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Beaver hats are the height of fashion for men and women of wealth and power.
The demand for beaver is so great that by the mid-1600s this animal is extinct in Europe. The French look to the lands in New France for a new supply of beaver pelts. King Henry IV of France grants a fur trading monopoly for lands in the St. Lawrence River area. -
The Hudson’s Bay Company is born
King Charles II issues a Charter to Prince Rupert and “the Company of Adventurers of England trading into Hudson Bay,” giving them a monopoly over all the trade in this area. This creates Rupert’s Land, defined as all the land drained by rivers flowing into Hudson Bay. In all, it comprises nearly 40 percent of what is now Canada. -
HBC expands along the Hudson and James Bay routes
The first trading post built after the founding of the Company is Moose Factory (1673), followed by Fort Albany (1674), Fort Severn (1680) and York Factory (1684). HBC traders establish relationships with Aboriginal Peoples who transport European goods to their trading partners who live further inland. -
The 7 years war begins
The Seven Years War (1756 – 1763) reduces the demand for furs in Europe.
In New France, British forces commanded by General James Wolfe defeat the French garrison of Quebec, commanded by the Marquis de Montcalm at the Battle of the Plains of Abraham in 1759.
In 1760, the British capture Montreal and New France becomes a British colony. -
The North West Company
For the first few years, the North West Company (NWC) exists as a series of short-term partnerships which last for one trading cycle each. By 1783, the NWC is a permanent entity. The NWC quickly builds a commercial structure which spans the continent, the first North American company to operate on such a scale. In doing so, it openly defies the Royal Charter. It represented the biggest competition for HBC. -
HBC and The NWC merge
HBC has 76 trading posts, NWC 97, with a total of 1,983 employees. Many trading posts are inefficient and unprofitable; others are in direct competition with one another. George Simpson establishes order and efficiency within the Company and profits begin to soar.
Simpson's view of HBC's business is much broader than that of many others within the Company, who do not see the value in engaging in commercial activities other than the fur trade. -
Confederation created the Dominion of Canada
During the years prior to Confederation, HBC is under pressure from the British government, as it investigates the Company’s monopoly and trading practices. Negotiations begin regarding the transfer of land ownership to Canada and compensation for HBC. Before an agreement is reached, the British colonies of the Province of Canada (Ontario and Quebec), Nova Scotia and New Brunswick join to form the Dominion of Canada. -
HBC returns control of Rupert’s Land to the crown
By the terms of the Deed of Surrender, HBC receives £300,000 cash, keeps 120 posts, and gets land concessions. HBC gives up its rights to Rupert’s Land, but now instead of having a monopoly on the fur trade, it has title to forty-five (45) thousand acres (18,210 hectares) of land around its posts and a further option. -
HBC establishes a beaver preserve in Quebec
Beaver in northern Quebec is disappearing and as a result the Cree are starving. Maud Watt, wife of Rupert House factor Jimmy Watt, travels to Quebec City and pleads with the provincial government for the establishment of a beaver preserve to help the wild populations recover from over-hunting. -
HBC adopts “The Bay” brand for retail
The Company’s management is concerned that the retail outlets have no national identity. In the East, it is Morgan’s, in the West, Hudson’s Bay Company. The Company hires a team of New York image makers, Lippincott & Margulies, who create the modern logo and the stores become known as The Bay.
In Quebec, the stores are known as La Baie.