Colvile to Russell

On the 24th November 1852 I submitted to the Right Honourable Sir
John Pakington, then Secretary of State for the Colonies, a Report on
the transactions of the Hudson's Bay Company in relation to Vancouver's
Island, from the date of the Grant thereof until the 27th April 1852,
and I have now the honor to submit to your Lordship the following Report
on the further proceedings of the Company in reference to the
colonization of that Island.

On comparing this Report with the former, I trust that it will
appear to your Lordship that the efforts of the Company have been
tolerably successful, considering the peculiar difficulties which they
have had to contend with, such as the great distance of the Island from
this country, and consequent length of the voyage, the high rate of
wages given in the Gold districts of California, which unsettles the
minds of the labouring population, the system of free grants of land
that prevails on the opposite shore of the Straits of De Fuca, and the
distance from any market, except those on American territory, where the
Import duties are almost prohibitory.

I have much pleasure in stating that the appearances of Coal that
were discovered by parties in the employment of the Hudsons Bay Company
at Nanaimo, of which mention was made in my previous Report, were not
fallacious. From the information received from the Island, I have
little doubt that a valuable and extensive Coal field exists in that
locality. The Company have caused pits to be sunk, and have sent out
and erected Steam Engines and other machinery for working the Coal, and
the amount expended in these operations, including the price of the
land, now exceeds 25,000.

With reference to this important undertaking, your Lordship will
observe in the accompanying Statement of the land disposed of that this
Company appear as the purchasers of a tract containing about 6200 acres
at the stipulated price of 1 per acre.

It has been considered very desirable to develop the mineral
properties of the Island, particularly that of Coal, as an article of
export which would meet with a steady and extensive market. But no
Settler has yet appeared who was willing, or possessed of sufficient
capital to engage in such an undertaking, and this has induced the
Governor and Committee to purchase the above mentioned tract of land for
the Hudson's Bay Company, and to establish the Coal works, which they
trust will tend to encourage the colonization of the Island, and at the
same time be remunerative to the Company.

It is hoped that their example may operate as a stimulus to others
to work the minerals on the lands acquired by them, and thus add
materially to the general prosperity of the Colony. In connection with
the workings undertaken by the Company, eighty miners, with their
families, have already been sent from this country, of whom upwards of
sixty are now fully employed.

The Pugets Sound Agricultural Company have purchased and paid for
2574 acres of land, & established four farms, on which the necessary
buildings have been erected, and their outlay in these operations, and
in bringing Cattle and Sheep from their farms in the Oregon territory,
amounts to about 17,000.

The general result of the Company's operations stands as follows

1st
Quantity of Land sold.

Since the date of the last return there have been sold 11455
acres of land, at the fixed price of 20/- per acre.

2nd The number of Settlers.

A list is appended hereto of the purchasers of 20 acres of land, &
upwards, the number of whom amounts to forty three, and a return is
added of purchasers of Town and Suburban lots, the majority of whom have
erected houses thereon, varying in value from 50 to 1000 each. Many
of these Settlers have been Officers & Clerks in the service of the
Hudson's Bay Company, and some of them are still in the employment of
the Company.

3rd The number of Emigrants

In addition to the 435 Emigrants reported in my previous letter,
the following have been sent out by the Hudson's Bay Company

Males Females Children

in 1852 14 1 4

" 1853 87 41 87

" 1854 45 38 45

Total 146 80 136

making with those of previous years a total of 797.

Governor Douglas has been desired to transmit to England a Census
of the Colony, and such other statistical information as may be
interesting, and as soon as the Same are received I shall do myself the
honor of submitting them to your Lordship.

4th Monies received for Sales of Land

The Amount received since 27th April 1852 up to 30th November
1853, the date at which the last accounts in the Country are made up, is

4770.12.8

Of which there falls to the Hudson's

Bay Company 1/10th 477.1. 3

and the remainder 4293.11.5

is held in trust for Colonization purposes.

This is exclusive of the purchase money of the Coal field by the
Hudson's Bay Company, amounting to 6193, which, after deducting 10 per
cent, was credited to the Colonial Trust Fund on the 7th Ultimo, the
extinguishment of the Indian title having only been effected on the
23rd December last, and announced by the Mail of 30th March.

5th Monies received in respect of Coal and other Minerals.

