January 14th 1852
               
               My Lord
                
            
            
            
            
            
            
               To the allegations contained in these documents I shall, after
               adverting to the different subjects alluded to in 
Mr Peel's
               letter, make such replies as will, I trust, satisfy your
               Lordship that you have little cause for uneasiness as far as
               those allegations are concerned.
               
               For facility of reference the paragraphs are numbered so as to
               correspond with those of 
Mr Peel's letter.
               
               2. That the colonization of 
Vancouver's Island has made so
               little progress is, I beg to assure your Lordship, as deeply
               regretted by the Directors of the Hudson's Bay Company as it can
               be by Her Majesty's Government, but they cannot accuse

               themselves of having omitted to use every effort in their power
               for the colonization and improvement of 
the Island, which it is
               not less their interest than their duty to promote. They have
               had to encounter difficulties equally beyond their control and
               that of the Government. The derangement of the ordinary course
               of events occasioned by the state of things in California has
               been a discouragement to persons who might otherwise have
               desired to settle at 
Vancouvers Island, as it was evident that
               there could be no confidence placed on hired labourers
               fulfilling their engagement. This also operated as an
               obstruction to the intentions of the Hudson's Bay Company to
               establish cultivation sufficient to secure food for new settlers
               on their arrival. They have been obliged to import at high
               prices flour and other provisions for their own establishment,
               and for the support of the large number of agricultural
               labourers which they and the Puget Sound Company have sent

 from
               this country to commence cultivation in order to test the
               capability of 
the Island and encourage its settlement. The
               result of this measure has yet to be ascertained, though they
               trust it may be successful. It is the intention of both the
               Puget Sound Company and the Hudson's Bay Company to settle their
               retiring servants on small lots of land in all cases where they
               have acted with fidelity and industry, and thus gradually form
               villages of small settlers and independent labourers.
               
               Mr Peel states "that your Lordship hopes that with a view both
               to the interest of the Company itself and that of the settlers
               that more efficient measures may be taken for its improvement
               than appears hitherto to have been the case." I am not aware to
               what measures your Lordship alludes, and I can only assure you
               that the Directors of the Company would give their best
               consideration to any measures which you may be pleased to
               suggest.
               
 
            
            
            
               3. On the subject of the public works to be undertaken on 
the
                  Island
 referred to in the third paragraph of 
Mr Peel's letter I
               beg to observe, that in answering 
Mr Merivale's letter of the
               
3rd September, the omission to express in direct terms my
               concurrence in the views therein expressed, did not arise from
               any intention or wish to dispute the right of Her Majesty's
               Government to exercise control over such works.
               
               Mr Peel's remark that I stated that the Governor and Council
               did approve of certain works of the above description is not
               quite correct. On reference to my letter of the 
10 September
               I find I said "it was left almost entirely to the Governor and
               his Council to select both the sites and the works to be erected
               on them", but first obtaining the sanction of the Hudson's Bay
               Company.
               [Marginal note. "I do not see much difference."]
               I may observe that it is not intended to make an
               expenditure on public works beyond the Trust fund that may arise
               from Sales of land &c, but if it should hereafter appear
               expedient to do so your Lordship's approbation will be
               previously applied for.
               
 
            
             
            
            
            
               4. With respect to the reserves of land concerning which your
               Lordship wishes for more particular information, I have to
               state that by the last mail 
Mr Pemberton, the Colony Surveyor,
               has sent home surveys of the lands which the Fur Trade of the
               Hudson's Bay Company propose to take, but has omitted to
               distinguish that which they possessed previous to the Boundary
               Treaty from the whole quantity. The former will be made over to
               them without purchase, and, for any addition thereto they will
               have to pay 20/- an acre as all other Settlers do.
               
               He has likewise sent a survey of the Puget Sound Company's allotment.
               Any part of these allotments may be taken for Government
               purposes at the cost price, but it would be convenient that the
               wishes of Government should be intimated, that costly
               improvements may not be made, nor buildings erected on such
               portions.
               
