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Dupleix；　the　French　governor　of　Pondicherry；　involved　them　in　the

wars　of　the　Carnatic；　and　in　the　politics　of　the　Indian　princes。

After　many　signal　successes；　and　equally　signal　losses；　they　at

last　lost　Madras；　at　that　time　their　principal　settlement　in

India。　It　was　restored　to　them　by　the　Treaty　of　Aix…la…Chapelle；

and　about　this　time　the　spirit　of　war　and　conquest　seems　to　have

taken　possession　of　their　servants　in　India；　and　never　since　to

have　left　them。　During　the　French　war；　which　began　in　1755；　their

arms　partook　of　the　general　good　fortune　of　those　of　Great

Britain。　They　defended　Madras；　took　Pondicherry；　recovered

Calcutta；　and　acquired　the　revenues　of　a　rich　and　extensive

territory；　amounting；　it　was　then　said；　to　upwards　of　three

millions　a　year。　They　remained　for　several　years　in　quiet

possession　of　this　revenue：　but　in　1767；　administration　laid

claim　to　their　territorial　acquisitions；　and　the　revenue　arising

from　them；　as　of　right　belonging　to　the　crown；　and　the　company；

in　compensation　for　this　claim；　agreed　to　pay　the　government　four

hundred　thousand　pounds　a　year。　They　had　before　this　gradually

augmented　their　dividend　from　about　six　to　ten　per　cent；　that　is；

upon　their　capital　of　three　millions　two　hundred　thousand　pounds

they　had　increased　it　by　a　hundred　and　twenty…eight　thousand

pounds；　or　had　raised　it　from　one　hundred　and　ninety…two　thousand

to　three　hundred　and　twenty　thousand　pounds　a　year。　They　were

attempting　about　this　time　to　raise　it　still　further；　to　twelve

and　a　half　per　cent；　which　would　have　made　their　annual　payments

to　their　proprietors　equal　to　what　they　had　agreed　to　pay

annually　to　government；　or　to　four　hundred　thousand　pounds　a

year。

　　　　　But　during　the　two　years　in　which　their　agreement　with

government　was　to　take　place；　they　were　restrained　from　any

further　increase　of　dividend　by　two　successive　Acts　of

Parliament；　of　which　the　object　was　to　enable　them　to　make　a

speedier　progress　in　the　payment　of　their　debts；　which　were　at

this　time　estimated　at　upwards　of　six　or　seven　millions　sterling。

In　1769；　they　renewed　their　agreement　with　government　for　five

years　more；　and　stipulated　that　during　the　course　of　that　period

they　should　be　allowed　gradually　to　increase　their　dividend　to

twelve　and　a　half　per　cent；　never　increasing　it；　however；　more

than　one　per　cent　in　one　year。　This　increase　of　dividend；

therefore；　when　it　had　risen　to　its　utmost　height；　could　augment

their　annual　payments；　to　their　proprietors　and　government

together；　but　by　six　hundred　and　eight　thousand　pounds　beyond

what　they　had　been　before　their　late　territorial　acquisitions。

What　the　gross　revenue　of　those　territorial　acquisitions　was

supposed　to　amount　to　has　already　been　mentioned；　and　by　an

account　brought　by　the　Cruttenden　East　Indiaman　in　1768；　the　net

revenue；　clear　of　all　deductions　and　military　charges；　was　stated

at　two　millions　forty…eight　thousand　seven　hundred　and

forty…seven　pounds。　They　were　said　at　the　same　time　to　possess

another　revenue；　arising　partly　from　lands；　but　chiefly　from　the

customs　established　at　their　different　settlements；　amounting　to

four　hundred　and　thirty…nine　thousand　pounds。　The　profits　of

their　trade　too；　according　to　the　evidence　of　their　chairman

before　the　House　of　Commons；　amounted　at　this　time　to　at　least

four　hundred　thousand　pounds　a　year；　according　to　that　of　their

accountant；　to　at　least　five　hundred　thousand；　according　to　the

lowest　account；　at　least　equal　to　the　highest　dividend　that　was

to　be　paid　to　their　proprietors。　So　great　a　revenue　might

certainly　have　afforded　an　augmentation　of　six　hundred　and　eight

thousand　pounds　in　their　annual　payments；　and　at　the　same　time

have　left　a　large　sinking　fund　sufficient　for　the　speedy

reduction　of　their　debts。　In　1773；　however；　their　debts；　instead

of　being　reduced；　were　augmented　by　an　arrear　to　the　treasury　in

the　payment　of　the　four　hundred　thousand　pounds；　by　another　to

the　custom…house　for　duties　unpaid；　by　a　large　debt　to　the　bank

for　money　borrowed；　and　by　a　fourth　for　bills　drawn　upon　them

from　India；　and　wantonly　accepted；　to　the　amount　of　upwards　of

twelve　hundred　thousand　pounds。　The　distress　which　these

accumulated　claims　brought　upon　them；　obliged　them　not　only　to

reduce　all　at　once　their　dividend　to　six　per　cent；　but　to　throw

themselves　upon　the　mercy　of　government；　and　to　supplicate；

first；　a　release　from　further　payment　of　the　stipulated　four

