East_India_Company

context: Soon after the defeat of the Spanish Armada in 1588, London merchants presented a petition to Queen Elizabeth I for permission to sail to the Indian Ocean. The permission was granted, and despite the defeat of the English Armada in 1589, on 10 April 1591 three ships sailed from Torbay around the Cape of Good Hope to the Arabian Sea on one of the earliest English overseas Indian expeditions. One of them, Edward Bonventure, then sailed around Cape Comorin and on to the Malay Peninsula and subsequently returned to England in 1594.

context: This time they succeeded, and on 31 December 1600, the Queen granted a Royal Charter to "George, Earl of Cumberland, and 215 Knights, Aldermen, and Burgesses" under the name, Governor and Company of Merchants of London trading with the East Indies. For a period of fifteen years the charter awarded the newly formed company a monopoly on trade with all countries east of the Cape of Good Hope and west of the Straits of Magellan. Sir James Lancaster commanded the first East India Company voyage in 1601 and returned in 1603. and in March 1604 Sir Henry Middleton commanded the second voyage. General William Keeling, a captain during the second voyage, led the third voyage from 1607 to 1610.

context: In the next two years, the company established its first factory in south India in the town of Machilipatnam on the Coromandel Coast of the Bay of Bengal. The high profits reported by the company after landing in India initially prompted King James I to grant subsidiary licences to other trading companies in England. But in 1609 he renewed the charter given to the company for an indefinite period, including a clause that specified that the charter would cease to be in force if the trade turned unprofitable for three consecutive years.

context: The company, which benefited from the imperial patronage, soon expanded its commercial trading operations, eclipsing the Portuguese Estado da Índia, which had established bases in Goa, Chittagong, and Bombay, which Portugal later ceded to England as part of the dowry of Catherine de Braganza. The East India Company also launched a joint attack with the Dutch United East India Company on Portuguese and Spanish ships off the coast of China, which helped secure their ports in China. The company established trading posts in Surat (1619), Madras (1639), Bombay (1668), and Calcutta (1690). By 1647, the company had 23 factories, each under the command of a factor or master merchant and governor if so chosen, and 90 employees in India. The major factories became the walled forts of Fort William in Bengal, Fort St George in Madras, and Bombay Castle.

context: In 1634, the Mughal emperor extended his hospitality to the English traders to the region of Bengal, and in 1717 completely waived customs duties for the trade. The company's mainstay businesses were by then cotton, silk, indigo dye, saltpetre, and tea. The Dutch were aggressive competitors and had meanwhile expanded their monopoly of the spice trade in the Malaccan straits by ousting the Portuguese in 1640–41. With reduced Portuguese and Spanish influence in the region, the EIC and Dutch East India Company (VOC) entered a period of intense competition, resulting in the Anglo-Dutch Wars of the 17th and 18th centuries.

context: In September 1695, Captain Henry Every, an English pirate on board the Fancy, reached the Straits of Bab-el-Mandeb, where he teamed up with five other pirate captains to make an attack on the Indian fleet making the annual voyage to Mocha. The Mughal convoy included the treasure-laden Ganj-i-Sawai, reported to be the greatest in the Mughal fleet and the largest ship operational in the Indian Ocean, and its escort, the Fateh Muhammed. They were spotted passing the straits en route to Surat. The pirates gave chase and caught up with Fateh Muhammed some days later, and meeting little resistance, took some £50,000 to £60,000 worth of treasure.

context: Every continued in pursuit and managed to overhaul Ganj-i-Sawai, which resisted strongly before eventually striking. Ganj-i-Sawai carried enormous wealth and, according to contemporary East India Company sources, was carrying a relative of the Grand Mughal, though there is no evidence to suggest that it was his daughter and her retinue. The loot from the Ganj-i-Sawai had a total value between £325,000 and £600,000, including 500,000 gold and silver pieces, and has become known as the richest ship ever taken by pirates.

