The Life of Robert, Lord Clive, Vol. 3 (of 3): Collected from the Family Papers Communicated by the Earl of PowisMalcolm, John
History
The Life of Robert, Lord Clive, Vol. 3 (of 3): Collected from the Family Papers Communicated by the Earl of Powis
Malcolm, John
Clive, Robert Clive, Baron, 1725-1774; India -- History -- British occupation, 1765-1947
Mr. Johnstone, who was not only a man of family, but of uncommon
resolution and considerable talent, was strongly supported by several
large proprietors of stock. When the time approached that his answers
were to be given in, his brother, Mr. William Johnstone, afterwards Sir
William Pulteney, waited on the Chairman, Mr. Dudley, and delivered a
copy of a motion intended to be made at the General Court to be held
the next day, recommending to the Court of Directors to confirm the
presents received by the Company's servants in Bengal, before the 9th
of May, 1765, when the covenants were presented to them to be signed,
and to countermand all prosecutions against them. The Chairman was
at the same time informed, that, if this motion was rejected, the
conduct of Lord Clive should be called in question. Mr. Dudley replied,
that they were welcome to exhibit any charge against Lord Clive, but
that the prosecutions could not be withdrawn. Next day, however, the
opposition, probably finding that they had not strength enough to
carry their motion, did not bring it forward; and Mr. Pulteney himself
seconded a motion for adjournment.
But the determined resistance of the Directors to any increase of
dividend gave their enemies great advantages over them in the Court
of Proprietors. The Directors had themselves caused a motion for an
increase of 2 per cent. to be brought forward in June, 1766, when
they succeeded in getting it negatived; and thus, in consequence of
particular rules, which regulated the Court's proceedings, gained
some time. But this delay did not check the determination of the
party in opposition, which daily gained strength. Lord Holland, and
several other great proprietors, joined it, and Mr. Johnstone and his
friends threw all their weight into the scale. Only two days before
the Quarterly Court, in September[135], the party split 125,000_l._
stock into shares, and, by their exertions, succeeded in carrying the
dividend to 10 per cent., in opposition to the expressed wish and
advice of the Court of Directors. But a consequence of this difference
of opinion between the Courts was, that this declared increase of
dividend had no influence in raising the price of their stock.
At this period, party animosity ran very high, and produced its usual
effects of mutual abuse and recrimination. The opposition started a
paper, called the India Examiner, which the Directors answered in the
India Observer.
Although it was on occasion of the vote for this increase of dividend
that the Government began to intermeddle in the affairs of the Company,
it may be most convenient, before attending to the proceedings of the
Ministry, to conclude the narrative of the contest of the Directors
with the Court of Proprietors.[136]
Public-domain text, read in full here on John Shaqi.
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