commissioners, or any two of them, shall be and are hereby empowered to
examine into any corrupt and fraudulent practices, or other misconduct,
committed by any person or persons concerned in the management of any of
the offices or departments hereinbefore mentioned; and for the better
execution of this present act, the said commissioners, or _any two of
them, are hereby authorized to meet and sit, from time to time, in such
place or places as they shall find most convenient, with, or without
adjournment, and to send their precept or precepts, under their hands
and seals, for any person or persons whatsoever, and for such books,
papers, writings, or records, as they shall judge necessary for their
information, relating to any of the offices or departments hereinbefore
mentioned; and all bailiffs, constables, sheriffs, and other his
Majesty's officers, are hereby required to obey and execute such orders
and precepts aforesaid as shall be sent to them, or any of them, by the
said commissioners, or any two of them, touching the premises._
* * * * *
No. 2.
Referred to from p. 22.
NABOB OF ARCOT'S DEBTS.
Mr. George Smith being asked, Whether the debts of the Nabob of Arcot
have increased since he knew Madras? he said, Yes, they have. He
distinguishes his debts into two sorts: those contracted before the
year 1766, and those contracted from that year to the year in which he
left Madras.--Being asked, What he thinks is the original amount of the
old debts? he said, Between twenty-three and twenty-four lacs of
pagodas, as well as he can recollect.--Being asked, What was the amount
of that debt when he left Madras? he said, Between four and five lacs of
pagodas, as he understood.--Being asked, What was the amount of the new
debt when he left Madras? he said, In November, 1777, that debt
amounted, according to the Nabob's own account, and published at
Chepauk, his place of residence, to sixty lacs of pagodas, independent
of the old debt, on which debt of sixty lacs of pagodas the Nabob did
agree to pay an interest of twelve per cent per annum.--Being asked,
Whether this debt was approved of by the Court of Directors? he said, He
does not know it was.--Being asked, Whether the old debt was recognized
by the Court of Directors? he said, Yes, it has been; and the Court of
Directors have sent out repeated orders to the President and Council of
Madras to enforce its recovery and payment.--Being asked, If the
interest upon the new debt is punctually paid? he said, It was not
during his residence at Madras, from 1777 to 1779, in which period he
thinks no more than five per cent interest was paid, in different
dividends of two and one per cent.--Being asked, What is the usual
course taken by the Nabob concerning the arrears of interest? he said,
Not having ever lent him moneys himself, he cannot fully answer as to
the mode of settling the interest with him.
Being asked, Whether he has reason to believe the sixty lacs of pagodas
was all principal money really and truly advanced to the Nabob of
Arcot, or a fictitious capital, made up of obligations given by him,
where no money or goods were received, or which was increased by the
uniting into it a greater interest than the twelve per cent expressed to
be due on the capital? he said, He has no reason to believe that the sum
of sixty lacs of pagodas was lent in money or goods to the Nabob,
because that sum he thinks is of more value than all the money, goods,
and chattels in the settlement; but he does not know in what mode or
manner this debt of the Nabob's was incurred or accumulated.--Being
asked, Whether it was not a general and well-grounded opinion at Madras,
that a great part of this sum was accumulated by obligations, and was
for services performed or to be performed for the Nabob? he said, He has
heard that a part of this debt was given for the purposes mentioned in
the above question, but he does not know that it was so.--Being asked,
Whether it was the general opinion of the settlement? he said, He cannot
say that it was the general opinion, but it was the opinion of a
considerable part of the settlement.--Being asked, Whether it was the
declared opinion of those that were concerned in the debt, or those that
were not? he said, It was the opinion of both parties, at least such of
them as he conversed with.--Being asked, Whether he has reason to
believe that the interest really paid by the Nabob, upon obligations
given, or money lent, did not frequently exceed twelve per cent? he
said, Prior to the 1st of August, 1774, he had had reason to believe
that a higher interest than twelve per cent was paid by the Nabob on
moneys lent to him; but from and after that period, when the last act of
Parliament took place in India, he does not know that more than twelve
per cent had been paid by the Nabob, or received from him.--Being asked,
Whether it is not his opinion that the Nabob has paid more than twelve
per cent for money due since the 1st of August, 1774? he said, He has
heard that he has, but he does not know it.--Being asked, Whether he has
been told so by any considerable and weighty authority, that was like to
know? he said, He has been so informed by persons who he believes had a
very good opportunity of knowing it.--Being asked, Whether he was ever
told so by the Nabob of Arcot himself? he said, He does not recollect
that the Nabob of Arcot directly told him so, but from what he said he
did infer that he paid a higher interest than twelve per cent.
