Johan Joachim Michelsen began his career in the
Danish East India Company as chief assistant () in the Danish colony of
Tranquebar, being described as an old but thoughtful man. On 26 July 1702, Michelsen became
opperhoved of the Danish
factory of
Dannemarksnagore in
Bengal after the resignation of
Thomas Schmertz, with a monthly salary of 25
Danish rigsdaler.
Collaboration with Armenians Contract regarding Dronning Louise from 18 November 1703In 1703, he bought a ship from the
Compagnie des Indes named
Dronning Louise, together with a couple of
Armenian merchants. Michelsen wanted to restore the Danish trade and viewed the Armenians as likely partners, as the colony had economic difficulties. As a result, on 18 November 1703, a contract was made between the Danes and Armenians, in which
Dronning Louise would transport a whole Armenian cargo of mainly sugar worth 300,000
rupees for 5,920 rupees in return.
Dronning Louise was determined to depart from
Kulpi for
Bandar Abbas on 9 January 1704, and the Armenians blessed the ship and the coming voyage: However, in 1704, the ship ran aground during its voyage near
Palmyras Point in bad weather, making the Armenians lose half their cargo. Hereafter, the Armenians requested the
Mughal government to force the Danes to pay at least the 5,920 rupees back, which Michelsen, however, could not repay, as he had mainly bought the ship with the 's money without the approval of the Tranquebar's
Privy Council ('''').
Letter to Shah Soltan Hoseyn Consequently, Michelsen's debt grew, and with assistance from an Armenian, he subsequently sent a letter to the
Shah of Iran,
Soltan Hoseyn, requesting certain trading rights, which is mentioned in an anonymous
memorandum to
King Frederick IV of Denmark from between 1702 and May 1704: Soltan Hoseyn was very interested in establishing contact with King Frederick and, therefore, agreed to the request if the Danes aided Persia against
piracy in the Persian Gulf. Particularly, the Danes were to provide a manned
bomb vessel and
fire ship, for which expenses Soltan Hoseyn was willing to pay; nevertheless, despite aid being easily provideable, this proposal could not improve the Company's economy.
Contract regarding Printz Jørgen Afterwards, another contract was reached between the Danes and two Armenians on 19 May 1705 following some negotiations, in which the vessel
Printz Jørgen was to transport an Armenian cargo worth 8,000
pagodas from Dannemarksnagore to Bandar Abbas. Although the ship reached Tranquebar in the fall of 1705, it had almost no cargo in return. Similarly, in the fall of 1704, the
Gyldenløve was sent from Dannemarksnagore to Tranquebar without cargo, which spread rumors that the ship was forced to use a
ballast tank, instead of regular cargo, to stabilize itself. These incidents damaged the Company's reputation, which was mockingly said to have a "water trade" by other European companies in Bengal. Accordingly, Michelsen is referred to as having acted arbitrarily, with Indian historian Lalit Mohan Mitra calling him incompetent and claiming he did little to further Danish trade in Dannemarksnagore. Meanwhile, Danish colonial historian
Kay Larsen says he was unlucky, highlighting ''Dronning Louise's'' grounding. == Accounts and debt ==