Henry A. Peirce to H. A . Peirce, United States, January 23, 1871

Mr. Peirce to Mr. Fish

Sir: In the belief that no law has as yet been enacted by Congress for the establishment of a monthly line of steamships for transporting the United States mails between San Francisco and the Australian colonies, and in view of the beneficial importance of that measure to the interests of the United States in this hemisphere, and particularly so in our commercial and political relations with this archipelago, and that much depends upon the designation by law and proper selection of the terminal and way ports of the proposed mail service; and thinking the information herewith transmitted may have some weight in determining the several questions above alluded to, I have the honor to inclose—

Copy of an unofficial letter addressed to myself by his excellency J. M. Smith, Hawaiian minister of finance, of date January 16, 1871, containing much that is interesting and suggestive in regard to the subject-matter, worthy of consideration by the United States Postmaster General and others.

Printed slips from Taranaki Herald of November, 1870, containing terms of a recent contract between Mr. Vogel, postmaster general of New Zealand, and Mr. A. Neilson, for mail service from and to New Zealand and San Francisco.

Slips of Hawaiian Gazette of January 4, 1871, containing correspondence between the Hawaiian government, Mr. Neilson, and Mr. Vogel—same subject.

Slips of Hawaiian Gazette of January 11, 1871. Remarks on the Australian steamship line to Honolulu; and on the correspondence above named. Also a statement of comparative distances from San Francisco to Honolulu, Feejee, and New Zealand, and San Francisco to Sydney, via Honolulu and Feejee; and articles entitled “Across the Pacific,” “Hall on the rampage.”

From my stand-point, and with full knowledge of the subject, I am strongly of opinion that the mail route of the steamers should be fixed by law to run on the great circle or shortest line from San Francisco to Honolulu, thence to Feejee Islands and Sydney, New South Wales, and return the same way; New Zealand to be rejected as a terminal port, on account of small population, and Sydney selected as having ten times more population and commerce, and proposing to grant large subsidy for the service. Besides, the region about New Zealand and thence to Australia is tempestuous in the general character of its weather, while the route from Feejee to Sydney is comparatively free from severe storms.

New Zealand would, no doubt, ultimately have a connecting line to Feejee if the main line is established by the United States in the manner proposed.

Two other things I beg leave to suggest:

The agent of the contractors’ steamers at Honolulu should be a citizen of the United States, for the reasons named in my dispatch No. 57.

The existing contract for mail service between San Francisco and Honolulu should, if possible, be annulled, and the work and subsidy of $75,000 per annum be arranged so as to transfer both to the new line from San Francisco to Honolulu and Australia.

I have, &c.,

(Inclosures.)

No. 1.—Letter from J. M. Smith, minister of finance, to H. A. Peirce’ January 16, 1871.

No. 2.—Slips from Herald at Auckland, New Zealand.

Nos. 3 and 4.—Slips from Hawaiian Gazette of January 4 and 11, 1871.

[Untitled]

The following description of the vessels to be employed is taken from the American Lloyd’s for 1870:

Nebraska.—The steamship Nebraska, 2,143 tons register, built in 1865, under official supervision, specially surveyed, and classed as extra A 1 in 1869; built of oak and hackmatack; an iron frame, three decks and beams; 15 feet draught; half brig-rigged; dimensions, 370 feet length; breadth, 39 feet; depth, 26 feet; beam engines, 81-inch cylinder; stroke of piston, 12 feet; double-planked with 4-inch oak; made 15½ knots on her trial trip.

Nevada.—The steamship Nevada was built at the same time as the Nebraska; her tonnage is the same, and she is in every respect a similar vessel, except that her cylinder is 4 inches larger.

Dacotah.—The steamship Dacotah, 2,153 tons register, was built in 1865, and specially surveyed and classed in 1869 as extra A 1. She is similar in every respect to the Nebraska. At present she is employed in the trade between New York and the West Indies.

Moses Taylor.—The Moses Taylor is 1,354 tons register; was built in 1857, and was resurveyed and classed as extra A 1 in 1869.

Honolulu,December 27, 1870.

Sir: Since I had the honor of addressing you two months since, I have visited New Zealand, where I have entered into a contract, in behalf of the North Pacific Transportation Company, with the postmaster general of that country, for a line of first-class steam-vessels between San Francisco, New Zealand, and Australia.

