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Radisson returned to the Bay on the Happy Return, sailed by Captain Bond. On the same ship went the new governor, William Phipps, who had been appointed to succeed Bridgar, and a boy named Henry Kelsey, of whom we shall hear more later. Outlaw, who had been with Ben Gillam, had a commission for the Company and sailed the Success. His mate was Mike Grimmington, also of the old poacher crew.

Hume and Smithsend had been overpowered, fettered, and carried off prisoners to Quebec. Mike Grimmington too, who seems to have been on Hume's ship, was a prisoner. Fourteen of the crew had been bayoneted to death and thrown overboard.

Outlaw did not know the later details of the raid how Hume was to be sent home to France for ransom, and Mike Grimmington was to be tortured to betray the secret signals of the Bay, and Smithsend and the other English seamen to be sold into slavery in Martinique.

Grimmington, Smithsend, Bailey, Kelsey all were for holding out; but d'Iberville's brother, Serigny, came in under flag of truce and bade them think well what would happen if the hundred Indians were turned loose on the fort. Finally the English surrendered and marched out with the honours of war. Grimmington sailed for England with as many of the refugees as his ship, the Dering, could convey.

Then he took ship to England; but there his valour suffered a sudden chill. The Company had refused to honour his bills. They repudiated his drafts, reprimanded him severely, and suspended him from service for several years. Mike Grimmington and Outlaw and the others, who had been shipped down from Nelson to Moose and Rupert, promptly took passage home to England on the Company's yearly ship.

When France and England were again openly at war, Le Moyne d'Iberville was occupied with raids on New England; and during his absence from the Bay, Mike Grimmington, who had been promoted to a captaincy, came sailing down from Nelson to find Albany in the possession of four Frenchmen under Captain Le Meux.

Three frigates were bought and fitted out the Dering, Captain Grimmington; the Hudson's Bay, Captain Smithsend; and the Hampshire, Captain Fletcher each with guns and sixty fighting men in addition to the regular crew. These ships were to meet the enemy sooner than was expected. In the last week of August 1697 the English fleet lay at the west end of Hudson Strait, befogged and surrounded by ice.

D'Iberville had barely time to unlock the Pelican from the death grapple, when the English frigate lurched and, amid hiss and roar of flame in a wild sea, sank like a stone, engulfing her panic-stricken crew almost before the French could realize what had happened. Smithsend at once surrendered the Hudson's Bay, and Mike Grimmington fled for Nelson on the Dering.

It took very little parleying to ascertain that the ship was a poacher, commanded by young Ben Gillam of Boston, son of the Company's captain, come here on illicit trade, with John Outlaw and Mike Grimmington, who later became famed seamen, as first and second mates.

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.