The contest between the two East India Companies was, during the autumn of 1693, fiercer than ever.  The House of Commons, finding the Old Company obstinately averse to all compromise, had, a little before the close of the late session, requested the King to give the three years’ warning prescribed by the Charter.  Child and his fellows now began to be seriously alarmed.  They expected every day to receive the dreaded notice.  Nay, they were not sure that their exclusive privilege might not be taken away without any notice at all; for they found that they had, by inadvertently omitting to pay the tax lately imposed on their stock at the precise time fixed by law, forfeited their Charter; and, though it would, in ordinary circumstances, have been thought cruel in the government to take advantage of such a slip, the public was not inclined to allow the Old Company any thing more than the strict letter of the bond.  Every thing was lost if the Charter were not renewed before the meeting of Parliament.  There can be little doubt that the proceedings of the corporation were still really directed by Child.  But he had, it should seem, perceived that his unpopularity had injuriously affected the interests which were under his care, and therefore did not obtrude himself on the public notice.  His place was ostensibly filled by his near kinsman Sir Thomas Cook, one of the greatest merchants of London, and Member of Parliament for the borough of Colchester.  The Directors placed at Cook’s absolute disposal all the immense wealth which lay in their treasury; and in a short time near a hundred thousand pounds were expended in corruption on a gigantic scale.  In what proportions this enormous sum was distributed among the great men at Whitehall, and how much of it was embezzled by intermediate agents, is still a mystery.  We know with certainty however that thousands went to Seymour and thousands to Caermarthen.

The effect of these bribes was that the Attorney General received orders to draw up a charter regranting the old privileges to the old Company.  No minister, however, could, after what had passed in Parliament, venture to advise the Crown to renew the monopoly without conditions.  The Directors were sensible that they had no choice, and reluctantly consented to accept the new Charter on terms substantially the same with those which the House of Commons had sanctioned.

It is probable that, two years earlier, such a compromise would have quieted the feud which distracted the City.  But a long conflict, in which satire and calumny had not been spared, had heated the minds of men.  The cry of Dowgate against Leadenhall Street was louder than ever.  Caveats were entered; petitions were signed; and in those petitions a doctrine which had hitherto been studiously kept in the background was boldly affirmed.  While it was doubtful on which side the royal prerogative would be used, that prerogative had not been questioned.  But as soon as it appeared that the Old Company was likely to obtain a regrant of the monopoly under the Great Seal, the New Company began to assert with vehemence that no monopoly could be created except by Act of Parliament.  The Privy Council, over which Caermarthen presided, after hearing the matter fully argued by counsel on both sides, decided in favour of the Old Company, and ordered the Charter to be sealed.467