,ors
>\st India t
John Fiott
UNIVERSITY OF CALIFORNIA
AT LOS ANGELES
LETTER
TO THE
PROPRIETORS
OF
EAST INDIA STOCK,
'
By Mr. J. F I O T T,
OF LONDON, MERCHANT.
TO WHICH IS ANNEXED,
COPY OF MR. ALD. LE MESURIER's PROTEST,
AGAINST
The CONTRACT for SHIPPING,
Entered into by the COURT of DIRECTORS of the EAST INDIA
COMPANY, for the Seafons 1792, 1793.
LONDON:
SOLD BY W. RICHARDSON, ROYAL EXCHANGE ; J,
DEBRET, PICCADILLY; AND j. JOHNSON AND
MESS. RWNGTONS, ST. PAUL'S CHURCH-YARD.
JIDCCXCIU
to THE
PROPRIETORS
OF
EAST INDIA STOCK.
SIRS,
IT was aflerted, by fome of the Directors, at the
General Court held in May laft, fpecially on fhip-
ping affairs, that public contract was the pratfice of the
Court; and the fame aflertion was repeated at the enfuing
-Quarterly Court, in June, although no traces of it are to
.be found in the printed* papers of their proceedings.
i
As the queftion of public contract, brought before the
General Court in May, had been kept from a Ballot,
by. fimilar aflertion?, and by the manoeuvre of an amend-
ment; I pledged myfelf, injune laft, previoufly to the
renewal of that important queftion, to put fuch afTer-
tioris to the proof, by tendering new fhips of their own
fize, built under their own infpection, commanded by
.-their, own .officers, and in every reipedr, conformable
Jo all; their, regulations > that in cafe they did not ac-
of the loweft tender, under fuch circumfrances,
354898
( 4 )
they might be left without excufe. I fulfilled this pledge
in July laft, on their advertiflng for tenders of (hips
from any perfons y &c. Mine were at . 18 per ton to
China, when theloweft of other tenders were at . 20
per ton to China ; and many were as high as . 23 ioj.
to China, and to other parts in proportion. After a fecret
conference held by the two chairs with the Old Owners,
it was finally agreed, to take the (hips of the Old Owners,
as follows ; the loweft, at .19 los. per ton to China,
for large (hips ; . 23 per ton to China, for the
(mailer, and fo in proportion for other voyages ; while
mine, at. 18 per ton to China, as above mentioned,
were rejected.
The proteft of one of your worthy Directors, Mr.
Alderman Le Mefurier, againft fuch proceedings, is re-
markably full and ample upon the fubject ; and having
been called for and read at the laft General Court, is
now become a public paper ; and as fuch I beg permiflion
to offer it to your confideration.
The printing of it, with a few other papers, refpe&ing
the Company's late contract for (hipping, was agreed up-
on at the laft General Court. My friends had retired in,
that confidence, but advantage being taken of their ab-
'fence, the queftion was unexpectedly put, when there
was a fmall majority againft printing and laying them be-
fore you. The purport of the other papers, however^
may eafily be gathered, from this plain and manly appeal,
of one of your Dire&ors, to your understandings.
After this laft negociation, furely no man, who value*
his character, will again afiert that public contract is ad-
fcmf
( s )
Mtred to. The prefent ftate of the queftion is therefgrt
fhortly as follows :
The annual tonnage employed by the company is now
upwards of 33,000 tons. The price, in Auguft 178^ J
when this competition firft began, was, for peace freight,
33 P er ton kut ' s now re duced to j. 21 5*. per
ton, viz.
2783, 33o tons at -33 P cr ton >
1 792, 33,000 tons at the prefent average
price about . 21 5*. per ton,
Saving already effected per ann.
But as it is notorious, that the whole may be done at
jf . 1 8 per ton, which is a fadl admitted by feveral Direc-
tors, and fcarcely denied by any, it will make a farther
faving of, fay, on 33,000 tons at . 3. 5*. . 107,250
Add faving as above, . 387,750
Total faving eafily effeded. . 495,000 *
A fum more than equal to the whole of your dividends. v
Were we to go by the tenders, which pour in upon the
Company, we might ftate the faving immenfely more ;
but the above faving of near half a million per annum, is
already in part effected, and the remainder incontroverti-
bly can be fo, whenever the fclfifh interefts of individuals
lhall give way to the public good, or gentlemen ceafe to i
enjoy the privilege of voting refpe&mg their own con- /
tracts. What, therefore, the independent Proprietors have in
.Tiew, is not merely to obtain the faving of the additional
. 107,250, but to eftablifh.a principle^ thatlhall prevent
corruption from hereafter regaining its afccndancy, and
recovering
( 6 )
recovering thefe hard-fought acquifitions, when the at-
tention of the Proprietors fhall, by degrees, be drawrs
off to their own more immediate affairs. It is impoflible
for the ability of any man to fuggeft a principle more fafe,
more falutary, more unfufpicious, and which fa readily
executes itfelf, as that of Public Contrafl ; to which, at
a proper time, therefore, I fhall again prefume to call your
attention.
