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.
