526 BRITISH COLUMBIA 

to which we have adverted above are likely, if entirely unguarded
against, not only to prevent any increase of free and independent
colonists in the island, but positively to diminish their present
numbers. 

"We, therefore, humbly request your Excellency to take into your
gracious consideration the propriety of appointing a Council before
your Excellency's departure, such being the most anxious and earnest
desire of your Excellency's devoted and loyal subjects. 

"(Signed)
"James Yates, Landowner.
"Robert John Staines, Trinity Hall, Cambridge, Chaplain to the 

Honourable Hudson's Bay Company.
"James Cooper, Merchant and Landowner.
"Thomas Monroe, Lessee of Captain Grant's Land at Sooke.
"William M'Donald, Carpenter and House-builder.
"James Sangster, Settler.
"John Muir, sen., Settler, Sooke.
"William Eraser, Settler, Sooke.
"Andrew Muir, Settler, Sooke.
"John M'Gregor, Settler, Sooke.
"John Muir, jun.. Settler, Sooke.
"Michael Muir, Settler, Sooke.
"Robert Muir, Settler. Sooke.
"Archibald Muir, Settler, Sooke.
"Thomas Blinkhorn, Settler, Michonsan." 

Can it be possible that the prophecy contained in Lieutenant
Dundas' report to Earl Grey had already come true? At any rate the
memorial of the independent settlers shows very clearly that already
their interests had clashed with the interests of the monopoly. It was
the first concerted action of the settlers against the Company; and it
was an ominous portent of the future. The first settlers were depend-
ent upon the Company for everything that they required — not only
for supplies — but for markets and transportation facilities. With the
exception of an occasional whaler, or American trader, no ships vis-
ited Vancouver Island but those belonging to the Company; hence
the Company efifectively controlled the avenues of trade beyond the
bounds of the colony. The Company had a large trade with the 

BRITISH COLUMBIA 527 

Russian settlement at Sitka, and to that port it shipped the surplus
products of its farms, a trade that was not open to the colonists. Again,
the Company was the only purchaser on the island and its store at
Fort Victoria was the only market where supplies might be bought
or produce sold. The officer in charge of the fort, therefore, regu-
lated the price paid for such things as the settlers might wish to sell.
The settlers felt rightly or wrongly that their interests were subor-
dinated to those of the Company. 

There was another factor, however, that affected in no small
degree the economic condition of the colony, and that was the gold
excitement in California. In California high wages were paid at
the mines, and merchandise of all kinds fetched high prices and
naturally men flocked thither from all parts of the world. The Hud-
son's Bay Company at that time experienced great difficulty in keep-
ing its men, for the alluring prospects of the gold fields enticed them
away, and many of them deserted in consequence. 

Yet, perhaps the greatest obstacles in the path of progress were
the high price of land, and the Company's reserves. Ten miles square
of the best agricultural land then known on the Island, had been
reserved by the Company for its own use and for the Puget Sound
Agricultural Company. As this embraced all land in the immediate
vicinity of the Fort, settlers were obliged to buy their farms in the
remote districts of Metchosin and Sooke, where they were unpro-
tected from the Indians, and a long distance from their only market.
No land could be obtained for less than one pound an acre, and for
every hundred acres purchased, a settler was obliged to bring out five
men at his own expense. 

Captain W. C. Grant, a retired armv officer, was the first inde-
pendent settler to reach the island. He arrived on the Harponner,
in June, 1849, and brought with him the first party of colonists under
the system inaugurated by the Company. The party consisted of
eight men. Captain Grant had been induced to take this step by the
Company's advertisement in the London Times. On his arrival
he found that all the land in the neighbourhood of Victoria and
Esquimau had been placed under reserve. He was recommended to
settle at Metchosin, but not finding the land in that district desirable,
he proceeded to Sooke, and there, at a distance of twenty-six miles
from Victoria, he settled down. He soon grew tired, however, of life
in the wilderness, and a year or two later, left the island in disgust. 

528 BRITISH COLUMBIA 

In looking back at that period, it seems that the animosities and
bickerings that were such a feature of the American settlements in
Oregon, were to distinguish the infant British colony. The colonists
were dissatisfied with the Company, and the Company's servants
were perpetually at unrest; life at the fort was scarcely in keeping
with the beauty of its surroundings. His Excellency, the Governor,
tired of his exile, and disappointed in his hopes, tendered his resigna-
tion, pleading ill health and lack of means as the cause of his wish to
be recalled. A year had not elapsed after his arrival in the colony,
when he wrote to Earl Grey — "I regret to inform your Lordship that
I find myself compelled to tender my resignation as Governor, and
solicit an immediate call from this colony, as my private fortune is
utterly insufficient for the mere cost of living here, so high have prices
been run up by the Hudson's Bay Company, and as for our independ-
ent settlers, every requisite for existence must be obtained from them.
My health has completely given way under repeated attacks of ague,
and shows no signs of amending. Under these circumstances I trust
your Lordship will at once recall me, and appoint some person as
my successor, whose larger fortune mav enable him to def rav charges,
which involve me in certain ruin. I trust that vour Lordship will
give directions that I mav be furnished with a passage as far as
Panama in one of Her Majesty's ships, as my state of health will not
bear the long voyage round Cape Horn, and, being compelled to
defray the expenses of my passage out by the Hudson's Bay Com-
pany, who repudiated the Bills their chairman had authorized me to
draw, has so straitened my private means, that I am unable to pay
the heavy expenses of the route through California." 

The Governor's resignation was dated November, 1850: Grey's
letter of acceptance was written on April 3, 1851, and reached Blans-
hard in August. Thus nearly ten months elapsed between the
despatch of the one, and the receipt of the other — a fact that well
illustrates the isolated position of Vancouver Island at that time.

BRITISH COLUMBIA 521 

The operations of the war ship are set forth in the Governor's monthly
report of October, 1850: 

"Fort Rupert, Vancouver Island, 

"October 19th, 1850.
"My Lord, 

"I have the honour to inform your Lordship that Her M. S.
Daedalus, under the command of Captain G. Wellesley, visited this
Colony on the 22nd of September last. On my informing Captain
Wellesley that three murders had been committed by the Indians,
and also of my inability to take any measures for the punishment of
the murderers, he consented to proceed with the Daedalus to Fort
Rupert, near which the murders were committed, to give any assist-
ance that might be required. On my arrival at Fort Rupert, I found
that the officer of the Hudson's Bay Company who had been des-
patched by Dr. Helmcken to make enquiries respecting the murder
had on his return given a totally false account of the result of those
enquiries, asserting that he owed no obedience except to the Hudson's
Bay Company. He shortly afterwards crossed the strait to a post of
the Company's and made a declaration of the real facts to Mr. Doug-
las, a Chief Factor of tlic Company. Of this statement I was not fur-
nished with a copy till after my arrival here, a few days ago, and not
till the investigation was concluded. Thus two conflicting stories
were in circulation at once, which, being traced to the same source,
raised suspicions of foul play, and caused the report that I have pre-
viously mentioned, viz: that the unfortunate men had been murdered
by order of the Hudson's Bay Company. A deposition that has since
been made me on oath, backed by the evidence of an Interpreter and
several of the Indian Chiefs, was perfectly conclusive, not only as to
the Tribes, but as to the very persons of the murderers. On the i ith
of October, Dr. Helmcken visited the Newitly Camp, about 12 miles
distant, and demanded, bv name, the murderers for trial; the whole
tribe took up arms; thev acknowledged the murder, and offered furs
in payment, but refused to surrender the guilty parties, declaring
themselves hostile, and threatened the lives of the Magistrate and his
party, pointing their guns at them. On learning this I applied to
Captain Wellesley for assistance, and he dispatched the boats of the
Daedalus on the 12th, to apprehend the murderers bv force, if neces-
sary. They returned on the 13th, and 1 liave the honour to enclose 

522 BRITISH COLUMBIA 

your Lordship a copy of the report, by which you will see that the
whole tribe had deserted their camp, which was burnt by the Officer
commanding the boats. 1 have offered a reward for the apprehen-
sion of three of the murderers, the fourth who was present being only
a boy of nine years of age. 

