UH«»A«T
•UREAU OF RAILWAY ECCiwO
WASWIUCTO* D.
To the Stockholders of the Pacific Mail Steamship Company:
The late misrepresentations that have been circulated through the newspapers regard¬
ing the condition of the affairs of your Company, render it desirable that you should be
informed, as far as possible, of its present condition and future prospects, and with this
in view I beg to submit the following:
Your Company has now thirty-three steamers in commission, of which six are new
iron steamships, running, and all paid for.
The ''City of Peking," on which $852,000 has been paid, is now receiving her outfit
at the foot of Ninth street, East river, in this city, and the "City of Tokio" (Yedo), on
which has been paid $500,000, will be launched at Chester, Pennsylvania, on the Kith of
May, and will be brought to this City to receive her engines and outfit.
The contract with the builders, Messrs. Jno. Roach & Son, stipulates that $150,000
shall be retained of the final payment, on each of these two ships, until after they have
made satisfactory trial trips, showing a speed of not less than 141 knots per hour.
The payments made on these eight iron steamships, including outfit, have already
amounted to $4,100,000, and when the last two are completed, you will have added 23,000
tons of carrying capacity to your fleet.
The total tonnage for the year 1873, from New York to San' Francisco,
amounted to 154,000 tons
Of this amount the P. M. S. S. Co. earned only 9,400 tons.
This year (1874) your Company have thus far transported 9,243 tons, or within 157
tons of the entire amount carried during the previous year.
A like gratifying increase in the passenger business has been effected.
The number transported from New York, January 1, 1873, to May 1, 1873, being.. 858
Same period in 1874.. 1,794
The above comparative statements refer solely to the trattic between New York and
San Francisco, and do not include the China Line, the Central American Line, nor the
traffic from San Francisco to New York, on all of which routes a similar satisfactory in¬
crease has been realized.
The reduction in expenses has been from 30 to 50 per cent. In the item of coal alone
the Company is saving from $4 to $5.50 per ton on purchases made in San Francisco, and
from $0 to $7 per ton on that used in Acapulco.
The benefit to be derived from the introduction of iron propellers, combined with
the rigid economy which has been adopted in every department of your Company's ser¬
vice, can be better appreciated by a comparison of the cost of the round trip from New
York to Aspinwall:
Average cost of voyage last two years by the wooden steamers, 41 trips $27,400
Cost of voyage by the new iron ships 14,000
or a saving of upwards of $13,000 each round trip.
Your Company have every confidence in their ability to largely increase the business
of the China Line by a diversion of the trattic via the Suez Canal route to the P. M. S. S.
Co.'s Line via Panama, tlius adding materially to the revenue of your Company as well
as to that of the Panama K. It. Co.
As an evidence that these anticipations are not too sanguine, I refer to the fact that
the first steamer which left China with freight for New York, via Panama, brought 370
tons of tea, of which 3,.'500 packages were originally intended to be sent via Suez Canal,
but were subsequently changed and sent by the Panama route.
The tonnage through the Suez Canal during 1873, from China and Japan, was over
000,000 tons, valued at $240,000,000.
On the 20th inst. the steamer "China" arrived at San Francisco from China and
Japan, with 1,040 passengers and 1,300 tons freight.
On the 24th inst. the steamer " Constitution" arrived at San Francisco from Panama,
with 386 passengers and 1,570 tons freight.
On the 26th inst. the steamer " G ran ad a" arrived at San Francisco from Panama,
with 240 passengers and 1,260 tons freight.
On the 27th inst. the steamer " Colorado" arrived at San Francisco from China and
Japan, with 860 passengers and 1,280 tons freight.
On the 27th inst. the steamer " Colon" arrived at New York from Aspinwall with 235
passengers and 1,651 tons freight.
Making live steamers, with 2761 Passengers, and 7061 tons of Freight, arriving
at San Francisco and New York within a period of eight days, and on which the Com-
pauy will realise upwards of $200,000 from freight alone.
