[CHAPTER XVII.]

The X Y COMPANY.

"Le Marquis" Simon McTavish unpopular—Alexander Mackenzie his rival—Enormous activity of the "Potties"—Why called X Y—Five rival posts at Souris—Sir Alexander, the silent partner—Old Lion of Montreal roused—"Posts of the King"—Schooner sent to Hudson Bay—Nor'-Westers erect two posts on Hudson Bay—Supreme folly—Old and new Nor'-Westers unite—List of partners.

For some years the Montreal fur companies, in their combinations and readjustments, had all the variety of the kaleidoscope. Agreements were made for a term of years, and when these had expired new leagues were formed, and in every case dissatisfied members went into opposition and kept up the heat and competition without which it is probable the fur trade would have lost, to those engaged in it, many of its charms.

In 1795 several partners had retired from the North-West Company and thrown in their lot with the famous firm that we have seen was always inclined to follow its own course—Messrs. Forsyth, Richardson and Co. For a number of years this independent Montreal firm had maintained a trade in the districts about Lake Superior. The cause of this disruption in the Company was the unpopularity, among the wintering partners especially, of the strong-willed and domineering chief in Montreal—Simon McTavish. One set of bourgeois spoke of him derisively as "Le Premier," while others with mock deference called him "Le Marquis." Sir Alexander Mackenzie had been himself a partner, had resided in the Far West, and he was regarded by all the traders in the "upper country" as their friend and advocate. Although the discontent was very great when the secession took place, yet the mere bonds of self-interest kept many within the old Company. Alexander Mackenzie most unwillingly consented to remain in the old Company, but only for three years, reserving to himself the right to retire at the end of that time.

Notwithstanding their disappointment, and possibly buoyed up with the hope of having the assistance of their former friend at a later period, the members of the X Y Company girt themselves about for the new enterprise in the next year, so that the usual date of this Company is from the year 1795. Whether it was the circumstance of its origination in dislike of "Le Premier," or whether the partners felt the need of greater activity on account of their being weaker, it must be confessed that a new era now came to the fur trade, and the opposition was carried on with a warmth much greater than had ever been known among the old companies. A casual observer can hardly help feeling that while not a member of the new Company at this date, Alexander Mackenzie was probably its active promoter behind the scenes.

The new opposition developed without delay. Striking at all the salient points, the new Company in 1797 erected its trading house at Grand Portage, somewhat more than half-a-mile from the North-West trading house and on the other side of the small stream that there falls into the Bay. A few years after, when the North-West Company moved to Kaministiquia, the X Y also erected a building within a mile of the new fort. The new Company was at some time in its history known as the New North-West Company, but was more commonly called the X Y Company. The origin of this name is accounted for as follows. On the bales which were made up for transport, it was the custom to mark the North-West Company's initials N.W. When the new Company, which was an offshoot of the old, wished to mark their bales, they simply employed the next letters of the alphabet, X Y. They are accordingly not contractions, and should not be written as such. It was the habit of members of the older Company to express their contempt for the secessionists by calling them the "Little Company" or "the Little Society." In the Athabasca country the rebellious traders were called by their opponents "Potties," probably a corruption of "Les Petits," meaning members of "La Petite Compagnie." When these names were used by the French Canadian voyageurs, the X Y Company was referred to.

However disrespectfully they may have been addressed, the traders of the new Company caused great anxiety both to the North-West Company and to the Hudson's Bay Company, though they regarded themselves chiefly as rivals of the former. Pushing out into the country nearest their base of supplies on Lake Superior, they took hold of the Red River and Assiniboine region, as well as of the Red Lake country immediately south of and connected with it. The point where the Souris empties into the Assiniboine was occupied in the same year (1798) by the X Y Company. It had been a favourite resort for all classes of fur-traders, there having been no less than five opposing trading houses at this point four years before. No doubt the presence of the free-trading element such as McCracken and Jussaume, whom we find in the Souris region thus early, made it easier for smaller concerns to carry on a kind of business in which the great North-West Company would not care to be engaged.

Meanwhile dissension prevailed in the North-West Company. The smouldering feeling of dislike between "Le Marquis" and Alexander Mackenzie and the other fur-trading magnates broke out into a flame. As ex-Governor Masson says: "These three years were an uninterrupted succession of troubles, differences, and misunderstandings between these two opposing leaders." At the great gathering at the Grand Portage in 1799, Alexander Mackenzie warned the partners that he was about to quit the Company, and though the winterers begged him not to carry out his threat, yet he remained inexorable. The discussion reported to Mr. McTavish was very displeasing to him, and in the following year his usual letter to the gathering written from Montreal was curt and showed much feeling, he saying, "I feel hurt at the distrust and want of confidence that appeared throughout all your deliberations last season."

Alexander Mackenzie, immediately after the scene at Grand Portage, crossed over to England, published his "Voyages," and received his title. He then returned in 1801 to Canada. Flushed with the thought of his successes, he threw himself with great energy into the affairs of the opposing Company, the X Y, or, as it was also now called, that of "Sir Alexander Mackenzie and Company." If the competition had been warm before, it now rose to fever heat. The brigandage had scarcely any limit; combats of clerk with clerk, trapper with trapper, voyageur with voyageur, were common. Strong drink became, as never before or since, a chief instrument of the rival companies in dealing with the Indians.