The Sun.
London, England, 1852-04-03 00:00:00

IMPERIAL PARLIAMENT.

ROUSE OF LORDS, April 2.
The LORD CHANCELLOR took his seat on the Wool-
sack at Five o'clock.
The Mutiny Bill and the Marine Mutiny Bill were
read a first time.
THE EAST INDIA COMPANY'S CHAPTER,
The Earl of DERBY spoke to the following effect : —My
Lords, I rise, according to the notice placed upon the paper,
for thepurpose of moving the appointment of a Select Com-
mittee to inquire into the operation of the Act 3d and 4th of
William IV., chap. 85, for the better government of her Ma-
jesty's Indian territories, and to report their observations
thereon. The motion which I have now to submit to your
Lordships is for a Committee to inquire into what, in com-
pany'sae is called the renewal of the East India Com-
Charter. I say "in common parlance," because, not
only does that phrase not correctly express the real facts of
the case, but because, in reality, it expresses what I may
almost say is the reverse of the fact. Up to a comparatively
recent period, the East India Company was a commercial
besides being a political body, and in the enjoyment of
certain rights and privileges as a commercial body. The
Act of 1313, however, materially modified those privileges,
and a subsequent Act, that of 1833, went still further, and,
as I shall have occasion to show, did not only diminish.
but altogether took away from the Company the right of
exclusive trading, and indeed of trading at all. lam not
sure whether, so long as the political powers and authority
with which the Company was invested by the Act of 1833
continued, the trading power was not put in abeyance.
If, however, your Lordships should now think fit to withdraw
their political power, their commercial charter would not be
re-established; and if your Lordships decided to continue to
the Company the political power which they now enjoy,
so far from that being a renewal of the charter, it would
be but a renewal of the condition under which that charter
remained in abeyance. In bringing forward this motion
it is not my intention to weary your Lordships by tracing
the rise and progress of this great Company—a career
to which I will venture to say history presents no pa-
rallel, when we look to its humble origin, and when
we look to the comparatively short period during which it
has established one of the mightest empires under the sun.
It is now little more than 200 years since the leaders of this
then infant commercial community thought it advisable to
refrain from landing a single battalion or from acquiring a
single fort on the shores of India, from the fear of exciting the
jealousy of the neighbouring sovereigns. I will not attempt
to trace the various steps through which this Company,
from such an humble beginning, has gradually extended its
power, by its negotiations, by its arms, and by the wisdom
also of its councillors ; and if, under some of the early cir-
cumstances of its progress, any signal instances of a large ra-
pacity and lust for wealth eccurred among its servants. in
later times it has been by a wise government and a feeling
of enlightened humanity that it has achieved a dominion
absolute and uncontrolled, whether by the direct exercise of
its authority or by an influence not leas absolute than actual
authority, over a district of country extending from Cape
Comorin on the south to the borders of 13urmah, of Cash-
mere, Cauhul, and Affghanittan on the north, and embracing,
I think, something like 28 degrees of latitude—(Cheers)—a
vast district inhabited by a population which I believe I ant
within the mark when I set it down at 150,000,000—exer-
cising its authority over a population it various races, and of
various religious, who have been often in hostility to each
other,but who tiow, conquerors and conquered, agree to submit
to the jurisdiction of a comparatively smell body of Euro-
peans—a Company which has secured its power, not so much
by the sword as by the wisdom of its councillors, which bay
seen succumb to it, one after another, the mightiest mo-
narchs of India, and which, without any attempt at con-
quest, without any lust of power—nay, contrary to its wish—
has seen the populations of those monarchies gradually fere-
ing themselves rather than placing themselves under the
protection of its authority.—(Cheers.) With this giganiie
dominion it is not less extraordinary that although for the
maintenance of this vast empire this company possesses an
army of 283,000 men, that immense army you rind com-
posed mainly of natives, and Mahommedans and Hindoos ;
every variety of religion and of grade alike vie in loyalty
and attachment to their conquerors, and in their service ex-
hibit as much of interest and devotion as that small but
noble army belonging to the mother country with which
it is their lot to act.—(Hear.) Sly Lords, when you look
to the vast extent and to the great. resources of this em-
pire, it is no light and unimportant task to which I sun
now about; to call your serious consideration.—(hear.)
