"3. The telegraph from Fort Langley to Halifax to be worked for all through business as one through system, and the through rates to be dividedpro ratathe mileage, except that for the lines west of the Sault St. Marie (to be erected by the Hudson's Bay Company as above) an additional mileage proportion of thirty-three per cent. over the actual distance shall be allowed, until those lines pay ten per cent per annum on the outlay, after paying all operating and other expenses, including repairs and renewals, and this allowance shall be a condition with the United States lines between Canada and the Hudson's Bay boundary.
"4. Arrangements to be made by the Montreal Telegraph Company, with parties in the United States, for the construction of a telegraph from St. Paul to the connecting point near Pembina.
"5. The Sault St. Marie and Sarnia to be respectively the boundaries of the Montreal Telegraph Company and of the Hudson's Bay Company and their representatives, for the purposes of this Agreement.
"6. This Agreement to be for twenty-five years.
"(Signed) EDWD. W. WATKIN."(Signed) O. S. WOOD.
"Montreal,August10_th_, 1863."
"Agreement between Mr. Edward W. Watkin and Mr. O. S. Wood, for the construction of the telegraph between Fort Garry and Jasper House, and, if hereafter agreed, between Fort Langley and Jasper House, and Fort Garry and the United States boundary near Pembina (subject to the approval of the Governor and Committee of the Hudson's Bay Company in England).
"1. Mr. Wood to construct a telegraph, and all needful works and stations, from Fort Garry to Jasper House, at the cost of the Hudson's Bay Company, and to put the same in full operating order, and also instruct, and where necessary provide, the staff for the operation and repair of the line.
"2. Mr. Wood to proceed with Governor Dallas to St. Paul, with as little delay as possible, and on to Fort Garry, if necessary; and to make all arrangements required for transporting the telegraph wire, insulators, fittings, instruments, and other materials to Fort Garry; for distributing all materials from Fort Garry; for cutting, preparing, and distributing the poles; and generally for commencing and for completing the work (including a system of posts at proper distances apart) in an efficient manner, and at the earliest period.
"3. Mr. Wood to receive the cordial aid and cooperation of the staff of the Hudson's Bay Company in carrying out this work, under the orders, instructions, and control of Governor Dallas.
"4. Mr. Wood's travelling and other necessary expenses, and the salaries and other necessary expenses of his assistants, to be paid, and, in consideration of his services, he is to receive the sum of ten thousand (10,000) dollars, as a fixed payment; one-third to be paid on the storage of the materials as above at Fort Garry, one-third upon the completion of two hundred (200) miles of the telegraph, and one-third on the completion and operation of the whole line between Fort Garry and Jasper House; and further, should the whole be completed prior to the 15th October, 1864, Mr. Wood is to receive a bonus of two thousand (2,000) dollars, so soon as the line has been one month in operation; and should the whole cost of the work not exceed thirty thousand (30,000) pounds sterling, Mr. Wood to receive a further bonus of fifteen per cent. on all savings upon that sum, payable when the line has been in operation twelve (12) months.
"5. Should the telegraph lines between Fort Langley and Jasper House, and Fort Garry and the United States boundary near Pembina be ordered to be constructed, and the Hudson's Bay Company desire it, Mr. Wood to undertake the construction, on proportionate terms.
"(Signed) EDWD. W. WATKIN."(Signed) O. S. WOOD.
"Montreal,August10_th_, 1863."
"MEMORANDUMby Mr. Wood as to supply of Materials.
"MONTREAL, "August10_th_, 1863.
"We shall want 40,000 insulators—they will cost from $6 to $8 per 100; 35,000 red cedar top pins will cost $3 per 100; 40 sets of telegraph instruments at $60 per set; main and local batteries, $500.
"As some of these articles ought immediately to be prepared, since their preparation takes a little time, I will at once, in accordance with our understanding of this morning, order a small quantity, and the remainder when I receive your confirmation of the whole arrangement. In the meantime I shall go to New York personally, to arrange the exact form and description of insulator, it being very desirable to have this article of the most perfect description.
"Yours faithfully,"(Signed) O. S. WOOD."EDWD. W. WATKIN, Esq."
My official letter to Sir Edmund Head from Montreal, 24th July, 1863, summarized all my proceedings up to its date.
"MONTREAL,"July24_th_, 1863.
"I have the honour to acknowledge your official letter of the 6th July, requesting me to proceed to the Red River Settlement, for the purpose of reporting upon the state and condition of that Settlement, of the condition of the adjoining territory, the prospects of settlement therein, and the possibility of commencing operations for an electric telegraph line across the southern district of Rupert's Land; and associating with me in this inquiry Governor Dallas, of the Red River Settlement, with whom you request me to communicate at once.
"I observe that the Committee consider the lateness of the season will preclude me from doing more than procure such information as will enable them to commence further inquiries at the opening of the next season.
"In consequence of verbal communications received before leaving England, and suggestions unofficially received from members of the new Committee, I have deemed it my duty, though unofficially, to communicate with the Canadian Government, and with those gentlemen likely to form the Government of Canada, should any change of ministry take place on the opening of Parliament, so as, as far as possible (unauthorized as I was), to prevent antagonism to the operations of the new organization pending official communication and explanations from the Governor and Committee.
"No one can be better aware of the state and views of parties in Canada than yourself. The leader of the present Government expresses a strong opinion in favour of the settlement of a separate Crown Colony in the Hudson's Bay district, and this also is the view taken by Mr. Cartier and Mr. J. A. Macdonald, and is strongly concurred in by Mr. Cazeau, the Vicar-General, who, as you are aware, leads the Catholic party in Lower Canada. On the other hand, the feeling of Mr. Geo. Brown and the 'Grits,' as heretofore expressed, has been in favour of annexing the Hudson's Bay territory to Canada, thereby securing that preponderance which would practically settle the question of the future government of the whole country.
"The views of the Duke of Newcastle, and also, so far as I understand them, the views of yourself and your colleagues, being in favour of the establishment of a separate colony unconnected with Canada, I consider the discussions which have taken place have now put the question in its right position here; but at the same time I shall endeavour to see Mr. George Brown, and give such explanations, unofficially, as may at all events prevent his considering that he has not been consulted in this important transaction.
"I have also placed myself in communication with many of those who have advocated the settlement of the North-west, including Professor Hind, who has explored much of the district; and, at my request, Professor Hind has written a memorandum, and letter upon the gold discoveries in the Hudson's Bay territory, which I now enclose.
"I have no doubt that Governor Dallas's own letters will more than corroborate what is stated in this memorandum, and I need not suggest that the most anxious and immediate attention of yourself and the Committee be directed to these discoveries, and to their political and other necessities and consequences.
"Having possessed myself of so much information in reference to the subjects referred to Governor Dallas and myself, I think we shall be able to fulfil the wishes of the Governor and Committee, Governor Dallas being here, accompanied by Mr. Hopkins, without the necessity of my proceeding on this occasion to the Red River; though, should further discussion with the Governor lead to our joint impression that such a visit would be advantageous, I shall not hesitate to undertake the journey.
