monstrated both the necessity of continuing the
line, and of increasing the subsidy which the Government paid, to such
a sum as would secure good steamers, regularity of trips, and
efficiency of service. The Company now has nine steamers, with 18,406
tons aggregate tonnage, and 6,418 horses' power. The contract, which
is to continue for twelve years, until 1862, was so altered in 1852 as
to provide for a weekly service as well in winter as in summer; and it
will continue in force from 1862 until twelve months after notice may
be given for the discontinuance of the line. The compensation for the
same is at the rate of 11_s_ 4-1/2_d_ per mile. Lord Canning's Report
to Parliament in 1853, before noticed, in particularizing on this
line, said:

"An additional allowance, _within certain limits_, is to be made to
the contractors in the event of an increase in the rate of insurance
on steam vessels, or in the freight or insurance of coals, as compared
with the rates payable at the date of the contract, if proved to the
satisfaction of the Lords Commissioners of the Admiralty."

Thus, instead of abandoning this line after an experiment of twelve
years, and finding that it could never be self-supporting, the British
Government wisely determined to let their policy produce its full
fruits, and continued it for another similar term of years, with three
times the former subsidy, for only twice the old service. (_See
Collins and Cunard Lines, Sec. X._)

A contract was made in 1840 for steam to Malta, Corfu, and Alexandria,
and the service was extended in 1845 to Suez, Bombay, Ceylon,
Calcutta, Hong Kong, and Shanghae. It was renewed again in 1853,
terminable in 1862, or after twelve months' notice, with a service
between Sydney and Singapore, with the "Peninsular and Oriental
Company;" and the subsidy for the whole service was increased from
L199,600 or $998,000 per annum, to $1,224,000 per annum. The Company
have thirty-nine vessels of 48,835 tons, and 12,850 horses' power, and
run 796,637 annually, at 6_s_ 1-3/4_d_ per mile. The steamers run the
whole service of 796,637 miles annually, at this low rate because much
of the service is confined to the Mediterranean, as for example, their
line from Southampton to Vigo, O Porto, Lisbon, Cadiz, and Gibraltar;
and also that between Marseilles and Malta. This is but like the
coasting trade at the utmost, and is not ocean navigation proper.
Before the contract was renewed the same compa