Mr. Vogel having shown me a letter which he addressed to you by this month’s mail, I am aware that by this time you are in possession of his official notification of the existence of the contract referred to, and of the fact that it is therein provided that the question as to whether Honolulu shall be made a port of call or not has been left to my determination. In order that you may be still further informed on the subject, I inclose you an official printed copy of the contract, and I would specially call your attention to clause 7.

I now have the honor, very respectfully, to inform you that I am at once prepared to notify the government of New Zealand, under the power vested in me by the clause aforesaid, that I name Honolulu as the port of call in the Hawaiian Islands, provided that His Majesty’s government are ready to guarantee to Messrs. Hackfeld & Co., the North Pacific Transportation Company’s agents here, prior to my departure on Wednesday next, that they will pay, subject to such reasonable conditions as may be mutually agreed upon, the subsidy voted by the members of your legislature, to whom it must be a subject of much congratulation that, by means of the wise provision they have made, it is now within the power of the government to secure so effective a line as that which the New Zealand contract provides for.

It would have afforded me much pleasure to have mentioned a longer time in which to decide this matter, but the contract makes it imperative that the first steamer shall leave San Francisco on the 16th of February next. That being so, you will see that the time has at last arrived when decisive action cannot be longer delayed.

You will observe that the principle pervades the whole contract of excluding all non-contributing places from participating in advantages the expense of which they are not willing to share. It is with all respect that I feel constrained to say that I am hound, in honor and good faith to New Zealand, to see that Honolulu is no exception to so wholesome a rule. It is only fair that I should add that the vote of your legislature is the best possible evidence that the representatives of the people of the Hawaiian Islands desired no such exception in their favor.

I address the communication to you, believing that the subject it refers to belongs to your department. If I am mistaken on that point, would you kindly oblige me by referring to the proper quarter.

I have the honor to be, sir, your most obedient servant,

No. 4, (with dispatch No. 99.)

THE AUSTRALIAN STEAM LINE.

We published last week all the correspondence which had taken place between this government, Mr. W. Neilson, and others, on the subject of the line of mail steamers between San Francisco and the New Zealand and Australian colonies. We did so from the fact that Mr. Neilson, had, as we understood, thought fit to publish in the Advertiser of the week previous a portion of the correspondence in question, apparently with the view of demonstrating to the public that this government had shown a most remarkable apathy in grasping the advantages to this country, which he, in his character as agent of a steamship company in San Francisco, most graciously offered it. We are entitled to express this opinion inasmuch as he bitterly denounced the government in a public room of this city, a few hours after his arrival here on his return from New Zealand. We say, in his capacity as agent of a steamship company in San Francisco, with some little hesitation and misgiving, although we must believe that he showed some authority to Mr. Vogel, the postmaster general of New Zealand, or it is not probable that that gentleman would have negotiated the contract which he undoubtedly did with Mr. Neilson as agent for Messrs. Holladay & Brenham, for the establishment of a steam route between San Francisco and New Zealand. Still it is somewhat remarkable that although Mr. Neilson, in his letter of October 24, represents that he “is acting in the interest of the North Pacific Transportation Company and William H. Webb, which are consolidated,” and that Mr. Vogel says, in his communication of November 22, that he “has made an agreement on the part of the government of New Zealand with Mr. Neilson, acting as agent of Mr. Webb, of New York, and Messrs. Holladay, Brenham & Co., of San Francisco,” yet Mr. Neilson signed the contract only “for and on behalf and in the name of of Holladay & Brenham.” To say the least, there is considerable inconsistency in this state, of things; but then the gentleman appears to have considered himself the embodiment of the company—president, board of directors, manager, and agent, in fact, sole owner of all the steamers now occupied on the various routes of the company, as well as those belonging to Mr. Webb, now in the harbor of San Francisco. His style of negotiation was remarkably ostentatious; indeed, so far as this government is concerned, negotiation is hardly the proper term; a demand for tribute would be a better way of expressing his mode of procedure.

