No. 35
               
            
            
               2 May 1861
               
            
            
               With reference to my Despatch N
o 50 of the 
5th of December 1860
               upon the subject of the completion of the Light Houses in 
Fucas
                  Straits, and wherein I report the amount required to effect a final
               settlement of the cost of
erection
 erection as about one Thousand pounds
               (£1000), I have the honour to represent to Your Grace that after this
               settlement was effected, and I was under the impression that all
               payments had been made, claims against the work to the extent of
               between Eight Hundred (£800) and One Thousand pounds (£1000) were
               brought to my notice; the Contractor, as I stated in my Despatch,
               having broken down and having no available assets, and his sureties
               being legally relieved from their responsibility by the
Government
 Government
               under the circumstances before explained being compelled to step in
               and take the work of the Contract into their own hands.
               
               2.  These claims were principally for provisions supplied to workmen,
               and it was alleged that the Government was justly responsible for
               their settlement, inasmuch, first, as although ordered in the name of
               the Contractor, still they had been obtained by the officer of the
               Government superintending the work; and secondly, that
when
 when some of
               the orders for payment given by the Contractor upon the Colonial
               Surveyor had been presented to that functionary, he although not at
               the time accepting them, had nevertheless, as they considered it,
               given such assurances of a final satisfactory settlement, as to quiet
               the apprehensions of the creditors, and to lead them to make further
               supplies.
               
               3.  I placed the whole matter in the hands of the Attorney General,
               who after a long and careful investigation
ascertained
 ascertained that although
               probably legally the Creditors could not force their claims, still
               that for the credit of the Government, we were morally bound to
               liquidate a portion of the claims amounting to the sum of Four
               Hundred and thirty pounds (£430).
               
               4.  Under these circumstances I felt that it was incumbent upon me to
               accept of this portion, and I am therefore obliged to draw one further
               Bill upon Her Majesty's Government for the necessary sum of Four
               Hundred and thirty
pounds
 pounds (£430).  I do so with great reluctance for
               Her Majesty's Government have already so generously and readily met
               our requirements, and having led Your Grace to imagine that my last
               draft would be final, as I then believed it would be, I am most loth
               to make this further call for assistance, but I have no other means
               of meeting the outlay required, for the expenses of starting the
               Lights in working order have been very heavy, and
the
 the Colonial funds
               appropriated to their maintenance have been all absorbed.
               
               5.  I trust therefore Your Grace will be pleased to cause the Bill I
               now draw to be accepted by the Board of Trade upon presentation.
               
            
            
               6.  The final accounts with that Department will be forwarded either
               by the present or following Mail.
               
            
            
               I have the honor to be
               My Lord Duke
               Your Grace's most obedient
               and humble Servant
               
James Douglas
               
               Minutes by CO staff
               
                
                  
                  
                  
                  
                     Copy to Treasury & B. Trade.  It is to be hoped that the Colonies of
                     
B. Columbia & 
V. Couver Isld will be required to pay the moiety of
                     this further & unexpected charge for the Lighthouses.
                     
                     I can conceive few situations
                     more adapted than Fucas's straits for the collection of light dues;
                     and as the whole of the shipping, excepting always [possible one
                     line cut off microfilm]
                     
                     belongs to the United States, we should not feel much compunction in
                     demanding toll.  The Consumer might ultimately have to pay the tax;
                     but the amount wd be very small, & indirect.
                     
                  
                  
                  
                  
                  
                     I suppose we must send this despatch to the Bd of Trade for
                     consideration.
                     
                  
                  
                   
               
               
                  
                  
                     And to Treasury?  and inform them that the 
Duke of Newcastle while
                     recommending that the Bill be accepted, proposes to call upon the
                     Gov
ts of V I
d & 
B. Columbia for repayment of a moiety of the total
                     cost of the Lighthouses.
                     
 
                
            
            
               Other documents included in the file
               
                
                  
                  
                     Colonial Office to 
James Booth, Board of Trade, 
20 July 1861,
                     forwarding copies of this and a subsequent despatch (No. 36).
                     
 
                  
                  
                     Elliot to 
G.A. Hamilton, Treasury, 
20 July 1861, forwarding copy
                     of the despatch and asking that the additional bill be accepted.