[No. 5]

I had the honor of receiving on the 21st Inst your Lordship's
communication of the 11th February,
with copy of your Lordship's correspondence with the Governor of the
Hudson's Bay Company, on the subject of certain land in Vancouver's
Island, which the Company had intimated an intention of appropriating
with the view of extending its Fur Trade, and you have directed me to
furnish you with any information, in my power, as to the extent and
description of the land in question.

In compliance with your Lordship's instructions, I hasten to
afford you the desired information.

The first of the Hudsons Bay Company's Settlements on Vancouver's
Island, was formed in the year 1843, as stated in Sir John Henry Pelly's
letter to your Lordship, on the site of the present Fort Victoria. The
sovereign=tysovereignty of the Country as is known to your Lordship was then in
obeyance, and the Treaty of joint occupation in force, which left the
whole of the district west of the Rocky Mountains situated between the
42nd and 54 40/60th parallel of north latitude open equally to the
 
trade and enterprise of the Subjects of Great Britain, and Citizens of
the United States. In the absence of law and the controulingcontrolling influence
of an established Government it became the custom of all parties forming
settlements within the limits of the disputed Territory, to mark the
extent of their land claims by certain fixed metes and boundaries.

The lands within those limits were held as their exclusive
property, and those rights were made good against all intruders, by the
sole act, and at the expense of the parties in possession.

The Hudson's Bay Company in common with other Companies and
individuals established in the country west of the Rocky Mountains,
accurately fixed the boundaries of their different settlements, and
expended large sums of money in bringing the land into cultivation, and
improving the tracts of country which they occupied. They also imported
all kinds of useful plants and seeds, and introduced Sheep and Neat
Cattle, which soon became so numerous as to occupy at some of the
trading posts extensive tracts of country. Thus at Fort Vancouver on
the Columbia River the Company's Farms and Stock occupied a tract of
country 40 square miles in extent, and about 140 square miles is the
extent of the area occupied by the Puget's Sound Company's tillage Farms
and Stock range at Nesqually on Pugets Sound.

The posts above mentioned are both within the division of the
Territory assigned by the Boundary Treaty of 1846, to the United States
of America; but notwithstanding, the rights of the Hudson's Bay Company
to the lands they occupied before the Treaty, are respected by the
Officers of that Government.

On founding the post of Fort Victoria, the usual custom was
observed of marking out the site of the establishment and the extent of
land required for tillage, and a sufficient cattle range, as a
protection from the intrusion of American citizens, who were daily
expected on Vancouver's Island, it being the year following the arrival
of the United States Exploring Expedition, under the command of Captain
WilksCaptain Wilkes, who devoted much attention to the survey, and
examination of that part of the coast.

The District then marked out as the Company's land, includes an area
of about 25 square miles on the south east corner of Vancouver's Island,
commencing at Victoria Harbour, the line follows the salt water Inlet to
near Knocken HillKnockan Hill, from thence it runs by Lake Hill, and Mount Douglas
to Cordova Bay, on the Canal de Arro, from whence it follows the coast
by Gordon Head and Point Gonzales, to the point of commencement at
Victoria Harbour. The accompanying sketch of the south east corner of
Vancouver's Island, which has been prepared for the purpose, will enable
your Lordship to trace the description of that District herein given
with ease and facility, and shows the exact extent of the lands improved
and occupied by the Hudson's Bay Company, previous to the Boundary
Treaty of 1846, and of which possession was maintained by the servants
of the Company until it became a possession of the British Crown.

Having thus endeavoured to give your Lordship an idea of the
extent of land possessed by the Hudson's Bay Company on
Vancouver's Island, previous to the Boundary Treaty of 1846, I
would further remark that it does not appear to be the intention
of the Company to appropriate the whole extent of the District,
traced upon the sketch, and occupied by them previous to the
Boundary Treaty; a great part of it having been sold as, and
with other public land.

The Company I believe propose to retain out of its former
possessions, only three of their Farms containing in the aggregate about
4000 acres. One of these Farms is at Victoria, and the two others are
situated at the distance of three & four miles respectively east and
north of that place. A number of Servants, and large herds of cattle
are kept at those farms, and they are not only indispensable to ‸the
Company, but of service to thethe Company, but of service to the Colony at large, as it is from these
farms that the Settlers procure seed and cattle to Stock their land, at
the moderate cost of £5 per head for horses, and Milch cows,
respectively; and there is otherwise no resources of that kind within
the reach of limited means. With the exception of the Farm at Fort
Victoria, which is advantageously situated on Victoria harbour, and will
become valuable as the Colony improves, The Company's Farms possess no
exclusive advantage in point of soil or position. Such advantages were
in fact less considered in choosing the sites occupied, than the object
of placing a restraint, on the wandering Tribes of Indians, who
committed depredations on the cattle for which purpose they are
admirably adapted. They contain Prairie and Wood land in convenient
propor==tionsproportions, with some extent of rock, and other unimprovable country,
and are in no manner superior as cultivable land, to numerous other
places, in the same District.

I have further to inform your Lordship that the Colony continues
in a state of perfect tranquility, and that the Native Tribes are quiet and orderly.