Not long after this date the custom of flying at a masthead a "house" flag denoting the ownership of the vessel became general, and perhaps for this reason or because they were living in a more prosaic age the captains of merchantmen ceased to give further trouble by attempts to display illegal colours. There are now many hundreds of house flags[334] in existence, but nearly all of them have come into use since 1840. An older practice with some of the larger merchantmen, which seems to date from the early years of the eighteenth century, was to fly the arms of the town in which the master lived at the mizen, and the arms of the town where the freighter resided at the fore. Some passenger ships plying on regular lines (such as the cross-Channel steamers) fly at the fore the national flag of the country to and from which they sail. The somewhat anomalous position of the ships of the East India Company, many of which were given Letters of Marque in order to regularise their position as combatants if they came into conflict with ships of native states (or possibly with those of other European powers) in Indian waters, has already been remarked. No trace can be found of any formal grant of the Company's flag, and it seems most probable that it was really the survivor of an early striped ensign such as many ships, men-of-war or merchant, wore in the latter part of the reign of Elizabeth and the early part of the reign of James. There was, however, an early precedent of the grant of a special flag to specified merchantmen to denote a privileged position. In 1581 Elizabeth, anxious to encourage the trade then being opened up with Turkey, granted a Charter of Incorporation for a term of seven years to Sir Edward Osborn and three other merchants, who might add other Englishmen, not exceeding twelve in all, to their number. These were allowed "to set and place in the tops of their ships and other vessels the Arms of England with the red crosse over the same, as heretofore they have used the red crosse, any matter or thing to the contrary notwithstanding." On its expiry in 1588 this charter was not renewed, but in 1593 Osborn and others were incorporated in a company to be known as the Governor and Company of Merchants of the Levant, and they were "to set and place in the toppes of their ships or other vessels the Armes of England with the redde crosse in white over the same as heretofore they have used." It would appear from these words that the red cross in the original flag was bordered with white, although it is not so described in the earlier charter. The Charter of 1593 was found defective, and a new one was issued in 1601 which contained the same clause, the name of the company being changed to the "Governor and Company of Merchants of London trading into the Levant Seas." On the death of Elizabeth this charter lapsed, and it was not until the 14th December, 1605, that another charter was issued. This charter,