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TiiR Account Books of the various Departments are made up for transmission to London at tho following Depots, from the Accounts rendered by the Officers in charge 01 Districts, namely — The NnnTiiKUN Depabtmk!»t Accounts at Fort Oiiriy. * ,, SouTHEiiN ,, ,, ,, ifoose Factory. '•■$! ,, MoMBKAf., including Labrador ,, Montreal. ,, Wksteun Dkpaiitmknt „ Victoria B.C. Tho Furs and other Returns sent home for sale are assumed in tlicso Accounts at^ valuations, regulated by the prices ruling in tliis market at the latest date known to the Oilicers. Tho valuations odopted in Outfits ISTfl and 187() were, owing to the subsequent fall in the market, in many cases higher than tho prices which the returns of these Outtita realized ; while tho valuations adopted in Outfit 1877 were much lower than the prices at which tho returns of that Outfit have recently been sold. lleforo entering upon w\ exomination of the District Accounts and of tho Reports of the Officers in charge, to discover whether or not other causes besides the reduced valuaiions of Furs liave contributed to tho great decline in tho amount of apparent profits, wo should (State that an examination of the Inventories has not shown us any tendency on the part of the Officers to over-valua tho assets in the Accounts, although in i.solated instances an over- valuation may have occurred — {Vnlr /mtjt' 1(! nf licmnrhs on flie Tnido.) During the hist five or six years, Fort Garry Depot has received the bulk of ths supplies of goods for tho Northern Department. Mooso Factory has received tho supplies of the Southi'iri, Victoria those of tlie Western Department, and Moutrool tho supplies of tho Montreal Depurtiueut. Tu the Western Deijartment tho goods at Inland Districts are valued at rates which include inland carriage and charges, ami those incurred at tlie Victoria Depot. At tho other Depots, freight, duty, atul ehiirges, on the goods, aro added to their cost; and a percentage is added in respect of tho further charges for inland carriage of the goods to the dilFerent Histrict*. This percentage, of courso, varies according to tho distance from the Depot, (he averngo being 17] per cent, upon the cost of goods landed at Fort Uarry. In MelCenzio River District this advance, to tover inland carriage, amounts to 4o per cent ; in I'lnglisli River to 3;5 ; in Edmonton to 'J2 ; and in Manitoba, near Red River to fij per cent. In the Reuthern Departinnnt the average advance is 10 J per cent, on cost of goods londed at .Moose Factory, tlie highest being '\') \wt cent, for carriage of supplies to Kinogutnisseo, and the lowest b per cent, on supplies to Albany. In the INIontreul Department tlio average advance is 8J per cent, on cost on goods at the Depot, the highest being 25 per cent, on the supplies of Abitibi, and the others at a lower rate. A portion of the supplies for the Northern Department are sent by the Company's vessel to York Factory. Here the freight and duty, &c., are added to the cost of the goods intended for the trade of York Factory District and the Coast Posts, which are charged with II further advance of from 5 to 8 per cent, according to their distance from the Factor)'. The total amounts added for inland transport in Outfit 187C, are as follows : — Northern Dcp.irtnicnt J;f)5,000, on goods valued at $377,000 Southern „ 0,800, ,, „ 41,000 Montreal ,, 7,500, ,, ,, 90,000 79,300 ^508,000 The Inventories, besides the European, Canadian, and American goods, contain country-made articles, live stock, amounts expended on buildings, improvements, and outstanding debts. "We find that at the most of the Districts, Medicines, Stationery, and articles in dailj' use, as well as dam:iged and unsaleable goods, are enumerated, but not valued in the Inventories. • Deductions are made from the live stock of 33 per cent, in the more remote Districts where the cattle are exposed to considerable danger during the winter; in other Districts the deductions are not so great. The cost of new buildings and such repairs as arc- valued, are spread over five years, 20 per cent, being written off in every your in usual cases. With reference to the system of valuing outstanding debts, wo have not found it to bo either uniform or entirely satisfactory. Arbitrary percentages of deductions are applied in ditl'eront Districts. In some cases three columns are introduced for good, doubtl'ul, and bad debts. At Edmonton, the principle is as follows : — One-third is written off from the doubtfid debts ; the remainder, i.e., two-thirds of the doubtful debts, are added to the total of the good debts; and one-third is tlien deducted from that total. It is inipossiblo to understiind the principle of this proceeding. In McKeiizio River and Athabnsca, the Inventories contain only a few items cliissified as f lutstandiiig Debts in respect of accounts with missionaries. If goods have been supplied to Indians, and therefore have been taken from the Inventory, tlicy remain an asset of the Fur Trade ; but they arc not valued, and tlio Furs received in return for such advances would swell the profits of the ensuing year. In Saskatcliewan District, neither the bad nor the doubtful debts are valued at all, and iine-hiilf is written dil' I'roin the good debts. In tlie Inventory of this District lor Outfit 1875, no less a sum thini $l()|t(00 has been deducted from the Inventory value on debts classified as goiiil. This is clearly iniidmissilije ; either tlie debts bIujuUI be classified iis doubtful, or so large a sum should Udt be ilediicted. I'lior to 1871, the debts in the Suskutchewan District were not valued at uU. In Outfit 18M Freemen's lialances were for the first time valued upon Inventory at 5(1 jut e(iit., and the same system appears tn hiue been followed in subs- (juent '•ulfits, not only fi)r Ireenien's Dahiticrs but fir other debts, ii long list of which is given ot tlio close of the Inventory of tlie kSaskatehewan District. Till' .'itli Mtii'ii i)f the Chief Commissioner has bean luiled to the matter, with the vii.'w (if liaviii),' it jiliiccd on a more satisfactory footing. In an account i iillcil " Fort Oiirry Customers' Italances," the classification of the debts is net out as good, doubtful, anil bad. One-half of the doubtful, an advances, which have not been valued. liut tlio general features are clear, as bearing on the profit of the year : where a larger amount of goods has been disjnised of, and no corresponding increase obtained in the Furs, the profits of the year are diminished pro tniito. Statement showing the actual results of the Company's trade : — OlTKIl 1874 1 Ourni 187». Outut 1876. rrofli. Loss I'loflt. Lowi. Profit. Lou. i: £ £ £ £ £ Northern 79,748 6,209 1,011 Southern . . . , , . , , 21,320 18,017 7,168 Montreal 1,000 4,5!23 •1,«12 Sandwich Bay ICO 015 l,70:t ■Western 1 IT.otiO 6,011 2,00.1 Lu~ £117,70(1 £24,000 Loss . , £300 Liiiidun ('\|ic iisos mill balances of Bhip'n aecounts £19,H()0 1 £10,800 I.OSg , . £17,513 I'r^lit £97,900 £4.108 £17,81.1 These results will Ih) found to agree with the stale ments of the Fur Trade Accounts presented to the iSlmioholdcrs. Iiilcrest on Ihe Capital employed in the trade is chnrgcil in I"ur Trade Accounts, rendered to ihe ollicers in aceonlauec with the provi' ions of the Deed I'oll, as follows : — riutlit 1874. £47,021 Outfit 1871. £52,028 Outfit 187(1, £r).'t,;i8« m (IT.) The Capital onu)^}^^! in each of the Departments can only bo estimated approximately in conseqiienco of the extonsiyo transactions between the Depots, which are adjusted by the transfer of balances at the close of each Outfit. The charge for interest at 6 per cent, hnviug excocded £50,000, as already stated, the odvances of the Company for corryinj? (m the trade in Outfits 1875 and 1876 have omountod to m)re than one million sterling. The amount of the various Inruntories of goods on hnnd, the shipments and other advances have been taken into account in apportioning the charges for iiilerest and Ijoocion f xpt'Usus, us follows :— Norllum Department £38,000 Soutliorii Dopartmont . . . . . . . . . . . . . . 