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with fertile valleys. The horses were showing many signs of fatigue, and Mr. Gregory formed a depot, whence flying trips were made. During one of these journeys he reached the Ashburton River, which, meandering through fertile plains, gave every indication of extending to Exmouth Gulf. On 25th June he saw Mount Augusta, about thirty miles away, and the valley of the Lyons River, whereupon he proceeded to the eastward, cut the Ashburton about fourteen miles higher up in fertile land, and returned to the depot. Here he found the horses' hoofs in such a state as to oblige a return to Nickol Bay. The explorers re-crossed the mountains, went over stony country and open plains, and discovered the Sherlock River, which they followed to the coast. The last twenty miles were made up of extensive grassy flats, which Gregory estimated to contain 20,000 acres of arable land. Thence the party went parallel with the coast, crossed and named the George and Harding Rivers, and arrived at Nickol Bay on 19th July.

On 29th July they resumed their travels and followed their homeward tracks to the farthest point of the Sherlock River. In the E.S.E. they discovered and named the Yule River, which they ascended for two days. The country was grassy, and well-watered, but rocky. Then they traversed hilly country, and found the Strelley River, and eastwards another stream in longitude 119° 44' latitude 21°15' south, which they named the Shaw. The pasture was good, and the land hilly. After following a tributary of the Shaw they came to and named the De Grey River. Then leaving open grassy plains they went further east and named the Oakover River. Gregory described parts of the land approaching the Oakover as containing superior pasture. For two days the explorers traced the Oakover, and then they again struck east over fertile plains, which merged into stony country. They went beyond the good country, and were soon in difficulties. They had entered extensive sand plains, with ridges of red drift sand, and after losing three horses and abandoning some pack saddles they fell back on the Oakover. The furthest point reached east was near Mount Macpherson, about longitude 121°30'. The Oakover was now followed to its junction with the De Grey; on either side stretches of fine pasture were passed. The De Grey nearing the coast was surrounded by open grassy plains extending outwards from ten to twenty miles. Gregory was well pleased with Breaker Inlet, which he termed an alluvial delta as fertile as any land he had seen in Western Australia. The return journey to Nickol Bay, past the Strelley and Yule, was soon accomplished, and on the 9th November the Dolphin arrived with the explorers at Fremantle.

Owing to the severity of the journey six horses succumbed. The distance travelled was 2,040 miles. No inconvenience worth mentioning was experienced from the natives, although it was twice necessary, when they became threatening in their efforts to prevent the advance of the explorers, to frighten them away by firing off the guns. At Nickol Bay the blacks assisted in watering and wooding the ship. The only mishap during the whole trip was the accidental shooting of a member of the party in the hips, but under Gregory's care the man completely recovered. The leader reported that the flora of the northern country was most brilliant, differing from that around Perth. The banks of the rivers were lined with bamboos and mangoes, while the wild plum, fig, and date trees were also numerous. On the Fortescue there were particularly handsome palm trees, many rising to the height of forty feet and more. Kangaroos, emus, and swans were scarce, but there was a plentitude of ducks, pigeons, and cockatoos. The rivers were all fresh, and abounded in fish, principally the cobbler species weighing about five pounds. These fish were found far inland. Of the value of the country traversed Gregory reported favourably. He estimated that he passed over 3,000,000 acres of grazing land and, 200,000 acres of land suitable for agriculture. Numbers of pearls, some of value, were procured in Nickol Bay, and several tons of pearl shell were gathered.

In the past Western Australians had been apt to speak mournfully of the small stretches of pastoral country in the colony. Their experiences had made them sceptical and unduly cautious, and as a consequence they usually waited for some new-comer to go out into the wilderness and pave the way for them. Residents of the eastern colonies formed the opinion from these characteristics, and also from the old injurious reports, that the colony possessed but few large areas of grazing land, and these, where they existed at all, were isolated and set in desolation. But leading settlers were at once exceedingly anxious to form stations in the land traversed by Mr. Gregory, and they also soon heard that squatters in Victoria were making enquiries concerning it. Mr. Walter Padbury was the most enthusiastic and enterprising, and became the pioneer of north-west settlement. He approached the Government, asking for special privileges, and wrote Mr. F. T. Gregory for a definite opinion. The reply of Mr. Gregory is interesting in the light of knowledge since acquired. He wrote:—"North-west Australia is a very stony country, and by no means so fertile as Queensland, but yet quite sufficiently so as to, in my opinion, afford a fair prospect of success to judicious settlers, and is beyond all doubt far beyond the average of the settled districts of Western Australia." Mr. F. T. Gregory left the colony in 1862; a farewell banquet was tendered him by the Chamber of Commerce in February.

The Governor compiled special regulations for the north-west country, subject to the approval of the Imperial Government, and offered Mr. Padbury, or any other person actually settling there, the use of 100,000 acres, in 20,000 acre blocks, for the term of twelve years, the first four years to be without rent. These regulations applied to the district between the sea coast and the meridian of 129° east longitude, and to the north of the Murchison River, and of a true east line through the summit of Mount Murchison. They also applied to country discovered to the east and south. The lands were divided into classes. Class A comprised those lands within two miles of the sea coast, including the adjacent islands, for which annual licenses were to be obtained. A new class was opened: Class C lands were granted for eight years, and comprised the remainder of the lands in the north and south-eastern districts. Free pasturage was allowed for one year from date of arrival of stock, and within that period runs could be selected, not to exceed 100,000 acres, by any one person or company. A license would then be issued. A fee of £5 was charged at the commencement of Class C leases, with 5s. per 1,000 acres for each of the first four years and 10s. per 1,000 acres for each of the second four years. Class A was charged at the same rate, but without license fee. Leases and licenses could be transferred if properly stocked, and might be resumed, with compensation for lawful improvements, on twelve months' notice. The right was given to cultivate during the first year of lease. These regulations came into force on the 1st January, 1863; the Imperial Government signified approval of them.

The whole set of regulations was slightly revised during the next two years. In August, 1862, a committee, consisting of the Colonial Secretary, the Surveyor-General, the Acting Treasurer (F. B. Wittenoom), Mr. J. W. Hardey, and Mr. L. S. Leake, was appointed to rectify the defects. The members reported in