on of Hudson'

le was won. What now remained was to take care that the Imperial objects, for which some of us had struggled, were not sacrificed, to indifference in high places at home, or to possible conflicts between the two Provinces in Canad

of the reign of Charles the Second. The deed poll in existence in 1863 provided that the profits of the fur trade (less interest on capital employed in the trade, which belonged to the stockholders who provided it) were to be divided into 100 parts, of which 60 parts belonged to the stockholders, and 40 to the "wintering partners." The "wintering partners" were the "chief factors" and the "chief traders." These 40 parts were again subdivided i

d misconception would arise; while the news of the transfer would find its way to distant regions in a distorted fashion, and through unfriendly sources, long before the explanation and answer could arrive. My

in the whole enterprise-fur trade, banking, telegraphs, lands, navigation of rivers-on generous ter

Mountains. Such main line to be supplemented by other subsidiary lines as rapidly as possible. The "wire," to my mind, was the best "master's eye" under the circumstances. But, apart from business re-organization, it was most essential to explain everything to the Government of Canada; and to a

e details which, if at home, I should have managed, and he especially took up the discussions a

rnor at the suggestion-almost the personal request-of the Duke of Newcastle: some members of the old Board were retained for the, expected, value of their experience, and amongst

Newcastle said, in explaining, in the House of Lords,

3, 1863. [HO

to overrate the importance to this country of an inter-oceanic railway between the Atlantic and Pacific. By such a communication, and the electric telegraph, so great a revolution would be effected in the commerce of the world as had been brought about by the discovery of the Cape of Good Hope. It was unnecessary to point out to their Lordships of what importance it would be in the case of war on the other side of the Atlantic. There was another matter on which he wished to say a few words. Some eight or nine days ago it was stated in a portion of the press that the Hudson Bay Company had sold their property. That statement was not altogether accurate, and certainly it was premature, for he had been informed within two hours before he came down to the House that the whole arrangement had only been completed that afternoon. He had not received any official communication on the subject, but some of the gentlemen concerned had been kind enough to inform him of the facts. He had stated on a former occasion that the Hudson Bay Company had wished to sell. Certain parties in the City had, in the first instance, entered into communication with them for the purpose either of purchasing or obtaining permission for a transit through the Company's possessions. After some negociation the alternative of permission for a transit was agreed upon. That conclusion having been arrived at he did not know what it was that raised the whole question of sale again, but some fortnight or three weeks ago fresh negociations were opened. Parties in the City proposed to the Hudson Bay Company to give them by way of purchase a sum of 1,500,000_l_. What had taken place was this: The Hudson Bay Company very prudently required that the money should be paid down, and that the whole sum of 1,500,000_l_. should be ready on a given day, which he believed was yesterday. Of course the intending purchasers could not carry out that transaction in the course of a week, and they, therefore, applied to the International Financial Association to assist them. The Association agreed to do so, an

or the new organization, at the end of

between certain parties and Her Majesty's Government and the representatives of the Government of Canada, and preliminary arrangements for the accomplishment of these objects have been made through Her Majesty's Government (subject to the final sanction of the Colonies), based upon a 5 p

means for carrying out this most important work; and there can be little doubt that it will be

h other gentlemen specially qualified for the duty, to visit the Red River and southern districts, to consult the office

on, 6th July, 1863, received by me about the 22nd July, aft

S

e purpose of reporting to them on the state and condition of this Settlement, the condition of the adjoining territory, the prospect of set

have deemed it right to associate with you in this inquiry Governor Dallas,

preclude you from doing more than procure such information as may en

e honour t

bedient

HEAD,

WATKIN

st; and, thanks to his prudence, the landing, in 1859, of General Harney, and a detachment of United States troops on the Island of St. Juan, between Vancouver's Island and the mainland, on the Pacific, had been controlled and checkmated, by the proposal of a joint occupation until negotiation

on the death of Sir George Simpson. Meeting at Montreal, our first act of "business" was to voyage in the Governor's canoe from Lachine through the rapids to Montreal; a voyage, to me, as almost a novice, save for my New Brunswick canoeing, of rather startling adventure; but the eleven stalwart Indians, almost all six feet high, who manned the boat, made the trip interesting, as it was to me in the nature o

