_Negociations for Purchase of the Hudson's Bay
Property_.
In response to our demand for a large tract of land through the
"Fertile belt" of the Hudson's Bay territory, the Governor answered,
almost in terror, to the Duke of Newcastle:--"What! sequester our very
tap-root! Take away the fertile lands where our 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?" Mr. Berens, the Governor,
answered: "Well, about a million and a half."
Finding that our demands for land alongside the proposed road and
telegraph were not acceptable to the Governor and Court of the Hudson's
Bay Company, we had nothing for it but either to drop the Pacific
transit proposal, after many months of labour and trouble, or to take
the bold course of accepting the challenge of those gentlemen, and
negociating for the purchase of all their property and rights. Before
making a decided move, however, I had many anxious discussions with the
Duke as to who the real purchaser should be. My strong, and often
urged, advice was, that whoever the medium of purchase might be, Great
Britain should take to the bargain. I showed that at the price named
there could be no risk of loss; and I developed alternative methods of
dealing with the question:--That the fur trade could be separated from
the land and rights, and that a new joint stock company could be
organized to take over the trading posts, the fleet of ships, the stock
of goods, and the other assets, rights, and privileges affecting trade,
and that such a company would probably pay a rental--redeemable over a
term of years, were that needful to meet Mr. Gladstone's notions--of 3
or 3-1/2 per cent, on 800,000_l_., leaving only 700,000_l_.
as the value of a territory bigger than Russia in Europe. Such a
company would have to raise additional capital of its own to modernize
its business, to improve the means of intercourse between its posts,
and to cheapen and expedite the transport to and fro of its
merchandise. I carefully described the nature of these changes and all
that they involved. The Duke seemed to favour this idea. Then I pointed
out that, if desired, a land company could be organized in England,
Canada, and the United States, which, on a similar principle of rental
and redemption, might take over the lands--leaving a reserve of
probably a fourth of the whole as the, unpaid for, property of the
Government--at the price of 700,000_l_. If these proposals
succeeded, then all the country would have to do was to lend
1,500,000_l_. on such security as could be offered, ample, in each
case, in my opinion. But I said it must be a condition, if these plans
were adopted, to erect the Hudson's Bay territory into a Crown Colony,
like British Columbia, and to govern it on the responsibility of the
Empire. I showed that this did not involve any large sum annually; and
that, as in the case of British Columbia, the loss would be turned into
a profit by sales of the one-fourth of the land to be given, in return
for the responsibilities, taken, to our country. Again, the cost of
government might be recouped by a moderate system of duties in and out
of the territory, to be agreed with Canada and British Columbia on the
one hand, and the United States on the other. This, in outline, was one
plan. The next was, to sell a portion of the territory to the United
States at the price, which I knew could be obtained, of a million. A
third plan which I suggested was, to open up portions of the "Fertile
belt" to colonization from the United States. To offer homes, in a
bracing, healthy country--with fertile lands and long waterways--to the
multitudes of men and women in Ohio, Kentucky, Maryland, and many other
States, who desired to flee from war and conflict; whose yearning was
for settled government and peace. These men and women had still
resources, friends, and credit, and if our country opened its arms to
them, they would flock to the old red flag, and bring their energies to
bear on the industrial conquest of these vast regions to the West.
But--if any man went, morally, down on his knees to another, I did to
the Duke, to beg, beseech, implore,--that this great bargain, this
purchase of purchases, of a Continent, should be made for our country,
and should be untainted by even the suspicion of a mercantile
adventure. In the end, I thought I had converted the Duke, well
disposed always, to the wisdom of such a policy. Following this line,
we discussed many details. He "would not sell," but he would
"exchange;" and, studying the map, we put our fingers upon the
Aroostook wedge, in the State of Maine--upon a piece of territory at
the head of Lake Superior, and upon islands between British Columbia
and Vancouver's Island--which might be the equivalent of rectification
of boundary on many portions to the Westward along the 49th parallel of
latitude.
