The Sun.
London, England, 1858-09-21 00:00:00

THE GREAT EASTERN STEAMSHIP.

All speculation with regard to the future of the
Leviathan, so far at least as the exertions of the
promoters of the project are concerned, are now set
at rest, as the companyhave resolved to recommend
to the proprietors a scheme which, in their opinion,
embraces the best if not the only means of making
the ship available.
We are enabled to lay before our readers the full
details of the proposal, which, according to the
terms of the resolution agreed upon at the last meet-
ing of proprietors, must be submitted to the general
body of shareholders before any further step be
taken. The directors of the Eastern Steam Navi-
gation Company, in the first place, repudiate all
connection with the proposed Anglo-American Co.,
of which the public have heard something, but
which does not appear to have secured the support
or adhesion of any of the large shareholders inte-
rested in the original company. The project which,
on the other hand, is submitted with the approval
of the board of directors and shareholders of the
Eastern Steam Navigation Company, and which, in
point of fact, emanates from them, contemplates
the formation of a new company to be called the
" Great Steamship Co., Limited," with a capital of
£330,000 in shares of £1 each. The promoters of
this enterprise have addressed a communication to
each f.hareholder in the Great Eastern, containing
the following statement :—" The desire prevailing
on all hands that the Great Eastern steamship
should be set in motion, and a feeling that the
national character for energy and perseverance
would suffer in the estimation of the world if the
completion of so splendid a specimen of naval archi-
tecture and mechanical ingenuity- were to be further
deferred, has lcd to the proposal of forming a com-
pany for the purpose of purchasing, completing,
and sending her to sea. Increased carrying power
would greatly accelerate speed, and ability to coal
for an entire voyage could only be efficiently se-
cured by. great size. To carry out this principle,
which has now obtained universal assent by prac-
tical test, the Great Eastern has been constructed,
and has cost up to the present time about £640,000.
To rare this sum the existing company has ex-
hausted the power of making calls on its share-
holders, and has incurred a debt of about £90,000.
The present proprietors are a comparatively small
body, who are not inclined, as a company, to increase
their ri.k ; diitl although a large and influential
portion of them are willing to subscribe their fair
quota towards finishing the ship, there are legal
diflicultie s which prevent them from doing so unless
the ship be sold ; consequently they have determined
upon taking that course. TO purchase the Great
Eastern as she now lies, and with those contracts
completed which form part of the existing liability
of the old company, to fit her in all respects for sea
as a first-class passenger ship, and to provide ample
working capital, £330,000 would be the utmost sum
required ; and this it is proposed to raise by the
issue of 330,000 shares of £1 each, in a company
with limited liability, to be called the Great Steam
Ship Company. Calculating- from this basis the
cost per ton at which the Great Eastern, ready in
all respects for sea, would come into the possession
of the new company is less than that of a first-class
sailing vessel, and not much more than one-fourth
that of a first-class steamer, while in comparison
with the latter, her working expenses, from her im-
mense size, which enables her to carry double the
proportionate tonnage at double the v9locity, will
also be proportionately less. Ifer chances of success
in other respects may be estimated by the fact that
she will be able to carry her fuel for the longest
voyages, avoiding the delay and expense of calling
at foreign ports, and still have proportionately more
room for profitable cargo and a large number of
passengers than any other existing ship. She will
be fitted with all the appliances this mechanical age
has been able to devise for taking in her fuel and
cargo, and for discharging the latter with the
greatest rapidity, and will be supplied with com-
forts and conveniences unattainable in a smaller
vessel. Although there can be no doubt that India
and China or Australia, where she would success-
with the overland route, would
fully_ compete
afford the best field for showing the capabilities
of the Great Eastern, yet the impetns which
will be given to traffic and commerce by the
Atlantic telegraph points to the American trade
for a more immediate result. Tier great length,
while offering very little extra resistance to the
water, admits of the combination of the -screw
and paddle for the purpose of propulsion, from
which a rate of speed hitherto unexampled will
be obtained ; for when it is considered that every
increase of size has always hitherto been attended
with increased speed and of proportionate carryingi
power, there is little fear that the computations of
science will in this case fall short of their usual
accuracy. With a speed of twenty miles an hour,
the freedom from disturbing motion her great
length will give, and the enormous strength
of her construction, the Great Eastern cannot fail
to have the preference of travellers and emigrants,
and secure the freight of goods requiring speedy
delivery, although it is not necessary she should
carry her full complement of either, to arrive at an
exceedingly profitable result upon the reduced

