The Governor and I became fast friends, and our friendship, cordial on both sides, continued until his death, a very few years ago. The only fault of Governor Dallas was a want of self-assertion. Brought out by the Mathesons—hardy Scots of the North—as he was, he made a reasonable fortune in China: and coming home, intending to retire, he was persuaded to accept the Governorship of the Hudson's Bay Company on the death of Sir George Simpson. Meeting at Montreal, our first act of "business" was to voyage in the Governor's canoe from Lachine through the rapids to Montreal; a voyage, to me, as almost a novice, save for my New Brunswick canoeing, of rather startling adventure; but the eleven stalwart Indians, almost all six feet high, who manned the boat, made the trip interesting, as it was to me in the nature of a new experience. These men had been with Governor Dallas nearly 4,000 miles by river, lake, and portage; and he told me he never knew them to be late, however early the start had to be made; never unready; always cheerful and obliging; and that a cross word had never, in his hearing, been uttered by any one of them. These men made Caughna Wauga, opposite Lachine, their home, and there were their families.
After the most careful study and discussion of the questions above alluded to, and others, the discussion extending over a month, we agreed to various memoranda. The one affecting the re-organization of management was as follows:—
"The first measure necessary towards the re-organization of the Hudson's Bay service, will be the abolition, or modification of the deed poll, under which the fur trade is at present carried on. The difficulty involved in this proceeding is, an interference in the vested rights of the wintering partners (chief factors and chief traders). That might be overcome by some equitable scheme for the extinction of those rights, which would serve the double purpose of rendering practicable a reorganization of the service, and a reduction in the number of superior officers, at present too large. This reduction would give the opportunity of dispensing with such men as are inefficient, and of retaining those only likely to be useful. The Company are under no covenants in reference to the clerks.
"The arrangements of the deed poll are, in outline, as follows:—The profits of the fur trade (less the interest charge, which goes exclusively to the stockholders) are divided into one hundred parts; of those, sixty are appropriated to the stockholders, and forty to the wintering partners. These last are subdivided into eighty-five shares, of which two are held by each chief factor, and one by each chief trader.
"Clerks are paid by salary. Only a clerk can be promoted to a chief tradership (1-1/85 share), and only a trader to a chief factorship (2- 1/85 shares). The promotions are made by the Company on the nomination of the chief factors, though this rule has not always been adhered to. On retirement an officer holds his full interest for the first year, and half this interest for the succeeding six years. The deed poll authorizes the Company to put an officer on the retired list, without reasons assigned, after he has served four years, but they cannot deprive him of his retired interest except for proved misconduct; but neither of these regulations has ever been put in force. It is possible the wintering partners might raise a question whether, under the existing deed poll, the Company could make any great changes in their business, or embark in new undertakings, if likely to affect injuriously the incomes of the officers on the active list, or the interests of those on retirement.
"One mode of removing this obstacle would be to ascertain the value of a retired interest, and to give a money compensation to each officer on his entering into an agreement to consent to the abrogation of the deed poll. This would involve an outlay of money, but would also be productive of a considerable subsequent annual saving.
"The eighty-five shares belonging to the wintering partners are, at this date, held as follows:—
15 chief factors 30 shares
37 " traders 37 "
10 retired chief factors 13 "
10 " " traders 5 "
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85 "
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"As regards the shares held on retirement, some of the interests have nearly run out, and none of the parties have any voice in the business.
"The value of a 1-85th share has been, on the average of the last thirteen outfits, which have been wound up (1846-1858), about 408_l_. At that rate a chief factor's retired interest would amount to 3,264_l_., and a chief trader's to 1,632_l_., less discount, supposing payment to be made at once, instead of its being spread over nine or ten years. On the other hand, the invariable custom of the service has been to allow every officer one or more year's furlough on retiring, which has come to be considered almost a right; when more than one year has been granted, it has been by special favour. Adding one year's furlough, a factor's retired allowance would be 4,080_l_., and a trader's 2,040_l_. The discount being taken off, to render them equal to cash, would make a factor's allowance about 3,000_l_., and a trader's 1,500_l_.