Further, at one of our many interviews a name for the new Crown Colony,
if established, was mentioned--"Hysperia." Dr. Mackay had suggested it
to me. The general answer of the Duke was--"Were I a minister of Russia
I should buy the land. It is the right thing to do for many, for all,
reasons; but ministers here must subordinate their views to the
Cabinet." Still, he went so far, that I believed if the Hudson's Bay
property were once bought, the Duke would manage to take the purchase
over for the country. I was too sanguine. I had not measured the
passive resistance of the inside of the Colonial Office to everything
that inside had not initiated; though the fact that day by day
objections, urged to the Duke from inside, were put to me, by him, and,
I believe, always satisfactorily answered, might have warned me. I hope
to live to find three conditions established at the Colonial Office:--
(1) That no one, from the head down to the office boy, shall enter the
doors without having passed in general and in British Empire,
geography. (2) That no one shall be promoted who has not visited some
one British Colony or Province; and (3) That no one shall be eligible
for the highest offices who has not visited and studied, personally,
every portion of the distant British Empire.
With confident hope I went to work. It is true that Mr. Thomas Baring
warned me. He said: "If the Duke wants these great efforts made he must
make them on behalf of the Government: he must not leave private
persons to take the risk of Imperial work." And, in this state of mind,
Mr. Baring refused, afterwards, to be one of the promoters of the
Pacific scheme, a refusal which led Mr. Glyn to hesitate to sign the
legal papers without his friend and colleague. It was an anxious time
for me; for on my head rested the main responsibility. One circumstance
somewhat sustained me. On "the 10th December, 1862, at Thomas' Hotel,
the Duke had read to me a private letter from Mr. Gladstone to him,
containing these words. Words of which I was allowed to make a note"
Your Pacific scheme would be one of the grandest affairs ever achieved,
and I hope it will be completed in your time. It shall have my hearty
support." Alas! however, Mr. Baring was right.
The first official interview with the Governor and Court of the
Hudson's Bay Company was at the "Hudson's Bay House," Fenchurch Street,
on the 1st December, 1862. The room 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 present 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 somewhat insulting in his manner. We took it
patiently. He seemed to be astounded at our assurance. "What! interfere
with his Fertile belt, tap root, &c.!" Subsiding, we had a reasonable
discussion, and were finally informed that they would give us land for
the actual site of a road and a telegraph through their territory, but
nothing more. But they would sell all they had, as we "were, no doubt,
rich enough to buy," for "about" 1,500,000_l_., as they had told
the Duke.
The offer of the mere site of a road and ground for telegraph poles was
of 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, &c." They promised to consult their
Court. And, gradually, it got to this, that I was put in communication
with old Mr. Roberts, aged 85, their accountant, and with their
solicitor, the able and honorable Mr. Maynard, of the old firm of
Crowder and Maynard, Coleman Street, City.
I had many interviews; and on the 17th March, 1863, I met the Governor,
Mr. Ellice, jun. (son of Edward Ellice-the "old bear"), Mr. Matheson
and Mr. Maynard. They showed me a number of schedules, which they
called "accounts." 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. Next day (19th) I spent the
forenoon with Mr. Roberts, the accountant, and his son and assistant,
at the Hudson's Bay House. Mr. Roberts told me many odd things; one was
that the Company had had a freehold farm on the site of the present
city of San Francisco of 1,000 acres, and sold it just before the gold
discoveries for 1,000_l_., 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."
On the 8th May I went to see the Duke. He was very ill; but his
interest in the Hudson's Bay purchase was unabated. I saw him again on
the 15th, and wrote a letter to the Hudson's Bay Company. On the 19th
Mr. Maynard told me that the Hudson's Bay Court were meeting that day
to reply to my letter. The reply came on the 21st, and was "nearly what
we wished."
Owing to the Duke's illness, and to some secret difficulty which he
never enlightened me upon, I was given to understand, after a short,
but anxious delay, that any purchase must be carried out by private
resources; but all sorts of moral support would be at our service. What
good was moral support in providing a million and a half? What was to
be done? There were only two ways: one, to make a list of fifteen
persons who would each take a "line" of a hundred thousand pounds for
himself and such friends as he chose to associate with him; the other,
to hand the proposed purchase over to the just founded International
Financial Association, who were looking out for some important project
to lay before the public.
