Part 9 (1/2)
”When the public interest requires the establishment of a postal line on which the ordinary traffic would not be remunerative for steamers, the subsidy to be allowed in the contract may be ascertained either by the test of public compet.i.tion, or by calculating the amount which, on an estimate of the probable receipts and expenditure, will cover the deficiency of receipts, or by comparing it with the cost of war vessels if employed for the same purpose.”
”The objects which appear to have led to the formation of these contracts, and to the large expenditure involved, were--to afford a rapid, frequent, and punctual communication with those distant ports which feed the main arteries of British commerce, and with the most important of our foreign possessions; to foster maritime enterprise; and to encourage the production of a superior cla.s.s of vessels which would promote the convenience and wealth of the country in time of peace, and a.s.sist in defending its sh.o.r.es against hostile aggression.
”These expectations have not been disappointed. The ocean has been traversed with a precision and regularity hitherto deemed impossible--commerce and civilization have been extended--the colonies have been brought more closely into connection with the Home Government--and steams.h.i.+ps have been constructed of a size and power that, without Government aid, could hardly, at least for many years, have been produced.
”It is not easy to estimate the pecuniary value of these results, but there is no reason to suppose that they could have been attained at that time at less cost.”
After noticing the objects of the postal contracts, the Report says, in speaking of their results:
”To show what the system is capable of accomplis.h.i.+ng, it will be sufficient that we should call attention to the two great lines of communication which have been opened, the one between this country and India, the other between this country and America. The mails are dispatched twice a month in the one case, and once a week in the other, and are conveyed to their destination with a regularity and rapidity which leaves nothing to be desired. The time occupied in the voyage to and fro between England and Bombay, which, before the establishment of the Overland Route, averaged about 224 days, is now no more than 87 days; and the time occupied in the voyage to and fro between England and the United States, which before 1840 varied from 45 to 105 days, is now reduced to an average period of 24 days. Nor is the service simply rapid, it is also regular; and the mercantile community can reckon with the utmost certainty on the punctual departure of the mails at the appointed times, and can also calculate with great precision the times of their arrival.
”The same results have not been so conspicuous on some other postal lines; but, taking the service as a whole, it has undoubtedly been brought to a high state of excellence, and its value to the country, both politically and commercially, is very considerable.”
In speaking further of the objects of the Government postal service, after inquiring whether the foreign mail service should be extended any further, it says:
”The object of the Government in undertaking the transmarine postal service, whether by packets or by the system of s.h.i.+p letters, is to provide frequent, rapid, and regular communication between this country and other states, and between different parts of the British Empire. The reasons for desiring such communication are partly commercial and partly political. In cases where the interests concerned are chiefly those of commerce, it is generally more important that the postal service should be regular, than that it should be extremely rapid, though of course rapidity of communication, where it can be obtained without sacrificing other objects, is of great advantage. It would clearly be the interest of persons engaged in an important trade, provided there were no legal impediment in the way, to establish a regular postal communication in connection with it, even without aid from the state. This, however, would not extend to many cases in which there are political reasons for maintaining such services, while the commercial interests involved are of less magnitude. _Nor is it probable that private communications would be nearly so rapid as those directed by the Government; for a high rate of speed can only be obtained at a great expense, which will generally be found to be disproportionate to the benefits directly received from it, unless under peculiar circ.u.mstances of pa.s.senger traffic._ Lastly, it is to be considered that there are several services which, if they were not carried on by the British Government, would probably be undertaken by the Governments of foreign states, and that it is not likely that private individuals or a.s.sociations would in such cases enter into compet.i.tion with them.
”From these considerations we infer that, even upon the lines in the maintenance of which the greatest commercial interests are involved, private enterprise can not be depended upon for providing a complete subst.i.tute for Government agency; while it is clear that in others, where regular communications are desired solely or chiefly for political purposes, such agency is absolutely indispensable. _It is, however, obvious, that to establish a Government system in some cases, and to leave others wholly to private persons, would cause much inconvenience._ The conclusion therefore follows, that it is right that the Government should have the management of the whole of the transmarine postal communication, as it also has that of the communication within the country.
”In undertaking this duty, the Government will in the first place have regard to the national interests, whether political, social, or commercial, involved in the establishment and maintenance of each particular line. Care must, however, be taken, in cases where the communication is desired chiefly for commercial purposes, to guard against an undue expenditure of public money for the benefit of private merchants. The extension of commerce is undoubtedly a national advantage, and it is quite reasonable that Parliamentary grants should occasionally be employed for the sake of affording fresh openings for it, by establis.h.i.+ng new lines of communication, or introducing new methods of conveyance, the expense of which, after the first outlay has been incurred, may be expected to be borne by the parties availing themselves of the facilities offered them. But this having once been done, and sufficient time having been allowed for the experiment, the further continuance of the service, unless required for political reasons of adequate importance, should be made to depend upon the extent to which the parties chiefly interested avail themselves of it, and upon its tendency to become self-supporting.”
