No. 50, Financial
               
            
            
            
            
               1.  I have the honor to submit for your consideration the documents
               named in the enclosed Schedule.
               
            
            
               2.  Shortly after assuming the Government of this colony I directed
               my attention to its financial condition, and observed that a large
               arrear of the Real Estate Tax
remained
 remained uncollected over several
               years.
               
               3.  Knowing the high market value of real property in Victoria and
               the solvency and prosperity of its owners, I was naturally surprised
               at finding this large arrear, and addressed myself to the Treasurer
               for information in the Queries herewith.
               
            
            
               4.  That officer's Report and replies will be found herewith.
               
            
            
               5.  On receiving that Report I caused an inquiry to be addressed
to
 to
               the Attorney General, and on the same date I caused a letter to be
               addressed to the Chief Justice.
               
               6.  The replies to these letters are now transmitted with other
               papers bearing upon the same subject.
               
            
            
               7.  I also enclose a copy of "The Real Estate Tax Amendment Act 1862"
               to which these letters and documents refer.
               
            
            
               8.  You will observe that the Attorney General and the Chief Justice
               are directly at issue as
to
 to the power conferred on the Executive by
               Sections 42 and 43, and it would therefore be most inexpedient to
               attempt to enforce the collection of these arrears before a Judge
               avowing and having given publicity to the opinions conveyed in his
               letter dated 
26th July 1864.
               
               9.  The doctrine laid down in the letter of the Chief Justice that he
               did not think the Legislature of 
Vancouver Island had
               
authority
               to make such a Law as that under consideration appears to me
to
 to be
               wholly fallacious, and if carried out to its full extent would render
               local legislation useless.
               
               10.  "The Real Estate Tax Amendment Act, 
1862" was duly passed by
               both bodies of the Legislature and assented to by the Governor and
               has not been disallowed by Her Majesty.
               
               
               
                  
                     
                     This Act was allowed by H.M.
                     
                  
                
               
               
               11.  There is unfortunately no Appeal from the Chief Justice on
               points involving the construction of local laws, and I fear that
               great evils have already arisen from a want of decision and firmness
               in the administration of them.
               
            12.  It 
            
            
               12.  It is obviously useless for the local Legislature to pass laws
               if the Chief Justice is authorized to set them aside or refuse to
               enforce them on the grounds of their impolicy which it would be out
               of place here to discuss.
               
            
            
               13.  I regret exceedingly to trouble you with this matter on which I
               would ask for a legal opinion.
               
            
            
               14.  The law business of this Colony whether as administered by the
               Chief Justice or conducted by the Attorney General is in a very
               unsatisfactory condition, and I
shall
 shall probably be under the necessity
               of addressing you upon this subject at an early period.
               
               15.  I am unable to discover any record of the reasons for these
               arrears being allowed to accumulate since 1860 beyond those contained
               in the documents which I enclose.
               
            
            
               I have the honor to be,
               Sir,
               Your very obedient Servant
               
A.E. Kennedy
               Governor
               
               Minutes by CO staff
               
                
                  
                  Sir F. Rogers
                     Possibly you will be able so to advise 
Mr Cardwell on this point as
                     may enable him to express an opinion thereon with
t any reference to
                     the Law Officers of the Crown.  But it strikes me that if the local
                     Authorities are perplexed in consequence of doubts thrown out by the
                     Chief Justice on a question of Law and if opinions are desired for
                     their guidance from the English Law Officers the Colonial funds, &
                     not the English Treasury 
shd pay for the same.  I see no Imperial
                     element in this.
                     
 
                  
                  
                  
                  
                  
                     It has been considered that it was useful that Col. Govts &
                     Legislatures shd be guided by the opinion of the English Law
                     Officers & that it was undesirable to discourage applications of this
                     kind by making claims for payments.
                     
                  
                  
                     I have no doubt that the C.J. is wholly wrong.  But a C.J. is a C.J.
                     and I 
wd therefore send copies of these papers to the L. Off
rs
                     directing their attention to the 42
nd 45
h 47
h & 53
rd sections of
                     the "Act to amend &c." and to the opinion expressed in the C.J.'s
                     letter of 
26 July 1864 to the effect that the L
re of 
V.C.I. had not
                     authority to make Real ppty
                     in 
V.C.I. alienable for a charge 
wh is only a personal one in
                     England.  Enclose also copy of the Charter conferring Leg
e
                     Auth[orit]y on the 
V.C.I. Leg
re
                     
                     
                     
                     
                     and request to be informed whether after perusing
                     these papers the L.O. think that there is any reason for doubting the
                     validity of the clauses above set forth.
                     
 
                
            
            
               Documents enclosed with the main document (not transcribed)
               
               
               
                
                  
                  
                     Report by 
Watson, 
11 July 1864, on the arrears of
                     taxes levied during the years 
1860, 
1861, 
1862, and 
1863 (five
                     pages).
                     
 
                  
                  
                     Copy, 
Cary to Acting Colonial Secretary, 
20 July 1864, replying to his
                     request of 
19 July.
                     
 
                  
                  
                     Copy, 
Wakeford to Chief Justice, 
19 July 1864, inquiring as to
                     obstacles in the way of collection of arrears of taxes.
                     
 
                  
                  
                     Copy, 
Cameron to Acting Colonial Secretary, 
26 July 1864, explaining
                     his reservations about the Real Estate Tax Amendment Act of 
1862.
                     
 
                  
                  
                     Colonial Secretary 
W.A.G. Young to Treasurer, 
27 November 1862,
                     instructing him "not to refuse acceptance of any Taxes when tendered,
                     notwithstanding that the legal period for the payment of such Taxes
                     may have expired."
                     
 
                  
                  
                     Copy, 
Young to Treasurer, 
30 July 1863, instructing him to publicize
                     the fact that all property with taxes still outstanding as of 
22
                        May 1864 would be sold by auction.
                     
 
                  
                  
                     Copies of minutes which passed between 
Kennedy, 
Wakeford,
                     
Watson, and 
Sheriff William B. Nayler, 
30 July and 
1 August,
                     in which it is determined that the Colonial Secretary had instructed
                     the Sheriff not to proceed with any sales of the lands in question.
                     
 
                  
                  
                     "An Act to Amend the 'Real Estate Tax Act, 
1860,'" passed by the
                     Legislative Assembly 
23 October 1862, received 
Douglas's assent 
17
                        December 1862.
                     
                     
 
            
            
               Other documents included in the file
               
                
                  
                  
                     Rogers to Attorney General and Solicitor General, 
5 October
                        1864, forwarding copies of the despatch and enclosures and asking for
                     their opinions on the legal questions raised.
                     
 
                   
            
            
            
               
                  People in this document
                  
                        Blackwood, Arthur Johnstone
                  
                        Cameron, David
                  
                        Cardwell, Edward
                  Cary, Attorney General George Hunter
                  
                        Douglas, Sir James
                  
                        Kennedy, Arthur
                  
                        Nayler, William B.
                  Rogers, Baron Blachford Frederic
                  
                        Wakeford, Henry
                  
                        Watson, Alexander
                  Young, William Alexander George
                
               
                  Places in this document
                  Vancouver Island