The Remarkable History of the Hudson's Bay Company

To the forts from the vast interior of North America the various tribes of Indians, especially the Crees, Chipewyans, and Eskimos, brought their furs for barter. No doubt the prices were very much in favour of the traders at first, but during the first generation of traders the competition of French traders from the south for their share of the Indian trade tended to correct injustice and give the Indians better prices for their furs.

The following is the standard fixed at this time: —

The trade conducted at the posts or factories along the shore was carried on by the local traders so soon as the rivers from the interior – the Nelson and the Churchill – were open, so that by the time the ship from London arrived, say in the end of July or beginning of August, the Indians were beginning to reach the coast. The month of August was a busy month, and by the close of it, or early in September, the ship was loaded and sent back on her journey.

By the end of October the ships arrived from Hudson Bay, and the anxiety of the Company to learn how the season's trade had succeeded was naturally very great. As soon as the vessels had arrived in the Downs or at Portsmouth, word was sent post haste to London, and the results were laid before a Committee of the Company. Much reference is made in the minutes to the difficulty of preventing the men employed in the ships from entering into illicit trade in furs. Strict orders were given to inspect the lockers for furs to prevent private trade. In due time the furs were unladen from the ships and put into the custody of the Company's secretary in the London warehouse.

The matter of selling the furs was one of very great importance. At times the Company found prices low, and deferred their sales until the outlook was more favourable. The method followed was to have an auction, and every precaution was taken to have the sales fair and aboveboard. Evidences are not wanting that at times it was difficult for the Court of Adventurers to secure this very desirable result.

The matter was not, however, one of dry routine, for the London merchants seem to have encouraged business with generous hospitality. On November 9th, 1681, the sale took place, and the following entry is found in the minutes: "A Committee was appointed to provide three dozen bottles of sack and three dozen bottles of claret, to be given to buyers at ye sale. Dinner was also bespoken at 'Ye Stillyard,' of a good dish of fish, a loyne of veal, two pullets, and four ducks."

As the years went on, the same variations in furs that we see in our day took place. New markets were then looked for and arrangements made for sending agents to Holland and finding the connections in Russia, that sales might be effected. In order to carry out the trade it was necessary to take large quantities of hemp from Holland in return for the furs sent. The employment of this article for cordage in the Navy led to the influence of important members of the Company being used with the Earl of Marlborough to secure a sale for this commodity. Pending the sales it was necessary for large sums of money to be advanced to carry on the business of the Company. This was generally accomplished by the liberality of members of the Company itself supplying the needed amounts.

The Company was, however, from time to time gratified by the declaration of handsome dividends. So far as recorded, the first dividend was declared in 1684, and judged by modern standards it was one for which a company might well wait for a number of years. It was for 50 per cent. upon stock. Accordingly, the Earl of Craven received 150l., Sir James Hayes 150l., and so on in proportion. In 1688 another dividend of a like amount of 50 per cent. on the stock resulted, and among others, Hon. Robert Boyle, Earl Churchill, and Sir Christopher Wren had their hearts gladdened. In 1689 profits to the extent of 25 per cent. on the stock were received, and one of the successful captains was, in the exuberance of feeling of the stockholders, presented with a silver flagon in recognition of his services. In 1690, however, took place by far the most remarkable event of a financial kind in the early history of the Company. The returns of that year from the Bay were so large that the Company decided to treble its stock. The reasons given for this were: —

(1) The Company has in its warehouse about the value of its original stock (10,500l.). (2) The factories at Fort Nelson and New Severn are increasing in trade, and this year the returns are expected to be 20,000l. in beaver. (3) The factories are of much value. (4) Damages are expected from the French for a claim of 100,000l.

The Company then proceeded to declare a dividend of 25 per cent., which was equivalent to 75 per cent. on their original stock.

