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Ordered, by The House o( Coumioiis, lo be I'rinled, August 1853. 7bS-L "■"■■P ■■■ "f^' [ 2 J SCHEDULE. "I '■' •I VonlMr FROU WHOM. Governor Douglu to the Duke of New- cutle. The Duke of New- caatle. F. Peel, Esq., m. r., to R, Taylor, Esq. Date and Number. 1863: 11 April (No. 1) 16 July - (No. 5) 30 July 8 IT B J I C T. With cony of Proclamation declaring the Rights of the Crown with re- spect to Gold found at Queen Charlotte's Island. Regulations published, showing the terms on which Licences authorising the search for Gold will be issued. In reply to the foregoing Despatch, and conveying approval of the Fro- clamalion and Regulations as re- ported. Declinmg to grant a Lease of Miningr Land at Queen Charlotte's Island. MiMOHAWDUM of Proceedings of the Hudson's Bay Company with respect to the Searching for Gold in Queen Charlotte's Island. Page. i [ 3 J qORRESPONDENCE relative to the Discovery of Golk in Queen Charlotte's Island. :j5::2a!--. (No. I.) — No. 1. Copy of a DESPATCH from Governor Douglas to His Grace the Duke of Netccasile. Victorir, Vancouver's Island, 11 April 1853. My Lord Duke, (ReoeiTed, 7 July 1853.) I HAVE the honour to transmit herewith copy of a proclamation which I lately caused to be issued at this place, declaring the rights of the Crown in respect to gold found in its natural place of deposit within the limits of Queen Charlotte's Island, and forbidding all persons to dig or disturb the soil in search of gold until authorised in that behalf by Her Majesty's Colonial Government ; and also a copy of the regulations since published, setting forth the ternis on which licences will be issued to le^^lise the search for gold, on payment of a reasonable fee, the conditions being nearly similar to those prescribed by the Governor-general of New South Wales on the discovery of gold in that colony. The most important difference is a reduction of 20 s. in the licence fee, which I have fixed at 10«. a month. The reasons which led me to consider the expediency of that reduction were, in the first place, the fact that the true beds of gold on Queen Charlotte's Island are yet unknown, and the returns have been consequently small and uncertain, and obtained at much labour and expense ; and secondly, because there wiU be great difficulty in collecting the dues against the feeling of the miners, and it is therefore advisable to make them as moderate in amount and as easy as possible in the mode of payment, at least until mining becomes a remunerative employ- ment, and there is proof of the extent and productiveness of the gold deposits, when the fee may be gradually increased, in such a manner, however, as not to be higher than the persons engaged in mining can readily pay. I hope that those measures may meet with the approval of Her Majesty's Government, and that I will soon be favoured with your instructions on sudi points as your Grace may consider necessary. No. 1. Governor DoueiRt to the Duke of Newcastle. II April 1853. I have, &c (signed) James Douglas. Enclosure 1 , in No. I . PROCLAMATION By his Excellency >/amu Douglas, Esq., Governor of Vancouver's Island, and Lieutenant- F.ocl. 1, in No. 1. Governor of Queen Charlotte s Island and its Dependencies, &c. &.C. Sic. Whereas by law all mines uf gold, a id all gold in its natural place of deposit within the colony of Queen Charlotte's Island, whether on the lands of the Queen or ot any of Her Majesty's subjects, belong to the Cro'vn : And whereas information has been received by the Government that gold exists upon and in the soil of the colony, and tlxt certain per8on» have commenced, or are about to com- mence, searching and digging for the same for their own use, without leave or other authority from Her Majesty : Now I, James Douglas, esquire, the Governor aforesaid, on behalf of Her Majesty, do hereby publicly notify and declare thai ail persons who shall take from any lands within tlie said colony any gold, metal, or ore containing gold, or who shall dig for and disturb the soil in search of such gold, metal, or ore, without naving been duly authorised in that behalf by Her Majesty's Colonial Government, will be prosecuted both criminally 788- 1. A 2 ""d I iimi»i ■I III V. icl. 'i, ill Nil. 1. i\ No. 2. I he Duke of Ntwcastle to Governor Diiu H) July 1853 C'as. I No. 3. F. Petl, Esq. Rich. I'lijlor, ■;o July 185 >, to Ksq. I ^^ 4 CORRESPONDENCE RELATIVE TO THE DISCOVERY und civilly, ng the law nllowii. And I further notify and declare, that such regulations as may be found expedient will he preparet! iind published, setting forth the terms on which licences will be issued for this purpose, on ..he payment of & reasonable fee. Given under my hand and seal at tho Governmei.t Office, Victoria, this '26tli day of March, in the year of our Lord One thousand Right hundred and Fifly-threc, apd iit the seventeenth year of Her Majesty's rei};n. By his Excellency's command. God 8ATF. THE QUF.KN ! James Douglas, Secretary. Enclosure 2, in No. 1. Government House, Victoria, 7 April 1853. WiTR refere. o the proclamation issued on the 26th March, declaring the rights of the Crown in respect to gold found in its natural state of deposit within the Islands of Queen Charlotte, his Excellency the Lieutenant-governor has been pleased to establish the folluw- ing provisional regulations, under which licences may be obtained to dig, search for, and remove the same :— 1. Prom and after the first day of April no person will be permitted to dig, search for, or remove gold on or from any lands, public or private, without first taking out and paying for a licence in the form annexed. 