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Rupert's Land

Territory in British North America (1670–1870)

  • 10 min read
  • 4 chapters

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Through Monopoly and Canada

The areas formerly belonging to Rupert's Land lie mostly within what is today Canada, and included the whole of Manitoba, most of Saskatchewan, southern Alberta, southern Nunavut, and northern parts of Ontario and Quebec. Additionally, it also extended into areas that are now parts of Minnesota, North Dakota, and Montana. The southern border, west of Lake of the Woods to the Rocky Mountains was the drainage divide between the Mississippi and Red/Saskatchewan watersheds until the Anglo-American Convention of 1818 substituted the 49th parallel.

History

Under the principles of the European doctrine of discovery, after the English visited and explored Hudson's Bay, they could claim any lands found that were not already owned or possessed by other European or Christian nations. England claimed ownership of the lands surrounding Hudson's Bay. After explorations in 1659, Prince Rupert took interest in the Hudson's Bay region. The 1668–1669 expedition of the Nonsuch to the Hudson's Bay area returned with £1,400 (equivalent to £263,811 in 2025) worth of furs. However, England was not ready to organize a government on those lands. Instead, a "Company of Adventurers of England" was formed to administer those lands for England, thereby taking possession.

English Royal Charter of 1670

In 1670, King Charles II of England granted a royal charter to create the Hudson's Bay Company, under the governorship of Prince Rupert, the king's cousin. According to the Charter, the HBC received rights to:

The sole Trade and Commerce of all those Seas, Streights, Bays, Rivers, Lakes, Creeks, and Sounds, in whatsoever Latitude they shall be, that lie within the entrance of the Streights commonly called Hudson's Streights, together with all the Lands, Countries and Territories, upon the Coasts and Confines of the Seas, Streights, Bays, Lakes, Rivers, Creeks and Sounds, aforesaid, which are not now actually possessed by any of our Subjects, or by the Subjects of any other Christian Prince or State [...] and that the said Land be from henceforth reckoned and reputed as one of our Plantations or Colonies in America, called Rupert's Land.

The Charter applied to all lands within the drainage basin of Hudson's Bay. It spanned an area of about 3,861,400 square kilometres (1,490,900 sq mi), more than a third of all of today's Canada.

The royal charter made the "Governor and Company ... and their Successors, the true and absolute Lords and Proprietors, of the same Territory", and granted them the authority "to erect and build such Castles, Fortifications, Forts, Garrisons, Colonies or Plantations, Towns or Villages, in any Parts or Places within the Limits and Bounds granted before in these Presents, unto the said Governor and Company, as they in their Discretion shall think fit and requisite". In 1821, following the merger with the North West Company, the Hudson's Bay Company's monopoly privileges and licence were extended to trade over the North-Western Territory.

The Rupert's Land Act 1868, which was passed by the Parliament of the United Kingdom, authorized the sale of Rupert's Land to Canada with the understanding that "'Rupert's Land' shall include the whole of the Lands and Territories held or claimed to be held by the" Hudson's Bay Company. The prevailing attitude of the time was that Rupert's Land was owned by the Hudson's Bay Company because "From the beginning to the end, the [Hudson's Bay Company] had always claimed up to the parallel 49", and argued that the royal charter and various acts of Parliament granted them "all the regions under British dominion watered by streams flowing into Hudson Bay". Rupert's Land had been essentially a private continental estate covering 3.9 million km2 in the heart of North America that stretched from the Atlantic to the Rocky Mountains, and from the prairies to the Arctic Circle. Even John A. Macdonald, the then Prime Minister of Canada, saw the land as being sold to Canada: "No explanation has been made of the arrangement by which the country (Rupert's Land) is handed over to the Queen, and that it is her Majesty who transfers the country to Canada with the same rights to settlers as existed before. All these poor people know is that Canada has bought the Country from the Hudson's Bay Company, and that they are handed over like a flock of sheep to us".

In 1927, the Supreme Court of Canada held that the terms of the Charter had granted ownership of all the land in the Hudson Bay drainage to the company, including all precious minerals. However, this ruling did not settle the issue of aboriginal title over the land. At the time of the royal charter and the later Rupert's Land Act 1868, the Crown held the attitude that it already held sovereignty over the land from a people who only had a "personal and usufructuary right, dependent upon the good will of the Sovereign". The Calder v British Columbia (AG) case in 1973 was the first case in Canadian law that acknowledged that "a declaration that the aboriginal title, otherwise known as the Indian title, of the plaintiffs to their ancient tribal territory hereinbefore described, has never been lawfully extinguished".

Surrender of the territory

In 1869–1870, when the Hudson's Bay Company surrendered its charter to the British Crown, it received £300,000 in compensation. Control was originally planned to be transferred on 1 December 1869, but due to the premature action of the new lieutenant governor, William McDougall, the people of Red River formed a provisional government that took control until arrangements could be negotiated by leaders of what is known as the Red River Rebellion and the newly formed government of Canada. As a result of the negotiations, Canada asserted control on 15 July 1870.

The transaction was three-cornered. On 19 November 1869, the company surrendered its charter under its letters patent to the British Crown, which was authorized to accept the surrender by the Rupert's Land Act. By order-in-council dated 23 June 1870, the British government admitted the territory to Canada, under s. 146 of the Constitution Act, 1867, effective 15 July 1870, subject to the making of treaties with the sovereign indigenous nations to provide their consent to the Imperial Crown to exercise its sovereignty pursuant to the limitations and conditions of the Rupert's Land documents and the treaties. Lastly, the Government of Canada compensated the Hudson's Bay Company £300,000 (£35,977,894 pound sterling in 2019 money, or $60,595,408 Canadian dollars) for the surrender of its charter on the terms set out in the order-in-council.

The company retained its most successful trading posts and one-twentieth of the lands surveyed for immigration and settlement.

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