But this subsidy, large as it doubtless was for the service to be performed, was not sufficient to cover the heavy outlay the company had considered necessary in the construction and equipment of their fleet. Perhaps, too, part of this outlay arose from the fact that, though Mr. McQueen, the projector of the company, was a gentleman who had had considerable experience in the promotion of large undertakings, his knowledge of maritime affairs was limited, while he was not sufficiently conversant with those details, the practical knowledge of which is so essential to the success of all shipping operations. The directors, as a body, were not competent, from previous experience, to manage such an undertaking; while the choice also of commanders, selected from the Royal Navy, with little or no experience of steam, and none whatever of the numerous requirements of a merchant-ship, was unfortunate, and may have in some measure tended to produce a balance sheet which, though embracing to its credit the large permanent subsidy, showed at the close of the first year’s operations a loss of no less than 79,790_l._ 16_s._ 8_d._ to the company! It may, however, be remarked that the projectors of this undertaking had entered on an entirely new field, and that merchants who had been accustomed to dispatch their produce in sailing-vessels were unprepared to pay the enhanced rates required for steam-ships, while the passenger and goods trade in itself was not then nearly sufficient for a remunerative return on the large capital subscribed. [Sidenote: Capital of the Company.] [Sidenote: Liberal concessions by Government.] Originally, the company was authorized to issue fifteen thousand shares of 100_l._ on which calls of 50_l._ per share had been made up to the time of the first meeting of shareholders, with power to borrow 260,000_l._ But as another call of 10_l._ per share, sanctioned at this meeting, was found insufficient for the requirements of the Company, the directors appealed to Government for further assistance. By the original arrangements, the annual mileage traversed by the company’s ships would have been 684,816 miles. Government, however, in reply to their appeal, generously consented to reduce the distances to be performed to 392,976 miles, and to allow the annual subsidy of 240,000_l._ to remain undisturbed. By these important and liberal modifications the annual expenditure of the company which, according to their own calculations, would have been 360,000_l._ per annum, was reduced to 235,000_l._ It was further conceded that if, at any time, and from causes, in the opinion of Government, of a public and national character, such as war, the insurance on steam-vessels should rise above six guineas per cent. per annum, or on coals above two guineas per cent. on the outward passage, the company was to receive an additional sum to be settled by arbitration, but which was not to exceed 10,000_l._ per annum.