Chapter IV
THE HUDSON'S BAY COMPANY AND THE FUR TRADE: A
HISTORICAL SUMMARY
The early history of the Canadian west is
basically a history of the fur trade. The general tendency was to reap the
resources of the region using primarily native or Metis labour, and then
transport the goods to the market centres of Europe, specifically London. The
original participants in this very lucrative trade were the Hudson's Bay
Company, the North West Company, and the XY Company. 130 In 1804, the XY
Company was absorbed by the North West Company, and in 1821, the latter also
lost its identity through amalgamation with the Hudson's Bay Company. As the
sole organized concern involved in the Canadian fur trade, it was the H.B.C.
which in 1864 opened a trading post near the Victoria mission site. The post
was named Fort Victoria.
While a detailed analysis of Hudson's Bay Company
activity at Fort Victoria will undoubtedly familiarize the reader with the
Company's mode of operation, it is important that the post's niche in the
organizational hierarchy also be noted. Accordingly, a few pages will be
devoted to a brief history of the Company and its penetration and exploitation
of the Canadian west. Abbreviated though this history will necessarily be, it
should help to place the Victoria outpost in proper perspective. That is to
say, one will come to view Fort Victoria as a typical western Canadian fur
trade outpost.
When "The Governor and Company of Adventurers
of England trading into Hudson's Bay" were incorporated on May 2, 1670,
their primary objective was to engage in any form of commerce with those lands
adjacent to the Bay. Not unexpectedly, the fur trade was the sole commercial enterprise
that initially proved profitable. Competition from rival French
traders during the late 17th and early 18th centuries checked, temporarily,
the growth of the English company, but by the mid-19th century the firm had
extended its claim across the Canadian prairies to the shores of the Pacific
slope.
As with any organization involved in a monopoly
trade, 131 challenges to that monopoly were frequently put forward. In the
late 1840s,
(start of page 60)
the natives of the Red River territory questioned
the Company's authority, and in the 1850s. newcomers from Canada did the same.
On the west coast, British Columbia ceased to be governed by the Company when
in 1858 it was made a crown colony. The beginning of the end for the H.B.C.'s
unquestionable domination of the Canadian hinterland came in 1859 when its
license for exclusive trade was not renewed. Ten years of legal and financial
bickering followed before the Company finally succumbed to the pressures of
Canadian expansion. On December 1, 1869, the H.B.C. transferred its
territories to the Dominion of Canada for f:300,000 plus considerations. 132
For those interested in the history of the
Canadian west, the circumstances surrounding the H.B.C.'s gradual decline are
well worth study. However, for the purposes of this chapter, a discussion of
the Company's transportation routes and its personnel classification will be
of greater relevance. The transportation costs of the water and land routes
seriously affected the operation of Fort Victoria, and the status of the
people employed there is an excellent indicator of the value the Company
placed on the outpost.
When the Hudson's Bay Company first began to trade
extensively the Canadian northwest, York Factory on Hudson's Bay was the most
important Company post. Conveniently located at the mouth of the Hay River,
the post served as the docking point for ships arriving from England and the
distribution centre for the northwest. Its importance was enhanced in that
many goods for the inland trade were also manufactured at the fort. Axes,
chisels, and cups and bowls were but a few of the articles made by local
artisans for shipment to the northwest.
Once the goods arrived at York Factory,
transportation to the interior was facilitated through the use of York boats.
These large4lal., bottomed vessels were ideally suited for the treacherous
waterways over which they plied. Thirty-five feet long, they could carry up
to five tons of freight and were normally manned by nine men, one being the
steersman. The boats were seldom sent out singly, rather, they 4 organized
into brigades. In the early days the brigades were usually composed of four to
five boats, although by the mid-1850s they had increased to six or seven. 133
(start of page 61)
To the chagrin of those involved in transporting
Hudson's Bay Company goods from York Factory to the interior, the water route was both lengthy
and difficult to navigate. From the mouth of the Hayes, the brigades were
forced to travel upstream to the Nelson and from there, upstream once again,
until they reached Norway House near the outlet of Lake Winnipeg. If the
merchandise was destined for the Mackenzie River slopes, the brigades were
subsequently routed across the northern shore of Lake Winnipeg to the mouth of
the Saskatchewan River and on to Cumberland House. The final leg of the
journey took them up the Sturgeon river, across Frog Portage to the Churchill
River and on to Methye Portage (Portage la Loche). If, however, the goods were
to be distributed in the Saskatchewan, the route was far less circuitous. From
Cumberland House the boats navigated up the Saskatchewan River to either
Chesterfield House on the southern branch, or Edmonton House (Fort Edmonton)
on the northern branch.
For two hundred years after the Hudson's Bay
Company was first granted its charter, the waterways of the northwest were the
sole avenue whereby the Company transported goods for the inland trade. In the
1860s, however, a considerable overland trade developed between American
traders based in St. Paul and the Red River settlement. As the intensity of
the trade increased, Fort Garry, located as it was at the junction of the Red
and Assiniboine Rivers, gradually took on the appearance of a sizable
distribution centre. By the turn of the decade, few, if any, of the trading
districts sent their boat brigades to York Factory for supplies. Rather, Fort
Garry had now become the new headquarters for the western trade and the famous
Red River carts the new mode of transportation.
