Urban Legend: HBC makes annual payments pelts and furs to the Queen

False.
In 1670, Charles II of England granted a Royal Charter to Prince Rupert and seventeen associates (known collectively as “The Company of Adventurers”) giving them the rights to “sole trade and commerce” within the entrance of Hudson Strait in North America. This charter effectively established the Hudson’s Bay Company and gave them control over all lands whose rivers and streams drained into Hudson Bay, an enormous area designated “Rupert’s Land,” which encompassed most of Northern Ontario and Northern Qu�bec, all of Manitoba, most of Saskatchewan, the southern half of Alberta, a large part of the Northwest Territories, and much of what is now the U.S. states of Minnesota and North Dakota — altogether about 40% of modern day Canada.
Urban Legends Reference Pages: Business (Fur the Queen)