0,000 Montreal Department . . . . . . . . . . . . . . 12,000 Westoru Department . . .. .. ,, ,. .. ., H.OOO i'70,000 Tlie following are the actual results of the trade, after deducting Ijondon charges and iiilertat on the capital employed in Outfits 1874, 1875 and 1870. hu Outfit 1S74, Profit .. Loudon cxpeusos . . Interest on Capital £19,800 17, Oil £117,700 6(1,821 Nit Profit £riO,879 Uiitlit l»7r,. rrofit .. London .expenses Jntcrt'st on Capital Outfit 1H7(>, Li.sH J^iondun cxpcnBOs Inlori'st on Capital £19,800 52,028 £l7,.'>l.i ■'i;t,;!8;t £21,000 71,82« £■17,828 £;ioo 70,89G B D £7i,iy« (v.) The Valuations adopted in the Fur Trade Accounts during the last four Outfits have been as follows : • Outfit 1874. Outfit 1876. Outfit 1876. Outfit 1877. Bear per skin 32/6 32/6 27/- 21/6 Boavor tt 10/6 10/6 8/6 V- Buffalo Robes II 20/6 16/6 15/- 13/6 Fishor .1 36/- 40/- 30/- 24/9 Fox Silver . . M l.'iO/- 200/- 140/- 139/6 „ Cross . . M 20/- 20/- 22/6 19/4 „ Eed .. ,, 7/6 7/6 6/. 5/6 „ AVhite.. 1) 7/6 . fi/- 4/9 3/11 Ljaix tt 9/9 . 10/- 7/2 6/7 Marion ,, 18/9 14/- 10/6 9/- Mink t» 9/- 5/- 5/- 3/11 Musquash . . M 8d. 8rf. dd. 4rf. Oil . . . pur ton £29 10 £29 10 £29 10 £27 Ottor per skin 25/- 25/- 16/- 14/10 Wolf »♦ 10/- 10/. 12/- 10/U Wolvorino , . It 10 '6 14/- 20/- 20/3 Salmon, saltod per tiorco 77/- 85/- 63/- 65/- ,, prosorvuil . por 11). 6irf. 7hd. r,d. 7irf. Tbo following were the Average Prices of Furs, &c , at London Spring Sales, during the last Five years. 1875. 187C. 1877. 1878. 1879. (Oiitiit 1S7;).) (Outfit 1874.) ^Outfit 1S76.) (Outfit 1870.) (Outfit 1877.) Bear . . . . t . t 46/8 41/6 28,'3 24/2 29/2 * Beaver . , per skin 13/8 11/10 9/0 7/9 12,6 Buflulo Robes ' n 37/- 35/. 20'- 15'- 17/- Fislar M 56/6 57/8 37/2 28/7 40- Fox, Silver It £15 £13 12 6 £8 5 2 £8 7 10 I'll 11 8 ,, Cross M 49/6 45/5 28'11 22/6 31/6 „ Red .. II 9/9 10,4 6 11 6 '4 7 10 „ White II 8/3 6/11 5/9 4/6 9/10 Lynx II 13/3 13/2 8'- 7/3 8,'8 • Marten II 19/- 15/- 12 2 10 - 13/4 • Mink II 11/2 (!/- 5 'I I 4 5 4 4 Musquash . . II 1/2 lOJ Hid. 4/'/. 5;,/. Oil per ton £34 11 £33 5 £33 13 i'.lO <) 1 24 Otter per skin 33/- 27/8 10/3 17/- 23/- Wolf II 14/6 16/6 15/7 12/2 9,'- Wolverino II 21/3 28 8 21 '5 22 ',) 19 9 Salmon, salted per tieree 78;- 87/- 57 - (11 - (!2 - ,, preserved per lb. (iid. 7irf. 71 substance of the observulious made by Mr. Chaki.ks, die officer iu charge of the Department, in reporting on the results of Outtit 1877. Tlie inventory of the Department stood at about i,'9!?,000 at the close of Outfit 1874, and at £110,000 at the dose of 1S7G. In most of the Dejiartments, a very large addition In the amount of supplies sent from England was made in Outfit 1^70. This was not the case in the Western Department. The amount sent in 1874 was £oO,000. A large increase was made in the next Outtit, wlien the amount sent was £Go,000 ; but in Outfit 1870 it was reduced again to £.J'2,000. In 1877 tiie amount sent was .t'37,000. Looking to the amount of tlie inventory during tlie hist few years, and to the amount of goods shipped, \c., the capital absuibed by tlie Western Department has not been much less than £150,000 : at times it has been more. It may bo estimated that the annual charge for interest and London expenses to thi' Department would be £10,OtiO. It is char, therefore, that a sum less than £17,o00 can scarcely be considereil,O00, things had become much worse. The reduction in tho valuation accounts but for a small proportion of the very heavy loss which necessarily ensued. Mr. Charles reported on tho mismanagement of this post, which had caused him the gravest anxiety. He sent a special officer to put things straight, but on tho departure of the latter, the instructions as to prices seem to have been disobeyed. We do not blame Mr. Cii.\Ri Es, who seems to have taken the best steps ho could, but it is very regrettable that ss, — the oil thum ices, tlio with the or hiivo oil Outfit iiistanco lit to the ^c in the ic realised Western loiild hiive imiu'e and lit for the tance of oflieeis of leiii luoro to doubt mount and in accurate "lul t)ut6t9 valuations us years or relation to iiiidini? that irotit. vo profit to not on that jhsequoiit to L'd prices for e heard very n the cost of stricts in the (ix.) in this as in other posts, it takes so long a time before mistakes can be rectified, and loss avoided. Several incidents of tliia kind have most seriously affected the results of the trade of the Wostcrn Department, irrespective of unavoidable misfortunes. The remarks we have made on Fort Simpson apply with increased force to the District of bkeena. SKEENA. Here the amount of goods traded, after deducting sales, was : — III Outfit 1874 .?I5,250 and Eotuma 811, ')00 „ 187o 19,000 ,, 10,000 1H76 17,000 „ 7,000 The disproportion in tho amount of goods traded to returns here, goes as far back as Outfit 1^74, anil it is not surjirising tliat oven in that Outfit, with fair prices, no profit was made. But wo particularly regret to see that tho misnianogemeut continued for no less than three years. Mr. Oiiarlks wrote of Skooiia as he wrote of Fort Simpson. It was visited by an officer speaially deputed, but no amendment ensued. Tlu; Post is now closed with a further loss of $1,()40. It has caused a loss of § 1(5,000 to the Fur Trade since 1874, not to speak of the loss of interest. The ne.\t Posts to which wo have to refer happily give a different result, and we call attention to the fact how even in Outfit 1870 on reduced valuations, tho Returns bear a good proportion to the goods traded. The figures of Bella Coola and Bella Bella are as follows: — BliLLA COOLA. Goods traded. Outfit 1874 S:i,o88 Eetunis ST.ll'J •» II 1875 ;!,2'J0 ,, 1.228 tt tt „ 1876 . . 2,. -,.^3 n 4,314 $14,000 14,000 9,000 urs valued at Valued at the ; but still the that o wrong ed for returns ition accounts auBcd him the parturo of the do not blame Bgrcttalilo that BELLA BELLA. Rotiirns .. Si, 131 l,7.i8 2,1.)!) These Posts, as niiglii be gathered from these figures, give a profit in every Outfit. Goods traded Outlit 1874 .. $2,134 ,, ,, ln7o 1,381 i» tt 1H7G 1,244 MASSETT. At Mussctt, in Queen Charlotte Island, the figures ore as follows : — Outlit 1874 .. .. Goods traded $9,089 Roturns .?I1,491 „ 1875 .. .. „ 11,228 ,, 9,790 1876 12,845 11,090 The results have not been satisfactory. Though an amount of goods valued at $33,000 has been traded in the three Outfits, the profits were very small. But it i.s explained that the trade in this Island has been carried on under exceptionally difficult circumstances for whieh tlie olfieers in charge could not be Iield responsible. At this Post the Company occasionally trade Fur Seals. Inclement weather interfered with .•:cnl-fi»hing, but it will be^een in the iiiore (X.) detnilcd statement that the sealskins were imdcrvalued in Outfit 1876, ns the prices realised by the returns rcuehed ii considerably higher finfuro tlian tliut at which they were valued in the Country Account!'