No. 3

1. I take the liberty of submitting for the information of Her
Majesty's Government, a report on my observations on the state of public
Gold fieldsconditions at
Douglas, Jamesinspection of gold fields
affairs, during a late visit to Fraser's River, necessarily brief, as my
time is engrossed not only with the Executive duties of Government, but
also in attending to all the details of inferior departments, which must
hereafter devolve on other officers.

2. I was accompanied in that expedition by a force of Thirty-five
ShipsSatellite
Prevost, Capt. James C
Hawkins, Maj. John S.
Jones, Lt. Howard S.
non-commissioned officers and men, kindly furnished by Captain Prevost of
Her Majesty's Ship "Satellite," and by Major Hawkins Her Majesty's
Boundary Commissioner, the military force being under the command of that
active and zealous officer, assisted by Lieutenant Jones of the
"Satellite."

3. The party was conveyed to Point Roberts, at the entrance of
ShipsOtter
ShipsUmatilla
Fraser's River, by the Hudson's Bay Company's Propeller "Otter," and was
there transhipped into the Stern wheel river Steamer "Umatilla." We
disembarked at Fort Langley on the evening of the second day, after
leaving Victoria, and in two days more we arrived by the same steamer at
Fort Hope, the River though much abated in force from being less swollen
Fraser Riverhigh water
Fort Hopeconditions at
than it was in summer, still running at some points, with a force and
impetuosity almost insurmountable by the power of the steamer.

4. Our tents were pitched, and a regular camp formed near Fort
Hope, it being here that the work of organization was to begin.

5. My first attention was devoted to the state of the Indian population. I found them much incensed against the miners; heard
all their complaints, and was irresistibly led to the conclusion
that the improper use of spirituous liquors had caused many of the evils they complained of. I thereupon issued a
proclamation

Proclamationagainst sale of alcohol
which I have transmitted a copy, warning all persons against the
practice, and declaring the sale or gift of spirituous liquors to
Indians, a penal offence, and I feel satisfied that the rigid
enforcement of the proclamation will be of great advantage both
to the whites and Indians.

6. I also received at Fort Hope visits from the Chiefs of
Thompson's River

to whom I communicated the wishes of Her Majesty's Government on their
behalf, and gave them much useful advise for their guidance in the
altered state of the country. I also distributed presents of clothing to
the principal men as a token of regard.

7. My attention was then attracted to the state of the white
Populationat Fort Hope
Fort Hopeconditions at
population. Upwards of three hundred persons engaged in trade and other
pursuits, were living about the Fort, in tents and unseemly comfortless
huts, all desirous of settling in the country, provided land could be
acquired under a legal title. Not being invested with legal powers to
Governorauthority to sell land
grant Titles, I hit upon an expedient, which without an undue assumption
of authority, met the difficulty.

8. Having just ascertained from your despatch of the 1st of July
last, that it was the wish of Her Majesty's Government to colonize the
country, and develop its resources, I proposed to the inhabitants of the
place to lay out certain lands as a town site, and to grant a right of
Fort Hopelease of lots
Fort Hopelaying out of
Pre-emptionof lots at Fort Hope
occupation for town lots, under a lease terminable at the pleasure of the
Crown, and to be held at a monthly rental of 41s/8d sterling,
payable in advance, and with the understanding that the holder would be
allowed a pre-emption right of purchase when the land is sold, in which
case the sum of monthly rent paid, would be considered as part of the
purchase
money.

9. The people gladly assented to the terms, and having fixed
upon a town site near Fort Hope, Mr Commissioner Travaillot, assisted
Travaillot, Oswald J.survey of Fort Hope
Fisher, Corp.survey of Fort Hope
by Corporal Fisher, Royal Engineer, was immediately employed in surveying
the site, and laying out town lots, the principal streets running
parallel, and the cross streets at right angles with the course of
Fraser's River. The size of town lots is one hundred and twenty by sixty
six feet, and the price to be paid is £20.16.8. for each lot.

10. The next object which claimed my attention was the regulation
Alcoholregulation of
of the sale of ardent spirits in Fraser's River. There being no means of
preventing its introduction into the country, it appeared to me that the
wisest policy would be to regulate the trade, by granting licenses for
the sale of spirits to certain parties of respectable character, who
might open houses for the entertainment of the public. Two spirit
licenses were accordingly issued at Fort Hope, for which the holders paid
the sum of six hundred dollars each, being twelve hundred dollars
in all into the public
treasury.

