The republic. [volume] (Washington [D.C.]) 1849-1853, 1849-11-06

month, instead Of once week, would be sufficient
for all commercial purposes, the unsettled state of
the Peninsula interfering with the passenger traffic,
while hostile tariffs limited the introduction Of goods
and thus rendered the contract of the company in
creasingly unremunerative. The alteration was
accordingly made, and 80, 100 was deducted from
the annual payment of f29, 600.
'.The second branch of the service performed by
this company is the monthly conveyance Of the
mails between England, Gibraltar, Malta, and Al
exandria. This contract was entered into in 1910,
and the company then changed their name TO the
Peninsular and Oriental Company The vessels
employed were to be of not less than 400 horse
power, and capable Of carrying four of the heaviest
guns used in the navy. The terms were E37 900
for the first year, f35 900 for the second year. and
subsequent diminution Of El,OO0 a'year down to
f32, 900. further reduction of f3, 500 year
also made on the abandonment of portion Of the
service, consisting OF fortnight mail TO Corfu
This contract was for live years. but ii continued up
to lS49. new advertisement was then issued. In
reply, two tenders receved--one from the
Peninsular and Oriental and the other from the
India and Australia Company The Peninsular
and Oriental tender was to perform the service for
f27 500 year, with reductions of f500 year so
long the contract might continue, the vessels
be two of 450 and one Of $50 horsepower. The In
dia and Australia tender for f25 $50, with two
vessels of 400 horse power and one of $50 The Pen
insular and Oriental Company pointed out that the
contract should not lightly be removed from COM
pany that had embarked so much capital and had
performed past services satisfactorily and at the
same time they offered to concede to the govern
ment all profits above 10 per cent The Admiralty,
however, found, upon an examination Of the books,
which they made with the concurrence Of the drec-
tors, that advantage to the government was
likely to arise from this, the shareholders having
received dividend of 10 per cent, and there
being no prospect of such division. The Admi-
rally then made offer to the Peninsular Company
founded on the mileage rate paid to them for the
Lisbon line. This was declined, but the company
subsequently signifed they would be willing TO take
E24, 900 for the first year, with dmnution Of
E500 for each subsequent year. The India and
Australia Company also made amended offer
and the government, finding the existence Of com
petion, resolved to advertise again. In reply, the
Pcninsular Company sent in a tender higher than
diminishing E500 for the first four years. But the
India and Australia Company's tender was for
Els 450 and the treasury directed to be accepted
Although, however, they were allowed till the last
moment for raising their capital they were unable
to dose, and the former private offer of the Pennsu
lar Company then agreed to. This contract will
expire in 1853 upon twelve months notice.
isThe third contract of the company is for the line
commencing at Suez and terminating at Hong
Kong. This commenced in January, 1916, and is
for seven years The allowance is E16O,O per
annum, ego 900 of which is paid by the govern
ment, and 10000 by the East India Company.
The requisite vessels three of 500 horse power
to have been well performed, avoidable breaches
having taken place. and no serious complaints hav-
ing reached the Admiralty, except memorial of
the merchants of Hong Kong regarding late arri-
walls, which is still under investigation recur
renee of the evil having, meanwhile, been in some
degree provided against by the appointment of a
special agent at Singapore.
''The following table will show the total service
performed by the Peninsular and Oriental
Company: