That the efforts of the
Hudsons Bay Company towards the
colonization of
the Island have not been attended with the success which
some at first expected is to the Company a subject of much regret;
allowance however ought to be made for the adverse circumstances with
which they have had to contend.
I
I allude more particularly to the
irresistible attraction which Calefornia at present possesses for
emigrants. That the vast crowds however, who are flocking to that
quarter will eventually be highly beneficial to
Vancouvers Island in
creating a demand for its productions and consequently making it a
desirable field for Emigration, I cannot for a moment doubt.
The Governor, I perceive, has fallen into a mistake with regard to
the
Puget Sound Agricultural Company. That Company, though its shares
are held by persons more or less connected with the
Hudsons Bay Company,
is a distinct and seperate Association, having a Capital of its own, and
its possessory rights are

recognized by the Treaty of 1846 between Great Britain and the United States.
With respect to the Coal, Everything has been done that could be
done. Experienced Miners have been sent out and are now employed in the
operations necessary for reaching a workable seam of Coal, the surface
coal having been exhausted; and by the latest accounts they were
sanguine as to the result of their labours. The Company are now sending
out a Steam Engine for the Mine.
I have the honour to be
My Lord,
Your Lordships most obedient
humble Servant
J H Pelly