On the 4th of July, 1839, the British Government entered into a contract with Samuel Cunard of Halifax for a semi-monthly mail line between Liverpool, and Halifax, and Boston, at the sum of £60,000 or $300,000 per annum. That contract inaugurated a new era in our American commerce with the old world, and gave an impulse to those international interests and those commercial amities which have bound Great Britain and the United States in the bonds of enduring friendship and mutual, neighborly dependence. Boston soon proved inadequate to the support of the entire line, and half of the steamers were sent to New-York; and thus they continue to run to this day. It is a singular fact that since that contract was made, eighteen years ago, there has never been one transatlantic steamer except those of Mr. Cunard running to or from that port. This contract was renewed with Mr. Cunard in 1850, when weekly trips were required for the greater portion of the year, and the subsidy was advanced, not in the ratio of the service, which was only doubled, but as three to one, from £60,000 to £173,340, or from $300,000 to $866,700. The experience of twelve years had demonstrated both the necessity of continuing the line, and of increasing the subsidy which the Government paid, to such a sum as would secure good steamers, regularity of trips, and efficiency of service. The Company now has nine steamers, with 18,406 tons aggregate tonnage, and 6,418 horses' power. The contract, which is to continue for twelve years, until 1862, was so altered in 1852 as to provide for a weekly service as well in winter as in summer; and it will continue in force from 1862 until twelve months after notice may be given for the discontinuance of the line. The compensation for the same is at the rate of 11s 41/2d per mile. Lord Canning's Report to Parliament in 1853, before noticed, in particularizing on this line, said:
"An additional allowance, within certain limits, is to be made to the contractors in the event of an increase in the rate of insurance on steam vessels, or in the freight or insurance of coals, as compared with the rates payable at the date of the contract, if proved to the satisfaction of the Lords Commissioners of the Admiralty."
Thus, instead of abandoning this line after an experiment of twelve years, and finding that it could never be self-supporting, the British Government wisely determined to let their policy produce its full fruits, and continued it for another similar term of years, with three times the former subsidy, for only twice the old service. (See Collins and Cunard Lines, [Sec. X].)
A contract was made in 1840 for steam to Malta, Corfu, and Alexandria, and the service was extended in 1845 to Suez, Bombáy, Ceylón, Calcutta, Hong Kong, and Shanghae. It was renewed again in 1853, terminable in 1862, or after twelve months' notice, with a service between Sydney and Singapore, with the "Peninsular and Oriental Company;" and the subsidy for the whole service was increased from £199,600 or $998,000 per annum, to $1,224,000 per annum. The Company have thirty-nine vessels of 48,835 tons, and 12,850 horses' power, and run 796,637 annually, at 6s 13/4d per mile. The steamers run the whole service of 796,637 miles annually, at this low rate because much of the service is confined to the Mediterranean, as for example, their line from Southampton to Vigo, O Porto, Lisbon, Cadiz, and Gibraltar; and also that between Marseilles and Malta. This is but like the coasting trade at the utmost, and is not ocean navigation proper. Before the contract was renewed the same company got for the service between Hong Kong and Ceylon, 12s 7d per mile, and for that between Suez and Calcutta, £1, 0s 11/2d per mile.
The contract with the "West-India Royal Mail Packet Company" was made in 1840 for a semi-monthly service to the West-Indies, Central America, and Mexico, at £240,000, and for 547,296 nautical miles per annum. The contract was renewed on the same terms in 1846, and again in 1850, when the Brazil service was added, and the subsidy increased to £270,000 or $1,350,000 per annum, for twelve years, or until 1862, and one year after notice shall have been given. The length of the routes now run by the Company is 37,000 nautical miles, with thirty-four stopping places. The West-India service of 393,432 miles, is performed at the rate of 10s 101/2d per mile, under special contract; no advertisement ever having been made for tenders. The Brazilian portion of the service embraces 153,864 miles annually. Pay per mile for the whole Royal Mail service is 9s 10d per mile. This Company has twenty steamers, of 29,454 tons, and 9,308 horses' power. On the Brazil portion of the service the touches are at Lisbon, Madeira, Teneriffe, St. Vincent, Pernambuco, Bahia, Rio de Janiero, Monte Video, and Buenos Ayres. On the West-India division, St. Thomas is the central dépôt, after touching at the Azores. Ten branch lines radiate from St. Thomas to Antigua, Barbados, Blewfields, Carriacou, Carthagena, Aspinwall, (which they call Colon,) Demarára, Dominíca, Grenáda, Greytown, Gaudaloupe, Havanna, Honduras, Jacmel, Jamaica, Martinique, Porto Rico, St. Kitt's, St. Lucia, St. Vincent, Santa Martha, Tampíco, Tobago, Trinidad, and Vera Cruz. Lord Canning says:
"It is stipulated that if at any time, from causes recognized by the Lords of the Treasury as being of a 'distinctly public and national character,' the insurance on steam vessels shall rise above 6l 6s per cent., the freight of coals above 1l 2s 6d per ton, and the insurance on coals above 2l 2s per cent., the Company shall receive an additional sum, to be settled by arbitration, but not to exceed 75,000l a year in the whole."