"In advance of some memorandum to be prepared for you by Governor Dallas and myself, and which I shall beg him to be good enough to draft, I would mention that I have suggested that the Governor issue a circular to the employes of the Company, stating briefly the nature of the recent changes of proprietorship in the Company, and thereby having the tendency to remove any misconceptions which might arise, and which, I regret to learn, have in some few quarters appeared amongst the factors and other officers of the Company, who, as partners in the trade, have considered themselves entitled to be consulted by the late Governor and Council on the subject of the transfer.
"Governor Dallas informs me that the outfit of 1862-3 will show very much improved results; and I have little doubt that the wise and energetic measures which he has initiated since his tenure of office will bring abundant benefits in every direction. The result in the western district, which, if I recollect rightly, exhibited a loss, and which, in the past year, with all exclusive privileges taken away, gives a profit of no less than $166,000, is a convincing proof of what may be effected by improved business organization and thorough energy and firmness. It has, however, been matter of considerable anxiety to me to learn that it is Governor Dallas's desire to return to England next year.
"As regards the future management of the fur trade, Governor Dallas is of opinion that a considerable reduction may be made in the number of the employes; and that by a judicious weeding out of those who, in all large establishments managed from a distance, either were originally, or have become, inefficient, not only will expenses be saved, but a much larger trade be carried on.
"In any considerable change of personnel, the partnership rights of the factors will have to be considered; and one of the gravest and most difficult subjects of consideration will be, how to reconcile the rights of these gentlemen in a share of profit with that reorganization which the commercial interests of the Company evidently require.
"These changes can only be made after discussion with the factors and chief officers; and in some cases it may be desirable to buy out individual interests on a more or less extended scale.
"The 40 per cent. of the net profit of the Company allowed to the factors, in addition to the salaries of considerable amount, is a heavy drain, and involves other considerations opposed to rigid discipline, which need not be further touched upon here, but which are sufficiently obvious. This re-organization can only be effected by giving to the Governor very large and exceptional powers, and without delay. If these powers are given, I am quite confident that the results will be such as abundantly to satisfy the Committee. Hitherto, as it appears to me, far too little discretion has been permitted; and the practice of sending all the accounts home to England, and dealing with them in such a manner that the Governor could not tell from time to time how the financial results of expenses and profits were progressing, has produced its inevitable consequences. In future, I feel convinced, it will be found matter of the utmost consequence to concentrate the accounts at Fort Garry, and to send copies of the vouchers, journals, and ledgers from Fort Garry to England, instead of adopting the reverse practice, and endeavouring, as hitherto, to make the accounts travel as long a distance and be made up over as remote a time as possible. With proper telegraphic and postal communication between the principal posts of the Company and Fort Garry and Montreal, there is no reason why the accounts should ever be two years in arrear in future.
"As regards the settlement of the country, and, involved in that important question, the state and prospects of the Red River, the discoveries of gold above alluded to involve very serious considerations.
"Assuming a rush of miners to different portions of the territory, the machinery of Government for the preservation of order cannot be for a moment neglected, or its construction be delayed. This involves, again, the question of the establishment of a new colony. Is that colony to be governed by the Hudson's Bay Company, who are essentially a trading and landowning corporation, or is it to be governed in the name of her Majesty, the Hudson's Bay Company, so far as the limits of the Crown Colony are concerned, becoming merely traders and landowners, and ceasing to govern as at present?
"All the difficulties at Red River—which, after all, have been much exaggerated, and can be very easily dealt with—would be disposed of at once were a Governor, appointed by the Crown, to be sent out; and it does not follow that representative institutions need at first be granted, though ultimately they would become matter of necessity. The great object of the Governor and Committee—and Governor Dallas and myself perfectly agree in the view—should be to induce the Colonial Government to found a Crown Colony under arrangement with the Hudson's Bay Company with the least possible delay.
"Such a Government would not only relieve the Hudson's Bay Company of an immense responsibility, but it would render titles to land sold by them, and claims to interest in the minerals, far more certain, marketable, and profitable than at present.
"The commercial re-organization of the Company is a matter perfectly easy in the hands of Governor Dallas, empowered to act in accordance with his own best judgment; but this question of the government of the country is, after all, the grand difficulty, and, if successfully negociated, the grand hope of success as regards the future settlement of this vast district.
"As to the suitability of an immense portion of the district west of Fort Garry for eligible settlement, Governor Dallas—who has now made journeys of 1,800 miles in the last year—has no doubt whatever; and I trust that the old traditional phantoms of inhospitable deserts will be finally dismissed from the minds of the new Governor and Committee, especially when they have before them the many letters and reports in evidence of the true state of affairs, which must be in possession of the Company in Fenchurch Street.
"As regards telegraphic communication, I have made every inquiry necessary upon the subject, and Governor Dallas agrees with my views of the importance of connecting the Hudson's Bay posts by telegraphic communication.
"Subject to further discussion, I may indicate my opinion that the route suggested by Governor Dallas through the Hudson's Bay territory, viz., from Jasper House by Edmonton, Carlton, and Fort Pitt to Fort Garry, would be the proper route for a telegraph.
"This portion, as it seems to me, should be constructed at once, and by the Hudson's Bay Company.
"Were it to be constructed in Canada, it would not cost more than 15,000_l_. sterling. It may cost less, though in some cases it may cost more, through your territory; though I am inclined to think that it may be constructed for 20,000_l_. as an outside sum, and that it is impossible that the cost of this portion of the work should exceed 30,000_l_. in any event.
"This outlay being sanctioned, the connection with the American telegraph through Minnesota would be a matter of negociation; and the extension of telegraphic communication to Fort William on the one side, and to Fort Langley on the other, would depend upon the subsidies to be obtained from Canada, and from British Columbia and Vancouver Island.
"I have the assurance of the present leader of the Canadian Government, that the offer to give a subsidy, made last year, will be officially renewed, and I shall endeavour to get this promise put into writing, and send it to you home.
"British Columbia, I assume, would do what the Colonial Office requested, but, in any case, we ought not to commit ourselves to a through communication through Canada and British Columbia without a clear understanding as to the subsidies. At the same time, if you, the Hudson's Bay Company, have command of one thousand miles of telegraph, enabling you to transmit information through your own channels with a new expedition, you will practically have command of the future discussion of this large question.
"I have obtained estimates, and made calculations of the cost of these telegraphic operations, and I have selected a very eligible gentleman, Mr. Wood, the Manager of the Montreal Telegraph Company, who, I am quite sure, will carry out the operation, with the assistance of the employes of the Hudson's Bay Company, and under the orders of Governor Dallas, with perfect success.
