Series 4 > Scottish industrial history

THE NORTH BRITISH RAILWAY INQUIRY 165
the balance-sheets required for publication, and the general nature
of the Journal entries, precluded the possibility of such a minute
examination as they would now consider necessary, and that
in asking for information they trusted to the honour and honesty
of the officers of the Company, not only that the explanations
given were correct, but that they fully exhausted the subject on
which explanation was sought.
The Committee have examined the various Reports above al¬
luded to for several years prior to 31st July last, and while these
exhibit evidence of anxiety and care in the interest of the Company,
they do not shew that the Auditors had discovered or pointed
out the deceptive nature of the Journal entries. The attention of
the Auditors seems to have been directed more to checking the
vouchers with the entries in the Cash-Book than to examining and
following out the Journal entries by means of which the operations
were effected, and upon which the adjustment of the Half-yearly
Accounts so materially depends.
The Committee think that in future a more efficient audit is
absolutely necessary, and that the result of each audit ought to be
reported specially to the Shareholders, as well as to the Board of
Directors.
The Committee had under examination other Officials of the
Company, and in particular the Secretary, Manager, and Account¬
ant.
Secretary
Mr. Walker, the Secretary, who previous to 12th April last
held the office of Treasurer, has given the Committee important
evidence. In February last, finding that the Preference Shares
(1865) had not been taken up, and impressed with the perilous
position of the Company, he addressed to the Chairman the follow¬
ing letter:
RICHARD HODGSON, Esq.,
Carham Hall. Edinburgh, 21st February 1866.
dear sir - Since I learned that the Caledonian were for peace,
had made up my mind that the North British and they would