Despatch to London.
Minutes (4), Enclosures (untranscribed) (1), Other documents (1).
Douglas complains to Lytton that the salary offered him is too low, especially considering he is relinquishing
his salary and benefits from the Hudson’s Bay Company. Douglas offers to transfer his interests to the British government in exchange for £3500
with the condition that if refused, he will resign as governor.
Included in the document is a draft reply from Newcastle to Douglas, 29 July 1859, sanctioning a further £1200 to Douglas’ salary for the year, provided the colonial revenue maintains £50,000; and Douglas to Fraser, stating that he will not relinquish his interest in the HBC if he resigns governorship.
Since addressing you on the [blank] of last March, with respect
to your Confidential Despatch of the 10th Decr last,
acquainting me that Her Majesty's Government can only guarantee
me a Salary of £1800 per Annum as Governor of the two Colonies of
British Columbia and Vancouver's Island, I have received Despatches
from the Governor and Directors of the Hudson's Bay Company upon
the subject of the instructions I had forwarded to them to dispose of
my entire interest, both directly and indirectly in
connection with that Company.
2. From these advices I find that had the purport of my
instructions been strictly adhered to, I should have been involved
in a considerable pecuniary sacrifice, so much so, indeed, that the
Governor and Directors actually placed themselves in communication
with Her Majesty'sMajesty's Government to ascertain whether some arrangement
less disadvantageous to myself could not be entered into, and
finding that rigid adherence to the conditions laid down is
insisted upon, have paused to address me before completing the
final steps, and subjecting me to a most serious loss.
3. Under such circumstances, you cannot fail, Sir, to be
sensible of the extremely embarrassing position in which I am
placed. On the one hand liable to a heavy pecuniary loss; on the
other, if sustaining such a loss, committed to a Salary which is
neither befitting to my position, nor sufficient for my proper support.
4. I have devoted the most anxious thought to the subject.
I unhesitatingly submitted to the conditions required of me in
full confidence that in placing myself and case in the hands of
Her Majesty's Government I should not be required to sustain any
actual loss; but, now, seeing no way by which I can with true
honesty of purposepurpose comply with such conditions except by an entire
abandonment of the benefits resulting to me from my many years of
Service in the Hudson's Bay Company, a sacrifice which I beg most
respectfully to submit it is hardly just should be required, and
which, indeed, I cannot afford to make for the inadequate Salary
attached to the Offices I hold, I beg to submit the following
proposal for the consideration of Her Majesty's Government.
5. I tender the whole of my actual and prospective interests
in the Fur Trade for a fair equivalent in Money, leaving the
proceeds of my interest therein to be paid over annually to the
Colonial Office.
6. I estimate the value of my retiring interest in the Fur
Trade as follows, basing my calculation upon the average profits
of the Company's Trade, for the last seven years, which I, submit,
is fair, and reasonable.
AverageAverage profit of 1/85 share for the 7
years ending with outfit 1855........ £437.15s.0d
One year on Furlough..2/85.............. £875.10s.0d
Retire with 1 June 1860, one year
full interest......2/85.............. £875.10s.0d
Six years half interest, 1/85th each
at £437.15.0........................ £2626.10s.0d
£4,377.10s.0d
This interest I now propose to transfer into the hands of Her
Majesty's Government for the sum of £3,500 in Money.
7. If Her Majesty's Government decline to accord me in this
assistance & protection from loss, I have no alternative than,
with heartfelt thanks for past favours, to tender my respectful
resignation, & to request I may be relieved in the Offices I
now hold under the Government so soon as may be convenient.
8. For further information I beg to forward the Copy of the
Letter which I have addressed to the Directors of the Hudson Bay
Company upon the subject.
I see that Sir E Lytton (in a draft written by himself)
announced to Mr Douglas that the salary of £1800 from the
Ty was paid him in respect of
both governments. I am a little afraid that this will encourage the
VanC Island legislature not to vote him any salary at all. But it is
not easy to retract what Sir E Lytton has thus done.
Sir E.L. not only says the £1800 will be paid him for both
Colonies but "out of the Parly grant." There is little
chance therefore of any Colonial Vote.
Documents enclosed with the main document (not transcribed)
Douglas to Thomas Fraser, Hudson's Bay Company,
stating that unless the company would purchase his
retirement benefits for a fair price, he would resign the governorship.
Minutes by CO staff
Mr Merivale
I send with this Governor Douglas' desph
of Feby, and Lord Carnarvon's ansr of the 23 May—which
cannot yet have reached the Governor. It is surely desirable
that all the local authorities in this expensive region should
be adequately remunerated for their services; but when the
Governor suggests, as Mr Douglas did on a former occasion
(see 12643/58), that he himself should have £5000 per annum, one is
a little puzzled to know to whom to have recourse to fix a
reasonable scale of salaries for either himself or the rest
of the public officers. By Lord Carnarvon's minute he gives
£1200 to Govr Douglas out of the Col: Revenue of B. Columbia
of the Current year. If this addition were allowed annually
perhaps the Govrwd be content. See also on the subject of
official Salaries 6954/59.