o, and others, the discussion extending over a month, we agreed to various m

vested rights of the wintering partners (chief factors and chief traders). That might be overcome by some equitable scheme for the extinction of those rights, which would serve the double purpose of rendering practicable a reorganization of the service, and a red

vely to the stockholders) are divided into one hundred parts; of those, sixty are appropriated to the stockholders, and forty to the winte

for the first year, and half this interest for the succeeding six years. The deed poll authorizes the Company to put an officer on the retired list, without reasons assigned, after he has served four years, but they cannot deprive him of his retired interest except for proved misconduct; but neither of these regulations has ever

compensation to each officer on his entering into an agreement to consent to the abrogation of the deed poll.

g to the wintering partners are,

factors

trade

d chief f

trade

5

=

of the interests have nearly run out, and none

to be made at once, instead of its being spread over nine or ten years. On the other hand, the invariable custom of the service has been to allow every officer one or more year's furlough on retiring, which has come to be considered almost a right; when more than one year has b

tation, on the abo

tors, at 3,0

rs, at 1,5

on retirement

-

14

==

rlough, the above amount woul

nd of such as under a new agreement might not be re-engaged. The retired interest of the of

hereafter noticed, and the Company would also receive actual value for their money; and on buying ou

on the pay of officers in the

-in-Chie

f facto

f trade

, abou

-

8,

==

probably prove a mo

-in-Chie

nt-Gover

ors, at 80

aders, at 3

various salarie

-

3,

==

reimburse the Company's outlay in buying up t

dent on the success of the business, has worked well, and might be a

would be adapted to the existing distribution of the terri

Arctic Sea; the 'Southern' embraces the southern and eastern shores of Hudson's Bay; and the 'Montreal' extends from Lake Superior down the Gulf of St. Lawrence to Labrador. These departments are divided into districts, and in each district are several posts. The limits of districts are fixed by local peculiarities; but commonly

ge functions, and be the medium of communication be

l and close personal inspection, one of the four councillors might be stationed in each department, of which, in the absence of the Governor, he would be the chief officer, and held responsible for all local details, and the various posts in which he should periodically inspect and report upon. Once, or oftener, in eac

eve the Governor- in-Chief of some share of his labou

rule, be placed at the head of distri

from merit; and, being good interpreters, and Indian traders, are commonly placed in charge of small posts. Their scale of pay is rather l

e them an interest as stockholders. Instead of paying a chief trader 300_l_. per annum, he might have 250_l_., and a sum of 1,000_l_. of stock plac

e officers, and secure prolonged service, to give them an annual increase of stock-say, 200_l_. to be added for every y

the officers to receive the dividends on the stock they held at retir

in trust about 150,000_l_. stock. But the Company would lose nothin

Even allowing for a considerable retired list, it is doubtful if the whole 150,000_l_. would ever be appro

ain the clauses which secure to the Company the right to place

f the business from London. It is essential to introduce some system of analysed post accounts, which should keep the Governor and his Council fully informed of the state of the business at every post, and by which they might judge of the management of the

rth occupying. As there is a valuable market in New York to which it would, at certain times, be advantageous to send buffalo robes, wolves' and s

d) A. G

EDWARD W

ugust,

home to Governor Sir Edmu

ement as to boundaries, and so on-I had many and serious conferences with public men. And in answer to many questions as to my own views, I drew up the following memorandum,

e, with which, in the last resort, to support the decisions of the legal tribunals. No other organized Government of white men in the world, since William Penn, has endeavoured to rule any population, still less a promiscuous people composed of whites, half-breeds. Indians, and borderers, without a soldiery of some sort, and

eeds of its own ultimate dissolution. In fact, the self-interest, however enlightened, which brings a dividend to stockholders, is opposed to the high impartiality and absence of individualism which should characterize a true Government. Individuals and corporations may trade and grow rich,-Government may not; they may embark in cons

e, and is, in fact, the great merchant, storekeeper, and forwarder of the country; appoints a Governor and assistants, places judges upon the bench, selects magistrates, and administers the law, even amongst its possible rivals and trade competitors. Such a state of thin

es themselves, throughout the whole of this enormous territory, as well as the general state of health and occupation of the aborigines, prove how perfect and wise has been the management of the country. But government of Indian

ent of Indian rights within the area proposed; and while the outside district not set apart, would still be roamed over by the Indians, and be valuable for the fur trade, its limits must, from time to time, be narrowed by further additions to the circle of civilization and fre

er the responsibility and expense, which at first might be serious, and which, as regards cost, must be greater in their hands than in those of

