Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Public Offices document
Laing, J. to Elliot, Thomas Frederick 25 April 1860, CO 305:15, no. 4143, 537.
Abstract
Public Offices document.
Minutes (10), Other documents (2), Marginalia (1).
Laing to Elliot (Assistant Under-Secretary)
Treasury Chambers
25 April 1860
In reply to Mr Merivale's Letter of the 29th February last, and to
your Letter of the 12th Instant, relative to the proposed payment to
the Hudson's Bay Company of the sum of £25,000, towards the
adjustment of their claims Consequent upon the resumption of
Vancouver Island by the Crown; I am directed by the Lords
Commissioners of Her Majesty's Treasury to acquaint you, for the
information of the Duke of Newcastle, that, as it appears that
the total sum to be awarded to the Hudson's Bay Company, for the
adjustment of these claims, cannot at present be ascertained, My
Lords are of opinion that the time has not yet arrived for submitting
to Parliament an Estimate for the discharge of such Claims.
Their
Their Lordships will however be prepared to advance the sum of
£25,000 recommended by the Emigration Commissioners, at the proper
time, such advance to be replaced out of such moneys as Parliament
may hereafter vote for this service.
As the settlement of these claims must be founded on an investigation
not only of the cost of the Buildings &c: erected by the Company, but
of the account of Credits for Land Sales &c: and upon an Estimate of
the abatements to be made, from the outlay of the Company for
deterioration,
My Lords would suggest to the Duke of Newcastle that
it would be advisable to entrust the examination of the several
Accounts to an Officer of His Grace's Department, assisted by one to
be named by this board; and that the Estimate to be submitted to
Parliament should be founded on their Report, which should be printed
with such Estimate; and, upon hearing that His Grace approves of this
suggestion, Their Lordships will instruct one of Their Officers to
put himself in
in Communication forthwith with the Colonial Office, in
order that no unnecessary delay may take place.
No doubt. But so they must [one word off file] before the 25000
is paid?
in Communication forthwith with the Colonial Office, in
order that no unnecessary delay may take place.
Minutes by CO staff
Mr Merivale
Pending the receipt of this answer we have been obliged to pause in referring the despatch to Govr Douglas, which was written by Mr Murdoch, to the Hudson's Bay Co as proposed in yr minute on 2978. You will now be able to advise whether it should still be referred to that Co, and with what, if any amendment—for the Treasury seem to require an examination of the Accounts previously to payment of the £25,000.
Pending the receipt of this answer we have been obliged to pause in referring the despatch to Govr Douglas, which was written by Mr Murdoch, to the Hudson's Bay Co as proposed in yr minute on 2978. You will now be able to advise whether it should still be referred to that Co, and with what, if any amendment—for the Treasury seem to require an examination of the Accounts previously to payment of the £25,000.
You will also have to consider what we are to tell the Co.
ABd
25 Apl
The Treasury letter is obscure, but I hardly think they mean to
require a fresh investigation of the claims before the £25,000 is
paid. It is very desirable they should not: as, until that sum is
paid, there may still be difficulties with the Company about the land
sales in Vanc. I. Place Mr Murdoch in communication with the Ty?
He will easily explain to them how the matter really stands.
HM
Apl 26
Advise Mr Murdoch accordingly?
Mr Elliot
In obedience to the Minutes on this letter [I] have seen Mr Shelly of the Treasury, and have been informed by him that the Treasury will be prepared to pay the £25,000 at once, on being requested by the Colonial Office to do [so]. The proposed investigation will be preliminary to the final closing of the account.
In obedience to the Minutes on this letter [I] have seen Mr Shelly of the Treasury, and have been informed by him that the Treasury will be prepared to pay the £25,000 at once, on being requested by the Colonial Office to do [so]. The proposed investigation will be preliminary to the final closing of the account.
I think its right, however to remind you that the arrangement with
the H.B.Co. is a compromize—and that it is by no means advisable to
make the investigation which [is] proposed very stringent. The Co
were told, in the letter proposing the compromize that altho' their
accounts must be supported by reasonable proof of expenditure, the
Govt would not insist strictly on the production of vouchers where
probably no voucher had 
been taken. If a severe scrutiny
should now be instituted into their accounts, the Co might complain
that faith is not kept with them—and might be disposed to fall back
on the terms of the grant of 1849. In that case it is impossible not
to fear that the Crown might eventually find itself compelled to pay
for the whole expenditure of the Co amounting to upwards of
£225,000, and it is not clear that even after paying that sum the Co
would not have a further claim against it.
been taken. If a severe scrutiny
should now be instituted into their accounts, the Co might complain
that faith is not kept with them—and might be disposed to fall back
on the terms of the grant of 1849. In that case it is impossible not
to fear that the Crown might eventually find itself compelled to pay
for the whole expenditure of the Co amounting to upwards of
£225,000, and it is not clear that even after paying that sum the Co
would not have a further claim against it.
TWCM
1 May 1860
TFE
1 May
Other documents included in the file
Draft,
Elliot to Laing, 5 May 1860, asking that the paymaster general be
authorized to advance £25,000 to the Hudson's Bay Company as a payment
on account.
Other documents included in the file
*
Draft,
Elliot to G.A. Hamilton, Treasury, 17 May 1860, concurring with his
suggestion that the accounts of the Hudson's Bay Company
be examined prior to disbursement of the initial £25,000, but
stressing the need for a speedy settlement.
Minutes by CO staff
The Treasury have sent word that they did not mean to promise
payment of the money absolutely, but only upon condition of some such
cursory inspection of the accounts as may shew that £25,000 will
certainly fall within the total amount that will ultimately be
proved to be due. This Draft is therefore submitted. They are quite
prepared to act upon it immediately & without any needless obstruction.