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The Hampshire, under Captain Fletcher, with fifty-two guns and sixty fighting men, first came up within range and sent two roaring cannonades that mowed the masts and wheel-house from the Pelican down to bare decks. At the same time Grimmington's Dering and Smithsend's Hudson's Bay circled to the other side of the French ship and poured forth a pepper of musketry.

The rest, led by Bailey and Smithsend, marched overland south to the fort at Albany. Grimmington, with the Dering, had reached the fort in safety. Smithsend's captive ship, the Hudson's Bay, had been wrecked with the Pelican, but he himself had escaped to the fort. The loss of Nelson fell heavily on the Hudson's Bay Company. Their ships were not paid for; dividends stopped; stock dropped in value.

Rumours of these raids Smithsend heard in his dungeon below Château St Louis; and he contrived to send a secret letter to England, warning the Company. In England the adventurers had lodged 'Parry' in jail on a charge of having 'damnified the Company. Smithsend's letter of warning had come; but how could the Company reach their forts before the ice cleared?