"The Daedalus left me at Fort Rupert, on the 14th inst., to pro-
ceed to San Francisco, being unable to remain longer on account of
shortness of provisions. 

"With regard to the disturbances that had taken place among
the Honourable Hudson's Bay Company's servants, they have com-
pletely subsided, insomuch so that Dr. Helmcken did not find it neces-
sary to publish the proclamation of which I sent your Lordship a
copy. The disturbance had been occasioned by the bad quality of
food which had been served out to the English labourers, as well as
by two miners being actually placed in irons illegally for some days,
for refusing to perform some work. 

"The miners made me a written complaint on the subject, demand-
ing redress, but thev left the Island before I was able to take any
notice of it. 

"I regret to say that Dr. Helmcken has declined acting any longer
as Magistrate on the ground that the only causes are between the
Hudson's Bay Company and their servants; and as being a paid ser-
vant of the former he cannot be considered an impartial person. This
objection is good against all servants of the Company holding Com-
missions, as they can be removed from the Colony at a moment's
notice by their employers and are kept in the greatest subjection. 

"There are at present no settlers at all in the Island. Mr. Grant
left for the Sandwich Islands some days ago. 

"I am, &c., 

"(Signed) RICHARD Blaxshard,
"Governor of Vancouver Island." 

In due course Earl Grey acknowledged the despatches of the
Governor of Vancouver Island. His replies were generally short,
and with few exceptions, contained little of value to the historian.
On July 16, i8qo, the noble Earl observed: 

"Sir, "Downing Street, 16 July 1850. 

"I have to acknowledge the receipt of your Despatch of the 8th
April reporting your arrival at Fort Victoria on the loth of March, 

BRITISH COLUMBIA 523 

and the public perusal of your Commission as Governor and Com-
mander in Chief in and over Vancouver's Island and its dependencies.
"You have acted correctly in deferring, under the circumstances
of the case, the nomination of your first council as it is not incumbent
on you to make your appointment to the Board until a sufficient num-
ber of settlers shall have arrived to afiford you the opportunity of
making a proper selection. At the same time it is expedient that no
unnecessary delay should take place in constructing your Council,
and establishing the prescribed institutions for the Government of the
Colony. 

"I am, Sir,
■'Your most obedient Servant, Grey." 

And again on March 20, 185 1, Earl Grey wrote: 

"Downing Street, 20th of March 1851.
"Sir, 

"I have to acknuw ledge your Despatch, No. 6, of September i8th
last, conveying the last accounts of the state of affairs in Vancouver's
Island up to that date. 

"2 1 must distinctly inform you, that it is not in the power of Her
Majesty's Government to maintain a detachment of regular troops
to garrison the Island. 

"3 With reference to the murder committed by the Indians on the
unfortunate Seaman in the neighbourhood of Fort Rupert. Her
Majesty's Government have received intelligence, through Rear
Admiral Hornby, of the proceeding which you caused to be taken by
Captain Wellesley of H. M. S. Daedalus to demand, and if possi-
ble, to punish tlic municrcrs since the date of vour despatch. From
information which has thus reached me I by no means feel satisfied
of the step which you took in directing this expedition, which appears
to have failed in its main object. And at all events it is necessary
that I should state for your guidance on future occasions that Her
Majesty's Government cannot undertake to protect, or attempt to
punish injuries committed upon British subjects, who voluntarily
expose themselves to the violence or treachery of the Native Tribes
at a distance from the settlements. 1 have no reason to suppose from 

524 BRITISH COLUMBIA 

the accounts which have reached me both from yourself and other
quarters, that the Settlements themselves are in actual danger.
"I have the honour to be, Sir,
"Your most obedient and humble Servant, 

"Grey." 

From the despatches of the Secretary of State for the Colonies,
it would appear that he scarcely realized the unfortunate position of
Governor Blanshard. His letters displayed little cordiality or sym-
pathy; perhaps he was not altogether pleased with Blanshard's lugu-
brious communications, or, perhaps he repented that he had not in
the first place acquiesced to Sir John Felly's proposal that James
Douglas be made Governor of the Island. Be that as it may, when
Blanshard tendered his resignation, it was readily accepted in a letter
which contained no words of appreciation of his services. It was not
so, however, with the independent settlers, as the persons in no way
connected with the Companv were termed. Without loss of time they
prepared a memorial, setting forth their grievances and their fears
for the colony if it should be left to the control of the Hudson's
Bay Company; and their regret at His Excellency's determination
to leave the Island. The memorial was signed by nearly all of the
independent settlers, and bv the Rev. Robert John Staines, the Com-
pany's chaplain at Fort Victoria. It states so succinctly the position
of the colonists and sets fortli so plainly their idea of the Hudson's
Bay Company, in its capacitv as a nation builder, that the historian
of that period cannot afTord to overlook it; it holds an important place
among the early State papers of the colony of Vancouver Island that
it is worthy of being reproduced in these pages. The document reads
as follows: 

"To His Excellency RICHARD BLANSHARD, Esquire, Governor of
Vancouver's Island: 

"May it please your Excellency, 

"We, the undersigned, inhabitants of Vancouver Island, having
learned with regret that vour Elxcellency has resigned the govern-
ment of this colony, and understanding that the government has been
committed to a chief factor of the Hudson's Bay Company, cannot 

BRITISH COLUMBIA 525 

but express our unfeigned surprise and concern at such an
appointment. 

"7 he Hudson's Bay Company being, as it is, a great trading body,
must necessarily have interests clashing with those of independent
colonists. Most matters of a political nature will cause a contest be-
tween the agents of the Company and the colonists. Many matters
of a judicial nature also, will, undoubtedly, arise in which the Colo-
nists and the Company (or its servants) will be contending parties,
or the upper servants and the lower servants of the Company will be
arrayed against each other. We beg to express in the most emphat-
ical and plainest manner, our assurance that impartial decisions
cannot be expected from a Governor, who is not only a member of
the Company, sharing its profits — his share of such profits rising and
falling as they rise and fall — but is also charged as their chief agent
with the sole representation of their trading interests in this island and
the adjacent coasts. 

"Furthermore, thus situated, the colony will have no security that
its public funds will be duly disposed of solely for the benefit of the
colony in general, and not turned aside in any degree to be applied
to the private purposes of the Company, by disproportionate sums
being devoted to the improvement of that tract of land held by them,
or otherwise unduly employed. 

"Under these circumstances, we beg to acquaint your Excellency
with our deep sense of the absolute necessity there is, for the real good
and welfare of the country, that a council should be immediately
appointed, in order to provide some security that the interests of the
Hudson's Bay Company shall not be allowed to Outweigh and ruin
those of the colonv in g-jneral. 

"We, who join in expressing these sentiments to your Excellency
are unfortunately but a very small number, but we respectfully beg
your Excellency to consider that we, and we alone, represent the in-
terests of the island as a free and independent British colony, for we
constitute the whole body of the independent settlers, all the other
inhabitants being, in some way or other, so connected with and con-
trolled by the Hudson's Bav Company, as to be deprived of freedom
of action in all matters relating to the public affairs of the colony some
indeed by their own confession, as may be proved if necessary. And
we further allege our firm persuasion, that the untoward influences 

516 BRITISH COLUMBIA 

ha« no real existence. This last contains the Harbour of Esquimalt,
the only harbour in the southern part of the Island worthy notice,
as it is of large extent, has good anchorage, is easy of access at all
times and in all weather, is well watered, and in many places the
water is of sufficient depth to allow ships anchoring along the shore.
Victoria Harbour, where Hudson's Bay Company's settlement is
established, is very small, the entrance is narrow, tortuous, and shal-
low; no vessels can enter except at high tide with favourable wind
and weather; and there is no water near, the water required for the
servants of the Hudson's Bay Company is brought from a distance
of two miles, and, during the summer and autumn, they are kept on
allowance as at sea. 