capital of the new company. But apart from the
consideration of profit, which properly belong to
all mercantile operations, there are others which
invest the successful prosecution of this undertak-
ing with something of national importance. It is
hardly too much to say that in no other country
could such a creation have been possible, and
certainly on no other could it confer such advan-
tages. With colonies and dependencies in every re-
gion where external aggression may have unexpect-
edly to be resisted, or internal commotion suppressed,
the resources of the empire would be multiplied,
and its power almost doubled by the rapidity with
which they could by her aid be concentrated for
every emergency."
The projectors then intimate that their proposal
is that 2s. per share of the new capital should be
paid upon application, a further share of 3s. on the
completion of the contract for the purchase of the
ship from the Eastern Steam Navigation Company
and the remainder in three calls of ss. each, at in-
tervals of two months. Should, however, the pro-
moters of the new company fail to purchase the ship
ls. 10d. of the deposit to be returned. It is further
stated that a large portion of the capital has been
subscribed by the shareholders of the company, who
thus show their continued confidence in the success
of the undertaking. It is presumed that the vessel,
when finished, will be enabled to make 8 voyages
within the year to Portland or New York ; and
that, according to statistics of existing traffic, the
earnings of the ship, after deducting insurance,
wear and tear, and every possible contingency, will
leave a balance from which a dividend can be de-
clared of 15 per cent. The estimate of the ship's
earnings, as now submitted, is as follows, presum-
ing that she makes eight voyages out and home
within the year :-200 first-class passengers, at
£2l, £4,200 ; 400 second-class at £l5; 2,500 at £7
—L27,700 (less dietary, L 4,700) ; homeward, 900
passengers (less dietary), £11,500 ; cargo, 3,000
tons out and 2,000 home, at £3 and 305.—X6,000 ;
total, £38,200. From this there is to be deducted.
£6,330 for agency, commission, loading, and un-
loading—making the receipts per voyage £31,870,
or for 8 voyages £254,960. The estimated expen-
diture for the 8 voyages would be £101,500, leav-
ing a balance of £153,200. From this there will
remain to be deducted £40,000 for insurance,
£49,500 for wear and tear and depreciation at £l5
per cent., management £5,000, contingencies
£9,200—leaving for dividend at 15 per cent.
£49,500.
In order to give effect to the arrangement the fol-
lowing options are offered to the shareholders in the
old company—either: to exchange their shares at
the rate of 5 shares in the new company fully paid
up for 2 of the present shares ; to exchange at the
rate of 10 shares in the new company with ss. paid
for one old share on which 15s. per share would
remain to be paid ; or to exchange at the rate of 5
shares in the new company with 10s. paid, and the
liability to pay 10s. more for one old share.
It will be seen that the terms thus offered con-
template giving the old shareholders precisely the
present market price of their shares, and no more.
The present price in the market is as near as possible
£2 10s. per share, and therefore 5 new shares fully
paid up would be equal to the market value of 2 old
shares.
Should the proprietors, on the other hand, elect
not to take any new shares at all, the company state
that they will be entitled to their divisable share
of the assets whatever that may be. It is also stated
that the new project, the originator of which is Mr.
Campbell, one of the directors of the Eastern Steam
Navigation Company, has received the assent of the
majority of the large shareholders, including the
chairman, Mr. Hope, Sir Joseph Paxton, M.P., and
others.

The whole of the new shares are to be offered to
the old holders, but should a sufficient number not
be taken up, which seems extremely probable, then
they are to be offered to the public. Proposals are
also to be received from the holders of original
shares for shares in the new company. in excess of
those of which they might be entitled in virtue of
these old shares. The meeting to confirm or reject
this proposition will be held in the course of three
weeks from the present time.