The resolution of the House of Com mons just recited, acted as an encourage ment to new adventurers, many of whom, acting individually, began to trade with India; but a still more formidable rival arose in a powerful association of mer chants, whose means enabled them to out bid the old Company for the favour of the government. The old Company, which had now been in existence nearly a century, was dissolved, and three years were allowed for winding up its business. In 1700 the old Company obtained an act which authorized them to trade under the charter of the new Company, of which privilege it availed itself to the amount of 315,000/. The existence of two trad ing bodies led to disputes which bene fited neither. In 1702 an act was passed for uniting them, and seven years were allowed for making preparatory arrange ments for their complete union. Before the expiration of these seven years vari ous differences which had arisen between the two bodies were settled by reference to Lord Godolphin, then Lord High Trea surer, whose award was made the basis of the act 6 Anne, c. 17, which was the foundation of the privileges long enjoyed by the Company. The united bodies were entitled " The United Company of Merchants of England trading to the East Indies ;" a title which was continued until 1834.
The capital stock of the Company, which in 1708 amounted to 3.•110,000i., was increased, under successive acts of par liament, as follows :—iu 1;8b, 800,000/. ; 1789,1,000,000l. ; 1794, 1,000,000/. ; mak ing its total capital 6,000,000/. ; and upon this sum dividends are now paid : the later subscriptions were made at rates considerably above par, so that the money actually paid into the Company's trea sury has been 7,780,000/.
The home government of the Company consists of—lst. The Court of Proprie. tors ; 2nd. The Court of Directors ; and 3rd. The Board of Control, the origin and functions of which body will be hereafter explained.
The Court of Proprietors elect the di rectors of the Company, declare the amount of dividend, and make bye-laws which are binding upon the directors for the management of the Company in all respects which are not especially regu lated by act of Parliament. The votes of the proprietors are given according to the amount of stock which they possess. The lowest sum which entitles a proprie tor to vote is 1000/. of stock ; 3000/. stock entitles to two votes ; 60001. to three votes; and 10,000/. to four votes, which is the largest number of votes that can be given by any one proprietor. In 1825 the number of proprietors entitled to vote was 2093 ; in 1833 the number was 1976 ; and in 1843 there were 1880; of whom 44 were entitled each to four votes, 64 had each three, 333 had two votes, and 1439 had single votes. In 1773, when
all owners of stock amounting to 500/. had each one vote, and none had a plura lity, the number of proprietors was 2153.
The Court of Directors consists of 24 proprietors elected out of the general body. The qualification for a seat in the direction is the possession of 2000/. stock. Six of the directors go out of office every year ; they retire in rotation, so that the term of office for each is four years from the time of election. The directors who vacate their seats may be re-elected, and generally are so, after being out of office for one year. The chairman and deputy chairman are elected from among their own body by the directors, thirteen of whom must be present to form a court.
The power of the directors is great : they appoint the governor-general of India and the governors of the several presidencies ; but as these appointments are all subject to the approval of the crown, they may be said to rest virtually with the government. The directors have the absolute and uncontrolled power of recalling any of these functionaries ; and in 1844 they exercised this power by recalling Lord Ellenborough, the go vernor-general. All subordinate appoint ments are made by the directors, but, as a matter of courtesy, a certain portion of this patronage is placed at the disposal of the President of the Board of Control.
The Board of Control was established by the act of parliament passed in Au gust, 1784, and which is known as Mr. Pitt's India Bill. This board was ori ginally composed of six privy councillors, nominated by the king ; and besides these, the chancellor of the exchequer and the principal secretaries of state are, by virtue of their office, members of the board.
By an act passed in 1793 it is no longer necessary to select the members from among privy councillors. In prac tice the senior member, or president, ordinarily conducts the business, and on rare occasions only calls upon his col leagues for assistance. It is the duty of this board to superintend the territorial or political concerns of the Company ; to inspect all letters passing to and from India between the directors and their servants or agents which have any con nexion with territorial management or political relations ; to alter or amend, or to keep back, the despatches prepared by the directors, and, is urgent cases, to transmit orders to the functionaries in India without the concurrence of the di rectors. In all cases where the proceed ings of the directors have the concur rence of the Board of Control, the court of proprietors has no longer the right of interference. The salaries of the presi dent and other officers of the Board, as well as the general expenses of the esta blishment, are defrayed by the East India Company.