[Sidenote: British territory and fortress at Madras, 1639.]
§3. In 1639 a British merchant named Day bought a strip of territory on the Coromandel coast, about 300 miles to the south of Masulipatam. It was within the dominions of a Hindu Raja, and was about six miles long and one mile inland. It included a small island, which faced the sea and was defended on the land side by a river. Mr. Day agreed to pay the Raja a rent of 500_l._ a year in native coin known as pagodas, and the transaction was duly engraved on a plate of gold. A factory of brick was built upon the island, and mounted with cannon, and called Fort St. George. The Raja was perfectly content. He was too glad to get a rent of 500_l._ a year to raise any difficulty as regards fortifications or cannon.
[Sidenote: Fort St. George and Black Town.]
This factory was the germ of the city of Madras, on the coast of Coromandel. Weavers, washers, painters, and hosts of other Hindu artisans, flocked to the spot and eagerly entered the service of the British, and began to set up their looms and to weave, wash, and paint their cotton goods in the open air beneath the trees. Villages of little huts of mud and bamboo soon grew up on the sandy soil to the north of the island and factory. Each avocation formed a caste, which generally had its own quarters and its own headman. In this manner a Hindu settlement grew up by the side of Fort St. George and was known as Black Town; and the whole locality, including Fort St. George and Black Town, was called Madras, and was the first territory acquired by the East India Company in India.
The transition of the British traders from a factory under Mohammedan control to an independent settlement of their own must have been a grateful change. The President and Council at Fort St. George were _de facto_ rulers of the whole settlement, native as well as European, with all the powers of despotic princes and with no interference from without. They acted as a supreme court of judicature for Englishmen in all cases civil and criminal; no Englishman, however, could be condemned to death unless convicted of piracy, which was regarded as the most heinous of crimes. On all other capital charges the Englishman was sent to England for trial.[2]