2. For the present, and pending further proof of the extent and productiveness of the ^olj deftosits, the licence fee has been fixed at 10 s. per month, to be paid in advance ; but it is to be understood that the rate is subject to futme adjustment as circumstances may render expedient. 3. The licences can be obtained at Victoria, Vancouver's Island, until a commissioner is appointed by hi<t Excellency the Lieutenant-governor to carry those regulations into cfTect, and who will be authorised to receive the fee payable thereon. 4. Rules adjusting the extent and position of land to be covered by each licence, nnd for the prevention of confusion, and the interference of one licence witJi another, will be regulated by the said commissioner. James Douglas, By his Excellency's command. Richard Golledge. (No. 5.) — No. 2. — Copy of a DESPATCH from His Grace the Duke of Newcastle to Governor Douylas, Sir, Downing-street, 16 July 1853. I HAVE received your despatch (No. 1.) of the 11th April, transmitting the copy of a proclamation which had been issued by you, declaring the rights of the Crown with respect to gold found in Queen Charlotte's Islands ; and also copy of the regulations afterwards published, setting forth the terms and condi- tions on which licences would be granted by the local government to st irch and dig for gold in those islands. I have to signify to you my approval of the terms of this proclamation, and of the regulations you have issued on this subject. I am, &c. (signed) Newcastle. — No. 3. — Copy of a LETTER from F. Peel, Esq., to Richard Taylor, Esq. Sir, Downing-street, 20 July 1 853. I AM directed by the Duke of Newcastle to inform you, that your application for a lease of mining land in Queen Charlotte's Island, on the part of Mr. A. Easterby, and certain gentlemen associated with him, has been a long time under his consideration, because he felt bound not to decide upon it without taking into view the general questions raised for the decision of Her Majesty's Govern- ment by the gold discoveries in that quarter. » 2. I am, OF GOLD AT OUEEN CHARLOTTES ISLAND. 5 2. I um, howfver, now to infunn you, that liis Grace must decline to grant the lease applied for. 3. I am to yUitv, in the first instance, that although his Grace by no means regards priority of discover)' in such a case as entitling to a grant of this description, nor, on the other hand, would l)e disposed to refuse it on the mere ground that such priority was not estaldishwl, yet as it is advanced as a claim in the present case, he nnist ohserve, that it appears from the accounts before him, that the iniet specified on the part of Mr. Kasteriiy was visited b)- one or more vessels of the Huds(m's Uay Company in the summer of IH.'il. It ai)i)ear8 also that a quartz rock containing gold, which, as far as the general description given by Mr. Hooney enables it to be identified, must he the same as that observed by that gentleman, was discovered in one of those visits in August that year. 4. But I am to add, that since your application, intelligence has been received of the issuing, by the Governor of Vancouver's Island, of a proclamation, autho- rising the search for goUl in Queen Charlotte's Island, on terms similar to those in use in the Australian colonies. This proclamation Her Majesty's Government has sanctioned, considering that, on the whole, this system is likely to be, for the present, the most exi)edient, if the discovery should turn out more valuable, and the danger to be ai)prehended from the natives less serious than recent accounts would lead them to suppose ; and they do not consider that it could operate conveniently together with that of leases of the gold producing hmd. I have, &.C. (signed) Frederick Peel. < — No. 4. — Memorandum of Proceedings of the Hudson's Bay Company with respect to the Searching for Gold in Queen Charlotte's Island. On the 17th August 1850, Mr. Douglas writes that Mr. Chief Factor Work had reported to him, that the natives of Queen Charlotte's Island had discovered gold on the west side of the island, near I'.nglefield Bay and Cape Henry, and that an Indian had brought a specimen to Fort Simpson. Mr. Work dispatched Pierre Legarr6 and a party of Indians to the place in question, with instructions to examine the gold district. On the 24th February 1851, Mr. Douglas writes that Mr. Work reported that Pierre Legarrd had returned without having succeeded in reaching