No. 10
               
            
            
               27 February 1862
               
            
            
               I have had the honor to receive Your Grace's Despatch N
o 79 of the
               
4h December last conveying for my information copy of correspondence
               with the Hudson's Bay Company arising out of the application
made
 made by
               this Government to the Supreme Court of the Colony for an injunction
               to restrain the Company from further independent action in the
               disposal of land, their claim to which was disputed by Her Majesty's
               Government, and from the sale of portions of the Park, Church
               Reserves, Public Streets &
ca.
               
               2.  I observe that the instructions given in 
May last to the
               Company's Agent in 
Vancouver's Island were not confined to a certain
               portion of the water
Frontage
 Frontage, as I had previously supposed from the
               perusal of 
Mr Beren's letter to Your Grace, but were intended to
               apply to the whole of the 3084 Acres claimed by the Company under a
               title anterior to and irrespective of the Charter of Grant.
               
               3.  While those instructions are in our respect perfectly
               satisfactory, as evincing the desire of the Hudsons Bay C
o
               voluntarily to put a stop to the acts complained of by this
               Government,
they
 they nevertheless have the practical effect of retarding
               the progress and settlement of the Colony, and if accepted, of
               relieving the Hudson's Bay Company from the onus thereof, inasmuch as
               most of the land still in the hands of the Company is capable of
               being immediately utilized, and would find ready purchasers if
               offered for Sale at public Auction; some, indeed, is in the best
               business portion of the Town, and just now is eagerly sought after.
               
               4.  The present is a critical
period
 period for this Colony.  Every Steamer
               brings intelligence confirmatory of the expectation that a large
               emigration will flow from California during the Spring.  Indeed
               business men from that State are already flocking hither to form
               Establishments, and land is consequently much in demand.
               
               5.  Some time, I presume, must yet elapse before the decision of the
               Judicial Committee of the Privy Council can be obtained as to the
               ownership
of
 of the disputed 3084 Acres.  Appeal to the Supreme Court of
               the Colony is precluded, that Court having already refused to
               interfere, on the ground that the case of dispute is at present
               before a Superior Court.  In the mean time it is highly desirable and
               necessary to prevent, as far as possible, injury to the progress of
               the Colony.  I would therefore earnestly beg Your Grace to obtain
               from the Hudson's Bay Company an arrangement whereby land may be
               disposed of with the concurrence in each individual
case
 case of the local
               Government, the proceeds either being deposited in the Bank of
               British North America, or placed in charge of a Receiver, to await
               the decision as to ownership already sought from the Privy Council.
               
               I have the honor to be
               My Lord Duke
               Your Grace's most obedient
               and humble Servant
               
James Douglas
               
               Minutes by CO staff
               
                
                  
                  
                     Mr Elliot
                     The 
Duke of Newcastle's 
desph of the 
24 Jany last
                     (which the 
Govr will
                     have 
recd ab
t the beginning of 
March) containing the agreement
                     of the H.B.C. & H.M. 
Govt as to terms of settlement to the C
o's
                     reserves in 
V.C.I. will relieve the Governor's embarrassment.  But
                     refer this to 
Mr Murdoch.
                     
 
                  
                  
                   
            
            
               Other documents included in the file
               
                
                  
                  
                     Elliot to Emigration Commissioners, 
24 April 1862, forwarding
                     copy of the despatch.