One difficulty had been removed when, about the time of the grant of the dewannee, the young Nabob, Nujum-ed-Dowlah, had yielded up to the Company the whole of the revenues of the three provinces, in consideration of a fixed annuity. The question, after that, no longer regarded the Nabob, or his revenues; it was only between the Company, their servants, and the natives; and Clive believed that, by an arrangement regarding the salt trade, the interest of all could be conciliated: and it is to be recollected, that the Directors had ordered that the new plan should have a view to "the interest of the Company, and likewise of the Company's servants."[77]
It is unnecessary to enter into all the details of the plan finally adopted in September, 1765, which were chiefly arranged by Mr. Sumner. The salt trade was to be conducted solely by a society composed of all the higher officers of Government, civil and military; their capital was to consist of a certain number of shares; the civil servants, as low down as factors, the military, as low down as majors, were to hold shares; chaplains and surgeons had also their shares; the capital for carrying on the trade was to be furnished by the sharers, in their due proportions. The affairs of the Society were conducted by a committee; the salt was to be furnished to them by contractors, and was to be sold at various grand stations by agents, generally Europeans, appointed by the Committee, the purchasers from whom could carry and sell it over the country at pleasure; 35 per cent. on the price was allowed as a tax to the company[78], who had now come into the Nabob's place; the selling price, at the different remote stations, was also fixed at rates 12 or 15 per cent. below what was found to have been the average rate of the twenty years preceding.
Besides providing ample allowances to the chief of the Company's servants, the great advantage of this plan was, that it allowed them to withdraw their attention wholly from trade.[79] They were sleeping partners of a sure and profitable concern, the whole details of which, without any care on their part, was managed by a committee devoted to the business.
The profits of this Society were, as might have been expected, very great. "The capital of the salt trade," says Clive, writing to Colonel Call[80], "is 32 lacs of sicca rupees, upon which the most moderate expect to make 50 per cent., clear of all charges; others, 75 per cent.; and the most sanguine, 100 per cent. Take the lowest, and a councillor's and a colonel's profit will be 7000_l._ sterling per annum; a lieutenant-colonel's and junior merchant's, 3000_l._; majors' and factors', 2000_l._ These advantages, and a free open trade, are in lieu of all presents from the natives, and all perquisites disadvantageous to the Company, and dishonourable to the servants." And in a letter[81] to Mr. Palk, the Governor of Madras, after mentioning the large allowance that the trade would give to the different sharers, he adds, "This extraordinary indulgence is in lieu of perquisites; for I intend the Governor and Council shall take a most solemn oath at the Mayor's Court, in presence of all the inhabitants, that they shall receive no perquisites whatever, or other advantages, excepting what arises from their trade; and to this shall be added a penalty-bond of a very very large sum of money. These articles, upon my arrival, were altogether in the hands of the Company's servants and free merchants, and only yielded to the Company 60,000_l._ per annum, and to the Nabob nothing, for they did not even pay the 2-1/2 per cent. duties. Neither will the method we are pursuing be attended with the least disadvantage to the inhabitants: the same hands who made and worked the salt are still employed at the same rates; and the salt in general will be sold at a much lower price than formerly. Formerly the salt was sold dear or cheap, according to the demand for that article; we shall endeavour to fix upon a price for every market, and always sell it for the same."