The land survey committee that selected this area for the Icelandic colony, New Iceland, in North America in 1875, sailed along the coast and examined the waterfront and what was in front of their eyes. They further explored the area where the river marked as Icelandic River on the map flowed into the lake and they liked what they saw. When most of those who had endured several years in the colony realized that little or no progress had been made since its establishment and that the future prospects were poor under the circumstances, emigration began. Some followed Reverend Páll Þ(Th)orláksson south to North Dakota, where settlements formed in 1878, while others sought out the plains west of Winnipeg. Coincidence alone led to Gimli being created where it still stands, the first group of Icelanders was forced ashore on Víðirnes because the captain of the steamboat Colville refused to tow the Icelanders’ flat boats further north along the lake. The settlers walked from the point or headland along the shore to a place they liked better and began to build their huts. The land survey committee was going with the group north to Icelandic River (Íslendingafljót) where Gimli was to stand. It can therefore be said that Gimli is in the wrong place.
River Settlement (Fljótsbyggð): New Iceland, the dream of a remote, Icelandic settlement in North America seemed to have come to nothing, but it did not; not everyone left. In the years 1879-1883, several Icelandic families who chose to go to New Iceland came west across the ocean, some settled at Gimli for a while but then went north to Icelandic River (Íslendingafljót) and settled there. For most of those who chose to stay in New Iceland, people saw various possibilities, probably no one as great as Sigtryggur Jónasson, often called the father of New Iceland. He took land by the Icelandic River in 1876 and named it Möðruvellir. Sigtryggur’s wife, Rannveig Ólafsdóttir, had grown up in Möðruvellir in Hörgárdalur and Sigtryggur stayed there at the time. He married Rannveig in the spring of 1876 at home in Iceland.
In the autumn of 1880, Sigtryggur and Friðjón Friðriksson bought a steamboat called Victoria, the purpose of which was to promote transport on the lake. To make it work, they bought two barges that the Victoria pulled, and on them they loaded all kinds of goods. In 1881, they built a sawmill by the river and it would prove to be the lifeblood of New Iceland because many people got jobs in logging, sawing and transportation. At last there was employment in the colony, but both young men and women had sought work outside the colony, either to Winnipeg or to farmers near the city. Being able to run your own farm alongside paid employment at home is crucial. Emigration changed New Iceland a great deal. Gimli, the first village, became a kind of ghost town, from there most of the inhabitants had either moved away from the settlement or north to Icelandic River. Settlement in Árnes also almost ceased, and even the Mikley Island Settlement (Mikleyjarbyggð) changed and the number of inhabitants decreased despite the fact that people there were getting on well with fishing in the lake.
Þorleifur Jóakimsson collected reviews of developments in Fljótsbyggð and published in his book Fragments of the Settlement History of New Iceland (Brot af Landnámssögu Nýja Íslands) which was published in Winnipeg in 1919. He has many quotes from Helgi Jónsson’s “Leifur” newspaper which was published in Winnipeg in the years 1883-1886:
“Leifur” tells in the 31st issue. December 7, 1883, that a mail sleigh is to run between Selkirk and Íslendingafljót. In the 24th issue. second year, October 17, Rev. Jón Bjarnason writes about New Iceland. He has recently returned from Iceland and is taking a trip to the settlement. Departs from Winnipeg on Saturday, September 20, 1884. Went with the steamboat Victoria from Selkirk north to Fljóts, and that trip here took about a day. He had a worship service on Thursday 25 September in pleasant weather in the open air, under a forest bush not far from Möðruvellir, and most of the people of Fljótsbygð were gathered there. There was a lot of discussion about the church affairs of the locals and a committee was elected to initiate the formation of a regular congregation. The idea was to rebuild the congregation Bræðrasöfnuð, which had faded for over three years since Rev. Halldór Briem left New Iceland. Reverend Jón mentions that he has felt that great progress has been made by the river for four and a half years since he returned to Iceland in the spring of 1880. İssue 25. “Leifur”, 2nd year, is a letter from Fljótsbygð, dated September 30, 1884. It is mentioned that the weather was wet at the beginning of the month, but the weather was dry and favorable in the latter part of the month. Fish catch is set to have been rather poor that time of year. It is said that by then the lumber mill of Jonasson, Friðriksson and Walkley had finished their summer work; had sawn 21,000 logs; of which the company had accomplished 18,000 logs the previous winter; from 20 to 30 people and from 5 to 7 pairs of horses and oxen worked continuously. Farmers cut and transported 3,000 logs to the mill, from which the company cut boards and took half of the wood as salary. The wages of the company’s workers during the winter were 13 to 15 dollars a month, but in the summer 20 dollars and food. Those who fed themselves received $13 for lunch money over the month. According to the letter, 6 to 10 people have worked on the ship that the company had under construction since last February. Their pay day was $1.20 to $1.25. It is mentioned that some land title letters have been sent from the government, but still many have not arrived yet, because they had not prepared by the agent who was autumn before last. Everyone has received the titles prepared by the agent who was in the colony the autumn before last. Furthermore, everyone could receive their titles free of charge, but some did not receive them, it was not considered good to quit their jobs to go to Winnipeg and get them there. It is said that it was then planned that some men, who had not received titles for their lands, should move north by the water, nearly three miles north of where the river flows into the lake; there it is uninhabited, but the land is considered good.
