of the just debts of his uncle Omdut ul Omrah, and his grandfather Wallak Jah; and the East-India co., as grantees of the Na bob, were bound in honour to pursue the same course. So forcibly indeed was that honourable obligation felt by the court of directors, that they had not, as when the revenues were in the possession of the late Nabobs, confined their care, as directed by the acts of parliament, to the interests of British creditors only, but allowed native creditors also to prefer their claims. It was likewise to be taken into the account, that when the Nabobs contracted these debts, they had no other means of payment than the revenues of their country, and to

break out into an alarming state of mutiny dignity of his highness, and that it would and insurrection; so just were these de-mark the equitable disposition of his mind, mands, and so embarrassed were many of to appropriate a part of them in discharge these creditors in their circumstances, that the court of directors ordered this debt to be discharged, in the same proportion as the old cavalry debt, out of their part of the twelve lacs of pagodas, leaving themselves at a future time to reclaim upon the Nabob. The sum thus paid, appeared by lord Clive's treaty with Azeem ul Dowlah in 1801, to have constituted at that time a part of the debt from his highness to the company. All the other unconsolidated debts were now to undergo a strict enquiry. Some of them were contracted by the Nabob Wallak Jah, antecedently to the promulgation of the statute of 1784 at Madras, in Feb. 1785, others by his highness subsequently to that period. Others were contracted no other resource could their creditors after the year 1795, when Wallak Jah died, look for the liquidation of their demands. by his eldest son and successor Omdut al| Many of them, indeed, had received tunOmrah; others by the Ameer ul Omrah, cas, or assignments, upon the revenues second son of the Nabob, who died before from the Nabob, directed to the Aumildars, his father. The Ameer had been prime or collectors, who nevertheless could not, minister to his father the Nabob,and all the or would not satisfy them. Hence the property justly liable to pay his private hon. gent. contended that, although the debts, was, by a practice not uncommon in revenues were not strictly bound in mortthe native governments of India, seized by gage, they were virtually pledged, into the Nabob. Hence to that amount the Nabob whatever hands they might fall, to the disWallak Jab was considered liable to the charge of every bond fide claim. It was Ameer's debts, and to that amount the fair further to be considered, that the act of creditors of the Ameer were entitled to the 1784, by directing the East-India co. to benefits of the arrangement now under con-establish, in concert with the Nabob, a fund sideration, The East-India co. being of opi- out of his revenues for the liquidation of nion that to pay without distinction all the his debts, recognized the principle that his numerous demands before stated, would be revenues were justly applicable in such a wasteful and unwarrantable prodigality, measure. The 33d of the king, c. 52. sect. and that indiscriminately to reject all, 146. by repealing many parts of the act of would be the grossest injustice and cruelty, 1784, while it specifically retained the many of the debts having been contracted clauses relating to the Nabob's debts, again for civil and military services actually per- acknowledged the same principle. In purformed, or other fair considerations, came suance of that principle, twice solemnly to an agreement with the private creditors recognized by Parliament, the East-India of the late Nabobs of the Carnatic, to set co: had now consented that 3,40,000 paaside an annual fund of 3,40,000 pagodas, godas should be annually set aside for the with interest from May, 1804, the period of gradual liquidation of all the just debts of the extinction of the registered debts. This the late Nabobs. Had the directors acted sum was first to be applied to the discharge otherwise, it would have been fairly imof all claims approved in a manner which putable to them that, while the revenues he should afterwards describe, and the sur- were not their own, and their own pro plus was to form a sinking fund for the re-perty could not be touched, they were demption of the capital. That the East-ready and willing, in conformity to the di India co, by the adoption of this measure, rections of the legislature, to aid British acted most honourably, most justly, and most laudably, would not, he believed, be denied. If the revenues were in the hands of the present Nabob, every gent. must allow that it would be for the honour and

creditors in the recovery of their debts; but now the revenues belonged to themselves, now their own coffers might suffer, and their own treasury be affected, they turned a deaf ear to the creditors, forgot