Once the overland route to the western outposts
had displaced the more arduous water route, the Red River cart brigades became
a very familiar site on the Canadian prairies. The hardy carts were a two
wheeled affairs, constructed entirely of wood, and had a reputation for
being able to go anywhere, over anything. Ten carts normally made up a
brigade, although it was not unusual for upwards of eight or nine brigades to
join in one train when setting out for the west. 134 In 1876 alone, it was
estimated that between four and five thousand carts were loaded at Winnipeg to
cross the plains. 135 The most commonly used trail ran from Fort Garry to
Carlton House, via Fort Ellice. An extension of that trail continued on to Fort
Edmonton whence the goods were distributed to the several lesser outposts on
the shores of the Saskatchewan, Athabasca, and Peace Rivers.
(start of page 62)
In the mid-1870s, the Hudson's Bay Company
introduced yet another element into its transportation system. Shallow-draft
steamboats began operation on both the North -and South Saskatchewan. On the
southern branch, supplies were carried to the Medicine Hat area, and by 1875
service on the northern branch had been extended as far west as Edmonton.
Originally intended to offset the heavy transportation costs of the Red River
carts, the Saskatchewan steamers had themselves but a brief, albeit colourful,
history. The advance of the railway and the resultant growth of the railway
communities argued against extensive use of the river boats. In 1886, the long
trip from Grand Rapids to Edmonton was abandoned,136 and by the turn of the
century, all but the most limited river boat service had been suspended.
The method by which the Hudson's Bay Company
administered its territories involved an appreciable dependence on trusted
employees. While in theory the organization may have been oligarchic, in
reality, staff members were frequently called upon to exercise initiative. It
was an arrangement unique to the fur trade, and it was the logistics of the
trade that made it necessary. Trade carried over extended areas under
conditions of limited transportation made close control of individual staff
members all but impossible. Fortunately, it was a system rarely abused and
both employee and employer partook of its benefits.
If one were to actively pursue a career in the fur
trade, the pinnacle one could realistically hope to attain while in the employ
of the Hudson's Bay Company was a Chief Factorship. Aside from the Governor or
Chief Commissioner (the former elected by the stockholders, the latter
appointed by the Governor), the Chief Factors were the power behind the trade
in the northwest. They administered immense tracts of land (Districts) and
usually directed the operations of at least one major outpost and seven or
eight minor ones. 137 Their permanent residence was always located in the
District capital and prior to the transfer of Hudson's Bay Company property in
1869, it was from this seat that they settled matters not only concerning the
trade in furs,
but those touching on everyday life in the
Canadian west as well. 138
(start of page 63)
Below the Chief Factors were the Chief Traders and
Clerks. The responsibilities of the former were similar to those of the Chief
Factors, although in terms of seniority their positions were somewhat less
secure. They were normally placed in charge of important forts or posts, and
as with their immediate superiors, had several minor outposts to account for
and administer. The Clerks were almost always placed in charge of the minor
outposts. Their training and background was such that they were usually well
acquainted with the area for which they were responsible and at least vaguely
familiar with the accounting and administrative procedures of the Company. If
the operation at Victoria can be viewed as typical of most fur trade outposts,
then, the lack of adequate training in the latter fields caused no end of
consternation for those responsible for keeping the Company's books in proper
order. Apprentice Clerks (five year apprentice period), Postmasters,
Apprentice Postmasters, Interpreters, and general labourers supplemented the
H.B.C.'s employment rolls. The former three were permanent employees, whereas
the latter two were generally hired on a part time basis based on immediate
needs. Wages for the casual staff varied depending on the type of work and
generally speaking it was at this level that native labour was actively
encouraged.139

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Community Development.
130. The "North West
Company", commonly referred to as the XY Company, was formed in 1789
by the firms of Forsyth, Richardson and Company and Leith, Jamieson and
Company. In 1800 Sir Alexander MacKenzie joined the organization and it
became alternatively known as Sir Alexander MacKenzie and Company.
131. When the North West Company and
the Hudson's Bay Company amalgamated in 1821, the new company (H.B.C.) was
given an exclusive license to trade in the Canadian west for twenty-one
years. The charter was revived for the same term in 1831.
132. In addition to the cash
settlements, the company was also granted several thousand acres of land
surrounding its outposts, together with 1/20 of the "fertile
belt" of the northwest. The latter amounted to slightly over
7,000,000 acres.
133. Frederick J. Alcock, "Past and
Present Trade Routes to the Canadian Northwest" The Geographical
Review X (August 1920), pp. 68 - 69; and George Bryce, The
Remarkable History of the Hudson's Bay Company (Toronto: William
Briggs, 1900), p. 359.
134. George Bryce, The Remarkable
History of the Hudson's Bay Company, p. 362; and Frederick J. Alcock,
"Past and Present Trade Routes," p. 76
135. Frederick J. Alcock, "Past and
Present Trade Routes," p. 76.
136. Ibid., p. 77.
137. After 1821, the H.B.C. was organized
into four departments: (1) Montreal, (2) the Southern--Ontario, (3) the
Northern -- west coast of the Hudson's Bay to the Rocky Mountains, and (4)
the Columbia -- west of the Rockies. The Departments were sub-divided into
districts, which in turn were sub-divided into forts, post, and outposts.
138. By the terms of the Charter, the
officers of the Company "may have power to judge all persons
belonging to the said Governor and Company, or that shall live under them,
in all causes, whether civil or criminal, according to the laws of this
kingdom, and to execute justice accordingly." Cited in George Bryce, The
Remarkable History of the Hudson's Bay Company, p. 16.
139. Harold A. Innis, The Fur Trade in Canada
(Toronto: University of Toronto Press, 1956), pp. 311-312.