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observed pearl oysters in Sharks Bay in 1699. Other navigators made similar discoveries. In 1850-1, while Lieutenant Helpman was exploring in Sharks Bay, he found several clumps of pearl oysters on the shoal connecting Saturday Island with the mainland. In each clump were five or six oysters, and on opening some of them he discovered pearls about the size of a pea. Colonists were gratified to obtain such information, and application was made by a local firm for the exclusive right to search for pearl shell in Sharks Bay. Governor Fitzgerald granted the application, on the stipulation that the Government should receive a royalty of one-eighth of the yield. The Advocate-General doubted whether the Governor had such power without the authority of an Act of Parliament. An awkward situation arose. In May, 1851, the Secretary for the Colonies, by a most unusual assumption of office, took upon himself the right of administering local affairs out of the usual channel—through the Governor. He gave permission to a London firm to dredge for pearl shell in Sharks Bay without paying duty up to July, 1852. When this information reached the colony, the Governor was astonished, and the Inquirer, denounced the "downright impudence" of the Secretary for the Colonies. Despatches were exchanged, and it was finally determined and insisted by Earl Grey that the right of fishery should remain open to the public, and that no duty be imposed in 1852 or afterwards without the sanction of the Home Government. It was discovered that Captain Fitzgerald had exceeded his powers. It was generally considered that Earl Grey should have consulted with the local Government before making any concession of rights over Western Australian property.

Some additional efforts were devoted to horse rearing for the Indian market. A meeting was held in Perth in September, 1849, to consider the question. Attention was drawn to the splendid market for horses in India. The action of Mr. Princep at Bunbury, Mr. Phillips at Toodyay, and others at York, in introducing superior strains of animals was commended. A serious attempt was made to form a large company, but owing to disagreement nothing came of it. The Scindian sailed in August, 1850, with twenty-three horses, and the Minden in November, 1851, with thirty-five horses for the Indian market. In January, 1851, the Government offered a bonus of £60 to the first importer of one male and two female camels, also £60 to the importer of two male and eight female alpacas, if landed within twelve months.

In April, 1852, Postmaster-General Helmich brought coffee and cotton seeds from India, and offered them to those persons willing to experiment in such culture.

A few exhibits were sent from Western Australia to the historical London Exhibition of 1851. Bunbury supplied three bushels of wheat, two fleeces of wool, one plank of mahogany, and twelve trenails. It was announced that the samples of wheat from Western Australia, weighing 67 lbs. to the bushel, were inspected by hosts of people, and that the specimens of hardwoods were admired.

Perhaps the most distinctive features of industry were the inauguration of settlement in the Champion Bay district, and the initiatory development of the Geraldine Mine. When the exploration party of 1848 reached Perth, it was announced that one of its members had applied for an area of land on the Murchison River. It was also reported in 1848 that copper ore had been discovered on the Victoria Plains, a report which was confirmed by Mr. A. C. Gregory, who discovered the lead vein on the Murchison. In one place on the Murchison he found granite rocks intersected with small veins of quartz, some of which contained traces of zinc, lead, and copper. Then on 16th October, 1848, he came to a spot where galena ore filled a cleft in the rock, one foot wide and thirty yards long, which, however, was submerged in three feet of water, so that he could not examine it thoroughly. He was confident of the mineral resources of the Murchison. The galena ore in the cleft had a potent interest for Perth people, and they soon got Mr. Gregory's report confirmed.

Mining under the auspices of the Western Australian Mining Company on the Canning at Kelmscott receded in popular favour, and the imaginative vistas of prosperity to be gleaned out of the coal deposits on the Murray were dispersed by the reality of a few months of sinking. Assays of ore obtained at Kelmscott undoubtedly proved the presence of silver and zinc and copper, but though shareholders in the Proprietary Company were convinced that there must be an exceedingly rich mine somewhere in the neighbourhood, they were unable as yet to extract sufficient metal to encourage the investment of more capital. In December, 1849, a call of 1s. per share was declared. In 1850 the Western Australian Mining Company was dissolved, and work at Kelmscott was stopped. Sinking on the Murray for coal had long been suspended. Mr. Gregory confirmed the coal discoveries on the Fitzgerald River.

The hopes of getting a rich mine in the colony were now centred on the north-west. The coal deposits on the Phillips and Fitzgerald Rivers, near Esperance Bay, must go abegging because local people were not strong enough to work them. Yet all were sanguine that they would have a great ultimate value. The Government Gazette of 17th March, 1849, proclaimed that the Government had a lead mine for sale; it was the attractive looking deposit in the rock cleft under the waters of the Murchison. A small company was immediately formed to purchase it. In April it was announced that the company, comprising thirty-two shares of £20 each, had taken up 640 acres of land, including and surrounding the site. The name of the Geraldine Company was taken in honour of Governor Fitzgerald, and it was also decided to name the mine Geraldine. The trustees (or directors) were Messrs. A. O'Grady Lefroy, G. Shenton, and R.M. Habgood. Without waste of time tenders were called in May to raise 100 tons of silver lead ore, and to cart 50 to 100 tons to Champion Bay. The advertisement states that the country between Geraldine and Champion Bay contained abundance of feed and water, and that the Geraldine mineral vein was of pure ore, with an average width of 18 inches, open to the length of 320 yards.

These tenders were conditional on the Government affording ample protection to any party which might proceed thither. A few days later Governor Fitzgerald offered the Geraldine Company the protection of twenty-five soldiers. In September a meeting of shareholders was held, when it was determined to purchase a team of horses to draw the ore to the seaboard, owing to no definite offers having been received. In October, however, two horse teams were hired for three months, and it was agreed to employ workmen and obtain provisions for a like period. Mr. W. Burges, an animating spirit in the whole proposals, was appointed to superintend operations, and to