Owing in great measure to the scarcity of fuel on the coast, the company, during the first five years of its existence, sustained a loss of four-fifths of its paid-up capital, but the shareholders courageously resolved to persevere with their undertaking. The seat of management of the company was, however, transferred from London to Liverpool (1846), and the late Mr. William Just appointed Managing Director. The following year (1847), the Directors were for the first time able to declare a dividend, a modest two-and-a-half per cent. In 1850, having obtained an extension of the Government Postal contract, the Directors ordered four steamers, at a total cost of £140,000. These steamers were named the LIMA, SANTIAGO, QUITO and BOGOTA, and were each of about 1,000 tons gross and 300 horse-power nominal. In 1856 the company’s service was re-organised by Mr. Just, who visited the West Coast specially for that purpose. During the same year the compound type of engines was adopted in the company’s steamers, the Pacific Steam Navigation Company being thus one of the earliest ocean steamship companies to use this type of engine. A supplemental charter was obtained in 1865, extending the operations of the company, and authorising steamship communication between the West Coast of South America, and the River Plate on the East Coast. As the profits of the company had been steadily increasing for a number of years prior to 1867, it was resolved at a meeting of shareholders, held in December of that year, to establish a monthly line of steamers from Liverpool to the West Coast of South America, _via_ the Straits of Magellan, and to increase the capital of the company to £2,000,000. The first new steamer of the new service was the PACIFIC, 1,630 tons gross register, 1,174 tons net, with engines of 450 horse-power. Her principal dimensions were, length 267 feet, beam 40 feet, depth 17 feet. She was built on the Clyde in 1864, by Randolph Elder & Co., and cost £61,855. After trading for about three years on the Pacific Coast, she sailed from Valparaiso for Liverpool in May, 1868, as the pioneer steamer of the new mail service. During this year five steamers of about 3,000 tons each, specially built for the maintenance of this service, were added to the company’s fleet. These were the JOHN ELDER, MAGELLAN, PATAGONIA, ARAUCANIA and CORDILLERA. So profitable was the Liverpool trade to the West Coast, the Directors determined in 1870 to make the sailings fortnightly, and in that year they added the steamers CHIMBORAZO, CUZCO, GARONNE, LUSITANIA and ACONCAGUA to the fleet. In December, 1871 they recommended a further increase of the company’s capital to £3,000,000, with a view of making the service from Liverpool a weekly one. During the year they had greatly increased the number of the company’s ocean steamers, having built in 1871 seven steamers, each of about 4,000 tons gross, viz., the SORATA, ILLIMANI, COTOPAXI, GALICIA, CORCOVADO, PUNO and POTOSI.