            
            
            
               With regard to a duty on imports which your Lordship seems to
               think can not be imposed but by

 the Legislative Assembly, I can
               only say that I have no recollection of any understanding to
               that effect. My view is that as the formation of the
               Legislative Assembly is prospective, the Colony may in the
               meantime be considered as not possessing such an Institution,
               and that the parts of the constitution already formed may
               perform the functions of the whole until a complete developement
               has taken place. The duty to be levied would principally fall
               upon the Hudson's Bay Company's Fur trade, as the importation of
               goods for their inland Fur posts by 
Fraser's River, and the
               supply of their posts in the 
Gulf of Georgia, will be more than
               9/10
ths of the whole.
               
               6. I have already stated to your Lordship that the Hudson's Bay
               Company neither claim nor exercise any monopoly whatever in
               
Vancouvers' Island. But it appears to have been represented to
               your Lordship that the Company exercise a

 virtual monopoly with
               respect to Settlers and visitors. The only visitors to 
the
                  Island hitherto, as far as I know, are Her Majestys' ships of War
               which have received supplies of provisions from the Company's
               stores. The prices charged for these supplies have been
               complained of as too high, and in order to ascertain whether
               they are so or not, I some time ago applied to the Lords
               Commissioners of the Admiralty for information as to the rate of
               charge, which I regret to say I have not succeeded in obtaining.
               I must therefore content myself with stating that there have
               been unprecedented fluctuations in the provision market on the
               North West Coast of America of late, and that the Company
               imported provisions for their establishments from the 
Sandwich
                  Islands at very high prices.
               
               I am not aware that any indirect means have been resorted to for
               establishing a monopoly by refusing ground for building sites in
               suitable places, to Traders who

 might compete with the Company,
               or that any facilities for trading have been denied such
               persons. Such proceedings on the part of the Companys Agent
               would, I beg to assure you, meet with the marked displeasure of
               the Directors of the Company. The Company have afforded the
               facility of importing goods in their Ships, and some of the
               Settlers have availed themselves of this privilege.
               
               7. California will I trust in time afford an advantageous
               market for the productions of 
Vancouver's Island, and thus
               exercise a favourable influence in the Settlement of the Colony.
               At present however the unsteadiness of that market holds out but
               little encouragement to the Agriculturist. Wheat, which some
               time ago was selling in 
Oregon at 7/- per bushel had fallen by
               late accounts to 3'/1 1/2
d.
               
               Should Mining operations succeed in 
Vancouvers Island, Coal will
               find a sure and ready market. As yet however none but surface
               coal has been discovered.
               
               I shall now offer a few remarks on 
Admiral Moresby's

 letter and
               the enclosures therein.
               
               It is gratifying to me to find that 
Admiral Moresby bears
               testimony to the high character of 
Mr Douglas. In confiding
               the direction of their affairs to such a man the Company feel
               assured that they have adopted the best means in their power for
               preventing such abuses as those alleged in the Admirals Report
               to the Lords Commissioners of the Admiralty.
               
               Whether the opinion stated by the Admiral in a former Despatch
               and here repeated "that the attempt to colonize 
Vancouver's
                  Island by a Company with exclusive rights of trade is
               incompatible with the free and liberal reception of an emigrant
               community" be correct or not I will not take upon me to say. I
               can only repeat that it is not applicable to the case of
               
Vancouvers Island inasmuch as the Hudson's Bay Company neither
               claim nor exercise such right in 
that Island.
               
               Par 3 & 4.
               
            
            
            
               The farm let to 
Mr Langford by the
               Puget Sound Company contains

 600 acres, and the Hudsons Bay
               Company have placed a Bailiff on a small farm of 60 acres, who
               is paid by salary.
               
               On the terms on which the Puget Sound Company have let their
               land to 
Mr Langford I do not think it necessary to make any
               other remark than this, that they are much more favourable to
               the tenant than those stated by 
Admiral Moresby, favourable as
               the latter must be considered to be.
               
               Par 5.
               
            
            
            
               The Company have as yet received no distinct information
               respecting the Sale of the two building lots mentioned in this
               paragraph, but they have reason to believe that they are on land
               which forms a part of the allotment for the Fur trade, neither
               have they any information of a misunderstanding with the Indians
               caused by 
Padre Lampfrit [Lempfrit] the missionary.
               
