The Oregon Treaty—Boundary Question Settled—Company Proposes Undertaking Colonization of North America—Enmity and Jealousy Aroused—Attitude of Earl Grey—Lord Elgin's Opinion of the Company—Amended Proposal for Colonization Submitted—Opposition of Mr. Gladstone—Grant of Vancouver Island Secured, but Allowed to Expire in 1859—Dr. Rae's Expedition—The Franklin Expedition and its Fate—Discovery of the North-West Passage—Imperial Parliament Appoints Select Committee—Toronto Board of Trade Petitions Legislative Council—Trouble with Indians—Question of Buying Out the Company—British Government Refuses Help—"Pacific Scheme" Promoters Meet Company in Official Interview—International Financial Association Buys Company's Rights—Edward Ellice, the "Old Bear." On the 15th of June, 1846, the famous "Oregon Treaty" was concluded between Great Britain and America. The Oregon Boundary Question. By the second article of that instrument it is declared that: "From the point at which the forty-ninth parallel of north latitude shall be found to intersect the great northern branch of the Columbia River, the navigation of the said branch of the river to the point where the said branch meets the main stream of the said river shall be free and open to the Hudson's Bay Company, and to all British subjects trading with the same, and thence down the said main stream to the ocean, with free access into and through the said river or rivers, it being understood that all the usual portages along the line thus described shall, in like manner, be free and open. In navigating the said river or rivers, British subjects, with their goods and produce, shall be treated on the same footing as citizens of the United States; it being, however, always understood that nothing in this article shall be construed as preventing, or intending to prevent, the Government of the United States from making any regulations respecting the navigation of the said river or rivers not inconsistent with the present treaty." According to Article III, "In the future appropriation of the territory south of the forty-ninth parallel of north latitude, as provided in the first article of this treaty, the possessary rights of the Hudson's Bay Company, and of all British subjects who may be already in the occupation of land or other property lawfully acquired within the said territory, shall be respected." The Oregon boundary question was thus settled. Immigrants were pouring into Oregon from all parts of America, and California was already receiving numerous gold miners. It was therefore natural that Vancouver Island and British Columbia should receive attention. The climate was known to be almost perfect, and a motion to encourage colonization in those territories was made in the British Parliament. But the Company was quite alive to the situation. A letter was addressed to Earl Grey, the Colonial Secretary, dwelling on the efforts the Adventurers had made in the British interest, and urging that Vancouver Island be granted to them. The negotiations continued until March, 1847, when Sir J. H. Pelly, the Governor of the Company, again wrote to Earl Grey, informing him that the Company would "undertake the government and colonization of all the territories belonging to the Crown in North America, and receive a grant accordingly." Such a proposition staggered Her Majesty's Ministers, who were for the most part ignorant of the work the Company had already accomplished, of the position it occupied, or of the growth of its establishment on the Pacific. Already it governed and was now busy colonizing the territory, doing both in a manner superior to that adopted by the Americans in their adjacent territories. Such a proposition, too, awakened all the jealousy and enmity against the Company which had been latent for so long. Enmity and jealousy aroused. One of the most determined and virulent in his attacks on the Company at this time was one A.K. Isbister, who addressed a long communication to Earl Grey, besides other letters to public men in England. In answer to Mr. Isbister, Earl Grey forwarded the substance of a report which had been made by To all the petitions, memorials, and complaints of interested parties and self-seekers against the Company, Earl Grey had but one answer. He said he had gone to the bottom of the matter, and he believed the Company was honest and capable. If he had had any doubt about it, this doubt must have been removed by a remarkable despatch of Lord Elgin, Governor-General of Canada, under date of 6th June, 1848. "I am bound to state," he wrote, "that the result of the enquiries which I have hitherto made is highly favourable to the Company, and that it has left on my mind the impression that the authority which it exercises over the vast and inhospitable region subject to its jurisdiction, is, on the whole, very advantageous to the Indians.... More especially it would appear to be a settled principle of their policy to discountenance the use of ardent spirits. It is indeed possible that the progress of the Indians toward civilization may not correspond with the expectations of some of those who are interested in their welfare. But disappointments of this nature are experienced, I fear, in other quarters as well as in the territories of the Hudson's Bay Company; and persons to whom the trading privileges of the Company are obnoxious may be tempted to ascribe to its rule the existence of evils which are altogether beyond its power to remedy. There is too much reason to fear that if the trade were thrown open and the Indians left to the mercy of the adventurers who might chance to engage in it, their condition would be greatly deteriorated."