In October of this year, the Hon. Poulett Thompson (Lord Sydenham) arrived in Canada, and took the whole control of the public affairs. When his advent was announced, and a month before he set foot in Canada, a new arrangement had been made between McNab and Sir George Arthur's Government. The Chief dreaded the arrival of Lord Sydenham. Fearing he would be deprived of the township and receive nothing; apprehensive that the timber duties he had received and the rents he had taken from his followers would be set off against him for any claims to grants he might have; he made an application through his friends, Attorney-General Hagerman and the Hon. H. Sherwood, to give up all his claims against the settlers, and give the 5,000 for L9,000.--The Executive Council was called together. Sir George Arthur thought L2,000 was quite sufficient. At length, after a long and animated discussion, it was resolved to offer the Chief L4,000, and take the township off his hands, with the exception of the lots already deeded to him. The Chief accepted the proposal, and on the 27th Sept., 1839, the final Order-in-Council was passed to that effect. The Gordian Knot was cut. The attempted feudal tyranny was prevented. The details were yet to be arranged, and until these were satisfactorily settled, McNab was to have the same control over the township, as usual; but he was to exact no more rent. To close the matter, McNab that day was paid L1,000 by the Receiver-General, as the first instalment of the settlement of his claims. CHAPTER XIV. (1840). THE GREAT STRUGGLE--FINAL TRIUMPH OF THE SETTLERS--IMPRISONMENT OF DUNCAN CAMPBELL.