Previous to the 4th of September, 1837, the arrangements for the Mail
Packet communication with the Peninsula were as follows:--
Mails to Lisbon were conveyed by sailing Post-office Packets, which
departed from Falmouth for Lisbon every week--wind and weather
permitting. Their departures and arrivals were, however, extremely
irregular; and it was no very infrequent occurrence for the Lisbon Mail
to be three weeks’ old on its arrival at Falmouth, instead of being
brought in five days, with an almost mail-coach or railway precision,
as is now the case.
The communication with Cadiz and Gibraltar was only once a month by a
steam packet.
The originators and original proprietors of the Peninsular Steam
Company, who had, for upwards of a year previously to the time above
mentioned, been running steam vessels at a considerable loss between
London and the principal Peninsular ports, finding themselves in
a position to effect a great improvement in the arrangements for
transmitting the Mails, applied to the Government of that day on the
subject, but were at first coldly received, and their suggestions
disregarded. They continued, however, to prosecute their enterprise;
and the celerity and regularity with which their steam packets made
their passages soon began to attract the attention of the public.
The merchants began to complain loudly of the inefficiency of the
transmission of the Mails by sailing packets; and it was at last
intimated, from an official quarter, to the Managers of the Peninsular
steamers, that if they had any plan or proposals to submit for an
improvement of the Peninsular Mail Service, the Government was then
prepared to receive and consider the same.
In consequence of this intimation, a plan and proposal was drawn up for
a weekly transmission of the Mails between Falmouth and Vigo, Oporto,
Lisbon, Cadiz, and Gibraltar, by efficient steam packets, and at a
cost to the public which should be less than that of the then existing
inferior arrangement--namely, sailing packets to and from the Port of
Lisbon, and a steam packet, once a month only, to and from Cadiz and
Gibraltar.
The plan, after due examination, was considered to embrace advantages
to the public far exceeding what the then existing arrangements
afforded; and its adoption was consequently intimated to the authors
and proposers of it; but, at the same time, they were informed that the
execution of it would be put up to public competition.
Accordingly, an advertisement was soon afterwards issued, inviting
tenders, from owners of steam vessels, for conveying the Mails between
Falmouth and the Peninsula, in conformity with the plan submitted by
the Peninsular Company; and the Contract for the Service was competed
for against that Company by the proprietors of some steam vessels,
who, under the designation of the British and Foreign Steam Navigation
Company, had a short time previously commenced running two small
steamers to the Peninsula, in opposition to the Peninsular Company’s
vessels.
This British and Foreign Company, not being able to satisfy the
Admiralty that they had the means of performing the proposed Service,
their tender was rejected. Upon which they addressed the Admiralty, and
requested that the Contract might be postponed, alleging, that if a
month more were given to them, they could provide sufficient vessels.
Their request was granted; and, contrary to all previous practice,
after the tender of the Peninsular Company had been given in, and the
amount of it, in all probability, known to their competitors, the
Contract was again advertised, and a month more given for receiving
tenders.
The British and Foreign Company again failed to show that they had any
adequate means of performing the Service; and a private negotiation
was then entered into by the Government, with the Peninsular Company,
with a view to reduce the sum required by them. This sum was £30,000
per annum, being about £5,000 less than the estimated annual cost to
the public of the sailing packets and steam packet previously employed
in conveying the Mails. This sum was ultimately reduced to £29,600,[2]
on which terms the Contract was concluded on the 22nd August, 1837,
and may be considered to have formed the basis upon which one of the
most extensive and successful steam enterprises yet known has been
established.
These facts, it is submitted, abundantly show, that so far from any
favour being shown, in regard to this Contract, to the originators of
this Company, they obtained it in the face of adverse circumstances,
and solely because they had, by their own enterprise, placed themselves
in a position to effect an important public improvement, combined with
a reduction of the public expenditure.
No. II.
_Contract for an accelerated Conveyance of the India and other
Mails between England and Malta, and Alexandria._