Murdoch to Elliot (Assistant Under-Secretary)

As it is understood that an arrangement has been finally concluded
between H.M. Government and the Hudsons Bay Co, for the retransfer to
the Crown of Van Couvers Island on payment to the Company in all of
the sum of £57,500, I think it right to call the attention of the
Duke of Newcastle to that portion of the grant of 13th Janry 1849
which relates to Sales of Land.

2. By that Grant it is provided that for all sales of land affected
by the Company they shall be entitled to deduct, by way of profit, a
sum not exceeding 10 per cent on the gross amount. This they have
accordingly done up to the present time. Until the Island is
formally reconveyed to the Crown all Sales and grants of Land, though
practically made by the Government, must continue to be nominally
made by the Company, and according to the strict letter of the Grant
of 1849 the Company might perhaps be entitled to claim percentage on
such Grant. But in justice they clearly are not entitled to any such
payment, and it may fairly be expected that no such claim will be
made. But perhaps it may be considered right, to prevent any future
misunderstanding, that this point should at once be set at rest. As
some delay may occur in settling the terms of the reconveyance of the
Island the question is not without its practical importance.