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North West Company

North West Company - Coat of Arms
For the modern grocery and retail company, see The North West Company

The North West Company was a fur trading business headquartered in Montreal from 1779 to 1821. It competed with increasing success against the Hudson's Bay Company in what was to become Western Canada. With great wealth at stake, tensions between the companies increased to the point where several minor armed skirmishes broke out, and the two companies were forced to merge.

In 1987, the northern trading posts of the Hudson's Bay Company were sold to an employee consortium that revived the name The North West Company in 1990.


  • Before the Company 1
  • Beginnings 2
  • Frobisher-McTavish deal 3
  • Late 18th/early 19th century 4
  • Forced merger 5
  • Revival 6
  • Personnel 7
  • Organizational history 8
  • See also 9
  • References 10
    • Further reading 10.1
  • External links 11

Before the Company

After the French landed in Quebec in 1608, coureurs des bois spread out and built a fur trade empire in the St. Lawrence basin. The French competed with the Dutch (from 1614) and English (1664) in New York and the English in Hudson Bay (1670). Unlike the French who travelled into the interior, the English confined themselves to trading posts on Hudson Bay. After 1731 La Vérendrye pushed trade west beyond Lake Winnipeg. After the conquest in 1763, management was taken over by English-speakers. These so-called "pedlars" began to merge because competition cost them money and because of the high costs of outfitting canoes to the far west.


There are historical references to a North West Company as early as 1770, involving the Montreal-based traders George McBeath.

Simon McTavish (above) dominated the company until his death in 1804. His nephew William McGilivray ran it until the merger of 1821.

In 1787 the North West Company merged with a rival organization, Pacific Coast.[4]

Frobisher-McTavish deal

The death of Benjamin Frobisher opened the door to a takeover of the North West Company by Simon McTavish, who made a deal with Frobisher's surviving brother Joseph. The firm of McTavish, Frobisher and Company, founded in November 1787, effectively controlled eleven of the company’s twenty outstanding shares. At the time the company consisted of 23 partners, but "its staff of Agents, factors, clerks, guides, interpreters, more commonly known today as voyageurs amounted to 2000 people."[5] In addition to Alexander Mackenzie, this group included Americans Peter Pond and Alexander Henry the elder. Further reorganizations of the partnership occurred in 1795 and 1802, the shares being subdivided each time to provide for more and more wintering partners.

Vertical integration of the business was completed in 1792, when Simon McTavish and John Fraser formed a London house to supply trade goods and market the furs, McTavish, Fraser and Company. While the organization and capitalization of the North West Company came from Anglo-Quebecers, both Simon McTavish and Joseph Frobisher married French Canadians. Numerous French Canadians played key roles in the operations both in the building, management, and shareholding of the various trading posts scattered throughout the country, as well numbering among the voyageurs involved in the actual trading with natives.

In the northwest, the Company expanded its operations as far north as Great Bear Lake,[6] and westwards beyond the Rocky Mountains. For several years, they tried to sell furs directly to China, using American ships to avoid the British East India Company's monopoly, but little profit was made there. The company also expanded into the American Northwest Territory. In 1796, to better position themselves in the increasingly global market, where politics played a major role, the North West Company briefly established an agency in New York City.

Despite its efforts, the North West Company was at a distinct disadvantage in competing for furs with the Hudson's Bay Company, whose charter gave it a virtual monopoly in Rupert's Land, where the best furs came from. The company tried to persuade the British Parliament to change arrangements, at least so the North West Company could obtain transit rights to ship goods to the west needed for trading for furs. It is said that Simon McTavish made a personal petition to Prime Minister William Pitt, but all requests were refused.

Charlton island

A few years later, with no relief to the Hudson's Bay Company's stranglehold, McTavish and his group decided to gamble. They organized an overland expedition from Montreal to James Bay and a second expedition by sea. In September 1803, the overland party met the company's ship at Charlton Island in what is now Nunavut Territory. There, they lay claim to the region, inhabited by the Inuit, in the name of the North West Company and was able to capitalize on the rich furs of the area. The expansion northwestward also resulted in diminishing profits for the Hudson's Bay Company. In 1800, HBO profited £38,000 in trade compared to the North West Company's £144,000 in 1800.[7] This bold move caught the Hudson's Bay Company off guard. In succeeding years it retaliated rather than reaching a compromise, which McTavish had hoped might be negotiated.