Noticing the greater or less sums at which private companies may be induced to undertake short line postal service, and stating that the line is both benefited and injured by the necessity of punctual sailing hours, the Report states the reason why subsidies are required, thus:
”The vessels now under contract with the Government are, however, for the most part, required to maintain high rates of speed. The contractors are also subject to a variety of conditions, designed partly to secure the efficiency of the postal service, and partly to render their vessels available for other national purposes wholly unconnected with that service. In return, they are in the receipt of subsidies largely in excess of the amount of revenue derived from the mails they carry, and those subsidies are guaranteed to them for terms of years varying from four to twelve, most of which have at the present time not less than seven or eight years to run. An Estimate printed in the Appendix, will show that while the amount of the subsidies to foreign and colonial lines, as contracted for in the past year, was no less than 822,390, the sums received for postage upon these lines can not be estimated at more than 443,782.”
The Report further says, as to the mode by which postal communication can be procured, ”where frequent and rapid communication already exists, it is only necessary for the Government to secure from time to time the services of vessels already engaged in private traffic.” But as there are no such cases in the transmarine routes, and as private enterprise supplies the demand of steam lines only on the short routes, like the inter-island service of Great Britain, or that to the Continent, or the service of the Sound, the North River, short coast routes, etc., in the United States, the Report goes on to say:
”There still remain, however, some cases in which there exists no private communication sufficient to render such a mode of proceeding practicable. Where this is so, and where a communication has to be created, it will be necessary that contracts of longer duration should be made, _for it is unreasonable to expect that any person or a.s.sociation of persons should incur the expense and risk of building vessels, forming costly establishments, and opening a new line of communication at a heavy outlay of capital, without some security that they will be allowed to continue the service long enough to reap some benefit from their undertaking. It must be borne in mind, that the expensive vessels built for the conveyance of the mails at a high rate of speed are not in demand for the purposes of ordinary traffic, and can not therefore be withdrawn and applied to another service at short notice_. It is, then, fair, that on the first opening of a new line, contracts should be made for such a length of time as may encourage the building of s.h.i.+ps for the purpose, by affording a prospect of their employment for a considerable number of years. But we see no sufficient reason for continually renewing such contracts for periods equally long, after the object has once been attained.”
(_For the views of the Committee on the adaptation of the mail packets to naval service, see pages 146 and 147._)
The Committee in summing up, presents the result of the investigation and the fruits of the service in the following impressive light:
”The value of the services thus rendered to the State can not, we think, be measured by a mere reference to the amount of the postal revenue, or even by the commercial advantages accruing from it. It is undoubtedly startling, at first sight, to perceive that the immediate pecuniary result of the Packet System is a loss to the Revenue of about 325,000 a year; but, although this circ.u.mstance shows the necessity for a careful revision of the service, and although we believe that much may be done to make that service self-supporting, we do not consider that the money thus expended is to be regarded, even from a fiscal point of view, as a national loss.”
It has never been a favorite idea with British statesmen that the packet service should be self-sustaining; nor have they had any evidence to believe that steam companies could live on the postal receipts. It is evident from the following that the packet system is sustained without any reference whatever to the postal income, and for commercial, political, and social purposes alone; only using the income so far as it goes as a part of the contributions by the people to the general treasury. It says:
”Your Lords.h.i.+ps have seen from our Report that in framing these contracts various objects have entered into the consideration of the Government, the cost of which ought not in our opinion to be charged upon the revenues of the General Post Office. A simple comparison of the receipts and expenditure upon some of the lines is in itself sufficient to prove this. If the Post Office is to be considered as a department producing revenue, it is not to be supposed that a line of vessels which costs the State 240,000 a year, and brings in no more than 56,002, (as is the case with the West-Indian packets,) or one for which 25,000 is annually paid, and which returns little more than one fifth of that sum, (as the Pacific line,) can be maintained as a part of its machinery; and, in fact, the contracts for many of the services have been made without reference to any estimate or opinion on the part of the Post Master General of their probable value as postal lines.”
It thus becomes abundantly evident from the Reports of Parliamentary Committees, from the ”Acts of Parliament,” and from the practice of the Admiralty and Post Office Departments, as well as from the unvarying experiences of twenty-four years, that the steam mail packet system of Great Britain was primarily adopted, and ever since sustained as the choicest means of giving to that nation the irresistible control of the world. Watching this system from the germ to its present maturity, we have seen the overshadowing tree reach higher and higher, and the circle of each year's growth expand more and more, until the outer ring now embraces the whole civilized and savage world. An additional evidence of this arrives this very day.
