Letter from Vilhjalmur Stefansson to Fred Payzant, 31 August 1921

^ 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 recognition 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 company 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.

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As you have been in the North, you have more idea than most as to what may possibly be done up there. I shall do nothing to urge you to put money into the Company but, in case you should wish to buy some shares, you may now if you like take the matter up with the Company direct. The address is Credit Foncier Building, Vancouver, B.C. Mr. A. J. T. Taylor, of the Taylor Engineering Company, whose offices are in that building, is Vice-President of the Stefansson Arctic Exploration and Development Company.

This year we have sent North a small party. They will sail on a gasoline schooner from Nome during the next few days. The coming winter they will engage in trapping foxes and hunting polar bears and next summer they will hunt walrus. The profits from these activities should give us handsome interest on our money. However, this is not the main purpose of the company. I am hoping to get a lease of the island where they are operating. We will then stock the island with reindeer and engage also in whatever profitable activities seem feasible.

The office expenses in Vancouver are almost negligible and the entire expenses of the Company are for these northern operations and for a trip which I shall have to make to England this winter on behalf of the Company to secure the necessary leases. I have already spent practically all the money I have and shall have to sell three or four thousand dollars worth of shares to cover the further expenses of operation up to next fall. For this reason we are now willing to sell to anyone who cares for them shares up to the limit of fortynine per cent of the entire stock issued. As said above, it is my desire to keep in my own hands fifty-one per cent.

Mr. F. A. Payzant, Department of the Naval Service, Radiotelegraph Branch, Office of the District Superintendent, Victoria, B. C.