London Company facts for kids
The 1606 grants by King James I to the London and Plymouth companies. The yellow area was given to both. Jamestown is marked "J."
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Trade name
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London Company |
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| Part of the Virginia Company | |
| Industry | Shipping, trade |
| Fate | Ended |
| Founded | (10 April 1606) in Westminster, England |
| Founder | King James I |
| Defunct | 24 May 1624 |
| Headquarters |
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England
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Area served
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Virginia |
| Products | Cash crops, wood, tobacco |
The London Company, officially called the Virginia Company of London, was a group that helped start English colonies on the east coast of North America. They were in charge of the area between 34° and 41° North.
Contents
History of the London Company
The London Company was given land along the eastern coast of North America. This land stretched from Cape Fear in the south up to Long Island Sound in the north. They were allowed to build a settlement of about 100 square miles (259 km²) in this area. Part of their territory was also shared with another group called the Plymouth Company. The rule was that neither company could build a colony within 100 miles (161 km) of the other.
The London Company's ships landed on April 26, 1607, at the mouth of the Chesapeake Bay. They named this spot Cape Henry. They soon decided to move and, on May 4, 1607, they built the Jamestown Settlement on the James River. This spot was about 40 miles (64 km) upstream from the bay.
Later in 1607, the Plymouth Company started its Popham Colony in what is now Maine. But this colony was left after only about a year. By 1609, the Plymouth Company had closed down. Because of this, the London Company received a new grant. This new grant gave them control of the land "from sea to sea" in the area they used to share. In 1612, their land also grew to include the Somers Isles (or Bermuda).
The London Company had money problems, especially because they didn't have enough workers in their Virginia colony. Their profits got better after 1612. This was when they started growing sweeter kinds of tobacco that were popular in England. Tobacco became a very important cash crop for them. By 1619, a system called indentured service was fully used in the colony. In this system, people worked for a certain number of years to pay for their trip to America. In 1624, the company lost its special permission from the king, and Virginia became a royal colony, meaning it was directly controlled by the king.
How the Company Started
In England during the Renaissance, rich business people wanted to find ways to make more money. So, they created several companies to trade with different parts of the world. Each company had investors, called "adventurers," who bought parts of the company. The king gave each company a special paper, called a charter. This charter gave them the only right to explore, settle, or trade in a certain area. Any money made was shared among the investors based on how much they had put in.
More than 6,300 English people invested in these companies between 1585 and 1630. These companies traded in places like Russia, Turkey, Africa, and North America.
Investors in the Virginia Company hoped to make money from the natural resources of the New World. In 1606, Captain Bartholomew Gosnold got King James I to give a charter for two companies. The first was the Virginia Company of London, often called the "London Company." This company covered what is now Maryland, Virginia, and Carolina.
The second company was the Plymouth Company. It was allowed to settle land that is now Pennsylvania, New Jersey, New York, and New England.
The London Company paid for everything needed to start each colony. In return, they owned all the land and resources there. All settlers had to work for the company. The first leader of the Virginia Company in England was Sir Thomas Smythe. He helped get the 1609 charter.
To get people interested, the company spread information through pamphlets and plays. Almost 1,700 people bought shares in the company. These investors came from different jobs and social classes. Even wealthy women and groups like trade guilds bought shares. The money from these sales helped pay for ships, supplies, and workers for the new settlements. One share in the Virginia Company cost 12 pounds and 10 shillings. This was more than six months' pay for a regular worker.
The biggest investor was Lord De la Warre. He became the first governor of Virginia from 1610 to 1618. The Delaware River and the Lenape Native American tribe were named after him.
The company's main goal was to settle the Virginia colony. They used a system called indentured servitude. In this system, workers agreed to work for the company for seven years. In return, the company paid for their trip, gave them food and protection, and promised them land if they survived.
The First Expedition
In December 1606, the Virginia Company's three ships left Blackwall, London. They carried 105 men and boys, plus 39 crew members. They landed on April 26, 1607, at the mouth of the James River on the Chesapeake Bay. They named this shore Cape Henry. Native Americans attacked them, so the settlers moved north. On May 14, 1607, they chose Jamestown Island as the place to build their fort.
The early colonists were expected to make money for the Virginia Company. They hoped to find gold and gems, but they soon realized there were other valuable resources. They started industries like making glass, producing tar for ships, and brewing beer and wine. They also thought the huge supply of timber (wood) would be very important, as England's forests were running out. However, the settlers were too busy trying to survive to spend much time making products to send back to England.
Inside their fort, the settlers quickly learned they were employees of the Virginia Company. They had to follow the rules of the men the company chose to lead them. In return, the workers received weapons, clothes, and food. After seven years, they were supposed to get their own land. The gentlemen, who brought their own armor and weapons, would be paid with land, profits, or more shares in the company.
At first, the colony was led by a president and a seven-member council chosen by the King. But leadership problems quickly started. The first two leaders struggled with sickness, Native American attacks, and not enough food or water. Many colonists were not ready for life in a new settlement. When Captain John Smith became the third president, he proved to be the strong leader the colony needed. Industries grew, and relations with Chief Powhatan's people got better.
New Instructions for Colonization
After many failed attempts to start colonies in the 1500s, King James became king of England in 1603. He wanted to try again, but this time using joint-stock companies. This meant the king's own money was not at risk. So, for the king, it was a low-risk plan. The companies wanted to make money, and the king also wanted to compete with other countries and spread his religion. The people who traveled to the New World hoped to improve their lives.
King James gave a special document, called a patent, to a group of investors. This document had very detailed instructions. It told Christopher Newport, captain of the Susan Constant, and Bartholomew Gosnold, captain of the Godspeed, what to do when they reached the land they named Virginia.