Late 18th/early 19th century

Simon McTavish brought several members of his family into the company, but nepotism took a back seat to ability. His brother-in-law, Charles Chaboillez, oversaw the Lower Red River trading post. McTavish also hired several cousins and his nephews William McGillivray and Duncan McGillivray to learn the business. William McGillivray was groomed by his uncle to succeed him as Director of the North West Company, and by 1796 he had effectively done so, acting as Montreal agents' representative at the annual meetings at Grand Portage, and later at Fort William.

Simon McTavish was an aggressive businessman who understood that powerful forces in the business world were always ready to pounce on any weakness. As such, his ambition and forceful positions caused disagreements between him and some of the shareholders, several of whom eventually left the North West Company during the 1790s. Some of these dissidents formed their own company, known unofficially as the "XY Company", allegedly because of the mark they used on their bales of furs. Their cause was greatly strengthened in 1799, when the North West Company's hero explorer, Alexander Mackenzie, quit his old partnership and soon after joined them.

There was intense competition between the rivals. When Simon McTavish died on July 6, 1804, the new head William McGillivray set out to put an end to the four years' rivalry. It had escalated to a point where the master of the North West Company post at Great Bear Lake had been shot by an XY Company employee during a quarrel. McGillivray was successful in putting together an agreement with the XY Company in 1804. It stipulated that the old North West Company partners held 75 per cent of the shares, and the former XY Company partners the remaining 25 per cent. Alexander Mackenzie was excluded from the new joint partnership.[8]

Under William McGillivray, the Company continued to expand, and apparently to profit, during the first decade of the 19th century. Competition with the Hudson's Bay Company was intense, however, and profit margins were squeezed. The North West Company branch in New York City had allowed the Canadians to get around the British East India Company's monopoly and ship furs to the Chinese market. Cargo ships owned by the North West Company conveniently sailed under the American flag, and doing so meant continued collaboration with John Jacob Astor.

However, Astor was as aggressive as Simon McTavish had been. An intense rivalry soon developed between him and William McGillivray over the Oriental market and westerly expansion to unclaimed territory in what is now the Fort Vancouver.[8]

The Canadian fur trade began to change in 1806, after Napoleon Bonaparte ordered the blockade of the Baltic Sea as part of the ongoing struggle between France and Britain for world dominance. Britain was dependent for almost all of her timber on the Baltic countries and on New Hampshire and Massachusetts (which at that time included Maine). By then, however, tensions had also begun to escalate again between Britain and America, and in 1809 the American Government passed the Non-Intercourse Act, which effectively brought about an almost complete cessation of trade between the two countries. Britain then found herself totally dependent on her Canadian colony for her timber needs, especially the great white pine used for ships' masts. Almost overnight, timber and wood products replaced fur as Canada's number one export. Fur remained profitable, however, as it had a high value-to-bulk ratio, and in an economy short of ready money, fur was routinely used by Canadian merchants to remit value to their London creditors.

Forced merger

By 1810, another crisis hit the fur industry, brought on by the over-harvesting of animals, the beaver in particular. The destruction of the North West Company post at Sault Ste. Marie by the Americans during the War of 1812 was a serious blow during an already difficult time. All these events only intensified competition, and when Thomas Douglas convinced his fellow shareholders in the Hudson's Bay Company to grant him the Selkirk Concession it marked another in a series of events that would lead to the demise of the North West Company. The Pemmican Proclamation, the ensuing Battle of Seven Oaks in 1816, and its violence, resulted in Lord Selkirk arresting William McGillivray and several North West Company proprietors, seizing their outpost property in Fort William and charging them with responsibility for the deaths of twenty-one people at Seven Oaks. Although this matter was resolved by the authorities in Montreal, over the next few years some of the wealthiest and most capable partners began to leave the company, fearful of its future viability. The form of nepotism within the company too had changed, from the strict values of Simon McTavish to something that now was harming the business in both its costs and morale of others.[9][10]

By 1820, the company was issuing coinage, each copper token representing the value of one beaver pelt.[11] However, the continued existence of the North West Company was in great doubt, and shareholders had no choice but to agree to a merger with their hated rival after Rupert's Land who became the Canadian head of the northern division of the greatly enlarged business, made his headquarters in the Montreal suburb of Lachine.


