
304 • NORTH WEST COMPANY
competitors toward association. Labor costs increased with distance 
traveled. The arrangement was remarkably transcontinental in scope.
The NWC was based in Montréal for its banking, shipping, and 
warehousing, and there its principal capitalists lived; they had part-
ners and agents in London. The interior partners and clerks profited 
directly from their own energetic activities, a situation quite different 
from that of rival Hudson’s Bay Company (HBC), where those who 
kept posts were on fixed incomes. In turn, Michilimackinac, Grand 
Portage, and beginning in 1807, Fort William (now Thunder Bay) 
became depots and places for annual rendezvous, where plans for 
exploration were considered and sometimes authorized.
The need for new trading areas prompted company-sponsored 
exploration as well as specific trading ventures into hitherto unex-
ploited territory. One such area was Athabasca, where Peter Pond and 
then Alexander Mackenzie pushed the trade as pioneers. A second, 
in succession to Athabasca, was the Mackenzie River, where William 
Wentzel opened posts. Yet a third was New Caledonia (in central 
British Columbia), where Simon Fraser led parties to examine riv-
ers and build various posts. The fourth area was the Columbia River 
basin, explored by David Thompson, completing his work by 1811. 
In these four areas, the North West Company engaged in vigorous 
development, partly pushed forward by the necessity of getting new 
sources of furs (and trading their own wares) and partly because they 
had to expand to be competitive. Economy in operation necessitated 
cheaper transportation, and this spurred the Nor’Westers to send 
ships from England to the mouth of the Columbia, beginning with the 
Isaac Todd, which opened NWC direct trade to China.
Various traders examined rivers and tributaries, most notably 
Donald Mackenzie and Alexander Ross in the Snake River country 
of the Columbia basin in the years before the union of the NWC 
with the HBC. Such exploration went hand in hand with commer-
cial development, and traders invariably had to look after costs of 
exploration. The zeal of individual traders for exploration counted 
mightily in the resulting discoveries. These explorers used native 
advice and, on numerous occasions, Indian maps, a few of which 
survive. Scientific instruments for astronomy and the ability to take 
longitude by chronometers and sightings made possible getting au-
thentic longitudes and latitudes. Thus Thompson, sent in 1798 to the 
10_506_Gough.indb   30410_506_Gough.indb   304 9/28/10   5:36 AM9/28/10   5:36 AM