, owing to the refusal of Lower Canada to widen out the borders, and thus increase the political power of Upper Canada; or it may be objected in Canada generally, that the finances of the country will not, at p

ted irregulars or militia, and it need not, in their hands, be large. The population is suited to military pursuits, and the half- breeds mounted would make an excellent irregular cavalry. And the next essential would

to be taxed and governed without their own consent, obtained in some form or other; and that it would be both unwise and unjust to attempt a permanently autocratic government. This is a most serious question, and the Act 31st George III., under which Canada was governed until 1841, would appear t

a country to grow up side by side with the Republic. Reliable surveys and plans, cheap and unclogged titles to the land in fee, a limited upset price of not exceeding $1-25/100 an acre; division of the land saleable into regular sectio

made to support schools and churches, and to assist ro

the concurrence of both powers, for each have rights and ideas in some respects differing, and Canada especially has the deepest concern in the future organization of the North-west. In selecting a governing power for such a count

he Hudson's Bay Company, there

ble arrangement with the Hudson's Bay Company, fairly protective of their rights, and which arrangement ought not to be difficult to

as a separate Crown Colony, t

ederation, more or less extensive, with Canada, and the establ

icy, and its plan of government must be in advance of, and not lag behind, that settlement. The electric wire, the letter post, and the steamboat, which two years more will see at work, will totally change the face of things; and as Minnesota has now 250,000 inhabitants, where, in 1850 there was hardly a whit

th unanswerable reasons of necessity for the immediate establishment of a permanent form of

f ideas on the part of Canadians and the probable settlers. Canada, it will be said, has a good and responsible Gov

e united country, the answer would be perhaps not difficult. But Canada, for the present, is really two countries, or two halves of one country, united under

ous to absorb the North-west, risk the consequences of such a discussion as would arise? Would it be possible, in fact, to found a Government based upon the platf

t best alternative would point to such arrangements, as respects the North-west, as would lead on to and promote this union, and not stand in its way. Thus, disputes about race and customs should, if possible, be avoided by an

own Colony, separate in all respects from Canada, and able to shut out or let in Canadia

never be organized. The power and prestige of the Crown is essential to this end, and a separate Colony, even, would have many advantages per se. It would also save Canada the cost of a new Government at a

its Custom- house; and it should be considered whether the Custom-house of Canada would not serve, as far as the eastern frontier is concerned, for the new Colony. If so, why should not duties, on a scale to be agreed upon under constitutional powers to agree, be levied on imported foreign goods, by Canada, and the duties be divided between the two powers in agreed proportions? Were this done, at least in the beginning, expense would be saved to the new Colony, a revenue would be easily collected for it, through existing machinery, and Can

it some time, and then re- directed it to me without remark. Afterwards, I received a verbal message to the effect that "It would not do at all." I became convinced that nothing "would do at all" with a small band of men-who, at that time, had objects of their own-in Upper Canada. Some of them-few in number, I am happy to

telegraph question; the route, the cost, and the b

re intended to bring about the complete connection of the Hudson

elegraph Company and the United States Telegraph Companies, affected by this Agreement, and also by the Governor an

on or before the 1st October, 1865; and also a line from the telegraph at Arnprior to the Hudson's Bay post at the Sault St. Marie, to be completed o

h from Fort Garry to the Hudson's Bay post at Fort William, at the head of Lake Superior; and also to make arrangements with other parties to erect a telegraph from Fort William to the Sault St. Marie, with all necessary instruments, stations, staff, and appliances for a first-class through and local telegraph l

St. Marie (to be erected by the Hudson's Bay Company as above) an additional mileage proportion of thirty-three per cent. over the actual distance shall be allowed, until those lines pay ten per cent per annu