It was a pleasing incident to the sovereign of the realm that in all these profits he was not forgotten. In the original Charter the only recompense coming to the Crown, for the royal gift, was to be the payment, when the territory was entered upon, of "two elks and two black beavers." This may have been a device for keeping up the royal claim, but at any rate 300l. in the original stock-book stood to the credit of the sovereign. It had been the custom to send a deputation to present in person the dividends to His Majesty, and the pounds sterling were always changed to guineas.

On this occasion of the great dividend, King William III. had but lately returned from his victories in Ireland. The deputation, headed by Sir Edward Dering, was introduced to the King by the Earl of Portland, and the following address, hitherto, so far as known to the writer, unpublished, was presented along with the noble gift: —

"Your Majestie's most Loyal and Dutiful subjects beg leave to congratulate your Majestie's Happy Return here with Honor and Safety. And we do daily pray to Heaven (that Hath God wonderfully preserved your Royall Person) that in all your undertakings Your Majestie may be as victorious as Cæsar, as beloved as Titus, and (after all) have the long and glorious Reigne and Peacefull end of Augustus.

"On this happy occasion we desire also most humbly to present to your Majestie a dividend of Two Hundred and twenty-five guineas upon three hundred pounds stock in the Hudson's Bay Company, now Rightfully delivered to your Majestie. And although we have been the greatest sufferers of any Company from those common enemies of all mankind the French, yet when your Majestie's just Arms shall have given Repose to all Christendom, we also shall enjoy our share of these great Benefits and do not doubt but to appeare often with this golden fruit in our hands, under the happy influence of Your Majestie's most gracious protection over us and all our Concerns."

It is true that towards the end of the seventeenth century, as we shall afterwards see, the trade of the Company was seriously injured by the attacks of the French on the Bay, but a quarter of a century in which the possibility of obtaining such profits had been shown was sufficient to establish the Company in the public favour and to attract to it much capital. Its careful management from the first led to its gaining a reputation for business ability which it has never lost during two and a quarter centuries of its history.

CHAPTER IV

THREE GREAT GOVERNORS

Men of high station – Prince Rupert primus – Prince James, "nemine contradicente" – The hero of the hour – Churchill River named – Plate of solid gold – Off to the Tower.

The success of the Hudson's Bay Company, and the influence exerted by it during so long a period, has often been attributed to the union of persons of station and high political influence with the practical and far-seeing business men of London, who made up the Company. A perusal of the minutes of the first thirty years of the Company's history impresses on the mind of the reader that this is true, and that good feeling and patriotism were joined with business tact and enterprise in all the ventures. From the prosperous days of Queen Elizabeth and her sea-going captains and explorers, certainly from the time of Charles II., it was no uncommon thing to see the titled and commercial classes co-operating, in striking contrast to the governing classes of France, in making commerce and trade a prominent feature of the national life.

The first Governor of the Hudson's Bay Company, Rupert, Prince of Bavaria, grandson by the mother's side of James I. of England, is a sufficiently well-known character in general history to require no extended notice. His exploits on the Royalist side in the Civil War, his fierce charges and his swiftness in executing difficult military movements, led to his name being taken as the very embodiment of energy and prowess. In this sense the expression, "the fiery Rupert of debate" was applied to a prominent parliamentarian of the past generation.

After the restoration of Charles II., Prince Rupert took up his abode in England, finding it more like home to him than any Continental country. Enjoying the plaudits of the Cavaliers, for whom he had so strenuously fought, he was appointed Constable of Windsor, a no very onerous position. From the minutes of the Hudson's Bay Company we find that he had lodgings at Whitehall, and spent much of his time in business and among scientific circles – indeed, the famous toys called "glass tears," or "Rupert's drops," were brought over by him to England from the Continent to interest his scientific friends.

We have seen already the steps taken by the returned Commissioners from the American Colonies to introduce Radisson and Groseilliers to Prince Rupert, and through him to the royal notice.