. The trade of 1M77 has been very satisfactory at this Post. At the beginning of the Outfit it had— Qoods on linnd „ were 8Ui)iplieJ Sales wcro uiado to the amount of 88,190 .1,223 S11,I13 !jtl,-100 LouTing 810,012 At tho eud of Outfit lb77 tho inventory ouiounted to .. .. .. .. SS.IOO Leaving for tho Fur Trade 81 ,'JOO Against this amount F\irs were sent valued at nearly $G,000 (actually worth more), with an apparent profit of )j3,biS2. FORT LANGLEY. Nolliing need be said on the small Post of Fort Langley of wliich the transactions appear to be very limited. The profit has not been more than $500 for Outfits 187;j and 1870. In Outfit 1S77 the profit has boon $1,000. The Fur trude is of little conse(iuenee at this Post. The profit arises from the sale of Hay froju the Farm, &c. FORT HOPE. Fort Hope is also a small Post giving in each Outfit a very small jirofit. Its object is liiic that ut Fort Yale — to afford facilities for transporting goods to Inland Districts. FORT YALE. Itiit Fort Yale lias .sliown a progressive profit notwithstanding all fluctuations in jirice. Tho profits huvo boon in Outfit 187 t II II II I8(S II II II I87ti 81,lt)l 2,703 3,218 and the Accounts just received shew a profit of Ji 13, "207 for Outfit 1877. Tlie profit must be madeonthe sales of goods, as tlie returns from tliis Post are quite unimpurtant. Mr. C'llAUl,i:s says, in reporting on the results uf Outfit I."^77, " Fort Yale shows Homo littlu improvement, notwithstanding the general dciiression." Put we shoidd like to understand more fully how the jivofits are made, for the Annual Sales, e.xclu ivo of transport, .tecra not to exceed ^'•'if'OO cir ;jl,OUO, on whicli it cannot lie assumed that the profits stated above aro made. The question arises — arc tho profits calculated in tho transfers Y NEW CALEDONIA. New Caledonia is ono of tho more important Fur Districts in the Western Department. The goods traded average some $:jri,O0(l per annum, and the returns on the country valnalinn about 510,000. The piofits luivo been steadily decreasing. lu Outfit 187-1 they woro 813,300 r, 1875 ,, l,.'-,nn ,1 1870 Loss 5,100 1)11 t/ir couiilvi) idhmtionH. The whole difference is not accounted for by the lower vubuition of Fur, Mr. Chahi.f.s reported previously, as stati.d in tho Accounts given further on, that (xi.) realised alucd in ig of the .'JO !23 100 012 100 900 I, with an ransnctious ISTu and icquencu at certain cluingcs i.i the management should bo carried out, but in reporting on Outfit 1877, when the loss on the countrj' valuations is $0,000, he makes some remarks which we give in full, as they aptly illustrate some of the difficulties in reducing the tariff. The loss is to he accounted for as follows : — "Now Caledonia is exclusively a Fur District. Thoro has boon an uiipi-ooodonted " succession of bad yonrs — not ns rogarjs the qiiantitios of Furs obtaiunl, but iu their " proceeds in the London market. Tho Fur Tariff, \m fortunately, has had to bo reduced " very luatorially year after year in eonsoquonco of this continued decline, while tho trade of " each year was almost over before tho necessity of further reducing tho Tariff, and the " extent of such reduction, could I'vor lie made kuown at tho soyoral roniotn outposts of New " Cali'donia. Even then tho diilioulty did not cease, nor could tho remedy be fully applied " with advantage, because of the extreme unwillingnosa of tho Indians to submit to repeated " roduotiiins in tho price of thoir Furs, and the suspicions raised in their minds by such " repetitions. In many oasos, rather fliau yield to what thoy consider an imposition, they will " go with their Furs to Quo.xuol, Port Kssington ou Skooua Iliver, Fort Simpson, or " elsowhoro, making no account of tho time lost in travelling. But, now tliat Furs havo " begun to riso iu value, it nuiy reasonably bo expected that New Caledonia will sliow a " greatly improved result in future." New Caledonia has been ninst unfortunate during the last few years. A few years back it was the best Fur District in the Western Department, tho Country Accounts sluiwing a pnilit of £3,000 and more. Tliero has been a great scarcity of food in the District, and the Indians have suffered very much. At times they luivc not been able to hunt, and at other times the weather bus been unfavourable for hunting; but there is no reason to suppose that tho Furs ure less numerous tlian formerly, though dcnibtless tho Indians expect nwre for thciu. ta object is THOMPSON'S RIVER. JUS in price. 81, lot 2,703 3,'21H otit must be Mr. CiiAULKS niprovcineiit, )re fully how ccced i.i,OQO made. The 1 Depaitmeut. iitry valuation jli;i,;!00 i,.^nn 6,10(1 or valuation of iitlicr on, that The District of Tiiompson's River appears to havo given unsatisfactory results for some time past. Few Furs are traded here, but the business has not been unimportant, as tile Inventory has amounted to nearly $2'),000, and the amount of goods supplied from > 13,000 tog IT), ((00 It may be said that the Capital employed is $10,000. t)n this tlie apparent profits havi' been in — C)utfit IfiVl $.1,910 „ 1875 ;i,'Ji)0 ,, 1870 3,200 decidedly not a satisfactory protit either looking to the Capital or the risk, for there was at ouo time $7,400 outstanding for debts. Hut in Oultlt 1877 tlie result was vi'iy much worse. Tlu>re was a loss of $o,(>00. Of this, $.'),00l) was wiitlen off in respect of an adviiUni'o in sending hi)rs<'s to Kdmontoii, whivli is of cou>'se (piite an exeeplioiial cireuiustauee ; but even then tho district has ceased to show the moderate jirotit which it sliowed l)efore. \\'e nuain give Mr, CiiAKLEs' own description of tli(> state of tliin;>s : — " Tlio Fur Trade of (lie District lias fallen off gri'ully, and tho otlior irado lias for " Hoine years past bi'ou monopolised, lliroiie-h polilieal eonuoelionH, by the firm of Maiia ami " Wir.so.N, of Kandooiis. 'file setticaieiit tliere is, however, a rising oni', and (lie wlmle " district eaiinot fail to he heiietiled liy the (\'nlnil I'aeide Railway, if carried through it. as " Hoems to bo tlio intention at presonl." This district evidently reiiuires wafeliing. Tlie Inventory was »ery large conipared with the aiiuiial supplii s, and any aeeuniulatii ii of debts here might lead to I'lirlher h)SS08, Tlio business consists in supplying goods to those proceeding to the Mining Districts. (xii.) STEKINE DISTRICT. "Wo liavc still to (leal with two mining districts — the Cariboo MiningDistrict nud tlie Htekine District, the liitior of which has been closed in the course of Outfit 1877, witli a loss of no less than $18,000. The Inventory in Stckino District at the close of 1874 was only >3,400 ; then the business was greatly expanded, and, at the end of 1870, the Inventory amounted to §38,000. The goods sent to the district amount, for Outiits 1874, 1875 and 187G, to $75,000, or, on an average, $25,000 per year. The annual average profit was little more than $8,000, wliile ,$00,000 capital was at one time engaged. The risky and unsatisfactory nature of the l)u^iuess led to the closing of the I'ost ; and the cost of doing it has more thiin absorbed the whole of the profits since 1874, to say nothing of the heavy loss of interest during the last four years. If is difiicult to understand how, looking to the fact that goods were being sold to miners, business yieldin;^- sucli a very poor return should have been so long continued. CARIBOO DISTRICT. The experience of (he Stekino District makes us rather anxious as to the Caribeo Mining District, though the [irofifs there have been somewhat more satisfactory. The Inventory at the close of Outfit 187nl " that there must be rieh ipiartz in Cariboo sliU [icrsevure in the search." U'e have still to comment on the results of the steamers belonging to this Department -the " Knterpriso " and tho " Otter." STl'.VMI'.R " i'NTEUPIliSE." With regard to tho former, the inlormalion is ui fully before the Committee that we nrei3,400 ; imited to $75,000, I S^, 678 ,, 1870 052 While in Outfit 1877 there bus bi'on a loss of $4,0.50. Mr. Ch.\iu.i;s writes : — " Tlic ap])avi'ut loss is represented by tho year's lusnnuice .'