The capital of the Pacific Company at first was limited to 250,000_l._ in 5000 shares of 50_l._ each. Though the whole capital, after a good deal of labour, was subscribed, only an amount was called up sufficient at the time to enable the directors to provide two boats, the _Chili_ and the _Peru_, which were dispatched to commence operations towards the close of the year 1840. [Sidenote: First vessels, the _Chili_ and _Peru_.] [Sidenote: Warm reception at Valparaiso.] These vessels were built of wood by Messrs. Charles Young and Co. of Limehouse, London. They were sister ships, each of about 700 tons gross register, though with a capacity of not half of that tonnage, and with engines of about 150 horse-power constructed by Messrs. Miller and Ravenhill. Through the courtesy of the directors, I am enabled to furnish the following illustration of the _Peru_, whose dimensions were 198 feet extreme length and 50 feet extreme breadth. They were at that time considered fine vessels and certainly they have a comfortable business-like appearance. No wonder, therefore, that, on their arrival at Valparaiso, they were received with great rejoicing and with “salvoes of artillery, everybody wishing to visit them, the President of the Republic, accompanied by his ministers, being among the first to welcome the steam-ships to the shores of the Pacific.” [Illustration: “PERU.”] [Sidenote: The Company persevere.] [Sidenote: Appointment of Mr. Just, 1846.] But here again, Mr. Wheelwright had many difficulties to overcome, the scarcity of fuel, as in the case of the _Telica_, being one of the greatest. Under these circumstances, the Company, during the first five years of its operations, sustained a loss of no less than 72,000_l._ upon a paid-up capital of 94,000_l._ In the face, however, of these heavy losses, the shareholders resolved to persevere with their bold undertaking, seeing in it the germs of future success. Under the impression that the business of the Company could be better conducted in Liverpool, where most of the shareholders resided, the directors, on the 4th May, 1846, obtained a supplemental charter to remove from London to that city, where the head office and general management, have since been conducted by Mr. William Just, who, in January of the following year, was appointed its managing director. In December 1847, the directors were enabled to give to the shareholders for the first time a dividend, though only 2½ per cent., on their paid-up capital. [Sidenote: Extension of contract, 1850.] In 1850, the Company obtained an extension of its mail contract of 1845-46, whereby the directors were required to provide not less than six steamers, of at least 170 horse-power each, but, at the suggestion of the Company, the Government, in November of that year, allowed four steamers of 1000 tons and 300 horse-power to be substituted for the six smaller vessels originally contemplated.[285]