11. My attention was then directed to the administration of
Justiceadministration of
justice. A considerable staff of public officers is necessary
at Fort Hope, to consist of a Magistrate, Sheriff, and constabulary
force, but the expense would have been so great, owing to the high price
of labour, that I thought it proper to consult you on the subject before
incurring the expense. No man of worth will accept employment, at less
than three and a quarter dollars, or thirteen shillings and seven pence,
a day, the men however in that case, finding their own board and lodging.
I however made the following appointments. Robert Smith, a native of
Smith, Robert T.JP and revenue officer
Scotland, to be Justice of Peace and Revenue Officer. Robert Ladner to
Ladner, Robertconstable at Fort Hope
Fort Hopecourt house at
Court houseat Fort Hope
Jailat Fort Hope
Fort Hopeconditions at
be Chief Constable. A Court House and Jail are much wanted at Fort Hope,
but they cannot at present be put up for less than £5000, and for the
same reason, that is the great expense, I did not make any arrangements
to provide those indispensable buildings, for want of funds and authority
to pay by drafts on Her Majesty's Government.

12. A Court was held for the trial of petty offences, and sat every
other day, during our stay at Fort Hope, and I issued a Commission
appointing a Court for the trial of criminal offences in which Mr
Pearkes, Georgepresides at trial
Fraser, Donaldassists in trial
Smith, Robert T.assists in trial
Pearkes, Crown Solicitor of Vancouver's Island presided, assisted by
Donald Fraser Esquire, a gentleman of high legal attainments, who
accompanied me from Vancouver's Island, and Mr Justice Smith.

13. One case only was brought before the latter court, the
trial of William King, for the murder of William
Eaton,

King, Williamtrial of
Eaton, Williammurder of
on a mining bar in the upper parts of Fraser's Riverr. The defendant was
found guilty of manslaughter, and sentenced to transportation for life.
Transportationsentence of
It was reported to me when the court was about to open for the trial of
King, that a large body of miners, then present, intended to rescue the
prisoner, but whatever may have been their intention, it was not carried
into effect, as the proceedings went off quietly, and were in no stage
interrupted by any riotous demonstrations.

14. After a week's sojourn at Fort Hope, employed in the
settlement of those affairs we proceeded on our journey up Fraser's
River in three large boats.

Though the distance to Fort Yale, does not exceed 15 miles, it
Fort Yaleconditions at
Fort Yalepopulation at
occupied two days, as we travelled slowly, walking nearly the whole way,
attended by the boats, and stopping at all the mining bars on the River
for the purpose of seeing the numerous bodies of miners working there.
We estimated that about 3000 persons are engaged in gold mining on the
banks of that part of the River.

I entered into conversation with the miners, enquired into their
wants, heard their complaints, explained to them the views and intention
of Her Majesty's Government, the reason and object of the regulations
which had been established, and ascertained that their daily earnings
were from five to twenty five dollars to the man, working with cradles or
rockers.
Miningmethods

15. I was much struck with the healthy robust appearance of the
miners who were generally living in canvas tents or log huts,
exposed to many discomforts yet all seemingly in perfect health,
pleased with the country, and abundantly supplied with wholesome food.

16. The whole course of the river exhibited a wonderful scene of
enterprise and industry. I was particularly struck with the ingenious
Sluices
contrivances for distributing water, wherever the natural was not
convenient, small streams had, in such cases, been diverted from their

course, and conveyed in skillfully graded ditches, even from a distance
of 3 miles, and led along the higher parts of the mining bars for sluice
washings. The owners of the ditches, charging a certain sum per inch,
for the water supplied to the sluices. The sluice is far inferior as a
means of washing gold out of the soil, to the cradle, and is a
wonderfully labour saving machine.