the spirit which governed the legislature, when the East-India co. had no longer and pursued a contracted, a mean, and a possession of the Carnatic revenue, gentleselfish policy. Nay, the British creditors, men would see that it was not now the time whose demands were in existence before to argue the general questions, whether the the promulgation at Madras of the act of musnud of the Carnatic was forfeited by the 1784, would have a still stronger case conduct of Wallak Jah, and Omdut ul Omagainst the court of directors, as they rah; whether it was right to set aside Tamight say, "Now the revenues of the jul Omrah, the legitimate or natural son of Carnatic are in your possession, you pay Omdut ul Omrah, to raise Azeem ul Downo attention to our claims; but had they lah to the musnud, and receive from him a not been granted away by the Nabob, you grant of the revenues: such questions had were bound in law to assist us in the reco- no strict connection with the subject unvery of our just debts, you could not re-der deliberation, and had better, if nefuse your aid. Thus we are placed in a cessary, be debated separately, not drawn worse situation now the Carnatic revenues collaterally into discussion in any of the are in the hands of our countrymen, than stages of this bill. The question was not, when they were the property of a foreign what was the title of the East-India co. to prince." Enough, he trusted, had been the Carnatic revenues: not how they came said to make it appear, that in honour, in by the possession of them: but whether, justice, in regard to the principle twice whilst they remained in possession, they sanctioned by Parliament, the East-India had not done right in applying annually a co. were bound to provide a fund out of part of them in satisfying the claims of the revenues of the Carnatic, for liquida- such real creditors of the late Nabobs, as ting the bona fide debts of late Nabobs. But had an equitable lien upon those revenues? it might be asked on what conditions was The other condition was, "that the comthe continuance of that fund to depend? pany should annually set apart in their The first was, "that it shall be annually treasury, at Madras, the sum of 3 lacs and set aside so long as the administration of 40,000 pagodas, if, after defraying all the the revenues of the Carnatic shall be vest-charges of collecting the said revenues, so ed in the East-India co." It was needless much shall be realized to, and be received to shew that, if the revenues were placed therefrom by, the said company, &c." The in the hands of the Nabob, or in any other propriety of this condition was too obvious hands, the obligation on the part of the to need any comment. The house would East-India co. to provide for the debts of learn with pleasure, that there was no the Nabobs, would no longer exist. If there chance of any interruption to the agree were any gentlemen within the walls of ment arising from a diminution of the Carparliament who, because they disapproved natic revenues. As soon as the accounts the political occurrences which had led to shall be under the examination of the the treaty of assignment with Azeem ul house, the hon. gent. said he believed it Dowlah in 1801, or because they thought would appear that the net surplus for the the title of the East-India co. to the reve-year 1803-4, over and above the military Dues of the Carnatic to be wrongful, would subsidy of nine lacs, was about 340,0001. therefore unsettle the system which had British money, a surplus exceeding that of been established nearly 5 years, and re- the first year that the Carnatic was under store things to the status quo, as before the British management. The surplus of that treaty of 1801, such gentlemen could en-year, as stated by his noble friend, the late tertain no objection to this measure; be-president of the board of controul (lord cause, as soon as their favourite scheme of Castlereagh), in his budget speech of 1803, restitution was accomplished, the deed of was only 269,000l. It was obvious that, covenants was, by a special proviso, to become null and void. Nay, such gentlemen must rather approve the deed; for, being desirous to place the revenues in the possession of the Nabob, they must be glad that such a portion of the Carnatic revenues was from year to year to be applied, not to British purposes, but to the concerns of the Nabob. If due attention were paid to the consideration that the fund was to cease

without any improvement in the management of the revenues, the surplus of future years must be greater than that of the year 1803-4, as from May, 1804, when the registered debts were completely liquidated, the annual fund for the discharge of debts was no longer, as by marquis Corwallis's treaty, 6,21,105 pagodas, but only 3,40,000 pagodas. The difference, therefore, constituted a resource in the hands of the di