context: When the news arrived in England it caused an outcry. In response, a combined bounty of £1,000 was offered for Every's capture by the Privy Council and East India Company, leading to the first worldwide manhunt in recorded history. The plunder of Aurangzeb's treasure ship had serious consequences for the English East India Company. The furious Mughal Emperor Aurangzeb ordered Sidi Yaqub and Nawab Daud Khan to attack and close four of the company's factories in India and imprison their officers, who were almost lynched by a mob of angry Mughals, blaming them for their countryman's depredations, and threatened to put an end to all English trading in India. To appease Emperor Aurangzeb and particularly his Grand Vizier Asad Khan, Parliament exempted Every from all of the Acts of Grace (pardons) and amnesties it would subsequently issue to other pirates.

context: This allowed any English firm to trade with India, unless specifically prohibited by act of parliament, thereby annulling the charter that had been in force for almost 100 years. By an act that was passed in 1698, a new "parallel" East India Company (officially titled the English Company Trading to the East Indies) was floated under a state-backed indemnity of £2 million. The powerful stockholders of the old company quickly subscribed a sum of £315,000 in the new concern, and dominated the new body. The two companies wrestled with each other for some time, both in England and in India, for a dominant share of the trade.

context: In the following decades there was a constant battle between the company lobby and the Parliament. The company sought a permanent establishment, while the Parliament would not willingly allow it greater autonomy and so relinquish the opportunity to exploit the company's profits. In 1712, another act renewed the status of the company, though the debts were repaid. By 1720, 15% of British imports were from India, almost all passing through the company, which reasserted the influence of the company lobby. The licence was prolonged until 1766 by yet another act in 1730.

context: At this time, Britain and France became bitter rivals. Frequent skirmishes between them took place for control of colonial possessions. In 1742, fearing the monetary consequences of a war, the British government agreed to extend the deadline for the licensed exclusive trade by the company in India until 1783, in return for a further loan of £1 million. Between 1756 and 1763, the Seven Years' War diverted the state's attention towards consolidation and defence of its territorial possessions in Europe and its colonies in North America.

context: With the advent of the Industrial Revolution, Britain surged ahead of its European rivals. Demand for Indian commodities was boosted by the need to sustain the troops and the economy during the war, and by the increased availability of raw materials and efficient methods of production. As home to the revolution, Britain experienced higher standards of living. Its spiralling cycle of prosperity, demand and production had a profound influence on overseas trade. The company became the single largest player in the British global market. William Henry Pyne notes in his book The Microcosm of London (1808) that:

context: Outstanding debts were also agreed and the company permitted to export 250 tons of saltpetre. Again in 1673, Banks successfully negotiated another contract for 700 tons of saltpetre at £37,000 between the king and the company. So urgent was the need to supply the armed forces in the United Kingdom, America and elsewhere that the authorities sometimes turned a blind eye on the untaxed sales. One governor of the company was even reported as saying in 1864 that he would rather have the saltpetre made than the tax on salt.

context: By the Treaty of Paris (1763), France regained the five establishments captured by the British during the war (Pondichéry, Mahe, Karikal, Yanam and Chandernagar) but was prevented from erecting fortifications and keeping troops in Bengal (art. XI). Elsewhere in India, the French were to remain a military threat, particularly during the War of American Independence, and up to the capture of Pondichéry in 1793 at the outset of the French Revolutionary Wars without any military presence. Although these small outposts remained French possessions for the next two hundred years, French ambitions on Indian territories were effectively laid to rest, thus eliminating a major source of economic competition for the company.

context: In its first century and half, the EIC used a few hundred soldiers as guards. The great expansion came after 1750, when it had 3000 regular troops. By 1763, it had 26,000; by 1778, it had 67,000. It recruited largely Indian troops, and trained them along European lines. The company, fresh from a colossal victory, and with the backing of its own private well-disciplined and experienced army, was able to assert its interests in the Carnatic region from its base at Madras and in Bengal from Calcutta, without facing any further obstacles from other colonial powers.

context: With the gradual weakening of the Marathas in the aftermath of the three Anglo-Maratha wars, the British also secured the Ganges-Jumna Doab, the Delhi-Agra region, parts of Bundelkhand, Broach, some districts of Gujarat, the fort of Ahmmadnagar, province of Cuttack (which included Mughalbandi/the coastal part of Odisha, Garjat/the princely states of Odisha, Balasore Port, parts of Midnapore district of West Bengal), Bombay (Mumbai) and the surrounding areas, leading to a formal end of the Maratha empire and firm establishment of the British East India Company in India.