?l,838.7r), ami vrilintii)U of "Inventory vahiatidii ?:i.OUO. On tlio iiorthcru route the iSfcamers 'California' and " ' (irappler ' liave eoutiniic d to run regularly, wliil(> there lias Ijeou but little increase of " trallio, and bad it not been for the opportuidty the "Otter" lias bad for making trips to " Now WestiniTistor, her loss would have been even greater." Having (.luimeiited on ninst of the various branches of trade of the Department, we wish to eoneimb! with a few observations on the general aspect of tlio trade, separating exeeptiomil drawb;icl;s. For Outfit 1877 the broad results, as shown by the Country Accounts, may be suuuiuiri/ed as i'oliows : — tiaiii ou Merchandise after deductinir bad del)ts, about Profits on Furs and Oil purdiased at Victoria Profits on Posts — Fort l?upert . . ,, Simiison . . lii-llaCouia I Bella UoUu f Mafisett Lanpley Fort Hope Fort Valu l.esa ordinary loss on Thompson's River rrofita. £1,000 • • ■2, MOO 81,(100 (iOO 1,100 .■i.ooo 1,000 ,000 .■),800 Sill, 100 000 I'rofit onCariboi) Dislriet. , S10,soo say £2,100 2,. 'IOO Profit 1)11 bteamer '• Knterprise," i' 7,000 4..0OO Deduct rimrges and Kepairs £lo,700 ,, Loss on New Calcdoiiia . . l.'iOO ,i ,, ,, sti-'aiiier " ( tiler " 800 0,000 Leav(S3, after having jiaid ov provided as usual for Frciglit, liisumnce, " deproi'iatiou or woar and toar of Steamers, annual licjuidation, charge on eertaiu ]irenu808, " and other charges on the Trade, including repairs and impru. oments, not valued on Inventory." " One satisfactory feature is, that tho gross amount of profits realised for tho Outfit, " is consideiably in excess of that of the preceding Oullit, as well us of 1873, and not far '• short of thiif for 1H75, while several areonnts or districts that yield'd protits in all or either " of those years 'anmng which may bo enumerated Coraox Post, Thompson's River District, "New Caledonia, Stels. lUns, as already explained, more particularly in paragraphs " 11, 11, IH, 20, 2o, '26 and 33, the gross amount of loss sustained in 1877 is unusually high, " exceeiling OS it does that of any Outfit since 1870. Hut it is a satisfaction to know that " some, nt least, of those sources of loss will not again be in operation, and to have renponablo " gronnds for lielieving that a rise in the value of i'urs will soon convert others into sources " of profit as heretofore." AVe trust, with Mr. Ciiaki.es, that tho losses indicated may really be regarded as exceptional, and that we need not fear the recurrence of a similar unfortunate coincidenco, of at least four Pests .showing mismanagement extending over a course of years. Tho Strkino Di3trict, Skcena, and Coniox Post have been closed. Fort .Simpson shows some little improve- ment, but Thompson's River and New Caledonia arc calculated to in.spiro anxiety. The f'ariboo Mining District also retjuires to be most carefully watehod, wliile tlie profits of otir Steamers must also be looked to, as contributing very largely to tlie profitable side of the Accounts hitherto. Tho Department has sent home in Outfit 1877, ratiier more than £'li?,000 beyond what it took from home on tlio country valnations. As the returns will realize more tli.iii their valuation, the excess remitted homo i.< i)roportionately greater. An Analysis of the transactions of the trantfils HTl, 1^1') and lS7t) will be found at page 10. (xv.) NORTHERN DEPARTMENT. Abstract ot' Uio Inventories at the close of Outfits 1876 and 1877 : Goiit'ml Gooils. . Caiuiiliau and Amorioan Goods Country-made ^Vrticlos Country Produce Live 8tock Outstanding Debts Cash Advances for next Outfit Kcjiairs and Improvements . . Fri'i),'lit Articles at fixed prices Ships and Steamers . . Outfit 1876. 8877,560 122,476 29,031 83,360 58,527 102,609 31,086 339,806 30,653 3,093 3,215 122,210 $1,S69,026 Outfit 1877. S79 1,987 113,541 20,645 157,393 51,032 116,279 41,731 183,381 35,258 1,454 3,410 196,518 81,711,634 The reduction in the amount of these Inventories is $158,000 = £31,000. The decrease is greater in the amount of the advances for next Outfit than in any of tlie other items in the foregoing abstract. It will be ob.sorvod that while the Inventories of general Aincricnn and Canadian goods and outstanding debts have been considerably reduced, a large increase has taken place in the amount of country produce, which has been procured either in payments of outslanJing debts, or paid for in goods. The fullowing may bo quoted as some instances of increases in country j)roduoo : — lu MoKenzie's River District there is an increase of 5^5,000 at the close i)f Outfit 1877, owing to the gciuTal scarcity of foud in this District, and the consequent necessity of having more flour on hand than formerly. In English Iliver District the large increase of JS,000 is represented by llo>ir and peiiiicun on hand in the District. These articles are nvjuircd in the District t(> carry on the tran the total amount in the Northern Department stood at $218,600. At the closo of Outfit 187'). t)ui amount was II 1876, „ 1877, 9191,000 102,000 llf.,'279 The rrduotion has apparently been brought about mainly by writing off, but the Coniraittee havo not received adequate explanations on this subject. Till' following is a list of tlie principal amounts of the outstanding debts: — Outfit 1874. Outfit 1876. Outfit 1878. Outfit 1877. IMlllciIlfoli . . . . . . ' 811,793 S26,0;!8 311,247 IJ 9,3S5 Siiskiitilirwau 23,.'i08 38,3;i8 29,790 22,712 Swan liivor 28,020 11,767 4,032 3,838 1,U,' 1,1 Phiio 1,7.11 7,219 2,570 1,467 I'drtiifri' 111 I'raiiii' l«,9ia 10,553 6,053 3,215 Lower I'ort (iarrv 7,21(i 5,018 2,977 4,056 St. Aimu''h 5,031 0,133 3,425 7.41K (ioorffctipwii . . ;il,15fi 15,590 8,351 4,769 ( 'ustoint'rs' .... (12,705 46,685 45,335 9,921 niitstiiiiiliTifr Froif;lits V1.\:>1 0,847 5,477 4.294 111 Outfit 187C, the valuatiiiii of Selkirk Mills was ineliuh'd in the li,st of outstamliiig 'lilils at I''(irt Ciarry, under the head of "Customers," but the j)urcl)aser of the .Mills liavini,' failed to comiilete liis bargain the property has reverted to the Company, and the valuation ol the Mills ("«iI6,800) appears separately upon Inventory. Tlic losses sustained at Fort Garry during the hist four Out Ills, in consequence uf bad cit'bl-. liavo been as follows: — Oiittit 1H74, logs ,, 1875, „ ,, 1K76, ,, „ 1877, „ Total SH,;lsH 9,ii;!2 4,8;!7 3,612 !*2(i,709 Under the head of ".Ships, Sic," there has been an increase of *1|74,000 in Outfit 1877, 111 conseqiii'lice of the valuations of the steamer " liily," the (iianil Rapiil Tramway, and tin; road to Atlialiascii l.amliiig, being placed under lliat head fur the lirst lime. riie following is a eomparative statiiniont of the Inveiilories of gooiN, i.'iic, in hand at the various Districts of tiio Northern Department, at the close of Outfits 1870 and 1877 ; — DlBIHKTS. Athabasca Mclvenzie's River Kn^i'lish Itivir ('iiiiilMTlainl I i rand Hapid I'Mriuiiitun Susliatchewan . , IS TO. »7«, 177 15, 841 28 951 43 7lJ2 133 143 l.-.li 544 Carried forward 3150,718 1K77. S105,453 39,973 41,730 51,198 11,070 127,313 109,709 8519,521 (xvii.; Brought forward Swnn Eivor . . , . Miiuitoba Luu la riiiio Norway Houso . . Island Lako . . • , Sovoru Trout Lako CluirfLiU York I'actory I'ortago la Prairie I'oplar Point Wliito Ilorso Plains Gi'orgotowu Pcuibiria . , , . , , St. Anno's Port Alexander Lu« or Port Garry MLTcInindiso Account Fort Gurry Depot CiistonicrH' Northcin Department — Cii.sh .. St. h'iiiil'.s Agency Steamer " Colvilo" "Lily" " Northeoto " Moutlily Labour llepairs and Iniprovonients Pt)rliif;e la Loehe Transport rsoi'lhern Department — Advaneos ])welliiig House at Fort Garry Grand llapid Tramway (lutstamliu)^ Fni^lit Prd Itiver Steamboat Stock New ( )Hiee.s Steam Grist Mill ]uia(l to .Vtliabasca Landing:; Oiitllt, 1877, 187H 1879 Montreal l)ei)artment . . Cr Cr $456,718 . . $549,521 55,681 43,534 23,990 24,()46 43,282 32,839 39,450 42,078 10,810 13,901 2,005 2,454 2.737 3,544 5,060 7,801 143,214 123,037 45,485 28,689 30,902 12,580 22,150 10,290 22,555 15,592 38,214 24,379 31,592 26,419 7,870 11,756 50,088 44,845 71,407 73,282 201,311 207,710 45,335 9,921 24,450 30,719 28,175 31,000 37,382 31,774 1,009 42,037 38,019 32,341 677 . . Cr. 100 5,2.