I saw to-day a case in point as regards accidental expenses. The splendid steamship Adriatic sailed at 12. The wind was very high from the south, and almost blowing a gale. She was lying on the southern side of the dock, while the Atlantic was lying with her stern at the end of the dock, near where the Adriatic had to pass in going out. At the moment of starting, three strong tow-boats were attached to her bow, and endeavored as she went out to draw her head against the wind, down stream. But they proved insufficient to the task. The vessel crushed down the corner of the dock, ran into the Atlantic, and carried away her stern bulwarks, crushed one of her own large and costly iron life-boats, and damaged one of her wheel-houses. Now, who of the two hundred thousand spectators that lined the docks, would pay the two thousand dollars for the life-boat, a thousand for repairing the dock and vessels, and the bill for the three tug-boats for two hours each?
Moreover, we see a pilot get on the steamer at New-York, another at Southampton, and a third at Havre; but we seldom reflect that the steamer has to pay a large price to each one of them, both going and coming. Take the coasting steamers, running between New-York and Savannah, or Charleston. It appears singular that the New-York pilot goes all the way to Savannah, that the Savannah pilot comes all the way to New-York, and that the steamer pays for both of these men all the time, and feeds them on board all of the time. Yet it is so. Such is the law; and it amounts to a good many thousands during the year. And all this, the company must pay, as a part of those items which take cash, but for which the company never gets any credit from the public or the Government. Whenever a little accident occurs to the steamer, it must be towed a few miles at a high price by a tug-boat. Whenever the Government or friends and visitors come on board, they expect to be liberally entertained; yet the company must pay for it, or be considered mean and unworthy of the Government's patronage. Each ship must have an experienced surgeon, whose wages must be paid like those of other persons employed, and an apothecary's room and outfit. The ship must be painted and varnished, and overhauled at every trip; the upholstering and furnishing must be often renewed; stolen articles must be replaced; and the breakages of table-wares constantly renewed. All of this costs cash.
The steamer also has to pay light dues and port charges wherever she goes. Many of these are exorbitant and unreasonable. In Havre the "Fulton" and "Arago" must pay nearly twenty-four hundred dollars each on every departure, or they will not be permitted to leave the docks. This is no small item for each steamer on every passage that she makes. At New-York she pays wharfage again. It is not so high, but it is a large item, and requires the cash. Again, there is the great shore establishment which every steam company must maintain. Large docks, and warehouses, and coaling arrangements, staging, watchmen, porters, and messengers, and a shore-captain equal to those on board, must all be maintained. The Havre Company pays to the city $4,000 per year for its dock, $1,200 for its annual repairs, and also for sheds, fixtures, etc., extra. They keep also two watchmen at $40 each per month, and other persons in the dock service. The Collins Company have a necessarily very costly dock both in New-York and Liverpool. That in New-York would rent for $15,000 per annum. The one in Liverpool is far more costly. On each they keep a large number of men, with watchmen, gatekeepers, runners, porters, and clerks, and always keep an office open. Beside this, is the whole paraphernalia of the office of the company. There must be offices, clerks, bookkeepers, porters, runners, etc.; a president, treasurer, and secretary; an attorney, agents, and agencies; and newspaper advertising, and a hundred little things which no man can mention. I do not pretend to be able to give an adequate conception of the innumerable items which so swell the large actual working expenses of regularly running steamers. Even the charities of a decently managed company are large. Firemen and engineers become disabled and must be supported; or they are killed in the service of the ship, leaving families which no decent company can disregard. The amount which the West-India Royal Mail Company pays in this way, and which our noble American lines advance to the deserving, are beyond all conception of the mere theorist.
There is another source of loss which prevents, mail packets especially, from paying their expenses on their freight and passenger earnings. The table on all of our steamships has become exceedingly expensive, as it has in our hotels. Perhaps there is more necessity for it on steamers than in the hotels, as passengers are generally sea-sick, and need every delicacy of life to keep them up. The supplies which our fine mail packets carry for this purpose are of almost incredible extent and costliness. No vegetable, fruit, game, or other rarity that can be kept fifteen days in large masses of ice, is neglected; so that the table of every steamer is necessarily both luxurious and expensive. Indeed, it has become so much so, and the price of passage fare has been reduced so low on all of the prominent lines, that as a general rule the steamers are not now making much clear money on their passengers. The expense of keeping passengers was not half so great six years ago, as it is now; and there appears to be no safe means of permanent retrenchment. Nothing has been said of Insurance. This is a most costly item. The Havre Company pay on their two ships, which are worth about $900,000, nine and a half per cent. per annum; and Mr. Collins pays on his three ships, which are worth about $2,200,000, nine per cent. per annum. On the Havre steamers this amounts to $85,500 per year, which is nearly as much as the mail pay; and on the Collins, to $198,000 per annum. And these are among what we call the items of mail steamship expenditure. I do not know the sums paid by the United States Mail, or by the Pacific Mail Companies.
I will here give the views of Messrs. Murray and Atherton on the cost of steam, as they replied to letters of inquiry, which I addressed them Sept. 14, 1857. Mr. Murray says in answer to
Query 2. "It is certainly my impression that ocean steamers of sufficient speed to carry the mails with any thing like regularity, will not pay upon any route with which I am acquainted, without assistance from Government."
Query 5: Can Parliament do better in economy than in her present mail contracts, all things considered? Mr. Murray replies:
"I do not see how Parliament can avoid paying the large subsidies she does for the mail contracts under present circumstances."
Query 4: Is the steamship stock of Great Britain, subsidized or unsubsidized, paying stock, and is there much disposition among capitalists to invest, even in the stock of subsidized companies? He replies:
"I do not think the steamship stock of Great Britain to be in a very nourishing condition: in fact, I know of only one company (the Peninsular and Oriental) in which I should like to invest money."