You are calmly and deliberately to investigate the machinery
by which the affairs of this great empire is conducted—a ma-
chinery which, formed for far different purposes, has gradually
been diverted from its original intentions, and applied and
adapted to the change of circumstances in which it is now
placed, an institution and a machinery which would seem at the
outset to be almost anomalous, but which has yet operated,
I think, most beneficially to the interests of humanity and
to the advancement and progress of that mighty empire
which it superintends.—(Hear.) I stated that, since 1832
the Committee of the East India Company had ceased alto-
gether to be a commercial body. In 1813 they possessed,
as you are aware, not only the right of trading to India,
but the exclusive rights of trading with India and of trading
with China. By the Act of 1813, for the first time, a
modification was effected in this Company's commercial mo-
nopoly. Under certain limitations British subjects were
permitted to settle in India, and the Indian trade was
thrown open to other than the servants of the Company, at
the same time not depriving the Company of a participa.
tion in that trade. In 1833 we went a step further, and not
only took away the exclusive privileges of the Company
with regard to India, but took from them altogether the
right of trading with India, and also threw open to the
public in general the trade with China, which had been up
to that time in a close monopoly in the hands of the Com-
pany. The question of the settlement of Europeans in
India, and of their right to occupy land, was also adjusted;
but, with regard to commercial affairs, these were the ma-
terial alterations. Now, by the law of 1533, the Court of
Proprietors, the foundation of the: whole machine, ceased
in point of fact, to have any interest whatever or any control
in the management of the affairs of India • because, by the
arrangement then made, the East India Company were de-
prived of all their commercial property—not only of the
right of trading, but deprived of all their commercial pro-
perty whatever, which was made over to the Crown, there
being at the same time a provision made, thy which the
stock of the Company, to the amount of 6,000,0001., or the
dividend upon tnat stock, which was a primary charge,
upon the revenue of India; and a sum of 2,000,0001. was
set aside for the purpose of accumulating, in order, under
certain conditions, to buy up, if it were found necessary, that
amount of stock. I will here mention, en passant, that the
Act of 1833 appears to have contemplated—though the Act
expired at the end of twenty years, bat it appears certainly
to have contemplated a continuance to the Company of
its political powers for a period, not of twenty but of forty
years ; inasmuch as the Company, if the political rights
which wero accorded to them should be taken away at the
end of 20 years, were then entitled to demand the repay-
ment of their stock at the rate of 2001. sterling for every
100/. of stock—they had a right to require that upon the
political power being taken from them their stock should be
bought at that amount, and this within a period of three
years. New, undoubtedly it is not very probable that, oven if
its political powers were taken away, it would make such a
demand for the repayment of its stock, for as it is worth,
believe, about 2601., it would evidently not be their interest
to demand that purchase.—(Wear, hear.) On the other
hand, however, you have no power, by the Act of 1833, to
pay off that stock at present until 1871—that is, until the
expiration of 40 years—to call on the Company to have
that stock paid off. But if the Company's powers should
continue up to 1674, the Crown has then the power of in-
sisting upon
ed,an
paying off that stock upon the terms I have
already mentio
giving one year's notice, firor the
purpose of Ming off- upon
that stock the 2,C00,0001. att set
aside, and which has nowaccumulated to between 3,800,000/.
and 3,900,0001., was to
go
accumulating at compound in-
terest for the purpose of on
fund at the
Such"ming the necessary
expiration of 40 years. were the arrangements of the
Act of 1833, which evidently. contemplated.
