During the years 1841 and 1842, several families settled at the falls, when Dr. McLaughlin, who still resides at Fort Vancouver, comes on the ground, and says the land is his, and any person building without his permission is held as a trespasser. Without reference to any person's right or claim, he employs a surveyor to run out the plat; and as a bill was before the Senate of the United States to grant to every white male inhabitant a mile square, he has a mile run out to suit his views, and lays out a town plat at the falls, and calls it Oregon City. Although some, for peace's sake, asked him for the lots they had already in possession, and which he appeared very willing to grant, the doctor now felt himself secure, and posted up the annexed paper (marked A), which is the original; and all who had lots were required to pay Mr. Hastings five dollars for a deed of land which they knew very well the grantor did not own, but that Congress will pass a special act granting to each man his lot and improvements. Those that applied received (if they had a house on the lot) a deed, a copy of which is annexed (marked B); if they had no house, a bond was given for five dollars, a copy of which is annexed (marked C). To those that applied and paid their five dollars all was right with the doctor; while those who considered his title to the land not good, and that therefore he had no right to direct who should build and who should not, had their lots sold to others. In one case the purchaser came to the original claimant and ordered him to stop digging the ground which he was preparing for a garden, and commanded him to remove his fences, as he had Dr. McLaughlin's bond in his pocket for the lots; and if he did not move the fence he would, and take forcible possession. Those who desired to have no difficulty, and did not apply for a deed, have lost their lots, the doctor's promise, and all. And Mr. Hastings (the doctor's agent) is now offering for sale the lots on which part of the mission buildings stand; and if he succeeds in finding a purchaser, they must either contend or lose their buildings. Dr. McLaughlin has held claims in other places south of the Columbia River: at the Tualatin Plains and Clackamas Plains he had huts erected, to prevent others from building; and such is the power of Dr. McLaughlin, that many persons are actually afraid to make their situation known, thinking, if he hears of it, he will stop their supplies. Letters were received here from Messrs. Ladd & Co., of the Sandwich Islands, in answer to a letter written by the late Mr. Ewing Young, for a few supplies, that orders were received forbidding the company's vessels carrying any goods for the settlers of Oregon. Every means will be made use of by them to break down every thing that will draw trade to this country, or enable persons to get goods at any other place than their store.