[120] Such was the opinion of the Earl of Elgin on the Hudson's Bay Company, and it was the opinion of all who really understood the Company's aims, its history and its position. "Persons to whom the trading privileges of the Company are obnoxious." It was thus that the Earl laid his finger upon the cause of the whole onslaught. Jealousy of the Company's rights was at the bottom of the whole matter. Opposition of Mr. Gladstone. The Vancouver Island negotiations were suspended for a year, and then the Company, seeing the opposition it had evoked, put forward a less extensive proposal, by which it offered to continue the general management of the whole territory north of the forty-ninth degree, and for colonizing purposes to except Vancouver Island alone. It agreed to colonize the island without any pecuniary advantage accruing to itself, and promised that all moneys received for lands and minerals should be applied to purposes connected with the improvement of the country. The proposition seemed a reasonable one; but in a certain rising statesman, who had inherited his opposition to the Company from his father, and who had many followers, the Honourable Adventurers had a powerful enemy. His name was Mr. W.E. Gladstone, and his enmity to the measure caused the Government to halt. The Company was not without strong friends, as well as enemies. It drew up a deed of charter, and boldly relied on the Earl of Lincoln (afterwards Duke of Newcastle) to procure favour for it in the House of Commons. On the 17th July the Earl opened the subject, and drew from Mr. Gladstone a speech which occupies many columns of Hansard's Debates. With mighty energy he hurled argument, invective, appeal and remonstrance at the heads of his fellow-members. It was even suggested that he was The grant of Vancouver Island. It was voted to refer the matter to the Privy Council Committee for Trade and Plantations; and on the 4th September this body reported in favour of granting Vancouver Island to the Hudson's Bay Company. The grant was duly signed, sealed and delivered on the 13th January, 1849. The Company, in the midst of its triumph, was not satisfied. It had aroused enmities which it was powerless to allay. It had been lured, by too zealous friends, into making promise of a policy which it foresaw could not be followed without ruinous cost. It also foresaw that the rush to the Pacific, consequent upon the gold-fever of 1849, would bring about new interests not its own and, in brief, that the colony would pass from its hands, and that all its outlay and labour would have been expended without profits. What it anticipated came about sooner than it expected. Opposition had been collecting from without, and had been engendered from within. Meanwhile, in the eastern as well as the western extremity of the Company's domains, agitation and malcontent was being fomented. Certain residents of Red River settlement had forwarded petitions to Earl Grey. Lieutenant-Colonel Crofton, in command of Her Majesty's troops at Fort Garry, was asked to send in a report of the state of affairs at Red River. At a little later period his successor, Major Griffiths, was requested to do the same. Neither had any connection with the Company, and both might therefore be regarded as unbiassed as well as fully informed. Both exonerated the Company from most of the charges brought against them, and as to the remainder, which were preferred on untrustworthy evidence, they professed ignorance. They rendered full credit to the Company "for the manner in which it has of late years exercised its powers." In the year of the Oregon treaty the Company caused some valuable exploration to be made of its northern coasts. Dr. Rae and his party reached Chesterfield Inlet 13th July, 1846, passed Repulse Bay safely, and conveyed their boats thence into Committee Bay, at the bottom of Boothia Gulf. The Company's expedition wintered at Repulse Bay, and again entering Committee Bay, in April, 1847, by the following month had completed a survey, with the exception of Fury and Hecla Straits, of the entire northern coast of the North American continent. Fate of the Franklin Expedition. In the previous year, 1845, Sir John Franklin, who had, since his last travels in Rupert's Land, been Governor of Tasmania, was offered the command of another expedition in search of the north-west passage by the British Government. He embarked in the Erebus and Terror, and his ships were last seen on the 26th of July in Baffin's Bay by a whaler. Several years passed without tidings of the expedition. In 1850 traces of the missing ships were discovered by Ommaney and Penny, and it was thus ascertained that the first winter had been spent behind Beechy Island. No further news came until the spring of 1854, when an expedition of the Hudson's Bay Company, under Dr. Rae, from Republic Bay, received information from the Esquimaux that four years before about forty white men had been seen dragging a boat over the ice near the north shore of King William's Island. Somewhat