Peninsula Enterprise, April 6, 1882

The New Steamboat Co. -- Chances of Success.

Transportation -- Water - SteamboatsLaborers -- Farm

Editor of THE ENTERPRISE:

As several farmers have asked my opinion as regards the probable success of the new steamboat company which is now being organized in Accomac, in opposition to the present company, I have concluded to put it in the shape of a letter to your paper, that all may read and judge for themselves of the soundness of the observations which I make. In looking over the officers and directors of this new company, I do not see the first one who has any experience whatever in the management of the steam transportation business. This fact, under the most favorable circumstances, would render the enterprise doubtful. Is a man a good farmer who has never performed any? How would you like to form a company to go into farming extensively and put men at the head of it that had never had a day's experience on a farm? A man may be a most accomplished lawyer and yet not know anything about the practical management of this kind of business.

The gentlemen who are pushing this enterprise certainly cannot be aware of the difficulties in the way of carrying it to a successful issue.

It seems to me that they have started upon premises that are unseaworthy, as they will find in the end. They assume that there will be no reduction of rates, there being business enough for two companies. This is a big mistake; while it is a very high compliment to the present company, which has without opposition reduced its rates to a point which even its enemies say, is low enough. This being true, the only possible benefit for the farmer is his dividends to be declared on his amount of stock in the new company. I have been informed by reliable authority that the stock in the Norfolk Steam Packet Company, running from Baltimore to Norfolk, only pays about 5 per cent - they have no opposition. You can form some idea from this of how your investment would pan out with inexperienced men to manage it, and a company to fight that has the money and men to manage their business of life-long experience in it. It seems to me absurd to think or even dream of success. I have heard that this argument was being used: That the Tangier made last year $75,000 clear of all expenses. There is not a word of truth in that. There are no such profits in the business. I think those gentlemen who make use of this as an inducement to get farmers to take stock, ought first to know, not hear it only, but know that it is true.

Then, again, we understand, if the money can't be raised in Accomac, it is proposed to go to Baltimore and get parties there to take stock. But the main idea of this organization is to keep the money at home. If Baltimore had the controlling interest you would be just where you are now.

Did you ever reflect what a cumbersome, unmanageable thing a corporation would be, organized so that there would be at least a thousand shareholders, and each holder with the privilege of voting on the election of officers and directors? It would be as much as any man could do, to keep this organization in order, to say nothing about fighting the best organized and the best equipped line in Baltimore.

TERMINAL FACILITIES.

The present company have vastly the advantage over any line that can be started in regard to wharf-room in Baltimore. They are making extensive improvements at their wharf in Baltimore, and when finished it will be the best dock in the city for the sale of produce: It is a well-known fact (I am prepared to prove it) that potatoes and peas usually bring 50 cents per barrel more on the dock at the foot of South street than they do on any wharf on Light street. It is convenient to the markets, besides there is room, and that is what you need at the city terminus of a line.

I am not authorized by the company to say a word pro or con for them. I write this simply in answer to question which some of my friends have asked. There are those who will say I am interested, and nothing more could be expected of me. All I ask of them is to clip this letter out of your paper and keep it. Time will demonstrate its correctness; while to others, I say, weigh the ideas and thoughts suggested in this letter, and judge wether they be common sense or not. Again, this idea of "keeping money at home" has a charm for some people. Suppose the present company had put the value of their steamers in U.S. Bonds and kept them at home. You may say that some other company would have put boats on this route, but the fact is no other company did it. The roughness of the weather in this part of the bay, and the sand bars at the mouth of the different creeks being a terror to most all steamboat men. This company go to work and build boats expressly to suit the business, and every man, woman and child in our county has felt the benefit of this investment of capital among us. It seems to me our people ought to encourage such enterprising capitalists among them.

You have got transportation offered you at your own prices without sending a dollar out of the county to get it: Then why spend $100,000 or more out of the county to procure what you already have? And then to place it under the management of men who have no experience in what they are undertaking seems to me the height of folly. If the merchants and lawyers engaged in this prospective opposition have made more money than they know what to do with, let them originate some new enterprise that will be one-sixteenth the benefit to the county the Eastern Shore Steamboat Company has been, then they will deserve your support and encouragement. If ever you find a man who will come to your house, board and find himself, and work your potatoes cheaper than you can do it, stick to him. This is exactly what the old company is doing. They are organized, equipped and prepared to transport your produce to Baltimore and all the great markets of the North and West at rates that would bring you in debt if you owned your boats and had no opposition to fight. Inexperienced officers and directors, managing an unwieldy corporation, are likely to fail under the most favorable circumstances. Now when they come into a fight where experience, management and capital all operate against them, I see no chance of success.

For the reasons which I have cited, I advise those who have asked my advice to let steamboats alone.

If some of our smart men could get up a "Labor Furnishing Company," or hit upon, or study out some plan by which the farmers could secure reliable labor, it would be ten times more beneficial to the county than an opposition steamer.

T. A. JOYNES.