the gold district, owing to the jealousy of two influential chiefs, who i)revented him. He discovered that there is a clear passage from Skiddigat on the cast to Engle- field Bay, on the west coast of the island. Mr. Work had been unable to visit Queen Charlotte's Island on account of the stormy weather, but had received from Indians two pieces of gold, nearly pure, weighing 4 i and 1 \ ozs., and a piece of auriferous quartz, and he pro- posed to send the steamer " Beaver" to the gold district about the end of April, when the weather is expected to moderate. On the 6th August, Mr. Work repoi ts as follows : — ■ " Dear sir, " Fort Simpson, 6 August isr) 1 . " Deeming it of the utmost importance that all the information that could be collected relative to the gold mines in Queen Charlotte's Island should l)c com- municated to the Honourable Board of Directors as soon as possible, and the return of the " Una" being the only conveyance to Victoria before the steamer goes down in the Fall, I determined risking a voyage in a canoe, and accord- ingly started on the 13th May, with a crew of six men, all that could be well spared from the fort, four Haidai half-breed lads and two Indians ; arrived safe at the island, crossed then by Skiddigat Passage, Cartwright Sound ; proceeded along the west shore to Englefield Bay, at the south end of which the mine is situated ; remained two days examining the place, and made four blasts in the rocks, and returned here on the 2yth, sifter an absence of 17 days. ^Ve narrowly 788 — I. A 3 ci-caped No. 4. Memorandum. 11 CORI{F,SI>ONDRNCF, RR[,ATIVE TO TIIF, DISCOVERY ?! pionpcd bpiii^ Hwnmpcil, nixi nil lost, wliiU; pnRsing nlong the oim'II connt from rnrlwriglit's Souml to llic mine. " The cimop not being suitable or safe to examine the access to the harbour, the steamer " Henver," linving returned from the north, was, in conformity to yotir instructions to Mr. Chii-f Trader M'Ncill, sent off for that purjxjse with Mr. C. T. M'Neil! and five additional hands on board to carry out your instructions. lie took the SSkidiiigat Passage, but when about two-thirds across, the water was found shallow, and the channel narrow and intricate for about two miles, so that it was deemed unsafe and imprudent to proceed ; and they retunu'd here tin- 'i"th .Inne, being absent IT) days. It was unfortunately neap tides ; bad it been s])ring tides they would have got through. " In order that the access to the harbour miglit be nscertaincil, and no d«'lay ari.se should any vessel with a jjarty be sent there, the " Una," C'aj)tain Mitchell, sailed from Tort Simpson for that purpose on the Kith July, with Mr. (Jhicf Trader M'Ncill and myself and eight additional hands to strengthen the crew, and passed round the north end of the island. Having unfavoundjle winds, we only got into the harbour the fourth day, when we remained five days, part of the time detained by calms and head-winds. During this time, (.'ajitain Mitchell soundc«l the harbour, and another one close by it; ami I furtlier examined the mine, and ascended about tw<>-thir<Is the height of the mountain, being then stopped li) rocks difiicult to ascend. We then towed out of the harbour, jmishciI romvl the south end of the island with baftiing light winds, making slow pro- gress, and returned here ad instant, being al)sent \H days. " \\ here the gohl is found e.\tcnds Hi yards along the bench, and six yanls from above high-water mark, or rather down into the sea. A black or grey ro(!k all along the shon*, and also up on the mountain, with here and there a little quartz ; at the mine a vein of (|unrtz, eight to 10 inches thick, runs through a point of the grey rock. From the end of this vein, a little ore has been obtnined ; some has been also found in the grey rock ; but the most of what the Indians have got was found among the loose stones, and in the oj)en seams of th»' grey rock, mixed with loose sand and gravel, and the largest pieces farthest down below high-water mark. 1 made two blasts, one at each end of •' " ' two blasts in the grey rock, but found nothing but small specks of gold r. I send i*iH'(inicns of the rocks; also some pieces of the rock high up In iiountain. 'J'he appearance about the mine indicates that a slip from the nioimtain has taken place at some former period. Most of the gold found appears to be travc lied. My belief is, that tliere is more where that came from ; it could not have been thrown up from the sea. " Sixty and a half ounces of ore are now forwarded ; besides which the Indians had two pieces that could not be obtiiincd from them, bit at an enormous price ; the larger wciglied I lb. II oz., the other being about i oz., both nearly pure. These, w if li wlia» wtre sent formerly, Goz. or 7oz., will make altogether 99 oz , found in the small place above stated. " Tlic country is covered with wood, very rugged; the hills, estimated at "00 to 800 feet in height, rise abruptly from the water-side all round the har- bour. A suitat)le sif«> for an esfablislunent would i)e difficult to