In 1987, the northern trading posts of the Hudson's Bay Company were sold to an employee consortium that revived the name The North West Company In 1990. The new company is a grocery and merchandise store chain based in Winnipeg, with stores in Northern Canada, Alaska, US Pacific territories and the Caribbean. Its headquarters are across the street from the Forts Rouge, Garry, and Gibraltar National Historic Site of Canada, the site of an old North West Company fort.


Beyond the non-operating investors, these were some of the post proprietors, clerks, interpreters, explorers and others of the nearly 2,500 employed by the North West Company in 1799:[12]

  • Lower English River:
    • Alexander Fraser (proprietor), John MacGillivray, Robert Henry, Louis Versailles, Charles Messier, Pierre Hurteau;
  • Fort Dauphin:
    • A. N. McLeod (proprietor), Hugh McGillis, Michel Allary, Alexander Farguson, Edward Harrison, Joseph Grenon, François Nolin, Nicholas Montour;
  • Upper Fort des Prairies and Rocky Mountains:
    • Daniel Mackenzie (proprietor), John MacDonald (proprietor), James Hughes, Louis Châtellain, James King, François Décoigne, Pierre Charette, Pierre Jérôme, Baptiste Bruno, David Thompson, J. Duncan Campbell, Alexander Stewart, Jacques Raphael, Francois Deschamps;
  • Lower Fort des Prairies:
    • Pierre Belleau, Baptiste Roy, J. B. Filande, Baptiste Larose;
  • Upper Red River:
    • John Macdonell (proprietor), George MacKay, J. Macdonell, Jr., Joseph Auger, Pierre Falcon, François Mallette, William Munro, André Poitvin;
  • Lac Winipic:
    • William MacKay (proprietor), John Cameron, Donald MacIntosh, Benjamin Frobisher, Jacques Dupont, Joseph Laurent, Gabriel Attina, Francois Amoit;
  • Nipigon
    • Duncan Cameron (proprietor), Ronald Cameron, Dugald Cameron, Jacques Adhémar, Jean-Baptiste Chevalier, Allen MacFarlane, Jean-Baptiste Pominville, Frederick Shults;
  • Pic:
    • J. B. Perrault, Augustin Roy;
  • Michipicoten and the Bay:
    • Lemaire St-Germain, Baptiste St-Germain, Léon Chênier
  • Fond du Lac:
    • John Sayer (proprietor), J. B. Cadotte, Charles Bousquet, Jean Coton, Ignace Chênier, Joseph Réaume, Eustache Roussin, Vincent Roy;
  • Lac La Pluie:
    • Peter Grant (proprietor), Arch. MacLellan, Charles Latour, Michel Machard;
  • Grand Portage:
    • Doctor Munro, Charles Hesse, Zacharie Clouthier, Antoine Colin, Jacques Vandreil, François Boileau, Mr. Bruce.

Organizational history

The history of the partnership is complex, but it is necessary to keep track of who was competing with whom. Note that the definition of partner is not completely clear. For example, after Duncan McDougall surrendered Fort Astoria he became a NWC partner with one one-hundredth of a share.

