5th May 1864
My Lord Duke,
I have the honor to transmit the copy of Resolutions of the House of Assembly of Vancouver Island which were transmitted to your Grace in my Predecessor's despatch No. 3, Legislative, dated 12th Feby 1864.
2. The circumstances connected with the passage and transmission of these Resolutions appeared to me so unusual that I deemed it my duty to supply what I conceived to be an important omission before they could be advantageously orregularlyManuscript image regularly submitted to Your Grace.
3. I therefore brought the Resolutions under the notice of my Executive Council in the Minute, marked No. 2, and subsequently with their unanimous concurrence I transmitted them for the consideration and opinion of the Legislative Council (to whom they had not previously been submitted), with the message marked No. 3.
4. The Reply to this latter Message is herewith, marked, No. 4. I also enclose newspaper copies of the Debates of the Legislative Council on this subject, which you will observe was brought under consideration on the 11th April, and the decision only arrived at on the 3rd May andcommunicatedManuscript image communicated to me this day (5th May).
5. My principal object in the present Despatch is to place the proceedings of the Local Legislature before Her Majesty's Government without delay.
6. These proceedings appear to me to be singularly anomalous and inconsistent, involving some questions upon which I am unwilling to offer a hasty opinion.
7. I do not think I am overstating the case, when I assume that the Local Legislature of this Colony are desirous of securing the benefit of good Government without the burden of providing for the cost of it,
I have all along felt this, and have frequently stated as much.
asManuscript image as the conditions under which they profess to desire re-union with the Sister Colony render such a consummation impracticable.
8. The Legislature has been in Session since the Month of September 1863, and I do not apprehend that any beneficial result would accrue from again submitting the subject, in any form, for consideration during the present Session. It is therefore my intention to prorogue the Assembly as soon as the dilatory manner in which the Public business is transacted will permit.
9. It will appear on reference to the accompanying Estimates, approved and assented to by my Predecessor,thatManuscript image that the Legislative Assembly, though convened in September 1863, deferred voting the Supplies till the 3rd March 1864, or two months after the period from which they were to take effect; and that, while they ignore, and strike out, many items in the Civil List, they deal with various items of "Crown Revenue" as assets for General Colonial purposes.
See enclosure 6.
10. As an illustration of the complications which the action of the Assembly must eventually produce, I may point to the fact that the "Treasurer's" Salary is struck out of the Estimates, though nine tenths of that officer's duty consists in the receiving and disbursing andaccountingManuscript image accounting for, the General Revenue raised by taxation. The same observation applies with more or less force to every officer whose Salary has been struck out of the Estimates.
11. My short experience in this Colony renders me diffident in offering any very decided opinion; but I cannot refrain from expressing my convictions that the resources of this Colony, properly administered, are ample to meet all reasonable demands, such as proposed in Your Grace's despatch (Separate, dated 15th June 1863) and that the present mode of raising Revenue is crude, unproductive, and inequitable.
I have often expressed this opinion.
12. WhileManuscript image
12. While I feel it my imperative duty to administer the Laws and Government as Established, I cannot suppress my belief that the separation of this Colony from British Columbia will prove a great misfortune to both. I have made no secret of this opinion, and I am so thoroughly impressed with the great importance of re-union for the ultimate interest of both Colonies, that I will most cheerfully relinquish the Office I hold the moment it can be effected. I lean to the belief that personal rather than public interests have caused the Separation, to which Your Grace reluctantly assented.
13. IManuscript image
13. I venture to predict that a re-union, if it do take place, will effect a very trifling saving on the Civil Lists of the Colonies as Your Grace has proposed them.
14. It is unnecessary for me to offer any lengthened comment upon the Resolutions now adopted by both branches of the Legislature: any action taken in the direction of a Union, must be in accordance with the wishes and interests of the people of both Colonies, and I therefore look upon this appeal to Your Grace as a simple waste of time which can effect nothing.
15. I enclose a newspaper extract from the proceedings of the LegislatureofManuscript image of British Columbia bearing upon this subject.
16. I will only add, in conclusion, that I differ widely from the arguments and alleged facts addressed by the Majority of the Legislative Council, both of which are in my opinion very fallacious and exaggerated.
I have the honor to be
My Lord Duke
Your Graces very obedient
humble Servant
A.E. Kennedy
Minutes by CO staff
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Mr Elliot
I have little to say on this important despatch except that I fully agree in the Governor's views. My confident persuasion is that if the Legislature choses to go the right way to work there are ample resources in the Colony to provide for a Civil Establishment and its general expenditure. But they do not wish to pay a six pence more than they can help. The Duke of Newcastle decided, after a very long consideration, to give the Governor £3000 a year—which is no more than is enough in a very expensive place. You proposed—see draft desph 15 June/63—in consultation with myself the other salaries on the Civil List. I still think these salaries reasonable. The amount is £5800, with a possible addition of £400 in the event of a Lawyer being selected for the C. Justiceship. The sum voted in former years was [one line cut off microfilm] sales—rents—fines—forfeitures—fees, & miscellaneous (which I contend are Crown revenue) the amount at the Crown's disposal is 46640 dollars = £9716.13.4. Deduct the Civil List we have asked for £5800 from the above (£9716.13.4 - 5800.0.0 = £3916.13.4) and a margin remains of £3916.13.4. You will observe that in par: 9 the Govr says that the Assembly are applying various items of Crown Revenue to general colonial purposes—which corroborates the statements I have made on previous occasions.
With respect to the Union of V.C.Isld with B.C. that question must stand over until the report is received from Govr Seymour on this subject, which orally & by desp. he was directed to make.
ABd 23 June/64
Vancouver Civil List, and differences
with the Assembly
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Within is a Precis by Mr Ebden of the present state of the case about the refusal of the Assembly in Vancouver Island to provide for certain salaries and certain expenses of the Governor. He also gives a list of the despatches on the subject which are awaiting answer: and he mentions that the Assembly, whilst they have not agreed with the Government upon the terms on which the Crown Revenue might be surrendered, have nevertheless treated that Crown Revenue as part of the ways and means under their own control.
There is an accumulated balance of the Crown Revenue meanwhile of about £5400.
My opinion continues to be, as it was expressed in the minutes on the dispatches, that the Governor should be authorized to pay out of that balance the salary and passage allowance of his Private Secretary [marginal note: See enclosures in 5470], and also his Hotel expenses and the rentManuscript image of his house. It is true that the balance will not last for ever, but I should spend it as far as it goes and as long as it will last upon those objects which the Government at home may consider in themselves reasonable.
I should most decidedly and peremptorily prevent the Assembly from touching one farthing of the Crown Revenue until they come to terms. If we respect their rights, as we are bound to do, they must also respect ours.
TFE 19 July
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Mr Elliot
In a despatch from the Secretary of State of the 15th of June 1863 the following civil list was proposed for Vancouver I