Mr. Smith being asked, Whether, in the course of trade, he ever sold
anything to the Nabob of Arcot? he said, In the year 1775 he did sell to
the Nabob of Arcot pearls to the amount of 32,500 pagodas, for which the
Nabob gave him an order or tankah on the country of Tanjore, payable in
six months, without interest.--Being asked, Whether, at the time he
asked the Nabob his price for the pearls, the Nabob beat down that
price, as dealers commonly do? he said, No; so far from it, he offered
him more than he asked by 1000 pagodas, and which he rejected.--Being
asked, Whether, in settling a transaction of discount with the Nabob's
agent, he was not offered a greater discount than 12_l._ per cent? he
said, In discounting a soucar's bill for 180,000 pagodas, the Nabob's
agent did offer him a discount of twenty-four per cent per annum, saving
that it was the usual rate of discount paid by the Nabob; but which he
would not accept of, thinking himself confined by the act of Parliament
limiting the interest of moneys to twelve per cent, and accordingly he
discounted the bill at twelve per cent per annum only.--Being asked,
Whether he does not think those offers were made him because the Nabob
thought he was a person of some consequence in the settlement? he said,
Being only a private merchant, he apprehends that the offer was made to
him more from its being a general practice than from any opinion of his
importance.
* * * * *
No. 3.
Referred to from p. 38.
_A Bill for the Better Government of the Territorial Possessions and
Dependencies in India_.
[ONE OF MR FOX'S INDIA BILLS.]
And be it further enacted by the authority aforesaid, that the Nabob of
Arcot, the Rajah of Tanjore, or any other native protected prince in
India, shall not assign, mortgage, or pledge any territory or land
whatsoever, or the produce or revenue thereof, to any British subject
whatsoever; neither shall it be lawful to and for any British subject
whatsoever to take or receive any such assignment, mortgage, or pledge;
and the same are hereby declared to be null and void; and all payments
or deliveries of produce or revenue, under any such assignment, shall
and may be recovered back, by such native prince paying or delivering
the same, from the person or persons receiving the same, or his or their
representatives.
* * * * *
No. 4.
Referred to from pp. 64 and 73.
(COPY.)
27th May, 1782.
_Letter from the Committee of Assigned Revenue, to the President and
Select Committee, dated 27th May, 1782; with Comparative Statement, and
Minute thereon._
To the Right Honorable LORD MACARTNEY, K.B., President, and Governor,
&c., Select Committee of Fort St. George.
MY LORD, AND GENTLEMEN,--
Although we have, in obedience to your commands of the 5th January,
regularly laid before you our proceedings at large, and have
occasionally addressed you upon such points as required your resolutions
or orders for our guidance, we still think it necessary to collect and
digest in a summary report those transactions in the management of the
assigned revenue which have principally engaged our attention, and
which, upon the proceeding, are too much intermixed with ordinary
occurrences to be readily traced and understood.
Such a report may be formed with the greater propriety at this time,
when your Lordship, &c., have been pleased to conclude your arrangements
for the rent of several of the Nabob's districts. Our aim in it is
briefly to explain the state of the Carnatic at the period of the
Nabob's assignment,--the particular causes which existed to the
prejudice of that assignment, after it was made,--and the measures which
your Lordship, &c., have, upon our recommendation, adopted for removing
those causes, and introducing a more regular and beneficial system of
management in the country.
Hyder Ali having entered the Carnatic with his whole force, about the
middle of July, 1780, and employed fire and sword in its destruction for
near eighteen months before the Nabob's assignment took place, it will
not be difficult to conceive the state of the country at that period. In
those provinces which were fully exposed to the ravages of horse, scarce
a vestige remained either of population or agriculture: such of the
miserable inhabitants as escaped the fury of the sword were either
carried into the Mysore country or left to struggle under the horrors of
famine. The Arcot and Trichinopoly districts began early to feel the
effects of this desolating war. Tinnevelly, Madura, and Ramnadaporum,
though little infested with Hyder's troops, became a prey to the
incursions of the Polygars, who stripped them of the greatest part of
the revenues. Ongole, Nellore, and Palnaud, the only remaining
districts, had suffered, but in a small degree.
