As is well known to those who have followed the history of the Hudson's Bay Company, while the possession of Rupert's Land was secured by charter, the territory outside Rupert's Land was secured to the Company by licence. This licence ended every twenty-one years. The licence in force at the time of the troubles which have been described was to terminate in 1859. Accordingly, three or four years before this date, as their Athabasca, New Caledonia, and British Columbia possessions had become of great value to them, the Company with due foresight approached the British Government with a request for the renewal of their tenure. Men of understanding on both sides of the Atlantic saw the possible danger of a refusal to their request, on account of the popular ferment which had taken place both in Red River and British Columbia. Others thought the time had come for ending the power of the Company.
Sir Henry Labouchere, Secretary of State for the Colonies, entered into correspondence with Sir Edmund Head, Governor-General of Canada, on the subject. Anxious about the state of things in every part of the Empire as the Colonial Office always is, the turbulence and defiance of law in Red River settlement called for special attention. Accordingly the Governor-General was informed that it was the intention of the Home Government to have, not only the question of the licence discussed, but also the "general position and prospects" of the Company considered, by a Committee of the House of Commons. The Canadian Government was therefore cordially invited to have its views, as well as those of the Canadian community, represented before the Committee.
This invitation was the thing for which Canada had been waiting. A despatch was sent by the Canadian Government, in less than seven weeks from the time when the invitation left Downing Street, accepting the proposal of the Mother Country. The Canadian Ministry was pleased that British-American affairs were receiving such prominent notice in England. It suggested the importance of determining the limits of Canada on the side towards Rupert's Land, and went on to state that the general opinion strongly held in the New World was "that the western boundary of Canada extends to the Pacific Ocean." Reference is made to the danger of complications arising with the United States, and the statement advanced that the "question of the jurisdiction and title claimed by the Hudson's Bay Company is to Canada of paramount importance."
In 1857 Chief Justice Draper crossed to Great Britain as Canadian representative, with a very wide commission to advance Canadian interests. He was called before the Committee appointed by the House of Commons, and answered nearly two hundred questions relating to Canada and to the Hudson's Bay Company interests in Rupert's Land and beyond. The capable and active-minded Chief Justice kept before the Committee these points:—
(1) What he conceived to be the true western boundary of Canada, and in so doing gave his opinion, based on the Quebec Act of 1774, that Canada should be allowed to extend to the Rocky Mountains and should have the privilege of exploring and building roads in that region.
(2) The earnest desire of the Canadian people that Rupert's Land and the Indian territories should be maintained as British territory.
(3) That Canada should be allowed to extend her settlements into these territories.
Chief Justice Draper argued his case with great clearness and cogency, and made an excellent impression upon the Committee.