EAST INDIA COMPANY. This association originated from the subscrip tions, trifling in amount, of a few private individuals. It gradually became a com mercial body with gigantic means, and next, by the force of unforeseen circum stances, assumed the form of a sovereign power, while those by whom it was di rected continued in their individual ca pacities to be without power or political influence, thus presenting an anomaly without a parallel in the history of the world.
The Company was first formed in Lon don in 1599, when its capital, amounting to 30,0001., was divided into 101 shares. In 1600 the adventurers obtained a char ter from the crown, under which they enjoyed certain privileges, and were formed into a corporation for fifteen years, with the title of "The Governor and Company of Merchants of London trading to the East Indies." Under this charter the management of the company's affairs was intrusted to twenty-four members of a committee chosen by the proprietors from among their own body, and this committee was renewed by election every year.
The first adventure of the association was commenced in 1601. In the month of May of that year five ships, with car goes of merchandise and bullion, sailed from Torbay to India. The result was encouraging, and between 1603 and 1613 eight other voyages were performed, all of which were highly profitable, with the exception of the one undertaken in the year 1607. In the other years the clear profits of the trade varied from 100 to 200 per cent. upon the capital employed.
At this time the trading of the company was not confined to the joint stock of the corporation, but other adventurers were admitted, who subscribed the sums re quired to complete the lading of the ships, and received back the amount, to gether with their share of the profits, at the termination of every voyage.
The charter of the Company was re newed for an indefinite period in 1609, subject to dissolution on the part of the government upon giving three years' no tice to that effect.
In 1611 the Company obtained permis sion from the Mogul to establish factories at Surat, Ahmedabad, Cambaya, and Goga, in consideration of which per mission it agreed to pay to that sovereign an export duty upon all its shipments at the rate of 3 per cent.
After 1612 subscriptions were no longer taken from individuals in aid of the joint-stock capital, which was raised to 420,0001., and in 1617-18 a new fund of 1,600,0001. was subscribed. This last capital, although managed by the same directors, was kept wholly distinct from the former stock, and the profits resulting from it were separately accounted for to the subscribers.
The functions of government were firo exercised by the Company in 1624, when authority was given to it by the king to punish its servants abroad either by civil or by martial law, and this authority was unlimited in extent, embracing even the power of taking life.
In 1632 a third capital, amounting to 420,7001., was raised, and its management, although confided to the same directors. was also kept distinct from that of the first and second subscriptions. It is un certain whether the capitals here severally mentioned were considered as permanent investments, or were returned to the sub scribers at the termination of each dif ferent adventure.
A rival association, formed in 1636, succeeded in obtaining from the king, who accepted a share in the adventure, a licence to trade with India, notwithstand ing the remonstrances of the chartered body. After carrying on their trade for several years in a spirit of rivalry which was fatal to their prosperity, the two bodies united in 1650, and thenceforward carried on their operations under the title of " The United Joint-Stock." In 1652 the Company obtained from the Mogul, through the influence of a medical gentleman, Mr. Boughton, who had per formed some cures at the Imperial Court, the grant of a licence for carrying on an unlimited trade throughout the province of Bengal without payment of duties.