The general directory was to consist of seventeen persons, eight of whom were to represent the chamber of Amsterdam, four that of Middelburg, two those of the Maas, two those of the North Quarter, and the seventeenth was to be chosen alternately by all of these except the chamber of Amsterdam. The place of meeting of the general directory was fixed at Amsterdam for six successive years, then at Middelburg for two years, then at Amsterdam again for six years, and so on.
Charter of the East India Company.
The directors of each chamber were named in the charter, being the individuals who were the directors of the companies previously established in those towns, and it was provided that no others should be appointed until these should be reduced by death or resignation: in the chamber of Amsterdam to twenty persons, in that of Zeeland to twelve, and in those of Delft, Rotterdam, Hoorn, and Enkhuizen each to seven. After that, whenever a vacancy should occur, the remaining directors were to nominate three qualified individuals, of whom the states of the province in which the chamber was situated were to select one.
To qualify an individual to be a director in the chambers of the North Quarter it was necessary to own shares to the value of £250 sterling, and double that amount to be a director in any of the other chambers. The directors were to be bound by oath to be faithful in the administration of the duties entrusted to them, and not to favour a majority of the shareholders at the expense of a minority. Directors were prohibited from selling anything whatever to the Company without previously obtaining the sanction of the states provincial or the authorities of the city in which the chamber that they represented was situated.
All inhabitants of the United Provinces other than this Company were prohibited from trading beyond the Straits of Magellan, or to the eastward of the Cape of Good Hope, during the period of twenty-one years, for which the charter was granted, under penalty of forfeiture of ship and cargo. Within these limits the East India Company was empowered to enter into treaties and make contracts in the name of the states-general, to build fortresses, to appoint governors, military commanders, judges, and other necessary officers, who were all, however, to take oaths of fidelity to the states-general or high authorities of the Netherlands, who were not to be prevented from making complaints to the states-general, and whose appointments were to be reported to the states-general for confirmation.
Historical Sketches.
For these privileges the Company was to pay £12,500 sterling, which amount the states-general subscribed towards the capital, for the profit and at the risk of the general government of the provinces. The capital was nominally furnished in the following proportions: Amsterdam one-half, Zeeland one-fourth, the Maas one-eighth, and the North Quarter one-eighth; but in reality it was contributed as under:—
| £ | s. | d. | ||
| Amsterdam | 307,202 | 10 | 0 | |
| Zeeland | 106,304 | 10 | 0 | |
| The Maas | Delft | 38,880 | 3 | 4 |
| Rotterdam | 14,546 | 16 | 8 | |
| The North Quarter | Hoorn | 22,369 | 3 | 4 |
| Enkhuizen | 47,380 | 3 | 4 | |
| Total working capital | 536,683 | 6 | 8 | |
| The share of the states-general | 12,500 | 0 | 0 | |
| Total nominal capital | 549,183 | 6 | 8 | |
The capital was divided into shares of £250 sterling each. The shares, often sub-divided into fractions, were negotiable like any other property, and rose or fell in value according to the position of the Company at any time.
The advantage which the State derived from the establishment of this great association was apparent. The sums received in payment of import dues would have been contributed to an equal extent by individual traders. The amounts paid for the renewal of the charter—in 1647 the Company paid £133,333 6s. 8d. for its renewal for twenty-five years, and still larger sums were paid subsequently—might have been derived from trading licenses. The Company frequently aided the Republic with loans of large amount when the State was in temporary need, but loans could then have been raised in the modern method whenever necessary. Apart from these services, however, there was one supreme advantage gained by the creation of the East India Company which could not have been obtained from individual traders. A powerful navy was called into existence, great armed fleets working in unison and subject to the same control were always ready to assist the State. What must otherwise have been an element of weakness, a vast number of merchant ships scattered over the ocean and ready to fall a prey to an enemy’s cruisers, was turned into a bulwark of strength.