"I have received news from Oregon of the discovery of very
rich gold mines on the Spokan River. The whole population of that
territory are flocking to the spot. Should the favourable accounts
of these mines prove correct, I fear that it will draw away all the
Hudson's Bay Company's servants from Vancouver Island, and at
present they form the entire population." 

At that time there was only one other settlement on the Island,
Fort Rupert, on the northeastern coast. At this place the Company
had been for some time searching for the coal that, it was supposed,
existed in the neighbourhood. The miners brought out for this pur-
pose, as stated in the despatch already quoted, soon began to chafe
at the restrictions placed upon them. The Indians living near Fort
Rupert were also exceedingly troublesome. They belonged to one
of the most warlike and treacherous tribes then inhabiting the Island.
A few months before, the ship Norman Morrison had arrived at
Victoria from London, bringing several settlers and a number of
labourers for the Company. On this ship arrived a young surgeon
and physician, John Sebastian Helmcken, who was destined to
achieve distinction in his adopted country, not only in his professional
capacitv but also as statesman and speaker of Parliament. Open-
hearted, generous, genial and witty, the doctor's spontaneous good
humour and broad sympathies soon endeared him to all with whom
he came in contact. Mr. Helmcken, shortly after his arrival was
sent to Fort Rupert as surgeon, and shortly after his arrival there he
became identified with public afifairs. Blanshard, at a loss to find a
man unconnected with the Company to act as magistrate, appointed 

BRITISH COLUMBIA 517 

Doctor Helmcken to that position, as duly recorded in the despatch
of July lo, 1850, as hereunder: 

"Victoria, Vancouver Island,
"July 10, 1850.
"Sir, 

"I beg to enclose a copy of a Letter I addressed to J. S. Helmcken,
Esq., Medical Officer of the Hudson's Bay Company, at Fort Rupert,
appointing him to act as Magistrate, provisionally; this is the only
appointment I have yet made in the Colony, for as there are no
independent settlers, all cases that can occur, requiring magisterial
interference, are disputes, between the representatives of the Hudson's
Bay Company and their servants. To appoint the former magis-
trates, w^ould be to make them Judges in their own causes, and to
arm them with additional power, which few of them would exert
discreetly. Mr. Helmcken has only recently arrived in the Colony
from England, he is therefore a stranger to the petty brawls that have
occurred, and the ill feelings they have occasioned between the Hud-
son's Bay Company and their servants; from this and from my
knowledge of his character I have great confidence in his impar-
tiality, his situation too, as Surgeon, renders him more free from the
influence which might be exercised over another servant of the
Company. 

"It is moreover highly desirable that there should be a resident
Magistrate at Fort Rupert, as the miners and labourers there have
sho\\n a disposition to riot, which, if not checked mav lead to serious
consequences, the Indian population being numerous, savage and
treacherous; and the distance from Victoria and the total want of
means of communication between the two places increases the incon-
veniences. I would strongly recommend a duty to be imp(«ed on
the importation and manufacture of ardent spirits, as their introduc-
tion tends to demoralize the Indians to a most dangerous degree,
but I conceive I have not the power to impose such duty, free trade
having been declared here, without further instructions, which I
would request on this point at your Lordship's earliest convenience. 

"I may here mention that the accounts which have been published
respecting the barbarous treatment of the Indian population by the
Hudson's Bay Company, arc both from my own personal observa- 

518 BRITISH COLUMBIA 

tion, and from all I have been able to gather on the subject, entirely
without foundation. They are always treated with the greatest con-
sideration — far greater than the white labourers, and in many
instances are allowed liberties and impunities in the Hudson's Bay
Company's establishments that I regard as extremely unsafe. No
liquor is given them by the Company on any pretence, but it is
impossible to prevent their obtaining it from the merchant vessels
that visit the coast." 

The Governor's official notification of Mr. Helmcken's appoint-
ment is as follows : 

"You are hereby appointed to act as Magistrate and Justice of
the Peace, for the protection of and preservation of order amongst
her Majesty's subjects in and about Fort Rupert, and in the adjoining
district of Vancouver Island, subject always to her Majesty's
approval of vour appointment, when your Commission will be
formally made out and forwarded to \'ou, till which time this letter
shall be a sufficient warranty for your acting as Magistrate of the
District, and exercising all powers that belong to that office." 

The next despatch portrays very vividly the condition of the col-
ony and affords an insight into the dangers and difficulties that beset
the pioneers in the outlying posts: "I have to inform your Lord-
ship," wrote the Governor, on August i8, 1850, "of the massacre of
three British Subjects by the Newitly Indians, near Fort Rupert.
Want of force has prevented me from making any attempt to secure
the murderers; indeed the only safeguard of the Colony consists in
the occasional visits of the cruisers of the Pacific Squadron which
only occur at rare intervals, and for short calls. The massacre of
these men has produced a great effect on the white inhabitants, many
of whom do not scruple to accuse the officers of the Hudson's Bay
Company of having instigated the Indians to the deed by offers of
reward for the recovery of the men (sailors who had absconded) dead
or alive. I have not vet been able to inquire into the truth of this
report, but it is very widelv spread, and men say that they ground
their belief on what the Hudson's Bay Company have done before.
The establishment at Fort Rupert is in a very critical state. A letter
I have received from Mr. Helmcken, the resident magistrate, states
that the people are so excited by the massacre, which they charge
their employers with instigating; that they have in a body refused 

BRITISH COLUMBIA 519 

all obedience both to their employers and to him as magistrate; that
he is utterly unable to maintain any authority, as they universally
refuse to serve as constables, and insist upon the settlement being
abandoned; that to attempt such a step would lead to their entire
destruction, as they are surrounded by the Quarolts, one of the most
warlike tribes on the coast, three thousand in number and well armed.
Mr. Helmcken has tendered his resignation as Magistrate, as with-
out proper support the office merely exposes him to contempt and
insult; and he further states that being in the employment of the
Hudson's Bay Company, he cannot conscientiously decide the cases
which occur, which are almost invariably between that Company
and their servants. This is the very objection I stated to your Lord-
ship against employing persons connected with the Company in any
public capacity in the Colony. I am in the expectation of the arrival
of one of Her Majesty's ships of war, according to the promises of
Admiral Hornby, Commander-in-Chief in the Pacific, when I shall
be able to proceed to the North and restore order. In the meantime
I have prohibited any persons from leaving Fort Rupert without
special permission, as, if the people attempt to abandon the settlement
and straggle about the coast, they will infallibly be cut ofT by the
Indians, who are daily becoming more inclined to outrage, and are
emboldened by impunity. 

"The miners have left the Colony in a body, owing to a dispute 

with their employers. The seam of coal is consequently undiscovered. 

"I have seen a very rich specimen of gold ore said to have been 

brought by the Indians of Queen Charlotte's Island, but I have at 

present no further account of it." 

On September i8, 1850, the Governor writes in the following
strain : 

"V'ancouvcr Island, September 18th, 1850.
"My Lord, 

"I have nothing of importance to communicate respecting this
Colony, as all communication is stopped with the northern part of
the Island, and the want of force has prevented me from going there
myself to enquire into the hue disturbances. 

"Some complaints f)f Indian outrages have reached me from
Sooke, about thirty miles from Victoria, where a gentleman of the
name of Grant, late in Her Majesty's service, has a small settlement. 

520 BRITISH COLUMBIA 

He complains of want of protection, which, owing to the distance
at which he is located cannot be afforded him; he informs me that he
was anxious to settle near Victoria, but was not allowed to do so bv
the Hudson's Bay Company, who have appropriated all the valuable
land in the neighbourhood. 

"Future settlers will labour under the same disadvantages, viz:
being dispersed at considerable distances from each other, and from
the establishment, as well as being exposed to the depredations of the
Indians, which no means are afforded me of checking. 

