The Remarkable History of the Hudson's Bay Company

A ship of 200 tons burden, bearing provisions, arrives yearly in August or early September. Sails again in ten days, wind permitting, with cargo and those returning. Sailors alone get pay when at home.

The annual trade sent home from this fort is from ten to four thousand made beaver, in furs, felts, castorum, goose feathers, and quills, and a small quantity of train oil and whalebone, part of which they receive from the Eskimos, and the rest from the white whale fishery. A black whale fishery is in hand, but it shows no progress.

York Factory. – On the north bank of Hayes River, three miles from the entrance. Famous River Nelson, three miles north, makes the land between an island. Well-built fort of wood, log on log. Four bastions with sheds between, and a breastwork with twelve small carriage guns. Good class of quarters, with double row of strong palisades. On the bank's edge, before the fort, is a half-moon battery, of turf and earth, with fifteen cannon, nine-pounders. Two miles below the fort, same side, is a battery of ten twelve-pounders, with lodge-house and powder magazine. These two batteries command the river, but the shoals and sand-banks across the mouth defend us more. No ship comes higher than five miles below the fort.

Governed like Prince of Wales Fort. Complement of men: forty-two. The natives come down Nelson River to trade. If weather calm, they paddle round the point. If not, they carry their furs across. This fort sends home from 7,000 to 33,000 made beaver in furs, &c., and a small quantity of white whale oil.

Severn Fort. – On the north bank of Severn River. Well-built square house, with four bastions. Men: eighteen. Commanded by a factor and sloop master. Eight small cannon and other warlike stores. Sloop carries furs in the fall to York Factory and delivers them to the ship, with the books and papers, receiving supply of trading goods, provisions, and stores. Severn full of shoals and sand banks. Sloop has difficulty in getting in and out. Has to wait spring tides inside the point. Trade sent home, 5,000 to 6,600 made beaver in furs, &c.

Albany Fort. – On south bank of Albany River, four miles from the entrance. Large well-built wood fort. Four bastions with shed between. Cannon and warlike stores. Men: thirty; factor and officers. River difficult. Ship rides five leagues out and is loaded and unloaded by large sloop. Trade, including two sub-houses of East Main and Henley, from 10,000 to 12,000 made beaver, &c. (This fort was the first Europeans had in Hudson Bay, and is where Hudson traded with natives.)

Henley House. – One hundred miles up the river from Albany. Eleven men, governed by master. First founded to prevent encroachments of the French, when masters of Canada, and present to check the English.

East Main House. – Entrance of Slude River. Small square house. Sloop master and eleven men. Trade: 1000 to 2000 made beaver in furs, &c. Depth of water just admits sloop.

Moose Factory. – South bank of Moose River, near entrance. Well-built wood fort – cannon and warlike stores. Twenty-five men. Factor and officers. River admits ship to good harbour, below fort. Trade, 3,000 to 4,000 made beavers in furs, &c. One ship supplies this fort, along with Albany and sub-forts.

These are the present Hudson's Bay Company's settlements in the Bay. "All under one discipline, and excepting the sub-houses, each factor receives a commission to act for benefit of Company, without being answerable to any person or persons in the Bay, more than to consult for good of Company in emergencies and to supply one another with trading goods, &c., if capable, the receiver giving credit for the same."

The movement to the interior was begun from the Prince of Wales Fort up the Churchill River. Next year, after his return from the discovery of the Coppermine, Samuel Hearne undertook the aggressive work of going to meet the Indians, now threatened from the Saskatchewan by the seductive influences of the Messrs. Frobisher, of the Montreal fur traders. The Governor at Prince of Wales Fort, for a good many years, had been Moses Norton. He was really an Indian born at the fort, who had received some education during a nine years' residence in England. Of uncultivated manners, and leading far from a pure life, he was yet a man of considerable force, with a power to command and the ability to ingratiate himself with the Indians. He was possessed of undoubted energy, and no doubt to his advice is very much due the movement to leave the forts in the Bay and penetrate to the interior of the country. In December of the very year (1773) in which Hearne went on his trading expedition inland, Norton died.

