Some proprietors of the Company's stock, becoming dissatisfied with the ma nagement of the directors, obtained from Cromwell, in 1655, permission to send trading vessels to India, and nominated a committee of management from their own body, for which they assumed the title of "The Merchant Adventurers." The evils to both parties of this rivalship soon became apparent, and in about two years from the commencement of their operations the Merchant Adventurers threw their separate funds into the gene ral stock under the management of the directors. On this occasion a new sub scription was raised to the amount of 786,0001. In April, 1661, a new charter was granted to the Company, in which all its former privileges were confirmed, and the further authority was given to make peace or war with or against any princes and people "not being Christians ;" and to seize all unlicensed persons (Euro pcens) who should be found within the limits to which its trade extended, and to send them to England.
The first factory of the English was at Bantam, in Java, established in 1602. In 1612 the Mogul granted certain pri vileges at Surat, which was for a long time the centre of the English trade. In 1639 permission was obtained to erect a fortress at Madras. In 1652 the first footing was obtained in Bengal through the influence of Mr. Boughton, as already mentioned. In 1668 the Company obtained a further settlement on the western coast of the peninsula by the cession in its favour of the island of Bombay, made by Charles II., into whose hands it had come as part of the marriage portion of the Princess Catherine of Portugal. At the same time the Company was authorized to exercise all the powers necessary for the defence and government of the island.
At the close of the seventeenth century the three presidencies, Bengal, Madras, and Bombay, were distinguished as they still are, but it was not until 1773 that Bengal became the seat of the supreme government.
The first occasion on which the Compa ny was brought into hostile collision with any of the native powers of India occurred in the beginning of 1664,when Sevajee, the founder of the Maharatta States, found oc casion, in the prosecution of his plans, to I attack the city of Surat. On this occasion the native inhabitants fled ; but the mem bers of the British factory, aided by the crews of the ships in the harbour, made a successful resistance, and forced Sevajee to retire. To show his satisfaction at the conduct of the Europeans upon this occasion, the Mogul accompanied the ex pression of his thanks with an extension of the trading privileges enjoyed by the Company. Another attack made upon Surat by the Maharattas in 1670 was re pelled with equal success.
The right given to the Company by the charter of 1661 of seizing unlicensed per sons within the limits above mentioned, and sending them to England, was exer cised in a manner which, in 1666, pro duced a very serious dispute between the two houses of parliament.
For several years following the junc tion with the Merchant Adventurers about 1657, the trade of the Company was car ried on without any serious rivalry, and with considerable success. Sir Joshua Child, who was one of the directors of the Company, in his Discourses on Trade,' published in 1667, represents that trade as the most beneficial branch of English commerce, employing from twenty-five to thirty sail of the finest merchant ships in the kingdom, each manned with from sixty to one hundred seamen.
In 1677-78 the whole adventure of the Company to India was 7 ships, with an investment of 352,0001. In 1678 79 the number of ships was 8, and the amount employed 393,950/. In 1679 80 there were despatched 10 ships with cargoes valued at 461,7001. In 11 ships, with the value of 596,0001.; and In there were 17 'hips employed.
and the investment amounted to 740,000/.
In 1682-83 a project was set on foot for establishing a rival company, but it failed to obtain the sanction of the go vernment. As one means for discouraging similar attempts in future, the Company ceased to give any detailed statements concerning the amount of the trade. This caused the public to entertain an exag gerated opinion concerning it, and tempted many private adventurers to set the regulations of the Company at de fiance. These interlopers, as they were called, were seized by the Company's officers wherever they could be found, and under the pretext of piracy or some other crimes, they were taken before the Company's tribunals. Sentence of death was passed upon several, and the Com pany boasted much of the clemency that was shown in staying execution until the king's pleasure could be known; but they kept the parties meanwhile in close con finement.
A new charter, to have effect for twenty one years, was granted in 1693, in which it was stipulated that the joint-stock of the Company, then 756,0001., should be raised to 1,500,0001., and that every year the corporation should export British produce and manufactures to the value of 100,000/. at least. The power of the crown to grant the exclusive privileges given by this charter was questioned by the House of Commons, which passed a declaratory resolution to the effect " that it is the right of all Englishmen to trade to the East Indies, or any part of the world, unless prohibited by act of par liament" The House of Commons di rected an inquiry to be made into the circumstances attending the renewal of the charter in 1693, when it was ascer tained that it had been procured by a distribution of 90,000/. amongst some of the highest officers of state. The duke of Leeds, who was charged with receiving 50001., was impeached by the Commons ; and it is said that the prorogation of par liament, which occurred immediately afterwards, was caused by the tracing of the sum of 10,000/. to a much higher quarter.