I have the honour to be, with great refpeft,
Sirs, Your faithful and obedient
Humble fervant,
JOHN FIOT*.
Pencburcb-ftreet, Jan. I, 1793.
PROTEST
O F
Mr. ALDERMAN LE MESURIER.
" LONDON, lid Augufl^
K GENTLEMEN,
" I beg leave to enter my diflent a'gainft the twofol-
" lowing Refolutions agreed to by the Court on the j6th
<c inftant, viz.
j. " That this Court do approve thefaid Report of
f< the Committee of Shipping, refpecling the rate of
** Freight to be 2;iven for the Ships to be taken up for the
u enfuing feafon."
2. " That as the Owners have agreed to a redu&ion
* c in their Freights, which will be greatry more" than
" adequate to the favings which might arife from accept-
"" ing the Tenders of two new Ships "by John Fiott, Efq^.
" the Comn'iittee (.'f Shipping be therefore difcharged
" from the References of Court, rcfpedlins thofo Ten-
M
** 'de*rs on the 25th ulti-no and 8th inftant.
" I confider
( 7 )
K I cortficier both the refolutions as contrary to every
" principle of a Public Contract, contrary to the faith we
." ought to hold towards individuals, and in their con-
" fcquenee highly detrimental to the Commerce in
." India, and injurious to the true intercfts of the Com-
* l pany. I {hall endeavour to flate my reafons i;i a man-
" ner, as refpectful as the ful je& will admit, and I truft
" that every Gentleman will be aflurcd, that I mean not
tj to give oitence, but that I am fully perfuaded of the
. " honour with which every one of my brethren has a&-
" ed, in the manner he conceived to be moft for the
" P u
" I mud, however, deprecate the fecrscy with which
" this bufincfs has been couuu^ed, and the precipitancy
* c with which the decifion has been patted, as well in the
" Committee of Shipping, as in the Court. It was on
" the 25th July, that the Tenders for letting /hips were
" opened and referred to the Committee of Shipping to
<c examine and report ; but it was not till the I5th inftanr,
" about diree o'clock, that the Chairs brought this bu-
" finefs before the Committee, where I believe it palled
" in little more than half an hour; and the report was the
** fame day brought before the Court, at the very late hour
" of half pall four j but in confequcnce of the oppofition
" I gave to it, the debate was adjourned to the next day,
" the i6th inftant. On that day, Gentlemen will re- ,
" collect, that there were but fourteen Directors prefent, y
u feveral of whom being in haite to go to their country
u feats and other engagements, the debate did not long
<c continue, and yet the queftion for agreeing with the
* c Committee in their report, was carried by the very
" fmall majority of 8 to 6 j and of the fourteen Directors
** who voted, feven, including the Chairs, were Mem-
M bers of the Committee of Shipping. Knowing the fen- ^v
" timents '
( 8 )
timertfs of feveral of our abfent brethren, I gave it as
tl my decided opinion, that if the Court had been more
** full, the queftion would have been loft j and I there-
*' fore hope, that it is not too late to revife it. In that
** hope it is, that I have entered into this detail ; and be-
*' fore I go into the merits of the queftion, I beg to afk
' in what our condu5t differs from that of the Direc-
< tors of the Old Englifli Company, mentioned by an
u Honourable Director as having fallen under the cen-
* l fure of Parliament. Like them the prefent Court, if caU
** led upon, could only fay, that we referred the matter
* c to the Committee of Shipping, they to the Governor
c< and Deputy Governor, who fettled what they thought
* l to be the Freight, and we, knowing nothing of the mat'
** ter, agreed to their report. Is there any diflimilarity be-
ct tween the proceedings of the two Courts ? If there is
Ci not, can we be fo eafily excufed as. our predeoeflbrs ?
w After all the difcuflions which have, taken place on the
** fubjecl: of Shipping, after the Court's invariable prac-
* tice of advertizing for Tenders, and of regulating the
*' Freight in part, if not altogether, by the Tenders offer-
*r & ed, and efpecially after the declaration from the Chair,
* c to one of the laft General Courts, * that -we aftually
* c did hire our Jhips by public contraftj how can we be
** jufdfied in rejecl:ing Tenders made on low terms, and
* c in fixing rates of Freight that are exceflive, without
* c having called for one eftimate or document on which
** to ground our judgment, and without fraving had the
ys . ct opinion of our own Officers on the fubjecti this too
*' difpatched in the Committee of Shipping in a very
" fhort time, and agreed to by a fmall majority in a thin
* c Court, and in the abfence of feveral Gentlemen,
" known advocates to a farther reduction of the
^ Freight.