The Atlantic brings intelligence (_New-York papers, Nov. 22d_) that Great Britain has just completed another mail contract, by which the Peninsular and Oriental Company are to run a third semi-monthly service to India and China; so that the Government and people of Great Britain shall have a weekly communication with those regions, while we have none except through them, although we are many thousand miles nearer to those countries.
It has been said that we should not attempt to run the postal and commercial race with Great Britain. Why not? Because she has many colonies, and must needs keep up communication with them. And why have steam instead of sail to them? Because steam is the means of more readily _controlling_ them. Grant it; and for the very same reason we wish steam with all the world; not that we may control the world, for this is costly and unremunerative, as Great Britain finds; but to conform it, and especially to _control_ its commerce. Great Britain has possessions in the West-Indies; but they are of the most insignificant importance when compared with the trade of the many islands and countries near them, which she does not possess, and with the Central American, Californian, Mexican, Peruvian, Chilian, New-Granadian, Venezuelan, and Spanish markets, which she controls and uses. So with India and the Mauritius. It is a matter of sore satisfaction that she is compelled to govern them as a means of reaching their rich trade, which, however rich, is far less important than that of China for which she so strives. So also with Canada. She was told some years since that, if she wished to secede from the Kingdom, because the Government would not a.s.sist in building a certain railroad, she might go, and carry peace, also, with her. The Government would scout the idea of running the Cunard line to Canada alone, and would not touch even at Halifax, except that the s.h.i.+ps are compelled to go in sight of the place; as the ”great circle” on which they sail nearly cuts the city. Great Britain runs that line because her trade with the United States requires it. That trade is worth to her every year twenty of her Canadas, as that of the West-Indies is worth a dozen of all the possessions which she has there. As to running the race of commerce with her, it is simply a _sine qua non_, on which there is no difference of opinion among Americans who love their country.
SECTION X.
THE MAIL LINES OF THE UNITED STATES.
THE MAIL LINES OF THE UNITED STATES: THE HAVRE AND BREMEN, THE PIONEERS: THE BREMEN SERVICE RECENTLY GIVEN TO MR. VANDERBILT: BOTH LINES RUN ON THE GROSS RECEIPTS: THE CALIFORNIA LINES: WONDROUS DEVELOPMENT OF OUR PACIFIC POSSESSIONS: THE PACIFIC MAIL STEAMs.h.i.+P COMPANY: ITS HISTORY, SERVICES, LARGE MATERIEL, AND USEFULNESS: THE UNITED STATES MAIL STEAMs.h.i.+P COMPANY: ITS RAMIFIED AND LARGE EXTRA SERVICE: EFFECT UPON THE COMMERCE OF THE GULF: ITS HEAVY LOSSES, AND NEW s.h.i.+PS: STEAMs.h.i.+P STOCKS GENERALLY AVOIDED: CONSTANTLY FAR BELOW PAR: THE COLLINS LINE: A COMPARISON WITH THE CUNARD: ITS SOURCES OF HEAVY OUTLAY, AND ITS ENTERPRISE: THE AMERICAN MARINE DISASTERS COULD NOT HAVE BEEN PREVENTED BY HUMAN FORESIGHT: THE VANDERBILT BREMEN LINE.
It is not my intention to notice the various lines in detail, or in any wise become their apologist, eulogist, or prosecutor. As a general thing they have discharged their obligations to the Government and the people in the most creditable manner; in a much better manner than could have been expected of them, considering the novelty of such enterprises in this country and our total want of experience either in steams.h.i.+p building or ocean steam navigation. It is a cause of great gratulation and satisfaction that springing into the great arena of the mail and pa.s.senger strife at a single bound, our steamers at once took the lead in the race, and have ever since distanced those of the whole world in speed, comfort, general accommodations, and cheap transit. This may be a.s.serted as a rule without a single exception.
The Collins steamers and the steamer ”Vanderbilt” have beaten the Cunarders by nearly a day and a half on the average voyages; the Havre and Bremen steamers make just the same time as the Cunarders; and the California steamers of both lines have signally beaten those of all the English lines in the West-Indies, the Mediterranean, and the Pacific and Indian oceans. Indeed the triumphs of our steamers generally and specially have been so decided in every valuable point that we have great reason to be proud of the attainments to which the legislation of 1846 and '47 led. We have nothing to record to the credit of our legislation since that period.