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 The Nabob was surprisingly astonished at the Resolution and Bravery of the young Gentleman, and sat down to consider a little, Mr. Horden keeping the Muzzle of his Piece still at his Breast, and one of the Nabob's Servants standing all the while beliind Mr. Horden with a Dagger's Point close to his Back. So they had a Conference of half an Hour long, in those above mentioned Postures, and then the Nabob thought fit to be gone again, full of wonder and Admiration of so daring a Courage.'

At this time the Company were paying the Musalman government Rs. 4,862 annually for the town and the other villages rented from them and received in return the privileges of making and selling- salt, arrack, betel- leaf, tobacco and other commodities, and the right to collect land and sea customs. The small factory at Injaram, on the Gódávari coast, was subordinate to Vizagapatam, and the Second in Council at one time resided there. The records of the next few years are full of accounts of the fighting between the Faujdar (now Habid Khán, Fakír-ulláh's rival) and the local Rájas here and in Ganjám. In 1712 Ananda Rázu of Vizianagram with 10,000 men was actually plundering and destroying without hindrance within sight of Chicacole. These constant alarms not only prevented the reduction of the garrison collected to repulse Fakír-ulláh, but on the contrary led to its increase and to the construction of more defences. No plan of these survives, but the records speak of the flagstaff, southern and western bastions, northern point, and curtain facing the river (all of which were built of stone), the eastern curtain facing the sea, the fort gate and mainguard, and the back gate. By 1726 the garrison numbered 85 men, and outworks (see the map facing p. 44) had been built to protect the native town. In 1729 further disturbances resulted in the despatch from Madras of a sergeant and some more guns.

In 1727 the first move was made towards Waltair, which had long been included in the cowles, the cloth-washers and their families being established there in consequence of the discovery of 'a vein of very good water which cured and whitened cloth much better than the washermen's tanks formerly made use of.' In 1731 (and again in 1753) the question of the desirability of coining copper dubs at Vizagapatam was raised, but the See Lascar refused the necessary permission and no mint appears to have been established. In 1739 a building to the west of the fort was bought as a 'Garden House' for the reception of guests. It was irretrievably damaged by the great flood of 1752. Frequent references also occur throughout the early records to