The Duke of Newcastle
                     VanCouver's Island was granted to the 
Hudson's Bay C on the
                     
13 Jan 1849.
                     The grant was made for the declared purpose of promoting the
                     colonization of 
the Island; & accordingly it is provided in the
                     Letters Patent conveying the grant that all monies realized by
                     the Company for the sale of Land or of Coal or other Minerals
                     should, after a deduction of 1/10 by way of profit to the
                     Company, be applied towards the colonization & improvement of
                     
the Island.

 
                     What the C have done in the way of Colonization
                     down to 
Nov 1852 the annexed P.P. (83) will
                     exhibit to Your Grace without the necessity of repetition.
                     Since that date a certain number of miners have been sent out to
                     the Colony, who are now employed in developing its mineral resources.
                     
                     
                     
1;2.
                      
                  
                  
                     Provision was made in the Grant that if the C should not
                     within 5 years from the date of the grant have established on
                     
the Island a settlement of resident Colonists,

 
                     emigrants from
                     the United Kingdom or other British Dominions, the Crown 
sh 
                     be at liberty to revoke the grant [marginal note: See P.P. 103,
                     P. 16]. But it was also declared that this failure on the part
                     of the Company must be ascertained by a person appointed for the
                     purpose by the Crown, and "certified". As the company have not
                     been formally charged with neglecting this requirement, & no
                     person has yet been appointed to enquire into the condition of
                     the Colony the inference is that they have not brought

                     themselves within the terms and penalty specified in the grant.
                     It is however certain that the five years expired on the 
13
                        Jan last, & that the Crown had then the power, if it chose to
                     exercise it, of instituting an enquiry into the state of the
                     Island to ascertain if all the conditions of the Grant had
                     been fulfilled.
                     
                     
                     
1;3.
                      
                  
                  
                     Land is sold in 
VanCouver's Island at £1 per acre under
                     regulations of the Company which the 
Gov have not the power of

                     interfering with. Those regulations require that purchasers of
                     Lands should introduce settlers. Lately the Company have agreed
                     to relax their rules on this subject and not to require
                     purchasers of so small a quantity of Land as 100 acres to
                     introduce Laborers. In answer to the comparison instituted by
                     persons opposed to the 
Hudson's Bay C between the system of
                     disposing of Land in 
V.C. Island & the adjoining possessions

 
                     of
                     the United States it is maintained that the effect of free
                     grants is to enhance the value of labor—that in 
Oregon, where
                     free grants are made, great complaints exist as to the high
                     price of Labor, and that the public is better off in that respect
                     in the British than in the United States' settlement.
                     
 
                  
                  
                     With reference to the charges of monopoly it is proper to
                     observe that the C do not really

 
                     exercise any monopoly
                     whatever within the limits of the Colony or it's dependencies,
                     Every branch of business being unreservedly free & open to all
                     parties who may choose to embark therein. It is true that the
                     H.B. C do nearly all the business, but that arises from their
                     having superior goods for sale, & their selling them at lower
                     prices than other Importers of English Merchandize, & not from
                     any exclusive privilege or protection enjoyed by

 
                     their Agents in
                     the Colony. Though the Company always affirm that trade in the
                     Island is practically free Your Grace is well aware that they
                     have the exclusive right of trading with the Indians
                     
in furs; but that the Crown has power to revoke that right whenever
                     any portion of the Territories over which the license to trade
                     extends becomes Settled. See last clause but one of the license
                     of 1838—P.P. 547, P 11.
                     
                     
                     
Council
                      
                  
                  
                     It has been alleged that the Council (which consists of 4
                     persons) is composed almost exclusively of the Servants of the
                     H.B.C. This is, no doubt, true: but the reason is that the
                     present population of the settlement is not possessed of
                     sufficient education to enable the Governor to make selections
                     out of any other class.

 
                     However one Member, a 
M Cooper, does
                     not belong to the Company's service.
                     
                     
                     
Establishment
                      
                  
                  
                     The Establishment consists of the Governor
                     
                     
                     4 Members of Council
                     
                     4 Magistrates
                     
                     1 Surveyor
                     
                     A Collector of Customs
                     
                     A Clergyman (though there is no Church yet built,
                     one is in Contemplation)
                     
                     and a Schoolmaster
                     
                     
                     
                  
                  
                     The last grant to the 
Hudson's Bay Company
 
                     of the Exclusive
                     trade with the Indians in B.N.A. was made on the 
30 of May 1838
                     for a period of 21 years. The license consequently expires on
                     the 
30 May, 1859, when the 
Gov may repurchase the land on
                     repayment of the sums expended by the Company & the value of
                     their Establishments.