[336] Paper read to Society of Arts, p. 7.
CHAPTER X.
Peninsular and Oriental Steam Navigation Company—Its founders and origin—Messrs. Willcox and Anderson—Mr. James Allan—How the Peninsular mails were originally conveyed—Proposal of Peninsular Company for their conveyance—Contract concluded August 29th, 1837—Conveyance of mails to India previously to 1839—Government applies to the Peninsular Company and accepts their proposals, though reluctantly—Proposed direct line from Falmouth to Calcutta—First vessels hence, on Indian postal service to Alexandria—Original postal service from Suez to Bombay—Contract for mails between Suez and Calcutta, September 1842—Further proposals made by the East India Company and Government, but finally rejected by the East India Company—Further contracts for mail service to China and Singapore—Peninsular and Oriental Company undertake the line between Bombay and Suez, 1854—House of Commons Committee on Australian mail service, 1849—Eastern Steam Navigation Company and Peninsular and Oriental Company tender for it, but the Peninsular and Oriental succeed—The Himalaya built—New contract with Peninsular and Oriental Company, January 1853—Failure of service during the Crimean War—Proposals for an independent Australian mail service—Tender of European and Australian Company accepted—Their entire failure—Speech of Lord Overstone, March 24th, 1859—Royal Mail Company undertakes the Australian service and fails—New tenders invited—That of Peninsular and Oriental Company accepted, 1859—Consolidation of services in the Peninsular and Oriental Company—Its present condition and fleet of ships—Terms of the contract now in force—Revenue and expenditure—Coals required—Descriptions of vessels—Screw steamer Khedive—Particulars of this ship—Uniform and regulations of the company.
Peninsular and Oriental Steam Navigation Company.
The career of the Peninsular and Oriental Steam Navigation Company, the first commercial undertaking which conveyed the mails overland to the East is interesting and instructive. It is the more so, as the impression that this company owed its origin to Government grants, and that it has been entirely maintained by subsidies for the conveyance of the mails, is not supported by facts. Indeed, during the earlier portion of its career, the company, by agreeing to carry the Peninsular mails, shortly after it had been started, for a sum considerably less than the cost of maintaining the Admiralty packets then employed, with a speed, too, and regularity previously unknown, conferred an undoubted boon on the public.
Whether the company would have continued to maintain its career of prosperity without Government subsidies is a problem too speculative for me to solve; but it may well be questioned whether the grants of public money subsequently voted to it year by year, in so far as they prevented wholesome competition, and tended to damp the individual energy which brought it into existence, have been of much service towards its success. During one portion of the company’s career, when the advantages of the overland route had been fully established, it might, and I think it would, have been to its advantage to have been relieved from every incumbrance as to time and speed. Free from these, and the many other conditions required by Government, the company would probably have done better for its shareholders had it been, also, at liberty to build and sail its ships as it pleased, despatching them on such voyages and at such rates of speed as paid it best; and, in support of this opinion, I may remark that various other shipping companies with no assistance whatever from Government have yielded far larger dividends than the Peninsular and Oriental, and, further, that private shipowners, who never had a mail bag in their steamers, have realized large fortunes. With these remarks, I shall now endeavour to furnish a brief history of this important undertaking from its commencement, and to show that its rise was by slow degrees, and altogether unlike that of the Royal West India Mail Steam Packet Company, with which it has been frequently compared.
Its founders and origin.
Messrs. Willcox and Anderson.
In the year 1815, Mr. Brodie McGhee Willcox,[337] then a young man with no influence and but limited pecuniary means, opened an office in Lime Street, London, and commenced business on his own account as a shipbroker and commission agent. To assist him in his business he shortly afterwards engaged as clerk a youth from the Orkney Islands, Arthur Anderson,[338] subsequently his partner, whose only capital was a plain but sound education, good moral and Christian training, a clear head and great industry. In 1825, the firm adopted the title of Willcox and Anderson, and removed their offices to 5 St. Mary Axe, where they carried on their business till it was absorbed into that of the great company whose progress I am about to describe. Originally, it was simply a small shipping commission business, with the addition of the part-ownership of a few vessels chiefly trading with the Peninsula, with which they in time opened up, first a regular sailing, and then a steam line of communication, this service having been started solely by Mr. Willcox. At first, Messrs. Willcox and Anderson had a good deal of up-hill work, but they were plodding and industrious, and, consequently, overcame every difficulty, soon insuring that success which industry, honesty, and economy must ever command.
Mr. James Allan.