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" ' ^ c i place be Canada, Select CoMPAN o a ^ O B-'§ 1 o 3 *■ < o A < .•^r.~_. -:'''l%:' > kg £: s, "^ p; s o • 1 GO ft & fro ri - t'^i'tf'si V A\» '." ■»JV*f,-^'^,>--^>0'T*'^ ,- •JSi'-r^ »'•!.>.',%»• I-' ^ - / HUDSON'S BAY COMPANY. .V/' Shovlt F RETURN to an Addreu of the Honourable The Houte of Commons, (laud 16 February 1858 ;-^r, ** COPIES or Extracts of any Correspondence that has taken place between the Colonial Office and the Hudson's Bay Company, or the Government of Canada, in consequence of ihe Report of the Select Committee on the Affairs of the Compamt which sat in the last Session of Parliament." Colonial 0£Sce, 1 22 February 1866. J H. LABOUCHERE. .6-^^ {Mr. Eoebuek.) Ordered, by The House of Commons, to be Printed, 26 February 1858. 99- SCHEDULE. Number in fivlM. From Whom. Hgnnan MeriTale, £sq.,to JofanShep' herd, Esq., Gover- nor of the Hudson'! Bay Company. Herman Merirale, Esq., to John Shep- herd, Esq., OoTer- nor of the Hudson's Bay Company. John Shepherd, Esq., to the Right Hon. H. Labouohere. John Shepherd, Esq., to the Kight Hon. H. JLabouohere. The Right Hon. H. Labouohere to Go-, vemor-General Sir E. Head. DATE. 1868: 20 January 90 January SI January 21 January 22 January SUBJECT. - - Informing him of the Conditions on which Her Majesty's Government are prepared to advise Her Majesty to renew the existing Li- cense of the Hudson's Bay Company, for a further Term of Twenty-one Years from its approaching expiration, on the 80th May 1860 • - Stating that it is the intention of Her Majesty's Government to advise the exercise of the power reserved to the Crown to Re- purchase and take Vancouver's Island from the Hudson's Bay Conopany, and requesting that Her Majesty's Cfovemment may be furnished with a Statement of the Sums expended on the Island, for which the Di- rectors may claim Repayment • - - - • Conveying the acquiescence of the Di- rectors in the Condittons laid down by Her Mjyesty's Government for the renewal of the existing License of the Company - - Acknowledging Mr. Merivale's Letter, informing him of the views of Her Majesty's Government in regard to Vancouver's Island, and adding that the required statement shall be prepared and transmitted as soon as pos- sible -•-.... • - Enclosing copies of the preceding Cor- respondence for his consideration, and that of his Council, with General Remarks on the whole subject -.*-.. Page. ' I' r 3 1 .K/ COPIES or Extracts of any Corrbspondkncb that has taken place between the Colonial Office and the Hudson's Bay Company, or the Government of Canada, in consequence of the Report of the Sblbct CoMMiTTBE on the Affairs of the Company which sat in the last Session of Parliament. — No. 1. — ■„ , , .„ , i... Copy of LETTER from Herman Merivale, Esq., to John Shepherd, Esq. Sir, Downing-street, 20 January 1868. No. I. 1. Her Majesty's Government have had under their consideration your ^'^^ail'^u'3"^'' letter of the 22d December 1856, containing an application on behalf of the e^_' ''' * ' Governor and Committee of the Hudson's Bay Company, for a renewal of their ao January 1858. license for exclusive trading with the Indians in the north-western territories of America. They have also, since the receipt of that letter, paid full attention to the Report of the Select Committee of the House of Commons appointe, during the last Session of Parliament, to consider the state of the Britis Eossessions under the administration of the Hudson's Bay Company. And I ave now to acquaint you, by direction of Mr. Secretary Labouchere, with the result of their deliberations on the whole subject. 2. They are disposed to advise Her Majesty to execute the powers vested in Her by the Act 1 & 2 Geo. 4, c. 66, by renewing the existing license of the Hudson's Bay Company for a further term of 21 years from its approach- ing expiration on the 30th May 1859, on the following conditions : 3. The reservation, as in the present license, of any territories which may be formed by Her Majesty's Government into colonies. 4. Vancouver's Island to be excepted from the license, as already constituted into a colony. On the subject of this island, I am to refer you to another letter, of even date herewith, in which the views of Her Majesty's Government in relation to it are communicated to you. 6. I am further to state, that Her Majesty's Government consider it very desirable to ascertain, by the decision of some competent authority, the boundary between the province of Cana.la and the territories claimed by the Company under their charter. It has c;m suggested by Her Majesty's law advisers, that this might be effected thrt gh the intervention of the Judicial Committee of the Privy Council, on their being moved to entertain the ques- tion. You stated in your letter addressed to me on the 1 8th July last, that the directors of the Company were prepared to recommend to their share- holders a concurrence in this course. But I have no authority to state that the province of Canada is also prepared to concur in it, unless allowed at the same time to discuss the farther question of the validity of the charter itself, a question which, on public grounds, Her Majesty's Government do not consider tnemselves authorised to raise. If, therefore, any parties in Canada propose to take measures towards contesting the Company's rights to the full extent before a legal tribunal, Her Majesty's Government must leave them to take that course on their own responsibility. If, on the other hand, Canada thinks it expedient to agree to the course now proposed, namely, that of trying the question of boundary alone, with the consent of the Hudson's Bay Company, Her Majesty's Government will afford every facility in their power for its determination. It is therefore Mr. Labouchere's intention, in the first place, to submit this pro- , posal to the option of the colony. 