It was said that the appearance of Mr. Lampson"s name as Deputy Governor of the new Company had heightened the first feeling of distrust, for this gentleman and his commercial connections had long been the Company"s great rivals in the fur marts, carrying on a vigorous compet.i.tion at all accessible points.[123]
[Sidenote: Governor Dallas"s Suggestions.]
Governor Dallas, almost immediately upon his arrival in Montreal, caused a circular to be issued, addressed to all the factors, completely refuting all these charges and innuendoes. Many conferences took place between Dallas and Watkin as to the working of the Company in the fur territories on the new basis. Dallas kept the Governor and Committee in London fully advised of the state of affairs, accompanied by proposals as to the compensation to be allowed the aggrieved wintering partners. An interesting object, which it was desired to accomplish at this time, was an exchange of boundary between the Company and the United States, so as to permit Superior City being brought into British territory by means of a fair payment and exchange of land. The negotiations looking to this end, although at one time promising, proved a failure.
It was believed that the first measure necessary towards the re-organization of the Hudson"s Bay service would be the abolition or modification of the Deed Poll, under which the trade was then conducted. The wintering partners (chief factors and chief traders) had certain vested rights, and these could not be interfered with without compensation.[124]
One mode suggested by Governor Dallas of removing the difficulty was to ascertain the value of a retired interest, and bestow a money compensation to each officer on his entering into an agreement to consent to the abrogation of the Deed Poll. As regarded the shares held in retirement, some of the interests had nearly run out and none of the parties had any voice in the business. The value of a (one-eighty-fifth) share was ascertained to be (on the average of the previous thirteen "outfits") about 408, at which rate a chief factor"s retired interest would amount to 3,264, and a chief trader"s to 1,632. Adding the customary year"s furlough on retiring, a factor"s retired allowance would be 4,080, and a trader"s 2,040. On such a scale of commutation it would cost the Company 114,500 to buy out its officers.
As a set-off to this outlay Governor Dallas suggested a substantial reduction in salaries. Under the then existing organization the pay of officers in the service was 2,000 to the Governor-in-Chief, 16,000 amongst sixteen chief factors, 14,000 to thirty-five chief traders, and 10,000 to the clerks, a total officers" pay-roll of 38,000. He proposed to cut this down as follows:
Governor-in-Chief 2,000 Lieutenant-Governor 1,250 Four Councillors at 800 3,200 Twenty-five chief traders at 300 7,500 One hundred clerks at various salaries 10,000 ------ 23,950
But Sir Edmund and his colleagues thought otherwise. The wintering partners were not yet to reap any profit from the sale of the Company"s a.s.sets. The Deed Poll remained in full force until 1871, when they were paid 107,055 out of the money received from Canada for Rupert"s Land and the North-West.
[Sidenote: Threatened Deadlock in Red River Settlement.]
In 1863 the Company"s government had almost come to a deadlock in the Red River settlement. Two cases had just occurred of prisoners having been forcibly rescued from gaol; and they, with about thirty to fifty others implicated in the riots, continued at large, fostering discontent. The only paper published, the notorious _Nor"-Wester_, was in the hands of the Company"s bitterest enemies.[125] The position of those in authority was so disagreeable that it was with great difficulty that Governor Dallas persuaded the magistrates to continue their duties. Governor McTavish, who was in charge of a.s.siniboine, resigned, and others were prepared to follow his example, including the Governor-in-Chief himself. Fortunately the open malcontents were few in number and the volunteer force was sufficient to protect the gaol and support law and order, were it not for the unwise zeal of the Company"s partisans who were ready to engage in a free fight with the agitators. This, beyond question, would have led to a repet.i.tion of the Semple tragedy of 1816. It may be noted that the Company"s unpopularity in the Red River country, according to Governor Dallas, "arose entirely from the system, not from the faults of its administrators."