In the following year, as we have seen, Hearne erected Cumberland House, only five hundred yards from Frobisher's new post on Sturgeon Lake. It was the intention of the Hudson's Bay Company also to make an effort to control the trade to the south of Lake Winnipeg. Hastily called away after building Cumberland House, Hearne was compelled to leave a colleague, Mr. Cockings, in charge of the newly-erected fort, and returned to the bay to take charge of Prince of Wales Fort, the post left vacant by the death of Governor Norton.

The Hudson's Bay Company, now regularly embarked in the inland trade, undertook to push their posts to different parts of the country, especially to the portion of the fur country in the direction from which the Montreal traders approached it. The English traders, as we learn from Umfreville, who was certainly not prejudiced in their favour, had the advantage of a higher reputation in character and trade among the Indians than had their Canadian opponents. From their greater nearness to northern waters, the old Company could reach a point in the Saskatchewan with their goods nearly a month earlier in the spring than their Montreal rivals were able to do. We find that in 1790 the Hudson's Bay Company crossed south from the northern waters and erected a trading post at the mouth of the Swan River, near Lake Winnipegoosis. This they soon deserted and built a fort on the upper waters of the Assiniboine River, a few miles above the present Hudson's Bay Company post of Fort Pelly.

A period of surprising energy was now seen in the English Company's affairs. "Carrying the war into Africa," they in the same year met their antagonists in the heart of their own territory, by building a trading post on Rainy Lake and another in the neighbouring Red Lake district, now included in North-Eastern Minnesota. Having seized the chief points southward, the aroused Company, in the next year (1791), pushed north-westward from Cumberland House and built an establishment at Ile à la Crosse, well up toward Lake Athabasca.

Crossing from Lake Winnipeg in early spring to the head waters of the Assiniboine River, the spring brigade of the Hudson's Bay Company quite outdid their rivals, and in 1794 built the historic Brandon House, at a very important point on the Assiniboine River. This post was for upwards of twenty years a chief Hudson's Bay Company centre until it was burnt. On the grassy bank of the Assiniboine, the writer some years ago found the remains of the old fort, and from the well-preserved character of the sod, was able to make out the line of the palisades, the exact size of all the buildings, and thus to obtain the ground plan.

Brandon House was on the south side of the Assiniboine, about seventeen miles below the present city of Brandon. Its remains are situated on the homestead of Mr. George Mair, a Canadian settler from Beauharnois, Quebec, who settled here on July 20th, 1879. The site was well chosen at a bend of the river, having the Assiniboine in front of it on the east and partially so also on the north. The front of the palisade faced to the east, and midway in the wall was a gate ten feet wide, with inside of it a look-out tower (guérite) seven feet square. On the south side was the long store-house. In the centre had stood a building said by some to have been the blacksmith's shop. Along the north wall were the buildings for residences and other purposes. The remains of other forts, belonging to rival companies, are not far away, but of these we shall speak again.

The same activity continued to exist in the following year, for in points so far apart as the Upper Saskatchewan and Lake Winnipeg new forts were built. The former of these was Edmonton House, built on the north branch of the Saskatchewan. The fort erected on Lake Winnipeg was probably that at the mouth of the Winnipeg River, near where Fort Alexander now stands.

In 1796, another post was begun on the Assiniboine River, not unlikely near the old site of Fort de la Reine, while in the following year, as a half-way house to Edmonton on the Saskatchewan, Carlton House was erected. The Red River proper was taken possession of by the Company in 1799. Alexander Henry, junr., tells us that very near the boundary line (49 degrees N.) on the east side of the Red River, there were in 1800 the remains of a fort.

Such was the condition of things, so far as the Hudson's Bay Company was concerned, at the end of the century.

In twenty-five years they had extended their trade from Edmonton House, near the Rockies, as far as Rainy Lake; they had made Cumberland House the centre of their operations in the interior, and had taken a strong hold of the fertile region on the Red and Assiniboine Rivers, of which to-day the city of Winnipeg is the centre.