Leaving out Mr. Baring and Mr. Glyn (senr.) we had a strong body of
earnest friends, substantial men, and we could, no doubt, have
underwritten the amount. My proportion was got ready; and my personal
friends would have doubled that proportion, or more, if I had wanted
it. I strongly recommended this course. But the Hudson's Bay Company
would give no credit. We must take up the shares as presented and pay
for them over the counter. Thus, the latter alternative was, after some
anxious days, adopted. Mr. Richard Potter was the able negociator in
completing this great transaction, began and carried on as above. The
shares were taken over and paid for by the International Financial
Society, who issued new stock to the public to an amount which covered
a large provision of new capital for extension of business by the
Company, and a profit to themselves and their friends who had taken the
risk of so new and onerous an engagement.
I may finish this section by stating that, as respects the new Hudson's
Bay shareholders, their 20_l_. shares have been reduced by returns
of capital to 13_l_., and having, nevertheless, in the "boom" of
lands in the West, been sold at 37_l_. as the price of the
13_l_.; they are now about 24_l_. Thus, every one who has
held his property, and will continue to hold it, has, and will have, a
safe and unusually profitable investment. These shareholders, besides
the large reserves near their posts, which I shall enumerate later on,
have a claim to one-twentieth of the land where settlements are
surveyed and made. This gives a great future to the investor. On the
other hand, Canada--in place of the Mother Country, to whom the whole
ought to have belonged, for the purposes previously set forth--has
obtained this vast and priceless dominion for a payment of only
300,000_l_., on the award of Earl Granville; and the Pacific
Railway, by reason of that great possession, has been completed and
opened.
But there is much to record between the period of purchase and the sale
to Canada.
I here give to the reader some letters of the Duke's relating to these
negotiations generally:--
"DOWNING STREET,
"14 _Augt._ 1862.
"MY DEAR SIR,
"I am glad to tell you that since I received your letter of Saturday
last, the Hudson's Bay Company has replied to my communication, and has
promised to _grant_ land to a company formed under such auspices
as those with whom I placed them in communication. The question now
is--what _breadth_ of land they will give, for of course they
propose to include the whole _length_ of the line through their
territory. A copy of the reply shall be sent to Mr. Baring, and I hope
you and he will be able to bring this concession to some practical
issue.
"I was quite aware of the willingness of the Company to _sell_
their _whole_ rights for some such sum as 1,500,000_l_. I
ascertained the fact two months ago, and alluded to it in the House of
Lords in my reply to a motion by Lord Donoughmore. I cannot, however,
view the proposal in so favourable a light as you do. There would be no
immediate or _direct_ return to show for this large outlay, for of
course the trade monopoly must cease, and the sale of land would for
some time bring in little or nothing--certainly not enough to pay for
the government of the country.
"I do not think Canada _can_, or if she can _ought_ to, take
any large share in such a payment. Some of her politicians would no
doubt support the proposal with views of their own,--but it would be a
serious, and for some time unremunerative, addition to their very
embarrassing debt.
"I certainly should not like to _sell_ any portion of the
territory to the United States--_exchange_ (if the territory were
once acquired) would be a different thing,--but that would not help
towards the liquidation of the purchase-money.
"I admire your _larger views_, and have some tolerably large ones
in this matter of my own, but I fear purchase of this great territory
is just now impracticable.
"I am, yours sincerely,
"NEWCASTLE.
"Edwd. Watkin, Esq."
This letter was written in the educational period. The doubts came from
the officials of the Colonial Office. I removed them.
"Downing Street,
"17 _Novr_. 1862.
"My dear Mr. Watkin,
"I send you the 'route' from the Pacific to Canada, which I promised.
"I cannot vouch for it; but it comes from an unusually well-informed
quarter, and I incline to think it is much nearer accuracy than such
information as represents the obstacles to be almost insuperable.
"I am, yours very truly,
"NEWCASTLE."
