'History of the Indian Navy. (1613-1863).' [‎543] (562/622)

HISTORY OF THE INDIAN NAVY.
543
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offieer-who, on the 31st of October, 1835, had the proud
satisfaction of being the first to unfurl the flag of his
country on the classic waters of the Indus from the deck
of a steamer—was so successful in his management that, in
1870, a year before his death, he had under his orders, in the
bighest state of efficiency, a fleet of steamers earning for their
owners a net profit of .£22,673 l(k for the first six months of
that year, a success attributable entirely to his able and ener
getic management, and unsurpassed by any guaranteed under-
taking in India.
At this time, also, the Dockyard establishment was reduced
one'third, and it became known that the Service was doomed,
the chief question at issue between the Indian and Home
Governments being as to the scale of pensions to be awarded
to the officers. The Secretar}^ of State for India objected to those
recommended by the Indian Government; but Lord Canning
pleaded for justice, if not liberality, to gentlemen who were
entitled by the Act of Parliament of the 2nd of August, 1858,
to remain under the existing terms of their covenants.
The following clauses of this Act, by which Her Majesty as
sumed the direct Government of India, entitled, " An Act for the
better Government of India," more especially guaranteed them
this right :—"LVI. The Military and Naval Forces of the East
India Company shall be deemed to be the Indian Military and
Naval Forces of Her Majesty, and shall be under the same obli
gations to serve Her Majesty as they would have been under to
serve the said Company, and shall be liable to serve within the
same territorial limits only, for the same terms only, and be
entitled to the like pay, pensions, allowances, and privileges,
and the like advantages as regards promotion and otherwise, as
if they had continued in the service of the said Company.
Such forces, and all persons hereafter enlisting in or entering
the same, shall continue and be subject to all Acts of Parlia
ment, Laws of the Governor-General of India in Council, and
Articles of War, and all other laws, regulations, and provisions
relating to the East India Company's Military and Naval
Forces respectively, as if Her Majesty's Indian Military and
Naval Forces respectively had throughout such acts, laws,
articles, regulations, and provisions been mentioned or referred
to, instead of such Forces of the said Company; and the pay
and expenses of, and incident to. Her Majesty's Indian Military
and Naval Forces, shall be defrayed out of the revenues of
India." "LVIII. All persons who at the time of the com
mencement of this Act shall hold any offices, employments, or
commissions whatever under the said Company in India shall
thenceforth be deemed to hold such offices, employments, and
commissions under Her Majesty as if they had been appointed
under this Act, and shall be paid out of the revenue of India;