Undoubtedly the severe competition between the Montreal merchants and the Hudson's Bay Company greatly diminished the profits of both. According to Umfreville, the Hudson's Bay Company business was conducted much more economi cally than that of the merchants of Montreal. The Company upon the Bay chiefly employed men obtained in the Orkney Islands, who were a steady, plodding, and reliable class. The employés of the Montreal merchants were a wild, free, reckless people, much addicted to drink, and consequently less to be depended upon.

The same writer states that the competition between the two rival bodies of traders resulted badly for the Indians. He says: "So that the Canadians from Canada and the Europeans from Hudson Bay met together, not at all to the ulterior advantage of the natives, who by this means became degenerated and debauched, through the excessive use of spirituous liquors imported by these rivals in commerce."

One thing at any rate had been clearly demonstrated, that the inglorious sleeping by the side of the Bay, charged by Dobbs and others against the old Company, had been overcome, and that the first quarter of the second century of the history of the Hudson's Bay Company showed that the Company's motto, "Pro Pelle Cutem," "Skin for Skin," had not been inappropriately chosen.

CHAPTER XIV

THE NORTH-WEST COMPANY FORMED

Hudson's Bay Company aggressive – The great McTavish – The Frobishers – Pond and Pangman dissatisfied – Gregory and McLeod – Strength of the North-West Company – Vessels to be built – New route from Lake Superior sought – Good-will at times – Bloody Pond – Wider union, 1787 – Fort Alexandria – Mouth of the Souris – Enormous fur trade – Wealthy Nor'-Westers – "The Haunted House."

The terrible scourge of smallpox cut off one-half, some say one-third of the Indian population of the fur country. This was a severe blow to the prosperity of the fur trade, as the traders largely depended on the Indians as trappers. The determination shown by the Hudson's Bay Company, and the zeal with which they took advantage of an early access to the Northern Indians, were a surprise to the Montreal traders, and we find in the writings of the time, frequent expressions as to the loss of profits produced by the competition in the fur trade.

The leading fur merchants of Montreal determined on a combination of their forces. Chief among the stronger houses were the Frobishers. Joseph Frobisher had returned from his two years' expedition in 1776, "having secured what was in those days counted a competent fortune," and was one of the "characters" of the commercial capital of Canada.

The strongest factor in the combination was probably Simon McTavish, of whom a writer has said "that he may be regarded as the founder of the famous North-West Company." McTavish, born in 1750, was a Highlander of enormous energy and decision of character. While by his force of will rousing opposition, yet he had excellent business capacity, and it was he who suggested the cessation of rivalries and strife among themselves and the union of their forces by the Canadian traders.

Accordingly the North-West Company was formed 1783-4, its stock being apportioned into sixteen parts, each stockholder supplying in lieu of money a certain proportion of the commodities necessary for trade, and the Committee dividing their profits when the returns were made from the sale of furs. The united firms of Benjamin and Joseph Frobisher and Simon McTavish administered the whole affair for the traders and received a commission as agents.

The brightest prospect lay before the new formed Company, and they had their first gathering at Grand Portage in the spring of 1784. But union did not satisfy all. A viciously-disposed and self-confident trader, Peter Pond, had not been consulted. Pond was an American, who, as we have seen in 1775, accompanied Henry, Cadot, and Frobisher to the far North-West. Two years later he had gone to Lake Athabasca, and forty miles from the lake on Deer River, had built in 1778 the first fort in the far-distant region, which became known as the Fur Emporium of the North-West. Pond had with much skill prepared a great map of the country for presentation to the Empress Catherine of Russia, and at a later stage gave much information to the American commissioners who settled the boundary line under the Treaty of Paris.

Pond was dissatisfied and refused to enter the new Company. Another trader, Peter Pangman, an American also, had been overlooked in the new Company, and he and Pond now came to Montreal, determined to form a strong opposition to the McTavish and Frobisher combination. In this they were successful.

One of the rising merchants of Montreal at this time was John Gregory, a young Englishman. He was united in partnership with Alexander Norman McLeod, an ardent Highlander, who afterwards rose to great distinction as a magnate of the fur trade. Pangman and Pond appealed to the self-interest of Gregory, McLeod & Company, and so, very shortly after his projected union of all the Canadian interests, McTavish saw arise a rival, not so large as his own Company, but in no way to be despised.