later in the same season of 1850, declared the natives, the bodies of the entire party were found at a point a short distance to the north-west of the Great Fish River. To prove their assertion the Esquimaux produced various articles which were known to have belonged to the ill-fated explorer and his party. The Government having previously offered a reward of £10,000 "to any party, or parties who, in the judgment of the Board of Admiralty, shall, by virtue of his or her efforts, first succeed in ascertaining" the fate of the missing expedition, Dr. Rae laid claim to and obtained this reward. Another expedition under Anderson and Stewart went in two canoes, in 1855, down the Great Fish River, and further verified the truth by securing more European articles and clothing from the Esquimaux. It now became clear that a party from the Erebus and Terror had sought to reach, by the Fish River route, the nearest Company's post to the south, and had been arrested by the ice in the channel near that river's mouth. In 1857 Lady Franklin, whose efforts to set at rest the fate of her husband had been most heroic, sent out the yacht Fox, commanded by Captain (afterwards Sir Leopold) McClintock, who had already taken part in three expeditions despatched in search of Franklin. In the following Franklin was virtually the discoverer of the long-sought north-west passage, inasmuch as he had all but traversed the entire distance between Baffin's Bay and Bering's Strait. The North-West Passage discovered at last. Yet it should be observed that in 1853 Commander McClure, who was in charge of an Arctic expedition from the Pacific, was rescued near Melville Island by Sir Edward Belcher, who came from the side of the Atlantic, and both he and his ship's company returned to Europe via Baffin's Bay. Thus the secret of the north-west passage was disclosed at last. It was now known that a continuous passage by water existed between Baffin's Bay and Bering's Strait, and that was the last of the voyages undertaken for the purpose through Rupert's Land. For ten years past the profits of the Company had already increased. In 1846, there were in its employ five hundred and thirteen articled men and thirty-five officers. It controlled a net-work of trading routes between its posts situated between the Atlantic and the Pacific oceans. In 1856 it had one hundred and fifty-two establishments under Governor Simpson's control, with sixteen chief factors and twenty-nine chief traders, assisted by five surgeons, eighty-seven clerks, sixty-seven postmasters, five hundred voyageurs and one thousand two hundred permanent servants, in addition to sailors on sea-going ships and other employees, numbering altogether above three thousand men. Imperial Parliament appoints Select Committee. At the beginning of 1857 the opponents of the Company were on the qui vive. They had at last succeeded in procuring a Select Committee of the Imperial House of Commons for the purpose of considering "the state of those British possessions in North America which are under the administration of the Hudson's Bay Company, or over which it possesses a license to trade." The committee was composed of the following persons: The Right Honourable Henry Labouchere (afterwards Lord Taunton), Sir John Pakingham, Lord John Russell, Mr. Gladstone, the Right Honourable Edward Ellice, Lord Stanley, Viscount Sandon, and Messrs. Lowe, Adderley, Roebuck, Grogan, Kinnaird, Blackburn, Charles Fitzwilliam, Gordon, Gurney, Bell and Percy Herbert. Evidence was taken from the 20th of February to the 9th of March, which comprised the first session of the committee. It sat again in May, and the examination of the numerous witnesses ended on the 23rd of June. Public interest was aroused, and the Company and its doings again became a standing topic at London dinner-tables. The Honourable Adventurers were again on their trial—would they come out of the ordeal as triumphantly as on the occasion of the previous great investigation a full century and a decade before? The list of witnesses comprised some of the best known names of the day. There were: Sir John Richardson, Rear Admiral Sir Lord Elgin had showed the weak spot of the opposition. Mr. Ross indicated it more precisely. "I believe," said he, "there are certain gentlemen at Toronto very anxious to get up a second North-West company, and I daresay it would result in something like the same difficulties which the last North-West company created. I should be sorry to see them succeed. I think it would do a great deal of harm, creating further difficulties in Canada, which I do not desire to see created." At the close of the evidence, Mr. Gladstone proposed Toronto merchants petition Legislative Council. As an illustration of the spirit prevalent in many quarters in Canada towards the Company, the petition which on the 28th of April, 1857, reached the Legislative Council of Canada, may be cited. It emanated from the Board of Trade of the City of Toronto. After reciting in anything but a respectful manner the history and status of the Company, it declared that the Company acted under a "pretended" right, that it "assumed the power to enact tariffs, collect custom dues, and levy taxes against British subjects, and has enforced unjust and arbitrary laws in defiance of every principle of right and justice." The