East India Company

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This article is about the XVII-XIX century trading company. For other uses, see East India Company (disambiguation).

East India Company

Fate

Dissolved and activities absorbed by the British Raj

Founded

1600

Defunct

1858 (formally dissolved in 1873)

Headquarters

ondon

The East India Company (also the English East India Company[1] and then the British East India Company)[2] p%rs%in! trade as an early En!lish"oint#stock company[$] that as formed initially for ith the East Indies, &%t that ended %p tradin! mainly ith the Indian o!ernor and

s%&continent and China' The oldest amon! se(eral similarly formed E%ropean East India Companies, the Company as !ranted an En!lish)oyal Charter, %nder the name Company o" #erchants under the chairmanship o" $ord #ayor o" $ondon To "orm an association to trade directly %ith india, &y Eli*a&eth I on $1 +ecem&er 1,--'[.] /fter a ri(al En!lish company challen!ed its monopoly in the late 10th cent%ry, the t o companies ere mer!ed in 10-1 to form the &nited Company o" #erchants o" England Trading to the East Indies , commonly styled the Honourable East India Company,[2] and a&&re(iated, HEIC3[,] the Company as collo4%ially referred to asJohn Company,[0] and in India as Company Bahadur (5ind%stani bah'dur, 6&ra(e6)'[1] The East India Company traded mainly in cotton, silk, indi!o dye, saltpetre, tea, and opi%m' 5o e(er, it also came to r%le lar!e s athes of India, e7ercisin! military po er and ass%min!

administrati(e f%nctions, to the e7cl%sion, !rad%ally, of its commercial p%rs%its' Company r%le in India, hich effecti(ely &e!an in 1020 after the 8attle of 9lassey, lasted %ntil 1121, hen, follo in! the e(ents of the Indian )e&ellion of 1120, and %nder the :o(ernment of India /ct 1121, the 8ritish Cro n ass%med direct administration of India in the ne )edemption /ct' The Company lon! held a pri(ile!ed position in relation to the En!lish, and later the 8ritish, !o(ernment' /s a res%lt, it as fre4%ently !ranted special ri!hts and pri(ile!es, incl%din! ho sa trade monopolies and e7emptions' These ca%sed resentment amon! its competitors, po erf%l force for o(er 2-- years o(er India' In 2--2, <an"i( >ehta, an Indian &%sinessman &o%!ht East India Company from the 6$- to .people6 ho o ned the shares of East India Company [?]' <tartin! ith >ayfair in Central @ondon, >r' >ehta plans to la%nch se(eral stores aro%nd the India Company &rand[1-]'
Contents
!hide"

8ritish )a"' The Company

itself as finally dissol(ed on 1 ;an%ary 110., as a res%lt of the East India <tock +i(idend

%nfair ad(anta!e in the Company=s position' +espite this resentment, the Company remained a

orld for sellin! l%7%ry !oods %nder the East

1 #istory

o o o o o o

1$1 %he fo&ndation years 1$' (oothold in )ndia 1$3 *+,ansion 1$- %he road to a com,lete mono,oly 1$-$1 %rade mono,oly 1$-$' .alt,etre trade 1$5 %he basis for the mono,oly 1$5$1 /olonial mono,oly 1$5$' 0ilitary e+,ansion 1$5$3 1,i&m trade 1$6 Re2&lation of the com,any3s affairs 1$6$1 (inancial tro&bles 1$6$' Re2&latin2 4cts of 5arliament 1$6$'$1 *ast )ndia /om,any 4ct 1773 1$6$'$' *ast )ndia /om,any 4ct (5itt3s )ndia 4ct) 1781$6$'$3 4ct of 1786

 o
' e2acy 3 *ast )ndia /l&b - (la2s 5 .hi,s

1$6$'$- /harter 4ct 1813 1$6$'$5 /harter 4ct 1833 1$6$'$6 /harter 4ct 1853 1$7 )ndian Rebellion of 185768

6 *ast )ndia /om,any records 7 %radin2 42ain 8 .ee also 7 8otes 10 References 11 *+ternal lin9s

[edit]History [edit]The

foundation years
as

<oon after the defeat of the <panish /rmada in 1211, a !ro%p of merchants of @ondon presented a petition to A%een Eli*a&eth I for permission to sail to the Indian Bcean'[11] The permission !ranted and in 12?1 three ships sailed from En!land, aro%nd the Cape of :ood 5ope, to the /ra&ian <ea3 one of them, the Ed%ard (ona!enture then sailed aro%nd Cape Comorin and on to the >alay 9enins%la, and s%&se4%ently ret%rned to En!land in 12?.' [11] In 12?,, three more ships sailed o%t east, ho e(er, these ere all lost at sea' [11] T o years later, on 2. <eptem&er 12?1, another !ro%p of merchants of @ondon, ha(in! raised C$-,1$$ in capital, met to form a corporation' /ltho%!h their first attempt as %ns%ccessf%l, they nonetheless set a&o%t seekin! the A%een=s %nofficial appro(al, p%rchased ships for their (ent%re, increased their capital to C,1,$0$, and con(ened a!ain a year later'[11] This time they s%cceeded, and on $1 +ecem&er 1,--, the A%een !ranted a )oyal Charter to 6:eor!e, Earl of C%m&erland, and 012 Dni!hts, /ldermen, and 8%r!esses6 %nder the name, o" $ondon trading %ith the East Indies'
[12]

o!ernor and Company o" #erchants

The charter a arded the ne ly formed company, for a est of the <traits of >a!ellan'[12] <ir ;ames

period of fifteen years, a monopoly of trade (kno n today as a patent) ith all co%ntries to the east of the Cape of :ood 5ope and to the @ancaster commanded the first East India Company (oya!e in 1,-1' [1$]

