This commercial establishment was now founded on a more solid basis than any hitherto known in the country; and it not only continued in full force, vigour, and prosperity, in spite of all interference from Canada, but maintained at least an equal share of advantage with the Hudson's-Bay Company, notwithstanding the superiority of their local situation. The following account of this self-erected concern will manifest the cause of its success.
It assumed the title of the North-West Company, and was no more than an association of commercial men, agreeing among themselves to carry on the fur trade, unconnected with any other business, though many of the parties engaged had extensive concerns altogether foreign to it. It may be said to have been supported entirely upon credit; for, whether the capital belonged to the proprietor, or was borrowed, it equally bore interest, for which the association was annually accountable. It consisted of twenty shares, unequally divided among the persons concerned. Of these, a certain proportion was held by the people who managed the business in Canada, and were styled agents for the Company. Their duty was to import the necessary goods from England, store them at their own expense at Montreal, get them made up into articles suited to the trade, pack and forward them, and supply the cash that might be wanting for the outfits, for which they received, independent of the profit on their shares, a commission on the amount of the accounts, which they were obliged to make out annually, and keep the adventure of each year distinct. Two of them went annually to the Grande Portage, to manage and transact the business there, and on the communication at Detroit, Michilimakinac, St. Mary's, and at Montreal, where they received, stored, packed up, and shipped the company's furs for England, on which they had also a small commission. The remaining shares were held by the proprietors, who were obliged to winter and manage the business of the concern with the Indians, and their respective clerks, etc. They were not supposed to be under any obligation to furnish capital, or even credit. If they obtained any capital by the trade, it was to remain in the hands of the agents; for which they were allowed interest. Some of them, from their long services and influence, held double shares, and were allowed to retire from the business at any period of the existing concern, with one of those shares, naming any young man in the company's service to succeed him in the other. Seniority and merit were, however, considered as affording a claim to the succession, which, nevertheless, could not be disposed of without the concurrence of the majority of the concern; who, at the same time, relieved the seceding person from any responsibility respecting the share that he transferred, and accounted for it according to the annual value or rate of the property; so that the seller could have no advantage, but that of getting the share of stock which he retained realised, and receiving for the transferred share what was fairly determined to be the worth of it. The former was also discharged from all duty, and became a dormant partner. Thus, all the young men who were not provided for at the beginning of the contract, succeeded in succession to the character and advantages of partners. They entered into the Company's service for five or seven years, under such expectations, and their reasonable prospects were seldom disappointed: there were, indeed, instances when they succeeded to shares, before their apprenticeship was expired, and it frequently happened, that they were provided for while they were in a state of articled clerkship. Shares were transferable only to the concern at large, as no person could be admitted as a partner who had not served his time to the trade. The dormant partner indeed might dispose of his interest to any one he chose, but if the transaction was not acknowledged by his associates, the purchaser could only be considered as his agent or attorney. Every share had a vote, and two-thirds formed a majority. This regular and equitable mode of providing for the clerks of the company, excited a spirit of emulation in the discharge of their various duties, and in fact, made every agent a principal, who perceived his own prosperity to be immediately connected with that of his employers. Indeed, without such a spirit, such a trade could not have become so extended and advantageous, as it has been and now is.