Comreuir, East India, was established by a charter fromQue en Elizabeth, dated 31st December, 1600, which, though not confirmed by act of parliament, was then considered as conferring an absolute ex clusive privilege. Under this authority, the members of the company traded, for about twelve years, on their separate ca pitals, which, in 1613, they united into a joint-stock. In the reign ofJames I. the company obtained a new charter, and en larged their capital to 1,500,000/. ; their profits at this time were not very great ; and in the year 1655, Cromwell dissolved the Company and laid open the trade, but the mischief which followed obliged him to re-establish it about three years after. New charters were granted to the Com pany in 1661, 1669, and 1676, confirming all their former privileges; but as th, se privileges were derived merely from royal charters, without the sanction of parliament, their exclusive right began to be questioned, and individuals fre quently endeavoured to participate in a commerce which had become very ad vantageous. These private adventurers increasing in number, the Company, in 1683, found means to obtain another charter, by which all former charters were confirmed, and they were empow ered to seize the ships and merchandize of individual traders, to maintain military 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 2,000,0001. 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 1,200,0001. 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, 200,0001.
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 of 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 which 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 238,000L; the bullion ex ported to 690,00014 and they paid in dis charge of bills of exchange 190,000/. During the succeeding ten years the sales of imports became increased to 2,150,0001. annually on the average, the quantity of bullion exported was reduced to about 120,0001. 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 490,0001. ; in bullion about 110,0001. ; the sums rais ed by bills 458,0001. per annum ; and by the aid afforded from the revenues, the investments were increased so as to pro duce about 3,300,0001. 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 200,0001. 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, an d the discussions which followed pro duced a general conviction,th at some new arrangement was necessary for thefuture 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 andcontrol, the civil and military government and revenues of the Compa ny, and to inspect the dispatches trans mitted by the Directors to the different presidencies. The appointment of the Governor-general, President, or Counsel lors in the differentprecidencieswas made subject to the approbation and recall of his Majesty ; and a tribunal was created for the trial of Indian delinquents. Some further regulations were adopted in 1786, the chief of which were, bestowing on the Governor-general of India the high prerogative, of deciding in opposition to the sense of the majority of the council ; and uniting the offices of Commander in Chief and Governor-general in the same person. The Company were empower ed to increase their capital, by creating 800,0001. new stock, for which they ob tained 1,240,0001. at the rate of 155 per cent. ; and in 1789 they were authorised to add a million to their capital, which was effected at the rate of 174 per cent. and preference was given to such per sons as were stockholders at the time of subscription. Their annual dividend at this time was 8 per cent. and continued at this rate till 1793, when, in pursuance of an agreement with government for the renewal of their charter, another million was added to their capital, which thus be came 6,000,0001. and the dividend was raised to 10 per cent.
By the agreement in 1793, the term of their exclusive trade was continued, under various regulations, for 20 years from the 1st of March, 1794, with the former pro viso, that if, after the expiration of that term, their right to the sole trade shall cease, in consequence of three years pre vious notice being given by parliament, and the repayment of such sums as may be then due from the public, they shall con tinue a corporation notwithstanding,with power to carry on a free trade in common with other persons.
The Company is under the management of twenty-four directors, elected by the proprietors of the Company's stock, who hold 10001. or upwards. Such proprietors are likewise entitled to vote, on all occa sions, in the quarterly and special general courts of the Company.