Ha

rectors, for the diminution of the debt from extensive scale by lord Wellesley, and in the Nabob to the company, or for any other this respect the system of both, although it useful purpose. This difference amounted was the fashion of the day to point out the to about 112,4427. sterling, and being variances in their plans, was precisely the added to the surplus of 1803-4, would same. The hon. gent. added that his only make the surplus of subsequent years ra- intention was to state the advantages rether more than 450,000l. Such was the sulting from the de facto government of the increase of revenue under British care, Carnatic; whether, when its origin was while the Nabob lived, not in the embar- taken into consideration, it was a governrassed condition of his predecessors on the ment de jure, he would not now pronounce musnud, but in a state of comfort, affiu- any opinion, as the question ought to have ence, and splendour. Such were the fruits no place, for the reasons he had before adderived from that undivided governmentduced, in the discussions of the bill he which the late marquis Cornwallis wished should have the honour to propose. to establish, as appeared from the follow-ving explained the origin, amount, and coning extract of his letter to the court of di- ditious of the fund to be applied, under the rectors, dated the 10th of Aug. 1790: directions of the deed, to the liquidation of "I must freely own," says the noble mar- the just debts of the late Nabobs of the quis, "that I could not venture to propose Carnatic, he then proceeded to state the any plan, on the success of which I could mode to be employed in ascertaining the have any firm reliance, unless the Nabob bona fide claims, in separating the real from could be induced by a large annual reve-the fictitious creditor. Three commissionnue, regularly paid, and properly secured ers were appointed by the East-India co. to him, to surrender the management of with the concurrence of the creditors, for his country for a long term of years, to the the purpose of examining the origin, nacompany. The Nabob's age, his long con- ture, validity, and justice of every indivinection with us, his right to the possession dual claim, and each claimant was bound of the country, which, however, without to prove his debt. This proceeding was in our assistance, would have been but of lit-strict conformity to the principle laid down tle value to him, and exaggerated accounts by the late Mr. Burke, in his famous speech of former services, may furnish topics for on this subject in 1785. Enquiry," said popular declamation, and may possibly en-that eloquent orator and sagacious statesgage the nation, from mistaken ideas of hu- man, "should precede payment, the onus manity, to support a system of cruelty and probandi should be laid on the claimant." oppression; but whilst I feel conscious that Both the parties had covenanted to subI am endeavouring to promote the happi- mit, without appeal, to the decision of the ness of mankind, and the good of my coun- commissioners, who were, however, retry, I shall give very little weight to such stricted from allowing any claim which had considerations, and should conceive that I its foundation in presents, gifts, or gratuíhad not performed the duty of the high tous allowances (other than the reasonable and responsible office in which you did me fees of lawyers, physicians, &c.), contrary the honour to place me, if I did not de- to the acts of parliament in such cases proclare, that the present mixed government vided. There was also another commiscannot prosper, even in the best hands in sion in India, which was, to act in obedience which your part of it can be placed; and to the instructions of the commissioners that unless some such plan as that which I at home, and report to them all the inforhave proposed should be adopted, the in-mation and evidence they should be able to habitants of the Carnatic must continue to collect. That commission was also embe wretched, the Nabob must remain an in- powered to receive claims, for the sake of digent bankrupt, and his country an useless the convenience of those who might wish and expensive burthen-to the company, and to prefer them in India, to hear all the evito the nation." This, said the hon. gent.dence in support of, or in opposition to was a sufficient proof that the late marquis them, and to transmit it to the English Cornwallis entertained a just conception of commissioners, in whom alone the power the best mode of promoting the British in- of final adjudication was vested. The terests in India, and establishing the hap-commissioners in England had proceeded, piness of the native states connected with in execution of their official duties, to the company. The recommendation of his search every document tending to give lordship was, in 1801, effected upon a more them general information of a useful na

ture; they had examined with particular ties, or witnesses on oath, or the produccare all the proceedings of the committee tion of papers, or that they should be inat Madras, and looked into the nature and vested with any powers, which cannot be extent of a great variety of the claims. vested in them without the authority of They had not, however, given judgment in parliament, or that the trusts, intents, and any case, and the ground of this conduct, purposes of these presents cannot effectuwhich he should hereafter state, would ally be carried into execution, according to shew the origin of the present application the true intent and meaning of these preto parliament. But although the commis-sents, then, and in any such case, all the sioners had been prevented from exercising said parties hereto, and their respective powers of a judicial nature, they had issued successors, executors, administrators, and notices, and published them in the Gazette, assigns, shall and will use their best and and periodical papers, for the purpose of utmost endeavours to procure such act, or ascertaining the number of the claimants, acts of parliament, to be passed from time and amount of the claims, which certainly to time, as the said commissioners in Engwas as considerable as stated by an hon. land shall think necessary or adviseable, gent. (Mr. Francis) on a former night, and for the purposes aforesaid, or any of them." had taken every other step which appeared The hon. gent. stated, that the commisto them necessary for the furtherance of signers were desirous of carrying into efthe important objects of the commission. fect the evident preference of the parties, But why had they not proceeded to adjudi- and calling, in all cases, for voluntary cate? this was now to be explained. A oaths; but they entertained doubts of the general outline or sketch of what was pro- propriety of the proceeding. In a letter to posed to be detailed in the deed was sent Mr. Ramsay, dated the 27th of July, 1805, by the court of directors to the commission- they observed, that "however prevalent ers, by which they were instructed "to the usage of administering such voluntary found their proceedings in all cases on the oaths has long been, and however anxious voluntary oath of the persons appearing or we may be to conform ourselves to the incalled before them." By the deed, how-tention of the parties in this point, yet, afever, as would appear by the following ex-ter an opinion which, as we are informed, tract from the 19th clause, a discretion, as has been very recently expressed by the to the mode of evidence to be required, was highest legal authority, upon the illegality vested in the commissioners, "who are to of administering such oaths, it seems inbe at liberty to receive proof by the testi- cumbent upon us, for the sake of all who mony viva voce, or by examination on writ- are concerned, the East-India co., the ten interrogatories, or by affidavit of wit- bona fide creditors, and ourselves, to take nesses, and by production of written docu- the best means of informing our judgment ments, and by the examination of the par-before we issue notices, requiring all perties, and by reference to the accounts and sons to take this voluntary oath previous to vouchers of the said several Nabobs, and their evidence being received; for it is the said Ameer, and the proceedings of the said united company, and their court of directors, and committees, and of their governments abroad, and any committees, or officers acting under such officers, or otherwise, as shall be satisfactory to the said commissioners in England,' The hon. gent. said, that he must request the attention of the house also to the last clause of the deed, which was as follows: "It is hereby declared and agreed, that in case the said commissioners in England shall be of opinion that the powers hereby intended to be vested in them are insufficient for the execution of the trusts reposed, according to the true intent and meaning of these presents, and that it is necessary they should be empowered to administer oaths, or compel the attendance and examination of par

