Shepherd to Labouchere

With reference to the Report on the transactions of the Hudson's
Bay Company in relation to Vancouver's Island Colony, addressed to Lord
John Russell under date, Hudson's Bay House 9th June 1855, I am
desirous, on the part of the Hudson's Bay Company, to request your
attention to the following paragraphs contained therein.

The Governor and Committee are of opinion however, that with respect to
such of those parties as may be desirous of increasing the extent of
their holdings, and to others whose eligibility can be satisfactorily
established, it would be desirable to modify the existing regulations
regarding the payment of the purchase money of land, by empowering the
Governor of the Island, under certain restrictions to receive such
payment by four annual instalments of 5s/- each.

This arrangement would enable an industrious agricultural labourer
to make progress with a very small Capital, but which would be yearly
increased by the profits of his labour.

Reference has already been made to the system of free grants which
prevails in the American Territory, and the Governor & Committee
apprehend that while that system continues in the immediate vicinity of
Vancouver's Island, some liberal arrangement, such as that now
suggested, will be necessary to induce Emigrants to adopt the Island as
their home.

I am requested to state that it will be satisfactory to the
Committee if your Lordship should concur in these views, in which case
they will transmit the necessary instructions to Governor Douglas for
carrying them into operation without delay.

It is the opinion of the Directors that should the Company be
authorized to dispose of lots of land on some such terms of payment, the
Settlement of the Island would progress more rapidly than, owing to
circumstances beyond their control, it has hitherto done.

Should you concur with this opinion, and instruct them accordingly,
no time will be lost in directing Governor Douglas to carry the same
into effect.