( 9 )
u Had we followed the fteps of the Court in 1786,
a in having the conferences between the Courts and
u Managing Owners held in open Court, I have not a
" doubt but that, fairly, honourably, and amicably on
*' both fides, a much greater reduction of Freight would
<c have taken place than that now fettled. Of the merits
u of the faid reduction I will now proceed to confider.
*' It has been {rated in Court, that we this year have
** made a faving of about .28,000 on the quantity of
u 29,000 tens of Shipping, agreed to be employed next
u feafon for our current trade ; it will be found that this
" quantum of faving is greatly over rated ; mean while
" I {hall obferve, that it is ftated to arife from the fol-
*' lowing Reductions, viz.
" A Reduction of IQS. per ton on the Freight of Ships
** ftationed to China direct.
" A Reduction of 30*. per ton, on thofe ftationed t
44 China circuitoufly.
" A Reduction of 20*. per ton, of Coaft and Bay,
* Bombay, and Bencoolcn Ships.
" From this we muft infer, that no difference hasarifen
" in the expences of outfit, and in the prices of Stores,
* Provifions, Infurance, &c. between the prefent year
and 1787, when the laft reduction of Freight took
" place, that will warrant an abatement of more than /
** ten fhillings per ton ; but I aver, there ate favings to be
made by the difference of price in various articles, of
" more than thirty millings per ton ; and to mention only
" one among many, the premium of infurance to and
" from China, which, in 1787, was eftimated at eight
* per cent, is now reduced to fix, making a difference of
" more than . 400 in the eftimate, which is equal to
" a reduction of ten Shillings per ton,
C * On
" On the fecond head of reduction, that -on the Ships
t6 bound circuitoufly to China, I {hall obferve, that I dt?
" not fee how the Court can agree to fend one of the
" China Ships circuitoufly, at the rifk which always at-
** tends a circuitous voyage, and at anunneceflary expence
" of Demorage, when we (hall have eighteen Ships fta-
" tioned for Coaft and Bay j a number more than fuffr-
** cient to convey our outward cargoes and pafTengers ; and
C therefore I conclude on this head, that if any of the
C China Ships are fent circuitoufly, it wiH be for the
<c benefit of the refpeclive Commanders and Owners,
<c and not for that of the Company.
On the third head of reduction, that of the Coaft
,/ <e and Bay, Bombay, and Bencoolen Ships, which form
: ct the greateft part of our Tonnage, I am aftonifhed
<e how any Gentleman can fay, that there is any faving,
,** when fo lately as laft Spring we freighted two Ships at
. y " . 20 per ton for this fame voyage, which we havt
<c now agreed to give . 25 ios. for. I know that thefe
'* two Ships were fitted in a peculiar manner j but I in,-
" fift on it, that the faving therefrom to the Owners
** was not equal to the advance we now make of ^.5 IQJ.
* per ton ; and I muft again call to the recollection of
** the Court, a late declaration to the Proprietors from
w the Chair, that we had fucceeded in reducing the Freight
*.. gradually from .26 to^..2 per ton ; and I will afle
" of you Gentlemen, if you do not think the Proprietors
* prefent underftood that to mean a general and perma*
* neni reduction, and not applying merely to the tui9
* Ships?
<* I muft exprefs my furprize, that the able, remarks of
** an Honourable Director, whofe profelHonal abilities^
* and honourable and manly character) will always
w com-
* command refpe.1 and attention from me, even when I
M moft differ from him on the advantages now enjoyed
* l by the Coaft and Bay Ships, were not more attended
" to. With that Honourable Director, I perfectly agree
" in one point, the propriety of fixing one rate of Freight
* -f jr all the Coaft and Bay Ships ; and could 1 have
" flattered myfelf, that we fhould have agreed on the
" quantum of reduction, I would heartily have joined
** him on putting the 18 Ships on the fame footing ; and
* not as we have now done, fettled a certain Freight for
'* twelve of thofe Ships, but leaving a mofr difagrecable
" difcuflion open for the Freight of -the fix additional.
