The Company that Created Canada

Originally an economic entity, Canada was birthed by a business

Cover of “The Company: The Rise and Fall of the Hudson’s Bay Empire” by Stephen R. Bown.

Bown, S. (2020).  The Company: The Rise and Fall of the Hudson’s Bay Empire.  Doubleday Canada.  486 pages.

Overview

Fur traders, log runners, loggers, sailors, and explorers.  Roughing it in the woods, getting devoured by black flies, surviving on rations, wild edibles and game, and shivering in shoddy wood structures high in the subarctic, painstakingly waiting for the day to end as you drink away your savings.  Saying that life in early Canada was harsh and dangerous would be an understatement.  Stephen R. Bown, a Canadian historical non-fiction writer and author of many “books on the history of exploration, science, and ideas,” captures the raw, unvarnished energy pulsating throughout this beautiful, expansive country we call Canada in “The Company: The Rise and Fall of The Hudson’s Bay Empire” (2020). 

The book’s purpose is conveniently evident in its title: it’s about the rise and fall of the Hudson’s Bay Company (HBC), a state-backed company involved in the North American fur trade.  The HBC was like many other companies in that it pursued profit, but it was also tasked with finding the fabled route to China.  It was also the British Crown’s “means of tapping private capital to pursue foreign policy” (p. 43), such as decreasing the dependence on Dutch trade in the Baltic Sea, countering French expansion throughout North America, and providing the British Crown with profit.  The HBC had to pay taxes, build good relations with North American locals, not start wars, and build forts for year-round relations with Indigenous people (p. 43-46). 

Bown masterfully recounts the story of how the HBC’s activities have played a significant role in Canada’s history, shaping the geopolitics of the continental-size country between its diverse populations throughout the centuries since 2 May 1670.  Not studying it would mean not understanding Canada.

Key takeaways

Here are some of the lessons I gleaned from this book that I feel are relevant for understanding the success and failure of societies.

Culture and language are essential in business.  French traders were losing the Cree’s business to the English as trade intensified further to the north, closer to the banks of the Hudson Bay.  Because the French could not convince the Cree to trade further south, they invaded the Company’s forts.  In February 1686, Captain Pierre de Troyes attacked Moose Factory at night and managed to gain control within a few hours.  So why is this story important?  The Cree knew of the planned attack but chose not to inform the English since they were offended by English traders breaking cultural trade customs (p. 72-73). 

This event demonstrates that building and maintaining relationships and allies in business and politics requires reciprocity and diligence.  Learning about languages and cultures remains fundamental to conducting business across various cultures, people, and geographies.  So, MBA students, take note: spewing out corporate buzzwords and meaningless jargon, like synergy, evergreen, lean, and agile, will get you nowhere if you do not understand the people with whom you collaborate.  To learn more about the meaninglessness of business lingo, watch and listen to Weird Al’s “Mission Statement.”  As we can see, learning about other languages and cultures is not only personally fulfilling, but it can also open up new business and commercial opportunities.

Indigenous and European livelihoods were transformed for the better when they worked and traded together.  Trapping beavers in the swampy, cold, and wooded Hudson Bay area was quite difficult.  It required patience, knowledge, and skill, until after the Europeans introduced leg hold and steel traps, which enabled trappers to capture dozens of beavers within a single day rather than an entire season (p. 54), explains Bown.  Europeans also introduced valuable tools and materials to the Indigenous people that were either scarce or virtually non-existent in their communities.  For example, ropes, guns, metal (for weapons and knives), cotton clothes (which were easier to clean and came in more colours), cooking pots (p. 44-45), and even frivolous items like beads for decoration.  These items made daily life easier and improved Indigenous living standards (p. 137-138).  And, Of course, status-obsessed Europeans benefitted, too, since they could then have luxurious, soft and warm beaver belts. 

Why is this relevant?  It’s in everyone’s interest to trade since it increases society’s overall well-being.  The Indigenous people were more than content to trade because they were astute enough to recognize the advantages from outside their domains.  It seems, in most cases, trade and exchange make all parties better off.

It pays to be proactive.  Evidence of violence, greed, slavery, cunning, and resourcefulness abound in early Canadian Indigenous history, in which one tribe attempts to gain leverage over another.  The story of a Chipewyan woman named Thanadelthur best exemplifies this point.  For a long time, the Cree were the middlemen of trade between the HBC and other Indigenous people.  The Cree regularly captured and massacred the Chipewyan people, so they viewed them as inferior.  But the Chipewyan eventually had enough of the ill-treatment.  To undercut the Cree, Thanadelthur masterfully cajoled James Knight, an explorer, to build a post in the north near Churchill River, which he constructed in 1717.  She had the social acumen to entice him, as she noticed he would regularly perk up upon hearing of the existence of a yellow metal: gold.  The fort’s presence changed the geopolitical dynamics between Indigenous people.  The Chipewyan became the new middlemen of trade with the Athapaskan-speaking people, who resided further into the interior, and it inflamed tensions with the already present Inuit.  The Chipewyan, being resourceful and cunning, adopted canoes and learned from HBC personnel about how best to prepare pelts for the European consumer, ultimately allowing them to capture a larger portion of trade (p. 96-102). 

