But the Company was now threatened with a more determined and judicious warfare by the better class of Canadian traders. The enterprise had been checked, first by the animosity of the Indians, and at the same time by the ravages of the smallpox, but during the winter of 1783-4, the Montreal merchants resolved, for the better prosecution of their scheme, to effect a junction of interests, by forming an association of sixteen equal shares, without, however, depositing any capital. The scheme was to be carried out in this way: Each party was to furnish a proportion of such articles as were necessary in the trade, while the actual traders, or "wintering partners," of these merchants were to receive each a corresponding share of the profits. To this association was given, on the suggestion of Joseph Frobisher, the name of the North-West Company. The chief management of the business was entrusted to the two Frobishers and Simon McTavish, another Scotch merchant in Montreal.
In May, 1784, accordingly, Benjamin Frobisher and McTavish went to the Grand Portage with their credentials from the other partners in the new undertaking. Here they met the bulk of the traders and voyageurs, who were delighted to hear of the new scheme. These entered heartily into the spirit of the undertaking, and that spring embarked for the west with the merchandise and provisions brought them, with a lighter heart than they had known for years, and with a determination to profit by the disasters of the past. Not all of the chief traders, it must be said, cast in their lots with the new company. Two, named Pond and Pangman, opposed it; and finding a couple of merchants who were willing to furnish sufficient capital, resolved to strike out for themselves as rivals to the North-West company. This action occasioned, as might be expected, great bitterness and disorder. Nevertheless, it was the means of bringing to light a young Scotchman from the Isles, whose name will be forever linked with the North-West. His name was Alexander Mackenzie.
Alexander Mackenzie.
This young man had been for five years in the counting-house of Gregory, one of the merchants who had allied themselves with the two malcontents. It was now decided that Mackenzie should set out with Pond and Pangman in their separate trading venture into the distant Indian country. A more perilous business than this can scarcely be imagined. Besides the natural difficulties, the party had to encounter all the fiercest enmity and opposition of which the adherents of the new association were capable. It is enough to say that after a fearful struggle they forced the latter to allow them a participation in the trade. But the feat which resulted in the coalition of the two interests in 1787 cost them dear. One of the partners was killed, another lamed for life, and many of their voyageurs injured. Yet the establishment thus joined, and shorn of all rivals save the Great Company, was placed on a solid basis, and the fur-trade of Canada began to assume greater proportions than it had yet done under the English régime. As this North-West concern was finally itself to merge into the Company of which these chapters are the history, it will not be unprofitable to glance at its constitution and methods, particularly as the economic fabric was to be likewise transferred and adapted to its Hudson's Bay rival.
Sir Alexander Mackenzie.
The North-West company.
It was then, and continued to be, merely an association of merchants agreeing among themselves to carry on the fur-trade by itself, although many of these merchants plied other commerce. "It may be said," observes Mackenzie, "to have been supported entirely on credit; for whether the capital belonged to the proprietor, or was borrowed, it equally bore interest, for which the association was annually accountable." The company comprised twenty shares unequally divided and amongst the parties concerned. "Of these a certain proportion was held by the people who managed the business in Canada and were styled agents for the company. Their duty was to import the necessary goods from England, store them at their own expense at Montreal, get them made up into articles suited to the trade, pack and forward them and supply the cash that might be wanting for the outfits." For all this they received, besides the profit on their shares, an annual commission on the business done. A settlement took place each year, two of the partners going to Grand Portage to supervise affairs of that growing centre, now outrivalling Detroit, Michilimackinac and Sault Ste. Marie. The furs were seen safely to the company's warehouse in Montreal, where they were stored pending their shipment to England. This class were denominated agents for the concern.
Then there was the other proprietary class—the actual traders, who conducted the expeditions amongst the Indians and furnished no capital. If they did amass capital by the trade they could invest it in the company through the agents, but could never employ it privately. There were several who from long service and influence who had acquired double shares and these were permitted to retire from activity, leaving one of such shares to whichever young man in the service they chose to nominate, provided always he was approved by the company. Such successions, we are told, were considered as due to either seniority or exceptional merit. The retiring shareholder was relieved from any responsibility concerning the share he transferred and accounted for it according to the annual value or rate of the property. Thus the trader who disposed of his extra share had no pecuniary advantage from the sale, but only drew a continuous profit from the share which as a sleeping partner he retained.