Summary
The XY Company was a Canadian fur trade enterprise that was formed in Montreal in 1797 by a group of men that were disenchanted with Simon McTavish’s leadership of the NorthWest Company. They were in direct and sometimes rabid competition with the NorthWest Company who labeled their packs NW; hence the new group called themselves by the two letters that come after W. Following a breakdown in the North West Company's negotiations to renew their charter, some NWC dissidents formed their own company. Alexander Mackenzie, the NWC's hero explorer, agreed to stay with the NWC for three years before joining the XY company. The economic competition during this time was accompanied by personal vendettas. Rivalry's were intense, and the use of liquor in the trade rose sharply, becoming a chief instrument of the rival companies in dealing with the Indigenous and Metis traders. Following the death of McTavish on July 6, 1804, the XY company and the NWC negotiated a coalition, creating a newly powerful and monopolistic North West Company.
Implications
The forming of the XY Company sparked a decade of unchecked competition between traders and inter-ethnic warfare over control of this trade. This competition peaked social pathologies, particularly alcoholism, violence, and suicide, on the Plains. As alcohol became increasingly popular as a trading tool during this time, problems with abuse began to emerge. Alcohol was used to attract traders to specific company posts, and money and time was lost trying to spoil, bully and abuse locals and rivals. For many Indigenous and Metis traders, more time was spent meeting traders at posts, often located at the mouths of rivers, which modified traditional habits of many families, as well as caused displacement for a number of them. New forms of social organizations emerged, such as captains and middlemen working at specific posts ensuring the smooth running of the trade operations. Please see database entry on the use of alcohol as a trading tool for further information on this subject.