This company was founded in the year 1670 by a body of adventurers and merchants under the patronage of Prince Rupert, second cousin of Charles II. The charter obtained from the Crown was wonderfully liberal, comprising not only the grant of the exclusive trade, but also of full territorial possession to all perpetuity of the vast lands within the watershed of Hudson’s Bay. The Company at once established some forts along the shores of the great inland sea from which it derived its name, and opened a very lucrative trade with the Indians, so that it never ceased paying rich dividends to the fortunate shareholders until towards the close of the last century, when, as I have already mentioned, its prosperity began to be seriously affected by the energetic competition of the Canadian fur-traders.

In spite of the flourishing state of its affairs, or rather because the monopoly which it enjoyed allowed it to prosper without exertion, the Company, as long as Canada remained in French hands, had conducted its affairs in a very indolent manner, waiting for the Indians to bring the produce of their chase to the Hudson’s Bay settlements, instead of following them into the interior and stimulating them by offering greater facilities for exchange.

For eighty years after its foundation the Company possessed no more than four small forts on the shores of Hudson’s Bay; and only when the encroachments of the Canadians at length roused it from its torpor, did it resolve likewise to advance into the interior, and to establish a fort on the eastern shore of Sturgeon Lake, in the year 1774. Up to this time, with the exception of the voyage of discovery which Hearne (1770–71) made under its auspices to the mouth of the Coppermine River, it had done but little for the promotion of geographical discovery in its vast territory.

Meanwhile the Canadian fur-traders had become so hateful to the Indians that these savages formed a conspiracy for their total extirpation.

Fortunately for the white men, the small-pox broke out about this time among the Redskins, and swept them away as the fire consumes the parched grass of the prairies. Their unburied corpses were torn by the wolves and wild dogs, and the survivors were too weak and dispirited to be able to undertake any thing against the foreign intruders. The Canadian fur-traders now also saw the necessity of combining their efforts for their mutual benefit, instead of ruining each other by an insane competition; and consequently formed, in 1783, a society which, under the name of the North-west Company of Canada, at first consisted of sixteen, later of twenty partners or shareholders, some of whom lived in Canada, while the others were scattered among the various stations in the interior. The whole Canadian fur-trade was now greatly developed; for while previously each of the associates had blindly striven to do as much harm as possible to his present partners, and thus indirectly damaged his own interests, they now all vigorously united to beat the rival Hudson’s Bay Company out of the field. The agents of this North-west Company, in defiance of their charter, were indefatigable in exploring the lakes and woods, the plains and the mountains, for the purpose of establishing new trading-stations at all convenient points.

The most celebrated of these pioneers of commerce, Alexander Mackenzie, reached, in the year 1789, the mouth of the great river which bears his name, and saw the white dolphins gambol about in the Arctic Sea. In a second voyage he crossed the Rocky Mountains, and followed the course of the Fraser River until it discharges its waters into the Georgian Gulf opposite to Vancouver’s Island. Here he wrote with perishable vermilion the following inscription on a rock-wall fronting the gulf:—

A. Mackenzie
arrived from Canada by land,
22 July, 1792.

The words were soon effaced by wind and weather, but the fame of the explorer will last as long as the English language is spoken in America.

The energetic North-west Company thus ruled over the whole continent from the Canadian Lakes to the Rocky Mountains, and in 1806 it even crossed that barrier and established its forts on the northern tributaries of the Columbia River. To the north it likewise extended its operations, encroaching more and more upon the privileges of the Hudson’s Bay Company, which, roused to energy, now also pushed on its posts farther and farther into the interior, and established in 1812 a colony on the Red River to the south of Winipeg Lake, thus driving, as it were, a sharp thorn into the side of its rival. But a power like the North-west Company, which had no less than 50 agents, 70 interpreters, and 1120 voyageurs in its pay, and whose chief managers used to appear at their annual meetings at Fort William, on the banks of Lake Superior, with all the pomp and pride of feudal barons, was not inclined to tolerate this encroachment; and thus, after many quarrels, a regular war broke out between the two parties, which, after two years’ duration, led to the expulsion of the Red River colonists and the murder of their governor, Semple. This event took place in the year 1816, and is but one episode of the bloody feuds which continued to reign between the two rival companies until 1821. At first sight it may seem strange that such acts of violence should take place between British subjects and on British soil, but then we must consider that at that time European law had little power in the American wilderness.

The dissensions of the fur-traders had most deplorable consequences for the Redskins; for both companies, to swell the number of their adherents, lavishly distributed spirituous liquors—a temptation which no Indian can resist.