Ocean Steam Navigation and the Ocean Post

by Thomas Rainey

"A similar result has, to a certain extent, attended the establishment of the American, or Collins line, between New-York and Liverpool. Previously to the commencement of this line, the transportation of the United States mail matter, as well as the finer and more destructible descriptions of merchandise, requiring rapidity of transmission to and from Europe, had been monopolized by the British Cunard line; and the British Government had, within the short space of six years, from the postage on this route alone, derived a clear income of no less than five million two hundred and eighty thousand eight hundred dollars, after deducting the amount paid to the concern under the contract to carry the mails.

"Since the establishment of the Collins line, notwithstanding the combined efforts of the British Government and commercial interests to confine their freights and postages to the Cunard line, the revenue to the Post Office Department of the United States has amounted to several hundreds of thousands of dollars per annum, whilst a large proportion of the money for freights has been received by American citizens. The effects of this measure have, it is true, thus far been but partial, because the trips of this line have been but twice a month, while those of its rival have, for a considerable portion of the time been weekly. During the intervals between the trips of the American line, the postages and freights must, of necessity, enure to the advantage of the British, and, consequently, the evil referred to has been but partially remedied."

Speaking of the large steamers built, the Report says:

"It is not to be supposed that engines of such vast dimensions could have been constructed in a country where there were, as yet, no workshops adapted to the purpose and where labor is very high, as cheaply as in a country where every appliance of the kind already existed and where the prices of labor are proverbially low. Nor can it be reasonably imagined that vessels of this description could have been navigated on as good terms, by men taken from this country, where there was little or no competition in this peculiar branch of maritime service, as by those who were easily to be found in a country in which the density of population and consequent competition for employment, caused the wages to be small.

"An attempt seems to have been made, in certain quarters, to create an impression that the aid heretofore extended by the Government to the individuals engaged under contracts to carry the ocean mail, has been induced by feelings of personal friendship, on the part of members of Congress. Such is not the case. The friends of the system of ocean mail steam navigation, have, so far as your Committee are advised, considered this important subject as a matter of great national concern and independently of the very secondary motive of individual interest. The question presented to their minds has not been whether A, B, or C should have a privilege extended to him, but whether the commerce, manufactures, and agriculture of the country would be benefited by the performance of a public service through the instrumentality of individual enterprise, under proper conditions and restrictions. As matters stood at the period when the system was adopted, Great Britain was exerting herself, successfully, to make the United States, in common with the rest of the world, tributary to her maritime supremacy. She possessed the monopoly of steam connection between the United States and Europe, the West-Indies and South-America. There was not a letter sent by ocean steam conveyance, in these quarters, which did not pay its tribute to the British crown, and not a passenger nor parcel of merchandise transported, by the agency of steam, upon the ocean, which did not furnish profit to the British capitalist. Great Britain asserted her right to be the 'queen of the ocean,' and, as such, she levied her imposts upon the industry and intelligence of all of the nations that frequented that highway of the world.

"In this condition of affairs, the law instituting the system of American ocean mail steam transportation in its present form was enacted, as the best, if not the only means of correcting a great evil, and, at the same time, building up a naval force which should be available for national defense in the event of a war. The system so instituted was deemed to be not only calculated to draw forth and reward the enterprise of American citizens, but it avoided the difficulty of keeping upon hand, in time of peace, a large and, for the moment at least, useless military marine, which could only be preserved in a condition for effective service by a vast annual outlay of the public money.

"It was right and proper, then, in the opinion of your Committee, that these ocean steam facilities should exist, through the intervention of the Government, more especially as they were, in all probability, beyond the reach of private means.

"The transportation of the ocean mails, with the greatest possible advantage to the important interests of the country at large, is an object of paramount importance; but which, however desirable, can only be effected at great expense. It is a matter of comparatively small moment at what precise time this expense is to be paid, provided that the end in view can be attained with certainty. The temporary loan of a part of the means required, under proper securities for reimbursement, appears to be the readiest mode by which the purpose can be effected. How is this security to be acquired? Simply, by taking due care that the funds advanced shall be faithfully and honestly applied to the object for which they are intended, and then holding a lien upon the ships, for the construction of which they are appropriated, in such a manner as to insure the reimbursement of the sums advanced in the form of mail service or money; or, should circumstances require, of ships suitable for national purposes, as war steamers. This has been done. In all cases the contractors for the transportation of the ocean mails, have been required to cause their ships to be built and equipped under the immediate superintendence of experienced naval officers and under the direction of naval constructors, appointed by the Government, in such manner as to be convertible, at the smallest possible expense, into war steamers of the first class.

"Nor has experience caused any regret, on the part of the friends of the system, further than that in some cases, owing to the increase in the tonnage and power of the ships and other circumstances, the expenses incurred by the contractors have outrun the receipts, and they have incurred heavy losses, which might even prove ruinous, if they were forced to sell the property acquired in this form. It should always be borne in mind, however, that in these cases, the increase of expenditure thus incurred has been caused by a laudable ambition on the part of the proprietors of these lines to do even more than they were required to do under their contracts, with a view to secure the confidence of the Government and the public. It should also be remembered that in thus increasing the cost and consequent value of their ships, these companies have enlarged the security of the Government for the money loaned, and promoted the safety and comfort of passengers. It has, in no instance, been charged that the companies referred to have, in any way, misapplied the aid extended to them, or given to it an improper direction. The products of their expenditures, even admitting them to have been greater than they might have been, show for themselves, in placing the American steam mail service, as far as it has gone, at the head of all others, in point of accommodation, elegance, strength, and swiftness. Nor is this all. The establishment of these lines is not to be regarded merely with reference to the immediate profits arising from the system, in connection with the transportation of the mails. Millions of money have been saved to American citizens, which, in the absence of these ocean steam lines, would have gone to fill foreign coffers. The Committee will refer to one fact in illustration of the truth of this proposition. Before the Collins line was established, the Cunard line was receiving £7 10s sterling per ton for freights; at present (1852) the rate is about £4 sterling. By whom were these £7 10s sterling paid? By the American consumer, in most instances, upon articles of British manufacture brought to this country by a British line. At present the American consumer pays but £4 sterling per ton; and, presuming that the American merchant makes his importations in the American line, this freight is paid to our own people and goes to swell the sum of our national wealth. Thus, it will be seen that, formerly, the American consumer paid very nearly twice as much for the service, and enriched the British capitalist; whereas, at present, he not only saves one half of the former cost of freight to himself but, in paying the remaining half, benefits his fellow citizen, who in return aids in consuming perhaps the very merchandise which he has imported.

"Under these circumstances, can any reasonable man doubt the propriety, even in a pecuniary point of view, of sustaining the present system, which, at its very commencement, has given such ample proofs of its usefulness? Your Committee think not, and do not hesitate to give it as their opinion that, merely as a matter of dollars and cents, the service in question should be liberally sustained by Congress, and will in the end make ample returns.