, with parties in the United States, for the construction of

ies of the Montreal Telegraph Company and of the Hudson's Bay Com

ent to be for t

) EDWD.

d) O. S

August 10

nd Jasper House, and, if hereafter agreed, between Fort Langley and Jasper House, and Fort Garry and the United States

per House, at the cost of the Hudson's Bay Company, and to put the same in full operating order,

ing the telegraph wire, insulators, fittings, instruments, and other materials to Fort Garry; for distributing all materials from Fort Garry; for cutting, preparing, and distribut

staff of the Hudson's Bay Company in carrying out this work,

at Fort Garry, one-third upon the completion of two hundred (200) miles of the telegraph, and one-third on the completion and operation of the whole line between Fort Garry and Jasper House; and further, should the whole be completed prior to the 15th October, 1864, Mr. Wood is to receive a bonus of two thousa

d the United States boundary near Pembina be ordered to be constructed, and the Hudson'

) EDWD.

d) O. S

August 10

r. Wood as to su

"August 1

AR

100; 35,000 red cedar top pins will cost $3 per 100; 40 sets of te

nding of this morning, order a small quantity, and the remainder when I receive your confirmation of the whole arrangement. In the meantime I shall go to

faith

d) O. S

W. WATK

from Montreal, 24th July, 1863, summar

NTR

24_th_

S

on of that Settlement, of the condition of the adjoining territory, the prospects of settlement therein, and the possibility of commencing operations for an electric telegraph line

preclude me from doing more than procure such information as will enabl

ly, to communicate with the Canadian Government, and with those gentlemen likely to form the Government of Canada, should any change of ministry take place on the opening of Parliament, so a

this also is the view taken by Mr. Cartier and Mr. J. A. Macdonald, and is strongly concurred in by Mr. Cazeau, the Vicar-General, who, as you are aware, leads the Catholic party in Lower Canada. On the other hand, the feeling of Mr. Geo. B

lony unconnected with Canada, I consider the discussions which have taken place have now put the question in its right position here; but at the same time I shall endeavour

west, including Professor Hind, who has explored much of the district; and, at my request, Professor Hind has

emorandum, and I need not suggest that the most anxious and immediate attention of yourself and the Com

f the Governor and Committee, Governor Dallas being here, accompanied by Mr. Hopkins, without the necessity of my proceeding on this occasion to the Red River; thou

yes of the Company, stating briefly the nature of the recent changes of proprietorship in the Company, and thereby having the tendency to remove any misconceptions which might arise, and which, I regret to learn, have in som

in every direction. The result in the western district, which, if I recollect rightly, exhibited a loss, and which, in the past year, with all exclusive privileges taken away, gives a profit of no less than $166,000, is a convincing

the number of the employes; and that by a judicious weeding out of those who, in all large establishments managed from a distan

e of the gravest and most difficult subjects of consideration will be, how to reconcile the rights of these gentle

rs and chief officers; and in some cases it may be desirable to

e such as abundantly to satisfy the Committee. Hitherto, as it appears to me, far too little discretion has been permitted; and the practice of sending all the accounts home to England, and dealing with them in such a manner that the Governor could not tell from time to time how the financial results of expenses and profits were progressing, has produced its inevitable consequences. In future, I feel convinced, it will be found matter of the utmost consequence to concentrate th

ortant question, the state and prospects of the Red River, the disco

nvolves, again, the question of the establishment of a new colony. Is that colony to be governed by the Hudson's Bay Company, who are essentially a trading and landowning corporation, or is it to b

ut; and it does not follow that representative institutions need at first be granted, though ultimately they would become matter of necessity. The great object of the Governor and Committee-and Gov

esponsibility, but it would render titles to land sold by them, and claims to inte

t in accordance with his own best judgment; but this question of the government of the country is, after all, the grand di

year-has no doubt whatever; and I trust that the old traditional phantoms of inhospitable deserts will be finally dismissed from the minds of the new Governor and Committee

ry upon the subject, and Governor Dallas agrees with my views of the imp

Governor Dallas through the Hudson's Bay territory, viz., from Jasper House by Edmon

