The Sun.
London, England, 1854-10-02 00:00:00

THE MAIL CONTRACT SYSTEM.

Public attention has just been called to another illus.
tration of the mail contract system, the alleged circum-
stances being as follows :—The General Screw Company
have lately established a line of steamers between
Havre, Southampton, and New York in conjunction
with an American line previously in existence. They
advertised to take freight at 25 dol. per ton. The
Cunard Company at Liverpool have for some time kept
up a competition for this trade, the goods being brought
from Havre to Liverpool in branch steamers, and there
shipped in the mail contract boats. Their charge for
freight has been 30 dol. per ton, and the lower price
adopted by the Screw Company was considered a fair
equivalent for the difference between screw and paddle
boats. When the Screw Company advertised the
Indiana, however, for the 3d of October, the Cunard
Company put down their rate by theii vessel
to leave Havre on the same day at 18 dollars.
To meet this the Screw Company came down
to 15 dols., whereupon the Cunard Company went as
low as 12 dols.--a 'charge which, it is said, will only just
cover the cost of conveying the goods from Havre to
Liverpool (including trans-shipment), so that they
actually propose to take them across the Atlantic for
nothing. Of course, if this competition were between
two companies starting upon equal terms, the public
would have nothing to do with it, except to congratulate
themselves temporarily upon the cheapness with which
it enables them to carry on their trade. But the case is
different when the funds by which one company contrives
to crush another and to limit the facilities of commerce
are derived from a Government subsidy. The Cunard
Company receive an annual bounty of 188,0401., on the
plea that, without such payment, no boats could carry on
the Atlantic service at the requisite speed. If this plea be
true, they have no need to attempt to drive off com-
petition, since no company can compete with them
without certain ruin, and, even if such were not the
case, it would still be hard to justify them in claim-
ing the trade between France and the United
States as well as that between the United States and
this country. Not lone- ago the same company con-
trived to induce the 'Board of Trade to refuse a
charter to a company asking no bounty •or exclu-
sive privileges of any kind, but simply proposing to
establish steam communication with Canada, on the
ground that it would check private competition.
We now see them availing themselves of all their
power,- not only to annihilate a rival that has no
exclusive advantages, but also to drive away Eng-
lish enterprise when it has just succeeded in esta-
blishing itielf on a route that has hitherto been con-
fined to American capitalists. Happily, the present
Government have recognised in a great degree the argu-
ments that were so long vainly urged against the mono-
poly system ; but, if a final blow were wanting, the
facts thus stated, unless they can be satisfactorily
answered, would, it may be assumed, prove sufficient.
It is, indeed, the system that is principally to blame.
The Cunard Company, through the skill and energy of
their founder, have carried on their business
years with an efficiency that has excited and
admiration,for many
been creditable to the country. That they should try
atowaa
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s oas to sweep
entirely depend-
ent upon them, is only one of the common results of the,
position in which they have been placed.--Times.