When the India Bill finally passed the Lords, the Earl of Albemarle recorded a protest against it—on the grounds that the home government established by it would be inefficient and unconstitutional; that the council would be too numerous; that it would be nearly half composed of the very directors who were supposed to be under condemnation; that those directors, by self-election to the council, would establish a vicious principle; that the members of the council would be irresponsible for the use of the great amount of patronage held by them; that the change in the mode of government was too slight to insure those reforms which India so much needed; that it was pernicious, and contrary to parliamentary precedent, to allow the members of the council to hold other offices, or to engage in commercial pursuits; that the practical effect of the council would be merely to thwart the Secretary of State for India, or else to screen him from censure; and that efficient and experienced under-secretaries would be far better than any council.
The bill received the royal assent, and became an act of parliament, on the 2d of August, under the title of ‘An Act for the Better Government of India;’ 21st and 22d of Victoria, cap. 106. A brief and intelligible abstract of all the provisions of this important statute will be found in the Appendix.
One clause in the new act provided that the Court of Directors should elect seven members to the new council of India, either out of the existing court, or from persons who had formerly been directors of the Company. On the 7th of August they met, and chose the following seven of their own number—Sir James Weir Hogg, Mr Charles Mills, Captain John Shepherd, Mr Elliot Macnaghten, Mr Ross Donelly Mangles, Captain William Joseph Eastwick, and Mr Henry Thoby Prinsep. Many of the public journals severely condemned this selection, as having been dictated by the merest selfish retention of power in the directors’ own hands; but on the other side, it was urged that these seven gentlemen possessed a large amount of practical knowledge on Indian affairs; and, moreover, that the Company, owing the legislature no thanks for recent proceedings, were not bound to be disinterested in the matter.
A remarkable meeting was held by the East India Company on the 11th of August, to consider the state of affairs produced by the new act. The directors and proprietors met as if no one clearly knew what to think on the matter. They asked—What is the East India Company now? What does it possess? What can it do, or what has it got to do? Has it any further interest in the affairs of India? Is there now any use in a Court of Directors, or a Court of Proprietors, further than to distribute the dividends on India stock handed over by the new Council of India out of Indian revenues? Is the regular payment of that dividend well secured? Are the trading powers of the Company abolished; and if not, is there any profitable trade that can be entered upon? Are they to lose their house in Leadenhall Street, their museum, their library, their archives; and if so, why? If the Company at any time become involved in law-proceedings, will the costs come out of the dividends, or out of what other fund? The answers to these various questions were so very conflicting, and the state of doubt among all the proprietors so evident, that it was agreed—‘That a committee of proprietors be appointed to act in concert with the chairman and deputy-chairman of the Court of Directors, for the purpose of obtaining counsel’s opinion as to the present legal position of the Company under previous acts of parliament, as well as the present act—more especially as to the parliamentary guarantee of the Company’s stock, and the position of the Company’s creditors, Indian as well as European.’
The 1st of September 1858 was a day to be recorded in English annals—it witnessed the death of the once mighty East India Company as a governing body. ‘On this day,’ said one of the able London journals, ‘the Court of Directors of the East India Company holds its last solemn assembly. To-morrow, before the shops and the counting-houses of our great metropolis shall have received their accustomed inmates, the greatest corporate body the world has ever seen will have shrivelled into an association of receivers of dividends. The great house in Leadenhall Street will stand as it has stood for long years, and well-nigh the same business will be done by well-nigh the same persons; but the government of the East India Company will have passed into a tradition. Thousands and tens of thousands, including many of the greatest and wisest in the land, intent upon pleasure at this pleasure-seeking period of the year, will, in all human probability, not give the great change a thought. But the first and second days of September 1858, which witness the extinction of the old and the inauguration of the new systems of Indian government, constitute an epoch in our national history—nay, in the world’s history, second in importance to few in the universal annals of mankind. On this day the East India Company, which hitherto, through varied changes and gradations, has directed the relations of Great Britain with the vast continent of India, issues its last instructions to its servants in the east. On this day the last dispatches written by the authoritative “we” to our governor-general, or governors in council, will be signed by their “affectionate friends.” To-morrow the egomet of her Majesty’s Secretary of State will be supreme in the official correspondence of the Indian bureau. It may or may not be for the good of India, it may or may not be for the good of England, that the government of the East India Company should on this day cease to exist; but we confess we do not envy the feelings of the man who can contemplate without emotion this great and pregnant political change.’ There was a disposition, on this last day of the Company’s power, to look at the bright rather than the dark side of its character. ‘It has the great privilege of transferring to the service of her Majesty such a body of civil and military officers as the world has never seen before. A government cannot be base, cannot be feeble, cannot be wanting in wisdom, that has reared two such services as the civil and military services of the East India Company. To those services the Company has always been just, has always been generous. In those services lowly merit has never been neglected. The best men have risen to the highest place. They may have come from obscure farmhouses or dingy places of business; they may have been roughly nurtured and rudely schooled; they may have landed in the country without sixpence or a single letter of recommendation in their trunks; but if they have had the right stuff in them, they have made their way to eminence, and have distanced men of the highest connections and most flattering antecedents.... Let her Majesty appreciate the gift—let her take the vast country and the teeming millions of India under her direct control; but let her not forget the great corporation from which she has received them, nor the lessons to be learned from its success.’