, should be constructed at once,

ases it may cost more, through your territory; though I am inclined to think that it may be constructed for 20,000_l_. as

gociation; and the extension of telegraphic communication to Fort William on the one side, and to Fort Langley on t

he offer to give a subsidy, made last year, will be officially renewed, and I

d British Columbia without a clear understanding as to the subsidies. At the same time, if you, the Hudson's Bay Company, have command of one thousand miles of telegraph

ible gentleman, Mr. Wood, the Manager of the Montreal Telegraph Company, who, I am quite sure, will carry out the operation, w

the ground by the end of the coming winter, since much of it can be taken by canoe, and the remainder may be taken across the

esota deserves serious attention. Little Crow has waited upon G

opportunity of assisting the American Government to make peace with these troublesome

e honour t

t obedien

EDWARD W

ALKER HEAD, B

Hudson's Ba

ith the energy and preciseness I had desired, I closed my, unpaid, mission by th

, PARK LANE, "A

DEAR

e 13th instant, in reply to my report and private letter of the 24th July, and of your pri

it my duty to cancel all that has passed, in such a manner as, I trust, will be perfectly satisfactory to your colleagues. There will then remain nothing beyond a responsibility for a few essential materials, as to which time was an object, amounting to not more than a few hundred pounds at the utmost, which I shall take entirely upon myself, under the circumstances of doubt and difficulty as to the opinions of the shareholders of the Hudson's Bay Company

the country by the telegraph and by means of transit. Captain Glyn and Captain Synge had both been consulted, and the Duke of Newcastle had been applied to to obtain leave for Captain Synge at the War Office. I had been led to believe that my services were considered of some value, and I left England on the 20th June, expecting that Captain Glyn and Captain Synge would follow me in a week, and that we should at once proceed to Red River, and send home a first, but full, report by the beginning of October. I understood also that such a report was des

e prospectus; but my friends and business connections who may have taken shares on the faith of my name, will naturally hold me responsible accordingly. Still, anxious to witness the success of a project which, energetically managed, is so intrinsically sound, I refrained from writing to you to decline the responsibility, hoping that the original plan of delegation, though delayed, would be carrie

rom me, involving difficulty of answer. I found, in fact, that the staff of the Hudson's Bay Company was quite at fault, and that public men in Canada misunderstood th

thout previous consultation; and yet these gentlemen learnt for the first time from the public papers that new arrangements had been made. It was not unnatural, therefore, considering the relations of these gentlemen with the Company, that they should feel much annoyed; nor was it, perhaps, surprising that an in

e first feeling of distrust; for it was said that he and his connections had been, and then were, the Company's

rcular by the Governor, together with many personal explanations, and some firmness on the part of Mr. Dallas, will, I trust, very soon remove the want of confidence and di

that these unofficial discussions were of considerable use, and may help to prevent antagonism and territorial claims on the part of Canada, which, in my opinion, might be very embarrassing, and ought to be foreseen and avoided. Possibly

e Quebec

er into the scheme which, whether as regards the interests at stake or the capital involved, may be said to be colossal in its character. It is no doubt anticipated by the new Company that the Canadian Government and people will cheerfully aid them in an enterprise which evidently concerns us so closely. Speaking in general terms, we presume that it may be conceded that such anticipations have been correctly formed. The development of Canadian territory, or of British territory immediately adjacen

Government of that day was prepared to recommend an appropriation of $50,000 per annum, provided that the Company gave the necessary assurances of their ability to commence and carry out the work. Since that time, however, those who formed that Association appear to have enlarged the field of their operations, and have included the whole of the Hudson's Bay Company,

tself, is here, engaged, no doubt, in collecting from the various sources within his reach such information as will enable him to report fully upon the matter. That done, the Company will be able to make propositions and to solicit the kindly aid of Canada. Looking at the wide field for enterprise that will be opened up; at the speedy colonization that is likely to take place, consequent upon the recent discoveries of gold; at the prospect that Canada may be made the high road for commerce between the great East and West; that the trade of the

ould, I believe, be alluded to in the Governor-General's speech on the 15th. [Footnote: This was done, a

