The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1842-09-23 00:00:00

My. J. Irving, 114. P., the chairman, who opened his speech
by giving a short history of the operations of the company
since its formation, and also of the revised plan upon which
the directors, in conjunction with the Government, purpose
in future to conduct the services of the steam-packets. He
had, he said, every reason to hope that the reduced scale of
operations which the plan, lately circulated to the public
through the medium of the press, exhibited would be so re-
gulated as to secure the patronage of the trade with which
they were identified, and firmly establish the line of commu-
nication sought to be matured. The directors had bad great
difficulties to contend with, from the disappointment oc-
casioned by the non-performance of the voyages in the spe-
cified time, and also from the opinion which had gone forth
respecting the management of the affairs of the company.
On this subject. lie could only say one thing—the directors,
with himself, were prepared for the fullest investigation, but,
he hoped some indulgence would be granted them for the
manifold difficulties they had had to encounter, and if this
were conceded, and party prejudices were not allowed to
overreach reason, he should rest satisfied, that when the
shareholders heard the report, which it would now be the
duty of the secretary to read to them, they would not find
the position of the company in that state of disorganization
which they had been led to anticipate was in reality the case.
Captain D. Chappell, R.N. (the Secretary), read the re—
port, which was as follows :

" REPORT OF THE DIRECTORS OF THE ROYAL MAIL STEAM-
PACKET COMPANY TO THE PROPRIETORS ASSEMBLED AT
THE FIRST GENERAL MEETING, HELD AT THE LONDON

TAVERN, THE 21ST OF SEPTEMHER, 1842

" The directors have delayed ca:ling the proprietors toge-
ther till the present time, because, although at the time the
company was established it was contemplated that the ser-
vice contracted for with her Majesty's Government would •
have been commenced in the year 18-U, so as to have made
it desirable to have a meeting of proprietors in that year, yet
as the service was not commenced, in consequence of un-
avoidable delays till January, 1842, the directors had nothing
to communicate to the proprietors in the previous year which
could render a meeting necessary ; and they considered, un-
der all the circumstances, that it was expedient to postpcn.e
the meeting until they had some experience of the working of
the undertaking.

"As soon as the company was organized, the necessary
contracts were entered into for the building and equipment
of 14 steam-vessels, and as the directors were desirous that
the company should have the best vessels and machinery that
could be supplied, they invited competition from all parts of
Great Britain. In the result, contracts were made for
building four steam-vessels in the river Thames, the engines
for which were contracted to be supplied by two of the most
eminent engineers in the metropolis, seven vessels were con-
tracted for with builders in Scotland, where the engines for
six of them were also constructed, the engines for the other
vessel being made by an engineer of Liverpool, who also sup-
plied the engines for a vessel built at Cowes, and the remain-
ing two vessels with their engines were contracted for at
Bristol. _

" In spite of every possible exertion on the part of the
company, it was found impracticable to get a sufficent num-
ber of these steamers in readiness to commence the service
before the end of the year 1841. The two vessels, however,
contracted for at Bistol, were not in a state of readiness, and
it appeared to be so uncertain when they would be completed,
that the directors considered it important not longer to delay
the commencement of the service, and therefore purchased
two smaller steam-vessels, which it was arranged should take
the place of the two Bristol steamers until they should be in
readiness, and the service was at length commenced on the
Ist of January, 1842.
_

" In the original contract, Samana, a safe and commodious
harbour in tile eastern portion of St. Domingo, was fixed up-
on as the principal pivot of the combination and the point of
departure for Europe with the return mails; the Haytain
Government, however, notwithstanding an application from
her Majesty's Government, would not admit foreign vessels
into that port, and a new combination became necessary.
After some consideration and discussion, a modification of
the plan was arranged with her Majesty's Government, and
the Lords Commissioners of the Admiralty, who by the con-
tract have power from time to time to vary the route of all
or any of the steam and sailing vessels employed in the per-
formance of the contract, signified their assent to its trial ex-
perimentally for six months.
" It has been a source of great regret to the directors that
the service at its commencement was not performed with the
regularity that could have been wished. This may be con-
sidered in a great measure as incidental to the commence-
ment of a new, extensive, and complicated undertaking ; but
arose partly from an undue interference exercised by the
authorities at some of the foreign ports. Arrangements
were, however, made to obviate such difficulties, and latterly
the ships have performed their respective services with
regularity, and have satisfied the directors that they are well
adapted for the work they have to perform.
" The directors regret that after a few months' trial it ap-
peared that in the anxiety to embrace a large field for secur-
ing the benefit of the most extensive passenger-traffic, and
to provide for the convenience and accommodation of the
colonies generally, more had been undertaken than could be
properly accomplished by the number of steam-vessels con-
tracted for, and that the plan involved more expense than
would be remunerated by the payment from Government for
the mail service, and the return that could be expected from
passengers, freight of money, &c.

The-directors, in consequence, represented the circum-
stances to her Majesty's Government, who expressed a wil-
lingness to modify, the services contracted for in such a way
as might make it remunerative to the company, provided the
mail service between the colonies and Europe should be sa-
tisfactorily performed. After some discussion a new com-
bination was adjusted, and the Lords Commissioners of the
. .