of the question, and of the a reconsideration
"toe Tin 'T) government, at
the end of 20 years, but whiehPunacel'olactonfory°L'atemplt:ted
the continuance of the political powers of the company, with
such modifications as might be u
years, because till the expiration of
for a period of 40
vernment had nu power of extinguishing that
period the Go-
the stock. With
that Act of 1833 the Court of Proprietors
buys
said, to have any control or interest whatever in as
th the affairs
of India. The whole business of the Court of P
this moment consists in receiving the dividendrsqrietors-at
upon their
stock, which is now paying, I think 101/' p
also in electing the members of the Court of cent., Directors
Further than that they have no functions whatever to per.
form. It is true they may meet and discuss together,
o
therr,
with regard to the legislation of India, any butuna-
nimous vote of the whale Court of Proprietors need n
ercise the slightest influence over the conduct not
tf
etzh-e
Government. And, indeed, when you look to the present
position of the Court of Proprietors, there is some realien
why they should not exercise any power over the affairs of
India, for they have no interest in it except such as they
derive from the payment of dividends, which are made a
first charge upon the revenue. The number of proprie-
tors is, I think, 1,800, the total number of votes being 2,500,
of which something like one-fifth are held by native pro-
prietors. The power which devolves upon these proprietors
is in itself a material element in the machinery by which
Indian affairs are conducted, but that is the sole power which
they possess, with the exception, I believe, of a very insig-
nificant, though a very proper power, of putting a check
upon some-gratuities, to the amount of not more than 6001.
a-year, voted by the directors. I have been speaking
throughout of the Court of Proprietors; I now come to the
Court of Directors, elected by them. That Court consists of
twenty-four members, and I believe the only qualification is
the possession of a certain amount of stock—l forget pre-
cisely to what amount; I believe I,oool.—and persons are
disqualified if directors of the Bank of England or of the
South Sea-house. The directors, generally speaking, are
the great majority of them, men whose lives have been spent
and whose fortunes have been accumulated in India, and who
must therefore be familiarly acquainted with the working of
the system, with the country, and the character of the inha-
bitants, and who are practically, I believe, well qualified to
undertake the government. One-fourth of the 24 directors
go out of office every four years, but, as they are generally
re-elected, the whole body of directors may practically be
said to sit for life. Most of these details will probably be
very familiar to some of your Lordships, but I did not think
upon such an occasion that it was unfitting in me to state, as
shortly as I could, what is the nature of the system, and how
far its practical working may seem to compensate for some
of the anomalies which may be found in it.—(llear, hear.)
As to the power of the directors, I am not prepared to say
that it is greater than it ought to be. They divide them-
selves into three committees—one the finance committee,
another the political and legislative, and the third the home
and judicial committee; one of these committees has eight,
and the two others seven members each; and these, together
with the chairman and deputy-chairman, form the whole
governing—if that is not a wrong expression—the whole
governing body. In these direetors is vested, both nomi-
nally and substantially with regard to most of the offices, the
power of making the appointments in the civil service of
India. The exceptions, which are real, are the Governor-
General, the;
Judges, the bishops, appointments which are
reserved to the Crown, and a small number of the
subordinate appointments, which by custom or by courtesy
(I do not whether by law) are with the President
of the Board of Control. The appointments nomi-
nally Proceed, end many* really,
of Directors; but the realpCoowu ewer
rt
which the Court of Directors p alien substantialfroni
know may lead to considerable difference power.
.which I
which ought to be carefully and deliberately
of opinion, and
that of recalling each and every considered, is
sertvhaenit of the company,
from the Governor-General down to
with
iwest clerk, with-
out any communication or concert
the
co the Crown. For
every appointment they must have
us was
of the
Crown. (Some remark which did not reach uflerwowas interposed
that,
companyhas the
by a Peer.) I believe that is 'so ; the
power of recalling any or every servant of
in India, and the Company have also a like r
er of re-
calnr, without concert or communication with the Cream
as the Crown has the power without communication
'with
the Compaev. There may be occasions—there have been
upon which 'that authority may practically lead to some