Governor . . . . . . . £3000
Chief Justice . . . . 800 (to be raised to £1200
on appt. of a lawyer)
Colonial Secretary . . 600
Attorney General . . . 300 with practice
Treasurer . . . . . . 600
Surveyor General . . . 500

When this list was voted and the initiation of money votes reserved to Govt the Crown Revenue was to be held at the disposal of the Colonial Legislature. In a despatch of the 12th of February 1864 (2905) Sir James Douglas reported that the House of Assembly had declined to vote these salaries. In consequence a despatch dated the 30th of April (2905) was addressed to Governor Kennedy authorising him for the present to appropriate from the Land Revenue
In 1862 the [illegible] Land Rev. was £3318. In 1863 it is said to have been £4500. In 1864 it is estimated at [column of figures (relating to land sales and land revenue) partly cut off microfilm]. The other Revenue referred to was fines fees &c. In 1862 they were [£219?] and for the first half of 1863 were £1273 and 1864 were reckoned at 9000$ [+] 4000 [=] 13000[$] = £2708 but (?) [cut off microfilm] this available to the Crown.
and such other Revenue as might be at the disposal of the Crown £3000 for the Governor and £600 for the Colonial Secretary.Manuscript image The other officers were left to the mercy of the Colonial Legislature. This was the last step on the part of the Colonial office.
There have since been received from Governor Kennedy the following despatches written before he can have received Mr Cardwell's despatch of the 20th April.
1. A despatch of the 14th of April (5470) reporting that the House of Assembly had struck out of the estimates, without substituting any other provision, the salaries proposed by the Duke of Newcastle and submitted by Sir James Douglas: and further that the House of Assembly had refused to provide a House
Message respecting House and Private Secy had been sent by Gov. founded upon suggestions made to him when in England.
for the Governor as well as salary and passage allowance for his private Secretary. The House in their resolutions shewed a tendency to throw such charges entirely upon Crown Revenues.
2. A despatch of the same date (5471) reporting that there was in the Treasurers hands £5423 the balance of Crown Revenue—and asking leave to defray from this source his heavy hotel expenses and theManuscript image rent of a small house which he had at last succeeded in securing.
3. A despatch of the 27th of April (5480) again enclosing a copy of the estimates and reporting that he should draw his salary from the Crown Fund
£5423 [two words off microfilm] hand and (I suppose) the Crown Revenue thereafter to be collected.
just mentioned, that his Predecessor had authorised the Treasurer to pay from the same source the other salaries at the old rates. He at the same time asked leave for paying from the same source the said "other salaries" at the proposed new rates together with £200 to £350 a year to his private secretary whom he found indispensable. He concludes by expressing a belief that finally the proposed civil list will be adopted.
But vide his despatch 5 May.
(That list however does not include a private Secretary or a Governors house.)
4. A despatch of the 5th of May 1864 (5725). In this despatch the Governor transmits the Resolution of the House of Assembly already forwarded by Sir Jas. Douglas on the 12th of Feby, together with a Resolution of the Legislative Council dated the 3rd of May.
In the former (ie. the Resolution of the H of A) the civil list isManuscript image refused, with the offer however, in the event of an union between the two colonies with one civil establishment, to contribute 1/3 of the sum contributed by B. Columbia for its support. This looks very like an attempt to force an union.
The Legislative Council agrees with the House of Assembly and denies that the Land Revenue is an equivalent for the required civil list.
Mr Kennedy differs from both in thinking the Revenue adequate to meet the demand made upon it in the civil list. He also observes that the H. of A. in their estimates (to which Sir J. Douglas has assented) whilst rejecting the civil list nevertheless deal with Crown Revenue as an asset for general colonial purposes, which seems preposterous and, if acquiesced in, would I imagine affect the possibility of paying any salaries at all out of that Revenue.
N.B. These four despatches have yet to be answered.
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Vancouver Island. 5470, 5471, 5480, 5725.

