Tennent to Merivale (Permanent Under-Secretary)

I am directed by the Lords of the Committee of Privy Council
for Trade to acknowledge the receipt of your letter of the 8th.
Instant transmitting for their observations, by the direction of
Secretary Sir E.B. Lytton a copy of a despatch from the Governor
of British Columbia on the subject of a monopoly which has been
established by certain owners of Steam Vessels in the traffic
of Fraser's River.

In reply I am to request that you will state to the Secretary
for the Colonies that unless the proceedings to which the Governor
adverts are of an illegal character, (a point upon which the
opinion of the Law Officers of the Crown appears to have been asked)
My Lords are unable to suggest any remedy for the evils which they
occasion.

They would, however, observe that these evils are of a nature
which under a system of free competition will gradually produce
their own remedy by attracting more capital into so profitable a
field of employment as the traffic on Fraser's River is described
by the Governor to be.

I am to add that My Lords will be glad to be favoured with
the opinion of the Law Officers upon this question so soon as it
shall have been received.