find. " The harbour is easy of access ; but the swell, depth of water, and scarcity of anchorage re(|uirc a free wind to go in. A sketch of the harbour by Mr. Nutt, second officer of tiie " I'na," and a sketch of Skiddigat's Passiige by (Jap- tain Stuart, will give you a good idea of these places; and Mr. Chief Trader M'Ncill will be al)le to oplain it. " This is all the information we could collect. Should the company decide on forming an establishment to profit by the gold, which it is firmly believed is to be found in that n gion, a well-mnnned vessel, together with a sufficient strong exploring party, say not fewer than 1 5 or '20 men, would be required, the vessel to remaii\ at the most .suitable points for the land party to fidl back on. It might probably recpiire two or three months, perhaps more time, to effect the object. " In the event of an establishment being formed, some potatoes ar.d supplies of lish might be obtained fiom the Indians; there are no other resources, so tliat all supplies will have to be imported. " The Indians of Kith Kait village, entrance of Cartwright's Sound, and of CasMiwan village, north side of Kngh'field Bay, I think arc not over from 100 to laO men in number. They are savage marauders, constantly connnitting depredations OF (SOLD AT UURRN CIIAKLOTTR'S ISLAND. (loprodations on their ncif^hboiirH ; tlicy Imvc liiul less intcrcoursp witli tlic whitPH, and arc not to be trusted, l)ut oii^lit to be Htrietly guiinU'd uKiiinHt. When I went there with the canoe, tiiey were very friendly, allowed ine nil about the mine, nnd ^ftve nie every information in their power ; in fact, gave nil- their country ; but when they saw that our blasting and (piarrying the rocks <lid not produce gold ai I hey expected, they felt much disappointed, and manifcHted a less friendly spirit ; so unich so, that I was glad to get away from them my small inefficietit party. "They were very friendly afterwanls, both when the steamer and *' Una" went to their (-ountry. Shoulil a fort \w establisbeil at the gold mine, not only these two tribes, but scveial others on the island woidd frequent, and probably reside at it. '' All the way from near North Island, Point North, to C!ape St. James, along the west shore of the island, it is very rugged and moimtainous, particularly so near (^ape Henry, both north and south, about where the gold is found. From Cape St. James, along the east shore to near Skiddigat, east entrance of Cart- wright's Sound, cotitinuing aloiij? the shore to I'oint Invisible, Point Rose, the country is level, wooded, with clay and sandy cliffs in many ])laces along the shore. I was ashore here at different places, and examined the soil, which appeared excellent ; it is composed of black vegetable mould on the surface, succeeded by a considerable de|)th of morly clay ; the tind)er is of considerable size. When the Indians resided on this part of the island, they raised jilenty of very fine potatoes: so they rejjort. From Point lnvisil)lc, along the nortli end of the island to North Island, the country, viewed from the sea, has the same appearance ns that between Skiddigats and Point Invisible ; and the Indians report the soil equally as good for producing potatoes, the only crops they grow. " There is no harbour for a vessel or even for a boat, except to beach her, all the way from Skiddigats to Point Invisible ; but there is anchorage some dis- tance from the shore all along the way to North Island. " The appearance of many inlets and bays along the west shore from North Island to Cajjc St. James, and from thence along the east shore to Skiddigats, as viewed from the sea, indicates that harbours may be found in different places. " When I went with the canoe I intended to have gone all round the island, but the rough weather rendered it too dangerous to make the attempt. " From the description the Indians gave of the place where they found the gold, I was mider the imprcision that, even with the slender means we jiossessed, we could blast the rock, and (piarry out the stones containing gold, to at least ballast, if not loud a vessel. In this hope I was disappointed. •' James Douglas, Esq. " I am, &c. (signed) John Wor/i. On the 0th October Mr. Douglas dispatched the " Una," Captain Mitchell, with Chief Trader M'Neill and 1 1 men, who were to pass the winter in Queen Charlotte's Island, and explore the interior. Mr. M'Neill made the following report of his operations at Mitchell's Harbour, (iueen Charlotte's Island : — " Sir, " Fort Simpson, 20 November 1851. After leaving Victcn-ia I proceeded with the " Una" to fulfil your instruc- tions of the 4th October 1 8.') I. We had a fine run to Queen Charlotte's Island of four days, after which a gale of wind (!ame on which detained us olT the place. Cape Henry, eight days, consequently we did not anchor in Mitchell's Harbour until the'JOth October. " On the second day after our arrival we connnenced blasting the rock at the old place. We commenced in a vein of quartz, and were very successful ; the rock proved to be rich with gold, as you will see by the specimens now forwarded by Dr. Kennedy. We followed the"vein, and found it deeply impregnated with gold. The voin seems to take the directioji up the mountain ; in fact, our men were half way to the top, say 300 feet above the water, and found quartz rock, a specimen of which 1 now send you. In my opinion gold will be found in many i)laees hereafter on the west side of the island, as quartz rock is to be found in every direction. We found it in four different places in Mitchell's tSS— 1. A 4 Harbour, M 9E CORRESPONDENCE RELATIVE TO THE DISCOVERY 1 ** I'l '>! 