Series 4 > Scottish industrial history

172
SCOTTISH INDUSTRIAL HISTORY
General Manager
As the Secretary’s evidence related more to the discovery of the
mis-statements than to their origination, the Committee continued
their inquiries farther back into the department of Accounts and
Audit, which is conducted under the charge of the General Manager,
by the Accountant with assistants and clerks.
The General Manager, Mr. Rowbotham, informed the Commit¬
tee that he was cognizant of the irregularities in the Accounts, and
that Dividends were declared and paid which had not been earned;
but that he did not order or instruct the operations by which the
Balance-sheets were made to show results unwarranted by the
position of the Company, and that the instructions given on that
subject emanated directly from the Chairman to the Accountant.
He also stated that, although he is the recognised medium of
communication between the Board and the department of Accounts
and Audit, he did not convey to any member of the Board his
knowledge of the irregularities.
Accountant
The Accountant was then specially examined, and his evidence
before the Committee confirmed in detail the general statements
made by Mr. Rowbotham, but with important additions. It
appears from his evidence that not only were the mis-statements of
the half-yearly accounts made by direction of the Chairman to
him, but that these were made deliberately and advisedly, generally
upon a preliminary draft prepared by the Accountant shewing the
true state of affairs, which, after being inspected by the Chairman,
was altered by the Accountant into such a form as to carry out the
wishes of the Chairman, and shew the desired dividend. The
Accountant handed to the Committee two of the documents re¬
ferred to, one of which is as follows:
Estimate for January 1865
I. If all the Expenditure be charged, the Balance of Revenue will
fall short of paying Preferential Dividend, by the sum of