In twenty-five years they had extended their trade from Edmonton House, near the Rockies, as far as Rainy Lake; they had made Cumberland House the centre of their operations in the interior, and had taken a strong hold of the fertile region on the Red and Assiniboine Rivers, of which to-day the city of Winnipeg is the centre. Undoubtedly the severe competition between the Montreal merchants and the Hudson's Bay Company greatly diminished the profits of both. According to Umfreville, the Hudson's Bay Company business was conducted much more economically than that of the merchants of Montreal. The Company upon the Bay chiefly employed men obtained in the Orkney Islands, who were a steady, plodding, and reliable class. The employés of the Montreal merchants were a wild, free, reckless people, much addicted to drink, and consequently less to be depended upon. The same writer states that the competition between the two rival bodies of traders resulted badly for the Indians. He says: "So that the Canadians from Canada and the Europeans from Hudson Bay met together, not at all to the ulterior advantage of the natives, who by this means became degenerated and debauched, through the excessive use of spirituous liquors imported by these rivals in commerce." One thing at any rate had been clearly demonstrated, that the inglorious sleeping by the side of the Bay, charged by Dobbs and others against the old Company, had been overcome, and that the first quarter of the second century of the history of the Hudson's Bay Company showed that the Company's motto, "Pro Pelle Cutem," "Skin for Skin," had not been inappropriately chosen. CHAPTER XIV. THE NORTH-WEST COMPANY FORMED. Hudson's Bay Company aggressive--The great McTavish--The Frobishers--Pond and Pangman dissatisfied--Gregory and McLeod--Strength of the North-West Company--Vessels to be built--New route from Lake Superior sought--Good-will at times--Bloody Pond--Wider union, 1787--Fort Alexandria--Mouth of the Souris--Enormous fur trade--Wealthy Nor'-Westers--"The Haunted House." The terrible scourge of smallpox cut off one-half, some say one-third of the Indian population of the fur country. This was a severe blow to the prosperity of the fur trade, as the traders largely depended on the Indians as trappers. The determination shown by the Hudson's Bay Company, and the zeal with which they took advantage of an early access to the Northern Indians, were a surprise to the Montreal traders, and we find in the writings of the time, frequent expressions as to the loss of profits produced by the competition in the fur trade. The leading fur merchants of Montreal determined on a combination of their forces. Chief among the stronger houses were the Frobishers. Joseph Frobisher had returned from his two years' expedition in 1776, "having secured what was in those days counted a competent fortune," and was one of the "characters" of the commercial capital of Canada.