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with engines of not less than 1,000 horse-power, and one of not less than : 600 tons burden, with engines in proportion: two of the vessels to be | ready on or before the 1st day of October, 1848, and two on the 1st day of October, 1849-no time being mentioned for the completion of the fifth. A subsequent modification of the contract authorizes an increase in the dimensions of the four larger vessels.

With respect to this contract, which has been assigned to George Law and associates, the "Falcon," of 1,000 tons, has been purchased by the - contractors, and temporarily employed, by consent of the department, (so far as the undersigned are informed,) in the transportation of the mails, since December, 1848.

The "Ohio," of 2,432 tons, and the "Georgia," of 2,727 tons, have been constructed and sent to sea, though but one of them has been recog nised as coming within the stipulations of the contract. The "Ohio," not being coppered, has not been received; therefore, of the original ships contemplated to be constructed conformably with the terms of the contract with A. G. Sloo, but one (the "Georgia") has been received, which vessel was inspected on the 24th of January last.

As to the manner of constructing the "Georgia," (the only one received, and, consequently, the only one of which a description can be given consistently with the inquiry,) it may be said that, in the construction of the hull of this and the other larger vessels of Sloo's contract, it was stipulated that she and they were to be equal in manner of build and description of materials to the build and materials of the late United States steamer "Missouri;" but, as has been heretofore represented to the Navy Department, (see accompanying paper, marked B,) this was impracticable; and the "Georgia" may be considered to be a substantial-built vessel of mixed unseasoned timber, (all the ships of the several contracts have been constructed of mixed unseasoned timber,) similar, but in no wise superior, to the materials used in the construction of the best merchant ships in the city of New York.

In dimensions, the "Georgia" is far beyond the dimensions originally stipulated for; but it will be recollected that the contractor reserved the right to add thirty feet to the length, and five to the breadth, should he deem it advisable to do so. Her engines, instead of being made of direct action, as provided for in the contract, are constructed with side levers; their nominal power is short of 1,000 horses, according to the rule of Watt & Bolton, but they can be easily and safely worked at 1,400 or 1,500 horses. These engines and boilers, though differing from those of the "Missouri," (see paper B,) are good; and, in point of speed and excellent sea qualities, the "Georgia" is represented to be, by her commander, Lieutenant D. D. Porter, United States navy, a very superior

vessel.

The delay in the completion of the vessels that have actually been commenced under the contract with E. K. Collins and associates and A. G. Sloo may be chiefly ascribed to the overpress of work at the steam engine manufactories in the city of New York-the demand for steam machinery having been greatly increased by circumstances growing out of the accession of territory to the United States; and probably the manufacturers, unaccustomed to the construction of engines of such magnitude-some of them almost unprecedented as marine engines (in extent of power) in any part of the world-may have miscalculated the time that would, be

required to complete them. The contractors used every means of hastenin the completion of the engines. Such as have been put in operation flect high credit on those who constructed them.

The contract with Arnold Harris, dated the 16th day of Novembe 1847, since assigned to Howland and Aspinwall and associates, provide for three steamers for the transportation of the mail on the Pacific oceantwo of which were to be in burden not less than 1,000 tons, and one less than 600 tons; no stipulations are mentioned as to model or construct of vessel or description of engine. They were, however, to be such ve sels as might be easily converted to war purposes. The contract for car ing the mail was to go into operation on the 1st day of October, 18 In conformity with this agreement, these vessels were constructed a sent to the Pacific.

The "California," of 1,050 tons, sailed from New York on the 6th tober, 1848; the "Panama," of 1,087 tons, sailed 2d December; and "Oregon," of 1,099 tons, sailed on the 7th December, 1848.

The vessels already built and sent to sea under this contract are g substantial sea steamers, though having but one engine and two b each-a very serious objection, as, in the opinion of the undersigned. steamer intended for ocean navigation, however small her dimens should be constructed with less than two engines, and three or boilers.

Second. "Whether such delay, if any, has been detrimental, under the circumstances, to the interests of the government and the require of the service."

In reply to this part of the inquiry, the undersigned do not cons: themselves competent to judge advisedly in the premises.

Third. "Whether any of said ships have been increased in their nage, dimensions, machinery, and consequently in their value and ef iveness for naval and mail purposes, and the probable cost of thes quired by the terms of the contracts, and those actually constructed."

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It will appear from the reply to the first question that most of the rese contracted for have been somewhat larger than was probably contemp by the contracts, and, of course, are proportionally more costly; but have not been rendered thereby less effective for the transportation mails, or for war purposes. The cost of the hulls of these vessels be estimated as coming within fifty-five to seventy dollars per ton, actu ing to the value of materials and manner of construction.

The stipulated nominal power of their engines has not been increas and in this respect there may be an objection to the increased tonnag the proportional power of steam to tonnage is less than might have wished to secure extraordinary speed, though for ordinary purpos convenient navigation, or for cruising, the power of the engines is proportion to the tonnage.

In the conversion of these vessels to war purposes, considerable alte would be required; and, though they can never be made equal to th steamers originally designed and constructed expressly for the navy. they can be rendered available in cases of emergency, and withou great disbursement of money. Much of the expense, in the constra ́ and equipment of the mail steamers, has been disbursed in the ar ment and decorations of the cabins for the accommodation of passen?? Of course it could not, in case of their transfer to the navy, be expers

that these items of cost should be taken fully into account in the appraisement provided for in the contracts. As the undersigned understand the letter and spirit of these contracts, the United States have the right-and the exercise of such right is altogether optional with the government-to take possession of these vessels at any time of need, at a valuation to be appraised upon terms expressly provided for.

