Berens to Newcastle
Hudsons Bay House,
18 September 1862
I have the honour to acknowledge the receipt of Mr Elliots letter of the 11th instant, in which it is proposed on the part of your Grace that the difference between the sum demanded by the Hudsons Bay Company in respect to the settlement of their outlays in Vancouver's Island and that offered byHerManuscript image Her Majestys Government being £5,000 that that difference should be divided and the sum payable to the Company be thus raised from £30,000 to £32,500.
In reply I beg to state that although in conjunction with my colleagues in the Direction of this Company I still adhere to the justice of the claim originally advanced by this Company I am prepared on their behalf and my own to agree to the compromise suggested by your Grace in order to bring the affair at once to an amicable settlement.
I have the honor to be,
My Lord Duke,
Your Grace's most obedient
humble Servant,
H.H. Berens
Minutes by CO staff
Manuscript image
Mr Elliot
1 Recommend the Treasury to make this payment—to which they have assented by anticipation. 2 Inform Mr Berens of the request made to the Treasury. 3 I do not know that it is absolutely necessary, but it might perhaps be a prudent precaution to obtain either from or through Mr Walcott some carefully prepared rect for the Co to sign.
ABd 22 S
Manuscript image
On the receipt of this letter, I consulted with Sir F. Rogers on the third point above thrown out by Mr Blackwood. We did not think that any special receipt at the Land Board was called for. The Treasury will of course take a receipt for the money when they pay it, with a brief description of the purpose for which it is paid. The words employed in our letter to the Treasury will probably be used by them for this purpose.
But Sir F. Rogers thought that before asking for the issue of the money, we had better ascertain from Mr Murdoch that there were not any acts on the part of the Company which ought to be done simultaneously. Mr Murdoch has answered in the negative.
I have therefore prepared the requisite drafts to the Treasury and the Company, and have ventured to despatch the letters at once, as I feel sure that theDukeManuscript image Duke of Newcastle would wish, that after agreeing to the compromise, they should have no reason to complain of delay in getting their money. A draft to the Governor is annexed.
TFE 27 Septr
Quite right.
N 29
Other documents included in the file
Manuscript image
24 September 1862
My dear Elliot
I am clear that you need not take any special receipt from the H.B.Co but the Treasury by whom I suppose the payment will be made, will of course require a receipt which will contain some general statement of the object of the payment. At least that is my impression of their practice. But after so long a debate I quite agree with you that the payment shouldManuscript image be made at once. Of course a deed of reconveyance of Vancouvers Island will here be necessary, and a question may arise as to the expense of the deed. But I should imagine there can be no doubt that as both the original grant and the reconveyance were made on public grounds the expenses must be borne by the public.
Ever yours sincerely
T.W.C. Murdoch
Manuscript image [P.S.] Would you let your Messenger take the enclosed Papers to Park Street the first time he goes there.

Minutes by CO staff
[Minute on above:]
[Keep?] this with Mr. Berens' letter, 9392 Vancouvers Island.
Manuscript image
Elliot to Frederick Peel, 26 September 1862, forwarding copy of the acceptance of the Hudson's Bay Company and asking that the Paymaster General be instructed to advance the agreed upon sum as soon as possible.
Manuscript image
Elliot to Berens, 26 September 1862, advising that the Treasury had been asked to provide the payment without delay.
Manuscript image
Elliot to [blank], 1 October 1862, forwarding copy of a despatch which had been approved by Newcastle but which had not yet received his signature.
Minutes by CO staff
Manuscript image
Mr Pennell
Please enter this letter.
TFE 30/S
Other documents included in the file
Manuscript image
Draft reply, Newcastle to Douglas, No. 119, 1 October 1862, informing him that after protracted discussions, the government and the HBC have agreed that a payment of £32,500 will settle the company's claim for compensation for costs incurred while it was responsible for administering Vancouver Island.
Minutes by CO staff
In case the transaction is closed before the next mail, the last
sentence of this should be altered so as to say that the payment "has been" made, instead of being "about to be" made.
TFE 27/9