-)7 8,010 1,413 1,700 109 .. Cr. 272 7,199 5.211 430 21,708 5,477 4,294 21,327 24,327 11,725 10,641 . , 16.80.S 0,901 3;!1,2.")1 131,470 2,117 712 .. SI, 878, 626 SI, 71 1,034 Tlic .sui)plies from England for tliu Nortliorn Department in Outfit 1877 amounted to £5!),377, wliich i.s i,'8o,000 less than the amount of goods sent out in Outfit LS7G. The amount of goods supplied by the Depot to the various DiKtriets in Outfit 1877 was about £100,000 less than in Outfit 1870, whilo at tho close of Outfit 1877 the Inventories show a reduction of only £;!J,000. It follows that the oxpcndituro of goods in the vai'ioiis Districts has been reduci>d. At tho countiy valuations tho Returns of Outfit 1870 amounted to 5^597,000 uKninst S l!)0,000 in Outfit 1877. The latter, if valued at tho prices of 1876, would bo about ,^500,000, and if at tho prices of tho last sales $730,000. Hills drawn on tho Company on account of the Northern Dopartmout for Outfit 1871 amounted to £5,274 68., at compared with £;W,110 in 1870. (xviii.) Tho result of the (ruilo is esliibitcd in the following statement, the Rcturng being valued in the country at 10 per cent, below the prices realised at the spring sales of J 878 — Roturnti. Profit. IjOSH. McKonzio Kivor District $61,272 $900 Atlinbnsca 7l,3;!2 $4,213 Eiiglisli liivor 19,313 3,620 Norway IIoiiso 20,218 19,525 Edmonton 4-l,02(i 1,440 Saskatclu'waii 23,646 43,102 CumbL-rlaiid . . ■14,237 4,785 Swan liivor . . 31,650 12,335 , , Lac la riiiio . . 28,927 4,309 Manitoba 13,304 225 . , Orand Kapids 743 6,802 York Factory 5,917 10,952 Ohurchhill 8,289 5,203 Severn 3,514 493 Island Lake . . 16.593 . . 3,294 Trout Lake 8,505 2,723 •• Portage la Prairie (5,249 16,085 .. Poplar I'oint , . 2,824 ■\Vhito Jlorso Plains 357 1,888 Georgetown , , 744 Pembina . . 2,244 1,994 St. Annu's 51 1,484 Lower Fort (lurry 3,054 3,830 Port Alexander 5,877 1,915 Dcju'it 36,405 Merchanilizr Account , , 13,681 Customers' (bad dcdits'* 3,612 Furs Purchased . . . , 69,392 2,921 Returns of 'I'rado .. 10,4H1 Repairs and Improvements 1,0.) 1 Red River Steamers 31,008 General Charges •• •• 13,704 $490,759 $31,072— Apparent Profits. Nearly 50 °j^ may bo added to the valuations of the Returns given in the foregoing statement, as an estimate of the sale of these Returns. The increase tlius shown will all'ect to the same e.xtent the amount of Profit and Loss of the various Districts. In Outfit 1S77, the NortliiTM Department will prolably realize profits ainotintiiig to about t'Ki.ddO, as compared with ll.till in (Julfit 1870, fo,20y in Outfit 1k7o, and £71),748 ill (Jutlit liST-l, The proent accounts have been alb cted adversi'ly by a scarcity of food in JlcKeiizie'.^ River, Athabasca and York Tactory Districts, liy flie mildness of the winter of lS77-7f<, and by the low state of the rivers whieli retarded freighting o|ierati(iiis and addeil to the expenses incurred iu connection therewith. It will be observed th.it the Saskatelu'waii District shows ii large incn-ase of apparent profits as compared with foiiner l•lltlit^i. The improveiiieiit is due to larger sales of goods having been made to tlie (iovrriinietit. the amuuiil for Outllt 1^77 being S'i">."00. The |ii(.lit (xix.) has also boon increased by the collection of outstandiiij» debts, payments having been made in flour and of h?r produce, and about )»i(i,f)00 profit arises I'rora an alteration in the mode of valuing the debts, which are now placed at their estimated value, instead of being, as formerly, valued at 50 per cent. It appears also that a percentage of profit has been derived by this District on transfers of products to other Districts. The Districts of Norway House, Cumberland, Lac La Pluio, and York Factory may be noticed as showing unsatisfactory results. The apparent profit of Nonrnij House District last year was $1,712. The same District now shows an apparent loss of $ 19,523. The attention of the Chief Commissioner has been directed to the following summary of Norway House District for the last two Outfits : — Dr. Inventory . . Supplies furnished Transport Wages Sundries . . Trofit C. liy Furs traded . . „ Servants Book Debts ,, Supplies to Districts ,, Sales to Goverumeut, etc., cte. ,, Sundries • luveatory. . Loss . . The Returns of Outfit 1877 valued at the taritl' of 1870 amount to $3-1,548, or an increase of about $5,000, by which the apparent loss would be reduced. From the foregoing figures it will bo seen ilint — lu Outfit 1S7(! thr goods traded were $00,000 Transfers and Sales 24,000 Outfit 1870. Outfit 1877. S4G,4i;{ 839,450 .')•}, 5!)9 69,082 •1,2!)5 2,256 6,712 7,351 . 230 2(! 8112,282 1,712 $ii.3,'.)o,'; «jS118,772 Outfit 1876. Outfit 1877. S 14, 1.05 829,416 5,533 5,472 18,fi!)7 . 13,387 5,010 8,259 837 o;!;i 3i),45G 42,078 911,217 19,525 8113,995 8118,772 Leaving for Fur Trade In t )utllt 1877. jrooils Iradi'il wore Sales ami 'rniusl'i r-t 812,0110 S07.i).-)(i 21.010 Leaving for l''iir Trade .. SI "Lie! wliieli produeed *ilO,000 worth less Furs than S'^'OtHI did in Outfit I87(;. Mr. Ross, in his Report dated Norway House, eiilled attention to the niildnes.i of llio winter of 1S77, to the partial failure of the Spring Ihait-. at Nelson's River I'osf, and to an iniprovenu'iit which took plai'e at Kerens Uivei' and (Irand Rapid's Posts. He added "the expenditure of the Outfit was fully one quarter less than that of liie pr, vious Outfit, a redue':d trailing tariff and diminished advances to the Indians having etl'eeted the reductions wliich v.ill now steadily eontinue to be e'feeled in all bianehes of the bu.sines3 from ye.ir to yiar. The sales at the Indian payments in the Disliiel netleil jili.OOO, over three-fourths of tli(> entire amount paid out by the Oovernin"iit, besides $1,()I)0 realised by furnishing provisions." (XX.) The sales iictually nmouutcd to over $8,000 nnd must have produced piofits, and iiotwithf^tandinj,' the .statoiiu'ut ot'tho oiliiTr in chai-fje to the eilect thut Indian advances and l.n ill's in tlie District wore reduced, tho Accounts exhibit an extruordiniiry iiniount of loss. The ligures already quoted do not bi'ar out Mr. Ross's statement regiirdinf^ the rcdiictioii in the expenditure of goods for t)ut(it 1877, but it is (piiti- possible that some mistake in the Accounts lias been made. In uny case it is necessary that a full investigation into tlie matter (ihoiild take place with as little delay as possible. In his Report dated Jimc\ 1S7'<, tho Officer in charge of Ciiinlnylttii'l JUs/n'rl stated that oppo>itiiin traders named Slobart i^ Co. had established themselves in the lower part of the hislriet and had, by a great increase of tarilf rates, secured a considerable portion of the rel urns, and increased tho expenses of tho Company; he added that " i'u' reduction of our liiriirand our endeavours to put u stop to tho old debt system, had without doubt goni' a great way to help them to secure so largo a justice to llie trapping of Furs, nor CDuld ho send runners out to visit them. lie added, "it must be borne in mind that we have had several parties of petty traders to contend against, one of wlmm was as well supjilied with a choice lot of trading gonds as wo were, and as a nuitlerof course a great inany skins were pushed up by him." The Cash Salts were j([),:j59. 'I'iie supplies to Lac La I'luie ])istrict were reduced from $0^,0(10 in Outfit 187(1, to !«i2'J,000 in Outfit 1877, and the Officer in charge had closed the posts at North West Angle an trade and hunts on tho coast. Mr. Fortescuc, the < )lhcer in charge, stated in his report that eve?y elfort was l)eing made with the view of reducing expenses at the factory as much as po.s.sible. The Inventories of Goods on hand show a reduction of *(^0,U0O as compared with those of Outlit 1870. In Outfit 187o the Di'imt Aroiinil at Fort Oarry showed a loss of $5o, •'!