Copyright 2000 - 2003 - Janine M. Bork
This page is part of the
Union County, OR AGHP
The Hudson's Bay Company the Exclusive Occupants of
Oregon - Charter of the Company - License of Trade - Internal Organization
- Employés and Their Distribution.
THE Hudson's Bay Company having acquired sole ownership of the license of trade issued December 5, 1821, succeeded to the Indian trade west of the Rocky Mountains. The numerous forts and trading stations scattered throughout the territory enabled the company to exercise absolute dominion. Its power was recognized from forty-two degrees north latitude to the south line of the Russian possessions. This state of affairs continued for almost a quarter of a century, during which Oregon was an Indian trading district for the Hudson's Bay Company, - its history merely a chronicle of the Indian and fur trade.
The Hudson's Bay Company was present in Oregon by virtue of its license for a term of years to prosecute the Indian trade in those parts of North America not included in their chartered territory. Their charter not only conferred corporate existence; - it was an immense grant of territory by the King of Great Britain. But that grant did not extend to territory west of the Rocky Mountains. Under the Joint-Occupancy Treaty of 1818, as British subjects, this corporation extended its operations into Oregon. by the license of trade, all other British subjects had been excluded. In 1824, by operation of the act of Parliament of July 2, 1821, and the assigned exclusive license of trade on December 5, 1821, the Hudson's Bay Company was the only British subject permitted to trade with the Indians west of the Rocky Mountains.
The charter of May 2, 1670, by Charles II., constituted Prince Rupert and his associates and successors a body corporate, under the name of "The Governor and Company of Adventurers of England, trading into Hudson's Bay." In 1690, the charter was ratified by the British Parliament. It granted the sole trade and commerce of all seas, straits, bays, rivers, lakes, creeks and sounds, within the entrance of Hudson's Straits, together with all lands and territories upon its coasts not now actually possessed by an English subject, or by subjects of any Christian prince or state, with the fishing of all sorts of fish, the royalty of the sea, all mines royal; and that the said lands be henceforth known as one of our colonies in America called "Rupert's Land."
The company was constituted "The true and absolute lords and proprietors of the territories, limits and places, saving always the faith, allegiance and sovereign dominion due to us (the Crown), our heirs and successors, for the same, to hold as tenants in free and common soccage, and not by knight's service, reserving, as a yearly rent, two elks and two black beavers."
All visits by other persons were strictly prohibited under penalty of forfeiture of their goods and merchandise, with the ships in which they were laden, one-half of which forfeiture vested in the Crown, the other half in the company. The offender was also
liable to severe punishment, and compelled to give bonds of one thousand pounds not to trade or gain enter into the company's territory. The King covenanted that no grant nor license should ever be issued to any other persons; but the company might grant licenses of trade within their territories to whom and as they deemed proper.
The value of a share of stock was one hundred pounds. For every share at each meeting (which was called a general court), the holder was entitled to one vote. A holder of less than a share could, by adding to other part shares, make up the par value of a share or hundred pounds, and thus the aggregated fractions be entitled to a vote. At such general courts, by-laws, orders and regulations could be enacted.
The executive management was intrusted to a governor, deputy-governor and executive committee of seven, who were elected at the annual meetings. Such officers subscribed an oath and were subject to removal by the general courts for misbehavior or malfeasance. Absolute authority was conferred "over all the lands, territories, islands, plantations, forts, fortifications, factories or colonies where their trade and factories were established, reserving only sovereignty in the Crown. The company had full power to appoint and establish governors and all other necessary officers, who were clothed with jurisdiction to try persons employed in the company's service, according to the laws of Great Britain. If the offense occurred at a post where there was no governor nor council competent to try the accused for the offense charged, it then became the duty of the chief factor to arrest the offender, and send him to an accessible fort where there were a governor and council, or to England for trial.
Power was granted "to send ships of war, men or ammunition to any fort, post or place for the defense thereof; to raise military companies, and appoint their officers; to make war or conclude peace with any prince or people (not Christian), in any of their territories." The company was empowered "to seize the goods, estate or people of those countries for damage to the company's interest, or for the interruption of trade; to erect and build forts, garrisons, towns, villages; to establish colonies, and to supply such establishments by expeditions fitted out in Great Britain; to seize all British subjects not connected with the company, or employed by them, or in such territory by their license, and sent them to England."
Over their factors, agents and employés, the power of the company was absolute. "Should one of them contemn or disobey an order, he was liable to be punished by the president or council, who were authorized to prescribe the manner and measure of punishment. The offender had the right to appeal to the company in England, or he might be turned over for trial by the courts. For the better discovery of abuses and injuries by their servants, the governor and company, and their respective president, chief agent or governor in any of the territories, were authorized to examine upon oath all factors, masters, pursers, supercargoes, commanders of castles, forts, fortifications, plantations or colonies, or other persons, touching or concerning any matter or thing sought to be investigated."
As though this charter were not
sufficiently liberal and extensive in its almost unlimited powers, it concludes
with the royal mandate to all "admirals, vice-admirals, justices, mayors,
sheriffs, constables, bailiffs, and all and singular other our officers,
ministers, liegemen, subjects whatsoever, to aid, favor, help and assist
the said governor and company to enjoy, as well on land as on the seas,
all the premises in said charter contained, whensoever required."
It were difficult to conceive or invent a more ample grant of powers that contained in this charter. Endowed with an empire over which the company exercised absolute dominion, subject only to fealty to the Crown, its membership powerful nobles and citizens of wealth residing near and at the court jealously guarding its every interest, and securing for it a representation in the government itself, is it to be wondered that this "imperium in imperior" triumphantly asserted and firmly established British supremacy in every region in which it operated?