Initially, the Company str%!!led in the spice trade d%e to the competition from the already ell esta&lished +%tch' 5o e(er the Company did open a factory (tradin! post) in 8antam on the first (oya!e and imports of pepper from ;a(a ere an important part of the Company=s trade for hich as esta&lished as a trade transit point in t enty years' The factory in 8antam as finally closed in 111$' +%rin! this time ships &elon!in! to the company arri(ed in India, dockin! at <%rat, 1,-1' In the ne7t t o years, it mana!ed to &%ild its first factory in the to n of>achilipatnam on the Coromandel Coast of the 8ay of 8en!al' The hi!h profits reported &y the Company after landin! in India (pres%ma&ly o in! to a red%ction in o(erhead costs affected &y the transit points), initially prompted Din! ;ames I to !rant s%&sidiary licenses to other tradin! companies in En!land' 8%t, in 1,-?, he rene ed the charter !i(en to the Company for an indefinite period, incl%din! a cla%se hich specified that the charter o%ld cease to &e in force if the trade t%rned %nprofita&le for three consec%ti(e years' The Company as led &y one :o(ernor and 2. directors committees reportin! to it' [edit]Foothold ho made %p the Co%rt of +irectors'

They ere appointed &y, and reported to, the Co%rt of 9roprietors' The Co%rt of +irectors had ten

in India

En!lish traders fre4%ently en!a!ed in hostilities ith their +%tch and 9ort%!%ese co%nterparts in the Indian Bcean' The Company achie(ed a ma"or (ictory o(er the 9ort%!%ese in the 8attle of < ally in 1,12' 9erhaps reali*in! the cost of a!in! trade ars in remote seas, the Company ith official decided to e7plore the feasi&ility of !ainin! a territorial foothold in mainland India, Thomas )oe

sanction of &oth co%ntries, and re4%ested the Cro n to la%nch a diplomatic mission' In 1,12, <ir as instr%cted &y ;ames I to (isit the >%!hal Emperor E%r%ddin <alim;ahan!ir (r' o%ld !i(e the Company e7cl%si(e ri!hts 1,-2 # 1,20) to arran!e for a commercial treaty hich

to reside and &%ild factories in <%rat and other areas' In ret%rn, the Company offered to pro(ide the Emperor ith !oods and rarities from the E%ropean market' This mission as hi!hly s%ccessf%l as ;ahan!ir sent a letter to ;ames thro%!h <ir Thomas )oeF [1.]
Gpon hich ass%rance of yo%r royal lo(e I ha(e !i(en my !eneral command to all the kin!doms and ports of hat my dominions to recei(e all the merchants of the En!lish nation as the s%&"ects of my friend3 that in

place soe(er they choose to li(e, they may ha(e free li&erty itho%t any restraint3 and at hat port soe(er they shall arri(e, that neither 9ort%!al nor any other shall dare to molest their 4%iet3 and in hat city soe(er they shall ha(e residence, I ha(e commanded all my !o(ernors and captains to !i(e them freedom ans era&le to their o n desires3 to sell, &%y, and to transport into their co%ntry at their pleas%re' For confirmation of o%r lo(e and friendship, I desire yo%r >a"esty to command yo%r merchants to &rin! in their ships of all sorts of rarities and rich !oods fit for my palace3 and that yo% &e pleased to send me yo%r royal letters &y e(ery opport%nity, that I may re"oice in yo%r health and prospero%s affairs3 that o%r friendship may &e interchan!ed and eternal'