, and I feel assured that should any proposal calculated to effect the establishment of such communication on terms advantageous to the province be submitted to you, it will receive encouragement at your hands."] But whatever may be the extent or the value-as to which latter point I fear my opinion does not, as I regretted to find, quite coincide with yours-of the sympathy and support of Canada, any new bias in favour of your projects, as promised in your prospectus, has been mainly aided by the belief which, entertaining it, I inculcated, that without loss of time, and with the promptness and energy of English merchants, the new

a, the engineer and manager of the 4,000 miles of telegraph owned by the Montreal Telegraph Company, which pays 23 per cent, upon its capital of 100,000_l._; and believing him to be exactly the man for the occasion, I agreed with him, subject to your sanction, to superintend and be responsible for the erection and operation of a telegraph and system of posts between Fort Garry and Jasper House. I do not trouble you with the document, as it is to be cancelled, so far as your Company is concerned; but I m

o extend, or obtain the extension of, a telegraph from the Sault by Lake Superior to Fort Garry, and another by Jasper House to Fort Langley. All these telegraphs were to be completed by October, 1865. The Montreal Company were also to obtain the extension of the Minnesota telegraph to your boundary near Pembina, you extending your telegraph to that point. Thus, assuming the Fort Carry and Jasper House telegraph to be completed by October, 1864, and knowing that this, and the telegraph from

at a total cost, already given you in complete detail, estimated, when delivered at Fort Garry, as not to exceed 10,000_l._. This statement of cost, and a reference to my past statements, will answer the question in Mr. Fraser's letter of the 13th, as to whether I had calculated

nd; and the best market for the less important articles is the United States, while the proper prices chargeable for the best article by the best houses are known to all

ough all parts of your own territory regularly, the 'Winter Express' leaving Fort Garry on Christmas Day. Though, in my humble opinion, not the best thing, still the transmission and storage of that material would be looked upon as an evidence of your intentions, and would help to keep you right in Canada and in your own terr

terial very cheaply. As to all details, I refer to the papers already sent over containing full particulars, and showing quantities, kind, cost, means of conveyance, and, more important than all, charact

rs and lakes: and no doubt these could be arranged for; but as the telegraph is to stand ov

up to Dog Lake; and Mr. McDougal, the present Commissioner of Crown Lands, appears ready to recommend the gradual, but rapid, construction of roads throughout this territory, and onwards to that of the Hu

a reference to his report will show that it was not proposed to you as an immediate measure, as surmised. In any case, it is undoubted that gold exists in districts east of the primary rocks of the east flanks of the Rocky Mountains, and that persons are seeking for it in greater or less numbers. We have yet to learn how far the information has spread, and what influence it may have upon the movement of the American population. But, great or small, it is a fact affecting the settlement of the community, which enlarges the general pressure for a decision as to how large tracts of your territory, suitable beyond doubt for human habitation, are hereafter to be governed for the good of the people

to solve a difficulty which must be got rid of if more business is to be done at less cost, and if the competition around you is to be met, as it easily may be, with thorough success. The deed poll is an arrangement standing in the way of change and extension of your opera

there are many useless, and even mischievous, persons under pay or profits; and the unfortunate propensities of Sir George Simpson did not lead in his latter years, I fear, to the improvement of the moral tone of your servants. There are cases of favouritism and abuse not at all creditable, such as that of the employment of Sir George's illegitimate son, and the

uly; and when he arrived, and especially when I found that the purposes of my proposed journey had been in great measure previously fulfilled by him, it became a question of whether it ought not to be postponed. He had already folly advised the Governor and Committee of the 'state of the Red River Settlement,' of its 'suitability for settlement,' and of the general and highly favourable features of the tracts, over which he had travelled for 1,800 miles in various directions. The b

gue you had selected for me, your own local governor, of whom I cannot express too high an opinion, having been his almo

ore service to you here, since Governor Dallas could not be spared to come home, and could not prudently have left

colleagues quite to understand that I have no desire whatever-but far the contrary-to obtrude myself upon you in the control of an enterprise which I honestly believe

honour to

faith

. W.

W. HEA

the Hudson's

British territory by a fair payment and exchange of land. The negociation looked very hopeful at one time, but it was not followed up in London, and it fell to the grou

te terms for the sale and purchase of the vast landed estate of the Company had to be accepted from Canada; and the "wintering partners," not made real partners, as recommended by Governor Dallas and

well," and the great work