He had taken the step of resigning deliberately and adhered to it, though he was disappointed in his command not being so remunerative as he expected. In May, 1741, Captain Middleton received his orders from the Lords of the Admiralty to proceed upon his journey and to follow the directions given him as to finding a North-West Passage. These had been prepared under Dobbs' supervision. Directions are given as to his course of procedure, should he reach California, and also as to what should be done in case of meeting Japanese ships. Middleton was placed in charge of Her Majesty's sloop the Furnace, and had as a companion and under his orders the Discovery Pink, William Moore, Master. In due time, Hudson Bay was reached, but in August the season seemed rather late to proceed northward from "Cary's Swan's Nest," and it was decided to winter in the mouth of Churchill River.

On July 1st, 1742, the expedition proceeded northward. Most complete observations were made of weather, land, presence of ice, natives of the coast, depth of bay, rivers entering bay, tides, and any possible outlets as far as 88 deg. or 89 deg. W. longitude. Observations were continued until August 18th, when the expedition sailed home to report what it had found.

Captain Middleton read an important paper on "The Extraordinary Degrees and Surprising Effects of Cold in Hudson Bay," before the Royal Society in London.

No sooner had Middleton reached the Orkneys on his return voyage than he forwarded to Dobbs, who was in Ireland, a letter and an abstract of his journal. Lest this should have gone astray, he sent another copy on his arrival in the Thames. The report was, on the whole, discouraging as to the existence of a north-west passage.

Dobbs, however, was unwilling to give up his dream, and soon began to discredit Middleton. He dealt privately with the other officers of the ships, Middleton's subordinates, and with surprising skill turned the case against Captain Middleton.

The case of Dobbs against Captain Middleton has been well stated by John Barrow. Middleton was charged with neglect in having failed to explore the line of coast which afforded a probability of a passage to the north-west. The principal points at issue appear to have been in respect to the following discoveries of Middleton, viz. the Wager River, Repulse Bay, and the Frozen Strait. As regards the first, Mr. Dobbs asserted that the tide came through the so-called river from the westward; and this question was settled in the following year by Captain Moore, who entirely confirmed Captain Middleton's report.

Repulse Bay, which well deserves the name it bears, was no less accurately laid down by Captain Middleton, and of the Frozen Strait, Sir Edward Parry remarks, "Above all, the accuracy of Captain Middleton is manifest upon the point most strenuously urged against him, for our subsequent experience has not left the smallest doubt of Repulse Bay and the northern part of Welcome Bay being filled by a rapid tide, flowing into it from the eastward through the Frozen Strait."

Dobbs, by a high order of logic chopping, succeeded in turning the case, for the time being, against Captain Middleton. Seldom has greater skill been used to win a cause. He quotes with considerable effect a letter by Sir Bibye Lake, addressed to the Governor of the Prince of Wales Fort, Churchill River, reading: "Notwithstanding an order to you, if Captain Middleton (who is sent ahead in the Government's service to discover a passage north-west) should by inevitable necessity be brought into real distress and danger of his life and loss of his ship, in such case you are then to give him the best assistance and relief you can." Dobbs' whole effort seems to be to show that Middleton was hiding the truth, and this, under the influence of his old masters, the Hudson's Bay Company. A copy of Dobbs' Criticisms, laid before the Lords of the Admiralty, was furnished Captain Middleton, and his answer is found in "Vindication of the Conduct," published in 1743.

"An Account of the Countries adjoining to Hudson Bay" by Arthur Dobbs, Esq., is a book published in the year after, and is really a book of note. A quarto, consisting of upwards of 200 pages, it showed a marvellous knowledge of colonization in America, of the interior of the continent at that time, and incidentally deals with Captain Middleton's journal. Its account of the journey of "Joseph La France, a French Canadese Indian," from Lake Superior by way of Lake Winnipeg to Hudson Bay, is the first detailed account on record of that voyage being made. Evidently Arthur Dobbs had caught the ear of the English people, and the Company was compelled to put itself in a thorough attitude of defence.

Dobbs with amazing energy worked up his cause, and what a writer of the time calls, "The long and warm dispute between Arthur Dobbs, Esq. and Captain Middleton," gained much public notice. The glamour of the subject of a north-west passage, going back to the exploits of Frobisher, Baffin, and Button, touched the national fancy, and no doubt the charge of wilful concealment of the truth made against the Hudson's Bay Company, repeated so strenuously by Dobbs, gained him adherents. Parliament took action in the matter and voted 20,000l. as a reward for the discovery of a north-west passage. This caused another wave of enthusiasm, and immediately a subscription was opened for the purpose of raising 10,000l. to equip an expedition for this popular enterprise. It was proposed to divide the whole into 100 shares of 100l. each. A vigorous canvass was made to secure the amount, and the subscription list bears the names of several nobles, an archbishop, a bishop, and many esquires. A perusal of the names suggests that a number of them are Irish, and no doubt were obtained by Mr. Dobbs, who was often at Lisburn in Ireland. The amount raised was 7,200l. The expedition, we hear afterwards, cost upwards of 10,000l., but the money needed was, we are told, willingly contributed by those who undertook the enterprise. Mr. Dobbs, as was suitable, was a leading spirit on the Committee of Management.