[edit]Expansion
%his section re:&ires e+,ansion$

The Company, &enefitin! from the imperial patrona!e, soon e7panded its commercial tradin! operations, eclipsin! the 9ort%!%ese Estado da India, hich had esta&lished &ases in :oa,Chitta!on! and 8om&ay ( hich as later ceded to En!land as part of the do ry of Catherine de 8ra!an*a)' The Company created tradin! posts in <%rat ( here a factory as &%ilt in 1,12),>adras (1,$?), 8om&ay (1,,1) and Calc%tta (1,?-)' 8y 1,.0, the Company had 2$ factories, each %nder the command of a factor or master merchant and !o(ernor if so chosen, and ?- employees in India' The ma"or factories &ecame the alled forts of Fort William in 8en!al, Fort <t :eor!e in >adras and the 8om&ay Castle' In 1,$., the >%!hal emperor e7tended his hospitality to the En!lish traders to the re!ion of 8en!al (and in 1010 completely ai(ed c%stoms d%ties for the trade)' The company=s mainstay &%sinesses ere &y no in cotton, silk, indi!o dye, saltpetre and tea' /ll the hile in 1,2-#2,, it as makin! inroads into the +%tch monopoly of the spice trade in the >alaccan straits, hich the +%tch had ac4%ired &y o%stin! the 9ort%!%ese in 1,.-#.1' In 1,20, Bli(er Crom ell rene ed the charter of 1,-?, and &ro%!ht a&o%t minor chan!es in the holdin! of the Company' The stat%s of the Company as f%rther enhanced &y the restoration of monarchy in En!land' 8y a series of fi(e acts aro%nd 1,0-, Din! Charles II pro(isioned it ith the ri!hts to a%tonomo%s territorial ac4%isitions, to mint money, to command fortresses and troops and form alliances, to make ar and peace, and to e7ercise &oth ci(il and criminal "%risdiction o(er the ac4%ired areas' [citation
needed]

In 1011, the Company esta&lished a tradin! post in Canton (:%an!*ho%), China, to

trade tea for sil(er' [edit]The

road to a complete monopoly

%his section needs additional citations for verification.
5lease hel, im,rove this article by addin2 reliable references$ ;nso&rced material may be challen2ed and removed$ (May 2008)

[edit]Trade monopoly

The prosperity that the officers of the company en"oyed allo ed them to ret%rn to their co%ntry and esta&lish spra lin! estates and &%sinesses, and to o&tain political po er' Conse4%ently, the Company de(eloped for itself a lo&&y in the En!lish parliament' 5o e(er, %nder press%re from am&itio%s tradesmen and former associates of the Company (pe"orati(ely termed Interlopers &y the Company), ho anted to esta&lish pri(ate tradin! firms in India, a dere!%latin! act as ith India, %nless specifically prohi&ited &y as in force for almost 1-- years' 8y an act passed in 1,?.' This allo ed any En!lish firm to trade act of parliament, there&y ann%llin! the charter that that

as passed in 1,?1, a ne 6parallel6 East India Company (officially titled the English

Company Trading to the East Indies) as floated %nder a state#&acked indemnity of C2 million' 5o e(er, the po erf%l stockholders of the old company 4%ickly s%&scri&ed a s%m of C$12,--- in the ne concern, and dominated the ne &ody' The t o companies restled ith each other for some time, &oth in En!land and in India, for a dominant share of the trade' 5o e(er, it 4%ickly &ecame e(ident that, in practice, the ori!inal Company faced scarcely any meas%ra&le competition' 8oth companies finally mer!ed in 10-1, &y a tripartite indent%re in(ol(in! them &oth as ell as the state' Gnder this arran!ement, the mer!ed company lent to the Treas%ry a s%m of C$,2--,---, in ret%rn for e7cl%si(e pri(ile!es for the ne7t three years, after hich the sit%ation as to &e re(ie ed' The amal!amated company &ecame the &nited Company o" #erchants o" England Trading to the East Indies'[citation needed] In the follo in! decades there illin!ly allo as a constant see#sa &attle &et een the Company lo&&y and hile the 9arliament o%ld not

the 9arliament' The Company so%!ht a permanent esta&lishment,

it !reater a%tonomy, and so relin4%ish the opport%nity to e7ploit the Company=s

profits' In 1012, another act rene ed the stat%s of the Company, tho%!h the de&ts ere repaid' 8y 102-, 12H of 8ritish imports ere from India, almost all passin! thro%!h the Company, hich reasserted the infl%ence of the Company lo&&y' The license another act in 10$-' /t this time, 8ritain and France &ecame &itter ri(als' Fre4%ent skirmishes &et een them took place for control of colonial possessions' In 10.2, fearin! the monetary conse4%ences of a ar, the 8ritish !o(ernment a!reed to e7tend the deadline for the licensed e7cl%si(e trade &y the Company in India %ntil 101$, in ret%rn for a f%rther loan of C1 million' The skirmishes did escalate to the feared /merica' The ar' 8et een 102, and 10,$, the <e(en Iears= War di(erted the state=s attention ar took place on Indian soil, &et een the Company troops and the French forces' Bfficers of the Cro ndeli(ered the 9ratt#Iorke to ards consolidation and defence of its territorial possessions in E%rope and itscolonies in Eorth This an!ered the Indian people' In 1020, the @a as prolon!ed %ntil 10,, &y yet

opinion distin!%ishin! o(erseas territories ac4%ired &y con4%est from those ac4%ired &y pri(ate treaty' The opinion asserted that, hile the Cro n of :reat 8ritain en"oyed so(erei!nty o(er &oth, only the property of the former as (ested in the Cro n' [12] With the ad(ent of the Ind%strial )e(ol%tion, 8ritain s%r!ed ahead of its E%ropean ri(als' +emand for Indian commodities as &oosted &y the need to s%stain the troops and the economy d%rin! the ar, and &y the increased a(aila&ility of ra materials and efficient methods of prod%ction' /s home to the re(ol%tion, 8ritain e7perienced hi!her standards of li(in!' Its spirallin! cycle of prosperity, demand and prod%ction had a profo%nd infl%ence on o(erseas trade' The Company &ecame the sin!le lar!est player in the 8ritish !lo&al market' It reser(ed for itself an %nassaila&le position in the decision#makin! process of the :o(ernment'