1 Ilftrbour, but had no timr to rxnminr it. I am Rorry to inform you that we wtTf ohliirrd to lonvf off blnwtinfc, nnd quit the i)iur»' for I'ort Simp8on, on ncfouiit ol' th(! niiiioynnct' we cxixriciHTd from thr natives. 'I hey arrived in larm' nunilxTs, tmy 3(» ciimxH, niid were nmeli )>ieuKed to see us on our firnt arrival. Wlien tliey huw us hluttlwi^ and turning out tlie jj;old in nuch larm? quantities, tliey l)eean»e exeited auil commenced depredatiuuH on u», otealinK the tools, and taking at h-ii.st one-half of the ffold that wan thrown out by th« blast. They wnuhl lie coi eeak-«l until the report wa« heard, and then make n rush for the gold ; a regular seramble between them nnd our men wouhl take place ; they would take our men by the legs, and hold them away from the gold. Some blows were struck on these occasions. The Indians drew their knives on our men often. The men who were at work at the vein became com- pletely tired and disgusted at their proceedings, and came to me on three different occasions ancl tohl me that they would not remain any longer to work the gold ; that their time wa.s lost to them, as the natives took one-half of the gold thrown out by the blast, and blood would be shed if they continued to work at the digging ; that our force was not strong or large enough to work and tight also. They were aware they could i\c* work on shore after hostility had commenced, therefore I mode up my mind to it\ ve the place, and proceed to this place. " The natives were very jealous of us when they saw that wc could obtain gold by blasting ; they had no idea that so much could be found below the surface ; they said that it was not good that we should take all the gold away ; if we did so, that they would not have anything to trade with other vessels should any arrive. In fact, they tohl us to be off. Tlie chiefs liavo no power over the lower orders, and of course cannot prevent them from plundering or committing any act of violence on strangers. 1 will refer you to Mr. Greggor for information regarding the vein, &c., at the diggings, as he seems to have a good idea of the rock, and how the work should be carried on ; he has behaved well, and was \ery zealous at bis work. " The men said they should go agahi in the spring, if an expedition properly fitted should start fo" working the gold in Queen Chorlotte's Ishind. In my opinion, should an'-.-ier exi)edition go to Queen Charlotte's Island, a force of at least 80 nien would be required, with two officers to attend the land party ; the shij) also should have three officers besides the ca|)tain, which I can prove by experience during our late visit to the gold district. The ship's crew, as well as the land party, should go on shares of the gold that may be colU'cted, as it would prevent smy one from trading gold ; we had considerable trouble during our stay at the island, to prevent the ])eople from trading the ore. Tlie natives brought a quantity of gold to me, which I traded, and now forward it together with that which we obtained by blasting ourselves. «' Very little, if any, gold will be obtained in Queen Charlotte's Island, except by blasting. It appears to me, that some of the gold I traded was obtained in some other place than that which we were at. They, however, said that they had discovered gold in no other place than in Mitchell's Harbour ; this report I much doubt, as the lumps are solid, and different from any other that we found at the j)lace we were at work on. " We have discovered, and proved by this voyage, that gold is to be found in quantities at Mitchell's Harbour alone to pay an expedition to go there and work it. I had no opportunity of examining the country much, as we remaiticd but 15 days, during which time I was occu))ied with the Indians, as no one on board except myself could speak to them. We had had some boisterous weather during the time also. I saw no place where we could build a fort anywhere near the diggings. The shores near the sea and harbours are bold, steep rocks down to the water's edge. '• Provisions will be found scarce at Mitchell's Harbour ; no deer on the island, and fish appear to be very scarce, as they cannot catch them on the outside of the island, except during a calm, or a north-ea.st wind. Potatoes can be had in large quantities from the Skiddigats tribe, who reside on the east side of the island, but can reach the diggings in two days travel in the summer season. " hhould a