Catalogue description Hudson's Bay Company Archives

In 1670, the Hudson's Bay Company was incorporated under a charter which provided a monopoly to trade over the territory drained by the rivers flowing into Hudson Bay, with proprietary rights extending over the same territory. Under this original charter, control of the organisation was vested in a Governor, a Deputy Governor, and a Committee of seven members, all of whom were required to be shareholders. The decisions of these directors were subject to approval by the shareholders at the annual General Court. Establishments on Hudson Bay were subject to the supervision of the Governor and Committee in London, acting through a Governor stationed at Albany or York.

The Company's early history saw a struggle with the fur trading empire of New France. Strong competition from French traders disrupted the Company's trade from 1686 until the peace of Utrecht in 1713.

Throughout the eighteenth century, the Company pursued a policy of gradual expansion while confining its activities primarily to the shores of Hudson Bay. This policy produced continuous dividends but provoked severe criticism from Arthur Dobbs, an Irish MP, who maintained that the Company had refused to explore the full extent of its territories and had therefore violated its charter. However, in 1749 the Company's conduct was vindicated by a Parliamentary Inquiry convened to investigate the charges.

After the conquest of North America by the British in 1759, the old challenge of the French fur traders was renewed by a new group of independent traders operating from Montreal. In 1774, the Hudson's Bay Company responded by establishing Cumberland House, 450 miles inland from York Factory. On moving inland, the Company found competition from independent traders throughout large tracts of the North West. In 1804, the two major rivals (the XY and North West companies) merged under the name North West Company. The Hudson's Bay Company retaliated by establishing inland forts from Lake Superior to Lake Athabasca. This expansion placed a serious strain on the Company's financial resources and brought about a corresponding decline in dividends.The North West Company also found itself in serious difficulty because of the struggle, and in 1819 negotiations began for a merger of the two companies, which was completed in 1821.

The merger of 1821 extended the Company's undisputed control over a territory stretching from Labrador to British Columbia, and led to a reformation of the Hudson's Bay Company's organisation in North America. Under the terms of the merger, the Governor, Deputy Governor, and Committee hierarchy remained intact except for the addition of a short-lived advisory board composed of two men from each company who reported to the Governor and Committee. This advisory board lapsed in 1824.

In North America, the Company was organised into specific territories or departments. The Northern Department, with its main depot at York Factory, included the territory from Rainy Lake on the western end of Lake Superior to the Pacific Ocean, and also included the posts in the old Oregon Territories. The Southern Department, with its headquarters at Moose Factory, controlled the trade in what is now Ontario and Quebec. Later the Montreal Department was organised to supervise the trade in Labrador. The north shore of the St Lawrence and some districts previously controlled by Departments were each controlled by a governor. However, by 1826, all departments were placed under the administration of the Governor.

In 1857, a Select Committee of the British House of Commons inquired into the Company's licence for exclusive trade, and recommended that Vancouver Island be given the status of a Crown Colony, and the Company's licence should extend only over areas unsuitable for settlement. The Committee further suggested that areas such as Red River be ceded to Canada when suitable arrangements could be made. The issue remained unsettled until the British government devised the terms of the agreement which eventually comprised the Deed of Surrender of 1869. This was given Royal assent in 1870 which saw the surrender of most of the Company's land to the new Dominion of Canada in 1870. The Company has remained in existence to the present day, its original charter being replaced in 1884 and again subsequently.