William 9yne notes in his &ook The #icrocosm o" $ondon (11-1) that 6Bn the 1 >arch 11-1, the de&ts of the East India Company to C2,$?$,?1? their effects to C12,.-.,0$, and their sales increased since Fe&r%ary 10?$, from C.,?11,$-- to C0,,-2,-.1'6 [edit] altpetre trade <ir ;ohn 8anks, a &%sinessman from Dent ho ne!otiated an a!reement &et een the Din! 9epys and ;ohn E(elyn and

and the Company, &e!an his career in a syndicate arran!in! contracts for (ict%allin! the na(y, an interest he kept %p for most of his life' 5e kne fo%nded a s%&stantial fort%ne from the @e(ant and Indian trades' 5e also &ecame a +irector and later, as :o(ernor of the East Indian Company in 1,02, he as a&le to arran!e a contract hich incl%ded a loan of C2-,--- and C$-,--price it shall sell &y the candle= &%rned and as lon! as it
[citation needed ]

orth of saltpetre for the Din! =at the

# that is &y a%ction # here an inch of candle hich is to &e e7pressed in tallies'= [citation needed] This

as ali!ht &iddin! co%ld contin%e' The a!reement also incl%ded

ith the price =an allo ance of interest

as somethin! of a &reakthro%!h in royal prero!ati(e &eca%se pre(io%s re4%ests for the Din! to &%y at the Company=s a%ctions had &een t%rned do n as =not hono%ra&le or decent'=[citation needed] B%tstandin! de&ts ere also a!reed and the Company permitted to e7port 22- tons of saltpetre' /!ain in 1,0$, 8anks s%ccessf%lly ne!otiated another contract for 0-- tons of saltpetre at C$0,--- &et een the Din! and the Company' <o %r!ent a%thorities sometimes t%rned a &lind eye on the %nta7ed sales' Bne !o(ernor of the Company as e(en reported as sayin! in 11,. that he o%ld rather ha(e the saltpetre made than the ta7 on salt'[1,] [edit]The as the need to s%pply the armed forces in the Gnited Din!dom, /merica and else here that the

basis for the monopoly

[edit]Colonial monopoly

)o&ert Cli(e, 1st 8aron Cli(e, &ecame the first 8ritish :o(ernor of 8en!al'

Further in"ormation)

reat (ritain in the *e!en +ears ,ar

The <e(en Iears= War (102, J 10,$) res%lted in the defeat of the French forces and limited French imperial am&itions, also st%ntin! the infl%ence of the ind%strial re(ol%tion in French territories' )o&ert Cli(e, the :o(ernor :eneral, led the Company to an asto%ndin! (ictory a!ainst ;oseph FranKois +%plei7, the commander of the French forces in India, and recapt%red Fort <t :eor!e from the French' The Company took this respite to sei*e >anila[10] in 10,2' 8y the Treaty of 9aris (10,$), the French and Chanderna!ar ere allo ed to maintain their trade posts only in small encla(es in9ondicherry, >ahe, Darikal, Ianam, itho%t any military presence' /ltho%!h these small o%tposts remained French possessions for the ne7t t o h%ndred years, French am&itions on Indian territories ere effecti(ely laid to rest, th%s eliminatin! a ma"or so%rce of economic competition for the Company' In contrast, the Company, fresh from a colossal (ictory, and ith the &ackin! of a disciplined and e7perienced army, as a&le to assert its interests in the Carnatic from its &ase at >adras and in 8en!al from Calc%tta, itho%t facin! any f%rther o&stacles from other colonial po ers'[citation needed] [edit]!ilitary expansion #ain article) Company rule in India The Company contin%ed to e7perience resistance from local r%lers d%rin! its e7pansion' )o&ert Cli(e led company forces a!ainst <ira" Gd +a%lah, the last independent Ea a& of 8en!al,8ihar and Brissa(only >idnapore district) to (ictory at the 8attle of 9lassey in 1020, res%ltin! in the con4%est of 8en!al' This (ictory estran!ed the 8ritish and the >%!hals, since <ira" Gd +a%lah empire as a >%!hal fe%datory ally' 8%t the >%!hal as &reakin! %p into as already on the ane after the demise of /%ran!*e&, and

pieces and encla(es' /fter the 8attle of 8%7ar, <hah /lam II, the r%lin! emperor, !a(e %p the administrati(e ri!hts o(er 8en!al, 8ihar, and Brissa (only >idnapore district, rest of Brissa as %nder the r%le of >aratha and Ei*am of5ydera&ad)' Cli(e th%s &ecame the first 8ritish :o(ernor of 8en!al' 5aidar /li and Tip% <%ltan, the le!endary r%lers of >ysore (in Carnatic, modern day Indian state of Darnataka # capital city 8an!alore), !a(e a to%!h time to the 8ritish forces' 5a(in! sided 10??, ith the French d%rin! the ar, the r%lers of >ysore contin%ed their str%!!le a!ainst ith the slayin! of Tip% <%ltan' the Company ith the fo%r /n!lo#>ysore Wars' >ysore finally fell to the Company forces in

