Knoxville journal. [volume] (Knoxville, Iowa) 1874-1986, 1875-01-14
Snoxgills journal.
KNOXVILLE. JANUARY II, 1873.
The Pacific Mali Aaair.

The Pacific Mail AFFAIR.
II was in the winter OF 1865 that
Congress fret authorized the Post
Office department To contract Cor
monthly mail, TO be carried BY
American built steamers, between
san Francisco, the Sandwich Islands,
Japaf, and China. This contract was
awarded To the Pacific Mail SteaTn-
ship Company, Allan McLane, Pres
ideat. Tie compensation was to he
500, 900 per annum for II round trips
the service to begin in September,
1867. This project was generally APP
proved by the press and people and
was hailed with enthusiasm in Cali
fornia, when the Pacific Railroad
was approaching completion. In
January, 1867, long before the con-
tract time, the Pacific Mail Steam
ship Company dispatched the Colo
RADIO, a wooden steamer with side
wheels, OF 1900 tons, from Gan Fran
cisco to China and japan. 1t Was
regarded as great event ami Gan
Francisco WAS in raptures over it.
In March, 1867, An official statement
gave the Pacific Mail property at
about s37 100000. The net earnings
for the first quarter Of 1867 were
500 900. The stock was quoted at
| 30 in the market. The contract
was soon after modified by authority
0f Congress so as 10 give an addition
nj subsidy of S75, 900 for branch in
Honolulu. In the winter of l869-70, !
Mr.. SlcLane being still President,
Congress was asked to increase the
mail service to China and Japan to
senii-nnonthly trips and raise the
subsidy 20 81 100000 just double the
previous sum paid. Mr.. II. Il. Irwin
was put in charge Of the matter, hav-
ing been recalled from the San Fran
cisco agency for that purpose. The
bill did not pass till May, 1872, when
Il clause was inserted In the Post |
otice appropriation bill approved
June /, 1872, authorizing the Post
master General to contract for the
additional service for ten years from
October LIST, 1873. This law proyid-
ed that the ships were TO be Of iron, !
Of American construction and not
less than 1900 tons burthen. The
contract was, Of course, made with |
the only bidder, the T.. M. S. Co. 1t
was in the spring Of 1872 that Allen
II. Stock we'll became President Of the
Company, by combination Of stock
operation, and it was under
r,is direction the large expendi-
tares were made at Washington
through Irwin. Congress was expect
ed at this session TO appropriate $780,
900 OF the million contracted to be
paid, the other half having been APP
propriated. 1t was objected that the
contract had lapsed by reason OF a
hfliure TO be ready with iron ships Of
1000 tons on October Ist, 1872. But
Attorney General Williams main
tains that the essential conditions Of
The contract has been fulfilled, and
that the new iron vessels should be
accepted and the additional subsidy
paid. 1t IL easy to see how seriously
the Irwin developments may now
affect these prospects. Congress may
refuse 10 make the additional appro-
priatinn on the ground that tile con-
tract mas lapsed, or may repeal the
las entirely. M
The attention OF the public has
been 30 forclbly arrested by the
charges and developments In this
connection that this brief history Of
the Pacific Mail subsidy will not be
without interest.
N n s,n 4. 4. su llS. un n xGI hns.a Fad