The early years

Even though James Macqueen's original plans had been reduced, the schedules were still too complex and tight to operate efficiently. During the first year or two major changes had to be made, with the Company suffering financially to the extent that by early 1843 there was a threat that it would collapse. That was avoided only by the Admiralty agreeing to significant reductions in the schedule.

Not only were there operational problems, in less than a decade RMSP lost seven of its ships. Five were among those great first fleet steamers - Tweed, Forth, Solway, Medina and Isis. Also lost were the steamer Actaeon and schooner Lee. The loss of Tweed was particularly horrific - she broke into three pieces on a reef off the Mexican coast and more than 70 people were lost.

By 1851 the Company was improving its earnings and its experience, and that January embarked on its first expansion. It gained a mail contract for a service from Southampton to Brazil and the River Plate. Initially a transatlantic steamer voyaged as far as Rio de Janeiro and a small feeder ship then coped with the smaller amount of traffic from Rio to Montevideo and Buenos Aires. This service was immediately successful - voyages were generally profitable and 20 years passed before the service suffered its first lost ship.

For all that, it remained secondary to West Indies trades. By the 1860s the Caribbean services, too, were proving very successful, and it was during that decade that Royal Mail achieved the highest return for investors throughout the Company's life - in 1864 the annual dividend was an extraordinary 24%.

Shortly after that RMSP was rocked by a series of disasters. At the West Indies island of St Thomas in 1867 three ships were lost in a hurricane, including the fleet's flagship of the day, the Rhone. Shortly afterwards La Plata was badly damaged by a tidal wave. At about that time the Company became involved with a mail service to Australia, which collapsed with heavy losses for Royal Mail.

More important than the financial implications of that affair was the destabilisation it caused among the directors. It was the first stage of a decline in fortunes which became worse as the years passed.

 

1851 Royal charter, authorising an extension of services to South America.


Orinoco (I), 2,901 tons, built in 1851. A large and fine ship when she was built, she was broken up after just eight years because she was riddled with dry rot.

Captain Revett, one of RMSP's early commanders, and later a director.

Bowsprit of Rhone, after almost a century underwater off the Virgin Islands. Photo taken by a dive tour operator during the 1960s.