I should recommend that immediate steps be taken; and there is no reason, in my opinion, why all the materials should not be on the ground by the end of the coming winter, since much of it can be taken by canoe, and the remainder may be taken across the snow in the winter; and why may not the whole telegraph from Jasper House to Fort Carry be completed by September in next year?
"The present attitude of the Sioux Indians in the State of Minnesota deserves serious attention. Little Crow has waited upon Governor Dallas, and the Governor has written to General Sibley.
"I have suggested whether a visit to Washington would not be desirable, and that the opportunity of assisting the American Government to make peace with these troublesome Indians should be improved, by attempting to get a settlement of your Oregon claims.
"I have the honour to be, Sir,"Your most obedient Servant,"(Signed) EDWARD W. WATKIN."Sir EDMUND WALKER HEAD, Bart., &c. &c.,"Governor, Hudson's Bay Company."
Finding, however, that the Governor and his Committee were not prepared to act with the energy and preciseness I had desired, I closed my, unpaid, mission by the following letter of 26th August, 1863, from my house, Norfolk Street, Park Lane.
"NORFOLK STREET, PARK LANE, "August26, 1863.
"I have to thank you for sending me copies of the official letter from the Secretary of the 13th instant, in reply to my report and private letter of the 24th July, and of your private notes of the 13th and 18th instant, the latter noticing my letter of the 4th instant.
"I desire at once to say that the heads of arrangement which I have written down with the Montreal Telegraph Company and with Mr. Wood, for your consideration, were of course entirely subject to the sanction of the Governor and Committee of the Hudson's Bay Company. And, in accordance with what I understood to be your views, when to-day you were good enough to leave the Deputy-Governor in order to see me in the board room by appointment, I shall consider it my duty to cancel all that has passed, in such a manner as, I trust, will be perfectly satisfactory to your colleagues. There will then remain nothing beyond a responsibility for a few essential materials, as to which time was an object, amounting to not more than a few hundred pounds at the utmost, which I shall take entirely upon myself, under the circumstances of doubt and difficulty as to the opinions of the shareholders of the Hudson's Bay Company which you represented to me. And with a desire to avoid similar complaints, I do not propose to make any charge whatever for my own expenses, or, if I may be excused the word, services, in connection with the mission I have had to undertake. That mission, however, cannot go without explanation, for I am anxious to avoid all misconception now, or hereafter, and I desire, therefore, by a frank statement, at once to court contradiction, should it be merited.
"Having had much to do with the discussions which led to the transfer of the Hudson's Bay Company's property, I had expressed my willingness, inconvenient as it must be to me, to act as a member of a proposed commission of three, including Captain Glyn, R.N., and Captain Synge, R.E., whose duty would be to investigate the position of the undertaking at its head establishment,—to report upon the re- organization of its business, the development of its mineral resources, the settlement of portions of its territory as a new colony, and the opening up of the country by the telegraph and by means of transit. Captain Glyn and Captain Synge had both been consulted, and the Duke of Newcastle had been applied to to obtain leave for Captain Synge at the War Office. I had been led to believe that my services were considered of some value, and I left England on the 20th June, expecting that Captain Glyn and Captain Synge would follow me in a week, and that we should at once proceed to Red River, and send home a first, but full, report by the beginning of October. I understood also that such a report was desired, to clear away any objections to the operations of the re-organized Company which might be factiously raised. And when, after my arrival in Canada, I received the prospectus with your name as Governor of the Company at its head, I found a condition of that document to be that I was to examine and report and advise generally, in concert with other gentlemen, specially qualified for the duty, not only upon the question of telegraphic and postal communication, but also as to the other objects proposed in the scheme officially laid before the public.
"Before leaving England, I repeatedly pressed the necessity of communicating with the Governor and 'wintering partners' of the Company in America, so that they should not hear of the transfer of the property for the first time from the newspapers; and I expected to be specially authorized to give the needful information and assurances. I was no party, I beg to say, to this mention of my name in the prospectus; but my friends and business connections who may have taken shares on the faith of my name, will naturally hold me responsible accordingly. Still, anxious to witness the success of a project which, energetically managed, is so intrinsically sound, I refrained from writing to you to decline the responsibility, hoping that the original plan of delegation, though delayed, would be carried out. That plan, I must observe, involved not a mere commission of engineers to explore the route for a telegraph to Jasper House, as assumed in the Secretary's letter of the 13th inst., but far wider objects, the realization of which would, I venture to think, have given satisfaction at home, and have dissipated many misconceptions, now existing, inimical to the interests of the new proprietary.
"Your letter to me of the 6th July did not reach me till the 20th, and in the meantime the newspaper notices in England led to many official and unofficial inquiries from me, involving difficulty of answer. I found, in fact, that the staff of the Hudson's Bay Company was quite at fault, and that public men in Canada misunderstood the objects of the new organization, for want of information very simple in its nature, but which—except so far as the prospectus authorized me—I had no right to supply.
"Several of the Hudson's Bay Company's chief factors and traders had, it appeared, addressed a memorial to the then Governor and Committee, some months ago, upon the rumoured sale of the property, and had been, as stated to me, informed that no transfer was likely to take place, or would in fact be undertaken without previous consultation; and yet these gentlemen learnt for the first time from the public papers that new arrangements had been made. It was not unnatural, therefore, considering the relations of these gentlemen with the Company, that they should feel much annoyed; nor was it, perhaps, surprising that an influential member of the body should have predicted a general resignation of the factors 'from Labrador to Sitka,' followed by a confederation amongst them, in order to carry on the fur trade in competition with the Hudson's Bay Company, they possessing, as was said, 'the skill, the will, and the capital to do it.'
"The appearance of Mr. Lampson's name as Deputy-Governor, in the absence of any prior explanation, aggravated the first feeling of distrust; for it was said that he and his connections had been, and then were, the Company's great, and often successful, rivals in the fur trade, carrying on a vigorous competition at all accessible points.
"The arrival of Governor Dallas at Montreal some days before my receipt of your letter of the 6th July, enabled these misconceptions to be dealt with; and the issue of a circular by the Governor, together with many personal explanations, and some firmness on the part of Mr. Dallas, will, I trust, very soon remove the want of confidence and dissatisfaction on the part of the staff, which at first looked threatening. These explanations, of course, took time, and rendered the Governor's presence in Canada necessary.
"Governor Dallas and myself made various opportunities of meeting members of the present and of the late Government of Canada, and of talking over the subject of the North-west, and of its organization and government; and I feel convinced that these unofficial discussions were of considerable use, and may help to prevent antagonism and territorial claims on the part of Canada, which, in my opinion, might be very embarrassing, and ought to be foreseen and avoided. Possibly the following article in the Government organ, written by order, and handed to me by the Honorable W. P. Howland, will best exhibit, without further troubling you, the friendly spirit of the Canadian Government before I left for England:—
"(From theQuebec Mercury.)
