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FORT VANCOUVER, December 31, 1847. To Governor George Abernethy, Esq.:

SIR : A rumor having been in circulation for some days past, that it is General Gilliam s intention to levy contributions on the Hudson's Bay Company s property, for the purpose of completing the equipment of the troops ordered out in your late proclamation for the intended operations against the Indians, I feel it my duty to communicate with you frankly on the subject, as it is most import ant in the present critical state of our Indian relations that there should be an entire absence of distrust, and that the most perfect unanimity should exist among the whites of every class. From my personal knowledge of General Gilliam, and his highly respectable character, I should be the last person to believe him capable of com mitting an outrage which may prove so disastrous in the immediate and remoter consequences to the peace and best interests of this country ; at the same time, as the representative of a powerful British association, it becomes my duty to take instant measures for the protection of their property, until I receive through you a distinct disavowal of any such intention as herein stated. Difficul ties of that nature were certainly not contemplated by us when we dispatched a large part of our effective force into the interior for the purpose of receiving the unfortunate women and children, the sur vivors of the massacre at Waiilatpu, who remained in the hands of the Indians. It was never supposed that our establishment would be exposed to insult or injury from American citizens, while we were braving the fury of the Indians for their protection.

Such a proceeding would, in fact, be so inconsistent with every principle of honor and sound policy, that I cannot believe any attempt of the kind will be made ; but I trust this explanation will satisfactorily account for any unusual precaution observed in the present arrangement of this establishment.

Trusting that this note will be observed at your earliest conven ience, I have the honor to be your most obedient servant,

JAMES DOUGLAS, Chief Factor Hudson's Bay Company.

To which letter Governor Abernethy replied :

OREGON CITY, January 3, 1848.

SIR : I received your favor of the thirty-first ultimo yesterday evening, and in answering it would thank you for your frankness in communicating with me on the subject. Having had conversa tion with Colonel Gilliam on this subject, he has no intention of levying contributions on the Hudson's Bay Company s property for any purpose whatever. He will probably cross the Columbia river at the mouth of the Sandy. I trust that nothing will occur