17. To give an idea of the sums produced by sluices, and the
advantage of that mode of working gold, I will here relate the
information received from persons who employed those useful machines
on their claims; for example a Mr Cushing, who had 5 hired men
Cushing, Mr., miner
employed on his sluice at wages ranging from 5 to 8 dollars each a day,
received in one week a yield of £2,500 dollars. Another person named
Cade, George, miner
MiningbarsHills
George Cade, who owns a sluice on Hill's Bar, and constantly employs four
hired men at wages of five dollars a day, averaged during the six days
preceding our arrival, 400 dollars a day; and Martin Gallaghar makes
Gallaghar, Martin, miner
Miningreturns
about 32 dollars a day to the man out of ground already washed by the
cradle, to the depth of 18 inches. Those were the greatest instances of
mining success which we met with, in our progress, elsewhere the mines
are not so productive, ranging as before stated, in the deeper and more
developed workings, from 7 to 25 dollars a day. The river was then
Fraser Riverwater level falling
falling rapidly and claims were daily being taken up by new comers
wherever a bit of dry beach could be found, and even those surface claims
were yielding from 2 1/2 to 5 dollars to the hand with the rocker. That
yield however is not considered wages by the California miner, nor any
other sum under six dollars a day.

18. We found a large assemblage of people at Fort Yale,
expecting our arrival, with some anxiety, in order to ascertain
the views of Her Majesty's Government.

19. According to their earnest request I met them the following
day at a public meeting and delivered a short address, in which I
announced the instructions I had received from Her Majesty's
Government, as contained in your Despatch of the 1st of July
last, and the tidings were received with
satisfaction.

20. The same process of organization was gone through here as at Fort Hope, the Indians were assembled, and made no secret of their
dislike to their white visitors. They had many complaints of
maltreatment, and in all cases where redress was possible, it was granted
without delay; one small party of those natives laid claim to a
particular part of the river, which they wished to be reserved for their
own purposes, a request which was immediately granted, the space staked
off, and the miners who had taken claims there, were immediately removed,
and public notice given that the place was reserved for the Indians, and
that no one could be allowed to occupy it without their
consent.

21. A town site was also marked out at Fort Yale, and leases of
Fort Yaletownsite
Fort Yalelease of town lots
Town lots issued to all persons desirous of settling and building
there, upon the same conditions, and at the same charge as the town
lots disposed of at Fort Hope.

22. Several spirit licenses were also issued to check the
profuse and illegal sale of ardent spirits.
Alcohollicensing sale of
Licenseliquor
Liquor.see Alcohol
Fort Yalesale of alcohol

23. Mr Solicitor Pearkes, opened Court, and heard all cases that
Pearkes, GeorgeCourt at Fort Yale
were brought before him, none of them were however of a very serious
nature.

24. Fort Yale is the head of Steam boat navigation and the ascent
of the River beyond that point is exceedingly dangerous at all seasons of
the year, and impracticable during the summer freshets, in consequence of
a succession of rapids which occur in the defiles of the Cascade
mountains, through which the river passes for a distance of 13 miles. A
road, from that point is therefore carried over the mountains by Douglas' Portage,

on which I have lately
Douglas Portagemule trail
RoadsDouglas Portage
authorized a good mule road to be made, and several bridges constructed
at the public charge, for the convenience of transporting
supplies to the upper mining bars, and interior of the country. From
the upper end of Douglas' Portage the country presents a succession of
steep rugged hills, as far as the Indian village of
Quaiome,

and it will take a large sum of money, if even practicable, to make any
better than a difficult mule track, through that District of Fraser's
River.

25. A number of enterprising adventurers have nevertheless
Mule trains
contrived to get several mule trains upon that road, and now transport
supplies for the miners to the forks of Thompson's River, a distance of
100 miles, at a freight charge of two shillings a pound, so that a pound
of flour delivered at the forks of Thompson's River including the price
of the article at Fort Yale, costs the miner exactly 2s/5 1/2d.

26. It was lamentable to hear of the fatal accidents that were
Minersaccidental deaths
daily occuring to miners, who to avoid the high rate of charge for
land transport were striving to make their way in boats and canoes
by the River through those perilous defiles. Seven men were drowned
through such accidents during the few days we remained at Fort Yale,
and there was also a great loss of property at the same time.

27. One of the first objects requiring the attention of Government
is to open up the country by a system of roads, as by the present mode
Roadsneed for
mode of access, the cost of transporting provisions to the interior will
absorb the miners whole earnings, and even at the present high prices of
transport, it will perhaps be impossible by this route to take in food
enough for the support of a large population. In order to colonize the
country therefore it is obviously necessary to make good roads.

