Father Le Baillif's mission was unfruitful, for he brought word of the amalgamation of the two companies, whose chiefs were Guillaume de Caën, Ezechiel de Caën, and their nephew, Emery de Caën. The order-in-council establishing this large company granted to them the liberty of trading in New France, and all French subjects were eligible for admission to the society. By this arrangement the de Caëns were obliged to pay the sum of ten thousand livres to the members of the old Rouen association, and a sum equal to the value of their goods, barques and canoes. The old company received five-twelfths of the Company of Montmorency, one-twelfth of which was reserved by de Monts, who was at that time living at his residence in Saintonge. By this latter arrangement, however, the de Caëns were relieved from the payment of the ten thousand livres imposed upon them by the order-in-council. When Father Le Baillif returned to Quebec in the spring of 1622, all the old rivalry had disappeared. The Company of Rouen had adopted the name of the Company of Montmorency with the de Caëns as chiefs.

The principal articles stipulated in the agreement were:—

1. Champlain to be lieutenant of the viceroy, with precedence on land, and to command the habitation of Quebec, and to have command of all the French residents in New France. Ten men were also to be placed at his disposal, who were to be maintained at the expense of de Caën, who was also to pay to each an annual sum of twenty livres.

2. The company was also to maintain six Récollet fathers, two of whom were to be engaged in missions to the savages.

3. The company was to support and maintain six families of labourers, carpenters and masons, during the period of the agreement, the families to be changed every two years.

4. The company was to pay the sum of twelve hundred francs as a salary to Champlain.

5. Champlain was to enjoy the privilege of trading for eleven years, and to this term the king added another eleven years.

The first man to bring the news of a change of authority was a clerk named Santein, but it was confirmed some days after by the arrival of Pont-Gravé and Guillaume de Caën, who were accompanied by a clerk named Le Sire, an underclerk named Thierry-Desdames,[19] and Raymond de la Ralde. De Caën handed to Champlain a letter from the king, who advised him to recognize the authority of the new company, and also to endeavour to maintain peace and harmony. When de Caën had completed his trading at Three Rivers he sailed again for France, leaving Pont-Gravé as chief clerk at Quebec, and Le Baillif as underclerk at Tadousac.

In order to establish good order throughout the country, Champlain published certain ordinances, which should be regarded as the first code of Canadian laws. Although it was desirable to maintain peace, it was also necessary to prepare to resist the attacks of the Iroquois, who were becoming more and more active. A party of the Iroquois had approached Quebec, and were observed to be rambling in the vicinity of the Récollets' convent, on the north shore of the River St. Charles. They finally made an attack, but they were repulsed with loss by the French and the Montagnais, whose chief was Mahicanaticouche, Champlain's friend. This chief was the son of the famous Anadabijou, who had contracted the first alliance with the French at Tadousac in 1603.

In the year 1623, the vessels arrived from France later than usual, and the rendezvous took place at Cape de la Victoire on July 23rd. On this occasion the following persons were present: Champlain, Pont-Gravé, Guillaume de Caën, Captain Duchesne, des Marets, De Vernet, Étienne Brûlé, an interpreter, Loquin, a clerk, Father Nicholas Viel, and Brother Sagard-Théodat.