It is not, however, important at present to ascertain and define Mr. N.’s exact relations to the company (or companies) in question; he may own the “whole concern,” or the company may have delegated to him full authority to regulate steam navigation in the Pacific Ocean to suit himself, as the case may be. It is rather our intention at present to call the attention of our readers to the correspondence in question, and point out as clearly as possible the real position of affairs, and to demonstrate that no one here has left anything undone which should have been done to secure the advantages which are sure to follow the permanent establishment of a line of steamers between San Francisco and the colonies, which shall stop here a sufficient length of time to take and discharge freight both ways. Without this latter condition we fail to see the incalculable advantages which would flow in upon us from the establishment of such a line of steamers.

The King’s ministers asked the last legislative assembly to place at the disposal of the executive a sum of $50,000 for the subsidizing of a line of steamers between the colonies of Australia, New Zealand, and this port, to be used at the discretion of the King in cabinet council, to which request that body cheerfully responded, and inserted in the appropriation bill the sum asked for, with the following words attached: “To be paid at the discretion of His Majesty’s cabinet, with the consent of the privy council, in sums not exceeding two thousand dollars per month, to any line of Steamers running between the ports of Honolulu, Australia, and New Zealand, making Honolulu a terminus or stopping place for deceiving and delivering cargo.” It will, therefore, be apparent that no appropriation was made directly to a line of steamers, (as has been claimed,) but simply gave authority to the government to contract with responsible parties willing to make this place a port of call, should the advantages likely to accrue from the outlay of a sum of money (large in proportion to our revenue) appear to justify its action. There can be no doubt that the legislature expected care and thoughtfulness in the expenditure of the funds voted, by the cabinet and privy council, and placed implicit trust in their discretion. On so important a subject it behooves the government to see that the faith thus given should not be abused.

What is the history of the matter? Mr. Neilson arrived in this city by the Moses Taylor, in October, and on the 24th of that month addressed a letter to the minister of the interior, after a personal interview, in which he states that he represents the consolidated interests of Mr. Webb and Messrs. Holladay, Brenham & Co., but, as we understand, produced no document to show he had authority to act for them. He received an answer from the government assuring him of its wish to establish a permanent steam service between Honolulu and Australia, and giving assurances of their intention to meet the wishes of the legislature, should a reasonable guarantee be given that cargo could be shipped and delivered, and that they did not find themselves left out in the cold on some day that should meet the convenience of the company. While Mr. Neilson was absent on his mission, Mr. Collie, who was well known to have made a tour of the colonies in the interests of Mr. Webb, and was no doubt his agent in the steam business, arrived here and remained some days, but we have been told that he did not make himself known to any member of the government, which, if a fact, does not show great anxiety on his part to receive our co-operation; but however that may be, Mr. Neilson returned to this town on the 24th of December, by the Wonga Wonga, bringing with him a printed copy of the contract made between himself and Mr. Vogel, for the establishment of a line of steamers between New Zealand and San Francisco, which copy he transmitted to the government on the 27th, not on the 26th, as printed in the Advertiser, giving this government notice that he was prepared to notify the New Zealand government at once that he named Honolulu as a port of call, calling especial attention at the same time to the 7th clause of the contrast, said clause reading as follows:

“7. The said steam-vessels may call at two intermediate places and no more between Auckland and San Francisco and between San Francisco and Auckland, and such two places may be at any of the Hawaiian, Society, Navigator’s, or Feejeean Islands, as William Neilson, whose signature is hereto affixed as agent of the contractors, shall think fit and appoint, and such ports, after being appointed, may be altered from time to time by the contractors with the consent of the postmaster general, but not otherwise.”

We call special attention to the last clause of the section, which shows clearly that an agreement made by Mr. W. Neilson, on the terms proposed by himself, would have stultified our government, and would justly have rendered them a laughing-stock to the world.

We have seen above that the legislature and government anticipated steam intercourse with both New Zealand and the Australian colonies, the latter being in fact the market in which our planters and farmers are more especially interested. But what shall we say of the document to which the attention of our government was invited, when we read the following twenty-fifth and twenty-sixth articles of the contract:

“25. No mails whatever to or from any of the colonies of Australia, or to or from New Caledonia, except as hereinbefore provided, shall be received on board or carried in any of the steam-vessels employed under this contract without the written consent of the postmaster general; and for every breach of this stipulation with the consent or connivance or through the negligence of the contractors, they shall forfeit the sum of £500 as liquidated damages, to be deducted from any sums then due or to become due by way of subsidy under this contract.

