After many signal successes, and equally signal losses, they at last lost Madras, at that time their principal settlement in India.It was restored to them by the Treaty of Aix-la-Chapelle;and about this time the spirit of war and conquest seems to have taken possession of their servants in India, and never since to have left them.During the French war, which began in 1755, their arms partook of the general good fortune of those of Great Britain.They defended Madras, took Pondicherry, recovered Calcutta, and acquired the revenues of a rich and extensive territory, amounting, it was then said, to upwards of three millions a year.They remained for several years in quiet possession of this revenue: but in 1767, administration laid claim to their territorial acquisitions, and the revenue arising from them, as of right belonging to the crown; and the company, in compensation for this claim, agreed to pay the government four hundred thousand pounds a year.They had before this gradually augmented their dividend from about six to ten per cent; that is, upon their capital of three millions two hundred thousand pounds they had increased it by a hundred and twenty-eight thousand pounds, or had raised it from one hundred and ninety-two thousand to three hundred and twenty thousand pounds a year.They were attempting about this time to raise it still further, to twelve and a half per cent, which would have made their annual payments to their proprietors equal to what they had agreed to pay annually to government, or to four hundred thousand pounds a year.
But during the two years in which their agreement with government was to take place, they were restrained from any further increase of dividend by two successive Acts of Parliament, of which the object was to enable them to make a speedier progress in the payment of their debts, which were at this time estimated at upwards of six or seven millions sterling.
In 1769, they renewed their agreement with government for five years more, and stipulated that during the course of that period they should be allowed gradually to increase their dividend to twelve and a half per cent; never increasing it, however, more than one per cent in one year.This increase of dividend, therefore, when it had risen to its utmost height, could augment their annual payments, to their proprietors and government together, but by six hundred and eight thousand pounds beyond what they had been before their late territorial acquisitions.