difference between hudsons bay company and north west company (what did they do? and how they NWC and the HBC company operated?
http://en.wikipedia.org/wiki/Hudson's_Bay_Company
and
http://en.wikipedia.org/wiki/North_West_Company
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The Hudson's Bay Company (HBC) and the North West Company (NWC) were both major fur trading companies that played influential roles in the colonization and exploration of North America. While they shared a common goal of profiting from the fur trade, there were some key differences in their operations.
1. Establishment and Expansion:
- HBC: Established in 1670, the HBC was given a royal charter by King Charles II, granting them a monopoly over the fur trade in the Hudson Bay region of Canada. The company focused on trading with Indigenous peoples and establishing fur trading posts along the Hudson Bay coastline.
- NWC: Founded in 1779, the NWC emerged as a competitor to the HBC. It operated primarily in the interior regions of North America, with a focus on the western areas, including the Great Lakes, the Rocky Mountains, and the Pacific Northwest. The NWC relied heavily on adventurous voyageurs and Indigenous partnerships to expand its operations.
2. Trading Methods:
- HBC: The HBC adopted a more centralized and conservative approach to trading. They operated from their forts and trading posts, which were strategically located along rivers and important waterways. They established a command hierarchy with strict regulations for their employees, including the requirement to adhere to a strict code of conduct.
- NWC: The NWC, on the other hand, embraced a more decentralized and entrepreneurial approach. They implemented a system of mobile trading, whereby fur traders and voyageurs traveled extensively, setting up temporary trading posts and relying on local Indigenous communities for supplies and fur collection. This approach allowed for faster and more flexible trading operations.
3. Company Structure:
- HBC: The HBC took on a corporate structure, with shareholders and a board of directors overseeing the company's operations. It had a more hierarchical structure, with positions ranging from laborers to factors (managers) and chief factors (senior managers) at the forts.
- NWC: The NWC, in contrast, operated as a partnership of individual traders, referred to as "wintering partners." These partners made decisions collectively, and profits were shared amongst them based on their investment in the company.
4. Competition and Merger:
- Competition: For over a century, the HBC and the NWC were fierce rivals, engaging in fierce competition for furs, trade routes, and alliances with Indigenous groups. This rivalry sometimes led to conflicts and violent encounters between the two companies' employees.
- Merger: In 1821, due to financial pressures and increased government regulation, the HBC and the NWC decided to merge. The amalgamation resulted in the HBC acquiring most of the NWC's assets, including trading posts, employees, and strategic alliances. This merger effectively ended the competition and created a monopoly in the fur trade, which lasted until the decline of the fur industry in the late 19th century.
Understanding the differences between HBC and NWC involves exploring their historical contexts, examining their trading methods, understanding their company structures, and delving into their competition and eventual merger. This allows for a comprehensive understanding of their distinct operations in the fur trade industry.