The Sun.
London, England, 1842-08-31 00:00:00

THE AMERICAN STEAMERS.
(From the European.)
The deep interest we have ever felt in the question
of steam communication between America and Eng-
land has frequently caused us to advert to the subject
with a view of illustrating its importance, and of the
necessity, which exists for one great steam line being
permanently and efficiently established. We have
now the satisfaction of finding our remarks taken up
by far abler hands, and therefore, have increased cer-
tainty of seeing the time when public confidence shall
be firmly enlisted in favour of the steamers, and that
they meet such support as their necessities require.
Since the issue of our last number, we have it pub-
licly and officially announced that the Great Western
Steam-ship Company are in extreme financial diffi-
culty, so much so, indeed, as to be compelled to bring
the whole concern to an early close. This announce-
ment, though much to be regretted, goes clearly to
prove the truth of our assertion as to the enormous
cost of keeping these great steam-ships afloat ; and it is
a duty we owe to the public to make them acquainted
-with every fact in relation to the matter, as a continua-
tion of what we have already given. It may be said that
the North American Mail Company is the only party
now left to prosecute the enterprise, even though some
two or three other powerful concerns were in operation
simultaneously with it, each conducted on a magnifi-
cent scale, and with every endeavour to be rendered
permanently successful. In our desire to give the
mast correct information on this important subject,
we have endeavoured always to place facts before the
public, and we have never disguised the truth that
the statements thus given have invariably been ob-
tained from such sources as to place their correctness
beyond any possibility of honest dispute. The pecu-
liar position of the North American Company in
being now left to work out the scheme of Atlantic
steaming, and the attacks made on the Government
support awarded the concern, require that we give
some short outline of its history, and of the manner in
which its present state of excellence has been attained.
An erroneous idea prevails with the public that Mr.
Cunard is the sole proprietor ; and it is customary to
term it " Cunard's line," whereas, in point of fact, the
individual named is only one of the general proprietors.
The British and North American Mail Company is
composed of a party of about thirty gentleman, who
are associated for the conveyance of these mails—Mr.
Cunard, of Halifax; Mr. George Burns, of Glasgow;
and Mr. David Mac Iver, of Liverpool, being the in-
dividuals recognised by Government as the- con-
tractors. It differs from joint-stock concerns gene-
rally, to so far es the whole management is implicitly
left to the two gentlemen named as the Glasgow and
Liverpool contractors, who are not hampered or con-
fused with board meetings or any other such ma-
chinery. We believe the partners originally came
together and took up the undertaking on the repre-
sentation of these two gentlemen ; and would appear
to have reposed such trust from a knowledge of their
[ individual experience and fitness of managing the
property aright. On the 4th of July, 1840, they
commenced with the steamer Britannia—the first
voyage of the contract service of carrying the mails
across the Atlantic, for which the Government was
under agreement to pay 60,0001. per annum. After
about nine months' service, the managers drew the at •
tention of their colleagues to the then condition of the
concern, showing the result to be so unsatisfactory
that it would be proper to get altogether out of it if
possible, and that unless some additional assistance
could be obtained from Government the -whole pro-
perty must inevitably ,be lost—a true illustration
of the advantages derived from management being
centred in a few. A joint-stock company might
have prolonged the existence of such a con-
cern for a year, or even more, but it must be
clear that in this case the conductors could have no
purpose to serve beyond the simple and honest one of
carrying on the business effectively, and with a just
hope of fair remuneration to the parties whose capital
was embarked ; but when convinced it could only be
carried on at a loss, they properly determineei to exert
their utmost efforts in bringing the whole business to
a stop. Owing to their having performed the public
service with such efficiency, they obtained 'from the
Government a hearing of their statements of revenue
and expenditure, and were allowed to prove all ,that
was advanced. The Accountant-General of the Navy,
a. gentleman from the Treasury, and another from the
Admiralty, met together, and rigidly examined vouch-
ers for every account, beginning with the contract
made with the builders and engineers, and so on up
to the end of the nine months then expired. No in-
vestigation was ever of a more rigid, description.
