Watkin expresses his great apprehension lest the news in a distorted form should reach the distant regions of the fur country, where the Company had one hundred and forty-four posts, covering the continent from Labrador to Sitka, Vancouver Island and San Francisco. He feared also that there would be a new company formed to occupy the ground with the old.
On reaching Canada, Mr. Watkin was agreeably surprised at the arrival of Governor Dallas from Red River in Montreal. After consultation it was decided on that the Governor should send a conciliatory circular to the commissioned officers of the Company, explaining the objects of the new Company, and stating that all the interests of the wintering partners would be conserved. It is evident that the attitude of the officers had alarmed even such stout-hearted men as Watkin and Dallas. There lies before the writer also a personal letter, dated London, July 23rd, 1863, signed by Edmund Head, Governor, to a chief trader of the Company, stating that it was the intention of the Committee "to carry on the fur trade as it has been hitherto carried on, under the provisions of the deed poll." None of the collateral objects of the Company "should interfere with the fur trade." He begs the officers to "have with him free and unreserved communication through the usual channel." Evidently the echo of the angry voices in Athabasca had been heard in London.
The old deed poll, which they had intended to suspend, as shown by Watkin, was thus preserved. This document secured them as follows: According to both deed polls of 1821 and 1834, forty per cent. of the net profits of the trade, divided into eighty-five shares of equal amount, were distributed annually among the wintering partners of the Company. A chief trader received an eighty-fifth share of the profits, and a chief factor two eighty-fifth shares. Both had certain rights after retiring.
The proposed abolition of these terms of the deed poll and the substitution therefor of certain salaries with the avowed purpose of reducing the expenses, of course meant loss to every wintering partner. The interests thus involved justified the most strenuous opposition on the part of the partners, and, unless the proposal were modified, would almost certainly have led to a disruption of the Company.
In harmony with Governor Head's circular letter no action in the direction contemplated was taken until 1871, when, on the receipt of the three hundred thousand pounds voted by Canada to the Company, the sum of one hundred and seven thousand and fifty-five pounds was applied to buying out the vested rights of the wintering partners, and the agitation was quieted.
The effect of the arrangement made for the payment of officers of the Company since 1871, as compared with their previous remuneration, has been a subject of discussion.
There lies before the writer an elaborate calculation by an old Hudson's Bay Company officer to the effect that under the old deed poll a chief factor would receive two eighty-fifth shares, his total average being seven hundred and twenty pounds per annum; and under the new (taking the average of twenty-five years) two and one half-hundredths shares, amounting to five hundred and thirty-two pounds annually, or a loss nearly of one hundred and eighty-eight pounds; similarly that a chief trader would receive three hundred and nineteen pounds, as against three hundred and sixty formerly, or a loss per annum of forty-one pounds.
Besides this, the number of higher commissioned officers was reduced when the old deed poll was cancelled, so that the stockholders received the advantage from there being fewer officials, also the chances of promotion to higher offices were diminished.
During the progress of these internal dissensions of the Hudson's Bay Company public opinion had been gradually maturing in Canada in favour of acquiring at least a portion of Rupert's Land. At the time of the Special Committee of 1857, it will be remembered the Hind-Gladman expedition had gone to spy out the land. A company, called the North-West Transportation Company, was about the same time organized in Toronto to carry goods and open communication from Fort William by way of the old fur traders' route to Fort Garry.