This Report being founded on certain documents which were confidentially placed in my hands, I consider that this Report should be confidential also.
(Signed) A. E.
Admiralty, 16 June, 1848.
In compliance with the instructions of the Lords Commissioners of the Admiralty, contained in their minute of the 30th ultimo, “To ascertain whether the profit of the voyages between Southampton, Malta, and Alexandria, have been such as would provide a dividend of 10 per cent. per annum on the capital, after the ordinary deductions of wear and tear, and sea risk of vessels,—if the directors had not thought fit to invest a portion of their profits in the extension of the stock, by the purchase of additional vessels:”
“Also to endeavour to institute a comparison between the expenses of carrying on the mail services by the company, and those which are incurred by her Majesty’s naval service in similar duties:”—Application was made to the directors of the Peninsular and Oriental Company to furnish a copy of the balance-sheet for the last half year, ending the 1st March, 1848, together with such other documents as would serve to explain the various items contained in it. These being furnished, the readiest access was afforded to the ledger and other books of the company, for their verification.
As these accounts are kept so as to include all the operations of the company, without distinguishing the profits on the different branches, it became necessary, in order to carry out the spirit of their Lordship’s instructions, to inquire into the state of the company’s affairs generally; and to conduct this inquiry in such a way as to arrive at a satisfactory conclusion on the following points:—
1. Whether the postal duties performed by the Peninsular and Oriental Steam Company are proportionate to the amount paid for those duties.
2. Whether such duties can, with advantage, be transferred from the contract steam vessels to those of her Majesty’s navy.