De Monts, however, was unable to bear the expense of this undertaking alone, and he consequently formed a company, composed of merchants of Rouen, La Rochelle and other towns.  To further the enterprise Henry IV diminished the duty on merchandises exported from Acadia and Canada, and granted to the company the exclusive privilege of fur trading for a period of ten years, “from Cape de Raze to the 40 deg., comprising all the Acadian coast, Cape Breton, Baie des Chaleurs, Perce Island, Gaspe, Chisedec, Miramichi, Tadousac and Canada River, from either side, and all the bays and rivers which flow within these shores.”

Acadia of that day was not confined to the peninsula of our own time, called Nova Scotia.  It included that part of the continent which extends from the river St. John to the Penobscot.  These boundaries were the cause of long quarrels and fierce and bloody wars between England and France until they were finally settled by the Treaty of Utrecht.  In the early part of April, 1604, the king’s proclamation confining the fur trade to de Monts and his associates was published in every harbour of France.  Four ships were lying at anchor at Havre de Grace, ready to sail, and one hundred and twenty passages had been secured in two of the ships.  Pont-Grave commanded one of the vessels of one hundred and twenty tons burthen, and another vessel of one hundred and fifty tons was under the charge of de Monts, who had taken on board Jean de Biencourt, Sieur de Poutrincourt, a gentleman of Picardy, Samuel Champlain, some Catholic priests and some Protestant ministers.  Poutrincourt was going to America with the intention of residing there with his family.  He was a good Catholic and a loyal subject.  Champlain was attached to de Monts’ expedition as geographer and historian.

The rendezvous had been fixed at Canseau, but de Monts proceeded directly to Port au Mouton on the Acadian coast, where he decided to await the arrival of Pont-Grave.  In the meantime Champlain explored the country from Port au Mouton to Port Sainte Marguerite, now called St. Mary’s Bay.  This occupied a whole month.  He also named Cape Negre, Cape Fourchu and Long Island.  Champlain reported to de Monts that St. Mary’s Bay was a suitable place to establish a settlement, and, following this advice, the lieutenant-general proceeded with Champlain to this bay, and further explored the Bay of Fundy, or French Bay.  They soon perceived the entrance to another splendid port, which is now known as Annapolis Bay, or Port Royal.

Notwithstanding the authority of Lescarbot, Champlain was the first to give this place the name of Port Royal, for he says himself, “I have named this harbour Port Royal.”  When de Monts named the place La Baie Francaise, Champlain did not hesitate to give to his chief the merit which he deserved.

Three rivers flow into this splendid harbour:  the Riviere de l’Equille, so called from a little fish of the size of our eperlan or lancon, which is found there in large quantities; the river named St. Antoine by Champlain, and a stream called de la Roche by Champlain, and de l’Orignac by Lescarbot.