DISPUTES BETWEEN GOVERNMENT, AND THE EAST INDIA COMPANY.
A.D. 1788
During the late disputes, when a rupture with. France was anticipated, government had dispatched four regiments of soldiers for the protection of our East India territories; and when the disputes were settled, it was determined to render this addition to the military establishment a permanent measure. The court of directors had acceded to the proposal when originally made by the board of control, and had consented that the troops should be conveyed in their ships and maintained at their expense. When, however, an amicable arrangement had taken place with France, and all danger was over, the directors changed their sentiments, and contended that unless they themselves made the requisition, they were by Lord North’s bill of 1781, relieved from the obligation-of maintaining any troops that might be sent to India. In this opinion several eminent lawyers, whom they had consulted, appeared to coincide. On the other hand, Pitt, supported by the crown lawyers, asserted that the act of 1784 transferred to the board of control all powers formerly vested in the court of directors, relative to military and political concerns, as well as the collection and application of the revenues. It was contended on the part of government, indeed, that those parts of the act of 1781 which were inconsistent with those of the act of 1784, were, by the latter, virtually, if not actually repealed. Inconsequence of these disputes, on the 25th of February Pitt moved for leave to bring in a bill for removing the doubts in question, and for declaring that the intention of the legislature, in the act of 1784, was agreeable to the construction put upon it by the board of control. In support of his motion Pitt said, that “in his mind nothing could be more clear than that there was no one step that could have been taken previous to passing the act of 1784, by the court of directors, touching the military and political concerns of India, and also the collection, management, and application of thes revenues of the territorial possessions, that the commissioners of the board of control had not now a right to take, by virtue of the powers and authority vested in them by the act of 1784.” Dundas went even further than Pitt in support of the motion, for he declared, that the board of control might, if it chose, devote the whole revenue of India to the purpose of its defence, without leaving the company a single rupee. Leave was given to bring in the bill, without a division, but in all its stages, when introduced, it met with a formidable opposition. Among the objections raised against it, it was stated, that if passed, an army might be established in India without the knowledge or consent of parliament. In order to obviate this, Pitt proposed to add a clause, limiting the number of troops for the payment of which the board of control were empowered to issue orders. It was further urged as an objection, that the board might apply the revenues of India for the creation of undue influence, to the prejudice of the company’s interests, by the increase of salaries or perquisites, to prevent which Pitt proposed two other clauses, prohibiting gratuities, unless recommended by the directors; and stopping all increase of salary, unless proposed by the directors, and submitted to parliament. Pitt added a fourth clause, directing that the directors should lay annually before Parliament an account of the produce of all their revenues, and of all their disbursements. By these clauses every real objection to the bill was obviated; but resistance was still made to it, and the third reading was only carried by a majority of fifty-four, which, at this period, was considered a very small majority. The bill encountered a violent opposition in the house of lords, also; but it was finally carried by a majority of seventy-one against twenty-eight. Sixteen peers signed a long and powerfully-expressed protest, representing the bill as friendly to corrupt intrigue and cabal, hostile to all good government, and abhorrent to the principles of our constitution.