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Rh the faith of their proceedings, and other binding contracts had been entered into. It was, therefore, impossible for the directors to abandon the enterprise. Yet, if they despatched the Parkfield, Mr. Clifton might find on his arrival in the colony that Governor Hutt had already disposed of Colonel Lautour's grant to other settlers before he was aware of Lord Glenelg's decision. Delay, disappointment, and misfortune would most certainly ensue.

The directors determined not to run such a risk, "forgetting, indeed," writes Mr. M. W. Clifton, "that their prior title from the Colonial Office would have at once superseded every subsequent act of the Local Government, even if the colony contained within it persons who could have so immediately purchased the tract of land in question." When they had no hope of extricating themselves from their dilemma, an opening of relief apparently came. Captain Grey had recently arrived in London fresh from Western Australia. He told the directors that north of Perth, between Gantheaume Bay and the Arrowsmith River, was a highly fertile and well-watered country, containing a salubrious climate: An admirably protected harbour existed at Port Grey, which could be used as the port for any settlement they might make. There, and not at Leschenault, was the suitable country where they might satisfactorily apply their scheme, for this district was one of the finest in all Australia. This was Captain Grey's description of the country surrounding the present town of Geraldton. Leschenault, he oracularly said, was low and sandy, and Colonel Lautour's grant was hardly ornamented by a single tree.

Captain Grey suggested the removal of the scene for future operations from Leschenault to Port Grey, and, under the circumstances, the directors eagerly accepted the proposal. Mr. William Hutt, the chairman, immediately communicated with the Secretary of State for the Colonies, who had no objection to the company transferring its operations to the new and "splendid district of Port Grey." The directors announced their determination to transfer, and, so the record narrates, unfortunately "congratulated land purchasers on the happy change they had made, which congratulation at once gave the lie to all that they had themselves printed of the advantages of the original site," and to all that Mr. Clifton had stated at public meetings and at land sales. The latter gentleman preferred to rely on the descriptions of Leschenault of Sir James Stirling and other returned colonists he had met,. as well as published accounts from the Swan River, to these gloomy statements of Captain Grey. He even doubted whether the explorer had ever been to Leschenault, and therefore advised the directors, collectively and separately, in private and at meetings of the board, not to rely on Captain Grey's report, and not to transfer the projected operations from Leschenault to Port Grey.

The directors were determined. In announcing the intended change, they, with a sense of honour which deserved a better fate, gave land purchasers the option of adopting the proposal, or of taking back the purchase-money with interest at the rate of £5 per cent. for the time it had been paid. The complete reversal of the proposals affected the prospective settlers more than was supposed. The conflicting accounts left grave doubts in their minds, and for the first time led them to dwell on the risks and trials of colonising work. They did not know who to believe. For a few days a limited number availed themselves of the liberal offer of the directors, but then a panic set in. Many men who, at the solicitation and advice of Mr. Clifton, had purchased land, and proposed to devote their energies to cultivating it in Australia, withdrew. Among them was the chaplain, the Rev. Wollaston. Those who had purchased as a speculation became alarmed, and those who in the lottery had drawn distant numbers of choice recognised a good opportunity to get out of a bad bargain. They applied for and received their money. The action of the latter cut in two ways. It not only took from the directors the sum with interest paid for allotments, but threw into their hands the remote allotments, which, naturally, could only be sold at a lesser price than those near to the town site.

To allay the panic, if possible, Captain Grey was asked to meet from eighty to one hundred of the landholders at Mr. Clifton's house in London, and to answer any questions which might be put concerning the country at Port Grey. The explorer acquiesced, and was subjected to such a searching enquiry, and answered so straightforwardly, that many wavering minds were convinced; and several persons who had made application of withdrawal cancelled the application forthwith.

But the action of numbers of enterprising landholders of Halifax, in Yorkshire, precipitated matters. These gentlemen, who had invested about £12,000 in allotments, and had applied for more, now withdrew their money. No amount of candid explanations and flattering reports could allay the subsequent contagion, and within a few weeks a sum between £35,000 and £40,000 received from land sales was reclaimed. The only gentleman who stayed the drift, and prevented the total extinction of the company, was, according to Mr. Clifton, the Right Honourable J. W. Croker, F.R.S., P.C., who refused to reclaim his investments.

So far the directors had suffered keenly by their credulity. The report that Colonel Lautour's grant was resumed, and that the land at Leschenault was comparatively valueless, was too readily accepted, and their wavering had caused them considerable loss. The eyes of a great part of London was upon them; articles had been published relative to the company and the explorations of Grey, and apparently conclusive arguments were tendered of the superiority of the Port Grey country. The directors deserve praise for the liberal and honourable opportunity they gave to purchasers to withdraw their money, and although crippled by these enormous withdrawals, and also by the unfortunate failure of their bankers, they determined to proceed with the plans, and to fulfil all their obligations to those settlers who had remained faithful, and to the emigrants who had been engaged. Preparations were resumed with renewed energy, the Parkfield was engaged under a new agreement, and instructions were given to Mr. Clifton to proceed to Leschenault for the survey officers, thence to Perth to interview Governor Hutt, and, afterwards, to repair to Port Grey.

The Parkfield hauled out of the London Docks on 2nd December, 1840, and on the 4th Mr. M. W. Clifton joined her at Gravesend. Next day the deputy-chairman of the company, Mr. John Chapman, went on board, delivered final instructions to Mr. Clifton with power of attorney in Australia from the company, and addressed a few words of comfort and advice to the emigrants. A religious service was held, and then the ship sailed out of port for Western Australia. There were on board, including the Clifton family, about thirty settlers, and about 120 emigrants.

The scheme of the Western Australian Company was viewed