  • 1771: William Grant and several others form a partnership which they call the "N. W. Société"
  • 1775: Alexander Henry the elder speaks of a pool on the North Saskatchewan similar to 1779 (see Fort Sturgeon).
  • 1779: Of 16 shares: 2 shares: Todd & McGill, McBeath & Co; 1 share: Ross & Co, Oakes & Co. The first three were large and closely connected. Peter Pond was a partner of McBeath and Patrick Small of McTavish.
  • 1784: McGill & Todd secede. Of 16 shares: 3 shares: Simon McTavish, B & J Frobisher; 2 shares: George McBeath, Robert Grant, Nicholas Montour, Patrick Small; 1 share: Peter Pond, William Holmes. The agreement was made in January and confirmed that summer when the winterers arrived at Grand Portage for the first meeting.
  • 1787: McTavish buys 1 of McBeath's 2 shares. Gregory & McLeod join. Of 20 Shares: 4 shares: McTavish; 3 shares: Joseph Frobisher; 2 shares: Patrick Small, Nicholas Montour, Robert Grant; 1 share: McBeath, Peter Pond, Holms; former Gregory & McLeod members with 1 share each: John Gregory, Norman McLeod, Peter Pangman, Alexander MacKenzie.
  • 1788: Merger creates McTavish, Frobisher & Co which controls half of the NWC.
  • 1790: Of 20 shares: 6 shares: McTavish & Frobisher: 2 shares: Montour, Robert Grant, Patrick Small, John Gregory, Peter Pangman, Alexander MacKenzie; 1 share: McTavish's nephew and Donald Sutherland.
  • 1792: Now 46 shares. 20 Shares: McTavish, Frobisher &Co (with new partner John Gregory), 6 Shares: Alexander MacKenzie, 2 Shares: Todd, McGill & Co, Forsyth, Richardson & Co, Montour, Sutherland, Angus Shaw, 1 Share: Alexander Henry the elder & Alexander Henry the younger, Grant, Campion & Co, Robert and Cuthbert Grant, Roderick McKenzie and others.
  • 1796: Frobisher retires.
  • 1802: 6 shares added to be distributed to clerks.
  • 1804: McTavish dies, replaced by William McGillivray. Merger with XY Company.
  • 1806: McTavish, Frobisher & Co becomes McTavish, McGillivrays & Co
  • 1821: Merged with Hudson's Bay Company. Former NWC owners have half the capital but little power.

XY Company or formally the New North West Company and sometimes Alexander MacKenzie & Co: In 1798 the XY Company formed around Forsyth, Richardson & Co, Parker, Gerrand & Ogilvy and John Mure of Quebec. In 1799 MacKenzie left the NWC and went to England. Next year he bought shares in XY and soon became effective head of the firm. Alexander Henry the younger was an XY winterer. They built a number of posts close to NWC and HBC posts. The murder of an HBC man by an XY man at Fort de l'Isle led to the Canada Jurisdiction Act which extended Quebec law to western Canada. In 1804 it merged with the NWC, having 25% interest in the combined company.

The South West Company: was an 1811 attempted partnership between McTavish, McGillivrays and John Jacob Astor to import goods through New York and deal with the Great Lakes trade. It was mostly blocked by the War of 1812 but remnants existed until at least 1820. Astor had been dealing with the NWC since around 1787.

McTavish, Fraser & Co: was the London agent of Simon McTavish, from about 1790. John Fraser was his cousin. Simon McGillivray worked there and became a partner in 1805. Edward Ellice, a man of great influence, was involved.

Todd & McGill was formed in 1776, was in the NWC by 1779, separated in 1784 and rejoined in 1792. They apparently wanted to concentrate on the southern Great Lakes.

Gregory & McLeod joined in 1787. They employed Alexander Mackenzie, Peter Pangman and John Ross.