"'The recent announcements concerning the transfer of the title and territory of the Hudson's Bay Company to a new corporation have naturally awakened considerable interest in Canada. So far, however, no specific intimation of the opinions of the new Company has been given. It is understood that they will not confine themselves to a mere following in the footsteps of their predecessors, but that colonization, telegraphy, the opening up of common roads, and eventually of railroad communication, enter into the scheme which, whether as regards the interests at stake or the capital involved, may be said to be colossal in its character. It is no doubt anticipated by the new Company that the Canadian Government and people will cheerfully aid them in an enterprise which evidently concerns us so closely. Speaking in general terms, we presume that it may be conceded that such anticipations have been correctly formed. The development of Canadian territory, or of British territory immediately adjacent to it, could never be a matter of indifference to the Government or people. Though young in years, still Canada cannot forego those aspirations regarding the future which are naturally suggested by the magnificent domain which, stretches along the northern portion of the Continent. It is for Canadians to occupy and eventually to govern it, and any means which point to the furtherance of an object which may be called spontaneous in the Canadian mind must engender solicitude and evoke encouragement.
"'When Messrs. Howland and Sicotte were in England, they expressed their opinion that Canada would be willing to aid the "Atlantic and Pacific Transit Company" in their enterprise of opening up communication across the Continent through British territory. Upon their return to this country, the matter was fully discussed, and it was understood, subsequently, that the Government of that day was prepared to recommend an appropriation of $50,000 per annum, provided that the Company gave the necessary assurances of their ability to commence and carry out the work. Since that time, however, those who formed that Association appear to have enlarged the field of their operations, and have included the whole of the Hudson's Bay Company, with their territory,prestige, and appliances, within the scope of their operations. But the same general policy which suggested the recommendation of the $50,000 referred to, would also prompt similar assistance to the New Hudson's Bay Company. It can be of little moment to Canada by whose agency the western territory is developed—that which is wanted is development.
"'Judging, then, by what has gone before, and from the exigencies which the spirit of progress imposes upon all Governments, it is not improbable when the new Company has itself determined what they will do, in what shape their enterprise will be promoted, that reasonable assistance will be given them. At present, it seems hardly likely that any exact conclusion has been made by themselves in this matter. Mr. Watkin, in whom a wide and just confidence is placed, not only by the shareholders in the new enterprise, but by the British Government itself, is here, engaged, no doubt, in collecting from the various sources within his reach such information as will enable him to report fully upon the matter. That done, the Company will be able to make propositions and to solicit the kindly aid of Canada. Looking at the wide field for enterprise that will be opened up; at the speedy colonization that is likely to take place, consequent upon the recent discoveries of gold; at the prospect that Canada may be made the high road for commerce between the great East and West; that the trade of the St. Lawrence, and all the various and manifold interests connected with it, will be inspired with new and energetic vitality,—from these and many other considerations it must be evident that the policy for Canada, let her political position as to parties be what it may, is to extend a friendly and greeting hand to those who come with capital and confidence to become the pioneers of a new order of things, which cannot fail to pour riches into the lap of Canada, and to lay the foundation of a prosperity which can be at present but dimly imagined.'
"The importance of assisting the work of opening up the North-west for telegraphic and postal purposes would, I believe, be alluded to in the Governor-General's speech on the 15th. [Footnote: This was done, and the following is an extract from the speech of the Governor-General of Canada, on opening Parliament:—
"I have received a despatch from the Secretary of State for the Colonies, enclosing copies of a correspondence between Her Majesty's Government and the agent of the 'Atlantic and Pacific Transit and Telegraph Company,' in reference to a proposal made by that Company for the establishment of a telegraphic and postal communication between Lake Superior and New Westminster, in British Columbia. The importance of such an undertaking to the British North American Provinces, both in a commercial and in a military point of view, induces me to commend the subject to your consideration. Copies of the correspondence shall be laid before you, and I feel assured that should any proposal calculated to effect the establishment of such communication on terms advantageous to the province be submitted to you, it will receive encouragement at your hands."] But whatever may be the extent or the value—as to which latter point I fear my opinion does not, as I regretted to find, quite coincide with yours—of the sympathy and support of Canada, any new bias in favour of your projects, as promised in your prospectus, has been mainly aided by the belief which, entertaining it, I inculcated, that without loss of time, and with the promptness and energy of English merchants, the new Government of the Hudson's Bay Company would establish, with the aid of the provinces east and west of the Hudson's Bay territory, but without shirking its own share of duty, telegraphic and postal communication in British interests, available for commercial, and requisite for other and even more serious, purposes. That the works would be begun at once, and that the Hudson's Bay Company, so long obstructive, would now set an example of despatch, and that that which had long been hoped for and promised by others, would now be accomplished by them as the pioneer works of an early settlement of the cultivatable portions of the country.
"It is obvious that, unless materials are supplied and plans arranged before the end of September, the overland operations must wait a year's time. Therefore, apparently under a misapprehension of your wishes or policy, as our interview of yesterday showed, I looked out for the best practical man I could find fit to undertake the construction of a telegraph and system of posts, enabling postal and telegraphic service to be worked together. I found that man in Mr. O. S. Wood, an American settled in Canada, the engineer and manager of the 4,000 miles of telegraph owned by the Montreal Telegraph Company, which pays 23 per cent, upon its capital of 100,000_l._; and believing him to be exactly the man for the occasion, I agreed with him, subject to your sanction, to superintend and be responsible for the erection and operation of a telegraph and system of posts between Fort Garry and Jasper House. I do not trouble you with the document, as it is to be cancelled, so far as your Company is concerned; but I may shortly state that it proposed the completion of the works by October, 1864, and in addition to a liberal, but not excessive, payment for Mr. O. S. Wood's work, responsibility, and experience, it awarded a percentage upon all savings on the total sum of L30,000_l._, the outside estimate taken for the whole job, and a small premium for all time saved in the completion of the work. These payments were to be so made that the integrity, completeness, and success of the work would be their main condition.
"I also made a very important conditional agreement with this Montreal Telegraph Company, under which they were to extend a new and independent, or precautionary, line of telegraph from Halifax (Nova Scotia) to Mirimichi and on to Father Point, connecting with the other existing telegraphs up to Arnprior (Ottawa), and another telegraph from Arnprior to the Sault St. Marie, where you have a trading port. On the other hand, subject to the aid of Canada and British Columbia, your Company were to extend, or obtain the extension of, a telegraph from the Sault by Lake Superior to Fort Garry, and another by Jasper House to Fort Langley. All these telegraphs were to be completed by October, 1865. The Montreal Company were also to obtain the extension of the Minnesota telegraph to your boundary near Pembina, you extending your telegraph to that point. Thus, assuming the Fort Carry and Jasper House telegraph to be completed by October, 1864, and knowing that this, and the telegraph from Fort Langley to Jasper House, could be finished as easily, a complete and independent Atlantic and Pacific telegraph, stretching for more than 1,000 miles through your territory, might have been secured,—always assuming that this season of 1863 were saved, which was the great practical object before me. I obtained, as a condition, that in dividing the rates paid for messages, your telegraphs should have a bonus of 33 per cent. so long as your capital did not pay a clear 10 per cent. dividend.