"I would beg to press on your Lordship's consideration, the neces-
sity of protecting this Colony by a garrison of regular troops, in pref-
erence to a body of pensioners, for as the principal service that they
would be called on to perform would be to repress and overawe the
natives, a moveable force would be necessary, and I think that
Marines would be better calculated for the duty than Troops of the
Line. Two companies would be sufficient, of which a detachment
would be stationed at Fort Rupert, and the remainder near Vic-
toria; a cantonment might easily be formed on the plains near Esqui-
mau Harbour, and as timber is abundant there, the Troops if landed
in the spring, could easily complete their own barracks before the
rainy season, which does not commence till October. The expense
of maintaining a garrison would be inconsiderable and there are
ample funds for the purpose, as the Hudson's Bay Company have
still in their hands the price of the lands they have taken in their own
name, and that of the Puget Sound Association. Should your Lord-
ship decide on placing such a garrison, I should recommend that an
Engineer Officer should be sent beforehand to select such sites for
barracks, &c., as might be most convenient. 

"I have, &c., 

"(Signed) RiCHARD Bl.AXSHARD,
"Governor of Vancouver Island." 

In the meantime H. M. S. Daedalus, under the command of Cap-
tain G. Wellesley, arrived at Victoria, and she was immediately com-
missioned by the Governor to proceed to Fort Rupert to apprehend
the murderers, and to overawe the Indians with a display of force. 

512 BRITISH COLUMBIA 

capital of the Western Department and the place of residence of
James Douglas, the manager of the Company's afifairs west of the
Rocky Mountains, was at this time a small post beyond the stockades
of which lay pastures and farms. From the fort winding lanes led
to the fields and dairies. Although the agricultural operations of the
Company's officers had reclaimed, here and there, little patches, the
countryside presented generally the aspect of the verdant wild.
Game still abounded. The timid deer still roamed in the natural
parks. Blue and willow grouse lived in coveys in the thickets and on
the rocky eminences of the Gonzales Point, Mount Tolmie and
Mount Douglas. Wild fowl were plentiful in the swamps and
marshes in the autumn and winter months. The lordly elk had not
yet forsaken his familiar haunts and in those days this beautiful
animal grazed with the cattle in the fields. 

The Governor found no residence awaiting him; nor even apart-
ments in the Fort. He was therefore obliged, during the first few
weeks of his rule, to reside on board H. M. S. Driver. Then
he was lodged in the Fort, and later, a small house and office were
built outside the stockade. Blanshard had seen service in the West
Indian Islands, in British Honduras and in India, where he had held
positions under the Colonial Office, and he was seemingly well
qualified to govern an infant colony; but on Vancouver Island he
found nothing to govern, because the Hudson's Bay Company, under
the terms of the Royal grant, managed afifairs as it liked. It was
most unlikely that an utter stranger, even clothed with all the power
that the Queen's Commission could give him, would be cordially
welcomed by the representative of the Great Monopoly, especially
in view of the fact that Sir John Felly had requested Earl Grey,
Secretary of State for the Colonies, to appoint their representative,
James Douglas to the coveted position. The truth is that Blanshard
was not wanted, and the Hudson's Bay Company soon made his
position untenable. He found no public afifairs to administer, no
seat of government, no judiciary and no legislature. There was
little indeed he could do except to regulate the disputes between the
Hudson's Bay Company's officers and their servants, which disputes
were frequent enough. Moreover, the Governor received no salary.
He had accepted the position in the expectation that colonists would
flock to the country and that every inducement would be ofifered to 

BRITISH COLUMBIA 513 

people to settle there; and, that of course, as the colony progressed a
civil list would be voted. 

He also expected that the sale of land and the royalties on coal
would produce a considerable revenue. But these sources of income
were controlled by the Hudson's Bay Company, under the terms of
the grant, and the monies so derived were expended by its officers.
At the celebrated Parliamentary enquiry into the affairs of the Hud-
son's Bay Company in 1857, Blanshard stated that before his depar-
ture from England, Sir John Pelly had promised him one thousand
acres of land ; but when he applied for the grant, he was told by
James Douglas that the matter would have to be settled at the head
offices of the Company in England, as the grant was merely intended
for the use of the Governor for the time being. In view of the high
cost of living today, it is interesting to recall that it cost the Governor
eleven hundred pounds a year to live and that very quietly, at Vic-
toria. There were three separate prices in the Company's stores at
that time; one for the superior officers; another for the servants;
and a tliird which was called the "cash price," at which goods were
-DJd to settlers. The officers received their supplies at the advance
'if thirty-three per cent upon the cost price, the servants at fifty to
one hundred per cent; and the cash price was regulated as nearly as
possible by the price in California, where goods of all kinds were
exceptionally high owing to the gold excitement. The cash price
represented an advance of one hundred per cent upon the prime
cost. The Governor was treated as a stranger and was forced to pur-
chase his supplies as such, which meant that he paid about three hun-
dred per cent over the cost price. ' 

An idea of Governor Blanshard's impressions of the colony, of
his struggles and disappointments, may be gained from his official
correspondence with Earl Grey. His first despatch is an illuminat-
ing document; it bears the date of April 8, 1850, and reads: 

"Fort Victoria, Vancouver Island, 

"April, 8th, 1850.
"My Lord, 

"I beg to inform you of my arrival at Victoria, the settlement of
the Hudson's Bay Company in Vancouver Island, on the loth March 

•'' Select Cdininittee iin Hudsnu's Bay Co., 1857. Minutes on ICviileiicc, page 28
Vol i-:t:t 

514 BRITISH COLUMBIA 

ultimo, in H. M. S. Driver. On the iith I landed, and read my
commission in the presence of Commander Johnson, of H. M. S.
Driver, and the ofBcers and servants of the Hudson's Bay Company.
No lodging being ready for me, I have been compelled to remain
on board the Driver, during her stay in the colony, and took the
opportunity of visiting Fort Rupert, a new settlement which had been
formed at Beaver Harbour, for the purpose of working the coals
with which the north-eastern part of the Island is said to abound.
About six months ago, the Hudson's Bay Company sent a party of
Scotch miners to Beaver Harbour, but they have not yet been able
to discover coal in anv quantitv; at the depth of seventv feet the
largest seam they had struck was only eight inches in depth, and the
surface coal, which former reports describe as being three feet in
depth and of excellent quality, nowhere, I am assured by the miners,
exceeds ten inches, of which one half is slag. Should they perse-
vere, there is no doubt that a supply of coal may eventually be
obtained, which will greatly increase the value of this colony; but the
miners are unprovided with proper implements, discontented with
their employers and can scarcely be induced to work. 

"An application was made to me by Captain Hill, Commandant
of the U. S. Military Post at Chelahom, to allow a force to proceed
to Vancouver Island to apprehend two men. Military deserters from
the United States Army, who had he stated been taken from Chela-
hom by a schooner belonging to the Hudson's Bay Company, incur-
ring thereby a heavy penalty under the local law of the State of
Oregon. This I declined to allow, as I conceive that no reciprocal
arrangement exists between Great Britain and the United States
for the arrest of deserters for purelv Militarv offences. 

"The quantity of arable land, or land that can be made arable is,
so far as I can ascertain, exceedingly limited throughout the Island,
which consists almost entirely of broken ranges of rocky hills, inter-
sected by ravines and valleys so narrow as to render them useless
for cultivation. A Mr. McNeill, Agent for the Hudson's Bay Com-
pany at Beaver Harbour, who is considered to be better acquainted
with the Indian population than any other person, estimates their
number at the very largest at ten thousand, and these he considers to
be steadily decreasing, although the sale of spirituous liquors has
been for a considerable time prohibited, and the prohibition appears
to be strictly enforced. 

BRITISH COLUMBIA 515 

"As no settlers have at present arrived, I have considered that»it
is unnecessary as yet to nominate a council, as my instructions direct;
for a council chosen at present must be composed entirely of the
officers of the Hudson's Bay Company, few if any of whom possess
the qualification of landed property which is required to vote for
Members of Assembly, and they would moreover be completely
under the control of their superior officers; but as no immediate
arrival of settlers is likely to take place, and my instructions direct
me to form a Council on my arrival, I should wish for a further
direction on this point before I proceed to its formation. 

"I am &c., 

"(Signed) RiCHAKD BLANSHARD." 

