What may be called the first chapter in the history of New France was now drawing to a close. In 1621 the Duke of Condé had, with the royal approval, transferred the lieutenant-generalship to the Duke of Montmorency for a consideration of eleven thousand francs. Some changes were at the same time made in the organization of the trading company. In 1625 Montmorency in turn passed over the office to his nephew, Henri de Lévis, Duke of Ventadour. These changes in no way improved the situation of the settlement at Quebec which, under all managements, was consistently starved and kept down to the level of a precarious trading-post. The French during these years were more and more losing influence with their Indian allies, the Hurons and Montagnais, whose attitude at times became very menacing, and who actually committed several murders for which it was impossible to bring them to punishment. The chief reason for the change of temper on the part of the natives was that they found they were being systematically cheated by the French traders, who beat them down to the lowest price for their furs, and charged them the highest price for commodities sold. A Récollet writer tells a story of an Indian chief which places the character of the red man in a much more favourable light than that of the civilized Europeans with whom he was dealing. The chief, at the request of some of his people, was begging one of the agents of the company to treat them with a little more fairness and humanity. The agent, after considerable discussion, offered the chief to do business with him personally on more liberal terms, but said he could not make any change as regards the other Indians. "You are insulting me then," said the chief, "for if I were to consent to such an arrangement I should deserve to be hanged by my own people. I am their captain; it is for them I am speaking, not for myself."
Things had reached such a pass that Champlain thought it necessary to speak very plainly to the home authorities. Cardinal Richelieu, who was at this time at the head of affairs in France, and specially in charge of the maritime interests of the kingdom, determined on what he hoped would be a radical measure of reform, namely the formation of a company on a much wider basis than any preceding one, and consisting of persons of higher mark and responsibility, who should hold their powers directly from himself. The edict establishing the company, the legal name of which was the Company of New France, but which was afterwards more commonly known as the Company of the Hundred Associates, bore date the 29th April 1627. The preamble set forth in forcible terms the lamentable failure of all the previous trading associations to redeem their pledges in the matter of colonization; and the new associates were, by the terms of their charter, bound in the most formal and positive manner, to convey annually to the colony, beginning in the following year, 1628, from two to three hundred _bona fide_ settlers, and in the fifteen following years to transport thither a total of not less than four thousand persons male and female. The settlers were to be maintained for three years, until they could get their land under cultivation, and then for one season till they had reaped their crops. Provision was also to be made for the maintenance of a sufficient number of clergy to meet the spiritual wants both of the settlers and of the native population. In consideration of these services all French possessions between Florida and the Arctic Circle, and from Newfoundland as far west as the company should be able to possess the land, were handed over to them in absolute sovereignty, saving only the supreme authority of the French king. They had, of course, a complete monopoly of trade, with the sole exception of the cod and whale fisheries which, as before, were to be open to all French subjects.