Pacific Fur Company

John Jacob Astor was a merchant of New York City and founder of the American Fur Company. To create a chain of trading stations spread across the Rocky Mountains to the Pacific Northwest, he incorporated an AFC subsidiary, the Pacific Fur Company. The commercial venture was originally designed to last for twenty years. Unlike its major competitor the Canadian owned NWC, the Pacific Fur Company was not a Joint-stock company. Capital for the PFC amounted to $200,000 divided into 100 shares individually valued at $2,000 and was funded entirely by Astor. The American Fur Company held half of the stock and the other half divided among prospective management and clerks. The chief representative of Astor in the daily operations was Wilson Price Hunt, a St. Louis businessman with no outback experience who received five shares. Each working partner was assigned four shares with the remaining shares held in reserve for hired clerks. Fellow partners in the venture were recruited from the NWC, the members being Alexander McKay, David Stuart, Duncan McDougall, and Donald Mackenzie. Astor and the partners met in New York on 23 June 1810 to sign the Pacific Fur Company's provisional agreement.

To establish the fledgling PFC trade posts in the distant Oregon Country, Astor's plan called for an extensive movement of large groups of employees overland following the route of the Lewis and Clark Expedition and navally by sailing around Cape Horn. The venture was planned on methods used in the AFC for the collection of fur pelts. Complements of employees (later called "Astorians") would operate in various parts of the region to complete trapping excursions. Outposts maintained by the PFC would be freighted necessary foodstuffs and supplies by annual cargo ships from New York City. Trade goods such as beads, blankets, and copper would be exchanged with the local Native Americans for fur pelts.

Ongoing supply issues faced by the Russian-American Company were seen as a means to gain more furs. Cargo ships en route from the Columbia were planned to then sail north for Russian America to bring much needed provisions. By cooperating with Russian colonial authorities to strengthen their material presence in Russian America, it was hoped by Astor to stop the NWC or any other British presence to be established upon the Pacific Coast. A tentative agreement for merchant vessels owned by Astor to ship furs gathered in Russian America into the Qing Empire was signed in 1812. Company ships then were directed to sail to the port of Guangzhou, where furs were then sold for impressive profits. Chinese products like porcelain, nankeens and tea were to be purchased; with the ships then to cross the Indian Ocean and head for European and American markets to sell the Chinese wares.