This paper points out basic traits of practically autocratic governance of ban Károly Khuen-Héderváry (1883. – 1903.) with emphasis on the initial period of his mandate which was striving for consolidation of power in riots stricken Kingdom of Croatia, Slavonia and Dalmatia. Executor of will of the Hungarian government, without any comprehension of the importance and significance of the Croatian-Hungarian Settlement sistematically violates this Croatian constitution. A short display of laws implemented in the weak Sabor clearly demonstrates illegal ways made possible for a large number of Serbian representatives to get there. Ban skilfully used the political-ideological conflict between Croatian majority and Serbian minority to originate conflict among inhomogeneous population in the moment when united Croatia should have undertaken a path of social and economic growth. After the integration of the civil part of Croatia with the Military Frontier in 1881. Serbs became an important factor in Croatian parlamentary life and secured absolute majority in the Diet until bans resignation. The colision of Croatian settlement autonomy and Serbian church and school autonomy deforms the image of the Diet and the Croatian government as they have become only pawns in the politics of perservation of dualism of the Austro-Hungarian Empire. Ban didn't cooperate like that with the opposition. He heartily disabled its work in many ways – by remodeling the election communities, with implementation of the new more strict Standing Orders of the Diet which violated freedom of speech, by regular confiscations of oppositional press, its writers and editors being severely punished each time, both with fines and prison sentences. It all clearly shows the caracter of governance of emperor's confidant, inveterate supporter and representative of dualism of the Austro-Hungarian Empire in Croatia and one of the most important Hungarian political figures of the time, count Károly Khuen-Héderváry.