To dealings with contractors and tradesmen in connection with the receipt of stores; 3. To receipts of stores from Woolwich, the Tower, and other Government stations; 4. To orders for issues to regiments, and issues made accordingly. The accountants add, "Besides the books described above, a rough document was framed having the character of a store ledger, that is, containing accounts opened for some of the different descriptions of stores, with entries purporting to show the respective receipts and issues under distinctive heads, but it was never duly entered up, and as a book of results is perfectly useless. In addition to the foregoing, certain other books were kept by the inspectors and viewers in their respective store rooms; there was also a foreman's book of issues, and one for special issues of cloth, both of which were likewise kept in the store rooms." We see no reason to doubt that the entries made in these books were intended truthfully to record, and did in the main accurately record, the amount of stores received and inspected, packed, and issued in each branch of the depôt. But our accountants are of opinion that "although these books existed and entries more or less continuous were made in them, not one was kept efficiently and completely, and there was, properly speaking, no systematic book-keeping; the consequence being a state of arrear and confusion which in a greater or less degree continued to characterize the accounts of the department down to the time when Captain Gordon took charge of it in May, 1858, and notwithstanding the improvements which Mr. Elliott himself introduced in August, 1856."

From and after the 22nd August, 1856, a more regular system of accounts was adopted which continued in operation during the remainder of Mr. Elliott's superintendence. The business of the depôt was divided into four branches:-1. The registry branch, including all correspondence, letters both inward and outward, and the registration of papers and documents generally. 2. The contract branch, comprising the whole course of dealing with contractors and tradesmen in respect of supplies furnished by them, from the receipt of the goods at the depôt to the granting of the certificates on which payment was made. 3. Receipt and issue branch. The business under this head consisted of taking account of articles brought into store, other than those received from contractors and tradesmen, and of all issues out of store. 4. Store ledger branch. The business of this branch was to collect in one record, viz., "the store ledger" on the one hand, all receipts of clothing and stores from every source, and on the other all issues of clothing and stores, with the view of exhibiting in

debtor and creditor form under the head of each article, as "boots," 66 caps," ""tunics," "trowsers," &c., the periodical receipts and issues, and the balance or stock remaining on hand from time to time.

After a searching and laborious investigation into the accounts, during which the whole of the issues for the entire period from December, 1855, to May, 1858, have been traced to their various destinations, as indicated in the accounts, the accountants reported "that all stores delivered to Weedon, or coming within the scope of its official responsibility, have been substantially accounted for." And that "with respect to the personal accounts with contractors, they were enabled, after careful examination, to report that, excepting in some few and trifling instances, not calling for special observation, they found them to be essentially correct, and that no other moneys have been paid to the contractors than such as they became entitled to receive in consideration of stores delivered." And, finally, "that nothing came before them in the course of their investigation to warrant the suggestion of fraudulent practices by the late principal military storekeeper in dealing with the stores confided to his administration."

In the opinion thus expressed the Commissioners entirely concurred; and they continued: We have great satisfaction in expressing to your Majesty our belief, that whatever suspicions may have been naturally excited, there has been, as regards the stores at Weedon, no dishonest dealing whatever. Everything which has been paid for has been received, and no defalcation has taken place. To have arrived at this conclusion makes us regret less than we should otherwise regret the time, labour, and money spent in this inquiry. Nothing, indeed, can be a greater proof of the confusion and arrears into which the store accounts had fallen than the fact that it has taken Messrs. Quilter, Ball and Jay eight months at least to complete the ledgers, and to arrive at the judgment on them above expressed.

As regards the cash accounts of Mr. Elliott, they were entirely distinct from, and unconnected with, the store accounts. All payments for supplies delivered at Weedon were made by drafts upon the paymaster-general, no storekeeper being allowed to have anything to do with the money transactions relating to the supply of stores. But it was Mr. Elliott's duty as storekeeper to pay the weekly wages of the foremen and labourers employed at the depôt. These payments were always duly made by him, and entered in check and pay lists, as laid down in the ordnance regulations. He was also entrusted with the duty of paying the charges of carriers for goods delivered at Weedon. For these purposes he made monthly, as is the custom with all storekeepers, a demand for the sum necessary for the expenses of the following month. Each demand showed the amount remaining to his debit after payment of the expenses of the preceding month. These demands during 1857 were for about 1,000l. a month. His cash accounts, with the necessary vouchers to support them, were sent in quarterly, in accordance with the regulations, fourteen days after the expiration of the quarter. His quarterly account ending 31st December, 1857, was rendered accordingly, showing a small balance against him. His monthly demands for January, February, March, and April, 1858, including a demand of more than 1,600l. for carriage of stores, were granted. But as he neglected to send in his quarterly account up to the 31st March, 1858, within the fourteen days prescribed, he was peremptorily called on to do so, and in default of his furnishing it, the accountant