The misfortunes of war, however, were not the only evils which the
Carnatic experienced. The Nabob's aumildars, and other servants, appear
to have taken advantage of the general confusion to enrich themselves. A
very small part of the revenue was accounted for; and so high were the
ordinary expenses of every district, that double the apparent produce of
the whole country would not have satisfied them.
In this state, which we believe is no way exaggerated, the Company took
charge of the assigned countries. Their prospect of relief from the
heavy burdens of the war was, indeed, but little advanced by the
Nabob's concession; and the revenues of the Carnatic seemed in danger of
being irrecoverably lost, unless a speedy and entire change of system
could be adopted.
On our minutes of the 21st January we treated the subject of the
assignment at some length, and pointed out the mischiefs which, in
addition to the effects of the war, had arisen from what we conceived to
be wrong and oppressive management. We used the freedom to suggest an
entire alteration in the mode of realizing the revenues. We proposed a
considerable and immediate reduction of expenses, and a total change of
the principal aumildars who had been employed under the Nabob.
Our ideas had the good fortune to receive your approbation; but the
removal of the Nabob's servants being thought improper at that
particular period of the collections, we employed our attention chiefly
in preserving what revenue was left the country, and acquiring such
materials as might lead to a more perfect knowledge of its former and
present state.
These pursuits, as we apprehended, met with great obstructions from the
conduct of the Nabob's servants. The orders they received were evaded
under various pretexts; no attention was paid to the strong and repeated
applications made to them for the accounts of their management; and
their attachment to the Company's interest appeared, in every instance,
so feeble, that we saw no prospect whatever of success, but in the
appointment of renters under the Company's sole authority.
Upon this principle, we judged it expedient to recommend that such of
the Nabob's districts as were in a state to be farmed out might be
immediately let by a public advertisement, issued in the Company's
name, and circulated through every province of the Carnatic; and, with
the view of encouraging bidders, we proposed that the countries might be
advertised for the whole period of the Nabob's assignment, and the
security of the Company's protection promised in the fullest manner to
such persons as might become renters.
This plan had the desired effect; and the attempts which were secretly
made to counteract it afforded an unequivocal proof of its necessity:
but the advantages resulting from it were more pleasingly evinced by the
number of proposals that were delivered, and by the terms which were in
general offered for the districts intended to be farmed out.
Having so far attained the purposes of the assignment, our attention was
next turned to the heavy expenses entailed upon the different provinces;
and here, we confess, our astonishment was raised to the highest pitch.
In the Trichinopoly country the standing disbursements appeared, by the
Nabob's own accounts, to be one lac of rupees more than the receipts. In
other districts the charges were not in so high a proportion, but still
rated on a most extravagant scale; and we saw, by every account that was
brought before us, the absolute necessity of retrenching considerably in
all the articles of expense.
Our own reason, aided by such inquiries as we were able to make,
suggested the alterations we have recommended to your Lordship, &c.,
under this head. You will observe that we have not acted sparingly, but
we chose rather, in cases of doubt, to incur the hazard of retrenching
too much than too little; because it would be easier, after any stated
allowance for expenses, to add what might be necessary than to
diminish. We hope, however, there will be no material increase in the
articles, as they now stand.
One considerable charge upon the Nabob's country was for extraordinary
sibbendies, sepoys, and horsemen, who appeared to us to be a very
unnecessary incumbrance on the revenue. Your Lordship, &c., have
determined to receive such of these people as will enlist into the
Company's service, and discharge the rest. This measure will not only
relieve the country of a heavy burden, but tend greatly to fix in the
Company that kind of authority which is requisite for the due collection
of the revenues.
In consequence of your determination respecting the Nabob's sepoys, &c.,
every charge under that head has been struck out of our account of
expenses. If the whole number of these people be enlisted by the
Company, there will probably be no more than sufficient to complete
their ordinary military establishment. But should the present reduction
of the Nabob's artillery render it expedient, after the war, to make any
addition to the Company's establishment for the purposes of the assigned
countries, the expense of such addition, whatever it be, must be
deducted from the present account of savings.
