Perhaps the most astounding gift bestowed by the Charter is not that of the trade, or what might be called, in the phrase of the old Roman law, the "usufruct," but the transfer of the vast territory, possibly more than one quarter or a third of the whole of North America, to hold it "in free and common socage," i.e., as absolute proprietors. The value of this concession was tested in the early years of this century, when the Hudson's Bay Company sold to the Earl of Selkirk a portion of the territory greater in area than the whole of England and Scotland; and in this the Company was supported by the highest legal authorities in England.
To the minds of some, even more remarkable than the transfer of the ownership of so large a territory was the conferring upon the Company by the Crown of the power to make laws, not only for their own forts and plantations, with all their officers and servants, but having force over all persons upon the lands ceded to them so absolutely.
The authority to administer justice is also given in no uncertain terms. The officers of the Company "may have power to judge all persons belonging to the said Governor and Company, or that shall live under them, in all causes, whether civil or criminal, according to the laws of this kingdom, and execute justice accordingly." To this was also added the power of sending those charged with offences to England to be tried and punished. The authorities, in the course of time, availed themselves of this right. We shall see in the history of the Red River Settlement, in the very heart of Rupert's Land, the spectacle of a community of several thousands of people within a circle having a radius of fifty miles ruled by Hudson's Bay Company authority, with the customs duties collected, certain municipal institutions established, and justice administered, and the people for two generations not possessed of representative institutions.
One of the powers most jealously guarded by all governments is the control of military expeditions. There is a settled unwillingness to allow private individuals to direct or influence them. No qualms of this sort seem to have been in the royal mind over this matter in connection with the Hudson's Bay Company. The Company is fully empowered in the Charter to send ships of war, men, or ammunition into their plantations, allowed to choose and appoint commanders and officers, and even to issue them their commissions.