What is the sum at the disposal of the Crown?

Estimate for 1864

$ £ £
Land Sales 31,912 6,648 1/3
Land Revenue 1,528 318 1/3 6,966 2/3
Fines, Forfeitures & Fees 9,000 1,875
Fees of office 4,000 833 1/3
Miscellaneous 200 41 2/3 2,750
$46,640 £9,716 2/3

Are the last three items Crown revenue? Consult Treasury?
As to the first two: the Land Sales in 1863 amounted to £4,500. The Legislative Assembly believes that in future years the Revenue from this source will be less [marginal note: Gov. Kennedy 5 May 5725]. The Legislative Council believes it will be nil: having resolved (with reason given) that the Public Lands of the Crown and the Crown Royalties do not and cannot be expected to produce any Revenue. The Governor believes that "their arguments and facts are very fallacious and exaggerated", that the resources of the Colony, properly administered, are ample to meet all reasonable demands, such as the proposed Civil List, but "that the present mode of raising Revenue is crude, unproductive, and inequitable".
Thus, the annual Crown revenue is uncertain.
But "there is at present an unexpended Balance of £5,423 accruing from Crown revenue, in the Treasurer's hands". [Marginal note: Gov. Kennedy 14 April 5471.] It is not clear whether this is surplus of 1863, or revenue of 1864, or partly one partly the other.
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2. Charges already sanctioned. [Marginal note: but these only authorize the 1st quarter's payment].

£ £
By despatch ) Governor 3,000
30 April ) Col. Secy 600
old rates new rates
By warrants ) Chief Justice 808 800
issued by ) Atty Genl 303 300
Sir J.Douglas ) Treasurer 505 600
) Surveyor 404 500

3. Remaining Claims.

Treasurer (increase) 95
Surveyor " 96
Private Secy 250 or 350
Governor's Residence
(11 months at 150$) 343 3/4
Do "outlay for want of
a house" (3 weeks at
$200) 125
(say) £910 or £1,010

