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106 put in there. Greatly alarmed, they searched the northern coast, but while they discovered the wreck of The Settler and the whaleboat, they could not find the whalers. The cap of one was picked up near the whale-boat, but the men were never again heard of. In August, while giving chase, a boat was struck by the flook or tail of a bull whale, and one man was killed instantaneously.

A third whaling company was projected in July, 1837. Captain Armstrong, of the 21st Fusiliers, was one of the promoters. It proposed to conduct operations on a more extensive scale than the other companies, and a capital of £5,000 was asked for in shares of £25 each. A fully equipped vessel was to be purchased in England, and no "foreigners" were allowed to hold an interest in the concern. The company was not floated.

Two private parties had been engaged in whaling at King George's Sound for some time. Their principal stations were in Doubtful Island Bay, on the south coast, and there they were able to carry on very lucrative operations. Mr. Cheyne owned one of these properties and Mr. Sherrart the other. Sealing was also combined with whaling by them, and Messrs. Cheyne and Sherrart were the forerunners and local founders of that large and remunerative industry which proved so valuable to the colony, and particularly to residents of King George's Sound.

Whaling operations were now assuming such importance at Cockburn Sound, that in August the Fremantle Company began cutting a tunnel through Arthur Head into the main thoroughfare—High Street. It was considered necessary to have communication by this means. The Government lent some assistance, and Mr. W. H. Reveley, C.E., drew up the plans and specifications. The company was promised the lease of the tunnel for seven years, and the work was completed at the end of the month.

In October the Fremantle and Perth Whaling Companies discontinued operations for the season. They had not been so successful as they anticipated, and much disappointment was felt. Many whales had been lost in the chase.

Sealing had been conducted by people at King George's Sound before whaling operations were begun, and during the year 1835 sealskins were exported from there which had an estimated value of £1,000. This amount was, however, partly made up of purchases from sealers from other countries. The exports from Fremantle for 1837, were 71 tuns of oil, despatched to Great Britain, valued at £1,420, and 4½ tons of whalebone at £360. In the same year oil valued at £900, whalebone at £180, and sealskins at £500 were exported from King George's Sound.

Whaling was resumed with steadier zest in 1858. A lesson had been taught colonists. So prodigally was the Perth Company conducted in 1887, and such serious accidents had been experienced, that in May, 1888, the affairs were wound up, while even the Fremantle Company was unable to pay dividends, and made heavy calls.

An industry of lesser importance was also initiated. The absence of sufficient boats for trading up and down the Swan in earlier years caused settlers to utilise the woods, which were at their doors, for the construction of small craft. In 1885 an enterprising resident at Fremantle, Captain Scott, the harbour master, began to build a much larger vessel. At King George's Sound, also, the splendid woods which abounded in the forests were utilised in a similar manner. Men were kept engaged in making crafts for whaling purposes, and an industry was projected which should have greatly added to the assets of Western Australia. In May, 1836, the Lady Stirling, the first vessel of imposing dimensions built of colonial timber in the colony, was launched at Fremantle. Mrs. Roe, wife of Lieutenant Roe, in the absence of Lady Stirling, christened the ship. A few days afterwards the Lady Stirling was nearly wrecked while attempting to cross the bar at Fremantle.

In 1836 the schooner Champion was purchased by the Government for £1,500, for colonial work. She was used in voyages round the coast and to neighbouring settlements. Owing to the scarcity of labour it was many months before she could be manned. Nearly every sailor was engaged in whaling.

Some precaution was being taken by the Government to ensure a quantity of flour in their stores when the general supply was exhausted. Early in 1836, 1,200 bushels of wheat were purchased at 7s. per bushel and placed in the commissariat store in case of emergency. This reserve was not needed to any extent in that year, but in 1887, through the usual cause of non-arrival of vessels, the supply was not nearly able to satisfy the demand. By placing too much confidence in the arrival of burdened ships, although the Government had the experience of previous years to guide them, colonists were again brought face to face with a scarcity of the necessaries of life and with famine prices. In April, May, and June high prices ruled, and it was necessary for settlers to be extremely careful in the distribution of food to each person. Then a few cargoes arrived. In August tenders were issued for 1,500 bushels by the local Government. The average price was 9s., but in the following month wheat was sold at 16s. a bushel, and the deficiency was not satisfied until the early crops were reaped. In December the Government issued tenders for 2,000 bushels, but there were no replies.

Even in 1838, or twelve months after the supplies were observed to be exhausted, the Government did not grasp the situation and secure a plenitude of food stuffs. Colonists were once more compelled to pay exorbitant prices for provisions. Flour was not on this occasion the most serious want. The larger settlers had stocked their granaries with ample grain for their own consumption, and, therefore, they did not suffer, but those less happily placed were reduced to unpleasant straits. A long delay in the arrival of ships took place, and in June salt meat was sold at ls. 2d. a lb., fresh meat at 1s. 8d.; wheat was scarce, and was procured with difficulty, while hardly a pound of soap was in the colony. This necessary commodity cost 10s. and 12s. a lb. At King George's Sound the same difficulty was experienced, except that the settlers there possessed a stock of soap. Some considerate persons despatched natives from Albany with a few pounds of the article; the blacks arrived in Perth in due course with their load, to the delight of residents. Finally ships put in to Fremantle and relieved the strained condition of the market, and colonists again had sufficient.

Very little trouble was experienced from the natives in 1836. There were occasional discoveries of thefts, and each time the delinquents were punished where possible. In June two natives were caught in the act of rifling a house some miles distant from York. A soldier and a settler attacked them, and a severe struggle took place. One of the natives attempted to spear the soldier, while the other sought to administer a thrashing on the settler. One native was shot dead on the spot; the other as brought down while running away.

This incensed the York tribes of natives, and they vowed deadly vengeance on the settlers. They began by killing sheep, and dashing out the brains of lambs on the trees. They even killed and eat a horse. Eventually they murdered a man named Knott. Sir James Stirling deemed that the position was becoming critical and it was openly stated that York would have to be abandoned were the natives not immediately checked. The military was strengthened at York and every settler was as far as possible protected.