hundred　thousand　pounds　a　year；　and；　secondly；　a　loan　of　fourteen

hundred　thousand；　to　save　them　from　immediate　bankruptcy。　The

great　increase　of　their　fortune　had；　it　seems；　only　served　to

furnish　their　servants　with　a　pretext　for　greater　profusion；　and

a　cover　for　greater　malversation；　than　in　proportion　even　to　that

increase　of　fortune。　The　conduct　of　their　servants　in　India；　and

the　general　state　of　their　affairs　both　in　India　and　in　Europe；

became　the　subject　of　a　Parliamentary　inquiry；　in　consequence　of

which　several　very　important　alternations　were　made　in　the

constitution　of　their　government；　both　at　home　and　abroad。　In

India　their　principal　settlements　of　Madras；　Bombay；　and

Calcutta；　which　had　before　been　altogether　independent　of　one

another；　were　subjected　to　a　governor…general；　assisted　by　a

council　of　four　assessors；　Parliament　assuming　to　itself　the

first　nomination　of　this　governor　and　council　who　were　to　reside

at　Calcutta；　that　city　having　now　become；　what　Madras　was　before；

the　most　important　of　the　English　settlements　in　India。　The　Court

of　the　Mayor　of　Calcutta；　originally　instituted　for　the　trial　of

mercantile　causes　which　arose　in　city　and　neighbourhood；　had

gradually　extended　its　jurisdiction　with　the　extension　of　the

empire。　It　was　now　reduced　and　confined　to　the　original　purpose

of　its　institution。　Instead　of　it　a　new　supreme　court　of

judicature　was　established；　consisting　of　a　chief　justice　and

three　judges　to　be　appointed　by　the　crown。　In　Europe；　the

qualification　necessary　to　entitle　a　proprietor　to　vote　at　their

general　courts　was　raised　from　five　hundred　pounds；　the　original

price　of　a　share　in　the　stock　of　the　company；　to　a　thousand

pounds。　In　order　to　vote　upon　this　qualification　too；　it　was

declared　necessary　that　he　should　have　possessed　it；　if　acquired

by　his　own　purchase；　and　not　by　inheritance；　for　at　least　one

year；　instead　of　six　months；　the　term　requisite　before。　The　court

of　twenty…four　directors　had　before　been　chosen　annually；　but　it

was　now　enacted　that　each　director　should；　for　the　future；　be

chosen　for　four　years；　six　of　them；　however；　to　go　out　of　office

by　rotation　every　year；　and　not　to　be　capable　of　being　re…chosen

at　the　election　of　the　six　new　directors　for　the　ensuing　year。　In

consequence　of　these　alterations；　the　courts；　both　of　the

proprietors　and　directors；　it　was　expected；　would　be　likely　to

act　with　more　dignity　and　steadiness　than　they　had　usually　done

before。　But　it　seems　impossible；　by　any　alterations；　to　render

those　courts；　in　any　respect；　fit　to　govern；　or　even　to　share　in

the　government　of　a　great　empire；　because　the　greater　part　of

their　members　must　always　have　too　little　interest　in　the

prosperity　of　that　empire　to　give　any　serious　attention　to　what

may　promote　it。　Frequently　a　man　of　great；　sometimes　even　a　man

of　small　fortune；　is　willing　to　purchase　a　thousand　pounds'　share

in　India　stock　merely　for　the　influence　which　he　expects　to

acquire　by　a　vote　in　the　court　of　proprietors。　It　gives　him　a

share；　though　not　in　the　plunder；　yet　in　the　appointment　of　the

plunderers　of　India；　the　court　of　directors；　though　they　make

that　appointment；　being　necessarily　more　or　less　under　the

influence　of　the　proprietors；　who　not　only　elect　those　directors；

but　sometimes　overrule　the　appointments　of　their　servants　in

India。　Provided　he　can　enjoy　this　influence　for　a　few　years；　and

thereby　provide　for　a　certain　number　of　his　friends；　he

frequently　cares　little　about　the　dividend；　or　even　about　the

value　of　the　stock　upon　which　his　vote　is　founded。　About　the

prosperity　of　the　great　empire；　in　the　government　of　which　that

vote　gives　him　a　share；　he　seldom　cares　at　all。　No　other

sovereigns　ever　were；　or；　from　the　nature　of　things；　ever　could

be；　so　perfectly　indifferent　about　the　happiness　or　misery　of

their　subjects；　the　improvement　or　waste　of　their　dominions；　the

glory　or　disgrace　of　their　administration；　as；　from　irresistible

moral　causes；　the　greater　part　of　the　proprietors　of　such　a

mercantile　company　are；　and　necessarily　must　be。　This

indifference；　too；　was　more　likely　to　be　increased　than

diminished　by　some　of　the　new　regulations　which　were　made　in

consequence　of　the　Parliamentary　inquiry。　By　a　resolution　of　the

House　of　Commons；　for　example；　it　was　declared；　that　when　the

fourteen　hundred　thousand　pounds　lent　to　the　company　by

government　should　be　paid；　and　their　bond…debts　be　reduced　to

fifteen　hundred　tho