The "libertines" he thus alluded to were the bushrangers, who were already giving the French great trouble and uneasiness through their wild, undisciplined habits and their freedom from restraint. Denonville added that the Hudson's Bay Company, paying higher prices for beaver than the French could do, would always have a preference, and consequently would almost monopolize the trade. It was therefore better, in his opinion, to effect a compromise in the Bay, restoring the three forts Troyes had taken in exchange for Port Nelson, which, so he stated, was worth more than the other three together for trading purposes. Besides, on the first rupture, it would be very easy to retake them by an overland march, as Troyes had done.
But such proposals on the part of the French were indignantly rejected by the English Company. There was, therefore, nothing for it but a _modus vivendi_, under which no further encroachments in the Bay were to be made by either party.
But whatever the intent of the negotiations, there was nothing to compel the parties directly interested to observe them. The elated French Company was too much inclined to retain what Troyes had wrested from the English to adhere to sophistries and weak-kneed arguments. It engaged Iberville to return to Fort Albany, upon which establishment it had bestowed the name of St. Anne, and repulse the English should their ships arrive and endeavour to land. Captain Moon, returning from Port Nelson, did make an attempt with twenty-four men to surprise the French. He built a station some eight miles distant; but Iberville heard of it, marched thither with great despatch, and pursued them for twenty miles. He then made preparations for seizing Captain Moon's ship, embarking upwards of forty men in canoes and small boats for this purpose. But those aboard her defeated his intention in the night, by setting her on fire and making their escape to the shore, where they rejoined their companions and made the best of their way overland to New Severn, a fort which had been erected in the previous year as a means of drawing trade away from the French conquerors in the eastern parts of the Bay.
Iberville was not long ignorant of the retreat of those who had escaped him; nor of the prosperity which attended the new factory. He arrived before New Severn in October, 1689, obtained its surrender and took the Company's Governor prisoner.