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 the disturbed state of the American settlers in the Oregon country. Their attitude was antagonistic to the Hudson's Bay Company. He persuaded Ewing Young, leader of a hostile group, to cease the operation of a still erected to furnish whiskey to trappers, and organized a company to come to California to purchase cattle to be driven north to the settlements on the Willamette. Dr. John McLoughlin was a large stockholder in the venture, which under the leadership of Young and Philip Leget Edwards, purchased 800 head of cattle and drove them through the Sacramento valley and over the mountains to Oregon, arriving in 1837 with 600 surviving.

Previous to 1837 the only actual trade of the Hudson's Bay Company with California had been for cattle and wheat on the north side of San Francisco Bay. The cattle purchased were driven to Oregon, and a ship came once a year to carry away wheat. The price of beaver was $3 per pound throughout the coast. An American ship arriving, the company's agent would immediately purchase every pound in the hands of trappers or natives. The company, if necessary, would purchase at a higher rate.

The business in California after 1835, as represented by the dealings of the one company active in coastal trade, met with opposition which grew menacing with the passing years. The Russians were rivals in securing furs, and in 1838 La Framboise reported difficulties over the purchase of horses from them, asking to purchase others of Vallejo. In 1840, John Sutter, who had come to California, by way of Oregon, Honolulu, and Sitka, the year previous, wrote to Fort Vancouver forbidding the return of La Framboise. Warnings meant little to La Framboise, who was a seasoned trader, interpreter, diplomat, at times a spy, and at all times a leader and enemy to be feared. No man could rival him in knowledge of trails and tribes.

Negotiations for the purchase by the Hudson's Bay Company of the Russian America Company's holdings at Fort Ross fell through, owing to the high price asked. Sutter purchased these