Hudson's Bay House
                     
                  
               8 November 1861
                
            
            
               I have the honour to acknowledge the receipt of a letter addressed to
               me by 
Mr Elliot, under date the 
5th instant, enclosing a Copy of a
               despatch from the Governor of 
Vancouver's Island, and a report of the
               proceedings which took place before the Supreme Court of the Colony
               upon an application made on behalf of the local Government for an
               injunction to restrain the Hudson's Bay Company from selling portions
               of the 3084 acres of land claimed by them under a
possessory
 possessory title
               prior to the Crown Grant of the Island to the Company.
               
               Mr Elliot after remarking that the injunction was refused on the
               ground that the subject matter of the suit in litigation was before
               the Judicial Committee of the Privy Council, whose decision will
               ultimately dispose of the question, adds that as some-time must
               elapse before that decision can be obtained, and as there are evils
               pointed out in the Governor's letter which demand a more prompt
               remedy, Your Grace is desirous to know whether the Company will at
               once send out instructions to their Officers to desist from any
               further dealings with the lands in dispute
until
 until the question of
               title be settled.
               
 
            
            
               In reply I beg to inform Your Grace that we have already issued
               directions to the Company's Officers in 
Vancouver's Island to suspend
               the sale of those lands.  On the 
23rd May last to 
Sir Frederic Rogers,
               in allusion to a water frontage which was to have been sold, but
               which 
Governor Douglas claimed as a public landing place, addressed
               me a letter of which the following is an Extract.
               
               I am directed by the 
Duke of Newcastle to inform you that unless you
               can assure His Grace that instructions will be sent to the Agent of
               the Company, by the most rapid opportunity, to suspend the sales of
               the land in question, the
Governor
 Governor will be instructed to issue a
               notice in the Colony that Her Majesty's Government deny the right of
               the Company to sell those lands.
               
               On the following day—the 
24th May—I replied:
               
               I hasten to inform Your Grace that in compliance with the suggestion
               thrown out in to 
Sir Frederic Rogers' letter I have directed that
               specific instructions shall be sent by this day's Post to the Agent
               of this Company at 
Victoria to suspend the sales of the land in
               question as referred to in the correspondence between 
Governor
                  Douglas and 
Mr Dallas.
               
               
               On the 
25th May a Copy of the correspondence was transmitted to
Mr Mr
                  Mactavish
 Mr
                  Mactavish now the Company's principal Agent at 
Victoria with distinct
               instructions to suspend the sale of the Company's lands till the
               questions between Her Majesty's Government and the Company were
               decided.  And in acknowledging the receipt of that letter, under date
               the 
14th July, 
Mr Mactavish says:
               
               In accordance with your instructions we shall sell no portion of the
               3084 acres of land on this Island until further instructed.
               
               
               Your Grace will thus observe that as far as the Company is concerned
               the most distinct instructions were given for the carrying out of
your
               your Grace's wishes in the matter.  And I have no reason to believe
               that those instructions have in any single case been departed from by
               our Officers, inasmuch as we have no knowledge of any Sales of Land
               having taken place subsequent to that period.  In order, however, to
               satisfy Your Grace, a copy of the present correspondence will be
               transmitted by the first post and attention will be again drawn to
               the instructions already given.
               
               There are several other points alluded to by 
Mr Elliot on which I
               would request Your Grace to suspend your judgment until the arrival
               of 
Mr Dallas who is shortly
expected
 expected from Edinburgh, and was the
               Company's principal representative at 
Victoria at the period of the
               transactions in question.  I allude particularly to the alleged sale
               by the Company of the Park reserved for the Public at 
Victoria, of the
               Springs which supply the Colonists with Water, and of the Ornamental
               Trees in the neighbourhood of the Town—the real nature of which
               transactions 
Mr Dallas will, I believe, be able to explain to the
               satisfaction of Your Grace. 
Mr Dallas is expected to arrive here
               about the end of next week and as soon afterwards as possible I shall
               have the honour of addressing Your Grace on this subject as well as
               upon the proposal as to the
assent
 assent of the Governor being given, in
               writing, previous to the sale of any particular portion of the land
               in question.
               
               Minutes by CO staff
               
                
                  
                  
                     Mr Elliot
                     There has been a misunderstanding in this matter, but it appears to
                     be the fault of the Company & their Agent that it has arisen.
                     
 
                  
                  
                     The letter from this 
Dt of 
23rd May last (which is here quoted)
                     had reference solely to the piece of land forming part of the

 water
                     frontage of 
Victoria, and it was naturally concluded both by this
                     Department & the Land Board that the instructions to the Agent in the
                     Colony to suspend sales of "the land in question" referred to the
                     water frontage only & not to the 3084 acres of which it forms a part.
                     
                     It now appears however that the instructions were intended to apply
                     to the whole of the 3084 acres & have been so regarded by the Coy's
                     agent in his acknowledgment of them dated 24th July last.
                     
                  
                  
                     The Agent (either purposely or because he concluded the 
Govr had
                     received similar instructions) did not communicate his orders to the
                     Governor, who being therefore in ignorance of what had been done

 has
                     made the application contained in his despatch of 8 Aug
t.
                     
                     Had the company given a more precise description in their letter of
                     24th May of the scope of their orders than that they extended to the
                     Land
                     in question, or had the agent communicated with the Governor,
                     the mistake wd not have occurred.
                     
                  
                  
                     It will probably be thought right now in reply to the Company to
                     point out how the misapprehension of the nature of their previous
                     instructions arose, expressing satisfaction at what has been done,
                     and adding that the 
Duke of Newcastle will be happy to receive from 
Mr Dallas the explanation which he is able to give about the Park,
                     Public Springs &c.
                     
                     Write also to the Governor to explain the circes.
                     
                  
                  
                   
                  
                  
                     I quite agree.  I should make the answer very civil and should begin
                     by expressing regret that a misapprehension had arisen and should
                     then proceed to point out it's origin.
                     
                  
                  
                  
                  
                  
                     Yes—but I would explain very briefly that the Sec. of State & the
                     Govr had not understood that the Co's Instructions to suspend the
                     sale of Land extended beyond the Water frontages immediately in
                     question, & included the whole of the unsold portion of the Lands
                     claimed by the Co under a title prior to the grant of the Island,
                     which H[is] G[race] is happy to learn was the case.
                     
                  
                  
                     Sir F. Rogers should see this—in relation to the proceedings before
                     the Judicial Committee.
                     
 
                  
                  
                   
               
               
                
            
            
               Other documents included in the file
               
                
                  
                  
                     Fortescue to 
Berens, 
4 December 1861, explaining how the
                     misunderstanding in respect to the instructions had arisen, and
                     expressing satisfaction with their actual effect.