Old East India House, Leadenhall Street.
The last special General Court of the Company was held, as we have said, on the 1st of September. The immediate purpose was a generous one: the granting of a pension to the distinguished ruler of the Punjaub, Sir John Lawrence; and this was followed by an act at once dignified and graceful. It was an earnest tender of thanks, on the part of the East India Company generally, to its servants of every rank and capacity, at home and in India, for their zealous and faithful performance of duties; an assurance to the natives of India that they would find in Queen Victoria ‘a most gracious mistress;’ an expression of hearty belief that the home-establishment, if employed by the Crown, would serve the Crown well as it had served the Company; a declaration of just pride in the sterling civilians and noble soldiers at that moment serving unweariedly in India; and an earnest hope and prayer ‘That it may please Almighty God to bless the Queen’s Indian reign by the speedy restoration of peace, security, and order; and so to prosper her Majesty’s efforts for the welfare of her East Indian subjects that the millions who will henceforth be placed under her Majesty’s direct as well as sovereign dominion, constantly advancing in all that makes men and nations great, flourishing, and happy, may reward her Majesty’s cares in their behalf by their faithful and firm attachment to her Majesty’s person and government.’
The East India House in Leadenhall Street was chosen by Lord Stanley as the office of the new Council for India, on account of its internal resources for the management of public business. During more than two centuries and a half, the city of London had contained the head-quarters of those who managed Anglo-Indian affairs. The first meeting of London merchants in 1599, on the subject of East India trade, was held at Founders’ Hall. The early business of the Company, when formed, was transacted partly at the residences of the directors, partly in the halls of various incorporated companies. In 1621 the Company occupied Crosby Hall for this purpose. In 1638 a removal was made to Leadenhall Street, to the house of Sir Christopher Clitheroe, at that time governor of the Company. In 1648 the Company took the house of Lord Craven, adjoining Clitheroe’s, and on the site of the present India House. In 1726 the picturesque old front of this mansion was taken down, and replaced by the one represented in the above cut. Finally, in 1796, the present India House was built,[[193]] and remained the head-quarters of the Company. Acquiring skill by gradual experience, the Company had rendered this one of the most perfectly organised establishments that ever existed. Ranged in racks and shelves, in chambers, corridors, and cellars, were the records of the Company’s administration; prepared by governor-generals, judges, magistrates, collectors, paymasters, directors, secretaries, and other officials abroad and at home. These documents, tabulated and indexed with the greatest nicety, related to the whole affairs of the Company, small as well as great, and extended back to the earliest period of the Company’s history. Declarations of war, treaties of peace, depositions of native princes, dispatches of governor-generals, proceedings of trials, appeals of natives, revenue assessments, army disbursements—all were fully recorded in some mode or other. The written documents relating to a hundred and fifty-five years of the Company’s history, from 1704 to 1858, filled no less than a hundred and sixty thousand huge folio volumes. These documents were so thoroughly indexed and registered that any one could be found by a very brief search. It was mentioned with pride by the staff of the India House, that when Lord Stanley, in his capacity as Secretary of State for India, made his first official visit to Leadenhall Street, he was invited to test the efficiency of this registration department, by calling for any particular dispatch, or for any document bearing upon any act or policy of the Court of Directors, throughout a period of a century and a half; a promise was given that any one of these documents should be forthcoming in five minutes. His lordship thereupon asked for a report on the subject of some occurrence which took place under his own observation while on a tour in India. The document was speedily produced, and was found to contain all the details of the transaction minutely described.
After the Court of Directors had elected seven members to the new council, the government nominated the other eight. The greatest name on the list was Sir John Laird Muir Lawrence, who was expected to return to England, and for whom a place at the council-board was kept vacant. The other seven nominated members were Sir Henry Conyngham Montgomery, Sir Frederick Currie, Major-general Sir Robert John Hussey Vivian, Colonel Sir Proby Thomas Cautley, Lieutenant-colonel Sir Henry Creswicke Rawlinson, Mr John Pollard Willoughby, and Mr William Arbuthnot. It was considered that the fifteen members, in reference to their past experience of Indian affairs, might fairly represent the following interests: