based on the profits of the fur trade. Men get promotions through the chief commissioner, and he has always made fitness, rather than seniority, the criterion. Retiring officers are salaried for a term of years, the original pension fund and system having been broken up. Sir Donald A. Smith, the present governor of the company, made his way to the highest post from the place of a prentice clerk. He came from Scotland as a youth, and after a time was so unfortunate as to be sent to the coast of Labrador, where a man is as much out of both the world and contact with the heart of the company as it is possible to be. The military system was felt in that instance; but every man who accepts a commission engages to hold himself in readiness to go cheerfully to the north pole, or anywhere between Labrador and the Queen Charlotte Islands. However, to a man of Sir Donald's parts no obstacle is more than a temporary impediment. Though he stayed something like seventeen years in Labrador, he worked faithfully when there was work to do, and in his own time he read and studied voraciously. When the Riel rebellion--the first one--disturbed the country's peace, he appeared on the scene as commissioner for the Government. Next he became chief commissioner for the Hudson Bay Company. After a time he resigned that office to go on the board in London, and thence he stepped easily to the governorship. His parents, whose home was in Morayshire, Scotland, gave him at his birth, in 1821, not only a constitution of iron, but that shrewdness which is only Scotch, and he afterwards developed remarkable fore-sight, and such a grasp of affairs and of complex situations as to amaze his associates. [Illustration: VOYAGEUR WITH TUMPLINE]