Admiralty have signified their assent to its being tried expe-
rimentally for six months, from the Ist of October, without
prejudice to the contract.
combination at first acted upon involved a steam
.

service of 684,816 miles in the year, and though it was tried

with 1-1 vessels, yet the directory became satisfied that it
could not be performed with certainty without one, if not
two more steam-vessels. The plan now to be employed in-
volves the employment of only 12 steam-vessels, and a steam
service of only 392,976 miles in the year. The proprietors
will, therefore, perceive that this is a very important im-
provement in the position of the company, the payment from
the Gouernment continuing the same, and the directors
trust and believe that the contraction of the work will not be
attended with a corresponding .or any essential diminution
of the income from passengers, freight of money, &c., whilst
the expense of conducting the same will be reduced.
" A: plan of the substituted service is before the meeting.

" Ha.ving entered so far into the past proceedings and
future prospects of the company, the directors will now call
the attention of the proprietors to their financial position,
and in doing this they are desirous that the proprietors
should have fully before them all the information it is in their
power to furnish as to the expenditure of the capital that has

been raised, and the result of its operations up to the latest
period to which the necessary returns can be obtained.
" The capital of the company under the charter consists
of 15,000 shares of £lOO each ; 14,840 have been subscribed,
and upon which calls amounting to £5O per share have
already been made, and the sum of £725,645 has been re-
ceived, leaving £16,355 in arrears, £9,000 of which is due
upon shares which are the subject f litigation. Besides the
£725,645 thus actually received from shareholders, the di-
rectors have found it necessary to raise by way of loan the
further sum of £26,000 (expressions of surprise and a few
hisses) ; and there still remains to be paid to builders and
others, about the sum of £20,000 (expressions of surprise
repeated), and they estimate the amount expended in the
nature of capital at rather more than £1,000,000. (Cries of
" Oh, oh !")
" The statement marked ' A,' which will be submitted to
the meeting, will show how this sum has been expended.
" With the exception of the Medina, which was unfortu-
nately lost, and upon which £40,000 was insured, the whole
of the assets appearing in this statement may be considered
as available for the purposes of the company.
" The next subject for consideration is the actual working
of the undertaking from the Ist of January up to the 31st of
August in the present year.
" By the statement marked ' B,' which will be submitted
to the meeting, it will appear that the cost for working for
that period amountino. to £209,489, and that the earnings
during that time were £214,296, namely,—
Contract money to August 31 ..
Passage money and freight received in this
country .. . • • • .. 39,696
Ditto received in the colonies .. .. 12,000
Due by the Government for coals supplied 24,600
leaving a balance of only £6,807 towards providing for cost
of insurance, wear and tear, and return on capital.
" It will also be seen that the sum expended on account of
capital exceeds the amount raised upon the shares by about
£275,000, which latter sum it will be necessary to provide,
and it is intended forthwith to make a call of £lO per share,
by means of which and by the sale of such of the vessels as
will not be required for the reduced service, the directors
confidently hope that the undertaking can be satisfactorily
carried out without making further calls upon the share-

Z 160,000

holders.
" Before the directors conclude their report it may be ex-
pected that they should express their opinion on the pros-
pects of the company under the plan of service which is to
be experimentally tried, for six months, to commence on the
Ist of October. The directors have already stated that the
difference in distance is 291,810 miles, and the work will only
require ten large and two small steamers, from -which it is
obvious that there must be a great saving of expense. They
may add that the expense of working the entire service under
the old system would have amounted to upwards of X 360,000
per annum, exclusive of insurance, wear and tear, and inter-
est on capital ; whilst the charge under the restricted system
is estimated at about £235,000. The ultimate income must
at all times be uncertain ; but the directors are of opinion
that their receipts from passage monies and freight, together
with the £210,000 (which will be continued to be received
from Government,) will be adequate for a dividend on the
future operations of the company.
" The directors further express their strong conviction that
the new system will be worked with such regularity as to re-
commend the service to the favour of the Government and
the public, and satisfy both of the importance of the under-
taking in a national point of view, in which case, should they
be disappointed of gain, they would have great confidence in
expecting the honourable consideration of the Government
in support of those who have embarked their capital in an
undertaking which will be then proved to be highly beneficial
to the country."
Captain CHAPPELL then read the following accounts, A
and B, alluded to in the report
The following is a statement of the Receipts and Expen-
diture of the Royal Mail Steam-packet Company to the 31st
of August, 1842, inclusive :

" RECEIPTS
Amount of capital paid up . . .
Loans . . . •

. 725,645
• 260,000

• _ _ _
" Outstanding acceptances, 31st of August—
Applicable to permanent capital . • • 9,558
to the working of the fleet . 52,034
61,592
Payments from Government
Passage money and freights received . • • • 39,696

" Total
" EXPENDITURE.
Building, cost, and outfit of 12 large steamers .
Purchase of two steamers and outfit . . . .
Building, cost, and oufit for three schooners . .
Payments on account of Bristol ships . . . .
Cost of coal-hulks
Purchase of lease at Southampton, and other ex-

£1,206,933
733,052
43,082
17,808
121,443
9,288
2,480
1,000
14,857
10,000
623
105,000
4,148

penses
Lease of London office
Preliminary expenses for the formation of the

company . ........... •
Sundry outlays for the construction of coal depots

abroad . .
Fitting London offices
Coals . . . .
Coal sacks . • • • •
Dg, washing, purchase
r deducting passage-
money and provisions, andagecitzsc,. caofatlem
money and freights received in the West Indies
Stores and supplies received from Government
Outfit of ships for first and second voyages, stores,
crews' wages, provisions, &c

28,000
4,620
76,169