Upon arriving in Hong Kong, Mosby found discrepancies in his predecessor's recordkeeping, and believed David H. Bailey had colluded with his vice-consul Loring (whom Mosby fired), to bilk the government of thousands of dollars in fees. Bailey had pocketed fees charged Chinese emigrants sailing to the U.S. on foreign-flag ships (certifying that they emigrated voluntarily and were not part of notorious "coolie traffic"), and claimed "expenses" for shipboard examinations (by the illiterate proprietor of a local boardinghouse frequented by sailors) of those emigrating on U.S.-flag ships equal to the fees charged. Mosby thought Bailey had almost doubled his salary over the previous eight years by embezzlement and kickbacks, and stopped charging for shipboard examinations (which he personally conducted).