With the !rad%al eakenin! of the >aratha empire in the aftermath of the three /n!lo# >aratha ars, the 8ritish also sec%red 8om&ay and the s%rro%ndin! areas' It as d%rin! these campai!ns, &oth a!ainst >ysore and the >arathas, that /rth%r Wellesley, later +%ke

of Wellin!ton, first sho ed the a&ilities hich o%ld lead to (ictory in the 9enins%lar War and at the8attle of Waterloo' / partic%larly nota&le en!a!ement in(ol(in! forces %nder his command as the 8attle of /ssaye' Th%s, the 8ritish had sec%red the entire re!ion of <o%thern India ( ith the e7ception of small encla(es of French and local r%lers), Western India and Eastern India' The last (esti!es of local administration +elhi, B%dh, )a"p%tana, and 9%n"a&, ere restricted to the northern re!ions of

here the Company=s presence as e(er increasin!

amidst the infi!htin! and d%&io%s offers of protection a!ainst each other' Coerci(e action, threats and diplomacy aided the Company in pre(entin! the local r%lers from p%ttin! %p a %nited str%!!le a!ainst it' The h%ndred years from the 8attle of 9lassey in 1020 to the <epoy >%tiny of 1120 ere a period of consolidation for the Company, hich &e!an to f%nction more as a nation and less as a tradin! concern' The first cholera pandemic &e!an in 8en!al, then spread across India &y 112-' 1-,--8ritish troops and co%ntless Indians died d%rin! this pandemic'[11] 8et een 10$, and 11$. only some 1-H of East India Company=s officers s%r(i(ed to take the final (oya!e home' [1?] [edit]"pium trade #ain article) -pium ,ars In the ei!hteenth cent%ry, 8ritain had a h%!e trade deficit ith Ain! +ynasty China and so in

100$, the Company created a 8ritish monopoly on opi%m &%yin! in 8en!al' /s opi%m trade as ille!al in China, Company ships co%ld not carry opi%m to China' <o the opi%m prod%ced in 8en!al as sold in Calc%tta on condition that it &e sent to China'[2-] +espite the Chinese &an on opi%m imports, reaffirmed in 10??, it as sm%!!led into China from 8en!al &y traffickers and a!ency ho%ses (s%ch as ;ardine, >atheson and Company, @td') a(era!in! ?-- tons a year' The proceeds from dr%!#r%nners at @intin Island China as raised &y the ille!al opi%m trade' In 11$1, a ne ere paid into the CompanyLs factory at Canton and &y 1122, most of the money needed to &%y tea in ith opi%m sm%!!lin! approachin! 1,.--,--- tons a year, the Chinese imposed a death penalty on opi%m sm%!!lin! and sent !o(ernor, @in Me7% to c%r& sm%!!lin!' This finally res%lted in the First Bpi%m War, e(ent%ally leadin! to the 8ritish sei*%re of 5on! Don!' [edit]#egulation

of the company$s affairs

>onopolistic acti(ity &y the company tri!!ered the 8oston Tea 9arty'

[edit]Financial troubles Tho%!h the Company as &ecomin! increasin!ly &old and am&itio%s in p%ttin! do n resistin! states, it as !ettin! clearer day &y day that the Company as incapa&le of !o(ernin! the (ast e7panse of the capt%red territories' The 8en!al famine, in hich one# third of the local pop%lation died, set the alarm &ells rin!in! &ack home' >ilitary and administrati(e costs mo%nted &eyond control in 8ritish administered re!ions in 8en!al d%e to the ens%in! drop in la&o%r prod%cti(ity' /t the same time, there as commercial sta!nation and trade depression thro%!ho%t E%rope follo in! the l%ll in the post#Ind%strial )e(ol%tion period' The desperate directors of the company attempted to a(ert &ankr%ptcy &y appealin! to 9arliament for financial help' This led to the passin! of the Tea /ct in 100$, hich !a(e the Company !reater a%tonomy in r%nnin! its trade in /merica, and allo ed it an e7emption from the tea ta7N hich its colonial competitors ere re4%ired to pay' When the /merican colonists, ho incl%ded tea merchants, act, it ere told of the act, they tried to &oycott it, claimin! that, altho%!h the price had !one do n on the tea hen enforcin! the as a ta7 all the same, and the kin! sho%ld not ha(e the ri!ht to "%st ha(e a ta7 for no apparent reason' The arri(al of ta7#e7empt Company tea, %nderc%ttin! the local merchants, tri!!ered the 8oston Tea 9arty in the 9ro(ince of >assach%setts 8ay, one of the ma"or e(ents leadin! %p to the /merican )e(ol%tion' [edit]#egulating %cts of &arliament [edit]East India Company %ct '(() 8y this /ct (1$ :eo' III, c' ,$), the 9arliament of :reat 8ritain imposed a series of administrati(e and economic reforms and &y doin! so clearly esta&lished its so(erei!nty and %ltimate control o(er the Company' The /ct reco!ni*ed the Company=s political f%nctions