Mr Blanshard was reimbursed by the Company for the expence he
               incurred in building his cottage.
               
               Par 6.
               
            
            
            
               It was hardly to be expected that two ships of War coming
               unexpectedly

 at the same time could procure sufficient supplies
               of provisions from the Company's stores, which are provided
               solely with a view to their own requirements. The charge for
               grass and mutton seems high, and will be enquired into. With
               regard to the latter article it is to be borne in mind that the
               traffic between 
Vancouver's Island and 
Nisqually, from which
               cattle and sheep are brought, was stopped by the United States
               Custom House authorities in 
Oregon, the natural consequence of
               which would be to enhance the price at 
Fort Victoria. So many
               of the Company's servants had deserted in consequence of the
               gold digging temptation, that 
Mr Douglas had difficulty in carrying on the
               ordinary business of the trade, and could not spare labour for
               the cultivation of either gardens or fields.
               
               Par 8.
               
            
            
            
               The Statement in the 8
th paragraph of
               the Admirals letter is a revival, with additions, of the story
               which I had occasion to notice and, as I had hoped, to set at
               rest, in a former communication, but as it has been

               reproduced by 
Admiral Moresby I shall bestow a few remarks upon
               the present version of it.
               
               It has been the uniform policy of the Hudson's Bay Company never
               to suffer the blood of a white man to be shed by a savage with
               impunity. This policy is well understood by the tribes who
               inhabit the regions under the control of the Company, and it is
               not too much to say that it has saved many a life that would
               otherwise have been sacrificed. There is therefore a very
               strong antecedent improbability that any officer of the Company,—were
               it only for his own sake—would offer a premium for the
               murder of white men. But the testimony of 
Mr Beardmore
                  [Beardsmore] is conclusive on this point, and the more so
               because he is known not to be well affected towards the Company.
               When examined by 
Admiral Moresby he says expressly that a reward
               (and to Indians no small reward)
               was offered for the apprehension of the murderers, and that no
               reward was offered for the deserters. The charge of offering

               a reward for the heads of the Seamen may now, I think, be
               considered as finally disposed of.
               
               But a similar charge in regard to the 
Muirs is now, for the
               first time, brought foward as the hearsay evidence of one of
               them. 
Andrew Muir, the Admiral's informant, was the ringleader
               of a mutiny at 
Fort Rupert, and a deserter.
               
               It is also worthy of remark that this man omitted to mention the
               offer of a reward for his head when he submitted to 
Governor
                  Blanshard his complaints of the bad treatment he had received
               from the Hudson's Bay Company. Nor is it probable that if such
               a reward had been offered the Governor who reported to your
               Lordship the rumour respecting the murder of the Seamen would
               have left this to be reported by 
Admiral Moresby twelve months
               after the transaction to which it refers is said to have taken place.
               
               Par 10.
               
            
            
            
               The Title deeds have been delayed for
               want of surveys. The Surveyor first sent out having failed

               to fulfil his engagements, it was found necessary to send out
               another, and much time was consequently lost. Terms of Deeds
               have been transmitted to the Company's agent, to be filled up as
               soon as the boundaries of the allotted lands shall have been
               fixed by the new Surveyor. When these Deeds, which are supposed
               to be on their way to England, arrive, they will be executed
               here and returned to the Colonists by the first opportunity.
               
               Par 11.
               
            
            
            
               The people hitherto sent out have been
               hired Servants, a portion of whom have been married men; but in
               this matter the Company must be guided by circumstances, as the
               limited means of feeding the people, until cultivation to some
               extent could be established, rendered it inexpedient to send out
               men with large families.
               
            
            
            
               Par 12.
               
