Sir Byam Martin's report on the late embezzlement at Chatham, brought to light by...

Sir Byam Martin's report on the late embezzlement at Chatham, brought to light by Mr Alston, a Birmingham manufacturer, who asked whether it was in order to purchase items with the King's mark offered for sale. Mr Ledbetter found that facts pointed to Frederick Pigirenit, a Chatham gunsmith and others in the neighbourhood as the principal dealers. One of 2 shipwrights also implicated, Thomas Ayerst, with the agreement of Mr Jones, the Navy Solicitor, agreed to make a disclosure of all the circumstances, with the undertaking, he would not be prosecuted. Pigirenit was sentenced at Warwick to 14 years transportation, while Joseph Cox, the other shipwright, was sentenced to 3 months hard labour. Messrs Twopenny and Essell are pursuing the possible prosecution, following Barnes' testimony and release from prosecution, of I Allen and Cohen, a Receiver at Chatham. Paper A lists 37 men who have been charged by Ayerst and others, 28 of whom have been suspended from duty. George Flood of the Iron Yard and William Hillman, a Cabinkeeper, appear deeply implicated, the latter having accompanied Colonel Denham in Africa. Those appearing in List B should be dismissed from the service. Lord Melville had suggested using some of the police belonging to Colonel Rowan's establishment to act as supervisors. Report of opportunities for embezzlement. An irregularity was also noted on the part of John Fearne, the Shipwright in charge of the copper cellar, but his honesty does not appear to be in doubt. Another irregularity was the erasure of figures by the Leading Man of Storehouse, John Moverley. Leading men of gangs had been involved in activities which were contrary to Regulations and the examination of Messrs Spiller, Rice and Edye explained the circumstances of this departure. It appeared to have been done with the knowledge and approbation of the late Master Shipwright. Mr Spiller appears to have had an excessive workload, more than one person could possibly superintend.

Enclosure.