The mere entrance of a private individual, such as Captain Gray, into a river could not give the States a claim up and down the coast to regions which had been previously explored by officially despatched British expeditions like that of Cook. It was emphatically denied that the restoration of Fort Astoria, under the Treaty of Ghent, had any bearing on the title. Nevertheless, Great Britain was willing to accept as a boundary the forty-ninth parallel from the mountains to the Columbia (then known as McGillivray River), and down that river to the sea. But the Americans were obdurate; a deadlock ensued and the convention of 1818 remained in force. The Company repeatedly urged the Government not to abandon one inch of territory rightfully under the Crown, to the United States. Nevertheless, a settlement of the Oregon Question was highly desirable. If in spite of the treaty of 1818 the States should attempt to occupy the territory, war would be inevitable. If on the other hand the treaty should expire without any attempt at American occupation, Great Britain would be, by the law of nations, the party rightfully in possession. A new conference was held in London, in 1827; but it was impossible to agree on a boundary, and the only thing possible was a compromise to the effect that the treaty of joint occupation should be indefinitely renewed subject to abrogation at any time by either party on twelve months' notice. Thus the statu quo was maintained, and the Hudson's Bay Company remained in actual possession of the profits of the fur-trade for many years to come.

In 1828 Governor Simpson believed it advisable to make a general survey of the western posts, with the object of impressing peace and good-will upon the natives, and also to acquire a further knowledge of the needs and abilities of the Company's officers and servants in that quarter. This journey of the Governor, undertaken in considerable state, was from York Factory to the Pacific. He was accompanied by a chief factor, Archibald Macdonald, and a surgeon named Hamlyn. Fourteen commissioned gentlemen, as the chief factors and chief traders were called, and as many clerks, accompanied the party to the canoes, and amidst great cheering and a salute of seven guns, bade them God-speed. Simpson entered Peace River on the 15th of August, and reached Fort Vermilion in due course, three hundred and twenty miles from the mouth, which was then in charge of Paul Fraser. From here he proceeded to Fort St. James, the capital of Western Caledonia, and the chief depot for all the region north of the Fraser Forks to the Russian boundary, including the Babine country. Forts Alexandria, Kamloops and Vancouver were visited in due order, and in the following year Simpson returned east by way of the Columbia.

In an attempt to enter the Columbia River in 1829, the Company's ship from London, William and Ann, was wrecked on Land Island. Several of the crew escaped and landed on Clatsop Point, where they were immediately murdered by the natives, in order that the plunder of the vessel might be accomplished without interruption. News of the disaster was carried to Fort Vancouver, where the officer in charge, McLaughlin, sent messengers demanding a restoration of the stolen cargo. In response to this request, an old broom was despatched to the fort, with the intelligence that this was all the restitution the Clatsops contemplated. The schooner Colbore was therefore sent on a punitive expedition. Several of the tribe were wounded and a chief shot, after which the Clatsops entered into a better frame of mind, and expressed contrition for their behaviour.

Under the Anglo-Russian Treaty of 1825, the Company possessed the free navigation of streams which, having their rise in British territory, crossed Russian territory in their course to the sea. The Company were not long in availing themselves of this privilege. Posts were successively erected, as far as the Stickeen River; but seven years afterwards there was yet no permanent post on that stream. It was, therefore, decided to establish one, and a brig, the Dryad, was accordingly fitted out and despatched from Fort Vancouver. But in that year, 1833, the Russian Government had received the petition of its subjects to rescind the proviso in the treaty favourable to the British. The Company's enterprise in thus encroaching on Russian territory had alarmed Wrangel, who was then in charge of the Russian establishment[115] at Sitka, and he wrote to his superiors urging them to memorialize the Emperor. He alleged that the Hudson's Bay Company had violated its agreement to refrain from selling fire-arms or spirituous liquors to the natives—an allegation which was not founded on fact.

The Dryad appears.

Believing that the situation called for instant action, Wrangel did not wait to learn what course his Government would take in the matter, but at once despatched two armed vessels to the entrance of Stickeen River. A fort was hastily built on the site of an Indian village, guns were mounted, and the Company's expedition awaited. All unconscious the Dryad force approached. Suddenly a puff of smoke and a loud report arrested them, and several shots came from two vessels hitherto concealed in the offing. While the astonished captain and crew put the brig about, with a design to anchor out of range, a boat reached them from the shore, bearing an officer in Russian uniform. He protested in the name of the Emperor and the Governor of the Russian-American possessions, against the entrance of a British vessel into a river appertaining to those powers. The Company's agent attempted to argue the matter, but his representations went unheeded. The Russian was obdurate; they were all threatened with peril to their lives, and their vessel, if the Dryad did not immediately weigh anchor. There was consequently nothing to do but to return.

The Company was indignant at this outrage. The forts it had already built, together with the cost of fitting out the Dryad and other vessels, besides a vast quantity of provisions and perishable merchandise sent into that country, had amounted to £20,000 sterling. The Emperor had granted the petition of the Russian Company; and both the British and the American Governments received notification that the clause in the treaty would terminate at twelve months' notice. But the Dryad affair took place before this decision was made public. The British Government very properly demanded immediate satisfaction, and for a time public interest was keenly aroused. The Russian Government merely consented to disavow the act of its officer; and issued instructions prohibiting further hindrance to the trading limits previously agreed upon.

The matter did not, however, receive settlement until 1839, in which year a convention was held in London to arrange the points long in dispute between the two companies. The matter was settled with despatch. The Hudson's Bay Company's claim for compensation was waived in return for a lease from the Russian Company of all their territory on the mainland lying between Cape Spencer and latitude 54° 40'. For this lease the Company agreed to pay an annual rental of two thousand land-otter skins, and also to supply the Russians with provisions at moderate rates.

In the last chapter, the expedition in 1819-20 of Lieutenant (afterwards Sir John) Franklin, was alluded to.

Franklin and his party reached Fort Chippewyan on the 26th March, after having travelled on foot eight hundred and fifty-six miles, with the weather so intensely cold that the mercury continually froze in the bulb. In July, 1820, they journeyed five hundred miles more to Fort Enterprise, where the party wintered, Back returning to Fort Chippewyan to procure supplies for the next season's operations. He was eagerly awaited, and when he arrived, in March, 1821, he had a tale of great hardship to relate. He had travelled over one thousand one hundred miles, sometimes going two or three days without food, with no covering at night but a blanket and deerskins to protect him from the fearful rigours of fifty-seven degrees below zero. In June the party started out from the Coppermine to reach the sea, which they did in eighteen days. Their subsequent sufferings were of the most dreadful description. When the survivors returned to York Factory, they had travelled five thousand five hundred and fifty miles by land and water; but their object was still unaccomplished.[116]