"To this end, I advised you to confirm the order of 175 tons of charcoal wire and of the insulators, post pins, batteries, and instruments needed for the length between Fort Garry and Jasper House (the wire from England, and the other material from Canada and the United States), at a total cost, already given you in complete detail, estimated, when delivered at Fort Garry, as not to exceed 10,000_l._. This statement of cost, and a reference to my past statements, will answer the question in Mr. Fraser's letter of the 13th, as to whether I had calculated the heavy expense of carriage— 20_l._ per ton to Fort Garry. The question shows that it had not been calculated in Fenchurch Street that the poles and timber would be got in the country, and that the whole weight of material to be sent to Fort Garry was about 200 tons at the most.
"I may pause, however, in answer to another similar question, about the relative prices of American and English wire, &c., to say, that the best market for wire is England; and the best market for the less important articles is the United States, while the proper prices chargeable for the best article by the best houses are known to all practical men. I may add, as I am asked what is the weight per mile of telegraphic wire, that 'best charcoal No. 9 electric wire' is 320 lbs. to the mile of 1,760 yards.
"On leaving this subject, I may add, that if on further consideration you determine to store the material above named (cost and carriage 10,000_l._) at Fort Garry, there is yet time to get it out to St. Paul, and some, if not all, may go through to Fort Gany. There is a post three days per week to Fort Garry, and posts go through all parts of your own territory regularly, the 'Winter Express' leaving Fort Garry on Christmas Day. Though, in my humble opinion, not the best thing, still the transmission and storage of that material would be looked upon as an evidence of your intentions, and would help to keep you right in Canada and in your own territory, as also in British Columbia, and would expedite a final and favourable decision as to the proposed subsidy. So strong is my opinion, that I am ready to join any four or five gentlemen of your Committee feeling an interest in the work, in providing and paying for the material itself, if you will send it through at once.
"It will, I assume, be apparent to you how necessary it is to keep the section of telegraph in your own special district in your own hands. Your organization, also, will enable you to convey and erect material very cheaply. As to all details, I refer to the papers already sent over containing full particulars, and showing quantities, kind, cost, means of conveyance, and, more important than all, character of country and proposed route; the latter from the personal experience and knowledge of the country of Governor Dallas and Mr. Hopkins, whose reliability and capacity as advisers no one will question.
"While in Upper Canada, I received proposals for the establishment of steamers on your rivers and lakes: and no doubt these could be arranged for; but as the telegraph is to stand over for the present, I do not add to the length of this paper by any statement on this head.
"I would call attention, however, to the exploration of Dr. Hector, on behalf of the Canadian Government, of the lands adjoining Lakes Huron and Superior. Dr. Hector has surveyed a line of road all the way up to Dog Lake; and Mr. McDougal, the present Commissioner of Crown Lands, appears ready to recommend the gradual, but rapid, construction of roads throughout this territory, and onwards to that of the Hudson's Bay Company. Possibly you may consider the suggestion which I made in reference to obtaining an independent outlet to Lake Superior, in the direction of Superior City, as well worthy of consideration.
"As respects the alleged discoveries of gold, upon which some doubt is thrown in Mr. Fraser's letter of the 13th, I have merely to add that the testimony of Governor Dallas is important, and that the report of Professor Hind appeared to me to contain valuable evidence and reasoning, which can be tested by the further explorations of a geographical commission, for which purpose either Professor Hind, or Sir William Logan, or Mr. Sterry Hunt, or all these well known Canadians, are at once available. Professor Hind's suggestion as to the supply of quicksilver by the Company to miners, may or may not be valuable to a Company desiring to retain the lead of trade in portions of its own territory; but a reference to his report will show that it was not proposed to you as an immediate measure, as surmised. In any case, it is undoubted that gold exists in districts east of the primary rocks of the east flanks of the Rocky Mountains, and that persons are seeking for it in greater or less numbers. We have yet to learn how far the information has spread, and what influence it may have upon the movement of the American population. But, great or small, it is a fact affecting the settlement of the community, which enlarges the general pressure for a decision as to how large tracts of your territory, suitable beyond doubt for human habitation, are hereafter to be governed for the good of the people who may come, and so as to preserve British ascendency in your part of the Continent. Both Governor Dallas and myself have had many discussions as to this, and you have before you already both his views and mine. But the paper gives aresumeof the general case as presenting itself to many thoughtful persons, known to you in Canada, and belonging to the various political parties. It was desirable to record their ideas, and I present them for what they may be worth, wishing you to understand that the proposal for federation and a joint Custom-house is the view of Mr. George Brown. On the other hand, Mr. Cartier, and even Mr. Sandfield Macdonald, desire to see a separate Crown Colony established.
"I now come to the all-important matter of the wise, economical, and efficient working of the business of the Company in America. The paper drawn up under the instructions of Governor Dallas by Mr. Hopkins, and discussed at length between us, is offered to you as an attempt to solve a difficulty which must be got rid of if more business is to be done at less cost, and if the competition around you is to be met, as it easily may be, with thorough success. The deed poll is an arrangement standing in the way of change and extension of your operations: it covers legal questions which some day may give you trouble; and it may be modified in some such manner as that suggested by your assent in the first place, and by the judicious action of Governor Dallas, who should receive your instructions soon, consequent thereon.
"The proposal to substitute a contingent and temporary interest in so much stock of the Company for the 40 per cent. of profits now given to the chief factors and traders, may assist you in placing your unissued shares, in a mode leading to a very large annual saving, to be accompanied by an evident increase of efficiency. For, able as your staff is in general, there are many useless, and even mischievous, persons under pay or profits; and the unfortunate propensities of Sir George Simpson did not lead in his latter years, I fear, to the improvement of the moral tone of your servants. There are cases of favouritism and abuse not at all creditable, such as that of the employment of Sir George's illegitimate son, and the retention of a chief trader notoriously useless and drunken, for many years after the chief factor of his district had reported his demerits to the local governor. But the service is popular, and there can be no difficulty in keeping up a staff fully able to cope with the sharp and energetic men employed by the American traders,—your permanent rivals in business.
"It is perhaps unnecessary further to explain the reasons of my not proceeding to Red River. As before stated, I had expected to do so in company with Captains Glyn and Synge, without whom I should have hesitated to undertake the more extended and responsible task at first proposed. I did not in any event expect that Governor Dallas would come to Canada prior to the receipt of your official letter of the 6th July, and for which I had been waiting from the 30th June until the 20th July; and when he arrived, and especially when I found that the purposes of my proposed journey had been in great measure previously fulfilled by him, it became a question of whether it ought not to be postponed. He had already folly advised the Governor and Committee of the 'state of the Red River Settlement,' of its 'suitability for settlement,' and of the general and highly favourable features of the tracts, over which he had travelled for 1,800 miles in various directions. The best route for a telegraph could be, and was, suggested, to you from his own observations, corroborated and added to by the personal experience of Mr. Hopkins and others, who had often traversed the districts, and had resided for years therein. The entire feasibility of constructing a telegraph across the Continent was not only confirmed by these experiences, but by the practical views of persons consulted, who had set up lines through even more difficult and wilder tracts of country.