“26. In pursuance of the postal convention existing between the United States government and the colonial government of New Zealand, and in order to insure reasonable contributions from the Australian colonies and New Caledonia for mail services to be performed for them, whether under the terms of this contract such contributions would be payable to the government of New Zealand or the contractors, neither the postmaster general nor the contractors shall or will transmit, or permit to be transmitted, and will use their best endeavors to prevent the transmission of, all mails to or from any of the Australian colonies, or to or from New Caledonia, unless such colony or New Caledonia, respectively, shall give such a contribution as aforesaid; and in case of any willful breach of this stipulation, the party breaking the same shall forfeit and pay to the other the sum of £500 as liquidated.”

After our readers have read and pondered on the three articles presented here, we think they will be satisfied that some caution is necessary before making an agreement with any person, more especially one who does not produce authority to bind his principals.

There is much more to be said on this subject, but our space forbids a thorough examination of the contract in this issue.

Considerable has been said in the papers, here and in San Francisco, in regard to the distances between the various points on the route between San Francisco and the New Zealand and Australian colonies. We give below what we believe to be the actual distances:

It will be seen by the above distances that Sydney is really but five hundred and thirty miles farther from San Francisco via Honolulu and the Feejees, (both of which are in the direct line,) than Auckland, a distance equal to about two days’ steaming of the vessels now employed on the route. This makes a difference in favor of a direct route to Sydney of seven hundred and fifty miles, or three days’ steaming. It therefore looks reasonable that the Australian colonies, being the most flourishing and populous, will eventually insist upon the main line of steamers running direct, with a branch line to Auckland from the Feejees. Indeed, the distance from San Francisco to Melbourne via Sydney, by the direct line, would be less by about two hundred miles than that to Sydney via Auckland. Tahiti has been spoken of as a probable port of call instead of Honolulu. It is true that the route via Papete is about thirty-five miles shorter to Auckland than Honolulu, but the danger of the navigation over the direct route is much greater than by this route; besides, it seems to be one of the objects of the colonists to develop by the new line of steamers the commerce of the Feejees. These islands are about one thousand five hundred miles directly west of Tahiti, and to visit them would take steamers out of their direct path from eight hundred to one thousand miles, a delay which is not to be thought of when time is one of the principal objects.

No. 4, (with dispatch No. 99.)

ACROSS THE PACIFIC.

The Peninsular and Oriental Steamship Company carry between the mother country and the Australian and New Zealand colonies about one hundred and fifty first-class passengers per month. For this service they exact the highest passenger-rates demanded by any steamship company in existence, and carry no second-class or steerage passengers. Having the monopoly of the carrying trade, gained and assured by their judicious use of their heavy subsidies, as well as by their great strength and power of defying competition, they have had the bulk of the East Indian service under their control. Though it cannot be said that they have in any wise abused it, still we are so situated here, that we have an idea that a little competition in regard to a certain portion of the East India service may prove wholesome, and to many of the interested parties highly advantageous.

The laboring classes, and all those whose limited means compel them to take passage to or from the colonies in emigrant vessels, have been hitherto, and are still, subjected to all the privations, inconveniences, and suffering of a long and tedious sea voyage, under the most unpleasant attendant circumstances, and with little or no accommodations to speak of. The rates of passage which are charged there are cheap, to be sure, because both the colonies and the mother country have studied the problem of immigration, and have, to a certain extent, extended facilities and encouragement to its progress. But there is no reason whatever to doubt that the system of travel between Europe and America, and between America East and America West, combined with such a steamship line as it is contemplated to organize across the Pacific, should not draw to themselves all of the Australian and New Zealand passenger traffic, now monopolized by the old-established eastern routes. The inducements which it holds out to passengers and emigrants are: A saving of time, particularly for the latter class; cheapness; superior vessels, with superior accommodations; and a route which is neither monotonous nor tedious, three thousand miles of it being by land. In no part of the voyage are passengers subjected to any of the many unpleasant features which characterize the route now in vogue. It has no Red Sea to traverse beneath a scorching and broiling sun, none of the seemingly-endless tedium of the Indian Ocean, and is free of the disagreeable accompaniments of all long sea-voyages. Its advantages, as compared with travel in the Eastern Hemisphere, are numerous and apparent, and are freely testified to by all the passengers who have tried it by the aid of the inefficient and ill-adapted steamer-line that has attempted to establish itself. As a proof of this, we may state that many of those who came through with the first two steamers, and whose business in England only required their presence there for a brief period, are returning by this route in preference to the Peninsular and Oriental. Some who did not wish to again incur the inconveniences and discomfort to which they were subjected between Honolulu and Auckland, returned by the old route.

