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1865. On 28th October, 1862, Geraldton was proclaimed a town at which Quarter Sessions might be held. Other legal difficulties arose in 1861 in regard to Judge McFarland and the Liddelow case.

These were among the last acts of Governor Kennedy's administration. In convict expenditure he was said to consider the interests of the Imperial Government to the detriment of those of Western Australia. His administration of convict labour was sometimes deemed inefficient and not to the best interests of colonists. It was announced in March, 1861, that the sum of £22,000 was lying idle in the colonial chest when there were numerous pressing uses in roads, bridges, and buildings to which it might be put. For some time Governor Kennedy had been exceedingly economical in the amount of money applied to public works, and he was accused of being foolishly parsimonious so as to show a substantial surplus at the expiration of his term of office. He was enabled to save a portion of this money because the limited number of convicts arriving did not absorb the appropriation. Just before leaving the colony, however, he projected public works on a scale which was said to be altogether unwarranted by the money in hand or to come, thus casting a burden on his successor.

While perhaps not obtaining the best results from convict labour, his rule pleased the Imperial Government and, to some extent, the colonists. In a despatch dated 9th September, 1861, the Secretary of State expressed approval of his services. Then on 11th December, 1861, in the Legislative Council, Mr. Samson read an address eulogising the freedom of debate allowed every member by the Governor, and his "calm dignity," "uniform courtesy," and "pleasing address." On 20th February, 1862, an address was presented Governor Kennedy by the heads of departments and clerks in the Government offices, and on the same day he departed from Perth for England. When giving evidence before Earl Grey's Committee, ex-Governor Kennedy claimed to have built 192 bridges, 219 culverts, and cleared 1,030 miles of road during the years 1855 to 1862.

Dr. John S. Hampton, the new Governor, arrived at Fremantle on 27th February, 1862, by the ship Strathallen. The customary congratulations, &c, were addressed to him by the citizens of Fremantle and Perth. Governor Hampton had for some time been Comptroller-General of convicts in Tasmania, where he was known as a severe disciplinarian, and where he became unpopular. It was anticipated, because of his wide experience in convict administration, that he would institute radical and beneficial changes in the public works policy, and that the best results would be obtained from convict labour therein. His term of office justified these expectations. He almost immediately infused new spirit into public works. He increased the number of labourers engaged in erecting Government House, in metalling streets, and in building the Swan River wall. Roads and bridges were also projected with vigour.

Governor Hampton experienced difficulty in meeting the liabilities entered into so liberally by his predecessor, especially in the necessity of curtailing operations so as to pay his way. In consequence, he had to refuse requests for new works, which were sometimes urgently required. He assured memorialists for one of these works that, while not able to grant their petition owing to financial reasons, he would earnestly endeavour to "render convict labour available for purely colonial work, so as to realise some of the expectations of the colonists regarding the material benefits to be derived from the presence of convicts in Western Australia." It subsequently appeared that a measure was necessary to legalise the unauthorised expenditure, which amounted to £25,375, of the late Governor. Such provision was made in the Legislative Council in May, 1862, when Governor Hampton quietly explained that £6,000 had been appropriated for these works beyond the amount provided for in the estimates. He therefore abstained from entering into several new contracts for the year 1862 unless for absolutely necessary repairs. It was his desire, and that of others, to establish a public works department in the Civil Establishment, but he regretfully found that it was impossible.

Dissatisfaction was frequently expressed in the newspapers concerning what was termed the "disgraceful condition" of the streets and footpaths of Perth. The methods upon which this class of work was conducted were incomprehensible. Metalling was only done when absolutely necessary, and then as a sort of "temporary makeshift." By patching here and there the civic works were made exceedingly costly, whereas had the authorities in 1850-62, and since, straightforwardly completed the metalling of one roadway, and then gone on to another, as money came in, hundreds of pounds and abundant complaints would have been saved. It has been said that for every £10 worth of metal used in patching and filling up holes, the sum of £50 has been paid in labour and salaries. Under the regime of Governor Hampton, considerable improvement works were negotiated. The road from Fremantle to Perth, begun in 1851, and dillydallied with year after year, was finished; the thoroughfare to Mount Eliza was metalled; the Swan River wall was built; the roads to Guildford, the main streets of Perth and country roadways were vastly improved, and several important bridges and public buildings were completed or projected.

In 1863, when the Governor had surmounted the onus of debt left him by Governor Kennedy, strong parties were appropriated to Perth and suburbs, ninety men were stationed on the North Fremantle road, excavations for the site of the North Fremantle bridge were hurried forward, a bridge and court house at Geraldton were finished, and road parties throughout the colony were increased. A bridge completed by contract at Newcastle, in 1861, at a cost of £1,100, was seriously damaged by floods in 1862; Governor Hampton caused the re-building to be undertaken by convict labour in 1863 for £110, whereas by contract it must have cost over £500. Under similar arrangements, the Northam bridge, damaged on the same occasion, was re-built at a trifling cost. The plans for Government House were found to be very unsuitable, and Governor Hampton caused extensive alterations to be made in 1863, before the structure was finished in 1864. One report says that there was not a room of any size in the building until Governor Hampton ordered the partitions dividing the drawing and dining rooms from smaller rooms attached to each to be torn down, thus constructing two rooms of tolerable dimensions. Three or four rooms were cleared away to make the ballroom. The private secretary's office was apparently projected so that the unfortunate occupant should have neither light nor air. In short, climatic conditions and comfort were not considered by the original architects of this edifice. A marine summer residence for the Governor was erected at Rottnest, and another at Fremantle.

It was announced in 1862 that barracks for pensioners would be built on the declivity of Mount Eliza. This work was put in hand in 1863, and when completed contained 120 rooms; attached to it were a military hospital, magazine, cooking and