The special contract for the West Coast of South-America, with the "Pacific Steam Navigation Company," for three round trips per month between Panama and Valparaiso, touching at Buenaventura, Guayaquil, Payta, Lambayeque, Huanchaco, Santa, Pisco, Islay, Aríca, Iquique, Cobija, Copiápo, Huasco, and Coquimbo, was made in 1845, at £20,000, or $100,000 per annum, for five years. It was renewed in 1850 for ten years; and hence, expires in 1860, if notice may be given to that effect; the trips being only semi-monthly, and the subsidy increased to £25,000 per annum. The Company has seven steamers, of 5,719 tons, and 2,396 horses' power. (See List of British Mail Lines, [Paper B], page 193.)
The contract for running fast packets between Holyhead and Kingston, in Ireland, was made in 1848 with the "City of Dublin Steam Packet Company," for £25,000 per annum, and is terminable at twelve months' notice after 1860. The line is run twice every day. The service to the Channel islands, from Southampton to Jersey and Guernsey, was established in 1848, at £4,000 per annum, for three trips per week. That of the West Coast of Africa was established in 1852, at £21,250 per annum. Leaving Plymouth, the steamers touch at Madeira, Teneriffe, Goree, Bathurst, Sierra Leone, Monrovia, Cape Coast Castle, Accra, Whydah, Badagry, Lagos, Bonny, Old Calabár, Cameroon, and Fernando Po. This contract was made with the "African Steamship Company," for a monthly service, and terminates in 1862 if twelve months' notice be given. There must be three steamers of 700 tons each, and the pay is, for 149,880 miles annually, at 2s 6d per mile. The contract with the "General Screw Steamshipping Company," for service semi-monthly from Plymouth to the Cape of Good Hope and Calcutta, touching on the return voyage at St. Vincent, Ascension, Cape of Good Hope, Mauritius, Point de Galle, Madrás, and St. Hélena, for £50,000 per year, to be reduced after two years to £40,000 annually, and that to the Cape of Good Hope and Port Natál, touching at Mossel and Algoa bays, Buffalo, and Port Francis, for £3,000 per annum, with the same Company, were both made in 1852; but the service was found impracticable on the terms, and was abandoned. That from Plymouth every two months to Sydney and New South Wales, with the "Australian Royal Mail Steam Navigation Co.," for £26,000 per annum, and touching at St. Vincent, Simon's Bay, or Table Bay, Cape of Good Hope, King George Sound, Port Philip, and St. Hélena, was made also in 1852; but was likewise soon abandoned, as the subsidy in each case was too small.
About this time the Chancellor of the Exchequer requested a thorough investigation into the foreign steam packet system. This was made in the most searching manner in 1853; and such was the effect that it was determined not only to sustain all of the existing lines in all of their integrity, but to extend the system and afford additional facilities to British commerce and the British people. Accordingly, a new contract was made last year, 1856, with the "European and Australian Mail Steam Packet Company" for a monthly service between Southampton, Marseilles, Malta, Alexandria, Suez, and Sydney, at an annual subsidy of £185,000, or $925,000. The Company has seven steamers of 13,410 tons, and 3,290 horses' power. They run 336,000 miles per annum, and receive 11s per mile from the Government. It must be borne in mind, too, that when this line was established there were already two lines to the East-Indies and China, and one to Australia. This makes two to Australia, and three to the East generally.
There is also a contract, made in 1850 with Mr. Cunard, for running monthly between Halifax and Newfoundland, and Halifax, Bermuda, and New-York, as well as between New-York and Bermuda and St. Thomas. New-York was soon dropped from the list, doubtless because the British steamers yielded us more advantage than was gained by the mother country or the Provinces, and the line is now continued, at the original compensation, £14,700, or $73,500, between Halifax and Newfoundland, and Halifax, Bermuda, and St. Thomas, connecting with the Cunard steamers. The steamers are small coasters, and run at the rate of 3s per mile. Hence, they make 98,000 miles per annum.