The last special General Court of the Company was held, as we have said, on the 1st of September. The immediate purpose was a generous one: the granting of a pension to the distinguished ruler of the Punjaub, Sir John Lawrence; and this was followed by an act at once dignified and graceful. It was an earnest tender of thanks, on the part of the East India Company generally, to its servants of every rank and capacity, at home and in India, for their zealous and faithful performance of duties; an assurance to the natives of India that they would find in Queen Victoria ‘a most gracious mistress;’ an expression of hearty belief that the home-establishment, if employed by the Crown, would serve the Crown well as it had served the Company; a declaration of just pride in the sterling civilians and noble soldiers at that moment serving unweariedly in India; and an earnest hope and prayer ‘That it may please Almighty God to bless the Queen’s Indian reign by the speedy restoration of peace, security, and order; and so to prosper her Majesty’s efforts for the welfare of her East Indian subjects that the millions who will henceforth be placed under her Majesty’s direct as well as sovereign dominion, constantly advancing in all that makes men and nations great, flourishing, and happy, may reward her Majesty’s cares in their behalf by their faithful and firm attachment to her Majesty’s person and government.’

The East India House in Leadenhall Street was chosen by Lord Stanley as the office of the new Council for India, on account of its internal resources for the management of public business. During more than two centuries and a half, the city of London had contained the head-quarters of those who managed Anglo-Indian affairs. The first meeting of London merchants in 1599, on the subject of East India trade, was held at Founders’ Hall. The early business of the Company, when formed, was transacted partly at the residences of the directors, partly in the halls of various incorporated companies. In 1621 the Company occupied Crosby Hall for this purpose. In 1638 a removal was made to Leadenhall Street, to the house of Sir Christopher Clitheroe, at that time governor of the Company. In 1648 the Company took the house of Lord Craven, adjoining Clitheroe’s, and on the site of the present India House. In 1726 the picturesque old front of this mansion was taken down, and replaced by the one represented in the above cut. Finally, in 1796, the present India House was built,^[193] and remained the head-quarters of the Company. Acquiring skill by gradual experience, the Company had rendered this one of the most perfectly organised establishments that ever existed. Ranged in racks and shelves, in chambers, corridors, and cellars, were the records of the Company’s administration; prepared by governor-generals, judges, magistrates, collectors, paymasters, directors, secretaries, and other officials abroad and at home. These documents, tabulated and indexed with the greatest nicety, related to the whole affairs of the Company, small as well as great, and extended back to the earliest period of the Company’s history. Declarations of war, treaties of peace, depositions of native princes, dispatches of governor-generals, proceedings of trials, appeals of natives, revenue assessments, army disbursements—all were fully recorded in some mode or other. The written documents relating to a hundred and fifty-five years of the Company’s history, from 1704 to 1858, filled no less than a hundred and sixty thousand huge folio volumes. These documents were so thoroughly indexed and registered that any one could be found by a very brief search. It was mentioned with pride by the staff of the India House, that when Lord Stanley, in his capacity as Secretary of State for India, made his first official visit to Leadenhall Street, he was invited to test the efficiency of this registration department, by calling for any particular dispatch, or for any document bearing upon any act or policy of the Court of Directors, throughout a period of a century and a half; a promise was given that any one of these documents should be forthcoming in five minutes. His lordship thereupon asked for a report on the subject of some occurrence which took place under his own observation while on a tour in India. The document was speedily produced, and was found to contain all the details of the transaction minutely described.