and clearly esta&lished that the 6ac4%isition of so(erei!nty &y the s%&"ects of the Cro n is on &ehalf of the Cro n and not in its o n ri!ht'6 +espite stiff resistance from the East India lo&&y in parliament, and from the Company=s shareholders, the /ct as passed' It introd%ced s%&stantial !o(ernmental control, and allo ed the land to &e formally %nder the control of the Cro n, &%t leased to the Company at C.-,--- for t o years' Gnder this pro(ision, the !o(ernor of 8en!al Warren 5astin!s as promoted to the rank of :o(ernor :eneral, ha(in! administrati(e po ers o(er all of 8ritish India' It pro(ided that his nomination, tho%!h made &y a co%rt of directors, sho%ld in f%t%re &e s%&"ect to the appro(al of a Co%ncil of Fo%r appointed &y the Cro n # namely @t' :eneral ;ohn Cla(erin!, :eor!e >onson, )ichard 8ar ell and 9hilip Francis' 5e the po er of peace and as entr%sted ith ar' 8ritish "%dicial personnel o%ld also &e sent to India to

administer the 8ritish le!al system' The :o(ernor :eneral and the co%ncil o%ld ha(e complete le!islati(e po ers' Th%s, Warren 5astin!s &ecame the first :o(ernor#:eneral of India' The company as allo ed to maintain its (irt%al monopoly o(er trade, in e7chan!e for the &iennial s%m and an o&li!ation to e7port a minim%m 4%antity of !oods yearly to 8ritain' The costs of administration ere also to &e met &y the company' These pro(isions, initially elcomed &y the Company, &ackfired' The Company had an ann%al &%rden on its &ack, and its finances contin%ed steadily to decline'[21] [edit]East India Company %ct *&itt$s India %ct+ '(,The India /ct of 101. (2. :eo' III, s' 2, c' 22) had t o key aspectsF )elationship to the 8ritish !o(ernmentF the &ill differentiated the East India Company=s political f%nctions from its commercial acti(ities' In political matters the East India Company as s%&ordinated to the 8ritish !o(ernment directly' To accomplish this, the /ct created a 8oard of Commissioners for the /ffairs of India, %s%ally referred to as the 8oard of Control' The mem&ers of the 8oard ere the Chancellor of the E7che4%er, a <ecretary of <tate, and fo%r 9ri(y Co%ncillors, nominated &y the Din!' The act specified that the <ecretary of <tate 6shall preside at, and &e 9resident of the said 8oard6' Internal /dministration of 8ritish IndiaF the &ill laid the fo%ndation for the centrali*ed and &%rea%cratic 8ritish administration of India hich 1st 8aron C%r*on' o%ld reach its peak at the &e!innin! of the t entieth cent%ry d%rin! the !o(ernor#!eneralship of :eor!e Eathaniel C%r*on,

The e7panded East India 5o%se, @eadenhall <treet, @ondon, as re&%ilt 10??#11--, )ichard ;%pp, architect (as seen c' 11103 demolished in 1?2?)

9itt=s /ct

as deemed a fail%re &eca%se it 4%ickly &ecame apparent that the &o%ndaries

&et een !o(ernment control and the company=s po ers ere ne&%lo%s and hi!hly s%&"ecti(e' The !o(ernment also felt o&li!ed to respond to h%manitarian calls for &etter treatment of local peoples in 8ritish#occ%pied territories' Edm%nd 8%rke, a former East India Company shareholder and diplomat, as mo(ed to address the sit%ation and introd%ced a ne )e!%latin! 8ill in 101$' The &ill as defeated, ho e(er, d%e to intense lo&&yin! &y company loyalists and acc%sations of nepotism in the &ill=s recommendations for the appointment of co%ncillors' [edit]%ct of '(,. This /ct (2, :eo' III c' 1,) enacted the demand of @ord Corn allis, that the po ers of the :o(ernor#:eneral &e enlar!ed to empo er him, in special cases, to o(erride the ma"ority of his Co%ncil and act on his o n special responsi&ility' The /ct also ena&led the offices of the :o(ernor#:eneral and the Commander#in#Chief to &e "ointly held &y the same official' This /ct clearly demarcated &orders &et een the Cro n and the Company' /fter this point, the Company f%nctioned as a re!%lari*ed s%&sidiary of the Cro n, ith !reater acco%nta&ility for its actions and reached a sta&le sta!e of e7pansion and consolidation' 5a(in! temporarily achie(ed a state of tr%ce ith the Cro n, the Company contin%ed to e7pand its infl%ence to near&y territories thro%!h threats and coerci(e actions' 8y the middle of the 1?th cent%ry, the Company=s r%le e7tended across most of India, 8%rma, >alaya,<in!apore and 5on! Don!, and a fifth of the %nder its tradin! infl%ence' [edit]Charter %ct ',') orld=s pop%lation as