Events moved slowly at that early period. Beyond the daily
routine at the post, which went on from day to day with military
precision, nothing occurred to disturb the peace of the little com-
munitv, nor to cause e.xcitement, except wild rumors of the discovery
of gold in fabulous cjuantities in California. Shortly after his first
despatch, the Governor reported that: "Nothing of importance has
since occurred in the Colony; no settlers or immigrants have arrived,
nor have any land sales been efifected. Coal has not vet been dis-
covered, though the miners have not yet, I am happy to say, aban-
doned all hope." He continues: — 

"An American Company has commenced running a line of Mail
steam packets between San Francisco and Oregon. They have not
yet decided what port in ()rcgnn will be their terminus; could coal
have been supplied from Vancouver Island they would have chosen
Nisqually, in Puget Sound, which would have greatly facilitated
the communication between Vancouver Island and England, but
as it caiuiot be obtained they will probably select Portland, on the
Columbia River. The Hudson's Bay Company have commenced
a survev of the land reserved to themselves, wliich is bounded by a
line drawn nearlv due nortli, from the head of V^ictoria Harbour to
a hill marked on the chart as Cedar Hill or Mount Douglas, and
thence running due east to the Canal de Arro. The extent is esti-
mated at about ten miles (square). A tract adjoining, of similar
extent, is reserved for the Puget Sound Agricultural Association—
the Hudson's Bay Company under another name, for the Association

BRITISH COLUMBIA 507 

opportunity of visiting not only these regions, but tiieir Settlements
in Hudson's Bay and on the Red River. 

"There has always appeared to me an overbearingly illiberal
usurpation of power on the part of the H. B. Co. to which every
better feeling has invariably been Sacrificed, and which has ren-
dered their line of conduct in many instances most irregular and
unjustifiable; however necessary this System may have been found
when dealing with Savages, it could not but prove repugnant to the
feelings of the Colonists and the facility which in this case would be
offered them of leaving the island, would doubtless be taken advan-
tage of, and the Colony after dwindling into insignificance would
become but another dependance wholly at the mercy of the Hud-
son's Bay Co. 

"That this powerful Company have the ability to form advan-
tageous Settlements in these unfrequented parts, there is not a doubt,
but when their trade is wholly carried on with the Aborigines, is
it to be Supposed, that they would aid in the advancement of Civil-
ization when from time immemorial it has been proved that the
progress of the one has ever been made at the expense of the other?
And should the Natives cease to exist, why, their occupation is
gone. It is only a natural conclusion then to arrive at that the efforts
which the Hudson's Bay Company are putting forward to obtain
either a direct or indirect influence in Vancouver Island are with
the Sole motive of protracting to as late a period as possible a monop-
oly which thev have so long enjoyed and which could not benefit
the country, the only object of establishing a Settlement in Such a
distant quarter. The Puget's Sound Company are doubtless equally
anxious for Hudson's Bay jurisdiction, but it must be at the same
time remembered that these two Companies are wliolly incorporated
in each other, and their interests are mutually blended, their object
being to engross all those other available Sources of revenue to which
the furtrade is not immediately applicable." 

With regard to the natural advantages of the Island, Lieutenant
Dundas went on to say: — 

"My impression is that they arc highly favourable for the estab-
lishment of a Colony, the climate is a most desirable one, and com-
paring it, with that of this Country infinitely more equable, it is as
healthy as could be wished for and seems to suit the European Con- 

508 BRITISH COLUMBIA 

stitution admirably, and though fever and ague are very prevalent on
the Mainland yet from the absence of low and marshy ground they
are unknown here. Water however is not wanting and can always
be obtained in sufficient quantity, as a proof of which there are beaver
on the island, whose aquatic propensities are too well known to be
commented on. 

"To give correct description of the island would entail a task,
which I do not hesitate to confess I am incompetent of performing,
as its interior has never been explored, and in fact it has only been
penetrated at one point to the extent of twenty miles, the Shores how-
ever have been very frequently visited, in the course of trafficking
with the Indians and from such sources of information a very satis-
factory conclusion may be arrived at. 

"Vancouver's is an island about two hundred and fifty miles
long, and sixty-five its extreme breadth at any part, although in
many places it does not exceed the half of that, in its general appear-
ance it is mountainous and thickly wooded, the Western or Sea coast
being the most precipitous. 

"As the Straits of De Fuca are entered its wild aspect gradually
diminishes until within some fifteen or twenty miles of Victoria, the
Company's only Settlement on the island; here it presents a most
favourable view, the dark pine forest giving way to plain and open
park land studded with fine oaks. This continues with some excep-
tions along the Coast bordering the Canal de Arra (Haro) and Gulph
of Georgia, running up in a North Westerly direction offering many
eligible spots for Agricultural operations, the Navigation here is
considered difficult at times even for steam vessels, owing to the
rapidity and irregularity of the Currents, but when it is remembered
that Vancouver found his way through here in safety, it cannot be
doubted but that these difficulties will disappear before advancing
civilization and science. To compensate however for the casual
disadvantages in the navigation, the whole coast abounds in most
excellent harbours which can scarcely be equalled in any island of
similar extent, and where the most secure inlets are wanting numer-
ous small islets afford the Mariner a safe anchorage and protection
from the weather. With regard to the minerals, as yet coal is only
known to exist here, but sanguine hopes are entertained that there
are others, lead and tin having been discovered on Queen Char- 

BRITISH COLUMBIA 509 

lotte's Island which is a little more than a degree to the Northward.
The coal was quite accidentally discovered from the vein having
been seen on the beach at low water, a quantity of this although taken
almost from the surface has been satisfactorily tried on board the
Company's Steamer Bearer on several occasions, the situation of
this mine is about twenty miles from the entrance of Queen Char-
lotte's Sound, and could be reached by sailing vessels with perfect
ease, entering from the Northward. The timber which is here to
be met with consists almost exclusively of the gigantic pine in dif-
ferent varieties, there are also oak, ash and such other trees as are
to be met with in this country, although they bear but a small pro-
portion. The pine is most available for ship spars and the more
Northerly the climate the more valuable they are. 

"I have as yet said nothing about the Soil; there are conflicting
opinions as to its being very available for agricultural purposes and
I have very lately seen it publickly stated that there was such a
thin surface over rock as to render it perfectly unavailable, but I
think that that is rather a sweeping assertion. That the ground is in
many places stony there is no doubt but with a little labour they can
be removed, and there remains as rich a soil as the farmer can desire. 

"So little being known of the interior of the island, as I have
already observed, it would be difficult to form a very correct estimate
of the number of its inhabitants, but from the knowledge of the
existence of nine tribes on the coast, averaging seven hundred men
to a. tribe, a sufficiently accurate approximation may be arrived at by
stating the whole to amount to about ten thousand which however
I should think it did not exceed. They are for the most part gener-
ally friendly to strangers although not wholly perhaps to be depended
upon, yet a simple demonstration of force has always been found to
keep them in check. They subsist chiefly on fish, but likewise take
a great quantity of game, all of which are easily procured and are
in great abundance; they even venture after the whale in their light
canoes, and that animal frequents the Straits of de Fuca, and Gulph
of Georgia during the season; great numbers are caught — I was
informed on good authority, as many as a hundred had been taken
during the year, this of course has been found a very productive
sport." 

The truth lay midway between the statements of Sir John Pelly 

510 BRITISH COLUMBIA 

and Lieutenant Dundas. Both perhaps made somewhat extravagant
assertions. For instance it is difficult to account for Dundas' criti-
cism of the administration of the Hudson's Bay Company in the
valley of the Columbia, because, as contemporary records show very
clearly, that administration was generally successful. The Company
was under no obligation to colonize the Oregon Territory and it
was not to be expected in the circumstances that it would bear with
equanimity the encroachments of settlers. For all that, Dr.
McLoughlin and other agents of the company had treated the desti-
tute American settlers with great kindness. The great establishment
at Fort Vancouver with its fruitful fields and great herd of horses,
cattle and sheep, would rather create the impression that the Com-
pany could, if it chose, successfully form and administer a colony.
On the other hand. Sir John Felly had perhaps misjudged, not the
ability, but the willingness of his Company to foster settlements in
territories it had long been accustomed to administer solely with a
view to profiting by the furtrade. The settlement of the Willamette
had demonstrated the fact that farming and furtrading could not
be combined in the same region. However desirous of forming set-
tlements in the neighbourhood of its posts the Company might be,
sooner or later the rival interests of the settler and the furtrader
were bound to clash. Subsequent events in Vancouver Island proved
the truth of this. 