context: Within the Army, British officers who initially trained at the company's own academy at the Addiscombe Military Seminary, always outranked Indians, no matter how long their service. The highest rank to which an Indian soldier could aspire was Subadar-Major (or Rissaldar-Major in cavalry units), effectively a senior subaltern equivalent. Promotion for both British and Indian soldiers was strictly by seniority, so Indian soldiers rarely reached the commissioned ranks of Jamadar or Subadar before they were middle aged at best. They received no training in administration or leadership to make them independent of their British officers.

context: In 1838 with the amount of smuggled opium entering China approaching 1,400 tons a year, the Chinese imposed a death penalty for opium smuggling and sent a Special Imperial Commissioner, Lin Zexu, to curb smuggling. This resulted in the First Opium War (1839–42). After the war Hong Kong island was ceded to Britain under the Treaty of Nanking and the Chinese market opened to the opium traders of Britain and other nations. The Jardines and Apcar and Company dominated the trade, although P&O also tried to take a share. A Second Opium War fought by Britain and France against China lasted from 1856 until 1860 and led to the Treaty of Tientsin, which legalised the importation of opium. Legalisation stimulated domestic Chinese opium production and increased the importation of opium from Turkey and Persia. This increased competition for the Chinese market led to India reducing its opium output and diversifying its exports.

context: Despite stiff resistance from the East India lobby in parliament and from the Company's shareholders, the Act passed. It introduced substantial governmental control and allowed British India to be formally under the control of the Crown, but leased back to the Company at £40,000 for two years. Under the Act's most important provision, a governing Council composed of five members was created in Calcutta. The three members nominated by Parliament and representing the Government's interest could, and invariably would, outvote the two Company members. The Council was headed by Warren Hastings, the incumbent Governor, who became the first Governor-General of Bengal, with an ill-defined authority over the Bombay and Madras Presidencies. His nomination, made by the Court of Directors, would in future be subject to the approval of a Council of Four appointed by the Crown. Initially, the Council consisted of Lt. General Sir John Clavering, The Honourable Sir George Monson, Sir Richard Barwell, and Sir Philip Francis.

context: Hastings was entrusted with the power of peace and war. British judges and magistrates would also be sent to India to administer the legal system. The Governor General and the council would have complete legislative powers. The company was allowed to maintain its virtual monopoly over trade in exchange for the biennial sum and was obligated to export a minimum quantity of goods yearly to Britain. The costs of administration were to be met by the company. The Company initially welcomed these provisions, but the annual burden of the payment contributed to the steady decline of its finances.

context: Pitt's Act was deemed a failure because it quickly became apparent that the boundaries between government control and the company's powers were nebulous and highly subjective. The government felt obliged to respond to humanitarian calls for better treatment of local peoples in British-occupied territories. Edmund Burke, a former East India Company shareholder and diplomat, was moved to address the situation and introduced a new Regulating Bill in 1783. The bill was defeated amid lobbying by company loyalists and accusations of nepotism in the bill's recommendations for the appointment of councillors.

context: This Act clearly demarcated borders between the Crown and the Company. After this point, the Company functioned as a regularised subsidiary of the Crown, with greater accountability for its actions and reached a stable stage of expansion and consolidation. Having temporarily achieved a state of truce with the Crown, the Company continued to expand its influence to nearby territories through threats and coercive actions. By the middle of the 19th century, the Company's rule extended across most of India, Burma, Malaya, Singapore, and British Hong Kong, and a fifth of the world's population was under its trading influence. In addition, Penang, one of the states in Malaya, became the fourth most important settlement, a presidency, of the Company's Indian territories.

context: The aggressive policies of Lord Wellesley and the Marquis of Hastings led to the Company gaining control of all India (except for the Punjab and Sindh), and some part of the then kingdom of Nepal under the Sugauli Treaty. The Indian Princes had become vassals of the Company. But the expense of wars leading to the total control of India strained the Company's finances. The Company was forced to petition Parliament for assistance. This was the background to the Charter Act of 1813 which, among other things:

context: The Company's headquarters in London, from which much of India was governed, was East India House in Leadenhall Street. After occupying premises in Philpot Lane from 1600 to 1621; in Crosby House, Bishopsgate, from 1621 to 1638; and in Leadenhall Street from 1638 to 1648, the Company moved into Craven House, an Elizabethan mansion in Leadenhall Street. The building had become known as East India House by 1661. It was completely rebuilt and enlarged in 1726–9; and further significantly remodelled and expanded in 1796–1800. It was finally vacated in 1860 and demolished in 1861–62. The site is now occupied by the Lloyd's building.