hardly necessary to state that we ought not to require any one to take an oath which no one is legally authorized to administer. We would therefore submit it to the parties, whether, as the most effectual and speedy method of relieving them and ourselves from this difficulty, which meets us at the outset of the business, it would not be desirable for them to take the joint opinion of the law-officers of the crown, and the counsel to the East-India co., on this question, the importance of which, in its application to this case, is too obvious to require comment. If those gentlemen should be of opinion that magistrates, in such a case as the present, are justifiable in administering a voluntary oath, we should feel ourselves warranted by the sanction of such respectable authorities, to act in con

He

did not make this observation in derogation of the considerable assistance received from his hon. friend's successor (Mr. Horner), a gent. in the profession of the law. The court of directors sent the letter of the commissioners, from which the extract which had been read was taken, to the three eminent counsel whose opinion was desired, and the following was their answer:

thority alluded to, and from other judges on the bench, we are obliged to say, that at least so much doubt is thrown upon the legality of administering voluntary oaths that we cannot say that they may be ad

formity to the intention of the parties, and to resign his situation, so that the commisto refuse any testimony which is not tension had lost his important services. dered on oath. If they should entertain a contrary opinion, the parties and ourselves will have the satisfaction of knowing that we have no discretion upon the subject, and that we are under the necessity of receiving and deciding upon testimony, not on oath, because an oath cannot with propriety be required.-Whatever may be the result of that opinion, we should be much concerned if the readiness we express to" After what has fallen from the high auproceed upon such evidence only, as the parties have considered to be the best that could be obtained, without the interference of parliament, should lead them to conclude that, in our judgment, such evidence would be as effectual for the execu-ministered with safety and propriety, nor tion of the trusts reposed in us, as that can we advise the commissioners to require which is given under the sanction of an them to be administered. (Signed) "Sp. oath, administered in the ordinary course Perceval; V. Gibbs; W. Adam."-The of judicial proceedings. On the contra- following extract of a letter from the comry, we think ourselves bound to take this missioners to Mr. Ramsay, dated Aug. 15, opportunity of declaring, and we feel our- 1805, would shew the impression produced selves more particularly called upon to do upon their minds, upon receiving the senso, by the provision of the 17th clause of timents of these learned authorities, for the plan, and the last clause in the deed, whose judgment they, in common, he bethat, after having examined and considered lieved, he might say, with the house, and the extent and nature of many of the the whole nation, felt the highest respect. claims contained in the papers and docu- Having acknowledged the receipt of the ments you have from time to time trans-letter from the India-house, containing the mitted to us, we are persuaded that it will opinion of the counsel, they proceeded not be in our power to investigate and de- thus: "The result of the reference to the cide on the whole of them, with the same legal authorities, who have been consulted degree of satisfaction to all the parties con- on that subject, of course makes it imposcerned, as if we were legally authorized to sible for us to require any oath at all, and examine persons regularly on oath. As only serves to confirm us in the opinion we soon, however, as we are furnished with gave in the concluding part of our letter of the legal opinion, which we have request-the 27th of July. Under these circumed, upon the point which forms the more stances, we feel it incumbent upon us, in immediate subject of our present commu-justice to the parties, as well as to ournication, we shall adopt, without delay, [selves, to express that opinion, in the words such measures, and such mode of proceed- of the last clause of the deed, viz. that the ing, as may appear to us best calculated, powers now vested in us are insufficient under the existing circumstances, for the for the execution of the trusts reposed m attainment of the object of our commis- us, according to the true intent and meansion. We beg the favour of you to take ing of that instrument."-The house had the earliest opportunity of communica- now heard the circumstances which led to ting his letter to the hon, chairman, and the application to parliament, and occacourt of directors. We have the honour sioned him to move for leave to bring in a to be, &c. R. Ryder; B. Hobhouse; Th. bill. When the bill was introduced, the Cockburne."-The hon. gent. observed, house would find no clause by which parthat as this was the first occasion which liament confirmed or sanctioned the agreehad occurred of mentioning the names of ment of July, 1805, between the East-India the commissioners, he took the opportu- co. and the creditors of the late Nabobs of nity of informing the house that his hon. the Carnatic. That agreement had been friend first named (Mr. Ryder) had been correctly drawn, and formally executed by compelled, by weak and tender health, the parties, and had received the sanction which no man lamented more than himself, of the board of commissioners for the afVOL. VI,

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