The success of the expedition of Gillam and the building of Charles Fort on Hudson Bay led to the Prince consenting to head the new Company. He had just passed the half century of his age when he was appointed Governor of the vast terra incognita lying to the west of the Bay to which, in his honour, was given the name Rupert's Land.

The Company lost no time in undertaking a new expedition. Prince Rupert's intimate friend, the Earl of Craven, was one of the incorporators, and it was with this nobleman that Prince Rupert's widowed mother, the Princess Elizabeth, had found a home in the days of adversity.

The close connection of the Hudson's Bay Company with the Court gave it, we see very plainly, certain important advantages. Not only do the generous terms of the Charter indicate this, but the detailing of certain ships of the Royal Navy to protect the merchantmen going out to Hudson Bay shows the strong bond of sympathy. Certainly nothing less than the thorough interest of the Court could have led to the firm stand taken by the English Government in the controversies with France as to the possession of Hudson Bay.

Several excellent paintings of the Prince are in existence, one by Vandyke in Warwick Castle, showing his handsome form, and another in Knebworth, Hertford. The Prince was unfortunately not free from the immorality that was so flagrant a feature of the Court of Charles II. At that time this was but little taken into account, and the fame of his military exploits, together with the fixing of his name upon so wide an extent of the earth's surface, have served to give posterity an interest in him.

For twelve successive years Prince Rupert was chosen Governor at the General Court of Adventurers, and used his great influence for the Company. He died on November 29th, 1682, at the comparatively early age of sixty-three.

The death of the first Governor was a somewhat severe trial for the infant Company. The Prince's name had been one to conjure by, and though he had been ably supported by the Deputy-Governor, Sir James Hayes, yet there was some fear of loss of prestige to the Adventurers on his unexpected death.

The members of the Company were anxious to keep up, if possible, the royal connection, but they were by no means clear as to the choice of the only available personage who came before their view. James, Duke of York, was a man with a liking for business, but he was not a popular favourite. The famous jeu d'esprit of Charles II. will be remembered. When James informed Charles II. that there was a conspiracy on foot to drive him from the throne, "No, James," said Charles, "they will never kill me to make you king."

The minutes of the Company show that much deliberation took place as to the choice of a successor to Prince Rupert, but at length, in January, 1683, at a General Court, the choice was made, and the record reads: – "His Royal Highness the Duke of York was chosen Governor of the Company, 'Nemine contradicente.' "The new Governor soon had reasons to congratulate himself on his election, for on April 21st, 1684, Sir James Hayes and Sir Edward Dering reported to the Adventurers their having paid 150 guineas to His Royal Highness as a dividend on the stock held by him. Prince James was chosen Governor for three successive years, until the year when, on the death of Charles, he became King. While James was not much in favour as a man, yet he possessed decided administrative ability, and whether this was the cause or not, certainly the period of his governorship was a successful time in the history of the Company.

Failing a prince or duke, the lot could not have fallen upon a more capable man than was chosen as the Duke of York's successor for the governorship. On April 2nd, 1685, at a General Court of the Adventurers, the choice fell upon one of the most remarkable men of his time, the Right Hon. John Lord Churchill, afterwards Duke of Marlborough. Lord Churchill had not yet gained any of his great victories. He was, however, at this time a favourite of the Duke of York, and no doubt, on the recommendation of James, had been brought before the Court of Adventurers. He was one of the most adroit men of his time, he was on the highway to the most distinguished honours, and the Adventurers gladly elected him third governor.

On April 2nd, 1685, the new governor threw himself heartily into the work of the Company. No doubt one so closely connected with the public service could be of more practical value than even a royal duke. The great dividend of which we have already spoken followed the years of his appointment.