Yet, whatever may be said against the Hudson's Bay Company,
its services to the Empire can scarcely be overestimated. It was the
instrument by which that magnificent territory stretching from the
Rocky Mountains to the Pacific Ocean north of the 49th parallel,
was conserved for the British race. With its superb organization,
with an administration as effective as it was far-reaching, the Com-
pany held the land until, in the fulness of time, it became an integral
part of the Empire. 

In July, 1849, Richard Blanshard was duly appointed Governor
and Commander-in-Chief in and over the Island of Vancouver and
its Dependencies, by a commission under the Great Seal of the United
Kingdom. The Governor reached Victoria in H. M. S. Driver on
March 10, 1850. On the following day he landed and read his
Commission in the presence of Commander Johnson and the officers
and servants of the Hudson's Bay Company. By this simple act. 

I 

No. I. HIS KX('KI,l.i;.\('\ i;H llAKI) lll..\NSIL\l;li l'ii>t (;..\ririiir ol Naiiccinrr l^liuul
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No. :i. IMS I':N(M:I,LI:N(V SIH .WTIIONV MISCH.WI-: Covcmor 111 lliitish (■(ihiinbiii, 

1S68-1871
No. 4.— SIR .l.\MI':S Dnrcl.AS K. C. M. G.— SoviTiioi- of \';iiiroiiviT l>hui(l. IS.JMSIU and 

of tlic MaiiilMiid, 1.S.-)S-1S()4 

BRITISH COLUMBIA 5ii 

Vancouver Island became the First British Colony in the North
Pacific. Hitherto the Northwest coast had known neither settled law
nor government. From time immemorial it had been under the
sway of the native races. It is true that the Hudson's Bay Company
had established some semblance of law and order therein, but not
until Governor Blanshard read his Commission at Victoria, on
March 1 1, 1850 — scarcely sixty years ago — that it could be said that
the common law of England became effective. Perhaps the true
significance of that ceremony was not born in upon those who wit-
nessed that ceremony, and, indeed, there was little to show that it
inaugurated a new era; but, nevertheless, it was an historic occasion.
All that had gone before — the explorations of Cook and of the
pioneer furtraders; the seizure of the British ships by the Spaniards
in Nootka Sound in 1789; the Nootka Convention of 1790; the
survey of the coast by Vancouver; the overland journey by Sir Alex-
ander Mackenzie; the occupation of New Caledonia by the North
West Company; the administration of the Hudson's Bay Company;
and the founding of Camosun in 1843 — had but paved the way for
this significant event. 

No doubt to the French-Canadian voyageurs and the men who
had known no other authority but that of the Great Company, and
who had observed no laws but those promulgated by Sir George
Simpson, Doctor John McLoughlin, and the other officers in charge
of the different posts where they had been stationed, it must have
appeared strange, if not ludicrous, that by such a simple act, a greater
power than that wielded by the Company for which they worked
and lived, could set its seal upon the land. Yet, such was the case.
Heretofore the mandate of the Hudson's Bay Company had been
supreme throughout the vast extent of the Western Department.
The Company entrenched as it was, did not fear the new power that
the creation of the little colony of Vancouver Island had established
in the land; nor did it show over much respect for her Majesty's
representative. 

His Excellency, Governor Blanshard, the first duly commissioned
representative of the Crown to assume control of any portion of the
Northwest coast, did not find his position a pleasant one. At the time
of his arrival in the colonv, there were not more than thirty settlers,
besides the officers and servants of the Company. Victoria, now the

502 BRITISH COLUMBIA 

establishments, We Our heirs and successors, paying a reasonable
price for the same; and the said Company shall, once in every two
years at the least, certify under the seal of the said Governor and
Company, to one of Our Principal Secretaries of State, what colo-
nists shall have been from time to time settled in the said island, and
what land shall be disposed of as aforesaid: 

"And We further declare, that this present grant is made upon
this condition, that if the said Governor and Company shall not,
within the term of five years from the date of these presents, have
established upon the said island a settlement of resident colonists,
emigrants from the United Kingdom of Great Britain and Ireland,
or from other Our Dominions; and it shall at any time after the
expiration of such term of five years, be certified to Us, Our heirs
and successors, to inquire into the condition of such island, that such
settlement has not been established according to the intent of this
Our grant, or that the provisions hereinbefore mentioned respecting
the disposal of lands and minerals, have not been respectively ful-
filled, it shall be lawful for Us, Our heirs and successors, to revoke
this present grant, and to enter upon and resume the said island and
premises hereby granted, without prejudice nevertheless, to such
dispositions as may have been made in the meantime by the said
Governor and Company of any land in the said island for the actual
purpose of colonization and settlement, and as shall have been certi-
fied as aforesaid to one of Our Principal Secretaries of State: 

"And We hereby declare, that this present grant is and shall be
deemed and taken to be made upon this further condition, that We,
Our heirs and successors, shall have, and We accordingly reserve
unto Us and them, full power, at the expiration of the said Governor
and Company's grant or licence of or for the exclusive privilege of
trading with the Indians, to re-purchase and take of or from the said
Governor and Company the said Vancouver's Island and premises
hereby granted, in consideration of payment being made by Us, Our
heirs and successors, to the said Governor and Company, of the sum
or sums of money theretofore laid out and expended by them in and
upon the said island and premises, and of the value of their estab-
lishments, property and efifects then being thereon." 

With the exclusive privilege of trading with the natives on the
mainland, and the Royal Grant of Vancouver Island, the Hudson's 

BRITISH COLUMBIA 503 

Bay Company occupied an impregnable position in Northwestern
America. However, tiie grant of the Island was not altogether
unencumbered. Before it had been made, Earl Grey had signified
that it was the intention of her Majesty's Government to provide
for the Government of the Colony and to make provision for the
establishment of legislative authority among the settlers, on whom
were to be conferred the same powers of local self government
usually granted to new colonies. A governor was to be appointed
who would be directed to summon an assembly elected by the general
vote of the inhabitants, to exercise in conjunction with himself and a
council, the law-making power. At the same time the Colonial Sec-
retary intimated that he was quite ready to be guided in the selection
of her Majesty's representative by the wishes of the Company. Sir
John Pelly, did not fail to avail himself of the opportunity to bring
a name to Earl Grey's notice. Naturally enough he suggested that
James Douglas should receive the appointment. "Mr. Douglas,''
observed Sir John, "is a man of property, a Chief Factor of the
Hudson's Bay Company, and a member of the board at Fort Van-
couver for managing the Company's afifairs of the country westward
(jf the Rocky Mountains." He added "I do not propose this as a
permanent appointment, but merely as a temporary expedient, until
the colony can afford to pay a governor unconnected with the Hud-
son's Bay Company." 

In the same letter he submitted the names of fourteen gentlemen
whom he considered well qualihed to hold commissions of the peace,
under the Act of i & 2 Geo. IV. All of these men were connected
with the Hudson's Bay Company, and all of them were well known
in the Oregon Territory, where many of them had achieved dis-
tinction. The Reverend Robert Staines, was the chaplain at Fort
Victoria; Peter Skene Ogden, joint manager with James Douglas of
the Hudson's Bay Company's affairs west of the Rocky Mountains;
James Douglas, a protege of the great Doctor John McLoughliii
and a man who had already distinguished himself in the service of
the Cnmpanv; John Work, Chief Factor, who had lived in the
Oregon territory for a quarter of a century; Archibald McKinley,
later a member of the Indian Reserves Commission; Doctor Wil-
liam Frascr Tolmic, a polished gentleman nf the old school, a physi-
cian of repute, and manager of the Puget Sound Agricultural Com- 

504 BRITISH COLUMBIA 

pany's estate on the Nisqually plain; Alexander Caulfield Anderson,
a well known Chief Factor, who had distinguished himself in explor-
ing the interior of New Caledonia and in establishing the route from
Fort Hope to Fort Kamloops followed by the great brigades; James
Murray Yale, John Tod and Dugald McTavish, Chief Factors who
had distinguished themselves in the west, and Richard Grant, Don-
ald Mason, George T. Allan and John Kennedy, also well known
throughout the Oregon territory and New Caledonia. These were
the men proposed as justices of the peace in the new colony. 