fort be built, or a ship remain at the diggings for a length of time, a large number of Indians would collect and reside near at hand, and give annoyance. Therefore, a large force of me i would be required for protec*'- ", nnd ^ ■ ws'mmm 1 OF (501,1) AT UUKEN CMARLOTTK'S Isr.ANI) «, nnd t() work tl\c ^ol(l ; n p«'rKOii ncqunintcd uifh tlic Itulians Hliould 1 rjul tlio cxixtlition, and have an iiit(q)r(t«T. Tlu' iialivcH on flir vvjht or outsidt- of the island art! j;ri-at niaraudirx, and prey on di-stunt trihiH, lake uiuiiy prison«T8, and make sIuvch <<f t.icMii. " I liope you \v.»l 1)0 untitificd with tiie rensonn I have fr\vvi\ for U-avinK the diftKings, and ntit remaining ihrri" m) lonn an you wislu-d Tiic voyaj^e, iiowuver, has done sonu' iiood ; wo huve usoertained thai fiM xa to bt- found by bloMtiiifj to pay for working it. " 'I hi' last or purest gold i» to be found deep down in tlu' rock ; we, however, had no time or chance to get at it. as wt- were ol)hged to leave, an Htatcd before. " I remain, &e. "James Douglas, Escp" (Higued) " IP: J I. AVNeill' Mr. Douglas writes on the I'lth November 1H.»1, that the *• Kxact," an American s(!hooner arrived at Victoria on the 2'M\ Novendier IR.")!, v a route for (iucen Charlotte's Island, with \V2 passctiLcers, all Americans, ami im the 'JHlh Dcceiiibcr stati's, that the Anurican sloop " (ieoru;iann " was lately wrecked on (jueen Charlotte's Island, with '.'•J American liold huntiis on board ; that the natives jjlundercd the people, but spared tluir lives, and that an American vessel had sailed from Niscjualiy to rescue them from the Indians, at the expense of tlu' United Stales. Another American vessel, the " Damanscove," a.Tived ui MitclicU's Harbour, l)ut the sight of the Iiulians frightened them off, and no one i.mded. On the 18th March IH5'i, Mr. Douglas writes, that he is 'itting out an expe- dition to Queen ChaHotte's Island to go in the brignntine " Recovery," consisting of five officers and 40 men, under chargi- of Chiet Trader Kennedy, with th<! following instructions : " Dear Sir, " Fort Victoria, I H March I h:i2. "The objects forwhich the expedition, placed by the Hoard of Managemi lit under your comnmnd, has been Htted out, have been so fre(|uently and closely discussed in our jiersonal conferences, that it is merely necessary to remark here, that those objects are all connected with the exi)loration of Queen Charlotte's Island for the present puri)oso of gohl digging, and tiic tdtimate object of establishing a commercial post, when the situation best adapted for that purpose has been ascertained. " The cxjicdition consists of the brigantine " Uecovery," A'2 landsmen and seamen, making, witli the officers, a total force of 'l.'i persons. " Vou will receive hercwitli a copy of the agreement entered into with tiie men, which, you will ob.scrvc, gives yim a wide jurisdiction, and fidl power to regulate all matters connected with the security and good government of the jiarty. " The ])rincipal difficulty apprehended in the present exjtcdition is the oppo- sition of the natives, who being averse to the working of tin: mines will throw every jiossiblc obstaide in your way. " The first object to which we think your attention should be diiectod after your arrival in Nlitchdl Harbour, is a friendly arrangeineiit willi the natives for working the mine, as the jiolicy of the company and the voice of humanity are equally enlisted in behalf of conciliatory measures. We therefore beg to impress upon your mind our earnest wish that all your intercourse with the natives should be marked by a sjiirit of kindness and forbearance, and that pos- session of the mines should be secured without bloodshed. " Among the va"ious jilans suggested by our experience of Indian character, there is none that holds out a greater prospect of success than the following, which is briefly as follows : — " The Indians of (Jold Harbour having repeatedly, both to Mr. Work and yourself, agreed to surrender the district about Gold Uai hour into our hands for the purpose of building a trading post, you will accept the surrender on those terms, in addition to areasonal)le amount of compensation by way of pur- chase-money. That being effected, let a strong breastwork of rough logs be thrown up around the mine, and warn the Indians tliat they are not to enter the enclosure without leave. Sentinels should be placed in suttieieiit numbers to enforce obedience and to keep the Indians from trespassing. Ijuder the pro- 788— I. B tectiou 10 CORRKSPONDENCK RKL\TIVi; TO THE DISCOVERY * '« tectioii of the ship, which may he moored within .'K) yards of the mine, and the enclosure togetlier, th<' miners may i)ursue their hil)ours without (Umger or molestation, and the Indians, seeing tin; strength of your position, will he restrained from further asiiression. .Such is an outline of our plans, and it is left to your own good judgment to carry it out in the manner circumstances may render advisahle. " The fore at your di>pi'sal must necessarily he divided into several parties, some hting required to remain on l)oard tlie ship, others as sentinels on shore, and tlie remainder will he disposable for nuning, which we jn-opose should he carried on in the following manner -.