There have been sold and exported by the Hudson's Bay Company
since 27th April 1852 up to 30th Novemr 1853, 4062 9/10 Tons of
Coal, the Royalty on which, at 2/6 p ton, amounts to

507.16.7

Of which there falls to the Hudsons

Bay Company 1/10th  50.15.7

and the remainder 457. 1.-

is held in trust for Colonization purposes.

6th Monies received in respect of Timber

There have been cut upon the public lands of the Colony, and
exported, 1075 loads of Timber, the Royalty on which, at 10 per load
amounts to 44.15.10

Of which there falls to the Hudson's

Bay Company 1/10th  4. 9. 7

and the remainder 40. 6. 3

is held in trust for Colonization purposes.

7th Spirit Licences

The proceeds of the Spirit Licences received up to the 30th
November 1853, are 220 which have also been carried to the credit
of the Trust Fund.

8th Expences incurred for Colonization and Improvements.

Amount expended in the Colony from 27th April 1852 to 30th
November 1853, and in London from 27th April 1852 up to 1st May
1855, 5614.9.-

9th Surveys

Two hundred square miles of land have been surveyed, and laid out
into Districts by the Surveyor and his Assistants. To connect these a
high road of the proposed length of thirty miles is in progress of
construction, and several bridges have been built, one of which, across
the Portage Inlet, connecting the harbours of Victoria and Esquimalt, is
200 yards in length, and was erected at an expence of upwards of 1000.

10th Churches and Schools

A church capable of containing 500 persons has been erected at
Victoria, and the Reverend Edward Cridge, a clergyman of the Church of
England, who was sent out by the Hudsons Bay Company in September, to
replace the Revd Mr Staines, deceased, has been appointed thereto.

There are three Schools for boys and girls on the Island, conducted
by Schoolmasters and their wives, who, I believe, give satisfaction to
the inhabitants.

The Hudson's Bay Company have erected about 50 substantial houses
at Nanaimo for the Colliers employed at the Coal Mines, and their
families; and it is proposed to send out, in the course of this year, a
clergyman to attend to the spiritual wants of these people. In the
meantime a School is successfully conducted there by Mr Bayley, who was selected and sent out, as specially qualified for the duty, by the
Hudsons Bay Company.

Two Flour Mills and five Saw Mills are in operation, and it is to
be hoped that, with the help of the Puget Sound Agricultural Company's
farms, the Colony, at no distant time, may be self-supporting: at
present it has been found necessary to import a considerable quantity of
the Flour and other provisions consumed on the Island.

The important subject of giving encouragement to respectable and
well conducted persons to settle permanently on the Island, has from
time to time engaged the anxious consideration of the Governor and
Committee of this Company, and, with a view of furthering this object,
it has been agreed to give to every agricultural labourer employed by
the Hudson's Bay and Puget Sound Companies the privilege of receiving a
free grant of from 25 to 50 acres of land after five years service,
these grants to be made from the land acquired by the Puget Sound
Agricultural Company and the Fur Trade reserve, and not from the public
lands of the Colony. This arrangement will no doubt operate
beneficially by inducing steady and industrious habits on the part of
this description of people, and ultimately ensure a succession of
valuable and well conducted Settlers on the Island.

The Governor & Committee are of opinion, however, that with respect
to such of those parties as may be desirous of increasing the extent of
their holdings, and to others whose eligibility can be satisfactorily
established, it would be desirable to modify the existing regulations
regarding the payment of the purchase money of land, by empowering the
Governor of the Island, under certain restrictions, to receive such
payment by four annual instalments of 5s/- each. This arrangement
would enable an industrious agricultural labourer to make progress with
a very small Capital, but which would be yearly increased by the profits
of his labour.

Reference has already been made to the system of free grants which
prevails in the American territory, and the Governor and Committee
apprehend that while that system continues in the immediate vicinity of
Vancouver's Island, some liberal arrangement, such as that now
suggested, will be necessary to induce emigrants to adopt the Island as
their home.

I am requested to state that it will be satisfactory to the
Committee if your Lordship should concur in these views, in which case they will transmit the necessary instructions to Governor Douglas for carrying them into operation without delay.

Referring to the copy of the account forwarded herewith, which your
Lordship will at once perceive merely contains a statement of the
payments made on account of the Vancouver's Island Trust Fund, and has
no reference to the large expenditure by the Hudson's Bay Company in and
upon the Island.