The daily union. [volume] (Washington [D.C.]) 1845-1857, 1852-04-29


lines after have used all the economy industry, and
skill that belong TO us have seen as yet nothing IN
the whole OF this debae--nothing coming from any CON.
mliiee, any bodywhich gives the foundation upon
which that estimate is 10 be made.
Sir have endeavored from the best lights before me
to get, possible. at something like basis upon which
10 make proper calculations and deductions and beg
leave In very brief manner, TO present 10 The Senate
the basis Of these calculations and estimates think
there = great deal IN them oas II mere Is nothing ,a, 10
emen who may have turned their attention to this sub.
ect more than have will, when they come to speak
upon II, answer them.
The FIRST estimate is, how much capital has been in.
vested m this concern for when you have the capital
invested, you have the basis upon which to say how
much interest how much profit ought TO be made to
constitute a fair remuneration. WE'LL we have the
basis OF that estimate We are told by the reports when
have been made and placed before us that The capital IN
vested to III these and make them ready ior
service amounts TO $29Ii ,l43in round numbers, we
might say three millions bul am giving the sums ae-
curaely according to the documents, and the documens
which have give the OF ,l42 as the actual
outlay to t out these four steamers for the service
therefore includes everything which belongs to them
Now, sir six per cent interest on that capital makes
only $l76 6iS year; and twelve per cent makes only
1885, ,297 year. We pay 1886 900 year; therefore we
pay twelve per cent interest upon the whole capital in
vested, and and above that ineres, upwards of
$3l 900 Now, government bonus amounting TO more
than twelve per cent upon capital invested by private
individuals in private business is greater than have
known to be paid Tor anything else 10 help private in
dIvduals connected with the government service. Well,
there be no denial OF this fact and this view OF the
subject, that the compensation which you already pay
amounts 10 more than twelve per cent. upon the whole
capital invested And then, yon perceive, IN addition 10
that that you allow all the profits which are made by the
] trip. Let sec how that matter presents itself.
The documents show that the amount made upon each
! trip, upon the average is Sls,2s6 and some cents.
Twenty trips at this rate would give you $o65737 a
year. In addition to that you have the government. pay
| OF $3Sj,00o per annum.
Mr. HALE. The amount made on each trip includes
"A Mr. UNDERWOOD | suppose not
Mr. HALE Yes, il does.
Mr. UNDERWOOD If that is the fact. then my cal
culation is wrong but do not so understand it.
/ Mr. SEWARD. With the senator's permission.
wish TO two facts which he may take into consider
aon. The first is, that the insurance upon these four
ships amounts to six eight per cenLmore than one
half of all that is paid BY congressional support the
other is that the deerioratlon wear and tear OF the
steam vessels amounts to twelve per cent.
/ Mr. UNDERWOOD. My friend will not allow me TO
come 10 the calculation in my own way will have all
that IN il he will only have little patience
/ Now here is the document which says that the aver
age receipts on each voyage have been Sis,2s6 s5
am right according 10 the paper. This sum, multiplied
by the twenty trips, makes $965,737 Add to that the
1886 900. which the government pays and you have
350, 1877 the actual receipts oil this line OF steamers
Nobody deny that, If The document is true Here Is
contract Tor $685. 900, and here IS document which
says the receipts upon each voyage have averaged so
much, and both together make 81 35o,737.
Now what is the loss, what is the expense, accord
ing to this same document, for each trip! II is So5
Well, twenty times that will give you the whole
outlay. which is 81 ,30i ,300-showing, by calculations
which cannot be gansaid clear gain of Si64s7. There
can be no resisting that calculation according TO the doc
umens II cannot be Otherwise.
/ Now, admit that $4,000 is no compensation, maxi ing
aowan for insurance. for interest on the capital, wear
and tear &c. II sdefcient il is not enough But when
you engage in great enterprise OF this Sort and the gov
eminent parunIzes TO the extent that have already
shown that they have done, and clear profit OF $40 900
is realized there is little reliance upon increase
OF business which lies ahead, and which the gentleman
from New York tMr SEwARDl has pointed out, think,
with great deal OF propreiy and with very great pre-
science, which | hope will all be realized. Although
This profit is small, and is not sufficient compensation
for the capital invested for the insurance. and for the
rskand yet something is 10 be rsked by undertakes
upon profit OF this sort with the hope OF profits 10
come-yet il is proved from the data before tha, this
idea which has been started and harped upon from the
beginning of an entire loss cannot be INDUCED in
Mr. SEWARD. The honorable senator will allow me
10 inquire whether understand him TO exclude this
1855 900 from the Items OF the receipts'
\ Mr.. UNDERWOOD. ! do. According to the docu-
meni the 1886 900 is exclusive OF the average Of the
ceipts OF $4,000 "trip. :
i Mr. SEWARD. understand il TO be otherwise, and
that the senator is under misrepresentation.
! Mr. UNDERWOOD II this is a misapprehenson,
then my calculations wrong will state again tina,
the document reads that the receipts for each
voyage have been Sis,000. understand from that thai
it is the profit upon the voyage independent OF the gov
Mr. RUSK viii the honorable senator allow me TO
explain II TO him
| Mr UNDERWOOD Certainly, for only want ligh,
upon H.
Mr. RUSK. The expenses Of each trip amour, to
Mr' UNDERWOOD. So say.
| Mr. RUSK. The receipts OF each voyage amount TO
Sis 1856 and there the loss complained OF bythese
contractors. They pay out for each trip which they
make and what they receive amounts TO SiS 900
and they complain that there is loss This statement
comes from their book keeper, and is accompanied with
the formaty OF oath. know the honorable senator
does not want 10 be mistaken but he has referred to
report which had the honor OF making one or two years
ago, where the cost OF warsteamer OF the first class
estimated by the Secretary OF the Navy at 000
per annum The honorable senator does not seem TO
member that VI you give them moreaccodng to the esti
that was made by the Secretary OF the Navy $780,,
600 per ship- would come within few dollars OF what
is asked here. II you multiply $4,000 by four. you
have upwards Of S70O,Oo0 that the honorable
tor taking one ship OF the first class in commission
and comparing with four ships Of the Collins line and
he will remember also that this estimate made upon
the few voyages that Of the first class makes in
commission, while these running every day. involving
constant expense This estimate OF the Secretary o
II the Navy made upon distances which amount "a
4 little or nothing compared with the constant service o
\ the Collins line.
Mr. UNDERWOOD Mr. President, [ only referred
to the cost OF sailing vessels, men-of- war, and wal
steamers, reported by the Secretary of the Navy,
things which had induced 10 think and enter into
this investigation. | had never the particular
suns till ! examined this report this morning 1 had
thought about them, and had faint recollection OF them
did not refer to them for the purpose OF going into an
accurate minute comparison, because had not the in
formation necessary to do IT, But my friends nfor-
nation does relieve the difficulty between myself and
the gentleman from New York at all He states exactly
what the document says. and what have heard and
over again II says that the amount expended in each
trip is $55000 and that the amount received is Sis000
and that The difference between the expenditures and
Il Agz. - n