—The vein of gohl, about 80 feet long, will he divided into sections ot eight or ten feet, and one such section be given to two men, who will drill the holes under the directions of Mr. Greggor, who is engaged s])ecially to superintend the mining department, and will charge and set off all the blasts, as a precaution against accidents and loss of time arising from the awkwardness of inexperieneeil hands. " Shovdd any other party be em])loycd on the vein when you reach Gold Harbour, you will recpure them to remove from the spot, as the place belongs to the Ilndsons Hay (^jniiiany by discovery and prior occupation, as well as by Her Majesty's exclusive licence of trade granted to tiie company. "You may also inform tlie parties, if Americans, that British ships of war are soon expected, and that they run the risk of being seized and their property confiscated if found on any pi.rt of the British coast. " The vessel is victualled for six months, and disposable for that period; she will either be relieved by the " Mary Dare," er receive a supply of stores in the month of July next, and must on no account leave the coast before the middle of Septend)er, shouhl the " Mary Dare" not arrive there .sooner. " Should the gold vein in Mitchell Harbour be exhausted at any time before the close of the vovage, your researches should he extended to other parts of llu- coast, as it is not probable that gold exists in one place only. Douglas Harbour is mentioned as a promising place, both from the character of the rocks and its proximity to MitcheU's Harnour. " it has been remarked that the veins of auriferous quartz in California inva- riably run from S. S. E. to N. .N. W., a circumstance worthy of notice, as it may he of service in your researches on Queen Charlotte's Island. " You are so well acquainted with the nature of the service on the coast, and of the great advantages resulting from obc(Ucnce and subordination, that we shall li!ave such matters to yourself, sii'jply remarking that projier rules and regulations for the government of the party should be established as soon as possible, the men being bound by their agreement not only to obey all orders and regulations, but lo assist in jjutting the same in force. " Every man should have his particular work assigned to him, and should lie emi)loyed in the department of the work where his services will be most useful. " \Mlh ret'erence to the agreement and other documents herewith, and wish- ing you every success, " I remain, &c. " John Kennedy, Esq." (signed) " James Douglas." Mr. Douglas observes, "Chief Trader Kennedy's personal knowledge of the Indians, and the influence he luis acquired over their minds by a long series of good offices, admirably qualifies him for the work, and will be of the utmost a<lvantage to the expedition, as conciliating and tending to prevent fatal affrays with the natives, which are at once contrary to our general policy, and dis- tasteful to the Governor and committee. " Tiie vessel is victualled for six months, and further supplies of stores and jirovisions will be sent on, from time to time, as required, it being our inten- tion to keep a party constantly on the spot until other means are taken to occupy the country. " Tiiere not being time to make out by this mail a copy of my report to the Governor and Comieil of the Kith instiinr, I beg to refer you to the following extract from that conununieation, which fully explains our views and plans in regard to Uueen Charlotte's Island. " ' Not being prepared at present to build an establishment on Queen Char- lotte s Island, from want of the pro])er descripti<jn of men and of efficient officers to conduct them, and it being moreover not considered advisable to undertake •0 OF GOLD AT QUI- EN CIIAHLOITE'S ISLAND. II so iinportant a nu^asure until we have acquired i\ more complete knowledge of till' g( olo.uical structure and aurilcrous deposits of the island, and have thereby ascertained, beyond the risk of future disappointment, the most eligil)le site for the establishnu-ut, both as resjjects tlie miiiinsjor purchase of (jold, and the convenience of general trade, we think it advisable to defer estaldishing a post until we are in a position to give their duo weight to all these consider- ati(ms. " ' In reference to that mrasure, I may remark that the shores of the sea coast about and in iNIitchell's Harbiur, according to Captain M'Neill's report, consist of lofty precipitous rocks, rising from the water's edge, and offer no practicabh; site for a trading post. According to the same authority provisions are scarce, there being no deer in the country, and but scanty supplies of fish ; the only kind of food we could dej end on procuring in any <|uantities, being potatoes from the natives inhabiting Cartwright's Sound, so that nearly all the provisions for Ihe establishment