Every separate account was examined and compared
with.the expenditure of those steamers under the im-
mediate control and direction of the Government, and
to this searching tribunal of appeal every statement
was made clear, even to the very letter. Notwith-
standing they had carried a large number of pas.sen=
gers and light cargo besides, yet it was undeniably
proved and acknowledged that the revenue derived
from these sources, when added to the Government
allowance of 60,0001. per annum, would no.; pay the
expenditure of the ship ; as to profit, that was entirely
out of the question. •
On the Report made by the Navy Accountant-Ge-
neral, the fl contractors succeeded in getting an addi-
tional sum of 20,0001. per annum; but that rigid care
of the public money which is generally found to pre-
vail in every branch of government, was exercised
even it this extra grant. The additional 20,0001. was
given on the distinct principle of what the steamers
might be sailed for ; expenditure and revenue were
the only considerations, without any provision being
made for the owners, as merchants, entitled to some
profit for capital invested. It is now two years since
those steamers first commenced that duty they have
so brilliantly performed; they have certainly brought
success and popularity to the public service, and have
done more to open new branches of commerce, as well
as add to our previous intercourse, than anything ever
before known. But, though this much has been
secured in a public point of view, what has been its
individual result to the owners as merchants, and,
therefore, parties engaged with a view to profit ? We
are assured by honourable men, in whom we can place
the utmost reliance, that the undertaking has not
yielded any profit. Such a result, where the sum of
300,000/. has been embarked, would be a serious affair
even under any circumstances, but how infinitely
worse does it appear when we reflect on the energy
and zeal here shown in the discharge of every duty
contemplated in the scheme of service.
The Government have been abused for giving, as it
has been termed, a monopoly to the North American
Company ; and it is said that competition across the
Atlantic by steam has been thereby destroyed. This
abuse appears now and again under the signature of
" Cerberus," and is evidently the ill-disguised venom
of some unfortunate schemer, who would induce par-
ties to plunge headlong into some ruinous steam pro-
ject. We merely allude to this and such like attempts
in order to show their real nature and objects, and as
uniting with the facts mentioned, to prove beyond
doubt that it is a mere fallacy to talk of competition
in a matter of business where the whole revenue possi-
bly to be obtained would be vastly too little without
some help from Government.
The disclosure of the Great Western Steam-ship
Company's affairs, as made at a late special meeting, is
of a character not only to prove what was formerly
asserted by the managers of the North American line,
but it also demonstrates the utter madness of parties
entering on ocean steaming, apart from being connected
with the mail service of the country. 'There can be no
doubt but that all the voyages of the Great Western, even
from her very commencement, successful and pros-
perous as they at first appeared, have been losses to
the proprietors. When crammed full of passengers
it could not be profitable, if the intention of a busi-
ness is to work to the end of a term of years in a
healthy state. According to the statement of their
accounts, submitted in April of the present year, the
ship stands at upwards of sixty-one thousand pounds,
and yet after having run several years they had a re-
served fund of a mere trifle towards her repair and
future renewal. It is not for us to set any amount as
the present value of this very admirable vessel—it
must be manifest that after enduring her great work,
great depreciation must have taken place ; neither do
we intend entering into the scientific and experimental
part of their proceedings—such as building extensive
works, and also the enormous iron-steamer. Our
object is to confine our remarks to what we know and
have proved as a fact, that the conveyance of goods
and passengers across the Atlantic, without help from
Government, is a hopeless case.
We do not publish our remarks on the condition of
the Great Western Steam-ship Company in any other
than the best possible spirit, and should not have
alluded to the losses that have befallen them, and
which have so insidiously and gradually grown on
their trading, had not the whole state of their affairs
been publicly made known. Another principal rea-
son of adverting to it is, that we have reason to be-
lieve a scheme is proposed to bring out the concern
in some other shape, such as getting the property
from the bulk of the shareholders cheap, and then 'in-
ducing capitalists to come forward by the use of ar—
guments from this, and a fancied prospect of Govern-
ment helping them by a contract to convey the mails
to and from New York. It is our duty to expose all
such attempts, not only from their bad effects gene-
rally, but especially in the present case, when mate-
rial injury would befal the parties who have shown
such extraordinary vigour in carrying out the North
American mail contract. If the parties sought to be
introduced into this new scheme were to have the
property handed over to them in a free gift, it would
be ultimately ruinous. It could not by any earthly
probability return a profit of itself, but the wry, con-
trary, and therefore we would warn the public against
any such projections. Any extra work requ red in
carrying the American mails car easily be added to
the service already performed by the present contract-
ors, and we should conceive it to be a matter of very
little import to 'them whether their ships run to
Boston or New York.
There is me other point we would remark on iti