No. 110
August 12th 1870
My Lord,
In compliance with the instruction contained in Your Lordship's Despatch No. 45 of the 12th May, I have the honor to forward for final Audit, duplicate Cash Books, Journals, and Abstracts, together with the Vouchers in support of theEntriesManuscript image Entries therein contained, of the Crown Fund Account of Vancouver Island from the date of Union to the 31st Decr 1869.
I have the honor to be,
My Lord,
Your most obedient
humble Servant
A. Musgrave
Minutes by CO staff
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Crown Fund.
You will remember that it was found that Mr Seymour the late Governor of B.C. had been paying himself from the Crown Fund a sum of £1000 in addition to his other Salary of £4000. And the present Governor was requested to state what amount Mr Seymour had so drawn, & at the same time to report up to what date theManuscript image accounts had been sent home for Audit.
The Govr reported that the sum drawn was $12421 & that no Accounts had been sent home since the Union. He was therefore told to send them & he now does so.
The question is what should be done with them. Should they undergo any regular process of Audit & if so by whom.
I have looked thro' thoseManuscript image of 1869—of course only cursorily—& I should say that the various items have been expended on the authority of the local Govt, & so far as I gather not improperly. In one account appears the payments to Mr Seymour from 26 Nov 1866 to 11 June 1869, per an $4,850—total of $12421 as already shewn. $7679 apparently paid to Mr Seymour, $4742 to his Executor. There are various sums paid into the Treasury—meaning I believeManuscript image money lost to the Colony.
But as you are also aware it is still an open question whether Mr Seymour's Representatives should be called upon to refund the monies drawn from this Fund for Salary; & the Treasury in 4646 state "that they await a further communication from the Colonial Office after the receipt of the Accounts of that Fund since the Union."
The Colony has not yet taken over the Crown Fund on our conditions—& possiblyManuscript image they will not do so pending the consideration of the Federation question.
CC 15 Sept
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Lord Kimberley
Accounts very bulky, so not sent herewith.
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Transmit the accounts (very bulky so not sent herewith) to Treasury with reference to their letter in 4646 & other previous correspondence, saying that Lord Kimberley presumes that they will cause the Crown Fund accounts to be audited in the Exchequer & audit office.
Lord Granville (see his minute in 3411) seemed to think that it was as well not to stir up the Treasury on the subject of Mrs Seymour's possible liability to refund the money drawn by her husband. I do not think we need refer to the matter.
RGWH Sep 16/70
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As the Treasury's attention was drawn to the circumstance of Govr Seymour having drawn for £1000 without due authority in the letter of Jan 12 it is only necessary now to transmit to Treasury the accounts to be audited with reference to previous correspondence.
K Sept 17/70
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Sir F. Rogers
Having looked through these papers in accordance with your wish, I would now offer the following remarks on them:
The Accounts sent by the Governor have reference to the Crown Fund "from the date of Union to the 31st December 1869."
I think it may safely be considered that the Accounts have been formally rendered, and have undergone a careful audit in the Colony; for although the first of them, which covers only the last 5 or 6 weeks of the year 1866, bears no certificate from the Treasurer or Auditor,eachManuscript image each of these three Accounts for the years 1867-8-9 has been declared to by the Treasurer in the form given in the margin [see following],
I, John Graham, do solemnly & sincerely declare that this Account is just and true according to the best of my knowledge and belief, and I make this solemn declaration conscientiously believing the same to be true.
John Graham
Officer in Charge of the Treasury
and has been certified by the Auditor, with slight variations of language, in the following form—
I, Robert Ker, Auditor, do certify that I have examined the several entries appearing both on the Debit and credit sides of the foregoing Account, and having compared the same with the original Accounts of the several Public Departments as audited in my Office, have found them to agree; and I further certify that proper Accounts of particulars, authorities and Vouchers in conformity to the existing Regulations of Government, as far as it is possible to obtain them, have been exhibited to me in support of the several articles of charge and discharge therein contained.
