Thus matters remained upon the faith of this arrangement until the 9th July last, when General Harney paid a visit to the island.  He found upon it twenty-five American residents with their families, and also an establishment of the Hudsons Bay Company for the purpose of raising sheep.  A short time before his arrival one of these residents had shot an animal belonging to the company whilst trespassing upon his premises, for which, however, he offered to pay twice its value, but that was refused.  Soon after “the chief factor of the company at Victoria, Mr. Dalles, son-in-law of Governor Douglas, came to the island in the British sloop of war Satellite and threatened to take this American [Mr. Cutler] by force to Victoria to answer for the trespass he had committed.  The American seized his rifle and told Mr. Dalles if any such attempt was made he would kill him upon the spot.  The affair then ended.”

Under these circumstances the American settlers presented a petition to the General “through the United States inspector of customs, Mr. Hubbs, to place a force upon the island to protect them from the Indians, as well as the oppressive interference of the authorities of the Hudsons Bay Company at Victoria with their rights as American citizens.”  The General immediately responded to this petition, and ordered Captain George E. Pickett, Ninth Infantry, “to establish his company on Bellevue, or San Juan Island, on some suitable position near the harbor at the southeastern extremity.”  This order was promptly obeyed and a military post was established at the place designated.  The force was afterwards increased, so that by the last return the whole number of troops then on the island amounted in the aggregate to 691 men.

Whilst I do not deem it proper on the present occasion to go further into the subject and discuss the weight which ought to be attached to the statements of the British colonial authorities contesting the accuracy of the information on which the gallant General acted, it was due to him that I should thus present his own reasons for issuing the order to Captain Pickett.  From these it is quite clear his object was to prevent the British authorities on Vancouvers Island from exercising jurisdiction over American residents on the island of San Juan, as well as to protect them against the incursions of the Indians.  Much excitement prevailed for some time throughout that region, and serious danger of collision between the parties was apprehended.  The British had a large naval force in the vicinity, and it is but an act of simple justice to the admiral on that station to state that he wisely and discreetly forbore to commit any hostile act, but determined to refer the whole affair to his Government and await their instructions.