The a!!ressi(e policies of @ord Wellesley and the >ar4%is of 5astin!s led to the Company !ainin! control of all India, e7cept for the 9%n"a&, <indh and Eepal' The Indian 9rinces had &ecome (assals of the Company' 8%t the e7pense of ars leadin! to the total control of India strained the CompanyLs finances to the &reakin! point' The Company as forced to petition 9arliament for assistance' This as the &ack!ro%nd to the Charter /ct of 111$ (2$ :eo' III c' 122) hich, amon! other thin!sF asserted the so(erei!nty of the 8ritish Cro n o(er the Indian territories held &y the Company3 rene ed the Charter of the Company for a f%rther t enty years &%t, depri(ed the Company of its Indian trade monopoly e7cept for trade in tea and the trade ith China3 re4%ired the Company to maintain separate and distinct its commercial and territorial acco%nts3 and, opened India to missionaries' [edit]Charter %ct ',)) The Ind%strial )e(ol%tion in 8ritain, and the conse4%ent search for markets, and the rise of laisse.-"aire economic ideolo!y form the &ack!ro%nd to this act' The /ctF remo(ed the Company=s remainin! trade monopolies and di(ested it of all its commercial f%nctions3 rene ed for another t enty years the CompanyLs political and administrati(e a%thority3 in(ested the 8oard of Control ith f%ll po er and a%thority o(er the Company' /s stated &y Dap%r 9rofessor <ri )am <harma, th%s, s%mmed %p the pointF 6The 9resident of the 8oard of Control no &ecame >inister for Indian /ffairs63 ith, f%ll po er and a%thority to s%perintend and, control carried f%rther the on!oin! process of administrati(e centrali*ation thro%!h in(estin! the :o(ernor#:eneral in Co%ncil the 9residency :o(ernments in all ci(il and military matters3 initiated a machinery for the codification of la s3 pro(ided that no Indian s%&"ect of the Company o%ld &e de&arred from holdin! any office %nder the Company &y reason of his reli!ion, place of &irth, descent or colo%r' 5o e(er, this remained a dead letter ell into the 2-th cent%ry3 (ested the Island of <t 5elena in the Cro n'

>ean hile, 8ritish infl%ence contin%ed to e7pand3 in 11.2, the +anish colony of Tran4%e&ar as sold to :reat 8ritain' The Company had at (ario%s sta!es e7tended its infl%ence to China, the 9hilippines, and ;a(a' It had sol(ed its critical lack of the cash needed to &%y tea &y e7portin! Indian#!ro n opi%m to China' China=s efforts to end the trade led to the First Bpi%m War ith 8ritain' [edit]Charter %ct ',/) This /ct pro(ided that 8ritish India [edit]Indian o%ld remain %nder the administration of the Company in

tr%st for the Cro n %ntil 9arliament sho%ld decide other ise'

#ebellion of ',/(0,

#ain article) Indian /ebellion o" 0123 The Indian )e&ellion of 1120, kno n to the 8ritish as the 6:reat >%tiny6, &%t to Indians as the 6First War of Independence6, res%lted in idespread de(astation in India and condemnation of the Company for permittin! the e(ents to occ%r' [citation needed] Bne of the conse4%ences as that the 8ritish !o(ernment nationali*ed the Company' The Company lost all its administrati(e po ers3 its Indian possessions, incl%din! its armed forces, ere taken o(er &y the Cro n p%rs%ant to the pro(isions of the :o(ernment of India /ct 1121' The Company contin%ed to mana!e the tea trade on &ehalf of the 8ritish !o(ernment (and the s%pply of <aint 5elena) %ntil the East India <tock +i(idend )edemption /ct came into effect, on 1 ;an%ary 110., %nder the terms of hich the Company as dissol(ed' [22] [edit]1egacy The East India Company has had a lon! lastin! impact on the Indian <%&continent' /ltho%!h dissol(ed follo in! the re&ellion of 1120, it stim%lated the !ro th of the 8ritish Empire' Its armies after 1120 ere to &ecome the armies of 8ritish India and it played a key role in replacin! the official lan!%a!e of India from 9ersian to En!lish' E(en today the En!lish lan!%a!e has official stat%s in 9akistan and India, &ein! %sed &y the !o(ernment and ci(il ser(ice' <ome phrases introd%ced &y the company are considered to &e archaic in 8ritish En!lish today, s%ch as do the needf%l, &%t li(e on in the En!lish of <o%th /sia and are %sed daily'[2$] They are seen as the (illains in the mo(ies 4irates o" the Caribbean) 5ead #an6s Chest and 4irates o" the Caribbean) 7t ,orld6s End' [edit]East