The agitation against the Company still continued, but slowly. It seemed difficult for the parties interested in the abolition of the Company"s rights to agree upon a single scheme which would be permanently satisfactory, and not too costly. Sir Edmund Head expressed himself in favour of a complete sale of rights and ownership to the Imperial authorities. But this scheme was, as has been seen, beset with almost insuperable difficulties. In November, 1863, Sir Edmund suggested that an equal division be made of the territory fit for settlement between the Company and the Crown, with inclusion of specified tracts in the share of the former; secondly, that the Company construct the road and telegraph; thirdly, that the Crown purchase such of the Company"s premises as should be required for military use, and to pay the Company a net third of all future revenue from gold and silver.
In his Speech from the Throne, on the 19th February, 1864, Lord Monk, the Governor-General of Canada, alluded to the matter, which was beginning to engross the public mind.
"The condition," said he, "of the vast region lying on the north-west of the settled portions of the Province is daily becoming a question of great interest. I have considered it advisable to open a correspondence with the Imperial Government, with a view to arrive at a precise definition of the geographical boundaries of Canada in that direction. Such a definition of boundary is a desirable preliminary to further proceedings with respect to the vast tracts of land in that quarter belonging to Canada, but not yet brought under the action of our political and munic.i.p.al system."
It was hoped by many that the Company could be induced to sell out its rights to the Imperial Government, and out of the territory to carve out a new Crown Colony.
In the course of the ensuing debate on the address, the Honourable William McDougall, Minister of Crown Lands, who was officially concerned in the matter, stated that "the Government of Canada had reached a conclusion upon the advisability of determining whether the Red River territory belonged to Canada or to some other country." The consequence was that a correspondence had been opened with the Imperial Government upon the subject. Mr. McDougall thereupon announced his individual view of the case as being that "Canada was ent.i.tled to claim as a portion of its soil all that part of the North-West territory that could be proved to have been in possession of the French at the time of the cession of Canada to the British."
It was not at all likely that the Duke of Newcastle would share such a view, or that he would entirely acquiesce with the suggestion of Sir Edmund Head on behalf of the Company. Under date of the 11th of March, and 5th of April, 1864, he formulated the appended proposals:--
1. The Company to surrender to the Crown its territorial rights.
2. To receive one shilling for every acre sold by the Crown but limited to 150,000 in all, and to fifty years in duration, whether or not the receipts attained that amount.
3. To receive one-fourth of any gold revenue, but limited to 100,000 in all, and to fifty years in duration.
4. To have one square mile of adjacent land for every lineal mile constructed of road and telegraph to British Columbia.
[Sidenote: The surrender of Territorial Rights.]
These proposals were carefully considered by Sir Edmund Head and his colleagues, and it was decided at a meeting on the 13th of April to accept them, subject to certain alterations. It was urged that the amount of payments within fifty years should either not be limited or else placed at the sum of 1,000,000 sterling, instead of a quarter of that sum. The Company also suggested that a grant be made to it of five thousand acres of wild land for every fifty thousand acres sold by the Crown.
In the meantime the Duke of Newcastle had been succeeded in the Colonial Secretaryship by Mr. Cardwell, who on the 6th of June wrote to say that he could not entertain the amendments of the Company. For several months nothing was done, but in December the Honourable Adventurers again met and again showed their desire for an amicable and reasonable arrangement. They offered to accept 1,000,000 for the territory which they then defined, and which was substantially in extent the whole region granted them in the Charter of Charles II. In 1865 the Hon. George Brown went to England to come to terms over the proposed transfer, but without success.
[Sidenote: America purchases Alaska.]
The charter of the Russian Company was about to expire. It had underlet to the Hudson"s Bay Company all its franchise on the mainland between 54 40" and Mount St Elias; and now it was proposed that an American Company, holding direct from the Russian Government, should be subst.i.tuted, and it seemed to the Americans a good opportunity to organize a fur-trading company to trade between the States and the Russian possessions in America. But before the matter could mature, the American and Russian Governments interposed with a treaty, by which Alaska was ceded to the States for $7,200,000 in gold. Few treaties have ever been carried out in so simple a manner. Russia was glad to be rid of her possessions in North America. The sum of $7,000,000 was originally agreed upon; but when it was understood that a fur company and an ice company enjoyed monopolies under the existing government, it was decided to extinguish these for the additional sum.
