The capital was furnished by himself he, in fact, constituted the company; for, though he had a board of directors, they were merely nominal; the whole business was conducted on his plans and with his resources, but he preferred to do so under the imposing and formidable aspect of a corporation, rather than in his individual name, and his policy was sagacious and effective.
As the Mackinaw Company still continued its rivalry, and as the fur trade would not advantageously admit of competition, he made a new arrangement in 1811, by which, in conjunction with certain partners of the Northwest Company, and other persons engaged in the fur trade, he bought out the Mackinaw Company, and merged that and the American Fur Company into a new association, to be called the "Southwest Company." This he likewise did with the privity and approbation of the American government.
By this arrangement Mr.Astor became proprietor of one half of the Indian establishments and goods which the Mackinaw Company had within the territory of the Indian country in the United States, and it was understood that the whole was to be surrendered into his hands at the expiration of five years, on condition that the American Company would not trade within the British dominions.
Unluckily, the war which broke out in 1812 between Great Britain and the United States suspended the association; and, after the war, it was entirely dissolved; Congress having passed a law prohibiting the British fur traders from prosecuting their enterprises within the territories of the United States..