            
            
            
               On the subject of protection referred
               to in the correspondence between 
Mr Blanshard and 
Mr Douglas
               attached to the Admiral's Report, I had the honor of stating to
               your Lordship in my letter of the 
28th February last that I did
               not

 consider a Military force necessary. I have seen no reason
               to alter that opinion, but on the contrary am confirmed in it by
               
Mr Douglas's letter to 
Mr Blanshard of the 
3rd July 1851. I
               quite agree with him that the appointment of local Magistrates
               is all that is necessary. When I read 
Mr Blanshard's letter of
               the 
2d July 1851 to 
Mr Douglas I was not a little surprised,
               as 
Mr Douglas always discountenanced a Military force, and had
               lived on 
the Island for years with only a few white men; but how
               
Mr Blanshard could have stated the substance of 
Mr Douglas's
               conversation as implying the necessity of a military force is
               quite incomprehensible. That it was a misapprehension on his
               part is evident from 
Mr Douglas's answer.
               
               Par: 12
               
            
            
            
               The Servants of the company are
               engaged on contracts for five years; the wages of labourers are
               17 per annum; they are lodged, fed, supplied with implements,
               and conveyed out and home at the Company's expence. They almost
               all remit money to their families during their contracts, and
               very many of them, when they quit the Service, have considerable

               balances to receive. Salmon and Pork, with Beef and Mutton
               occasionally, constitute their foods. The English labourers are
               chiefly from Dorsetshire. Now the wages of a Dorsetshire
               labourer have not for some years averaged more than 7/6 per
               week, out of which he has to find every thing for himself and
               his family, when he has one. It hardly need be enquired how
               much fresh meat, or animal food of any kind, can possibly be
               procured with such wages, or whether the labourer is better off
               in 
Vancouver's Island or at home. But the Company, like all
               other employers of labourers, have a right to hire them at as
               low wages as they may be willing to engage for. They find no
               difficulty in procuring men for those wages in Orkney, from
               whence they have for many years obtained them, and where the
               nature of the service is perfectly known. The wages o. 17 are
               for the first term of engagement, and afterwards, on a renewal
               of their engagements, the men get increased wages according to
               their industry and usefulness. Almost all

 the European servants
               save money in the service besides remitting money to their families.
               
               Admiral Moresbys informant is mistaken in saying that only
               Canadians and Indians have till lately been employed by the
               Company. A large proportion of their servants are from the
               Western Isles of Scotland and the Orkneys. Englishmen were
               engaged solely from a belief that having been more exclusively
               occupied in Agricultural labour than the Islanders, they might
               be very useful in a new Colony.
               
 
            
            
            
               With respect to the quality of the Pork supplied to the
               Servants, I can only say that it was the best that could be
               procured, and cost a very high price.
               
            
            
            
               The informant states that the price of an article is withheld,
               or some punishment inflicted upon the men for asking it, that
               nothing under half a dollar is allowed to be purchased by the
               men, that a little thread is charged half a dollar, a button or
               two the same. Now I find upon examining the mens accounts that
               the charges against them are composed of a variety of articles,
               small in quantity, and many charges

 of 3
d, 4
d, 5
d & 6
d,
               in short like small shop accounts in any other part of the world.
               
               In the Admiral's Report of the conversation he had with 
Mr
                  Beardmore, I observe he says the men were deceived by the
               Hudson's Bay Company—that no man in his right senses would come
               from England to suffer what these men have got to suffer, it was
               worse than transportation, &c &c.
               
               Admiral Moresby might have seen that 
Mr Beardmore had left the
               Company's service a discontented man, and should have therefore
               been on his guard against receiving his opinions and statements
               as correct representations of the real state of things. Some of
               the men stated to have been deceived and to have been subjected
               to treatment worse than transportation—men from Kent—came home
               in one of the Company's vessels in place of seamen who had
               deserted, it being impossible to procure other seamen at the
               time. Now those very men had been but a few months at home when
               they volunteered to resume their places in the Company's service,

               and they did so. They returned to 
Vancouver's Island by the
               next ship. I may also mention that the Company have had
               applications from the friends of the Englishmen who are now in
               
Vancouver's Island to be taken into their Service—and this in
               consequence of the statements sent home from thence.
               
 
            
            
            
               One man writes thus from Cumberland—"I had a letter from an
               uncle that went out on the first of 
November 1850, and he wants
               me to go out as soon as ever I can for the same place, and he
               went by your Company, his name was 
Wm Aikenson, he requested me to write up to you directly. Please write back as soon as you can,
               and let me know how the emigrators rules or conditions are."
               
