Make any great changes in their
business, or embark in new undertakings, if likely to affect
injuriously the incomes of the officers on the active list, or the
interests of those on retirement.
"One mode of removing this obstacle would be to ascertain the value of
a retired interest, and to give a money compensation to each officer on
his entering into an agreement to consent to the abrogation of the deed
poll. This would involve an outlay of money, but would also be
productive of a considerable subsequent annual saving.
"The eighty-five shares belonging to the wintering partners are, at
this date, held as follows: -
15 chief factors 30 shares
37 " traders 37 "
10 retired chief factors 13 "
10 " " traders 5 "
- -
85 "
===
"As regards the shares held on retirement, some of the interests have
nearly run out, and none of the parties have any voice in the business.
"The value of a 1-85th share has been, on the average of the last
thirteen outfits, which have been wound up (1846-1858), about
408l. At that rate a chief factor's retired interest would
amount to 3,264l., and a chief trader's to 1,632l., less
discount, supposing payment to be made at once, instead of its being
spread over nine or ten years. On the other hand, the invariable custom
of the service has been to allow every officer one or more year's
furlough on retiring, which has come to be considered almost a right;
when more than one year has been granted, it has been by special
favour. Adding one year's furlough, a factor's retired allowance would
be 4,080l., and a trader's 2,040l. The discount being
taken off, to render them equal to cash, would make a factor's
allowance about 3,000l., and a trader's 1,500l.
"The cost of commutation, on the above scale, would be -
15 chief factors, at 3,000l L45,000
37 " traders, at 1,500l 55,500
18 shares held on retirement, about 14,000
- - - -
L114,500
========
"Without allowing a year's furlough, the above amount would be reduced
about one-sixth.
"The outlay would only be called for in the case of such officers as
are already retired, and of such as under a new agreement might not be
re-engaged. The retired interest of the officers who might enter into a
new engagement would be provided for in the revised deed poll.
"As a set-off for the outlay on commutations would be a large reduction
in the pay of officers, to be hereafter noticed, and the Company would
also receive actual value for their money; and on buying out the
wintering partners they would become possessed of their 4/10th share of
the profits of the trade.
"Under the present organization the pay of officers in the service is
about as follows: -
Governor-in-Chief L 2,000
16 chief factors 12,000
35 chief traders 14,000
Clerks, about 10,000
- - - -
L38,000
=======
"The following would probably prove a more efficient staff: -
Governor-in-Chief L 2,000
Lieutenant-Governor 1,250
4 councillors, at 800l 3,200
25 chief traders, at 300l 7,500
100 clerks, at various salaries, about 10,000
- - - -
L23,950
=======
"The saving of 14,000l. per annum would soon reimburse the
Company's outlay in buying up the present interests of the factors and
traders.
"The system of making the pay of officers (of the upper grade)
dependent on the success of the business, has worked well, and might be
advantageously continued, in a modified form, to be hereafter noticed.
"The duties of the officers of the proposed reduced staff would be
adapted to the existing distribution of the territory into departments
and districts, which are as follows: -
"There are four main divisions - the Northern, Southern, Western, and
Montreal Departments, roughly bounded as follows: - the 'Western'
embraces all the country west of the Rocky Mountains; the 'Northern' is
composed of the country east of the mountains, as far as Lake Winnipeg
and Lac la Pluie, and from the American frontier to the Arctic Sea; the
'Southern' embraces the southern and eastern shores of Hudson's Bay;
and the 'Montreal' extends from Lake Superior down the Gulf of St.
Lawrence to Labrador. These departments are divided into districts, and
in each district are several posts. The limits of districts are fixed
by local peculiarities; but commonly embrace some large river, on which
the various stations are planted - such, for example, as the McKenzie
and the Saskatchewan. There are twenty-three districts on the east side
of the mountains; to the west such subdivision of the business is now
scarcely practicable, and is being abandoned. To proceed to the duties
of the officers.
"The Governor-in-Chief would fulfil his present large functions, and be
the medium of communication between the Company and their officers in
the country.
"Under the present system the Governor is supposed to maintain a
personal supervision of the whole service. This is practically
impossible, the country being too large to enable him to travel over
more than a limited section of it in each season. To relieve him of
that heavy duty, and at the same time to maintain a real and close
personal inspection, one of the four councillors might be stationed in
each department, of which, in the absence of the Governor, he would be
the chief officer, and held responsible for all local details, and the
various posts in which he should periodically inspect and report upon.
Once, or oftener, in each year, a meeting of the Governor and the four
councillors should be held, at any time or place most convenient - say,
Fort Garry, Montreal, or elsewhere.