petitioners besought the attention of the Government "to that region of country designated as the chartered territory, over which the said Company exercises a sovereignty over the soil as well as a monopoly in the trade, and which said Company claims as a right that insures to it in perpetuo, in contradistinction to that portion of the country over which it claims an exclusive right of trade, but for a limited period only." The "gentlemen from Toronto" admitted that this latter claim was founded upon a legal right, but submitted that a renewal of "such license of exclusive trade was injurious to the interests of the country so monopolized, and in contravention of the rights of the inhabitants of Canada." In this year the claims of the Company in connection with the Treaty of 1846 were finally arranged by a special treaty "Whereas," so ran the new treaty, "it is desirable that all questions between the United States authorities on the one hand, and the Hudson's Bay and Puget's Sound Agricultural Companies on the other, with respect to the possessary rights and claims of these companies, and of any other British subjects in Oregon and Washington Territory, should be settled by the transfer of those rights and claims to the Government of the United States for an adequate money consideration: It is hereby agreed that the United States of America and Her Britannic Majesty shall, within twelve months after the exchange of the ratification of the present treaty, appoint each a commissioner for the purpose of examining and deciding upon all claims arising out of the provisions of the above-quoted articles of the Treaty of June 15, 1846."[121] Unwholesome temper amongst the Indians. The commercial rivalry existing between the Russian-American Company and the Hudson's Bay Company, which held a trading lease of part of the sea-bound territory, naturally tended to engender and keep alive an unwholesome temper amongst the Indians. They were frequently troublesome, and occasionally murderous. In May, 1862, between two hundred and fifty and three hundred of the natives on the west side of Chatham Strait, twenty-five miles north of Cross Sound, seized on the quarter-deck the captain and chief trader of the Company's steamer Labouchere, of seven hundred tons In September, 1860, after an illness of but five days' duration, died Sir George Simpson, the Governor-in-Chief in Rupert's Land, amidst universal regrets. He had been often, indeed persistently, attacked by the Company's enemies during his tenure of his office; indeed almost up to the day of his death he was charged with being autocratic and tyrannical, but none could deny him great ability and exceptional fitness for his post. He had taken a powerful interest in northern discoveries, and superintended the fitting out of several Arctic expeditions. For his services in this direction he had been knighted in 1841, and soon afterwards had set out on a journey round the world, of which he published an interesting relation. In his late years he resided at Lachine, where he entertained the Prince of Wales, on his visit in 1860. His successor was Mr. A.E. Dallas, who having made a considerable fortune in China, had for some time served the Company on the Pacific coast. Thanks to his prudence, the landing in 1859 of General Harney and a detachment of American troops on the island St. Juan, between Vancouver's Island and the mainland, had been controlled and check-mated by the proposal of joint occupation until negotiations should settle the question of right. He was returning home to England, intending to retire, when he was persuaded to accept the Governorship of Rupert's Land. Proposals to buy out the Company. At the head of a scheme for a transcontinental road and telegraph system was Mr. (afterwards Sir) Edward Watkin, well known as the promoter of the Grand Trunk Railway. For this scheme an Imperial subsidy was sought. The dissensions which ensued between the various parties interested At the beginning, however, the Duke of Newcastle, then Colonial Secretary, had amiably undertaken to sound the Company as to their willingness to allow a road and telegraphs through their territory.[122] In response to this demand the aged Governor answered, almost in terror, to the Duke of Newcastle, "What, sequester our very tap-root! Take away the fertile lands where the buffaloes feed! Let in all kinds of people to squat and settle, and frighten away the fur-bearing animals they don't hunt and kill! Impossible! Destruction—extinction of our time-honoured industry. If these gentlemen are so patriotic, why don't they buy us out?" To this outburst the Duke quietly replied: "What is your price?" Governor Berens answered: "Well, about a million and a half." Discussions as to the price. On hearing this, Mr. Watkin was anxious that the British Government should figure among the purchasing parties. Purchase seemed the only way out of the difficulty. The As for a name for the new proposed Crown colony, Dr. Mackay had suggested to Mr. Watkin, "Hysperia," and this name was mentioned to the Duke. Its similarity to "hysteria" probably caused it to be dismissed. Opposition of the Colonial Office. The decision of the Duke of Newcastle on the whole proposition was that were he a Minister of Russia he would agree to purchase the land from the Hudson's Bay Company. "It is," said