"Memorandum of a Route from Vancouver Island to
Canada.
_Stations_ _Conveyance_ _Time_
"Victoria, Vancouver Island
Yale, on Fraser River, or
Douglas, on Harrison Lake Steamer 2 days
Lytton, on Fraser River, or
Lillovet Stage coach 2 days
Alexander, on Fraser River Do. 4 days
Fort George, on Fraser River Steamer 2 days
Tete Jaune Cache do. Do. 5 days
between 53 degrees and 54 degrees N L -------
15 days
=======
The stage road from Douglas to Lillovet is described as complete, and
that from Lillovet to Alexandria as in progress, as also the machinery
of a stern-wheel steamboat for the water communication between
Alexandria and Tete Jaune Cache.
The last-named place [Sidenote: Tete Jaune Cache.] is situated between
53 degrees and 54 degrees N.L., and is at the western extremity of the
most practicable pass of the Rocky Mountains. The distance from this to
Jasper House, [Sidenote: Jasper House, between 53 degrees and 54
degrees N.L., and distant 120 miles from Tete Jaune Cache.] at the
eastern extremity of the pass, is 120 miles by trail, admitting, it is
said, of conversion at small cost into an easy carriage road.
The distance from Jasper House to the next post, Edmonton, [Sidenote:
Edmonton, 200 miles by road from Jasper House, and 90 miles by road
from Assiniboin.] on the Saskatchewan, is 200 miles by road through a
level wooded country, or the Elk and Athabasca Rivers may be descended
by water to Fort Assiniboin, whence to Edmonton is only 90 miles.
The road communication between Tete Jaune Cache and Edmonton is
represented as the only necessary work beyond Alexandria, and may be
opened for 50,000_l_.
Two courses are suggested from Edmonton to the Red River, one by water
along the Saskatchewan and Lake Winnipeg, another by road from
Carleton, on the Saskatchewan, through the Prairie.
No remarks are offered upon the character of the route between the Red
River and Lake Superior, except that it is said to present no serious
difficulties.
"13_th Nov_. 1862.
R.E."
"DOWNING STREET,
"18 _Novr_. 1862.
"MY DEAR SIR,
"I have had a long interview of two hours today with Mr. Berens, Mr.
Colville, and Mr. Maynard; but I am sorry to find that matters have by
no means progressed so far as I was led to expect.
"I think I ought now to see Mr. Baring, Mr. Glyn, and yourself as soon
as possible.
"Can they and you come here on Thursday at any hour not earlier than
2.30 nor later than 4? If that will interrupt other business, I could
propose 11.30 on Friday at Thomas' Hotel.
"Yours sincerely,
"NEWCASTLE."
"CLUMBER,
"7 _April_, 1863.
"MY DEAR SIR,
"I have received from Sir F. Rogers the draft print of your Bill, and
his remarks upon it.
"I still think it quite possible to meet your views respecting the
lower portion of the Athabasca territory; but the _mode_ of doing
it does not appear to me so simple or clear.
"I should much desire to consult the Land Commissioners before the
matter is settled; and I do not see that the delay of ten days or a
fortnight from this date could endanger the measure, for Lord Monck
wrote to me by last mail that the Parliament had as yet not begun
business.
"If you agree to this, I will send the papers and my remarks to the
Land Commissioners at once, and see you (after getting their report) on
Wednesday next, or any day after it, except Friday.
"Pray let me hear by return.
"Yours very sincerely,
"NEWCASTLE."
"DOWNING STREET,
"6 _May_, 1863.
"MY DEAR MR. WATKIN,
"I hope and believe that the despatches in their final shape, as they
went out to N. Columbia on Friday last, and to Canada on Saturday, were
quite what you and the proposed 'N. W. Transit Company' would wish.
"I added words which (without dictation) will be understood as implying
'No Intercolonial, no Transit.'
"If you happen to be in this neighbourhood any day between 3 and 4.30,
I shall be glad to see you, though I have nothing at all pressing to
say.
"Yours very sincerely,
"NEWCASTLE."