Berens to Newcastle

I have the honor to acknowledge the receipt of a Letter from Mr
Under-Secretary Merivale under date the 30th ulto, in reference to
the reconveyance to the Crown of the Island of Vancouver, under the
terms of the Grant to this Company of that Island of the 13th
January 1849.

Although this Company have never received what might be considered to
be a formal notification of the intention of the Crown to resume
possession of the Island in the terms of the Grant it has always been
considered that the Letter of Mr Under-Secretary Merivale to Captain
Shepherd the late Chairman of this Company of the 20th January 1858,

*

did, in point of fact, amount to a Notification of such intention.
In accordance with that understanding, the Company have considered
their interest in the Island under the Grant to have ceased on the
31st May last, after which time, as your Grace has been already
apprized, the Officers of this Company have been instructed to
abstain from supplying the means which might be required for the
purposes of the Colony, and from disposing of any of the Land.

In my letter of the 16th July last, referring to the termination of
the Company's Interest in the Island, I took occasion to call your
Grace's attention to the inconvenience experienced from the present
anomalous position of affairs there, arising from the fact that while
it is considered that the beneficial interest in the Island (subject
to the payment of the advances made by this Company) is in the Crown,
the legal title, from no reconveyance having yet been executed, is in
this Company, so that there is at the present moment no party
competent to dispose of Land in the Colony.

**

If Her Majesty's Government are not at present prepared to call for a
Reconveyance of the Island, this Company will be most desirous to
assist in putting an end, as far as practicable, to the existing
inconvenience by concurring in an arrangement that the Governor
should now be empowered to dispose of the land, receive the proceeds
of it, and account for it to the Crown, as was heretofore done by
this Company; but they think that before such an arrangement is
entered into, their claims for advances clearly ascertained, and long
since communicated to the Government, should be satisfied.

With reference to the expenditure in searching for Coal at Fort
Rupert, this Company will be prepared to assent to the terms proposed
in Mr Under Secretary Merivale's letter, vizt to receive from Her
Majesty's Government one half only of that outlay namely
£6,234:12:10.

There are but two other items. The first is the balance of
£8,505.6.11 due for advances up to the 31st December 1857, on
account of the Colony.

The Government has, from time to time, been furnished with
particulars in regard to this expenditure, but in order that Your
Grace may have the matter fully before you, I have now the honor to
send, herewith a statement, from the commencement, shewing how that
balance is arrived at, and should it be considered necessary to go
into further details, the Books of the Company, made up here from the
Accounts furnished from the Colony, are open to inspection and I
should hope, therefore, that there will be no difficulty in settling
the amount payable to the Company under this head.

The other item of £25,550 for the cost of sending out and maintenance
of Emigrants to Vancouver's Island, during the years 1848 to 1854
inclusive, is made up from the Accounts in this Country and, for your
Grace's information, I have the honor to send herewith, a statement
shewing how it is arrived at. The detailed particulars with the
names of all the Settlers sent out can be furnished if required.

I would venture therefore to suggest that the Government should now
settle the three Claims here referred to, upon this Company, giving a
legal Authority to the Governor, under the sanction of Her Majesty's
Government, to grant Conveyances of any land which he may dispose of
and to account for the proceeds to Her Majesty's Government, this
Company receiving an Undertaking that any further sums that may be
due to the Company for advances in the Colony, subsequent to the date
to which the Colony account is brought down, should be made good on
the formal reconveyance to the Crown of the Island.

I may add that no further claim can arise in respect of Emigrants
sent out. All therefore that will be necessary will be that the
Government should be furnished with the further Accounts of this
Company shewing their additional receipts and expenditure on account
of the Colony.