It is said that Guðmundur Bergþórsson, a blacksmith, who came from Sauðárkrókur in Iceland that summer, was planning to start canning fish by the river that same autumn. He has already procured the most necessary utensils to make the containers and plans to settle at Sandvík (Sandy Bar). The potato crop is doing well this autumn and most people have already dug them up. It is written from Fljótsbygð on July 4, 1885. The letter is in the 3rd year. “Leifur”, 9th issue. It is mentioned that the settlement is growing up the river. Three men recently moved west of the old settlement, two of them a few miles beyond Fögruvellir; and these men are happy with their lands, saying there is good grass and good soil, and a great catch of fish in the River that spring. The author of the letter says that from 20 to 30 inhabitants can settle in the area from the old settlement up to Fögruvellir, and the land further west was considered good. The author says that it does not look good for grass growth and crops due to drought and heat, which has been dry and hot almost every day, sometimes 80 to 100 degrees in the shade. The author says that bears have been more noticeable that summer and go to the farmers’ fish huts to get a bite; otherwise they are not harmful. Five of them had been shot during the summer east of Breiðuvík. At Sandy Bar and in Breiðuvík, lime had been burnt that spring and is very successful, and some people are starting to work hard to whitewash their houses. In the 47th issue. “Leifur”, 3rd year, is a letter from Fljótsbygð, dated 14 April 1886. The weather is good, southerly winds and thaws day and night, the land is empty and plowed. While it was snowing, the farmers used the sledge to pull the logs to the sawmill; they have cut down three to four thousand trees, which they get half of the product. The prosperity remains good and people are content. General health good, good animal husbandry; harmony and unity between people and no movement or agitation is heard; agriculture small and congregational life little. A primary school was held by Íslendingafljót for only a month; the teacher was Jón Sigurðsson (then, at the time of writing, living in Selkirk); agile and well-mannered. On April 10, the writer says that an auction was held and a play was performed at Lundi by the river, which was arranged by several women. And they intend to spend the proceeds, which amounted to more than 20 dollars, on the needs of the congregation, but in what way remains to be decided. During the first settlement period, a primary school was established in Lundi and it was maintained as the teaching staff and circumstances allowed until the school districts in New Iceland had been established and legalized. There are people in their sixties who attended the primary school in Lundi operated by Sigtryggur Jónasson, Halldór Briem and Torfhildur Holm.”
Friðrik J. Bergmann says in Almanak Ó. S. T. in 1907 about the primary school in Fljótsbyggð that Sigtryggur Jónasson founded: ”Sigtryggur established a school there by the river which was a matter of great necessity. Of course, the county’s public school system did not yet reach the settlement, so individuals had to join forces without any support from the government. But the fact that growing young people learned the language of the land was the most urgent condition of all progress. It was said of the older people that they are helpless, because they cannot express themselves in the language of the land. It was obvious to everyone what a disaster it would be if the children were raised to be also speechless. This school was appreciated very much, although it was established with almost no funding, which is not surprising.”
English version by Thor Group.