Ellice to Newcastle

By accounts received from Vancouver's Island I learn that one of the
measures recently adopted by Governor Douglas in his double capacity
of Governor of Vancouver's Island and of British Columbia operated in
a manner so unfavourably and as I think unjustly to the interests of
the Hudson's Bay Company that I feel it my duty to bring the matter
under Your Grace's notice.

Your Grace is no doubt aware that Governor Douglas has of late

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imposed heavy duties on all goods imported into British Columbia.
These duties he finds it next to impossible to collect within the
Colony of British Columbia, in consequence of the great extent of the
Coast and the paucity of Custom houses, and, in order to meet the
difficulty, he has fallen on the expedient of exacting the duties
payable on goods entering British Columbia, before they leave the
port of Victoria.

I venture humbly to represent to Your Grace, that in thus collecting
the British Columbia import duties within the separate Colony of
Vancouver's Island Governor Douglas acts illegally, and the Tax,
instead of being an Import duty as respects British Columbia, becomes
a duty on exports from Vancouver's Island.

As respect the interests of this Company, I have already stated that
the measure operates unfavourably and in my opinion unjustly. The
Hudson's Bay Company, as Your Grace is probably aware, has the
principal Depot for its Trade at Victoria, where it is very easy for
the Governor to exact the duties to any extent. But the American
Trader and the Smuggler have no difficulty in evading the duties, for
as they do not enter the port of Victoria, but go to the Coast of
British Columbia direct—where there are no Custom-house Officers

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—they escape the duties altogether. And the consequence is that
the Hudson's Bay Company alone is made to pay the duties.

Herewith I have the honor of transmitting an Extract of a Letter
addressed by Sir George Simpson to the Secretary of this Company, from which Your Grace will observe that in a recent trading voyage
of the Hudson's Bay Company's Steamer "Labouchere"
to the North West Coast of North America, the duties levied upon her
Cargo, at Victoria, under the denomination of British Columbia Import
duty amounted to no less a sum than £300. Moreover, the duties were
exacted on the whole of her Cargo, although a portion only was
intended for British Columbia—the remainder being intended for Trade
with the Natives residing in the Territory rented by this Company
from the Russian American Fur Company.

I have no hesitation in saying that if this system of levying taxes
be continued; if this Company's goods are to be taxed exclusively,
while other Traders are enabled to Traffic all along the Coast
without paying any duty at all; and if, moreover, the Company are to
be called upon to pay British Columbia import duties for goods sent
to, and to be consumed in, the Russian Territory; the result will be
that we shall be ultimately forced to withdraw from a trade in which
such unfair advantages are given to the Foreign Trader and
Smuggler—or to establish the Depôts
for our Trade within the Russian Territory where we shall not be
subjected to measures of this character.

I would therefore most respectfully submit to Your Grace that
measures should be adopted to stop such proceedings. I venture to
think that your Grace will at once see the illegality of raising at
Victoria the duties on the importation of goods into British
Columbia. They might with fully as great justice be raised at
Liverpool or London. The Colonies are entirely separate, and under
separate Governments, the only connection between them being that the
same functionary happens to be Governor of both. It will
consequently be evident to Your Grace, that in levying duties at
Victoria the Governor collects an export duty from Vancouver's
Island, (for which he has no Warrant) and not an import duty into
British Columbia.

I beg to assure Your Grace that, in venturing to bring this subject
under your notice, it is not the wish of the Directors of this
Company to evade duties legally imposed, and legally levied. All
that we wish is that the British Columbia duties should be levied
within that Colony, so that they may be imposed equally upon all
parties trading with that Coast. If that were done, the duties would
not be imposed on the Hudson's Bay Company alone, while small traders
and smugglers were allowed to escape.