But the dissolution of the company was rapidly approaching. That corporation contained many men of the first rank and talents in the nation, who in their assemblies, were in habits of discussing the measures of the crown with the accustomed freedom of a popular body. Two violent factions, which assumed the regular appearance of court and country parties, divided the company, and struggled for the ascendancy. James endeavoured to give the preponderance to the court party, but his endeavours were unsuccessful; and his failure disposed him to listen to complaints against a corporation, whose deliberations he found himself unable to control. To their mismanagement he ascribed the slow progress made by the colony, and the heavy losses that had been sustained.[37]
[Sidenote: Colony taken into the hands of the King.]
After hearing both the corporation and their accusers, the privy council determined to issue a commission, appointing persons to be named by the crown, to inquire into the affairs of Virginia from the earliest settlement of the province, and to report thereon to the government. This commission seized the charters, books, and papers of the company; and all letters and packets brought from the colony were ordered to be laid unopened before the privy council. Their report attributed the misfortunes of the colony to the corporation in England; and James, at no time a friend to popular assemblies, communicated to them his resolution to revoke the old charter and grant a new one, which should respect private property, but place power in fewer hands. The requisition that they should assent to this proposition, and surrender their charter, was accompanied with the information that the King was determined, in default of submission, to take such proceedings for recalling their letters patent as might be just. The company, however, resolutely determined to defend its rights; whereupon a writ of _quo warranto_ was instituted in the court of King's Bench, which was decided according to the wishes of the monarch. The company was dissolved, and all its powers were revested in the crown.
Above one hundred and fifty thousand pounds sterling had been expended in planting the colony; and more than nine thousand persons had been sent from England to people it. Yet, at the dissolution of the company, the annual imports from Virginia did not exceed twenty thousand pounds in value, and the population of the country was reduced to about eighteen hundred persons.