6. But supposing that no such proceedings are taken, and that the colony ! . • : declines to contest the naked question of boundary in the manner suggested, , ; ' Mr. Labouchere is of opinion that the objects recommended by the Committee may be attained by another course. He will then be prepared to propose to ' ' " 99' A 2 Canada, CORRESPONDENCE RELATING TO T ■ J'.' Canada, and to the Company on the part of Her Majesty's Ooremment, aa a further condition for the renewal of the license, that the Company should surrender to the Crown such portions of the tj'rritory now claimed by it under the charter as may be available to« and required by Canada for purposes of settlement. 7. It is stated in the Report that the districts likely to be required for early occupation are those on the lied Kiver and Baskatchewun. If that should be the case, the portion of territory thus generally indicated should be rendered free for annexation to Canada. Such annexation to take place whether in this or any other direction, when Canada has made a road or other line of communi- cation connecting the territory she requires ; and when Canada has given satis- factory evidence of her intention to take steps for laying out townships and settling and administering the affairs of these districts. Thus tl:e annexation might De gradual, in case it should be found to suit the convenience of the several parties interested. 8. For the purpose of ascertaining the satisfactory performance by Canada of .:'i A.-."- the terms thus required, the period when such annexation should consequently ■i commence, and the manner in which it should be carried into execution, Mr. " Labouchere would propose the appointment of a Board of three Commissioners, one to be nominated by the province of Canada, one by the Company, and one by Her Majesty's Government 9. The same Board should be authorized to consider and report on the fol- lowing question ; viz. the amount of pecuniary compensation which, under all the circumstances of the case, may become justly payable to the Company, in consequence of such contemplated annexation, and in respect of property which they may be required to surrender. 10. The Commissioners should be instructed to dispose of further questions connected with the transfer which in the course of these proceedings it may appear desirable to refer to them. 1 1. Her Majesty's Government have further to propose that, if it should at any time be made known to them that there is good reason to believe that mining operations or fisheries may be advantageously conducted in any portion of the territory held by the Hudson's Bay Company under their charter, facili* ties should be afforded to Her Majesty's subjects for engaging in those pursuits, within limited districts. For this purpose, it would be necessary that Her Majesty's Government should be authorized to grant licenses or leases, or in some other manner, which may be arranged by mutual consent, to place the parties engaging to prosecute such undertakings in possession of the land required for the purpose, any territorial rights of the Company notwithstanding. On the other hand, it should be fully understood that Her Majesty's Govern- ment will not grant any such facilities unless the parties applying for them give to Her Majesty's Government and the Company substantial proof of their com- petency, and of the bond Jide nature of their intentions, nor unless proper security be taken against the interference of such parties with the fur trade of the Company with the Indians. The mode of carrying into execution these arrangements would be matter for subsequent consideration, if the Company should agree to the principles now suggested. 1 2 . If the Company should signify through yourself their willingness to consent to these proposals, Her Majesty's Government will proceed forthwith to submit them to the local Government of Canada for their consideration, and in the event of their concurrence, they will be prepared to take the necessary means for carrying them into effect. I have, &c. (signed) H. Merivale. — No. 2. — Copy of LETTER from Herman Merivale, Esq., to John Shepherd, Esq. Sir, Downing- street, 20 January 1838. With reference to my letter of this day's date, respecting the proposed io*im\iwj 1858. renewal of the Hudson's Bay Company's license of trade in north-western America, No. 2. H. Merivtie, Esq., to J. Shepherd, Eiq • * THE HUDSON'S BAY COMPANY. America, T am further directrd by Mr. LAbouchere to inform ynu that, in pursuance of the recommendation of the Committee of the Hou«> of C'ommunM, referred to in that letter, it is the intention of Her Majinty's Ciovemment to advise the exercise of the power renervrd to the Crown by the existing f^rant of Vancouver's Island, to repurcluise and take that inland from th«! Hudnun's Bay Company, at the approaching expiration of the Company's present trading license, namei^, on the 30th May 1859. I am therefore to request that the directors will, at their earliest conve- nience, furnish Her Majesty's Government with a statement of the sums for which they may claim repayment as " laid out and expended by them in and upon the said island and premises, and as the value of their establish- ments, property and effects thereon," according to the terms of the grant. ,,,■■'•,(■■ ■,1'-,-' ■ ..