" Nothing having been faid in .Court on the Bombay
41 Freights, I fhaft content myfelf with obferving, that
41 the fame reafons which apply for a redu.Hon in the
" Bengal Freights, apply as forcibly to thefe ; all thef
u Ships being now fure of furplus tonnage ; and I have
<c no difficulty in '{rating it as my firm opinion, that the
'< fame rule of Freight ought to be given to all our Ships,
*' whether ftationed for Bombay, Coaft and Bay, or Chi-
" na. I therefore conjure the Court, not tobefo hafty
" in voting away the property of our conftituents, but
u to revife what we have done, and to fee whether, on
* l every principle of fairnefs and juftice, better terms
" ought not, and therefore whether they might not, be
* l obtained of the Owners.
u My opinion of .farther reductions is founded on my
u own obfervations and experience, aided by the opi-
* l nions, which I have gathered -from profeflional and co,n-
*' mercial characters in a^ out of our fervice ; and I do
^ c not hefitate to fay, that we ought to look to a period,
*' and tha.t not a very diftant one, when the Ships of 800
<" tons ought to be let us for . 20 per ton. Though net
C2 "inclm-jJ
f " )
<c inclined now to prefs forfuch a reduction, I fhall take
K leave to enumerate fome of the regulations and improve-
a ments which have been made of late years, and give
<c advantages to our {hipping that they did not for-
*' merly pofiefs, viz.
" r* The Ships are now taken up at full Freight for
u builders meafurement.
" 2. They go fix voyages inftead of four.
tc 3. They are always fure of furplus tonnage.
cc 4. By the introduction of copper lheathing,the voy*
** ages are made in two thirds of the time they took
" formerly. This may account for the fall on the pre^
<c mium of infurance.
" 5. By this improvement the neceflity of giving the
** Ships a thorough repair on the commencement of the
<c third voyage is done away, and the fourth is now the
<* repairing voyage.
" Laftly. By feveral judicious regulations in the
" Committee of Shipping, the mips are better flowed,
" more roomy and healthy, and though their comple-
** ment of men is reduced in number, they carry more
u able feamen than formerly.
* c Surely, Gentlemen, thefe are not trifling advantages,
& and it is not an unreafonable requeft, that a reduction
" of Freight {hould accompany them.
*-* As, however, I have fet out with dating the favings
" in the prices between the year 1787, and this, to be
" equal to about 30^. per ton, and ftill contending that
the Bengal Freights ought to be equalized to the
** China, I would propofe that all Freights on the fmall
" Ships fliould be fixed for this feafon at . 22 per ton,
and, on the fhips of 1150 tons and upwards, at
" - 18 Jo.
I will
( 13 )
** I will now proceed to fet forth the real faving by the
rates of Freight now agreed to from the Freights of lail
*.' year, on the 32 Ships ftrft in rotation, to be taken up.
On the Befborough "^
Atlas, j 5 Ships, their Freights
Glatton, S- being before fixed, there
Vanfittart, is no faving.
Lanfdown, J
Warley, ~\
Royal Charlotte, ( < ditto > their total tonna S
Hindoftan, f * 8 55 tons, favings at zor
Ceres, tons J per ton ' ' ***7
7 other Chinafhips790each 5530, favings I0ij. 2765 o
o
12 Coaft & Bay, 9480 do. do. . 9480 o
Total favings on the common Shipping plan, . 17832 10
" But (hould the Court concur with me in opinion,
** that the terms I have propofed a.re proper, an addi-
*' tional faving will take place as follows, viz.
On ii large and faiall China Ships, freighted
at i8/. 10^. inftead of I9/. IDS. and 22/.
inftead of 23/. faving 20^. per ton j on
1038510115 - 10385 O
4 Bombay and Bencoolen do. .at do. in-
ftead of 24/. 10s. faving 2/. ics. per ton,
on 3160 tons - - - 7900 O
J2 Coaft and Bay do. at do. inftead of
25/. ioj. Taving 3/. los. per ton, on
9480 tons
Additional faving
Prefent faving as above -
Total propofed faving for this feafon on
23025 ton of Shipping
( 14 )
Having dwelt fo long on this refolutlon, I fhall hot
* detain you Jong on the other ; particularly as I agree
<* in the propriety of difcharging the Committee of Ship-
" ping from thfe Court's references, to confider of Mr.
