The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-10-02

Vessels can TomuQer6Llvo "a q
AT Ponce up to the sth inst the severe drought
continued, and the next crop win be very poor
THE COMMERCIAL NAVIGATION COMPANY.
/ .f NEW YORK. Sept. 80, 1868.
no THE EDITOR OF TEE HERALD;- nA 4
h The interesting letter published in the HERALD OF
Sunday exposes In q mastery manner the absurdity
Of the pretensIons advanced by the Commercial Nayi
cation Company in the promises OF its President to
build steamers that VIII GROSS the Atlantic In two to
three days less time than the fastest ships Of the for
eign lines. isaee
Leaving the nautical and engineering merits OF the
scheme to the discussion OF experts In those impor
tant branches, propose, with your permission, to
examine its financial and commercial prospects "a
set forth in the manifestoes OF its managers.
BY special act Of Congress the Postmaster Gen.
eral is authorized to contract with the Commercial
Navigation Company for the transportation Of United
States mails 70 Europe, the compensation for the
service being limited to the amount Of hostages
earned mail matter carried by the steamers with
the provso that letters are to be detained over
other mall days for transmssion.by this lIne The
steamers. will therefore be entitled to the mail
matter which may be received at the Post ONCE be-
tween their own sailing hour and the sailing hour Of
the next preceding mail steamer. United States mails
are now forwarded by the Hamburg Cunard Bre-
men and Inman lines, sailing on Tuesdays, Wednes-
days, Thursdays and Saturdays OF every week. and
leaving only Monday and Friday without mail de-
parture. n the Commercial Company select Monday
their sailing day they will receive the letters, &C.,
which may be collected at the Post ONCE between
twelve NJ on Saturday and twelve N. on Monday.
This Is all the advantage in the shape Of mail earn
ings which the special act confers and is neither
moro or less than that which any American COM
pany providing suitable steamers for mall service
would receive from the PostOnlce Department under
the general act Of 1858. As far as the question OF
compensation goes the special act in behalf q the
Commercial Company confers no special privileges
and grants no special subsidy. Its passage was .
supernuous waste Of time and Legislation. Under
the United States now control the outward malls
only, the mails this way being under the control and
management OF the governments on the other side
OF the Atlantic the letter postage to Great Britain
was reduced from twenty -four cents to twelve
tries. The United states Post ONCE now charges
collects the hostages for one way only instead OF for
the round voyage as In former years, the Cunard
line alone accounting solely to the British govern.
ment, as the nman and other lines did to gov
eminent and as the French line does TO the French
Oiiciai reports OF the receipts under the new
postal system have not yet been published, but from
the best Information obtainable the aggregate sum
paid to the four contracting companies TINS year Will
not exceed $500 oooan average OF SIS 600 to each.
When the Commercial Company starts there viii be
the correspondence to raise the compensation to
average OF 100000 per annufn. This plain state
ment should set a. rest the many reports that the
| Commercial Company Is endowed with special sub
sdy OF $500 900 to $500 900 per annum. The special
act also authorizes the company 70 issue ITS bonds
| TO amount the interest on which, At seven per
cent, shall not exceed $3.50 900 per annum; In other
words, to issue three and half millions Of bonds.
The interest these bonds Is to be paid by the post
ages earned by the company under their mail con-
tract, tho balance OF the earned hostages, II any,
| TO be retained by the Postmaster General and applied
/ a
1t maturity. THIS undertaking Is to be endorsed on
| give semloflicial character to the bonds and
quasi assurance that the interest, at least will be
paid as II accrues. Although the COMPANY have not
yet contracted for the building OF their steamers
they have lost no time In the preparation OF their
| bonds land very handsome specimens OF engraving
l General for his enforcement. The Postmaster Gen.
l era, declines to afnx his signature the ground 1t
70 provide for the interest on the bonds and that he
has no SUFFICIENT guarantee thai the company
act q Congress-, in which event Of nom
| compliance there win OF course be no post
ages al all and the bonds viii be valueless.
/ The Rostmaster General Is professionally right In
his refusal to sig0nds for the obligations OF which
| the department md the public have no security
whatever beyond the promises OF the enthusastlc
| gentlemen who are promoting the company. The
Pacific Railroad bonds are issued as the road pro-
gresses let these bonds be issued as the steamers
are built tried and declared At for mall service.
The president OF the company states that they ARE
prepared TO go on and Immediately build and nt out
cost Of t7O00000. paying for them ont OF advances
| on the bonds aud on stock subscriptions" To do
scribcd ana paid in. Why not go on and build
three steamers with this money and then issue bonds
TO 0nehalf Of their value and continue building I'M
eli the nset Il completed Congress will. doubt,
extend the time Cor building when Il nds that the
company ID really In earnest and that II has the
ability to fulnl its engagements.
IL has been urged that inasmnch as the govern
ment does not directly bind itself 10 pay the interest
principal OF these bonds cannot be oser In any
transactions that may grow out Of their negotiation
faith lhough In the company 10 buy its bonds IL s
his business and not the business OF the Post once
To ths il may be replied that the department a..
sumes the duty OF trustee for the bondholders and
thatt cannot honestly accept that position II 4 has
not be fulfilled; and, Of course no one knows better
| than the Postmaster General that tho hostages
earned under the proposed contract wiz fall very
on the bonds he N asked TO endorse.
The managers Of the company ere 40 intensely
American that they are not likely TO apply to the
British or any other foreign government for natl
contract from Europe to the United States They viii
therefore carry mails the outward passage only. II
ru ss 20
a. TO ask one Of the 'cppresson Of the humsn racer
for mall contract this way the PROFITS Of such con-
q ~ wo S nj s on ne
posIsm, viii with whom the Contrast vo1Id Be- made.
nns W = asass SsaE -
eaeerne9s to obtain the Postmastcf 0enerAls name
on its bonds The President anKouno0s 1--WE have
nom Prussia to come over By our steamships next
h July next nom Bremen.5 As ths ssaiement .
.teamers In which their passenger capacity u set
are TO transport 50 900 bsmengsn between JAY and
LIST and from Bremen on the 10th July. ana regular