After the Court of Directors had elected seven members to the new council, the government nominated the other eight. The greatest name on the list was Sir John Laird Muir Lawrence, who was expected to return to England, and for whom a place at the council-board was kept vacant. The other seven nominated members were Sir Henry Conyngham Montgomery, Sir Frederick Currie, Major-general Sir Robert John Hussey Vivian, Colonel Sir Proby Thomas Cautley, Lieutenant-colonel Sir Henry Creswicke Rawlinson, Mr John Pollard Willoughby, and Mr William Arbuthnot. It was considered that the fifteen members, in reference to their past experience of Indian affairs, might fairly represent the following interests:

This classification, however, was not official; it was only useful in denoting the kind of knowledge likely to be brought to the council by each member. When, in the early days of September, Lord Stanley presided at the first meetings of the new council, he grouped the members into certain committees, for the more convenient dispatch of business. This grouping was based in part on the previous practice of the East India Company, and in part on suggested improvements. The committees were three in number, of five members each—partly nominated, and partly elected. The functions and composition of the committees were as follow:

Lord Stanley appointed Sir G. R. Clerk and Mr Henry Baillie to be under-secretaries of state for India; and Mr James Cosmo Melvill, late deputy-secretary to the East India Company, to be assistant under-secretary. Mr John Stuart Mill, one of the most distinguished of the Company’s servants in England, was earnestly solicited by Lord Stanley to assist the new government with his services; but he declined on account of impaired health. With a few exceptions, the valued and experienced servants of the Company became servants of the new council, as secretaries, clerks, examiners, auditors, record-keepers, &c.; for the rest, arrangements were to be gradually made in the form of compensations, pensions, or retiring allowances.

One of the first proceedings under the new régime was the appointment of a commission to investigate the complicated relations of the Indian army. The heads of inquiry on which the commission was to enter included almost everything that could bear upon the organisation and efficiency of the military force in the east, under a system where the anomalous distinction between ‘Company’s’ troops and ‘Queen’s’ troops would no longer be in force. Such an inquiry would necessarily extend over a period of many months, and would need to be conducted partly in India and partly in England.

In closing this narrative of the demise of the powerful East India Company as a political or governing body, it may be remarked that all the well-wishers of India felt the change to be a great and signal one, whether for good or harm. There were not wanting prophets of disaster. The influence of parliament being so much more readily brought to bear upon a government department than upon the East India Company, many persons entertained misgivings concerning the effect of the change upon the well-being of India. Before any long period could elapse, submarine cables would probably have been sunk in so many seas, and land-cables stretched across so many countries, that a message would be flashed from London to Calcutta in a few hours. Lord Palmerston once jocularly made a prediction, ten years before the Indian mutiny broke out, to the effect that the day would come when, if a minister were asked in parliament whether war had broken out in India, he would reply: ‘Wait a minute; I’ll just telegraph to the governor-general, and let you know.’ A war in India did indeed come, before the period for the fulfilment of this prediction; but the time was assuredly approaching when the ‘lightning-post,’ as the natives of India felicitously call it, would be in operation. What would be the results? Some of the foreboders of disaster said: ‘In any great crisis, it is true, which demands prompt action on the part of the governing country, this rapid intercommunication will be a source of strength; the resources of England will be brought to bear upon any part of India four or five weeks sooner than under existing circumstances. But, on the other hand, the ordinary work of government, at either end of the wire, will be greatly complicated and embarrassed by this frequent intercommunication of ideas. The Council of India will probably not be overanxious to fetter the movements of the governor-general; nor will the Secretary of State for India be necessarily prone to send curt sentences of advice or remonstrance to the distant viceroy; but it is doubtful whether parliament would suffer the council or the Secretary to exercise this wise forbearance. There would be a tendency to govern India by the House of Commons through the medium of the electric telegraph. A sensitive governor-general would be worried to death in a few months by the interference of the telegraph with his free action; and an irritable one might be stung into indignant resignation in a much shorter time.’ All such fears are groundless. If a message from England were perilous in its tendency through its ease and quickness of transmission, a message from India pointing out this perilous tendency would be equally easy and quick. The electric messenger does its work as rapidly in one direction as the other. A governor-general, worthy of the name, would take care not instantly to obey an order which he believed to be dangerous to the welfare of the country under his charge; the wire would enable him to converse with the authorities at home in a few hours, or, at any rate, a few days, and to explain circumstances which would probably lead to a modification of the order issued. The electric telegraph being one of the greatest boons ever given by science to mankind, it will be strange indeed if England does not derive from it—in her government of India, as in other matters—an amount of benefit that will immeasurably outweigh any temporary inconveniences.