The Remarkable History of the Hudson's Bay Company. Bryce George
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.
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