East India Company

The first charter to the Indian merchants was granted in 1600, and made perpetual in 1609, a company being constituted under the title of the India Company, with the monopoly of the Eastern trade. During the Revolution a rival company was formed whose competition threatened to extinguish the older Company, but eventually the two were amalgamated in 1708. As the field of operations in India was extended, political questions became increasingly important, and such was the maladministration of the Company, that the Government was constantly forced to interfere. In 1773 a Regulating Act was pa ed, by which a new council was appointed and other administrative reforms introduced, but the consequent improvement was not marked, and in 1784 Pitt’s India Bill withdrew all political power from the hands of the Company, while leaving their trading rights intact, and established a Board of Control, to be appointed by the British Government. In 1813 the trading monopoly of the Company was broken, so far as India was concerned, by the admi ion of independent traders to the Company’s territories, but they still retained the China trade. In 1834, however, the restrictions on trade still afforded by the Company’s charter were felt to be out of harmony with modern commercial ideas, and the whole of the Company’s trading rights were swept away, in return for an annuity, payable for forty years, of £630,000, redeemable at the end of that period, at the Government’s option, for a sum of £12,000,000. Before that period was ended, however, the Indian Mutiny broke out, and on its suppre ion, in 1858, the Company was finally di olved, and India pa ed under the direct rule of the United Kingdom.