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Rh in contemplation of railroads, were made by Lieut. Chapman from Perth to King George's Sound, and by Surveyor Evans in the mining district of the North. In 18S9 the regular troops were withdrawn, and a Force of Enrolled Pensioners organised; Volunteer companies were also formed at Perth and Fremantle and a corps of mounted rifles at York; the corps at Pinjarrah was not formed till 1864.

In 1862 Governor Hampton succeeded Governor Kennedy. This was a year of unprecedented floods, the Swan river rising 7 feet above its usual level, many bridges were destroyed, and the lowlands at the back of Perth were inundated, causing much loss and expense both to the Government and to individuals, and Lieut. Oliver was drowned crossing the Causeway near the Swan at Perth. Prospecting for gold was now commenced, and Mr. Hargraves from Victoria was employed, but without success; from Victoria also came a proposition to form a settlement on the North-West Coast, but the Mystery was first sent there with sheep and cattle by Mr. Padbury. In 1864 the settlements were farther extended; Mr. Dempster took sheep to Esperance Bay, on the South Coast; a company was formed which sent sheep and cattle to Camden Harbour on the North-West, as Messrs. Brown did also to Sharks Bay and Mr. F. Von Bibra to Hartog's Island; the next year an attempt was made to form a station on St. Magnus river, Doubtful Bay. The pearl fishery, which had been commenced in Sharks Bay, was now extended to Nickol Bay.

Emigration had continued at intervals, but now many mechanics left the Colony, unable to compete with convict labour.