No. 35

With reference to my Despatch No 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 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
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 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 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 (£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 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.