"Therefore the objects you appeared to have before you were realized, if not directly through me, yet through the colleague you had selected for me, your own local governor, of whom I cannot express too high an opinion, having been his almost constant companion for above a month, during which every detail, so far as we could grasp it, was thoroughly discussed.
"Having given my best attention and labours to the whole subject for some years, and believing that I might be of more service to you here, since Governor Dallas could not be spared to come home, and could not prudently have left Canada until he had put all your business there in order, I exercised no unwise discretion in returning to England.
"I have now to ask your forgiveness for the length of this paper, and to express my readiness to give any further explanations in my power, while wishing you and your colleagues quite to understand that I have no desire whatever—but far the contrary—to obtrude myself upon you in the control of an enterprise which I honestly believe can be made completely successful by the exercise of even ordinary energy and skill, and which ought to be safe and certain in such experienced and able hands as yours.
"I have the honour to be, dear Sir,"Yours faithfully,"EDWD. W. WATKIN.
"Sir E. W. HEAD, Bart.,"Governor of the Hudson's Bay Company."
One other object I desired to accomplish, was an exchange of boundary between the Hudson's Bay and the United States, with the view to Superior City being brought into British territory by a fair payment and exchange of land. The negociation looked very hopeful at one time, but it was not followed up in London, and it fell to the ground. There are few people who understand that it is not only desirable to do the right thing, but to do it at the right time—that is, when circumstances favour the doing.
I am entitled to say that, owing to the non-acceptance, at the time, of our proposals, much delay in realizing the great object of settling the government and colonizing the territory arose: inadequate terms for the sale and purchase of the vast landed estate of the Company had to be accepted from Canada; and the "wintering partners," not made real partners, as recommended by Governor Dallas and myself, but held at arm's length, had, at last, to be compensated for giving up the old "deed poll" with a sum of 107,055_l._, paid in 1871—ten years after the date of our report to Sir Edmund Head.
But, "all's well that ends well," and the great work is, at last, accomplished.
The Hudson's Bay Company and the Select Committee of1748-9.
The history of the old co-partnery, the "Governor and Company of Adventurers of England trading into Hudson's Bay," ought to be written by some able hand. Samuel Smiles or Goldwin Smith, with the aid of the archives held by the Governor and Committee, would make a book which would go round the world. To publish such a record is a duty incumbent upon Mr. Eden Colville and his colleagues. From no merit or prevision of theirs, a happy and profitable transformation has been made of their undertaking. The individuals, as well as Canada as a State, and the Empire, also, have gained largely. The monopoly has been broken up, under liberal and generous treatment of the monopolists—monopolists who had deserved their monopoly by their able administration; and those who ran the risk, paid the cost, and incurred the anxiety, neither complain nor ask for the credit of their work. The merchant adventurer trading to the Eastern Indies, and the merchant adventurer trading into Hudson's Bay, each on his side of the world, has preserved vast territories to the Crown and people of England. Their conquests have cost the taxpayers of England nothing; while the trade and enterprise they promoted have enriched millions, and have opened careers, often brilliant, for men of courage and self denial, many of whose names will go down to posterity in fame and honour.
The Hudson's Bay Company was constituted under a charter of Charles theSecond. That charter began thus: "Charles the Second, by the grace ofGod King of England, Scotland, France, and Ireland, Defender of theFaith, to all to whom these presents shall come greeting:
"Whereas our dear intirely beloved cousin, Prince Rupert, Count Palatine of the Rhine, Duke of Bavaria and Cumberland; George Duke of Albemarle, William Earl of Craven, Henry Lord Arlington, Anthony Lord Ashley, Sir John Robinson, and Sir Robert Vyner, Knights and Baronets; Sir Peter Colleton, Baronet, Sir Edward Hungerford, Knight of the Bath, Sir Paul Neele, Sir John Griffith, Sir Philip Carteret, and Sir James Hayes, Knights; John Kirke, Francis Millington, William Prettyman, John Fenn, Esquires, and John Portman, citizen and goldsmith of London, have at their own great costs and charges undertaken an expedition for Hudson's Bay, in the Northwest parts of America, for the discovery of a new passage into the South Sea, and for the finding of some trade for furs, minerals, and other considerable commodities; and by such their undertaking have already made such discoveries as do encourage them to proceed farther in pursuance of their said design, by means whereof there may probably arise great advantage to us and our kingdom:
"And whereas the said undertakers, for their further encouragement in the said design, have humbly besought us to incorporate them, and grant unto them, and their successors, the whole trade and commerce of all those seas, streights, and bays, rivers, lakes, creeks, and sounds, in whatsoever latitude they shall be, that lie within the entrance of the streights commonly called Hudson's Streights; together with all the lands, countries, and territories upon the coasts and confines of the seas, streights, bays, lakes, rivers, creeks, and sounds aforesaid, which are not now actually possessed by any of our subjects, or by the subjects of any other Christian Prince or State."
And the adventurers were made "one body corporate and politic, in deed and in name," by the name of "The Governor and Company of Adventurers of England trading into Hudson's Bay."
They were granted "the sole trade and commerce" of "all those seas," &c., &c., "in whatever latitude they shall be;" "together with all the lands and territories upon the countries, coasts, and confines of the seas, bays, lakes, rivers, creeks and sounds aforesaid;" "with the fishing of all sorts of fish, whales, sturgeons, and all other royal fishes;" "together with the royalty of the sea upon the coasts within the limits aforesaid, and all mines royal, as well discovered as not discovered, of gold, silver, gems, and precious stones, to be found and discovered within the territories, limits, and places aforesaid; and that the land be from henceforth reckoned and reputed as one of our plantations or Colonies in America, called Rupert's Land."
All this was to be "holden" "of us, our heirs and successors, as of our manor of East Greenwich, in the County of Kent, in free and common soccage, and not in capite or by knight's service; yielding and paying yearly to us, our heirs and successors, for the same, two elks and two black beavers, whensoever and as often as we, our heirs and successors, shall happen to enter into the said countries, territories, and regions hereby granted."
The adventurers were further granted "not only the whole, intire, and only liberty of trade and traffick, and the whole, intire, and only liberty, use and privilege of trading and traffick to and from the territories, limits, and places aforesaid, but also the whole and intire trade and traffick to and from all havens, bays, creeks, rivers, lakes, and seas into which they shall find entrance, or passage by water, or land, out of the territories, &c. aforesaid; and to and with all the natives and people, inhabitants, or which shall inhabit within the territories, &c."