In considering the charges of the several districts, in order to
establish better regulations, we were careful to discriminate those
incurred for troops, kept or supposed to be kept up for the defence of
the country, from those of the sibbendy, servants, &c., for the
cultivation of the lands and the collection of the revenues, as well as
to pay attention, to such of the established customs of the country,
ancient privileges of the inhabitants, and public charities, as were
necessarily allowed, and appeared proper to be continued, but which,
under the Nabob's government, were not only rated much higher, but had
been blended under one confused and almost unintelligible title of
expenses of the districts: so joined, perhaps, to afford pleas and means
of secreting and appropriating great part of the revenues to other
purposes than fairly appeared; and certainly betraying the utmost
neglect and mismanagement, as giving latitude for every species of fraud
and oppression. Such a system has, in the few latter years of the
Nabob's necessities, brought all his countries into that situation from
which nothing but the most rigid economy, strict observance of the
conduct of managers, and the most conciliating attention to the rights
of the inhabitants can possibly recover them.
It now only remains for us to lay before your Lordship, &c., the
inclosed statement of the sums at which the districts lately advertised
have been let, compared with the accounts of their produce delivered by
the Nabob, and entered on our proceedings of the 21st January,--likewise
a comparative view of the former and present expenses.
The Nabob's accounts of the produce of these districts state, as we have
some reason to think, the sums which former renters engaged to pay to
him, (and which were seldom, if ever, made good,) and not the sums
actually produced by the districts; yet we have the satisfaction to
observe that the present aggregate rents, upon an average, are equal to
those accounts. Your Lordship, &c., cannot, indeed, expect, that, in the
midst of the danger, invasion, and distress which assail the Carnatic on
every side, the renters now appointed will be able at present to fulfil
the terms of their leases; but we trust, from the measures we have
taken, that very little, if any, of the actual collections will be lost,
even during the war,--and that, on the return of peace and tranquillity,
the renters will have it in their power fully to perform their
respective agreements.
We much regret that the situation of the Arcot province will not admit
of the same settlement which has been made for the other districts; but
the enemy being in possession of the capital, together with several
other strongholds, and having entirely desolated the country, there is
little room to hope for more from it than a bare subsistence to the few
garrisons we have left there.
We shall not fail to give our attention towards obtaining every
information respecting this province that the present times will permit,
and to take the first opportunity to propose such arrangements for the
management as we may think eligible.
We have the honor to be
Your most obedient humble servants,
CHARLES OAKLEY,
EYLES IRWIN,
HALL PLUMER,
DAVID HALIBURTON,
GEORGE MOUBRAY.
FORT ST. GEORGE, 27th May, 1782.
A true copy.
J. HUDLESTON, Sec.
COMPARATIVE STATEMENT _of the Revenues and Expenses of the Nellore,
Ongole, Palnaud, Trichinopoly, Madura, and Tinnevelly Countries, while
in the Hands of the Nabob, with those of the same Countries on the Terms
of the Leases lately granted for Four Years, to commence with the
Beginning of the Phazeley, 1192, or the 12th July, 1782. Abstracted from
the Accounts received from the Nabob, and from the Rents stipulated for
and Expenses allowed by the present Leases_.
GROSS REVENUE.
+---------------+------------------+------------------+
| | Annual Gross Rent| Annual Rent by |
| | by the Nabob's | the present |
| | Account. | Leases, at an |
| | Average of the | Average of |
| | Four Years imme- | Four Years. |
| | diately preceding| |
| | the present War. | |
+---------------+------------------+------------------+
| | Star Pagodas. | Star Pagodas. |
| Nellore and | | |
| Sarapilly | 3,22,830 | 3,61,900 |
| Ongole | 1,10,967[68]| 55,000 |
| Palnaud | 51,355 | 53,500 |
| Trichinopoly | 2,89,993[69]| 2,73,214 |
| Madura | 1,02,756 | 60,290 |
| Tinnevelly | 5,65,537 | 5,79,713 |
+---------------+------------------+------------------+
| Total | 14,43,438 | 13,83,617 |
+---------------+------------------+------------------+
EXPENSES.