On the 6th of June, 1834, the company executed a Deed Poll, "for the purpose of ascertaining the rights and prescribing the duties of the chief factors and chief traders, and for conducting the trade." Its varied purposes rendered necessary a large number of employés. These were classified as chief factors, chief traders, clerks and servants.
The chief factors superintended the affairs of the company at the trading-posts. The chief traders, under the directions of the chief factors, managed the trade with the natives. The clerks served under both. Extra allowances of necessaries, free of charge, were made to chief factors wintering at inland posts. Personal and private trade with the Indians for individual benefit was not tolerated. The failure to annually make strict account was severely punished by the council, who possessed the power to reprimand, impose penalties or suspend a servant.
Three chief factors and two chief traders were annually allowed to leave the country for one year. Wintering three years in the country entitled a factor or trader to retire with full share of profits for one year, and half profits for four years. Wintering five years entitled the retiring factor or trader to half-pay for six years. Three chief factors, or two chief factors and two chief traders, were permitted annually to retire according to rotation. The legal representatives of a deceased chief factor, who had wintered in the country, were entitled to all the benefits deceased would have received had he lived. A proportionate allowance was made for a shorter duration of service. After the payment of all expenses, sixty per cent of all the profits went to the proprietors or shareholders, and forty per cent to the chief factors and chief traders in lieu of salaries. The next grade below traders were clerks, whose salaries varied from L20 to L100 per annum.
The perfect absolutism of the company's system is found in the enlistment of the servants. The pay was L17 per annum, out of which the servant clothed himself. The terms of service, or more properly to speak, enlistment was (1) five years from the date of embarkation. He bound himself by indentures to devote the whole of his labors and time to the sole benefit of the company; to obey all orders of the officers and agents; to defend the company's property; not to absent himself from service; not to engage nor be concerned in any trade or employment, except for the company's benefit, and under their orders. He was faithfully to obey all laws, orders and regulations and at all times to maintain and defend the officers and agents to the utmost of his power. He further engaged, if required, to enroll as a soldier in offensive or defensive service; to attend drills and military exercises. In consideration of his wife and children being furnished by the company with provisions, he obligated that they should render such services as hay-making, sheep-shearing, weeding or other light work upon the company's farms. If a servant desired to return to Europe at the end of his enlistment, he gave a year's notice of his intention before expiration, and entered into obligation to work a year longer, or until the next ship should leave for England. If called upon to enroll as
(1) There was also a class of
servants articled in Canada or the Hudson's Bay Territory for the term
of three years. They entered service at the time of leaving the Hudson's
Bay Territory, and were employed as packers, etc., en route to their
respective station west of the Rocky Mountains. They were entitled to be
returned to the place of enlistment, and made the return trip in similar
capacity within the term of enlistment. From such, the company at their
Oregon posts secured about two and one-half years of service.
a soldier, he was entitled to be furnished by the company with a uniform suit every two years, and be supplied, free of cost, with arms and ammunition. Should he desire to remain in the country after the expiration of his term, as a settler, he was allowed fifty acres of land, for which he rendered annually, for seven years, twenty-eight days' service. The company retained the right to dismiss the servant during his term or at its conclusion; in which event he was carried back in one of their ships free of expense. Desertion or neglect of duty was followed by forfeiture and loss of wages, without redress. With such pittance is it to be wondered that at the end of his term the servant was in debt for advances? As a consequence, he was obliged to continue service to discharge the obligation. Marriage with Indian women was encouraged. Attachments were formed; and, at the end of the enlistment, the servant, surrounded by a family to whom he owed support, could not abandon them. Thus precluded from gratifying the desire of returning to his native land, he was left the election between re-enlistment or acceptance of the grant of land, continuing dependent upon the company for the necessaries of life.
The ingenuity and ability with which every interest of and advantage to the company were guarded command admiration. In times of peace, laborers or operatives were ever on hand at mere nominal wages; in times of outbreak, they were at once transformed into soldiers, amenable to military usage and discipline. The feudal law did not more absolutely bind the vassal to his baron. In a new country, where labor was impossible to be secured or necessarily high, the company had the benefit of servants upon terms and wages which successfully defeated competition. Should a servant leave its service and settle upon company lands, for years afterwards the company continued its control. His payment was made in goods which he must accept at the company's tariff of rates. Thus this self-supporting and self-sustaining institution retained its vast numbers of employés, receiving back for the necessaries of life all the earnings. None did nor could contribute to the country, or its advancement. Social progress does not advance from such agency. The success of such an institution must of necessity impoverish the region, and retard and demoralize the community within its influence.
Discouraging to industrial advancement by its cheap labor; its inordinate profits realized from the muscles and sinews of men; embarrassing the early American settlers in their trading pursuits; the company so managing its business, that no benefit whatever could accrue to the bona-fide settlement of Oregon by the presence of its numerous employés (for their earnings in the country were at once returned to the coffers of the foreign company, to be sent out of the country for distribution among non-resident shareholders); crushing out every trade or merchant who attempted to establish business; and to all these the encouragement of marriages with Indian women, to alienate the attachment of their employés for native land and early kindred, and fasten them in the country. Such were the consequences of the presence of such an influence. By those marriages the employés had no choice but to remain in the country and continue subject to the disposition of the company. Social ties with which an employé was content during a stay in a wild, unoccupied region could not be sundered without a breach of honor and of duty; - attachments which carried with them the loss of self-respect, often so strong as to reconcile the party to perpetual exile from native country and kindred.
Every agency which contributed
to render a servant dependent on the company, which fastened him to the
service, was fostered and approved. In its every detail, nothing was lost
sight of which would promote the company's success, perpetuate its control,
subordinate its employés to its domination.