so much so, and the
price of passage fare has been reduced so low on all of the prominent
lines, that as a general rule the steamers are not now making much
clear money on their passengers. The expense of keeping passengers was
not half so great six years ago, as it is now; and there appears to be
no safe means of permanent retrenchment. Nothing has been said of
Insurance. This is a most costly item. The Havre Company pay on their
two ships, which are worth about $900,000, nine and a half per cent.
per annum; and Mr. Collins pays on his three ships, which are worth
about $2,200,000, nine per cent. per annum. On the Havre steamers this
amounts to $85,500 per year, which is nearly as much as the mail pay;
and on the Collins, to $198,000 per annum. And these are among what we
call the items of mail steamship expenditure. I do not know the sums
paid by the United States Mail, or by the Pacific Mail Companies.

I will here give the views of Messrs. Murray and Atherton on the cost
of steam, as they replied to letters of inquiry, which I addressed
them Sept. 14, 1857. Mr. Murray says in answer to

_Query 2_. "It is certainly my impression that ocean steamers of
sufficient speed to carry the mails with any thing like regularity,
will not pay upon any route with which I am acquainted, without
assistance from Government."

_Query 5_: Can Parliament do better in economy than in her present
mail contracts, all things considered? Mr. Murray replies:

"I do not see how Parliament can avoid paying the large subsidies she
does for the mail contracts under present circumstances."

_Query 4_: Is the steamship stock of Great Britain, subsidized or
unsubsidized, paying stock, and is there much disposition among
capitalists to invest, even in the stock of subsidized companies? He
replies:

"I do not think the steamship stock of Great Britain to be in a very
nourishing condition: in fact, I know of only one company (the
Peninsular and Oriental) in which I should like to invest money."

Mr. Atherton replies to a query regarding the cost of running steamers
as follows:

"As to whether the effective performance of high speed mail service is
compatible with ordinary mercantile service without government
subsidy, I am of opinion that the mutual relation of Speed and Cost in
connection with long sea-voyages has never yet been duly appreciated
by owners, managers, or agents in charge of steam shipping affairs.
An acceleration of steaming