The Charter of 1606
The First Virginia Charter set up rules for how the colony would be governed. It was supposed to be run by a colonial council, but this didn't work well. So, a governor, Lord De La Warr, was sent in 1610 to lead the colony more firmly. The council in London, which Lord De La Warr represented, was made up of knights, gentlemen, and merchants who had invested in the company. This charter also limited the London Company's land to 100 miles from the coast and between 38 and 45 degrees north latitude.
The Charter of 1609
In 1609, the Virginia Company received its Second Charter. This new charter allowed the company to choose its own governor from its investors. More people invested in the company as it tried hard to get new settlers. Over 600 colonists sailed for Virginia between March 1608 and March 1609.
Sir Thomas Gates, Virginia's deputy governor, was on his way to the colony aboard the Sea Venture. But his ship was wrecked in Bermuda. The admiral of the company, Sir George Somers, Captain Newport, and 147 other settlers and sailors were also shipwrecked. When Gates finally arrived in Jamestown in 1610, he found that only 60 of the original 214 colonists had survived the terrible "Starving Time" of 1609–1610. Most of them were dying or sick. Even with the food Gates brought from Bermuda, it was clear the colony could not survive on its own.
The survivors of Jamestown got on Gates's ships, and the colony was left empty. Gates planned to take everyone back to England. But then another fleet arrived, bringing Governor Lord De la Warre. This saved Jamestown. All the settlers were put back ashore. Sir George Somers went back to Bermuda to get more food, but he died there.
The Charter of 1612
The third Virginia Charter, or Charter of 1612, was mostly like the 1609 charter. The main difference was that it expanded the company's land to include islands in the Atlantic, like Bermuda, and stretched "from sea to sea."
A writer named John Chamberlain wrote in a letter in 1612: "There is a lottery in hand for the furthering of the Virginia voyage, and a company erecting for the trade of the Bermudas, which have changed their name twice within this month, being first christened Virginiola as a member of that plantation, but now lastly resolved to be called Sommer Islands, as well in respect of the continual temperate air, as in remembrance of Sir George Sommers that died there."
This means that Bermuda was first called "Virginiola" because it was part of the Virginia colony. But then it was named "Sommer Islands" to honor Sir George Somers, who died there, and because of its mild weather.
In 1615, the control of the Somers Isles (Bermuda) was given to a new company called the Somers Isles Company. This company managed Bermuda until it lost its royal charter in 1684. Bermuda stayed closely connected to Virginia.
The "Great Charter"
This was an important set of rules given in 1618 to the governor and the Council of Virginia. It was officially called An Ordinance and Constitution of the Virginia Company in England. This document changed military law to common law and allowed settlers in the colony to own land. It was also very important because it gave the colony some independence from the King. An assembly was held in a church with Governor Sir George Yeardley and 22 chosen men representing seven regions. They formed a law-making body, which was a key step toward self-governance in American history.
End of the Company
After 1620, there was a growing demand for tobacco in Europe. The company planned to sell Virginia tobacco in the Netherlands. But in 1621, the King's council said that no product from Virginia could be sent to a foreign country until it had first landed in England and English taxes were paid. By 1621, the company was in trouble. They hadn't paid profits to investors, and people were wary of investing more. The company owed over £9,000.
In March 1622, the company's situation became much worse. During the Indian massacre of 1622, the Powhatan people killed about one-quarter of the European population in the Virginia colony.
The King and company officials suggested a fourth charter that would greatly reduce the company's power in Virginia. But the investors refused it. So, in 1624, King James I took control of Virginia. It became a royal colony managed by a governor chosen by the King. However, the government's rules about trade did not change. The King approved the election of a Virginia Assembly in 1627. This type of government, with a governor and an assembly, would lead the colony of Virginia until 1776.
Bermuda had been separated from the Virginia Company in 1614. In 1615, the Virginia Company's investors created a new company, the Somers Isles Company, which continued to run Bermuda. Bermuda was also known as The Somers Isles until it was dissolved in 1684 and became a royal colony.
Native American Relationships
The instructions given to Sir Thomas Gates in 1608 said that Native Americans should be forced to become Anglican Christians and follow the colonial government. The company's records show they discussed whether to publish a defense of their business methods. They worried that others might question if their colonization was lawful. They decided not to publish such a defense.
In 1609, the company told settlers to kidnap Native American children. The goal was to teach them English values and religion. These instructions also allowed attacks on the Iniocasoockes, who were important leaders among the local Powhatans. Only after Thomas West, 3rd Baron De La Warr arrived in 1610 could the company start a war against the Powhatan. This was called the First Anglo-Powhatan War. Lord De La Warr was replaced by Sir Thomas Dale, who continued the war. The fighting stopped with a truce when Pocahontas married John Rolfe in 1614.
The military attacks were also supported by propaganda. Alderman Robert Johnson published a pamphlet in 1609 that compared Native Americans to wild animals. While it said the Powhatan were peaceful, it also threatened to treat anyone who resisted becoming Anglican as enemies.
The company started making a profit after 1612. This was when they began growing new kinds of tobacco that English people liked more than the native tobacco. Tobacco became the main crop of the colony, and settlers were encouraged to grow more. The colony struggled with not having enough workers because many people died.
In 1622, the Second Anglo-Powhatan War broke out. Some say Opchanacanough started the war. Others say he attacked to stop the colony before more English settlers arrived. On April 18, 1622, the Powhatan killed 350 of 1,240 colonists and destroyed some settlements. The Virginia Company quickly published a report about this attack. They said the massacre was a reason to destroy the Powhatan people and build English settlements on their old towns. New orders from the London Company called for a "perpetual war without peace or truce" to "root out" the Powhatan. Within two years, the King took over the territory in 1624, making it a royal colony.
See also
- List of trading companies
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