■'];$. Morhandme Accnitiit showed a jn-ofit of $()l),!i;}5. After writing off from this account the loss on tho Depot, llio bulance remaining as profit was $11,UU'J. In Outfit l.';7G the Dcput only showed a loss of $3,055, and J/crr/irt«r/iV' Arcuuiit appeared in the balance sheet witli a profit of $5G,3"26 or $53,271, after deducting the loss on the Depot. In (>utfit 1877 the D'lmt Ari',/iiiil at Fort (jlarry appears with a hiss of $.'](), -lO"), and the pnilii on Mirvlidiutixi' Account is only $13,081, kaving a loss of gl2.7'J4 as compared with a profit of $53,271 in Outfit 1870, the (lijfiiciicc being no less than $73,000, in respect of whiih llie Liovernor and Committee have not received an}' explanations. Merchandise Account in Outfit 1870 was credited with tho proceeds of tho sales of goods as follows : — Cash S117,.-)52 Credit or Custumors .. .. .. 101,1(12 IS aj^ainst in Outfit 1877, Cash Credit S-"-'-',-l'Jt S'.IO.KOI 81,(il'i SI 75, MO hiiowing a falling off in the amount of business to the extent of $57,000. AVe have no means of Ubccrtaining hero the average percentage of profit on these sales, but the falling olF in the (xxi ) amount of tho business docs not account for tlio fjrent reduction of profits stated in the balance sheet. Upon this poi4it th( Chief Commissioner bus been requested to obtain and communicate, fof tho information of tho Hoard, full explanations. Tho Di'imt Acrount is even more unsatisfactory than that of merchandise, and shows that the sj'stem pursued at Fort Garry requires alteration. Tho total amount of tho Depot transactions in t)utfit 1876 reached tho sum of g 1,304,794, of which supplies to tho various Districts amounted to $1,144,718 ; while in Outfit 1877 tho transactions wore 5877,993, and tho supplies to Districts JCl 3, 82i). A portion of tho latter amount consisted of additional advances of 2\ per cent, on Knj^lish invoices to cover packing charges, tho bulk of tho amount being for supplies during the Outfit, with freight, duty, and charges added, but of which no details have been furnished. Tho Depot Account is charged with $80,588 for customs' duties, with freight and other charges on tho supplies, and there is an amount of 5-0,217 at the debit of the account for " liilln paid in Lomlun (liin Oiiljil on account of Fort (lnvri/ Depot.'' No corresponding entry can be found in tho Depot Account for Outfit 1870, and wo can find no trace of any entry on the credit side of the account whereby the outlay would he charged to different Districts ; and as freight and duties appear separately, wo are unable to explain tho nature of the charge against which the bills were drawn. This matter requires explanation and it is also necessary that explanations should he made why the charges against the Depot have been increased during the past Outfit. The fcillowini; are some of tho items : — Out tit 1S7(). Fuit (iarry, n. li. Miss SU.HOO Mr.,r. U.McTavibli'siM.ss J. Andorsuii . . . . . . . . . . .'iHO Sfrii's liatiolis .■t.(KHO Kxpi'iisos . . . . . . , . . . 2,'2'.l(i Otliees, etc 1,(17'.) 811, 11.'. (Jultit 1S77. S-j.oUJ 1,1(18 520 ^,716 ;i,')<)0 1,082 SI 1.707 shiiwiiig an increase of $3,000, notwithstanding the reduced amount of tho Depot transactions in Outfit 1877 as compared with 1S76. There is also an increased charge of $1,400 on Servants* ,\ce")unts, connected with the Dejjot, tlie amounts being 510,53'i in 187() and 511,9uS in Outfit 1S77. These increases in tho exiienditure are inexplicable when wo see the amount of supplies furnisliecl to tlie Department in iS7U put down at 5tJ.'<8,S44 as against 51-''''''.C05 in Outfit ]S77. Surely the labour and expense in connection with less than one-half the quantity of goods sliDidd be reduct-d and not iiicreascd, as stated in tho present unsatisfactory account. In a recent letter, tho Chief Commissioner directed attention to tho unfitness of the Company's shop and warehouses at Fort Garry for tho kind of trade now carried on there, and the fact tliat the Town of Winnipeg had been oxteuded in an easterly direction from Fort Garry. Looking to tho results of llie MerehandifO and Depot Account for the past Outfit, he was not, however, pre[)nred to recommend tho Committee to incur tho expense of erecting modern titled buildings for the despatoli of the Company's business on sorao suitable spot wiiliiti the Company's reserve somewhat nearer the centre of tho town. Further enquiries will shortly be made bv the Chief (Commissioner who has been instructed to report fully upon the matter, and, in the event of its being foiiiul that the business would bo improved by the change, he will submit for the consideration of tlio Hoard estimates of tho cost of new Iniildings. lie bus also lieen instructed to make arrangements as soon as possible lor separating the business of the l)ei)ot at Fort Garry and the .Accounts of tho Northern Deiiartmeiil, from Red River District, and placing the Depot under tho charge of a competent olllcer, who will also superinteiul iho Accountant's Department under instructions direct from the IJoard or the Chief Commissioner. (xxii.) The Jiid Hirer Ouljiosta which last year resulted in ii loss of $0,000, now show protitb amounting to $25,000, the improvement as noticed ut page IG of the accoinpiinying lleport being most marked at Portage la Prairie. Tlio Capital employed at these Stations has been considerably reduced during,' llie past Outfit, and it is proposed to withdraw from the postN of Poplar Point and 1st. Anne's, the Inventories of which at the close of Outfit 1877 amounted to ^IJ.^.OOO. Tlw IM Rirrr Htciiiiirx show a profit of $31,06^ in Outfit lf<77 as compared with $21,108 in Outfit ISTO. The Company's interest in these b jats valued on inventory at $2 1,;J27 will shortly bo represented by $50,000 Stock in the St. Paul and Pacitle Railway, possessing u lease uf the Pembina Uranth, by which through Railway communi<-ation is now secured between the United States and St. Boniface, near Port Garry on the opposite side ot the lied River. )rotiU Icport 'a, the SOUTHERN DEPARTMENT. (xxiii.) 1 with • 1,;127 billg u I 'cured lu Ktid £in,r.44 5.924 H80 1,0!)H 46 ;iR5 i'4M,il77 Abstract of Inventories at the close of Outfit 1877 : — Europoan Qoods Couutry I'roduco CiiUHtiiifj; Vesaols liivo Stock Cash Advances for next Outfit The Inventories at the close of Outlit 1877 show a reduction of alout £0,500 as com- pared with those of the previous Outlit. A largo reduction, however, was made in the amount of tlie supplies fnim Kiii^laiid — i.'lH.TU,') huvinj^hoon sent in Outfit 1870, and only £0,327 in 1877. A part of tliis reduction is due to the fact that the post of Ilrunswick lias been trans- ferred to the Montreal Department on account of its being now more easily supplied from that quarter. Tlio supplies to Brunswick I'ost in Outfit 1870 aniiuuted to about l'l,000. After making allowances for the transfer of that post, the reduction of the .shipments to the Southern Department in Outfit 1877 would bo about £8,000. At country valuations the Returns of that Outfit amount to £28,820 as compared with £28,619 in (Julfit 1R7((, leavinj; out Rruiiswick Post in both instances. It sliouldbe explained that ill consciiueu('i! of a inisuudirsttindinj,', a porlion of tlio Southern Department Returns for Outfit 1877 has been valued at higher rates than the Returns of the other Departments. In the list sent from London, the column set apart for the finer Furs from Whale River, was adopted for the Returns of the Department. The present valuations in the accounts are therefore higher than those of Outfit 1870, which, it' adopted, would j,'ivo £27,877 for the Returns of Outfit 1877.- .\t the reduced valuations, vi/.: — Ten per cent, under the prices ruling at the Spring Sales ol l.'S78, tJie Returns of the Snulliern Dciiaitineiit would amount to about t'iC,00(). The following statement shows tlie result of trade for the past two Outfits, mode up in count rv valuations. OVTKIT 1876. 01 TFIT 1877. RKTInKS. Profit. X ». .1. 