To this rival Company also belonged an energetic, strong-willed Scotchman, who afterwards became the celebrated Sir Alexander Mackenzie, his cousin Roderick McKenzie – a notable character, a trader named Ross, and also young Finlay, a son of the pioneer so well known twenty years before in the fur trading and civil history of Canada. Pond signalized himself by soon after deserting to the older Company.

The younger Company acted with great vigour. Leaving McLeod behind to manage the business in Montreal, the other members found themselves in the summer at Grand Portage, where they established a post. They then divided up the country and gave it to the partners and traders. Athabasca was given to Ross; Churchill River to Alexander Mackenzie; the Saskatchewan to Pangman; and the Red River country to the veteran trader Pollock.

The North-West Company entered with great energy upon its occupation of the North-West country. We are able to refer to an unpublished memorial presented by them, in 1784, to Governor Haldimand, which shows very well their hopes and expectations. They claim to have explored and improved the route from Grand Portage to Lake Ouinipique, and they ask the governor to grant them the exclusive privilege of using this route for ten years.

They recite the expeditions made by the Montreal traders from their posts in 1765 up to the time of their memorial. They urge the granting of favours to them on the double ground of their having to oppose the "new adventurers," as they call the Hudson's Bay Company, in the north, and they claim to desire to oppose the encroachments of the United States in the south. They state the value of the property of the Company in the North-West, exclusive of houses and stores, to be 25,303l. 3s. 6d; the other outfits also sent to the country will not fall far short of this sum. The Company will have at Grand Portage in the following July 50,000l. (original cost) in fur. They further ask the privilege of constructing a small vessel to be built at Detroit and to be taken up Sault Ste. Marie to ply on Lake Superior, and also that in transporting their supplies on the King's ships from Niagara and Detroit to Michilimackinac, they may have the precedence on account of the shortness of their season and great distance interior to be reached.

They state that they have arranged to have a spot selected at Sault Ste. Marie, whither they may have the fort transferred from Michilimackinac, which place had been awarded by the Treaty of Paris to the Americans. They desire another vessel placed on the lakes to carry their furs to Detroit. This indicates a great revival of the fur trade and vigorous plans for its prosecution.

A most interesting statement is also made in the memorial: that on account of Grand Portage itself having been by the Treaty of Paris left on the American side of the boundary on Lake Superior, they had taken steps to find a Canadian route by which the trade could be carried on from Lake Superior to the interior. They state that they had sent off on an expedition a canoe, with provisions only, navigated by six Canadians, under the direction of Mr. Edward Umfreville, who had been eleven years in the service of the Hudson's Bay Company, and who along with his colleague, Mr. Verrance, knew the language of the Indians.

We learn from Umfreville's book that "he succeeded in his expedition much to the satisfaction of the merchants," along the route from Lake Nepigon to Winnipeg River. The route discovered proved almost impracticable for trade, but as it was many years before the terms of the treaty were carried into effect, Grand Portage remained for the time the favourite pathway to the interior.

The conflict of the two Montreal companies almost obscured that with the English traders from Hudson Bay. True, in some districts the competition was peaceful and honourable. The nephew of Simon McTavish, William McGillivray, who afterwards rose to great prominence as a trader, was stationed with one of the rival company, Roderick McKenzie, of whom we have spoken, on the English River. In 1786 they had both succeeded so well in trade that, forming their men into two brigades, they returned together, making the woods resound with the lively French songs of the voyageurs.

The attitude of the traders largely depended, however, on the character of the men. To the Athabasca district the impetuous and intractable Pond was sent by the older Company, on his desertion to it. Here there was the powerful influence of the Hudson's Bay Company to contend against, and the old Company from the Bay long maintained its hold on the Northern Indians. To make a flank movement upon the Hudson's Bay Company he sent Cuthbert Grant and a French trader to Slave Lake, on which they established Fort Resolution, while, pushing on still farther, they reached a point afterwards known as Fort Providence.

The third body to be represented in Athabasca Lake was the small North-West Company by their bourgeois, John Ross. Ross was a peaceable and fair man, but Pond so stirred up strife that the employés of the two Companies were in a perpetual quarrel. In one of these conflicts Ross was unfortunately killed. This added to the evil reputation of Pond, who in 1781 had been charged with the murder of a peaceful trader named Wadin, in the same Athabasca region.