The charter proceeds to grant the fullest powers for the government of the countries by the adventurers; every power, in fact, provided the laws in force in England were administered. And then it authorizes "free liberty and license, in case they conceive it necessary, to send either ships of war, men, or ammunition, into any of their plantations, forts, factories, or places of trade," "for the security and defence of the same." "And to choose commanders and officers over them, and to give them power and authority, by commissions under their common seal, or otherwise, to continue, or make peace or war with any prince or people whatsoever, that are not Christians, in any places where the said Company have plantations, forts, or factories, or adjacent thereunto, as shall be most for the advantage and benefit of said Governor and Company, and of their trade;" "and also to right and recompense themselves upon the goods, estate, or people of those parts."
Thus, the adventurers had exclusive rights of trade, exclusive possession of territories, exclusive powers of government, and the right to make war, or conclude peace.
By an Order of Council of 4th February, 1748, a petition from one Arthur Dobbs, Esq., and from members of a committee appointed by the "subscribers for finding out a passage to the Western and Southern Ocean of America," was referred to the consideration of "A. Ryder" and "W. Murray," who heard counsel for and against the Hudson's Bay Company, and finally decided that, "Considering how long the Company have enjoyed and acted under this charter without interruption or encroachment, we cannot think it advisable for his Majesty to make any express or implied declaration against the validity of it till there has been some judgment of a court of justice to warrant it."
On the 24th April, 1749, a Select Committee of Parliament reported, through Lord Strange, upon "the state and condition of the countries adjoining to Hudson's Bay, and the trade carried on there." The report begins by stating—
"The Committee appointed to inquire into the state and condition of the countries adjoining to Hudson's Bay, and the trade carried on there; and to consider how those countries may be settled and improved, and the trade and fisheries there extended and increased; and also to inquire into the right the Company of Adventurers trading to Hudson's Bay pretend to have, by charter, to the property of lands, and exclusive trade to those countries;—have, pursuant to the order of the House, examined into the several matters to them referred, and find the particular state thereof to be as follows:—
"Your Committee thought proper, in the first place, to inquire into the nature and extent of the charter granted by King Charles the Second to the Company of Adventurers trading to Hudson's Bay; under which charter the present Company claim a right to lands, and an exclusive trade to those countries; which charter being laid before your Committee, they thought it necessary, for the information of the House, to annex a copy thereof to this Report, in the Appendix No. 1. Your Committee then proceeded to examine the following witnesses:—
"The witnesses were Joseph Robson, who had been employed in Hudson's Bay for six years as a stonemason; Richard White, who had been a clerk at Albany Fort and elsewhere; Matthew Sergeant, who had been employed in the Company's service, and 'understood the Indian language'; John Hayter, who 'had been house-carpenter to the Company for six years, at Moose River'; Mathew Gwynne, who 'had been twice at Hudson's Bay'; Edward Thompson, who had been three years at Moose River, as surgeon; Enoch Alsop, who had been armourer to the Company at Moose River; Christopher Bannister, who had been armourer and gunsmith, and had resided in the Bay for 22 years; Robert Griffin, silversmith, who had been five years in the Company's service; Thomas Barnett, smith, who went over to Albany in 1741; Alexander Brown, who had been six years at Hudson's Bay as surgeon; Captain Thomas Mitchell, who had commanded a sloop of the Company's; Arthur Dobbs, 'Esquire,' 'examined as to the information he had received from "a French Canadese Indian" (since deceased), and who was maintained at the expense of the Admiralty, on a prospect of his being of service on the discovery of a North-west Passage,' 'and who informed your Committee that the whole of that discourse is contained in part of a book printed for the witness in 1744, to which he desired leave to refer'; Captain William Moore, who 'had been employed in Hudson's Bay from a boy'; Mr. Henry Spurling, merchant, who 'had traded chiefly in furs for 28 years past, during which time he had dealt with the Hudson's Bay Company'; Captain Carruthers, who had been in the Hudson's Bay service 35 years ago; Arthur Slater, who had been employed by the Company on the East Main."
It will be seen that one object aimed at in granting a charter to the Hudson's Bay Company was to further the discovery of the "North-west Passage." Beginning in 1719, and ending, probably in despair, in 1737, the Hudson's Bay Company fitted and sent out in the whole six separate expeditions, which the Committee record in their Appendix, as follows (The instructions to the commanders usually ended, "So God send the good ship a successful discovery, and to return in safety. Amen"):—
A List of Vessels fitted out by the Hudson's Bay Company for Discovery of a North-West Passage.
1719.Albany, frigate, Captain George Berley, sailed from England on or about 5th June.Never returned.
1719.Prosperous, Captain Henry Kelsey, sailed from York Fort, June 19th. Returned 10th August following.
Success, John Hancock, master, sailed from Prince ofWales' Fort, July 2nd. Returned 10th August.
1721.Prosperous, Captain Henry Kelsey, sailed from York Fort, June 6th. Returned 2nd September.
Success, James Napper, master, sailed from York Fort, June26th. Lost 30th of same month.
1721.Whalebone, John Scroggs, master, sailed from Gravesend 31st May, wintered at Prince of Wales' Fort.
1723. Sailed from thence 21st June. Returned July 25th following.
1737. TheChurchill, James Napper, master, sailed from Prince of Wales' Fort, July 7th. Died 8th August, and the vessel returned the 18th.
TheMus-quash, Robert Crow, master, sailed from Prince ofWales' Fort, July 7th. Returned 22nd August.
It must be observed that, in 1745, Parliament had offered a reward of 20,000_l_. for the discovery of the North-west Passage. The Act was entitled "An Act for giving a publick reward to such person, or persons, His Majesty's subjects, as shall discover a North-west Passage through Hudson's Streights to the Western and Southern Ocean of America." In the evidence before the Committee, varied opinions were given as to this Northwest Passage. Mr. Edward Thompson, who had been a ship-surgeon, being examined as to the probability of a North-west Passage, said, "He had the greatest reason to believe there is one, from the winds, tides, and black whales; and he thinks the place to be at Chesterfield's inlet; that the reason of their coming back was they met the other boat which had been five leagues further, and the crew told them the water was much fresher and shallower there; but where he was the water was fifty fathoms deep, and the tide very strong; the ebb six hours and the flood two, to the best of his remembrance; that it is not common for the tide to flow only two hours; but he imagines it to be obstructed by another tide from the westward; that the rapidity of the tide upwards was so great, that the spray of the water flew over the bow of the schooner, and was so salt that it candied on men's shoes, but that the tide did not run in so rapid a manner the other way." Captain William Moore, being asked whether he believed there was a North-west Passage to the South Seas, said, "He believes there is a communication, but whether navigable or not he cannot say; that if there is any such communication 'tis further northward than he expected; that if it is but short, as 'tis probable to conclude from the height of the tides, 'tis possible it might be navigable; and it was the opinion of all the persons sent on that discovery that a north- west wind made the highest tides." Captain Carruthers said, "That he don't apprehend there is any such passage; but if there is, he thinks it impracticable to navigate it on account of the ice; that he would rather choose to go round by Cape Horn; and that it will be impossible to go and return through such passage in one year; and he thinks 'tis the general opinion of seamen that there is no such passage." Mr. John Tomlinson, merchant, of London, said, "He was a subscriber to the undertaking for finding a North-west Passage; which undertaking was dropped for want of money: that he should not choose to subscribe again upon the same terms; that he cannot pretend to say whether there is such a passage or not, or whether, if found, it could be ever rendered useful to navigation."
