Company Suffers from the Rivalry of Canadians -- Cumberland House built -- Debauchery and license of the Rivals -- Frobisher Intercepts the Company's Indians -- The Smallpox Visitation of 1781 -- La Pérouse appears before Fort Prince of Wales -- Hearne's Surrender -- Capture of York Fort by the French -- The Post Burned and the Company's Servants carried away Prisoners. The Company was not immediately advised of the ruinous proceedings of the Montreal traders by its governors at York and Churchill. But at length the diminution of trade became marked. The Indians continued to bring in reports of other white traders speaking English, who intercepted them and gave them trinkets and rum in exchange for their furs. They declared they were conscious of having made a bad bargain in not continuing onward to the Company's posts, but what could they do? "The _Bostonnais_[77] was cunning and he deceived the Indian." At last, in view of this, it was felt that further delay were folly. [Sidenote: Cumberland House built.] In the spring of 1773 instructions were sent out to Governor Norton to despatch Hearne westward and establish a post in the interior. By this time the rival Canadian traders had carried the trade beyond the French limits, although, for reasons to be disclosed, all their activity was in vain, so far as material results either to themselves or their employers or capitalists were concerned, not to mention the aborigines themselves. Hearne hit upon what he considered a good site for the new post at Sturgeon Lake, on the eastern bank, in latitude 53°, 56 and longitude 102°, 15. The post prospered almost from its foundation. The neighbouring tribes found that here were to be procured a larger and better assortment of goods than the Canadians brought them, and frequented it in preference.[78] For several years now a trade with the Indians had been carried on in the footsteps of the French license-holders. [Illustration: VISIT TO AN INDIAN ENCAMPMENT.] What was to be expected when the character of the Montreal traders themselves, and the commerce they prosecuted, was considered, soon happened. This army of half-wild men, armed to the teeth, unhampered by legal restraint, constantly drinking, carousing and quarrelling amongst themselves, gradually spread over the north-west, sowing crime and anarchy wherever they went. The country they traded in was so distant, and their method of transportation so slow, that they were fortunate if they reached their winter quarters without leaving the corpses of several of their number to mark their path.