Robert Ker
Auditor General
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I have read in detail the Dr and Cr side Entries in the Cash Books. No Abstract is given for the short Account of November and December 1866, but I have prepared one. As regards the later years, Abstracts have been given. I have checked them in a few cases, so as to satisfy myself that the Accounts are in proper form, and the following table, which has been framed almost entirely from the annual Accounts, may I think be safely taken as correctly representing the sources and amounts of the Revenue, and the general heads of the Expenditure from November 1866 to 31 December 1869.
I have omitted from it sums paid into or drawn out of the Bank in the Colony, and also sums lent to the General Revenue or repaid. In regard, however, to the latterIManuscript image I may mention that the sums lent to the General Revenue in the period of these Accounts was $2100, and the sum replaced by the General Revenue was $5301.05. The debt from the General Revenue (the amount of which I have not learned from these Accounts) was therefore reduced between November 1866 and December 1869 by $3208.05.
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[This is followed by several account sheets bearing reference to the Vancouver Island Crown Account, November 1866 to 31 December 1869, prepared in the colonial office.]
JSL 5/10/70
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Mr Herbert
Perhaps you may care to see Sir F. Rogers' decision as to the Audit of Vancouver Crown Fund.
RSM 18/10/70
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Seen.
RGWH Oct 18/70
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Lord Kimberley
I do not pass on the bulky Crown accounts of the last few years but only Mr Lewes' memo on them.
I think the minutes have gone a little astray here.
The Treasury will have nothing to say to the audit of B. Columbia Crown Funds—those funds being, though under the control of the Crown, as completely Colonial Revenue, as the General Revenue.
Nor do I see that now, after their abdication of Financial authority over Colonies, they have anything to do with Mr Seymour's case.
As to the Crown Fund, I think a comparison of the items brot together by Mr Lewes in the annexed memo does not look well for its administration. (As to the question how are the accounts to be audited vide that memo.) It is eaten at by fixed Salaries, wh if fair ought to be charged on theManuscript image General Revenue—and the expenses of keeping up Government House.
But as it seems to be been efficiently audited in the Colony we have offered on terms, to give it up, and as the Colony will in all probability be soon part of Canada, I think it wd hardly be worth while raising any questions.
As to Mr Seymour—I have nothing to add to my minute on 14206 B. Columbia.
The sum of that is that what Mr Seymour took, tho' in a lawless kind of way, he was reasonably entitled to consider due to him (vide particularly Lord Carnarvons Note 14206 B. Cola), & that the Secy of State wd have beenManuscript image bound in honour to support his claim with the Treasury, who however wd have been at liberty if they chose, to put the S. of S. in a difficulty by refusing to allow it.
The Treasury authority being abandoned, I think if Mr Seymour were still in the Govt Service he should have been not muleted but rebuked for helping himself. But there is no use in rebuking his wife and Executors; so I wd say no more about the matter, & put by all these papers.
FR 6/10
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Put by.
K Oct 7/70
Documents enclosed with the main document (not transcribed)
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Account material from the Crown Fund Account of Vancouver Island from the date of union to 31 December 1869 (630 pages of various accounts, vouchers, journals and other financial records).
Other documents included in the file
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Colonial Office to Secretary to the Treasury, cancelled, no date, forwarding copy of despatch and accounts of the Vancouver Island Crown Fund for audit.
Minutes by CO staff
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I think the transfer of Colonial Finances to this Office renders the Audit unnecessary.
FR 20/9
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Considering the previous correspondence I think it would be more satisfactory if this could go to the Treasury but perhaps this can't be done. If so how will the accts be audited.
K Sept 21/70
Musgrave, Anthony to Wodehouse, John 12 August 1870, CO 60:40, no. 9891, 2. The Colonial Despatches of Vancouver Island and British Columbia 1846-1871, Edition 2.2, ed. James Hendrickson and the Colonial Despatches project. Victoria, B.C.: University of Victoria. https://bcgenesis.uvic.ca/B70110.html.

Last modified: 2020-12-02 13:40:34 -0800 (Wed, 02 Dec 2020) (SVN revision: 5008)