he, "the right thing to do for many, for all reasons; but ministers here must subordinate their views to the Cabinet." Nevertheless, he went so far as to believe that it was right. But the Colonial Office were in positive opposition to the scheme. It was now clear that the promoters of the Pacific transcontinental railway could hope for no direct pecuniary aid from the British Government. They must act for themselves. After some correspondence, it was arranged that the promoters of the "Pacific scheme," as it was called, should meet the Governor and Committee of the Hudson's Bay Company in an official interview. The date was the 1st of December, 1862. "The room," writes Sir Edward Watkin in his Memoirs, "was the Court room, dark and dirty. A faded green cloth, old chairs, almost black, and a fine portrait of Prince Rupert. We met the Governor, Berens, Eden Colville and Lyell only. On our part there were Mr. G.G. Glyn (the late Lord Wolverton), Captain Glyn (the late Admiral Henry Glyn), and Messrs. Newmarch, Benson, Blake and myself. Mr. Berens, an old man and obstinate, bearing a name to be found in the earliest lists of Hudson's Bay shareholders, was The "Pacific Scheme" discussed. But the Governor showed himself more reasonable; a calmer discussion ensued, and the promoters were informed that the Company would be ready to make a grant of land for the actual site of a road and telegraph through their territory. Nothing more would be vouchsafed, unless, as they had informed the Duke of Newcastle, they were paid for all their rights and property. "The offer," observes Sir Edward, "of a mere site of a road and ground for telegraph poles was no use. So, just as we were leaving, I said, 'We are quite ready to consider your offer to sell; and to expedite matters, will you allow us to see your accounts, charters, etc.' They promised to consult their Court." The result of this promise was that the promoters were put into communication with "old Mr. Roberts, aged eighty-five, "Next day I had a long private interview with Mr. Maynard, but could not see the balance-sheet The same day, I saw the Duke with Messrs. Glyn and Benson." On the following day, the chief promoter spent the forenoon with Mr. Roberts, the accountant, and his son and assistant, at Hudson's Bay House. "Mr. Roberts told him many odd things," he says; "one was, that the Company had had a freehold farm on the site of the present City of San Francisco of one thousand acres, and had sold it just before the gold discoveries for £1,000, because two factors quarrelled over it. I learnt a great deal of the inside of the affair, and got some glimpses of the competing North-West Company, amalgamated by Mr. Edward Ellice, its chief mover, many years agone, with the Hudson's Bay Company. Pointing to some boxes in his private room one day, Mr. Maynard said, 'There are years of Chancery in those boxes, if anyone else had them.' And he more than once quoted a phrase of the Old Bear, 'My fortune came late in life.'" The International Financial Association. In spite of the Duke's indisposition, he expressed the greatest interest in the progress of the negotiations. Yet the prospect of Government aid was now remote. Two ways were open to raise the money for a purchase of the Company's rights—to secure the names and support of fifteen persons, millionaires, for £100,000 each; the other to hand the proposed purchase over to the newly-organized International Finance Association, who were eager to find some important enterprise to put before the public. The first method seemed to recommend itself to the promoters; and the friends of the project could easily have underwritten the necessary A Hudson's Bay Company prospectus was issued. It was understood that the International Financial Association were merely agents, that the shares would not remain in their hands, but would pass to the proprietors, who would, of course, only enjoy the rights such shares carried. They would, in fact, be a continuation of the Company, only their efforts would be directed to the promotion of the settlement of the country; the development of the postal and transit communications being one of the objects to which they were pledged. A new council had been formed, and amongst its members was Mr. Eden Colville, one of the old committee, whom the Duke praised publicly in the highest terms, as a "man of business and good sense." There was one man in London who was astonished at what had taken place. Edward Ellice still lived, but his commanding figure was bent by the weight of years. As we have seen, it was he who, in 1821, played the principal part in the amalgamation of the rival companies. He had grown to be proud of the Company, proud of its history, of its traditions, of its service; and he seemed to detect in this transfer, its fall. A few months before his death, in 1863, he met one of the negotiators at Burlington House. He confronted him for some moments without speaking, in a state of abstraction. Then he passed on, like a man "endeavouring to recollect a long Ellice had said, before the Parliamentary Committee of 1857, in reply to a question put by a member as to what probability there was of a settlement being made, "within what you consider to be the southern territories of the Hudson's Bay Company?" "None; in the lifetime of the youngest man now alive!" |