We were favored with your Letter of the 31st May ultimo in
which you stated that you were directed by Lord Stanley to send
us copies of two letters addressed by the Directors of the
Hudson's Bay Company accompanied by Accounts shewing the Amount
to be reimbursed to the Company by Her Majestys Government on
the transfer of Vancouver's Island to the Crown, so far as could
be at present ascertained; together with Copy of a letter
addressed by direction of Mr Secretary Labouchere to the 
Governor and Company, informing them of the intention of Her
Majesty's Government to require this transfer; and of a Report
with which Lord Stanley had been furnished by the Land and
Emigration Commissioners on the subject of these accounts.

That the Company were in possession of exclusive trade with the
Indians of the North West parts of North America (which might be
regarded as embracing Vancouver's Island) under the Crown Grant
of 30th May 1838, of which a Copy was also annexed.

That they were in possession of the land of Vancouver's Island
under the grant of 13th January 1849 of which a copy was also
annexed and [….]

That In repurchasing the Island of the Company under the
provisions contained in the last Clause of that Grant the Crown
would become bound to repay them the sums theretofore laid out
and expended by them on the Island, and "the value of their
establishments, property and effects then being thereon."

You were also pleased to say that, it would be observed from the
Report of the Land and Emigration Commissioners that those
"Establishments and property", were of two Kinds: a portion
having been erected and got together in consequence of and in
relation to, their Commerical operations as a Company carrying on
trade with the Indians under their license; a portion erected and
got together in consequence of their territorial possession of
the Soil, and to facilitate the settlement and government of the
Island.

You were also pleased to add 
that you were directed to request
that we would report for the guidance of Lord Stanley, our
Opinion, whether the Obligation on Her Majesty's Government to
compensate the Company, "if the Crown repurchase the Island,
extends to both these classes of Establishments and property" or
to "the latter only?["]

In Obedience to his Lordships Command, we have perused the
documents submitted to us and have the honor to Report

That we are of Opinion that according to the proper and fair
construction of the Royal grant of 13th of January 1849 the
obligation on Her Majesty's Government to Compensate the Company
if the Crown repurchase Vancouver's Island, extends only to sums
laid out by them upon the Island and premises as owners 
thereof,
and to the value of their Establishments property and effects
being thereon and connected with such ownership, which are
substantially the Classes of Establishment and property
mentioned last in Mr Merivales letter.