So far, therefore, as the affairs of the company have hitherto proceeded, the amount paid to them under the contract would not appear to have exceeded a reasonable remuneration for the services performed, on the principles before stated.
Second: The comparative advantages which might result from the employment of her Majesty’s vessels, instead of contract vessels, for the performance of those duties, appears to be a question of somewhat difficult solution.
The present mode of keeping the accounts of the navy, and the commixture of expenditure for the steam and other departments in the dockyards and public offices, must render it exceedingly difficult to ascertain the cost of any separate branch of service.
Supposing, however, that the financial comparison could be made, yet there are many other important elements in the consideration of the subject.
For the rapid and secure performance of the public mail duty, no branch of the mercantile marine is so well prepared as her Majesty’s naval department. But by the employment of her Majesty’s vessels, light merchandise could not be conveyed; the habits and comforts of the passengers could never be so well provided for as by persons paid for such duties; and as regards the troublesome details of carrying passengers, freight, and merchandise, the war steamer must be less adapted than the merchant vessel.
It must be recollected, also, that a sufficient number of vessels must be fitted up, equipped, provisioned, stored, and specially and exclusively adapted to and employed upon this service; and that fresh arrangements, depôts, and agencies along the lines of route would be required; the preparation for such services would therefore be necessarily attended with an expense which years of any probable saving could scarcely defray.
Third: The question then arises whether, in the continued employment of the Peninsular and Oriental Steam Company’s vessels, considering the actual condition and the established profits and credit of the company, owing in some measure to the existing contract, some modification of the terms, for the advantage of the public, may not be fairly expected.
With a view to the consideration of this question, the following facts are submitted.
The general transactions of the last half-year, the best period for judging clearly the present operation of the company, furnish the following points:
| £ | s. | d. | |
|---|---|---|---|
| The gross profits, after deducting 2½ per cent. formanagement, and 5 per cent. for repairs, and 2½ percent. for insurance, amount to | 62,629 | 11 | 2 |
| From which is deducted 2½ per cent, for depreciation | 16,915 | 0 | 0 |
| ——————— | |||
| £45,714 | 11 | 2 | |
| ——————— | |||