The United Company.
The parliamentary vote however had abolished for a while the monopoly of the trade with the East Indies. A second East India Company was formed and the two rivals nearly ruined each other. At last the two Companies were united into one, and a large loan was advanced to government by the new corporation. Under this new arrangement the trade monopoly was secured to the united Company throughout the eighteenth century.
Old East India House.
In those early days every shop in London exhibited a sign or emblem. The first old East India House was a quaint building with a large entablature in front, bearing three ships in full sail and a dolphin at each end. The business was distributed amongst the Directors, and transacted in committees. All the Directors put their names to the letters sent to India, and signed themselves "Your loving friends." To this day the business of the India Office is conducted by committees, but the "loving friends" vanished with the East India Company.
New India House.
In the early half of the eighteenth century a new India House was built in Leadenhall Street. It was here that the Directors grew into merchant princes, and administered the affairs of provinces, until they built up our Anglo-Indian empire. Here too began the later conflict between the Company and the House of Commons. George III. was bent on coercing parliament and removing his ministers at will. But during the coalition ministry of Lord North and Charles James Fox, there was a battle royal between parliament and the crown.
Fox's India Bill.
In 1783 Fox introduced his bill for abolishing the Court of Directors, and transferring their power and patronage to seven commissioners nominated in the bill. An agitation arose which threw the whole kingdom into a ferment. The King claimed the right of governing all countries conquered by his subjects. Accordingly he claimed the right of nominating the seven commissioners, and thus getting all the power and patronage of the Court of Directors into his own hands. But the House of Commons would not trust the King. Whigs and Tories saw that their liberties would be endangered by such additions to the royal prerogative, and they passed Fox's bill by large majorities.
Hostility of George III.
King George was furious. His only hope was that the obnoxious bill would be thrown out by the Lords. He caused a message to be conveyed to every peer, that his Majesty would withdraw his friendship from any one who voted for the bill. Accordingly the bill was thrown out by the Lords. Fox and Lord North were ignominiously dismissed, and William Pitt the younger became prime minister.