Virginia Company - The London Company

The London Company

By the terms of the charter, the London Company was permitted to establish a colony of 100 miles square between the 34th parallel and the 41st parallel (approximately between Cape Fear and Long Island Sound), and also owned a large portion of Atlantic Ocean and inland Canada.

On 14 May 1607, the London Company established the Jamestown Settlement about 40 miles inland along the James River, a major tributary of the Chesapeake Bay in present-day Virginia. The future of the settlement at Jamestown was precarious for its first 5 years. The president of the third Jamestown Council, Captain John Smith, was both a strong leader and a good diplomat who was able to form a positive relationship with the Native Americans.

In 1620 George Calvert asked King James I for a charter for English Catholics to add the territory of the Plymouth Company. Also in 1609, a much larger Third Supply mission was organised. Rushed into service without the customary sea trials, the new purpose-built ship, the Sea Venture, became flagship of the fleet of 9 ships, with most of the leaders, food, and supplies aboard. Notable persons aboard the Sea Venture included the Admiral of the fleet, George Somers, Vice-Admiral Christopher Newport, the new governor for the Virginia Colony, Sir Thomas Gates, future author William Strachey, and businessman John Rolfe with his pregnant wife.

The Third Supply convoy encountered a massive storm believed to have been a hurricane which lasted three days and separated them. The Sea Venture was leaking sea water through its new caulking, and Admiral George Somers had it driven aground on a reef to avoid sinking, saving 150 men and women, and several dogs, but destroying their ship.

The uninhabited archipelago was officially named "The Somers Isles" after Admiral Somers, though it was known as Bermuda. From salvaged parts of the Sea Venture, the survivors built two smaller vessels, Deliverance and Patience. Ten months later they continued on to Jamestown, leaving several men behind on the archipelago to establish possession of it. Arriving at Jamestown on 23 May 1610, they find that over 80% of the 600 colonists had perished during what became known as the "starving time". The Bermuda survivors had anticipated finding a thriving colony at Jamestown and had brought little food or supplies with them. The colonists at Jamestown were saved only by the timely arrival of a supply mission headed by Thomas West, 3rd Baron De La Warr, better known as "Lord Delaware", less than 3 weeks later.

In 1612, The London Company's Royal Charter was officially extended to include The Somers Isles as part of the Virginia Colony. However, in 1615, the isles passed to a separate company, the Somers Isles Company, which had been formed by the same shareholders as the London Company.

To the disappointment of its investors, the Virginia Company of London failed to discover gold or silver in Virginia. However, the company did establish trade of various types. The biggest trade breakthrough came when colonist John Rolfe introduced several sweeter strains of tobacco from the Caribbean (rather than the harsh-tasting kind native to Virginia). Rolfe's new tobacco strains led to a strong export for the London Company and other early English colonies, and helped balance a trade deficit with Spain.

The Jamestown Massacre which devastated that colony in 1622 brought on unfavorable attention, particularly from King James I who had originally chartered the Company. There was a period of debate in Britain between Company officers who wished to guard the original charter, and those who wished the Company ended. In 1624, the King dissolved the Company and made Virginia a royal colony.