I have the honor to acknowledge the receipt of your dispatch No 5
               of 
23 October 1850, in which after expressing a hope that the
               emigration to California may ultimately prove beneficial to this
               settlement, you point out a mistake I have fallen into in supposing the
               
Puget Sound Agricultural Company to be identical with the Hudson's bay
               
               
                  Extract Copy to Admity 4 June/ 51
                Company. I am fully aware that the rights of the 
Puget Sound Company
               are recognised in the Treaty of 1846, between Great Britain and the
               United States, but my remark was merely intended to apply to the state
               of things here. The Agent of the 
Hudsons Bay Company receives, I am
               informed, a salary for acting as Agent 
of the
of the 
Puget Sound Company,
               beyond this the latter company are not represented in this country,
               labourers bound by engagements to the Hudson's bay Company have been,
               and now are employed on the 
Puget Sound Company's Land Claim, without
               any change of service. The 
Hudsons Bay Company make use of such
               portions of that Land Claim as they think fit, for the erection of
               buildings, cutting timber &c, a saw mill and houses attached for the
               workmen are standing on it, their property, Farming stock such as
               cattle, and sheep, are removed from one company's claim to the other
               belonging alternately to each of them, but always under charge of the
               Hudson's bay company's servants, none of whom acknowledge any service to
               the 
Puget Sound Company, the greater part being ignorant of its very
               name; A Further proof of their identity here may be found in the fact
               that these persons employed on the 
Puget Sound Company's Land Claim are
               allowed to make their purchases at the stores of the Hudson's bay
               Company, at the same reduced rate of prices as when employed on the Land
               claim of the Hudsons bay company, a privilege which is declared to be
               strictly reserved to the 
servants
servants of that company. I think that these
               statements will prove sufficient explanation of my remark.
M Grant has returned to 
the Island and resumed possession of
               his farm at 
Soke, one or two persons in the employment of the Hudson's
               bay Company have as they inform me agreed to purchase small plots of
               land near 
Fort Victoria at very high rates, others who are willing to
               settle are deterred by the price,
 
            
            
            I have received a note from 
Captain Wellesly, commanding H.M.S.
               
Daedalus, of 
24 October 1850 San Francisco, in which he informs me that
               one of his boats was fired 
               
into by the Indians near 
cape Scott, by which
               the officer in charge and two marines were wounded, all slightly, I have
               no particulars, but presume the occurrence has been reported to the
               Admiral on the station,