No. 63

I have the honor to submit the accompanying papers for your
consideration in connection with the resignation of Mr G.H. Cary,
Attorney General with the following explanation.

Mr Cary had held the office of Registrar under the "Vancouver Island
Joint Stock Companies Act, 1860" from the date of its passing, in
right of which office he collected the fees under that Act.

Circumstances arose which led me to doubt the regularity with which
he had accounted for them and I called for a return showing the names
of all Joint Stock Companies registered by him, the dates of their
registration, and the fees received by the Attorney General as
Registrar.

This Return was called for on the 16th August, and on the 20th
August Mr Cary without replying to that communication paid into the
Treasury the sum of $1179.40 as shown by the Treasurers letter dated
20th August and accompanying accounts.

It will be observed that these fees had been accumulating in Mr
Cary's hands from January till August 1864 without being accounted
for.

Though I have taken steps to prevent the possible recurrence of such
culpable irregularity I do not feel justified in withholding the
knowledge of it from you.

Documents which have been placed before me show that while Mr Cary
had improperly retained this considerable sum of public money in his
hands, he had borrowed money at the rate of 3 per cent per month or
36 per cent per annum.