On 1st July, 1867, the Confederation of the scattered British Provinces of North America was made an accomplished fact, amidst general rejoicings. On the 4th of December, Mr. McDougall, who was now Minister of Public Works for the new Dominion of Canada, brought in, at the first session of Parliament, a series of resolutions directly relating to the acquisition of Rupert"s Land and the Great North-West:--
1. That it would promote the prosperity of the Canadian people and conduce to the advantage of the whole Empire if the Dominion of Canada, const.i.tuted under the provisions of the British North America Act, 1867, were extended westward to the sh.o.r.es of the Pacific Ocean.
2. That the colonization of the lands of the Saskatchewan, a.s.siniboine, and Red River Settlements, the development of the mineral wealth which abounds in the regions of the North-West, and the extension of commercial intercourse through the British possessions in America from the Atlantic to the Pacific, are alike dependent upon the establishment of a stable government for maintenance of law and order in the North-West Territories.
3. That the welfare of the spa.r.s.e and widely-scattered population of British subjects of European origin, already inhabiting these remote and unorganized territories, would be materially enhanced by the formation therein of political inst.i.tutions bearing a.n.a.logy, as far as circ.u.mstances will admit, to those which exist in the several Provinces of this Dominion.
4. That the 146th section of the British North America Act, 1867, provides for the admission of Rupert"s Land and the North-West Territory, or either of them, into union with Canada upon terms and conditions to be expressed in Addresses from the Houses of Parliament of the Dominion to Her Majesty, and which shall be approved of by the Queen in Council.
5. That it is accordingly expedient to address Her Majesty, that she would be graciously pleased, by and with the advice of Her Most Honourable Privy Council, to unite Rupert"s Land and the North-West Territory with the Dominion of Canada, and to grant to the Parliament of Canada authority to legislate for their future welfare and good government.
6. That in the event of the Imperial Government agreeing to transfer to Canada the jurisdiction and control over this region, it would be expedient to provide that the legal rights of any corporation, company, or individual within the same will be respected; and that in case of difference of opinion as to the extent, nature, or value of these rights, the same shall be submitted to judicial decision, to be determined by mutual agreement between the Government of Canada and the parties interested. Such agreement to have no effect or validity until first sanctioned by the Parliament of Canada.
7. That upon the transference of the territories in question to the Canadian Government, the claims of the Indian tribes to compensation for lands required for purposes of settlement would be considered, and settled in conformity with the equitable principles which have uniformly governed the Crown in its dealings with the aborigines.
[Sidenote: Deputation goes to England.]
In the following year a delegation to arrange the terms for the acquisition by Canada of Rupert"s Land and the North-West Territory arrived in England. It consisted of Sir George etienne Cartier and Mr.
William McDougall. On presenting themselves at the Colonial Office they were invited by the Duke of Buckingham and Chandos, then Secretary of State for the Colonies, to visit him at Stowe "for the purpose of discussing freely and fully the numerous and difficult questions involved in the transfer of these great territories to Canada." To the Duke"s country-seat the delegates accordingly went.
Here, one of the first things the Duke communicated to them was that the Company being lords-proprietors were to be treated as such, and not as parties having a defective t.i.tle and fit subjects for that "spoliation" previously deplored by Cartier.[126] There can be no manner of doubt that, taking this view, the Company"s demands were most reasonable. But the Canadian delegates were not content to take this view. There had been so much irresponsible hue-and-cry about the weakness of the Company"s t.i.tle, that they doubtless felt themselves privileged to hold out for better terms. While negotiations were thus pending in London, the Duke of Buckingham quitted office with his colleagues, and was succeeded by Earl Granville. Almost at the same time the Earl of Kimberley, the Company"s Governor, resigned, and was replaced by Sir Stafford Northcote. In January, 1869, the new Colonial Secretary transmitted to the delegates the reply of the Company, declining their counter-proposals, and inviting them to communicate to him any observations they might desire to offer further on the situation.
