COMPANY. 



forces, and to establish a court of judica- 

 ture They were soon after involved in 

 war with the Mogul, and other embarrass- 

 ments, which were attempted to be rec- 

 tified by the oft tried expedient of a new 

 charter ; and being thus armed with new 

 powers, they endeavoured to exclude ef- 

 fectually all individuals from interfering 

 in the trade. In 1693, the charter of the 

 Company became void, from default in 

 payment of the tax imposed on their 

 stock, but it was renewed, upon condition 

 of being determinable upon three years 

 notice. 



The Company having sustained great 

 losses during the war with France, and 

 fallen into disrepute, a proposal was made 

 in 1698, by Mr. Samuel Shepherd, and a 

 number of other merchants, to advance 

 for the public service 2,000,000?. at 8 per 

 cent, interest, provided the sole exclu- 

 sive trade to India was settled on them ; 

 the proposal was accepted, and a new 

 company established by authority of par- 

 liament, and incorporated by charter, un- 

 der the title of the English Company 

 trading to the East Indies. The conten- 

 tions and emulation between the old and 

 new Companies was so great, that it be- 

 came necessary, even for the sake of pub- 

 lic tranquillity, to unite them : this was 

 partly effected in 1702, and in 1708 the 

 two Companies were, by act of parlia- 

 ment, perfectly consolidated, under their 

 present title of the United Company of 

 Merchants of England trading to the 

 East Indies. On the extension of the 

 term of their exclusive trade to three 

 years notice after Lady Day 1726, they 

 lent to government the further sum of 

 1,200,000?. without receiving any addi- 

 tional interest, and as it was necessary to 

 raise this sum by the sale of new stock, 

 the capital of the company thus became 

 3, 200,000/. 



In 1712 the term of the company's ex- 

 clusive trade was extended to three years 

 notice after Lady Day 1733 ; which by a 

 subsequent agreement was prolonged to 

 1766 ; and again, to three years notice 

 after Lady Day 1780, with a provision, 

 that if their exclusive privileges should 

 be then determined, by the re -payment 

 of all sums which they had lent to govern- 

 ment, with all arrears of interest, the 

 Company should still remain a corpora- 

 tion for ever, and enjoy the East India 

 trade in common with all other subjects. 



The interference ef the Company, 

 about the year 1750, in the contentions 

 between some of the native princes, led 

 to the acquirement of considerable ter- 

 ritories, and laid the foundation of the 



extensive political authority which the 

 Company now possess, and which com- 

 prehends dominions of greater extent 

 than three times the area of the united 

 kingdoms of Great Britain and Ireland. 



On an average of 16 years preceding 

 1757, at whieh time the Company deriv- 

 ed little assistance from territorial reve- 

 nues, the annual sales of their imports 

 amounted to about 2,055,000?. ; and for 

 the same period their exported goods 

 and stores amounted annually, at their 

 prime cost, to 238,000?. ; the bullion ex- 

 ported to 690,000?.; and they paid in dis- 

 charge of bills of exchange 190,000?. 

 During the succeeding ten years the 

 sales of imports became increased to 

 2,150,000?. annually on the average, the 

 quantity of bullion exported was reduced 

 to about 120,000?. per annum, but the 

 exports in goods and stores, and the mo- 

 ney raised by bills of exchange were in- 

 creased in a greater ratio compared with 

 the returns from abroad. From 1767 to 

 1777 the export of goods was 490,000?.; 

 in bullion about 110,000?. ; the sums rais- 

 ed by bills 458,000?. per annum ; and by 

 the aid afforded from the revenues, the 

 investments were increased so as to pro- 

 duce about 3,300,000?. per annum; the af- 

 fairs of the Company, during this period 

 were however far from being in a flou- 

 rishing situation; they were under the ne- 

 cessity of reducing their dividend, and 

 of applying to parliament for assistance ; 

 but these difficulties being removed, the 

 dividend, in 1778, was raised again to 8 

 per cent. 



In the seven years ending with 1784, 

 the average sales of the imports of the 

 Company, notwithstanding the expensive 

 war in which they were engaged, fell off 

 in the proportion only of about 200,000?. 

 annually ; the export in bullion was for 

 that period very trifling, but the goods 

 and stores exported were increased to 

 about half a million. The termination of 

 the war left the Company's affairs both at 

 home and abroad in great derangement, 

 and the discussions which followed pro- 

 duced a general conviction,that some new 

 arrangement was necessary forthefuturc 

 government of their extensive territorial 

 acquisitions. The principal measure 

 adopted was the establishment of a board 

 of control, composed of a certain number 

 of commissioners appointed by the king, 

 and removeable at his pleasure. This 

 board was authorised to check, superin- 

 tend and control, the civil and military 

 government and revenues of the Compa- 

 ny, and to inspect the dispatches trans- 

 mitted by the Directors to the different 



