Murdoch to Rogers (Permanent Under-Secretary)
Emigration Board
11th May 1868
Sir,
I have to acknowledge your letter of
7th inst. with the copy of
a despatch from the Governor of
British Columbia enclosing an
Ordinance "to provide for the settlement of all outstanding
questions relating to the sale of land for taxes in
Vancouver Island."
2. It appears that numerous sales of land had been made in
Vancouver Island under the Real Estate Tax Act
1860 and an
Amending Act
1862, to satisfy arrears of taxes
imposed by those
Acts. The sales, however, not having been made in accordance
with the requirements of the Acts are defective in title and
call for legislative action. If there had been nothing more in
the case than the mere non-observance of technical formalities
the obvious and simplest remedy would be an Ordinance validating
the sales and the titles derived from them. But it appears from
the report of a Commission appointed by the Governor of
B. Columbia to enquire into all matters connected with these
sales, that not only in no instance were the legal formalities
observed,
but that in numerous instances much injustice had been
committed towards the owners of the land. In some cases
property had been sold on which the taxes had been paid, and in
all cases it had been sold at prices greatly below its value.
3. The remedy adopted by the Local Legislature is the present
Ordinance not to validate, but (sections 1, 2, 3, & 4) to annul all
sales made for nonpayment of taxes under the Real Estate Tax
Acts & to repay to the purchasers from the public Treasury the
purchase money, with interest at the extreme Colonial rate of 24
per cent per annum, and to make the sum so repaid
and the
subsequently accrued taxes a primary charge on the lands in
favour of the Government. The Ordinance then proceeds to
require (sections 5, 6, & 7) that lists of these charges and taxes
should be published in the Government Gazette for three
consecutive months, and if at the end of the three months the
debt is not paid, the Governor is empowered to order an entry to
be made on the land and a notice of entry to be registered with
the Registrar of Titles, whereupon the lands are to be deemed to
have passed by operation of Law into the possession of the Crown
as demesne
Lands. If within two years the debt should be
discharged by means of the rent and proceeds, the land is to be
reconveyed to the original owner—but if not, the Governor
(after the lapse of six months more and monthly publications
during that time of notices in the Government Gazette) is
authorized to sell the land by public auction in either one or
more lots, to pay out of the proceeds the sums due to the Crown,
and to hold the balance for the benefit of the owner of the lands.
4. The Commissioners of Inquiry in their report state that the
purchasers under the defective
sales not having taken possession
of or utilized their purchases can sustain but little injury, &
express their deliberate & unanimous opinion that fair and
substantial justice will be done, and a great embarrassment
removed, by the proposed mode of settling these outstanding
questions. The Attorney General and
Governor Seymour approve of
the measure, and under the peculiar circumstances of the case no
sufficient ground occurs to us for dissenting from the general
conclusions of the Legislative and Executive Authorities of the
Colony. I would submit, therefore, that the Ordinance be left
to its operation.
5. The subordinate questions, however, raised by the
Duke of
Buckingham & Chandos' despatch to the Governor of 8
th
Febry last, namely, as to how the irregularities connected
with the sales so long escaped detection—who were the public
officers charged with them—whether they are still in the public
service—and in what way remunerated, cannot be dealt with until
the Governor's answer has been received.
I have the honor to be
Sir
Your obedient
Humble Servant
T.W.C. Murdoch
Minutes by CO staff
Sir F. Rogers
The Land Board submit that this Ordinance be left to its
operation, & under the circumstances I suppose it should be confirmed.
Should not the Govr's attention be called to the last
paragraph of the despatch of 8 Feby calling for a report upon
the irregularities committed?
The matter is of such a kind that it can only be dealt with by
local authority somewhat roughly & arbitrarily
applied, and this Act places the
Govt in a position so to deal with it. But the provisions of
the Act if literally carried out
wd in many conceivable cases
work much injustice. It may, e.g. be found on the one hand that
certain of the purchasers have utilized their land or incurred
expenses on the faith of their ownership—while on the other
persons who have paid their taxes & have had their lands
illegally sold cannot properly be called on to buy off
purchasers to whom the
Govt have illegally sold their property
(as observed by
Mr Holland on 4573).
I think that the
Govt ought to be armed with the necessary
power to enable them with the advice of a Commission or Board of
competent persons to set up the titles of such purchases as
c
d make a case of hardship, and to compensate from Public
Funds such purchasers as had bought lands
wh there was no
substantial ground for selling.
On this I shd be disposed to say that the Orde had not been
submitted to HM but wd be allowed to remain in operation if
provision to the above effect were made.
Let me see draft when written.
Other documents included in the file
Minutes by CO staff
I have made an alteration as suggested.