No. 75a, Financial
28th September 1866
My Lord,
I have the honor to acknowledge the receipt of Mr Cardwell's Despatch No 27 dated 25th June 1866 wherein it is stated that some doubt has arisen respecting the exact meaning of my Despatch No 18 of the 6th March last, and inquiry is made whether Fines, Fees and Forfeitures were not previously to the 1st of January1866Manuscript image 1866 carried to the credit of Crown Revenue and if not for what reason.
In reply I have the honor to state that I did not in my Despatch intend to convey that the payment of Fines, Fees and Forfeitures to the account of Crown Revenue was from 1st January 1866 proposed to be specially applied to defraying the expenditure in Lighthouses.
I enclose copies of a Memorandum of the Colonial Secretary and of a letter from Mr Ker, Auditor GeneralofManuscript image of British Columbia and until lately acting as Auditor for Vancouver Island, which I trust will be found to afford the required information relative to the disposal of Fines, Fees and forfeitures prior to 1st January 1866.
I have the honor to be,
My Lord,
Your Lordship's most obedient Servant
A.E. Kennedy
Minutes by CO staff
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Mr Elliot
The enclosures supply the information required by Desp: of 25 June 66, as to the Appropriation of fines fees & forfeitures.
VJ 10 Novr
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The Treasurer appears to have gone on the principle that when the Crown Revenues paid for a particular Department, the fees received in that Department should go to the Crown Revenue, but that when the general revenue paid all the expenses of a Department, the fees received in that Department ought to go to the credit of the general revenue.
This appears to be equitable in itself, but I have no means of stating how far it accords with general practice in places where fines and fees are said to go to the Crown.
The choice seems to lie between accepting the explanation as sufficient, or asking the Treasury whether they are ofthatManuscript image that opinion. If the latter, I think that our letter should begin by some such general remark as I have above offered.
TFE 24 Novr
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Lord Carnarvon
I think it would be as well to ask the Treasury if they consent to this principle of appropriating funds.
CBA 26/11
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C 26 Nov
Documents enclosed with the main document (not transcribed)
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Memo, W.A.G. Young, Colonial Secretary, to Kennedy, 26 September 1866, describing past and present procedures regarding the disposition of funds received on account of fines, fees and forfeitures.
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Robert Ker to Colonial Secretary, 27 September 1866, detailing the general procedure he employed in apportioning the revenue received on account of fines, fees and forfeitures, with explanation.
Other documents included in the file
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Colonial Office to Secretary to the Treasury, 5 December 1866, forwarding copies of correspondence on the subject for opinion.