See also


  1. ^ Campbell, Marjorie Wilkins (1983). "Gregory, John". In Halpenny, Francess G.  
  2. ^ Mackenzie, Alexander (1903). Voyages from Montreal Through the Continent of North America to the Frozen and Pacific Oceans in 1789 and 1793. Vol I. New York: A.S. Barnes & Company. Retrieved 5 October 2015. 
  3. ^ Mackenzie, Alexander (1903). Voyages from Montreal Through the Continent of North America to the Frozen and Pacific Oceans in 1789 and 1793. Vol II. New York: A.S. Barnes & Company. Retrieved 5 October 2015. 
  4. ^ Innis, Harold A. (2001) [1930]. The Fur Trade in Canada: An Introduction to Canadian Economic History (reprint ed.). Toronto, Ontario: University of Toronto Press.  
  5. ^ Kingsford, William (July 1881). "John Johnston, of Sault Ste. Marie: A Passage in Canadian History". In Adam, G. Mercer. Canadian Monthly and National Review VII. Toronto: Rose-Belford Publishing Co. p. 3. Retrieved 5 October 2015. 
  6. ^ Keith, Lloyd, ed. (2001). North of Athabasca: Slave Lake and Mackenzie River Documents of North West Company, 1800-1821. Rupert's Land Record Society series. Montreal, Quebec & Kingston, Ontario: McGill-Queens University Press. p. 38.  
  7. ^ Friesen, Gerald (1987). The Canadian Prairies. University of Toronto Press. p. 62.  
  8. ^ a b Rich, E.E. (1966). Montreal and the Fur Trade. Montreal, Quebec: McGill-Queens University Press.  
  9. ^ Friedley, Russell W., ed. (1967). Aspects of the Fur Trade; Selected Papers of the 1965 North American Fur Trade Conference. Minneapolis, Minnesota: Minnesota Historical Society. 
  10. ^ Davies, K.G.; "From Competition to Union"
  11. ^ North west company - 1820
  12. ^ Masson, L.R., ed. (1890). Les Bourgeois de la Compagnie du Nord-Ouest 2. Québec: De L'Imprimerie Générale A. Coté et Cie. Retrieved 5 October 2015. 
  13. ^ Malhiot, Francois Victor (1910). "A Wisconsin Fur-Trader's Journal, 1804-05". Wisconsin Historical Collections XIX. pp. 163–233. Retrieved 5 October 2015. 

Further reading

Further information on the North West Company can be found in Marjorie Wilkins Campbell's 1957 book The North West Company, as well as her 1962 biography of William McGillivray, McGillivray, Lord of the North West. Campbell served as a consultant to the government of Ontario for the restoration of the North West Company trading post in Fort William, Ontario, Fort William Historical Park. Campbell also wrote a book for young adults—The Nor'westers—which won the 1954 Governor General's Awards. In addition, the North West Company is a case example in John Roberts The Modern Firm (Oxford).

  • Canada. Bill An Act to Incorporate the North West Company. Ottawa: I.B. Taylor, 2004. ISBN 0-659-04993-7
  • Fox, William A. Archaeological Investigation of the North West Company Great Hall Cellar, Fort William, 1976. Data box research manuscript series, 348. [Toronto]: Ministry of Culture and Recreation, Historical Planning and Research Branch, 1977.
  • Hoag, Donald R. Agents of the North West Company in the Fond du Lac District. Duluth: The Author, 1981.
  • Keith, Lloyd. North of Athabasca Slave Lake and Mackenzie River Documents of the North West Company, 1800-1821. Rupert's Land Record Society series. Montreal: McGill-Queen's University Press, 2001. ISBN 0-7735-2098-8
  • M'Gillivray, Duncan, and Arthur Silver Morton. The Journal of Duncan M'Gillivray of the North West Company at Fort George on the Saskatchewan, 1794-5. Toronto: Macmillan Co. of Canada, 1929.
  • Schwörer, Ute. The Reorganization of the Fur Trade of the Hudson's Bay Company After the Merger with the North West Company, 1821 to 1826. Ottawa: National Library of Canada, 1988. ISBN 0-315-35812-2
  • Selkirk, Thomas Douglas. A Sketch of the British Fur Trade in North America With Observations Relative to the North West Company of Montreal. New-York: Printed for James Eastburn and Co. [by] Clayton & Kingsland, 1818.
  • Wallace, W. Stewart. Documents Relating to the North West Company. New York: Greenwood Press, 1968.

External links

  • Fort Frances Museum & Cultural Centre Fort Frances, Ontario: Celebrating Community
  • Nor'Westers and Loyalist Museum
  • The North West Company
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