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Manual of Ship Subsidies by Edwin M. Bacon
page 14 of 134 (10%)
built of iron instead of wood, and to be propelled by the screw instead
of the paddle-wheel. In the latter innovation, however, she was not the
pioneer. Again the Americans were first in the application of the
auxiliary screw to ocean navigation,[AC] as they had been first in
despatching a steamer across the Atlantic.

The initial transatlantic subsidy to the Cunard Company was followed up
in 1840 and 1841 with contracts for steam mail-carriage to the West
Indies and South American ports.[AD] The first (1840) went to the Royal
Mail Steam Packet Company, for the West Indian service, the mail subsidy
fixed at two hundred and forty thousand pounds a year;[AE] the second
(1841), to the Pacific Steam Navigation Company. The latter enterprise
was promoted by an American,[AF] after he had failed to obtain support
in his own country[AG] for a project to establish an American steamship
line to ports along the west coast of South America, a field in which
American sailing ships had long been preƫminent.[AH]

Up to 1847 the British lines monopolized the transatlantic service. Then
the situation became enlivened by the advent of competing American
steamships subsidized by the United States Government, with high-paying
mail contracts. The first of these was the New York, Havre, and Bremen
line starting in 1847; the next, the celebrated Collins Line between New
York and Liverpool, underway in 1850. The competing vessels were
American-built, wooden side-wheelers; those of the Collins Line superior
in equipment and in passenger accommodations, and faster sailers, than
the British craft.[AI] To meet this competition the Cunard Company
increased their fleet while the Admiralty increased the subsidy. Four
new steamers were first added, in 1848, to run directly between
Liverpool and New York, and the postal subsidy was raised to one hundred
and forty-five thousand pounds a year for forty-four voyages--three
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