M Elliot
On the
28 ult this Office announced the proposed Suit to
the Treasury.
The Treasury have not directly ans our
Letter, but on the
4 inst their Solicitor wrote here for
instructions for his guidance. The Council Office now say
that the matter in debate involving a money question must
have the expressed concurrence of
the Treasury before the
Judicial Committee can entertain the subject. I presume
we must ac
c write to
the Treasury in the sense pointed
out in this Letter; but to enable
the Treasury to judge
fully the point submitted to their consideration I think we
must borrow from the Council Office the Petitions lodged
there by the Hudsons's Bay C, in elucidation of their
claims & send them to the T-y.
M Fortescue
I should doubt whether it is necessary for us to obtain
copies of the Hudson Bay Company's Petitions for the purpose
of sending them to
the Treasury, inasmuch as their substance
is stated in the present letter. What is wanted seems to me
something more material and more difficult to supply. The
Council desire to be informed whether
the Treasury will be
ready to give effect to any recommendations of the Judicial
Committee for a pecuniary indemnity from the Government. In
order to enable
the Treasury to determine that point it would
seem as if they would be entitled to expect from us some
statement of the nature of the questions at issue with the
Company, and of the kind and possible extent, so far as can
now be perceived, of the pecuniary claims that might be
established against the Government if the Company's views
prevail. This would entail the preparation of a well drawn
and careful letter from this Office to
the Treasury.
M Fortescue
I apprehend that a pecuniary question, as well as
a question of title is raised by the reference of the
H.B. C claim to the Jud Comm. By
Gov
Douglas' Despatch of
31 May 1859 No 161 you will see
that a considerable portion of the Land claimed by
the H.B.C had been sold to settlers in
B. Columbia,
and more had been promised.
If therefore the C make
out their title to more Land, they must be indemnified
or the purchasers ousted. I apprehend that the latter
will be impossible.
I am afraid it will be very difficult to give the
Treasury even an approximate Estimate of the amount of
indemnity that might be required. But possibly
M
Pemberton the Surveyor
Gen if still
in this Country
might help you.
M Fortescue
I was unable to see
M Reeve today till after you had
gone to the House of Commons.
He pointed out that the Petitions of the
Hudson's Bay C
raise not only the question of Title but the question of
their claim to pecuniary indemnity in
Vancouver Island
for their general expenditure and in
British Columbia
for their Land sold by the Governor—that the letter
from the
Colonial Office of
4 July being in general
terms involved the reference of the whole of these questions
to the Judicial Committee—but that the Secretary of State
may limit that reference to the single question of Title, if
he desires to do so. The best course would probably be to
explain, in answer to the letter of
9 instant, that it
was not the intention of the
Duke of Newcastle to refer to
the Judicial Committee any question as to the amount of
compensation to be awarded under certain circumstances to
the
Hudsons Bay Company, but only the question whether the
Company could make out such a Title to be considered
the owners of the Lands which they claim—as would entitle
them either to be left in possession of those Lands or, if
dispossessed, to be indemnified for the loss. I understood
M Reeve that the Judicial Committee would willingly
avoid any question of compensation.
But as the decision of Title if adverse to the Crown
would necessarily involve the question of compensation
M Reeve suggested that a Communication on the subject
should be made to
the Treasury. This I suppose there
would be no difficulty in doing, although the amount of
possible compensation cannot be precisely stated.
M Reeve further said that the case cannot be heard
before the Judicial Committee till December at the earliest
but that it would be desirable to have the reference made
at the Council to be held before
the Queen goes to Scotland.
He is to send me copies of the Company's Petitions and if
it would be a convenience to you I would, as I am probably
more familiar with the case than anyone in the North
American Department, draft the letters for your consideration.
I may observe in conclusion that the petition
respecting Van
Van
Couvers Island
Couvers Island reopens the whole question of
the amount to be repaid on the repurchase of
the Island by
the Crown, which the
Colonial Office refused last year to
refer to
Sir J. Coleridge. I suppose no part of the
compensation the Company had agreed to accept has been paid
to them, & hence the question reappears in a new form.
M Murdoch
On the contrary (as to your last sentence) £25000 has just
been paid to the H.B.Co. on account of the repurchase of
V.
I. I had not seen the Petition & had no idea of
that
question being re-opened, wh. was never intended.
I shall be much obliged, if you will draft the letters, as you
propose.