At the end of the last century, or the beginning of this, Mr. Ellice's father, as Mr. Ellice stated, "had supplied a great part of the capital by which the whole north-west trade was conducted." Profitable trading brought division of interests; and, in addition to smaller swarms from the parent hive, a new organization, called the "X. Y. Company," or "Sir Alexander Mackenzie and Company," carried on trade in competition with the original "North-West Company of Canada." Mr. Ellice became connected with this "X. Y. Company" in 1805. The leading spirit of the North-West Company was Mr. McGillivray: and Mr. McGillivray and Mr. Ellice were, as a rule, cordial allies. Two leading firms engaged in the fur trade were McTavish, Fraser & Co., and Inglis, Ellice & Co. Competition raged amongst these Canadian interests, and between them and the Hudson's Bay Company, whose affairs were administered from England. The business was carried on, therefore, with great extravagance. The Indians were tempted and corrupted by strong drink. Frequent collisions took place between the Indians and the whites, and everything grew worse till 1811. In 1811 Lord Selkirk joined the Hudson's Bay Company. He became not only a stockholder in the Company, but took great interest in the trade; and he was the proprietor of a large tract of territory on the Red River, acquired from the Hudson's Bay Company under a deed dated 12th June, 1811. In this territory, he made settlements for the purposes of agriculture. The conflict of interests between the Canadian fur traders and the Hudson's Bay Company became more and more violent, and ended in bloodshed. Finally Lord Selkirk, in virtue of his assumed powers as a magistrate, seized Mr. McGillivray, of the North-West Company, at Fort William, at the head of Lake Superior, and the whole of his property. The confusion and outrage became so great that Canada became alarmed, and a Mr. Coltman was sent up as Commissioner. Mr. Coltman reported, and made a recommendation that, to restore peace and order, some attempt should be made to unite the interests of the various fur traders in the country. In the meantime the Hudson's Bay Company ceased to pay dividends, and the other companies were almost bankrupt. At this moment Mr. Ellice, by great tact, and force of will, succeeded in uniting all the conflicting combinations; and from that time onwards the fur trade has been carried on under the Charter of the Hudson's Bay Company, extended by licenses, from time to time renewed, of exclusive trade in the North-West and in the Pacific States, including Vancouver's Island. Out of these fusions arose the Puget Sound Company, created to utilise, cultivate, and colonise the Pacific territories, over which licenses to trade had been given to the Hudson's Bay Company.