A North-West Company trader, writing from Pembina, says: "Indians daily coming in by small parties; nearly 100 men here. I gave them fifteen kegs of mixed liquor, and the X Y gave in proportion; all drinking; I quarrelled with Little Shell, and dragged him out of the fort by the hair. Indians very troublesome, threatening to level my fort to the ground, and their chief making mischief. I had two narrow escapes from being stabbed by him; once in the hall and soon afterwards in the shop."
Such were the troubles of competition between the Companies. The new Company made a determined effort to compete also in the far-distant Peace River district. In October of this year two prominent partners of the new Company arrived with their following at the Peace River. One of these, Pierre de Rocheblave, was of a distinguished family, being the nephew of a French officer who had fought on the Monongahelaagainst Braddock. The other was James Leith, who also became a prominent fur-trader in later days.
Illustrating the keenness of the trade conflict, John McDonald, of Garth, also says in 1798, writing from the Upper Saskatchewan, "We had here (Fort Augustus), besides the Hudson's Bay Company, whose fort was within a musket shot of ours, the opposition on the other side of the new concern I have already mentioned, which had assumed a powerful shape under the name of the X Y Company, at the head of which was the late John Ogilvy in Montreal, and at this establishment Mr. King, an old south trader in his prime and pride as the first among bullies."
Sir Alexander Mackenzie did wonders in the management of his Company, but the old lion at Montreal, from his mountain château, showed a remarkable determination, and provided as he was with great wealth, he resolved to overcome at any price the opposition which he also contemptuously called the "Little Company." In 1802, he, with the skill of a great general, reconstructed his Company. He formed a combination which was to continue for twenty years. Into this he succeeded in introducing a certain amount of new blood; those clerks who had shown ability were promoted to the position of bourgeois or partners. By this progressive and statesmanlike policy, notwithstanding the energy of the X Y Company, the old Company showed all the vigour and enthusiasm of youth.
An employé of the North-West Company, Livingston, had a few years before established a post on Slave Lake. Animated with the new spirit of his superiors, he went further north still and made a discovery of silver, but on undertaking to open trade communications with the Eskimos, the trader unfortunately lost his life.
Other expeditions were sent to the Missouri and to the sources of the South Saskatchewan; it is even said that in this direction a post was established among the fierce tribes of the Bow River, west of the present town of Calgary.
Looking out for other avenues for the wonderful store of energy in the North-West Company, the partners took into consideration the development of the vast fisheries of the St. Lawrence and the interior. Simon McTavish rented the old posts of the King—meaning by these Tadoussac, Chicoutimi, Assuapmousoin, and Mistassini, reached by way of the Saguenay; and Ile Jérémie, Godbout, Mingan, Masquaro, and several others along the north shore of the Lower St. Lawrence or the Gulf. The annual rent paid for the Kings posts was 1000l.
But the greatest flight of the old fur king's ambition was to carry his operations into the forbidden country of the Hudson Bay itself. In furtherance of this policy, in 1803 the North-West Company sent a schooner of 150 tons to the shores of Hudson Bay to trade, and along with this an expedition was sent by land by way of St. John and Mistassini to co-operate in establishing stations on the Bay. By this movement two posts were founded, one at Charlton Island and the other at the mouth of the Moose River. Many of the partners were not in favour of these expeditions planned by the strong-headed old dictator, and the venture proved a financial loss. Simon McTavish, though comparatively a young man, now thought of retiring, and purchased the seigniory of Terrebonne, proposing there to lead a life of luxury and ease, but a stronger enemy than either the X Y or Hudson's Bay Company came to break up his plans. Death summoned him away in July, 1804.
The death of Simon McTavish removed all obstacles to union between the old and new North-West Companies, and propositions were soon made to Sir Alexander Mackenzie, and his friends, which resulted in a union of the two Companies. We are fortunate in having preserved to us the agreement by which the two Companies—old and new North-West Companies—were united. The partners of the old Company were given three-quarters of the stock and those of the new one-quarter. The provisions of the agreement are numerous, but chiefly deal with necessary administration. One important clause is to the effect that no business other than the fur trade, or what is necessarily depending thereon, shall be followed by the Company. No partner of the new concern is to be allowed to have any private interests at the posts outside those of the Company. By one clause the new North-West Company is protected from any expense that might arise from Simon McTavish's immense venture on the Hudson Bay. It may be interesting to give the names of the partners of the two Companies, those who were not present, from being mostly in the interior and whose names were signed by those having powers of attorney from them, being marked Att.
THE NORTH-WEST OR X Y COMPANY.