Still, the competition of two rival companies west of the Rocky
Mountains could not but prove detrimental to both, and fraught
with those evils, both to the trade and to the Indians, that had
attended similar rivalries in the Canadas. To prevent any contest
of the kind, therefore, he made known his plan to the agents of
the Northwest Company, and proposed to interest them, to the
extent of one third, in the trade thus to be opened. Some
correspondence and negotiation ensued. The company were aware of
the advantages which would be possessed by Mr. Astor should he be
able to carry his scheme into effect; but they anticipated a
monopoly of the trade beyond the mountains by their
establishments in New Caledonia, and were loth to share it with
an individual who had already proved a formidable competitor in
the Atlantic trade. They hoped, too, by a timely move, to secure
the mouth of the Columbia before Mr. Astor would be able to put
his plans into operation; and, that key to the internal trade
once in their possession, the whole country would be at their
command. After some negotiation and delay, therefore, they
declined the proposition that had been made to them, but
subsequently despatched a party for the mouth of the Columbia, to
establish a post there before any expedition sent out by Mr.
Astor might arrive.
In the meantime Mr. Astor, finding his overtures rejected,
proceeded fearlessly to execute his enterprise in face of the
whole power of the Northwest Company. His main establishment once
planted at the mouth of the Columbia, he looked with confidence
to ultimate success. Being able to reinforce and supply it amply
by sea, he would push his interior posts in every direction up
the rivers and along the coast; supplying the natives at a lower
rate, and thus gradually obliging the Northwest Company to give
up the competition, relinquish New Caledonia, and retire to the
other side of the mountains. He would then have possession of the
trade, not merely of the Columbia and its tributaries, but of the
regions farther north, quite to the Russian possessions. Such was
a part of his brilliant and comprehensive plan.
He now proceeded, with all diligence, to procure proper agents
and coadjutors, habituated to the Indian trade and to the life of
the wilderness. Among the clerks of the Northwest Company were
several of great capacity and experience, who had served out
their probationary terms, but who, either through lack of
interest and influence, or a want of vacancies, had not been
promoted. They were consequently much dissatisfied, and ready for
any employment in which their talents and acquirements might be
turned to better account.
Mr. Astor made his overtures to several of these persons, and
three of them entered into his views. One of these, Mr. Alexander
M'Kay, had accompanied Sir Alexander Mackenzie in both of his
expeditions to the northwest coast of America in 1789 and 1793.
The other two were Duncan M'Dougal and Donald M'Kenzie. To these
were subsequently added Mr. Wilson Price Hunt, of New Jersey. As
this gentleman was a native born citizen of the United States, a
person of great probity and worth, he was selected by Mr. Astor
to be his chief agent, and to represent him in the contemplated
establishment.
On the 23d of June, 1810, articles of agreement were entered into
between Mr. Astor and those four gentlemen, acting for themselves
and for the several persons who had already agreed to become, or
should thereafter become, associated under the firm of "The
Pacific Fur Company."
According to these articles, Mr. Astor was to be at the head of
the company, and to manage its affairs in New York. He was to
furnish vessels, goods, provisions, arms, ammunition, and all
other requisites for the enterprise at first cost and charges,
provided that they did not, at any time, involve an advance of
more than four hundred thousand dollars.
The stock of the company was to be divided into a hundred equal
shares, with the profits accruing thereon. Fifty shares were to
be at the disposition of Mr. Astor, and the other fifty to be
divided among the partners and their associates.
Mr. Astor was to have the privilege of introducing other persons
into the connection as partners, two of whom, at least, should be
conversant with the Indian trade, and none of them entitled to
more than three shares.
A general meeting of the company was to be held annually at
Columbia River, for the investigation and regulation of its
affairs; at which absent members might be represented, and might
vote by proxy under certain specified conditions.
The association, if successful, was to continue for twenty years;
but the parties had full power to abandon and dissolve it within
the first five years, should it be found unprofitable. For this
term Mr. Astor covenanted to bear all the loss that might be
incurred; after which it was to be borne by all the partners, in
proportion to their respective shares.
The parties of the second part were to execute faithfully such
duties as might be assigned to them by a majority of the company
on the northwest coast, and to repair to such place or places as
the majority might direct.
An agent, appointed for the term of five years, was to reside at
the principal establishment on the northwest coast, and Wilson
Price Hunt was the one chosen for the first term. Should the
interests of the concern at any time require his absence, a
person was to be appointed, in general meeting, to take his
place.