Thanadelthur’s story is essential for several reasons.  The most obvious is that societies and individuals must always look for new opportunities and vantage points.  It is easier to negotiate and handle one’s affairs when not entirely reliant on others.  Her story also illustrates how Indigenous North American history is not simplistic.  Indigenous people were clearly just as materialistic as others and did what they could to gain power and dominion over their opponents.  This should not be surprising.  They were like the rest of humanity.

Contrary to popular images, Indigenous people were not homogenous, magical, forest-dwelling people who lived in harmony with the land, animals, and people.  It’s a disingenuous, offensive portrait.  It’s an image of Indigenous people as being naïve, easily divided and conquered by Europeans, even though tribal divisions and hostilities existed before initial contact.  Nuance in new history curriculums is clearly needed.  Thankfully, there are books like “The Company” to inform us.

Merchants are clever, and they may always find a way to overcome trade restrictions.  In the late 1600s, France’s war with England resulted in a glut of furs in Paris and an exodus of Huguenot hatters fleeing to England to avoid persecution.  The result was decreased fur prices in Europe and lower revenues collected with the 25 percent tax in Québec.  To keep fur prices high, King Louis XIV of France in 1697 stopped issuing trade permits and closed many outposts to restrict the supply of beaver pelts.  He also prohibited French colonists from venturing further west from the St. Lawrence River, reducing their ability to establish new trade.  Despite his efforts, his anti-business practices were ineffective.  North American fur traders simply traded further south in Albany rather than in Montréal to avoid the quotas (p. 89). 

The lesson is simple and does not require much elaboration: it is unwise for governing elites to enforce trade restrictions when consumers and producers can efficiently conduct business elsewhere.  Trade restrictions, like arbitrarily high taxes, supply-chain management, and barriers to entry, may only work if one has a monopoly.  Learning to innovate and become more competitive is better than removing hardworking people’s freedoms.

Bureaucratic sluggishness must be avoided at all costs.  The creation of the North West Company by traders from Montréal in 1779 put the HBC on its heels (p. 200-204).  The Nor’Westers, as they were called, were quick and nimble, taking advantage of trade while wintering and not having to await instructions from an elite group elsewhere.  They made decisions locally, enlisted the help of Indigenous people, and provided traders greater discretion with local Indigenous relations, which sometimes created conflict, such as with the sale of brandy and rum and the concomitant smallpox epidemic.

The HBC, meanwhile, grew comfortable and sclerotic.  They were caught off guard, foolishly believing the company charter and London’s political and business elites would protect their monopoly.  The HBC had to pivot – I suppose business lingo is sometimes useful – by keeping dividends low and increasing their reserve of working capital for future conflict.  Additionally, the Company used innovations like York boats which were easier for transportation because they could be rolled on logs when on the ground and use sails when on large lakes (p. 203-204).  The two companies eventually merged in 1821 after decades of competition and violence. 

The lesson here is that governments, businesses, and organizations of all types should never rest on their laurels since competition can encroach suddenly and unexpectedly.  And with new competition means new ways of innovating, whether that means more appropriate best practices or even new technology. 

The pen remains mightier than the sword (in some cases).  For centuries, relationships between Indigenous people and European settlers were mutually beneficial for the most part (p. 43-46).  But the situation changed suddenly when Alexander Mackenzie, an explorer, published his book, “Voyages from Montréal” (1801) (you can read it here at Canadiana.ca).  It was read widely both locally and internationally among influential people.  He believed he was superior to those around him and referred to Indigenous people as savages.  He expected them to dote on him and perform all the necessary duties to ensure a successful, safe, and comfortable voyage as he barked orders and demeaned them; he was clueless that he was entirely reliant on their expertise and kindness.  As Bown explains, Mackenzie relied heavily on local guides and interpreters, so he did not necessarily make any discoveries.  However, he did share his findings with the rest of the world.  Mackenzie despised Indigenous people, language, and culture and was indifferent to their well-being, as evidenced in his writing, and so other Europeans started to feel the same way.  His written work essentially changed perspectives about the northwest from a purpose of trade to one of empire and conquest to prevent American ambitions.  His writings were so influential that even Thomas Jefferson sent people to build infrastructure and make claims to the land of the northwest, though his efforts failed (p. 246). 