28. We found about 2000 whites living near Fort Yale, chiefly in
Fort Yalepopulation at
canvas tents, though some few had just erected habitations of wood.

29. A saw mill 
was just finished, and leases of town lots having been issued, it was
Sawmillat Fort Yale
expected that buildings of a more substantial character would be erected
without delay, such being the generally expressed intention of the
persons who wished to make it their winter homes.

30. Fort Yale is the residence of Mr Hicks, Assistant
Hicks, Richardassistant commissioner of lands
Commissioner of Crown Lands, his office consisting of a simple canvas
Fort Yaleneed for public buildings
tent. Public buildings will be required without delay, say a residence
for the Commissioner, Barracks for the Police, a Post Office, a Court
House and Jail. I am almost afraid to say how much those buildings will
cost, as there is no doubt the expense will be something very large.

31. A regular Police
Police forceappointed at Fort Yale
force

consisting of, One Chief Constable @ 150 dollars a month, Five Policemen
@ 100 dollars each a month, were appointed during my stay at Fort Yale.
This is a very high rate of pay but no men worth having will serve for
less.

32. I caused a body of 14 special policemen to be sworn into the
Police forcespecial police at Fort Yale
civil service at Fort Yale, selected from those persons who had received
leases of town lots, and intended to make that place their permanent
residence; no dependence can be placed on many of the other inhabitants,
who are as yet merely birds of passage, and have no views in Fraser's
River except the one idea of making their pile of gold and leaving the
country. It is that roving class that are likely to give trouble to the
Government.

33. Before I left Fort Yale, Mr Commissioner Hicks, made a
Hicks, Richard
Trading licensesat Fort Yale
Licensestrading
Licensesmining
successful beginning of collecting Trading Licenses from all persons
doing business at Yale. I also directed him to issue mining licenses to
miners holding remunerative claims, but to no others; my immediate object
being to call in the certificates of mining duty, paid in advance by
intending Miners at Victoria, according to the regulation advised in my
Despatch No 28 of the 19th June
last,

it being understood that those certificates would be taken in payment of
their first months mining, from all parties holding such in their
possession, lest after mining successfully they should come forward and
reclaim their money.

34. He accordingly visited the several bars, accompanied by Justice Perrier, George Perrier, and two Policemen, marked out and defined the boundaries of
claims, settled all cases of disputed lines, and collected upwards of 500
certificates, for as many mining claims.
Mininglicenses
Licensesmining

35. I left him on my return to Victoria, in the midst of
that occupation, and after I had ascertained that the several
regulations established for the purposes of providing a public
revenue were being quietly carried into effect.

36. Information was received from Victoria, during my stay at Fort
Squattersat Old Fort Langley
Fort Langleysquatters at
Old Fort Langley
Yale, that some speculators taking advantage of my absence had squatted
on a valuable tract of public land near the mouth of Fraser's River
commonly known as the site of Old Fort Langley, and employed Surveyors at
great expense to lay it out into building lots, which they were offering
for sale, hoping by that means to interest a sufficient number of persons
in the scheme as would overawe the Government, and induce a confirmation
of their Title. To put the public upon their guard, and to defeat a
swindling scheme, which if tolerated would give rise to other nefarious
transactions of the same kind, I thought it necessary to issue a
Proclamation of which a copy is transmitted warning all persons that the
Crown Lands in that part of the country had not been alienated or in any
way encumbered, that any persons making fraudulent sales of land,
appertaining to the Crown, would be punished as the law directs, and
persons holding such lands would be summarily ejected. That Proclamation
was immediately forwarded to Victoria, and
published

with so decided an effect on the public mind, as entirely to break up the
scheme, and we are now laying off the site of Old Fort Langley in Town
Fort Langleysurvey of townsite
Lots, to be sold for account and for the benefit of the public revenue.

37. I am highly pleased with Major Hawkins R.E. who commanded
Hawkins, Maj. John S.
the escort in my journey, having received much assistance from
that active and zealous officer.

38. I will here bring this despatch to a close having thus
briefly described the measures taken, and narrated the chief events
of an excursion of nearly a month's duration.