The plan, after due examination, was considered to embrace advantages to the public far exceeding what the then existing arrangements afforded; and its adoption was consequently intimated to the authors and proposers of it; but, at the same time, they were informed that the execution of it would be put up to public competition.
Accordingly, an advertisement was soon afterwards issued, inviting tenders, from owners of steam vessels, for conveying the Mails between Falmouth and the Peninsula, in conformity with the plan submitted by the Peninsular Company; and the Contract for the Service was competed for against that Company by the proprietors of some steam vessels, who, under the designation of the British and Foreign Steam Navigation Company, had a short time previously commenced running two small steamers to the Peninsula, in opposition to the Peninsular Company’s vessels.
This British and Foreign Company, not being able to satisfy the Admiralty that they had the means of performing the proposed Service, their tender was rejected. Upon which they addressed the Admiralty, and requested that the Contract might be postponed, alleging, that if a month more were given to them, they could provide sufficient vessels. Their request was granted; and, contrary to all previous practice, after the tender of the Peninsular Company had been given in, and the amount of it, in all probability, known to their competitors, the Contract was again advertised, and a month more given for receiving tenders.
The British and Foreign Company again failed to show that they had any adequate means of performing the Service; and a private negotiation was then entered into by the Government, with the Peninsular Company, with a view to reduce the sum required by them. This sum was £30,000 per annum, being about £5,000 less than the estimated annual cost to the public of the sailing packets and steam packet previously employed in conveying the Mails. This sum was ultimately reduced to £29,600,[2] on which terms the Contract was concluded on the 22nd August, 1837, and may be considered to have formed the basis upon which one of the most extensive and successful steam enterprises yet known has been established.
These facts, it is submitted, abundantly show, that so far from any favour being shown, in regard to this Contract, to the originators of this Company, they obtained it in the face of adverse circumstances, and solely because they had, by their own enterprise, placed themselves in a position to effect an important public improvement, combined with a reduction of the public expenditure.