\ , , I am, &c. ' * ^ . . i . . ing the only nourco from which the Com- pany 'h annual Htock of proviMion.4 in drawn, imrtHuilurly the Htaple article of pemican, a regular Hupply of which Im ahHolutelv necesitary to en^bl<^lu' otfirerB of the Oonipany to tranH|)ort their gotNU to the numerous inlnnil and (listunt Rtations, and to feed and nuiintain the people, l>oth European and Indian, Rtationed thereat. It in proper, ther(>fon>, that I should draw your attention to the fact, tliat the ultimate Iohh of thetM! diHtrictM will moHt )>r(>l)iil)ly involve the Hudion'i Bay Company in very HeriouH difficultieH, and cauite a great increase of expense in conducting their trade. The Company aitHume that the Canadian Government will be responHiblu for the pntHervation of {leace and the mainte- nance of law and order in all the territories ceded to them, and that they will prevent lawlcHH and dishonest adventurerH from infringing from thence the rights of the Company over the remaining portions of their territories. 6th. With respect to the 1 1th paragraph of your letter, in which it is proposed tliat Her Majesty's Government should be authorized at any time to grant licenses or leases, or in some other manner which may l)o arranged by mutual consent, to place parties engaging to prosecute mining operations or fisheries in possession of the land rcmiircd in any portion of our territory for the purpose, any territorial rights of the Company notwithstanding : assuming that the principles stated in the 0th paragraph as apnlicuble to cessions to Canada apply equally to any cessions which may take place in virtue ot this 11th clause, I beg to state that we shall be prepared to recommend our shurehulders to concur in this proposal. Uth. In conclusion, allow me to refer to the sentiments expressed in tlie fifth and last paragraphs of my letter of the 18th July last, as explanatory of the continued views of myself and colleagues. We are willing to enter upon a new tenure of our engagements under the renewed license, upon being assured of the support of Her Majesty's Government, and of the cordial co-operation of the neighl)ouring Government of Canada, in maintaining tranquillity and order among the Indian tribes, and protecting the frontiers of the whole adjacent British ttrritorios from foreign encroachment. 1 he interests of the Hudson's Bay Company, we are convinced, are closely united with the real prosperity of Canada, and we trust that the humane and beneficent objects of Her Majesty's Government will prosper under our united exertions. I have, &c. • , (signed) John Shepherd, Governor. — No. 4.— Copy of LETTER from John Shepherd, Esq., to the Right Honourable //. Labouchcre. , Sir, Hudson's Bay House, 21 January 1858. T Sh h '«f *F ' HAVE the honour to acknowledge the receipt of Mr. Merivale's letter of to theRiJlftfi'* yesterday's date, communicating the intention of Her Majesty's Government in H. Labouchere. reference to Vancouver's Island colony ; and, in accordance with your request, SI January 1858. a Statement of the sums for which the Hudson's Bay Company may claim repayment according to the terms of the grant, will be prepared and transmitted as soon as possible. I have, &c. (signed) John Shepherd, Governor. No. .5. Tbc Hight hoD. H. Labouchere to Governor-Gcn. Sir E. Head, •a January iS/iS. — No. 5. — Copy of DESP/VTCH from the Right Honourable H. Labouchere to Governor-General Sir Edmund Head. (No. 9.) Sir, Downing-street, 22 January 1858. In sending for your consideration and that of your Council a correspondence w hich has recently passed between the Directors of the Hudson's Bay Company and % • *Wit;; .A'i-UHfeuatf Pg3BE THE HUDSON'S BAY COMPANY. ^>^ 4 and this department, on the nubjectii emhrnced by the inveKtiptatinn of n Com- mittet* of the Houiie of Commons in the liwt year'n Seiwion of Parliiiment, it ii not neceiwary that I tthouid add much to the infoi iiiation which that torrrt- pondcncc conveys. The rtlations in wliicli tlu; ('onipany is placed both towardx (.'unada and to- wards Her Majesty's Goveninient in this country, tiave nutundly attracted, in no common degree, the attention of the Canailian community ; and they were alio carefully investigated by the Committee to which 1 have referred. It is the anxious dettire of Her Mujesty's Government to take the opixirtunity afforded by the approai^hing termination of the Company's lionHe ot excluHive trade over wlrnt is termed tne Indian territory, for placing these relations u|M)n such a footing as shall be consonant with justice, and at the same time con- ducive to the satisfaction and to the interests of the great Province under your Government. It is for the purpose of promoting these objects that I have carrie