The merchant witnesses were in favour of throwing open the trade of Hudson's Bay; and this Mr. Tomlinson said more ships would be sent, and more people brought down to trade. "This is confirmed," he said, "by the experience of the Guinea trade, which, when confined to a company, employed not above ten ships, and now employs 150;" and "that the case of the Guinea trade was exactly similar (to the Hudson's Bay), where the ships near one another, and each endeavours to get the trade; and the more ships lie there, the higher the price of negroes."
The capital of the Hudson's Bay Company, increased by doublings and treblings of its nominal amount, was, in 1748, 103,950_l_., held by eighty-six proprietors.
The trade between London and Hudson's Bay was carried on in 1748, and for some previous years, by four ships. The cost of the exports was in 1748 5,102_l_. 12_s_. 3_d_., and the value of the sales of furs and other imports in that year amounted to 30,160_l_. 5_s_. 11_d_d. The "charge attending the carrying on the Hudson's Bay trade, and maintaining their factories," in 1748, is stated at 17,352_l_. 4_s_. 10_d_. The original cash capital was 10,500_l_. That capital was "trebled" in 1690, making the nominal capital 31,500_l_.; in August, 1720, it was proposed to augment the cash capital, and to make the nominal total 378,000_l_. But at a "General Court," held on the 23rd December, 1720, it was resolved to "vacate" the subscription "by reason of the present scarcity of moneys, and the deadness of credit." And it was further "Resolved, that in the opinion of this Committee, that each subscriber shall have 30_l_. stock for each 10_l_. by him paid in," "which resolutions were agreed to by this Court." Anyhow, the capital in 1748 is stated at 103,950_l_. A trade which, by sending out about 5,000_l_. a year, brought back a return of 30,000_l_., was no doubt worth preserving; and even taking the outlay for working and maintenance of forts and establishments, there was over 8 per cent, on the nominal capital left, or probably 40 per cent on all the cash actually paid in; not too great a reward for the benefits gained by the country from this trade.
Some particulars of the regulation of exchange of commodities may here be interesting.
The system of trade was simple barter. The equivalent of value was beaver skins; while skins of less value were again calculated as so much of each for one beaver. A kettle was exchanged for one beaver. A pound and a half of gunpowder, one beaver. One blanket, six beavers. Two bayonets, one beaver. Four fire-steels, one beaver. One pistol, four beavers. Twelve needles, one beaver. One four-foot gun, twelve beavers. Three knives, one beaver, and so on over a long list of various articles. Some of the things exchanged nearly 130 years ago, show that the Indians had a good knowledge of trade, and of objects used by civilised people. For example; brandy (English), one gallon, four beavers. Vermilion, one and a half ounces, one beaver; and combs, egg-boxes, files, glasses, goggles, handkerchiefs, hats (laced), hawk- bells, rings, scissors, spoons, shirts, shoes, stockings, and thimbles.
The factors were accused of imposing upon the Indians by using defective weights and measures; and it was said that the doubtful profit thus made, in opposition to the standards sent out from England, was called the "overplus-trade."
In the year 1748, the forts and settlements of the Hudson's Bay Company "in the Bay" were:—
Latitude
Moose Fort 51 28Henley House, or Fort 52The East Main House 52 10Albany Fort 52 18York Fort 57 10Prince of Wales' Fort 59
This limited occupation contrasts in a marked manner with the area of posts, all over the continent, at this later date; see a list at pp. 222-226, and a map in front of this volume.
The skins and other articles imported, and sold at the Company's warehouse, in the City of London, by the "inch of candle"—a mode of auction common in those days (under which the bidding went on till the inch of lighted wax, candle went out)—fluctuated in the ten years between the years 1739 and 1748 very much. In that period the highest and lowest prices were for:—
L s d L s d_Beaver (per lb ) 0 7 101/4 0 5 3Martin (per skin) 0 6 8 0 5 11/4Otter " 0 13 6 0 5 5Cat " 0 18 0 0 10 101/4Fox " 0 11 71/4 0 6 71/4Wolverines " 0 7 0 0 5 5Bear (per skin) 1 6 71/2 0 12 101/4Mink " 0 4 8 0 2 0Wolves " 0 18 11 0 9 01/4Woodshock " 0 12 0 0 8 0Elk " 0 11 7 0 6 1Deer " 0 0 9 0 2 01/4Bed feathers (per lb ) 0 1 41/4 0 1 0Castorum " 0 13 21/4 0 6 1Ivory " ————— 0 0 61/4Whale Fins " 0 2 9 0 1 101/4Wesakapupa " 0 2 4 0 0 61/4Whale Oil (per tun) 18 13 0 10 1 0Goose quills (per 1,000) 0 18 0 0 11 7
"Ivory" only appears once, viz. in the sale of 1738-9. This article may have been, simply, bones of the whale; and "whale oil" only appears four times in the ten years quoted.
The report of Lord Strange's Committee quotes many quaint and solid instructions, as well in times of war as of peace, to the governors and agents on the Bay. A letter from London, dated 10th May, 1744, says, "The English and French having declared war against each other, and the war with Spain still continuing, we do hereby strictly direct you to be always on your guard and to keep a good watch; and that you keep all your men as near home as possible. We do hereby further direct that you cut away all trees, hedges, bushes, &c., or any other cover for an enemy; and lay all level and open round the factory, further than cannon shot, which we compute to be a mile; in order to hinder the enemy from attacking you unawares, and from being sheltered from the factory's guns. But you are to keep up, and repair, your palisadoes, for your defence." … "You are to fire point blank upon any ship, sloop, or vessel that shall come near the factory, unless they make the true signal, and answer yours. The letter proceeds to offer 30_l_. to the widow or children of any man killed in defence of the factory; to every one who should lose a leg, or an arm, 30_l_. Compensation to men receiving smaller wounds; and especial reward to such of the "chiefs, officers, and common men" as might specially distinguish themselves.
The 18th paragraph of this remarkable letter says: "In case you are attacked at Henley House, and, notwithstanding a vigorous resistance, you should have the misfortune to be overpowered, then you are to nail up the cannon, blow up the house, and destroy everything that can be of service to the enemy, and make the best retreat you can to the factory."
Grand old London merchants, these!