+---------------+------------------+------------------+------------------+
| | Annual Expenses | Annual Expenses | Reduction in the |
| | by the Nabob's | allowed by the | Annual Expenses. |
| | Accounts. | present Leases | |
| | | at an Estimate. | |
+---------------+------------------+------------------+------------------+
| | Star Pagodas. | Star Pagodas. | Star Pagodas. |
| Nellore and | | | |
| Sarapilly | 1,98,794 | 33,000 | 1,65,794 |
| Ongole | 88,254 | ... | 88,254 |
| Palnaud | 25,721 | 5,698 | 20,023 |
| Trichinopoly | 2,82,148 | 13,143 | 2,63,005 |
| Madura | 63,710 | 12,037 | 51,673 |
| Tinnevelly | 1,64,098 | 70,368 | 93,730 |
+---------------+------------------+------------------+------------------+
| Total | 8,22,725 | 1,40,246 | 6,82,479 |
+---------------+------------------+------------------+------------------+
NET REVENUE.
+---------------+------------------+------------------+------------------+
| | Net Revenue | Net Revenue | Increase of |
| | by the Nabob's | by the | Net Revenue. |
| | Accounts. | present Leases. | |
+---------------+------------------+------------------+------------------+
| | Star Pagodas. | Star Pagodas. | Star Pagodas. |
| Nellore and | | | |
| Sarapilly | 1,24,036 | 3,28,900 | 2,04,864 |
| Ongole | 22,713 | 55,000 | 32,287 |
| Palnaud | 25,634 | 47,802 | 22,168 |
| Trichinopoly | 7,845 | 2,54,071 | 2,46,226 |
| Madura | 39,046 | 48,253 | 9,207 |
| Tinnevelly | 4,01,439 | 5,09,345 | 1,07,906 |
+---------------+------------------+------------------+------------------+
| Total | 6,20,713 | 12,43,371 | 6,22,658 |
+---------------+------------------+------------------+------------------+
N.B. In this statement, Madras Pagodas are calculated at 10 per cent
Batta; Chuckrums at two thirds of a Porto Novo Pagoda, which are
reckoned at 115 per 100 Star Pagodas; and Rupees at 350 per 100 Star
Pagodas. To avoid fractions, the nearest integral numbers have been
taken.
Signed,
CHARLES OAKLEY,
EYLES IRWIN,
HALL PLUMER,
DAVID HALIBURTON,
GEORGE MOUBRAY.
FORT ST. GEORGE, 27th May, 1782.
* * * * *
No. 5.
Referred to from p. 73.
_Case of certain Persons renting the Assigned Lands wider the Authority
of the East India Company._
Extract of a Letter from the President and Council of Fort St. George,
25th May, 1783.
One of them [the renters], Ram Chunder Raus, was, indeed, one of those
unfortunate rajahs whose country, _by being near to the territories of
the Nabob_, forfeited its title to independence, and became the prey of
ambition and cupidity. This man, though not able to resist the Company's
arms, _employed in such a deed at the Nabob's instigation_, had industry
and ability. He acquired, _by a series of services_, even the confidence
of the Nabob, who suffered him to _rent apart of the country of which he
had deprived him of the property_. This man had afforded no motive for
his rejection by the Nabob, but that of being ready to engage with the
Company: a motive most powerful, indeed, but not to be avowed.
[This is the person whom the English instruments of the Nabob of Arcot
have had the audacity to charge with a corrupt transaction with Lord
Macartney, and, in support of that charge, to produce a forged letter
from his Lordship's steward. The charge and letter the reader may see in
this Appendix, under the proper head. It is asserted by the unfortunate
prince above mentioned, that the Company first settled on the coast of
Coromandel under the protection of one of his ancestors. If this be
true, (and it is far from unlikely,) the world must judge of the return
the descendant has met with. The case of another of the victims given up
by the ministry, though not altogether so striking as the former, is
worthy of attention. It is that of the renter of the Province of
Nellore.]
It is, with a wantonness of falsehood, and indifference to detection,
asserted to you, in proof of the validity of the Nabob's objections,
that this man's failures had already forced us to remove him: though in
fact he has continued invariably in office; though our _greatest
supplies have been received from him_; and that, in the disappointment
of your remittances [the remittances from Bengal] and of other
resources, the specie sent us _from Nellore alone_ has sometimes enabled
us to carry on the public business; and that the _present expedition
against the French_ must, without _this_ assistance from the assignment,
have been laid aside, or delayed until it might have become too late.
[This man is by the ministry given over to the mercy of persons capable
of making charges on him "_with a wantonness of falsehood, and
indifference to detection_." What is likely to happen to him and the
rest of the victims may appear by the following.]
* * * * *
_Letter to the Governor-General and Council, March 13th, 1782._