will have to be imported. Chief Factor Work concurs in opinion with the report just (piotcd, as to the ineligibility of the groiuul about Rlitcheil's Harbour for an estabhshment, and th(! scarcity of iirovL^iions in the country generally, and moreover adds that the west coast of tlic island, through- out its whole extent, is very rugged and mountainous, as well as the east coast from (,'ape St. James to Cartwright's Sound, from whence to Point Rose and the north shore to North Island, the country is level, with a good quality of soil, consisting of black vegetable mould overlaying a line loamy sub-soil. There is no clciu- land in the island, the whole surface being covered with pine timber of large size. '■ ' (jodd harbours have been discovered on both sides of the island, and there are many bays and inlets which have not been examined. " ' From these accoimts the east coast, north of Cartwright's Sound, appears the most eligiile for a trading i)ost, so far as regards tiie country, soil, and climate ; but on that side it wovdd be inconveniently distant from the only known gold district, iuid therefoie highly objectionable ; Imt should gold here- after be discovered in equal abundance on the east side, as is even now reported to be the case, though in doubtful authority, the advantages would be greatly in favour of that i)art of the island. " ' In the nicantiuic, until these points are cleared up, we propose, as before stated, to employ the " Recovery " in protecting the parties at the mines, and attending to the trade of Queen Charlotte's Island. For that service she will be quite as efficient as a post on shore, and in some respects, as being a mova- ble establishment, more conveni<'nt, to say nothing of 'he advantage of having all hands disposal)le for mining, instead of employing them in building.'" Mr. Douglas also mentions that the " Exact " had returned from Queen Charlotte's Island, having being driven off by the natives from Mitchell's Har- bour, and the 'A2 people in her came away empty handed. Mr Douglas writes on the 18th April 1852, that the American brig " Da- mansco\ e " had arrived at Victoria, having been beaten oft' Queen Charlotte's Island, by th(! natives, whose daring and power they re])rescnt as being very great. Air. Douglas observes, " In our case we trust tor success as much to tact and management as to i)hysical force, which is neciessary for its imposing eft'eet, i)ut should never be used in establishing friendly relations with Indians, except ill self-defence." On t\ o. 12th July 18.J2iMr. Douglas mentions the receipt of letters from Mr. Keit'.iedy to the 21st June. He had found «old, but in such small quantities as not to pay for working. The officers and men were all dispirited at the" want of success, and the " Recovery " was in sole occupatiou of the island, all the American vessels having gone oft' in disgust. Cnder date 23d August I8,j2, Mr. Douglas reports the arrival of Mr. Kennedy at Victoria, who rejiorttd that the expedition had been very unproductive ; they had found no gold anywhere, but at the rock at Mitchell's Harbour, which vein he soon ^-xhausted. He then commenced exploring on the coast, and in the interior of the island, but made no remunerative discovery. Traces of gold were found in several of the quartz veins, but on blasting the rock they dis- appeared. Operations were then resumed in Mitchell's Harbour, but without success. Douglas Harbour was exandned witli a Hke result, and the men became dis- pirited, and Mr. Kennedy determined to come away. The total loss to the 78S-I. B 2 compai.y la CORRESPONDENCE:- QUEEN CHARLOTTE'S ISLAND. vl. company on the adventure amounts to 943 /. 3 *. 1 1 rf. The men, who were engaged on shares, also lost their time. The value of the ore collected amounts to about 90 /. On the '26th August 1852, Mr. Douglas reports that the "Susan Sturges," an American brig, had taken on board a cargo of spar.^ cut on Queen Charlotte's Island, a thinii the Americans would not allow on their territory, having seized and condemned Brotchie's ship for doing the same thing. Mr. Douglas reports on the 5th October 18.'>2, that the American brig " Eagle " was wrecked on Vancouver's Island, and that the natives took pos- session of the wreck and cargo, consisting of dry goods and spirits for trade. Mr. Douglas, on the 14th January 1853, reports further, that the brig " Susan Sturges " had been captured by the Indians on the north-east coast of Queen Charlotte s Island in the month of September, who plundered and burned the vessel, and made slaves of the crew. They were rescued by the company through Mr. Chief Factor Work at cpnsidera'ole expense, which the master of the vessel promised to reimburse on his arrival at San Francisco, a promise up to the date of last advices not performed. .1" i • < { ' v#»^* •l^i :• . ■H \ •i*' O 1 Oli - n o) S Cn i I ■ )l/M fho were amounts sturges," larlotte's ig seized can brig ook pos- trade. the brig coast of red and 1 by the hich the (icisco, a X""' o a w PI as o 33 I o CD > 2! O