Think we shall be
able to fulfil the wishes of the Governor and Committee, Governor
Dallas being here, accompanied by Mr. Hopkins, without the necessity of
my proceeding on this occasion to the Red River; though, should further
discussion with the Governor lead to our joint impression that such a
visit would be advantageous, I shall not hesitate to undertake the
journey.
"In advance of some memorandum to be prepared for you by Governor
Dallas and myself, and which I shall beg him to be good enough to
draft, I would mention that I have suggested that the Governor issue a
circular to the employes of the Company, stating briefly the nature of
the recent changes of proprietorship in the Company, and thereby having
the tendency to remove any misconceptions which might arise, and which,
I regret to learn, have in some few quarters appeared amongst the
factors and other officers of the Company, who, as partners in the
trade, have considered themselves entitled to be consulted by the late
Governor and Council on the subject of the transfer.
"Governor Dallas informs me that the outfit of 1862-3 will show very
much improved results; and I have little doubt that the wise and
energetic measures which he has initiated since his tenure of office
will bring abundant benefits in every direction. The result in the
western district, which, if I recollect rightly, exhibited a loss, and
which, in the past year, with all exclusive privileges taken away,
gives a profit of no less than $166,000, is a convincing proof of what
may be effected by improved business organization and thorough energy
and firmness. It has, however, been matter of considerable anxiety to
me to learn that it is Governor Dallas's desire to return to England
next year.
"As regards the future management of the fur trade, Governor Dallas is
of opinion that a considerable reduction may be made in the number of
the employes; and that by a judicious weeding out of those who, in all
large establishments managed from a distance, either were originally,
or have become, inefficient, not only will expenses be saved, but a
much larger trade be carried on.
"In any considerable change of personnel, the partnership rights of the
factors will have to be considered; and one of the gravest and most
difficult subjects of consideration will be, how to reconcile the
rights of these gentlemen in a share of profit with that reorganization
which the commercial interests of the Company evidently require.
"These changes can only be made after discussion with the factors and
chief officers; and in some cases it may be desirable to buy out
individual interests on a more or less extended scale.
"The 40 per cent. of the net profit of the Company allowed to the
factors, in addition to the salaries of considerable amount, is a heavy
drain, and involves other considerations opposed to rigid discipline,
which need not be further touched upon here, but which are sufficiently
obvious. This re-organization can only be effected by giving to the
Governor very large and exceptional powers, and without delay. If these
powers are given, I am quite confident that the results will be such as
abundantly to satisfy the Committee. Hitherto, as it appears to me, far
too little discretion has been permitted; and the practice of sending
all the accounts home to England, and dealing with them in such a
manner that the Governor could not tell from time to time how the
financial results of expenses and profits were progressing, has
produced its inevitable consequences. In future, I feel convinced, it
will be found matter of the utmost consequence to concentrate the
accounts at Fort Garry, and to send copies of the vouchers, journals,
and ledgers from Fort Garry to England, instead of adopting the reverse
practice, and endeavouring, as hitherto, to make the accounts travel as
long a distance and be made up over as remote a time as possible. With
proper telegraphic and postal communication between the principal posts
of the Company and Fort Garry and Montreal, there is no reason why the
accounts should ever be two years in arrear in future.
"As regards the settlement of the country, and, involved in that
important question, the state and prospects of the Red River, the
discoveries of gold above alluded to involve very serious
considerations.
"Assuming a rush of miners to different portions of the territory, the
machinery of Government for the preservation of order cannot be for a
moment neglected, or its construction be delayed. This involves, again,
the question of the establishment of a new colony. Is that colony to be
governed by the Hudson's Bay Company, who are essentially a trading and
landowning corporation, or is it to be governed in the name of her
Majesty, the Hudson's Bay Company, so far as the limits of the Crown
Colony are concerned, becoming merely traders and landowners, and
ceasing to govern as at present?
"All the difficulties at Red River - which, after all, have been much
exaggerated, and can be very easily dealt with - would be disposed of at
once were a Governor, appointed by the Crown, to be sent out; and it
does not follow that representative institutions need at first be
granted, though ultimately they would become matter of necessity. The
great object of the Governor and Committee - and Governor Dallas and
myself perfectly agree in the view - should be to induce the Colonial
Government to found a Crown Colony under arrangement with the Hudson's
Bay Company with the least possible delay.
