garded, had led it to send out supervisors in the year 1769; these gentlemen were invested with very extensive powers, by the exercise of which, it was hoped, that a general reform would have been brought about, and a radical cure of these growing evils effected. But the ship in which they were embarked, was never heard of after the failed from the Cape of Good Hope, fo that the mal-administration in Hindoftan continued without reftraint or control. The bill which Mr. Sullivan brought in during the last seffion of parliament, but which the house rejected, aimed at new modelling entirely the government of Bengal. During the fummer, the company had refolved on fending out fupervifors to India, and fix gentlemen were nominated to that important truft*,

When the addrefs, in answer to the king's fpeech was moved for in the house of Commons, by the Hon. Mr. Fitzpatrick, he expatiated on the enormous abufes practifed in India, and reprefented the Company as being in a ruinous and defperate condition. Lord North drew a different picture. He faid, that from every thing he could learn respecting the state of the Company, their embarrassments, though grievous for the present, were not of such a nature as to weaken their stability; that their vast stock of teas, and the merchandize imported from their different fettlements, all which were fafely depofited at home; befides their property in India, and what were floating on the feas, proved that their present embarraffments were only temporary, and ought not to affect the credit of the company, He then made a motion that a committee of secrecy, confifting of thirteen perfons, fhould be chofen by ballot;

* General Monckton, George Cumming, William Devaynes, Peter Lafcelles, Daniel Wier, and Edward Wheeler, Efqs.

which

which after confiderable oppofition, was adopted by the houfe*. This committee was furnished with full powers, and it was laid down to them, as an inftruction, to take, into particular confideration, the measure of fending out a commiffion of fupervision to any part of our territories in the Eaft-Indies. The felect committee which had been chofen the laft feffion was then revived, more perhaps from. a refpect to the members who compofed it, than from any views which the minifter had of accomplishing his purposes by its means.

The chairman of the fecret committee reported to the houfe, on the feventh of December, that the Eaft-India company, notwithstanding their acknowledged diftreffes for want of money, were preparing to send out a commiffion of supervisors to India, the expence attending which was. calculated at 120,000l. per annum, which would still add to their diftrefs; and recommended that a bill fhould be brought in, to reftrain them for a limited time, from fending out supervisors; and a bill was brought in accordingly.

All the powers of eloquence, and force of reasoning, where called forth in the difcuffion of this momentous point. The attorney and folicitor-general contended that: the charter of the company did not empower it to appoint fupervisors. The malverfations which had been fo long practifed with impunity in the Eaft, were reprefented as too enormous for any effort of the court of directors to

*The gentlemen chofen were Mr, Alderman Harley, chairman, (whofe great uncle, the firft Earl of Oxford, was an arbitrator chofen to adjust the interests of the two Eaft-India companies, when they were united in 1701) Lord Frederick Campbell, Lord Palmerstone, Mr. Rigby, Mr. Stanley, Mr. Jenkinson, Mr. Jackson, Mr. Fitzpatrick, Mr. Burrel, Mr. Ryder, Mr. Walpole, Mr. Eaines, and Mr. Gilbert.

correct; and that the powers which government poffeffed, were alone capable of restoring the inhabitants of Hindostan to the secure enjoyment of liberty and property, curbing rapacity and violence, and directing the revenues of that extenfive country into their proper channels. The subject naturally led to an enquiry, whether a company of merchants, acting under a charter, have a right to conquer and hold to themselves dominions, and establish civil regulations there, independent of the ftate to which they belong.

In the progrefs of this reftraining bill through the house, Mr. Sullivan delivered a petition from the East-India company against it*; in which, with all deference to the wifdom and supreme authority of parliament, they represent the bill as fubverfive of those rights which they hold under their charter; the privileges of which have been purchased by their predeceffors from the public for a valuable confideration, confirmed by several acts of parliament; the provifions of which the petitioners are not in any degree conscious of having violated.

It then complained, that the report of the fecret committee, upon which the bill was to proceed, was erroneous with respect to the calculation of the expences; and if their affairs had been examined in a public manner, the petitioners might have had an opportunity of attending to their several interefts; the report which would then have been made, would have been very different from that which has appeared. It then stated, that the expences of the commiffion was defigned to have been defrayed from a part of the favings proposed to be made thereby, so that the creditors of the Company could not have been injured in any degree, but must have been on the contrary greatly benefited. It fuggested

* It was figned by no more than fourteen proprietors of ftock.

the

the dangerous confequences to the Company arifing from fuch a bill, which would prevent them from taking the neceffary steps for the arrangement of their affairs, and thereby may deprive them of the means of fulfilling their engagements to the public; and concluded with claiming, with all humility, the benefit of the law of the land, and the public faith of the nation, for the free enjoyment and exercise of the rights and powers which they held under their charter; and prayed, that they may be heard by themselves, or their counsel, against the bill.

Counsel being hereupon admitted, it was given in evidence at the bar of the house, that government had received by the nett duties, and the ftipulated 400,000l. little less

an two millions annually from the Company; which at the fame time had loft a million by the indemnity agreement upon tea, of which 700,000l. went to government, and the remainder to the purchafers. The whole of the Company's receipts of dividends during the five last years, scarcely amounted to 900,000l. more than 6 per cent. upon its capital, which was the lowest trading dividend that had ever been made during the most expensive and dangerous war. It appeared upon the whole, that the Company's mercantile profits during the above period, amounted, on an average, tó 464,000l. annually, which would have afforded a dividend of 12 and a half per cent. fo that while government profited to the great amount of two millions, the proprietary, instead of reaping any benefit, loft confiderably of the dividend, which the profit of their trade only, independent of the territorial revenues, would have afforded.

These facts were much infifted on by the counsel who were heard on the third reading. The abufes in India, * December 18.

particularly

particularly at Bengal, were reprefented with equal precifion. In the military establishment there, the annual expence of thirty-thoufand foldiers, not four thoufand of whom were Europeans, amounted to above a million. At Fort St. George, where an army of twenty-three thousand men was maintained, of which four thoufand four hundred were Europeans, the annual expence was near 300,0001. By putting the Bengal army on a fimilar footing with that at Fort St. George, the expence ought to be very little more than 400,000l. If this reform could by any means be brought about, the faving to the Company would exceed half a million annually.

The fame gradation of profufion was observed in the civil eftablishment. At Bengal, one hundred and feventy-one civil fervants, annually coft the Company 300,000l. and at Fort St. George one hundred and fourteen civil fervants coft only 50,000l. Thefe were faid to be proper objects of regulation; and it was evident great favings, and fuch as: prodigioufly exceeded the expences of fupervifors, might be made.

Befides the regulations neceffary to be introduced into the civil and military establishments, other economical plans might be adopted. Great abufes had been committed in making additional fortifications and building barracks. The whole expence of forts fince 1765, the time when the select committee at Bengal was first inftituted, amounted to more than 1,200,000l. The natives were likewife grievously oppreffed, not only by heavy duties on all the neceffaries of life, but by a tax called Matoot, which was levied under pretext of repairing bridges, roads, &c. the produce of which was divided among the committee *.

Mr. Sykes, who was then in the house, was charged with having received several thousands per annum from this tax, which was levied for five years without the knowledge of the directors at home.

Until