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
               
               
               Minutes by CO staff
               
                
                  
                  
                     Mr Merivale.
                     
                     In acknowledging 
the Governor's despatch it will be as well perhaps to
                     explain to him the real position of the Puget Sound Agricultural Company
                     as regards the Hudson's Bay Company.
 
                  
                  
                  
                   
            
            
               
                  People in this document
                  
                        Blackwood, Arthur Johnstone
                  
                        Blanshard, Governor Richard
                        
                  
                        Grey, Right Honorable, Second Baronet, Sir George
                        
                  
                        Grey, Third Earl,  Henry George 
                  
                        Hawes, Benjamin
                  Merivale, Herman
                  
                        Pelly, Sir John Henry
                        
                
               
                  Places in this document
                  London
                  Vancouver Island