Historical Basis
In the early days of their formation, the Iron Company was a very loosely affilated group of adventurers that happened to find themselves working together to chase down a group of raiders (which at the time was unknown to have been part of the Cult of the Dragon) .
During their exploration of the caverns the Cult was using as a hideout, there was a battle in which the Cult combatants only ever saw Pubert Adams and Brehana Warpip while the rest of the group supported them from outside of the room with spells and ranged attacks. This gave the appearance of roughly a dozen cultists and guards being defeated by only a Half-Orc and Gnome.
Spread
When the group traveled from Greenest to Elturel to deliver the captured Cult officer Frulam Mondath to Leosin Erlanthar of The Harpers, Malice Bloodmoon began spinning the tale of "Pubert and the Iron Gnome" and how they took out two dozen men all on their own.
By the time they had reached Elturel, the story had spread and as is often the case with such stories, the number of men defeated increased and changed.
The stories also started including references to the "demon" that accompanied them from time to time (a clear reference to Malice being a Tiefling) as well as the Human Cleric and Half-Elf Ranger that also traveled with them. It was said that a Dragonborn was also once seen among them.
Accompanying this legend is the story of how Malice nearly single highhandedly defeated four warriors in a tavern called The Brass Wain without ever having gotten out of his chair (the tavern is now also referred to by some as "Malice's Chair").
Eventually, upon meeting Cult officer Talis "The White" at a hunting lodge in the Greyspeak Mountains, she greated them with "So this is the famed Iron Company I've heard so much about" and the name stuck from there on out.
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