That it appears that the opium produced in Bengal and Bahar is a
considerable and lucrative article in the export trade of those
provinces; that the whole produce has been for many years monopolized
either by individuals or by the government; that the Court of Directors
of the East India Company, in consideration of the hardship imposed on
the native owners and cultivators of the lands, who were deprived of
their natural right of dealing with many competitors, and compelled to
sell the produce of their labor to a single monopolist, did authorize
the Governor-General and Council to give up that commodity as an article
of commerce.

That, while the said commodity continued to be a monopoly for the
benefit of government, and managed by a contractor, the contracts for
providing it were subject to the Company's fundamental regulation,
namely, to be put up to auction, and disposed of to the best bidder; and
that the Company particularly ordered that the commodity, when provided,
should be consigned to the Board of Trade, who were directed to dispose
thereof by public auction.

That in May, 1777, the said Warren Hastings granted to John Mackenzie a
contract for the provision of opium, to continue three years, and
without advertising for proposals. That this transaction was condemned
by the Court of Directors, notwithstanding a clause had been inserted in
that contract by which it was left open to the Court of Directors to
annul the same at the expiration of the first or second year.

That, about the end of the year 1780, the said Warren Hastings, in
contradiction to the order above mentioned, did take away the sale of
the opium from the Board of Trade, though he disclaimed, at the same