On the other hand, the company had great difficulties to contend against, while its shareholders, so far from receiving any dividend on their capital, sustained during the first year of its operations a heavy loss. Moreover, though liberal concessions had been made by the Government, together with various unusual allowances, these were more than counterbalanced by the loss of two valuable ships during the second year of its operations. Yet, taking into account these and other losses, to which reference will hereafter be made, the trade increased so rapidly as to recoup the disasters of the company, and to leave, in 1843, a surplus of receipts over expenditure of 94,210_l._ and in 1844 of 147,749_l._: the directors were therefore enabled to recommend a dividend on the half-year ending 31st December, 1844, of 30_s._ per share; in October, 1846, 35_s._; and in April, 1848, 2_l._ per share.[275] From this time the prospects of the company steadily improved, and when, in 1850, various capitalists in the United States projected the construction of a railway across the isthmus of Panama—a project which promised extensive additions to its business—the company was in a position to render this new undertaking considerable assistance by advancing, in the course of the year 1851, the sum of 25,480_l._ towards its completion. At that time, too, the direct and most advantageous route to the Australian colonies appeared to be across that Isthmus; indeed the Panama route was recommended by a Committee of the House of Commons who inquired into this subject in the session of 1849. But, apart from the Australian trade, that of San Francisco was then being rapidly developed by the discovery of the gold mines, by attracting (as these did) large numbers of passengers from Europe, and, thereby, laying the foundation of the present enormous traffic in grain and other produce from California, perhaps the most fertile district of the United States—the valley of the Mississippi not excepted. [Sidenote: from improved management.] From that period the operations of the company have from various causes yielded a very fair return to its shareholders, some of these, doubtless, being due to the rapid increase of the trade, to the knowledge the directors have gained from experience, and, not the least, to the fact that their ships are now commanded by men who have been either trained in their own service, or have acquired, while employed by other shipowners, the sort of knowledge essential for the successful management of merchant-steamers. [Sidenote: Contract renewed, 1850.] [Sidenote: Its conditions.]