context: In 1803, an Act of Parliament, promoted by the East India Company, established the East India Dock Company, with the aim of establishing a new set of docks (the East India Docks) primarily for the use of ships trading with India. The existing Brunswick Dock, part of the Blackwall Yard site, became the Export Dock; while a new Import Dock was built to the north. In 1838 the East India Dock Company merged with the West India Dock Company. The docks were taken over by the Port of London Authority in 1909, and closed in 1967.

context: From the period of 1600, the canton consisted of a St George's Cross representing the Kingdom of England. With the Acts of Union 1707, the canton was updated to be the new Union Flag—consisting of an English St George's Cross combined with a Scottish St Andrew's cross—representing the Kingdom of Great Britain. After the Acts of Union 1800 that joined Ireland with Great Britain to form the United Kingdom, the canton of the East India Company flag was altered accordingly to include a Saint Patrick's Saltire replicating the updated Union Flag representing the United Kingdom of Great Britain and Ireland.

context: "Azure, three ships with three masts, rigged and under full sail, the sails, pennants and ensigns Argent, each charged with a cross Gules; on a chief of the second a pale quarterly Azure and Gules, on the 1st and 4th a fleur-de-lis or, on the 2nd and 3rd a leopard or, between two roses Gules seeded Or barbed Vert." The shield had as a crest: "A sphere without a frame, bounded with the Zodiac in bend Or, between two pennants flottant Argent, each charged with a cross Gules, over the sphere the words DEUS INDICAT" (Latin: God Indicates). The supporters were two sea lions (lions with fishes' tails) and the motto was DEO DUCENTE NIL NOCET (Latin: Where God Leads, Nothing Hurts).

context: The East India Company's arms, granted in 1698, were: "Argent a cross Gules; in the dexter chief quarter an escutcheon of the arms of France and England quarterly, the shield ornamentally and regally crowned Or." The crest was: "A lion rampant guardant Or holding between the forepaws a regal crown proper." The supporters were: "Two lions rampant guardant Or, each supporting a banner erect Argent, charged with a cross Gules." The motto was AUSPICIO REGIS ET SENATUS ANGLIÆ (Latin: By right of the King and the Senate of England).

context: During the period of the Napoleonic Wars, the East India Company arranged for letters of marque for its vessels such as the Lord Nelson. This was not so that they could carry cannon to fend off warships, privateers and pirates on their voyages to India and China (that they could do without permission) but so that, should they have the opportunity to take a prize, they could do so without being guilty of piracy. Similarly, the Earl of Mornington, an East India Company packet ship of only six guns, also sailed under a letter of marque.

context: At the Battle of Pulo Aura, which was probably the company's most notable naval victory, Nathaniel Dance, Commodore of a convoy of Indiamen and sailing aboard the Warley, led several Indiamen in a skirmish with a French squadron, driving them off. Some six years earlier, on 28 January 1797, five Indiamen, the Woodford, under Captain Charles Lennox, the Taunton-Castle, Captain Edward Studd, Canton, Captain Abel Vyvyan, and Boddam, Captain George Palmer, and Ocean, Captain John Christian Lochner, had encountered Admiral de Sercey and his squadron of frigates. On this occasion the Indiamen also succeeded in bluffing their way to safety, and without any shots even being fired. Lastly, on 15 June 1795, the General Goddard played a large role in the capture of seven Dutch East Indiamen off St Helena.

context: Unlike all other British Government records, the records from the East India Company (and its successor the India Office) are not in The National Archives at Kew, London, but are held by the British Library in London as part of the Asia, Pacific and Africa Collections. The catalogue is searchable online in the Access to Archives catalogues. Many of the East India Company records are freely available online under an agreement that the Families in British India Society has with the British Library. Published catalogues exist of East India Company ships' journals and logs, 1600–1834; and of some of the Company's daughter institutions, including the East India Company College, Haileybury, and Addiscombe Military Seminary.