 
                  
                  
                  
                  Crown Fund.
                     
                  
                  
                     You will remember that it was found that 
M Seymour the late
                     Governor of 
B.C. had been paying himself from the Crown Fund a
                     sum of £1000 in addition to his other Salary of £4000. And the
                     present Governor was requested to state what amount 
M Seymour
                     had so drawn, & at the same time to report up to what date the

                     accounts had been sent home for Audit.
                     
                     The Gov reported that the sum drawn was $12421 & that no
                     Accounts had been sent home since the Union. He was therefore
                     told to send them & he now does so.
                     
                  
                  
                     The question is what should be done with them. Should they
                     undergo any regular process of Audit & if so by whom.
                     
                  
                  
                     I have looked thro' those

 of 
1869—of course only cursorily—& I
                     should say that the various items have been expended on the
                     authority of the local 
Gov, & so far as I gather not
                     improperly. In one account appears the payments to 
M Seymour
                     from 
26 Nov 1866 to 11 June 1869, per an $4,850—total of
                     $12421 as already shewn. $7679 apparently paid to 
M
                        Seymour, $4742 to his Executor. There are various sums paid
                     into 
the Treasury—meaning I believe

 money lost to the Colony.
                     
                     But as you are also aware it is still an open question whether
                     
M Seymour's Representatives should be called upon to refund
                     the monies drawn from this Fund for Salary; & 
the Treasury in
                     4646 state "that they await a further communication from the
                     
Colonial Office after the receipt of the Accounts of that Fund
                     since the Union."
                     
                     The Colony has not yet taken over the Crown Fund on our
                     conditions—& possibly

 they will not do so pending the
                     consideration of the Federation question.
                     
 
                  
                  Sir F. Rogers
                     Having looked through these papers in accordance with your wish, I
                     would now offer the following remarks on them:
                     
 
                  
                  
                     The Accounts sent by the Governor have reference to the Crown
                     Fund "from the date of Union to the 31 December 1869."
                     
                  
                  
                     I think it may safely be considered that the Accounts have been
                     formally rendered, and have undergone a careful audit in the Colony;
                     for although the first of them, which covers only the last 5 or 6
                     weeks of the year 
1866, bears no certificate from the Treasurer or
                     Auditor,
each
 each of these three Accounts for the years 
1867-
8-
9 has been
                     declared to by the Treasurer in the form given in the margin [see
                     following],
                     
                     I, 
John Graham, do solemnly & sincerely declare that this Account is
                     just and true according to the best of my knowledge and belief, and I
                     make this solemn declaration conscientiously believing the same to be
                     true.
                     
                     
John Graham
                     
                     Officer in Charge of 
the Treasury
                     
                     and has been certified by the Auditor, with slight variations of
                     language, in the following form—
                  
                  
                  
                  
                  I, 
Robert Ker, Auditor, do certify that I have examined the several
                     entries appearing both on the Debit and credit sides of the foregoing
                     Account, and having compared the same with the original Accounts of
                     the several Public Departments as audited in my Office, have found
                     them to agree; and I further certify that proper Accounts of
                     particulars, authorities and Vouchers in conformity to the existing
                     Regulations of Government, as far as it is possible to obtain them,
                     have been exhibited to me in support of the several articles of
                     charge and discharge therein contained.
                     
                     
Robert Ker
                     
                     Auditor General
                     
 
                  
                  
                     I have read in detail the D and C side Entries in the Cash
                     Books. No Abstract is given for the short Account of November and
                     December 1866, but I have prepared one. As regards the later years,
                     Abstracts have been given. I have checked them in a few cases, so as
                     to satisfy myself that the Accounts are in proper form, and the
                     following table, which has been framed almost entirely from the
                     annual Accounts, may I think be safely taken as correctly
                     representing the sources and amounts of the Revenue, and the general
                     heads of the Expenditure from November 1866 to 31 December 1869.
                     
                  
                  
                     I have omitted from it sums paid into or drawn out of the Bank
                     in the Colony, and also sums lent to the General Revenue or repaid.
                     In regard, however, to the latter
I
 I may mention that the sums lent to
                     the General Revenue in the period of these Accounts was $2100, and
                     the sum replaced by the General Revenue was $5301.05. The debt from
                     the General Revenue (the amount of which I have not learned from
                     these Accounts) was therefore reduced between 
November 1866 and
                     
December 1869 by $3208.05.
                     
 
                  
                  
                     [This is followed by several account sheets bearing reference to
                     the 
Vancouver Island Crown Account, 
November 1866 to 31 December 1869,
                     prepared in the colonial office.]
                     
 
                  
                  
                     Lord Kimberley
                     I do not pass on the bulky Crown accounts of the last few years
                     but only 
M Lewes' memo on them.
                     
 
                  
                  
                     I think the minutes have gone a little astray here.
                     
                  
                  
                     The Treasury will have nothing to say to the audit of 
B.
                        Columbia Crown Funds—those funds being, though under the
                     control of the Crown, as completely Colonial Revenue, as the
                     General Revenue.
                     
 
                  
                  
                     Nor do I see that now, after their abdication of Financial
                     authority over Colonies, they have anything to do with 
M
                        Seymour's case.
                     
                     As to the Crown Fund, I think a comparison of the items
                     bro together by 
M Lewes in the annexed memo does not look
                     well for its administration. (As to the question how are
                     the accounts to be audited vide that memo.)
                     It is eaten at by fixed Salaries, 
w if fair
                     ought to be charged on the

 General
                     Revenue—and the expenses of keeping up Government House.
                     
                     But as it seems to be been efficiently audited in the Colony we
                     have offered on terms, to give it up, and as the Colony will in
                     all probability be soon part of Canada, I think it w hardly be
                     worth while raising any questions.
                     
                  
                  
                  
                  
                     The sum of that is that what 
M Seymour took, tho' in a lawless
                     kind of way, he was reasonably entitled to consider due to him
                     (vide particularly 
Lord Carnarvons Note 14206 
B.
                        Col), & that the 
Sec of State 
w have been

 bound in honour
                     to support his claim with 
the Treasury, who however 
w have
                     been at liberty if they chose, to put the S. of S. in a
                     difficulty by refusing to allow it.
                     
                     The Treasury authority being abandoned, I think if 
M Seymour
                     were still in the 
Gov Service he should have been not muleted
                     
                     but rebuked for helping himself. But there is no use in
                     rebuking his wife and Executors; so I 
w say no more about the
                     matter, & put by all these papers.