* Fiott's Tenders for the faid Tenders being now open
^ to the confideration of the Court, I conceive that an
u opportunity will foon occur for confidering their me-
** rits ; but I do moft ferioufly proteft againft the reafon-
** ing of the faid refolution ; viz. * As the Owners have
" agreed to a reduction in their Freights, which will be
<c greatly more than adequate to the favings which might
** arife from accepting the Tenders of two new Ship$
* by John Fiott, Efq.' This reafoning I muft be per-
<* mitted to fay, is unfounded and unwarranted by any
fair argument or mercantile calculation. It does not
** follow, that the fame reduction of Freight on the Old
* c Ships is not to take place if we accept Mr. Fi ott's
** Tenders, and I will fhew, that by faid Tenders, the
e< Company would fave nearly as much, as fey the fo much
K talked of redu&ion effe&ed by the Committee. If I
fay, the Court was to agree to take up the Ship
c< tendered by Mr. Fiott, now on the flocks, and^to his
" building the one he alfo tenders of 1200 tons, the&-
vings will be as follows; viz.
On the Ship building of 1000 tons, if ftationed
for Coaft and Bay at i8/. per ton, the differ-
ence between that and 267. 10*. the Freight
of laftyear, make a faving of - 8,506
The new Ship of 1200 tons, if ftationed to
Bombay or Bencoolen,at i8/. per tori, the dif-
ference between that and 2f/. IQJ. to the
Freight of laft year, makes a faving of - <},oo
Saving by thgfe Ships - . 17,500
*t whjch.
( '5 )
* which, on 2200 tons of Shipping, is within a triite
K as much as is obtained by the reduction on the 23,025
w tons taken up for the prefent feafon, befbre mentioned,
*' May I aflc of my brethren, if fuch a faving is not an
<c object for the Company r even if Mr. Fiott's prices
" are compared with the reduced Freights of this year,
" is 15,300 ; which I am fure we yet may, and I con-
" tend we ought to fave to the Company. As there are
yet fix additional (hips to be taken up on reduced
" Freights, we {hall furely do the Old Shipping intereft
" no injury, if we hire thofe which are tendered on fuch
" advantageous terms. I am fatisfied it is our duty to do
" it, and that it can be done without any breach of faith.
tt or acting contrary to the fpirit of the Company's Bye-
" Laws j but if the Shipping Owners feel themfelves ag--
" grieved, they will, as in 1786, appeal to a General Court
** of Proprietors, who will then, by giving us their di^
u reclions, enable us to act on fure ground.
' I fhall here clofe my diflent from thefe resolutions,
u befpeaking the candour of my brethren to judge favo-
" rably of what I have written ; and if there is one of
" you Gentlemen, who from hearing this read, (haM
*' think me inimical to the Shipping intereft, permit me
" to fay, that he will do me much injuftice. Every claim.
" they can make to a fair preference fhall have my moft
" cordial fupport j but what is a preference ? is it any
" thing more than their being preferred when they fhall
<c - offer on thejame terms as others ; why fhould it conti-
" nue to be argued, that .moft of our Ships being built
' during the war, cannot fail on terms fo cheap as New
" Ships ? I maintain on the contrary, that the Old Ships,
" by having enjoyed high Freights during 'feveral voy-
* ages, have cleared themfelves, and that their Owners
" can
354898
* can afford to let them on as cheap or cheaper terrrif
w than New Ships, whofe Owners muft difburfe,
et in the firft inftance, 2O,ooo/. or more on each Ship
*' fent to fea. The fituation of Old Owners is very dif-
44 feren't now. from what it was in 1786; the fubfequent
** voyages have done away the pleas then brought forward
*' in argument of paft fervices and prefent hard/hips,
* c as the grounds of a continuance of high Freights; and
*' the Owners can now look with a moral certainty on
*' their Ships always having furplus Freight, and to their
** being in more conftant employ than heretofore, from
u the happy increafe of the Company's commerce, inde-
" pendent of the additional profpefts which the encou-
" ragement given to the privileged trade, and the va-
a luable article of Sugar, offer.
" But until the Directors fhall ferioufly enter upon the
" neceflary duty of obtaining an efiential reduction of
u Freight, the Company's treafury will continue annu-
44 ally to pay ioo,00o/. more than the fervice requires,
*' the illicit trade of India with Europe and America will
" fiourifh, the Indian fubje&s be feverely checked, and
** the navigation and commerce between this country and
" India will be materially injured.
" I have the honour to be,
" moft Befpe<afully,
w your moil obedient,
" faithful humble fervant,
" PAUL LE MESURIER;'
27 35
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