stefansson-wrangel-09-06-132-001

1921. Payzant

August 31st, 1921 - Note Date

Dear Mr. Payzant:

Your letter of July 1st, addressed to the Vancouver office
of the Stefansson Arctic Exploration and Development Company, was not
replied to from the office because at that time we had no intention
of selling any shares. They forwarded the letter to me. I intended
to make a brief acknowledgement but at the time I was on an extensive
lecture journey and the matter was overlooked. I am just now back
to my office and, in going over several hundred unanswered letters,
I have come upon yours.

With reference to your application for five shares in the
Company, the following will be of interest:

All the expenditures of the Company so far have been from
money furnished by myself. I should like to put up all the money
if I could, but I am determined, at any rate, to keep the operation
of the Company within the limits possible without admitting into it
more than forty-nine per cent of capital belonging to others than
myself. For this there are two reasons: One is that I am here
attempting to capitalize the same idea for the western part of the
arctic regions which I was compelled to surrender to the Hudson's
Bay Company, so far as the eastern part of the Arctic is concerned.
As you may have read, there has been organized in Winnipeg the
Hudson's Bay Reindeer Company, Ltd. In this company the Hudson's
Bay Company holds all the shares except sofew alloted to me in recog-
nition for my having furnished the idea upon which the company was
based. They are unwilling to sell me any more shares in the company
beyond a few they agreed to sell me at the inception, which agreement
to sell was a part of my compensation. I have organized the new com-
pany with the hope of profiting personally in the west where the
profits, so far as the eastern company are concerned, will go mainly
to the Hudson's Bay Company.

My second reason for desiring to keep control is that, in
the main, any other subscribers to the company will be friends of
mine. We do not expect to lose money but in case there is a loss
I want to feel that I have been risking and losing the larger part.
This I think should keep any possible loser from feeling that he had
been intentionally misled or badly treated.