3.1J3 5 2,568 5 1,753 6 2 l.',8 10 9 539 13 8 1,U9 13 8 liOSa. 1 TlKTCnNS. I'ROIIT, Lo.fruiiiissii Uivrr Difitrict licncml Charges £ s. .1. S,233 8 9 S,0'J2 1 2 6,990 U 11 2,233 13 I 703 11 10 2,091 7 9 3. 166 6 4 £ K. il. .1,717 IC 9 22.-, 7 I 83 12 267 19 3 .e s. (1. 9,787 12 9,;!7-l 13 .0 3,103 9 3 2,342 11 11 807 19 6 :i,34S 17 6 £ ». .1. 5,300 6 4,7.->2 6 3 178 4 9 194 2 9 968 11 8 11,383 11 6 £ ». <1. 1,063 II 6 118 15 2 '>;t 10 ti 21 1 3 -1 J0,744 6 10 9,622 9 2 4,204 Id 1 0.327 14 1 28,825 3 7 1,477 3 6 Southern Department -Api arcul tiiiin 9,916 7 11 8,682 8 2 11,393 11 5 ; (xxiv.) The actual profit on the trade of the Southern Department in Outfit 1876, was £7,300. Tlie capital employed in the Dopartraont was about £70,000. Tlic charge for interest, and a proportion of the London expenses, are estimated at about £6,000, so that there was but a small balance of profit from the Department last year. With a reduction in the expenditure of goods, an improvement in the Country Accounts, and the recent advance in the prices of Furs, the profits on the trade of the Southern Department may bo estimated at about £23,000 on Outfit 1877, subject to the charge for interest and London expenses. Enstmain Di^'^rict shows a great falling off in the quarfity of White Foxes, which were very abundant in Outfit 1876. Mr. Parson in liis Report to the Chief Commissioner alludes to some di.scontont amon^ the Indians at Eastmain, in consequence of their hearing that liigher tariff rates had been paid in some neighbouring Districts. The officer in charge was endeavouring to arrange the matter v ith tho Indians of Faslniain District which as a rule has proved a valuable one. Furs to the amount of £'2,312 were traded at Moose Factory Dej)ot and at (he incieascd value of these Ketunis, tlie Depot would show little if any loss. General charges ut the Factory were £148 in Outfit 1877, as against £221 in Outfit 1876. With the exception of Outfit 1876 tho Southern Department trade has produced a very satisfactory return on the capital employed. The average profits from the Department for Outfits 1870 to 1873 were £30,000. Hitherto there has been no opposition in tlie Southern Department, and the result of its trade has been mainly uffected by tho lall in the prices of Furs in Kurope. It should, however, be borne in mind that several Districts in the Montreal Department have been maintained for years past at a loss in consequence of tho protection which they have afforded to the Southern Department. The \iiiprontable posts to which reference has been nuulo, are Itersamis and Mingan, in tho Uulf of St. Laurence, and the Districts of Teniiscaminquo and St. Maurice, which will be noticed under the head of the Montreal Department. MONTREAL DEPARTMENT. (XXV.) Abstruct of Inventories at the close of Outfit 1877 : — Eiiglisli Goods Cauiiilliui ,, Ijivo Stock Outstiiiiilinjjr Debts Cash . . . . . . . . . . , . . . liuililiiigs and Iiuprovomonts lloats Advancos for next Outfit £20,903 H,252 87t 4,214 575 2,690 352 22,979 £6r.,841 This amount is £I0,G22 li'ss than that of the Inventories of the Montreal Department at tlio close of Outfit 187G, which wore £7,000 below those of the previous Outfit. In every item a reduction has been efiected during the past year, and in consequence of the close of the business ut Fort William in Luke Superior District, the capital employed in tlie Department will bo further curtailed. Advances for next Outfit include goods purchased in Canada for Districts in thi; Montreal I)e[)arlment, and also the ^"o^thern Department. These goods may either be on haiui in Montreal or on the way to their respective destinations. Till' tblhi^inj,' is a list ol the outstanding debts at the close of Outfit 1877 : — Fori ^\'ilUllm Miiliipiciitoii Ti'miscaiiiinnue (Ittawii ItiviT Outiiosts SagucuMV Kliri(;an Ksi|iiiiuaiiv liay Sa,t!(>2 815 4,382 4,037 1.3115 2,170 4,817 #21,209 The amount of ji4, 500 appears to buvo been written off forbad debts in Outfit 1>*77, Advances to Indians not repaid within an Outtit arc not valued in the Accounts. The shipments from Kngland for the Montreal Dopurtmeut in Outfit 1877 amoimted to £!»,S()il, as compared with iiH.tJOO in 1870, aiTd i;i7,000 in 1876. In the following statonicnt of the Result of Trade for Outfit 1877, it will bo observed that the Heturus are valued ot ^175,481. If, howovor, the some valuations wero adopted m (xsvi.) those of the previous yeur, the amount would bo increased to about $200,000, .showing a decline of §3"J,000 when compared with the Returns of Outtit 1S7G. IIESULTS OF TRADE.— MONTREAL DEPARTMENT. OUTFIT 1877. Returns. Profit. Loan. lloatroal .\geucy . . i?3,772 99 Fort William $1,914 25 . . 7,933 71 Xii>i;ron 12,301 78 $1,003 48 Micliijiitoton 2:!. Oil <;."> 6,983 98 New I'.ruiiftwiLk 8,3;57 88 1,982 17 I.uki' llurou 1-.,011 08 2,000 03 Abitilii 1.5,42-1 .J8 2,147 93 Tc>iiiisoamin(|UO 19.07.5 04 .5,738 22 (.)tta\vii KiviT 2,199 ;i9 318 94 Saint S[aiiri;e 11,889 (il , . 6,5.36 79 Sajruouay ;!,9.-).i 02 3,507 02 i'eisaiui!* 8.i;i;i 27 5,8,I81 21 17.0 l.i 31) 4.'!, "Ill* 01 .\ppaniit Loss uu the tranBactions of Outfit 1877 20,720 28 $13,709 04 $13,709 (il 'I'lie apparent los.s of $'J(i,7'Jfi wciulil be reduced to $l,7Ut) by adoiitiiij,' the valii:iliuiis if Outfit 1870, the Accounts of which exhibited an ai)pnrent lus.s of i?.3,;i77. Tliu actual result of the trade of the Montreal Depiirtiiuiil for lliat OuUll was a Ic-i.. () £4, M 12, besides interest on the Capital, and a pinporiioii (if London expenses, eslimaltd ini;otlier at about £12.000 per annum. In Outfit 1S74 tlie b)S8 amounted to £1,000. In Outfit 1S7.") the loss was £t,''J00 in addition to interest and Lundon cliaii;. ^. jiuiiii;? tie last three Outliis the Company Lave lost about £46,000 by the trade of tlie MMiilreiil Iiepartnient. In Outlit l.'<"7 the result may be expected to show somo iniprovenu'nt. A portion of the relurnsdfthe ])(]);irtnient was sold iatt uulumn, and tlie reiiiuinder at the reciiit sales. Abiiut 2.J per cent, should be added to ono-half of the valuations >;iven in the Result of Trade, iiud abjut 5i» jicr cent, to the renuiinder in estiinalinp the result of tach Distrii't «eparatelv. The profit on the Dep.irtnieni will probably be about £ |ifiiiiipt ' iMhs.ielions. Mr liardisty will take cliargr of the posts as soon as be can be relieved iVoiii I'ntt Williiim. If the result of the trade proves unsatisfactory after a lair trial, llic ymsls will have to lie elosid. The losses of the last few years at the (iiill' ]iiisls have e.Ncceded the prolits deriveil Ifoni the Districts wliicii tlicy hive piutected in the Southern Dep;irtinenl. Two Districts, Xi'W llnilHwicU and .Miilibi, which I'ornirily liclmigi'd to the Soulhern Ili'[mrlnieiit, appear in the books of the Mdiitreal Mipailnieiit with appaieiit prolits amounting to Si.""", wliicii will bo considerably augmentoil by tlio increase in the sale [iiicc of llie lulurns. llllOSdS's li VV llol SM, • Ajnil, 1S7!). We jirocced to nullce the gciUTwl results of the trade of the tlitreient Deparlmeiits fir ••ullits 1.