The appointments were made, and in due course Sir John Felly's
nominees received their commissions, duly signed by the Queen. But
although the Colonial Secretary in a letter to Sir John, of September,
1848, acquiesced in the suggestion that James Douglas should be
appointed Her Majesty's representative, some hitch must have
occurred, for the honour of being the first governor of Vancouver
Island, fell to the lot of Mr. Richard Blanshard, an estimable English
barrister, who had seen service under the Colonial office in other
parts of the Empire. Blanshard received the appointment in 1849,
shortly after the Royal Grant of Vancouver Island had received the
assent of her Majesty. 

It must not be supposed that the grant of Vancouver Island to
the Hudson's Bay Company was passed without opposition. As a
matter of fact the Government was severely criticized, not only in
the Imperial Parliament, but by men who for one reason or another
opposed the grant. Nor was the Hudson's Bay Company, although
the official returns to Parliament of that period do not reveal the
fact, the sole aspirant for the concession. While Sir John Felly was
pressing his claim upon the Secretary of State for the Colonies, a
determined effort was made by one James Edward Fitzgerald, to
obtain a grant of the Island. His efforts, however, were of no avail;
nor does it appear that his application was even seriously considered.
He proposed to form a company to take over the Island on gener-
ous terms, but as he could give no guarantee, such as that offered
by a corporation of such high standing in the financial world as the
Hudson's Bay Company, the Ministry could not in fairness listen
to his proposals. Fitzgerald, 'apparently soured by his defeat and
feeling that he had been injured, bitterly attacked the Company in
a work entitled "Vancouver Island and the Hudson's Bay Com-
panv," which created some little stir at the time. 

BRITISH COLUMBIA 505 

In Parliament the late Right Honourable William Ewart Glad-
stone objected to the policy of the Colonial Office and was inclined
to view with disfavour the granting of further special privileges to
the Company. Nor was public opinion in favour of the proposal.
It was not to be expected then that the action of the Government in
this particular would escape criticism, yet, in looking back, it does
not appear that any other course could have been followed with
advantage at that particular time. The Hudson's Bay Company was
already in possession of the land; its officers had penetrated it in all
directions and they were well versed in the Indian character; for
years, the Company with a handful of men had successfully man-
aged the whole territory and held the natives in check. Moreover,
it was beyond question that the Company had held the western ter-
ritory for Great Britain. These qualifications and services could
not well be overlooked and the Hudson's Bay Company was charged
with the settlement of the Colony. For the first time in its history
that great organization had undertaken a purely colonial enterprise.
Heretofore, with the exception of the Red River settlement — a ven-
ture of a dilTerent nature from that of the colonization of Vancouver
Island — the Companv had no experience along that line. Until the
reorganization of the Company in 1863, when a large majority of the
proprietors disposed of their shares to the International Financial
Society, Limited, the Court of Proprietors had opposed the forma-
tion of settlements in the territories under their control. The policy
of the Company up to that time is clearly expounded by Alexander
Dallas (who had succeeded Sir George Simpson as Governor in
America) in a letter bearing date April 16, 1862, and having ref-
erence to the proposal of the government of Canada that a practi-
caMe line of communication should be built across the continent.
In that letter Dallas took occasion to observe that "while fully admit-
ting the force of the above arguments (as to the public importance
of such communication) and the immediate necessity of some
arrangement being come to, I am reluctantly compelled to admit my
inability to meet the Government of Canada in this forward move-
ment, for the following reasons: — 

"ist. The Red River and Saskatchewan Valleys, though not in
themselves fur-bearing districts, are the sources from where the main
supplies of winter food arc procured for the northern posts from 

506 BRITISH COLUMBIA 

the produce of the buffalo hunts. A chain of settlements through
these valleys would not only deprive the Company of the above vital
resource, but would indirectly in many other ways so interfere with
their northern trade as to render it no longer worth prosecuting on
an extended scale. It would necessarily be directed into various
channels, possible to the public benefit, but the Company could no
longer exist on its present footing. 

"The above reason against a partial surrender of our territories
may not appear sufficiently obvious to parties not conversant with the
trade or the country; but my knowledge of both, based on personal
experience, and from other sources open to me, point to the con-
clusion that partial concessions of the districts which must necessarily
be alienated would inevitably lead to the extinction of the
Company." - 

But to return to Vancouver Island and the Hudson's Bay Com-
pany. It appears that Earl Grey while listening to the overtures of
Sir John Pelly, sought information in another quarter respecting
the monopoly's management of the Oregon Territory. Lieutenant
Adam D. Dundas, of the Royal Navy, who had lately returned to
London from the Northwest coast, was requested to report with
regard to the advantages or disadvantages that would accrue to a
colony on Vancouver Island, under the jurisdiction or superintend-
ence of that organization. Dundas' report was unfavourable and
because it sets forth very lucidly the case against the Company it is
worthy of being reproduced here: — 

"Having during my late period of Service in the Pacific been
for upwards of two years employed on that part of the Northwest
coast generally known as the Hudson's Bay Territory, the greater
part of which has been spent within the limits of Fort Vancouver,
their great Western Depot, I have had every opportunity of observ-
ing, not only how all tlicir arrangements were managed but the spirit
which pervaded their whole system, and which I have no hesitation
in saying would be whollv, and totally inapplicable to the nursing
of a young Colony, with the hopes of ever bringing it to Maturity.
And my opinion only accords with that which 1 have heard univer-
sally expressed by all disinterested individuals who have had an 

= F. N. — Canada and British Cnlunibia return to an address of the House of Commons, July 15,
1863, page 5. 

CHAPTER XV
THE COLON\' OF VANCOUVER ISLAND 

Scarcely had the ink dried upon the Oregon Treaty, when Sir
John H. Pelly, Governor of the Hudson's Bay Company, sought to
extend the sway of the Adventurers of England, even as far as the
Pacific Ocean. On September 7, 1846, he addressed a diplomatic
note to Earl Grey, the Secretary of State for the Colonies: "With
the view of ascertaining the intentions of Her Majesty's Government
as to the acquisition of Lands or Formation of Settlements to the
North of Latitude Forty-nine." He was also anxious to know
whether the Hudson's Bay Company would be confirmed: ''In the
possession of such lands as they may find it expedient to add to those
which they already possess." Clearly it was the intention of the
Company to obtain, if possible, from the Crown, a Grant of the
western territories of British North America, in order to prevent
such occurrences as had proved so disastrous to their several under-
takings in the valleys of the Columbia and Willamette Rivers. What
Sir George Simpson had termed in a moment of disgust or petulance
"the unruly population" of that quarter, ought not to be allowed to
obtain a foot hold on Vancouver Island. So far, the mainland was
safe enough, because the exclusive trade of that region was assured
to the Company by the terms of the Licence of 1838, which had
extended for a further term, the agreement of 1821, in which the
amalgamated Hudson's Bay and North West Companies had been
granted the exclusive trade of the Indian territories. These agree-
ments were generally known as the licences of exclusive trade. 