The success attained but stimulated the Company to increase their trade and widen the field of their operations. The river running into the west side of the Bay, far to the north, was named in honour of the new governor, Churchill River, and in 1686 expansion of trade was sought by the decision to settle at the mouth of this river and use it as a new trading centre for the north and west. Without any desire to annoy the French, who claimed the south end of the Bay, it was determined to send a ship to the southern part of Hudson Bay, and a few months later the Yonge frigate was dispatched. The fear of attacks from the French, who were known to be in a very restless condition, led to the request being made to the Government to station a military force at each fort in Hudson Bay. It was also the desire of the Company that steps should be taken to protect them in their Charter rights and to prevent illegal expeditions from going to trade in the Bay. All this shows the energy and hopefulness of the Company under the leadership of Lord Churchill.

The part taken by Lord Churchill in the opposition to James, and his active agency in inducing William of Orange to come to England, are well known. He was a worshipper of the rising sun. On the arrival of William III., Lord Churchill, who was soon raised to the peerage as Earl of Marlborough, was as popular, for the time, with the new king as he had been with his predecessor. His zeal is seen in his sending out in June, 1689, as governor, the instructions that William and Mary should be proclaimed in the posts upon the shores of Hudson Bay. He was able shortly after to report to his Company that 100 marines had been detailed to protect the Company's ships on their way to Hudson Bay. The enthusiasm of the Company at this mark of consideration obtained through the influence of Lord Churchill, was very great, and we learn from the minutes that profuse thanks were given to the governor, and a piece of plate of solid gold, of the value of 100 guineas, was presented to him for his distinguished services. Legislation was also introduced at this time into Parliament for the purpose of giving further privileges to the Adventurers.

But the rising tide of fortune was suddenly checked. Disaster overtook the Governor. William had found some reason for distrusting this versatile man of affairs, and he suspected him of being in correspondence with the dethroned James. No doubt the suspicion was well founded, but the King had thought it better, on account of Marlborough's great talents, to overlook his unfaithfulness. Suddenly, in May, 1692, England was startled by hearing that the Earl of Marlborough had been thrown into the Tower on an accusation of high treason. For seven years this determined soldier had led the Company to success, but his imprisonment rendered a change in the governorship a necessity. Marlborough was only imprisoned for a short time, but he was not re-elected to the position he had so well filled. At the General Court of Adventurers in November of the year of Marlborough's fall, Sir Stephen Evance was chosen Governor. This gentleman was re-elected a number of times, and was Governor of the Company at the close of the century.

Two decades, and more, of the formative life of the Company were thus lived under the ægis of the Court, the personal management of two courtly personages, and under the guidance of the leading general of his time. As we shall see afterwards, during a part of this period the affairs of the Company were carried on in the face of the constant opposition of the French. Undoubtedly heavy losses resulted from the French rivalry, but the pluck and wisdom of the Company were equally manifested in the confidence with which they risked their means, and the strong steps taken to retain their hold on Hudson Bay. This was the golden age of the Hudson's Bay Company. When money was needed it was often cheerfully advanced by some of the partners; it was an honour to have stock in a Company which was within the shadow of the throne; its distinguished Governors were re-elected so long as they were eligible to serve; again and again the Committee, provided with a rich purse of golden guineas, waited on His Majesty the King to give return for the favour of the Royal Charter; and never afterward can the historian point in the annals of the Company to so distinguished a period.

CHAPTER V

TWO ADROIT ADVENTURERS

Peter Radisson and "Mr. Gooseberry" again – Radisson v. Gillam – Back to France – A wife's influence – Paltry vessels – Radisson's diplomacy – Deserts to England – Shameful duplicity – "A hogshead of claret" – Adventurers appreciative – Twenty-five years of Radisson's life hitherto unknown – "In a low and mean condition" – The Company in Chancery – Lucky Radisson – A Company pensioner.

A mysterious interest gathers around two of the most industrious and, it must be added, most diplomatic and adroit of the agents of the Company, the two Frenchmen, Pierre Esprit Radisson and Medard Chouart, afterwards the Sieur de Groseilliers. Acquainted with the far northern fur trade, their assistance was invaluable. We have seen in a former chapter that finding little encouragement either in New France or their mother country, they had transferred their services to England, and were largely instrumental in founding the Hudson's Bay Company.

