The policy of the company had been to treat them justly, and after the first summer the settlers bought Jamestown Island from the Paspaheghs for some copper,[29] and during his presidency Captain Smith purchased the territory at the Falls.[30] For their late proceedings the Indians had incurred the penalties of confiscation, but Lord Delaware did not like harsh measures and sent to Powhatan to propose peace.

His reply was that ere he would consider any accommodation Lord Delaware must send him a coach and three horses and consent to confine the English wholly to their island territory.[31] Lord Delaware at once ordered Gates to attack and drive Powhatan's son Pochins and his Indians from Kecoughtan; and when this was done he erected two forts at the mouth of Hampton River, called Charles and Henry, about a musket-shot distance from Fort Algernourne.
No precautions, however, could prevent the diseases incident to the climate, and during the summer no less than one hundred and fifty persons perished of fever.

In the fall Delaware concentrated the settlers, now reduced to less than two hundred, at Jamestown and Algernourne fort.

Wishing to carry out his instructions, he sent an expedition to the falls of James River to search for gold-mines; but, like its predecessor, it proved a failure, and many of the men were killed by the Indians.[32] Delaware himself fell sick, and by the spring was so reduced that he found it necessary to leave the colony.
When he departed, March 28, 1611, the storehouse contained only enough supplies to last the people three months at short allowance; and probably another "Starving Time" was prevented only by the arrival of Sir Thomas Dale, May 10, 1611.[33] From this time till the death of Lord Delaware in 1618 the government was administered by a succession of deputy governors, Sir Thomas Gates, Sir Thomas Dale, Captain George Yardley, and Captain Samuel Argall.

For five years--1611-1616--of this period the ruling spirit was Sir Thomas Dale, who had acquired a great reputation in the army of the Netherlands as a disciplinarian.