-^71, IS7J and 1870. . The nccoinpanying Reports upon the Fur Trade Accounts now submitted to the Hoard, coutuin various recommendations which liave been the subject of correspondence with the Chief Commissioner since we commenced our labours. The following Resolutions were passed at the last Meeting of the Council of the Nortlieru Department, giving eftect to some of these representations : — " Tliat the attuiitiim of OfiiciTS ia particularly diroctoil to tlio amount of Goods expended in " thoi'ur Trade, wliicli rrqiiires as much considoratiDU as tlio amount of Upturns. It must be " apparent that, althougli the Ilotums of any particidar Outfit may show an increase in " (juantity, tluit incToasc may liavo bi>on i)l)taim'il after so niudi larger an ('X]ipnditnrc.'i)f Uoods, " as to Icavo a result uot so favourable as that of other years when the Iveturus wore less " in (juantily. " Jt is necessary that this important feature of Hio business should be borne in mind, and " the fact nut lost sij^lit of, tliat the Trade is more iulluenccd by tlie ([uuutity of (.Joods expended " in it, than by any otlier cause, and that if traded too expensively, tlie larj^er the amount of " tlie Ki'tnrns of any one year the heavier must be the loss. " Ollii , IS in charfre of Districts are hereby instructed to furnisli iiereailer along witli the " Annual Accounts : — " Statements of the Profits on transactitaiiccs would be overlooked, and diniculties might arise in thecvent of the ledgers being produced to prove a debt. On lluMilher hand the pieseiit system of writing olf does not stale ilu' charge falling against each Oiillii for had debts. In Ouifil ISTll, no less a sum than jsO-l,;tl8 was dcdiicled in the Inveiiiories from the leilger am(unitg of oulstaiuling debts in the Northern Deparinu'iit, while in a Nlaleiuenl subsc(iiienlly prepared at l'\u't (Jarry it was shown llml the ^uiuii! iliunjo against Outfit 1S7(), for bad and doubtful debts in the Northern Department was only $1,1) Ki, the dill'ereiice being accouiilod for by provioiia reductions. In Outfit 1877, tho amount deducted in the Inventories of tiie Northern Department fur bad and doubtful debts is §28,827, and the Accountant has ascertained, after a protracted examination, that the Outfit has sustained no loss whatever on account of those debts. On tho contrary, it appears that tho deductions made in t)iitfit 187*!, in respect of tho outstanding balances transfeiivd to Outfit 1877, have exceeded the amounts written ott'at the close of that Outfit by is^^O'.). In future, Officers in charge of Districts should be instructed to report tlio amount of tho loss sustained each Outfit from bad debts, in sending forward their accounts. We have to draw the attention of the Committee to an Important change which is now bi'infj miide at Fort Garry, as regards the separation of tho Depot at that place, from the business of Red River District. The change was adopted after full discussion with the Chief Commissioner, and it is alluded to ai page 21 of the iicccmipanying Report. We are of opinion that when tho necessary arrangements are completed, and a properly qualified Ofli(x>r is placed in charge of the business of the Depot, and of the accounts of the Northern Dipaitnicnf, a more correct and satisfactory system will be adopted, and none of the difficulties alluded to in the Report on tho Depot and Merchandise Accounts should be experienced. Upon the subject of these Accounts the Chief Commissioner in a recent letter has given the following explaiintious : — " Outfit IHTfj. — Fort Garry Depot and Merchandise Account together showed a profit nt . — Merchandise Account showed a profit of . Depot a loss of SoG,326'"'. $;3,Uo5'''', " Tlie light Loss on llie Depot Account this t)utfit arises from the charge made by it for handling ilie Imp'iriations of the year which amounted to much more than previous years; uliile, the rate charged in Outfit 1870 having, been found insufficient to cover expenses, an increased rate was adopted for Outfit 1876, say 5 per cent., wliich on the total Importatiiins from Loi\dnn (S588,S4t '), besides elsewhere, valued at cost landed at Fort Garry, and anioiniliiig to *il,(l!)0,2;i7iV.] ])roduced «s.''i4,olli".".., wliich forms the charge against .sundry Accounts in Fort Garry DepAt Outfit 1876 auio\inting to §l,14},748oV,.. The larger tlic linj)orfations from abroad the greater inrcmio derived by the Depot from tho charge ot' handling. Tho .Sak>9 in ()\ittlt 187(1 uiiiounted to a much larger sum than tho.se of Outfit 1877, resulting in a larger margin for profit, while the increased competition in traile, in conseiiueiuc of flic growth of tlie town of Winnipeg, affected Outfit 1877 injuriously, both a-. H'gards prices obtained and (juaniity of goods sohl. "These exphmati(ms arc submitted in accounting for tlio difference between the pmlit of $53,000"" in 187tl, and the loss of $23,000 "' in 1877. " Outfit 1877 —The charge against the Depot of $20,217"" for liilU on London was caused l)y our (lash Ihdance being low at the time a demand was made on us for freights iind the Mill was given to tlio Transportation Company at that value instead of casli, uiiil formed a cliaigi- for frciglit similar to tho casli entries. i'liijierly siieakinu', tlie eiili\- should have read Noi'tlieni Department Kills fhr frriij/it, and would then have explaiiicil itself. "In Outfit 1M77, when u largo portion of the inland suppliea was provided by and packed at Fort Garry, at greater expense than would have been the case if done in London, the amount imported from which place was only JlOOjGOo* at London cost and the charge miido on goods packed at Fort Garry being only 2J",/, instead of >">',, as in the case of Im- portations from liOiidon, no charge being made on Country Produce supplies, such as Flour and I'emican, the total chiirge for handling made by the Depot amounted only to $17,47-1 MM, against $o4,ol It"') in 1876, which consequently affected the amount unfavourably, resulting in a loss of gJitiilOS"". The apparent increase in the charge against the Depot arises from llie fact that iit the close of Outfit 187G, the date of taking Inventory was anticipated by three mcmths, to enable the accounts, which had greatly swelled in bulk, to bo completed in proper season, thereby resulting in Outfit 1870, as far as Fort Garry was concerned, being shortened to a term of niuu months as against twelve months in 1877. " The Inventories at the close of Outfit 187H, which have been carefully taken, are being now put in shape, and when completed may, perhaps, assist us in discovering any error in the Inventory at the close of Outfit 1877, should such exist." We cannot say that wo consider the foregoing explanations entirely clear or satisfae.tory, and it would api)ear that the imperfect mode of keeping these accounts has rendered it impossible to exhibit a thoroughly plain statement of the case, but the reforms introdueed ought to preclude any such difficulties in future. ^Ve find that the writing off from the valuations of Ships and Steamers has not been carried out upon a correct principle. The deductions have been maile from the reduced valuations instead of from the original cost of the vessels, and it will probably be found that in consequence of this system, the Steamers " Enterprise " and " Otter," and the Ships sailing from London, stand in the books at amounts which exceed their actual worth. The difficulty now arises that largo immediate reductions would atfect the Fur Trade profits in a manner not entirely equitable, as new interests arise each Outfit by fresh !i])pciintmeiits of officers, but the system ought certainly to be discontinued, and as a preliminary measure the Committee recommend that the percentage should in future be reckoned on the amounts now standing in the books against each Ship, and not on a progressive reduction from these amounts. Statements should at the same time be prepared for submission to the Board, showing the exact position at the present time. We further recommend that, looking to the terras of the Deed Poll, which provides that no vahialidii shall be placed on the Company's Posts, stations, or trading establishments, e.\ce|>t for actual outlay on account of the trade, expressly sanctioned by the Governor and (\)mniittee, repairs to building should in all cases form a charge against revenue and should not, except under special cases of extensions and improvements, be valued upon Inventory. We recommend ul.so that o Committee be annually appointed to examine and report on tlic Fur trade accounts of the various Departments. GKOROK J. GOSCIIEN. JOll^' UOSF. KDWD. HAMILTON. Hidson's Hav IlotSB, LoNiio.N, ,/)(///, 1S7!K