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Founded in 1779, the North West Company (NWC) dominated the fur trade sector from the late 18th to the early 19th century in Canada. Its explorations of North America led to the mapping of many areas that were previously unknown to French and British colonists. After the British Conquest, Montreal's French-speaking merchants were largely replaced by Anglo-Americans, Englishmen and Scotsmen. Many independent merchants viewed it as an opportunity to enter the fur trade. In 1779, the NWC was created by a group of Montreal merchants, mostly of Scottish origin, who wanted to reduce competition amongst themselves and pool their resources to compete with the Hudson's Bay Company (HBC) in the fur trade. It was originally divided into 16 shares, owned by 9 different firms: McTavish & Co., Wadden & Co., Ross & Co., Oakes & Co., Benjamin & Joseph Frobisher, Todd & McGill, McGill & Paterson, McBeath & Co. and Holmes & Grant. This agreement was renewed periodically between 1780 and 1783.

The tenuous partnership lasted until 1783, when some of the NWC shareholders entered into a more formal contract. The signatories were Benjamin and Joseph Frobisher, Simon McTavish, Robert Grant, Nicholas Montour, Patrick Small, William Holmes, Peter Pond and George McBeath. Montreal's Beaver Club was also founded at around this time by several members (1785). However, the 1783 reorganization led to increased competition with another Montreal firm, Gregory, McLeod & Co., which was supported by John Ross, one of the original NWC partners. Following Ross' death under suspicious circumstances involving Peter Pond, an explorer and NWC partner, the rival companies merged in 1787.

From 1787 to 1804, the NWC extended its influence beyond the very profitable region of Lake Athabasca, where it was already well established. Explorers associated with the NWC, such as Alexander Mackenzie, crossed the Rockies to expand the known trade routes. They established several trading posts throughout the Northwest area of the continent. This expansion was partially motivated by the signing of Jay's Treaty in 1794. This agreement to settle the boundary between British and US territory blocked Canadian access to Grand Portage on Lake Superior, as the area became part of the United States.

At the same time, the NWC faced increasing competition in the Northwest from two new companies, the XY Company (Forsyth, Richardson & Co.) and Parker, Gerrard and Ogilvy. In 1800, both of the NWC's rivals merged under the name of the XY Company. This period was also marked by internal tension between the NWC's Montreal partners and "winterers" (partners who would winter over in the Northwest), with some of the latter joining the competition. After the 1804 death of Simon McTavish, who was a leader in the company's first years of existence and the head of the Montreal partners, the NWC took over the XY, reducing some of the tension that was hurting its business.

From 1804 to 1811, NWC partners Simon Fraser and David Thompson continued exploring Western Canada, once again expanding the company's area of operations and enabling it to stay ahead of the HBC. However, the long rivalry between the two fur trading giants drove the HBC to grant land to Thomas Douglas, the Earl of Selkirk, in 1811. Douglas established the Red River Colony right in the middle of the NWC's transportation and supply network, leading to disputes between the company's members and colonists. On June 19, 1816, the Battle of Seven Oaks between the two factions left 21 dead. A month later, the Earl of Selkirk and his men captured Fort William, the main NWC trading post.

These events, the associated legal problems and the increasingly higher cost of engaging in the fur trade from sea to sea exacerbated old tensions between the Montreal partners and winterers. In 1820, the two companies sent representatives to London to negotiate with the British government. The winterers, who wished to reach an agreement with the HBC, were excluded from these discussions. The Montrealers, negotiating from a position weakened by internal and external tensions, gave in to the demands of the HBC. The two companies merged in July 1821, restoring the Hudson's Bay Company's monopoly of the fur trade and marking the end of the North West Company. Although it was supposed to share the profits equally and be run by a joint board, the new entity was quickly dominated by HBC partners and former NWC members became simple shareholders.

Sources:

Archives of Manitoba. (n.d.). North West Company. Retrieved from: http://pam.minisisinc.com/scripts/mwimain.dll/144/PAM_AUTHORITY/AUTH_DESC_DET_REP/SISN%201022?sessionsearch

Brown, J. (2007-2015). North West Company. In The Canadian Encyclopedia. Retrieved from: https://www.thecanadianencyclopedia.ca/en/article/north-west-company