It was the beginning of the end of hospitable, mutually beneficial relations between Indigenous and non-Indigenous people.  Sometimes a single, influential voice is all that is needed to upend people’s values and perspectives on long-standing arrangements and institutions.  Societies and individuals must regularly seek alternative views to ensure more well-rounded and comprehensive thinking.  Relying on a single narrative or source is dangerous as it can stifle our critical and analytical thinking.  It is a relevant lesson today in a world of echo chambers and confirmation bias.

Knowing the secrets of the trade makes others obsolete and valued less.  Bown explains how Indigenous autonomy ended when Sir George Simpson became the Governor and chief of the HBC in 1821.  Simpson, a shrewd, racist businessman, sought to keep profits high and undercut Indigenous influence and personal success.  Simpson would open and close outposts to control the supply of beaver pelts, forcing entire communities to relocate.  His letters to London denigrated Indigenous people, convincing the elite they were unnecessary meddlers.  He traded alcohol with them, knowing the adverse effects on the population.  And he understood they were still reliant on European manufactures (p. 337-340).  Though he may have been successful at first, his militant control ruined the historical and cultural Métis institutions.  The Company was despised, competition arose, and it began to wither (p. 406-409).

It’s a profound lesson in both politics between governments and life between colleagues and clients.  Once you acquire the knowledge and know-how of anything, the contributions of others become obsolete.  We must tirelessly work for leverage and never become too comfortable with long-standing, favourable arrangements.  However, excessive control, manipulation, and abuse of others will not work to your advantage in the long run.  Treat others with respect, and they will return the favour.

We may not accomplish our goals, but we can learn a lot when pursuing them.  Samuel Hearne’s (1745-1792) expeditions through inland and northern Canada are excellent case studies on why people need to bravely pursue their goals.  He intended on finding the legendary copper mines and the fabled northwest passage but ultimately failed.  Despite his failure, he witnessed, experienced, and learned more about the land and its people than any European before him.  He learned of new cultures, languages, environments, and tribes, such as the Dene peoples.  He became the first European to see the Arctic Ocean and was the first to realize that North America was much more expansive than initially thought (p. 179-178; 195-196).  His journal entries are a treasure trove for anyone interested in history, adventure, and exploration (you can find them on Amazon).

At some point, we will all likely fail in our personal pursuits, but we will inevitably learn along the way.  It pays to be bold, ambitious, and first.  Individuals, organizations, governments, and societies must encourage relatively free experimentation and pursuits into the unknown.  The fear of failure should not discourage anyone.  We do not know until we try.

Other fascinating topics in “The Company”

Brown explores several intriguing topics in the book that include:

• Geographic impediments to trade (p. 106-119).

• Mutually beneficial marriage and sexual relations between Indigenous and European peoples (p. 123).

• Democratic elements of Indigenous trade (p. 132).

• The role of disease and horses in shaping North American demographics and cultural practices (p. 148-154).

• Notable Black figures in Canadian history like Sir James Douglas (p. 393-397).

• How clever Indigenous tribes, like the Ojibwe, perfected European canoe craftsmanship (p. 202), and how the Assiniboine and Plains Cree remained relevant as hunters for Europeans by controlling the bison and environment (p. 202-203).

• The physical and mental fortitude of the Nor’Westers as they ventured into far off, unknown (to Europeans) and dangerous lands (p. 212-213); what they endured should inspire many today to toughen up when the going gets rough.

• The poor leadership techniques (what not to do) of Captain Johnathan Thorn (p. 252-255).

• The effective leadership techniques (what to do) of Kootenae Appe, a Piegan man residing just east of the Rockies (260-263).

• The role and influence of westward travelling American pioneers had on The Company’s colonial ambitions (p. 360-361; 373-378).

And too many other things to list here. 

Who should read this book?

The adventures and explorations, travels and travails, and obstacles and opportunities of Canada’s earliest risk-takers come to life in Stephen R. Bown’s masterful storytelling.  A formidable land to place one’s roots, the story of Canada and The Company that made it will enthral and exhilarate any adventure-seeker – or anyone interested in reading of adventure in the comfort of their warm home.

There are far too many lessons and patterns the modern reader can learn from this timely and vital piece on Canadian history.  Unsurprisingly, anyone interested in North American history will enjoy this book.  But “The Company” is also the perfect companion for anyone ravenous to learn more about diplomacy, business, crown and state-backed corporations, empire, exploration, and Indigenous politics. 

Buy the book wherever you like to buy books, and immerse yourself into the rough-and-tumble lives of early Canadians today.