Fourth And whether the mail service is now performed by said lines, respectively, according to their contracts, and what compensation has been paid therefor; and whether any further provisions of law be necessary to secure the more effectual performance of said service, and the other objects contemplated by said contracts."

The undersigned are not possessed of sufficient information to authorize a reply to this part of the inquiry.

With great respect, we are your most obedient servants,

The Hon. WM. BALLARD PRESTON,

M. C. PERRY,

R. B. CUNNINGHAM.

Secretary of the Navy, Washington.

With reference to the question " whether such delay (if any) has been detrimental, under all the circumstances, to the interests of the governnent and the requirements of the service," upon which Commodore Perry and Commander Cunningham do not feel themselves competent to judge, your committee would remark that, although the public service may have, ind probably has, failed to enjoy benefits which would have accrued from a literal compliance with the contracts, so far as the earlier completion of the ships is concerned, they believe the failure to enjoy those benefits is nore than counterbalanced by the advantages attendant on an increase in the size and value of the vessels, and their consequent availability for naval purposes.

In answer to that portion of the resolution which calls for an inquiry whether the mail service is now performed by said lines, respectively, according to their contracts, and whether compensation has been paid therefor," your committee would respectfully state that, according to the report of the Secretary of the Navy hereto annexed, two ships of the Liverpool line are in the performance of the mail service for which they were intended, but no payment has been made for mail service. The amount advanced to E. K. Collins and his associates, under the act of Congress of August 3, 1848, for the purpose of enabling the contractors to furnish the ships, is $317,500. The accompanying statements of the accoun ́s between the government and the contractors for the Pacific mail line show what service has been rendered, and the sums that have been paid for them-amounting in all to $262,569 45. The "Georgia" is the only ship which has been accepted under the contract with A. G. Sloo. No payment for service has been made. No advance has been made since 4th March, 1849, previously to which period $290,000 had been advanced. The Secretary has declined to make further advances to this line.

The Navy Department, not having been furnished with any reports showing the probable cost of the steamships required by the terms of the

contracts, nor of those actually constructed, has not been able to answer the inquiries contained in the resolution on this head. Annexed hereto are the reports made by the contractors to the committee on this subject. There is another line of steamers to which your committee would briefly refer, although not included in the resolution of the Senate. The Bremen line, for which Mr. Mills was the contractor, may be regarded as the pioneer of the system, and as such entitled to a fair share of consid eration. The two ships of this line which have been placed in service have been excelled, it is true, in speed, by others subsequently built, and have consequently ceased to command the patronage of travellers; but it is believed they have nevertheless been profitable to their owners & freight vessels, and of essential service in promoting the interests d American commerce. Through the instrumentality of this line, a mer direct channel of intercommunication with central Germany has bee opened, the effect of which has been, and must continue to be, high beneficial to our country, in inducing the hardy sons of that vast an densely-populated region to migrate to the fertile but comparatively un habited valley watered by the Mississippi and its tributaries.

Having thus disposed of the first portion of the subject submitted their consideration, your committee feel that they would be doing inju tice to themselves were they not to give more than a passing notice to the matters inseparably connected with the establishment of ocean steam packet navigation. Before they do this, however, they deem it their dr to impress upon the Senate the obligation on the part of Congress, carry out to their fullest extent the contracts already entered into. The are some amongst us who are disposed to cavil at the failure of the pr ties to these contracts to comply with the strict letter of their enga ments, and who are willing to punish any delays that may have occur by a forfeiture of the privileges incident to them. To such views ye committee cannot give their consent. Whatever has been done, has bet done with the best intentions; and, although contractors may have fa to fulfil their engagements literally, their failure to do so appears to ha proceeded from a desire to promote the interests of the government, a not from any disposition to secure their own at the expense of put prosperity. Under such circumstances, it becomes the duty of th national legislature to regard these contracts with indulgence, and to st tain and cherish an enterprise which, without the aid of the government must fall short of its mark. It should be borne in mind that whater! changes have been made, causing, necessarily, delay and temporary i convenience, have been effected with a view to the advancement our commercial marine and maritime defences. Of the contracts unde consideration, it might perhaps be said that not one has been performe to the letter. Even in the case of the Pacific Steam Company, whi has excelled all others in promptness and efficiency, a caviller might s cause for fault finding in the fact that vessels which should have bee ready for service on the 1st of October were not prepared to depart be fore the 6th of the same month, or one or two months afterwards. Such however, are not the views by which enlightened legislation should b governed; the intentions of the parties being evidently upright, the should not be regarded and punished as wrong-doers.

The importance of the steam mail service, when considered with re

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ence to the convenience which it affords to the social intercourse of the country, is as nothing when compared with its vast bearing upon the commerce of the world. Wherever facilities of rapid travel exist, trade will be found, with its attendant wealth. Of the truth of this proposition, no country, perhaps, affords a more forcible illustration than Great Britain, as none has ever availed itself to so great an extent of the benefits of easy and rapid intercommunication between the various portions of her almost boundless empire. The commercial history of England has shown that mail facilities have uniformly gone hand in hand with the extension of trade; and wherever British subjects are found forming communities, there do we find the hand of the government busy in supplying the means of easy and safe communication with the mother country. With a view to this, we have beheld England increasing her steam marine at an enormous expense, and sustaining packet lines connecting with every quarter of the globe, even in cases where any immediate and direct remuneration was out of the question. The great object in view was, to draw together the portions of an empire upon which the sun never sets, and the martial airs of which encircle the globe, and to make British subjects who dwell in Europe, Asia, Africa, America, and even Oceanica, all feel alike that they are Britons. The following statement of the admiralty arrangements of the packet service, as far back as September, 1847, will afford some idea of the system of mail service, and the efficiency, regularity, and certainty with which it is conducted:

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