' 
? 
. 
} 
TRANSACTIONS OF THE SECTIONS. 161 
the manufactories made out in a similar manner, and including similar items to 
his sheet of 1864, shown Admiralty, in 1865 (for copy see Navy Ships, ‘ Frederick 
William,’ Aug. 1867, No. 538), 
The Admiralty in their accounts adopted some of the omitted items thus brought 
to light, and their forms of balance sheet and accounts were similar to those by 
which he had been enabled to discover these omitted items. These principles and 
forms, though the best for his purpose, which was to ascertain the total amount 
omitted, and the average percentage to be added to ships in consequence, were, 
however, not the best principles and forms to adopt for an ordinary Admiralty 
balance sheet ; for the proper method in the latter case is to add the indirect and 
omitted items in each Dockyard to that Dockyard’s Ships, and not to bring them 
altogether into oxe lump sum for all the yards and then distribute 7 at one wni- 
- Ogee to every ship built or repaired at any of the 7 Home or 15 Foreign 
ockyards. 
Later in the session of 1865, at the suggestion of Mr. Seely and Lord Palmerston, 
on the 16th of June [see Hansard, 16th June, pp. 396-399] he went again to the 
Admiralty, and early in 1866, on Lord Clarence Paget stating on the 1st of March, 
1866, that “The Hon. Member for Lincoln (Mr. Seely) had asked whether his 
secretary could be permitted to go to the Admiralty in order to correct certain mis- 
ions respecting the accounts of the Accountant General of the Navy. 
he Hon. Gentleman had been of great service to the Admiralty, and he should be 
extremely glad to go into the matter with him” [see Hansard, March 1, 1866, 
Paget, p. 1866], he entered into an investigation of the manufacturing accounts 
as arranged between Lord Clarence Paget and Mr. Seely) in conjunction with 
the Accountant General and other Admiralty officials. 
Early in 1867 a correspondence occurred between the Controller of the Navy 
(Admiral Robinson), Mr. Seely, and Mr. Fellows, and an investigation into the true 
cost of the ships ‘ Frederick William,’ ‘ Brisk,’ and ‘ Cadmus,’ the Admiralty having 
disputed Mr. Seely’s figures. In order to get the true cost of the ‘Frederick 
William.’ which was commenced in 1841, and not finished till 1865, My. Fellows had 
to ascertain the percentage to be added to ships generally for the omitted items for 
each year, from 1841 to 1865. He found that up to 1861 the only items the Admi- 
ralty reckoned as having formed part of the cost of ships were the mere labour 
and materials employed directly in and upon each individual ship; none of the 
labour or materials used about the ship-yard, and necessary to ship-building, were 
included. From 1861 to 1864 he found the latter items had been included, and in 
1864-65 for the first time were added the items he had discovered as having been 
formerly omitted. 
For this purpose he made balance sheets or tables [see Return, Navy Ships, 
‘Frederick William,’ &c., No. 538, 13th August 1867, pp. 14-18], giving for each 
year, first, the total cost of ships built and repaired, reckoned for each year, as 
the Admiralty reckoned, up to 1861. In another column he gaye the amounts 
for each year, consisting of similar items to those included in Admiralty accounts, 
from 1861 to 1864; in a third column he gave for each year the additional amount 
of the items, added to Admiralty accounts in 1864-65. So that he had thus for 
eyery year, from 1841 to 1865,— 
1st. The cost of ships, for each year, reckoned as the Admiralty reckoned, up 
to 1861. This he called Method No. 1. 
2ndly. The cost for each year, reckoned as the Admiralty reckon their accounts, 
from 1861 to 1864, or Method No. 2. 
erdly. The cost for each year, reckoned asthe Admiralty reckoned, in 1864-65, 
or Method No. 3. 
He thus obtained the average percentage to be added to the Admiralty given cost 
for each year, to get the cost as reckoned by the Admiralty in 1864-65. 
The Admiralty, in their accounts for 1865-66, published 22nd July 1867, No. 454, 
changed for the second time the form of their accounts, and gave the three columns 
as he had given them in the balance sheets, which were intended merely to enable 
him to ascertain the approximate percentages to be added for each year to the 
aie given expenditure in each year of the ‘ Frederick William,’ ‘ Brisk,’ and 
admus, 
1868, 11 