Well-informed gentlemen, merchants and business men, from Sydney and the nearer ports, have given it as their opinion that such a line of steamers as Mr. Webb proposes to start is not only a good business speculation, but is an absolute requirement of the colonies which sooner or later must be met. Here in San Francisco, as a business community, we recognize very fully all the advantages which will accrue to us from the successful establishment of a through trans-Pacific mail and passenger service. We perceive the necessity which the colonies experience of closer and quicker communication with the old country, and we appreciate and understand their inclination for closer and more intimate relations with the United States. Into the commercial aspect of the matter it is not necessary now to inquire; of its importance and ultimate value in this respect to us and the colonies we are assured, and have no doubt that with the establishment of the line it will speedily develop itself. Recognizing therefore the mutual advantages to be derived, we wish to see a similar appreciation evinced by our neighbors. We hope to see a liberal subsidy accorded, a sound and reliable line, and such other practicable encouragement extended as may tend to advance its interests and their own, and conduce to its permanency and efficiency. As to action of Congress in the matter, we are assured that there will be no further delay, and that the subsidy demanded at the last session will be unhesitatingly granted. The report of the committee fully canvassed the entire project from beginning to end, and was as favorable as could be desired, and were it not for the unusual press and hurry of business, amid which the proceedings of Congress were wound up, the delay would never have occurred. We wish to see capable and first-class American lines of steamers developing the trade and commerce of the Pacific. We have been unsuccessful, and retarded for various reasons in our Atlantic shipping progress, and England has in many respects distanced us in that direction. But while we have this example to learn from, and while we understand its cause and see where and how to apply the remedy, in our own ease, we should not hesitate to do so.—San Francisco Bulletin.

HALL ON THE RAMPGAE.

Mr. H. H. Hall, the proprietor of “my line” of steamers between Australia and Honolulu, comes out with a strong letter in the Sydney Morning Herald of November 21st, in which he threatens to run an opposition through-line to San Francisco, if Holladay & Brenham should have the temerity, and should be so regardless of their own interests as to throw him over. Hear his portentous utterances:

“To the editor of the Herald.

“Sir: From the kindly interest you have displayed in the success of the present California mail service, I feel sure that you have no wish to allow your journal to be the medium of circulating rumors regarding it which have no foundation in fact. For several months past we have been told that ‘one of Webb’s steamers may be expected here every day but up to the present there is no news of her having started.

“Now, I learn from a paragraph in your second edition of Thursday that Webb and Holladay & Brenham have formed a coalition to run a line of steamers to Australia, and that in the event of their terms not being complied with, no connection will be formed with my line at Honolulu. In reply, I beg to state that my advices from San Francisco make no mention whatever of any such arrangement, nor can I believe it exists. I hold my contract from the New Zealand government for a period of four years, and I also hold a contract from Messrs. Holladay & Brenham that they will carry out so much of it as relates to the service between Honolulu and San Francisco. Both documents are open for your inspection.

“Apart from all legal responsibilities, is it likely that Messrs. Holladay & Brenham are going to throw away a certainty for an uncertainty, and not only this, but provoke opposition on a line which they now monopolize, and this they would most assuredly do by a procedure such as that referred to.

“The performances of the Wonga and City of Melbourne will compare favorably with those of any of the American mail-steamers running in the Pacific, and I have only to charter the City of Adelaide to enable me to form a through line into San Francisco. This course I shall certainly adopt if circumstances warrant it. However, having full faith in the honor of my co-contractors, (Messrs. H. & B.,) I am satisfied that if they intend to shirk their responsibility they would at least have given me the earliest information of it, rather than have it reach me as a newspaper rumor. Trusting you will find space for this as a means of counteracting any influence the paragraph alluded to may have had, I remain, sir, yours, faithfully,