This is the draft grant of Vancouver's Island to the Hudson's
Bay Company. I have not suggested any alteration of importance,
except striking out the Grant of jurisdiction, which is done in
red-ink. Perhaps this is to be regretted, but on looking into the Statutes it
appeared to me that it would require an Act of Parliament to effect this
object. Without going into details, the Chief obstacle is the Act
1st & 2nd Geo: IV c: 66, which establishes Courts of Judicature
&c for North West America, and saves the rights of the Hudson's Bay
Company only in their Charter Territory. I pointed out this to Mr
Maynard, the Solicitor of the Company, and the result is the letter
"No 979 North America", which I forward herewith, in which he says,
that the authorities at Hudson's Bay House prefer relying on Govern==mentGovernment to appoint some of their own people to the necessary offices.
The result will be that The Hudson's Bay Company will legally
possess
1. In Rupert's Land, i.e. the territory East of the Rocky
Mountains — Proprietorship of Soil, Jurisdiction and Exclusive Trade,
under the original grant of Charles II as usually under==stoodunderstood.
2. In the North West territory, between the Rocky Mountains and
the Pacific, — exclusive trade only, without land or jurisdiction : under
the License of 1838 : which will expire in 1859.
3. In Vancouver's Island, the Land under this grant, the exclusive trade under the License of 1838, but no jurisdiction.
It is to be observed, that the Grant is simple and without any
conditions like the original grant of Charles II. This, therefore,
requires to be considered. If it is intended to impose either any terms
in respect of Colonizing, or any Royalty on Coal or other Mines, this, I
apprehend, must be done in the grant. But I do not suggest this: on
the first point I collected Lord Grey's opinions rather to be, that the
Company should be left unfettered: on the second, inasmuch as the
Company must apply to Government to have any Civil Government
established, it may be enough to wait until the necessity arises to
impose on them terms for maintaining it?