An Abstract of the Proceedings of the Select Committee of the House of Commons, Appointed Session, 1849, to Inquire Into the Contract Packet ServicePeninsular and Oriental Steam Navigation Company
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An Abstract of the Proceedings of the Select Committee of the House of Commons, Appointed Session, 1849, to Inquire Into the Contract Packet Service
Peninsular and Oriental Steam Navigation Company
Mail steamers -- Great Britain
2168. Do you mean to represent to the Committee your opinion that while
the Board of Admiralty told you that you might compete if you pleased,
they had in point of fact made up their minds to give the contract
to the Peninsular and Oriental Steam Packet Company at a much higher
price?--That was our firm belief, that they had made up their minds
to give it to them. This I know as a fact, that when the matter was
handed over from the East India Company, and the East India Company
had nothing to do with it, the Peninsular and Oriental Company asked
£170,000, and they had it all their own way; but the East India Company
said that they would not pay more than a certain amount annually; they
were to pay a certain proportion, but they said, “We will do nothing of
the kind; you may do as you like: we will have nothing to do with it
beyond paying a certain amount.”
2169. Did it occur to you that if so scandalous a spirit of jobbing
as you describe had actuated the Board of Admiralty, you might have
put them completely in the wrong by offering a contract from parties
competent to perform the service for £60,000, which you laid down as
the proper sum?--I can answer the question in this way: it is all very
well to say, “Why did you not send in a contract?” but it is a contract
that required a large capital and great arrangements. It is impossible
to make all those great arrangements in two days; the Peninsular
Company, by obtaining under false pretences £20,000 for the Calcutta
mail, had put all other parties out; and if you say, “Will you make a
contract in a couple of days now for £60,000?” it is impossible; it
requires a large fleet and great capital. Mr. Green has a large fleet,
but they are employed in other parts; and his expression was, “It is of
no use competing with the Peninsular Company, for they are too powerful
for us; their influence is so great.”
2170. You mean to represent that all the shipowners in London
acquiesced in the opinion that public money to a large amount was
going to be given from favouritism to the Peninsular and Oriental
Steam Packet Company; but that it was of no use, on account of the
secret influence which the Peninsular and Oriental Steam Packet Company
had got at the Admiralty, to contend with them?--That was my own
individual belief, and the petitioners, I think, agreed in that.
2171. Did you lend a large share in the drawing up of this petition?--I
did.
2172. Is it your composition?--I do not know that it is.
2173. In the petition you object not to one contract in particular,
but to the system of contracts altogether?--We object not to the whole
system of contracts, but to the system under which it has been carried
on; in the first place, there are put into the contracts conditions
which are never acted upon; that I consider extremely wrong; it keeps
all honest men away.
Public-domain text, read in full here on John Shaqi.
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