Colonial Despatches

I regret to state that no small amount of injury has undoubtedly been caused to the Colony of British Columbia by the owners of the Steam Boats, which are now, and have been for some time past running on Fraser's River.

These individuals are citizens of the United States and they oppress alike the MinerMiner and the Merchant by their exorbitant charges for passage and freight.

2. The rate now levied for the transport of a Ton of goods from this place to Fort Hope is Seventy-two dollars, or more than £14 Sterling. The charge made last summer when I possessed the power of regulating prices was Twenty-five dollars or £5 a ton from this place to Fort Yale, which is fifteen miles of difficult navigation beyond Fort Hope, and large profits were made at that rate.

I fear the owners are now continuing to perpetuate the evil by taking out British Registers for their vessels, by means of transfers to British Subjects which therethere is every reason to believe are only nominal and fictitious, although all the requirements of the law being complied with it is difficult to establish legal proof of that fact.

3. In this part of the world competition is not allowed to produce its legitimate effects; it is the practice to buy up every rival line or to pay them handsomely for allowing their ships to be idle, and the public are charged a higher rate to cover the additional expense which their oppressions have incurred.

The American Pacific Mail Steam Ship Company is a notable example of this method of proceeding, this Company having hitherto bought off every line establishedestablished to compete with it. I will instance another case. Last year a Steamboat called the "Maria" was started on the Sacramento River in opposition to the Boats of I believe the California Steam Navigation Company. She was bought off by that Company. Her proprietor immediately brought her up to this place to run on Fraser's River, buying off another boat which he, on arrival found on the River, and sending this second boat down to San Francisco to commence another opposition on the Sacramento River in order to be again bought off.

4. The Victoria Steam Navigation Company, a British Company, who have one large River Steamer employed between thisthis port and Langley, are now engaged in building a smaller vessel for the higher navigation of Fraser's River. The Directors of this Company lately applied to me for the protection of Government against the machinations of these Foreign speculators. I commented upon the extravagant rate of freight and suggested a large reduction as the best means of meeting their competitors, whereupon the Directors offered to provide vessels in sufficient numbers to perform the whole transport business on Fraser's River at the rate of Twenty-five Dollars or £5 Sterling a ton, provided they were secured against these, in reality American owners of British registered vesselsvessels, in the exclusive privilege of navigating the River until the end of next September.

Monopoly would in such a case be a public gain, but being illegal I could not entertain the proposal, though I cannot but regret that under such circumstances I have no power by which I could protect the public interest.

5. The Directors further assured me that they had been invited by the American Owners to join in the combination for maintaining the high rates of freight; but as the Directors declined making the Statement in writing no legal use could be made of it.

6. The Government legallegal authorities here are of opinion that we have no power to refuse the change of Register from American to British even for vessels employed in British Inland waters.

7. I transmit a copy of two letters from the Secretary of the before mentioned company, and as the matter is one of much importance to the interests of the Colony, as well as being a National question, I should feel obliged if it were submitted for the opinion of the Law Officers of the Crown, and that I may be informed whether I should be justified in withholding a British Register from Vessels becoming British under such circumstancescircumstances as those described, which appear to me simply an evasion of the law.