During a tour through Kashmir with Sir Henry Lawrence he kept the purse and Sir Henry could never obtain an account from him; subsequently, Sir Henry's younger brother Sir George Lawrence accused him of embezzling the funds of the Lawrence Asylum at Kasauli; while Sir Neville Bowles Chamberlain in a published letter says of the third brother, John Lawrence, 1st Baron Lawrence, "I am bound to say that Lord Lawrence had no opinion of Hodson's integrity in money matters. He has often discussed Hodson's character in talking to me, and it was to him a regret that a man possessing so many fine gifts should have been wanting in a moral quality which made him untrustworthy." Finally, on one occasion Hodson spent £500 of the pay due to Lieutenant Godby, and under threat of exposure was obliged to borrow the money from a local banker named Bisharat Ali through one of his officers.