general refused the imprest for 2,000l. demanded by him for the month of May. Had the quarterly account ending March, 1858, been sent in, it must have been at once discovered that carriers' bills for 1,6397., in respect of which he had obtained imprests, had not been paid by him. Mr. Elliott had also previously received instructions to make up his cash account to the date of his leaving Weedon for the post of storekeeper at Dublin, to hand over the balance in his hands to his successor, Captain Gordon, and to produce his receipt for the balance. On the 15th May Mr. Elliott borrowed the sum of 500l. from a contractor, out of which he paid 250l. for the weekly wages of the establishment, which he appears never to have allowed to fall into arrear. Shortly after his disappearance on the 22nd of May, it was discovered that bills for the carriage of stores, amounting to 1,639. 13s. 4d., were unpaid by him, and that (including this sum) the balance due to the public from him was 2,0487. 108. 6d. In accordance with the provisions of the Statute 52 Geo. III. c. 66, and the Ordnance Regulation No. 99, Mr. Elliott, on entering on his office at Weedon, gave security in a bond for 2,000l., entered into by a guarantee association on his behalf for the due performance of his duties. This 2,000l. has since been paid by the guarantee association, so that the actual loss in cash occasioned by Mr. Elliott's deficiencies is reduced to 487. 10s. 6d. His cash accounts appear to have been kept with entire accuracy, and by the proper system of double entry.

Upon a review of the whole evidence the Commissioners expressed their opinion that the general mode in which the business of the Weedon establishment was conducted was far from satisfactory.

We have specified, perhaps in tedious detail, the main defects and irregularities which existed there. The principal blame which we can attach to Mr. Elliott, apart from the admitted deficiency in his cash balance, is in respect of his frequent absences from Weedon. No doubt it was often necessary for him to attend at the War Office and Mark Lane. But there is too much reason to believe that much of the time during which he was absent was devoted to his private pleasures in neglect of his public duty. When at his post he seems to have worked diligently. We acquit him of any deliberate intention to do wrong either in his so-called deviations from the ordnance system of accounts, or in not keeping distinct the inspection and custody of the stores. We think that he was not sufficiently peremptory in insisting upon having the further help which he required. In our opinion the main defects in the Weedon establishment are chargeable to the War Department. 1. It was a mistake to fix the clothing depôt so far from London, beyond the opportunity of immediate and frequent personal surveillance by the director and assistant director of clothing, and separated from the important branch establishment in Mark Lane. This mistake has now been remedied by the abandonment of Weedon as a depôt for clothing, and the removal of the establishment to Pimlico. 2. It was a mistake to appoint the first head of the establishment without specific instructions as to its organization. 3. It was a great mistake to supply him at the outset of the undertaking with a small and inexperienced staff. The inspection staff in particular ought to have been organized from the commencement upon the plan adopted at the Tower, and better salaries should have been given to the various inspectors. 4. It was a continuing mistake not to increase the staff in proportion to the increase of the work in accordance with Mr. Elliott's frequently repeated requests. 5. It was a mistake, notwithstanding

the distance of Weedon from London, that more frequent visits were not paid there by the directors of clothing, and a more rigid supervision exercised over the books and the stores. 6. It was a mistake not to have had a more considerable store in hand before commencing the issues, so as to have been prepared for the emergencies which arose. 7. It was, we think, a most serious mistake to have separate contracts for the cloth required, and for the making that cloth into garments; a course involving double contracts, double correspondence, double inspection, double carriage, double keeping of accounts. This defect has been cured, the contracts being now in the first instance entered into for the clothing completely made up.

These defects, together with the absence of proper patterns, the discrepancies between patterns and specifications, the haste with which tenders were called for, the delay in informing the storekeeper of the contracts entered into, the delivery of kits at Weedon,-all these have satisfied us that the new system of clothing the army, however advantageous in many respects, was inaugurated without due consideration, and certainly without adequate provision for so extensive a change. Neither the arrangements made nor the agents employed in making them were sufficient for the vast amount of labour which the new system required. The laudable object of the War Department doubtless was to add the recommendation of economy to those to which their new system might be otherwise entitled. With this view the establishment was stinted and the inspectors were miserably underpaid. Officers of intelligence, ability, and practical experience received salaries of only 100l. a year, a sum quite insufficient for the decent support of themselves and of their families. Yet to them was entrusted the power to decide upon the acceptance or rejection of goods of very large value, which contractors naturally wished not to have returned upon their hands. The result was inevitable. These officers were thereby subjected not only to the suspicion that their services were considered of little value by their superiors, but to the graver imputation that persons so inadequately remunerated might be ready to show favour from corrupt motives to any contractor who could purchase their good will. We think there is no ground for such imputations. We acquit not only Mr. Elliott, but all the officers of the War Department, as well as the inspectors and subordinate officers at Weedon, of having shown partiality or favour towards any contractor; and we have much pleasure in adding that a suggestion made before the Committee of the House of Commons on Contracts implying that favouritism had been shown to a particular contractor in respect of cloth delivered at Weedon was frankly withdrawn before us by the witness who had made it. We think there was ground for some suspicion in the first instance, but the explanation given of the facts cleared up the points, removed the impression on the mind of the witness himself, and entirely satisfied us that no undue preference had been shown.

The results of the mode of conducting the business at Weedon have been, as already mentioned, the accumulation of great arrears and considerable confusion in the accounts; and not the least serious evil has been the greatly increased expense attendant upon the labour of making up the books after the lapse of a year or eighteen months, instead of having had them properly posted at the time. Another result of the confusion of the accounts has been a great deal of vexatious trouble and delay inflicted upon contractors in obtaining payment for their supplies. The delays also in furnishing newly raised battalions with clothing and kits have occasioned