"We felt reluctant," to quote the language of the delegates, "as representatives of Canada, to engage in a controversy with the Company concerning matters of fact, as well as questions of law and policy, while the negotiation with it was being carried on by the Imperial Government in its own name and of its own authority."
[Sidenote: Canada exerts pressure on the Company.]
Nevertheless, these scruples were soon overcome. They accepted Lord Granville"s invitation, and on the 8th February stated at length their views upon the various points raised by the Governor of the Company, which views clearly demonstrated that the Dominion was by no means prepared to deal with the Honourable Adventurers in a spirit of generosity or even of equity. Lord Granville now came forward with plans of his own, but these were not agreeable to Sir George Cartier and Mr. McDougall. While the negotiations were in progress the Company lodged an indignant complaint against the Canadian Government for undertaking the construction of a road between the Lake of the Woods and the Red River settlement without first having procured its consent. Stormy meetings of the Honourable Adventurers were held; it seemed impossible to resist the pressure which was being brought to bear. Had the old governor and committee been in existence it is possible this pressure would have been longer withstood. The delegates returned to Canada, but they had succeeded in no slight measure in impressing upon the Imperial Government their peculiar views. On the 9th of March, Lord Granville employed the following language to the Governor of the Company:
"At present the very foundations of the Company"s t.i.tle are not undisputed. The boundaries of its territory are open to questions of which it is impossible to ignore the importance. Its legal rights, whatever these may be, are liable to be invaded without law by a ma.s.s of Canadian and American settlers, whose occupation of the country on any terms it will be little able to resist; while it can hardly be alleged that the terms of the charter, or its internal const.i.tution, are such as to qualify it under all these disadvantages for maintaining order and performing the internal and external duties of government."
[Sidenote: Lack of Military system Company"s weakness.]
There was the Company"s weakness. No sovereign in Europe had a clearer right to his or her dominions, perhaps no rule was wiser or more beneficent, but the one powerful, indispensable adjunct to sovereign authority it lacked--a military system.[127] With a standing army the Company"s rights would have been secure--but it was a king without soldiers. It required ten thousand drilled men to defend its frontiers--it was too late in the day to organize such a force, it could only submit gracefully to its envious and powerful neighbours.
Cession was perhaps inevitable; the terms which Lord Granville now proposed it decided to accept.
1. The Hudson"s Bay Company to surrender to Her Majesty all the rights of government, property, etc., in Rupert"s Land, which are specified in 31 and 32 Victoria, clause 105, section 4; and also all similar rights in any other part of British North America, not comprised in Rupert"s Land, Canada, or British Columbia.
2. Canada is to pay to the Company 300,000 when Rupert"s Land is transferred to the Dominion of Canada.
3. The Company may, within twelve months of the surrender, select a block of land adjoining each of its stations, within the limits specified in Article 1.
4. The size of the blocks is not to exceed ---- acres in the Red River country, nor 3,000 acres beyond that territory, and the aggregate extent of the blocks is not to exceed 50,000 acres.
5. So far as the configuration of the country admits, the blocks are to be in the shape of parallelograms, of which the length is not more than double the breadth.
6. The Hudson"s Bay Company may, for fifty years after the surrender, claim in any township or district within the Fertile Belt, in which land is set out for settlement, grants of land not exceeding one-twentieth of the land so set out. The blocks so granted to be determined by lot, and the Hudson"s Bay Company to pay a ratable share of the survey expenses, not exceeding ---- an acre.
7. For the purpose of the present agreement, the Fertile Belt is to be bounded as follows: On the south by the United States Boundary; on the west by the Rocky Mountains; on the north by the northern branch of the Saskatchewan; on the east by Lake Winnipeg, the Lake of the Woods, and the waters connecting them.