(Private Secy's passage refused 6 Jan. 1865. See enclosure (3) 5470).
4. As to the increase of Salaries, the Govr has been informed (1 Aug. 1864) that it cannot be sanctioned without sufft security that funds, not merely arising from accumulated balances, but from the revenue annually accruing to the Crown or the Colonial Treasury, will be forthcoming to meet the charges, wh. wd be thus created.
This leaves only the questions of Private Secretary & Governor's Residence, for decision.
Manuscript image Private Secretary
The D. of Newcastle (11 Sept. 1863) was clearly of opinion that you ought to have a P.S. for whom £250 wd be a very proper provision…. In handing over to the Legre the Crown revenue, you will be at liberty to urge upon them the propriety of making this provision on the Civil List, and in case it shall be made, or on the chance of their making it, to select for yourself a P. Secy.
Gov. Kennedy writes (27 April 1864) The whole staff of the Colonial Secy's office consists of one clerk: and the Governor is wholly without clerical assistance of any kind. I have, under these circumstances, been compelled to employ a gentleman as my Private Secy and I wd request your Grace's authority to pay him at the rate of £300 or £350 per annum out of the Crown revenues. The latter sum, having regard to the very high cost of living, is, in my opinion, the minimum upon wh. a gentleman can exist.
Governor's Residence
The D. of Newcastle (16 Sept. 1863) writes The duty of providing the Govr with adequate house accommodation devolves upon all colonial communities, and I entertain no doubt that the H. of Assembly of V.C.Id will cheerfully respond to yr application on the subject.
Pending the erection of the house, the D. of N. authorizes you to engage a suitable residence, the rent for wh. will have to be defrayed by the Colony.
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Govr Kennedy (14 April 5471) has taken a small house at 150$ per month for eleven months from 16th April. Before this, he was compelled to reside three weeks (from Mar. 25) in an hotel, where his Board and Lodging cost more than 200$ per week.
He proposes to charge against the "unexpended Balance of £5,423" the house rent, subject to approval, and inquires whether he "may be reimbursed from the same source for the serious outlay I have incurred for want of a House up to this time".
If this last request is to be granted, it might be done by allowing twelve, instead of eleven months house rent, at 150$, making £375.
Govr Kennedy appealed to the Assembly for the cost of his residence and the salary & passage money of his P. Secretary [marginal note: See enclosures (2) and (3) in 5470 (14 April)]. In both cases they declined to act before knowing the result of the address wh. they have forwarded proposing terms of union (as regards Civil List) with B. Columbia.
No answer can be given to the address, till Govrs Kennedy and Seymour have replied to the despatch of 30 April, requesting their opinions on the question of union.
CSP 11 Aug.
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Acquaint Governor Kennedy that his request for his house rent, for some allowance on account of that part [of] his Hotel expenses which has been incurred by reason of his not having a House provided for him, & for a Private Secretary are all admitted to be in their nature reasonable: but that so far as appears at present the payments already authorized are as great as the Crown Revenues will suffice to pay. That I regret therefore my inability at present to sanction any further charge. [I] request that he will lose no time in transmitting [the] fullest information in his power, as to the Crown Revenue, ie the balance now in hand, the paymentsManuscript image which by reason of contracts already entered into are [certain to] be paid to the Crown, & the estimated receipts of future land sales.
And also assuming B. Columbia to be unwilling to enter into the proposed arrangement for a reunion as to the prospect of his Legislature making proper arrangements for the future conduct of the Government.
EC 11 August
Documents enclosed with the main document (not transcribed)
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Legislative Assembly to Douglas, 9 February 1864, declining to accept the civil list proposed by the Secretary of State, and proposing that there should be "but one Civil Establishment for the two Colonies."
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Minute on the intercourse between Kennedy and the Executive Council, 11 April 1864, in which Kennedy seeks the opinion of council regarding the propriety of the message he proposes to address to the Assembly, and Council concurs in his views.
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Kennedy to Legislative Council, 11 April 1864, laying before them the resolutions (9 February) of the Legislative Assembly for their consideration and opinion.
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Legislative Council to Kennedy, 3 May 1864, concurring with the resolutions of the Assembly, with explanations, signed by David Cameron, president.
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Newspaper extracts, The British Colonist, 12, 15, 28 and 30 April, and 3 May 1864, reporting on the debates in the Legislative Council on the civil list question.
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"Colony of Vancouver Island. Estimates for the Year 1864."
Minutes by CO staff
[Referring to the following
items under "Heads of Revenue:" Land Sales; Land Revenue; Fines, Forfeitures and Fees; Fees of Office; and Miscellaneous]
I regard the above as Crown Revenue: but, if I remember right, Sir F.R. demurs. I can only say that in most colonies, the items 3, 4, 5, consitute casual Revenue [and] have been given up by the Crown along with Land Revenue in exchange for a Civil List. This point, howr, shd not be left in doubt; the Treasury [shd ] of course resolve it; for it is very material for us to know [with] what [the] Crown has to [depend] upon [for] paying [its] officers [and] also what [is] the amount [it] has to give up.
ABd 22 June/64
Documents enclosed with the main document (not transcribed)
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"An Act to apply the sum of two hundred and fifty-seven thousand two hundred and seventy-nine dollars and fifty cents out of the General Revenue of the Colony of Vancouver Island and its Dependencies, to the service of the year one thousand eight hundred and sixty-four," 12 March 1864, (includes printed schedule of expenditures).
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Newspaper extracts, The Daily Chronicle, 5 May 1864, and The British Columbian, 4 May 1864, on the question of union between the two colonies, the former extract representing the anti-union sentiment in Vancouver Island.
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Draft reply, Cardwell to Kennedy, 15 August 1864, concerning salaries for public servants and colonial revenues.