When Roderick McKenzie heard at Ile à la Crosse of the murder, he hastened to the meeting of the traders at Grand Portage. This alarming event so affected the traders that the two Companies agreed to unite. The union was effected in 1787, and the business at headquarters in Montreal was now managed by the three houses of McTavish, Frobisher, and Gregory. Alexander Mackenzie was despatched to Athabasca to take the place of the unfortunate trader Ross, and so became acquainted with the region which was to be the scene of his triumphs in discovery.

The union of the North-West fur companies led to extension in some directions. The Assiniboine Valley, in one of the most fertile parts of the country, was more fully occupied. As in the case of the Hudson's Bay Company, the occupation of this valley took place by first coming to Lake Winnipeg and ascending the Swan River (always a fur trader's paradise), until, by a short portage, the Upper Assiniboine was reached.

The oldest fort in this valley belonging to the Nor'-Westers seems to have been built by a trader, Robert Grant, a year or two after 1780. It is declared by trader John McDonnell to have been two short days' march from the junction of the Qu'Appelle and Assiniboine.

Well up the Assiniboine, and not far from the source of the Swan River, stood Fort Alexandria, "surrounded by groves of birch, poplar, and aspen," and said to have been named after Sir Alexander Mackenzie. It was 256 feet in length by 196 feet in breadth; the "houses, stores, &c., being well built, plastered on the inside and outside, and washed over with a white earth, which answers nearly as well as lime for white-washing."

Connected with this region was the name of a famous trader, Cuthbert Grant, the father of the leader of the half-breeds and Nor'-Westers, of whom we shall speak afterwards. At the mouth of Shell River on the Assiniboine stood a small fort built by Peter Grant in 1794.

When the Nor'-Westers became acquainted with the route down the Assiniboine, they followed it to its mouth, and from that point, where it joined the Red River, descended to Lake Winnipeg and crossed to the Winnipeg River.

In order to do this they established in 1785, as a halting place, Pine Fort, about eighteen miles below the junction of the Souris and Assiniboine Rivers. At the mouth of the Souris River, and near the site of the Brandon House, already described as built by the Hudson's Bay Company, the North-West Company built in 1795 Assiniboine House. This fort became of great importance as the depôt for expeditions to the Mandans of the Missouri River.

The union of the Montreal Companies resulted, as had been expected, in a great expansion of the trade. In 1788 the gross amount of the trade did not exceed 40,000l., but by the energy of the partners it reached before the end of the century more than three times that amount – a remarkable showing.

The route now being fully established, the trade settled down into regular channels. The agents of the Company in Montreal, Messrs. McTavish & Co., found it necessary to order the goods needed from England eighteen months before they could leave Montreal for the West. Arriving in Canada in the summer, they were then made up in packages for the Indian trade. These weighed about ninety pounds each, and were ready to be borne inland in the following spring.

Then being sent to the West, they were taken to the far points in the ensuing winter, where they were exchanged for furs. The furs reached Montreal in the next autumn, when they were stored to harden, and were not to be sold or paid for before the following season. This was forty-two months after the goods were ordered in Canada. This trade was a very heavy one to conduct, inasmuch as allowing a merchant one year's credit, he had still two years to carry the burden after the value of the goods had been considered as cash.

Toward the end of the century a single year's produce was enormous. One such year was represented by 106,000 beavers, 32,000 marten, 11,800 mink, 17,000 musquash, and, counting all together, not less than 184,000 skins.

The agents necessary to carry on this enormous volume of trade were numerous. Sir Alexander Mackenzie informs us that there were employed in the concern, not including officers or partners, 50 clerks, 71 interpreters and clerks, 1,120 canoe-men, and 35 guides.

The magnitude of the operations of this Company may be seen from the foregoing statements. The capital required by the agents of the concern in Montreal, the number of men employed, the vast quantities of goods sent out in bales made up for the western trade, and the enormous store of furs received in exchange, all combined to make the business of the North-West Company an important factor in Canadian life.