The policy of the present Board has been to manage the affairs of the Company on
business principles, and to bring the strictest economy to bear in all its details.
With its present equipment your Company is prepared to carry from New York
1,200 tons of freight per week, and a like amount from San Francisco, Central and South
America, besides 30,000 tons per annum from China and Japan.
One of the Company's steamers will leave New York for San Francisco, on Satur
day, May 9th, and every alternate Saturday thereafter.
On intermediate Saturdays, when necessary, steamers will be despatched from New
York, with way passengers and freight for the Isthmus and Central and South America.
Steamers will leave San Francisco for New York, via Panama direct, calling only at
Acapulco, on Saturday, May 9, and every alternate Saturday thereafter.
On intermediate Saturdays steamers will be despatched from San Francisco, calling
at all way-ports in Mexico and Central America.
Steamers will leave San Francisco for China and Japan on Saturday, May 2d, and
every alternate Saturday thereafter.
The next arrival from China will be due at San Francisco on Monday, May 18th, the
following one, Monday, June 15th, and regularly every alternate Monday thereafter.
New York merchants will have the privilege of having their teas and silks forwarded
either via Panama, or by overland railroad, as they may prefer.
On the 1st December last, your Company had a floating debt of $3(50,060. Since
that time this debt has been liquidated, and $508,000 has been paid on the new iron
steamers.
The average supply of coal and ship stores has been fully kept up at all points, and
at several, materially increased.
Large expenditures have, in the meantime, been made on all of your steamers. They
have, as required, been newly painted and upholstered, and the steamers "Henry
Chauneey," "Montana," and "Costa Pica" have, at a cost of $100,000, been put in such
thorough repair, that they are now in all respects as good as new.
The six new iron ships have been insured for $2,000,000, about two-thirds their
cost, at an outlay of $110,000, and the premiums paid.
The Company has on deposit in Bank in New York Currency $ 78,870
" " " " " " " Gold 8,7.14
With J. S. Morgan & Co., Bankers, London 10,000
Loaned on call in New York 370,000
Stocks on hand, market value 304,000
viz.: 0000 shares P. M. S. S. Co., being balance of 10,000 shares
received from A. B. Stockwell in settlement, 4,000 of
which have been sold and realized $105,849 22.
2080 shares California Dry Dock Co.
Due from Mexico & Cent. Am. States for Mail Service, 1873—to collect
which an agent of the Company is at present engaged 80,000
Claim against Union Pac. lilt. Co., in dispute 225,000
(of which 25 per cent, is due to the Panama It. R. Co.)
In addition to the above there is due the Company for uncollected freights
on cargoes in transit, all to be collected within 40 days—estimated 375,000
Due from U. S. Gov't, July 1, 1874 125,000
$1,411,584
* On the final completion of the steamers " City of Peking " and
" City of Tokio," the Company will have paid or owe J no. Roach
& Son $ 725,000
(Payments to be made as the work progresses, according to contract.)
The Company now owes the Panama Rli. Co., due Oct., 1874 315,000
Amount of bills maturing June, July and August 210,441
Taxes, 1873, in suit 43,000
Total indebtedness $ 1,299,441
*(This payment of $725,000 to J. Roach & Son adds $2,300,000, including outfit, to the value of the Company's
fleet of ships.)
The cash assets on hand and to be realised within sixty days from this date, show
an excess of $112,143 over the entire liabilities of your Company, after paying in full for
the eight new iron steamers. In other words, it belongs to its shareholders, and no bond¬
holders or creditors have any interest in it.
There will be a meeting of the Stockholders on the 27th May to elect Directors for
the ensuing year.
With the above facts in your possession, you will be enabled to form an opinion as
to whether the present Board have been acting for the best interest of your Company,
and if you are satisfied with what has already been effected, I would respectfully request
you to execute and return to me the enclosed proxy, in case you are unable to be
personally present at the election.
RUFUS HATCH,
Vice-President and Managing Director.
New York, May 1st, 1874.