India Club

The East India Cl%& in @ondon as formed in 11.? for officers of the East India Company' The Cl%& still e7ists today as a pri(ate :entlemen=s Cl%& and its cl%& ho%se is sit%ated at 1,, <t' ;ames=s <4%are, @ondon' The East India Cl%& in Edin&%r!h as acti(e earlier, at least as early as /%!%st 22, 11-,,

hen the Cl%& hosted an e(enin! of entertainment to honor Warren 5astin!s, the former :o(ernor#:eneral of India, then (isitin! the Bman Ta(ern in Edin&%r!h' [2.] [edit]Flags

Do<nman (1685)

Rees (18'0) ens (1700)

a&rie (18-')

5rior to the 4cts of ;nion<hich created 8ational =eo2ra,hic (1717) the>in2dom of =reat Britain? the fla2 contained the .t =eor2e3s /ross in thecanton re,resentin2 the>in2dom of *n2land$

%he fla2 had a ;nion

4fter 1801 the fla2contains

(la2in the canton after the the ;nion (la2 of creation of the >in2dom of the ;nited >in2dom of =reat Britain in 1707$ =reat Britain and )reland in the canton$(1810)

The East India Company fla! chan!ed o(er time' From the period of 1,-- to 10-0 (/ct of Gnion &et een En!land and <cotland) the fla! consisted of a <t :eor!e=s cross in the canton and a n%m&er of alternatin! )ed and White stripes' /fter 10-0 the canton contained the ori!inal Gnion Fla! consistin! of a com&ined <t :eor!e=s cross and a <t /ndre =s cross' /fter the /ct of Gnion 11--, that "oined Ireland into the Gnited Din!dom, the canton of the East India Company=s fla! as altered accordin!ly to incl%de the ne Gnion Fla! ith the additional <t 9atrick=s cross' There has &een m%ch de&ate and disc%ssion re!ardin! the n%m&er of stripes on the fla! and the order of the stripes' 5istorical doc%ments and paintin!s sho many (ariations from ? to 1$ stripes, ith some ima!es sho in! the top hite' stripe &ein! red and others sho in! the top stripe &ein!

It has &een s%!!ested that the stripes ere inspired &y the fla! of the >a"apahit Empire, hose fla!s may still ha(e flo n across the <pice Islands in the Company=s early days' /t the time of the /merican )e(ol%tion the East India Company fla! o%ld ha(e &een

identical to the :rand Gnion Fla!' The fla! pro&a&ly inspired the <tars and <tripes (as ar!%ed &y <irCharles Fa cett in 1?$0)'[22] Comparisons &et een the <tars and <tripes and the Company=s fla! from historical records present some con(incin! ar!%ments' The ;ohn Company fla! dates &ack to the 1,--s hereas the Gnited <tates adopted the <tars and <tripes in 1000'[2,] The fla! of >alaysia may also &e deri(ed from the 8ritish East India Company=s fla!, as ell as the fla! of 5a ai=i The stripes and !ridlike appearance of the fla! !a(e rise to se(eral pieces of imperial slan!' >ost nota&ly is the phrase =ridin! the !ridiron=3 this referred to tra(ellin! on a ship flyin! the company fla! to O from India' [edit]

hips

/ ship of the East India Company can also &e called an East Indiaman'[20] /ed 5ragon Earl o" 7berga!enny /oyal Captain 7gamemnon (1122) Dent [edit]East

India Company records

Gnlike all other 8ritish :o(ernment records, the records from the East India Company (and its s%ccessor the India Bffice) are not in The Eational /rchi(es at De , @ondon, &%t are stored &y the 8ritish @i&rary in @ondon as part of the /sia, 9acific and /frica Collection' The catalo!%e is searcha&le online in the 7ccess to 7rchi!es catalo!%es'[21] >any of the East India Company records are freely a(aila&le online %nder an a!reement that FI8I< ha(e ith the 8ritish @i&rary' [edit]Trading

%gain
life

In 2--., the company as p%rchased from 6some $- or .-6 shareholders &y >r' <an"i( >ehta, a >%m&ai &orn Indian &%sinessman'[2?] >r' >ehta en(isions to res%scitate ne into the erst hile !iant and plans to open se(eral commodity stores across the GD and

e(ent%ally in India' The stores are e7pected to &enefit from the enormo%s &rand reco!nition the company en"oys and ha(e already commenced operations &y dealin! in e7otic commodities like Indian tea, spices etc'[$-] /n emotional >r' >ehta told th%s to the ne s reporters, 6/t an emotional le(el as an Indian, hen yo% think ith yo%r heart as I do, I had this h%!e feelin! of redemption # this indescri&a&le feelin! of o nin! a company that once o ned %s6' [$1] 5e also said that the company in its ne a(atar ill remain tr%e to its %ni4%e herita!e and that 6e(ery salesperson ill &e re4%ired to st%dy the history of the company so they can sell an Pe7perienceQ to the c%stomer, not merely a prod%ct6'[$2] [edit]

ee also
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5istory of India 8ritish Empire 5istory of <o%th /sia series Ee Company r%le in India 8ritish )a" (also Cro n r%le in India, also 8ritish Indian Empire) Imperialism series