               Another says "I have received a letter from my sons 
James and
               
Charles and 
Robert Fish now in your employ in 
Vancouvers Island,
               and they give me a very satisfactory account of the place. they
               never regret leaving their home but say they are very happy and
               comfortable."
               
               From the person who engaged

 the Dorsetshire men for the Company
               the following letter was received in 
October last, "I write
               these few lines to enquire if you want any hands this fall for
               
Vancouver, as I have applicants every day and I cannot give them
               an answer until, Sir, I hear from you; if you want any please to
               let me know as I think I can get them for you, married or
               single". and in another letter he says "their friends (the
               friends of the men sent out to 
Vancouver's Island) have brought
               me their letters for me to read, and they all give it an
               excellent character, plenty of every thing."
               
               Permit me in concluding this letter to assure your Lordship that
               the Directors of the Hudson's Bay Company have no more earnest
               wish than to see the Settlers prosperous whether engaged in
               trade, agriculture, or any other branch of industry.
               
            
            
               I have the honour to be
               
               My Lord
               
               Your Lordships most obed
t humble Servant
               
               
J.H. Pelly
               
               
               Minutes by CO staff
               
               
               
               
               
                  
                  
                     Mr Peel
                     1. On the question of public works, it seems to me this letter
                     is satisfactory as far as it goes, & that with the caution
                     already conveyed to the H.B.C. there is no necessity for farther
                     remarks at present.
                     
 
                  
                  
                  
                     2. As to the import duties the case remains where it was. 
Sir J.
                        Pelly thinks that where there can be no representative Council there
                     arises 
ex necessitate a right to tax in the existing authorities.
                     It would be a convenient doctrine, and I am not prepared to say the
                     tribunals would not uphold it, but I do not know that such a point has
                     ever been decided.
                     
                     3. The rest of the letter consists of special contradictions or
                     modifications of 
Adm. Moresby's statements.
                     
                     See the new Governor's recent report, 484.
                     
                  
                  
                   
               
               
               
                  
                  
                     There are some parts of this letter that I do not
                     understand—especially the passage x

x in which 
Sir J.P. adverts to
                     what had been said as to the appropriat
n of land by the
                     Company. I 
shd be glad of any explanat
n of this which can be
                     given. This & the quest
n respect
g the imposit
n of duties as
                     to which the company has not succeeded in remov
g the doubts I
                     entertain as to whether such duties can lawfully be imposed
                     without the authority either of an elected Ass
bly or of
                     Parl
t—seem to be the only points requir
g to be further
                     noticed except by a general expression of satisfact
n with wh I
                     have received the assurances of the Company as [to] the
                     principles on which they have acted.
                     
 
                
            
            
               Other documents included in the file
               
                
                  
                  
                     Draft, Colonial Office to 
Pelly, 
2 February 1852, expressing
                     satisfaction with the company's assurances, but asking for further
                     explanation about the company's fur trade lands and proposed import
                     duties.
                     
 
            
            
               
                  People in this document
                  
                        Aikenson,   William
                        
                  
                        Beardmore, Owen Charles 
                        
                  
                        Blanshard, Governor Richard
                        
                  
                        Douglas, Sir James
                  
                        Fish,  Charles
                        
                  
                        Fish,  James
                        
                  
                        Fish,  Robert
                        
                  
                        Grey, Right Honorable, Second Baronet, Sir George
                        
                  
                        Grey, Third Earl,  Henry George 
                  Jadis, Vane
                  Langford, Edward Edwards
                  Lempfrit, Father Honoré Timothée
                  Merivale, Herman
                  
                        Moresby, Sir Fairfax
                        
                  
                        Muir, Andrew
                        
                  
                        Peel, Sir Frederick
                        
                  
                        Pelly, Sir John Henry
                        
                  Pemberton, Joseph Despard
                  
                        Vancouver, Captain  George
                        
                
               
                  Places in this document
                  Fort Rupert, or T'sakis
                  Fraser River
                  Hawaiʻian Islands
                  London
                  Nisqually, or Fort Nisqually
                  Oregon Territory, or Columbia District
                  Strait of Georgia
                  Vancouver Island
                  Victoria