In the first voyage of the adventurers to Hudson's Bay, it came about that while Groseilliers was lucky in being on the Nonsuch ketch, which made its way into the Bay, on the other hand, Radisson, to his great chagrin, was on board the companion ship, the Eaglet, which, after attempting an entrance and failing, returned to England.

It has been stated that during the time of his enforced idleness in London, while the party was building Charles Fort on Prince Rupert's River, Radisson was busy interesting the leading men of the city in the importance of the adventure. Immediately on the return of the company of the Nonsuch, steps were taken for the organization of the Hudson's Bay Company. This, as we have seen, took place in May, 1670, and in the same year Radisson and Groseilliers went out with Governor Bailey, and assisted in establishing trade on the shores of the Bay.

On their return, in the autumn of 1671, to London, the two adventurers spent the winter there, and, as the minutes of the Company show, received certain money payments for their maintenance. In October, 1673, the sloop Prince Rupert had arrived at Portsmouth from Hudson Bay, and there are evidences of friction between Radisson and Captain Gillam. Radisson is called on to be present at a meeting of the General Court of the Company held in October, and afterwards Gillam is authorized to advance the amounts necessary for his living expenses.

In the Company minutes of June 25th, 1674, is found the following entry: – "That there be allowed to Mr. Radisson 100 pounds per annum from the time of his last arrival in London, in consideration of services done by him, out of which to be deducted what hath been already paid him since that time, and if it shall please God to bless this Company with good success hereafter that they shall come to be in a prosperous condition they will then re-assume the consideration thereof."

During the next month a further sum was paid Radisson.

The restless Radisson could not, however, be satisfied. No doubt he felt his services to be of great value, and he now illustrated what was really the weakness of his whole life, a want of honest reliability. The Company had done as well for him as its infant resources would allow, but along with Groseilliers he deserted from London, and sought to return to the service of France under the distinguished Prime Minister Colbert.

The shrewd Colbert knew well Radisson's instability. This feature of his character had been further emphasized by another event in Radisson's life. He had married a daughter of Sir John Kirke, one of the Hudson's Bay Company promoters, and a member of the well-known family which had distinguished itself in the capture of Canada, nearly fifty years before. This English and domestic connection made Colbert suspicious of Radisson. However, he agreed to pay Radisson and Groseilliers the sum of their debts, amounting to 400l., and to give them lucrative employment. The condition of his further employment was that Radisson should bring his wife to France, but he was unable to get either his wife or her father to consent to this. The Kirke family, it must be remembered, were still owners of a claim amounting to 341,000l. against France, which had been left unsettled during the time of Champlain, when England restored Canada to France.

For seven years Radisson vacillated between the two countries. Under the French he went for one season on a voyage to the West Indies, and was even promised promotion in the French marine. At one time he applied again to the Hudson's Bay Company for employment, but was refused. The fixed determination of his wife not to leave England on the one hand, and the settled suspicion of the French Government on the other, continually thwarted him. At length, in 1681, Radisson and Groseilliers were sent by the French to Canada, to undertake a trading expedition to Hudson Bay. The lack of money, and also of full confidence, led to their venture being poorly provided for. In July, 1682, rendezvous was made at Ile Percée, in the lower St. Lawrence, by Radisson in a wretched old vessel of ten tons, and by Groseilliers in a rather better craft of fifteen tons burthen.

No better could be done, however, and so, after many mishaps, including serious mutinies, dangers of ice and flood, and hairbreadth escapes, the two vessels reached the mouth of the Hayes River on Hudson Bay. They determined to trade at this point. Groseilliers undertook to build a small fort on this river, and Radisson went inland on a canoe expedition to meet the natives. In this Radisson was fairly successful and gathered a good quantity of furs.