Early in October, 1846, Earl Grey replied to Sir John Pelly's
letter. He requested the directors of the Hudson's Bay Company to
apprise him with as much exactness as possible: "What is the extent
and what are the natural or other limits of the Territory in the 

Vol. 1—32 

497 

498 BRITISH COLUMBIA 

Possession of which they (the Company) desire to be confirmed,
pointing out what may be known regarding the Soil, Harbour, and
navigable Streams comprised within it." Earl Grey also wished to
be informed by the Company: "Whether they are advised that their
Right is clear in point of Law to receive and hold in their corporate
Capacity any Lands within the Dominions of the British Crown
Westward of the Rocky Mountains." In reply to the Colonial Sec-
retary's note, Sir John Pelly, on October 24th, transmitted Chief
Factor James Douglas' report of July 12, 1842, and pointed out that
the reports of Lieutenants Warre and Vavasour dated November i,
1845, addressed to the Secretary of State for the Colonies, and that
of Lieutenant Vavasour to Colonel Holloway of the Royal Engi-
neers, dated March i, 1846, contained the information desired by
Earl Grey. 

The Colonial Secretary was also advised that the Company held
that its right was clear in point of law to receive and hold in its cor-
porate capacity any lands within the dominions of the British Crown
west of the Rocky Mountains — a claim which was based upon the
Royal Charter of 1670, and the licence of May 13, 1838, which,
however, reserved to the Crown the right of establishing colonies
within these territories, or of annexing any part thereof to any exist-
ing colony or colonies. This letter concluded with the following
paragraph : "It would be a superfluous task to enter into the detail
of the reasons which render the colonization of Vancouver Island a
subject of grave importance; I shall at present merely submit to Earl
Grey's consideration, whether that object, embracing as I trust it
will the conversion to Christianity and the civilization of the native
population, might not be most readily and cfTectually accomplished
through the instrumentality of the Hudson's Bay Company, either
by a grant of the island on terms to be hereafter agreed upon, or in
some other way in which the influence and resources of the Company
might be made subservient to that end." * 

These and other letters addressed by Sir John Pelly to Earl
Grey, exhibited the keen desire of the Hudson's Bay Company to
obtain control of the territory now definitely determined to belong
to Great Britain. The Company indeed wished to obtain a grant of 

1 vide Correspondence between the Chairman of the Hudson's Bay Co. and the Secretary of
State for the Colonies, relative to the Colonization of Vancouver Island. 1849. p. i8. 

BRITISH COLUMBIA 499 

the whole territory lying between the country drained by the rivers
flowing into Hudson's Bay, and the Pacific Ocean. In a communi-
cation dated March 5, 1847, Governor Pelly observed that "if her
Majesty's ministers should be of opinion that the territory in ques-
tion would be more conveniently governed and colonized (as far as
that may 'be practicable) through the Hudson's Bay Company, the
Company are willing to undertake it, and will be ready to receive a
grant of all territories belonging to the Crown, which are situated
north and west of Rupert's Land." 

In making this sweeping request, however, the Governor over-
reached himself. It was quite impossible in view of the state of pub-
lic opinion in England, for any public man to bring forward such a
proposal. Earl Grey, in reply, suggested that the Company should
submit "another scheme which should be more limited and defined
in its object, and yet embrace a plan for the Colonization of Van-
couver's Island." 

This definite request narrowed the scope of the negotiations.
Yet, even in the face of the decided opinion expressed by the Colonial
Secretary, Sir John Pelly pressed for a grant of the whole of the ter-
ritories west of the Rocky Mountains. The Governor was astute
and diplomatic enough to assure Earl Grey that the Company was
not particularly anxious to take over the territories asked for in the
first instance, adding that he had merely suggested that the whole
should be included in a grant to the Hudson's Bay Company,
because— "I was persuaded that the colonization would be much
more successfully conducted under the auspices of the Company,
than it would be in any other manner." 

If that proposal should not meet with the approval of her Maj-
esty's Government, the Company were quite willing that the lands
should be limited to "the territory north of 49°, bounded on the east
by the Rocky Mountains, or even Vancouver's Island alone." The
Company, however, did not wish to be called upon to pay Royalties
to the Imperial Government, because, "all moneys received for lands
or minerals would be applied to purposes connected with the
improvement of the country, and, therefore, if the Grant is to be
clogged with any payment to the Mother country, the Company
would be under the necessity of declining it." 

Earl Grey replied that he deemed it advisable in the first instance, 

500 BRITISH COLUMBIA 

that the Grant should be confined to Vancouver Island. He was
prepared to entertain any such proposal that the Company might
think proper to submit to him for this purpose, proceeding on the
principle that the Company should not derive any pecuniary profit
from their undertaking. All funds arising from the sale of lands,
or minerals, he suggested should be applied towards the colonization
and improvement of the island. 

After many conferences, proposals, and counter-proposals, it was
at last decided to grant Vancouver Island to the Hudson's Bay Com-
pany, and by the Royal Proclamation, of January 13, 1849, the island
was ceded to that corporation, under certain terms and conditions — ■
exactly eleven years after the granting of the Royal licence for exclu-
sive trade in the Indian territories, which bears the date of May
13, 1838. The latter monopoly, therefore, would hold good for
nine years, unless revoked in the meantime. 

As the terms and conditions of the Grant gave rise to much dis-
cussion in the House of Commons, and seriously affected the for-
tunes of the Colony of Vancouver Island, they are worthy of being
set forth in full. After a long preamble, reciting the Royal Charter
of King Charles II., of the second day of May, 1670, and the diflfer-
ent Acts that had been passed for the regulation of the furtrade and
the punishment of offences in "certain parts of North America"
(which expression referred to the lands afterwards known as the
Indian Territories, and the Oregon Boundary Treaty of June 15,
1846), the Royal Grant set forth that: — 

"Whereas it would conduce greatly to the maintenance of peace,
justice and good order, and the advancement of colonization and
the promotion and encouragement of trade and commerce in, and
also the protection and welfare of the native Indians residing within
that portion of Our territories in North America, called Vancouver's
Island, if such Island were colonized by settlers from the British
dominions, and if the property in the land of such island were vested
for the purpose of such colonization in the said Governor and Com-
pany of Adventurers of England trading into Hudson's Bay; but
nevertheless, upon condition that the said Governor and Company
should form on the said island a settlement or settlements, as herein-
after mentioned, for the purpose of colonizing the said island, and
also should defray the entire expense of any civil and military estab- 

BRITISH COLUMBIA 501 

lishments which may be required for the protection and government
of such settlement or settlements (except, nevertheless, during the
time of hostilities between Great Britain and any foreign European
or American power) : 

"And further We do, by these presents, for Us, Our heirs and
successors, make, create and constitute the said Governor and Com-
pany for the time being, and their successors, the true and absolute
lords and proprietors of the same territories, limits and places, and
of all the other premises (saving always the faith, allegiance and
sovereign dominion due to Us, Our heirs and successors for the
same) ; to have, hold, and possess and enjoy the said territory, limits
and places, and all and singular other the premises hereby granted
as aforesaid, with their and every of their rights, members, royalties
and appurtenances whatsoever to them, the said Governor and Com-
pany, and their successors for ever, to be holden of Us, Our heirs
and successors, in free and common soccage, at the yearly rent of
Seven shillings, payable to Us and Our successors for ever, on the
First day of January in every year: 

"Provided always, and We declare, that this present grant is
made to the intent that the said Governor and Company shall estab-
lish upon the said island a settlement or settlements of resident colo-
nists, emigrants from Our United Kingdom of Great Britain and
Ireland, or from other Our dominions and shall dispose of the land
there as may be necessary for the purposes of colonization; and to
the intent that the said Company shall, with a view to the aforesaid
purposes, dispose of all lands hereby granted to them at a reason-
able price, except so much thereof as may be required for public
purposes; and that all monies which shall be received by the said
Company for the purchase of such land, and also from all payments
which may be made to them for or in respect of the coal or other
minerals to be obtained in the said island, or the right of searching
for and getting the same, shall (after deduction of such sums by way
of profits as shall not exceed a deduction of lo per cent, from the
gross amount received by the said Company from the sale of such
land, and in respect of such coal or other minerals as aforesaid) be
applied towards the colonization and improvement of the island; and
that the Com nan v shall reserve for the use of Us, Our heirs and suc-
cessors, all such land as may be required for the formation of naval